40-F

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 40-F

oREGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934.

xANNUAL REPORT PURSUANT TO SECTION 13(a) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2018 Commission File Number: 001-35393

PRETIUM RESOURCES INC.

(Exact name of Registrant as specified in its charter)

British Columbia, Canada

(Province or other jurisdiction of incorporation or organization)

1040	None
(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification Number)

1055 Dunsmuir Street, Suite 2300

Vancouver, British Columbia

Canada V7X 1L4

(604) 558-1784

(Address and telephone number of Registrant’s principal executive offices)

C T Corporation System
28 Liberty Street
New York, New York 10005

(212) 894-8940

(Name, address (including zip code) and telephone number (including area code)

of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Name of each exchange on which registered
Common Shares	New York Stock Exchange

 Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

(Title of Class)

For Annual Reports indicate by check mark the information filed with this Form:

x Annual information form      x Audited annual financial statements

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

There were 184,163,091 Common Shares, of no par value, outstanding as of December 31, 2018.

Indicate by check mark whether the Registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

Yes x No o

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company o

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o

This Annual Report on Form 40-F shall be incorporated by reference into or as an exhibit to, as applicable, the registrant’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) under the Securities Act of 1933, as amended.

PRINCIPAL DOCUMENTS

The following documents have been filed as part of this Annual Report on Form 40-F as Appendices hereto:

A.      Annual Information Form

The Annual Information Form of Pretium Resources Inc. (the “Company” or “Registrant”) for the fiscal year ended December 31, 2018 is included as Appendix A of this Annual Report on Form 40-F.

B.      Audited Annual Financial Statements

The Company’s audited consolidated financial statements for the fiscal year ended December 31, 2018, including the Report of Independent Registered Public Accounting Firm with respect thereto, are included as Appendix B of this Annual Report on Form 40-F.

C.      Management’s Discussion and Analysis

The Company’s Management’s Discussion and Analysis for the year ended December 31, 2018 is included as Appendix C of this Annual Report on Form 40-F.

CERTIFICATIONS AND DISCLOSURE REGARDING CONTROLS AND PROCEDURES

Certifications. See Exhibits 99.14, 99.15, 99.16 and 99.17 to this Annual Report on Form 40-F.

Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures and internal control over financial reporting designed to ensure that information required to be disclosed in the Registrant’s filings under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”). The Registrant’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), after having evaluated the effectiveness of the Registrant’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this report, have concluded that, as of such date, the Registrant’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Registrant in reports that the Registrant files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. However, as recommended by the SEC in its adopting release for the rules governing the disclosure controls and procedures discussed above, the Registrant will continue to periodically evaluate its disclosure controls and procedures and will make modifications from time to time as deemed necessary to ensure that information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

The Registrant’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, and, as indicated in the preceding paragraph, the CEO and CFO believe that the Registrant’s disclosure controls and procedures are effective at that reasonable assurance level, although the CEO and CFO do not expect that the disclosure controls and procedures or internal control over financial reporting will prevent all errors and fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

Management’s Annual Report on Internal Control Over Financial Reporting. The required disclosure is included under the heading “Management’s Report on Internal Control over Financial Reporting” in the Registrant’s Consolidated Financial Statements for the fiscal year ended December 31, 2018, filed as part of this Annual Report on Form 40-F in Appendix B.

Attestation Report of the Registered Public Accounting Firm. The required disclosure is included under the heading “Report of Independent Registered Public Accounting Firm” in the Registrant’s Consolidated Financial Statements for the fiscal year ended December 31, 2018, filed as part of this Annual Report on Form 40-F in Appendix B.

Changes in Internal Control Over Financial Reporting. During the fiscal year ended December 31, 2018, there were no changes in the Registrant’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

NOTICES PURSUANT TO REGULATION BTR

None.

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IDENTIFICATION OF THE AUDIT COMMITTEE

The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The members of the audit committee are: Messrs. David Smith, Peter Birkey and Faheem Tejani.

AUDIT COMMITTEE FINANCIAL EXPERT

The board of directors of the Registrant has determined that each of Messrs. David Smith, Peter Birkey and Faheem Tejani, members of the Registrant’s audit committee, qualify as audit committee financial experts for purposes of paragraph (8) of General Instruction B to Form 40-F. The board of directors has further determined that each of Messrs. David Smith, Peter Birkey and Faheem Tejani is also independent, as that term is defined in the Corporate Governance Listing Standards of the New York Stock Exchange (the “NYSE”). The Commission has indicated that the designation of each of Messrs. David Smith, Peter Birkey and Faheem Tejani as an audit committee financial expert does not make any of them an “expert” for any purpose, impose any duties, obligations or liabilities on them that are greater than those imposed on members of the audit committee and the board of directors who do not carry this designation or affect the duties, obligations or liabilities of any other member of the audit committee or the board of directors.

ADDITIONAL DISCLOSURE

Code of Ethics.

The Registrant has adopted a “code of ethics” (as that term is defined in Form 40-F), entitled the “Code of Business Conduct and Ethics”, that applies to all of its directors, officers, employees, and consultants including its principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions. In 2018, there were no waivers, including implicit waivers, or amendments granted from any provision of the Code of Business Conduct and Ethics.

The Code of Business Conduct and Ethics is available for viewing on the Registrant’s website at www.pretivm.com.

Corporate Governance Practices.

Our corporate governance practices are consistent with all applicable current Canadian regulatory guidelines and standards. We are classified as a foreign private issuer in connection with our listing on the NYSE and are not required to comply with most of the NYSE’s corporate governance standards (the “NYSE Rules”) and instead may comply with Canadian corporate governance practices. However, our corporate governance practices incorporate many best practices derived from the NYSE Rules and there are no significant differences between our corporate governance practices and the NYSE Rules.

Principal Accountant Fees and Services.

The required disclosure is included under the heading “Audit Committee Information—External Auditor Service Fees” of the Registrant’s Annual Information Form for the fiscal year ended December 31, 2018, filed as part of this Annual Report on Form 40-F in Appendix A.

Pre-Approval Policies and Procedures.

The Audit Committee pre-approves all audit services to be provided to us by our independent auditors.  The Audit Committee’s policy regarding the pre-approval of non-audit services to be provided to us by our independent auditors is that all such services shall be pre-approved by the Audit Committee.  All non-audit services performed by our auditors for the fiscal year ended December 31, 2018 have been pre-approved by our Audit Committee.

Off-Balance Sheet Arrangements.

The Registrant has no off-balance sheet arrangements as defined under Form 40-F.

Tabular Disclosure of Commitments.

The required disclosure is included under the heading “Commitments” in the registrant’s Management’s Discussion and Analysis for the year ended December 31, 2018, filed as part of this Annual Report on Form 40-F in Appendix C.

Mine Safety Disclosure.

Not applicable.

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UNDERTAKING

Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

CONSENT TO SERVICE OF PROCESS

Form F-X signed by the Registrant and its agent for service of process has been filed with the Commission together with Registrant’s Registration Statement on Form 40-F (001-35393) in connection with its securities registered on such form.

Any changes to the name or address of the agent for service of process of the Registrant shall be communicated promptly to the Commission by an amendment to the Form F-X referencing the file number of the Registrant.

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 29, 2019	Pretium Resources Inc.
	By:	/s/ Joseph J. Ovsenek
		Name:	Joseph J. Ovsenek
		Title:	President, Chief Executive Officer & Director

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EXHIBIT INDEX

Exhibit	Description
99.1	Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accountant
99.2	Consent of Tetra Tech
99.3	Consent of Snowden Mining Industry Consultants Inc.
99.4	Consent of AMC Mining Consultants (Canada) Ltd.
99.5	Consent of ERM Rescan
99.6	Consent of BGC Engineering Inc.
99.7	Consent of Alpine Solutions Avalanche Services
99.8	Consent of Valard Construction
99.9	Consent of Lyle Morgenthaler, B.A.Sc., P.Eng.
99.10	Consent of Russell Pennell, B.A.Sc., P.Eng.
99.11	Consent of Kenneth C. McNaughton, M.A.Sc., P.Eng.
99.12	Consent of Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM, CP(geo)
99.13	Consent of Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat.
99.14	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
99.15	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
99.16	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.17	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Interactive Data File

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APPENDIX A

PRETIUM RESOURCES INC. ANNUAL INFORMATION FORM FOR THE FISCAL YEAR

ENDED DECEMBER 31, 2018

ANNUAL INFORMATION FORM

(“AIF”)

of

PRETIUM RESOURCES INC.
2300, 1055 Dunsmuir Street, PO Box 49334
Vancouver, British Columbia
V7X 1L4

Telephone:  604-558-1784

Facsimile:  604-558-4784

Website:  www.pretivm.com

E-mail:  invest@pretivm.com

For the Year Ended December 31, 2018

Dated:  March 28, 2019

TABLE OF CONTENTS

PRELIMINARY NOTES		3
	Effective Date of Information	3
	Currency	3
	Note Regarding Forward Looking Information and Forward-Looking Statements	3
	Scientific and Technical Disclosure	7
	National Instrument 43-101 Definitions	7
	Cautionary Note to U.S. Investors	10
OUR BUSINESS		11
	Corporate Structure	12
	Significant Developments	12
	Operating Results for 2018	19
	Mineral Reserves and Mineral Resources	19
	Capital Cost	23
	Exploration Assets	24
	Specialized Skills and Knowledge	26
	Employees	26
	Competitive Conditions	26
	Cycles	26
	Social and Environmental Policies	27
	Permitting and Environmental	28
	Indebtedness	28
	Principal Markets and Distribution	32
BRUCEJACK 43-101 REPORT		33
	Project Description and Location	33
	Accessibility, Climate, Local Resources, Infrastructure and Physiography	34
	History and Exploration	35
	Geological Setting	37
	Mineralization	38
	Mineralized Zones	39
	Drilling	40
	Sampling, Analysis, Data Verification and Security	41
	Mineral Processing and Metallurgical Testing	41
	Mining Method	44
	Mineral Resource and Mineral Reserve Estimates	45
	Project Infrastructure	51
RISK FACTORS		54
	Risks Related to Our Business	54
	Risks Related to our Securities	78
DIVIDENDS AND DISTRIBUTIONS		80
DESCRIPTION OF CAPITAL STRUCTURE		80
	Common Shares and Preferred Shares	80
	Shareholder Rights Plan	81
MARKET FOR SECURITIES		81

	Trading Price and Volume	81
	Prior Sales	82
DIRECTORS AND OFFICERS		82
	Name, Occupation and Security Holding	82
	Shareholdings of Directors and Senior Officers	86
	Cease Trade Orders, Bankruptcies, Penalties or Sanctions	86
	Conflicts of Interest	87
AUDIT COMMITTEE INFORMATION		87
LEGAL PROCEEDINGS AND REGULATORY ACTIONS		89
	Class Action Lawsuits	89
	Construction claims	91
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS		91
AUDITORS, TRANSFER AGENT AND REGISTRAR		92
MATERIAL CONTRACTS		92
INTEREST OF EXPERTS		92
ADDITIONAL INFORMATION		94
APPENDIX 1		1
	AUDIT COMMITTEE CHARTER	1

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PRELIMINARY NOTES

Effective Date of Information

This AIF is dated March 28, 2019, and unless otherwise indicated, the information contained herein is current as of such date, other than certain financial information which is current as of December 31, 2018, being the date of the Company’s most recently audited financial year end.

References to the “Company”, “we”, “us” and “our” refer to Pretium Resources Inc.

Currency

All dollar amounts are expressed in United States dollars unless otherwise indicated. References to “Canadian dollars” or the use of the symbol “C$” refer to Canadian dollars.

The following table sets forth, for each period indicated, the high and low exchange rates for Canadian dollars expressed in United States dollars, the average of such exchange rate during such period, and the exchange rate at the end of such period. These rates are based on the indicative rate of exchange reported by the Bank of Canada.

	Fiscal Year Ended December 31,
	2016		2017		2018
Rate at the end of period	$	0.7448	$	0.7971	$	0.7330
Average rate during period	$	0.7555	$	0.7708	$	0.7721
Highest rate during period	$	0.7972	$	0.8245	$	0.8138
Lowest rate during period	$	0.6854	$	0.7276	$	0.7330

Note Regarding Forward Looking Information and Forward-Looking Statements

This AIF contains “forward-looking information”, “forward looking statements”, “future oriented financial information” and “financial outlook” within the meaning of applicable Canadian and United States securities legislation (collectively herein referred to as “forward-looking statements” or “forward-looking information”), including the “safe harbour” provisions of Canadian provincial securities legislation and the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”). The purpose of disclosing future oriented financial information and financial outlook is to provide a general overview of management’s expectations regarding the anticipated results of operations and costs thereof and readers are cautioned that future oriented financial information and financial outlook may not be appropriate for other purposes.

Wherever possible, words such as “plans”, “expects”, “guidance”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”, “intends”, “modeled’, “targets” and similar expressions or statements that certain actions,

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events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking information.  Forward-looking information may include, but is not limited to, information with respect to: production and cost guidance; expected financial results and the expected grade of gold produced; the rate of production of the Brucejack Mine, including the ramp-up of the Brucejack Mine to 3,800 tonnes per day and the capital upgrades, estimated capital expenditures and an updated mine plan in connection therewith, and a timeline therefor; payment of operating and debt obligations and requirements including timing and source of funds; our planned mining, exploration and development activities and the costs and timing thereof; our operational strategy; capital and operating cost estimates and timing thereof; production and processing estimates; the future price of gold and silver; our liquidity and the adequacy of our financial resources; our intentions with respect to our capital resources; our financing activities, including plans for the use of proceeds thereof; the estimation of Mineral Reserves and Resources including the 2016 Mineral Resource Estimate Update and the 2016 Mineral Reserve Estimate Update; the updates to our Mineral Reserves and Mineral Resources estimates and our life of mine grade and life of mine plan for the Brucejack Mine and the anticipated timing thereof; realization of Mineral Reserve and Resource estimates; further development of our Brucejack Mine and timing thereof; results of future exploration and drilling; timelines and similar statements relating to the economic viability of the Brucejack Mine, including mine life, total tonnes mined and processed and mining operations; timing, receipt, and anticipated effects of, and anticipated capital costs in connection with, approvals, consents and permits under applicable legislation; our executive compensation approach and practice; our relationship with community stakeholders; litigation matters; environmental matters; our share capital and corporate governance policies and practices; and statements regarding United States dollar cash flows, currency fluctuations and the recurrence of foreign currency translation adjustments.

Statements concerning Mineral Resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks related to:

·uncertainty as to the outcome of legal proceedings;

·the effect of indebtedness on cash flow and business operations;

·the effect of restrictive covenants in the Offtake Agreement and Credit Agreement (each as defined herein);

·our ability to satisfy commitments under the Offtake Agreement;

·assumptions regarding expected capital costs, operating costs and expenditures, production schedules, economic returns and other projections;

·our production and production cost estimates, including the accuracy thereof;

·commodity price fluctuations, including gold price volatility;

·the accuracy of our Mineral Resource and Reserve estimates (including with respect to size,

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grade and recoverability) and the geological, operational and price assumptions on which they are based;

·our ability to maintain or increase our annual production of gold at the Brucejack Mine (as defined herein) or discover, develop or acquire Mineral Reserves for production;

·dependency on the Brucejack Mine for our future operating revenue;

·the development of our properties;

·our ability to raise enough capital to mine, develop, expand or complete further exploration programs on our mineral properties;

·our ability to generate operating revenues in the future;

·our history of negative operating cash flow, incurred losses and accumulated deficit;

·failure of counterparties to perform their contractual obligations;

·general economic conditions;

·the inherent risk in the mining industry;

·the commercial viability of our current and any acquired mineral rights;

·availability of suitable infrastructure or damage to existing infrastructure;

·transportation and refining risks;

·maintaining satisfactory labour relations with employees and contractors;

·significant governmental regulations, including environmental regulations;

·non-compliance with permits that are obtained or delay in obtaining or failure to obtain permits required in the future;

·increased costs and restrictions on operations due to compliance with health, safety and environmental laws and regulations;

·compliance with emerging climate change regulation;

·adequate internal control over financial reporting;

·various tax-related matters;

·potential opposition from non-governmental organizations;

·uncertainty regarding unsettled First Nations rights and title in British Columbia;

·uncertainties related to title to our mineral properties and surface rights;

·land reclamation requirements;

·our ability to identify and successfully integrate any material properties we acquire;

·currency fluctuations;

·competition in the mining industry for properties, qualified personnel and management;

·our ability to attract and retain qualified management and personnel;

·some of our directors’ and officers’ involvement with other natural resource companies;

·potential inability to attract development partners or our ability to identify attractive acquisitions;

·compliance with foreign corrupt practices regulations and anti-bribery laws;

·changes to rules and regulations, including accounting practices;

·limitations in our insurance coverage and the ability to insure against certain risks;

·risks related to ensuring the security and safety of information systems, including cyber security risks;

·our anti-takeover provisions could discourage potentially beneficial third-party takeover offers;

·significant growth could place a strain on our management systems;

·share ownership by our significant shareholders and their ability to influence our

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governance;

·failure to comply with certain terms of the convertible notes;

·reputational risks;

·future sales or issuances of our debt or equity securities;

·the trading price of our common shares is subject to volatility due to market conditions;

·we are limited in our ability to, and may not, pay dividends in the foreseeable future; and

·certain actions under U.S. federal securities laws may be unenforceable.

This list is not exhaustive of the factors that may affect any of our forward-looking statements. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements involve statements about the future and are inherently uncertain, and our actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this AIF under the heading “Risk Factors” and in our Management’s Discussion and Analysis for the years ended December 31, 2018 and 2017, as well as other applicable documents filed in Canada on SEDAR at www.sedar.com and in the United States through EDGAR at the SEC’s website at www.sec.gov.

Our forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond our control. In connection with the forward-looking statements contained in this AIF, we have made certain assumptions about our business, including about our planned exploration, development and production activities; the accuracy of our Mineral Resource estimates; capital and operating cost estimates; production and processing estimates; the results, costs and timing of future exploration and drilling; timelines and similar statements relating to the economic viability of the Brucejack Mine; timing and receipt of approvals, consents and permits under applicable legislation; the geopolitical, economic, permitting and legal climate that we operate in; the price of gold and other commodities; exchange rates; market competition; the adequacy of our financial resources, and such other material assumptions as are identified in our other applicable and publicly filed documents. We have also assumed that no significant events will occur outside of our normal course of business. Although we believe that the assumptions inherent in the forward-looking statements are reasonable as of the date of this AIF, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein.

We do not assume any obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking statements.

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Scientific and Technical Disclosure

Certain scientific and technical information relating to the Brucejack Project (as defined herein) contained in this AIF is derived from, and in some instances is an extract from, the report entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 prepared for us by Tetra Tech WEI Inc. (“Tetra Tech”) and co-authored by Snowden Mining Industry Consultants Inc. (“Snowden”), AMC Mining Consultants (Canada) Ltd. (“AMC”), ERM Rescan, BGC Engineering Inc. (“BGC”), Alpine Solutions Avalanche Services (“Alpine Solutions”) and Valard Construction (“Valard”) (the “Brucejack Report”) in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”).

The Brucejack Report is the only current NI 43-101 compliant technical report with respect to the Brucejack Project and supersedes all previous technical reports.

Each co-author of the Brucejack Report listed in the section entitled “Interest of Experts” of this AIF is a “qualified person” as defined in NI 43-101 (“QP”) and has reviewed, approved and verified certain scientific and technical information in this AIF that is derived from the Brucejack Report.

Scientific and technical information in this AIF not contained in the Brucejack Report has been reviewed, approved and verified by Mr. Kenneth C. McNaughton, M.A.Sc., P.Eng., our Vice President and Chief Exploration Officer, Lyle Morgenthaler, B.A.Sc., P.Eng., our Chief Mine Engineer, Russell Pennell, B.A.Sc., P.Eng., a former Senior Mine Planning Engineer of the Company, Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., our Vice President, Geology and Chief Geologist, and Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM CP(geo), who is independent of the Company, each of whom is a “qualified person” as defined in NI 43-101.

Reference should be made to the full text of the Brucejack Report, which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review under the Company’s profile on SEDAR at www.sedar.com. Alternatively, copies of the Brucejack Report may be inspected during normal business hours at the Company’s head office.

National Instrument 43-101 Definitions

Canadian reporting requirements for disclosure of mineral properties are governed by NI 43-101.  The definitions given in NI 43-101 are adopted from those given by the Canadian Institute of Mining Metallurgy and Petroleum.

Qualified Person A “Qualified Person” refers to an individual who is an engineer or geoscientist, holding the required accreditation, with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these, that has experience relevant to the subject matter of the project and report and is a member in good standing of a professional association.

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Mineral Resource	A “Mineral Resource” is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
Inferred Mineral Resource	An “Inferred Mineral Resource” is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Minerals Resources with continued exploration.
Indicated Mineral Resource	An “Indicated Mineral Resource” is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.
Measured Mineral Resource	A “Measured Mineral Resource” is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the appropriate application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.

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	Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Modifying Factors	“Modifying Factors” are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
Mineral Reserve	A “Mineral Reserve” is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could be reasonably justified. The reference point at which Mineral Reserves are defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported. The public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or Feasibility Study.
Probable Mineral Reserve	A “Probable Mineral Reserve” is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.
Proven Mineral Reserve	A “Proven Mineral Reserve” is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

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Cautionary Note to U.S. Investors

Technical disclosure contained or incorporated by reference in this AIF has not been prepared in accordance with the requirements of United States securities laws and uses terms that comply with reporting standards in Canada with certain estimates prepared in accordance with NI 43-101.  NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.  Unless otherwise indicated, all Mineral Reserve and Mineral Resource estimates contained in this AIF have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.

Canadian standards, including NI 43-101, differ significantly from the requirements of the Securities and Exchange Commission (“SEC”) under its Industry Guide 7 (“Guide 7”), and Mineral Reserve and Resource information contained or incorporated by reference in this AIF may not be comparable to similar information disclosed by U.S. companies reporting pursuant to Guide 7.  In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”.

Under Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made and volumes that are not “reserves’ should not be disclosed. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under Guide 7. Accordingly, Mineral Reserves estimates included in this AIF may not qualify as “reserves” under Guide 7. Guide 7’s current disclosure standards normally do not permit the inclusion of information concerning “Measured Mineral Resources”, “Indicated Mineral Resources” or “Inferred Mineral Resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by Guide 7 standards in documents filed with the SEC.

U.S. investors should also understand that “Inferred Mineral Resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of “Mineral Resources”, “Indicated Mineral Resources” or “Inferred Mineral Resource” will ever be upgraded to a higher category.  Under Canadian rules, estimated “Inferred Mineral Resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases.  Investors are cautioned not to assume that all or any part of the “Mineral Resources”, “Measured Mineral Resources”, “Indicated Mineral Resources” or “Inferred Mineral Resource” reported in this AIF exists or is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, Guide 7 normally only permits issuers to report mineralization that does not constitute “reserves” by Guide 7 standards as in-place tonnage and grade without reference to unit measures. Investors are specifically cautioned not to assume that all or any part of the mineral deposits in these categories will ever be converted into Guide 7-defined mineral reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under reporting standards in Canada differ in certain respects from the standards of Guide 7. Accordingly, information concerning mineral deposits set forth or incorporated by reference herein may not be comparable with information made public by companies that report in accordance with Guide 7.

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OUR BUSINESS

We were formed for the acquisition, exploration and development of precious metal resource properties in the Americas.  With steady state commercial production at our 100% owned Brucejack Mine, a high-grade gold underground mine located in northwestern British Columbia (“Brucejack”, the “Brucejack Project”, “Brucejack Property” or the “Brucejack Mine”), we are emerging as a premier low-cost intermediate gold producer.

We acquired the Brucejack Project, along with the Snowfield Project (the “Snowfield Project”) and other associated assets in October 2010. Brucejack is located in northwestern British Columbia, approximately 65 kilometres north of Stewart and is comprised of four mining leases and six mineral claims currently totaling 3,304 hectares in area and forms part of our contiguous claims package that comprises over 122,000 hectares.  Our only material mineral project for the purposes of NI 43-101 is Brucejack.

In 2011, Brucejack was drilled extensively in key target areas (73,200 metres in 185 holes), the camp at site was expanded and winterized, and rehabilitation work on the former access road from Highway 37 to the project was started, as well as the initial de-watering of the historic West Zone underground workings. Additionally, a preliminary economic assessment on the Project was completed.

Exploration was advanced in 2012 with an additional 105,820 metres of surface drilling completed in 307 holes, and with results continuing to demonstrate high grade, visible gold. The West Zone de-watering process continued, and the widening of the underground workings in the West Zone commenced with the excavation of an underground ramp that would lead from the West Zone to the new heart of the Brucejack Project, the Valley of the Kings deposit.

In 2013, the access road rehabilitation and the underground access ramp were completed, enabling us to proceed with a 10,000-tonne bulk sample from the Valley of the Kings. A positive feasibility study for an underground mine was completed in June. A total of 44,600 metres of drilling was completed, comprising 38,800 metres of underground drilling in 446 holes and 5,800 metres in 37 surface holes.

In 2014 the feasibility study was updated, and project engineering began along with mine permitting activities. Infill, exploration and condemnation drilling for site infrastructure totaled 11,920 metres in 41 holes.

We received our Environmental Assessment Certificate from the British Columbia Minister of the Environment and the Minister of Energy and Mines in March 2015, and a positive Federal Environmental Assessment Decision followed in July 2015. With the receipt of the major project permits, a substantial portion of the construction financing completed, a production decision was made and construction-related activity ramped up in September 2015.

In 2015 and 2016, a program of underground fan drilling at the Valley of the Kings was conducted.  In our press release dated May 31, 2016, we announced the completion of an infill drill program, which comprised 64,017 metres in 367 drill holes. The 2015/2016 infill drill

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program was successful in confirming the style and grade distribution of the gold mineralization in the area that was tested.

The focus in 2016 was construction, both at the mine site and the 57-kilometre transmission line being built to connect the project to grid power. The 2016 Mineral Resource Estimate Update (as defined herein) was announced in our press release dated July 21, 2016 and reflected a non-material increase in Measured Mineral Resources and additional Indicated Mineral Resources.

Construction of the Brucejack Mine and transmission line was completed in early 2017. After achieving commercial production on July 1, 2017, we transitioned into operations at the Brucejack Mine.

In 2018, we produced 376,012 ounces of gold at a mill feed grade of 11.9 grams per tonne gold, repurchased 100% of the 8% gold and silver stream that was sold as part of the construction financing package, refinanced the Construction Credit Facility by way of the $480 million Loan Facility (each as defined herein) and received amended permits to increase production to 3,800 tonnes per day. Our current focus is on the ramp-up of gold production to a rate of 3,800 tonnes per day.

Corporate Structure

The Company was incorporated under the Business Corporations Act (British Columbia) (the “BCBCA”) on October 22, 2010.  Our head and registered office is located at Suite 2300, 1055 Dunsmuir Street, PO Box 49334, Vancouver, British Columbia, V7X 1L4.

We have two wholly-owned subsidiaries, Pretium Exploration Inc. (“Pretium Exploration”) and 0890696 B.C. Ltd. (“089”), which hold our interests in the Brucejack Mine and the assets related thereto.  Both subsidiaries were incorporated under the BCBCA.

Significant Developments

Over the three most recently completed financial years, the significant events described below contributed to the development of our business.

2016 Significant Developments

·On February 17, 2016, we provided an updated cost estimate for the Brucejack Mine (the “February 2016 Capital Cost Update”).  The February 2016 Capital Cost Update was based on the achievement of the 60% engineering milestone and was carried out to update the Brucejack Report cost estimate for the Brucejack Mine. The February 2016 Capital Cost Update and Project Economics Update was superseded by the February 2017 Capital Cost Forecast and 2017 Project Economics Update (each as defined herein).

·Construction of the Brucejack Mine continued to advance on schedule. All major mechanical and electrical components were delivered to site and installation and assembly was ongoing. The shell, heads, gears motors and drives for the SAG and Ball mills were installed and the drives were scheduled to be energized in late March 2017. Electrical and

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instrumentation along with mechanical and piping installation within the mill building continued. The mine substation and central electrical room were completed for energization.

·In March 2016, we completed a marketed offering of our common shares (the “Common Shares”) in the amount of 26,210,000 at a price of $4.58 per Common Share, for gross proceeds of $120,041,800. The offering was done under a supplement to our short form base shelf prospectus dated July 14, 2014. The underwriters also exercised their over-allotment option and purchased an additional 2,174,000 Common Shares at $4.58 per Common Share, for additional proceeds of $9,956,920 for total gross proceeds of $129,998,720. Additional aggregate gross proceeds of approximately $16,212,078 were raised from a pro-rata private placement to Jin Huang Mining Company (formerly Xinxing Global Limited) and Orion Mine Finance Group.  The net proceeds of the marketed offering and the pro-rata offering were used to fund the development of the Brucejack Mine.

·In May 2016, we filed a short form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada, except Québec, and a corresponding shelf registration statement on Form F-10 with the SEC under the United States Securities Act of 1933, as amended, and Multijurisdictional Disclosure System established between Canada and the United States.  The base shelf prospectus allowed us to offer up to $600,000,000 of Common Shares, debt securities, preferred shares, subscription receipts, units, warrants and share purchase contracts from time to time over the 25-month period after Canadian securities regulatory authorities have issued a receipt for the final short form base shelf prospectus. The base shelf prospectus expired in June 2018.

·The 2016 grass-roots exploration program was conducted to evaluate the broader regional exploration potential of the Brucejack Property outside the area of known mineralization, east of the Valley of the Kings Deposit and comprised of approximately 1,200 square kilometres (the “Bowser Regional Project”).  Airborne magnetic and radiometric surveys as well as a hyperspectral survey, regional ground MT surveys, property scale mapping prospecting over the entire area and a limited drill program was completed to enhance geological interpretation.

·In our press release dated July 21, 2016, we announced an updated Valley of the Kings Mineral Resource estimate for Brucejack (the “2016 Mineral Resource Estimate Update”) in accordance with NI 43-101 for Brucejack, prepared under the guidance and supervision of Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM CP(geo), who is the independent QP responsible for the Mineral Resource for Brucejack. See “— Mineral Reserves and Mineral Resources” in this AIF.

·Construction of the 57-kilometre long transmission line was nearing completion. All of the towers were in place and the first 42-kilometre section was energized to the Knipple substation. Six 2-megawatt diesel generators were fully commissioned and, combined with our initial 5-megawatts of diesel power, were able to provide adequate power to maintain full mill and underground production in the event of any grid power interruption.

·Over 144,000 tonnes of ore were stockpiled on the surface and underground in preparation for mill commissioning. Underground development was well advanced with 12 stopes

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crosscut on two levels in preparation for long-hole drilling. Cross cutting of another 11 stopes progressed. Long-hole drilling of a test stope commenced, and excavation of the major development infrastructure was completed. Underground work was focused on continued ramp and level development and construction of underground infrastructure, including the crusher, conveyor, and transfer towers continued.

·In our press release dated December 15, 2016, we announced a positive updated Valley of the Kings Mineral Reserve estimate for Brucejack (“2016 Mineral Reserve Estimate Update”) which was based on the 2016 Mineral Resource Estimate Update.  See “— Mineral Reserves and Mineral Resources” in this AIF.

2017 Significant Developments

·In our press release of February 3, 2017, we announced that the total project capital cost forecast (the “February 2017 Capital Cost Forecast”) to complete construction of the Brucejack Mine, including contingencies, of $811.1 million, an increase of 16% from the February 2016 capital cost estimate of $696.8 million (the “February 2016 Capital Cost Estimate”), as set out in the February 2016 Capital Cost Update.  The February 2017 Capital Cost Forecast included $68.8 million of working capital for the first three months of production but did not take into account any revenue generated during this period. Key areas of capital cost increases from the February 2016 Capital Cost Estimate included the transmission line ($37.9 million); costs to accelerate commissioning ($13.9 million); new scope items ($21.7 million); construction overages ($34.1 million); and Indirects/Owner’s costs ($31.4 million).

·In February 2017 we completed an offering of $100 million aggregate principal amount of 2.25% unsecured convertible senior subordinated notes due in March 2022 (the “Notes”), which includes the exercise of the full amount of an over-allotment option of $10 million aggregate principal amount of Notes. The initial conversion rate for the Notes is 62.5000 Common Shares per $1,000 principal amount of Notes, equivalent to an initial conversion price of $16.00 per Common Share.  The net proceeds of the Notes offering were used for working capital during start-up of the Brucejack Mine and for general corporate purposes.

·Construction of the Brucejack Mine advanced ahead of schedule: construction of underground infrastructure, including the crusher, rock breaker, feeder, electrical substation, conveying system and transfer towers was completed and commissioned. All major mechanical and electrical components were delivered to site, installed and commissioned. The transmission line connecting the Brucejack Mine to the BC Hydro power grid was completed and energized in March 2017.

·Underground development continued to advance on schedule. Access to production levels from the 1200 to 1410-metre Levels was established and excavation of the major development infrastructure was completed. Underground work focused on continued ramp and level development and on establishing sills and opening levels laterally in support of the long-term mine plan.

·In May 2017, ore was first introduced to the mill with a focus on ramping up tonnage throughput to nameplate capacity as quickly as possible with low-grade ore.  During the

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month of June, the process plant at Brucejack processed 70,805 tonnes of ore (87.4% of one- twelfth of yearly nameplate capacity) from low-grade ore stockpiles for an average of 2,360 tonnes per day.  Effective July 1, 2017, commercial production was achieved at the Brucejack Mine.

·In July 2017, the process plant at Brucejack Mine continued to operate near nameplate capacity processing 83,667 tonnes of ore (99.9% of one-twelfth of yearly nameplate capacity) for an average of 2,699 tonnes per day from low-grade stockpiles, development muck and the introduction of stope ore.  The completion date for the Brucejack Mine was declared as August 1, 2017.

·In our press release dated August 10, 2017, we announced that our regional grass-roots exploration program on the Bowser Regional Project east of the Brucejack Mine had commenced for 2017. The regional exploration program included the collection of over 11,000 samples, regional mapping, prospecting, airborne geophysics, ground geophysics, hyperspectral mapping, and data compilation.  To date, our grass-roots exploration program has resulted in the identification of four distinct areas that have the potential to host epithermal mineralization: the American Creek Zone, the Bluffy Zone, the Koopa Zone and the Upper Kirkham Zone.

·During August and September of 2017, ramp-up continued to advance at the Brucejack Mine.  With the grade ramping up and the mill exclusively processing stope ore, production of doré and flotation concentrate increased. Positive working capital was achieved during the third quarter.

·During the third and fourth quarter of 2017, two sills were established to open up two mining horizons for 2018, the 1200-metre Level to the 1320-metre Level and the 1320-metre Level to the 1440-metre Level.

·In 2017, the Brucejack Mine produced 152,484 ounces of gold, which excludes 8,510 ounces of gold from pre-commercial production and 179,237 ounces of silver from low-grade stockpiles, development muck and stope ore.

·In 2017, the Company sold 141,927 ounces of gold and 127,746 ounces of silver. As at December 31, 2017, there were 7,716 ounces of gold doré and 10,328 ounces of gold in concentrate in finished goods.

·A total of 532,763 tonnes of ore, equivalent to a throughput rate of 2,895 tonnes per day, was processed in 2017. The mill feed grade was 9.4 grams per tonne gold and recovery was 96.2%. The mill process continues to be reviewed to optimize recoveries. The main operating units in the mill building performed as expected and planning is underway to replace the concentrate bagging system which caused increased mill downtime and maintenance requirements.

·During 2017, 552,205 tonnes of ore were mined, equivalent to a mining rate of 3,001 tonnes per day.

·In December 2017, an application was submitted to the BC Ministry of Energy, Mines and Petroleum Resources and the BC Ministry of Environment and Climate Change Strategy to

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increase the Brucejack Mine production rate to 3,800 tonnes per day. The application reflects a production rate increase to an annual average of 1.387 million tonnes from 0.99 million tonnes (daily average of 3,800 tonnes from 2,700 tonnes).

2018 Significant Developments

·In our press release dated January 23, 2018, we announced that grade reconciliation to the reserve model for the period August 1, 2017 to December 31, 2017 was approximately 75% to 80%. During the period, ore from the stopes developed on the 1200-metre Level sill provided approximately 25% of mill feed. These stopes were mined in establishing the 1200-metre Level sill as part of the long-term mine plan and had a lower drill density than stopes on other levels of the mine.

·In our press release dated February 26, 2018, we announced that the grade control program, designed to refine stope dimensions, reduce dilution and optimize grade, had commenced. The program is a data-driven and iterative process, which comprises drilling, sampling and local modelling.  In April 2018, we announced that the grade control program had been fully implemented into our mining process. In addition, we announced that the rate of underground development has been increased to an average of 700 metres per month for 2018, up from 420 metres considered in the Brucejack Report, to improve access and build stope inventory. Our grade control model continues to be refined and updated with the benefit of data from ongoing production.

·During 2018, we completed an underground exploration program to test for a porphyry source and to evaluate the potential extension of the Valley of the Kings to the east. The drill program followed-up on the success of the 2015 regional grass-roots exploration drill program which intersected high grade gold in the Flow Dome Zone, located approximately 500 metres east of the Brucejack Mine. Two holes, both over 1,500-metres in length and drilled east from the Valley of the Kings intersected alteration, veining, and mineralization throughout, confirming the presence of Brucejack-style mineralization starting from the eastern edge of the Valley of the Kings to beneath the Flow Dome Zone. In addition, the drilling intersected anomalous copper and molybdenum mineralization, which coupled with mineralogical indicators, suggest proximity to porphyry-style mineralization at depth. The drill results, along with geophysics and mineral chemistry, are currently being integrated to refine targeting of this zone for subsequent drilling. We plan to drill two targeted holes to further test the porphyry potential below the Flow Dome Zone.

·During 2018, we conducted a regional grass-roots exploration program on the Bowser Regional Project, which confirmed the presence of Brucejack-style high grade gold mineralization hosted in broad zones of low-grade stockwork, highlighting the potential for discovery of porphyry-related copper-gold mineralization and high-level epithermal mineralization on the property.

·On May 10, 2018, at our annual general meeting of shareholders, Faheem Tejani was elected to our Board of Directors (the “Board”), while C. Noel Dunn and Shaoyang Shen did not stand for re-election to the Board. On August 13, 2018, Nicole Adshead-Bell resigned as a

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member of our Board. On November 8, 2018, Robin Bienenstock was appointed as a member of our Board.

·In our press release dated July 9, 2018, we announced that the Brucejack Mine had achieved steady-state production.

·On July 25, 2018, we completed a non-brokered private placement offering of 227,273 flow-through Common Shares at a price of C$13.20 per Common Share for gross proceeds of approximately C$3 million. The proceeds of the offering were used to fund a portion of the 2018 grass-roots exploration program.

·On December 14, 2018, we received the amended permits from the BC Ministry of Energy, Mines and Petroleum Resources and the BC Ministry of Environment and Climate Change Strategy to increase the Brucejack Mine production rate to 3,800 tonnes per day, reflecting annual production rate increase to 1.387 million tonnes from 0.99 million tonnes. Minor mill upgrades to support the production rate increase are required and will be completed during regularly scheduled mill shutdowns in 2019 with a corresponding ramp-up to 3,800 tonnes per day production rate by year end. These upgrades are estimated to cost less than $15 million. In addition, mine development will increase to approximately 1,000 metres per month to support the ramp-up by the end of 2019.

·On December 18, 2018, we refinanced our Construction Credit Facility (as defined herein) by way of a $480 million debt facility (the “Loan Facility”) with a syndicate of financial institutions, including The Bank of Nova Scotia (“BNS”), SG Americas Securities, LLC (“SGAS”) and ING Capital LLC (“ING”). The Loan Facility is comprised of a $250 million senior secured amortizing non-revolving credit facility (the “Term Facility”) and a $230 million senior secured revolving credit facility (the “Revolving Facility”). Please see “— Indebtedness” in this AIF.

·On December 18, 2018, we also repurchased 100% of the callable 8% gold and silver stream for $237 million, which was sold by the Company as part of the construction financing package for the Brucejack Mine.

·In 2018, the Brucejack Mine produced 376,012 ounces of gold and 422,562 ounces of silver. The Company sold 367,428 ounces of gold and 327,090 ounces of silver.  As at December 31, 2018, there were 12,055 ounces of gold doré and 4,971 ounces of gold in concentrate in finished goods inventory.

·A total of 1,005,603 tonnes of ore, equivalent to a throughput rate of 2,755 tonnes per day, were processed in 2018. The mill feed grade averaged 11.9 grams per tonne gold and recovery was 97.3%. 1,055,208 tonnes of ore were mined, equivalent to a mining rate of 2,891 tonnes per day.

·The Company generated $454.6 million in revenue in 2018, resulting in net earnings of $36.6 million for the year. Full year 2018 cash generated from operations was $197.2 million.

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2019 Subsequent Developments

·In our press release dated February 14, 2019, we announced that:

·Reconciliation to the Valley of the Kings global resource model for 2018 improved to approximately 90% from 75-80% in 2017 (August 1, 2017 to December 31, 2017). Further, the reconciliation to the global resource model for the period April 1, 2018 to December 31, 2018 improved to approximately 92% when the grade control program became fully operational.

·Gold production at Brucejack for 2019 was expected in the range of 390,000 ounces to 420,000 ounces, with gold production guidance accounting for the planned production ramp-up from 2,700 tonnes per day to 3,800 tonnes per day over the course of 2019.

·We are targeting debt reduction of approximately $140 million from operating cash flow during 2019, based on a gold price of $1,250 per ounce and a $:C$ exchange rate of 0.78.

·Updated Mineral Resource and Mineral Reserve estimates for the Valley of the Kings and an updated life of mine plan for the Brucejack Mine are expected to be provided in the second quarter of 2019.

·The 2019 underground exploration drill program will be primarily focused on expanding the current Mineral Resource and Mineral Reserve at the Valley of the Kings. Zones at depth, to the east, west and north-east of the Valley of the Kings resource will be drilled as part of an approximately 70,000 metre drill program planned for 2019.

Lyle Morgenthaler, B.A.Sc., P.Eng., our Chief Mine Engineer, is the QP responsible for Brucejack Mine development and has reviewed and approved the scientific and technical information contained in this section of the AIF relating thereto.

Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., our Vice President, Geology and Chief Geologist, is the QP responsible for the Brucejack Mine grade control program and reconciliation of 2018 and 2017 production along with the Brucejack Mine resource and exploration drilling, and has reviewed and approved the scientific and technical information contained in this section of the AIF relating thereto.

Kenneth C. McNaughton, M.A.Sc., P.Eng., our Vice President and Chief Exploration Officer, is the QP responsible for the Bowser Regional grass-roots exploration program and has reviewed and approved the scientific and technical information contained in this section of the AIF relating thereto.

Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM CP(geo), an independent QP, is responsible for the Mineral Resource for Brucejack and has reviewed and approved the scientific and technical information contained in this section of the AIF relating thereto.

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Operating Results for 2018

In our press release dated February 14, 2019, we reported our operating results for the year ended 2018.  The operating results for the year ended 2018 were as follows:

·1,055,208 tonnes of ore were mined, equivalent to a mining rate of 2,891 tonnes per day;

·1,005,603 tonnes of ore were processed, equivalent to a throughput rate of 2,755 tonnes per day. The mill feed grade averaged 11.9 grams per tonne gold and recovery was 97.3%; and

·376,012 ounces of gold and 422,562 ounces of silver were produced, and 367,428 ounces of gold and 327,090 ounces of silver were sold.

The following table summarizes our operating results for the three months and year ended December 31, 2018.

	Three months ended December 31,			Year ended December 31,
		2018	2017	2018	2017(1)
Ore mined	t	283,136	280,671	1,055,208	552,205
Mining rate	tpd	3,078	3,051	2,891	3,001
Ore milled	t	267,048	271,501	1,005,603	532,763
Head grade	g/t Au	11.5	8.2	11.9	9.4
Recovery	%	97.0	95.8	97.3	96.2
Mill throughput	tpd	2,903	2,951	2,755	2,895
Gold ounces produced	oz	96,342	70,281	376,012	152,484
Silver ounces produced	oz	113,886	96,004	422,562	179,237
Gold ounces sold	oz	89,011	86,514	367,428	141,927
Silver ounces sold	oz	82,380	107,900	372,090	127,746

The following abbreviations were used above: t (tonnes), tpd (tonnes per day), g/t (grams per tonne), Au (gold) and oz (ounces).

(1)   Results for the year ended December 31, 2017 cover the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017. In addition, gold ounces produced for the year ended December 31, 2017 exclude 8,510 ounces produced in the pre-commercial production period.

Mineral Reserves and Mineral Resources

On June 30, 2014, we filed the Brucejack Report, which is a NI 43-101 compliant feasibility study.  See “The Brucejack Report” in this AIF.

Brucejack’s Valley of the Kings Proven and Probable Mineral Reserves as set out in the Brucejack Report are 6.9 million ounces of gold (13.6 million tonnes grading 15.7 grams of gold per tonne) and West Zone Proven and Probable Mineral Reserves are 600,000 ounces of gold (2.9 million tonnes grading 6.9 grams of gold per tonne).  The Mineral Reserve estimates by zone and Reserve category are summarized below:

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Valley of the Kings Mineral Reserve Estimate(1)(2) — June 2014

				Contained
Category	Tonnes (millions)	Gold (g/t)	Silver (g/t)	Gold (million oz)	Silver (million oz)
Proven	2.1	15.6	12	1.1	0.8
Probable	11.5	15.7	10	5.8	3.9
Total P&P	13.6	15.7	11	6.9	4.6

(1) Rounding of some figures may lead to minor discrepancies in totals.

(2) Based on C$180/t cut-off grade, $1,100/oz Au price, $17/oz Ag price, exchange rate of $0.92/C$1.

West Zone Mineral Reserve Estimate(3) — June 2014

				Contained
Category	Tonnes (millions)	Gold (g/t)	Silver (g/t)	Gold (million oz)	Silver (million oz)
Proven	1.4	7.2	383	0.3	17.4
Probable	1.5	6.5	181	0.3	8.6
Total P&P	2.9	6.9	279	0.6	26.0

(3) See notes (1) and (2) to the table above.

The Brucejack Report set out a base case ($1,100/ounce gold, $17/ounce silver and exchange rate of US$0.92:C$1) estimated pre-tax Net Present Value (5% discount) of $2.25 billion, with an internal rate of return of 34.7%.

The Brucejack Report contemplated average annual production during the first eight years of 504,000 ounces of gold and during the 18-year Life of Mine (“LOM”) 404,000 ounces of gold, an estimated capital cost, including contingencies, of $746.9 million and an average processing rate of 2,700 tonnes/day with operating costs of C$163.05 per tonne milled.

Updated Valley of the Kings Mineral Resource Estimate

In our press release of July 21, 2016, we announced the 2016 Mineral Resource Estimate Update, an updated Valley of the Kings Mineral Resource estimate in accordance with NI 43-101 for Brucejack.

The 2016 Mineral Resource Estimate Update was prepared under the guidance and supervision of Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM CP(geo), who is the independent QP responsible for the Mineral Resource for Brucejack.  The Company employed the same approach and methodology as was used for the Valley of the Kings Mineral Resource estimate in December 2013.

The 2015-2016 Valley of the Kings infill drill program was undertaken to support production planning in the Valley of the Kings and designed to convert Indicated Mineral Resources into Measured Mineral Resources in the areas to be mined in the first three years of the mine plan (1320-metre Level to 1200-metre Level) by increasing drill density to 7.5-metre to 10-metre centers.  The infill drill program was subsequently expanded to include extensions of Domain 20 which are adjacent to areas planned to be mined in the early years of the Brucejack Report mine plan.  The program, which consisted of 64,017 metres in 367 drillholes, was successful in

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increasing the Measured Mineral Resources in the Valley of the Kings by 58% to 1.9 million ounces (3.5 million tonnes grading 17.0 grams per tonne gold). Results from the program confirmed the style and grade distribution of the gold mineralization in the area being tested, and included the intersection of high grade and visible gold.

The program was also successful in adding Indicated Mineral Resources, with Measured and Indicated Mineral Resources in the Valley of the Kings totalling 9.1 million ounces of gold (16.4 million tonnes grading 17.2 grams per tonne gold), an increase from the December 2013 Valley of the Kings Mineral Resource estimate of Measured and Indicated Mineral Resources which totalled 8.7 million ounces of gold (15.3 million tonnes grading 17.6 grams per tonne gold).  The following table is a summary of the 2016 Mineral Resource Estimate Update:

Valley of the Kings Mineral Resource Estimate — July 2016(1)(4)

(Based on a gold-silver cut-off grade of 5.0 grams/tonne(5))

				Contained(3)
Category	Tonnes (millions)	Gold (g/t)	Silver (g/t)	Gold (million oz)	Silver (million oz)
Measured	3.5	17.0	15.3	1.9	1.7
Indicated	13.0	17.3	15.0	7.2	6.2
M&I	16.4	17.2	15.0	9.1	7.9
Inferred(2)	4.6	21.0	26.9	3.1	4.0

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

(2) The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

(3) Contained metal figures and totals may differ due to rounding of figures.

(4) The Mineral Resource estimate stated in this table is defined using 10 m by 10 m by 10 m blocks in the Valley of the Kings.

(5) The gold-silver cut-off value is defined as Au + Ag/53.

The 2016 Mineral Resource Estimate Update confirmed the geological model for the Valley of the Kings and combined Measured and Indicated Resources‎ have not materially changed.  The Valley of the Kings remains open to the east and west along strike, and at depth.

There was no depletion of the Mineral Resource by production as at July 2016.

Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM CP(geo) is the independent QP responsible for the 2016 Mineral Resource Estimate Update for Brucejack and has reviewed and approved the scientific and technical information contained in this section of the AIF relating thereto.

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Updated Valley of the Kings Mineral Reserve Estimate

In our press release dated December 15, 2016 we announced the 2016 Mineral Reserve Estimate Update, a positive updated Valley of the Kings Mineral Reserve estimate for Brucejack, which was based on the 2016 Mineral Resource Estimate Update.  The following table is a summary of the 2016 Mineral Reserve Estimate Update.

Highlights of the 2016 Mineral Reserve Estimate Update include Proven Mineral Reserves in the Valley of the Kings increased to 1.6 million ounces gold (3.3 million tonnes grading 14.5 grams per tonne gold) which is sufficient for the first three years of mine life and Proven and Probable Mineral Reserves in the Valley of the Kings increased to 8.1 million ounces gold (15.6 million tonnes grading 16.1 grams per tonne gold).

Areas of gain in the 2016 Mineral Reserve Estimate Update are attributed to: (a) increasing drill density to 7.5-metre to 10-metre centers which allowed for conversion of a significant amount of Probable Reserve to the Proven Reserve category; (b) adjustments made to the stope orientation and design parameters; and (c) the addition of grade to the background mineralization for the estimate which had previously been modeled at zero grade.

Valley of the Kings Mineral Reserve Estimate — December 2016(1-5)

				Contained
Category	Tonnes (millions)	Gold (g/t)	Silver (g/t)	Gold (million oz)	Silver (million oz)
Proven	3.3	14.5	12.9	1.6	1.4
Probable	12.3	16.5	11.3	6.5	4.5
Total	15.6	16.1	11.1	8.1	5.9

(1) The Mineral Reserves and Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

(2) Contained metal figures and totals may differ due to rounding of figures.

(3) A 94% tonnage recovery is used.

(4) Assumptions used include $1,100 per ounce of gold $17 per ounce of silver and a US$0.92:C$1 exchange rate.

(5) An NSR cut-off of C$180/tonne was used to optimize the stopes.

Russell Pennell, B.A.Sc., P.Eng., a former Senior Mine Planning Engineer of the Company is the QP that has reviewed and approved the scientific and technical information in this section of the AIF.

Updates Mineral Resource and Mineral Reserve Estimates

Updated Mineral Resource and Mineral Reserve estimates for the Valley of the Kings and an updated life of mine plan for the Brucejack Mine are expected to be provided early in the second quarter of 2019.

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Capital Cost

The final cost to construct the Brucejack Mine was $940.0 million which included non-cash items not included in the February 2017 Capital Cost Forecast nor the February 2016 Capital Cost Update, such as capitalized borrowing costs, depreciation, share-based compensation and recognition of the decommission and restoration provision. The cash costs to construct the Brucejack Mine were $827.7 million.

The key areas of increase from the February 2017 Capital Cost Forecast included Mine Underground costs of $10 million for additional development required for operations (underground mining costs are also included in “Working Capital” costs which represent the first three months of operation start-up) and Indirect costs of $10 million for additional site snow removal during early 2017 and vendor assistance during the commissioning phase.

The following is a summary of the Final Actual Capital Cost compared with the February 2017 Capital Cost Forecast and the February 2016 Capital Cost Estimate:

Capital Cost Summary Comparison(1)

	December 31, 2017 Actual ($ million)	February 2017 Capital Cost Forecast ($ million)	February 2016 Capital Cost Estimate ($ million)
Mine underground	113.8	90.7	101.4
Mine site(2)	255.4	250.4	165.3
Offsite Infrastructure(3)	106.4	108.8	81.0
Total Direct Costs	475.6	449.9	347.7
Indirect Costs	88.8	78.3	97.5
Owner’s Costs	208.4	209.0	160.3
Contingency	—	5.1	35.3
Total Capital Cost	772.7	742.3	640.8
Working Capital	55.0	68.8	56.0
Total Construction Cost	827.7	811.1	696.8

(1)US$0.747:C$1 Actual; US$0.75:C$1 for 2017 Forecast and 2016 Estimate.

(2)Includes mine site, mine site process, mine site utilities, mine site facilities, tailings facilities, mine site temporary facilities and surface mobile equipment.

(3)Includes transmission line.

In our press release of February 21, 2017, we announced the February 2017 Capital Cost Forecast, being that our total project capital cost forecast to complete construction of the Brucejack Mine, including contingencies, was $811.1 million, an increase of 16% from the February 2016 Capital Cost Estimate of $696.8 million.  Key areas of capital cost increases from the February 2016 Capital Cost Estimate included the transmission line ($37.9 million); costs to accelerate commissioning ($13.9 million); new scope items ($21.7 million); construction overages ($34.1 million); and Indirects/Owner’s costs ($31.4 million).

The Brucejack Mine economics were updated (the “2017 Project Economics”) based on the February 2017 Capital Cost Forecast (the “2017 Project Economics Update”).  Net Cash Flows

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and Net Present Values decreased slightly, and Internal Rates of Return and Payback improved marginally in comparison to the Project economics that were announced in our press release dated February 17, 2016.

The following table provides an updated summary of the 2017 Project Economics by metal price.

Summary of Brucejack Economic Results by Metal Price — February 2017 Update(1)(2)

	Low Case	Base Case	High Case
Gold Price (US$/ounce)	$800	$1,100	$1,400
Silver Price (US$/ounce)	$10.00	$14.00	$18.00
Net Cash Flow (US$)	$2.11 billion (pre-tax) $1.47 billion (post-tax)	$4.22 billion (pre-tax) $2.82 billion (post-tax)	$6.32 billion (pre-tax) $4.17 billion (post-tax)
Net Present Value(3) (5.0% discount) (US$)	$1.05 billion (pre-tax) $0.69 billion (post-tax)	$2.34 billion (pre-tax) $1.53 billion (post-tax)	$3.62 billion (pre-tax) $2.36 billion (post-tax)
Internal Rate of Return	19.9% (pre-tax) 16.5% (post-tax)	34.4% (pre-tax) 28.5% (post-tax)	47.5%(pre-tax) 39.1% (post-tax)
Payback(from start of production period)	5.0 years (pre-tax) 5.2 years (post-tax)	3.3 years (pre-tax) 3.5 years (post-tax)	2.5 years (pre-tax) 2.7 years (post-tax)
Exchange Rate (US$:C$)	0.75	0.75	0.75

(1) Includes impact from financing announced Sept 15, 2015.

(2) Financing impact assumes repayment of debt facility at maturity, exercise of maximum buyout options for offtake and stream facilities at December 31, 2018.

(3) NPV is discounted to December 31, 2015.

Exploration Assets

Our exploration and evaluation assets are the Snowfield Project and Bowser Regional Project.

Snowfield Project

We have a 100% interest in the Snowfield Project which borders Brucejack Mine to the north and is comprised of one mineral claim with an area of 1,217 hectares.  The Snowfield Project mineral claim is in good standing until 2029 and we continue to conduct baseline environmental studies for potential future development.

The Snowfield Project represents a longer-term gold opportunity for our shareholders.  Although we do not have a development plan as yet for the Snowfield Project, we plan to continue to explore the area and have budgeted for additional environmental studies which will benefit both Brucejack and Snowfield Projects.

Bowser Regional Project

The Bowser Regional Project area is southeast of the Brucejack Mine and comprises 1,220 square kilometres. An extensive regional exploration campaign was initiated in 2015 to identify mineralized zones similar to the Valley of the Kings and Eskay Creek deposits. In 2018, an 8,000-metre regional exploration drill program on the Bowser Regional Project confirmed the

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presence of Brucejack-style high grade gold mineralization hosted in broad zones of low-grade stockwork, highlighting the potential for discovery of porphyry-related copper-gold mineralization and high-level epithermal mineralization on the property. To date, the program has resulted in the identification of four distinct areas that have the potential to host epithermal mineralization: the American Creek Zone, the Bluffy Zone, the Koopa Zone and the Upper Kirkham Zone.

Several gold and silver epithermal targets have been identified in the American Creek Zone located approximately 25 kilometres southeast of the Brucejack Mine. The American Creek valley is dominated by kilometre-scale north-south structures and localized east-west stockworks, which host elevated gold values of up to 62.5 grams of gold per tonne in rocks of the Lower Hazelton Group, Unuk River Formation, the same formation that hosts the Brucejack Mine. Geophysical conductors identified in the American Creek Zone are supported by coincident pathfinder minerals and trace elements associated with epithermal mineralization. Drilling in 2018 successfully intersected broad zones of low-grade mineralization at the north end of the American Creek Zone (Lillianne showing) and an upper expression of a polymetallic epithermal vein system near the center of the American Creek Zone (Virginia K showing). At the south end of the American Creek Zone (Outlaw showing), vein-hosted copper mineralization was intersected which is interpreted as the upper expression of a porphyry system. A review of the strong alteration and metal zonation intersected in drill core will be conducted to focus future drilling on the higher-grade segments of these mineralization systems.

The Bluffy Zone, located 30 kilometres south-southeast of the Brucejack Mine hosts disseminated sulphide mineralization in the Unuk River Formation of the Lower Hazelton Group, which also hosts the Valley of the Kings deposit. Drilling in 2018 intersected broad zones of low-grade gold hosted in shear zones, which contain narrow veins of high grade gold and base metal values. This drilling has confirmed that a substantial mineral system was active at the Bluffy Zone and additional work is being planned to further delineate the higher-grade mineralization.

The Koopa Zone, located approximately 30 kilometres east-southeast of the Brucejack Mine, is dominated by intensely quartz-sericite pyrite altered Salmon River Formation volcanics and Quock Formation sediments of the Upper Hazelton Group, which also hosts the Eskay Creek deposit. At the Koopa Zone, a structurally controlled epithermal system appears to be overprinting a VMS style alteration system. The stratigraphy, alteration, and broad halo of pathfinder elements are indicative of a potentially large mineralization system. Follow-up drilling in the Koopa Zone is planned for 2019.

The 2018 prospecting program successfully resulted in the discovery of the Upper Kirkham Zone, located four kilometres southwest of the Bowser Camp. Epithermal-style polymetallic veins with strong quartz-sericite pyrite alteration halos were intersected in an area recently exposed by the receding glacier. Prospecting samples collected across the Upper Kirkham Zone returned assays as high as 3.55 grams per tonne of gold, greater than 10,000 grams per tonne of silver, 4.71% copper, greater than 20% lead and 3.81% zinc. Follow-up drilling as well as additional prospecting is planned to resume in 2019.

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Kenneth C. McNaughton, M.A.Sc., P.Eng., our Vice President and Chief Exploration Officer, is the QP responsible for the Bowser Regional grass-roots exploration program and has reviewed and approved the scientific and technical information in this section of the AIF related thereto.

Specialized Skills and Knowledge

The nature of our business requires specialized skills and knowledge. We operate an underground mining operation in northern British Columbia with variable gold mineralization, which requires technical expertise in the specific areas and as such, we employ a number of people with extensive experience in geology, engineering, mine planning, metallurgical processing, mine operations, environmental compliance, sustainability, exploration and development, and accounting.

In order to attract and retain personnel with the specialized skills and knowledge required for our operations, we maintain competitive remuneration and compensation packages. To date, we have been able to meet our staffing requirements.

Employees

We employed a total of 571 full-time employees as at December 31, 2018, excluding 82 seasonal full-time employees hired for the winter months. Due to the rotational nature of employment at Brucejack Mine, there may be two people for the majority of positions at site. We are committed to providing, where possible, employment opportunities with members of the local communities and First Nations.

Competitive Conditions

The precious metal mineral exploration and mining business is competitive, including with respect to mineral properties that can be developed and produced economically, technical experts that can find, develop and mine such mineral properties, labour to operate the mineral properties, and capital to finance exploration, development and operations. We compete with numerous other companies, including many large established mining companies having substantial capabilities and greater financial and technical resources than us. Our current focus is on gold production at the Brucejack Mine and as such, we are subject to certain advantages and disadvantages related to various factors, including the price of gold. See “Risk Factors” below.

Cycles

Year-round operations in the northern British Columbia present certain challenges, particularly in the winter months. We believe we have adequately accounted for such challenges in our business and operational plans; however, there are risks associated with such operations. See “Risk Factors” below.

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Social and Environmental Policies

We have adopted several policies concerning health, safety, and the overall welfare of people and the environment. These policies include the Code of Business Conduct and Ethics of the Company (the “Code”), Health and Safety Policy, Fitness for Duty Policy, Social Responsibility Policy and Environmental Policy.

The Code embodies our commitment to ethical principles and sets out our responsibilities to our shareholders, employees, lenders and other stakeholders.  Our Code addresses general business ethical principles, conflicts of interests, special ethical obligations for employees with financial reporting responsibilities, insider trading laws, reporting of any unlawful or unethical conduct, political contributions and other relevant issues.

Our Code also states our commitment to a work environment that is free from discrimination and harassment and our commitment to providing all employees a workplace that respects their basic human rights. The Code can be found on our website and is available under our profile on SEDAR at www.sedar.com.

With respect to health and safety, we have implemented policies and practices with respect to our operations at the Brucejack Mine, which include the maintenance of a drug and alcohol-free environment.  We believe that safe operating practices are a shared responsibility among our management, employees, contractors and community visitors.  We are all committed to the implementation of health and safety practices to ensure our own personal safety and the safety of our fellow employees.

Our Social Responsibility Policy describes the principles that guide our activities in the area of community relations, and the policy is framed by two detailed management plans under our permits that govern the formal aspects of relationship management: (i) The Economic and Social Effects Mitigation Plan addresses the scope of our initiatives for employment, training and contracting in the region; and (ii) the Aboriginal Consultation Plan outlines our communication plans and commitments in the area of First Nations engagement.

We are committed to maintaining environmental protection practices compliant with applicable laws and contractual obligations, and to practicing environmental stewardship which seeks to minimize the impact of our operations on the environment. In furtherance of this commitment, we have developed Environmental Management Plans to operate Brucejack in a manner in accordance with our corporate Environmental Policy and regulatory requirements. We require that all employees, contractors and suppliers comply with our corporate commitments to protect the natural environment, and to that end we provide them with the resources and training necessary to fulfill their responsibilities.

In addition, our Board has adopted a Whistle Blower Policy for individuals to report complaints and concerns regarding, among other things, violations of the Code. As well, we have a Corrupt Practices Policy, which requires that directors, officers, employees and contractors conduct business in a manner that does not contravene anti-bribery and anti-corruption laws, including the Criminal Code (Canada), Corruption of Foreign Public Officials Act (Canada) and the Foreign Corrupt Practices Act (United States).

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Our employee health and safety, environmental and sustainability activities are overseen by the Sustainability and Technical Committee of the Board.

Permitting and Environmental

Our development, exploration and operating activities are subject to various levels of federal, provincial and municipal laws and regulations relating to the protection of the environment, including requirements for closure and reclamation of mining properties.

There are specific statutory and regulatory requirements and standards that must be met throughout the exploration, development and operations stages of a mining property with respect to air quality, water quality, fisheries and wildlife protection, solid and hazardous waste management and disposal, noise, land use and reclamation. We believe our operational, development and environmental plans adequately address the environmental risks associated with our operations and that we currently have in place appropriate safeguards to protect the environment.

We have operated in material compliance with our environmental approvals and have successfully administered a rigorous environmental monitoring and reporting program.

We believe we have appropriately accounted for the costs associated with our environmental protection, monitoring and controls; however, environmental regulations are evolving in a manner which tends to impose higher standards with respect to permitting and environmental controls, as well as stricter enforcement of non-compliance penalties for companies and their directors, officers and employees with respect to compliance.

We may be required to post additional security in respect of its environmental obligations. Any changes to the current environmental regulatory regime to which we are subject may result in increased costs and decreased production and revenue in the future, which could adversely affect our earnings and competitive position.  See “Risk Factors” below.

Indebtedness

Construction Financing Package

In September 2015, we completed a $540,000,000 construction financing package comprised of a credit facility for $350,000,000 (the “Construction Credit Facility”), a $150,000,000 prepayment under a callable gold and silver stream agreement (the “Stream Agreement”) and a private placement of Common Shares for $40,000,000. As part of the construction financing package, we entered into an offtake agreement with Pretium Exploration, 089, Orion Co-Investments II (Stream) Limited (“Orion Stream”) and BTO Midas L.P. (“BTO Midas”), dated September 15, 2015 (the “Offtake Agreement”). Subsequently, BTO Midas assigned its interest in the Offtake Agreement to Triple Flag Mining Finance Bermuda Ltd., and Osisko Bermuda Limited or its affiliates assumed Orion Stream’s interest in the Offtake Agreement. On December 18, 2018, we refinanced the Construction Credit Facility by way of the Loan Facility and repurchased our obligation under the callable 8% gold and silver stream for $237 million. See “— Debt Refinancing” below.

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The Offtake Agreement applies to sales from the first 7,067,000 ounces of refined gold (less any delivered ounces pursuant to the Stream Agreement). Orion Stream and BTO Midas will pay for refined gold based on a market referenced gold price in U.S. dollars per ounce during a defined pricing period before and after the date of each sale. The offtake obligation applies to 100% of refined gold produced at the Brucejack Mine. Moreover, Pretium Exploration has the option to reduce the offtake obligation by one of the following options:

i.Effective on December 31, 2018, Pretium Exploration can elect to reduce the offtake obligation to either i) 50% by paying $11 per ounce multiplied by 0.5, on the remaining undelivered gold ounces, or ii) 25% by paying $11 per ounce multiplied by 0.75, on the remaining undelivered gold ounces; or

ii.Effective on December 31, 2019 Pretium Exploration can elect to reduce the offtake obligation to either i) 50% by paying $13 per ounce multiplied by 0.5, on the remaining undelivered gold ounces, or ii) 25% by paying $13 per ounce multiplied by 0.75, on the remaining undelivered gold ounces.

Convertible Debenture

In February 2017, we completed an offering of $100 million aggregate principal amount Notes, which includes the exercise of the full amount of the over-allotment option of $10 million aggregate principal amount of Notes. The Notes were issued pursuant to an indenture between the Company and U.S. Bank National Association, dated as of February 14, 2017 (the “Indenture”). The Notes will mature on March 15, 2022.

Pursuant to the terms of the Notes, we are required to pay 2.25% interest per annum on the principal amount of the Notes semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2017. Interest on the Notes accrues from and including February 14, 2017 or from and including the last date in respect of which interest has been paid or provided for, as the case may be, to, but excluding, the next interest payment date or maturity date, as the case may be.

The initial conversion rate for the Notes is 62.5000 Common Shares per $1,000 principal amount of Notes, equivalent to an initial conversion price of $16.00 per Common Share. Subject to earlier redemption or purchase, holders may convert their Notes at any time until the close of business on the business day immediately preceding March 15, 2022. A holder that surrenders Notes for conversion in connection with a “make-whole fundamental change” (as defined in the Indenture) or a notice of redemption may in certain circumstances be entitled to an increased conversion rate.

We may not redeem the Notes before March 20, 2020, except in the event of certain changes in Canadian tax law. At any time on or after March 20, 2020, we may redeem all or part of the Notes for cash, but only if the last reported sale price of our Common Shares for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date we provide notice of redemption exceeds 130% of the conversion price in effect on each such trading day. The redemption price will equal to the sum of 100% of the principal amount of the Notes to be redeemed and accrued and unpaid interest, if any, to, but excluding, the redemption date. We may also redeem the Notes upon the occurrence of certain changes to the laws governing Canadian withholding taxes. In addition, we will be required to offer to purchase for cash all of the

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outstanding Notes upon a fundamental change, as further set out in the Indenture, at a purchase price in cash equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change purchase date.

Pursuant to the terms of our Credit Agreement (as defined herein), payment in full at maturity or prepayment at any time of all or any part of the principal and accrued interest owing under the Notes is subject to our pro forma compliance with financial covenants set out in the Credit Agreement. See “— Debt Refinancing” below.

The Notes are our unsecured senior subordinated obligations and are subordinated in right of payment to the prior payment in full of all of our existing and future senior indebtedness. The Notes will also be effectively subordinated to all of our existing and future secured indebtedness and all existing and future liabilities of our subsidiaries, including trade payables.

The net proceeds of the Notes offering were used for working capital during start-up of the Brucejack Mine and for general corporate purposes.

Debt Refinancing

On December 18, 2018, we refinanced our Construction Credit Facility by way of a $480 million Loan Facility with a syndicate of financial institutions, including BNS, SGAS and ING. The terms and conditions of the Loan Facility are set out in the Credit Agreement dated as of December 18, 2018 among the Company, as borrower, the lenders from time to time parties thereto, BNS, as Administrative Agent, BNS, ING and SGAS, as Joint Lead Arrangers and Joint Bookrunners, and ING and SGAS, as Co-Syndication Agents (the “Credit Agreement”). The Loan Facility was fully drawn as at December 31, 2018.

The Loan Facility is comprised of a $250 million Term Facility and a $230 million Revolving Facility. The Term Facility and the Revolving Facility are available by way of U.S. dollar LIBOR loans, with an interest rate ranging from 2.5% to 3.5% over LIBOR based on the Company’s net leverage ratio or U.S. dollar base rate loans with an interest rate ranging from 1.5% to 2.5% over the administrative agent’s base rate based on the Company’s net leverage ratio. The Revolving Facility is also available in various other forms, including Canadian prime loans, bankers’ acceptances and bankers’ acceptance equivalent loans, and letters of credit. The Revolving Facility is subject to a standby fee ranging from 0.5625% to 0.7875% based on the Company’s net leverage ratio.

The term of the Loan Facility is four years with a maturity date of December 18, 2022. The Term Facility will be repaid in equal quarterly installments of principal in the amount of $16.67 million commencing at the end of the second quarter of 2019. The Revolving Facility requires a principal repayment of $30 million on June 18, 2019, reducing the Revolving Facility to $200 million. The remaining principal of the Revolving Facility will be repaid as a bullet payment in full on the maturity date.

The Company is permitted to make prepayments on the Loan Facility at any time, on customary notice, without premium or penalty; subject to LIBOR breakage, if any, costs and customary minimums. In addition, the Credit Agreement requires mandatory prepayment of the Loan Facility or a portion thereof from certain net insurance proceeds received in the event of loss of any tangible property, assets or undertaking forming part of the Brucejack Mine property. Amounts

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prepaid on the Term Facility, whether in connection with voluntary or mandatory prepayments, cannot be re-borrowed and shall be applied in inverse order of maturity.

The Loan Facility includes standard and customary finance terms and conditions with respect to, among others, fees, representations, warranties, and covenants, including certain reporting requirements, which, if not met, could result in an event of default. The financial covenants under the Loan Facility include maintenance of a minimum interest coverage ratio of 4.00:1.00, a maximum leverage ratio of 3.50:1.00, and minimum tangible net worth and liquidity thresholds. In addition, at any time while the Notes remain outstanding, the Company is required to maintain (a) on or after June 30, 2021 but before September 30, 2021, minimum liquidity of $50 million, (b) on or after September 30, 2021 but before December 31, 2021, minimum liquidity of $75 million, and (c) on or after December 31, 2021, minimum liquidity of $100 million.

The Loan Facility is subject to standard and customary negative covenants, including, among others, restrictions on indebtedness, certain acquisitions, and payments such as (but not limited to) dividends, distributions or returns of capital with respect to the Common Shares, and payments on account of purchase, redemption, retirement or other acquisition of any of the Company’s securities, subject to various exemptions, including but not limited to:

i.Cash dividend payments, distributions or returns of capital and repurchase of Common Shares in an amount not to exceed $40 million per year, commencing in fiscal 2020 and subject to pro forma compliance with financial covenants and a leverage ratio of less than or equal to 1.5x;

ii.Payment in full at maturity or prepayment at any time of all or any part of the principal and accrued interest owing under the Notes, subject to pro forma compliance with financial covenants;

iii.Certain permitted convertible indebtedness, including the Notes and other unsecured notes and debentures, the aggregate principal amount of which shall not exceed $100 million and, in the case of such other unsecured indebtedness (hereinafter, the “Permitted Unsecured Debt”), provided that the financial covenants have been complied with (on a pro forma basis), the scheduled maturity date is at least one year beyond the maturity date under the Credit Agreement and such indebtedness shall not have material terms that are materially less favorable than those under the Credit Agreement;

iv.Certain permitted acquisitions, which are limited to, among other things, non-hostile acquisitions of 75% or more of entities operating in certain permitted jurisdictions, and a cap on the aggregate cost of non-share consideration; and

v.Certain permitted indebtedness, which includes capital lease obligations and indebtedness secured by purchase money liens, surety bond obligations to support environmental obligations, and a general basket.

The Company is in compliance with all financial and operating covenants under the Loan Facility as at the date of this AIF.

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The Credit Agreement includes standard and customary events of default, including any abandonment, loss or termination of the Brucejack Mine or any material property or right in connection therewith or suspension of mining operations thereon or if the Company or any of the guarantors offers to prepay the Permitted Unsecured Debt.

The Loan Facility was used to refinance the Construction Credit Facility in the amount of approximately $423 million. The additional funds from the Loan Facility and cash on hand generated from operating activities were used to repurchase the Company’s obligation under its callable 8% gold and silver stream for $237 million, which was sold by the Company as part of the construction financing package, and for working capital.

Principal Markets and Distribution

The Offtake Agreement applies to the sales from the first 7,067,000 ounces of refined gold.  The purchasers under the Offtake Agreement will pay for refined gold based on a market referenced gold price in U.S. dollars per ounce during a defined pricing period before and after the date of each sale.

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BRUCEJACK 43-101 REPORT

Unless stated otherwise, the scientific and technical information in this AIF is solely derived from, and in some instances is an extract from, the Brucejack Report.

The following disclosure relating to the Brucejack Mine is based on information derived from the Brucejack Report, the NI 43-101 compliant feasibility study on Brucejack.

Reference should be made to the full text of the Brucejack Report, which is available electronically on the SEDAR website at www.sedar.com under our SEDAR profile, as the Brucejack Report contains additional assumptions, qualifications, references, reliances and procedures which are not fully described herein.

The “Resource Estimate” in the Brucejack Report has been prepared in compliance with NI 43-101 and Form 43-101F1 which require that all estimates be prepared in accordance with the “CIM Definition Standards on Mineral Resources and Mineral Reserves as prepared by the CIM Standing Committee on Reserve Definitions” and in effect as of the effective date of the Brucejack Report.

The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

The Brucejack Project (also known as the “Property” in the Brucejack Report) consists of four mining leases and six mineral claims currently totalling 3,304 hectares.  The mining leases require annual payments to remain in good standing and, as at the date of this AIF, the mineral claims are in good standing until January 31, 2029.

Project Description and Location

The Brucejack Project is centred at approximately latitude 56°28’20”N by longitude 130°11’31”W, approximately 950 kilometres northwest of Vancouver, 65 kilometres north-northwest of Stewart, and 21 kilometres south-southeast of the Eskay Creek Mine.

We acquired our 100% outright interest in the Brucejack Project in December 2010, pursuant to the acquisition agreement with Silver Standard Resources Inc. (now known as SSR Mining Inc.)(“Silver Standard”).  The Brucejack Project is subject to a 1.2% net smelter returns royalty in favour of Franco-Nevada Corporation (“Franco-Nevada”) on production in excess of 503,386 ounces of gold and 17,907,080 ounces of silver.

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Property Location Map

Accessibility, Climate, Local Resources, Infrastructure and Physiography

Accessibility

The Brucejack Project is located in the Boundary Range of the Coast Mountain Physiographic Belt along the western margin of the Intermontane Tectonic Belt.  The terrain is generally steep with local reliefs of 1000 metres from valleys occupied by receding glaciers, to ridges at elevations of 1200 metres above sea-level.  Elevations within the Brucejack Project area range from 1366 metres along Brucejack Lake to 1650 metres at the Bridge Zone.  However, within several areas, the relief is relatively low to moderate.

We have completed construction of our approximately 74 kilometre exploration access road that links the Brucejack Camp to Highway 37 via the Knipple Glacier, Bowser Camp and Wildfire Camp.  Personnel, equipment, fuel and camp provisions are driven to a staging area on the Knipple Glacier before being taken over the glacier to the Brucejack Camp.  The area is easily accessible by helicopter from the town of Stewart, or seasonally from the settlement of Bell II.  The flight time from Stewart is approximately 30 minutes and slightly less from Bell II.

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Climate

The climate is typical of north-western British Columbia with cool, wet summers, and relatively moderate but wet winters.  Annual temperatures range from +20°C to -20°C.  Precipitation is high with heavy snowfall accumulations ranging from 10 metres to 15 metres at higher elevations and 2 metres to 3 metres along the lower river valleys.  Snow packs cover the higher elevations from October to May.  The optimum field season is from late June to mid-October.

Local Resources and Infrastructure

There are no local resources other than abundant water for any drilling work.

The nearest infrastructure is the town of Stewart, approximately 65 kilometres to the south, which has limited supplies and personnel.  The towns of Terrace and Smithers are also located in the same general region as the Brucejack Project.  Both are directly accessible by daily air service from Vancouver.

The nearest railway is the Canadian National Railway Yellowhead route, which is located approximately 220 kilometres to the southeast.  This line runs east-west and terminates at the deep water port of Prince Rupert on the west coast of British Columbia.  The most northerly ice-free shipping port in North America, in Stewart, is accessible to store and ship concentrates.

A high voltage, 138-kV transmission line currently services Stewart, BC and has sufficient capacity to provide power to the Brucejack Project.  BC Hydro has started engineering work on a system upgrade to provide for the interconnection of the transmission line that will service the Brucejack Project with the 138-kV transmission line servicing the town of Stewart.

History and Exploration

The exploration history of the area dates back to the 1880s when placer gold was located at Sulphurets and Mitchell Creeks.  Placer mining was intermittently undertaken throughout the early 1900s and remained the main focus of prospecting until the mid-1930s.

In 1935, prospectors discovered copper-molybdenum mineralization on the Sulphurets property in the vicinity of the Main Copper zone, approximately six kilometres northwest of Brucejack Lake; however, these claims were not staked until 1960.  From 1935 to 1959, the area was relatively inactive with respect to prospecting; however, it was intermittently evaluated by a number of different parties and several small copper and gold-silver occurrences were discovered in the Sulphurets-Mitchell Creek area.  In 1960, Granduc and Alaskan prospectors staked the main claim group covering the known copper and gold-silver occurrences, which collectively became known as the Sulphurets property, starting the era of modern exploration.  Various operators explored the area, and an underground program was completed on the West Zone between 1986 and 1991 by the Newcana Joint Venture among Granduc Mines Limited, Newhawk Gold Mines Ltd. (“Newhawk”) and Lacana Mining Corporation.

In 1999, Silver Standard acquired Newhawk and with it, Newhawk’s 60% interest and control of the Brucejack Project.  In 2001, Silver Standard acquired Black Hawk Mining Inc.’s 40% direct interest in the Brucejack Project, resulting in 100% interest in the Brucejack Project.

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Silver Standard began initial work on the Brucejack Project in 2009 with drilling, rock-chip and channel sampling and re-sampling of historical drill core.  The 2009 program tested five zones with 37 drillholes totalling 18,000 metres.  A total of 12 drillholes were targeted at what would become the Valley of the Kings Zone (the “Valley of the Kings”).

In 2010, Silver Standard’s drill program was designed to continue definition of the bulk tonnage mineralization as well as to determine the nature and continuity of the high grade mineralization observed at Valley of the Kings.  Approximately one third of the 2010 drilling targeted the Valley of the Kings and included gold intersections of up to 5,840 g/t gold.  The bulk tonnage drilling achieved its intended goal through the definition of more than 20 Moz at Brucejack (8 Moz in Measured and Indicated and 12.5 Moz gold in Inferred, at a 0.3 g/t AuEq cut-off; Ghaffari et al. 2011).  The relatively dense drilling from the bulk tonnage drilling program, with drill spacings of 100 metres by 100 metres to 50 metres by 50 metres, formed the basis upon which the bulk tonnage resource model was built.  Numerous high grade intersections were defined as part of this drilling, allowing for the initial delineation of high grade mineralization trends.  In 2010, Silver Standard proceeded with the sale of the Snowfield and Brucejack projects to us.

Our 2011 diamond drill program was focused specifically on defining high grade resources.  In 2011, 178 drillholes were completed totalling 72,805 metres in drillholes SU-110 to SU-288.  This included 97 drillholes (41,219 metres) that targeted the Valley of the Kings, 16 drillholes (7,471 metres) that targeted the West Zone, and 21 drillholes (7,220 metres) that targeted the surrounding areas. The remaining drilling was focused on expansion of Shore Zone, testing for structurally controlled high grade mineralization in Galena Hill (now part of the Valley of the Kings) and Bridge Zones, as well as testing new target areas.  The West Zone ramp was partially dewatered in late 2011 and early 2012. A geotechnical mapping program and updated survey was completed on the dewatered portion of the mine.

Our 2012 diamond drill program focused on defining the high grade resource for the Valley of the Kings, specifically targeting geological and structural features believed to be associated with high grade gold mineralization.  Diamond drilling also focused on expanding the known extents of the Valley of the Kings Zone, both west of the Brucejack Fault and along trend to the east of the main mineralized zone.   A total of 301 drillholes were completed, totalling 105,500 metres of drilling during the 2012 drilling program.

An underground exploration program commenced in 2012 which was designed to, amongst other things, access the Valley of the Kings deposit underground, excavate a 10,000 tonne underground bulk sample and demonstrate continuity of the high grade gold mineralization. The initial phase of the underground program involved widening a portion of the historical West Zone underground workings to five metres by five metres so that the historical West Zone portal and underground workings can be used for access to the Valley of the Kings with production sized mining equipment.  In late December 2012, the widening of the historical West Zone underground workings was completed and excavation commenced of the access ramp from the West Zone workings to the Valley of the Kings.

Our 2013 surface diamond drill program focused on further defining the high grade resource for the Valley of the Kings as well as the geological and structural features believed to be associated with gold mineralization.  A total of 24 surface diamond drillholes (5,200 metres) of

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the 37 surface drillholes (5,770 metres; drillholes SU-590 to SU-626) completed during the 2013 drilling program were focussed on the Valley of the Kings.

In 2013, we also excavated a bulk sample from within the Valley of the Kings to further evaluate the geological interpretation and Mineral Resource estimate. The location of the proposed bulk sample was selected to be representative of the grade and character of the overall mineralization of the Valley of the Kings.

Underground development reached the bulk sample area in May 2013 and underground drilling to support the bulk sample program began in mid-May. A total of 409 drillholes (38,840 metres) were completed with 200 of these drillholes (16,640 metres) testing the bulk sample area.  The remainder (209 drillholes totalling 22,200 metres) were testing targets outside of the bulk sample area.

The design of the bulk sample was limited by provincial legislation to a maximum allowable bulk sample size of 10,000 tonnes. The bulk sample was collected as a series of nominal 100 tonne rounds in underground development. We elected to process the bulk sample both through a sample tower on site and at a custom mill (Contact Mill) in Montana, USA.  The results of assaying of the samples from the sample tower provided, in Snowden’s opinion, an unacceptable degree of variation in the results.

In 2014, exploration focused on resource definition in the Valley of the Kings with both surface and underground exploration.

The 2014 surface drill program consisted of infill drilling, exploration drilling at depth and condemnation drilling.  The infill drill program, comprising 5,818 metres in three holes including 14 wedge holes, was successful in confirming the grade and continuity of Indicated and Inferred gold mineralization in an area defined by the 2013 Mineral Resource estimate block model.

The exploration drilling at depth, which consisted of four deep drill holes comprising 3,507 metres, was successful in confirming the continuity of gold mineralization in the Valley of the Kings below the area defined by the 2013 Mineral Resource estimate.  Condemnation drilling for mine site infrastructure consisted of 25 drill holes comprising 2,679 metres.

Underground exploration in the Valley of the Kings has continued to date with mapping and sampling coinciding with the advance of ramping and vent raise excavation.

Geological Setting

The Brucejack Property is located on the eastern limb of the broad McTagg anticlinorium, the northern closure of the Stewart-Iskut culmination.  As a result, rocks on the Brucejack Property are tilted, as well as folded, and generally display a progressive younging towards the east.  Volcanic arc-related rocks of the Triassic Stuhini Group form the core of the anticlinorium, and are successively replaced outwards by volcanic arc-related rocks of the Lower Jurassic Hazleton Group and clastic basin-fill sedimentary rocks of the Middle to Upper Jurassic Bowser Lake Group.

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Geology on the Brucejack Property can generally be characterized as a northerly-trending, broadly arcuate, concave-westward structural-stratigraphic belt of variably altered rocks. This belt is bisected on the western side of the Brucejack Property by a prominent topographic lineament, the Brucejack Fault. This belt is characterised by a broad band of variably but generally intensely quartz-sericite-pyrite altered rocks of up to several hundred metres or more across, and approximately five kilometres in strike extent. The quartz-sericite-pyrite alteration typically contains between two and 20% pyrite, and, depending on the alteration intensity, can preclude protolith recognition. Most of the defined mineral resources on the Brucejack Property are located within the intensely altered zone.

Mineralization

Gold (± silver) mineralization is hosted in predominantly sub-vertical vein, vein stockwork, and subordinate vein breccia systems of variable intensity, throughout the alteration band.  The stockwork systems display both parallel and discordant relationships to stratigraphy.  The stockwork systems are relatively continuous along strike (several tens of metres to several hundreds of metres).

Several mineralization zones have been explored to varying degrees, including (from south to north): Bridge Zone, Valley of the Kings Zone, West Zone, Gossan Hill, Shore Zone, and SG Zone (Ireland et al. 2013).  There are numerous relatively unexplored mineralization showings within the alteration band across the Brucejack Property that are between the main mineralization zones, highlighting the exceptional exploration potential of the Brucejack Property.

High grade gold mineralization in the Valley of the Kings, the current focus of the Project, occurs in a series of west-northwest (and subordinate west-southwest) trending sub-vertical corridors of structurally reoriented vein stockworks and vein breccias. Stockwork mineralization displays both discordant and concordant relationships to the volcanic pile stratigraphy.  Gold is typically present as gold-rich electrum within deformed quartz-carbonate (±adularia?) vein stockworks, veins, and subordinate vein breccias, with grades ranging up to 41,582 g/t gold and 27,725 g/t silver over 0.5 m.

Recent underground exploration carried out as a part of the bulk sample program confirmed the location of corridors of stockwork-style mineralization and the lithological contacts in this part of the deposit (within the Valley of the Kings).  In addition the work resulted in the recognition of sub-vertical north-northeasterly trending deformed, curviplanar, and sheared quartz-carbonate veins containing abundant visible electrum.  These structures are interpreted as structurally-controlled fluid conduits that were active during development of the porphyry system and associated volcanic pile in the early Jurassic, and which were reactivated during Cretaceous deformation.

The Valley of the Kings deposit is currently defined over 1,200 metres in east-west extent, 600 metres in north-south extent, and 650 metres in depth.  The West Zone appears to form the northern limb of an anticline that links up with the Valley of the Kings in the south, and the southern limb of a syncline that extends further to the north.  This zone, which is currently defined over 590 metres along its northwest strike, 560 metres across strike, and down to 650 metres in depth, is open to the northwest, southeast, and at depth to the northeast.

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Mineralized Zones

The current resources as presented in this AIF are comprised of two different zones on the Brucejack Project, being the Valley of the Kings Zone and the West Zone.

Valley of the Kings Zone

Exploration drilling by Silver Standard (2009, 2010) and the Company (2011 to present), as well as surface mapping, has been successful in outlining a series of corridors of high grade mineralization associated with deformed quartz stockworks and intense quartz-sericite-pyrite alteration in an east-west trending and east-southeast plunging tight syncline developed in almost the full sequence of lower Hazelton Group rocks.

The Valley of the Kings mineralized zone trends approximately west-northwest to east-southeast. Its orientation mirrors that of Electrum Ridge, a pronounced topographic feature near the southern margin of the zone, and drilling to date has extended its strike to over 800 metres. The zone is up to 150 metres wide and was originally thought to be bound to the west by the Brucejack Fault. Recent drilling in the current 2012 drill program, together with the presence of significant intervals of gold mineralization, in the Waterloo Zone, indicates that the Valley of the Kings continues west across the fault, thereby making the zone open to the west, as well as to the east and at depth.

High grade gold and silver mineralization within the Valley of the Kings occurs as electrum, which is generally hosted in deformed quartz-carbonate and quartz-adularia veins and vein stockworks. While quartz veining and stockworks are common throughout the zone, the majority of gold intersections are confined to corridors within a zone 75 metres to 100 metres wide on the southern limb of the syncline. The orientation of these corridors is subparallel to the fold axis. Gold to silver ratios within the Valley of the Kings are typically 2:1 or higher.  Variations in this ratio, which could be a function of thermal gradients developed at the time of mineralization, are suggested by a visible increase in the proportion of silvery electrum (at the expense of more gold-coloured electrum) with a concomitant increase in the proportion of vein-hosted adularia towards the eastern parts of the zone. Additional precious metals-bearing minerals found in the Valley of the Kings, typically in trace quantities, include silver sulphides, acanthite, pyrargyrite and tetrahedrite, and associated with base metal-bearing sulphides include sphalerite and galena.

Low grade bulk tonnage mineralization, associated with disseminated anhedral pyrite, forms a halo within the altered rocks, surrounding the high grade mineralization corridors.

West Zone

The West Zone gold-silver deposit is hosted by a northwesterly trending band of intensely altered Lower Jurassic latitic to trachyandesitic volcanic and subordinate sedimentary rocks, as much as 400 metres to 500 metres thick, which passes between two more competent bodies of hornblende plagioclase hornblende phyric flows. The stratified rocks dip moderately to steeply to the northeast and are intensely altered, particularly in the immediate area of the precious metals mineralization. The West Zone appears to form the northern limb of an anticline that

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links up with the Valley of the Kings to the south, and the southern limb of a syncline that extends further to the north.

The West Zone deposit itself comprises at least 10 quartz veins and mineralized quartz stockwork ore shoots, the longest of which has a strike length of approximately 250 metres and a maximum thickness of about around 6 metres. Most mineralized shoots have vertical extents that are greater than their strike lengths. Veins and stockworks in this zone display clear evidence of post-mineral ductile and brittle deformation. The West Zone is open along strike to the southeast, and at depth to the northeast.

In terms of hydrothermal alteration, the West Zone is marked by a central silicified zone that passes outwards to a zone of sericite ± quartz ± carbonate and then an outer zone of chlorite ± sericite ± carbonate. The combined thickness of the alteration zones across the central part of the deposit is between 100 metres and 150 metres.

Gold in the West Zone occurs principally as electrum in quartz veins and is associated with, in decreasing order of abundance, pyrite, sphalerite, chalcopyrite, and galena. Besides being found with gold in electrum, silver occurs in tetrahedrite, pyrargyrite, polybasite and, rarely, stephanite and acanthite. Gangue mineralogy of the veins is dominated by quartz, with accessory adularia, albite, sericite, and minor carbonate and barite. The increased abundance of silver in the West Zone may suggest that this zone was formed down temperature gradient from the Valley of the Kings.

Drilling

The input data for the West Zone Mineral Resource estimate consisted of 756 drillholes (63,208 metres) including 439 underground drillholes (24,688 metres), 269 historical surface drillholes (21,321 metres) and 48 surface drillholes (17,199 metres) completed since 2009.

The input data for the Valley of the Kings Mineral Resource estimate comprised 932 drillholes totalling 218,238 metres. The drilling consisted of:

·9 historic drillholes (579 metres);

·490 surface drillholes drilled between 2009 and 2012 (173,619 metres);

·24 surface drillholes drilled in 2013 (5,200 metres); and

·409 underground drillholes drilled in 2013 (38,840 metres).

Drillhole paths were surveyed at a nominal 50 metre interval using a Reflex EZ single shot instrument. There was no apparent drilling or recovery factor that would materially impact the accuracy and reliability of the drilling results.

The drill collars were surveyed by McElhanney Surveying from Terrace, BC. McElhanney Surveying used a total station instrument and permanent ground control stations for reference and have completed all the surveying on the project since 2009. All underground drill collars were surveyed by Procon Mining & Tunnelling Ltd.

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Historical drill core sizes for surface drillholes were NQ (47.6 millimetre diameter) and BQ (36.5 millimetre diameter). Core size for drillholes collared from an underground exploration ramp at West Zone was AQ (27 millimetre diameter).

Core sizes for our surface collared drillholes are PQ (85 millimetre diameter), HQ (63.5 millimetre diameter) and NQ (47.6 millimetre diameter). Approximately 50% to 60% of the Company’s core is HQ size.  All drillcore collected from the underground drilling in 2013 was HQ size.

Sampling, Analysis, Data Verification and Security

Split PQ samples weigh approximately 10 kilograms. HQ samples are around 6 kilograms, and NQ are 3 kilograms to 4 kilograms. These weights assume a nominal 1.5 metre sample length. In general, the average sample size submitted to the analytical laboratory, ALS Chemex (“ALS”) was 6.5 kilograms.

Samples at ALS were crushed to 70% passing 2 millimetres, (-10 mesh). Samples were riffle split and 500 g were pulverized to 85% passing 75 μm (-200 mesh). The remaining coarse reject material was returned to us for storage in our Stewart warehouse.

Gold was determined using fire assay on a 30 g aliquot with an atomic absorption finish. In addition, a 33 element package was completed using a four acid digest and ICP-AES analysis, which included the silver. Density determinations were done by ALS using the pycnometer method on pulps from the drilling program.

Snowden analysed the quality assurance and quality control (“QAQC”) for the Brucejack Project.  The Brucejack drillhole and QAQC database is managed by GeoSpark Consulting Inc. (“GeoSpark”), who also manage the routine analysis of the QAQC results for the Company.  GeoSpark supplied Snowden with a QAQC database, in Microsoft Access format, containing the QAQC results for all drilling up to 5 December 2013.

The QAQC protocols included the use of field duplicates, standards and blanks.  The quality control samples were included at a nominal rate of one field duplicate, one standard and one blank for every 20 samples.   Check assays, in the form of pulp duplicates, were also completed by a different laboratory and compared with the primary laboratory.

Procedures undertaken by the Company have been under the supervision and security of our staff, as far as drill core sampling prior to dispatch. Laboratory sample reduction and analytical procedures have been conducted by independent accredited companies with acceptable practices.  We ensure quality control is monitored through the insertion of blanks, certified reference materials and duplicates.

Mineral Processing and Metallurgical Testing

Several metallurgical test programs were carried out to investigate the metallurgical performance of the mineralization. The main test work was completed from 2009 to early 2014. The samples tested were generated from various drilling programs, including the samples tested by the bulk sample processing programs. The metallurgical test programs conducted on

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the Brucejack mineralization included head sample characteristics, gravity concentration, gold/silver bulk flotation, cyanidation, table concentrate melting and the determination of various process related parameters. The early test work focused on developing the flowsheet for gravity concentration, bulk flotation, and flotation concentrate cyanidation. The test work also studied the metallurgical responses of the samples to the gravity concentration flowsheet for gravity concentration followed by whole ore leaching. The later test work concentrated on the gravity-flotation concentration flowsheet.

In general, the Valley of the Kings Zone and West Zone mineralization is moderately hard. The mineral samples tested responded well to the conventional combined gravity and flotation flowsheet. The gold in the mineralization was amenable to centrifugal gravity concentration. On average, 40 to 50% of the gold in the samples were recovered by the gravity concentration. The flotation tests results indicated that bulk flotation can effectively recover the gold remained in the gravity concentration tailings using potassium amyl xanthate as a collector at the natural pH. Two stages of cleaner flotation would significantly upgrade rougher flotation concentrate. The gold in the mineralization showed better metallurgical performance, compared to silver. On average, approximately 96 to 97% of the gold and 91 to 92% of the silver were recovered to the gravity concentrate and bulk flotation concentrate at the grind size of 80% passing approximately 70 to 80 µm. There was a significant variation in metallurgical performances among the samples tested. This may be a result of the nugget gold effect. The industrial runs on the 10,000-t bulk sample for the 2013 bulk sample processing program and the 1,200-t high grade Cleo mineralization conducted in 2014 showed that the gravity/flotation process flowsheet as designed for the Brucejack mineralization suited the treatment of the bulk sample. The results also showed that the gravity/flotation flowsheet adapted well for the varying mineralization and the wide range feed grades that were experienced during processing of the bulk sample.

Cyanide leach tests were also conducted to investigate the gold and silver extractions from various samples, including head samples, flotation concentrates, flotation tailings and gravity concentrates. In general, most of the sample responded reasonably well to direct cyanidation, excluding a few of samples containing higher contents of graphite (carbon), arsenic, or electrum. Cyanide leach process was not recommended for the feasibility study.

The test results suggest that the gold and silver recovery flowsheet for the mineralization should include gravity concentration, bulk rougher and scavenger flotation, rougher and scavenger concentrate regrinding, followed by cleaner flotation.

Mineral Processing

The process flowsheet developed for the Brucejack Property mineralization is a combination of conventional bulk sulphide flotation and gravity concentration to recover gold and silver. The processing plant will produce a gold-silver bearing flotation concentrate and gold-silver doré that will be produced by melting the gravity concentrate produced from the gravity concentration circuits. Based on the LOM average, the recovery process is estimated to produce approximately 5,600 kg of gold and 1,900 kg of silver as doré per year and 44,000 t of gold-silver bearing flotation concentrate per year from the mill feed, grading 14.1 g/t gold and 57.7 g/t silver. The estimated gold recoveries to the doré and flotation concentrate are 43.3% and 53.4%, respectively, totalling 96.7%. The estimated silver recoveries reporting to the doré and flotation

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concentrate are 3.5% and 86.5%, respectively, totalling 90.0%. The LOM average gold and silver contents of the flotation concentrate are anticipated to be approximately 157 g/t gold and 1,000 g/t silver. The flotation concentrate will be shipped off site to a smelter for further treatment to recover the gold and silver.

The process plant will consist of:

·one stage of crushing (located underground);

·a surge bin with a live capacity of 2,500 t on surface;

·a semi-autogeneous grinding (SAG) mill and ball mill primary grinding circuit integrated with gravity concentration;

·rougher flotation and rougher/scavenger flotation followed by rougher flotation concentrate regrinding; and

·cleaner flotation processes.

A gravity concentration circuit will also be incorporated in the bulk concentrate regrinding circuit. The final flotation concentrate will be dewatered, bagged, and trucked to the transload facility in Terrace, British Columbia. It is expected that the flotation concentrate will be loaded in bulk form into rail cars for shipping to a smelter located in eastern Canada. The gravity concentrate will be refined in the gold room on site to produce gold-silver doré.

A portion of the flotation tailings will be used to make paste for backfilling the excavated stopes in the underground mine, and the balance will be stored in Brucejack Lake. The water from the thickener overflows will be recycled as process make-up water. Treated water from the water treatment plant will be used for mill cooling, gland seal service, reagent preparation, and make-up water.

Simplified Process Flowsheet

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Mining Method

The underground mine design is largely unchanged from the previous feasibility study, supporting the extraction of 2,700 t/d of ore via transverse long hole open stoping (“LHOS”) and longitudinal LHOS. Paste backfill and modern trackless mobile equipment will be used. Mine access will be by a main decline from a surface portal close to the concentrator. A second decline will be dedicated to conveying crushed ore directly to the concentrator via two conveyors with a combined length of 800 m. There will be a two-year pre-production development period, with steady-state production being reached by the end of Year 2 of an 18-year LOM. The development and production sequence prioritizes high grade areas while ramping up overall mine tonnage to the steady state, averaging approximately 980,000 t/a through to Year 16.

Geotechnical designs and recommendations are based on the results of site investigations, and geotechnical assessments that include rock mass characterization, structural geology interpretations, excavation and pillar stability analyses, and ground support design.

The groundwater flow system was conceptualized to provide inflow estimates to mine workings. These estimates referenced results of site investigations and hydrogeologic testing and were used to size dewatering equipment and as input to the process water balance.

Underground manpower will consist of technical staff, mining crews, mechanics, electricians, and other support personnel. Pre-production manpower will be supplied by a contractor, except personnel required for maintenance and technical support. Total manpower required for full production is 351, with up to 176 personnel on site at any given time.

The ventilation system is designed to meet British Columbia regulations. Permanent surface fans will be located at the portals of the twin, intake declines. All intake air entering the mine will be heated above freezing point.

Paste fill distribution design is based on a dual pumping system. A positive displacement pump in the paste fill plant will provide paste to all of the West Zone and the lower zones of the Valley of the Kings. The paste plant pump will also feed a booster pump located near the main access point to the Valley of the Kings area located on 1,320 Level.

Ore will be trucked from working areas to an underground crusher and then transferred to surface via two, 1.07 metres wide conveyors. Waste rock will be disposed in the underground mine whenever possible, with the balance trucked to surface for disposal in Brucejack Lake.

The mine will be dewatered using a dirty water system of sumps and pumps. Submersible and centrifugal pumps will be used for development and permanent mine operations. Solids captured in the main collection sump will be pumped to the mill for residual gold recovery. For underground worker safety, both permanent and portable refuge stations are planned. The emergency warning system will include phones, cap lamp warning system, and stench gas.

The total project initial mining capital during the pre-production period, including a 10% contingency, is estimated at $240 million. Sustaining mining capital of $280 million has been

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estimated for the production period. The total underground operating cost over the LOM is estimated to be $1,512 million, at an average LOM cost of $91.34/t.

Mineral Resource and Mineral Reserve Estimates

The West Zone resource estimate remains unchanged from the Mineral Resource estimate announced April 3, 2012, and filed on SEDAR April 30, 2012 (see Table 2 below).

In December 2013, Snowden completed a Mineral Resource estimate for the Valley of the Kings Zone of the Brucejack Project.

This December 2013 estimate was an update of the previous November 2012 Mineral Resource estimate and included over 40,000 metres of additional drilling, including 24 surface drillholes (5,200 metres) and 409 underground drillholes (38,840 metres) drilled in support of the underground bulk sample.  In addition to the drilling, a 10,000 tonne bulk sample was processed through a mill and detailed test work has been carried out to both validate the previous Mineral Resources and refine the estimation process for the updated Mineral Resource.

The result of the test work is an improved confidence in both the geological model and the grade estimate, with the definition of Measured Resources as part of the December 2013 Mineral Resource.

Bulk Sample Test Work

In 2013, the Company excavated a bulk sample from within the Valley of the Kings to further evaluate the geological interpretation and provide a comparison with the results from the Mineral Resource estimate. The location of the proposed bulk sample was selected to be representative of the grade and character of the typical mineralization in the Valley of the Kings.

The design of the bulk sample was limited by provincial legislation to a maximum allowable bulk sample size of 10,000 t. The bulk sample was collected as a series of nominal 100-t rounds in underground development. The Company elected to process the bulk sample both through a sample tower on site and at a custom mill (Contact Mill) in Montana, U.S.A. In Snowden’s opinion, the results of assaying of the samples from the sample tower provided an unacceptable degree of variation in the results due to the coarse gold nature of the mineralization and this information was not used further.

Prior to the December 2013 Mineral Resource estimate, the mill results from the underground bulk sample processing were used to investigate the local accuracy of the November 2012 Mineral Resource estimate within the Valley of the Kings, and to determine whether the estimation methodology could be improved for the December 2013 Mineral Resource estimate.

A series of statistical tests were run to determine whether any bias exists between the surface diamond drilling, underground diamond drilling, underground channel samples, and chip samples. No significant difference/bias, based on the statistical analysis, was evident between the different sample types.

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However, additional test work in the estimation did display some bias caused by directional drilling in the area of the bulk sample. The underground drilling had been aligned in a north-south orientation which is consistent with the orientation of some high grade mineralization identified in the bulk sample, resulting in under sampling of this mineralization. Removal of the underground drillholes resulted in an increase in the grade of the local estimate.

While there is no bias evident between the channel samples and the drilling, the location of numerous channel samples in the centre of some of the higher-grade mineralization does result in a local overestimation around the bulk sample crosscuts. Consequently, the decision was made not to use the channel samples for the final Mineral Resource estimate.

The final metal and tonnes from the mill accounting were compared to those predicted by the November 2012 Mineral Resource estimate for each drive to assess the effectiveness of the resource modelling process. This test work has in part relied on comparisons between the test estimates and results from the bulk sample processing. However, readers of this AIF and the Brucejack Report should be warned that there is a significant difference in the sample support for the resource estimate (each block in the resource estimate represents 2,700 t whereas the bulk sample packages are around 100 t), and the grade is not homogenous throughout any block. In other words, the grade can vary from a high grade side of the block to a low-grade side of the block, whereas the block grade represents an average of the whole block. If the bulk sample happens to take a high grade part of the block, then the comparison will look like the resource estimate under-estimated the grade, and conversely if the bulk sample takes a low-grade part of the block, then the comparison will look like the resource estimate over-estimated the grade in the block. Whilst it is not entirely valid to compare the results of the bulk sample with the resource estimate (given the different sample support) locally, it does provide the best opportunity to fine-tune the estimate to some hard data. The reader should be warned that the results are only used to give some local perspective to the grade estimates.

The results indicated that the November 2012 Mineral Resource underestimated the total metal content in the bulk sample by about 10%. In more detail, the November 2012 Mineral Resource estimated high grade into lower-grade areas, and low-grade into the high grade areas, a result of extrapolating the high grade values around the high grade core. This extrapolation of high grade values was based on the nature of the mineralization and the interpreted continuity of the high grades.

Based on the bulk sample comparisons, Snowden concluded that the November 2012 Mineral Resource was a good representation of the contained metal within the Valley of the Kings deposit and satisfactory for mining studies based around bulk underground mining, but that it was not locally accurate at the 10 metre block scale. As a result further test work was undertaken to adjust the estimation method for the December 2013 Mineral Resource, to produce an estimate that is more responsive to the local scale grade variations.

Mineral Resource Estimate

The mineralization in the Valley of the Kings exists as steeply dipping semi-concordant (to stratigraphy) and discordant pod-like zones hosted in stockwork vein systems within the volcanic and volcaniclastic sequence.  High grade mineralization zones appear to be spatially associated, at least in part, with intensely silicified zones resulting from local silica flooding and

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over-pressure caprock formation.  High grade mineralization occurs both in the main east-west trending vein stockwork system, as well as in the rarer north-south trending part of the system. Snowden notes that the Company has taken these various observations into consideration in its interpretation of the mineralization domains for the Valley of the Kings.

A threshold grade of 0.3 g/t Au was found to generally identify the limits to the broad zones of mineralization as represented in the drill cores at West Zone and the Valley of the Kings.  In the Valley of the Kings, a 1 g/t Au to 3 g/t Au threshold grade was used together with the Company’s interpretation of the lithological domains, to interpret high grade corridors within the broader mineralized zones, and define a series of mineralized domains for estimation.

All data was composited to the dominant sample length of 1.5 metre prior to analysis and estimation.  Statistical analysis of the gold and silver data was carried out by lithological domain (at the Valley of the Kings) and mineralized domain.  Review of the statistics indicated that the grade distributions for the mineralization within the different lithologies are very similar and as a result these were combined for analysis.  This is in agreement with field observations which indicate that the stockwork mineralization is superimposed on the stratigraphic sequence.  The summary statistics of composite samples from all domains exhibit a strong positive skewness with high coefficient of variation and some extreme grades.

Because of the extreme positive skew in the histograms of the gold and silver grades within the high grade domains, Snowden elected to use a non-linear approach to estimation, employing the use of indicator and truncated distribution kriging. In this approach, the proportion of high grade in a block was modelled, as was the grade of the high grade portion, and the grade of the low grade portion.

The high grade population, which contains a significant number of samples with extreme grades, required indicator kriging methods for grade estimation. The low grade population was estimated using ordinary kriging on the truncated (low grade; <5 g/t Au and <50 g/t Ag) part of the grade distribution.

Density was estimated using simple kriging of specific gravity measurements determined on sample pulps by ALS Chemex.

Grade estimates and models were validated by: undertaking global grade comparisons with the input drillhole composites; visual validation of block model cross sections; grade trend plots; and comparing the results of the model to the bulk sample cross cuts.

The resource classification definitions (Measured, Indicated, Inferred) used for this estimate are those published by the Canadian Institute of Mining, Metallurgy and Petroleum in their document “CIM Definition Standards”.

In order to identify those blocks in the block model that could reasonably be considered as a Mineral Resource, the block model was filtered by a cut-off grade of 5 g/t AuEq. The gold-equivalent calculation used is: AuEq = Au + (Ag/53). These blocks were then used as a guide to develop a set of wireframes defining coherent zones of mineralization which were classified as Measured, Indicated or Inferred and reported (Table 1 and Table 2).

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Classification was applied based on geological confidence, data quality and grade variability.  Areas classified as Measured Resources at West Zone are within the well-informed portion where the resource is informed by 5 metre by 5 metre or 5 metre by 10 metre spaced drilling.  Measured Resources within Valley of the Kings are informed by 5 metre by 10 metre to 10 metre by 10 metre underground fan drilling and restricted to the vicinity of the underground bulk sample.

Areas classified as Indicated Resources are informed by drilling on a 20 metre by 20 metre to 20 metre by 40 metre grid within West Zone and Valley of the Kings.  In addition, some blocks at the edge of the areas with 20 metre by 20 metre to 20 metre by 40 metre drilling, were downgraded to Inferred where the high grades appear to have too much influence.  The remainder of the Mineral Resource is classified as Inferred Resources where there is some drilling information (and within around 100 metres of drilling) and the blocks occur within the mineralized interpretation.

Areas where there is no informing data and/or the lower grade material is outside of the mineralized interpretation are not classified as a part of the Mineral Resource.

Resource Reporting

The Mineral Resources are reported above a cut-off grade of 5 g/t gold equivalent (AuEq) which reflects the potential economics of a high grade underground mining scenario.  The AuEq value for each block is consistent with the November 2012 Mineral Resource.  In that evaluation, the AuEq value was calculated according to the formula (AuEq = Au + Ag/53) based upon prices of $1,590/oz and $30/oz for gold and silver respectively.  Recoveries for gold and silver are assumed to be similar.

High grade Mineral Resources for the Valley of the Kings and the West Zone are summarized in Table 1 and Table 2 respectively (below).

Table 1
Valley of the Kings Mineral Resource estimate
based on a cut-off grade of 5 g/t AuEq — December 2013(1)(4)(5)

				Contained(3)
	Tonnes	Gold	Silver	Gold	Silver
Category	(millions)	(g/t)	(g/t)	(Moz)	(Moz)
Measured	2.0	19.3	14.4	1.2	0.9
Indicated	13.4	17.4	14.3	7.5	6.1
M + I	15.3	17.6	14.3	8.7	7.0
Inferred(2)	5.9	25.6	20.6	4.9	3.9

(1)Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this AIF were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral

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Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

(2)The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

(3)Contained metal and tonnes figures in totals may differ due to rounding.

(4)The Mineral Resource estimate stated in Table 1 and Table 2 is defined using 5 metre by 5 by 5 metre blocks in the well drilled portion of West Zone (5 metre by 10 metre drilling or better) and 10 metre by 10 metre by 10 metre blocks in the remainder of West Zone and in Valley of the Kings.

(5)The gold equivalent value is defined as AuEq = Au + Ag/53.

Table 2
West Zone Mineral Resource estimate
based on a cut-off grade of 5 g/t AuEq — April 2012 (1)(4)(5)

				Contained(3)
	Tonnes	Gold	Silver	Gold	Silver
Category	(millions)	(g/t)	(g/t)	(Moz)	(Moz)
Measured	2.4	5.85	347	0.5	26.8
Indicated	2.5	5.86	190	0.5	15.1
M + I	4.9	5.85	267	0.9	41.9
Inferred(2)	4.0	6.44	82	0.8	10.6

(1), (2), (3), (4) and (5) - See footnotes to Table 1.

Mineral Reserve Estimates

The mine design and Mineral Reserve estimate have been completed to a level appropriate for feasibility studies.  The Mineral Reserve estimate stated herein is consistent with CIM Standards on Mineral Resources and Mineral Reserves.  As such, the Mineral Reserves are based on Measured and Indicated Resources and do not include any Inferred Resources.

The Mineral Reserves were developed from the resource model “bjbm_1313_v11_cut”, which was provided to AMC by Snowden, on behalf of the Company, in February 2014.

A net smelter return (NSR) cut-off grade of C$180/t of ore was used to define the Mineral Reserves (as used in previous studies).  The NSR for each block in the resource model was calculated as the payable revenue for gold and silver, less refining, concentrate treatment, transportation, and insurance costs.  The metal price assumptions are $1,100/oz gold and $17/oz silver.  Costs assume an exchange rate of US$0.92:C$1.

The NSR contributions for both flotation concentrate and doré were calculated individually, combined, and assigned to each block in the resource model.

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Dilution and Recovery Estimates

In the evaluation of Mineral Reserves, modifying factors were applied to the tonnages and grade of all mining shapes (both stoping and development) to account for the dilution and ore losses that are experienced at all mining operations.

Ore dilution includes overbreak into the design hanging wall and design footwall, and also into adjacent backfilled stopes.  Diluting materials are assumed to carry no metal values in the estimation of Mineral Reserve grades.

The largest component of dilution at Brucejack will be paste backfill due to its inherently weaker strength compared to the hanging wall and footwall rock masses for any given dimensions of exposure.

Ore losses (recovery factors) are related to the practicalities of extracting ore under varying conditions, including difficult mining geometry, problematic rock conditions, losses in fill, and blasting issues.

The dilution factors were calculated from standard overbreak assumptions that are based on AMCs experience and benchmarking of similar long-hole open stope operations.

·Longhole stopes (primary, secondary, tertiary) carry 1.0 metre of dilution from paste or country rock overbreak into the design hanging wall and design footwall, and 0.3 metre of backfill dilution from the floor.

·Secondary or tertiary stopes carry an additional 1.0 metres of backfill dilution on each wall that exposes a primary stope.

·Sill pillar stopes are treated as secondary stopes, given the additional backfill dilution that can be expected from the roof.

·Ore cross-cuts carry 0.5 metre of dilution from rock overbreak into the design hanging wall and design footwall.

·Production slashing of secondary stopes carries 0.5 metres of backfill dilution on each wall that exposes a primary stope.

Mineral Reserves

Mineral Reserves tabulated by zone and by reserve category are presented below.

The mining blocks divide the Mineral Reserves into logical parcels consistent with the mining sequence, and form the basis of the LOM development and production schedule.

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Brucejack Mineral Reserves* by Zone and by Reserve Category (June 19, 2014)

		Ore	Grade		Metal
		Tonnes	Au	Ag	Au	Ag
Zone		(Mt)	(g/t)	(g/t)	(Moz)	(Moz)
Valley of the Kings Zone	Proven	2.1	15.6	12	1.1	0.8
	Probable	11.5	15.7	10	5.8	3.9
	Total	13.6	15.7	11	6.9	4.6
West Zone	Proven	1.4	7.2	383	0.3	17.4
	Probable	1.5	6.5	181	0.3	8.6
	Total	2.9	6.9	279	0.6	26.0
Total Mine	Proven	3.5	12.2	161	1..4	18.2
	Probable	13.0	14.7	30	6.1	12.5
	Total	16.5	14.1	58	7.5	30.7

Note:*Rounding of some figures may lead to minor discrepancies in totals.  Based on C$180/t cut-off grade, $1,100/oz gold price, $17/oz silver price, exchange rate = US$0.92:C$1.

Brucejack Mineral Reserves* by Mining Block (June 19, 2014)

	Ore		Grade		Contained Metal
	Tonnes	NSR	Au	Ag	Au	Ag
Mining Block	(Mt)	($/t)	(g/t)	(g/t)	(Moz)	(Moz)
Valley of the Kings Upper	4.3	578	16.9	12	2.3	1.6
Valley of the Kings Middle	5.7	503	14.9	10	2.7	1.9
Valley of the Kings Lower	3.7	530	15.5	9	1.8	1.1
Valley of the Kings	13.6	534	15.7	11	6.9	4.6
WZ Upper	0.6	304	4.2	407	0.1	8.0
WZ Lower	2.3	350	7.6	245	0.6	18.1
WZ	2.9	340	6.9	279	0.6	26.0
Mining Block Total	16.5	500	14.1	58	7.5	30.7

Note:*Rounding of some figures may lead to minor discrepancies in totals.  Based on C$180/t cut-off grade, $1,110/oz gold price, $17/oz silver price, exchange rate = US$0.92:C$1.

Project Infrastructure

The Brucejack Project required the development of a number of infrastructure items. The locations of project facilities and other infrastructure items were selected to take advantage of local topography, accommodate environmental considerations, and ensure efficient and convenient operation of the mine haul fleet.

Project infrastructure included:

·a 79 km access road at Highway 37 and travelling westward to Brucejack Lake with the last 12 km of access road to the mine site traversing the main arm of the Knipple Glacier;

·internal site roads and pad areas;

·grading and drainage;

·avalanche hazard assessment;

·mill building and process plant;

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·mine site operation camp;

·transmission line and substation;

·ancillary facilities;

·water supply and distribution;

·water treatment plant;

·waste disposal;

·tailings delivery system;

·Brucejack Lake outlet control;

·communications;

·power supply and distribution;

·fuel supply and distribution; and

·off-site infrastructure including the Bowser Airstrip and Camp and the Knipple Transfer Station facilities.

Avalanche Hazard Assessment

An avalanche hazard assessment has been completed for the Brucejack Project. Mine site facilities and access routes are exposed to approximately 14 avalanche paths or areas, and the preliminary transmission line alignment crosses several avalanche paths. Avalanche magnitude and frequency varies depending on location. Potential consequences of avalanches reaching the Brucejack mine facilities, transmission line, worksites, and roads include damage to infrastructure, worker injury (or fatality), and project delays. Potential consequences of static snow loads on transmission towers include damage to towers and foundations, and potential loss of electrical service to the mine. Without mitigation to the effects of avalanches and static snow loading, there is a high likelihood of some of the above consequences affecting operations on an annual basis.

Avalanche mitigation for the Brucejack Project includes location planning, in order to avoid placement of facilities in avalanche hazard areas. For areas where personnel and infrastructure may be exposed, an avalanche management program will be implemented for mine operations during avalanche season (October through June). The program will utilize an Avalanche Technician team to determine periods of elevated avalanche hazard and provide recommendations for closures of hazard areas. The options for reducing control include explosive control, or waiting for natural settlement. Areas that are expected to have increased frequency of hazard and consequences will be evaluated for the installation of the remote avalanche control system (“RACS”) in order to allow for avalanche explosive control during reduced visibility (darkness and during storms). An allowance has been made in the capital and operating cost estimates for six RACSs.

Transmission Line

For the Brucejack transmission line, we retained Valard to review potential routes and develop an initial design for the transmission line to the Brucejack Project site, based on Valard’s current experience in the area. To this end, Valard reviewed potential routes and determined the preferred route to be an extension from an existing transmission line from a hydro generation facility to the south (near Stewart, British Columbia) to the Brucejack Project site. Based on the terrain and the expected construction conditions, single steel monopole towers are recommended for the design.

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Site review indicates that the hazards in the area can be avoided through diligent siting of the tower structures and any structures exposed to hazards are expected to be designed to accommodate impact pressures.  Worker risks are expected to be controlled by way of an active snow avalanche risk program.

Tailings Delivery System

Approximately one half of the tailings produced by mine operations will be stored underground as paste backfill and approximately one half will be placed on the bottom of Brucejack Lake. Tailings will be pumped from the tailings thickener at the process plant by slurry pipeline to the lake in a manner which will minimize suspended solids concentrations at the lake outlet. Fine particulate solids may also be suspended in the lake surface layer if fine waste rock is placed in the lake. Investigations on minimizing or eliminating this source of suspended solids in the lake outflow are underway.

Environmental

We are committed to operating the mine in a sustainable manner and according to our guiding principles. Every reasonable effort will be made to minimize long-term environmental impacts and to ensure that the Brucejack Project provides lasting benefits to local communities while generating substantial economic and social advantages for shareholders, employees, and the broader community. We respect the traditional knowledge of the Aboriginal peoples who have historically occupied or used the Brucejack Project area.

The Brucejack Project area ecosystem is relatively undisturbed by human activities. Our objective is to retain the current ecosystem integrity as much as possible during the construction and operation of the Brucejack Project. Upon closure and reclamation of the Brucejack Project, the intent will be to return the disturbed areas to a level of productivity equal to or better than that which existed prior to project development, and for the end configuration to be consistent with pre-existing ecosystems to the extent possible.

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RISK FACTORS

Investing in our securities is speculative and involves a high degree of risk due to the nature of our business and the present stage of operation, exploration and development of our mineral properties. The following risk factors, as well as risks currently unknown to us, could materially adversely affect our future business, operations and financial condition and could cause them to differ materially from the estimates described in forward-looking information relating us, or our business, property or financial results, each of which could cause purchasers of our securities to lose part or all of their investment. You should carefully consider the following risk factors along with other risk factors included elsewhere in this AIF, as well as those set out in our Management’s Discussion and Analysis for the years ended December 31, 2018 and 2017.

Risks Related to Our Business

We are currently subject to, and may in the future be subject to, claims and legal proceedings that could divert our resources and result in the payment of significant damages and other remedies, and could materially adversely impact our business, prospects, financial condition, financial performance and results of operations.

We are engaged as a defendant in several class action lawsuits filed by certain of our shareholders. Litigation resulting from these claims could be costly and time-consuming and could divert the attention of management and key personnel from our business operations. We cannot assure that we will succeed in defending any of these claims and that judgments will not be entered against us with respect to the litigations resulting from such claims. If we are unsuccessful in our defense of these claims or unable to settle the claims in manner satisfactory to us, we may be faced with significant monetary damages or injunctive relief against us that could have a material adverse effect on our business, prospects, financial condition, financial performance and results of operations.

As of the date hereof, we are aware of class action legal proceedings in Ontario and in New York, as more particularly described in the section entitled “Legal Proceedings and Regulatory Actions” in this AIF and in our Management’s Discussion and Analysis of our financial condition and results of operations for the years ended December 31, 2018 and 2017.

Due to the nature of our business, we may be subject to a variety of regulatory investigations, claims, lawsuits and other proceedings in the ordinary course of our business. It is possible that some of these matters may be resolved against us. The results of these legal proceedings cannot be predicted with certainty due to the uncertainty inherent in litigation, including the effects of discovery of new evidence or advancement of new legal theories, the difficulty of predicting decisions of judges and juries and the possibility that decisions may be reversed on appeal. There can be no assurances that these matters will not have a material adverse effect on our business, prospects, financial condition, financial performance and results of operations.

Our indebtedness may adversely affect our cash flow and our ability to operate our business.

We have a substantial amount of indebtedness as a result of entering into the Credit Agreement. Consequently, we are required to use a portion of our cash flow to service principal and interest on our debt. In addition, in order to fund our debt service obligations and

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to pay amounts due on the Notes, we will require significant amounts of cash. Our indebtedness could have adverse consequences on our business, including: limiting our ability to obtain additional financing for working capital, capital expenditures, exploration and development, debt service requirements, acquisitions and general corporate or other purposes; restricting our flexibility and discretion to operate our business; having to dedicate a portion of our cash flows from future mining operations, if any, to the payment of interest on our indebtedness and not having such cash flows available for other purposes; exposing us to increased interest expense on borrowings at variable rates; limiting our ability to adjust to changing market conditions; placing us at a competitive disadvantage compared to competitors that have less debt or greater financial resources; making us vulnerable in a downturn in general economic conditions; and preventing our ability to make expenditures that are important to our growth and strategies.

Interest rates under our Loan Facility are based on LIBOR and the administrative agents’ base rate, which fluctuate based on market conditions. As a result, increases in interest rates can have a material adverse effect on our cash flows, operations and results therefrom, and our financial condition.

Our ability to meet our debt service requirements will depend on our ability to generate cash from mining activities or the issuance of additional equity or debt securities. There can be no assurance that we will generate cash flow in amounts sufficient to pay outstanding indebtedness or to fund any other liquidity needs. If the cash generated from mining activities is insufficient to meet the obligations to pay interest and principal under the Credit Agreement, the lenders may exercise their rights under the security arrangements of the Credit Agreement, which could result in a loss or substantial reduction in the value of our principal assets. If our cash flow and capital resources are insufficient to fund our debt obligations, we may be forced to reduce or delay capital expenditures, sell assets, seek to obtain additional equity capital or restructure our debt.

Our future performance will be affected by a range of economic, competitive, governmental, operating and other business factors, many of which cannot be controlled, such as general economic and financial conditions in the industry or the economy at large. A significant reduction in operating cash flows resulting from changes in economic conditions, increased competition or other events could increase the need for additional or alternative sources of liquidity and could have a material adverse effect on the business, financial condition or results of operations, as well as our ability to service our debt and other obligations. If we are unable to service our indebtedness or fulfil our other obligations under the Credit Agreement, we will be forced to adopt an alternative strategy that may be less attractive to us and include actions such as reducing or delaying capital expenditures, selling assets, restructuring or refinancing indebtedness or seeking equity capital. In addition, any failure to make scheduled payments of interest and principal on outstanding indebtedness is likely to result in a reduction of credit rating, which could harm our ability to incur additional indebtedness on acceptable terms.

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The Offtake Agreement and Credit Agreement contain restrictive covenants that will limit our ability to operate our business.

The terms of our Offtake Agreement and Credit Agreement require us to comply with various affirmative and negative covenants and, in the case of the Credit Agreement, to meet certain financial ratios and tests. The restrictive covenants contained in the Offtake Agreement and Credit Agreement could have adverse consequences on our business, including: limiting our ability to obtain additional financing for working capital, capital expenditures, exploration and development, debt service requirements, acquisitions and general corporate or other purposes; restricting our flexibility and discretion to operate our business; limiting our ability to adjust to changing market conditions; making us vulnerable in a downturn in general economic conditions; and making us unable to make expenditures that are important to our growth and strategies. The restrictive covenants contained in the Offtake Agreement and Credit Agreement will limit our operating flexibility and could prevent us from taking advantage of business opportunities. There are no assurances that we will continue to satisfy these covenants. Our failure to comply with these covenants may result in an event of default. If such event of default is not cured or waived, we may suffer adverse effects on our business or financial condition.

We may be unable to satisfy our commitments under the Offtake Agreement and failure to do so may have a material and adverse effect on the Company.

Our ability to make deliveries under the Offtake Agreement is dependent on our ability to maintain steady-state production at the Brucejack Mine, as well as on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, legislative, regulatory and other factors beyond our control.

If our cash flows and capital resources are insufficient, we could face substantial liquidity problems and could be forced to reduce or delay investment and capital expenditures, to dispose of material assets or operations, or seek additional debt or equity capital. We may not be able to effect any such alternative measures on commercially reasonable terms or at all and, even if successful, those alternatives may not allow us to meet our delivery obligations under the Offtake Agreement. Failure to otherwise fulfill our commitments under this agreement could result in adverse impacts on our business. See “Our Business”.

If metal prices improve over time, the Offtake Agreement may reduce our ability to sell our resources later at higher market prices due to our obligations thereunder.

Actual capital costs, operating costs and expenditures, production schedules and economic returns may differ significantly from those we have anticipated.

Our expected capital costs, operating costs and expenditures, production schedules, economic returns and other projections for the Brucejack Mine which are contained in the Brucejack Report and the 2017 Project Economics Update are based on assumed or estimated future metals prices, cut-off grades, operating costs, capital costs and expenditures and various other factors that each may prove to be inaccurate, and many of which are beyond our control. Therefore, the Brucejack Report and the 2017 Project Economics Update may prove to be unreliable if the assumptions or estimates do not reflect actual facts and events. For example,

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significant declines in market prices for precious metals or extended periods of inflation would have an adverse effect on the economic projections set forth in the Brucejack Report and the 2017 Project Economics Update.

Any material reductions in estimates of mineralization or increases in capital costs and expenditures, or in our ability to maintain a projected budget or renew a particular mining permit, could also have a material adverse effect on projected production schedules and economic returns, as well as on our cash flows, earnings, overall results of operations or financial condition. There is also a risk that rising costs for labour and material could have an adverse impact on forecasted construction costs and that shortages of labour and material could have a negative impact on any mine development schedule. An increase in any of these costs, or a lack of availability of commodities and goods, may have an adverse impact on our financial condition and results of operations.

We may be required to seek additional debt or equity capital in order to fund the development of the Brucejack Project and we may not be able to access capital on commercially reasonable terms or at all and, even if successful, we may not be able to raise enough capital to allow us to fully fund the capital costs required to complete construction at the Brucejack Project.

There is uncertainty relating to production and production cost estimates.

We have prepared estimates of future production and future production costs for the Brucejack Project. No assurance can be given that production and production cost estimates will be achieved. These estimates are based on, among other things: the accuracy of Mineral Reserve and Resource estimates; the accuracy of assumptions, including assumptions about ore grades and recovery grades; metallurgical characteristics; and the accuracy of estimated rates and costs of mining and processing. Failure to achieve production and production cost estimates could have an adverse impact on our future cash flows, earnings, results of operations and financial condition.

Actual production and production costs may vary from estimates for a variety of reasons, including, among other things: actual ore mined varying from estimates of grade, tonnage, dilution, metallurgical and other characteristics; short-term operating factors relating to the Mineral Reserves, such as the need for sequential development of ore bodies and the processing of new or different ore grades; mine or equipment failures, risk and hazards associated with mining; natural phenomena, such as inclement weather conditions, underground floods, earthquakes, pit wall failures and cave-ins; encountering unusual or unexpected geological conditions; shortages of principal supplies needed for mining operations, including explosives, fuels, chemical reagents, water, equipment parts and lubricants; plant and equipment failure; restrictions or regulations imposed by government agencies or other changes in the regulatory environment; and unexpected labour shortages or strikes. In addition to adversely affecting mineral production, such occurrences could also result in damage to mineral properties or mines, interruption in production, injury or death to persons, damage to our property or property of others, monetary losses and legal liabilities. These factors may cause a mineral deposit that has been mined profitably in the past to become unprofitable, forcing us to cease production.

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Changes in the market price of gold and other metals, which in the past have fluctuated widely, may materially and adversely affect our operations, revenues and the value of our mineral properties.

Our profitability and long-term viability depend, in large part, on the market price of gold and silver. The market prices for these metals are volatile and are affected by numerous factors beyond our control, including:

·global or regional consumption patterns;

·the supply of, and demand for, these metals;

·speculative activities;

·the availability and costs of metal substitutes;

·expectations for inflation; and

·political and economic conditions, including interest rates and currency values.

We cannot predict the effect of these factors on metal prices. A decrease in the market price of gold and other metals could affect our ability to finance the exploration and development of any of our mineral properties. The market price of gold and other metals may not remain at current levels.

Future production, if any, from our mining properties is dependent on mineral prices that are adequate to make these properties economic. A sustained period of declining gold and other metal prices would adversely affect our operations, financial performance, financial position, results of operations and trading value of our securities.

Mineral Resource and Mineral Reserve calculations are only estimates.

Any figures presented for Mineral Resources and Reserves in this AIF or documents incorporated by reference herein, and any figures for Mineral Resources and Reserves which may be presented in the future are and will only be estimates. No assurance can be given that Mineral Reserves, Mineral Resources or other mineralization estimates will be accurate, or mineralization can be mined or processed profitably. Mineral Reserve data is not indicative of future results of operations. There is a degree of uncertainty attributable to the calculation of Mineral Reserves and Resources and grades of mineralization. Until Mineral Reserve estimates or Mineral Resource estimates are actually mined and processed, the quantity of metal and grades must be considered as estimates only and no assurances can be given that the indicated levels of metals will be produced. In making determinations about whether to advance any of our projects to development or to mine existing Mineral Reserves, we must rely upon estimated calculations as to the Mineral Reserves and Resources, and grades of mineralization on our properties. Short-term operating factors relating to the Mineral Reserves may cause our mining operation to be unprofitable in any particular accounting period.

The estimating of Mineral Reserves and Mineral Resources is a subjective process that relies on the judgment of the persons preparing the estimates and is subject to numerous uncertainties including many factors beyond our control. The process relies on the quantity and quality of available data and is based on various assumptions and judgments, knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given

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time may significantly change when new information becomes available. By their nature, Mineral Resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate.

Estimated Mineral Reserves or Mineral Resources may have to be recalculated based on changes in mineral prices, further geological interpretation, further exploration or development activity or actual production experience. This could materially and adversely affect estimates of the volume or grade of mineralization, estimated recovery rates or other important factors that influence Mineral Reserve or Resource estimates or may render our Mineral Reserves uneconomic to exploit. The extent to which Mineral Resources may ultimately be reclassified as Proven or Probable Mineral Reserves is dependent upon the demonstration of their profitable recovery. Any material changes in Mineral Resource estimates and grades of mineralization will affect the economic viability of placing a property into production and a property’s return on capital. We cannot provide assurance that mineralization can be mined or processed profitably.

Our Mineral Resource estimates have been determined and valued based on assumed future metal prices, cut-off grades, operating costs and other assumptions that may prove to be inaccurate. Extended declines in market prices for gold and silver, increased production costs or reduced recovery rates, may render portions of our mineralization uneconomic and result in reduced reported Mineral Resources, which in turn could have a material adverse effect on our results of operations or financial condition.  We cannot provide assurance that mineral recovery rates achieved in small scale tests will be duplicated in large scale tests under on-site conditions or in production scale. In addition, if our projects produce concentrate for which there is no market, specifically, with respect to concentrate containing rhenium, this may have an impact on the economic model for the Brucejack Mine. A reduction in any resources that may be estimated by us in the future could have an adverse impact on our future cash flows, earnings, results of operations and financial condition.

There is a risk that Inferred Mineral Resources referred to in this AIF cannot be converted into Measured or Indicated Mineral Resources as there may be limited ability to assess geological continuity. In addition, there is no assurance that any Mineral Resource estimates for the Brucejack Mine will ultimately be reclassified as Proven or Probable Mineral Reserves. The failure to establish Proven and Probable Mineral Reserves could restrict our ability to successfully implement our strategies for long-term growth and may impact future cash flows, earnings, results of operation and financial condition.

Depletion of Mineral Reserves.

Given that mines have limited lives based on Proven and Probable Mineral Reserves, we must continually replace and expand our Mineral Resources and Mineral Reserves at the Brucejack Mine and discover, develop or acquire Mineral Reserves for production.

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Our ability to maintain or increase our annual production of gold will depend in significant part on our ability to expand Mineral Reserves or develop or acquire new Mineral Reserves and Mineral Resources. Exploration is inherently speculative, is frequently unsuccessful and involves many risks. There is a risk that depletion of our Mineral Reserves will not be offset by discoveries, development or acquisitions. If our Mineral Reserves are not replaced either by the development of additional Mineral Reserves and/or additions to Mineral Reserves, there may be an adverse impact on our future cash flows, earnings, results of operations and financial condition, and this may be compounded by requirements to expand funds for reclamation and decommissioning.

We are dependent on the Brucejack Mine for our future operating revenue.

Our only material property for the purposes of NI 43-101 is the Brucejack Mine, which has a limited life based on Mineral Resource estimates.  Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.  We must continually explore to replace and expand our Mineral Reserves and Mineral Resources. In the absence of additional mineral projects, we will be solely dependent upon the Brucejack Project for our revenue and profits, if any.

Ongoing operations and future development costs are difficult to predict and may render the Brucejack Mine financially unfeasible.  The success of our mining operations is dependent on many factors including: the discovery and/or acquisition of Mineral Reserves and Mineral Resources; successful conclusions to feasibility and other mining studies; access to adequate capital for project development and to sustaining capital; design and construction of efficient mining and processing facilities within capital expenditure budgets; obtaining permits, consents and approvals necessary for the conduct of exploration and mining; compliance with the terms and conditions of all permits, consents and approvals during the course of mining activities; access to competent operational management and prudent financial administration, including the availability and reliability of appropriately qualified employees, contractors and consultants; and the ability to procure major equipment items and key consumables in a timely and cost-effective manner.

Increases in oil prices, and in turn diesel fuel prices, and the cost of equipment would add significantly to operating costs. These are all beyond our control. An inability to secure ongoing supply of such goods and services at prices assumed within the short and long term mine plans, and assumed within feasibility studies, could have a material and adverse effect on our business, the results of our costs, results of operations, financial performance and financial condition. This could render a previously profitable project unprofitable.

Costs can also be affected by factors such as changes in market conditions, government policies and exchange rates, all of which are unpredictable and outside our control.

The development of our properties will be subject to all of the risks associated with establishing new mining operations.

Development of our mineral properties requires the construction and operation of mines, processing plants and related infrastructure. As a result, we are and will continue to be subject to all of the risks associated with establishing new mining operations, including:

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·the timing and cost, which can be considerable, of the construction and expansion of mining and processing facilities;

·the availability and cost of skilled labour, mining equipment and principal supplies needed for operations;

·the availability and cost of appropriate smelting and refining arrangements;

·the need to obtain and maintain necessary environmental and other governmental approvals and permits;

·the availability of funds to finance construction and development activities;

·potential opposition from non-governmental organizations, First Nations, environmental groups, local groups or other stakeholders which may delay or prevent development activities; and

·potential increases in construction and operating costs due to changes in the cost of labour, fuel, power, materials and supplies, and fluctuations in currency exchange rates.

The costs, timing and complexities of developing our projects may be greater than anticipated because the majority of such property interests are not located in developed areas, and, as a result, our property interests may not be served by appropriate road access, water and power supply and other support infrastructure. Cost estimates may increase as more detailed engineering work is completed on a project. It is common in new mining operations to experience unexpected costs, problems and delays during construction, development and mine start-up. Accordingly, we cannot provide assurance that our activities will result in profitable mining operations at our mineral properties.

We may not have sufficient funds to mine, develop, expand or complete further exploration programs on our mineral properties.

Mining, development, expansion and exploration of our properties will require ongoing financing as a result of various factors including the potential for rising and unforeseen costs and fluctuations in metal prices. We must generate sufficient internal cash flow or be able to utilize available financing sources to finance our growth and sustaining capital requirements.  In the future, our ability to continue exploration, and development and production activities, if any, may depend on our ability to generate sufficient cash flows from our operations and/or to obtain additional external financing. Any unexpected costs, problems or delays could severely impact our ability to continue exploration and development activities, and our ability to generate sufficient cash flows and require greater reliance on alternative sources of financing.  Our access to financing is always uncertain.

The sources of external financing that we may use for these purposes include project or bank financing, or public or private offerings of equity and debt or any combination thereof. In addition, we may enter into one or more strategic alliances or joint ventures, decide to sell certain property interests, or utilize one or a combination of all of these alternatives. The financing alternative, or alternatives, we choose may not be available on acceptable terms, or at all. If additional financing is not available, we may have to postpone the further exploration or development of, or sell, one or more of our principal properties. Furthermore, even if we raise sufficient additional capital, there can be no assurance that we will achieve profitability or positive cash flow. In addition, any future equity offering will further dilute your equity interest in us and any future debt financing will require us to dedicate a portion of our cash flow to

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payments on indebtedness and will limit our flexibility in planning for or reacting to changes in our business.

We have a history of losses, negative operating cash flow and a significant accumulated deficit. We may incur losses and may experience negative operating cash flow in the future.

While we generated net earnings for the year ended December 31, 2018, we have incurred net losses in each fiscal year prior thereto since our inception. There can be no assurance that we will generate any revenues or achieve profitability or that the Brucejack Mine will generate earnings, operate profitably or provide a return on investment in the future. Our business strategies may not be successful, and we may not be profitable in any future period.

There can be no assurance that the underlying assumed levels of expenses will prove to be accurate.  There can be no assurance that significant additional losses will not occur in the near future or that we will be profitable in the future. Our operating expenses and capital expenditures may increase in subsequent years as consultants, personnel and equipment associated with advancing exploration, development and commercial production of our properties are added.

The amount and timing of expenditures will depend on the progress of ongoing exploration and development, the results of consultants’ analyses and recommendations, the rate at which operating losses are incurred, the execution of any joint venture agreements with strategic partners, our acquisition of additional properties and other factors, many of which are beyond our control.

To the extent that we have negative cash flow in future periods, we may need to allocate a portion of our cash reserves to fund such negative cash flow. We may also be required to raise additional funds through the issuance of equity or debt securities. There can be no assurance that additional capital or other types of financing will be available when needed or that these financings will be on terms favourable to us.

If our counterparties to the Credit Agreement or Offtake Agreement default on their contractual obligations, we may be materially and adversely affected.

If a counterparty does not meet its contractual obligations under the Credit Agreement or Offtake Agreement, or if they become insolvent, our business, operating and financial results, and financial condition may be materially adversely impacted.

Pursuant to the Offtake Agreement, we have agreed to sell “Refined Precious Metals” (as defined therein) to the purchasers under the Offtake Agreement. If such purchasers do not meet their respective obligations, or if any such purchasers become insolvent, we may incur losses for products already shipped and be forced to sell volumes of our products in the spot market or we may not have a market for our products, which could have a material adverse impact on our business, financial performance and financial condition.

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General economic conditions may adversely affect our growth, profitability and ability to obtain financing.

Events in global financial markets in the past several years have had a profound impact on the global economy. Many industries, including the gold mining industry, have been and continue to be impacted by these market conditions. Some of the key impacts of the current financial market turmoil include contraction in credit markets resulting in a widening of credit risk, devaluations, high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market confidence and liquidity. A continued or worsened slowdown in the financial markets or other economic conditions, including but not limited to, consumer spending, employment rates, business conditions, inflation, fuel and energy costs, consumer debt levels, lack of available credit, the state of the financial markets, interest rates and tax rates, may adversely affect our growth, profitability and ability to obtain financing. A number of issues related to economic conditions could have a material adverse effect on our business, financial condition and results of operations, specifically:

·contraction in credit markets could impact the cost and availability of financing and our overall liquidity;

·the volatility of gold and other metal prices would impact our revenues, profits, losses and cash flow;

·continued recessionary pressures could adversely impact demand for our production;

·volatile energy, commodity and consumables prices and currency exchange rates could impact our production costs; and

·the devaluation and volatility of global stock markets could impact the valuation of our equity and other securities.

Mining is inherently risky and subject to conditions or events beyond our control.

The development and operation of a mine or mine property is inherently dangerous and involves many risks that even a combination of experience, knowledge and careful evaluation may not be able to overcome, including:

·unusual or unexpected geological formations;

·metallurgical and other processing problems;

·metal losses;

·environmental hazards;

·power outages;

·labour disruptions;

·community relations issues;

·industrial accidents;

·periodic interruptions due to inclement or hazardous weather conditions;

·flooding, explosions, fire, rockbursts, cave-ins and landslides;

·mechanical equipment and facility performance problems;

·avalanches; and

·the availability of materials and equipment.

These risks could result in damage to, or destruction of, mineral properties, production facilities or other properties, personal injury or death, including to our employees, environmental

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damage, delays in mining, increased production costs, asset write downs, monetary losses and possible legal liability, and/or facility and workforce evacuation. We may not be able to obtain insurance to cover these risks at economically feasible premiums, or at all. Insurance against certain environmental risks, including potential liability for pollution and other hazards as a result of the disposal of waste products occurring from production, is not generally available to companies within the mining industry. We may suffer a material adverse impact on our business if we incur losses related to any significant events that are not covered by our insurance policies.

We cannot provide assurance that we currently hold or will successfully acquire commercially mineable mineral rights.

Exploration for and development of gold properties involves significant financial risks which even a combination of careful evaluation, experience and knowledge may not eliminate.  While the discovery of an ore body may result in substantial rewards, few properties which are explored are ultimately developed into producing mines. Major expenses may be required to establish Mineral Reserves by drilling, constructing mining and processing facilities at a site, developing metallurgical processes and extracting gold from ore.  We cannot ensure that our current exploration and development programs will result in profitable commercial mining operations.

The economic feasibility of development projects is based upon many factors, including the accuracy of Mineral Resource and Mineral Reserve estimates; metallurgical recoveries; capital and operating costs; government regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting and environmental management and protection; and gold prices, which are highly volatile. Development projects are also subject to the successful completion of feasibility studies, issuance of necessary governmental permits and availability of adequate financing.

Most exploration projects do not result in the discovery of commercially mineable ore deposits, and no assurance can be given that any anticipated level of recovery of Mineral Reserves, if any, will be realized or that any identified mineral deposit will ever qualify as a commercially mineable (or viable) ore body which can be legally and economically exploited. Estimates of Mineral Reserves, Mineral Resources, mineral deposits and production costs can also be affected by such factors as environmental permitting regulations and requirements, weather, environmental factors, unforeseen technical difficulties, the metallurgy of the mineralization forming the mineral deposit, unusual or unexpected geological formations and work interruptions. If current exploration programs do not result in the discovery of commercial ore, we may need to write-off part or all of our investment in existing exploration stage properties.

Material changes in Mineral Reserves, if any, grades, stripping ratios or recovery rates may affect the economic viability of any project. Our future growth and productivity will depend, in part, on our ability to develop commercially mineable mineral rights at our existing properties or identify and acquire other commercially mineable mineral rights, and on the costs and results of continued exploration and potential development programs. Mineral exploration is highly speculative in nature and is frequently non-productive. Substantial expenditures are required to: establish Mineral Reserves through drilling and metallurgical and other testing techniques;

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determine metal content and metallurgical recovery processes to extract metal from the ore; and construct, renovate or expand mining and processing facilities.

In addition, if we discover ore, it would take several years from the initial phases of exploration until production is possible. During this time, the economic feasibility of production may change. As a result of these uncertainties, there can be no assurance that we currently hold or will successfully acquire additional commercially mineable (or viable) mineral rights.

Suitable infrastructure may not be available or damage to existing infrastructure may occur.

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants for capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploration, exploitation or development of our projects. If adequate infrastructure is not available in a timely manner, we cannot assure you that the exploitation or development of our projects will be commenced or completed on a timely basis, or at all, or that the resulting operations will achieve the anticipated production volume, or that the construction costs and operating costs associated with the exploitation and/or development of our projects will not be higher than anticipated.  In addition, unusual weather phenomena, sabotage, government, First Nations or other interference in the maintenance or provision of such infrastructure could adversely affect our operations and profitability.  Further, there are risks associated with the construction and operation of an underground mining project relating to, among other things, supervision of the contractors, cost estimating, delivery and operation of equipment, and disposal of waste rock.

We are subject to certain transportation and refining risks that could have a negative impact on our operations.

Doré and mineral concentrates containing combinations of silver and gold are produced at the Brucejack Mine and transported to smelters. This type of process involves certain environmental and financial risks. We could be subject to potential significant increases in transportation charges and treatment and refining charges. Transportation of such doré and mineral concentrates is also subject to numerous risks including, but not limited to, delays in delivery of shipments, road blocks, criminal activities, civil unrest, weather conditions and environmental liabilities in the event of an accident or spill. We could also be subject to the risk of a potential interruption of business from a third party beyond our control, which could have a material adverse effect on our operations and revenues. We could be subject to limited smelter availability and capacity and could also face the risk of a potential interruption of business from a third party beyond our control, which in both cases could have a material adverse effect on our business, operations, financial performance and financial condition. There is no assurance that smelting, refining or transportation contracts for the Brucejack Mine’s production will be entered into and/or renewed on acceptable terms or that the counterparties to such contracts will meet their respective obligations thereunder. If we are unable to effectively process and refine our doré and mineral concentrates on acceptable terms or if the counterparties to our smelting, refining and transportation contracts fail to meet their respective obligations thereunder, our business, operations, financial performance and financial condition could be materially adversely impacted.

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We are dependent upon the efforts of our employees and contractors and our operations would be adversely affected if we fail to maintain satisfactory labour relations.

Certain of our mining and exploration activities are conducted by outside contractors. As a result, our operations may be subject to a number of risks, some of which will be outside of our control, including negotiating agreements with contractors on acceptable terms; the inability to replace a contractor and its operating equipment in the event that either party terminates the agreement; reduced control over such aspects of operations that are of the responsibility of the contractor; failure of a contractor to perform under its agreement with us; failure of a contractor to comply with applicable legal and regulatory requirements, to the extent that it is responsible for such compliance; and problems of a contractor with managing its workforce, labour, unrest or other employment issues. In addition, we may incur liability to third parties as a result of the actions of a contractor. The occurrence of one or more of these risks could have a material adverse effect on our business, results of operations and financial condition.

Production at our Brucejack Mine is dependent upon the efforts of our employees and our operations would be adversely affected if we fail to maintain satisfactory labour relations. Factors such as work slowdowns or stoppages caused by the attempted unionization of operations and difficulties in recruiting qualified miners and hiring new miners could materially adversely affect our business. This would have a negative effect on our business and results of operations; which might result in us not meeting our business objectives.

We are subject to significant governmental regulations.

The operation of the Brucejack Mine, as well as our exploration and development activities are subject to extensive federal, provincial and local laws, regulations and policies governing various matters, including but not limited to:

·environmental protection;

·the management and use of toxic substances and explosives;

·management of tailings and other wastes;

·the management of natural resources and land;

·the exploration and development of mineral properties;

·mine construction;

·mine production and post-closure reclamation;

·exports;

·price controls;

·taxation and mining royalties;

·labour standards and occupational health and safety, including mine safety; and

·historic and cultural preservation.

The Canadian Extractive Sector Transparency Measures Act (“ESTMA”), which became effective June 1, 2015, requires public disclosure of payments to governments by mining companies engaged in the commercial development of minerals who are either publicly listed in Canada or with business or assets in Canada.  Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments at all levels, including entities established by two or more governments, and including Aboriginal groups.  ESTMA requires reporting on the payments of any taxes, royalties, fees, production

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entitlements, bonuses, dividends, infrastructure improvement payments, and any other prescribed payment over C$100,000.  Failure to report, false reporting or structuring payments to avoid reporting may result in fines of up to C$250,000 (which may be concurrent).  If we find ourselves subject to an enforcement action or in violation of ESTMA, this may result in significant penalties, fines and/or sanctions imposed on us resulting in a material adverse effect on our reputation.

Failure to comply with applicable laws and regulations may result in civil or criminal fines or penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations or requiring corrective measures, installation of additional equipment or remedial actions, any of which could result in significant expenditures. We may also be required to compensate private parties suffering loss or damage by reason of a breach of such laws, regulations or permitting requirements. It is also possible that future laws and regulations, or more stringent enforcement of current laws and regulations by governmental authorities, could cause us to incur additional expense or capital expenditure restrictions or suspensions of our activities and delays in the exploration and development of our properties.

Our efforts to comply with new rules and regulations have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities.  If we fail to comply with such regulations, it could have a negative effect on our business, results of operations and share price and investors could lose all or part of their investment.  These rules and regulations continue to evolve in scope and complexity and many new requirements have been created in response to laws enacted by governments, making compliance more difficult and uncertain.

We require various permits in order to conduct current and anticipated future operations, and delays in obtaining or failure to obtain such permits, or failure to renew applicable permits or comply with the terms of any such permits that we have obtained, could adversely affect our business.

Our current and anticipated future operations, and further exploration and development on our mineral properties, require permits and other approvals from various governmental authorities. Obtaining or renewing governmental permits is a complex and time-consuming process. The duration and success of efforts to obtain and renew permits are contingent upon many variables not within our control.

We have obtained major permits that were required to complete construction and commence production at the Brucejack Mine; however, we cannot provide assurance that all rights and permits that we require for our future operations, for construction of mining facilities or conduct of mining, will be obtainable or renewable on reasonable terms, or at all. Unexpected costs or delays with the permitting process, failure to obtain required permits or the expiry, revocation or failure to comply with the terms of any such permits that we have obtained, would adversely affect our business.

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Our activities are subject to health, safety and environmental laws and regulations that may increase our costs and restrict our operations.

All of our exploration, development and production activities are subject to regulation by governmental agencies under various environmental and health and safety laws and regulations. These laws address, among other things, emissions into the air, discharges into water, management of waste, management of hazardous substances, protection of natural resources, antiquities and endangered species, reclamation of lands disturbed by mining operations and employee health and safety.

Environmental legislation is evolving, and the general trend has been towards stricter standards and enforcement, increased fines and penalties for noncompliance, more stringent environmental assessments of proposed projects and increasing responsibility for companies and their officers, directors and employees. Compliance with environmental laws and regulations may require significant capital outlays on our behalf and may cause material changes or delays in our intended activities. Future changes in these laws or regulations could have a significant adverse impact on some portion of our business, requiring us to re-evaluate those activities at that time.

Our operations will generate chemical and metals depositions in the form of tailings. Our ability to obtain, maintain and renew permits and approvals and to successfully develop and operate mines may be adversely affected by real or perceived impacts associated with our activities or of other mining companies that affect the environment, human health and safety. Recent regulations under the British Columbia Mines Act increase potential penalties for prosecutions and allow for administrative monetary penalties to be imposed without a court process.

Environmental hazards may exist on our properties that are unknown to us at the present time and have been caused by previous owners or operators or that may have occurred naturally. We may be liable for remediating such damage.

Failure to comply with applicable environmental and health and safety laws, regulations and permitting requirements may have an adverse effect on our business, operations and results therefrom, and our financial condition, including as a result of enforcement actions thereunder, such as orders issued by regulatory or judicial authorities, causing operations to cease or be curtailed. Such enforcement actions may include the imposition of corrective measures requiring capital expenditure, installation of new equipment or remedial action. While responsible environmental, health and safety stewardship is one of our top priorities, we cannot assure you that we have been or will be at all times in complete compliance with such laws, regulations and permits, or that the cost of complying with current and future environmental and health and safety laws and permits will not materially and adversely affect our business, results of operations or financial condition.

Compliance with emerging climate change regulations could result in significant costs and the effects of climate change may present physical risks to our operations.

Governments at all levels have been moving towards enacting legislation to address climate change concerns, such as requirements to reduce emission levels and increase energy efficiency, and political and economic events may significantly affect the scope and timing of climate

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change measures that are ultimately put in place. Where legislation has already been enacted, such regulations may become more stringent, which may result in increased costs of compliance and/or changes in our operations. There is no assurance that compliance with such regulations will not have an adverse effect on our operations and results therefrom, and financial condition.  Furthermore, given the evolving nature of the debate related to climate change and resulting requirements, it is not possible to predict the impact on our results of operations and financial condition.

In addition, our operations could be exposed to extreme weather events, such as increased periods of snow, and increased frequency and intensity of storms. Such events or conditions could disrupt mining and transport operations, exploration and development plans, mineral processing and rehabilitation efforts, and could damage our property or equipment and increase health and safety risks on site. Such events or conditions could also have adverse effect on our workforce and surrounding communities. Our emergency plans for managing extreme weather conditions may not be sufficient and extended disruptions could have adverse effects on our results of operations and financial condition.

We may fail to maintain adequate internal control over financial reporting pursuant to the requirements of the Sarbanes-Oxley Act and other applicable regulators.

We annually document and test our internal control procedures in order to satisfy the requirements of applicable regulations, including Section 404 of the Sarbanes-Oxley Act (“SOX”) in the United States and National Instrument 52-109 — Certification of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”) in Canada.  SOX requires an annual assessment by management of the effectiveness of our internal control over financial reporting and, for fiscal years commencing with our fiscal year ended December 31, 2012, an attestation report by our independent auditors addressing the effectiveness of internal control over financial reporting.  We may fail to maintain the adequacy of our internal control over financial reporting as such standards are modified, supplemented or amended from time to time, and we may not be able to conclude, on an ongoing basis, that we have effective internal control over financial reporting in accordance with applicable regulations.

Our failure to satisfy the requirements of applicable regulations, including Section 404 of SOX and NI 52-109, on an ongoing, timely basis could result in the loss of investor confidence in the reliability of our financial statements, which in turn could harm our business and negatively impact the trading price or the market value of our securities.  In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations.  Future acquisitions of companies, if any, may provide us with challenges in implementing the required processes, procedures and controls in our acquired operations. No evaluation can provide complete assurance that our internal control over financial reporting will detect or uncover all failures of persons within our Company to disclose material information otherwise required to be reported.

The effectiveness of our processes, procedures and controls could also be limited by simple errors or faulty judgments.  In addition, as we continue to expand, the challenges involved in implementing appropriate internal control over financial reporting will increase and will require that we continue to monitor our internal control over financial reporting.  Although we

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intend to expend substantial time and incur substantial costs, as necessary, to ensure ongoing compliance, we cannot be certain that we will be successful in complying with applicable regulations, including Section 404 of SOX and NI 52-109.

We are subject to various tax-related risks.

Our taxes are affected by a number of factors, some of which are outside of our control, including the application and interpretation of the relevant tax laws and treaties. If our filing position, application of tax incentives or similar tax “holidays” or benefits were to be challenged for any reason, this could have a material adverse effect on our business, results of operations and financial condition.

We are subject to routine tax audits by tax authorities. Tax audits may result in additional tax interest payments and penalties which would negatively affect our financial condition and operating results. New laws and regulations or changes in tax rules and regulations or the interpretation of tax laws by the courts or the tax authorities may also have a substantial negative impact on our business. There is no assurance that our current financial condition will not be materially adversely affected in the future due to such changes.

We face potential opposition from non-governmental organizations.

In recent years, communities and non-governmental organizations (“NGOs”) have become more vocal and active with respect to mining activities at or near their communities. These communities and NGOs have taken such actions as road closures, work stoppages, and law suits for damages. These actions relate not only to current activities but often in respect of decades old mining activities by prior owners of mining properties. Such actions by communities and NGOs may be disruptive to our operations and may have a material adverse effect on our results of operations or financial condition.

There is uncertainty related to unsettled First Nations rights and title in British Columbia and this may create delays in project approval or interruptions in project progress.

The nature and extent of First Nations rights and title remains the subject of active debate, claims and litigation in British Columbia. First Nations in British Columbia have made claims of aboriginal rights and title to substantial portions of land and water in the province, including areas where the Company’s operations are situated, creating uncertainty as to the status of competing property rights. The Supreme Court of Canada has held that aboriginal groups may have a spectrum of aboriginal rights in lands that have been traditionally used or occupied by their ancestors. Such aboriginal rights and title are not absolute and may be infringed by government in furtherance of a legislative objective, subject to meeting a justification test. The effect of such claims on any particular area of land will not be determinable until the exact nature of historical use, occupancy and rights to such property have been clarified by a decision of the Courts or definition in a treaty. First Nations in the province are seeking settlements including compensation from governments with respect to these claims, and the effect of these claims cannot be estimated at this time. The federal and provincial governments have been seeking to negotiate settlements with aboriginal groups throughout British Columbia in order to resolve many of these claims. Any settlements that may result from these negotiations may involve a combination of cash, resources, grants of conditional rights to undertake traditional

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pursuits (like hunting, gathering, trapping and fishing) on public lands, and some rights of self-government. The issues surrounding aboriginal title and rights are not likely to be resolved in the near future.

In a landmark decision in 2004, the Supreme Court of Canada determined that there is a duty on government to consult with and, where appropriate, accommodate First Nations where government decisions may impact on claimed, but as yet unproven, aboriginal rights or title. This decision also provided much needed clarification of the duties of consultation and accommodation. This decision was re-enforced in a 2010 decision of the Supreme Court of Canada, in which the Court re-affirmed and re-stated the test for determining when the duty to consult arises. The Court has made clear that third parties are not responsible for consultation or accommodation of aboriginal interests and that this responsibility lies with government. However, government permits, including environmental and mine permits, will not be granted by provincial and federal agencies unless they are satisfied that the duty to consult and accommodate has been fully met. In 2005, the Supreme Court of Canada confirmed that this duty exists with respect to claimed treaty rights.

Additional uncertainty has arisen due to the recent decision of the Supreme Court of Canada in Tsilhqot’in Nation v. British Columbia (2014 SCC 44), which recognized the Tsilhqot’in Nation as holding Aboriginal Title to approximately 1,900 square kilometres of territory in the interior of British Columbia.  This decision represents the first successful claim for  aboriginal title in Canada and may lead other First Nations in British Columbia to pursue aboriginal title in their traditional land-use areas.

Our mineral claims and leases lie within territory claimed by First Nations and a portion lies within the Nass Area, as defined in the Nisga’a Final Agreement between the Nisga’a Lisims Government and the Federal and Provincial governments, which came into effect on May 11, 2000. However, there may be overlapping claims by other First Nations. Given the unsettled nature of land claims and treaty rights in British Columbia, as well as the rights of the Nisga’a under the Nisga’a Final Agreement, there can be no guarantee that there will not be delays in any required approvals, unexpected interruptions in project progress, requirements for First Nations consent, cancellation of permits and licences, or additional costs to advance the Company’s projects.

In addition, the Government of Canada has expressed a renewed commitment to implementing the United Nations Declaration of the Rights of Indigenous People which requires governments to obtain the free, prior, and informed consent of indigenous peoples who may be affected by government action, such as the granting of mining concessions or approval of mine permits.

In order to facilitate mine permitting, construction and the commencement of mining activities, we may deem it necessary and prudent to try to obtain the cooperation and approval of the local First Nations groups. Any cooperation and approval may be predicated on our committing to take measures to limit the adverse impacts on local First Nations groups and ensuring that some of the economic benefits of the construction and mining activity will be enjoyed by the local First Nations groups. There can be no guarantee that any of our efforts to secure such cooperation or approval would be successful or that the assertion of First Nations rights and title, or claims of insufficient consultation or accommodation, will not create delays in project approval or unexpected interruptions in project progress, requirements for First

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Nations consent, cancellation of permits and licences, or result in additional costs to advance our projects.

Our properties may be subject to uncertain title.

We cannot provide assurance that title to our properties will not be challenged. We hold mineral claims which constitute our property holdings. We may not have, or may not be able to obtain, all necessary surface rights to develop a mineral property. Title insurance is generally not available for mineral properties and our ability to ensure that we have obtained a secure claim to individual mining properties may be severely constrained. We have not conducted surveys of all of the claims in which we hold direct or indirect interests. A successful claim contesting our title to a property could cause us to lose our rights to explore and, if warranted, develop that property or undertake or continue production thereon. This could also result in our not being compensated for our prior expenditures relating to such property.

Land reclamation and mine closure requirements may be burdensome.

Land reclamation and mine closure requirements are generally imposed on mining companies in order to minimize long term effects of land disturbance. Such requirements may include requirements to treat ground and surface water to drinking water standards, control dispersion of potentially deleterious effluent and reasonably re-establish pre-disturbance land forms and vegetation. In order to carry out reclamation and mine closure obligations imposed on us in connection with exploration, development and production activities, we must allocate financial resources that might otherwise be spent on further exploration and development programs. The actual costs of reclamation and mine closure are uncertain and planned expenditures may differ from the actual expenditures required. Therefore, the amount that we are required to spend may be materially higher than our estimates. Any additional amounts we are required to spend on reclamation and mine closure may have a material adverse effect on our financial performance, financial condition and results of operations.

We may fail to identify attractive acquisition candidates or may fail to successfully integrate acquired material properties.

Our Loan Facility imposes certain limitations on our ability to engage in acquisitions of businesses and assets, as well as the pool of acquisition candidates. Nevertheless, we may actively pursue the acquisition of exploration, development and production assets consistent with the terms of the Credit Agreement and our acquisition and growth strategy. Any acquisition that we may choose to complete may change the scale of our business and operations, and may expose us to new or greater geographic, political, operating, financial, legal and geological risks. Our success in our acquisition activities depends on our ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition and integrate the acquired operations successfully. The identification of attractive candidates and integration of acquired properties, assets or entities involve inherent risks, including but not limited to:

·accurately assessing the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates;

·ability to achieve identified and anticipated operating and financial synergies;

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·unanticipated costs;

·diversion of management attention from existing business;

·potential disruption in ongoing business and operations or loss of our key employees or key employees of any business acquired;

·unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying the acquisition; and

·decline in the value of acquired properties, companies or securities.

Any one or more of these factors or other risks could cause us not to realize the anticipated benefits of an acquisition of properties or companies, and could have a material adverse effect on our financial condition.  We may not be able to successfully overcome these risks and other problems associated with acquisitions, and this may adversely affect our business, financial condition or results of operations.

The process of managing acquisitions may involve unforeseen difficulties and may require a disproportionate amount of management resources, which may divert management’s focus and resources from other strategic opportunities and from operational matters during this process. Any acquisitions would be accompanied by risks. There can be no assurance that we will be able to successfully manage the integration and operations of businesses or properties we acquire or that the anticipated benefits of our acquisitions will be realized.

In connection with any future acquisitions, we may incur indebtedness or issue equity securities, resulting in increased interest expense or dilution of the percentage ownership of existing shareholders. Acquisition costs, additional indebtedness or issuances of securities in connection with such acquisitions, may adversely affect the price of our Common Shares and negatively affect our results of operations.

We may be adversely affected by future fluctuations in foreign exchange rates.

Our potential profitability is exposed to the financial risk related to the fluctuation of foreign exchange rates. The minerals that could be produced from our projects are priced in United States dollars but, since our only projects are located in Canada, the majority of our estimated expenditures are in Canadian dollars. A significant change in the currency exchange rates between the Canadian dollar relative to the United States dollar will have an effect on the potential profitability of our projects and therefore our ability to continue to finance our operations. To the extent that the actual Canadian dollar to United States dollar exchange rate is less than or more than the rate estimated in any future development plans, the profitability of our projects will be affected. Accordingly, our prospects, financial performance and forecasts may suffer due to adverse currency fluctuations.

The mining industry is very competitive.

The mining industry is very competitive in all of its phases and we compete with other exploration and producing companies, many of which are better capitalized, have greater financial resources, operational experience and technical capabilities or are further advanced in their development or are significantly larger and have access to greater mineral reserves. There is intense competition in the mining industry for the acquisition of mineral claims, leases and other mineral interests that can be developed and produced economically, the capital for the

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purposes of funding such properties, as well as for the recruitment and retention of qualified employees and other personnel, including technical expertise to find, develop and operate such properties and the labour to operate such properties. If we require and are unsuccessful in acquiring additional mineral properties, necessary capital or qualified personnel, we will not be able to grow at the rate we desire, or at all.

Our competitors may be able to devote greater resources to the expansion and efficiency of their operations or respond more quickly to new laws and regulations or emerging technologies than we can. We may not be able to compete successfully against current and future competitors, and any failure to do so could have a material adverse effect on our business, financial condition or results of operations.

We may experience difficulty attracting and retaining qualified management and personnel.

We compete with other mining companies as well as other companies operating in northern British Columbia to attract and retain key personnel. We are dependent on the services of key executives and other highly skilled and experienced personnel to advance our corporate objectives as well as to identify new opportunities for growth and funding. Our current executive officers are set out under the heading “Directors and Officers” in this AIF. It will be necessary for us to recruit additional skilled and experienced management and personnel. Our inability to do so, or the loss of Mr. Quartermain or Mr. Ovsenek or any of our key executives, or our inability to attract and retain suitable replacements for such executives or the additional highly skilled employees required for our activities, would have a material adverse effect on our business, prospects, operations, and financial condition.

Some of our directors and officers have conflicts of interest as a result of their involvement with other natural resource companies.

Certain of our directors and officers also serve as directors or officers, or have significant shareholdings in, other companies involved in natural resource exploration and development or mining-related activities. To the extent that such other companies may participate in ventures that we may also participate in, or in ventures that we may seek to participate in, our directors and officers may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation. In all cases where our directors and officers have an interest in other companies, such other companies may also compete with us for the acquisition of mineral property investments. Such conflicts of our directors and officers may result in a material and adverse effect on our profitability, results of operation and financial condition. As a result of these conflicts of interest, we may miss the opportunity to participate in certain transactions, which may have a material adverse effect on our financial position.

We may be unable to attract development partners.

We may seek to develop some or all of our projects in partnership with one or more third parties in a corporate or contractual joint venture, or otherwise, or to dispose of some part or of its project to another party, retaining a royalty interest therein. We may be unable to find such partners or to negotiate satisfactory terms therewith, in which case we will be obliged to either postpone development of such project or proceed alone with the costs of further development.

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Failure to comply with the U.S. Foreign Corrupt Practices Act (“FCPA”), as well as the anti-bribery laws of the nations in which we conduct business (such as the UK’s Bribery Act or the Corruption of Foreign Public Officials Act of Canada (“CFPOA”)), could subject us to penalties and other adverse consequences.

Our business is subject to the FCPA which generally prohibits companies and company employees from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. The FCPA also requires companies to maintain accurate books and records and internal controls, including at foreign-controlled subsidiaries. In addition, we are subject to other anti-bribery laws of the nations in which we conduct business that apply similar prohibitions as the FCPA (such as the UK’s Bribery Act, the CFPOA and the OECD Anti-Bribery Convention). Our employees or other agents may, without our knowledge and despite our efforts, engage in prohibited conduct under our policies and procedures and the FCPA or other anti-bribery laws that we may be subject to for which we may be held responsible. If our employees or other agents are found to have engaged in such practices, we could suffer severe penalties and other consequences that may have a material adverse effect on our business, financial condition and results of operations.

Changes in rules and regulations, including potential new accounting pronouncements, are likely to impact our future financial position or results of operations.

We are subject to changing rules and regulations promulgated by a number of governmental and self-regulated organizations, including but not limited to the SEC, Canadian Securities Administrators, stock exchanges and the International Accounting Standards Board. These rules and regulations continue to evolve in scope and complexity and many new requirements have been created in response to laws that have been enacted, making compliance more difficult and uncertain. Future changes in financial accounting standards may cause adverse, unexpected revenue fluctuations and affect our financial position or results of operations. New pronouncements and varying interpretations of pronouncements have occurred with greater frequency and are expected to occur in the future. Our efforts to comply with new and changing rules and regulations have resulted in, and are likely to continue to result in, increased expenses and a diversion of management time and attention from revenue-generating activities to compliance activities. In addition, all of these uncertainties are leading generally toward increasing insurance costs, which may adversely affect our business, results of operations and our ability to purchase any such insurance, at acceptable rates or at all, in the future.

Our insurance coverage does not cover all of our potential losses, liabilities and damages related to our business and certain risks are uninsured and/or uninsurable.

Our business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents labour disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, mechanical failures, changes in the regulatory environment and natural phenomena such as inclement weather conditions, fires, floods, hurricanes, and earthquakes. Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to mineral properties or the properties of others, delays in mining, monetary losses and possible legal liability.

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Although we maintain insurance to protect against certain risks in such amounts we consider reasonable, our insurance will not cover all of the potential risks associated with a mining company’s operations. We may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not continue to be available or may not be adequate to cover any resulting liability. Moreover, insurance against risks such as loss of title to mineral property, environmental pollution, or other hazards as a result of exploration and production is not generally available to us or to other companies in the mining industry on acceptable terms. We might also become subject to liability for pollution or other hazards which may not be insured against or which we may elect not to insure against because of premium costs or other reasons. We may suffer a material adverse effect on our business, results of operations, cash flows and financial condition as a result of losses related to any event that is not covered, or adequately covered, by our insurance policies.

Our information systems are vulnerable to an increasing threat of continually evolving cyber security risks.

Unauthorized parties may attempt to gain access to our information systems or our information through fraud or other means of deceiving our counterparties, third-party service providers or vendors. Our operations depend, in part, on how well we and our suppliers, as well as counterparties, protect networks, equipment, information technology (“IT”) systems and software against damage from a number of threats. Our operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems and software, as well as pre-emptive expenses to mitigate the risks of failures. Any of these and other events could result in information system failures, delays and/or increases in capital expenses.

The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact our reputation and results of operations. Although to date we have not experienced any material losses relating to cyber attacks or other information security breaches, there can be no assurance that we will not incur such losses in the future. Our risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. Any future significant compromise or breach of our data security, whether external or internal, or misuse of data, could result in additional significant costs, lost sales, fines and lawsuits, and damage to our reputation. In addition, as the regulatory environment related to information security, data collection and use, and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business and counterparties to the above noted agreements, compliance with those requirements could also result in additional costs. As cyber threats continue to evolve, we or our counterparties may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

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Anti-takeover provisions could discourage a third party from making a takeover offer that could be beneficial to our shareholders.

Some of the provisions in our Articles could delay or prevent a third party from acquiring us or replacing members of our Board, even if the acquisition or the replacements would be beneficial to our shareholders. Such provisions include the following:

·shareholders cannot amend our Articles unless at least two-thirds of the shares entitled to vote approve the amendment; and

·our Board can, without shareholder approval, issue preferred shares having any terms, conditions, rights and preferences that the Board determines.

These provisions could also reduce the price that certain investors might be willing to pay for our securities and result in the market price for our securities, including the market price for our Common Shares, being lower than it would be without these provisions.

A period of significant growth can place a strain on management systems.

If we experience a period of significant growth in the number of our personnel, this could place a strain upon our management systems and resources. Our future will depend in part on the ability of our officers and other key employees to implement and improve our financial and management controls, reporting systems and procedures on a timely basis and to expand, train and manage our employee workforce. There can be no assurance that we will be able to effectively manage such growth. Our failure to do so could have a material adverse effect upon our business, prospects, results of operations and financial condition.

Significant shareholders of the Company could influence our business operations and sales of our Common Shares by such significant shareholders could influence our Common Share price.

As at the date of this AIF, to the best of our knowledge, Black Rock Asset Management holds approximately 11.85% of our outstanding Common Shares. Van Eck Associates holds approximately 12.20% of our outstanding Common Shares.

Collectively, these shareholders hold approximately 24.05% of our Common Shares and as a result, these shareholders may have significant influence over the passage of any resolution of our shareholders and, as a result, our business operations.  Sales of substantial amounts of our securities by these significant shareholders could adversely affect the prevailing market prices for our securities.

An event of default under our outstanding Notes may significantly reduce our liquidity and adversely affect our business.

Under the Indenture, we have made various covenants to the trustees on behalf of the holders of such Notes, including to make payments of interest and principal when due and, upon undergoing a fundamental change, to offer to purchase all of the outstanding Notes, plus any accrued and unpaid interest, if any. If there is an event of default under the Notes, the principal amount of such Notes, plus accrued and unpaid interest, if any, may be declared immediately

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due and payable. If such an event occurs, this would place additional strain on our cash resources, which could inhibit our ability to further advance our exploration and development activities.

Damage to our reputation can adversely affect our business.

Damage to our reputation can be the result of the actual or perceived occurrence of any number of events, and could include any negative publicity, whether true or not. We place a great emphasis on protecting our image and reputation, but do not ultimately have direct control over how it is perceived by others. The increased use of social media and other web-based tools used to generate, publish and discuss user-generated content and to connect with other users has made it increasingly easier for individuals and groups to communicate and share opinions and views in regard to us and our activities, whether true or not. Reputation loss may lead to increased challenges in developing and maintaining community relations, decreased investor confidence and an impediment to our overall ability to advance our projects, thereby having a material adverse impact on our business, prospects, operations and our financial condition.

Risks Related to Our Securities

Future sales or issuances of debt or equity securities could decrease the value of any existing Common Shares, dilute investors’ voting power, reduce our earnings per share and make future sales of our equity securities more difficult.

We may sell or issue additional debt or equity securities in offerings to finance our operations, exploration, development, acquisitions or other projects. We cannot predict the size of future issuances of debt or equity securities or the effect, if any, that future sales and issuances of debt or equity securities will have on the market price of the Common Shares.

Additional issuances of our securities may involve the issuance of a significant number of our Common Shares at prices less than the current market price for the Common Shares.  Issuance of substantial numbers of Common Shares, or the perception that such issuances could occur, may adversely affect prevailing market prices of the Common Shares. Any transaction involving the issuance of previously authorized but unissued Common Shares, or securities convertible into Common Shares, would result in dilution, possibly substantial, to security holders.  Sales of substantial amounts of our securities by us or our existing shareholders, or the availability of such securities for sale, could adversely affect the prevailing market prices for our securities and dilute investors’ earnings per share. Sales of our Common Shares by shareholders might also make it more difficult for us to sell equity securities at a time and price that we deem appropriate. Exercises of presently outstanding share options or settlement of presently outstanding restricted share units or performance share units in Common Shares may also result in dilution to security holders. A decline in the market prices of our securities could impair our ability to raise additional capital through the sale of securities should we desire to do so.

Our Common Share price has experienced volatility and may be subject to fluctuation in the future based on market conditions.

The market prices for the securities of mining companies, including our own, have historically been highly volatile. The market has from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of any particular company. In

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addition, because of the nature of our business, certain factors such as our announcements and the public’s reaction, our operating performance and the performance of competitors and other similar companies, fluctuations in the market prices of our resources, government regulations, changes in earnings estimates or recommendations by research analysts who track our securities or securities of other companies in the resource sector, general market conditions, announcements relating to litigation, the arrival or departure of key personnel, political conditions, and the factors listed under the heading “Note Regarding Forward Looking Information and Forward-Looking Statements” can have an adverse impact on the market price of our Common Shares. In addition, securities of public companies, including our own, may be subject from time to time to manipulative trading tactics of third parties, which are beyond our control and which can have an adverse impact on the market price of our Common Shares.

Any negative change in the public’s perception of our prospects could cause the price of our securities, including the price of our Common Shares, to decrease dramatically. Furthermore, any negative change in the public’s perception of the prospects of mining companies in general could depress the price of our securities, including the price of our Common Shares, regardless of our results.

Following declines in the market price of a company’s securities, securities class-action litigation is often instituted. Litigation of this type, if instituted, could result in substantial costs and a diversion of our management’s attention and resources. See “Legal Proceedings and Regulatory Actions”.

We are limited in our ability to, and may not, pay dividends in the foreseeable future.

We have never declared nor paid any dividends on our Common Shares. Under our Loan Facility, we are prohibited from declaring and paying, in cash, any dividend, distribution or return of capital with respect to, or repurchasing for cash consideration, our Common Shares until 2020. Thereafter, we may declare and pay cash dividends, distributions and returns of capital, and may repurchase our Common Shares in limited circumstances and provided such payments do not exceed $40 million per year.

The payment of future dividends, if any, will be reviewed periodically by our Board and will depend upon, among other things, conditions then existing including earnings, financial conditions, cash on hand, financial requirements to fund our exploration activities, development and growth, and other factors that our Board may consider appropriate in the circumstance. See “Dividends and Distributions”.

Enforcement of judgments or bringing actions outside the United States against us and our directors, officers and the experts named herein may be difficult.

We are organized under the laws of, and headquartered in, British Columbia, Canada, and a majority of our directors, officers and the experts named in this AIF are not citizens or residents of the United States. In addition, a substantial part of our assets are located outside the United States. As a result, it may be difficult or impossible for an investor to (i) enforce in courts outside the United States judgments against us and our directors, officers and the experts named in this AIF obtained in U.S. courts based upon the civil liability provisions of U.S. federal securities laws or (ii) bring in courts outside the United States an original action against us and

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our directors, officers and the experts named in this AIF to enforce liabilities based upon such U.S. securities laws.

DIVIDENDS AND DISTRIBUTIONS

We have not, since the date of incorporation, declared or paid any dividends on our Common Shares, and do not currently have a policy with respect to the payment of dividends.

Under our Loan Facility, we are prohibited from declaring and paying, in cash, any dividend, distribution or return of capital with respect to, or repurchasing for cash consideration, our Common Shares until 2020. Thereafter, we may declare and pay cash dividends, distributions and returns of capital, and may repurchase our Common Shares, provided such payments do not exceed $40 million per year, and subject to our pro forma compliance with financial covenants set out in the Credit Agreement and a leverage ratio of less than or equal to 1.5x. See “Our Business — Indebtedness — Debt Refinancing” in this AIF.

The payment of future dividends, if any, will be reviewed periodically by our Board and will depend upon, among other things, conditions then existing including earnings, financial conditions, cash on hand, financial requirements to fund our exploration activities, development and growth, and other factors that our Board may consider appropriate in the circumstance.

DESCRIPTION OF CAPITAL STRUCTURE

Common Shares and Preferred Shares

Our authorized share capital consists of an unlimited number of Common Shares, without par value, and an unlimited number of Preferred Shares, without par value, issuable in series.

As at the date of this AIF, there were 184,208,091 Common Shares and no Preferred Shares issued and outstanding.

All Common Shares rank equally as to voting rights, participation in a distribution of the assets of the Company on a liquidation, dissolution or winding-up of the Company and entitlement to any dividends declared by the Company. The holders of the Common Shares are entitled to receive notice of, and to attend and vote at, all meetings of shareholders (other than meetings at which only holders of another class or series of shares are entitled to vote). Each Common Share carries the right to one vote.

In the event of the liquidation, dissolution or winding-up of the Company, the holders of the Common Shares will be entitled to receive, on a pro rata basis, all of the assets remaining after the payment by the Company of all of its liabilities. The holders of Common Shares are entitled to receive any dividends declared by the Company in respect of the Common Shares, subject to the rights of holders of other classes ranking in priority to the Common Shares with respect to the payment of dividends, on a pro rata basis.  Any alteration of the rights attached to the Common Shares must be approved by at least two-thirds of the Common Shares voted at a meeting of our shareholders.

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We may issue our Preferred Shares from time to time in one or more series.  The terms of each series of Preferred Shares, including the number of shares, the designation, rights, preferences, privileges, priorities, restrictions, conditions and limitations, will be determined at the time of creation of each such series by our Board, without shareholder approval, provided that all Preferred Shares will rank equally within their class as to dividends and distributions in the event of our dissolution, liquidation or winding-up.

Shareholder Rights Plan

We implemented and received shareholder approval for a Shareholder Rights Plan Agreement between us and Computershare Trust Company, as rights agent, dated April 12, 2016 (the “Shareholder Rights Plan”). Pursuant to its terms, the Shareholder Rights Plan shall expire at the end of our annual meeting of shareholders to be held on May 2, 2019. We intend to allow the Shareholder Rights Plan to expire in accordance with its terms, without renewal or implementing a like plan.

MARKET FOR SECURITIES

Trading Price and Volume

Our Common Shares trade on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) under the symbol “PVG”.  Our Common Shares commenced trading on the TSX on December 21, 2010 and on the NYSE on January 12, 2012.

The following table sets out the price ranges (high and low) and trading volume of our Common Shares as quoted on the TSX for each month of our most recently completed financial year:

Month	High (C$)	Low (C$)	Volume
January	$14.94	$8.335	22,328,790
February	$9.10	$7.93	11,726,876
March	$9.43	$7.94	9,986,537
April	$10.55	$8.33	10,245,366
May	$9.50	$8.58	8,610,897
June	$10.26	$9.09	7,097,979
July	$12.87	$9.62	10,360,645
August	$12.36	$9.93	13,501,989
September	$10.89	$8.59	16,926,825
October	$11.22	$9.39	13,491,648
November	$10.95	$9.01	11,697,610
December	$11.70	$9.19	12,583,927

The closing price of our Common Shares on the TSX and the NYSE on March 27, 2019, the last trading day before the date hereof, was C$11.66 and $8.70 per Common Share, respectively.

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Prior Sales

Except as disclosed below, we did not issue any securities in our most recent financial year that are of a class that is not listed or quoted for trading on a marketplace.

Equity Compensation Arrangements:

During 2018, we issued the following under our equity compensation arrangements:

Type of Security	Number of Securities	Date Issued	Issue price/ Exercise Price
Stock options	215,000	08/13/18	C$12.13
	400,592	12/11/18	C$9.78
Restricted Share Units (“RSUs”)	478,166	12/11/18	n/a
Performance Share Units (“PSUs”)	91,945	12/11/18	n/a

For detailed information about our equity compensation arrangements, specifically, our Incentive Stock Option Plan and our Restricted Share Unit Plan, including the compensation principles that govern the grants made, please refer to our management information circular dated April 6, 2018, available under our profile on SEDAR at www.sedar.com.

In 2018, we implemented a Deferred Share Unit Plan (the “DSU Plan”) as a component of our compensation for non-employee directors. Pursuant to the DSU Plan, deferred share units (“DSUs”) may only be settled by way of cash payment. The settlement amount of each DSU is based on the closing price of our Common Shares on the last trading day immediately preceding the DSU redemption date multiplied by the number of DSUs being redeemed. We issued an aggregate of 117,587 DSUs to our non-employee directors on December 11, 2018.

DIRECTORS AND OFFICERS

Name, Occupation and Security Holding

The following table sets forth the name of each of our directors and executive officers, their province or state and country of residence, their position(s) with the Company, their principal occupation during the preceding five years and the date they first became a director of the Company (if applicable) and the number of Common Shares held or controlled, directly or indirectly by such officer or director as of the date of this AIF.

Each director’s term will expire immediately prior to the next annual meeting of shareholders.

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Name and Residence	Position(s) with the Company	Principal Occupation During Past Five Years	Director Since	Number of Common Shares
Robert A. Quartermain(4) British Columbia, Canada	Executive Chairman and Director	Executive Chairman of the Company from January 2017 to present. Chairman and Chief Executive Officer of the Company from October 2010 to December 2016. President of the Company from October 2010 to May 2015.	October 22, 2010	2,638,153 Common Shares
Joseph J. Ovsenek British Columbia, Canada	Chief Executive Officer, President and Director	Chief Executive Officer of the Company from January 2017 to present. President of the Company from May 2015 to present. Executive Vice President and Chief Development Officer of the Company from March 2014 to May 2015. Vice President, Chief Development Officer of the Company from January 2011 to March 2014.	December 21, 2010	130,575 Common Shares
George N. Paspalas(3) (4) British Columbia, Canada	Lead Director	President and Chief Executive Officer of MAG Silver Corp.(5) from October 2013 to present. President and Chief Executive Officer of Aurizon Mines Ltd. from August 2011 to June 2013.	May 10, 2013	37,646 Common Shares
Peter M. Birkey(1) (2) Minnesota, USA	Director	Consultant since October 2013. Executive Vice President at Liberty Mutual Asset Management from June 2004 to October 2013.	May 14, 2014	94,978 Common Shares
David Smith(1) (3) British Columbia, Canada	Director	Corporate Director. Executive Vice President and Chief Financial Officer of Finning International Inc. from 2009 to 2014.	May 12, 2017	28,547 Common Shares

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Name and Residence	Position(s) with the Company	Principal Occupation During Past Five Years	Director Since	Number of Common Shares
Faheem Tejani(1) (2) (4) Ontario, Canada	Director	President of the Mortgage Company of Canada(6) from March 2018 until present. Managing Director, Equity Capital Markets of BMO Capital Markets from August 2009 to February 2018.	May 10, 2018	Nil Common Shares
Robin A. Bienenstock(2) (3) Ontario, Canada	Director	Founder and Investment Partner of RBMP Capital LLP from 2017 until present. Partner at Marlin Sams Fund LP from 2014 to 2016. Senior Research Analyst at Sanford C. Bernstein & Co., LLC, Research Division from 2007 until 2014.	November 8, 2018	165,988(7) Common Shares
Tom S.Q. YipBritish Columbia, Canada	Executive Vice President and Chief Financial Officer	Chief Financial Officer of the Company from January 2015 to present. Executive Vice President of the Company from January 2018 to present. Chief Financial Officer of International Tower Hill Mines Ltd. from September 2011 to December 2014.	N/A	55,000 Common Shares
Michelle A. Romero British Columbia, Canada	Executive Vice President, Corporate Affairs and Sustainability	Executive Vice President, Corporate and Sustainability of the Company from January 2018 to present. Vice President, Corporate of the Company from May 2015 to December 2017. Vice President, Corporate Relations of the Company from August 2013 to May 2015. Director, Corporate Relations of the Company from February 2011 to August 2013.	N/A	50,000 Common Shares

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Name and Residence	Position(s) with the Company	Principal Occupation During Past Five Years	Director Since	Number of Common Shares
Kenneth C. McNaughton British Columbia, Canada	Vice President, Chief Exploration Officer	Vice President, Chief Exploration Officer of the Company from January 2011 to present. President and Chief Executive Officer of Camino Minerals Corp. from January 2015 to August 2018.	N/A	300,500 Common Shares
Warwick Board British Columbia, Canada	Vice President, Geology and Chief Geologist	Vice President, Geology of the Company from January 2018 to present. Chief Geologist of the Company from July 2012 to present.	N/A	59 Common Shares
David W. Prins Santiago, Chile	Vice President, Operations	Vice President, Operations of the Company from May 2018 until present. Consultant for the Company in Project Director role from May 2016 to May 2018. Professional Consultant from July 2015 until April 2016. Chief Operating Officer of Seafield Resources Ltd. from September 2012 to March 2014 and President and Chief Executive Officer from March  to December 2014.	N/A	42,194 Common Shares
Vladimir Cvijetinovic British Columbia, Canada	Vice President, Legal and Corporate Secretary	Vice President, Legal and Corporate Secretary of the Company from July 2018 until present. Associate, Dumoulin Black LLP from April 2018 until June 2018. Associate, Blake, Cassels & Graydon LLP from June 2012 until March 2018.	N/A	Nil Common Shares

Notes:

(1) Member of the Audit Committee.

(2) Member of the Corporate Governance and Nominating Committee.

(3) Member of the Compensation Committee.

(4) Member of the Sustainability and Technical Committee.

(5) MAG Silver Corp. is a silver-mining exploration and development company with principal properties in Mexico.

(6) Mortgage Company of Canada is a private company operating as a mortgage lender.

(7) Ms. Bienenstock exercises control and direction over 161,700 Common Shares, which are owned by RBMP Master Fund Limited.

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Shareholdings of Directors and Senior Officers

As at the date of this AIF, our directors and executive officers, as a group, beneficially own, control or direct, directly or indirectly, 3,543,640 Common Shares representing approximately 1.92% of the issued and outstanding Common Shares and hold options, RSUs and PSUs, as applicable to acquire an additional 3,759,292 Common Shares, representing an aggregate of approximately 3.73% of the Common Shares on a fully-diluted basis.

Cease Trade Orders, Bankruptcies, Penalties or Sanctions

None of our directors or executive officers is, as at the date hereof, or was within 10 years before the date hereof, a director, chief executive officer or chief financial officer of any company (including the Company) that (a) was subject to a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period or more than 30 consecutive days (a “Cease Trade Order”) that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer of such company, or (b) was subject to a Cease Trade Order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

Except as disclosed herein, none of our directors or executive officers, nor, to our knowledge, any shareholder holding a sufficient number of our securities to affect materially the control of the Company (a) is, as at the date hereof, or has been within the 10 years before the date hereof, a director or executive officer of any company (including ours) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets, or (b) has, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of such director, executive officer or shareholder.

David Prins was the President and Chief Executive Officer and a director of Seafield Resources Ltd., a TSX Venture Exchange-listed company, from March to December of 2014. On September 9, 2014, a receiver of the company was appointed pursuant to an order of the Ontario Superior Court of Justice.

None of our directors or executive officers, nor, to our knowledge, any shareholder holding a sufficient number of our securities to affect materially the control of the Company, has been subject to (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority, or (b) any other penalties or sanctions imposed by a court or regulatory

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body that would likely be considered important to a reasonable investor in making an investment decision.

Conflicts of Interest

To the best of our knowledge, there are no known existing or potential conflicts of interest between the Company and any of our directors or officers as a result of such individual’s outside business interests at the date hereof. However, certain of our directors and officers are, or may become, directors or officers of other companies with businesses which may conflict with our business. Accordingly, conflicts of interest may arise which could influence these individuals in evaluating possible acquisitions or in generally acting on behalf of the Company. Pursuant to the BCBCA, directors are required to act honestly and in good faith with a view to the best interests of the Company. As required under the BCBCA and our Articles:

A director or executive officer who holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual’s duty or interest as a director or executive officer of the Company, must promptly disclose the nature and extent of that conflict.

A director who holds a disclosable interest (as that term is used in the BCBCA) in a contract or transaction into which the Company has entered or proposes to enter may generally not vote on any directors’ resolution to approve the contract or transaction.

Generally, as a matter of practice, directors or executive officers who have disclosed a material interest in any transaction or agreement that our Board is considering will not take part in any Board discussion respecting that contract or transaction. If on occasion such directors do participate in the discussions, they will abstain from voting on any matters relating to matters in which they have disclosed a material interest. In appropriate cases, we will establish a special committee of independent directors to review a matter in which directors, or management, may have a conflict.

AUDIT COMMITTEE INFORMATION

Under National Instrument 52-110 — Audit Committees (“NI 52-110”) companies are required to provide disclosure with respect to their Audit Committee including the text of the Audit Committee’s Charter, the composition of the Audit Committee and the fees paid to the external auditor.  The text of our Audit Committee’s Charter is attached as Appendix 1 to this AIF.

Our current Audit Committee is comprised of David Smith (Chair), Peter Birkey and Faheem Tejani. All committee members are independent and financially literate as such terms are defined in NI 52-110.

The education and experience of each Audit Committee member that is relevant to the performance of his responsibilities as a member of the Audit Committee are as follows:

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David Smith has over 30 years of financial and executive leadership experience.  Mr. Smith spent 16 years with Placer Dome in various senior positions and four years with PricewaterhouseCoopers before joining Ballard Power Systems Inc. in 2002.  Mr. Smith was the Chief Financial Officer and a Vice President at Ballard Power Systems until 2009.  In 2009, Mr. Smith joined Finning International Inc. and was their Executive Vice President and Chief Financial Officer until 2014.  Mr. Smith holds a Bachelor’s degree in Business Administration from California State University, Sacramento, is a Certified Public Accountant (California) and has completed the Institute of Corporate Directors, Directors Education Program (ICD.D).

Peter Birkey is an Investment Executive who has over 20 years of experience investing in the financial markets and advising both public and private companies. Mr. Birkey was an Executive Vice President for Liberty Mutual Asset Management responsible for all Strategy, Public Markets, Risk Management, Real Estate and Special Situations until October 2013.  Prior to this, he was a Senior Vice President for AmerUs Capital Management (now Aviva USA) and a Portfolio Manager for AEGON USA. Mr. Birkey earned an MBA in Finance and Marketing with the highest honors from the University of Chicago. He is also a Charted Financial Analyst and holds a Bachelor’s degree in Economics and Business Administration from Coe College.

Faheem Tejani has over 20 years of capital markets and financial industry experience. Mr. Tejani is currently the President of Mortgage Company of Canada, a Toronto, Ontario-based Mortgage Investment Corporation since March 2018. Prior to this, Mr. Tejani was associated with BMO Capital Markets since 2000, filling increasingly senior positions within the organization. From 2009 until 2018, he has served in BMO’s Equity Capital Markets Group, most recently as Managing Director. During the course of his career at BMO Capital Markets, Mr. Tejani has provided growth and financing strategies to corporations globally and has raised over $15 billion, including for companies within the mining industry in Canada. Before joining BMO Capital Markets, Mr. Tejani worked for one of the largest global accounting firms. Mr. Tejani is a Chartered Professional Accountant and holds a Bachelor of Arts degree from the University of Western Ontario.

Pre-approval Policy

The Audit Committee meets with our Chief Executive Officer and Chief Financial Officer as well as our independent auditors to review and inquire into matters affecting financial reporting, the system of internal accounting and financial controls and procedures and the audit procedures and audit plans.

The Audit Committee reviews and recommends to the Board for approval our interim and annual financial statements and certain other documents required by regulatory authorities. The Audit Committee also recommends to the Board the auditors to be appointed, subject to shareholder approval. In addition, the Audit Committee is responsible for, among other things, the pre-approval of any non-audit services to be provided to the Company or its subsidiary entities by the independent auditors and the fees for those services.

The chair of the Audit Committee is generally responsible for overseeing the Audit Committee in its responsibilities as outlined in the Audit Committee Charter. The chair’s duties and responsibilities include presiding at each meeting of the Audit Committee, referring specific matters to the Board in the case of a deadlock on any matter or vote, receiving and responding

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to all requests for information from the Company or the independent auditors, leading the Audit Committee in discharging its tasks and reporting to the Board on the activities of the Audit Committee.

External Auditor Service Fees

The aggregate fees billed by our external auditors in respect of the last two financial years are as follows:

	2018	2017
Audit Fees(1)	C$350,000	C$305,875
Audit-Related Fees(2)	C$67,000	C$110,000
Tax Fees(3)	—	—
All Other Fees	—	—

(1)Audits of the Company’s consolidated financial statements, consulting and accounting standards and transactions, issuance of consent in connection with Canadian and United States securities filings.

(2)Audit-related fees were paid for assurance and related services by the auditors that were reasonably related to the performance of the audit or review of the Company’s quarterly financial statements that are not included in Audit Fees.

(3)Tax compliance, taxation advice and tax planning.

LEGAL PROCEEDINGS AND REGULATORY ACTIONS

During the last financial year, we were not subject to any penalties or sanctions imposed by a court or a regulatory body in respect of securities legislation or regulatory requirements or any penalty or sanction that would likely to be considered important to a reasonable investor in making an investment decision. We have not entered into any settlement agreement in respect of securities legislation or regulatory requirements.

Class Action Lawsuits

Canadian Class Actions

On October 29, 2013, David Wong, a shareholder of the Company, filed a proposed class action (the “Wong Action”) against the Company, Robert Quartermain (a director, President and the Chief Executive Officer of the Company at that time) and Snowden. The Wong Action was filed in the Ontario Superior Court of Justice.

The Wong Action alleges that the price of the Company’s Common Shares on the TSX and NYSE suffered a significant drop in value following the announcement on October 9, 2013 of the resignation of Strathcona Mineral Services Ltd. (“Strathcona”), the consultant responsible for overseeing and reporting on the 10,000-tonne bulk sample, and the announcement of Strathcona’s reasons for resigning on October 22, 2013.

The Wong Action claims C$60,000,000 in general damages on behalf of a class of persons who acquired the Company’s securities between July 23, 2013 and October 21, 2013. Snowden is no longer a defendant in the Wong Action.

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The plaintiff in the Wong Action brought a motion for leave to commence an action under the secondary market provisions in Part XXIII.1 of the Securities Act (Ontario). The motion was heard on May 29 and 30, 2017. The Court allowed the plaintiff’s motion on July 20, 2017. The Company was denied leave to appeal this decision. The Company and Robert Quartermain consented to, and on January 23, 2019 the Court granted, an order certifying the Wong Action as a class proceeding pursuant to the Class Proceedings Act (Ontario).

The Company believes that the allegations made against it and Robert Quartermain in the Wong Action are meritless and will vigorously defend the matter, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for the Wong Action.

United States of America Class Actions (2013)

Between October 25, 2013 and November 18, 2013, five putative class action complaints were filed in the United States against the Company and certain of its officers and directors, alleging that such parties violated the United States securities laws by misrepresenting or failing to disclose material information concerning the Brucejack Mine. All five actions were filed in the United States District Court for the Southern District of New York (the “U.S. Court”).

In January 2014, the U.S. Court ordered that these actions be consolidated into a single action, styled In re Pretium Resources Inc. Securities Litigation, Case No. 13-CV-7552. The U.S. Court appointed as lead plaintiffs in the consolidated action three individuals who sued on behalf of a putative class of shareholders who purchased the Company’s Common Shares between June 11, 2013 and October 22, 2013.

In March 2014, the plaintiffs filed a consolidated amended class action complaint, which the Company moved to dismiss in May 2014. In July 2014, the plaintiffs filed a second consolidated amended class action complaint (“Second Amended Complaint”). The Company moved to dismiss the Second Amended Complaint on September 5, 2014. The plaintiffs filed their Opposition to the Company’s Motion to Dismiss on October 20, 2014 and the Company filed its reply brief on November 19, 2014.

In June 2017, the U.S. Court granted the Company’s Motion to Dismiss the Second Amended Complaint. The U.S. Court ruled in favour of the Company and the officers and directors named as defendants on all claims and ordered the case closed. The plaintiffs filed their Notice of Appeal from the decision, to the United States Court of Appeals for the Second Circuit (the “Second Circuit”), on July 10, 2017. The plaintiff’s opening brief on appeal was filed on October 2, 2017.  The Company filed its response brief on December 8, 2017 and the plaintiffs filed their reply brief on December 22, 2017. Oral argument on the plaintiff’s appeal was heard by the Second Circuit on March 16, 2018.

On May 1, 2018, the Second Circuit affirmed the U.S. Court’s order dismissing the plaintiffs’ Second Amended Complaint in its entirety for failure to state a claim under the United States securities laws. The deadline for the plaintiffs to file a petition for certiorari to the United States Supreme Court passed on July 30, 2018, without the plaintiffs seeking leave to appeal. As a result, the Second Circuit’s decision affirming the U.S. Court’s order dismissing the plaintiffs’ Second Amended Complaint is final for all purposes.

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United States of America Class Actions (2018)

Two putative class action complaints were filed against the Company and certain of its officers in the U.S. Court, one on September 7, 2018 and the other on October 19, 2018. The complaints have been filed on behalf of an alleged class of all persons and entities who purchased or acquired shares of the Company between July 21, 2016 and September 6, 2018, and relate to public disclosures of the Company made between such period regarding the Brucejack Mine. The Company has been served with one of the two complaints. Aurico Gold Fund LP has filed a motion to consolidate the two cases, appoint itself as lead plaintiff, and approve lead plaintiff’s selection of counsel. The Company has retained legal counsel in connection with these matters.

The Company believes that the allegations made against it and its officers in the aforementioned complaints are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for these complaints.

Construction Claims

On April 24, 2017, Bear Creek Contracting Ltd. (“Bear Creek”) filed a Notice of Civil Claim against the Company (the “Bear Creek Action”) alleging that the Company owes Bear Creek C$14,563,000 in general damages in connection with work undertaken at the Brucejack Mine transmission line. The Bear Creek Action was filed in the Supreme Court of British Columbia. The Company filed a Response to Civil Claim on July 31, 2017, opposing all of the claims and allegations made. Notices of Civil Claim have also been filed by Blue Max Drilling Inc. (April 24, 2017), More Core Diamond Drilling Services Ltd. (March 27, 2017) and Lakelse Air Ltd. (February 23, 2018) who were subcontractors working under Bear Creek. Responses to Civil Claim have been filed in those actions and the claims are understood to be subsumed in the amount claimed by Bear Creek. It is expected that the four actions will be joined.

The Company believes that the allegations made against it in the Bear Creek Action, and the other actions, are meritless and will vigorously defend the matter, although no assurance can be given with respect to the ultimate outcome of such proceedings. The Company has not accrued any amounts for any of the actions.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Other than disclosed elsewhere in this AIF, no director, executive officer or shareholder that beneficially owns, or controls or directs, directly or indirectly, more than 10% of the issued Common Shares, or any of their respective associates or affiliates, has any material interest, direct or indirect, in any transaction within the three most recent financial years preceding the date of this AIF or during the current financial year, which has materially affected or is reasonably expected to materially affect the Company.

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AUDITORS, TRANSFER AGENT AND REGISTRAR

Our auditors are PricewaterhouseCoopers LLP and are located at Suite 1400, 250 Howe Street, Vancouver, British Columbia, Canada V6C 3S7.

Our transfer agent and registrar for our Common Shares in Canada is Computershare Investor Services Inc., at its principal offices in Vancouver, British Columbia and Toronto, Ontario. Our transfer agent and registrar for our Common Shares in the United States is Computershare Trust Company, N.A, at its principal offices in Golden, Colorado.

MATERIAL CONTRACTS

Except for contracts entered into in the ordinary course of business, as of date of this AIF, the only material contracts which we have entered into are:

1.Offtake Agreement; and

2.Credit Agreement.

Copies of such agreements are available under our profile on SEDAR at www.sedar.com and their particulars are described in this AIF.

INTEREST OF EXPERTS

Each of the co-authors of Brucejack Report is a “qualified person” for the purposes of NI 43-101.  The scientific and technical information relating to the Brucejack Project contained or incorporated by reference in this AIF was certified by:

Disclosure	Co-Authors	Certified by:
Brucejack Report	Tetra Tech	Jianhui (John) Huang, Ph.D., P.Eng.
	Snowden Mining Industry Consultants Inc.	John Graindorge
	AMC Mining Consultants (Canada) Ltd.	John Morton Shannon, P. Geo.
	ERM Rescan	Harold Rolf Schmitt, P. Geo.
	BGC Engineering Inc.	Derek Kinakin, M.Sc., P.Geo. (BC, AB), P.G. (AK)
	Alpine Solutions Avalanche Services	Brian Gould, P.Eng.
	Valard Construction	Keith Sones

To the best of our knowledge, as at the date hereof, such persons and the directors, officers, partners, consultants and employees, as applicable, of each of the aforementioned companies and partnership beneficially own, directly or indirectly, in the aggregate, less than one percent of our securities.

The “Our Business” section of this AIF has been reviewed, approved and verified by Mr. Kenneth C. McNaughton, M.A.Sc., P.Eng., our Vice President and Chief Exploration Officer, Lyle Morgenthaler, B.A.Sc., P.Eng., our Chief Mine Engineer, Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist, Russell Pennell, B.A.Sc., P.Eng., former Senior Mine Planning Engineer of the Company, and Ivor W.O. Jones, M.Sc., P.Geo.,

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FAusIMM CP(geo) who is independent of the Company, each of whom is a “qualified person” as defined in NI 43-101.

None of the aforementioned companies, partnerships or persons, each of whom are named in this AIF as having prepared or certified reports, valuations, statements or opinions or having been responsible for reporting exploration results relating to our mineral properties and whose profession or business gives authority to such reports, valuations, statements or opinions or any director, officer, partner, consultant or employee thereof, as applicable, received or will receive a direct or indirect interest in any securities or other property of ours or of any of our associates or affiliates or is currently expected to be elected, appointed or employed as a director, officer or employee of the Company or of any of our associates or affiliates, other than:

·Kenneth C. McNaughton, M.A.Sc., P.Eng., who is our Vice President and Chief Exploration Officer, holds 300,500 Common Shares, 257,060 options to purchase Common Shares, 19,134 of our RSUs and 15,006 of our PSUs;

·Lyle Morgenthaler, P.Eng., B.A.Sc., P.Eng., our Chief Mine Engineer, holds nil Common Shares, 37,500 options to purchase Common Shares and 5,021 of our RSUs; and

·Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist, holds 59 Common Shares, 107,720 options to purchase Common Shares, 13,258 of our RSUs and 5,624 of our PSUs.

Russell Pennell, B.A.Sc., P.Eng., is a former Senior Mine Planning Engineer of the Company, and does not hold any Common Shares, options to purchase our Common Shares, RSUs or PSUs.

Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM CP(geo), who is independent of the Company does not hold any Common Shares, options to purchase our Common Shares, RSUs or PSUs.

Our independent auditors are PricewaterhouseCoopers LLP, Chartered Professional Accountants, who have issued an independent auditor’s report dated February 14, 2019 in respect of our consolidated financial statements as at December 31, 2018 and December 31, 2017 and for each of the years ended December 31, 2018 and December 31, 2017 and our internal control over financial reporting as at December 31, 2018.  PricewaterhouseCoopers LLP has advised that they are independent with respect to the Company within the meaning of Chartered Professional Accountants of British Columbia Code of Professional Conduct and the rules of the Public Company Accounting Oversight Board.

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ADDITIONAL INFORMATION

Additional information relating to the Company is available under the Company’s profile on SEDAR at www.sedar.com.

Additional information with respect to directors’ and officers’ remuneration and indebtedness, principal holders of our securities and securities authorized for issuance under equity compensation plans is contained in the management information circular for our most recent meeting of shareholders.  Additional financial information is provided in our audited consolidated financial statements and management’s discussion and analysis for the years ended December 31, 2018 and 2017, also filed on SEDAR.

Copies of these documents may be obtained by contacting us at Suite 2300, 1055 Dunsmuir Street, PO Box 49334, Vancouver, British Columbia V7X 1L4, telephone: (604) 558-1784, fax: (604) 558-4784.

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APPENDIX 1

PRETIUM RESOURCES INC.

AUDIT COMMITTEE CHARTER

As adopted by the Board of Directors on February 14, 2019

I.Purpose of Audit Committee of Pretium Resources Inc. (the “Company”)

The purpose of the Audit Committee (the “Committee”) is to:

1.Assist the Board of Directors of the Company (the “Board”) in fulfilling its oversight responsibilities relating to:

a.the quality and integrity of the Company’s financial statements, financial reporting process and systems of internal controls and disclosure controls regarding risk management, finance, accounting, and legal and regulatory compliance;

b.the independence and qualifications of the Company’s independent accountants and review of the audit efforts of the Company’s independent accountants; and

c.the development and implementation of policies and processes regarding corporate governance matters.

2.Provide an open avenue of communication between the independent accountants, the Company’s financial and senior management and the Board.

3.Prepare any reports required to be prepared by the Committee pursuant to the rules of any stock exchange on which the Company’s shares are listed and pursuant to the rules of any securities commission or other regulatory authority having jurisdiction, whether for inclusion in the Company’s annual proxy statement or otherwise.

The Committee will primarily fulfill these responsibilities by carrying out the activities enumerated in Section VII below of this Charter.

While the Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Committee to plan or conduct audits, or to determine that the Company’s financial statements are complete and accurate or are in accordance with generally accepted accounting principles, accounting standards, or applicable laws and regulations. This is the responsibility of management of the Company and the Company’s independent accountants, as well as any advisors employed by the Committee. Because the primary function of the Committee is oversight, the Committee shall be entitled to rely on the expertise, skills and knowledge of management and the Company’s independent accountants and the integrity and accuracy of information provided to the Committee by such persons in carrying out its oversight responsibilities. Nothing in this Charter is intended to change the responsibilities of management and the independent accountants.

II.Composition

The Committee shall be composed of at least three directors, each of whom the Board has determined has no material relationship with the Company which could, in the view of the Board, be reasonably expected to interfere with the exercise of such director’s independent judgement, and who otherwise satisfies the definition of “independent” as set forth by National Instrument 52-110 — Audit Committees (“NI 52-110”) and any other applicable securities laws, rules or requirements of any stock exchange upon which the Company’s securities are listed as in effect from time to time.

All members of the Committee must be financially literate, meaning that he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements.  A director who is not financially literate may be appointed to the committee provided that such director becomes financially literate within a reasonable period of time following such appointment.

If any member of the Committee ceases to be “independent”, as defined by the applicable securities laws and exchange requirements, including NI 52-110, for reasons outside that member’s reasonable control, that person may remain an audit committee member until the earlier of the next annual meeting of the shareholders or the date that is six months from the occurrence of the event that caused the member to no longer be independent.

III.Authority

The Committee shall have the authority to (i) retain (at the Company’s expense) its own legal counsel, accountants and other advisors that the Committee believes, in its sole discretion, are needed to carry out its duties and responsibilities; (ii) conduct investigations that it believes, in its sole discretion, are necessary to carry out its responsibilities; and (iii) take whatever actions that it deems appropriate to foster an internal culture that is committed to maintaining quality financial reporting, sound business risk practices and ethical behaviour within the Company. In addition, the Committee shall have the authority to request any officer, director, employee or consultant of the Company, the Company’s outside legal counsel and the independent accountants to meet with the Committee and any of its advisors and to respond to their inquiries. The Committee shall have full access to the books, records and facilities of the Company in carrying out its responsibilities. Finally, the Board shall adopt resolutions which provide for appropriate funding, as determined by the Committee, for (i) services provided by the independent accountants in rendering or issuing an audit report, (ii) services provided by any adviser employed by the Committee which it believes, in its sole discretion, are needed to carry out its duties and responsibilities, or (iii) ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties and responsibilities.

The Committee shall be responsible for establishing procedures for (i) the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters and (ii) the confidential, anonymous submissions by employees of the Company regarding questionable accounting or auditing matters.

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The Committee shall review the reports of the Chief Executive Officer and Chief Financial Officer (in connection with their required certifications for the Company’s filings with the Securities and Exchange Commission) regarding any significant deficiencies or material weaknesses in the design of operation of internal controls and any fraud that involves management or other employees of the Company who have a significant role in managing or implementing the Company’s internal controls. During this review, the Committee should evaluate whether the internal control structure, as created and as implemented, provides reasonable assurances that transactions are recorded as necessary to permit the Company’s external auditors to reconcile the Company’s financial statements in accordance with applicable securities laws.

The Committee, in its capacity as a committee of the Board, is directly responsible for the appointment, compensation, retention and oversight of the work of the independent accountants engaged (including resolution of disagreements between the Company’s management and the independent accountants regarding financial reporting) for the purpose of preparing and issuing an audit report or performing other audit, review or attest services for the Company.

The independent accountants shall submit to the Audit Committee annually a formal written statement delineating all relationships between the independent accountants and the Company and its subsidiaries, addressing the non-audit services provided to the Company or its subsidiaries and the matters set forth in or required by the rules and regulations of all relevant regulatory authorities.

The independent accountants shall submit to the Audit Committee annually a formal written statement of the fees billed for each of the following categories of services rendered by the independent accountants: (i) the audit of the Company’s annual financial statements for the most recent fiscal year and any reviews of the financial statements; (ii) information technology consulting services for the most recent fiscal year, in the aggregate and by each service (and separately identifying fees for such services relating to financial information systems design and implementation); and (iii) all other services rendered by the independent accountants for the most recent fiscal years, in the aggregate and by each service.

IV.Appointing Members

The members of the Committee shall be appointed or re-appointed by the Board on an annual basis. Each member of the Committee shall continue to be a member thereof until such member’s successor is appointed, unless such member shall resign or be removed by the Board or such member shall cease to be a director of the Company. Where a vacancy occurs at any time in the membership of the Committee, it may be filled by the Board and shall be filled by the Board if the membership of the Committee is less than three directors as a result of the vacancy or the Committee no longer has a member who is an “audit committee financial expert” as a result of the vacancy.

V.Chairperson

The Board, or in the event of its failure to do so, the members of the Committee, must appoint a Chairperson from the members of the Committee. If the Chairperson of the Committee is not

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present at any meeting of the Committee, an acting Chairperson for the meeting shall be chosen by majority vote of the Committee from among the members present. In the case of a deadlock on any matter or vote, the Chairperson shall refer the matter to the Board. All requests for information from the Company or the independent accountants shall be made through the Chairperson.

VI.Meetings

The time and place of meetings of the Committee and the procedure at such meetings shall be determined from time to time by the members thereof provided that:

1.A quorum for meetings shall be two members, present in person or by telephone or other telecommunication device that permit all persons participating in the meeting to speak and hear each other;

2.The Committee shall meet at least quarterly (or more frequently as circumstances dictate); and

3.Notice of the time and place of every meeting shall be given in writing or facsimile communication to each member of the Committee and the external auditors of the Company at least 48 hours prior to the time of such meeting.

While the Committee is expected to communicate regularly with management, the Committee shall exercise a high degree of independence in establishing its meeting agenda and in carrying out its responsibilities. The Committee shall submit the minutes of all meetings of the Committee to, or discuss the matters discussed at each Committee meeting with, the Board.

VII.Specific Duties

In meeting its responsibilities, the Committee is expected to:

1.Select and recommend to the Board the independent accountants for the Company, considering independence and effectiveness, approve all audit services in advance of the provision of such services and the fees and other compensation to be paid to the independent accountants, and oversee the services rendered by the independent accountants (including the resolution of disagreements between management and the independent accountants regarding financial reporting) for the purpose of preparing or issuing an audit report or preforming other audit, review and attest services for the Company or related work, and the independent accountants shall report directly to the Committee;

2.To pre-approve any non-audit services to be provided to the Company or its subsidiary entities by the independent accountants and the fees for those services;

3.Review the performance of the independent accountants, including the lead partner of the independent accountants, and, in its sole discretion, approve any proposed discharge of the independent accountants when circumstances warrant, and appoint any new independent accountants;

4

4.Periodically review and discuss with the independent accountants all significant relationships the independent accountants have with the Company to determine the independence of the independent accountants, including a review of service fees for audit and non-audit services;

5.Review and approve the Company’s hiring policies from time to time regarding partners, employees and former partners and employees of the present and former independent accountants of the Company;

6.Inquire of management and the independent accountants and evaluate the effectiveness of the Company’s process for assessing significant risks or exposures over financial reporting and disclosure and the steps management has taken to monitor, control and minimize such risks to the Company. Obtain annually, in writing, the letters of the independent accountants as to the adequacy of such controls, any significant findings and management’s response thereto;

7.Consider, in consultation with the independent accountants, the audit scope and plan of the independent accountants;

8.Review with the independent accountants the coordination of audit effort to assure completeness of coverage, and the effective use of audit resources;

9.Consider and review with the independent accountants, out of the presence of management:

a.the adequacy of the Company’s internal controls and disclosure controls including the adequacy of computerized information systems and security;

b.the truthfulness and accuracy of the Company’s financial statements; and

c.any related significant findings and recommendations of the independent accountants together with management’s responses thereto;

10.Following completion of the annual audit, review with management and the independent accountants:

a.the Company’s annual financial statements and related footnotes;

b.the independent accountants’ audit of the financial statements and the report thereon;

c.any significant changes required in the independent accountants’ audit plan; and

d.other matters related to the conduct of the audit which are to be communicated to the committee under generally accepted auditing standards;

11.Following completion of the annual audit, review separately with each of management and the independent accountants any significant difficulties encountered during the

5

course of the audit, including any restrictions on the scope of work or access to required information;

12.Establish regular and separate systems of reporting to the Committee by each of management and the independent accountants regarding any significant judgments made in management’s preparation of the financial statements and the view of each as to appropriateness of such judgments;

13.In consultation with the independent accountants, review any significant disagreement among management and the independent accountants in connection with the preparation of the financial statements, including management’s responses;

14.Review, prior to publication, all filings with regulatory authorities and any other publicly disclosed information containing, extracted or derived from, the Company’s financial statements, including Management’s Discussion & Analysis, any certification, report, opinion or review rendered by the independent accountants, any press releases announcing earnings (especially the use of “pro forma” or “adjusted” information not prepared in compliance with generally accepted accounting principles) and all financial information and earnings guidance (including any forecast of all-in sustaining or other costs, but excluding any forward looking metal(s) production guidance) intended to be provided to analysts and the public or to rating agencies, and consider whether the information contained in these documents is consistent with the information contained in the financial statements, and otherwise satisfy itself that adequate procedures are in place for the review of the Company’s public disclosure of financial information extracted or derived from the Company’s financial statements and periodically assess the adequacy of those procedures;

15.Facilitate the preparation and inclusion of any report from the Committee or other disclosures as required by applicable laws and regulations in the Company’s annual proxy statement or other filings of all regulatory authorities having jurisdiction;

16.Review with management the adequacy of the insurance and fidelity bond coverages, reported contingent liabilities, and management’s assessment of contingency planning;

17.Review management’s plans regarding any changes in accounting practices or policies and the financial impact of such changes, any major areas in management’s judgment that have a significant effect upon the financial statements of the Company, and any litigation or claim, including tax assessments, that could have a material effect upon the financial position or operating results of the Company;

18.Review with management and the independent accountants each annual, quarterly and other periodic report prior to its filing with the relevant regulators or prior to the release of earnings;

19.Review policies and procedures with respect to officers’ expense accounts and perquisites, including their use of corporate assets, and consider the results of any review of these areas by the independent accountants;

6

20.Review, with the Company’s counsel, any legal, tax or regulatory matter that may have a material impact on the Company’s financial statements, operations, related Company compliance policies, and programs and reports received from regulators;

21.When requested by the Board, evaluate and review with management the Company’s guidelines and policies governing the process of risk assessment and risk management;

22.Meet with the independent accountants and management in separate executive sessions to discuss any matters that the Committee or these groups believe should be discussed privately with the Committee;

23.Maintain, review and update the procedures for (i) the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and (ii) the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters, as set forth in Annex A attached to this Charter; and

24.Generally, to:

a.prepare any report as may be required under applicable securities law, stock exchange and any other regulatory requirements;

b.review, assess and update this Charter on an annual basis and recommend any proposed changes to the Board for approval, in accordance with the requirements of the all applicable laws;

c.perform any other activities consistent with this Charter, the Company’s articles and governing law, as the Audit Committee or the Board deems necessary or appropriate;

d.review the Committees own performance annually; and

e.regularly report Committee actions to the Board with such recommendations as the Committee may deem appropriate.

7

ANNEX A

PROCEDURES FOR THE SUBMISSION OF
COMPLAINTS AND CONCERNS REGARDING
ACCOUNTING, INTERNAL ACCOUNTING CONTROLS OR
AUDITING MATTERS

1.Pretium Resources Inc. (the “Company”) has designated its Audit Committee of its Board of Directors (the “Committee”) to be responsible for administering these procedures for the receipt, retention, and treatment of complaints received by the Company or the Committee directly regarding accounting, internal accounting controls, or auditing matters.

2.Any employee or consultant of the Company may on a confidential and anonymous basis submit concerns regarding questionable accounting controls or auditing matters to the Committee by setting forth such concerns in a letter addressed directly to the Committee with a legend on the envelope such as “Confidential” or “To be opened by Committee only”. If an employee or consultant would like to discuss the matter directly with a member of the Committee, the employee or consultant should include a return telephone number in his or her submission to the Committee at which he or she can be contacted. All submissions by letter to the Committee can be sent to:

Pretium Resources Inc.
c/o Audit Committee
Attn:  Audit Committee Chair
David Smith

3.Any complaints received by the Company that are submitted as set forth herein will be forwarded directly to the Committee and will be treated as confidential if so indicated.

4.At each meeting of the Committee, or any special meetings called by the Chairperson of the Committee, the members of the Committee will review and consider any complaints or concerns submitted by employees as set forth herein and take any action it deems necessary in order to respond thereto.

5.All complaints and concerns submitted as set forth herein will be retained by the Committee for a period of seven (7) years.

APPENDIX B

FINANCIAL STATEMENTS OF PRETIUM RESOURCES INC., INCLUDING MANAGEMENT’S REPORT TO SHAREHOLDERS AND THE AUDITORS’ REPORTS

PRETIUM RESOURCES INC.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

(Expressed in thousands of United States Dollars)

Suite 2300, Four Bentall Centre

1055 Dunsmuir Street, PO Box 49334
Vancouver, BC V7X 1L4

Phone: 604-558-1784
Email: invest@pretivm.com

Management’s Responsibility for Financial Reporting

The accompanying consolidated financial statements of the Company have been prepared by management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and within the framework of the summary of significant accounting policies in these consolidated financial statements.

A system of internal accounting control is maintained in order to provide reasonable assurance that assets are safeguarded and that transactions are properly recorded and executed in accordance with management’s authorization. This system includes established policies and procedures, the selection and training of qualified personnel and an organization providing for appropriate delegation of authority and segregation of responsibilities.

The Audit Committee of the Board of Directors meets periodically with management and the Company’s independent auditors to review the scope and results of their annual audit and to review the consolidated financial statements and related financial reporting matters prior to submitting the consolidated financial statements to the Board of Directors for approval.

The consolidated financial statements have been audited by PricewaterhouseCoopers LLP on behalf of the shareholders and their report follows.

“Joseph J. Ovsenek”	“Tom S. Q. Yip”
Joseph J. Ovsenek	Tom S. Q. Yip
President and Chief Executive Officer	Executive Vice President and Chief Financial Officer

February 14, 2019

1

Management’s Report on Internal Control over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting under Rule 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934. The Securities Exchange Act of 1934 defines this as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and includes those policies and procedures that:

·Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

·Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

·Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that may have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework (2013).

Based upon our assessment and those criteria, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2018.

PricewaterhouseCoopers LLP, our independent auditors, has issued an audit report on internal control over financial reporting for the Company as of December 31, 2018, which is included herein.

“Joseph J. Ovsenek”	“Tom S. Q. Yip”
Joseph J. Ovsenek	Tom S. Q. Yip
President and Chief Executive Officer	Executive Vice President and Chief Financial Officer

February 14, 2019

2

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Pretium Resources Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated statements of financial position of Pretium Resources Inc. and its subsidiaries, (together, the Company) as of December 31, 2018 and 2017, and the related consolidated statements of earnings (loss) and comprehensive earnings (loss), cash flows and changes in equity for the years then ended, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and their financial performance and their cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control — Integrated Framework (2013) issued by the COSO.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for financial instruments in 2018.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

3

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Chartered Professional Accountants

Vancouver, Canada

February 14, 2019

4

PRETIUM RESOURCES INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in thousands of United States dollars)

		December 31,			December 31,
	Note	2018			2017
ASSETS
Current assets
Cash and cash equivalents		$	45,407		$	56,285
Receivables and other	6	18,312			19,551
Inventories	7	24,751			25,673
		88,470			101,509
Non-current assets
Mineral properties, plant and equipment	8	1,522,919			1,564,860
Other assets	10	—			132
Restricted cash	12	2,029			5,036
Total assets		$	1,613,418		$	1,671,537
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	9	$	50,672		$	60,438
Current portion of long-term debt	10	85,961			374,966
Income taxes payable	21	—			379
Flow-through share premium		—			135
		136,633			435,918
Non-current liabilities
Other liabilities	9	1,072			511
Long-term debt	10	456,254			293,029
Convertible notes	11	82,150			76,582
Decommissioning and restoration provision	12	18,947			18,436
Deferred income tax liability	21	15,236			—
		710,292			824,476
EQUITY
Share capital	17	1,140,890			1,125,932
Contributed surplus	17	48,886			49,942
Equity component of convertible notes	11	17,603			17,603
Accumulated other comprehensive loss		(193,997		)	(193,772		)
Deficit		(110,256		)	(152,644		)
		903,126			847,061
Total liabilities and equity		$	1,613,418		$	1,671,537
Commitments	22
Contingencies	23

On behalf of the Board of Directors:

“David S. Smith”	“George N. Paspalas”
David S. Smith	George N. Paspalas
(Chair of the Audit Committee)	(Director)

The accompanying notes are an integral part of these consolidated financial statements.

5

PRETIUM RESOURCES INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS)

(Expressed in thousands of United States dollars, except for share data)

		For the year ended
		December 31,			December 31,
	Note	2018			2017
Revenue	13	$	454,556		$	177,933
Cost of sales	14	303,927			125,080
Earnings from mine operations		150,629			52,853
Corporate administrative costs	15	15,788			18,816
Operating earnings		134,841			34,037
Interest and finance expense	16	(66,926		)	(30,655		)
Interest and finance income		2,728			527
Foreign exchange gain (loss)		(46		)	667
Loss on financial instruments at fair value	10	(17,113		)	(26,430		)
Earnings (loss) before taxes		53,484			(21,854		)
Current income tax expense	21	(4,196		)	(1,621		)
Deferred income tax (expense) recovery	21	(12,668		)	7,022
Net earnings (loss) for the year		$	36,620		$	(16,453	)
Other comprehensive earnings (loss), net of tax
Items that will not be reclassified to earnings or loss:
Change in fair value attributable to change in credit risk of financial instruments designated at fair value through profit or loss	10	5,543			—
Comprehensive earnings (loss) for the year		$	42,163		$	(16,453	)
Earnings (loss) per common share
Basic		$	0.20		$	(0.09	)
Diluted	17f	$	0.20		$	(0.09	)
Weighted average number of common shares outstanding
Basic		182,905,004			181,208,295
Diluted	17f	183,881,917			181,208,295

The accompanying notes are an integral part of these consolidated financial statements.

6

PRETIUM RESOURCES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of United States dollars)

		For the year ended
		December 31,			December 31,
	Note	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss) for the year		$	36,620		$	(16,453	)
Items not affecting cash:
Current income tax expense	21	4,196			1,621
Deferred income tax expense (recovery)	21	12,668			(7,022		)
Depreciation and depletion		67,466			25,518
Interest and finance expense, net		63,686			29,970
Loss on financial instruments at fair value	10	17,113			26,430
Settlement of offtake obligation	10	(4,423		)	(1,543		)
Share-based compensation	17	6,472			5,673
Unrealized foreign exchange loss (gain)		457			(2,823		)
Changes in non-cash working capital items:
Receivables and other		1,389			(8,815		)
Inventories		1,047			(12,573		)
Accounts payable and accrued liabilities		(4,872		)	34,580
Income taxes paid		(4,575		)	(1,242		)
Net cash generated by operating activities		197,244			73,321
CASH FLOWS FROM FINANCING ACTIVITIES
Common shares issued	17	2,304			3,891
Finance lease payments		(402		)	—
Proceeds from convertible notes, net	11	—			95,795
Proceeds from credit facility, net	10	—			97,000
Proceeds from exercise of stock options		8,353			13,894
Proceeds from loan facility	10	480,000			—
Repayment of credit facility	10	(350,000		)	—
Repurchase of stream obligation	10	(237,000		)	—
Share issue costs		(31		)	(225		)
Transaction costs associated with loan facility	10	(7,616		)	—
Interest paid		(75,006		)	(1,319		)
Net cash generated by (used in) financing activities		(179,398		)	209,036
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures on mineral properties, plant and equipment	8	(32,892		)	(375,408		)
Restricted cash		2,830			4,380
Interest received		2,728			527
Net cash used in investing activities		(27,334		)	(370,501		)
Decrease in cash and cash equivalents for the year		(9,488		)	(88,144		)
Cash and cash equivalents, beginning of the year		56,285			141,791
Effect of foreign exchange rate changes on cash and cash equivalents		(1,390		)	2,638
Cash and cash equivalents, end of the year		$	45,407		$	56,285
Supplemental cash flow information	19

The accompanying notes are an integral part of these consolidated financial statements

7

PRETIUM RESOURCES INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of United States dollars, except for share data)

	Note	Number of common shares	Share capital			Contributed surplus			Equity component of convertible notes		Accumulated other comprehensive loss			Deficit			Total
Balance - December 31, 2016		180,113,252	$	1,101,428		$	53,072		$	—	$	(193,772	)	$	(136,191	)	$	824,537
Shares issued upon exercise of options	17	1,822,025	20,757			(6,863		)	—		—			—			13,894
Shares issued under flow- through agreement	17	329,000	3,182			—			—		—			—			3,182
Share issue costs, net of taxes	17	—	(167		)	—			—		—			—			(167		)
Value assigned to options vested	17	—	—			3,733			—		—			—			3,733
Shares issued upon settlement of restricted share units	17	73,597	731			—			—		—			—			731
Equity component of convertible notes, net of taxes	11	—	—			—			17,603		—			—			17,603
Loss for the year		—	—			—			—		—			(16,453		)	(16,453		)
Balance - December 31, 2017		182,337,874	$	1,125,932		$	49,942		$	17,603	$	(193,772	)	$	(152,644	)	$	847,061
Adjustment on adoption of IFRS 9, net of tax	2	—	—			—			—		(5,768		)	5,768			—
Adjusted balance - January 1, 2018		182,337,874	$	1,125,932		$	49,942		$	17,603	$	(199,540	)	$	(146,876	)	$	847,061
Shares issued upon exercise of options	17	1,576,500	12,911			(4,558		)	—		—			—			8,353
Shares issued under flow- through agreement	17	227,273	1,913			—			—		—			—			1,913
Share issue costs, net of taxes	17	—	(23		)	—			—		—			—			(23		)
Value assigned to options vested	17	—	—			3,502			—		—			—			3,502
Shares issued upon settlement of restricted share units	17	21,444	157			—			—		—			—			157
Other comprehensive earnings for the year		—	—			—			—		5,543			—			5,543
Earnings for the year		—	—			—			—		—			36,620			36,620
Balance - December 31, 2018		184,163,091	$	1,140,890		$	48,886		$	17,603	$	(193,997	)	$	(110,256	)	$	903,126

The accompanying notes are an integral part of these consolidated financial statements.

8

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

1.NATURE OF OPERATIONS

Pretium Resources Inc. (the “Company”) was incorporated under the laws of the Province of British Columbia, Canada on October 22, 2010. The address of the Company’s registered office is Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street, PO Box 49334, Vancouver, BC, V7X 1L4.

The Company was formed for the acquisition, exploration, development and operation of precious metal resource properties in the Americas. The Company’s primary asset is its wholly-owned underground Brucejack Mine located in northwestern British Columbia.

2.BASIS OF PREPARATION

Statement of compliance and basis of presentation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair value.

These consolidated financial statements were authorized for issue by the Board of Directors on February 14, 2019.

Change in accounting policies — IFRS 9, Financial Instruments

The Company has adopted IFRS 9 effective January 1, 2018. IFRS 9 replaces the provisions of IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”) that relate to the recognition, classification and measurement of financial assets and financial liabilities, de-recognition of financial instruments, impairment of financial assets and hedge accounting.

Classification of financial assets and financial liabilities

IFRS 9 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or FVTPL. The classification of financial assets under IFRS 9 is generally based on the business model in which the financial asset is managed and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available for sale. The Company did not have any items classified as held to maturity or available for sale. Items classified as loans and receivables were recorded under IFRS 9 at amortized cost. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the financial instrument as a whole is assessed for classification.

IFRS 9 retains the existing requirements in IAS 39 for the classification of financial liabilities. Under IAS 39, all fair value changes on liabilities designated under the fair value option were recognized in earnings (loss). Under IFRS 9, those fair value changes are generally presented as follows: (i) the amount that is attributable to changes in the credit risk of the liabilities is presented in other comprehensive income (loss) (“OCI”) and (ii) the remaining amount of change in the fair value is presented in earnings (loss).

9

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

2.BASIS OF PREPARATION (Cont’d)

Impairment of financial assets

IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss (“ECL”) model which is based on forward looking changes in credit quality since initial recognition. The ECL model requires judgment as to how changes in economic factors affect ECLs, which are determined on a probability-weighted basis.

The new impairment model applies to financial assets measured at amortized cost and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlier than under IAS 39.

Transition to IFRS 9

In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated. On adoption of IFRS 9, there were no differences in the carrying amounts of the Company’s financial assets and financial liabilities. There was a presentation change related to changes in fair value of the Company’s stream obligation which resulted in a reclassification of $7,901 ($5,768 net of deferred tax) from deficit to accumulated other comprehensive earnings (loss) (“AOCI”) at January 1, 2018.

IFRS 9 requires the gain or loss associated with changes in the fair value of the stream obligation to be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

To determine the cumulative impact of changes in the credit risk of the liability upon the adoption of IFRS 9, the Company compared the fair value of the pre-payable financial liability, excluding the gold and silver embedded derivatives, with a comparable value derived by substituting the current credit risk assumption with that used by the Company in determining the fair value of the stream obligation at inception.

As a result of an overall reduction in the Company’s credit risk since inception, the Company reclassified $7,901 ($5,768 net of deferred tax) from deficit to AOCI at January 1, 2018. As the stream obligation was repaid pursuant to its contractual terms (including the prepayment options), the remaining balance in AOCI of $307 ($225 net of deferred tax) will not reverse.

10

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

2.BASIS OF PREPARATION (Cont’d)

The following table shows the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at January 1, 2018.

	2017 classification under IAS 39	2018 classification under IFRS 9	2017 carrying amount under IAS 39		2018 carrying amount under IFRS 9
Financial assets
Cash and cash equivalents	Loans and receivables	Amortized cost	$	56,285	$	56,285
Trade receivables	Loans and receivables with embedded derivatives	FVTPL	11,067		11,067
Other assets	FVTPL	FVTPL	132		132
Restricted cash	Loans and receivables	Amortized cost	5,036		5,036
Financial liabilities
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities	$	53,436	$	53,436
Restricted share unit liability	FVTPL	FVTPL	2,730		2,730
Senior secured term credit facility	Other financial liabilities	Other financial liabilities	365,890		365,890
Offtake obligation	FVTPL	FVTPL	78,085		78,085
Stream obligation	FVTPL	FVTPL (1)	224,020		224,020
Debt portion of convertible note	Other financial liabilities	Other financial liabilities	76,582		76,582

(1)The fair value changes associated with the stream obligation attributable to the changes in the credit risk is presented in OCI and the remaining amount of the change in the fair value is presented in earnings (loss).

3.SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

These consolidated financial statements include the financial statements of the Company and the entities controlled by the Company, its subsidiaries, listed in the following table:

Name of subsidiary	Place of incorporation	Proportion of ownership interest	Principal activity
Pretium Exploration Inc.	British Columbia, Canada	100%	Holds interest in the Brucejack Mine and Snowfield Project
0890696 BC Ltd.	British Columbia, Canada	100%	Holds real estate in Stewart, British Columbia

Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

11

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company and its subsidiaries is the United States dollar (“USD”), which is also the Company’s presentation currency. References to “$” or “USD” are to United States dollars, while references to “C$” or “CAD” are to Canadian dollars.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in earnings (loss) for the year.

Financial instruments

The following accounting policies reflect the Company’s adoption of IFRS 9 effective January 1, 2018. For the year ended December 31, 2017, the Company applied policies based on IAS 39. The effects of the transition from IAS 39 to IFRS 9 are described in the change in accounting policies section of note 2.

Financial assets — Classification

Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or FVOCI. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in earnings (loss) or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Financial assets — Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in earnings (loss).

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

12

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

·Amortized cost — Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method.

·FVOCI — Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses.

·FVTPL — Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of earnings (loss) within other gains (losses) in the period in which it arises.

Changes in the fair value of financial assets at FVTPL are recognized in loss on financial instruments at fair value in the statement of earnings (loss) as applicable.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk.

Cash and cash equivalents and restricted cash

Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Restricted cash is held at major financial institutions as collateral for reclamation and surety bonds. Cash and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method.

Receivables and other

The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue.

13

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Accounts payable and accrued liabilities and debt

Accounts payable and accrued liabilities, the debt portion of the convertible notes, the senior secured term credit facility and the senior secured loan facility are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method.

Derivatives

Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts, such as the offtake obligation and stream obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative.

Stream obligation

The Company has determined the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to classify and measure the entire hybrid stream obligation as a financial liability carried at fair value with changes in fair value recorded through earnings (loss). IFRS 9 requires the gain or loss associated with changes in the fair value of the stream be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

Inventories

Ore stockpiles, in-circuit and finished metal inventory (gold and silver) are valued at the lower of weighted average production cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form and estimated costs to sell.

Ore stockpile inventory represents ore on the surface or underground that has been extracted from the mine and is available for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being converted into a saleable form. Finished metal inventory represents gold and silver doré and concentrate located at the mine, in transit to customers and at refineries.

Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Replacement costs of materials and spare parts are generally used as the best estimate of net realizable value.

Any write-downs of inventory to net realizable value are recorded within cost of sales in the consolidated statements of earnings (loss). If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable value are reversed up to cost to the extent that the related inventory has not been sold.

14

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Mineral properties

Mineral properties include the fair value attributable to mineral reserves and resources acquired in a business combination or asset acquisition, underground mine development costs and previously capitalized exploration and evaluation costs. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using gold ounces mined over the estimated recoverable proven and probable reserves at the mine.

Development costs incurred during production

The Company incurs development costs to build new raises and ramps (vertical development) that enable the Company to physically access ore underground. The time over which these costs will be incurred depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific areas of the mine and which only provide an economic benefit over a specific the period of mining are depleted using a unit-of-production method determined using gold ounces mined over the estimated proven and probable reserves in that particular area of the mine.

Plant and equipment

Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset. The purchase price or construction cost is the fair value of consideration given to acquire the asset.

Depreciation of plant and equipment commences when the asset has been fully commissioned and is available for its intended use.

A majority of mine and site infrastructure assets, including buildings, roads and transmission lines are depreciated using a unit-of-production method over the life of mine. Depreciation is determined each period using gold ounces mined over the estimated proven and probable reserves of the mine.

Depreciation of other assets, including those ancillary to the Brucejack Mine are calculated using the straight-line method to allocate cost over the estimated useful lives, as follows:

Asset class	Estimated useful life
Mine and mill equipment	5 – 18 years
Light vehicles	3 – 5 years
Office and computer equipment	3 – 5 years
Leasehold improvements	Term of lease

When significant components of an asset have different useful lives, depreciation is calculated on each separate component. Each asset or component’s estimated useful life has due regard to both its own physical life limitations and the present assessment of economically recoverable reserves of the Brucejack Mine.

Depreciation methods and estimated useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively.

15

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Expenditures on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associated with the item will be available to the Company, the expenditure is capitalized and the carrying amount of the item replaced is derecognized. Similarly, overhaul costs associated with major maintenance are capitalized and depreciated over their useful lives where it is probable that the future economic benefits will be available and any remaining carrying amounts of the cost of previous overhauls are derecognized. All other costs are expensed as incurred.

An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of earnings (loss).

Construction in progress

Costs recorded for assets under construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of mineral properties, plant and equipment. No depreciation is recorded until the assets are substantially complete and available for their intended use.

Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to prepare for its intended use are capitalized as part of the cost of the asset. Capitalization of borrowing costs begins when there are borrowings and activities commence to prepare an asset for its intended use. Capitalization of borrowing costs ends when substantially all activity necessary to prepare a qualifying asset for its intended use are complete. When proceeds of project specific borrowings are invested on a temporary basis, borrowing costs are capitalized net of any investment income.

Exploration and evaluation expenditures

Exploration and evaluation expenditures include the costs of acquiring licenses and costs associated with exploration and evaluation activity. Exploration and evaluation expenditures are capitalized. Mineral property acquisition costs are capitalized. Exploration and evaluation costs incurred before the Company has obtained the legal rights to explore an area are expensed.

Once the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, expenditures are reclassified to mineral properties within mineral properties, plant and equipment.

The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including:

·The extent to which mineral reserves or mineral resources as defined in National Instrument 43-101 have been identified through a feasibility study or similar document;

·The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study;

·The status of environmental permits; and

·The status of mining leases or permits.

16

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Exploration and evaluation assets are tested for impairment immediately prior to reclassification to mineral properties.

Mineral exploration tax credits

Mineral exploration tax credits on eligible mineral exploration expenditures incurred are treated as a reduction of capitalized mineral properties. The credits are recorded when the amount is reliably measurable and it is considered probable that the tax credit will be recovered.

Mineral recoveries

The incidental proceeds from the sale of gold recovered from activities conducted during the exploration and evaluation stage are offset against the carrying value of the associated mineral properties, plant and equipment.

Impairment of non-financial assets

The carrying amounts of assets included in mineral properties, plant and equipment are reviewed for impairment whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit to which the asset belongs is determined. The recoverable amount of an asset or cash generating unit is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s carrying amount exceeds the recoverable amount, and is recorded as an expense immediately.

Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted.

Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Estimated future cash flows are calculated using estimated future prices, mineral reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate.

Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately.

Decommissioning and restoration provision

The Company has provisions for decommissioning and restoration costs which include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Decommissioning and restoration costs are a normal consequence of mining and the majority of decommissioning and restoration expenditures are incurred at the end of the life of mine.

17

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate that reflect risks specific to the liability.

Each period the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each year for the unwinding of the discount rate, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision.

Share capital

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

Flow-through shares

The issuance of flow-through common shares results in the obligation to transfer the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sale of such shares to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into: a flow-through share premium, equal to the estimated premium that investors pay for the flow-through feature, which is recognized as a liability, and share capital. As the related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes a related income tax recovery.

Revenue recognition

The Company produces doré and concentrates which contain both gold and silver. The doré is further processed to produce refined metals for sale. The concentrates may be sold to smelters in concentrate form or further processed to produce refined metals for sale. The Company’s performance obligations relate primarily to the delivery of gold and silver to its customers. For gold, the Company is required to deliver gold equivalent to 100% of production up to 7,067,000 ounces into an offtake agreement (note 10c).

Revenue is recognized when control is transferred to the customer. Control transfers when a product is delivered to the customer, the customer has full discretion over the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product.

Control over the refined gold or silver produced from doré or concentrate is transferred to the customer and revenue recognized upon delivery to the customer’s bullion account.

Control over the gold and silver bearing concentrates is transferred to the customer and revenue recognized at the time the Company elects to settle the sale directly with the smelter or when the concentrates are loaded onto the vessel at the port of discharge, depending on the customer. Revenue from these sales are recognized net of treatment costs and refining charges.

For each physical shipment of doré, 90% of the estimated contained gold is available to be delivered to the customer’s bullion account within approximately 10 days of arrival at the refinery. The balance of the contained gold is delivered the customer’s bullion account following the final processing outturn.

For each physical shipment of doré, 100% of the contained silver is sold upon the final processing outturn. Silver revenue is recorded at the spot price on the date of sale.

18

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

For any physical shipment of concentrate, where the Company receives the refined gold rather than a cash payment, 90% of the estimated contained gold received is available to be delivered to the customer’s bullion account within approximately 15 – 30 days after the bill of lading date. The balance of the contained gold is delivered to the customer’s bullion account following the final processing outturn.

Revenue is required to be recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the product to the customer.

Sales of refined gold and silver are delivered directly into the offtake agreement and recorded at the spot price on the date of delivery. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period after the date of each sale. The difference between the spot price on the date of sale and the price paid by the purchaser reflects the settlement of a portion of the offtake obligation previously recorded on the statement of financial position. The Company receives payment for 90% of the value of each gold sale within 2 days of the date of sale. A final payment for 10% of the value of each gold sale, taking into account the purchaser’s pricing option, is received on the 7th day after the date of sale.

Concentrate sales which are cash settled directly with the smelter are recorded at the provisional price based on the estimated forward price to the date of final settlement. The final purchase price for these gold sales will be the average price for a period of time following the bill of lading date depending on the customer. Adjustments are made in subsequent periods to the customer receivables for these sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date. These changes in fair value are included in revenue on the statement of earnings (loss). The Company receives payment for 90% of the value of each concentrate shipment 15 – 30 days after the loading of the material at the port of discharge. A final payment for 10% of the value of each sale is received upon completion of final assays and final pricing based on a defined pricing period.

Share-based payments

Share options

Options granted to employees under the Company’s equity settled share-based option plan are measured at fair value at the date of grant. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase in contributed surplus in equity.

An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity-settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instruments granted at the date the non-employee receives the goods or the services.

19

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Restricted share units (“RSU’s”)

RSU’s are granted to employees of the Company and are expected to be settled in cash. A liability for RSU’s is measured at fair value on the grant date and is subsequently adjusted for changes in fair value at each reporting date until settlement. The fair value of RSU’s is estimated based on the quoted market price of the Company’s common shares. The liability is recognized on a graded vesting basis over the vesting period, with a corresponding expense in the statement of earnings (loss).

Performance share units (“PSU’s”)

PSU’s are granted under the Company’s 2015 RSU Plan and are expected to be settled in cash. The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. Vesting, and therefore the liability, is based on the Company’s total shareholder return and the target settlement ranges from 0% to 200% of the original grant of units.

The fair value of a PSU reflects the value of a Company common share based on the quoted market price and the number of units issued is dependent upon the Company’s relative performance against a selected group of peer companies.

The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense over the vesting period in accordance with the vesting terms and conditions. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss).

Deferred share units (“DSU’s”)

DSU’s are granted to independent directors of the Company and are settled in cash when the individual ceases to be a director of the Company, either voluntarily or involuntarily. DSU’s vest immediately on the grant date. The fair value of a DSU reflects the value of a Company common share based on the quoted market price. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss).

Income and mining taxes

Income taxes include Canadian federal and provincial income taxes. Provincial mining taxes represent Canadian provincial taxes levied on mining operations. To the extent these taxes are determined based on a measure of taxable earnings, they are also accounted for as income taxes.

Income tax is recognized in earnings (loss) except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

20

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

3.SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization.

A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized.

Contingent liabilities

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company. Contingent liabilities are disclosed unless the possibility of an outflow of economic resources is considered remote.

Earnings (loss) per share

The Company presents basic earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share is determined by adjusting the earnings (loss) attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares.

4.CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of financial statements requires the use of accounting estimates. It also requires management to exercise judgment in the process of applying its accounting policies. Estimates and judgments are regularly evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. The following discusses the most significant accounting judgments and accounting estimates that the Company has made in the preparation of the financial statements including those that could result in a material effect in the next financial year on the carrying amounts of assets and liabilities:

Key sources of accounting policy judgment

Impairment of mineral properties, plant and equipment

The application of the Company’s accounting policy for impairment of mineral properties, plant and equipment requires judgment to determine whether indicators of impairment exist. The review of impairment indicators includes consideration of both external and internal sources of information, including factors such as market and economic conditions, metal prices and forecasts, capital expenditure requirements, future operating costs and production volumes. Management has assessed impairment indicators on the Company’s mineral properties, plant and equipment and has concluded that no impairment indicators exist as of December 31, 2018.

21

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

4.CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (Cont’d)

Impairment of exploration and evaluation assets

The application of the Company’s accounting policy for impairment of exploration and evaluation assets requires judgment to determine whether indicators of impairment exist including factors such as, the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further exploration and evaluation of resource properties are budgeted and evaluation of the results of exploration and evaluation activities up to the reporting date. Management has assessed impairment indicators on the Company’s exploration and evaluation assets and has concluded that no impairment indicators exist as of December 31, 2018.

Estimation uncertainty

Mineral reserves and resources

The Company estimates its mineral reserves and resources based on information compiled by qualified persons as defined in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects requirements. The estimation of ore reserves and resources requires judgment to interpret available geological data then select an appropriate mining method and establish an extraction schedule. It also requires assumptions about future commodity prices, exchange rates, production costs and recovery rates. There are uncertainties inherent in estimating mineral reserves and resources and assumptions that are valid at the time of estimation and may change significantly when new information becomes available. New geological data as well as changes in the above assumptions may change the economic status of reserves and may, ultimately, result in the reserves being revised.

Changes in the proven and probable mineral reserves and measured and indicated and inferred mineral resources estimates may impact the carrying value of mineral properties, plant and equipment, the calculation of depletion and depreciation expense, measurement of the decommissioning and site restoration provision and recognition of deferred tax amounts.

Fair value of derivatives and other financial liabilities

The fair values of financial instruments that are not traded in an active market are determined using valuation techniques. Management uses its judgment to select a method of valuation and makes estimates of specific model inputs that are based on conditions existing at the end of each reporting period. Refer to Note 10 and 20 for further details on the methods and assumptions associated with the measurement of the construction financing liabilities.

The valuation of the convertible notes at inception was completed using a discounted cash flow analysis that required various estimates and assumptions, including the discount rate for a similar non-convertible instrument. Refer to Note 11 for further details on the methods and assumptions associated with measurement of the convertible notes.

22

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

5.NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS

New accounting standard not yet adopted

A new accounting standard has been issued and is relevant to the Company but not yet effective and therefore not been applied in preparing these consolidated financial statements:

IFRS 16, Leases (“IFRS 16”)

IFRS 16 addresses accounting for leases and lease obligations. It replaces the existing leasing guidance in IAS 17, Leases. The objective of the new standard is to report all leases on the statement of financial position and to define how leases and lease liabilities are measured. IFRS 16 is effective from January 1, 2019 and must be applied retrospectively, subject to certain practical expedients, using either a full retrospective approach or a modified retrospective approach.

The Company is party to various leases as part of its mining operations. All leases will be recorded on the statement of financial position, except short-term leases and leases of low-value items. This is expected to result in a material increase to both assets (right of use) and liabilities (lease obligations) upon adoption of the standard, and changes to the timing of recognition and classification of expenses associated with such lease arrangements. The Company anticipates an increase in depreciation and depletion expense and interest and finance expense, and a decrease in operating expenses. The Company also anticipates an increase in cash flow from operating activities as lease payments will be recorded as financing outflows in the statement of cash flows.

The Company intends to adopt the modified retrospective approach and not restate balances for the comparative period. The Company has completed its review of all existing operating leases and service contracts to identify contracts in scope for IFRS 16 and assessed contracts for embedded leases. The Company is still in the process of evaluating its lease conclusions and the quantitative impact of the adoption.

There are no other IFRS’s or IFRIC interpretations that are not yet effective or early adopted that are expected to have a material impact on the Company.

6.RECEIVABLES AND OTHER

	December 31,		December 31,
	2018		2017
Trade receivables	$	14,487	$	11,067
Prepayments and deposits	3,332		2,064
Tax receivables	420		6,166
Other receivables	73		5
BC Mineral Exploration Tax Credit (“BCMETC”) receivable	—		249
	$	18,312	$	19,551

23

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

7.INVENTORIES

	December 31,		December 31,
	2018		2017
Finished metal	$	12,745	$	15,309
Materials and supplies	11,548		8,201
In-circuit	458		2,163
	$	24,751	$	25,673

As at December 31, 2018, $3,138 (2017 – $3,344) of depreciation and depletion and $199 (2017 – $371) of site share-based compensation was included in inventory.

8.MINERAL PROPERTIES, PLANT AND EQUIPMENT

	Mineral properties		Construction in progress			Plant and equipment		Exploration and evaluation assets			Total
Year ended December 31, 2017
Cost
Balance, January 1, 2017	$	382,294	$	633,181		$	21,064	$	242,788		$	1,279,327
Additions	—		324,641			297		3,928			328,866
Transfer from construction in progress to inventory	—		(8,192		)	—		—			(8,192		)
Transfer from construction in progress to plant and equipment	—		(523,488		)	523,488		—			—
Transfer from construction in progress to mineral properties	420,419		(420,419		)	—		—			—
Reversal (recoveries) of BCMETC	4,806		—			—		(253		)	4,553
Balance, December 31, 2017	$	807,519	$	5,723		$	544,849	$	246,463		$	1,604,554
Accumulated depreciation and depletion
Balance, January 1, 2017	$	—	$	—		$	8,870	$	—		$	8,870
Depreciation and depletion	14,924		—			15,900		—			30,824
Balance, December 31, 2017	$	14,924	$	—		$	24,770	$	—		$	39,694
Net book value - December 31, 2017	$	792,595	$	5,723		$	520,079	$	246,463		$	1,564,860
Year ended December 31, 2018
Cost
Balance, January 1, 2018	$	807,519	$	5,723		$	544,849	$	246,463		$	1,604,554
Additions	641		17,935			1,199		5,544			25,319
Transfer from construction in progress to plant and equipment	—		(10,008		)	10,008		—			—
Transfer from construction in progress to mineral properties	4,467		(4,467		)	—		—			—
Balance, December 31, 2018	$	812,627	$	9,183		$	556,056	$	252,007		$	1,629,873
Accumulated depreciation and depletion
Balance, January 1, 2018	$	14,924	$	—		$	24,770	$	—		$	39,694
Depreciation and depletion	36,066		—			31,194		—			67,260
Balance, December 31, 2018	$	50,990	$	—		$	55,964	$	—		$	106,954
Net book value - December 31, 2018	$	761,637	$	9,183		$	500,092	$	252,007		$	1,522,919

24

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

8.MINERAL PROPERTIES, PLANT AND EQUIPMENT (Cont’d)

(a)Mineral properties

Mineral properties consist solely of the Brucejack Mine.

(b)Plant and equipment

During the year ended December 31, 2018, $67,260 (2017 – $28,862) of depreciation and depletion was recognized in the statement of earnings (loss) and nil (2017 – $1,962) was capitalized within construction in progress.

(c)Exploration and evaluation assets

Exploration and evaluation assets consists of the Snowfield Project and regional drilling and exploration work on the Bowser Claims.

9.ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31,			December 31,
	2018			2017
Trade payables	$	24,814		$	35,142
Accrued liabilities	16,945			17,488
Employee benefit liability	4,398			4,783
Restricted share unit liability	1,502			2,730
Accrued interest on loan facility	1,051			—
Deferred share unit liability	997			—
Finance lease obligation	748			—
Accrued interest on convertible notes	660			660
Royalty payable	629			146
	$	51,744		$	60,949
Non-current portion of restricted share unit liability	(554		)	(511		)
Non-current portion of finance lease obligation	(518		)	—
Current portion of accounts payable and accrued liabilities	$	50,672		$	60,438

(a) Finance lease obligation

Finance lease obligations are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

	December 31,			December 31,
	2018			2017
Gross finance lease obligation - minimum lease payments
1 year	$	277		$	—
2-3 years	527			—
4-5 years	35			—
	$	839		$	—
Future interest expense on finance lease obligation	(91		)	—
	$	748		$	—

25

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

10.LONG-TERM DEBT

As at December 31, 2018, the Company’s long-term debt consisted of the following:

	Senior secured term credit facility			Offtake obligation			Stream obligation			Senior secured loan facility			Total long- term debt
Balance, January 1, 2017	$	232,438		$	67,702		$	201,020		$	—		$	501,160
Additional advances under the credit facility	85,205			—			—			—			85,205
Interest expense including amortization of discount	48,247			—			—			—			48,247
Settlement of offtake obligation	—			(1,543		)	—			—			(1,543		)
Loss on financial instruments at fair value	—			11,926			23,000			—			34,926
Balance, December 31, 2017	$	365,890		$	78,085		$	224,020		$	—		$	667,995
Interest expense including amortization of discount	56,834			—			—			—			56,834
Settlement of offtake obligation	—			(4,423		)	—			—			(4,423		)
Loss (gain) on financial instruments at fair value	—			(3,593		)	20,574			—			16,981
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL	—			—			(7,594		)	—			(7,594		)
Repayment of credit facility	(422,724		)	—			—			—			(422,724		)
Repurchase of stream obligation							(237,000		)	—			(237,000		)
Proceeds from loan facility, net of transaction costs	—			—			—			472,051			472,051
Amortization of loan facility transaction costs	—			—			—			95			95
Balance, December 31, 2018	$	—		$	70,069		$	—		$	472,146		$	542,215
Current portion of long-term debt	—			(7,576		)	—			(78,385		)	(85,961		)
Non-current portion of long-term debt	$	—		$	62,493		$	—		$	393,761		$	456,254

(a)Senior secured loan facility

On December 18, 2018, the Company closed a $480,000 senior secured loan facility (the “loan facility”) with a syndicate of financial institutions arranged by The Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC. The loan facility is comprised of a $250,000 senior secured amortizing non-revolving credit facility (the “term facility”) and a $230,000 senior secured revolving credit facility (the “revolving facility”). The loan facility is secured by substantially all of the assets of the Company and its subsidiaries.

The term of the loan facility is four years, maturing on December 18, 2022. The loan facility was fully drawn as at December 31, 2018.

Each borrowing under the term and revolving facilities is available by way of USD London Inter-Bank Offered Rate (“LIBOR”) loans or USD base rate loans. The revolving facility is also available in various other forms, including Canadian prime loans, bankers’ acceptances, bankers’ acceptance equivalent loans, and letters of credit.

26

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

10.LONG-TERM DEBT (Cont’d)

Borrowings comprising USD LIBOR loans shall bear interest at LIBOR plus an applicable margin of 2.5% to 3.5% based on the Company’s net leverage ratio. Borrowings comprising USD base rate loans shall bear interest at the administrative agent’s base rate plus an applicable margin of 1.5% to 2.5% based on the Company’s net leverage ratio. As at December 31, 2018, the LIBOR on the Company’s borrowings was 2.5%. Interest is payable on the last day of the interest period related to a borrowing. For the year ended December 31, 2018, $1,083 (2017 — nil) of interest expense was expensed as interest and finance expense in the statement of earnings (loss).

The term facility requires repayment in equal quarterly installments of principal in the amount of $16,667 commencing at the end of the second quarter of 2019. The revolving facility requires a principal repayment of $30,000 on June 18, 2019, reducing the available revolving facility to $200,000. The remaining principal of the revolving facility is required to be repaid as a bullet payment in full on the maturity date. Any unused portion of the revolving facility will be subject to a standby fee of 0.6% to 0.8%.

Transaction costs associated with the loan facility were $7,949 including an underwriting fee equal to 1.55% of the amount of the commitment related to the loan facility. The transactions costs will be amortized over the term of the loan. For the year ended December 31, 2018, $95 (2017 — nil) of amortization of the loan facility transaction costs were expensed to interest and finance expense in the statement of earnings (loss).

The effective interest rate for the loan facility as at December 31, 2018 is 5.9%. The Company is subject to financial covenants including interest coverage ratio, leverage ratio, tangible net worth and minimum liquidity under the terms of the loan facility. As at December 31, 2018, the Company was in compliance with all financial covenants.

(b)Senior secured term credit facility

On September 21, 2015, the Company closed a construction financing comprised of a senior secured term credit facility (the “credit facility”) for $350,000, an offtake agreement, a $150,000 callable gold and silver stream agreement and a private placement of common shares for $40,000.

Pursuant to the terms of the credit facility, the Company borrowed $350,000 at a stated interest rate of 7.5%, compounded quarterly and payable upon maturity.

The credit facility matured December 31, 2018 and was subject to an extension for one year, at the Company’s option upon payment of an extension fee of 2.5% of the principal amount, including accumulated interest. The Company had the right to repay at par plus accrued interest after the second anniversary of closing. The embedded derivatives associated with the prepayment and extension options were recorded on the statement of financial position as other assets. For the year ended December 31, 2018, the change in fair value of these embedded derivatives was a fair value loss of $132 (2017 — $1,624) which resulted in a nil balance for other assets on the statement of financial position.

As a result of the impact of the offtake obligation, the arrangement fees and the prepayment and extension options, the effective interest rate on the credit facility was 15.0%. For the year ended December 31, 2018, the Company expensed $56,834 (2017 — $26,091) of interest on the credit facility to the statement of earnings (loss) and capitalized nil (2017 — $22,156) to mineral properties, plant and equipment.

On December 18, 2018, the Company used proceeds from the loan facility to repay the credit facility in the amount of $422,724 which included principal and accrued interest.

27

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

10.LONG-TERM DEBT (Cont’d)

(c)Offtake obligation

The Company entered into an agreement pursuant to which it will deliver 100% of refined gold up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale.

The Company has the option to reduce the offtake obligation by up to 75% by paying $13 per ounce effective December 31, 2019 on the then remaining undelivered gold ounces.

For the year ended December 31, 2018, the Company delivered 371,223 (2017 — 121,671) ounces of gold under the offtake agreement. Of the amount settled, the Company physically delivered 249,799 (2017 — 94,169) ounces from doré production and purchased 121,424 (2017 — 27,502) ounces to satisfy delivery of gold produced from concentrate sales. The settlement of the gold ounces resulted in a decrease in the offtake obligation of $4,423 (2017 — $1,543).

The offtake obligation is recorded at fair value at each statement of financial position date. For the year ended December 31, 2018, the change in fair value of the offtake obligation was a fair value gain of $3,593 (2017 — loss of $11,926).

(d)Stream obligation

Pursuant to the stream, the Company was obligated to deliver, subject to prepayment options, 8% of up to 7,067,000 ounces of refined gold and 8% of up to 26,297,000 ounces of refined silver commencing on January 1, 2020 (less gold and silver sold to date) and a payment of $20,000. Upon delivery, the Company was entitled to (a) for gold, the lesser of $400 per ounce and the gold market price and (b) for silver, the lesser of $4 per ounce and the silver market price. Any excess of market over the fixed prices above would be credited against the deposit. Any remaining uncredited balance of the deposit was repayable, without interest, upon the earlier of the date (i) the aggregate stated gold and silver quantities have been delivered and (ii) 40 years.

The Company had the option to repurchase the stream obligation for $237,000 on December 31, 2018. The Company exercised this option and repurchased the stream obligation on December 18, 2018.

The stream obligation was recorded at fair value at each statement of financial position date. For the year ended December 31, 2018, the change in fair value of the stream obligation was a fair value loss of $12,980 (2017 — $23,000). Of the change in fair value, a fair value loss of $20,574 (2017 — $23,000) was recognized in the statement of earnings (loss) and a fair value gain due to the change in the Company’s credit risk of $7,594 ($5,543 net of deferred tax) was recognized in OCI.

As the stream was in substance a debt instrument, the effective interest on the debt host was capitalized as a borrowing cost during the development of the Brucejack Mine. For the year ended December 31, 2018, the Company capitalized nil (2017 — $10,120) of interest on the stream debt to mineral properties, plant and equipment. The capitalized interest was reclassified from the loss on financial instruments at fair value recorded in the statement of earnings (loss). The effective interest rate on the stream obligation was 9.5%.

28

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

11.CONVERTIBLE NOTES

On February 14, 2017, the Company completed an offering of $100,000 aggregate principal amount of unsecured convertible senior subordinated notes due 2022 (the “Notes”) which mature on March 15, 2022 and bear an interest rate of 2.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year.

The Notes are convertible into common shares of the Company at a fixed conversion rate, subject to certain anti-dilution adjustments. In addition, if certain fundamental changes occur, holders of the Notes may be entitled to an increased conversion rate. The Notes are convertible into common shares of the Company at an initial conversion rate of 62.5 common shares per $1 principal amount of Notes converted, representing an initial conversion price of $16.00 per common share.

The Company may not redeem the Notes before March 20, 2020, except in the event of certain changes in Canadian tax law. At any time on or after March 20, 2020, the Company may redeem all or part of the Notes for cash, but only if the last reported sale price of the Company’s common shares for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price. The redemption price will equal to the sum of (1) 100% of the principal amount of the notes to be redeemed and (2) accrued and unpaid interest, if any, to the redemption date.

The Company is required to offer to purchase for cash all of the outstanding Notes upon a fundamental change, at a purchase price in cash equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, to the fundamental change purchase date.

At initial recognition, the net proceeds of the Notes were bifurcated into its debt and equity components of $71,685 and $24,110 ($17,603 net of deferred tax) respectively. The fair value of the debt portion was estimated using a discounted cash flow model method based on an expected life of five years and a discount rate of 8.6%.

The debt portion has been designated a financial liability at amortized cost and is recorded net of transaction costs and accreted over the expected life using the effective interest rate of 7.8%. For the year ended December 31, 2018, $5,568 (2017 — $2,807) of accretion of convertible notes was expensed to the statement of earnings (loss) and nil (2017 — $2,090) was capitalized to mineral properties, plant and equipment.

The movement in the debt portion of the Notes during the period comprised the following:

	For the year ended
	December 31,		December 31,
	2018		2017
Opening balance	$	76,582	$	—
Face value of convertible notes	—		100,000
Transaction costs associated with convertible notes	—		(4,205		)
Equity component of convertible notes, net of allocated transaction costs	—		(24,110		)
Accretion of convertible notes	5,568		4,897
Ending balance	$	82,150	$	76,582

29

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

12.DECOMMISSIONING AND RESTORATION PROVISION

(a) Reclamation bonds

In relation to the Brucejack Mine, the Company has $2,029 of restricted cash (2017 - $5,036) which includes $1,749 (2017 - $4,731) in the form of Guaranteed Investment Certificates and Letters of Credit as security deposits with various government agencies in relation to decommissioning and restoration provisions.

In support of the closure plan for the Brucejack Mine, the Company increased its security through a surety bond by C$8,500, for total surety bonds of C$22,700 in favour of the Ministry of Energy and Mines. The Company was not required to provide collateral for the additional bond.

(b) Decommissioning and restoration provision

The Company has a liability for remediation of current and past disturbances associated with the exploration, development and production activities at the Brucejack Mine. The decommissioning and restoration provision is as follows:

	For the year ended
	December 31,			December 31,
	2018			2017
Opening balance	$	18,436		$	13,675
Change in discount rate	215			(1,933		)
Accretion of decommissioning and restoration provision	568			465
Change in amount and timing of cash flows	(272		)	6,229
Ending balance	$	18,947		$	18,436

For the year ended December 31, 2018, the provision increased due to a decrease in the discount rate. The Company used an inflation rate of 1.9% (2017 — 1.9%) and a discount rate of 2.4% (2017 — 2.5%) in calculating the estimated obligation. The liability for retirement and remediation on an undiscounted basis before inflation is $20,369 (2017 — $21,989). The majority of the expected expenditures to settle the decommissioning and restoration provision are expected to occur shortly after the end of the mine life.

13.REVENUE

Revenue by metal was:

	For the year ended
	December 31,			December 31,
	2018			2017
Gold revenue	$	452,253		$	175,793
Silver revenue	5,362			1,994
Revenue from contracts with customers	$	457,615		$	177,787
(Loss) gain on trade receivables at fair value	(3,059		)	146
	$	454,556		$	177,933

30

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

13.REVENUE (Cont’d)

Revenue from contracts with customers by product was:

	For the year ended
	December 31,		December 31,
	2018		2017
Gold revenue - doré	$	315,068	$	122,684
Gold revenue - concentrate	137,185		53,109
Silver revenue - concentrate	3,120		1,345
Silver revenue - doré	2,242		649
	$	457,615	$	177,787

14.COST OF SALES

	For the year ended
	December 31,		December 31,
	2018		2017
Consultants and contractors	$	100,873	$	47,907
Depreciation and depletion	67,134		28,722
Salaries and benefits	46,946		20,534
Supplies and consumables	29,146		10,547
Royalties and selling costs	19,739		7,308
Energy	13,408		5,104
Travel and camp accommodation	7,052		4,113
Freight	4,416		5,242
Camp administrative costs	3,931		1,410
Rentals	3,402		1,462
Site share-based compensation	2,160		1,198
Insurance	1,451		813
	299,658		134,360
Change in inventories	4,269		(9,280		)
	$	303,927	$	125,080

31

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

15.CORPORATE ADMINISTRATIVE COSTS

	For the year ended
	December 31,		December 31,
	2018		2017
Salaries and benefits	$	6,026	$	9,710
Share-based compensation	4,140		4,846
Office	1,580		1,020
Investor relations	1,318		1,064
Professional fees	1,085		801
Insurance	774		507
Listing and filing fees	390		381
Travel and accommodation	349		347
Depreciation	126		140
	$	15,788	$	18,816

16.INTEREST AND FINANCE EXPENSE

	For the year ended
	December 31,		December 31,
	2018		2017
Interest expense on credit facility	$	56,834	$	26,091
Interest expense on convertible notes	7,818		3,941
Interest expense on loan facility	1,178		—
Accretion of decommissioning and restoration provision	568		465
Other interest expense	483		70
Bank charges	29		88
Interest expense on finance leases	16		—
	$	66,926	$	30,655

17.CAPITAL AND RESERVES

(a)Share capital

At December 31, 2018, the authorized share capital consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares with no par value.

On July 25, 2018, the Company completed a non-brokered private placement of 227,273 flow-through common shares at a price of C$13.20 per share for gross proceeds of $2,304 before share issuance costs of $31. The Company bifurcated the gross proceeds between share capital of $1,913 and flow-through share premium of $391.

On June 30, 2017 and July 14, 2017, the Company completed two tranches of a private placement of 329,000 flow-through common shares at a price of C$15.20 per flow-through share for combined gross proceeds of $3,891, before share issuance costs of $30. The Company bifurcated the gross proceeds between share capital of $3,182 and flow-through share premium of $709.

32

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

17.CAPITAL AND RESERVES (Cont’d)

(b)Stock options

The Company has adopted an incentive stock option plan which provides that the Board of Directors of the Company may from time to time, in their discretion, and in accordance with Toronto Stock Exchange requirements, grant to its directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issue does not exceed 10% of the number of then outstanding common shares. Such options can be exercisable for a maximum of five years from the date of grant. The exercise price of each stock option is set by the Board of Directors at the time of grant but cannot be less than the market price. Vesting of stock options is at the discretion of the Board of Directors at the time the options are granted.

The following table summarizes the changes in share options for the year ended December 31:

	2018				2017
	Number of options		Weighted average exercise price (in CAD)		Number of options		Weighted average exercise price (in CAD)
Outstanding, January 1,	6,454,327		$	9.32	7,524,727		$	9.05
Granted	615,592		10.60		1,067,875		12.83
Exercised	(1,576,500	)	6.95		(1,822,025	)	9.40
Expired	(882,750	)	13.52		(290,000	)	14.64
Forfeited	(47,750	)	12.72		(26,250	)	10.43
Outstanding, December 31,	4,562,919		$	9.47	6,454,327		$	9.32

For options exercised during the period, the related weighted average share price at the time of exercise was C$10.76 (2017 — C$13.33).

The following table summarizes information about share options outstanding and exercisable at December 31, 2018:

	Share options outstanding		Share options exercisable
Exercise prices (in CAD)	Number of options outstanding	Weighted average years to expiry	Number of options exercisable	Weighted average exercise price (in CAD)
$5.85 - $7.99	1,647,075	1.58	1,647,075	$	7.04
$8.00 - $9.99	1,615,469	2.65	1,214,877	9.20
$10.00 - $11.99	130,000	3.13	77,200	10.73
$12.00 - $13.99	1,135,375	3.94	319,530	13.04
$14.00 - $15.99	35,000	2.61	35,000	15.17
Outstanding, December 31, 2018	4,562,919	2.60	3,293,682	$	8.59

The total share-based compensation expense for the year ended December 31, 2018 was $3,502 (2017 — $3,733) of which $3,502 (2017 — $2,367) was expensed in the statement of earnings (loss) and nil (2017 — $1,366) was capitalized to mineral properties, plant and equipment.

33

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

17.CAPITAL AND RESERVES (Cont’d)

The following are the weighted average assumptions employed to estimate the fair value of options granted for the year ended December 31, 2018 and 2017 using the Black-Scholes option pricing model:

	For the year ended
	December 31, 2018		December 31, 2017
Risk-free interest rate	2.23	%	1.42	%
Expected volatility	58.46	%	63.63	%
Expected life	5 years		5 years
Expected dividend yield	Nil		Nil

Option pricing models require the input of subjective assumptions including the expected price volatility, and expected option life. Changes in these assumptions may have a significant impact on the fair value calculation.

(c)2015 RSU Plan — RSU’s

The Company adopted the 2015 RSU Plan to allow the Board of Directors to grant its employees and consultants, non-transferable share units based on the value of the Company’s share price at the date of grant. The awards have a graded vesting schedule over a three-year period and can be either cash or equity settled upon vesting at the discretion of the Board of Directors.

The associated compensation cost is recorded in share-based compensation expense unless directly attributable to mineral properties, plant and equipment.

The following table summarizes the changes in RSU’s for the year ended December 31:

	2018				2017
	Number of RSU’s		Weighted average fair value (in CAD)		Number of RSU’s		Weighted average fair value (in CAD)
Outstanding, January 1,	729,064		$	14.41	735,729		$	10.65
Granted	481,230		9.78		370,472		12.96
Settled	(385,063	)	9.67		(355,648	)	13.07
Forfeited	(83,345	)	11.16		(21,489	)	13.85
Outstanding, December 31,	741,886		$	11.31	729,064		$	14.41

At December 31, 2018, a liability of $1,271 (2017 — $2,715) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $1,558 (2017 — $3,365) was expensed in the statement of earnings (loss) as share-based compensation expense and nil (2017 — $687) was capitalized to mineral properties, plant and equipment.

(d)2015 RSU plan — PSU’s

PSU’s are granted to senior executive management under the 2015 RSU Plan. The PSU’s vest at the end of the third year and the number of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies.

34

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

17.CAPITAL AND RESERVES (Cont’d)

The following table summarizes the changes in PSU’s for the year ended December 31:

	2018			2017
	Number of PSU’s	Weighted average fair value (in CAD)		Number of PSU’s	Weighted average fair value (in CAD)
Outstanding, January 1,	74,140	$	14.41	—	$	—
Granted	91,945	9.78		74,140	13.08
Outstanding, December 31,	166,085	$	11.31	74,140	$	14.41

At December 31, 2018, a liability of $231 (2017 — $15) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $226 (2017 — $15) was expensed in the statement of earnings (loss) as share-based compensation expense.

(e)2018 DSU Plan — DSU’s

During the year ended December 31, 2018, the Company established a DSU plan (“2018 DSU Plan”) for the benefit of the directors of the Company. Pursuant to the plan, eligible directors can elect to receive all or part of their total cash compensation in the form of DSU’s. The number of DSU’s granted to an eligible director is determined by dividing the portion of the compensation to be paid in DSU’s by the fair market value of the Company’s common shares on the conversion date. In addition, the Board may, at its discretion, grant additional DSU’s to plan participants. Each eligible director will be required to hold DSU’s received until the eligible director ceases to be a director of the Company, following which the DSU’s will be settled in cash.

The following table summarizes the changes in DSU’s for the year ended December 31:

	2018			2017
	Number of DSU’s	Weighted average fair value (in CAD)		Number of DSU’s	Weighted average fair value (in CAD)
Outstanding, January 1,	—	$	—	—	$	—
Granted	117,587	9.78		—	—
Outstanding, December 31,	117,587	$	11.57	—	$	—

At December 31, 2018, a liability of $997 (2017 — nil) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $1,014 (2017 — nil) was expensed in the statement of earnings (loss) as share-based compensation expense.

(f)Earnings (loss) per share

The calculation of diluted earnings (loss) per share was based on earnings (loss) attributable to ordinary shareholders and the weighted-average number of shares outstanding after adjustments for the effect of potential dilutive shares. For the year ended December 31, 2018, potential share issuances arising from the exercise of share options and the settlement of restricted share units in common shares were included in the calculation of diluted weighted average shares outstanding as well as their impact on earnings (loss) attributable to shareholders of the Company. Potentially dilutive shares associated with the convertible notes and share options (out of the money) were not included in the diluted earnings (loss) per share calculation as their effect was anti-dilutive.

35

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

17.CAPITAL AND RESERVES (Cont’d)

The following table summarizes the calculation of basic and diluted earnings (loss) per share:

	For the year ended
	December 31,		December 31,
	2018		2017
Net earnings (loss) for the year	$	36,620	$	(16,453	)
Basic weighted average number of common shares outstanding	182,905,004		181,208,295
Effective impact of dilutive securities:
Share options	955,963		—
Restricted share units	20,950		—
Diluted weighted average number of common shares outstanding	183,881,917		181,208,295
Earnings (loss) per share
Basic	$	0.20	$	(0.09	)
Diluted	$	0.20	$	(0.09	)

18.RELATED PARTIES

Transactions with key management

Key management includes the Company’s directors (executive and non-executive) and executive officers including its Executive Chairman (“Exec Chair”), its President and Chief Executive Officer, its Executive Vice President and Chief Financial Officer, its Vice President, Operations, its Vice President and Chief Exploration Officer, and its Executive Vice President, Corporate Affairs and Sustainability.

Directors and key management compensation:

	For the year ended
	December 31,		December 31,
	2018		2017
Salaries and benefits	$	5,851	$	9,228
Share-based compensation	3,559		5,029
	$	9,410	$	14,257

Under the terms of the Exec Chair’s employment agreement, effective January 1, 2017, the Exec Chair is entitled to a retirement allowance which remains due and payable in full in the event the Exec Chair terminates his employment with the Company. In 2017, the entire retirement allowance was expensed in the amount of $4,469 (C$6,000). The retirement allowance remains a current liability as at December 31, 2018 (note 9).

36

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

19.SUPPLEMENTAL CASH FLOW INFORMATION

The net change in non-cash working capital items included in mineral properties, plant and equipment were as follows:

	For the year ended
	December 31,			December 31,
	2018			2017
Taxes receivable	$	—		$	4,522
Accounts payable and accrued liabilities	(9,168		)	(89,358		)
	$	(9,168	)	$	(84,836	)

The net change in the Company’s financing liabilities were as follows:

	Long-term debt			Convertible notes
Liabilities from financing activities, January 1, 2017	$	501,160		$	—
Advance under credit facility	97,000			—
Net proceeds from convertible notes	—			95,795
Cash payments	—			(1,319		)
Other non-cash movements	69,835			(17,894		)
Liabilities from financing activities, December 31, 2017	$	667,995		$	76,582
Proceeds from loan facility, net of transaction costs	472,384			—
Cash payments	(659,724		)	(2,250		)
Other non-cash movements	61,560			7,818
Liabilities from financing activities, December 31, 2018	$	542,215		$	82,150

20.FINANCIAL RISK MANAGEMENT

Financial risk management

The Company has exposure to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk from its use of financial instruments.

This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Risk management is the responsibility of management and is carried out under policies approved by the Board of Directors. Material risks are monitored and are regularly discussed with the Audit Committee and Board of Directors.

(a)Market risk

Market risk is the risk that changes in market price, such as foreign exchange rates, interest rates and commodity prices which will affect the Company’s cash flows or value of its financial instruments.

37

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

20.FINANCIAL RISK MANAGEMENT (Cont’d)

(i)Currency risk

The Company is subject to currency risk on financial instruments which are denominated in currencies that are not the same as the functional currency of the entity that holds them. Exchange gains and losses would impact earnings (loss).

The Company is exposed to currency risk through cash and cash equivalents, receivables and other excluding trade receivables, restricted cash and accounts payable and accrued liabilities which are denominated in CAD. The Company has not hedged its exposure to currency fluctuations at this time.

The following table shows the impact on pre-tax earnings of a 10% change in the USD/CAD exchange rate on financial assets and liabilities denominated in CAD, as of December 31, 2018, with all other variables held constant:

	Impact of currency rate change on pre-tax earnings
	10% increase			10% decrease
Cash and cash equivalents	$	1,085		$	(1,085	)
Receivables and other, excluding trade receivables	90			(90		)
Restricted cash	203			(203		)
Accounts payable and accrued liabilities	(4,905		)	4,905

In addition to currency risk from financial instruments, a significant portion of the Company’s mine production costs, capital expenditures and corporate administrative costs are denominated in CAD. Consequently, fluctuations in the USD exchange rate against the CAD increases the volatility of cost of sales and corporate administrative costs.

(ii)Interest rate risk

The Company is subject to interest rate risk with respect to its investments in cash and cash equivalents. The Company’s current policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash and cash equivalents in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash and cash equivalents mature impact interest income earned.

The Company is subject to interest rate risk with respect to its loan facility. Interest rates associated with this facility are based on LIBOR and the administrative agents’ base rate which fluctuates based on market conditions.

The Company is also subject to interest rate risk with respect to the fair value of the offtake obligation which is accounted for at FVTPL.

38

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

20.FINANCIAL RISK MANAGEMENT (Cont’d)

The following table shows the impact on pre-tax earnings of a 1% change in interest rates on financial assets and liabilities as of December 31, 2018, with all other variables held constant:

	Impact of interest rate change on pre-tax earnings
	1% increase			1% decrease
Cash and cash equivalents	$	1,087		$	(1,087	)
Senior secured loan facility	(173		)	173
Offtake obligation	2,049			(1,947		)

(iii)Commodity price risk

The Company is subject to commodity price risk from fluctuations in the market prices for gold and silver. Commodity price risks are affected by many factors that are outside the Company’s control including global or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability and costs of metal substitutes, inflation and political and economic conditions.

The financial instruments impacted by commodity prices are the trade receivables and the offtake obligation (a derivative liability).

Price adjustments are made in subsequent periods to the customer receivables for concentrate sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date.

The Company has not hedged the price of any commodity at this time as it is not permitted to hedge under the terms of the offtake obligation.

The following table shows the impact on pre-tax earnings from changes in the fair values of financial instruments with a 10% change in gold and silver commodity prices. The impact of a 10% movement in commodity prices as of December 31, 2018, with all other variables held constant, is as follows:

	Impact of price change on pre-tax earnings
	10% increase			10% decrease
Trade receivables	$	8,844		$	(8,844	)
Offtake obligation	(2,588		)	3,799

(b)Credit risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents, trade receivables, tax receivables and restricted cash.

39

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

20.FINANCIAL RISK MANAGEMENT (Cont’d)

The carrying amount of financial assets represents the maximum credit exposure:

	December 31, 2018		December 31, 2017
Cash and cash equivalents	$	45,407	$	56,285
Trade receivables	14,487		11,067
Tax receivables	420		6,166
Restricted cash	2,029		5,036
	$	62,343	$	78,554

The Company limits its exposure to credit risk on financial assets through investing its cash and cash equivalents and restricted cash with high-credit quality financial institutions. Management believes the risk of loss related to these deposits to be low. The Company continually evaluates changes in the status of its counterparties.

We are exposed to credit risk through our trade receivables, which are principally with internationally recognized counterparties. The Company sells its gold and silver to its lenders, refineries located in Canada and the United States and trading companies. The Company has had limited instances of default from its counterparties. The Company continually evaluates its counterparties in which it sells its product. The Company is not economically dependent on a limited number of customers for the sale of its gold and silver as its products can be sold through numerous world-wide commodity markets. As at December 31, 2018, the Company has $14,487 (2017 — $11,067) receivables related to its gold and silver revenue.

(c)  Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of its financial assets and liabilities. Cash flow forecasting is performed regularly. To the extent the Company does not believe it has sufficient liquidity to meet obligations, it will consider securing additional debt or equity funding.

The Company’s cash and cash equivalents are currently invested in business and savings accounts with high-credit quality financial institutions which are available on demand by the Company for its operating and capital expenditures. The Company also holds government and surety bonds to support future environmental obligations.

The Company’s financial obligations consist of accounts payable and accrued liabilities including the restricted share unit liability, long-term debt consisting of the loan facility and the offtake obligation, and the convertible notes.

40

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

20.FINANCIAL RISK MANAGEMENT (Cont’d)

As at December 31, 2018, the Company has cash and cash equivalents of $45,407 and a working capital (current assets less current liabilities) deficit of $48,163. On December 18, 2018, the Company completed a $480,000 loan facility with a syndicate of financial institutions arranged by the Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC which was used to refinance the credit facility in the total amount of $422,724. The additional funds from the loan facility and cash on hand generated from operating activities were used to repurchase the stream obligation for $237,000. Based on management’s cash flow projections, the Company expects that future operating and debt settlement requirements will be satisfied from operating cash flows.

The maturity analysis of financial liabilities as at December 31, 2018 is as follows:

	1 year		2-3 years		4-5 years		More than 5 years		Total
Principal repayments on loan facility	$	80,000	$	133,333	$	266,667	$	—	$	480,000
Convertible notes	—		—		100,000		—		100,000
Interest payments on loan facility(1)	25,186		35,890		12,041		—		73,117
Accounts payable and accrued liabilities	43,385		—		—		—		43,385
Interest on convertible notes	2,250		4,500		1,116		—		7,866
Restricted share unit liability	948		554		—		—		1,502
Finance lease obligation	277		527		35		—		839
	$	152,046	$	174,804	$	379,859	$	—	$	706,709

(1)Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility.

Capital management

The Company’s objectives in the managing of capital are to safeguard the Company’s ability to continue as a going concern and provide financial capacity to meet its strategic objectives. Management monitors the amount of cash, debt instruments and equity in the capital structure and adjusts the capital structure, as necessary, to support the operation, development and exploration of its mine and projects.

The capital structure of the Company consists of debt instruments and equity attributable to common shareholders, comprising of issued share capital, contributed surplus, AOCI and accumulated deficit.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue new debt, acquire or dispose of assets to facilitate the management of its capital requirements.

The Company prepares detailed annual budgets and cash flow forecasts for mining, development and corporate activities that are approved by the Board of Directors. Forecasts are regularly reviewed and updated for changes in circumstances so that appropriate capital allocation, investment and financing decisions are made for the Company.

41

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

20.FINANCIAL RISK MANAGEMENT (Cont’d)

Fair value estimation

The Company’s financial assets and liabilities are measured and recognized according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy are as follows:

Level 1:	Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2:	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3:	Inputs for the asset or liability that are not based on observable market data

The carrying values of cash and cash equivalents, receivables and other, accounts payable and accrued liabilities and the loan facility approximate their fair values due to the short-term maturity of these financial instruments.

The following tables present the Company’s financial assets and liabilities by level within the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

	Carrying value						Fair value
			Amortized		Other financial
As at December 31, 2018	FVTPL		cost		liabilities		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	—	$	45,407	$	—	$	—	$	—	$	—
Trade receivables	14,487		—		—		—		14,487		—
Restricted cash	—		2,029		—		—		—		—
	$	14,487	$	47,436	$	—	$	—	$	14,487	$	—
Financial liabilities
Accounts payable and accrued liabilities	$	—	$	—	$	43,048	$	—	$	—	$	—
Restricted share unit liability	1,502		—		—		—		1,502		—
Deferred share unit liability	997		—		—		—		997		—
Senior secured loan facility	—		—		472,146		—		—		—
Offtake obligation	70,069		—		—		—		—		70,069
Debt portion of convertible note	—		—		82,150		—		82,150		—
	$	72,568	$	—	$	597,344	$	—	$	84,649	$	70,069

42

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

20.FINANCIAL RISK MANAGEMENT (Cont’d)

	Carrying value						Fair value
			Loans and		Other financial
As at December 31, 2017	FVTPL		receivables		liabilities		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	—	$	56,285	$	—	$	—	$	—	$	—
Trade receivables	—		11,067		—		—		11,067		—
Other assets	132		—		—		—		—		132
Restricted cash	—		5,036		—		—		—		—
	$	132	$	72,388	$	—	$	—	$	11,067	$	132
Financial liabilities
Accounts payable and accrued liabilities	$	—	$	—	$	53,436	$	—	$	—	$	—
Restricted share unit liability	2,730		—		—		—		2,730		—
Senior secured term credit facility	—		—		365,890		—		—		—
Offtake obligation	78,085		—		—		—		—		78,085
Stream obligation(1)	224,020		—		—		—		—		224,020
Debt portion of convertible note	—		—		76,582		—		76,582		—
	$	304,835	$	—	$	495,908	$	—	$	79,312	$	302,105

(1)The stream obligation was recorded at fair value at each statement of financial position date as the Company determined that the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to measure the stream obligation in its entirety at FVTPL.

The embedded derivative assets were valued using Monte Carlo simulation valuation models with principal inputs related to the credit facility including the risk-free interest rate and the Company’s and lender’s credit spread.

The offtake and stream obligations were valued using Monte Carlo simulation valuation models. The key inputs used by the Monte Carlo simulation in valuing both the offtake and stream obligations include: the gold forward curve based on Comex futures, long-term gold volatility, call option exercise prices and risk-free rate of return.

In addition, in valuing the stream obligation, management used the following significant observable inputs: the silver forward curve based on Comex futures and the long-term silver volatility and gold/silver correlation.

The valuation of the offtake and stream obligations also require estimation of the Company’s non-performance or credit risk and the anticipated production schedule of gold and silver ounces delivered over the life of mine.

43

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

21.TAXATION

(a) Deferred income tax liability

The tax effects of temporary differences between amounts recorded in the Company’s accounts and the corresponding amounts as computed for income tax purposes gives rise to deferred tax liability as follows:

	December 31,			December 31,
	2018			2017
Tax loss carry forwards	$	74,400		$	53,266
Long term debt	10,798			22,525
Investment tax credits	6,545			6,545
Financing costs	4,310			4,288
Other	2,080			756
Decommissioning and restoration provision	—			4,978
Inventories	(847		)	(964		)
Provincial mining tax attributes	(6,088		)	—
Mineral interests	(106,434		)	(91,394		)
	$	(15,236	)	$	—

Deductible temporary differences for which no deferred tax assets are recognized are as follows:

	December 31,		December 31,
	2018		2017
Provincial mining tax attributes	$	18,947	$	16,408
Decommissioning and restoration provision	18,947		—
Other	68		68
Tax loss carry forwards	—		59,472
	$	37,962	$	75,948

The Company has tax losses in Canada of approximately $275,265 (2017 - $256,463) expiring in various amounts from 2030 to 2038. The Company also has investment tax credits totaling approximately $8,965 (2017 - $8,965). The Company has deductible temporary differences for which no deferred tax assets have been recognized of $37,962 (2017 - $75,948). A deferred tax asset has not been recognized in respect of the differences, as it is not probable that sufficient future taxable earnings will be available in the periods when deductions from such potential assets will be realized.

(b) Income tax expense (recovery)

The Company’s income tax expense (recovery) is comprised of the following:

	For the year ended
	December 31,		December 31,
	2018		2017
Current tax expense	$	4,196	$	1,621
Deferred income tax expense (recovery)	12,668		(7,022		)
	$	16,864	$	(5,401	)

44

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

21.TAXATION (Cont’d)

The provision for income taxes differs from the amount calculated using the Canadian federal and provincial statutory income tax rates of 27.0% (2017 — 26.0%) as follows:

	For the year ended
	December 31,			December 31,
	2018			2017
Expected tax (recovery) expense	$	14,441		$	(5,680	)
Change in income tax rates	—			(574		)
Provincial mining taxes	800			1,621
Change in unrecognized temporary differences	(10,942		)	7,679
Share-based compensation and other items	943			988
Flow-through shares	823			842
Flow-through share premium	(526		)	(574		)
Impact of foreign exchange on CAD denominated tax attributes	11,735			(12,550		)
Non-temporary differences	(410		)	2,847
	$	16,864		$	(5,401	)

22.COMMITMENTS

The following table provides the Company’s gross contractual obligations as of December 31, 2018:

	1 year		2-3 years		4-5 years		More than 5 years		Total
Principal repayments on loan facility	$	80,000	133,333		$	266,667	$	—	$	480,000
Repayment of convertible notes	2,250		4,500		101,116		—		107,866
Interest payments on loan facility(1)	25,186		35,890		12,041		—		73,117
Decommissioning and restoration provision	422		51		—		18,474		18,947
Operating leases	4,571		7,649		1,462		122		13,804
Purchase commitments	5,568		—		—		—		5,568
Finance lease obligation	277		527		35		—		839
	$	118,274	$	181,950	$	381,321	$	18,596	$	700,141

(1)Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility.

(a)Commitments — Brucejack Mine

The Company and the Nisga’a Nation have entered into a comprehensive Cooperation and Benefits Agreement in respect of the Brucejack Mine. Under the terms of the Agreement, the Nisga’a Nation will provide ongoing support for the development and operation of Brucejack with participation in its economic benefits.

45

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

22.COMMITMENTS (Cont’d)

The Brucejack Mine is subject to a 1.2% net smelter returns royalty (“1.2% NSR royalty”) on production in excess of cumulative 503,386 ounces of gold and 17,907,080 ounces of silver. The gold ounce production threshold for the 1.2% NSR royalty was met in December 2018. For the year ended December 31, 2018, $258 (2017 — nil) was expensed to royalties and selling costs in the statement of earnings (loss).

(b)Commitments — Offtake obligation

Under the offtake agreement, the Company is obligated to sell 100% of refined gold (in excess of any delivered ounces pursuant to the stream obligation) up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale.

23.CONTINGENCIES

The Company is involved in various claims, litigation and other matters in the ordinary course and conduct of business. Some of these pending matters will take a number of years to resolve. While it is not possible to determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such outcomes, it is the Company’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its consolidation financial position or results of operations.

(a)Canadian class action

On October 29, 2013, David Wong, a shareholder of the Company, filed a proposed class action against the Company, Robert Quartermain (a director, and the President and the CEO of the Company at such time) and Snowden Mining Industry Consultants Ltd. (the “Wong Action”). The Wong Action was filed in the Ontario Superior Court of Justice.

The Wong Action alleges that the price of our shares on the TSX and NYSE suffered a significant drop in value following the announcement on October 9, 2013 of the resignation of Strathcona Mineral Services Ltd. (“Strathcona”), the consultant responsible for overseeing and reporting on the 10,000-tonne bulk sample, and the announcement of Strathcona’s reasons for resigning on October 22, 2013.

The Wong Action claims C$60,000 in general damages on behalf of a class of persons who acquired the Company’s securities between July 23, 2013 and October 21, 2013. Snowden Mining Industry Consultants Ltd. is no longer a defendant in the Wong Action.

The plaintiff in the Wong Action brought a motion for leave to commence an action under the secondary market provisions in Part XXIII.1 of the Ontario Securities Act. The motion was heard on May 29 and 30, 2017. The Court allowed the plaintiff’s motion on July 20, 2017. The Company was denied leave to appeal this decision. The Company and Robert Quartermain consented to, and on January 23, 2019 the Court granted, an order certifying the Wong Action as a class proceeding pursuant to the Class Proceedings Act (Ontario).

The Company believes that the allegations made against it in the Wong Action are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for the Wong Action.

46

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

23.CONTINGENCIES (Cont’d)

(b)2013 United States class actions

Between October 25, 2013 and November 18, 2013, five putative class action complaints were filed in the United States against the Company and certain of its officers and directors, alleging that defendants violated the United States securities laws by misrepresenting or failing to disclose material information concerning the Brucejack Mine. All five actions were filed in the United States District Court for the Southern District of New York (the “District Court”).

In January 2014, the District Court ordered that these actions be consolidated into a single action, styled In re Pretium Resources Inc. Securities Litigation, Case No. 13-CV-7552. The District Court appointed as lead plaintiffs in the consolidated action three individuals who are suing on behalf of a putative class of shareholders who purchased or otherwise acquired the Company’s common shares between June 11, 2013 and October 22, 2013.

In March 2014, the plaintiffs filed a consolidated amended class action complaint, which the Company moved to dismiss in May 2014. In July 2014, the plaintiffs filed a second consolidated amended class action complaint (“Second Amended Complaint”). The Company moved to dismiss the Second Amended Complaint on September 5, 2014. Plaintiffs filed their Opposition to the Company’s Motion to Dismiss on October 20, 2014, and the Company filed a reply brief on November 19, 2014.

In June 2017, the District Court granted the Company’s Motion to Dismiss the Second Amended Complaint. The District Court ruled in favour of the Company and the officers and directors named as defendants on all claims and ordered the case closed. The plaintiffs filed their Notice of Appeal from the decision, to the United States Court of Appeals for the Second Circuit (the “Second Circuit”), on July 10, 2017. The plaintiffs’ opening brief on appeal was filed on October 2, 2017. The Company filed its response brief on December 8, 2017 and the plaintiffs filed their reply brief on December 22, 2017. Oral argument on the plaintiffs’ appeal was heard by the Second Circuit on March 16, 2018.

On May 1, 2018, the Second Circuit affirmed the District Court’s order dismissing the plaintiffs’ Second Amended Complaint in its entirety for failure to state a claim under the U.S. securities laws.

(c)2018 United States class actions

Two putative class action complaints were filed against the Company and certain of its officers in the United States District Court for the Southern District of New York, one on September 7, 2018 and the other on October 19, 2018. The complaints have been filed on behalf of an alleged class of all persons and entities who purchased or acquired shares of the Company between July 21, 2016 and September 6, 2018, and relate to public disclosures of the Company made between July 2016 and September 2018 regarding the Brucejack Mine. The Company has been served with one of the two complaints. Aurico Gold Fund LP has filed a motion to consolidate the two cases, appoint itself as lead plaintiff, and approve lead plaintiff’s selection of counsel. The Company has retained legal counsel in connection with these matters.

The Company believes that the allegations made against it and its officers in the aforementioned complaints are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for these actions.

47

PRETIUM RESOURCES INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2018 and 2017

(Expressed in thousands of United States dollars, except for share data)

23.CONTINGENCIES (Cont’d)

(d)Construction claims

On April 24, 2017, Bear Creek Contracting Ltd. (“Bear Creek”) filed a Notice of Civil Claim against the Company (the “Bear Creek Action”) alleging that the Company owes Bear Creek C$14,563 in general damages in connection with work undertaken at the Brucejack Mine transmission line. The Bear Creek Action was filed in the Supreme Court of British Columbia. The Company filed a Response to Civil Claim on July 31, 2017, opposing all of the claims and allegations made. Notices of Civil Claim have also been filed by Blue Max Drilling Inc. (April 24, 2017), More Core Diamond Drilling Services Ltd. (March 27, 2017), and Lakelse Air Ltd. (February 23, 2018) who were subcontractors working under Bear Creek. Responses to Civil Claim have been filed in those actions and the claims are understood to be subsumed in the amount claimed by Bear Creek. It is expected that the four actions will be joined.

The Company believes that the allegations made against it in the Bear Creek Action, and the other actions, are meritless and will vigorously defend the matter, although no assurance can be given with respect to the ultimate outcome of such proceedings. The Company has not accrued any amounts for any of the actions.

48

APPENDIX C

MANAGEMENT’S DISCUSSION AND ANALYSIS

PRETIUM RESOURCES INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) of Pretium Resources Inc. (“Pretivm”, the “Company”, “we” or “us”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of the Company. This MD&A should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2018 and 2017 as publicly filed in Canada on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website, and in the United States on the EDGAR sections of the Securities and Exchange Commission (“SEC”) website.

We have prepared the audited consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

The Company’s functional and presentation currency is the United States dollar. References to “$” or “USD” are to United States dollars, while references to “C$” or “CAD” are to Canadian dollars. All dollar amounts in this MD&A are expressed in thousands of USD, except for share and per ounce data, unless otherwise noted or the context otherwise provides.

This MD&A is prepared as of February 14, 2019 and includes certain statements that may be deemed “forward-looking information”, “forward-looking statements”, “future-oriented financial information” and “financial outlook”. We direct readers to the section “Statement Regarding Forward-Looking Information” included within this MD&A.

Certain non-IFRS financial performance measures are included in this MD&A. We believe that these measures, in addition to measures prepared in accordance with IFRS, provide readers with an improved ability to evaluate the underlying performance of the Company and compare our results to other companies. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS financial performance measures included in this MD&A are: cost of sales per ounce of gold sold; total cash costs; all-in sustaining costs (“AISC”); average realized gold price and average realized cash margin; adjusted earnings and adjusted basic earnings per share; earnings from mine operations; and working capital. Refer to the “Non-IFRS Financial Performance Measures” section for further details and reconciliations of such non-IFRS measures.

Additional information relating to us, including our Annual Information Form and Form 40-F, each dated March 28, 2018, is available on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC website at www.sec.gov.

2

FOURTH QUARTER 2018 SUMMARY

Operational summary

·Gold production totaled 96,342 ounces compared to 70,281 ounces in the comparable period in 2017.

·Mill feed grade averaged 11.5 grams per tonne gold compared to 8.2 grams per tonne gold in the comparable period in 2017.

·Gold recoveries averaged 97.0% compared to 95.8% in the comparable period in 2017.

·Process plant throughput averaged 2,903 tonnes per day for a total of 267,048 tonnes of ore compared to 2,951 tonnes per day for a total of 271,501 tonnes of ore in the comparable period in 2017.

·Received amended permits to increase production 40% to an annual rate of 1.387 million tonnes (daily average of 3,800 tonnes).

Financial summary

·The Company generated revenue of $108,596 compared to revenue of $107,058 in the comparable period in 2017. Revenue includes a gain on trade receivables at fair value related to provisional pricing adjustments of $285 (2017 — $594).

·The sale of 89,011 ounces of gold contributed $107,161 of revenue at an average realized price(1) of $1,204 per ounce. In the comparable period in 2017, the sale of 86,514 ounces of gold contributed $104,794 at an average realized price(1) of $1,211 per ounce.

·Total cost of sales was $72,479 or $814 per ounce of gold sold(1). In the fourth quarter of 2017, total cost of sales was $80,168 or $927 per ounce of gold sold(1). Total cost of sales includes production costs, depreciation and depletion, royalties and selling costs.

·Total cash cost(1) was $610 per ounce of gold sold resulting in an average realized cash margin(1) of $594 per ounce of gold sold. In the comparable period in 2017, total cash cost(1) was $700 per ounce of gold sold resulting in an average realized cash margin(1) of $511 per ounce of gold sold.

·AISC(1) was $784 per ounce of gold sold compared to $893 per ounce of gold sold in the comparable period in 2017.

·Earnings from mine operations(1) of $36,117 for the three months ended December 31, 2018 compared to $26,890 in the comparable period in 2017.

·Net earnings were $2,847 for the three months ended December 31, 2018 compared to a net loss of $2,720 in the comparable period in 2017. Adjusted earnings(1) were $20,177 for the three months ended December 31, 2018 compared to $12,742 in the comparable period in 2017.

·Cash generated by operations was $42,886 for the three months ended December 31, 2018 compared to $33,408 in the comparable period in 2017.

·On December 18, 2018, the Company closed a $480,000 debt facility with a syndicate of financial institutions arranged by the Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC to refinance the existing construction Credit Facility (defined below).

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

3

·On December 18, 2018, the Company repurchased 100% of the callable 8% gold and silver Stream Obligation (defined below) for $237,000.

·The Company reduced total debt by $179,724 with the repurchase of the Stream Obligation and refinancing of the construction Credit Facility and substantially reduced its average financing cost.

H2 2018 guidance

·The Company produced 188,983 ounces of gold in the second half of 2018, achieving 95% of guidance of 200,000 gold ounces.

·The Company achieved its financial guidance of $710 to $770 per ounce of gold sold for the second half of 2018 with AISC(2) of $745 per ounce of gold sold.

FULL-YEAR 2018 SUMMARY

Operational summary(1)

·Production totaled 376,012 ounces of gold and 422,562 ounces of silver. The comparable period for the year ended December 31, 2017 included production for only the six months ended December 31, 2017 as the Company achieved commercial production in the third quarter 2017 on July 1, 2017.

·Mill feed grade averaged 11.9 grams per tonne gold and gold recoveries averaged 97.3% for the year ended December 31, 2018.

·Process plant throughput averaged 2,755 tonnes per day for a total of 1,005,603 tonnes of ore for the year ended December 31, 2018.

Financial summary(1)

·The Company generated revenue of $454,556. Revenue includes a loss on trade receivables at fair value related to provisional pricing adjustments of $3,059. The sale of 367,428 ounces of gold contributed $452,253 of revenue at an average realized price(2) of $1,231 per ounce.

·Total cost of sales, which includes production costs, depreciation and depletion, royalties and selling costs was $303,927 or $827 per ounce of gold sold(2). Total cash cost(2) was $623 per ounce of gold sold resulting in an average realized cash margin(2) of $608 per ounce of gold sold. AISC(2) was $764 per ounce of gold sold.

·As at December 31, 2018, there were 12,055 ounces of gold doré and 4,971 ounces of gold in concentrate in finished goods inventory recorded at cost of $749 per ounce which includes depreciation and depletion.

·Earnings from mine operations(2) of $150,629 for the year ended December 31, 2018.

·Net earnings were $36,620 for the year ended December 31, 2018 compared to a net loss of $16,453 in the comparable period in 2017. Adjusted earnings(2) were $99,349 for the year ended December 31, 2018 compared to $17,426 in the comparable period in 2017.

·Cash generated by operations was $197,244 for the year ended December 31, 2018 compared to $73,321 in the comparable period in 2017.

1  Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017, unless otherwise noted.

2  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

4

KEY OPERATING AND FINANCIAL STATISTICS

The operating and financial data for the periods are as follows:

		For the three months ended			For the year ended
In thousands of USD,		December 31,	December 31,		December 31,	December 31,
except where noted		2018	2017		2018	2017
Operating data(1)
Ore mined	t	283,136	280,671		1,055,208	552,205
Mining rate	tpd	3,078	3,051		2,891	3,001
Ore milled	t	267,048	271,501		1,005,603	532,763
Head grade	g/t Au	11.5	8.2		11.9	9.4
Recovery	%	97.0	95.8		97.3	96.2
Mill throughput	tpd	2,903	2,951		2,755	2,895
Gold ounces produced	oz.	96,342	70,281		376,012	152,484
Silver ounces produced	oz.	113,886	96,004		422,562	179,237
Gold ounces sold	oz.	89,011	86,514		367,428	141,927
Silver ounces sold	oz.	82,380	107,900		372,090	127,746
Financial data
Revenue(1)	$	108,596	107,058		454,556	177,933
Earnings from mine operations(1,2)	$	36,117	26,890		150,629	52,853
Net earnings (loss) for the period	$	2,847	(2,720	)	36,620	(16,453	)
Per share - basic	$/share	0.01	(0.01	)	0.20	(0.09	)
Per share - diluted	$/share	0.01	(0.01	)	0.20	(0.09	)
Adjusted earnings(2)	$	20,177	12,742		99,349	17,426
Per share - basic(2)	$/share	0.11	0.07		0.54	0.10
Total cash and cash equivalents	$	45,407	56,285		45,407	56,285
Cash generated by operating activities	$	42,886	33,408		197,244	73,321
Total assets	$	1,613,418	1,671,537		1,613,418	1,671,537
Long-term debt(3)	$	456,254	293,029		456,254	293,029
Total cash costs(1,2)	$/oz	610	700		623	683
All-in sustaining costs(1,2)	$/oz	784	893		764	852
Average realized price(1,2)	$/oz	1,204	1,211		1,231	1,239
Average realized cash margin(1,2)	$/oz	594	511		608	556

(1)Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017.

(2)Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

(3)Long-term debt does not include the current portions of the Company’s Loan Facility (defined below) and Offtake Obligation (defined below) in the amount of $85,961 as at December 31, 2018.

The following abbreviations were used above: t (tonnes), tpd (tonnes per day), g/t (grams per tonne), Au (gold) and oz (ounces).

5

TABLE OF CONTENTS

FOURTH QUARTER 2018 SUMMARY	3
FULL-YEAR 2018 SUMMARY	4
KEY OPERATING AND FINANCIAL STATISTICS	5
BUSINESS OVERVIEW	7
OPERATING RESULTS	7
2018 GUIDANCE AND PRODUCTION RECONCILIATION	9
2019 OUTLOOK	10
2019 BRUCEJACK MINE DRILL PROGRAM	11
REGIONAL EXPLORATION	12
ADDITIONAL CLAIMS	12
FINANCIAL RESULTS	13
LIQUIDITY AND CAPITAL RESOURCES	20
SUMMARY OF ANNUAL FINANCIAL RESULTS	23
SUMMARY OF QUARTERLY FINANCIAL RESULTS	24
COMMITMENTS	25
CONTINGENCIES	26
OFF-BALANCE SHEET ARRANGEMENTS	28
RELATED PARTY TRANSACTIONS	28
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS	29
CHANGES IN ACCOUNTING POLICIES	30
NEW ACCOUNTING POLICIES	32
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS	35
FINANCIAL INSTRUMENTS	35
EVENTS AFTER REPORTING DATE	38
NON-IFRS FINANCIAL PERFORMANCE MEASURES	38
OUTSTANDING SHARE DATA	43
INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES	43
RISKS AND UNCERTAINTIES	44
STATEMENT REGARDING FORWARD-LOOKING INFORMATION	47

6

BUSINESS OVERVIEW

The Company was incorporated on October 22, 2010 under the laws of the Province of British Columbia and is listed on the Toronto Stock Exchange (TSX.PVG) and New York Stock Exchange (NYSE.PVG). The Company was formed for the acquisition, exploration, development and operation of precious metal resource properties in the Americas.

We operate our 100% owned Brucejack Mine located in northwestern British Columbia. The Brucejack Mine is comprised of four mining leases and six mineral claims totaling 3,304 hectares in area and forms part of our contiguous claims package that comprises over 122,000 hectares. The Brucejack Mine is an intermediate, low-cost, high-grade gold underground mine that started commercial production in July 2017 and achieved steady state production in the second quarter of 2018. Amended permits were received in December 2018 to increase throughput 40% to an annual average of 1.387 million tonnes or 3,800 tonnes per day. Our current focus is the ramp-up of gold production to this rate.

Our exploration and evaluation assets are the Snowfield Project and Bowser Claims. The Snowfield Project mineral claims are in good standing until 2029, and we continue to conduct baseline environmental studies for potential future development of that project. Grassroots exploration is on-going at the Bowser Claims, with several gold prospects identified for further evaluation. The Bowser Claims are in good standing until 2029.

OPERATING RESULTS

Gold and silver production

During the three months ended December 31, 2018, the Brucejack Mine produced 96,342 ounces of gold and 113,886 ounces of silver. Gold production increased 37% compared to the comparable period in 2017 where the Company produced 70,281 ounces of gold. The increase in production was the result of an increase in head grade and recovery.

During the three months ended December 31, 2018, the Company sold 89,011 ounces of gold and 82,380 ounces of silver compared to 86,514 ounces of gold and 107,900 ounces of silver in the comparable period in 2017. The increase in gold ounces sold was the result of increased gold production offset by timing of concentrate sales in 2017.

During the year ended December 31, 2018, the Brucejack Mine produced 376,012 ounces of gold and 422,562 ounces of silver. During the same period, the Company sold 367,428 ounces of gold and 372,090 ounces of silver. The comparable data for the year ended December 31, 2017 included production and sales for only the six months ended December 31, 2017 as the mine commenced commercial production as of July 1, 2017.

As at December 31, 2018, there were 12,055 ounces of gold doré and 4,971 ounces of gold in concentrate in finished goods inventory recorded at cost of $749 per ounce which includes depreciation and depletion.

7

Processing

During the three months ended December 31, 2018, a total of 267,048 tonnes of ore, equivalent to a throughput rate of 2,903 tonnes per day, were processed. This was a decrease from the comparable period in 2017, in which a total of 271,501 tonnes of ore, equivalent to a throughput rate of 2,951 tonnes per day, were processed. The tonnes of ore processed decreased in the period due to permitting restrictions.

During the year ended December 31, 2018, a total of 1,005,603 tonnes of ore, equivalent to a throughput rate of 2,755 tonnes per day, were processed. The comparable data for the year ended December 31, 2017 included production for only the six months ended December 31, 2017 as the mine commenced commercial production as of July 1, 2017.

The mill feed grade averaged 11.5 grams per tonne gold for the quarter compared to 8.2 grams per tonne gold in the comparable period in 2017. The increase in mill feed grade was the result of the improved stope availability and an operational grade control system.

For the year ended December 31, 2018, the mill feed grade averaged 11.9 grams per tonne gold. Gold production reflects the integration of the operational grade control program which comprises drilling, sampling and local modelling. The grade control model continues to be refined as additional operational data becomes available.

Gold recovery for the quarter increased from 95.8% in 2017 to 97.0% in 2018, as a result of mill optimization. Gold recovery was 97.3% for the year ended December 31, 2018.

On December 20, 2017, the Company submitted an application to the BC Ministry of Energy, Mines and Petroleum Resources and the BC Ministry of Environment and Climate Change Strategy to increase the Brucejack Mine production rate from 2,700 tonnes per day to 3,800 tonnes per day.

On December 14, 2018, the Company received the amended permits to increase the Brucejack Mine production rate to 3,800 tonnes per day. The amended permits provide for a 40% production increase to an annual rate of 1.387 million tonnes from 0.99 million tonnes (daily average of 3,800 tonnes from 2,700 tonnes).

Minor mill upgrades to support the production rate increase will be completed during regularly scheduled mill shutdowns in 2019 with a corresponding ramp-up to 3,800 tonnes per day production rate by year end. These upgrades are estimated to cost less than $15,000.

Mining

During the three months ended December 31, 2018, 283,136 tonnes of ore were mined, equivalent to a mining rate of 3,078 tonnes per day compared to 280,671 tonnes of ore, equivalent to a mining rate of 3,051 tonnes per day in the comparable period in 2017.

8

During the year ended December 31, 2018, 1,055,208 tonnes of ore were mined, equivalent to a mining rate of 2,891 tonnes per day. The comparable data for the year ended December 31, 2017 including production for only the six months ended December 31, 2017 as the mine commenced commercial production as of July 1, 2017.

Mine development advanced at a rate of approximately 820 meters per month during the fourth quarter. Mine development will increase to approximately 1,000 meters per month to support the ramp-up to a 3,800 tonnes per day production rate by year end. An updated mine plan is being finalized to support the ramp up and increase production to 3,800 tonnes per day by year end.

Sustaining capital expenditures

During the three months ended December 31, 2018, the Company incurred $3,720 on sustaining capital compared to $4,533 in the comparable period in 2017. Significant sustaining capital expenditures during the period included capitalized development costs, portal rehabilitation and the purchase of drills. In the comparable period in 2017, sustaining capital expenditures were focused on the paste booster station, the grade control sampling station and capitalized development costs.

During the year ended December 31, 2018, the Company incurred $16,533 on sustaining capital. Sustaining capital expenditures included capitalized underground development costs, the purchase of a Smithers warehouse and the installation of ground water wells.

Vertical development costs, such as the costs to build new ventilation raises and access ramps that enable the Company to physically access ore underground on multiple mining levels, are capitalized. All level development is expensed.

2018 GUIDANCE AND PRODUCTION RECONCILIATION

H2 2018 financial guidance

AISC(1) for the second half of 2018 was $745 per ounce of gold sold which was well within our financial guidance range of $710 to $770 per ounce of gold sold.

H2 2018 production guidance

During the fourth quarter, 96,342 ounces of gold was produced for a total of 188,983 ounces of gold production for the second half of 2018, achieving 95% of the second half production guidance of 200,000 to 220,000 ounces. During the first half of 2018, the mine produced over 187,000 ounces of gold achieving gold production guidance of 150,000 to 200,000 ounces.

Stream repurchase and debt refinancing

We repurchased 100% of the precious metals stream and refinanced the existing construction Credit Facility during the fourth quarter without issuing equity.

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

9

2018 Reconciliation

Reconciliation to the Valley of the Kings global resource model for the period January 1, 2018 to December 31, 2018 was approximately 90%. The modeled ounces for the areas mined during 2018 were predicted to be 424,760 ounces (delivered to the mill) at 13.23 grams per tonne and 998,854 tonnes; while the actual ounces for the areas mined were determined to be 384,889 ounces (delivered to the mill) at 11.90 grams per tonne and 1,005,603 tonnes. The reconciliation to the resource model for the period April 1, 2018 to December 31, 2018 improved to approximately 92% when the grade control program became fully operational. The modeled gold ounces for the areas mined for this nine month period were predicted to be 331,672 ounces (delivered to the mill) at 13.08 grams per tonne and 788,480 tonnes; while the actual gold ounces for the areas mined were determined to be 308,073 ounces (delivered to the mill) at 12.88 grams per tonne and 744,160 tonnes. Reconciliation improved in 2018 compared to the period August 1, 2017 to December 31, 2017 when reconciliation to the resource model was approximately 75% to 80%. In 2018, ore was mined from 47 stopes over eight levels from the 1200-meter to the 1410-meter level across a distance ranging 290 meters east to west and 155 meters north to south.

2019 OUTLOOK

2019 production and financial guidance

Gold production at Brucejack for 2019 is expected in the range of 390,000 ounces to 420,000 ounces with gold production guidance accounting for the planned production ramp-up from 2,700 tonnes per day to 3,800 tonnes per day over the course of 2019. Production is expected to average 3,500 tonnes per day in 2019, with production starting the year off at roughly 3,000 tonnes per day and ramping up to 3,800 tonnes per day by year end. Gold grade is expected to average approximately 10.4 grams per tonne over the course of 2019. The lower grade in 2019 reflects the sequencing of stopes in the mine plan to achieve the development ramp up to the 3,800 tonnes per day production rate, working within geotechnical and ventilation constraints. The average gold grade is representative of the areas to be mined in 2019 and is not representative of the estimated life of mine grade, which will be provided in the second quarter (refer to the “Updated mineral resource and mineral reserve estimate” section below). Guidance for 2019 is subject to change contingent on the success of production ramp-up, with grade and tonnes increasing through the second half of the year.

AISC(1) for the 2019 fiscal year is expected to range from $775 per ounce gold sold to $875 per ounce gold sold. AISC(1) includes $15,000 for one-time sustaining capital expenditures such as access road and camp upgrades, an underground maintenance shop and a back-up underground paste booster pump. AISC(1) also includes approximately $23,000 for growth-oriented expenses such as resource expansion drilling and an additional 300 meters per month of underground development associated with the production ramp-up from 2,700 to 3,800 tonnes per day (an increase from 700 meters per month to 1,000 meters per month).

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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Debt and debt reduction

On December 18, 2018, the Company completed a $480,000 Loan Facility with a syndicate of financial institutions to refinance the existing construction Credit Facility. The Loan Facility is comprised of a $250,000 Term Facility (defined below) and a $230,000 Revolving Facility (defined below) which reduces to $200,000 in June 2019.

In December 2018, we reduced our total debt by $179,724 and substantially reduced our cost of debt.

The Company is targeting debt reduction of approximately $140,000 from operating cash flow during 2019, based on a gold price of $1,250 per ounce and a USD:CAD exchange rate of $0.78.

Under the Loan Facility, up to $40,000 is available annually, commencing in 2020, to repurchase shares or pay dividends, subject to compliance with certain financial covenants.

Updated Mineral Resource and Mineral Reserve estimates

Updated Mineral Resource and Mineral Reserve estimates for the Valley of the Kings and an updated life of mine plan for the Brucejack Mine will be provided early in the second quarter of 2019.

A webcast technical session with management is planned to coincide with the release of these updates and will also provide an overview of grade reconciliation, updated geological interpretation and mining initiatives among other things.

2019 BRUCEJACK MINE DRILL PROGRAM

Valley of the Kings Resource Expansion Drilling

The 2019 underground exploration drill program will be primarily focused on expanding the current mineral resource and reserve at the Valley of the Kings. Zones at depth, to the east, west and north-east of the Valley of the Kings resource will be drilled as part of an approximately 70,000-meter drill program planned for 2019.

Areas at depth below, to the east and to the north-east of the currently defined mineral resource are considered highly prospective for additional resource expansion. Previous drilling programs indicated the continuation of high grade gold mineralization vertically below the deposit, as well as to the east. Furthermore, a re-interpretation of previous drill results indicates the presence of a repetition, through faulting, of the key stratigraphy that hosts high-grade gold mineralization in the Valley of the Kings.

Underground Exploration Drilling for Porphyry Source

In 2018, two 1,500-meter holes drilled east from the Valley of the Kings intersected Brucejack-style mineralization throughout (see news release dated June 18, 2018). Drilling demonstrated mineralization continuity between the Valley of the Kings and the Flow Dome Zone, an area approximately 1,000 meters east of the Brucejack Mine.

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In addition, the drilling intersected anomalous copper and molybdenum mineralization, which coupled with mineralogical indicators, suggest proximity to porphyry-style mineralization at depth.  Over the summer of 2018, a surface geophysical program along with mineral chemistry evaluation was conducted to follow-up on the successful underground exploration drilling.

The drill results, along with geophysics and mineral chemistry, are currently being integrated to refine targeting of this zone for subsequent drilling.  Plans are to drill two targeted holes to further test the porphyry potential below the Flow Dome Zone.

Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist, Pretium Resources Inc. is the Qualified Person (“QP”) responsible for the Brucejack Mine grade control program and reconciliation of 2018 production along with the Brucejack Mine resource and exploration drilling, and has reviewed and approved the scientific and technical information contained in this MD&A relating thereto.

Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium Resources Inc. is the QP responsible for Brucejack Mine development, and has reviewed and approved the scientific and technical information contained in this MD&A relating thereto.

REGIONAL EXPLORATION

Results of the 8,000-meter regional exploration drill program conducted on the Bowser Claims confirm the presence of Brucejack style high-grade gold mineralization hosted in broad zones of low-grade stockwork. The drilling also confirmed that the property has potential to host intrusion -related copper-gold mineralization, high-level epithermal mineralization and volcanogenic massive sulphide mineralization similar to the Eskay Creek Mine. Additional drilling is being planned to further evaluate these targets in 2019.

The wholly-owned, approximately 1,200-square-kilometer Bowser Claims, located east of the Brucejack Mine, include the American Creek, Bluffy, and Koopa Zones, along with the newly discovered Upper Kirkham Zone.

Kenneth C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium Resources Inc. is the QP responsible for the regional grass-roots exploration program, and has reviewed and approved the scientific and technical information in this MD&A related thereto.

ADDITIONAL CLAIMS

Our claims also include the Snowfield Project which borders Brucejack to the north and is comprised of one mineral claim with an area of 1,217 hectares. Since we acquired the Snowfield Project in 2010, we have continued to carry out environmental studies in conjunction with Brucejack. Snowfield represents a longer-term gold opportunity for our shareholders.

Our Bowser Claims border Brucejack and Snowfield to the east and are comprised of 337 claims with an area of 120,811 hectares. We continue to carry out grassroots exploration on our Bowser Claims.

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FINANCIAL RESULTS

	For the three months ended						For the year ended
	December 31,			December 31,			December 31,			December 31,
	2018			2017			2018			2017
Revenue	$	108,596		$	107,058		$	454,556		$	177,933
Cost of sales	72,479			80,168			303,927			125,080
Earnings from mine operations	36,117			26,890			150,629			52,853
Corporate administrative costs	6,758			5,702			15,788			18,816
Operating earnings	29,359			21,188			134,841			34,037
Interest and finance expense	(17,733		)	(15,483		)	(66,926		)	(30,655		)
Interest and finance income	950			121			2,728			527
Foreign exchange gain (loss)	(381		)	521			(46		)	667
Loss on financial instruments at fair value	(10,736		)	(8,460		)	(17,113		)	(26,430		)
Earnings (loss) before taxes	1,459			(2,113		)	53,484			(21,854		)
Current income tax expense	(750		)	(1,015		)	(4,196		)	(1,621		)
Deferred income tax (expense) recovery	2,138			408			(12,668		)	7,022
Net earnings (loss) for the year	$	2,847		$	(2,720	)	$	36,620		$	(16,453	)
Other comprehensive earnings (loss), net of tax
Items that will not be reclassified to earnings or loss:
Change in fair value attributable to change in credit risk of financial instruments designated at fair value through profit or loss	688			—			5,543			—
Comprehensive earnings (loss) for the year	$	3,535		$	(2,720	)	$	42,163		$	(16,453	)

Three months ended December 31, 2018 compared to the three months ended December 31, 2017

Net earnings for the three months ended December 31, 2018 were $2,847 compared to a net loss of $2,720 for the comparable period ended December 31, 2017. The increase in net earnings was mainly attributed to an increase in earnings generated from operations offset by an increase in interest and finance expense and an increase in the loss on financial instruments at fair value. Earnings from mine operations were $36,117 for the three months ended December 31, 2018 compared to $26,890 for the three months ended December 31, 2017.

Net comprehensive earnings for the three months ended December 31, 2018 were $3,535 compared to net comprehensive loss of $2,720 for the comparable period ended December 31, 2017. The gain in fair value attributable to the change in credit risk of financial instruments designated at fair value through profit or loss (“FVTPL”) net of deferred tax in the amount of $688, was the result of a decrease in the Company’s credit risk associated with the Stream Obligation.

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Revenue

The Company generated revenue of $108,596 in the fourth quarter, which included $108,311 of revenue from contracts with customers plus a gain on trade receivables at fair value related to provisional pricing adjustments of $285. During the comparable period in 2017, the Company generated revenue of $107,058 which included $104,794 of revenue from contracts with customers plus a gain on trade receivables at fair value related to provisional pricing adjustments of $594.

The Company sold 89,011 ounces of gold in the fourth quarter, at an average realized price(1) of $1,204 per ounce generating $107,161 in revenue from contracts with customers. The Company sold 82,380 ounces of silver generating $1,150 in revenue. Treatment costs and refining charges associated with concentrate sales, in the amount of $4,474, were included within concentrate revenue. The average London Bullion Market Association (“LBMA”) AM and PM market price over the quarter ended December 31, 2018 was $1,227 per ounce.

Cost of sales

Cost of sales for the three months ended December 31, 2018 were $72,479 or $814 per ounce of gold sold(1) compared to $80,168 or $927 per ounce of gold sold(1) in the comparable period in 2017. Cost of sales includes production costs, depreciation and depletion, royalties and selling costs and changes in inventories to reflect the difference between produced and sold ounces. The improvement in cost of sales per ounce of gold sold(1) is primarily the result of higher gold ounces produced.

Production costs

Production costs for the three months ended December 31, 2018 were $52,190 compared to $58,521 in the comparable period in 2017. Production costs include mining, processing, maintenance, site administration costs and site share-based compensation. Production costs decreased due to timing of sales compared to the comparable period (movement of costs in inventory), decreases in consultants and contractors related to surface operations offset by increases in salaries and benefits. During the quarter, costs were incurred for level development at the Brucejack Mine at approximately 820 meters per month.

A majority of production costs were incurred in Canadian dollars. During the three months ended December 31, 2018, the average foreign exchange rate was C$1.3204 to $1.00.

Depreciation and depletion

Depreciation and depletion for the three months ended December 31, 2018 was $16,524 compared to $17,272 in the comparable period in 2017. The decrease in depreciation and depletion is due to timing of sales compared to the comparable period (movement of costs in inventory). The majority of the Company’s depreciation and depletion is determined using the units of production method based on total ounces produced over the estimated proven and probable reserves.

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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Royalties and selling costs

During the three months ended December 31, 2018, the Company incurred $3,283 (2017 — $4,120) in selling costs and $482 (2017 — $255) in royalty expense. Refer to the “Commitments” section of this MD&A. Selling costs included transportation costs which were $3,058 (2017 — $3,502). The decrease in selling costs, including transportation costs were due to a decrease in trucking costs for concentrate inventory.

Total cash cost(1) and AISC(1)

Total cash costs(1) for the three months ended December 31, 2018 were $610 per ounce sold compared to $700 per ounce sold in the comparable period in 2017. Total cash costs improved due to higher gold ounces sold in the period.

AISC(1) for the three months ended December 31, 2018 totaled $784 per ounce sold compared to $893 per ounce sold in the comparable period in 2017. AISC(1) improved due to higher gold ounces sold in the period. Sustaining capital expenditures amounted to $3,720 (including $793 deferred development costs incurred during production).

Corporate administrative costs

Corporate administrative costs for the three months ended December 31, 2018 were $6,758 compared to $5,702 in the comparable period in 2017.

Salaries and benefits for the three months ended December 31, 2018 were $3,387 compared to $2,935 in the comparable period in 2017. The increase in salaries and benefits was due to increased head count in the corporate head office.

Share-based compensation for the three months ended December 31, 2018 was $1,857 compared to $1,766 in the comparable period in 2017. The increase in share-based compensation was due to the timing of vesting for stock options and cash-settled restricted share units.

Interest and finance expense

During the three months ended December 31, 2018, the Company incurred interest and finance expense of $17,733 compared to $15,483 in the comparable period in 2017.

The Company incurred $14,352 (2017 - $13,288) in interest expense related to its $350,000 Credit Facility. The increase in interest expense related to the Credit Facility is the result of a higher loan balance during the period compared to 2017, which included accrued interest of 7.5% per annum. Interest payable associated with the Credit Facility was settled upon repayment.

The Company incurred $1,178 (2017 — nil) in interest expense related to its $480,000 Loan Facility.

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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Interest and finance income

During the three months ended December 31, 2018, the Company earned interest and finance income of $950 compared to $121 in the comparable period in 2017. The increase in interest and finance income was the result of a higher cash and cash equivalents balance throughout the period.

Loss on financial instruments at fair value

In September of 2015, we completed the $540,000 construction financing (the “Construction Financing”) with two lending parties. The financing was comprised of a senior secured term credit facility for $350,000 (the “Credit Facility”), a $150,000 prepayment under the callable gold and silver stream agreement (the “Stream Agreement”) pursuant to which the Company was obligated to deliver, subject to prepayment options, 8% of up to 7,067,000 ounces of refined gold and 8% of up to 26,297,000 ounces of refined silver commencing on January 1, 2020 and a payment of $20,000 (the “Stream Obligation”), and a private placement of our common shares for $40,000.

The Construction Financing included prepayment and term extension options on the Credit Facility, the Offtake Obligation (defined in the “Commitments” section of this MD&A) and the Stream Obligation which were recorded on our statement of financial position at fair value. During the three months ended December 31, 2018, the changes in fair value of the Offtake Obligation and Stream Obligation were a function of decreases in the gold price, decrease in market expectations of future gold prices, gold price volatility, a decrease in interest rates, a decrease in credit spread and changes to the estimated production schedule.

The change in fair value of the Offtake Obligation resulted in a loss of $3,815 (2017 — $2,474). The change in fair value of the Stream Obligation was a loss of $3,904 (2017 - $5,712); of this change in fair value on the Stream Obligation, a fair value loss of $5,277 (2017 - $5,712) was recognized in the statement of earnings (loss) and a fair value gain due to the impact of change in the Company’s credit risk of $1,373 (2017 — nil) was recognized in other comprehensive earnings (loss).

On December 18, 2018, the Company repurchased 100% of the Stream Obligation for $237,000. With the repurchase of the Stream Obligation, the volatility associated with the fair value adjustments on the Stream Obligation will no longer impact the statement of earnings (loss).

The prepayment and extension options in the Credit Facility decreased in value due to a decrease in interest rate and the passage of time resulting in a loss of $1,644 (2017 — $274). As the Credit Facility was refinanced with the Loan Facility, the volatility associated with the fair value adjustments on prepayment and extension options will no longer impact the statement of earnings (loss).

Current and deferred income taxes

The Company is subject to Canadian federal and British Columbia (“BC”) provincial income taxes with an aggregate rate of 27%. The Company is also subject to the BC Mineral Tax, which is accounted for as an income tax. The BC Mineral Tax requires initial payments of 2% of net current proceeds until initial construction tax pools are utilized, after which a rate of 13% applies. The BC

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Mineral Tax is calculated in CAD. As the mine has reached steady-state operations and previously unrecognized tax benefits recorded, the anticipated effective tax rate on mine operating earnings is 36.5% in future periods. Corporate administrative costs, interest and finance expense and other items will be deductible for federal and provincial income taxes only.

For the three months ended December 31, 2018, current income tax expense was $750 related to the 2% net current proceeds portion of the BC Mineral Tax compared to $1,015 in the comparable period in 2017.

For the three months ended December 31, 2018, deferred income tax recovery was $2,138 compared to $408 in the comparable period in 2017.

Year ended December 31, 2018 compared to the year ended December 31, 2017

Net earnings for the year ended December 31, 2018 were $36,620 compared to a net loss of $16,453 for the comparable period ended December 31, 2017. The increase in net earnings (loss) was mainly attributed to earnings generated from mine operations (as the Company did not have mine operations for the entire comparable period as commercial production was achieved on July 1, 2017) and a decrease in the loss on financial instruments at fair value offset by an increase in interest and finance expense and deferred income tax expense. Earnings from mine operations were $150,629 for the year ended December 31, 2018 compared to $52,853 for the comparable period ended in 2017.

Net comprehensive earnings for the year ended December 31, 2018 were $42,163 compared to net comprehensive loss of $16,453 for the comparable period ended December 31, 2017. The gain in fair value attributable to the change in credit risk of financial instruments designated at FVTPL net of deferred tax in the amount of $5,543, was the result of a decrease in the Company’s credit risk associated with the Stream Obligation.

Revenue

The Company generated revenue of $454,556 for the year ended December 31, 2018, which included $457,615 of revenue from contracts with customers less a loss on trade receivables at fair value related to provisional pricing adjustments of $3,059. The comparable data for the year ended December 31, 2017 included sales and cost of sales for only the six months ended December 31, 2017 as the mine commenced commercial production as of July 1, 2017.

The Company sold 367,428 ounces of gold in the year ended December 31, 2018, at an average realized price(1) of $1,231 per ounce generating $452,253 in revenue from contracts with customers. The Company sold 372,090 ounces of silver generating $5,362 in revenue. Treatment costs and refining charges associated with concentrate sales, in the amount of $17,074, were included within concentrate revenue. The average LBMA AM and PM market price over the year ended December 31, 2018 was $1,269 per ounce.

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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Cost of sales

Cost of sales for the year ended December 31, 2018 were $303,927 or $827 per ounce of gold sold(1). Cost of sales includes production costs, depreciation and depletion, royalties and selling costs and changes in inventories to reflect the difference between produced and sold ounces.

Production costs

Production costs for the year ended December 31, 2018 were $216,933. Production costs include mining, processing, maintenance, site administration costs and site share-based compensation. During the year ended December 31, 2018, costs were incurred for level development at the Brucejack Mine at approximately 790 meters per month.

A majority of production costs were incurred in Canadian dollars. During the year ended December 31, 2018, the average foreign exchange rate was C$1.2957 to $1.00.

Depreciation and depletion

Depreciation and depletion for the year ended December 31, 2018 was $67,340. The majority of the Company’s depreciation and depletion is determined using the units of production method based on total ounces produced over the estimated proven and probable reserves.

Royalties and selling costs

During the year ended December 31, 2018, the Company incurred $18,758 in selling costs and $896 in royalty expense. Selling costs included transportation costs which were $17,383.

Total cash costs(1) and AISC(1)

Total cash costs(1) for the year ended December 31, 2018 were $623 per ounce sold. AISC(1) for the year ended December 31, 2018 totaled $764 per ounce sold. Sustaining capital expenditures amounted to $16,533 (including $3,241 deferred development costs incurred during production).

Corporate administrative costs

Corporate administrative costs for the year ended December 31, 2018 were $15,788 compared to $18,816 in the comparable period in 2017.

Salaries and benefits for the year ended December 31, 2018 were $6,026 as compared to $9,710 in the comparable period in 2017. The decrease was primarily due to $4,469 expensed in the comparable period related to the retirement allowance clause in the employment agreement executed with the Executive Chairman; refer to the “Related Party Transactions” section below. This was offset by an increase in headcount at the corporate head office.

Share-based compensation for the year ended December 31, 2018 was $4,140 compared to $4,846 in the comparable period in 2017. The decrease in share-based compensation was due to the decrease in the Company’s share price used to value cash-settled restricted share units.

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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Interest and finance expense

During the year ended December 31, 2018, the Company incurred interest and finance expense of $66,926 compared to $30,655 in the comparable period in 2017. All interest and finance expenses incurred prior to July 1, 2017 were capitalized as borrowing costs to the Brucejack Mine.

The Company incurred $56,834 in interest expense related to the Credit Facility. The 7.5% per annum cash interest payable associated with the Credit Facility was settled upon repayment in December 2018.

The Company incurred $7,818 in interest expense related to the convertible notes of which $2,250 was interest at a rate of 2.25% per annum and $5,568 was accretion of the convertible notes. During the year ended December 31, 2018, the Company paid interest in the amount of $2,250 to the holders of the convertible notes.

Interest and finance income

During the year ended December 31, 2018, the Company earned interest and finance income of $2,728 compared to $527 in the comparable period in 2017. The increase in interest and finance income was the result of a higher cash and cash equivalents balance throughout the period and in the comparable period, interest income earned on proceeds from the Construction Financing and convertible notes were capitalized to mineral properties, plant and equipment.

Loss on financial instruments at fair value

The Construction Financing includes prepayment and term extension options on the Credit Facility, the Offtake Obligation and the Stream Obligation which are recorded on our statement of financial position at fair value. During the year ended December 31, 2018, the changes in fair value of the Offtake Obligation and Stream Obligation were a function of decreases in the gold price, decrease in market expectations of future gold prices, gold price volatility, a decrease in interest rates, a decrease in credit spread and changes to the estimated production schedule.

The change in fair value of the Offtake Obligation resulted in a gain of $3,593 in 2018 (2017 — loss of $11,926). The change in fair value of the Stream Obligation was a loss of $12,980 (2017 - $23,000); of this change in fair value on the Stream Obligation, a fair value loss of $20,574 (2017 - $23,000) was recognized in the statement of earnings (loss) and a fair value gain due to the impact of change in the Company’s credit risk of $7,594 (2017 — nil) was recognized in other comprehensive earnings (loss).

The prepayment and extension options in the Credit Facility decreased in value due to an increase in interest rate and the passage of time, resulting in a loss of $132 (2017 — $1,624).

Current and deferred income taxes

For the year ended December 31, 2018, current income tax expense was $4,196 related to the 2% net current proceeds portion of the BC Mineral Tax compared to $1,621 in the comparable period in 2017.

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During the year ended December 31, 2018, our effective tax rate was 31.5%. Excluding the effect of foreign exchange on our BC Mineral Tax pools and the benefit of the Offtake Obligation for BC Mineral Tax, our effective tax rate was 28.6%. This rate is lower than our expected steady state operations rate as a function of the recognition of previously unrecognized income tax benefits during the period. All of our previously unrecognized income tax attributes were recognized during the year. We will also continue to experience effective tax rate volatility from the CAD to USD foreign exchange on our BC Mineral Tax pools until those pools are fully utilized.

LIQUIDITY AND CAPITAL RESOURCES

The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly. The Company monitors forecasts of the Company’s liquidity in the form of cash and cash equivalents and requirements to ensure it has sufficient cash to meet operational needs.

Factors that can impact the Company’s liquidity are monitored regularly and include assumptions of gold market prices, foreign exchange rates, production levels, operating costs and capital costs. Contractual obligations and other commitments that could impact the Company’s liquidity are detailed in the “Commitments” section of this MD&A. We prepare annual expenditure budgets that are approved by the Board of Directors.

Our capital structure consists of debt instruments, convertible debt instruments and equity attributable to common shareholders comprised of issued share capital, contributed surplus, accumulated comprehensive loss and accumulated deficit.

Liquidity and capital resources

Debt financing

On December 18, 2018, the Company completed a $480,000 senior secured loan facility (“Loan Facility”) with a syndicate of financial institutions arranged by the Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC. Pursuant to its terms, the Loan Facility is comprised of a $250,000 senior secured amortizing non-revolving credit facility (the “Term Facility”) and a $230,000 senior secured revolving credit facility (the “Revolving Facility”). The term of the Loan Facility is four years with a maturity date of December 18, 2022. The Loan Facility was fully drawn as at December 31, 2018.

The Term Facility is available by way of USD LIBOR loans, with an interest rate ranging from 2.5% to 3.5% over LIBOR based on the Company’s net leverage ratio or USD base rate loans with an interest rate ranging from 1.5% to 2.5% over the administrative agent’s base rate. The Revolving Facility is also available in various other forms, including Canadian prime loans, bankers’ acceptances, bankers’ acceptance equivalent loans and letters of credit.

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The Term Facility will be repaid in equal quarterly installments of principal in the amount of $16,667 commencing at the end of the second quarter of 2019. The Revolving Facility requires a principal repayment of $30,000 on June 18, 2019, reducing the Revolving Facility to $200,000. The remaining principal of the Revolving Facility will be repaid as a bullet payment in full on the maturity date.

The Loan Facility includes standard and customary finance terms and conditions with respect to, among others, fees, representations, warranties, and covenants which, if not met, could result in an event of default. The financial covenants under the Loan Facility include maintenance of a minimum interest coverage ratio of 4.00:1.00 and a maximum leverage ratio of 3.50:1.00, and minimum tangible net worth and liquidity thresholds. The Company is in compliance with all financial and operating covenants under the Loan Facility as at the date of this MD&A.

The Loan Facility was used to refinance the Credit Facility in the amount of $422,724. The additional funds from the Loan Facility and cash on hand generated from operating activities were used to repurchase the Stream Obligation for $237,000 and for working capital.

Based on management’s cash flow projections, the Company expects that future operating and debt settlement requirements will be satisfied from operating cash flows.

Working capital(1)

Our cash and cash equivalents as at December 31, 2018 totaled $45,407, decreasing by $10,878 from $56,285 as at December 31, 2017. The decrease in cash was attributable the repurchase of the Stream Obligation offset by cash flows generated from operations of the Brucejack Mine.

The Company has a working capital(1) deficit of $48,163 as at December 31, 2018 compared a deficit of $334,409 as at December 31, 2017. Management believes future cash flows from operations and, where appropriate, selected financing sources, are sufficient to fund our operations, as well as other planned and foreseeable commitments currently estimated for 2019. These commitments include minor mill upgrades, which are estimated to cost less than $15,000 to support the production rate increase to 3,800 tonnes per day. With respect to medium- and longer-term capital requirements, management believes that operating cash flow, the Company’s active management of its operations and development activities, and where appropriate, capital available through financing sources such as debt funding, will enable the Company to meet such capital requirements.

We generated cash from operations of $197,244 for the year ended December 31, 2018 compared to $73,321 in the comparable period in 2017. For the year ended December 31, 2018, the Company delivered 371,223 ounces of gold pursuant to its Offtake Obligation. The settlement of gold ounces resulted in a decrease in the Offtake Obligation of $4,423 (2017 — $1,543) due to the realized loss attributable to the final settlement price in the defined pricing period and the gold spot price on the date of delivery.

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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Working capital(1) items other than cash and cash equivalents and the current portion of long-term debt consisted of inventories of $24,751 (valued at cost) and receivables and other of $18,312 offset by accounts payable and accrued liabilities of $50,672.

Inventory is comprised of $12,745 in finished metal, $11,548 in materials and supplies inventory and $458 in in-circuit inventory. Receivables and other is comprised primarily of $14,487 of trade receivables, $3,332 of prepayments and deposits and $420 of Goods and Services Tax refunds.

Accounts payable and accrued liabilities includes the employee benefit liability of $4,398 and the current portion of the restricted share unit liability of $948. Accounts payable and accrued liabilities also includes $7,158 of remaining construction related payables and holdbacks.

During the year ended December 31, 2018, the exercise of share options awards provided us with $8,353 (2017 — $13,894) of additional liquidity.

Additional sources of capital

A private placement of 227,273 flow-through common shares of the Company at a price of C$13.20 per flow-through share was completed on July 25, 2018 for total gross proceeds of approximately C$3,000. The gross proceeds from such financing were used to fund a portion of the 2018 grass-roots exploration program, which qualifies as “flow through mining expenditures” under the Income Tax Act (Canada).

A private placement of 329,000 flow-through common shares of the Company at a price of C$15.20 per flow-through share was completed in two tranches on June 30 and July 14, 2017 for total gross proceeds of $3,891 (C$5,001). The gross proceeds from such financing must be used to incur “Canadian exploration expenditures”, as defined in the Income Tax Act (Canada). As at December 31, 2018, the Company used the full amount of the gross proceeds to incur “flow through mining expenditures”, as defined in the Income Tax Act (Canada).

Cash flows

The Company’s cash flows from operating, investing and financing activities are summarized in the following table for the three months and year ended December 31, 2018:

	For the three months ended						For the year ended
In thousands of USD	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Cash flow information
Cash generated by operations	$	42,886		$	33,408		$	197,244		$	73,321
Cash used in investing activities	(2,759		)	(36,392		)	(27,334		)	(370,501		)
Cash generated by (used in) financing activities	(183,756		)	6,059			(179,398		)	209,036
Effect of foreign exchange rate changes on cash and cash equivalents	(1,282		)	(564		)	(1,390		)	2,638
Change in cash and cash equivalents	$	(144,911	)	$	2,511		$	(10,878	)	$	(85,506	)

1  Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

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The Company generated $197,244 in operating cash flows for the year ended December 31, 2018 compared to $73,321 for the comparable period in 2017. The increased cash flows generated from operations relates to the financial results from operations of the Brucejack Mine for an annual period compared to a six-month period in 2017, as the Brucejack Mine achieved commercial production on July 1, 2017.

Cash used in investing activities for the year ended December 31, 2018 was $27,334 (2017 - $370,501). For the year ended December 31, 2018, cash used in investing activities was related to sustaining capital expenditures, exploration and evaluation expenditures and the payment of construction-related payables. In the comparable period in 2017, there was a significantly higher level of activity as the Company completed payments for construction and development of the Brucejack Mine.

The Company used $179,398 in financing cash flow for the year ended December 31, 2018 (2017 — generated $209,036). For the year ended December 31, 2018, the Company closed the Loan Facility for net proceeds of $472,384 which was used to repay its Credit Facility of $422,724 (principal and accrued interest). With cash available from operating activities and with additional funds from the Loan Facility, we repurchased the Stream Obligation for $237,000. In the comparable period in 2017, the Company completed the final draw on the Credit Facility of $97,000 and completed a convertible note financing for $95,795.

SUMMARY OF ANNUAL FINANCIAL RESULTS

	For the year ended
In thousands of USD, except per share data	December 31, 2018		December 31, 2017			December 31, 2016
Revenue	$	454,556	$	177,933		$	—
Earnings from mine operations(1)	150,629		52,853			—
Net earnings (loss)	36,620		(16,453		)	(61,212		)
Net comprehensive earnings (loss)	42,163		(16,453		)	(40,621		)
Earnings (loss) per share - basic	0.20		(0.09		)	(0.35		)
Earnings (loss) per share - diluted	0.20		(0.09		)	(0.35		)
Total assets	1,613,418		1,671,537			1,450,436
Long-term liabilities(2)	573,659		388,558			514,835
Cash dividends	—		—			—
Cash and cash equivalents	45,407		56,285			141,791
Mineral properties, plant and equipment	1,522,919		1,564,860			1,270,457

(1)Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

(2)Long-term liabilities do not include the current portions of the Loan Facility and Offtake Obligation in the amount of $85,961 as at December 31, 2018.

On July 1, 2017, the Company achieved commercial production at the Brucejack Mine. As a result, the Company generated revenue from the sale of gold and silver for the first time in 2017. In 2016, there was no revenue as we were in the construction phase of the Brucejack Mine.

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SUMMARY OF QUARTERLY FINANCIAL RESULTS

The following table contains selected quarterly information derived from the Company’s unaudited quarterly financial statements which are reported under IFRS applicable to interim financial reporting.

In thousands of USD,	2018		2018		2018		2018			2017			2017			2017			2017
except per share data	Q4		Q3		Q2		Q1			Q4			Q3			Q2			Q1
Revenue	$	108,596	$	110,060	$	146,478	$	89,422		$	107,058		$	70,875		$	—		$	—
Earnings from mine operations(1)	$	36,117	$	37,608	$	60,070	$	16,834		$	26,890		$	25,963		$	—		$	—
Net earnings (loss)	$	2,847	$	10,734	$	31,097	$	(8,058	)	$	(2,720	)	$	(6,975	)	$	(2,495	)	$	(4,263	)
Comprehensive earnings (loss)	$	3,535	$	11,725	$	33,023	$	(6,120	)	$	(2,720	)	$	(6,975	)	$	(2,495	)	$	(4,263	)
Earnings (loss) per share -
Basic	$	0.01	$	0.06	$	0.17	$	(0.04	)	$	(0.01	)	$	(0.04	)	$	(0.01	)	$	(0.03	)
Diluted	$	0.01	$	0.06	$	0.17	$	(0.04	)	$	(0.01	)	$	(0.04	)	$	(0.01	)	$	(0.03	)
Total assets	$	1,613,418	$	1,771,543	$	1,731,950	$	1,678,657		$	1,671,537		$	1,673,601		$	1,649,593		$	1,633,083
Long-term liabilities(2)	$	573,659	$	178,088	$	408,597	$	395,208		$	388,558		$	736,582		$	709,269		$	688,617
Cash dividends	$	—	$	—	$	—	$	—		$	—		$	—		$	—		$	—
Cash and cash equivalents	$	45,407	$	190,318	$	142,495	$	70,540		$	56,285		$	53,774		$	55,311		$	171,945
Mineral properties, plant and equipment	$	1,522,919	$	1,534,908	$	1,542,419	$	1,556,945		$	1,564,860		$	1,566,889		$	1,558,652		$	1,435,202

(1)Refer to the “Non-IFRS Financial Performance Measures” section for a reconciliation of these amounts.

(2)Long-term liabilities do not include the current portions of the Loan Facility and Offtake Obligation in the amount of $85,961 as at December 31, 2018.

On July 1, 2017, the Company achieved commercial production at the Brucejack Mine. As a result, in the third quarter of 2017, the Company generated revenue from the sale of gold and silver for the first time. In the periods prior to the third quarter of 2017, there was no revenue as we were in the construction phase at the Brucejack Mine.

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COMMITMENTS

The following table provides our contractual obligations as of December 31, 2018:

In thousands of USD	1 year		2-3 years		4-5 years		More than 5 years		Total
Operating activities:
Decommissioning and restoration provision	$	422	$	51	$	—	$	18,474	$	18,947
Operating leases	4,571		7,649		1,462		122		13,804
Purchase commitments	5,568		—		—		—		5,568
Finance lease obligation	277		527		35		—		839
Financing activities:
Principal repayments on Loan Facility	80,000		133,333		266,667		—		480,000
Repayment of convertible notes	2,250		4,500		101,116		—		107,866
Interest payments on Loan Facility(1)	25,186		35,890		12,041		—		73,117
	$	118,274	$	181,950	$	381,321	$	18,596	$	700,141

(1)Interest payments on Loan Facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the Loan Facility.

Commitments — Brucejack Mine

The Company and the Nisga’a Nation have entered into a comprehensive Cooperation and Benefits Agreement in respect of the Brucejack Mine. Under the terms of this agreement, the Nisga’a Nation will provide ongoing support for the development and operation of Brucejack with participation in its economic benefits.

The Brucejack Mine is subject to a 1.2% net smelter returns royalty (“1.2% NSR Royalty”) on production in excess of cumulative 503,386 ounces of gold and 17,907,080 ounces of silver. The gold ounce production threshold for the 1.2% NSR Royalty was met in December 2018. For the year ended December 31, 2018, $258 (2017 — nil) was expensed to royalties and selling costs in the statement of earnings (loss).

Commitments — Offtake Obligation

Under the offtake agreement dated September 15, 2015 entered into by the Company in connection with the Construction Financing (the “Offtake Agreement”), we are obligated to sell 100% of refined gold up to 7,067,000 ounces to the offtake counterparties (the “Offtake Obligation”). The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale.

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CONTINGENCIES

The Company is involved in various claims, litigation and other matters in the ordinary course and conduct of business. Some of these pending matters will take a number of years to resolve. While it is not possible to determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such outcomes, it is the Company’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its consolidation financial position or results of operations.

Class action lawsuits

Canadian class action

On October 29, 2013, David Wong, a shareholder of the Company, filed a proposed class action against the Company, Robert Quartermain (a director, and the President and the CEO of the Company at such time) and Snowden Mining Industry Consultants Ltd. (the “Wong Action”). The Wong Action was filed in the Ontario Superior Court of Justice.

The Wong Action alleges that the price of our shares on the TSX and NYSE suffered a significant drop in value following the announcement on October 9, 2013 of the resignation of Strathcona Mineral Services Ltd. (“Strathcona”), the consultant responsible for overseeing and reporting on the 10,000-tonne bulk sample, and the announcement of Strathcona’s reasons for resigning on October 22, 2013.

The Wong Action claims C$60,000 in general damages on behalf of a class of persons who acquired the Company’s securities between July 23, 2013 and October 21, 2013. Snowden Mining Industry Consultants Ltd. is no longer a defendant in the Wong Action.

The plaintiff in the Wong Action brought a motion for leave to commence an action under the secondary market provisions in Part XXIII.1 of the Ontario Securities Act. The motion was heard on May 29 and 30, 2017. The Court allowed the plaintiff’s motion on July 20, 2017. The Company was denied leave to appeal this decision. The Company and Robert Quartermain consented to, and on January 23, 2019 the Court granted, an order certifying the Wong Action as a class proceeding pursuant to the Class Proceedings Act (Ontario).

The Company believes that the allegations made against it in the Wong Action are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for the Wong Action.

2013 United States of America Class Actions

Between October 25, 2013 and November 18, 2013, five putative class action complaints were filed in the United States against the Company and certain of its officers and directors, alleging that defendants violated the United States securities laws by misrepresenting or failing to disclose material information concerning the Brucejack Mine. All five actions were filed in the United States District Court for the Southern District of New York (the “District Court”).

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In January 2014, the District Court ordered that these actions be consolidated into a single action, styled In re Pretium Resources Inc. Securities Litigation, Case No. 13-CV-7552. The District Court appointed as lead plaintiffs in the consolidated action three individuals who are suing on behalf of a putative class of shareholders who purchased or otherwise acquired the Company’s common shares between June 11, 2013 and October 22, 2013.

In March 2014, the plaintiffs filed a consolidated amended class action complaint, which the Company moved to dismiss in May 2014. In July 2014, the plaintiffs filed a second consolidated amended class action complaint (“Second Amended Complaint”). The Company moved to dismiss the Second Amended Complaint on September 5, 2014. Plaintiffs filed their Opposition to the Company’s Motion to Dismiss on October 20, 2014, and the Company filed a reply brief on November 19, 2014.

In June 2017, the District Court granted the Company’s Motion to Dismiss the Second Amended Complaint. The District Court ruled in favour of the Company and the officers and directors named as defendants on all claims and ordered the case closed. The plaintiffs filed their Notice of Appeal from the decision to the United States Court of Appeals for the Second Circuit (the “Second Circuit”) on July 10, 2017. The plaintiffs’ opening brief on appeal was filed on October 2, 2017. The Company filed its response brief on December 8, 2017 and the plaintiffs filed their reply brief on December 22, 2017. Oral argument on the plaintiffs’ appeal was heard by the Second Circuit on March 16, 2018.

On May 1, 2018, the Second Circuit affirmed the District Court’s order dismissing the plaintiffs’ Second Amended Complaint in its entirety for failure to state a claim under the United States securities laws. The deadline for the plaintiffs to file a petition for certiorari to the United States Supreme Court passed on July 30, 2018, without the plaintiffs seeking leave to appeal. As a result, the Second Circuit’s decision affirming the District Court’s order dismissing the plaintiffs’ Second Amended Complaint is final for all purposes.

2018 United States of America Class Actions

Two putative class action complaints were filed against the Company and certain of its officers in the United States District Court for the Southern District of New York, one on September 7, 2018 and the other on October 19, 2018. The complaints have been filed on behalf of an alleged class of all persons and entities who purchased or acquired shares of the Company between July 21, 2016 and September 6, 2018, and relate to public disclosures of the Company made between July 2016 and September 2018 regarding the Brucejack Mine. The Company has been served with one of the two complaints. Aurico Gold Fund LP has filed a motion to consolidate the two cases, appoint itself as lead plaintiff, and approve lead plaintiff’s selection of counsel. The Company has retained legal counsel in connection with these matters.

The Company believes that the allegations made against it and its officers in the aforementioned complaints are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for these complaints.

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Construction claims

On April 24, 2017, Bear Creek Contracting Ltd. (“Bear Creek”) filed a Notice of Civil Claim against the Company (the “Bear Creek Action”) alleging that the Company owes Bear Creek C$14,563 in general damages in connection with work undertaken at the Brucejack Mine transmission line. The Bear Creek Action was filed in the Supreme Court of British Columbia.

The Company filed a Response to Civil Claim on July 31, 2017, opposing all of the claims and allegations made. Notices of Civil Claim have also been filed by Blue Max Drilling Inc. (April 24, 2017), More Core Diamond Drilling Services Ltd. (March 27, 2017), and Lakelse Air Ltd. (February 23, 2018) who were subcontractors working under Bear Creek. Responses to Civil Claim have been filed in those actions and the claims are understood to be subsumed in the amount claimed by Bear Creek. It is expected that the four actions will be joined.

The Company believes that the allegations made against it in the Bear Creek Action, and the other actions, are meritless and will vigorously defend the matter, although no assurance can be given with respect to the ultimate outcome of such proceedings. The Company has not accrued any amounts for any of the actions.

OFF-BALANCE SHEET ARRANGEMENTS

The Company does not have any off-balance sheet arrangements.

RELATED PARTY TRANSACTIONS

Other than as expressed herein, and remuneration of key management personnel and the Board of Directors, in the ordinary course of their employment or directorship, as applicable, we had no transactions with related parties as defined in IAS 24, Related Party Disclosures.

We have entered into employment agreements with each of our Executive Chairman (our “Exec Chair”), our President and Chief Executive Officer (our “CEO”), our Executive Vice President and Chief Financial Officer (our “CFO”), our Vice President, Operations (our “VP Ops”), our Vice President and Chief Exploration Officer (our “CExO) and our Executive Vice President, Corporate Affairs and Sustainability (our “EVP Corporate”).

Under his employment agreement, the Exec Chair is entitled to a retirement allowance which remains due and payable in full in the event the Exec Chair terminates his employment with the Company. During the first quarter of 2017, the entire retirement allowance was expensed in the amount of $4,469 (C$6,000). The retirement allowance remains a current liability as at December 31, 2018. The Exec Chair is also entitled, on termination without cause, including following a change of control, to twenty-four months’ salary, the retirement allowance and twice the target bonus.

Effective January 1, 2018, under the employment agreements, the CEO, CFO, VP Ops, CExO and EVP Corporate receive a base salary, extended benefits and are eligible for an annual performance-based bonus and long-term incentive awards determined at the discretion of our Board of Directors.

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The CEO, CFO, VP Ops, CExO and EVP Corporate are also entitled, on termination without cause, including following a change of control, to twenty-four months’ salary and twice the average annual performance bonus earned in the three years immediately preceding termination.

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of financial statements requires the use of accounting estimates. It also requires management to exercise judgment in the process of applying its accounting policies. Estimates and judgments are regularly evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. The following discusses the most significant accounting judgments and accounting estimates that the Company has made in the preparation of the financial statements including those that could result in a material effect in the next financial year on the carrying amounts of assets and liabilities.

Key sources of accounting policy judgment

Impairment of mineral properties, plant and equipment

The application of the Company’s accounting policy for impairment of mineral properties, plant and equipment requires judgment to determine whether indicators of impairment exist. The review of impairment indicators includes consideration of both external and internal sources of information, including factors such as market and economic conditions, metal prices and forecasts, capital expenditure requirements, future operating costs and production volumes. Management has assessed impairment indicators on the Company’s mineral properties, plant and equipment and has concluded that no impairment indicators exist as of December 31, 2018.

Impairment of exploration and evaluation assets

The application of the Company’s accounting policy for impairment of exploration and evaluation assets requires judgment to determine whether indicators of impairment exist including factors such as, the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further exploration and evaluation of resource properties are budgeted and evaluation of the results of exploration and evaluation activities up to the reporting date. Management has assessed impairment indicators on the Company’s exploration and evaluation assets and has concluded that no impairment indicators exist as of December 31, 2018.

Estimation uncertainty

Mineral reserves and resources

The Company estimates its mineral reserves and resources based on information compiled by qualified persons as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects requirements. The estimation of mineral reserves and resources requires judgment to interpret available geological data, select an appropriate mining method and establish an extraction schedule. It also requires assumptions about future commodity prices,

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exchange rates, production costs and recovery rates. There are uncertainties inherent in estimating mineral reserves and resources and assumptions that are valid at the time of estimation may change significantly when new information becomes available. New geological data as well as changes in the above assumptions may change the economic status of reserves and may, ultimately, result in the reserves being revised.

Changes in the proven and probable mineral reserves and measured and indicated and inferred mineral resources estimates may impact the carrying value of mineral properties, plant and equipment, the calculation of depletion and depreciation expense and measurement of the decommissioning and site restoration provision.

Fair value of derivatives and other financial liabilities

The fair values of financial instruments that are not traded in an active market are determined using valuation techniques. Management uses its judgment to select a method of valuation and makes estimates of specific model inputs that are based on conditions existing at the end of each reporting period.

The valuation of the convertible notes at inception was completed using a discounted cash flow analysis that required various estimates and assumptions, including the discount rate for a similar non-convertible instrument.

CHANGES IN ACCOUNTING POLICIES

The Company has adopted IFRS 9, Financial Instruments (“IFRS 9”) effective January 1, 2018. IFRS 9 replaces the provisions of IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”) that relate to the recognition, classification and measurement of financial assets and financial liabilities, de-recognition of financial instruments, impairment of financial assets and hedge accounting.

Classification of financial assets and financial liabilities

IFRS 9 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or FVTPL. The classification of financial assets under IFRS 9 is generally based on the business model in which the financial asset is managed and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available for sale. The Company did not have any items classified as held to maturity or available for sale. Items classified as loans and receivables were recorded under IFRS 9 at amortized cost. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the financial instrument as a whole is assessed for classification.

IFRS 9 retains the existing requirements in IAS 39 for the classification of financial liabilities. Under IAS 39, all fair value changes on liabilities designated under the fair value option were recognized in earnings (loss). Under IFRS 9, those fair value changes are generally presented as follows: (i) the amount that is attributable to changes in the credit risk of the liabilities is presented

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in other comprehensive income (loss) (“OCI”) and (ii) the remaining amount of change in the fair value is presented in earnings (loss).

Impairment of financial assets

IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss (“ECL”) model which is based on forward looking changes in credit quality since initial recognition. The ECL model requires judgment as to how changes in economic factors affect ECLs, which are determined on a probability-weighted basis.

The new impairment model applies to financial assets measured at amortized cost and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlier than under IAS 39.

Transition to IFRS 9

In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated. On adoption of IFRS 9, there were no differences in the carrying amounts of the Company’s financial assets and financial liabilities. There was a presentation change related to changes in fair value of the Company’s stream obligation which resulted in a reclassification of $7,901 ($5,768 net of deferred tax) from deficit to accumulated other comprehensive earnings (loss) (“AOCI”) at January 1, 2018.

IFRS 9 requires the gain or loss associated with changes in the fair value of the stream be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

To determine the cumulative impact of changes in the credit risk of the liability upon the adoption of IFRS 9, the Company compared the fair value of the pre-payable financial liability, excluding the gold and silver embedded derivatives, with a comparable value derived by substituting the current credit risk assumption with that used by the Company in determining the fair value of the stream at inception.

As a result of an overall reduction in the Company’s credit risk since inception, the Company reclassified $7,901 ($5,768 net of deferred tax) from deficit to AOCI at January 1, 2018. As the stream obligation was repaid pursuant to its contractual terms (including the prepayment options), the remaining balance in AOCI of $307 ($225 net of deferred tax) will not reverse.

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The following table shows the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at January 1, 2018.

	2017 classification under IAS 39	2018 classification under IFRS 9	2017 carrying amount under IAS 39		2018 carrying amount under IFRS 9
Financial assets
Cash and cash equivalents	Loans and receivables	Amortized cost	$	56,285	$	56,285
Trade receivables	Loans and receivables with embedded derivatives	FVTPL	11,067		11,067
Other assets	FVTPL	FVTPL	132		132
Restricted cash	Loans and receivables	Amortized cost	5,036		5,036
Financial liabilities
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities	$	53,436	$	53,436
Restricted share unit liability	FVTPL	FVTPL	2,730		2,730
Senior secured term credit facility	Other financial liabilities	Other financial liabilities	365,890		365,890
Offtake obligation	FVTPL	FVTPL	78,085		78,085
Stream obligation	FVTPL	FVTPL (1)	224,020		224,020
Debt portion of convertible note	Other financial liabilities	Other financial liabilities	76,582		76,582

(1)The fair value changes associated with the Stream Obligation attributable to the changes in the credit risk is presented in OCI and the remaining amount of the change in the fair value is presented in earnings (loss).

NEW ACCOUNTING POLICIES

Our significant accounting policies are presented in Note 3 to the audited consolidated financial statements for the years ended December 31, 2018 and 2017. New accounting policies adopted during the period related to the Company’s adoption of IFRS 9.

Financial instruments

The following accounting policies reflect the Company’s adoption of IFRS 9 effective January 1, 2018.  For the 2017 year the Company applied policies based on IAS 39.  The effects of the transition from IAS 39 to IFRS 9 are described in the “Changes in Accounting Policies” section of this MD&A.

Financial assets — Classification

Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or FVOCI. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in earnings (loss) or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI.

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The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Financial assets — Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in earnings (loss).

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

·Amortized cost — Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method.

·FVOCI — Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance (expense) income using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange (loss) gain and impairment expenses in other expenses.

·FVTPL — Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of earnings (loss) within other gains (losses) in the period in which it arises.

Changes in the fair value of financial assets at FVTPL are recognized in loss on financial instruments at fair value in the statement of earnings (loss) as applicable.

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Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk.

Cash and cash equivalents and restricted cash

Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Restricted cash is held at major financial institutions as collateral for reclamation and surety bonds. Cash and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method.

Receivables and other

The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue.

Accounts payable and accrued liabilities and debt

Accounts payable and accrued liabilities, the debt portion of the convertible notes and the Credit Facility and the Loan Facility are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method.

Derivatives

Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts, such as the offtake obligation and Stream Obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative.

Stream Obligation

The Company has determined the Stream Obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to classify and measure the entire hybrid Stream Obligation as a financial liability carried at fair value with changes in fair value recorded through earnings (loss). IFRS 9 requires the gain or loss associated with changes in the fair value of the Stream Obligation be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

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NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS

New accounting standards and recent pronouncements were disclosed in Note 5 of the audited consolidated financial statements for the years ended December 31, 2018 and 2017. The following new standard is expected to have an effect on the consolidated financial statements:

IFRS 16, Leases (“IFRS 16”)

IFRS 16 addresses accounting for leases and lease obligations. It replaces the existing leasing guidance in IAS 17, Leases. The objective of the new standard is to report all leases on the statement of financial position and to define how leases and lease liabilities are measured. IFRS 16 is effective from January 1, 2019 and must be applied retrospectively, subject to certain practical expedients, using either a full retrospective approach or a modified retrospective approach.

The Company is party to various leases as part of its mining operations. All leases will be recorded on the statement of financial position, except short-term leases and leases of low-value items. This is expected to result in a material increase to both assets (right of use) and liabilities (lease obligations) upon adoption of the standard, and changes to the timing of recognition and classification of expenses associated with such lease arrangements. The Company anticipates an increase in depreciation and depletion expense and interest and finance expense, and a decrease in operating expenses. The Company also anticipates an increase in cash flow from operating activities as lease payments will be recorded as financing outflows in the statement of cash flows.

The Company intends to adopt the modified retrospective approach and not restate balances for the comparative period. The Company has completed its review of all existing operating leases and service contracts to identify contracts in scope for IFRS 16 and assessed contracts for embedded leases. The Company is still in the process of evaluating its lease conclusions and the quantitative impact of the adoption.

There are no other IFRS’s or International Financial Reporting Interpretations Committee interpretations that are not yet effective or early adopted that are expected to have a material impact on the Company.

FINANCIAL INSTRUMENTS

Classification of financial assets

We have the following financial assets: cash and cash equivalents, receivables and other and restricted cash.

Cash and cash equivalents and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method.

The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue.

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Classification of financial liabilities

We have the following financial liabilities: accounts payable and accrued liabilities which include the restricted share unit liability and deferred share unit liability, the debt portion of the convertible notes and debt instruments including the Loan Facility and the Offtake Obligation.

Accounts payable and accrued liabilities, the debt portion of the convertible notes and the Loan Facility are classified as other financial liabilities and are recognized initially at fair value, net of any directly attributable transactions costs.  Subsequent to initial recognition, these financial liabilities are held at amortized cost using the effective interest method.

The restricted share unit liability and deferred share unit liability are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value.

Derivative instruments, including embedded derivatives, such as the Offtake Obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative.

Financial risk management

We are exposed to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk from our financial instruments.

Risk management is the responsibility of management and is carried out under policies approved by the Board of Directors. Material risks are monitored and are regularly discussed with the Audit Committee and Board of Directors. The type of risk exposure and the way in which such exposure is managed is as follows:

Market risk

Currency risk

The Company is subject to currency risk on financial instruments which are denominated in currencies that are not the same as the functional currency of the entity that holds them. Exchange gains and losses would impact earnings (loss).

The Company is exposed to currency risk through cash and cash equivalents, receivables and other excluding trade receivables, restricted cash and accounts payable and accrued liabilities which are denominated in CAD. The Company has not hedged its exposure to currency fluctuations at this time.

In addition to currency risk from financial instruments, a significant portion of the Company’s mine production costs, capital expenditures and corporate administrative costs are denominated in CAD. Consequently, fluctuations in the USD exchange rate against the CAD increases the volatility of cost of sales and corporate administrative costs.

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Interest rate risk

The Company is subject to interest rate risk with respect to its investments in cash and cash equivalents. The Company’s current policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash and cash equivalents in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash and cash equivalents mature impact interest income earned.

The Company is subject to interest rate risk with respect to its Loan Facility. Interest rates associated with this facility are based on LIBOR and the administrative agents’ base rate which fluctuates based on market conditions.

The Company is also subject to interest rate risk with respect to the fair value of the Offtake Obligation which is accounted for at FVTPL.

Commodity price risk

The Company is subject to commodity price risk from fluctuations in the market prices for gold and silver. Commodity price risks are affected by many factors that are outside the Company’s control including global or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability and costs of metal substitutes, inflation and political and economic conditions.

The financial instruments impacted by commodity prices are the trade receivables and the Offtake Obligation (a derivative liability).

Price adjustments are made in subsequent periods to the customer receivables for concentrate sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date.

The Company has not hedged the price of any commodity at this time as it is not permitted to hedge under the terms of the Offtake Agreement.

Credit risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents, trade receivables, tax receivables and restricted cash.

The Company limits its exposure to credit risk on financial assets through investing its cash and cash equivalents and restricted cash with high-credit quality financial institutions. Management believes the risk of loss related to these deposits to be low. The Company continually evaluates changes in the status of its counterparties.

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We are exposed to credit risk through our trade receivables, which are principally with internationally recognized counterparties. The Company sells its gold and silver to its lenders, refineries located in Canada and the United States and trading companies. The Company has had limited instances of default from its counterparties. The Company continually evaluates its counterparties in which it sells its product.  The Company is not economically dependent on a limited number of customers for the sale of its gold and silver as its products can be sold through numerous world-wide commodity markets.

Liquidity risk

Liquidity risk is the risk that we will not be able to meet our financial obligations as they fall due. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly, and we try to ensure that there is sufficient capital in order to meet short-term business requirements, after taking into account cash flows from operations and our holdings of cash and cash equivalents. Our cash and cash equivalents are currently invested in business and savings accounts with financial institutions of high credit quality which are available on demand by us for our programs. To the extent we do not believe there is sufficient liquidity to meet obligations, we will consider securing additional debt or equity funding. For further discussion, refer to the “Liquidity and Capital Resources” section of this MD&A.

EVENTS AFTER REPORTING DATE

There have been no significant events after the reporting date.

NON-IFRS FINANCIAL PERFORMANCE MEASURES

The Company has included certain non-IFRS measures in this MD&A. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide readers an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

Cost of sales per ounce of gold sold

The Company reports cost of sales on a gold ounce sold basis. Management uses this metric as a tool to monitor total operating cost performance which includes non-cash items such as depreciation and depletion and site share-based compensation.

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The following tables reconcile these non-IFRS measures to the most directly comparable IFRS measures disclosed in the financial statements.

	For the three months ended				For the year ended
In thousands of USD, except for per ounce data	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017(1)
Gold ounces sold	89,011		86,514		367,428		141,927
Cost of sales per ounce sold reconciliation
Cost of sales	$	72,479	$	80,168	$	303,927	$	125,080
Cost of sales per ounce of gold sold	$	814	$	927	$	827	$	881

(1)Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017.

Total cash costs

Total cash costs is a common financial performance measure in the gold mining industry but has no standard meaning. The Company reports total cash costs on a gold ounce sold basis. The Company believes that, in addition to measures prepared in accordance with IFRS, such as revenue, certain readers can use this information to evaluate the Company’s performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance.

Total cash costs include cost of sales such as mining, processing, maintenance and site administration, royalties and selling costs and changes in inventories less non-cash depreciation and depletion, site share-based compensation and silver revenue divided by gold ounces sold to arrive at total cash costs per ounce of gold sold. Other companies may calculate this measure differently.

The following tables reconcile these non-IFRS measures to the most directly comparable IFRS measures disclosed in the financial statements.

	For the three months ended						For the year ended
In thousands of USD, except for per ounce data	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017(1)
Gold ounces sold	89,011			86,514			367,428			141,927
Total cash costs reconciliation
Cost of sales	$	72,479		$	80,168		$	303,927		$	125,080
Less: Depreciation and depletion	(16,524		)	(17,272		)	(67,340		)	(25,378		)
Less: Site share-based compensation	(523		)	(703		)	(2,332		)	(827		)
Less: Silver revenue	(1,150		)	(1,670		)	(5,362		)	(1,994		)
Total cash costs	$	54,282		$	60,523		$	228,893		$	96,881
Total cash costs per ounce of gold sold	$	610		$	700		$	623		$	683

(1)Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017.

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All-in sustaining costs

The Company believes that AISC more fully defines the total costs associated with producing gold. AISC is calculated based on the definitions published by the World Gold Council (“WGC”) (a market development organization for the gold industry comprised of and funded by 18 gold mining companies from around the world). The WGC is not a regulatory organization. The Company calculates AISC as the sum of total cash costs (as described above), sustaining capital expenditures (excluding expansion capital related to the 3,800 tonne per day expansion project), accretion on decommissioning and restoration provision, treatment and refinery charges netted against concentrate revenue, site share-based compensation, and corporate administrative costs, all divided by the gold ounces sold to arrive at a per ounce amount.

Effective January 1, 2019, the Company will adopted the WGC’s revised definition for AISC which will include cash payments from sustaining leases to account for the adoption of IFRS 16, Leases.

Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus non-sustaining capital.

The following table reconciles these non-IFRS measures to the most directly comparable IFRS measures disclosed in the financial statements.

	For the three months ended				For the year ended
In thousands of USD, except for per ounce data	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017(1)
Gold ounces sold	89,011		86,514		367,428		141,927
All-in sustaining costs reconciliation
Total cash costs	$	54,282	$	60,523	$	228,893	$	96,881
Sustaining capital expenditures (2)	3,720		4,533		16,533		8,059
Accretion on decommissioning and restoration provision	136		137		568		283
Treatment and refinery charges	4,410		5,705		16,797		6,749
Site share-based compensation	523		703		2,332		827
Corporate administrative costs (3)	6,728		5,669		15,662		8,153
Total all-in sustaining costs	$	69,799	$	77,270	$	280,785	$	120,952
All-in sustaining costs per ounce of gold sold	$	784	$	893	$	764	$	852

(1)Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017.

(2)Sustaining capital expenditures includes deferred development costs.

(3)Includes the sum of corporate administrative costs per the statement of earnings (loss) and comprehensive earnings (loss), excluding depreciation within those figures.

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Average realized price and average realized cash margin

Average realized price and average realized cash margin per ounce sold are used by management and readers to better understand the gold price and cash margin realized throughout a period.

Average realized price is calculated as revenue from contracts with customers less silver revenue divided by gold ounces sold. Average realized cash margin represents average realized price per gold ounce sold less total cash costs per ounce sold.

The following table reconciles these non-IFRS measures to the most directly comparable IFRS measures disclosed in the financial statements.

	For the three months ended						For the year ended
In thousands of USD, except for per ounce data	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017(1)
Revenue from contracts with customers(2)	$	108,311		$	106,464		$	457,615		$	177,787
Less: Silver revenue	(1,150		)	(1,670		)	(5,362		)	(1,994		)
Gold revenue(3)	$	107,161		$	104,794		$	452,253		$	175,793
Gold ounces sold	89,011			86,514			367,428			141,927
Average realized price	$	1,204		$	1,211		$	1,231		$	1,239
Less: Total cash costs per ounce of gold sold	(610		)	(700		)	(623		)	(683		)
Average realized cash margin per ounce of gold sold	$	594		$	511		$	608		$	556

(1)Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017.

(2)Revenue from contracts with customers is recognized net of treatment costs and refinery charges on revenue generated from concentrate sales in the amount of $4,474 (2017 — $5,704) and $17,074 (2017 — $6,748) for the three months and year ended December 31, 2018, respectively. The portion of these treatment costs and refinery charges related to gold concentrate sales were $4,410 (2017 — $5,597) and $16,797 (2017 - $6,623) for the three months and year ended December 31, 2018, respectively.

(3)Gold revenue excludes the gain (loss) on trade receivables at fair value related to provisional pricing adjustments in the amount of a gain of $285 (2017 — $594) and a loss of $3,059 (2017 — gain of $146) for the three months and year ended December 31, 2018, respectively.

Adjusted earnings and adjusted basic earnings per share

Adjusted earnings and adjusted basic earnings per share are used by management and readers to measure the underlying operating performance of the Company. Presenting these measures helps management and readers evaluate earning trends more readily in comparison with results from prior periods.

Adjusted earnings is defined as net earnings adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: loss on financial instruments at fair value, amortization of discount on Credit Facility, amortization of Loan Facility transaction costs, accretion on convertible notes, impairment provisions and reversals and deferred income tax expense (recovery). Adjusted basic earnings per share is calculated using the weighted average number of shares outstanding under the basic method of earnings per share as determined under IFRS.

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The following table reconciles these non-IFRS measures to the most directly comparable IFRS measures disclosed in the financial statements.

	For the three months ended						For the year ended
In thousands of USD, except for per share data	December 31, 2018			December 31, 2017			December 31, 2018		December 31, 2017
Basic weighted average shares outstanding	183,708,408			181,994,244			182,905,004		181,208,295
Adjusted earnings and adjusted basic earnings per share reconciliation
Net earnings (loss) for the period	$	2,847		$	(2,720	)	$	36,620	$	(16,453	)
Adjusted for:
Loss on financial instruments at fair value	10,736			8,460			17,113		26,430
Amortization of discount on Credit Facility	7,234			6,007			27,285		11,664
Amortization of Loan Facility transaction costs	95			—			95		—
Accretion on convertible notes	1,403			1,403			5,568		2,807
Deferred income tax expense (recovery)	(2,138		)	(408		)	12,668		(7,022		)
Adjusted earnings	$	20,177		$	12,742		$	99,349	$	17,426
Adjusted basic earnings per share	$	0.11		$	0.07		$	0.54	$	0.10

Earnings from mine operations

Earnings from mine operations provides useful information to management and readers as an indication of the Company’s principal business activities before consideration of how those activities are financed, sustaining capital expenditures, corporate administrative costs, foreign exchange gain (loss), loss on financial instruments at fair value, interest and finance income and expense and taxation.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measures disclosed in the financial statements.

	For the three months ended				For the year ended
In thousands of USD	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017(1)
Revenue	$	108,596	$	107,058	$	454,556	$	177,933
Cost of sales	72,479		80,168		303,927		125,080
Earnings from mine operations	$	36,117	$	26,890	$	150,629	$	52,853

(1)Data for the year ended December 31, 2017 covers the period commencing from July 1, 2017, the date the Brucejack Mine achieved commercial production, to December 31, 2017.

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Working capital

Working capital is defined as current assets less current liabilities and provides useful information to management and readers about liquidity of the Company.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measures disclosed in the financial statements.

In thousand of USD	December 31, 2018			December 31, 2017
Current assets	$	88,470		$	101,509
Current liabilities(1)	136,633			435,918
Working capital deficit	$	(48,163	)	$	(334,409	)

(1)As at December 31, 2018, current liabilities includes the current portion of the Loan Facility and Offtake Obligation in the amount of $85,961. In the comparable period in 2017, current liabilities includes the current portion of the Credit Facility and Offtake Obligation in the amount of $374,966.

OUTSTANDING SHARE DATA

As at February 14, 2019, the Company had the following number of securities outstanding:

	Number of securities	Exercise price ($)	Exercise price currency	Weighted average remaining life (years)
Common shares	184,188,091			—
Stock options	4,537,919	$5.85 - $15.17	CAD	2.48
Convertible notes	6,250,000	$16.00	USD	3.08
Restricted share units(1)	739,080		CAD	2.35
Performance share units(1)	166,085		CAD	2.38
	195,881,175

(1)The Company may settle restricted share units (“RSUs”) and performance share units (“PSUs”) in cash or common shares of the Company, on a basis of one common share for each one RSU or PSU, as applicable.

INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES

Internal control over financial reporting

Management, with the participation of the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable, not absolute, assurance with respect to financial statement preparation and presentation.

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Management with the participation of the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as at December 31, 2018. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework (COSO 2013). Based upon the results of that assessment as at December 31, 2018, management concluded that our internal control over financial reporting is effective.

The effectiveness of our internal control over financial reporting, as of December 31, 2018, has been audited by PricewaterhouseCoopers LLP, who also audited our consolidated financial statements for the years ended December 31, 2018 and 2017, as stated in its report which appears in such consolidated financial statements.

There were no changes in internal controls over financial reporting during the year ended December 31, 2018 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

Disclosure controls and procedures

Management, with the participation of the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, assessed the effectiveness of our disclosure controls and procedures as of December 31, 2018. Based upon the results of that evaluation, the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that material information relating to the Company is accumulated and communicated to management (particularly during the period in which the Company’s annual filings are being prepared) to allow timely decisions regarding required disclosure, and that the information disclosed by us in the reports that we file is appropriately recorded, processed, summarized and reported within the time period specified in applicable securities legislation.

RISKS AND UNCERTAINTIES

Natural resources exploration, development and operation involves a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties include, without limitation, the risks discussed elsewhere in this MD&A, those identified in our Annual Information Form dated March 28, 2018 and filed in Canada on SEDAR, and in the United States on Form 40-F through EDGAR at the SEC’s website at www.sec.gov, as modified herein, and those set out in our Annual Information Form and Form 40-F for the year ended December 31, 2018, once filed with the applicable securities regulatory authorities. You should carefully consider such risks and uncertainties prior to deciding to invest in our securities.

Our indebtedness may adversely affect our cash flow and our ability to operate our business.

We have a substantial amount of indebtedness as a result of entering into the credit agreement under the Loan Facility (the “Credit Agreement”). As a result of this indebtedness, we are required to use a portion of our cash flow to service principal and interest on our debt. In addition, in order to fund our debt service obligations and to pay amounts due on the convertible notes, we will require significant amounts of cash. Our indebtedness could have adverse consequences

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on our business, including: limiting our ability to obtain additional financing for working capital, capital expenditures, exploration and development, debt service requirements, acquisitions and general corporate or other purposes; restricting our flexibility and discretion to operate our business; having to dedicate a portion of our cash flows from future mining operations, if any, to the payment of interest on its indebtedness and not having such cash flows available for other purposes; exposing us to increased interest expense on borrowings at variable rates; limiting our ability to adjust to changing market conditions; placing us at a competitive disadvantage compared to competitors that have less debt or greater financial resources; making us vulnerable in a downturn in general economic conditions; and preventing our ability to make expenditures that are important to our growth and strategies.

Our ability to meet our debt service requirements will depend on our ability to generate cash from mining activities or the issuance of additional equity or debt securities. There can be no assurance that we will generate cash flow in amounts sufficient to pay outstanding indebtedness or to fund any other liquidity needs. If the cash generated from mining activities is insufficient to meet the obligations to pay interest and principal under the Credit Agreement, the lenders may exercise their rights under the security arrangements of the Credit Agreement, which could result in a loss or substantial reduction in the value of our principal assets. If our cash flow and capital resources are insufficient to fund our debt obligations, we may be forced to reduce or delay capital expenditures, sell assets, seek to obtain additional equity capital or restructure our debt.

Our future performance will be affected by a range of economic, competitive, governmental, operating and other business factors, many of which cannot be controlled, such as general economic and financial conditions in the industry or the economy at large. A significant reduction in operating cash flows resulting from changes in economic conditions, increased competition or other events could increase the need for additional or alternative sources of liquidity and could have a material adverse effect on the business, financial condition or results of operations, as well as our ability to service our debt and other obligations. If we are unable to service our indebtedness or fulfil our other obligations under the Credit Agreement, we will be forced to adopt an alternative strategy that may be less attractive to us and include actions such as reducing or delaying capital expenditures, selling assets, restructuring or refinancing indebtedness or seeking equity capital. In addition, any failure to make scheduled payments of interest and principal on outstanding indebtedness is likely to result in a reduction of credit rating, which could harm our ability to incur additional indebtedness on acceptable terms.

We may be unable to satisfy our commitments under the Offtake Agreement and failure to do so may have a material and adverse effect on the Company.

Our ability to make deliveries under the Offtake Agreement is dependent on our ability to maintain steady-state production at the Brucejack Mine, as well as the Company’s financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, legislative, regulatory and other factors beyond our control.

If our cash flows and capital resources are insufficient, our liquidity may be adversely impacted and we could be forced to reduce or delay investment and capital expenditures or to dispose of material assets or operations, or seek additional debt or equity capital. We may not be able to effect any such alternative measures on commercially reasonable terms or at all and, even if

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successful, those alternatives may not allow us to meet our delivery obligations under the Offtake Agreement. Failure to otherwise fulfill our commitments under the Offtake Agreement could result in adverse impacts on our business.

If metal prices improve over time, the Offtake Agreement may reduce our ability to sell our resources later at higher market prices due to our obligations under these agreements.

The Offtake Agreement and Credit Agreement contain restrictive covenants that will limit our ability to operate our business.

The restrictive covenants contained in the Offtake Agreement and Credit Agreement could have adverse consequences on our business, including: limiting our ability to obtain additional financing for working capital, capital expenditures, exploration and development, debt service requirements, acquisitions and general corporate or other purposes; restricting our flexibility and discretion to operate our business; limiting our ability to adjust to changing market conditions; making us vulnerable in a downturn in general economic conditions; and making us unable to make expenditures that are important to our growth and strategies. The restrictive covenants contained in the Offtake Agreement and Credit Agreement will limit our operating flexibility and could prevent us from taking advantage of business opportunities. Our failure to comply with these covenants may result in an event of default. If such event of default is not cured or waived, we may suffer adverse effects on our operations, business or financial condition.

If our counterparties to the Credit Agreement and Offtake Agreement default on their contractual obligations the Company may be materially and adversely affected.

If a counterparty does not meet its contractual obligations under the Credit Agreement or Offtake Agreement, or if they become insolvent, our future operating results may be materially adversely impacted. Pursuant to the Offtake Agreement, we have agreed to sell refined precious metals to our offtake counterparties. If such offtake counterparties do not meet their respective obligations under the Offtake Agreement or our lenders do not meet their respective obligations under the Credit Agreement, this could have a material and adverse impact on our operations and our financial situation.

Mine production transportation and refining risk

Gold doré and mineral concentrates containing combinations of silver and gold are produced at the Company’s Brucejack Mine and transported to foreign smelters. This type of process involves certain environmental and financial risks. The Company could be subject to potential significant increases in transportation charges and treatment and refining charges. Transportation of such doré and mineral concentrates is also subject to numerous risks including, but not limited to, delays in delivery of shipments, road blocks, criminal activities, civil unrest, weather conditions and environmental liabilities in the event of an accident or spill. The Company could be subject to limited smelter availability and capacity and could also face the risk of a potential interruption of business from a third party beyond its control, which in both cases could have a material adverse effect on its operations and financial situation. There is no assurance that smelting, refining or transportation contracts for the Brucejack Mine’s production will be entered into and/or renewed on acceptable terms or that the counterparties to such contracts will meet their respective obligations thereunder. If the Company is unable to effectively process and refine its

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gold doré and mineral concentrates on acceptable terms or if the counterparties to its smelting, refining and transportation contracts fail to meet their respective obligations thereunder, its operations and financial situation could be materially adversely impacted.

Reputational risk

Damage to the Company’s reputation can be the result of the actual or perceived occurrence of any number of events, and could include any negative publicity, whether true or not. The Company places a great emphasis on protecting its image and reputation, but it does not ultimately have direct control over how it is perceived by others. Reputation loss may lead to increased challenges in developing and maintaining community relations, decreased investor confidence and an impediment to the Company’s overall ability to advance its projects, thereby having a material adverse impact on its operations and our financial situation.

STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This MD&A contains “forward-looking information”, “forward looking statements”, “future oriented financial information” and “financial outlook” within the meaning of applicable Canadian and United States securities legislation (collectively herein referred to as “forward-looking statements” or “forward-looking information”), including the “safe harbour” provisions of Canadian provincial securities legislation and the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended. The purpose of disclosing future oriented financial information and financial outlook is to provide a general overview of management’s expectations regarding the anticipated results of operations and costs thereof and readers are cautioned that future oriented financial information and financial outlook may not be appropriate for other purposes.

Wherever possible, words such as “plans”, “expects”, “guidance”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”, “intends”, “modeled’, “targets” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking information. Forward-looking information may include, but is not limited to, information with respect to: production and cost guidance; expected financial results and the expected grade of gold produced; the rate of production of the Brucejack Mine, including the ramp-up of the Brucejack Mine to 3,800 tonnes per day and the capital upgrades, estimated capital expenditures and an updated mine plan in connection therewith, and a timeline therefor; payment of operating and debt obligations and requirements including timing and source of funds; our planned mining, exploration and development activities and the costs and timing thereof; our operational grade control program, including plans with respect to our infill drill program and our local grade control model; our operational strategy; capital and operating cost estimates and timing thereof; production and processing estimates; the future price of gold and silver; our liquidity and the adequacy of our financial resources; our intentions with respect to our capital resources; our financing activities, including plans for the use of proceeds thereof; the estimation of mineral reserves and resources including the 2016 Brucejack Mineral Resource Estimate Update and the 2016 Brucejack Mineral Reserve Estimate; the updates to our mineral reserves and mineral

47

resources estimates and our life of mine grade and life of mine plan for the Brucejack Mine and the anticipated timing thereof; realization of mineral reserve and resource estimates; further development of our Brucejack Mine and timing thereof; results of future exploration and drilling; timelines and similar statements relating to the economic viability of the Brucejack Mine, including mine life, total tonnes mined and processed and mining operations; timing, receipt, and anticipated effects of, and anticipated capital costs in connection with, approvals, consents and permits under applicable legislation; our executive compensation approach and practice; our relationship with community stakeholders; litigation matters; environmental matters; our effective tax rate and the recognition of our previously unrecognized income tax attributes; new accounting standards applicable to the Company, including methods of adoption and the effects of adoption of such standards; and statements regarding USD cash flows, currency fluctuations and the recurrence of foreign currency translation adjustments. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks related to:

·uncertainty as to the outcome of legal proceedings;

·the effect of indebtedness on cash flow and business operations;

·our ability to satisfy commitments under the Offtake Agreement;

·the effect of restrictive covenants in the credit agreement for the Loan Facility and the Offtake Agreement;

·assumptions regarding expected capital costs, operating costs and expenditures, production schedules, economic returns and other projections;

·our production estimates, including the accuracy thereof;

·our ability to generate operating revenues in the future;

·our ability to raise enough capital to mine, develop, expand or complete further exploration programs on our mineral properties;

·dependency on the Brucejack Mine for our future operating revenue;

·the accuracy of our resource and reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which they are based;

·uncertainties relating to inferred mineral resources being converted into measured or indicated mineral resources;

·our ability to maintain or increase our annual production of gold at the Brucejack Mine or discover, develop or acquire mineral reserves for production;

·commodity price fluctuations, including gold price volatility;

·our history of negative operating cash flow, incurred losses and accumulated deficit;

·failure of counterparties to perform their contractual obligations;

·general economic conditions;

·the inherent risk in the mining industry;

48

·the commercial viability of our current and any acquired mineral rights;

·availability of suitable infrastructure or damage to existing infrastructure;

·maintaining satisfactory labour relations with employees and contractors;

·significant governmental regulations, including environmental regulations;

·non-compliance with permits that are obtained or delay in obtaining or failure to obtain permits required in the future;

·increased costs and restrictions on operations due to compliance with environmental laws and regulations;

·compliance with emerging climate change regulation;

·uncertainties relating to additional claims and legal proceedings;

·adequate internal controls over financial reporting;

·potential opposition from non-governmental organizations;

·uncertainty regarding unsettled First Nations rights and title in British Columbia;

·uncertainties related to title to our mineral properties and surface rights;

·land reclamation requirements;

·our ability to identify and successfully integrate any material properties we acquire;

·currency fluctuations;

·competition in the mining industry for properties, qualified personnel and management;

·our ability to attract and retain qualified management;

·some of our directors’ and officers’ involvement with other natural resource companies;

·potential inability to attract development partners or our ability to identify attractive acquisitions;

·compliance with foreign corrupt practices regulations and anti-bribery laws;

·certain actions under U.S. federal securities laws may be unenforceable;

·changes to relevant legislation, accounting practices or increasing insurance costs;

·our anti-takeover provisions could discourage potentially beneficial third party takeover offers;

·significant growth could place a strain on our management systems;

·share ownership by our significant shareholders and their ability to influence our governance;

·mine production transportation and refining risk;

·future sales or issuances of our debt or equity securities;

·the trading price of our common shares is subject to volatility due to market conditions;

·future issuances of equity securities or sales by existing shareholders which may cause the price of our securities to fall;

·we do not intend to pay dividends in the near future;

·failure to comply with certain terms of the convertible notes;

·risks related to ensuring the security and safety of information systems, including cyber security risks; and

·reputational risk.

This list is not exhaustive of the factors that may affect any of our forward-looking statements. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements involve statements about the future and are inherently uncertain, and our actual results, achievements or

49

other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this MD&A and those set out in our Annual Information Form and From 40-F, each dated March 28, 2018, for the year ended December 31, 2017 and our other disclosure documents as filed in Canada on SEDAR at www.sedar.com and in the United States through EDGAR at the SEC’s website at www.sec.gov (collectively, “the Pretivm Disclosure Documents”).

Our forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond our control. In connection with the forward-looking statements contained in this MD&A, we have made certain assumptions about our business, including about our planned exploration, development and production activities; the accuracy of our mineral resource estimates; capital and operating cost estimates; production and processing estimates; the results, costs and timing of future exploration and drilling; timelines and similar statements relating to the economic viability of the Brucejack Mine; timing and receipt of approvals, consents and permits under applicable legislation; the geopolitical, economic, permitting and legal climate that we operate in; the price of gold and other commodities; exchange rates; market competition; the adequacy of our financial resources, and such other material assumptions as are identified in other applicable Pretivm Disclosure Documents. We have also assumed that no significant events will occur outside of our normal course of business. Although we believe that the assumptions inherent in the forward-looking statements are reasonable as of the date of this MD&A, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein.

We do not assume any obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking statements.

50

EX-99.1

EXHIBIT 99.1

Consent of Independent Auditor

We hereby consent to the inclusion in this Annual Report on Form 40-F for the year ended December 31, 2018 of Pretium Resources Inc. of our report dated February 14, 2019, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in this Annual Report.

We also consent to the incorporation by reference in the Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) of Pretium Resources Inc. of our report dated February 14, 2019 referred to above.

We also consent to reference to us under the heading “Interests of Experts,” which appears in the Annual Information Form included in the Exhibit incorporated by reference in this Annual Report on Form 40-F.

(Signed) “PricewaterhouseCoopers LLP”

Chartered Professional Accountants

Vancouver, Canada

March 29, 2019

EX-99.2

EXHIBIT 99.2

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, John Huang, on behalf of Tetra Tech (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ John Huang

John Huang

March 29, 2019

EX-99.3

EXHIBIT 99.3

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, John Graindorge, on behalf of Snowden Mining Industry Consultants Inc. (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ John Graindorge

John Graindorge

March 25, 2019

EX-99.4

EXHIBIT 99.4

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, John Morton Shannon, P. Geo, on behalf of AMC Mining Consultants (Canada) Ltd. (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ John Morton Shannon

John Morton Shannon

March 29, 2019

EX-99.5

EXHIBIT 99.5

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, Rolf Schmitt, P. Geo, on behalf of ERM Rescan (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Rolf Schmitt

Rolf Schmitt

March 29, 2019

EX-99.6

EXHIBIT 99.6

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, Derek Kinakin, on behalf of BGC Engineering Inc. (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Derek Kinakin

Derek Kinakin

March 29, 2019

EX-99.7

EXHIBIT 99.7

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, Brian Gould, on behalf of Alpine Solutions Avalanche Services (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Brian Gould

Brian Gould

March 25, 2019

EX-99.8

EXHIBIT 99.8

CONSENT OF EXPERT

Reference is made to the feasibility study entitled “Feasibility Study and Technical Report Update on the Brucejack Project, Stewart, BC” with an effective date of June 19, 2014 (the “Report”).

I, Keith Sones, on behalf of Valard Construction (the “Company”), consent to the use of the Company’s name and references to the Report, and to the inclusion or incorporation by reference of information derived from the Report, in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Keith Sones

Keith Sones

March 27, 2019

EX-99.9

EXHIBIT 99.9

CONSENT OF EXPERT

I, Lyle Morgenthaler, consent to the use of my name and references to my name in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Lyle Morgenthaler

Lyle Morgenthaler, B.A.Sc., P.Eng.

March 28, 2019

EX-99.10

EXHIBIT 99.10

CONSENT OF EXPERT

I, Russell Pennell, consent to the use of my name and references to my name in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Russell Pennell

Russell Pennell, B.A.Sc., P.Eng.

March 29, 2019

EX-99.11

EXHIBIT 99.11

CONSENT OF EXPERT

I, Kenneth C. McNaughton, consent to the use of my name and references to my name in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Kenneth C. McNaughton

Kenneth C. McNaughton, M.A.Sc., P.Eng.

March 29, 2019

EX-99.12

EXHIBIT 99.12

CONSENT OF EXPERT

I, Ivor W.O. Jones, consent to the use of my name and references to my name in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Ivor W.O. Jones

Ivor W.O. Jones, M.Sc., P.Geo. FAusIMM, CP(geo)

March 26, 2019

EX-99.13

EXHIBIT 99.13

CONSENT OF EXPERT

I, Warwick Board, consent to the use of my name and references to my name in (i) Pretium Resources Inc.’s Annual Report on Form 40-F for the year ended December 31, 2018 and (ii) Pretium Resources Inc.’s Registration Statements on Form S-8 (File Nos. 333-203409 and 333-213450) filed with the United States Securities and Exchange Commission.

Very truly yours,

/s/ Warwick Board

Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat.

March 29, 2019

EX-99.14

EXHIBIT 99.14

CERTIFICATION PURSUANT TO RULE 13a-14 OR 15d-14 OF THE

SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph J. Ovsenek, certify that:

1.     I have reviewed this annual report on Form 40-F of Pretium Resources Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4.The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5.The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Dated: March 29, 2019

/s/ Joseph J. Ovsenek
Name:	Joseph J. Ovsenek
Title:	President, Chief Executive Officer & Director

EX-99.15

EXHIBIT 99.15

CERTIFICATION PURSUANT TO RULE 13a-14 OR 15d-14 OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002

I, Tom S.Q. Yip, certify that:

1.     I have reviewed this annual report on Form 40-F of Pretium Resources Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4.The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5.The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Dated: March 29, 2019

/s/ Tom S.Q. Yip
Name:	Tom S.Q. Yip
Title:	Executive Vice President & Chief Financial Officer

EX-99.16

EXHIBIT 99.16

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Pretium Resources Inc. (the “Company”) on Form 40-F for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph J. Ovsenek, President, Chief Executive Officer & Director of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.     The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 29, 2019

/s/ Joseph J. Ovsenek
Name:	Joseph J. Ovsenek
Title:	President, Chief Executive Officer & Director

EX-99.17

EXHIBIT 99.17

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Pretium Resources Inc.(the “Company”) on Form 40-F for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Tom S.Q. Yip, Executive Vice President & Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.     The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 29, 2019

/s/ Tom S.Q. Yip
Name:	Tom S.Q. Yip
Title:	Executive Vice President & Chief Financial Officer

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	Pretium Resources Inc.
Entity Central Index Key	0001508844
Document Type	40-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	184,163,091
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

XML

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 45,407	$ 56,285
Receivables and other	18,312	19,551
Inventories	24,751	25,673
Total current assets	88,470	101,509
Non-current assets
Mineral properties, plant and equipment	1,522,919	1,564,860
Other assets		132
Restricted cash	2,029	5,036
Total assets	1,613,418	1,671,537
Current liabilities
Accounts payable and accrued liabilities	50,672	60,438
Current portion of long-term debt	85,961	374,966
Income taxes payable		379
Flow-through share premium		135
Total current liabilities	136,633	435,918
Non-current liabilities
Other liabilities	1,072	511
Long-term debt	456,254	293,029
Convertible notes	82,150	76,582
Decommissioning and restoration provision	18,947	18,436
Deferred income tax liability	15,236
Total liabilities	710,292	824,476
EQUITY
Share capital	1,140,890	1,125,932
Contributed surplus	48,886	49,942
Equity component of convertible notes	17,603	17,603
Accumulated other comprehensive loss	(193,997)	(193,772)
Deficit	(110,256)	(152,644)
Total equity	903,126	847,061
Total liabilities and equity	1,613,418	1,671,537
Commitments
Contingencies

XML

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS)
Revenue	$ 454,556	$ 177,933
Cost of sales	303,927	125,080
Earnings from mine operations	150,629	52,853
Corporate administrative costs	15,788	18,816
Operating earnings	134,841	34,037
Interest and finance expense	(66,926)	(30,655)
Interest and finance income	2,728	527
Foreign exchange gain (loss)	(46)	667
Loss on financial instruments at fair value	(17,113)	(26,430)
Earnings (loss) before taxes	53,484	(21,854)
Current income tax expense	(4,196)	(1,621)
Deferred income tax (expense) recovery	(12,668)	7,022
Net earnings (loss) for the year	36,620	(16,453)
Items that will not be reclassified to earnings or loss:
Change in fair value attributable to change in credit risk of financial instruments designated at fair value through profit or loss	5,543
Comprehensive earnings (loss) for the year	$ 42,163	$ (16,453)
Earnings (loss) per common share
Basic (in dollar per share)	$ 0.20	$ (0.09)
Diluted (in dollar per share)	$ 0.20	$ (0.09)
Weighted average number of common shares outstanding
Basic (in dollar per share)	182,905,004	181,208,295
Diluted (in dollar per share)	183,881,917	181,208,295

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss) for the year	$ 36,620	$ (16,453)
Items not affecting cash:
Current income tax expense	4,196	1,621
Deferred income tax expense (recovery)	12,668	(7,022)
Depreciation and depletion	67,466	25,518
Interest and finance expense, net	63,686	29,970
Loss on financial instruments at fair value	17,113	26,430
Settlement of offtake obligation	(4,423)	(1,543)
Share-based compensation	6,472	5,673
Unrealized foreign exchange loss (gain)	457	(2,823)
Changes in non-cash working capital items:
Receivables and other	1,389	(8,815)
Inventories	1,047	(12,573)
Accounts payable and accrued liabilities	(4,872)	34,580
Income taxes paid	(4,575)	(1,242)
Net cash generated by operating activities	197,244	73,321
CASH FLOWS FROM FINANCING ACTIVITIES
Common shares issued	2,304	3,891
Finance lease payments	(402)
Proceeds from convertible notes, net		95,795
Proceeds from credit facility, net		97,000
Proceeds from exercise of stock options	8,353	13,894
Proceeds from loan facility	480,000
Repayment of credit facility	(350,000)
Repurchase of stream obligation	(237,000)
Share issue costs	(31)	(225)
Transaction costs associated with a loan facility	(7,616)
Interest paid	(75,006)	(1,319)
Net cash generated by (used in) financing activities	(179,398)	209,036
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures on mineral properties, plant and equipment	(32,892)	(375,408)
Restricted cash	2,830	4,380
Interest received	2,728	527
Net cash used in investing activities	(27,334)	(370,501)
Decrease in cash and cash equivalents for the year	(9,488)	(88,144)
Cash and cash equivalents, beginning of the year	56,285	141,791
Effect of foreign exchange rate changes on cash and cash equivalents	(1,390)	2,638
Cash and cash equivalents, end of the year	$ 45,407	$ 56,285

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)	Common Shares	Share capital	Contributed surplus	Equity component of convertible notes	Accumulated other comprehensive loss Restatement Adjustment	Accumulated other comprehensive loss	Deficit Restatement Adjustment	Deficit	Total
Balance at the beginning of the year at Dec. 31, 2016		$ 1,101,428,000	$ 53,072,000			$ (193,772,000)		$ (136,191,000)	$ 824,537,000
Balance at the beginning of the year (in shares at Dec. 31, 2016	180,113,252
Shares issued upon exercise of options		20,757,000	(6,863,000)						13,894,000
Shares issued upon exercise of options (in shares)	1,822,025
Shares issued under flow-through agreement		3,182,000							3,182,000
Shares issued under flow-through agreement (in shares)	329,000
Share issue costs, net of taxes		(167,000)							(167,000)
Value assigned to options vested			3,733,000						3,733,000
Shares issued upon settlement of restricted share units		731,000							731,000
Shares issued upon settlement of restricted share units (in shares)	73,597
Equity component of convertible notes, net of taxes				$ 17,603,000					17,603,000
Earnings (Loss) for the year								(16,453,000)	(16,453,000)
Balance at the end of the year at Dec. 31, 2017	$ 182,337,874	1,125,932,000	49,942,000	17,603,000	$ (199,540,000)	(193,772,000)	$ (146,876,000)	(152,644,000)	847,061,000
Balance at the end of the year (in shares) at Dec. 31, 2017	182,337,874
Adjustment on adoption of IFRS 9, net of tax					$ (5,768,000)		$ 5,768,000
Shares issued upon exercise of options		12,911,000	(4,558,000)						8,353,000
Shares issued upon exercise of options (in shares)	1,576,500
Shares issued under flow-through agreement		1,913,000							1,913,000
Shares issued under flow-through agreement (in shares)	227,273
Share issue costs, net of taxes		(23,000)							(23,000)
Value assigned to options vested			3,502,000						3,502,000
Shares issued upon settlement of restricted share units		157,000							157,000
Shares issued upon settlement of restricted share units (in shares)	21,444
Other comprehensive earnings for the year						5,543,000			5,543,000
Earnings (Loss) for the year								36,620,000	36,620,000
Balance at the end of the year at Dec. 31, 2018		$ 1,140,890,000	$ 48,886,000	$ 17,603,000		$ (193,997,000)		$ (110,256,000)	$ 903,126,000
Balance at the end of the year (in shares) at Dec. 31, 2018	184,163,091

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NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2018

NATURE OF OPERATIONS

NATURE OF OPERATIONS

1.            NATURE OF OPERATIONS

Pretium Resources Inc. (the "Company") was incorporated under the laws of the Province of British Columbia, Canada on October 22, 2010. The address of the Company’s registered office is Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street, PO Box 49334, Vancouver, BC, V7X 1L4.

The Company was formed for the acquisition, exploration, development and operation of precious metal resource properties in the Americas. The Company’s primary asset is its wholly-owned underground Brucejack Mine located in northwestern British Columbia.

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BASIS OF PREPARATION

12 Months Ended

Dec. 31, 2018

BASIS OF PREPARATION

BASIS OF PREPARATION

2.             BASIS OF PREPARATION

Statement of compliance and basis of presentation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair value.

These consolidated financial statements were authorized for issue by the Board of Directors on February 14, 2019.

Change in accounting policies – IFRS 9, Financial Instruments

The Company has adopted IFRS 9 effective January 1, 2018. IFRS 9 replaces the provisions of IAS 39, Financial Instruments:  Recognition and Measurement (“IAS 39”) that relate to the recognition, classification and measurement of financial assets and financial liabilities, de-recognition of financial instruments, impairment of financial assets and hedge accounting.

Classification of financial assets and financial liabilities

IFRS 9 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or FVTPL. The classification of financial assets under IFRS 9 is generally based on the business model in which the financial asset is managed and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available for sale. The Company did not have any items classified as held to maturity or available for sale. Items classified as loans and receivables were recorded under IFRS 9 at amortized cost. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the financial instrument as a whole is assessed for classification. IFRS 9 retains the existing requirements in IAS 39 for the classification of financial liabilities. Under IAS 39, all fair value changes on liabilities designated under the fair value option were recognized in earnings (loss). Under IFRS 9, those fair value changes are generally presented as follows: (i) the amount that is attributable to changes in the credit risk of the liabilities is presented in other comprehensive income (loss) (“OCI”) and (ii) the remaining amount of change in the fair value is presented in earnings (loss).

Impairment of financial assets

IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss (“ECL”) model which is based on forward looking changes in credit quality since initial recognition. The ECL model requires judgment as to how changes in economic factors affect ECLs, which are determined on a probability-weighted basis.

The new impairment model applies to financial assets measured at amortized cost and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlier than under IAS 39.

Transition to IFRS 9

In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated. On adoption of IFRS 9, there were no differences in the carrying amounts of the Company’s financial assets and financial liabilities. There was a presentation change related to changes in fair value of the Company’s stream obligation which resulted in a reclassification of $7,901 ($5,768 net of deferred tax) from deficit to accumulated other comprehensive earnings (loss) (“AOCI”) at January 1, 2018.

IFRS 9 requires the gain or loss associated with changes in the fair value of the stream obligation to be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

To determine the cumulative impact of changes in the credit risk of the liability upon the adoption of IFRS 9, the Company compared the fair value of the pre-payable financial liability, excluding the gold and silver embedded derivatives, with a comparable value derived by substituting the current credit risk assumption with that used by the Company in determining the fair value of the stream obligation at inception.

As a result of an overall reduction in the Company’s credit risk since inception, the Company reclassified $7,901 ($5,768 net of deferred tax) from deficit to AOCI at January 1, 2018. As the stream obligation was repaid pursuant to its contractual terms (including the prepayment options), the remaining balance in AOCI of $307 ($225 net of deferred tax) will not reverse.

The following table shows the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at January 1, 2018.

	2017	2018		2017		2018
	classification under IAS 39	classification under IFRS 9		carrying amount under IAS 39		carrying amount under IFRS 9
Financial assets
Cash and cash equivalents	Loans and receivables	Amortized cost		$	56,285	$	56,285
Trade receivables	Loans and receivables with embedded derivatives	FVTPL			11,067		11,067
Other assets	FVTPL	FVTPL			132		132
Restricted cash	Loans and receivables	Amortized cost			5,036		5,036
Financial liabilities
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities		$	53,436	$	53,436
Restricted share unit liability	FVTPL	FVTPL			2,730		2,730
Senior secured term credit facility	Other financial liabilities	Other financial liabilities			365,890		365,890
Offtake obligation	FVTPL	FVTPL			78,085		78,085
Stream obligation	FVTPL	FVTPL	(1)		224,020		224,020
Debt portion of convertible note	Other financial liabilities	Other financial liabilities			76,582		76,582

⁽¹⁾ The fair value changes associated with the stream obligation attributable to the changes in the credit risk is presented in OCI and the remaining amount of the change in the fair value is presented in earnings (loss).

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

3.             SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

These consolidated financial statements include the financial statements of the Company and the entities controlled by the Company, its subsidiaries, listed in the following table:

Name of subsidiary	Place of incorporation	Proportion of ownership interest	Principal activity
Pretium Exploration Inc.	British Columbia, Canada	100%	Holds interest in the Brucejack Mine and Snowfield Project
0890696 BC Ltd.	British Columbia, Canada	100%	Holds real estate in Stewart, British Columbia

Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company and its subsidiaries is the United States dollar (“USD”), which is also the Company’s presentation currency. References to “$” or “USD” are to United States dollars, while references to “C$” or “CAD” are to Canadian dollars.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in earnings (loss) for the year.

Financial instruments

The following accounting policies reflect the Company’s adoption of IFRS 9 effective January 1, 2018. For the year ended December 31, 2017, the Company applied policies based on IAS 39. The effects of the transition from IAS 39 to IFRS 9 are described in the change in accounting policies section of note 2.

Financial assets – Classification

Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or FVOCI. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in earnings (loss) or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Financial assets – Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in earnings (loss).

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

· Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method.

· FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses.

· FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of earnings (loss) within other gains (losses) in the period in which it arises.

Changes in the fair value of financial assets at FVTPL are recognized in loss on financial instruments at fair value in the statement of earnings (loss) as applicable.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk.

Cash and cash equivalents and restricted cash

Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Restricted cash is held at major financial institutions as collateral for reclamation and surety bonds. Cash and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method.

Receivables and other

The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue.

Accounts payable and accrued liabilities and debt

Accounts payable and accrued liabilities, the debt portion of the convertible notes, the senior secured term credit facility and the senior secured loan facility are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method.

Derivatives

Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts, such as the offtake obligation and stream obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative.

Stream obligation

The Company has determined the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to classify and measure the entire hybrid stream obligation as a financial liability carried at fair value with changes in fair value recorded through earnings (loss). IFRS 9 requires the gain or loss associated with changes in the fair value of the stream be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

Inventories

Ore stockpiles, in-circuit and finished metal inventory (gold and silver) are valued at the lower of weighted average production cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form and estimated costs to sell.

Ore stockpile inventory represents ore on the surface or underground that has been extracted from the mine and is available for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being converted into a saleable form. Finished metal inventory represents gold and silver doré and concentrate located at the mine, in transit to customers and at refineries.

Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Replacement costs of materials and spare parts are generally used as the best estimate of net realizable value.

Any write-downs of inventory to net realizable value are recorded within cost of sales in the consolidated statements of earnings (loss). If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable value are reversed up to cost to the extent that the related inventory has not been sold.

Mineral properties

Mineral properties include the fair value attributable to mineral reserves and resources acquired in a business combination or asset acquisition, underground mine development costs and previously capitalized exploration and evaluation costs. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using gold ounces mined over the estimated recoverable proven and probable reserves at the mine.

Development costs incurred during production

The Company incurs development costs to build new raises and ramps (vertical development) that enable the Company to physically access ore underground. The time over which these costs will be incurred depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific areas of the mine and which only provide an economic benefit over a specific the period of mining are depleted using a unit-of-production method determined using gold ounces mined over the estimated proven and probable reserves in that particular area of the mine.

Plant and equipment

Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset. The purchase price or construction cost is the fair value of consideration given to acquire the asset.

Depreciation of plant and equipment commences when the asset has been fully commissioned and is available for its intended use.

A majority of mine and site infrastructure assets, including buildings, roads and transmission lines are depreciated using a unit-of-production method over the life of mine. Depreciation is determined each period using gold ounces mined over the estimated proven and probable reserves of the mine.

Depreciation of other assets, including those ancillary to the Brucejack Mine are calculated using the straight-line method to allocate cost over the estimated useful lives, as follows:

Asset class	Estimated useful life
Mine and mill equipment	5 - 18 years
Light vehicles	3 - 5 years
Office and computer equipment	3 - 5 years
Leasehold improvements	Term of lease

When significant components of an asset have different useful lives, depreciation is calculated on each separate component. Each asset or component’s estimated useful life has due regard to both its own physical life limitations and the present assessment of economically recoverable reserves of the Brucejack Mine.

Depreciation methods and estimated useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively.

Expenditures on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associated with the item will be available to the Company, the expenditure is capitalized and the carrying amount of the item replaced is derecognized. Similarly, overhaul costs associated with major maintenance are capitalized and depreciated over their useful lives where it is probable that the future economic benefits will be available and any remaining carrying amounts of the cost of previous overhauls are derecognized. All other costs are expensed as incurred.

An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of earnings (loss).

Construction in progress

Costs recorded for assets under construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of mineral properties, plant and equipment. No depreciation is recorded until the assets are substantially complete and available for their intended use.

Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to prepare for its intended use are capitalized as part of the cost of the asset. Capitalization of borrowing costs begins when there are borrowings and activities commence to prepare an asset for its intended use. Capitalization of borrowing costs ends when substantially all activity necessary to prepare a qualifying asset for its intended use are complete. When proceeds of project specific borrowings are invested on a temporary basis, borrowing costs are capitalized net of any investment income.

Exploration and evaluation expenditures

Exploration and evaluation expenditures include the costs of acquiring licenses and costs associated with exploration and evaluation activity. Exploration and evaluation expenditures are capitalized. Mineral property acquisition costs are capitalized. Exploration and evaluation costs incurred before the Company has obtained the legal rights to explore an area are expensed.

Once the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, expenditures are reclassified to mineral properties within mineral properties, plant and equipment.

The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including:

· The extent to which mineral reserves or mineral resources as defined in National Instrument 43‑101 have been identified through a feasibility study or similar document;

· The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study;

· The status of environmental permits; and

· The status of mining leases or permits.

Exploration and evaluation assets are tested for impairment immediately prior to reclassification to mineral properties.

Mineral exploration tax credits

Mineral exploration tax credits on eligible mineral exploration expenditures incurred are treated as a reduction of capitalized mineral properties. The credits are recorded when the amount is reliably measurable and it is considered probable that the tax credit will be recovered.

Mineral recoveries

The incidental proceeds from the sale of gold recovered from activities conducted during the exploration and evaluation stage are offset against the carrying value of the associated mineral properties, plant and equipment.

Impairment of non-financial assets

The carrying amounts of assets included in mineral properties, plant and equipment are reviewed for impairment whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit to which the asset belongs is determined. The recoverable amount of an asset or cash generating unit is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s carrying amount exceeds the recoverable amount, and is recorded as an expense immediately.

Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted.

Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Estimated future cash flows are calculated using estimated future prices, mineral reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate.

Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately.

Decommissioning and restoration provision

The Company has provisions for decommissioning and restoration costs which include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Decommissioning and restoration costs are a normal consequence of mining and the majority of decommissioning and restoration expenditures are incurred at the end of the life of mine.

Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate that reflect risks specific to the liability.

Each period the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each year for the unwinding of the discount rate, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision.

Share capital

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

Flow-through shares

The issuance of flow-through common shares results in the obligation to transfer the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sale of such shares to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into: a flow-through share premium, equal to the estimated premium that investors pay for the flow-through feature, which is recognized as a liability, and share capital. As the related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes a related income tax recovery.

Revenue recognition

The Company produces doré and concentrates which contain both gold and silver. The doré is further processed to produce refined metals for sale. The concentrates may be sold to smelters in concentrate form or further processed to produce refined metals for sale. The Company’s performance obligations relate primarily to the delivery of gold and silver to its customers. For gold, the Company is required to deliver gold equivalent to 100% of production up to 7,067,000 ounces into an offtake agreement (note 10c).

Revenue is recognized when control is transferred to the customer. Control transfers when a product is delivered to the customer, the customer has full discretion over the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product.

Control over the refined gold or silver produced from doré or concentrate is transferred to the customer and revenue recognized upon delivery to the customer’s bullion account.

Control over the gold and silver bearing concentrates is transferred to the customer and revenue recognized at the time the Company elects to settle the sale directly with the smelter or when the concentrates are loaded onto the vessel at the port of discharge, depending on the customer. Revenue from these sales are recognized net of treatment costs and refining charges.

For each physical shipment of doré, 90% of the estimated contained gold is available to be delivered to the customer's bullion account within approximately 10 days of arrival at the refinery. The balance of the contained gold is delivered the customer's bullion account following the final processing outturn.

For each physical shipment of doré, 100% of the contained silver is sold upon the final processing outturn. Silver revenue is recorded at the spot price on the date of sale.

For any physical shipment of concentrate, where the Company receives the refined gold rather than a cash payment, 90% of the estimated contained gold received is available to be delivered to the customer’s bullion account within approximately 15 – 30 days after the bill of lading date. The balance of the contained gold is delivered to the customer’s bullion account following the final processing outturn.

Revenue is required to be recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the product to the customer.

Sales of refined gold and silver are delivered directly into the offtake agreement and recorded at the spot price on the date of delivery. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period after the date of each sale. The difference between the spot price on the date of sale and the price paid by the purchaser reflects the settlement of a portion of the offtake obligation previously recorded on the statement of financial position. The Company receives payment for 90% of the value of each gold sale within 2 days of the date of sale. A final payment for 10% of the value of each gold sale, taking into account the purchaser’s pricing option, is received on the 7th day after the date of sale.

Concentrate sales which are cash settled directly with the smelter are recorded at the provisional price based on the estimated forward price to the date of final settlement. The final purchase price for these gold sales will be the average price for a period of time following the bill of lading date depending on the customer. Adjustments are made in subsequent periods to the customer receivables for these sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date. These changes in fair value are included in revenue on the statement of earnings (loss). The Company receives payment for 90% of the value of each concentrate shipment 15 – 30 days after the loading of the material at the port of discharge. A final payment for 10% of the value of each sale is received upon completion of final assays and final pricing based on a defined pricing period.

Share-based payments

Share options

Options granted to employees under the Company’s equity settled share-based option plan are measured at fair value at the date of grant. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase in contributed surplus in equity.

An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity-settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instruments granted at the date the non-employee receives the goods or the services.

Restricted share units (“RSU’s”)

RSU’s are granted to employees of the Company and are expected to be settled in cash. A liability for RSU’s is measured at fair value on the grant date and is subsequently adjusted for changes in fair value at each reporting date until settlement. The fair value of RSU’s is estimated based on the quoted market price of the Company’s common shares. The liability is recognized on a graded vesting basis over the vesting period, with a corresponding expense in the statement of earnings (loss).

Performance share units (“PSU’s”)

PSU’s are granted under the Company’s 2015 RSU Plan and are expected to be settled in cash. The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. Vesting, and therefore the liability, is based on the Company’s total shareholder return and the target settlement ranges from 0% to 200% of the original grant of units.

The fair value of a PSU reflects the value of a Company common share based on the quoted market price and the number of units issued is dependent upon the Company’s relative performance against a selected group of peer companies.

The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense over the vesting period in accordance with the vesting terms and conditions. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss).

Deferred share units (“DSU’s”)

DSU’s are granted to independent directors of the Company and are settled in cash when the individual ceases to be a director of the Company, either voluntarily or involuntarily. DSU’s vest immediately on the grant date. The fair value of a DSU reflects the value of a Company common share based on the quoted market price. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss).

Income and mining taxes

Income taxes include Canadian federal and provincial income taxes. Provincial mining taxes represent Canadian provincial taxes levied on mining operations. To the extent these taxes are determined based on a measure of taxable earnings, they are also accounted for as income taxes.

Income tax is recognized in earnings (loss) except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization.

A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized.

Contingent liabilities

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company. Contingent liabilities are disclosed unless the possibility of an outflow of economic resources is considered remote.

Earnings (loss) per share

The Company presents basic earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share is determined by adjusting the earnings (loss) attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares.

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CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

12 Months Ended

Dec. 31, 2018

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

4.            CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of financial statements requires the use of accounting estimates. It also requires management to exercise judgment in the process of applying its accounting policies. Estimates and judgments are regularly evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. The following discusses the most significant accounting judgments and accounting estimates that the Company has made in the preparation of the financial statements including those that could result in a material effect in the next financial year on the carrying amounts of assets and liabilities:

Key sources of accounting policy judgment

Impairment of mineral properties, plant and equipment

The application of the Company’s accounting policy for impairment of mineral properties, plant and equipment requires judgment to determine whether indicators of impairment exist. The review of impairment indicators includes consideration of both external and internal sources of information, including factors such as market and economic conditions, metal prices and forecasts, capital expenditure requirements, future operating costs and production volumes. Management has assessed impairment indicators on the Company’s mineral properties, plant and equipment and has concluded that no impairment indicators exist as of December 31, 2018.

Impairment of exploration and evaluation assets

The application of the Company’s accounting policy for impairment of exploration and evaluation assets requires judgment to determine whether indicators of impairment exist including factors such as, the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further exploration and evaluation of resource properties are budgeted and evaluation of the results of exploration and evaluation activities up to the reporting date. Management has assessed impairment indicators on the Company’s exploration and evaluation assets and has concluded that no impairment indicators exist as of December 31, 2018.

Estimation uncertainty

Mineral reserves and resources

The Company estimates its mineral reserves and resources based on information compiled by qualified persons as defined in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects requirements. The estimation of ore reserves and resources requires judgment to interpret available geological data then select an appropriate mining method and establish an extraction schedule. It also requires assumptions about future commodity prices, exchange rates, production costs and recovery rates. There are uncertainties inherent in estimating mineral reserves and resources and assumptions that are valid at the time of estimation and may change significantly when new information becomes available. New geological data as well as changes in the above assumptions may change the economic status of reserves and may, ultimately, result in the reserves being revised.

Changes in the proven and probable mineral reserves and measured and indicated and inferred mineral resources estimates may impact the carrying value of mineral properties, plant and equipment, the calculation of depletion and depreciation expense, measurement of the decommissioning and site restoration provision and recognition of deferred tax amounts.

Fair value of derivatives and other financial liabilities

The fair values of financial instruments that are not traded in an active market are determined using valuation techniques. Management uses its judgment to select a method of valuation and makes estimates of specific model inputs that are based on conditions existing at the end of each reporting period. Refer to Note 10 and 20 for further details on the methods and assumptions associated with the measurement of the construction financing liabilities.

The valuation of the convertible notes at inception was completed using a discounted cash flow analysis that required various estimates and assumptions, including the discount rate for a similar non-convertible instrument. Refer to Note 11 for further details on the methods and assumptions associated with measurement of the convertible notes.

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NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS

12 Months Ended

Dec. 31, 2018

NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS

NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS

5.             NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS

New accounting standard not yet adopted

A new accounting standard has been issued and is relevant to the Company but not yet effective and therefore not been applied in preparing these consolidated financial statements:

IFRS 16, Leases (“IFRS 16”)

IFRS 16 addresses accounting for leases and lease obligations. It replaces the existing leasing guidance in IAS 17, Leases. The objective of the new standard is to report all leases on the statement of financial position and to define how leases and lease liabilities are measured. IFRS 16 is effective from January 1, 2019 and must be applied retrospectively, subject to certain practical expedients, using either a full retrospective approach or a modified retrospective approach.

The Company is party to various leases as part of its mining operations. All leases will be recorded on the statement of financial position, except short-term leases and leases of low-value items. This is expected to result in a material increase to both assets (right of use) and liabilities (lease obligations) upon adoption of the standard, and changes to the timing of recognition and classification of expenses associated with such lease arrangements. The Company anticipates an increase in depreciation and depletion expense and interest and finance expense, and a decrease in operating expenses. The Company also anticipates an increase in cash flow from operating activities as lease payments will be recorded as financing outflows in the statement of cash flows.

The Company intends to adopt the modified retrospective approach and not restate balances for the comparative period. The Company has completed its review of all existing operating leases and service contracts to identify contracts in scope for IFRS 16 and assessed contracts for embedded leases. The Company is still in the process of evaluating its lease conclusions and the quantitative impact of the adoption.

There are no other IFRS’s or IFRIC interpretations that are not yet effective or early adopted that are expected to have a material impact on the Company.

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RECEIVABLES AND OTHER

12 Months Ended

Dec. 31, 2018

RECEIVABLES AND OTHER

RECEIVABLES AND OTHER

6.            RECEIVABLES AND OTHER

	December 31,		December 31,
	2018		2017
Trade receivables	$	14,487	$	11,067
Prepayments and deposits		3,332		2,064
Tax receivables		420		6,166
Other receivables		73		5
BC Mineral Exploration Tax Credit ("BCMETC") receivable		—		249
	$	18,312	$	19,551

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INVENTORIES

12 Months Ended

Dec. 31, 2018

INVENTORIES

INVENTORIES

7.INVENTORIES

	December 31,		December 31,
	2018		2017
Finished metal	$	12,745	$	15,309
Materials and supplies		11,548		8,201
In-circuit		458		2,163
	$	24,751	$	25,673

As at December 31, 2018,  $3,138 (2017 – $3,344) of depreciation and depletion and $199 (2017 – $371) of site share-based compensation was included in inventory.

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MINERAL PROPERTIES, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

MINERAL PROPERTIES, PLANT AND EQUIPMENT

MINERAL PROPERTIES, PLANT AND EQUIPMENT

8.            MINERAL PROPERTIES, PLANT AND EQUIPMENT

	Mineral		Construction		Plant and		Exploration and
	properties		in progress		equipment		evaluation assets		Total
Year ended December 31, 2017
Cost
Balance, January 1, 2017	$	382,294	$	633,181	$	21,064	$	242,788	$	1,279,327
Additions		—		324,641		297		3,928		328,866
Transfer from construction in progress to inventory		—		(8,192)		—		—		(8,192)
Transfer from construction in progress to plant and equipment		—		(523,488)		523,488		—		—
Transfer from construction in progress to mineral properties		420,419		(420,419)		—		—		—
Reversal (recoveries) of BCMETC		4,806		—		—		(253)		4,553
Balance, December 31, 2017	$	807,519	$	5,723	$	544,849	$	246,463	$	1,604,554
Accumulated depreciation and depletion
Balance, January 1, 2017	$	—	$	—	$	8,870	$	—	$	8,870
Depreciation and depletion		14,924		—		15,900		—		30,824
Balance, December 31, 2017	$	14,924	$	—	$	24,770	$	—	$	39,694
Net book value - December 31, 2017	$	792,595	$	5,723	$	520,079	$	246,463	$	1,564,860
Year ended December 31, 2018
Cost
Balance, January 1, 2018	$	807,519	$	5,723	$	544,849	$	246,463	$	1,604,554
Additions		641		17,935		1,199		5,544		25,319
Transfer from construction in progress to plant and equipment		—		(10,008)		10,008		—		—
Transfer from construction in progress to mineral properties		4,467		(4,467)		—		—		—
Balance, December 31, 2018	$	812,627	$	9,183	$	556,056	$	252,007	$	1,629,873
Accumulated depreciation and depletion
Balance, January 1, 2018	$	14,924	$	—	$	24,770	$	—	$	39,694
Depreciation and depletion		36,066		—		31,194		—		67,260
Balance, December 31, 2018	$	50,990	$	—	$	55,964	$	—	$	106,954
Net book value - December 31, 2018	$	761,637	$	9,183	$	500,092	$	252,007	$	1,522,919

(a) Mineral properties

Mineral properties consist solely of the Brucejack Mine.

(b) Plant and equipment

During the year ended December 31, 2018,  $67,260 (2017 - $28,862) of depreciation and depletion was recognized in the statement of earnings (loss) and nil (2017 - $1,962) was capitalized within construction in progress.

(c) Exploration and evaluation assets

Exploration and evaluation assets consists of the Snowfield Project and regional drilling and exploration work on the Bowser Claims.

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2018

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

9.            ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31,		December 31,
	2018		2017
Trade payables	$	24,814	$	35,142
Accrued liabilities		16,945		17,488
Employee benefit liability		4,398		4,783
Restricted share unit liability		1,502		2,730
Accrued interest on loan facility		1,051		—
Deferred share unit liability		997		—
Finance lease obligation		748		—
Accrued interest on convertible notes		660		660
Royalty payable		629		146
	$	51,744	$	60,949
Non-current portion of restricted share unit liability		(554)		(511)
Non-current portion of finance lease obligation		(518)		—
Current portion of accounts payable and accrued liabilities	$	50,672	$	60,438

(a) Finance lease obligation

Finance lease obligations are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

	December 31,		December 31,
	2018		2017
Gross finance lease obligation - minimum lease payments
1 year	$	277	$	—
2-3 years		527		—
4-5 years		35		—
	$	839	$	—
Future interest expense on finance lease obligation		(91)		—
	$	748	$	—

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LONG-TERM DEBT

12 Months Ended

Dec. 31, 2018

LONG-TERM DEBT

LONG-TERM DEBT

10.           LONG-TERM DEBT

As at December 31, 2018, the Company’s long-term debt consisted of the following:

	Senior						Senior
	secured term		Offtake		Stream		secured loan		Total long-
	credit facility		obligation		obligation		facility		term debt
Balance, January 1, 2017	$	232,438	$	67,702	$	201,020	$	—	$	501,160
Additional advances under the credit facility		85,205		—		—		—		85,205
Interest expense including amortization of discount		48,247		—		—		—		48,247
Settlement of offtake obligation		—		(1,543)		—		—		(1,543)
Loss on financial  instruments at fair value		—		11,926		23,000		—		34,926
Balance, December 31, 2017	$	365,890	$	78,085	$	224,020	$	—	$	667,995
Interest expense including amortization of discount		56,834		—		—		—		56,834
Settlement of offtake obligation		—		(4,423)		—		—		(4,423)
Loss (gain) on financial  instruments at fair value		—		(3,593)		20,574		—		16,981
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL		—		—		(7,594)		—		(7,594)
Repayment of credit facility		(422,724)		—		—		—		(422,724)
Repurchase of stream obligation		—		—		(237,000)		—		(237,000)
Proceeds from loan facility, net of transaction costs		—		—		—		472,051		472,051
Amortization of loan facility transaction costs		—		—		—		95		95
Balance, December 31, 2018	$	—	$	70,069	$	—	$	472,146	$	542,215
Current portion of long-term debt		—		(7,576)		—		(78,385)		(85,961)
Non-current portion of long-term debt	$	—	$	62,493	$	—	$	393,761	$	456,254

(a)  Senior secured loan facility

On December 18, 2018, the Company closed a $480,000 senior secured loan facility (the “loan facility”) with a syndicate of financial institutions arranged by The Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC. The loan facility is comprised of a $250,000 senior secured amortizing non-revolving credit facility (the “term facility”) and a $230,000 senior secured revolving credit facility (the “revolving facility”). The loan facility is secured by substantially all of the assets of the Company and its subsidiaries.

The term of the loan facility is four years, maturing on December 18, 2022. The loan facility was fully drawn as at December 31, 2018.

Each borrowing under the term and revolving facilities is available by way of USD London Inter-Bank Offered Rate (“LIBOR”) loans or USD base rate loans. The revolving facility is also available in various other forms, including Canadian prime loans, bankers’ acceptances, bankers’ acceptance equivalent loans, and letters of credit.

Borrowings comprising USD LIBOR loans shall bear interest at LIBOR plus an applicable margin of 2.5% to 3.5% based on the Company’s net leverage ratio. Borrowings comprising USD base rate loans shall bear interest at the administrative agent’s base rate plus an applicable margin of 1.5% to 2.5% based on the Company’s net leverage ratio. As at December 31, 2018, the LIBOR on the Company’s borrowings was 2.5%. Interest is payable on the last day of the interest period related to a borrowing. For the year ended December 31, 2018, $1,083 (2017 – nil) of interest expense was expensed as interest and finance expense in the statement of earnings (loss).

The term facility requires repayment in equal quarterly installments of principal in the amount of $16,667 commencing at the end of the second quarter of 2019. The revolving facility requires a principal repayment of $30,000 on June 18, 2019, reducing the available revolving facility to $200,000. The remaining principal of the revolving facility is required to be repaid as a bullet payment in full on the maturity date. Any unused portion of the revolving facility will be subject to a standby fee of 0.6% to 0.8%.

Transaction costs associated with the loan facility were $7,949 including an underwriting fee equal to 1.55% of the amount of the commitment related to the loan facility. The transactions costs will be amortized over the term of the loan. For the year ended December 31, 2018, $95 (2017 – nil) of amortization of the loan facility transaction costs were expensed to interest and finance expense in the statement of earnings (loss).

The effective interest rate for the loan facility as at December 31, 2018 is 5.9%. The Company is subject to financial covenants including interest coverage ratio, leverage ratio, tangible net worth and minimum liquidity under the terms of the loan facility. As at December 31, 2018, the Company was in compliance with all financial covenants.

(b)  Senior secured term credit facility

On September 21, 2015, the Company closed a construction financing comprised of a senior secured term credit facility (the “credit facility”) for $350,000, an offtake agreement, a $150,000 callable gold and silver stream agreement and a private placement of common shares for $40,000.

Pursuant to the terms of the credit facility, the Company borrowed $350,000 at a stated interest rate of 7.5%, compounded quarterly and payable upon maturity.

The credit facility matured December 31, 2018 and was subject to an extension for one year, at the Company’s option upon payment of an extension fee of 2.5% of the principal amount, including accumulated interest. The Company had the right to repay at par plus accrued interest after the second anniversary of closing. The embedded derivatives associated with the prepayment and extension options were recorded on the statement of financial position as other assets. For the year ended December 31, 2018, the change in fair value of these embedded derivatives was a fair value loss of $132 (2017 – $1,624) which resulted in a nil balance for other assets on the statement of financial position.

As a result of the impact of the offtake obligation, the arrangement fees and the prepayment and extension options, the effective interest rate on the credit facility was 15.0%. For the year ended December 31, 2018, the Company expensed $56,834 (2017 – $26,091) of interest on the credit facility to the statement of earnings (loss) and capitalized nil (2017 - $22,156) to mineral properties, plant and equipment.

On December 18, 2018, the Company used proceeds from the loan facility to repay the credit facility in the amount of $422,724 which included principal and accrued interest.

(c)  Offtake obligation

The Company entered into an agreement pursuant to which it will deliver 100% of refined gold up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale.

The Company has the option to reduce the offtake obligation by up to 75% by paying $13 per ounce effective December 31, 2019 on the then remaining undelivered gold ounces.

For the year ended December 31, 2018, the Company delivered 371,223 (2017 – 121,671) ounces of gold under the offtake agreement. Of the amount settled, the Company physically delivered 249,799 (2017 – 94,169) ounces from doré production and purchased 121,424 (2017 – 27,502) ounces to satisfy delivery of gold produced from concentrate sales. The settlement of the gold ounces resulted in a decrease in the offtake obligation of $4,423 (2017 – $1,543).

The offtake obligation is recorded at fair value at each statement of financial position date. For the year ended December 31, 2018, the change in fair value of the offtake obligation was a fair value gain of $3,593 (2017 – loss of $11,926).

(d)   Stream obligation

Pursuant to the stream, the Company was obligated to deliver, subject to prepayment options, 8% of up to 7,067,000 ounces of refined gold and 8% of up to 26,297,000 ounces of refined silver commencing on January 1, 2020 (less gold and silver sold to date) and a payment of $20,000. Upon delivery, the Company was entitled to (a) for gold, the lesser of $400 per ounce and the gold market price and (b) for silver, the lesser of $4 per ounce and the silver market price. Any excess of market over the fixed prices above would be credited against the deposit. Any remaining uncredited balance of the deposit was repayable, without interest, upon the earlier of the date (i) the aggregate stated gold and silver quantities have been delivered and (ii) 40 years.

The Company had the option to repurchase the stream obligation for $237,000 on December 31, 2018. The Company exercised this option and repurchased the stream obligation on December 18, 2018.

The stream obligation was recorded at fair value at each statement of financial position date. For the year ended December 31, 2018, the change in fair value of the stream obligation was a fair value loss of $12,980 (2017 –    $23,000). Of the change in fair value, a fair value loss of $20,574 (2017 – $23,000) was recognized in the statement of earnings (loss) and a fair value gain due to the change in the Company's credit risk of $7,594 ($5,543 net of deferred tax) was recognized in OCI.

As the stream was in substance a debt instrument, the effective interest on the debt host was capitalized as a borrowing cost during the development of the Brucejack Mine. For the year ended December 31, 2018, the Company capitalized nil (2017 – $10,120) of interest on the stream debt to mineral properties, plant and equipment. The capitalized interest was reclassified from the loss on financial instruments at fair value recorded in the statement of earnings (loss). The effective interest rate on the stream obligation was 9.5%.

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CONVERTIBLE NOTES

12 Months Ended

Dec. 31, 2018

CONVERTIBLE NOTES

CONVERTIBLE NOTES

11. CONVERTIBLE NOTES

On February 14, 2017, the Company completed an offering of $100,000 aggregate principal amount of unsecured convertible senior subordinated notes due 2022 (the “Notes”) which mature on March 15, 2022 and bear an interest rate of 2.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year.

The Notes are convertible into common shares of the Company at a fixed conversion rate, subject to certain anti-dilution adjustments. In addition, if certain fundamental changes occur, holders of the Notes may be entitled to an increased conversion rate. The Notes are convertible into common shares of the Company at an initial conversion rate of 62.5 common shares per $1 principal amount of Notes converted, representing an initial conversion price of $16.00 per common share.

The Company may not redeem the Notes before March 20, 2020, except in the event of certain changes in Canadian tax law. At any time on or after March 20, 2020, the Company may redeem all or part of the Notes for cash, but only if the last reported sale price of the Company’s common shares for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price. The redemption price will equal to the sum of (1) 100% of the principal amount of the notes to be redeemed and (2) accrued and unpaid interest, if any, to the redemption date.

The Company is required to offer to purchase for cash all of the outstanding Notes upon a fundamental change, at a purchase price in cash equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, to the fundamental change purchase date.

At initial recognition, the net proceeds of the Notes were bifurcated into its debt and equity components of $71,685 and $24,110  ($17,603 net of deferred tax) respectively. The fair value of the debt portion was estimated using a discounted cash flow model method based on an expected life of five years and a discount rate of 8.6%.  

The debt portion has been designated a financial liability at amortized cost and is recorded net of transaction costs and accreted over the expected life using the effective interest rate of 7.8%. For the year ended December 31, 2018,  $5,568 (2017 – $2,807) of accretion of convertible notes was expensed to the statement of earnings (loss) and nil (2017 – $2,090) was capitalized to mineral properties, plant and equipment.

The movement in the debt portion of the Notes during the period comprised the following:

	For the year ended
	December 31,		December 31,
	2018		2017
Opening balance	$	76,582	$	—
Face value of convertible notes		—		100,000
Transaction costs associated with convertible notes		—		(4,205)
Equity component of convertible notes, net of allocated transaction costs		—		(24,110)
Accretion of convertible notes		5,568		4,897
Ending balance	$	82,150	$	76,582

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DECOMMISSIONING AND RESTORATION PROVISION

12 Months Ended

Dec. 31, 2018

DECOMMISSIONING AND RESTORATION PROVISION

DECOMMISSIONING AND RESTORATION PROVISION

12.          DECOMMISSIONING AND RESTORATION PROVISION

(a)  Reclamation bonds

In relation to the Brucejack Mine, the Company has $2,029 of restricted cash (2017 - $5,036) which includes $1,749 (2017 - $4,731) in the form of Guaranteed Investment Certificates and Letters of Credit as security deposits with various government agencies in relation to decommissioning and restoration provisions.

In support of the closure plan for the Brucejack Mine, the Company increased its security through a surety bond by C$8,500, for total surety bonds of C$22,700 in favour of the Ministry of Energy and Mines. The Company was not required to provide collateral for the additional bond.

(b)  Decommissioning and restoration provision

The Company has a liability for remediation of current and past disturbances associated with the exploration, development and production activities at the Brucejack Mine. The decommissioning and restoration provision is as follows:

	For the year ended
	December 31,		December 31,
	2018		2017
Opening balance	$	18,436	$	13,675
Change in discount rate		215		(1,933)
Accretion of decommissioning and restoration provision		568		465
Change in amount and timing of cash flows		(272)		6,229
Ending balance	$	18,947	$	18,436

For the year ended December 31, 2018, the provision increased due to a decrease in the discount rate. The Company used an inflation rate of 1.9% (2017 – 1.9%) and a discount rate of 2.4% (2017 – 2.5%) in calculating the estimated obligation. The liability for retirement and remediation on an undiscounted basis before inflation is $20,369 (2017 – $21,989).  The majority of the expected expenditures to settle the decommissioning and restoration provision are expected to occur shortly after the end of the mine life.

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REVENUE

12 Months Ended

Dec. 31, 2018

REVENUE

REVENUE

13.REVENUE

Revenue by metal was:

	For the year ended
	December 31,		December 31,
	2018		2017
Gold revenue	$	452,253	$	175,793
Silver revenue		5,362		1,994
Revenue from contracts with customers	$	457,615	$	177,787
(Loss) gain on trade receivables at fair value		(3,059)		146
	$	454,556	$	177,933

Revenue from contracts with customers by product was:

	For the year ended
	December 31,		December 31,
	2018		2017
Gold revenue - doré	$	315,068	$	122,684
Gold revenue - concentrate		137,185		53,109
Silver revenue - concentrate		3,120		1,345
Silver revenue - doré		2,242		649
	$	457,615	$	177,787

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COST OF SALES

12 Months Ended

Dec. 31, 2018

COST OF SALES

COST OF SALES

14.COST OF SALES

	For the year ended
	December 31,		December 31,
	2018		2017
Consultants and contractors	$	100,873	$	47,907
Depreciation and depletion		67,134		28,722
Salaries and benefits		46,946		20,534
Supplies and consumables		29,146		10,547
Royalties and selling costs		19,739		7,308
Energy		13,408		5,104
Travel and camp accommodation		7,052		4,113
Freight		4,416		5,242
Camp administrative costs		3,931		1,410
Rentals		3,402		1,462
Site share-based compensation		2,160		1,198
Insurance		1,451		813
		299,658		134,360
Change in inventories		4,269		(9,280)
	$	303,927	$	125,080

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CORPORATE ADMINISTRATIVE COSTS

12 Months Ended

Dec. 31, 2018

CORPORATE ADMINISTRATIVE COSTS

CORPORATE ADMINISTRATIVE COSTS

15.CORPORATE ADMINISTRATIVE COSTS

	For the year ended
	December 31,		December 31,
	2018		2017
Salaries and benefits	$	6,026	$	9,710
Share-based compensation		4,140		4,846
Office		1,580		1,020
Investor relations		1,318		1,064
Professional fees		1,085		801
Insurance		774		507
Listing and filing fees		390		381
Travel and accommodation		349		347
Depreciation		126		140
	$	15,788	$	18,816

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INTEREST AND FINANCE EXPENSE

12 Months Ended

Dec. 31, 2018

INTEREST AND FINANCE EXPENSE

INTEREST AND FINANCE EXPENSE

16.INTEREST AND FINANCE EXPENSE

	For the year ended
	December 31,		December 31,
	2018		2017
Interest expense on credit facility	$	56,834	$	26,091
Interest expense on convertible notes		7,818		3,941
Interest expense on loan facility		1,178		—
Accretion of decommissioning and restoration provision		568		465
Other interest expense		483		70
Bank charges		29		88
Interest expense on finance leases		16		—
	$	66,926	$	30,655

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CAPITAL AND RESERVES

12 Months Ended

Dec. 31, 2018

CAPITAL AND RESERVES

CAPITAL AND RESERVES

17.          CAPITAL AND RESERVES

(a)  Share capital

At December 31, 2018, the authorized share capital consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares with no par value.

On July 25, 2018, the Company completed a non-brokered private placement of 227,273 flow-through common shares at a price of C$13.20 per share for gross proceeds of $2,304 before share issuance costs of $31. The Company bifurcated the gross proceeds between share capital of $1,913 and flow-through share premium of $391.

On June 30, 2017 and July 14, 2017, the Company completed two tranches of a private placement of 329,000 flow-through common shares at a price of C$15.20 per flow-through share for combined gross proceeds of $3,891, before share issuance costs of $30. The Company bifurcated the gross proceeds between share capital of $3,182 and flow-through share premium of $709.  

(b)  Stock options

The Company has adopted an incentive stock option plan which provides that the Board of Directors of the Company may from time to time, in their discretion, and in accordance with Toronto Stock Exchange requirements, grant to its directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issue does not exceed 10% of the number of then outstanding common shares. Such options can be exercisable for a maximum of five years from the date of grant. The exercise price of each stock option is set by the Board of Directors at the time of grant but cannot be less than the market price. Vesting of stock options is at the discretion of the Board of Directors at the time the options are granted.

The following table summarizes the changes in share options for the year ended December 31:

	2018			2017
		Weighted			Weighted
		average			average
	Number of	exercise price		Number of	exercise price
	options	(in CAD)		options	(in CAD)
Outstanding, January 1,	6,454,327	$	9.32	7,524,727	$	9.05
Granted	615,592		10.60	1,067,875		12.83
Exercised	(1,576,500)		6.95	(1,822,025)		9.40
Expired	(882,750)		13.52	(290,000)		14.64
Forfeited	(47,750)		12.72	(26,250)		10.43
Outstanding, December 31,	4,562,919	$	9.47	6,454,327	$	9.32

For options exercised during the period, the related weighted average share price at the time of exercise was C$10.76 (2017 – C$13.33).

The following table summarizes information about share options outstanding and exercisable at December 31, 2018:

	Share options outstanding		Share options exercisable
				Weighted
	Number of	Weighted	Number of	average
	options	average years	options	exercise price
Exercise prices (in CAD)	outstanding	to expiry	exercisable	(in CAD)
$5.85 - $7.99	1,647,075	1.58	1,647,075	$	7.04
$8.00 - $9.99	1,615,469	2.65	1,214,877		9.20
$10.00 - $11.99	130,000	3.13	77,200		10.73
$12.00 - $13.99	1,135,375	3.94	319,530		13.04
$14.00 - $15.99	35,000	2.61	35,000		15.17
Outstanding, December 31, 2018	4,562,919	2.60	3,293,682	$	8.59

The total share-based compensation expense for the year ended December 31, 2018 was $3,502 (2017 – $3,733) of which $3,502 (2017 – $2,367) was expensed in the statement of earnings (loss) and nil (2017 – $1,366) was capitalized to mineral properties, plant and equipment.

The following are the weighted average assumptions employed to estimate the fair value of options granted for the year ended December 31, 2018 and 2017 using the Black-Scholes option pricing model:

	For the year ended
	December 31,		December 31,
	2018		2017
Risk-free interest rate	2.23	%	1.42	%
Expected volatility	58.46	%	63.63	%
Expected life	5 years		5 years
Expected dividend yield	Nil		Nil

Option pricing models require the input of subjective assumptions including the expected price volatility, and expected option life. Changes in these assumptions may have a significant impact on the fair value calculation.

(c)  2015 RSU Plan – RSU's

The Company adopted the 2015 RSU Plan to allow the Board of Directors to grant its employees and consultants, non-transferable share units based on the value of the Company’s share price at the date of grant. The awards have a graded vesting schedule over a three-year period and can be either cash or equity settled upon vesting at the discretion of the Board of Directors.

The associated compensation cost is recorded in share-based compensation expense unless directly attributable to mineral properties, plant and equipment.

The following table summarizes the changes in RSU’s for the year ended December 31:

	2018			2017
		Weighted			Weighted
	Number of	average fair		Number of	average fair
	RSU's	value (in CAD)		RSU's	value (in CAD)
Outstanding, January 1,	729,064	$	14.41	735,729	$	10.65
Granted	481,230		9.78	370,472		12.96
Settled	(385,063)		9.67	(355,648)		13.07
Forfeited	(83,345)		11.16	(21,489)		13.85
Outstanding, December 31,	741,886	$	11.31	729,064	$	14.41

At December 31, 2018, a liability of $1,271 (2017 – $2,715) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $1,558 (2017 – $3,365) was expensed in the statement of earnings (loss) as share-based compensation expense and nil (2017 – $687) was capitalized to mineral properties, plant and equipment.

(d)  2015 RSU plan – PSU’s

PSU’s are granted to senior executive management under the 2015 RSU Plan. The PSU’s vest at the end of the third year and the number of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies.

The following table summarizes the changes in PSU’s for the year ended December 31:

	2018			2017
		Weighted			Weighted
	Number of	average fair		Number of	average fair
	PSU's	value (in CAD)		PSU's	value (in CAD)
Outstanding, January 1,	74,140	$	14.41	—	$	—
Granted	91,945		9.78	74,140		13.08
Outstanding, December 31,	166,085	$	11.31	74,140	$	14.41

At December 31, 2018, a liability of $231 (2017 – $15) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $226 (2017 – $15) was expensed in the statement of earnings (loss) as share-based compensation expense.

(e)  2018 DSU Plan – DSU’s

During the year ended December 31, 2018, the Company established a DSU plan (“2018 DSU Plan”) for the benefit of the directors of the Company. Pursuant to the plan, eligible directors can elect to receive all or part of their total cash compensation in the form of DSU’s. The number of DSU’s granted to an eligible director is determined by dividing the portion of the compensation to be paid in DSU’s by the fair market value of the Company’s common shares on the conversion date. In addition, the Board may, at its discretion, grant additional DSU’s to plan participants. Each eligible director will be required to hold DSU’s received until the eligible director ceases to be a director of the Company, following which the DSU’s will be settled in cash.

The following table summarizes the changes in DSU’s for the year ended December 31:

	2018			2017
		Weighted			Weighted
	Number of	average fair		Number of	average fair
	DSU’s	value (in CAD)		DSU’s	value (in CAD)
Outstanding, January 1,	—	$	—	—	$	—
Granted	117,587		9.78	—		—
Outstanding, December 31,	117,587	$	11.57	—	$	—

At December 31, 2018, a liability of $997 (2017 – nil) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $1,014 (2017 – nil) was expensed in the statement of earnings (loss) as share-based compensation expense.

(f)  Earnings (loss) per share

The calculation of diluted earnings (loss) per share was based on earnings (loss) attributable to ordinary shareholders and the weighted-average number of shares outstanding after adjustments for the effect of potential dilutive shares. For the year ended December 31, 2018, potential share issuances arising from the exercise of share options and the settlement of restricted share units in common shares were included in the calculation of diluted weighted average shares outstanding as well as their impact on earnings (loss) attributable to shareholders of the Company. Potentially dilutive shares associated with the convertible notes and share options (out of the money) were not included in the diluted earnings (loss) per share calculation as their effect was anti-dilutive.

The following table summarizes the calculation of basic and diluted earnings (loss) per share:

	For the year ended
	December 31,		December 31,
	2018		2017
Net earnings (loss) for the year	$	36,620	$	(16,453)
Basic weighted average number of common shares outstanding		182,905,004		181,208,295
Effective impact of dilutive securities:
Share options		955,963		—
Restricted share units		20,950		—
Diluted weighted average number of common shares outstanding		183,881,917		181,208,295
Earnings (loss) per share
Basic	$	0.20	$	(0.09)
Diluted	$	0.20	$	(0.09)

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RELATED PARTIES

12 Months Ended

Dec. 31, 2018

RELATED PARTIES

RELATED PARTIES

18.           RELATED PARTIES

Transactions with key management

Key management includes the Company’s directors (executive and non-executive) and executive officers including its Executive Chairman (“Exec Chair”), its President and Chief Executive Officer, its Executive Vice President and Chief Financial Officer, its Vice President, Operations, its Vice President and Chief Exploration Officer, and its Executive Vice President, Corporate Affairs and Sustainability.

Directors and key management compensation:

	For the year ended
	December 31,		December 31,
	2018		2017
Salaries and benefits	$	5,851	$	9,228
Share-based compensation		3,559		5,029
	$	9,410	$	14,257

Under the terms of the Exec Chair’s employment agreement, effective January 1, 2017, the Exec Chair is entitled to a retirement allowance which remains due and payable in full in the event the Exec Chair terminates his employment with the Company. In 2017, the entire retirement allowance was expensed in the amount of $4,469 (C$6,000).  The retirement allowance remains a current liability as at December 31, 2018 (note 9).

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SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2018

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

19.           SUPPLEMENTAL CASH FLOW INFORMATION

The net change in non-cash working capital items included in mineral properties, plant and equipment were as follows:

	For the year ended
	December 31,		December 31,
	2018		2017
Taxes receivable	$	—	$	4,522
Accounts payable and accrued liabilities		(9,168)		(89,358)
	$	(9,168)	$	(84,836)

The net change in the Company’s financing liabilities were as follows:

	Long-term		Convertible
	debt		notes
Liabilities from financing activities, January 1, 2017	$	501,160	$	—
Advance under credit facility		97,000		—
Net proceeds from convertible notes		—		95,795
Cash payments		—		(1,319)
Other non-cash movements		69,835		(17,894)
Liabilities from financing activities, December 31, 2017	$	667,995	$	76,582
Proceeds from loan facility, net of transaction costs		472,384		—
Cash payments		(659,724)		(2,250)
Other non-cash movements		61,560		7,818
Liabilities from financing activities, December 31, 2018	$	542,215	$	82,150

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FINANCIAL RISK MANAGEMENT

12 Months Ended

Dec. 31, 2018

FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT

20.           FINANCIAL RISK MANAGEMENT

Financial risk management

The Company has exposure to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk from its use of financial instruments.

This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Risk management is the responsibility of management and is carried out under policies approved by the Board of Directors. Material risks are monitored and are regularly discussed with the Audit Committee and Board of Directors.

(a)  Market risk

Market risk is the risk that changes in market price, such as foreign exchange rates, interest rates and commodity prices which will affect the Company’s cash flows or value of its financial instruments.

(i) Currency risk

The Company is subject to currency risk on financial instruments which are denominated in currencies that are not the same as the functional currency of the entity that holds them. Exchange gains and losses would impact earnings (loss).

The Company is exposed to currency risk through cash and cash equivalents, receivables and other excluding trade receivables, restricted cash and accounts payable and accrued liabilities which are denominated in CAD.

The Company has not hedged its exposure to currency fluctuations at this time.

The following table shows the impact on pre-tax earnings of a 10% change in the USD/CAD exchange rate on financial assets and liabilities denominated in CAD, as of December 31, 2018, with all other variables held constant:

	Impact of currency rate change on pre-tax earnings
	10% increase		10% decrease
Cash and cash equivalents	$	1,085	$	(1,085)
Receivables and other, excluding trade receivables		90		(90)
Restricted cash		203		(203)
Accounts payable and accrued liabilities		(4,905)		4,905

In addition to currency risk from financial instruments, a significant portion of the Company’s mine production costs, capital expenditures and corporate administrative costs are denominated in CAD. Consequently, fluctuations in the USD exchange rate against the CAD increases the volatility of cost of sales and corporate administrative costs.

(ii) Interest rate risk

The Company is subject to interest rate risk with respect to its investments in cash and cash equivalents. The Company’s current policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash and cash equivalents in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash and cash equivalents mature impact interest income earned.

The Company is subject to interest rate risk with respect to its loan facility. Interest rates associated with this facility are based on LIBOR and the administrative agents' base rate which fluctuates based on market conditions.

The Company is also subject to interest rate risk with respect to the fair value of the offtake obligation which is accounted for at FVTPL.

The following table shows the impact on pre-tax earnings of a 1% change in interest rates on financial assets and liabilities as of December 31, 2018, with all other variables held constant:

	Impact of interest rate change on pre-tax earnings
	1% increase		1% decrease
Cash and cash equivalents	$	1,087	$	(1,087)
Senior secured loan facility		(173)		173
Offtake obligation		2,049		(1,947)

(iii) Commodity price risk

The Company is subject to commodity price risk from fluctuations in the market prices for gold and silver. Commodity price risks are affected by many factors that are outside the Company’s control including global or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability and costs of metal substitutes, inflation and political and economic conditions.

The financial instruments impacted by commodity prices are the trade receivables and the offtake obligation (a derivative liability).

Price adjustments are made in subsequent periods to the customer receivables for concentrate sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date.

The Company has not hedged the price of any commodity at this time as it is not permitted to hedge under the terms of the offtake obligation.

The following table shows the impact on pre-tax earnings from changes in the fair values of financial instruments with a 10% change in gold and silver commodity prices. The impact of a 10% movement in commodity prices as of December 31, 2018, with all other variables held constant, is as follows:

	Impact of price change on pre-tax earnings
	10% increase			10% decrease
Trade receivables	$	8,844	$	(8,844)
Offtake obligation		(2,588)		3,799

(b)  Credit risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents, trade receivables, tax receivables and restricted cash.

The carrying amount of financial assets represents the maximum credit exposure:

	December 31,		December 31,
	2018		2017
Cash and cash equivalents	$	45,407	$	56,285
Trade receivables		14,487		11,067
Tax receivables		420		6,166
Restricted cash		2,029		5,036
	$	62,343	$	78,554

The Company limits its exposure to credit risk on financial assets through investing its cash and cash equivalents and restricted cash with high-credit quality financial institutions. Management believes the risk of loss related to these deposits to be low. The Company continually evaluates changes in the status of its counterparties.

We are exposed to credit risk through our trade receivables, which are principally with internationally recognized counterparties. The Company sells its gold and silver to its lenders, refineries located in Canada and the United States and trading companies. The Company has had limited instances of default from its counterparties. The Company continually evaluates its counterparties in which it sells its product. The Company is not economically dependent on a limited number of customers for the sale of its gold and silver as its products can be sold through numerous world-wide commodity markets. As at December 31, 2018, the Company has $14,487 (2017 – $11,067) receivables related to its gold and silver revenue.

(c)  Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of its financial assets and liabilities. Cash flow forecasting is performed regularly. To the extent the Company does not believe it has sufficient liquidity to meet obligations, it will consider securing additional debt or equity funding.

The Company's cash and cash equivalents are currently invested in business and savings accounts with high-credit quality financial institutions which are available on demand by the Company for its operating and capital expenditures. The Company also holds government and surety bonds to support future environmental obligations.

The Company’s financial obligations consist of accounts payable and accrued liabilities including the restricted share unit liability, long-term debt consisting of the loan facility and the offtake obligation, and the convertible notes.

As at December 31, 2018, the Company has cash and cash equivalents of $45,407 and a working capital (current assets less current liabilities) deficit of $48,163. On December 18, 2018, the Company completed a $480,000 loan facility with a syndicate of financial institutions arranged by the Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC which was used to refinance the credit facility in the total amount of $422,724. The additional funds from the loan facility and cash on hand generated from operating activities were used to repurchase the stream obligation for $237,000. Based on management’s cash flow projections, the Company expects that future operating and debt settlement requirements will be satisfied from operating cash flows.

The maturity analysis of financial liabilities as at December 31, 2018 is as follows:

							More than
	1 year		2-3 years		4-5 years		5 years		Total
Principal repayments on loan facility	$	80,000	$	133,333	$	266,667	$	—	$	480,000
Convertible notes		—		—		100,000		—		100,000
Interest payments on loan facility(1)		25,186		35,890		12,041		—		73,117
Accounts payable and accrued liabilities		43,385		—		—		—		43,385
Interest on convertible notes		2,250		4,500		1,116		—		7,866
Restricted share unit liability		948		554		—		—		1,502
Finance lease obligation		277		527		35		—		839
	$	152,046	$	174,804	$	379,859	$	—	$	706,709

⁽¹⁾ Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility.

Capital management

The Company’s objectives in the managing of capital are to safeguard the Company’s ability to continue as a going concern and provide financial capacity to meet its strategic objectives. Management monitors the amount of cash, debt instruments and equity in the capital structure and adjusts the capital structure, as necessary, to support the operation, development and exploration of its mine and projects.

The capital structure of the Company consists of debt instruments and equity attributable to common shareholders, comprising of issued share capital, contributed surplus, AOCI and accumulated deficit.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue new debt, acquire or dispose of assets to facilitate the management of its capital requirements.

The Company prepares detailed annual budgets and cash flow forecasts for mining, development and corporate activities that are approved by the Board of Directors. Forecasts are regularly reviewed and updated for changes in circumstances so that appropriate capital allocation, investment and financing decisions are made for the Company.

Fair value estimation

The Company’s financial assets and liabilities are measured and recognized according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy are as follows:

Level 1:        Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2:        Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3:        Inputs for the asset or liability that are not based on observable market data

The carrying values of cash and cash equivalents, receivables and other, accounts payable and accrued liabilities and the loan facility approximate their fair values due to the short-term maturity of these financial instruments.

The following tables present the Company’s financial assets and liabilities by level within the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

	Carrying value						Fair value
			Amortized		Other financial
As at December 31, 2018	FVTPL		cost		liabilities		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	—	$	45,407	$	—	$	—	$	—	$	—
Trade receivables		14,487		—		—		—		14,487		—
Restricted cash		—		2,029		—		—		—		—
	$	14,487	$	47,436	$	—	$	—	$	14,487	$	—
Financial liabilities
Accounts payable and accrued liabilities	$	—	$	—	$	43,048	$	—	$	—	$	—
Restricted share unit liability		1,502		—		—		—		1,502		—
Deferred share unit liability		997		—		—		—		997		—
Senior secured loan facility		—		—		472,146		—		—		—
Offtake obligation		70,069		—		—		—		—		70,069
Debt portion of convertible note		—		—		82,150		—		82,150		—
	$	72,568	$	—	$	597,344	$	—	$	84,649	$	70,069

	Carrying value						Fair value
			Loans and		Other financial
As at December 31, 2017	FVTPL		receivables		liabilities		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	—	$	56,285	$	—	$	—	$	—	$	—
Trade receivables		—		11,067		—		—		11,067		—
Other assets		132		—		—		—		—		132
Restricted cash		—		5,036		—		—		—		—
	$	132	$	72,388	$	—	$	—	$	11,067	$	132
Financial liabilities
Accounts payable and accrued liabilities	$	—	$	—	$	53,436	$	—	$	—	$	—
Restricted share unit liability		2,730		—		—		—		2,730		—
Senior secured term credit facility		—		—		365,890		—		—		—
Offtake obligation		78,085		—		—		—		—		78,085
Stream obligation (1)		224,020		—		—		—		—		224,020
Debt portion of convertible note		—		—		76,582		—		76,582		—
	$	304,835	$	—	$	495,908	$	—	$	79,312	$	302,105

⁽¹⁾ The stream obligation was recorded at fair value at each statement of financial position date as the Company determined that the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to measure the stream obligation in its entirety at FVTPL.

The embedded derivative assets were valued using Monte Carlo simulation valuation models with principal inputs related to the credit facility including the risk-free interest rate and the Company’s and lender’s credit spread.

The offtake and stream obligations were valued using Monte Carlo simulation valuation models. The key inputs used by the Monte Carlo simulation in valuing both the offtake and stream obligations include: the gold forward curve based on Comex futures, long-term gold volatility, call option exercise prices and risk-free rate of return.

In addition, in valuing the stream obligation, management used the following significant observable inputs: the silver forward curve based on Comex futures and the long-term silver volatility and gold/silver correlation.

The valuation of the offtake and stream obligations also require estimation of the Company’s non-performance or credit risk and the anticipated production schedule of gold and silver ounces delivered over the life of mine.

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TAXATION

12 Months Ended

Dec. 31, 2018

TAXATION

TAXATION

21.           TAXATION

(a)  Deferred income tax liability

The tax effects of temporary differences between amounts recorded in the Company’s accounts and the corresponding amounts as computed for income tax purposes gives rise to deferred tax liability as follows:

	December 31,		December 31,
	2018		2017
Tax loss carry forwards	$	74,400	$	53,266
Long term debt		10,798		22,525
Investment tax credits		6,545		6,545
Financing costs		4,310		4,288
Other		2,080		756
Decommissioning and restoration provision		—		4,978
Inventories		(847)		(964)
Provincial mining tax attributes		(6,088)		—
Mineral interests		(106,434)		(91,394)
	$	(15,236)	$	—

Deductible temporary differences for which no deferred tax assets are recognized are as follows:

	December 31,		December 31,
	2018		2017
Provincial mining tax attributes	$	18,947	$	16,408
Decommissioning and restoration provision		18,947		—
Other		68		68
Tax loss carry forwards		—		59,472
	$	37,962	$	75,948

The Company has tax losses in Canada of approximately $275,265 (2017 - $256,463) expiring in various amounts from 2030 to 2038. The Company also has investment tax credits totaling approximately $8,965 (2017 - $8,965). The Company has deductible temporary differences for which no deferred tax assets have been recognized of $37,962 (2017 - $75,948). A deferred tax asset has not been recognized in respect of the differences, as it is not probable that sufficient future taxable earnings will be available in the periods when deductions from such potential assets will be realized.  

(b)  Income tax expense (recovery)

The Company’s  income tax expense (recovery) is comprised of the following:

	For the year ended
	December 31,		December 31,
	2018		2017
Current tax expense	$	4,196	$	1,621
Deferred income tax expense (recovery)		12,668		(7,022)
	$	16,864	$	(5,401)

The provision for income taxes differs from the amount calculated using the Canadian federal and provincial statutory income tax rates of 27.0% (2017 – 26.0%)  as follows:

	For the year ended
	December 31,		December 31,
	2018		2017
Expected tax (recovery) expense	$	14,441	$	(5,680)
Change in income tax rates		—		(574)
Provincial mining taxes		800		1,621
Change in unrecognized temporary differences		(10,942)		7,679
Share-based compensation and other items		943		988
Flow-through shares		823		842
Flow-through share premium		(526)		(574)
Impact of foreign exchange on CAD denominated tax attributes		11,735		(12,550)
Non-temporary differences		(410)		2,847
	$	16,864	$	(5,401)

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COMMITMENTS

12 Months Ended

Dec. 31, 2018

COMMITMENTS

COMMITMENTS

22.           COMMITMENTS

The following table provides the Company’s gross contractual obligations as of December 31, 2018:

							More than
	1 year		2-3 years		4-5 years		5 years		Total
Principal repayments on loan facility	$	80,000		133,333	$	266,667	$	—	$	480,000
Repayment of convertible notes		2,250		4,500		101,116		—		107,866
Interest payments on loan facility(1)		25,186		35,890		12,041		—		73,117
Decommissioning and restoration provision		422		51		—		18,474		18,947
Operating leases		4,571		7,649		1,462		122		13,804
Purchase commitments		5,568		—		—		—		5,568
Finance lease obligation		277		527		35		—		839
	$	118,274	$	181,950	$	381,321	$	18,596	$	700,141

⁽¹⁾ Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility.

(a)  Commitments – Brucejack Mine

The Company and the Nisga’a Nation have entered into a comprehensive Cooperation and Benefits Agreement in respect of the Brucejack Mine. Under the terms of the Agreement, the Nisga’a Nation will provide ongoing support for the development and operation of Brucejack with participation in its economic benefits.

The Brucejack Mine is subject to a 1.2% net smelter returns royalty (“1.2% NSR royalty”) on production in excess of cumulative 503,386 ounces of gold and 17,907,080 ounces of silver. The gold ounce production threshold for the 1.2% NSR royalty was met in December 2018. For the year ended December 31, 2018, $258 (2017 – nil) was expensed to royalties and selling costs in the statement of earnings (loss).

(b)  Commitments – Offtake obligation

Under the offtake agreement, the Company is obligated to sell 100% of refined gold (in excess of any delivered ounces pursuant to the stream obligation) up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale.

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CONTINGENCIES

12 Months Ended

Dec. 31, 2018

CONTINGENCIES

CONTINGENCIES

23.           CONTINGENCIES

The Company is involved in various claims, litigation and other matters in the ordinary course and conduct of business. Some of these pending matters will take a number of years to resolve. While it is not possible to determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such outcomes, it is the Company’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its consolidation financial position or results of operations.

(a)  Canadian class action

On October 29, 2013, David Wong, a shareholder of the Company, filed a proposed class action against the Company, Robert Quartermain (a director, and the President and the CEO of the Company at such time) and Snowden Mining Industry Consultants Ltd. (the “Wong Action”). The Wong Action was filed in the Ontario Superior Court of Justice.

The Wong Action alleges that the price of our shares on the TSX and NYSE suffered a significant drop in value following the announcement on October 9, 2013 of the resignation of Strathcona Mineral Services Ltd. (“Strathcona”), the consultant responsible for overseeing and reporting on the 10,000-tonne bulk sample, and the announcement of Strathcona’s reasons for resigning on October 22, 2013.

The Wong Action claims C$60,000 in general damages on behalf of a class of persons who acquired the Company’s securities between July 23, 2013 and October 21, 2013. Snowden Mining Industry Consultants Ltd. is no longer a defendant in the Wong Action.

The plaintiff in the Wong Action brought a motion for leave to commence an action under the secondary market provisions in Part XXIII.1 of the Ontario Securities Act. The motion was heard on May 29 and 30, 2017. The Court allowed the plaintiff’s motion on July 20, 2017. The Company was denied leave to appeal this decision. The Company and Robert Quartermain consented to, and on January 23, 2019 the Court granted, an order certifying the Wong Action as a class proceeding pursuant to the Class Proceedings Act (Ontario).

The Company believes that the allegations made against it in the Wong Action are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for the Wong Action.

(b)  2013 United States class actions

Between October 25, 2013 and November 18, 2013, five putative class action complaints were filed in the United States against the Company and certain of its officers and directors, alleging that defendants violated the United States securities laws by misrepresenting or failing to disclose material information concerning the Brucejack Mine. All five actions were filed in the United States District Court for the Southern District of New York (the “District Court”).

In January 2014, the District Court ordered that these actions be consolidated into a single action, styled In re Pretium Resources Inc. Securities Litigation, Case No. 13‑CV‑7552. The District Court appointed as lead plaintiffs in the consolidated action three individuals who are suing on behalf of a putative class of shareholders who purchased or otherwise acquired the Company’s common shares between June 11, 2013 and October 22, 2013.

In March 2014, the plaintiffs filed a consolidated amended class action complaint, which the Company moved to dismiss in May 2014. In July 2014, the plaintiffs filed a second consolidated amended class action complaint (“Second Amended Complaint”). The Company moved to dismiss the Second Amended Complaint on September 5, 2014. Plaintiffs filed their Opposition to the Company’s Motion to Dismiss on October 20, 2014, and the Company filed a reply brief on November 19, 2014.

In June 2017, the District Court granted the Company’s Motion to Dismiss the Second Amended Complaint. The District Court ruled in favour of the Company and the officers and directors named as defendants on all claims and ordered the case closed. The plaintiffs filed their Notice of Appeal from the decision, to the United States Court of Appeals for the Second Circuit (the “Second Circuit”), on July 10, 2017. The plaintiffs’ opening brief on appeal was filed on October 2, 2017. The Company filed its response brief on December 8, 2017 and the plaintiffs filed their reply brief on December 22, 2017. Oral argument on the plaintiffs’ appeal was heard by the Second Circuit on March 16, 2018.

On May 1, 2018, the Second Circuit affirmed the District Court’s order dismissing the plaintiffs’ Second Amended Complaint in its entirety for failure to state a claim under the U.S. securities laws.

(c)  2018 United States class actions

Two putative class action complaints were filed against the Company and certain of its officers in the United States District Court for the Southern District of New York, one on September 7, 2018 and the other on October 19, 2018. The complaints have been filed on behalf of an alleged class of all persons and entities who purchased or acquired shares of the Company between July 21, 2016 and September 6, 2018, and relate to public disclosures of the Company made between July 2016 and September 2018 regarding the Brucejack Mine. The Company has been served with one of the two complaints. Aurico Gold Fund LP has filed a motion to consolidate the two cases, appoint itself as lead plaintiff, and approve lead plaintiff’s selection of counsel. The Company has retained legal counsel in connection with these matters.

The Company believes that the allegations made against it and its officers in the aforementioned complaints are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for these actions.  

(d)  Construction claims

On April 24, 2017, Bear Creek Contracting Ltd. (“Bear Creek”) filed a Notice of Civil Claim against the Company (the “Bear Creek Action”) alleging that the Company owes Bear Creek C$14,563 in general damages in connection with work undertaken at the Brucejack Mine transmission line. The Bear Creek Action was filed in the Supreme Court of British Columbia. The Company filed a Response to Civil Claim on July 31, 2017, opposing all of the claims and allegations made. Notices of Civil Claim have also been filed by Blue Max Drilling Inc. (April 24, 2017), More Core Diamond Drilling Services Ltd. (March 27, 2017), and Lakelse Air Ltd. (February 23, 2018) who were subcontractors working under Bear Creek. Responses to Civil Claim have been filed in those actions and the claims are understood to be subsumed in the amount claimed by Bear Creek. It is expected that the four actions will be joined. 

The Company believes that the allegations made against it in the Bear Creek Action, and the other actions, are meritless and will vigorously defend the matter, although no assurance can be given with respect to the ultimate outcome of such proceedings. The Company has not accrued any amounts for any of the actions.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

Basis of consolidation

These consolidated financial statements include the financial statements of the Company and the entities controlled by the Company, its subsidiaries, listed in the following table:

Name of subsidiary	Place of incorporation	Proportion of ownership interest	Principal activity
Pretium Exploration Inc.	British Columbia, Canada	100%	Holds interest in the Brucejack Mine and Snowfield Project
0890696 BC Ltd.	British Columbia, Canada	100%	Holds real estate in Stewart, British Columbia

Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

Foreign currency translation

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company and its subsidiaries is the United States dollar (“USD”), which is also the Company’s presentation currency. References to “$” or “USD” are to United States dollars, while references to “C$” or “CAD” are to Canadian dollars.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in earnings (loss) for the year.

Financial instruments

Financial instruments

The following accounting policies reflect the Company’s adoption of IFRS 9 effective January 1, 2018. For the year ended December 31, 2017, the Company applied policies based on IAS 39. The effects of the transition from IAS 39 to IFRS 9 are described in the change in accounting policies section of note 2.

Financial assets – Classification

Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or FVOCI. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in earnings (loss) or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Financial assets – Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in earnings (loss).

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

· Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method.

· FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses.

· FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of earnings (loss) within other gains (losses) in the period in which it arises.

Changes in the fair value of financial assets at FVTPL are recognized in loss on financial instruments at fair value in the statement of earnings (loss) as applicable.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk.

Cash and cash equivalents and restricted cash

Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Restricted cash is held at major financial institutions as collateral for reclamation and surety bonds. Cash and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method.

Receivables and other

The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue.

Accounts payable and accrued liabilities and debt

Accounts payable and accrued liabilities, the debt portion of the convertible notes, the senior secured term credit facility and the senior secured loan facility are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method.

Derivatives

Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts, such as the offtake obligation and stream obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative.

Stream obligation

The Company has determined the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to classify and measure the entire hybrid stream obligation as a financial liability carried at fair value with changes in fair value recorded through earnings (loss). IFRS 9 requires the gain or loss associated with changes in the fair value of the stream be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate.

Inventories

Inventories

Ore stockpiles, in-circuit and finished metal inventory (gold and silver) are valued at the lower of weighted average production cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form and estimated costs to sell.

Ore stockpile inventory represents ore on the surface or underground that has been extracted from the mine and is available for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being converted into a saleable form. Finished metal inventory represents gold and silver doré and concentrate located at the mine, in transit to customers and at refineries.

Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Replacement costs of materials and spare parts are generally used as the best estimate of net realizable value.

Any write-downs of inventory to net realizable value are recorded within cost of sales in the consolidated statements of earnings (loss). If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable value are reversed up to cost to the extent that the related inventory has not been sold.

Mineral properties

Mineral properties

Mineral properties include the fair value attributable to mineral reserves and resources acquired in a business combination or asset acquisition, underground mine development costs and previously capitalized exploration and evaluation costs. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using gold ounces mined over the estimated recoverable proven and probable reserves at the mine.

Development costs incurred during production

Development costs incurred during production

The Company incurs development costs to build new raises and ramps (vertical development) that enable the Company to physically access ore underground. The time over which these costs will be incurred depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific areas of the mine and which only provide an economic benefit over a specific the period of mining are depleted using a unit-of-production method determined using gold ounces mined over the estimated proven and probable reserves in that particular area of the mine.

Plant and equipment

Plant and equipment

Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset. The purchase price or construction cost is the fair value of consideration given to acquire the asset.

Depreciation of plant and equipment commences when the asset has been fully commissioned and is available for its intended use.

A majority of mine and site infrastructure assets, including buildings, roads and transmission lines are depreciated using a unit-of-production method over the life of mine. Depreciation is determined each period using gold ounces mined over the estimated proven and probable reserves of the mine.

Depreciation of other assets, including those ancillary to the Brucejack Mine are calculated using the straight-line method to allocate cost over the estimated useful lives, as follows:

Asset class	Estimated useful life
Mine and mill equipment	5 - 18 years
Light vehicles	3 - 5 years
Office and computer equipment	3 - 5 years
Leasehold improvements	Term of lease

When significant components of an asset have different useful lives, depreciation is calculated on each separate component. Each asset or component’s estimated useful life has due regard to both its own physical life limitations and the present assessment of economically recoverable reserves of the Brucejack Mine.

Depreciation methods and estimated useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively.

Expenditures on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associated with the item will be available to the Company, the expenditure is capitalized and the carrying amount of the item replaced is derecognized. Similarly, overhaul costs associated with major maintenance are capitalized and depreciated over their useful lives where it is probable that the future economic benefits will be available and any remaining carrying amounts of the cost of previous overhauls are derecognized. All other costs are expensed as incurred.

An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of earnings (loss).

Construction in progress

Construction in progress

Costs recorded for assets under construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of mineral properties, plant and equipment. No depreciation is recorded until the assets are substantially complete and available for their intended use.

Borrowing costs

Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to prepare for its intended use are capitalized as part of the cost of the asset. Capitalization of borrowing costs begins when there are borrowings and activities commence to prepare an asset for its intended use. Capitalization of borrowing costs ends when substantially all activity necessary to prepare a qualifying asset for its intended use are complete. When proceeds of project specific borrowings are invested on a temporary basis, borrowing costs are capitalized net of any investment income.

Exploration and evaluation expenditures

Exploration and evaluation expenditures

Exploration and evaluation expenditures include the costs of acquiring licenses and costs associated with exploration and evaluation activity. Exploration and evaluation expenditures are capitalized. Mineral property acquisition costs are capitalized. Exploration and evaluation costs incurred before the Company has obtained the legal rights to explore an area are expensed.

Once the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, expenditures are reclassified to mineral properties within mineral properties, plant and equipment.

The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including:

· The extent to which mineral reserves or mineral resources as defined in National Instrument 43‑101 have been identified through a feasibility study or similar document;

· The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study;

· The status of environmental permits; and

· The status of mining leases or permits.

Exploration and evaluation assets are tested for impairment immediately prior to reclassification to mineral properties.

Mineral exploration tax credits

Mineral exploration tax credits

Mineral exploration tax credits on eligible mineral exploration expenditures incurred are treated as a reduction of capitalized mineral properties. The credits are recorded when the amount is reliably measurable and it is considered probable that the tax credit will be recovered.

Mineral recoveries

Mineral recoveries

The incidental proceeds from the sale of gold recovered from activities conducted during the exploration and evaluation stage are offset against the carrying value of the associated mineral properties, plant and equipment.

Impairment of non-financial assets

Impairment of non-financial assets

The carrying amounts of assets included in mineral properties, plant and equipment are reviewed for impairment whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit to which the asset belongs is determined. The recoverable amount of an asset or cash generating unit is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s carrying amount exceeds the recoverable amount, and is recorded as an expense immediately.

Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted.

Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Estimated future cash flows are calculated using estimated future prices, mineral reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate.

Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately.

Decommissioning and restoration provision

Decommissioning and restoration provision

The Company has provisions for decommissioning and restoration costs which include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Decommissioning and restoration costs are a normal consequence of mining and the majority of decommissioning and restoration expenditures are incurred at the end of the life of mine.

Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate that reflect risks specific to the liability.

Each period the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each year for the unwinding of the discount rate, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision.

Share capital

Share capital

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

Flow-through shares

Flow-through shares

The issuance of flow-through common shares results in the obligation to transfer the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sale of such shares to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into: a flow-through share premium, equal to the estimated premium that investors pay for the flow-through feature, which is recognized as a liability, and share capital. As the related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes a related income tax recovery.

Revenue recognition

Revenue recognition

The Company produces doré and concentrates which contain both gold and silver. The doré is further processed to produce refined metals for sale. The concentrates may be sold to smelters in concentrate form or further processed to produce refined metals for sale. The Company’s performance obligations relate primarily to the delivery of gold and silver to its customers. For gold, the Company is required to deliver gold equivalent to 100% of production up to 7,067,000 ounces into an offtake agreement (note 10c).

Revenue is recognized when control is transferred to the customer. Control transfers when a product is delivered to the customer, the customer has full discretion over the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product.

Control over the refined gold or silver produced from doré or concentrate is transferred to the customer and revenue recognized upon delivery to the customer’s bullion account.

Control over the gold and silver bearing concentrates is transferred to the customer and revenue recognized at the time the Company elects to settle the sale directly with the smelter or when the concentrates are loaded onto the vessel at the port of discharge, depending on the customer. Revenue from these sales are recognized net of treatment costs and refining charges.

For each physical shipment of doré, 90% of the estimated contained gold is available to be delivered to the customer's bullion account within approximately 10 days of arrival at the refinery. The balance of the contained gold is delivered the customer's bullion account following the final processing outturn.

For each physical shipment of doré, 100% of the contained silver is sold upon the final processing outturn. Silver revenue is recorded at the spot price on the date of sale.

For any physical shipment of concentrate, where the Company receives the refined gold rather than a cash payment, 90% of the estimated contained gold received is available to be delivered to the customer’s bullion account within approximately 15 – 30 days after the bill of lading date. The balance of the contained gold is delivered to the customer’s bullion account following the final processing outturn.

Revenue is required to be recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the product to the customer.

Sales of refined gold and silver are delivered directly into the offtake agreement and recorded at the spot price on the date of delivery. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period after the date of each sale. The difference between the spot price on the date of sale and the price paid by the purchaser reflects the settlement of a portion of the offtake obligation previously recorded on the statement of financial position. The Company receives payment for 90% of the value of each gold sale within 2 days of the date of sale. A final payment for 10% of the value of each gold sale, taking into account the purchaser’s pricing option, is received on the 7th day after the date of sale.

Concentrate sales which are cash settled directly with the smelter are recorded at the provisional price based on the estimated forward price to the date of final settlement. The final purchase price for these gold sales will be the average price for a period of time following the bill of lading date depending on the customer. Adjustments are made in subsequent periods to the customer receivables for these sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date. These changes in fair value are included in revenue on the statement of earnings (loss). The Company receives payment for 90% of the value of each concentrate shipment 15 – 30 days after the loading of the material at the port of discharge. A final payment for 10% of the value of each sale is received upon completion of final assays and final pricing based on a defined pricing period.

Share-based payments

Share-based payments

Share options

Options granted to employees under the Company’s equity settled share-based option plan are measured at fair value at the date of grant. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase in contributed surplus in equity.

An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity-settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instruments granted at the date the non-employee receives the goods or the services.

Restricted share units (“RSU’s”)

RSU’s are granted to employees of the Company and are expected to be settled in cash. A liability for RSU’s is measured at fair value on the grant date and is subsequently adjusted for changes in fair value at each reporting date until settlement. The fair value of RSU’s is estimated based on the quoted market price of the Company’s common shares. The liability is recognized on a graded vesting basis over the vesting period, with a corresponding expense in the statement of earnings (loss).

Performance share units (“PSU’s”)

PSU’s are granted under the Company’s 2015 RSU Plan and are expected to be settled in cash. The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. Vesting, and therefore the liability, is based on the Company’s total shareholder return and the target settlement ranges from 0% to 200% of the original grant of units.

The fair value of a PSU reflects the value of a Company common share based on the quoted market price and the number of units issued is dependent upon the Company’s relative performance against a selected group of peer companies.

The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense over the vesting period in accordance with the vesting terms and conditions. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss).

Deferred share units (“DSU’s”)

DSU’s are granted to independent directors of the Company and are settled in cash when the individual ceases to be a director of the Company, either voluntarily or involuntarily. DSU’s vest immediately on the grant date. The fair value of a DSU reflects the value of a Company common share based on the quoted market price. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss).

Income and mining taxes

Income and mining taxes

Income taxes include Canadian federal and provincial income taxes. Provincial mining taxes represent Canadian provincial taxes levied on mining operations. To the extent these taxes are determined based on a measure of taxable earnings, they are also accounted for as income taxes.

Income tax is recognized in earnings (loss) except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization.

A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized.

Contingent liabilities

Contingent liabilities

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company. Contingent liabilities are disclosed unless the possibility of an outflow of economic resources is considered remote.

Earnings (loss) per share

Earnings (loss) per share

The Company presents basic earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share is determined by adjusting the earnings (loss) attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares.

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BASIS OF PREPARATION (Tables)

12 Months Ended

Dec. 31, 2018

BASIS OF PREPARATION

Schedule of original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at January 1, 2018

	2017	2018		2017		2018
	classification under IAS 39	classification under IFRS 9		carrying amount under IAS 39		carrying amount under IFRS 9
Financial assets
Cash and cash equivalents	Loans and receivables	Amortized cost		$	56,285	$	56,285
Trade receivables	Loans and receivables with embedded derivatives	FVTPL			11,067		11,067
Other assets	FVTPL	FVTPL			132		132
Restricted cash	Loans and receivables	Amortized cost			5,036		5,036
Financial liabilities
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities		$	53,436	$	53,436
Restricted share unit liability	FVTPL	FVTPL			2,730		2,730
Senior secured term credit facility	Other financial liabilities	Other financial liabilities			365,890		365,890
Offtake obligation	FVTPL	FVTPL			78,085		78,085
Stream obligation	FVTPL	FVTPL	(1)		224,020		224,020
Debt portion of convertible note	Other financial liabilities	Other financial liabilities			76,582		76,582

⁽¹⁾ The fair value changes associated with the stream obligation attributable to the changes in the credit risk is presented in OCI and the remaining amount of the change in the fair value is presented in earnings (loss).

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

Schedule of basis of consolidation

Name of subsidiary	Place of incorporation	Proportion of ownership interest	Principal activity
Pretium Exploration Inc.	British Columbia, Canada	100%	Holds interest in the Brucejack Mine and Snowfield Project
0890696 BC Ltd.	British Columbia, Canada	100%	Holds real estate in Stewart, British Columbia

Schedule of estimated useful lives

Asset class	Estimated useful life
Mine and mill equipment	5 - 18 years
Light vehicles	3 - 5 years
Office and computer equipment	3 - 5 years
Leasehold improvements	Term of lease

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RECEIVABLES AND OTHER (Tables)

12 Months Ended

Dec. 31, 2018

RECEIVABLES AND OTHER

Schedule of receivables and other

	December 31,		December 31,
	2018		2017
Trade receivables	$	14,487	$	11,067
Prepayments and deposits		3,332		2,064
Tax receivables		420		6,166
Other receivables		73		5
BC Mineral Exploration Tax Credit ("BCMETC") receivable		—		249
	$	18,312	$	19,551

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2018

INVENTORIES

Schedule of inventories

	December 31,		December 31,
	2018		2017
Finished metal	$	12,745	$	15,309
Materials and supplies		11,548		8,201
In-circuit		458		2,163
	$	24,751	$	25,673

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

MINERAL PROPERTIES, PLANT AND EQUIPMENT

Schedule of mineral properties, plant and equipment

	Mineral		Construction		Plant and		Exploration and
	properties		in progress		equipment		evaluation assets		Total
Year ended December 31, 2017
Cost
Balance, January 1, 2017	$	382,294	$	633,181	$	21,064	$	242,788	$	1,279,327
Additions		—		324,641		297		3,928		328,866
Transfer from construction in progress to inventory		—		(8,192)		—		—		(8,192)
Transfer from construction in progress to plant and equipment		—		(523,488)		523,488		—		—
Transfer from construction in progress to mineral properties		420,419		(420,419)		—		—		—
Reversal (recoveries) of BCMETC		4,806		—		—		(253)		4,553
Balance, December 31, 2017	$	807,519	$	5,723	$	544,849	$	246,463	$	1,604,554
Accumulated depreciation and depletion
Balance, January 1, 2017	$	—	$	—	$	8,870	$	—	$	8,870
Depreciation and depletion		14,924		—		15,900		—		30,824
Balance, December 31, 2017	$	14,924	$	—	$	24,770	$	—	$	39,694
Net book value - December 31, 2017	$	792,595	$	5,723	$	520,079	$	246,463	$	1,564,860
Year ended December 31, 2018
Cost
Balance, January 1, 2018	$	807,519	$	5,723	$	544,849	$	246,463	$	1,604,554
Additions		641		17,935		1,199		5,544		25,319
Transfer from construction in progress to plant and equipment		—		(10,008)		10,008		—		—
Transfer from construction in progress to mineral properties		4,467		(4,467)		—		—		—
Balance, December 31, 2018	$	812,627	$	9,183	$	556,056	$	252,007	$	1,629,873
Accumulated depreciation and depletion
Balance, January 1, 2018	$	14,924	$	—	$	24,770	$	—	$	39,694
Depreciation and depletion		36,066		—		31,194		—		67,260
Balance, December 31, 2018	$	50,990	$	—	$	55,964	$	—	$	106,954
Net book value - December 31, 2018	$	761,637	$	9,183	$	500,092	$	252,007	$	1,522,919

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2018

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Schedule of accounts payable and accrued liabilities

	December 31,		December 31,
	2018		2017
Trade payables	$	24,814	$	35,142
Accrued liabilities		16,945		17,488
Employee benefit liability		4,398		4,783
Restricted share unit liability		1,502		2,730
Accrued interest on loan facility		1,051		—
Deferred share unit liability		997		—
Finance lease obligation		748		—
Accrued interest on convertible notes		660		660
Royalty payable		629		146
	$	51,744	$	60,949
Non-current portion of restricted share unit liability		(554)		(511)
Non-current portion of finance lease obligation		(518)		—
Current portion of accounts payable and accrued liabilities	$	50,672	$	60,438

Schedule of finance lease obligation

	December 31,		December 31,
	2018		2017
Gross finance lease obligation - minimum lease payments
1 year	$	277	$	—
2-3 years		527		—
4-5 years		35		—
	$	839	$	—
Future interest expense on finance lease obligation		(91)		—
	$	748	$	—

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LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2018

LONG-TERM DEBT

Schedule of long-term debt

	Senior						Senior
	secured term		Offtake		Stream		secured loan		Total long-
	credit facility		obligation		obligation		facility		term debt
Balance, January 1, 2017	$	232,438	$	67,702	$	201,020	$	—	$	501,160
Additional advances under the credit facility		85,205		—		—		—		85,205
Interest expense including amortization of discount		48,247		—		—		—		48,247
Settlement of offtake obligation		—		(1,543)		—		—		(1,543)
Loss on financial  instruments at fair value		—		11,926		23,000		—		34,926
Balance, December 31, 2017	$	365,890	$	78,085	$	224,020	$	—	$	667,995
Interest expense including amortization of discount		56,834		—		—		—		56,834
Settlement of offtake obligation		—		(4,423)		—		—		(4,423)
Loss (gain) on financial  instruments at fair value		—		(3,593)		20,574		—		16,981
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL		—		—		(7,594)		—		(7,594)
Repayment of credit facility		(422,724)		—		—		—		(422,724)
Repurchase of stream obligation		—		—		(237,000)		—		(237,000)
Proceeds from loan facility, net of transaction costs		—		—		—		472,051		472,051
Amortization of loan facility transaction costs		—		—		—		95		95
Balance, December 31, 2018	$	—	$	70,069	$	—	$	472,146	$	542,215
Current portion of long-term debt		—		(7,576)		—		(78,385)		(85,961)
Non-current portion of long-term debt	$	—	$	62,493	$	—	$	393,761	$	456,254

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CONVERTIBLE NOTES (Tables)

12 Months Ended

Dec. 31, 2018

CONVERTIBLE NOTES

Schedule of convertible notes

	For the year ended
	December 31,		December 31,
	2018		2017
Opening balance	$	76,582	$	—
Face value of convertible notes		—		100,000
Transaction costs associated with convertible notes		—		(4,205)
Equity component of convertible notes, net of allocated transaction costs		—		(24,110)
Accretion of convertible notes		5,568		4,897
Ending balance	$	82,150	$	76,582

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DECOMMISSIONING AND RESTORATION PROVISION (Tables)

12 Months Ended

Dec. 31, 2018

DECOMMISSIONING AND RESTORATION PROVISION

Schedule of the decommissioning and restoration provision

	For the year ended
	December 31,		December 31,
	2018		2017
Opening balance	$	18,436	$	13,675
Change in discount rate		215		(1,933)
Accretion of decommissioning and restoration provision		568		465
Change in amount and timing of cash flows		(272)		6,229
Ending balance	$	18,947	$	18,436

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REVENUE (Tables)

12 Months Ended

Dec. 31, 2018

REVENUE

Schedule of revenue by metal

	For the year ended
	December 31,		December 31,
	2018		2017
Gold revenue	$	452,253	$	175,793
Silver revenue		5,362		1,994
Revenue from contracts with customers	$	457,615	$	177,787
(Loss) gain on trade receivables at fair value		(3,059)		146
	$	454,556	$	177,933

Schedule of revenue from contracts with customers

	For the year ended
	December 31,		December 31,
	2018		2017
Gold revenue - doré	$	315,068	$	122,684
Gold revenue - concentrate		137,185		53,109
Silver revenue - concentrate		3,120		1,345
Silver revenue - doré		2,242		649
	$	457,615	$	177,787

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COST OF SALES (Tables)

12 Months Ended

Dec. 31, 2018

COST OF SALES

Schedule of cost of sales

	For the year ended
	December 31,		December 31,
	2018		2017
Consultants and contractors	$	100,873	$	47,907
Depreciation and depletion		67,134		28,722
Salaries and benefits		46,946		20,534
Supplies and consumables		29,146		10,547
Royalties and selling costs		19,739		7,308
Energy		13,408		5,104
Travel and camp accommodation		7,052		4,113
Freight		4,416		5,242
Camp administrative costs		3,931		1,410
Rentals		3,402		1,462
Site share-based compensation		2,160		1,198
Insurance		1,451		813
		299,658		134,360
Change in inventories		4,269		(9,280)
	$	303,927	$	125,080

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CORPORATE ADMINISTRATIVE COSTS (Tables)

12 Months Ended

Dec. 31, 2018

CORPORATE ADMINISTRATIVE COSTS

Schedule of corporate administrative costs

	For the year ended
	December 31,		December 31,
	2018		2017
Salaries and benefits	$	6,026	$	9,710
Share-based compensation		4,140		4,846
Office		1,580		1,020
Investor relations		1,318		1,064
Professional fees		1,085		801
Insurance		774		507
Listing and filing fees		390		381
Travel and accommodation		349		347
Depreciation		126		140
	$	15,788	$	18,816

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INTEREST AND FINANCE (INCOME) EXPENSE (Tables)

12 Months Ended

Dec. 31, 2018

INTEREST AND FINANCE EXPENSE

Schedule of interest and finance expense

	For the year ended
	December 31,		December 31,
	2018		2017
Interest expense on credit facility	$	56,834	$	26,091
Interest expense on convertible notes		7,818		3,941
Interest expense on loan facility		1,178		—
Accretion of decommissioning and restoration provision		568		465
Other interest expense		483		70
Bank charges		29		88
Interest expense on finance leases		16		—
	$	66,926	$	30,655

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CAPITAL AND RESERVES (Tables)

12 Months Ended

Dec. 31, 2018

CAPITAL AND RESERVES

Summary of changes in stock options

	2018			2017
		Weighted			Weighted
		average			average
	Number of	exercise price		Number of	exercise price
	options	(in CAD)		options	(in CAD)
Outstanding, January 1,	6,454,327	$	9.32	7,524,727	$	9.05
Granted	615,592		10.60	1,067,875		12.83
Exercised	(1,576,500)		6.95	(1,822,025)		9.40
Expired	(882,750)		13.52	(290,000)		14.64
Forfeited	(47,750)		12.72	(26,250)		10.43
Outstanding, December 31,	4,562,919	$	9.47	6,454,327	$	9.32

Summary of information about stock options outstanding and exercisable

	Share options outstanding		Share options exercisable
				Weighted
	Number of	Weighted	Number of	average
	options	average years	options	exercise price
Exercise prices (in CAD)	outstanding	to expiry	exercisable	(in CAD)
$5.85 - $7.99	1,647,075	1.58	1,647,075	$	7.04
$8.00 - $9.99	1,615,469	2.65	1,214,877		9.20
$10.00 - $11.99	130,000	3.13	77,200		10.73
$12.00 - $13.99	1,135,375	3.94	319,530		13.04
$14.00 - $15.99	35,000	2.61	35,000		15.17
Outstanding, December 31, 2018	4,562,919	2.60	3,293,682	$	8.59

Summary of weighted average assumptions employed to estimate the fair value of options granted using the Black-Scholes option pricing model

	For the year ended
	December 31,		December 31,
	2018		2017
Risk-free interest rate	2.23	%	1.42	%
Expected volatility	58.46	%	63.63	%
Expected life	5 years		5 years
Expected dividend yield	Nil		Nil

Summary of basic and diluted earnings (loss) per share

	For the year ended
	December 31,		December 31,
	2018		2017
Net earnings (loss) for the year	$	36,620	$	(16,453)
Basic weighted average number of common shares outstanding		182,905,004		181,208,295
Effective impact of dilutive securities:
Share options		955,963		—
Restricted share units		20,950		—
Diluted weighted average number of common shares outstanding		183,881,917		181,208,295
Earnings (loss) per share
Basic	$	0.20	$	(0.09)
Diluted	$	0.20	$	(0.09)

RSU's

CAPITAL AND RESERVES

Summary of changes in RSU's

	2018			2017
		Weighted			Weighted
	Number of	average fair		Number of	average fair
	RSU's	value (in CAD)		RSU's	value (in CAD)
Outstanding, January 1,	729,064	$	14.41	735,729	$	10.65
Granted	481,230		9.78	370,472		12.96
Settled	(385,063)		9.67	(355,648)		13.07
Forfeited	(83,345)		11.16	(21,489)		13.85
Outstanding, December 31,	741,886	$	11.31	729,064	$	14.41

PSU's

CAPITAL AND RESERVES

Summary of changes in RSU's

	2018			2017
		Weighted			Weighted
	Number of	average fair		Number of	average fair
	PSU's	value (in CAD)		PSU's	value (in CAD)
Outstanding, January 1,	74,140	$	14.41	—	$	—
Granted	91,945		9.78	74,140		13.08
Outstanding, December 31,	166,085	$	11.31	74,140	$	14.41

2018 DSU Plan

CAPITAL AND RESERVES

Summary of changes in RSU's

	2018			2017
		Weighted			Weighted
	Number of	average fair		Number of	average fair
	DSU’s	value (in CAD)		DSU’s	value (in CAD)
Outstanding, January 1,	—	$	—	—	$	—
Granted	117,587		9.78	—		—
Outstanding, December 31,	117,587	$	11.57	—	$	—

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RELATED PARTIES (Tables)

12 Months Ended

Dec. 31, 2018

RELATED PARTIES

Summary of directors and key management compensation

	For the year ended
	December 31,		December 31,
	2018		2017
Salaries and benefits	$	5,851	$	9,228
Share-based compensation		3,559		5,029
	$	9,410	$	14,257

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

SUPPLEMENTAL CASH FLOW INFORMATION

Schedule of supplemental cash flow information

	For the year ended
	December 31,		December 31,
	2018		2017
Taxes receivable	$	—	$	4,522
Accounts payable and accrued liabilities		(9,168)		(89,358)
	$	(9,168)	$	(84,836)

	Long-term		Convertible
	debt		notes
Liabilities from financing activities, January 1, 2017	$	501,160	$	—
Advance under credit facility		97,000		—
Net proceeds from convertible notes		—		95,795
Cash payments		—		(1,319)
Other non-cash movements		69,835		(17,894)
Liabilities from financing activities, December 31, 2017	$	667,995	$	76,582
Proceeds from loan facility, net of transaction costs		472,384		—
Cash payments		(659,724)		(2,250)
Other non-cash movements		61,560		7,818
Liabilities from financing activities, December 31, 2018	$	542,215	$	82,150

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FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2018

FINANCIAL RISK MANAGEMENT

Schedule of impact on pre-tax profit of a 10% change in the USD/CAD exchange rate on US dollar denominated financial assets and liabilities

	Impact of currency rate change on pre-tax earnings
	10% increase		10% decrease
Cash and cash equivalents	$	1,085	$	(1,085)
Receivables and other, excluding trade receivables		90		(90)
Restricted cash		203		(203)
Accounts payable and accrued liabilities		(4,905)		4,905

Schedule of impact on pre-tax profit of a 1% change in interest rates on financial assets and liabilities

	Impact of interest rate change on pre-tax earnings
	1% increase		1% decrease
Cash and cash equivalents	$	1,087	$	(1,087)
Senior secured loan facility		(173)		173
Offtake obligation		2,049		(1,947)

Schedule of impact on pre-tax profit from changes in the fair values of financial instruments with a 10% change in gold and silver commodity prices

	Impact of price change on pre-tax earnings
	10% increase			10% decrease
Trade receivables	$	8,844	$	(8,844)
Offtake obligation		(2,588)		3,799

Schedule of carrying amount of financial assets represents the maximum credit exposure

	December 31,		December 31,
	2018		2017
Cash and cash equivalents	$	45,407	$	56,285
Trade receivables		14,487		11,067
Tax receivables		420		6,166
Restricted cash		2,029		5,036
	$	62,343	$	78,554

Schedule of maturity analysis of financial liabilities

The maturity analysis of financial liabilities as at December 31, 2018 is as follows:

							More than
	1 year		2-3 years		4-5 years		5 years		Total
Principal repayments on loan facility	$	80,000	$	133,333	$	266,667	$	—	$	480,000
Convertible notes		—		—		100,000		—		100,000
Interest payments on loan facility(1)		25,186		35,890		12,041		—		73,117
Accounts payable and accrued liabilities		43,385		—		—		—		43,385
Interest on convertible notes		2,250		4,500		1,116		—		7,866
Restricted share unit liability		948		554		—		—		1,502
Finance lease obligation		277		527		35		—		839
	$	152,046	$	174,804	$	379,859	$	—	$	706,709

⁽¹⁾ Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility.

Schedule of financial assets and liabilities by level within the fair value hierarchy

	Carrying value						Fair value
			Amortized		Other financial
As at December 31, 2018	FVTPL		cost		liabilities		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	—	$	45,407	$	—	$	—	$	—	$	—
Trade receivables		14,487		—		—		—		14,487		—
Restricted cash		—		2,029		—		—		—		—
	$	14,487	$	47,436	$	—	$	—	$	14,487	$	—
Financial liabilities
Accounts payable and accrued liabilities	$	—	$	—	$	43,048	$	—	$	—	$	—
Restricted share unit liability		1,502		—		—		—		1,502		—
Deferred share unit liability		997		—		—		—		997		—
Senior secured loan facility		—		—		472,146		—		—		—
Offtake obligation		70,069		—		—		—		—		70,069
Debt portion of convertible note		—		—		82,150		—		82,150		—
	$	72,568	$	—	$	597,344	$	—	$	84,649	$	70,069

	Carrying value						Fair value
			Loans and		Other financial
As at December 31, 2017	FVTPL		receivables		liabilities		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	—	$	56,285	$	—	$	—	$	—	$	—
Trade receivables		—		11,067		—		—		11,067		—
Other assets		132		—		—		—		—		132
Restricted cash		—		5,036		—		—		—		—
	$	132	$	72,388	$	—	$	—	$	11,067	$	132
Financial liabilities
Accounts payable and accrued liabilities	$	—	$	—	$	53,436	$	—	$	—	$	—
Restricted share unit liability		2,730		—		—		—		2,730		—
Senior secured term credit facility		—		—		365,890		—		—		—
Offtake obligation		78,085		—		—		—		—		78,085
Stream obligation (1)		224,020		—		—		—		—		224,020
Debt portion of convertible note		—		—		76,582		—		76,582		—
	$	304,835	$	—	$	495,908	$	—	$	79,312	$	302,105

⁽¹⁾ The stream obligation was recorded at fair value at each statement of financial position date as the Company determined that the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to measure the stream obligation in its entirety at FVTPL.

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TAXATION (Tables)

12 Months Ended

Dec. 31, 2018

TAXATION

Schedule of deferred income tax assets (liabilities)

	December 31,		December 31,
	2018		2017
Tax loss carry forwards	$	74,400	$	53,266
Long term debt		10,798		22,525
Investment tax credits		6,545		6,545
Financing costs		4,310		4,288
Other		2,080		756
Decommissioning and restoration provision		—		4,978
Inventories		(847)		(964)
Provincial mining tax attributes		(6,088)		—
Mineral interests		(106,434)		(91,394)
	$	(15,236)	$	—

Schedule of deductible temporary differences for which no deferred tax assets are recognized

	December 31,		December 31,
	2018		2017
Provincial mining tax attributes	$	18,947	$	16,408
Decommissioning and restoration provision		18,947		—
Other		68		68
Tax loss carry forwards		—		59,472
	$	37,962	$	75,948

Schedule of income tax (recovery) expense

	For the year ended
	December 31,		December 31,
	2018		2017
Current tax expense	$	4,196	$	1,621
Deferred income tax expense (recovery)		12,668		(7,022)
	$	16,864	$	(5,401)

Schedule of reconciliation of provision for income taxes to the amount calculated using statutory income tax rates

	For the year ended
	December 31,		December 31,
	2018		2017
Expected tax (recovery) expense	$	14,441	$	(5,680)
Change in income tax rates		—		(574)
Provincial mining taxes		800		1,621
Change in unrecognized temporary differences		(10,942)		7,679
Share-based compensation and other items		943		988
Flow-through shares		823		842
Flow-through share premium		(526)		(574)
Impact of foreign exchange on CAD denominated tax attributes		11,735		(12,550)
Non-temporary differences		(410)		2,847
	$	16,864	$	(5,401)

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COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2018

COMMITMENTS

Schedule of gross contractual obligations

The following table provides the Company’s gross contractual obligations as of December 31, 2018:

							More than
	1 year		2-3 years		4-5 years		5 years		Total
Principal repayments on loan facility	$	80,000		133,333	$	266,667	$	—	$	480,000
Repayment of convertible notes		2,250		4,500		101,116		—		107,866
Interest payments on loan facility(1)		25,186		35,890		12,041		—		73,117
Decommissioning and restoration provision		422		51		—		18,474		18,947
Operating leases		4,571		7,649		1,462		122		13,804
Purchase commitments		5,568		—		—		—		5,568
Finance lease obligation		277		527		35		—		839
	$	118,274	$	181,950	$	381,321	$	18,596	$	700,141

⁽¹⁾ Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility.

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BASIS OF PREPARATION - Transition to IFRS 9 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Class of financial assets and financial liabilities
Equity	$ 903,126		$ 847,061	$ 824,537
Accumulated other comprehensive loss
Class of financial assets and financial liabilities
Equity	(193,997)		(193,772)	(193,772)
Accumulated other comprehensive loss | Stream obligation
Class of financial assets and financial liabilities
Equity	307
Equity, net of deferred tax	(225)
Accumulated other comprehensive loss | Restatement Adjustment
Class of financial assets and financial liabilities
Adjustment on adoption of IFRS 9, net of tax		$ (5,768)	(5,768)
Equity			(199,540)
Deficit
Class of financial assets and financial liabilities
Equity	$ (110,256)		(152,644)	$ (136,191)
Deficit | Restatement Adjustment
Class of financial assets and financial liabilities
Adjustment on adoption of IFRS			7,901
Adjustment on adoption of IFRS 9, net of tax			5,768
Equity			$ (146,876)

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BASIS OF PREPARATION - Measurement Categories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
IAS 39 | Accounts payable and accrued liabilities
Class of financial assets and financial liabilities
Financial liabilities		$ 53,436
IAS 39 | Restricted share unit liability
Class of financial assets and financial liabilities
Financial liabilities		2,730
IAS 39 | Senior secured term credit facility
Class of financial assets and financial liabilities
Financial liabilities		365,890
IAS 39 | Offtake obligation
Class of financial assets and financial liabilities
Financial liabilities		78,085
IAS 39 | Stream obligation
Class of financial assets and financial liabilities
Financial liabilities		224,020
IAS 39 | Debt portion of convertible note
Class of financial assets and financial liabilities
Financial liabilities		76,582
IAS 39 | Cash and cash equivalents
Class of financial assets and financial liabilities
Financial assets		56,285
IAS 39 | Trade receivables
Class of financial assets and financial liabilities
Financial assets		11,067
IAS 39 | Other assets
Class of financial assets and financial liabilities
Financial assets		132
IAS 39 | Restricted cash
Class of financial assets and financial liabilities
Financial assets		$ 5,036
IFRS 9 | Accounts payable and accrued liabilities
Class of financial assets and financial liabilities
Financial liabilities	$ 53,436
IFRS 9 | Restricted share unit liability
Class of financial assets and financial liabilities
Financial liabilities	2,730
IFRS 9 | Senior secured term credit facility
Class of financial assets and financial liabilities
Financial liabilities	365,890
IFRS 9 | Offtake obligation
Class of financial assets and financial liabilities
Financial liabilities	78,085
IFRS 9 | Stream obligation
Class of financial assets and financial liabilities
Financial liabilities	224,020
IFRS 9 | Debt portion of convertible note
Class of financial assets and financial liabilities
Financial liabilities	76,582
IFRS 9 | Cash and cash equivalents
Class of financial assets and financial liabilities
Financial assets	56,285
IFRS 9 | Trade receivables
Class of financial assets and financial liabilities
Financial assets	11,067
IFRS 9 | Other assets
Class of financial assets and financial liabilities
Financial assets	132
IFRS 9 | Restricted cash
Class of financial assets and financial liabilities
Financial assets	$ 5,036

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SIGNIFICANT ACCOUNTING POLICIES - Basis of consolidation (Details)	12 Months Ended
	Dec. 31, 2018
Pretium Exploration Inc.
Basis of consolidation
Ownership interest (in percent)	100.00%
0890696 BC Ltd.
Basis of consolidation
Ownership interest (in percent)	100.00%

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SIGNIFICANT ACCOUNTING POLICIES - Plant and equipment (Details)	12 Months Ended
	Dec. 31, 2018
Mine and mill equipment | Minimum
Plant and equipment
Estimated useful life (in years)	5 years
Mine and mill equipment | Maximum
Plant and equipment
Estimated useful life (in years)	18 years
Light vehicles | Minimum
Plant and equipment
Estimated useful life (in years)	3 years
Light vehicles | Maximum
Plant and equipment
Estimated useful life (in years)	5 years
Office and computer equipment | Minimum
Plant and equipment
Estimated useful life (in years)	3 years
Office and computer equipment | Maximum
Plant and equipment
Estimated useful life (in years)	5 years

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SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details)	12 Months Ended
	Dec. 31, 2018
Refined Gold
Revenue recognition
Percentage of receipt on sale	90.00%
Payment terms (in days)	2 days
Percentage of mineral value final payment	10.00%
Terms for final payment (in days)	7 days
Dore | Refined Gold
Revenue recognition
Mineral available within arrival of refinery, final processing outturn or after bill of lading (in percent)	90.00%
Process time to refine mineral (in days)	10 days
Dore | Refined Silver
Revenue recognition
Mineral available within arrival of refinery, final processing outturn or after bill of lading (in percent)	100.00%
Concentrate
Revenue recognition
Percentage of receipt on sale	90.00%
Payment terms (in days)	15 days
Percentage of mineral value final payment	10.00%
Concentrate | Refined Gold
Revenue recognition
Mineral available within arrival of refinery, final processing outturn or after bill of lading (in percent)	90.00%
Concentrate | Refined Gold | Minimum
Revenue recognition
Process time to refine mineral (in days)	15 days
Concentrate | Refined Gold | Maximum
Revenue recognition
Process time to refine mineral (in days)	30 days
Offtake obligation | Refined Gold
Revenue recognition
Amount of mineral required to sell (as a percent)	100.00%
Mineral (in ounces)	7,067,000

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SIGNIFICANT ACCOUNTING POLICIES - Share-based payments (Details) - PSU's	12 Months Ended
	Dec. 31, 2018
Minimum
Share-based payments
Units issued as percent to number granted	0.00%
Maximum
Share-based payments
Units issued as percent to number granted	200.00%

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RECEIVABLES AND OTHER (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
RECEIVABLES AND OTHER
Trade receivables	$ 14,487	$ 11,067
Prepayments and deposits	3,332	2,064
Tax receivables	420	6,166
Other receivables	73	5
BC Mineral Exploration Tax Credit ("BCMETC") receivable		249
Total receivables and other	$ 18,312	$ 19,551

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INVENTORIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
INVENTORIES
Finished metal	$ 12,745	$ 15,309
Materials and supplies	11,548	8,201
In-circuit	458	2,163
Inventories	24,751	25,673
Depreciation and depletion	3,138	3,344
Site share-based compensation	$ 199	$ 371

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	$ 1,564,860
Balance, end of year	1,522,919	$ 1,564,860
Cost
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	1,604,554	1,279,327
Additions	25,319	328,866
Transfer from construction in progress to inventory		(8,192)
Reversal (Recoveries) of BCMETC		4,553
Balance, end of year	1,629,873	1,604,554
Accumulated depreciation and depletion
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	(39,694)	(8,870)
Depreciation and depletion	67,260	30,824
Balance, end of year	(106,954)	(39,694)
Mineral properties
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	792,595
Balance, end of year	761,637	792,595
Mineral properties | Cost
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	807,519	382,294
Additions	641
Transfer from construction in progress to mineral properties	4,467	420,419
Reversal (Recoveries) of BCMETC		4,806
Balance, end of year	812,627	807,519
Mineral properties | Accumulated depreciation and depletion
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	(14,924)
Depreciation and depletion	36,066	14,924
Balance, end of year	(50,990)	(14,924)
Construction in progress
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	5,723
Balance, end of year	9,183	5,723
Construction in progress | Cost
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	5,723	633,181
Additions	17,935	324,641
Transfer from construction in progress to inventory		(8,192)
Transfer from construction in progress to plant and equipment	(10,008)	(523,488)
Transfer from construction in progress to mineral properties	(4,467)	(420,419)
Balance, end of year	9,183	5,723
Plant and equipment
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	520,079
Balance, end of year	500,092	520,079
Plant and equipment | Cost
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	544,849	21,064
Additions	1,199	297
Transfer from construction in progress to plant and equipment	10,008	523,488
Balance, end of year	556,056	544,849
Plant and equipment | Accumulated depreciation and depletion
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	(24,770)	(8,870)
Depreciation and depletion	31,194	15,900
Balance, end of year	(55,964)	(24,770)
Exploration and evaluation assets
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	246,463
Balance, end of year	252,007	246,463
Exploration and evaluation assets | Cost
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Balance, beginning of year	246,463	242,788
Additions	5,544	3,928
Reversal (Recoveries) of BCMETC		(253)
Balance, end of year	$ 252,007	$ 246,463

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MINERAL PROPERTIES, PLANT AND EQUIPMENT - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Plant and equipment
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Depreciation and depletion	$ 67,260	$ 28,862
Construction in progress
MINERAL PROPERTIES, PLANT AND EQUIPMENT
Capitalized value of an asset	$ 0	$ 1,962

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Trade payables	$ 24,814	$ 35,142
Accrued liabilities	16,945	17,488
Employee benefit liability	4,398	4,783
Restricted share unit liability	1,502	2,730
Accrued interest on loan facility	1,051
Deferred share unit liability	997
Gross finance lease obligations	748
Accrued interest	660	660
Royalty payable	629	146
Accounts payable and accrued liabilities	51,744	60,949
Non-current portion of restricted share unit liability	(554)	(511)
Non-current portion of finance lease obligation	(518)
Current portion of accounts payable and accrued liabilities	$ 50,672	$ 60,438

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Finance lease obligation (Details) $ in Thousands	Dec. 31, 2018 USD ($)
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Gross finance lease obligation - minimum lease payments	$ 839
Future interest expense on finance lease obligation	(91)
Finance lease obligation	748
1 year
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Gross finance lease obligation - minimum lease payments	277
2-3 years
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Gross finance lease obligation - minimum lease payments	527
4-5 years
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Gross finance lease obligation - minimum lease payments	$ 35

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LONG-TERM DEBT - Roll forward (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 18, 2018	Dec. 31, 2018	Dec. 31, 2017
Long-Term Debt
Long-term debt Beginning period		$ 667,995	$ 501,160
Additional advances under the credit facility			85,205
Interest expense including amortization of discount		56,834	48,247
Settlement of offtake obligation		(4,423)	(1,543)
Loss (gain) on financial instruments at fair value		16,981	34,926
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL		(7,594)
Repayment of credit facility		(422,724)
Repurchase of stream obligation		(237,000)
Proceeds from loan facility, net of transaction costs		472,051
Amortization of loan facility transaction costs		95
Long-term debt ending period		542,215	667,995
Current portion of long-term debt		(85,961)	(374,966)
Non-current portion of long term debt		456,254	293,029
Senior secured term credit facility
Long-Term Debt
Long-term debt Beginning period		365,890	232,438
Additional advances under the credit facility			85,205
Interest expense including amortization of discount		56,834	48,247
Repayment of credit facility	$ (422,724)
Long-term debt ending period			365,890
Non-current portion of long term debt
Offtake obligation
Long-Term Debt
Long-term debt Beginning period		78,085	67,702
Settlement of offtake obligation		(4,423)	(1,543)
Loss (gain) on financial instruments at fair value		(3,593)	11,926
Long-term debt ending period		70,069	78,085
Current portion of long-term debt		(7,576)
Non-current portion of long term debt		62,493
Stream obligation
Long-Term Debt
Long-term debt Beginning period		224,020	201,020
Loss (gain) on financial instruments at fair value		20,574	23,000
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL		(7,594)
Repurchase of stream obligation	$ (237,000)
Long-term debt ending period			$ 224,020
Non-current portion of long term debt
Senior secured loan facility
Long-Term Debt
Proceeds from loan facility, net of transaction costs		472,051
Amortization of loan facility transaction costs		95
Long-term debt ending period		472,146
Current portion of long-term debt		(78,385)
Non-current portion of long term debt		$ 393,761

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LONG-TERM DEBT - Senior secured loan facility (Details) - USD ($) $ in Thousands			12 Months Ended
	Jun. 18, 2019	Dec. 18, 2018	Dec. 31, 2018	Dec. 31, 2017	Feb. 14, 2017
Interest and Finance Expense
Notional amount					$ 100,000
Finance and interest costs			$ 66,926	$ 30,655
Amortization of loan facility transaction costs			95
Senior secured loan facility
Interest and Finance Expense
Notional amount		$ 480,000
Term (in years)		4 years
Finance and interest costs			1,083	$ 0
Transaction costs			$ 7,949
Underwriting fee (as a percent)			1.55%
Amortization of loan facility transaction costs			$ 95
Effective interest rate (as a percent)			5.90%
Senior secured loan facility | Minimum | USD Base rate
Interest and Finance Expense
Interest rate basis (as a percent)		1.50%
Senior secured loan facility | Maximum | USD Base rate
Interest and Finance Expense
Interest rate basis (as a percent)		2.50%
Senior secured loan facility | LIBOR
Interest and Finance Expense
Interest rate (as a percent)			2.50%
Senior secured loan facility | LIBOR | Minimum | USD LIBOR
Interest and Finance Expense
Interest rate basis (as a percent)		2.50%
Senior secured loan facility | LIBOR | Maximum | USD LIBOR
Interest and Finance Expense
Interest rate basis (as a percent)		3.50%
Term facility
Interest and Finance Expense
Notional amount		$ 250,000
Quarterly payment			$ 16,667
Revolving facility
Interest and Finance Expense
Notional amount		$ 230,000
Principal repayment	$ 30,000
Maximum borrowing capacity	$ 200,000
Revolving facility | Minimum
Interest and Finance Expense
Stand by fee (as a percent)	0.60%
Revolving facility | Maximum
Interest and Finance Expense
Stand by fee (as a percent)	0.80%

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LONG-TERM DEBT - Senior secured term credit facility (Details) - USD ($) $ in Thousands			12 Months Ended
	Dec. 18, 2018	Sep. 21, 2015	Dec. 31, 2018	Dec. 31, 2017	Feb. 14, 2017
Long-Term Debt
Notional amount					$ 100,000
Callable gold and silver agreement		$ 150,000
Share value private placement		40,000
Other assets				$ 132
Repayment of credit facility			$ 422,724
Senior secured term credit facility
Long-Term Debt
Notional amount		350,000
Maximum borrowing capacity		$ 350,000
Interest rate (as a percent)		7.50%
Extension period (in years)			1 year
Extension fee (as a percent of principal)			2.50%
Gain (loss) fair value of embedded derivatives			$ (132)	(1,624)
Effective interest rate (as a percent)			15.00%
Interest expense			$ 56,834	26,091
Capitalized interest			$ 0	$ 22,156
Repayment of credit facility	$ 422,724

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LONG-TERM DEBT - Offtake obligation (Details)	12 Months Ended
	Dec. 31, 2018 USD ($) oz	Dec. 31, 2017 USD ($) oz
Long-Term Debt
Decrease in obligation	$ 4,423,000	$ 1,543,000
Loss (gain) on financial instruments at fair value	$ (16,981,000)	$ (34,926,000)
Offtake obligation
Long-Term Debt
Delivery of gold (in ounces) | oz	371,223	121,671
Decrease in obligation	$ 4,423,000	$ 1,543,000
Loss (gain) on financial instruments at fair value	$ 3,593,000	$ (11,926,000)
Offtake obligation | Refined Gold
Long-Term Debt
Mineral obligation (in percent)	100.00%
Mineral (in ounces)	7,067,000
Offtake obligation | Option to reduce obligation | Refined Gold | Effective date December 31, 2019
Long-Term Debt
Potential reduction in obligation (in percent)	75.00%
Price per remaining ounce	$ 13
Offtake obligation | Dore
Long-Term Debt
Delivery of gold (in ounces) | oz	249,799	94,169
Offtake obligation | Concentrate
Long-Term Debt
Purchase of gold (in ounces) | oz	121,424	27,502

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LONG-TERM DEBT - Stream obligation (Details) $ in Thousands		12 Months Ended
	Sep. 21, 2015 USD ($) $ / oz	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 18, 2018 USD ($)
Long-Term Debt
Repurchase of stream obligation		$ (237,000)
Loss (gain) on financial instruments at fair value		16,981	$ 34,926
Fair value gain due to the change in the Company's credit risk, net of tax recognized in OCI		5,543
Stream obligation
Long-Term Debt
Obligated payment	$ 20,000
Term (in years)	40 years
Repurchase of stream obligation				$ (237,000)
Change in fair value		(12,980)	(23,000)
Loss (gain) on financial instruments at fair value		20,574	23,000
Interest costs capitalised		0	$ 10,120
Fair value gain due to the change in the Company's credit risk		$ 7,594
Effective interest rate (as a percent)		9.50%
Stream obligation | Refined Gold
Long-Term Debt
Mineral obligation (in percent)	8.00%
Mineral (in ounces)	7,067,000
Price (per ounce) | $ / oz	400
Stream obligation | Refined Silver
Long-Term Debt
Mineral obligation (in percent)	8.00%
Mineral (in ounces)	26,297,000
Price (per ounce) | $ / oz	4

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CONVERTIBLE NOTES - General (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Feb. 14, 2017 USD ($) $ / shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Interest and Finance Expense
Aggregate principal amount	$ 100,000
Long-term debt		$ 542,215	$ 667,995	$ 501,160
Equity component of notes			24,110
Equity component net of tax		17,603	17,603
Accretion of convertible notes		$ 5,568	4,897
Convertible notes
Interest and Finance Expense
Aggregate principal amount	$ 100,000
Interest rate (as a percent)	2.25%
Initial conversion ratio	0.625
Initial conversion price (per share) | $ / shares	$ 16.00
Threshold trading days		20 days
Threshold consecutive trading days		30 days
Threshold percentage		130.00%
Redemption price (percentage)		100.00%
Purchase Price (percentage)		100.00%
Equity component net of tax		$ 17,603
Effective interest rate (as a percent)		7.80%
Accretion of convertible notes		$ 5,568
Accretion of convertible notes, net			2,807
Capitalized interest		$ 0	2,090
Fair value | Convertible notes
Interest and Finance Expense
Long-term debt			$ 71,685
Discount cash flow term			5 years
Discount rate (percentage)			8.60%

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CONVERTIBLE NOTES - Movement in debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Feb. 14, 2017
CONVERTIBLE NOTES
Opening balance	$ 76,582
Face value of convertible notes			$ 100,000
Transaction costs associated with convertible notes		$ (4,205)
Equity component of convertible notes, net of allocated transaction costs		(24,110)
Accretion of convertible notes	5,568	4,897
Ending balance	$ 82,150	$ 76,582

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DECOMMISSIONING AND RESTORATION PROVISION - Reclamation bonds (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 CAD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Reclamation bonds
Restricted cash		$ 2,029	$ 5,036
Guaranteed Investment Certificates and Letters of Credit
Reclamation bonds
Restricted cash		$ 1,749	$ 4,731
Surety bond
Reclamation bonds
Increase in provision	$ 8,500
Total provision	$ 22,700

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DECOMMISSIONING AND RESTORATION PROVISION - Decommissioning and restoration provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
DECOMMISSIONING AND RESTORATION PROVISION
Opening balance	$ 18,436	$ 13,675
Change in discount rate	215	(1,933)
Accretion of decommissioning and restoration provision	568	465
Change in amount and timing of cash flows	(272)	6,229
Ending balance	$ 18,947	$ 18,436

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DECOMMISSIONING AND RESTORATION PROVISION - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
DECOMMISSIONING AND RESTORATION PROVISION
Inflation rate (as a percent)	1.90%	1.90%
Discount rate (as a percent)	2.40%	2.50%
Liability for retirement and remediation	$ 20,369	$ 21,989

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REVENUE - Metal (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
REVENUE
Gold revenue	$ 452,253	$ 175,793
Silver revenue	5,362	1,994
Revenue from contracts with customers	457,615	177,787
(Loss) gain on trade receivables at fair value	(3,059)	146
Total revenue	$ 454,556	$ 177,933

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REVENUE - Product (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue
Gold revenue	$ 452,253	$ 175,793
Silver revenue	5,362	1,994
Revenue from contracts with customers	457,615	177,787
Dore
Revenue
Gold revenue	315,068	122,684
Silver revenue	2,242	649
Concentrate
Revenue
Gold revenue	137,185	53,109
Silver revenue	$ 3,120	$ 1,345

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COST OF SALES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
COST OF SALES
Consultants and contractors	$ 100,873	$ 47,907
Depreciation and depletion	67,134	28,722
Salaries and benefits	46,946	20,534
Supplies and consumables	29,146	10,547
Royalties and selling costs	19,739	7,308
Energy	13,408	5,104
Travel and camp accommodation	7,052	4,113
Freight	4,416	5,242
Camp administrative costs	3,931	1,410
Rentals	3,402	1,462
Site share-based compensation	2,160	1,198
Insurance	1,451	813
Cost of sales	299,658	134,360
Change in inventories	4,269	(9,280)
Total cost of sales	$ 303,927	$ 125,080

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CORPORATE ADMINISTRATIVE COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CORPORATE ADMINISTRATIVE COSTS
Salaries and benefits	$ 6,026	$ 9,710
Share-based compensation	4,140	4,846
Office	1,580	1,020
Investor relations	1,318	1,064
Professional fees	1,085	801
Insurance	774	507
Listing and filing fees	390	381
Travel and accommodation	349	347
Depreciation	126	140
Corporate administrative costs	$ 15,788	$ 18,816

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INTEREST AND FINANCE EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Interest and Finance Expense
Accretion of decommissioning and restoration provision	$ 568	$ 465
Other interest expense	483	70
Bank charges	29	88
Interest expense on finance leases	16
Interest and finance income expense	66,926	30,655
Senior secured term credit facility
Interest and Finance Expense
Interest expense	56,834	26,091
Convertible notes
Interest and Finance Expense
Interest expense	7,818	3,941
Senior secured loan facility
Interest and Finance Expense
Interest expense	1,178
Interest and finance income expense	$ 1,083	$ 0

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CAPITAL AND RESERVES - Share capital (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Jul. 25, 2018 USD ($)	Jul. 14, 2017 USD ($) tranche	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($)	Jul. 25, 2018 $ / shares shares	Jul. 14, 2017 $ / shares shares
CAPITAL AND RESERVES
Common shares issued			$ 2,304	$ 3,891
Share issue cost			$ 31	$ 225
Flow-through common shares
CAPITAL AND RESERVES
Number of shares (In shares) | shares					227,273	329,000
Price of share (per share) | $ / shares					$ 13.20	$ 15.20
Common shares issued	$ 2,304	$ 3,891
Share issue cost	31	$ 30
Number of offerings | tranche		2
Flow-through common shares | Share capital
CAPITAL AND RESERVES
Common shares issued	1,913	$ 3,182
Flow-through common shares | Contributed surplus
CAPITAL AND RESERVES
Common shares issued	$ 391	$ 709
Preferred shares
CAPITAL AND RESERVES
Shares par value | $ / shares			$ 0

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CAPITAL AND RESERVES - Stock options (Details)	12 Months Ended
	Dec. 31, 2018 CAD ($) Options	Dec. 31, 2017 CAD ($) Options
Stock options
Threshold of reserved common shares to outstanding common shares (in percent)	10.00%
Term (in years)	5 years
Outstanding, beginning of period | Options	6,454,327	7,524,727
Granted (in options) | Options	615,592	1,067,875
Exercised (in options) | Options	(1,576,500)	(1,822,025)
Expired (in options) | Options	(882,750)	(290,000)
Forfeited (in options) | Options	(47,750)	(26,250)
Outstanding, end of period | Options	4,562,919	6,454,327
Weighted average exercise price
Outstanding beginning of period (per option)	$ 9.32	$ 9.05
Granted (per option)	10.60	12.83
Exercised (per option)	6.95	9.40
Expired (per option)	13.52	14.64
Forfeited (per option)	12.72	10.43
Outstanding end of period (per option)	9.47	9.32
Weighted average share price at the time of exercise (per option)	$ 10.76	$ 13.33

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CAPITAL AND RESERVES - Outstanding and exercisable (Details)	Dec. 31, 2018 CAD ($) Options Y	Dec. 31, 2017 Options	Dec. 31, 2016 Options
Exercise prices of outstanding share options
Outstanding (in Options) | Options	4,562,919	6,454,327	7,524,727
Outstanding weighted expiration (in years) | Y	2.60
Exercisable (in options) | Options	3,293,682
Exercisable weighted average exercise price (in dollar per options)	$ 8.59
$5.85 - $7.99
Exercise prices of outstanding share options
Outstanding (in Options) | Options	1,647,075
Outstanding weighted expiration (in years) | Y	1.58
Exercisable (in options) | Options	1,647,075
Exercisable weighted average exercise price (in dollar per options)	$ 7.04
$8.00 - $9.99
Exercise prices of outstanding share options
Outstanding (in Options) | Options	1,615,469
Outstanding weighted expiration (in years) | Y	2.65
Exercisable (in options) | Options	1,214,877
Exercisable weighted average exercise price (in dollar per options)	$ 9.20
$10.00 - $11.99
Exercise prices of outstanding share options
Outstanding (in Options) | Options	130,000
Outstanding weighted expiration (in years) | Y	3.13
Exercisable (in options) | Options	77,200
Exercisable weighted average exercise price (in dollar per options)	$ 10.73
$12.00 - $13.99
Exercise prices of outstanding share options
Outstanding (in Options) | Options	1,135,375
Outstanding weighted expiration (in years) | Y	3.94
Exercisable (in options) | Options	319,530
Exercisable weighted average exercise price (in dollar per options)	$ 13.04
$14.00 - $15.99
Exercise prices of outstanding share options
Outstanding (in Options) | Options	35,000
Outstanding weighted expiration (in years) | Y	2.61
Exercisable (in options) | Options	35,000
Exercisable weighted average exercise price (in dollar per options)	$ 15.17
Minimum | $5.85 - $7.99
Exercise prices of outstanding share options
Exercise prices	5.85
Minimum | $8.00 - $9.99
Exercise prices of outstanding share options
Exercise prices	8.00
Minimum | $10.00 - $11.99
Exercise prices of outstanding share options
Exercise prices	10.00
Minimum | $12.00 - $13.99
Exercise prices of outstanding share options
Exercise prices	12.00
Minimum | $14.00 - $15.99
Exercise prices of outstanding share options
Exercise prices	14.00
Maximum | $5.85 - $7.99
Exercise prices of outstanding share options
Exercise prices	7.99
Maximum | $8.00 - $9.99
Exercise prices of outstanding share options
Exercise prices	9.99
Maximum | $10.00 - $11.99
Exercise prices of outstanding share options
Exercise prices	11.99
Maximum | $12.00 - $13.99
Exercise prices of outstanding share options
Exercise prices	13.99
Maximum | $14.00 - $15.99
Exercise prices of outstanding share options
Exercise prices	$ 15.99

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CAPITAL AND RESERVES - Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CAPITAL AND RESERVES
Total share option compensation expense	$ 3,502	$ 3,733
Share-based compensation	3,502	2,367
Share-based compensation - capitalized	$ 0	$ 1,366

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CAPITAL AND RESERVES - Weighted Average Assumptions (Details) - Y	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average assumptions
Risk-free interest rate	2.23%	1.42%
Expected volatility	58.46%	63.63%
Expected life (in years)	5	5

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CAPITAL AND RESERVES - RSU, PSU, DSU Plans (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018 CAD ($) EquityInstruments $ / shares	Dec. 31, 2018 USD ($) EquityInstruments	Dec. 31, 2017 CAD ($) EquityInstruments $ / shares	Dec. 31, 2017 USD ($) EquityInstruments
Authorized share capital
Restricted share unit liability		$ 1,502		$ 2,730
Deferred share unit liability		997
Share-based compensation - expensed		3,502		2,367
Share-based compensation - capitalized		$ 0		1,366
RSU's
Authorized share capital
Vesting term (in years)	3 years	3 years
Restricted share unit liability		$ 1,271		2,715
Share-based compensation - expensed		1,558		3,365
Share-based compensation - capitalized		$ 0		$ 687
Activity
Outstanding beginning balance (in equity instruments) | EquityInstruments	729,064	729,064	735,729	735,729
Granted (in equity instruments) | EquityInstruments	481,230	481,230	370,472	370,472
Settled (in equity instruments) | EquityInstruments	(385,063)	(385,063)	(355,648)	(355,648)
Forfeited (in equity instruments) | EquityInstruments	(83,345)	(83,345)	(21,489)	(21,489)
Outstanding ending balance (in equity instruments) | EquityInstruments	741,886	741,886	729,064	729,064
Outstanding weighted fair value beginning (in dollars per equity instruments)	$ 14.41		$ 10.65
Granted weighted fair value (in dollars per equity instruments)	$ 9.78		$ 12.96
Settled weighted fair value (in dollars per equity instruments) | $ / shares	$ 9.67		$ 13.07
Forfeited weighted fair value (in dollars per equity instruments)	$ 11.16		$ 13.85
Outstanding weighted fair value ending (in dollars per equity instruments)	$ 11.31		$ 14.41
PSU's
Authorized share capital
Restricted share unit liability		$ 231		$ 15
Share-based compensation - expensed		$ 226		$ 15
Activity
Outstanding beginning balance (in equity instruments) | EquityInstruments	74,140	74,140
Granted (in equity instruments) | EquityInstruments	91,945	91,945	74,140	74,140
Outstanding ending balance (in equity instruments) | EquityInstruments	166,085	166,085	74,140	74,140
Outstanding weighted fair value beginning (in dollars per equity instruments)	$ 14.41
Granted weighted fair value (in dollars per equity instruments)	9.78		$ 13.08
Outstanding weighted fair value ending (in dollars per equity instruments)	$ 11.31		$ 14.41
PSU's | Minimum
Authorized share capital
Units issued as percent to number granted	0.00%	0.00%
PSU's | Maximum
Authorized share capital
Units issued as percent to number granted	200.00%	200.00%
2018 DSU Plan
Authorized share capital
Deferred share unit liability		$ 997		$ 0
Share-based compensation - expensed		$ 1,014		$ 0
Activity
Granted (in equity instruments) | EquityInstruments	117,587	117,587
Outstanding ending balance (in equity instruments) | EquityInstruments	117,587	117,587
Granted weighted fair value (in dollars per equity instruments)	$ 9.78
Outstanding weighted fair value ending (in dollars per equity instruments)	$ 11.57

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CAPITAL AND RESERVES - Earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CAPITAL AND RESERVES
Net earnings (loss) for the year	$ 36,620	$ (16,453)
Weighted average number of ordinary shares outstanding	182,905,004	181,208,295
Diluted weighted average number of common shares outstanding	183,881,917	181,208,295
Earnings (loss) per share
Basic (in dollar per share)	$ 0.20	$ (0.09)
Diluted (in dollar per share)	$ 0.20	$ (0.09)
Stock Options
CAPITAL AND RESERVES
Dilutive effect of share options on number of ordinary shares	955,963
RSU's
CAPITAL AND RESERVES
Dilutive effect of share options on number of ordinary shares	20,950

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RELATED PARTIES - Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
RELATED PARTIES
Salaries and benefits	$ 5,851	$ 9,228
Share-based compensation	3,559	5,029
Total Key management personnel compensation	$ 9,410	$ 14,257

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RELATED PARTIES - Employment agreements (Details) - Dec. 31, 2017 $ in Thousands, $ in Thousands	CAD ($)	USD ($)
RELATED PARTIES
Retirement allowance payable	$ 6,000	$ 4,469

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SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net change in non-cash working capital items included in mineral properties, plant and equipment:
Taxes receivable		$ 4,522
Accounts payable and accrued liabilities	$ (9,168)	(89,358)
Increase (decrease) in non-cash working capital items	(9,168)	(84,836)
Liabilities from financing activities, beginning period	293,029
Advance under credit facility		97,000
Net proceeds from convertible notes		95,795
Proceeds from loan facility	480,000
Cash payments	(75,006)	(1,319)
Liabilities from financing activities, ending period	456,254	293,029
Long-term debt
Net change in non-cash working capital items included in mineral properties, plant and equipment:
Liabilities from financing activities, beginning period	667,995	501,160
Advance under credit facility		97,000
Proceeds from loan facility	472,384
Cash payments	(659,724)
Other non-cash movements	61,560	69,835
Liabilities from financing activities, ending period	542,215	667,995
Convertible notes
Net change in non-cash working capital items included in mineral properties, plant and equipment:
Liabilities from financing activities, beginning period	76,582
Net proceeds from convertible notes		95,795
Cash payments	(2,250)	(1,319)
Other non-cash movements	7,818	(17,894)
Liabilities from financing activities, ending period	$ 82,150	$ 76,582

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FINANCIAL RISK MANAGEMENT - Market risk (Details) $ in Thousands	Dec. 31, 2018 USD ($)
USD/CAD exchange rate 10% appreciation | Accounts payable and accrued liabilities
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	$ (4,905)
USD/CAD exchange rate 10% appreciation | Cash and cash equivalents
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	1,085
USD/CAD exchange rate 10% appreciation | Receivables and other, excluding trade receivables
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	90
USD/CAD exchange rate 10% appreciation | Restricted cash
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	203
USD/CAD exchange rate 10% depreciation | Accounts payable and accrued liabilities
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	4,905
USD/CAD exchange rate 10% depreciation | Cash and cash equivalents
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(1,085)
USD/CAD exchange rate 10% depreciation | Receivables and other, excluding trade receivables
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(90)
USD/CAD exchange rate 10% depreciation | Restricted cash
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(203)
Interest rate 1% appreciation | Long-term debt | Offtake obligation
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	2,049
Interest rate 1% appreciation | Cash and cash equivalents
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	1,087
Interest rate 1% appreciation | Other assets | Senior secured term credit facility
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(173)
Interest rate 1% depreciation | Long-term debt | Offtake obligation
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(1,947)
Interest rate 1% depreciation | Cash and cash equivalents
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(1,087)
Interest rate 1% depreciation | Other assets | Senior secured term credit facility
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	173
Commodity price 10% appreciation | Long-term debt | Offtake obligation
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	(2,588)
Commodity price 10% appreciation | Trade receivables
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	8,844
Commodity price 10% depreciation | Long-term debt | Offtake obligation
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	3,799
Commodity price 10% depreciation | Trade receivables
Nature And Extent of Risks Arising From Financial Instruments
Impact on pre-tax earnings	$ (8,844)

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FINANCIAL RISK MANAGEMENT - Credit risk (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Maximum credit exposure
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss	$ 62,343	$ 78,554
Cash and cash equivalents
Maximum credit exposure
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss	45,407	56,285
Trade receivables
Maximum credit exposure
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss	14,487	11,067
Tax receivables
Maximum credit exposure
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss	420	6,166
Restricted cash
Maximum credit exposure
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss	$ 2,029	$ 5,036

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FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - USD ($) $ in Thousands			12 Months Ended
	Dec. 18, 2018	Sep. 21, 2015	Dec. 31, 2018	Dec. 31, 2017	Feb. 14, 2017	Dec. 31, 2016
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility			$ 542,215	$ 667,995		$ 501,160
Convertible notes			82,150	76,582
Accounts payable and accrued liabilities			50,672	60,438
Restricted share unit liability			1,502	2,730
Cash and cash equivalents			45,407	56,285		141,791
Aggregate principal amount					$ 100,000
Repayment of credit facility			422,724
Repurchase of stream obligation			(237,000)
Senior secured term credit facility
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility				365,890		232,438
Aggregate principal amount		$ 350,000
Repayment of credit facility	$ 422,724
Senior secured loan facility
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility			472,146
Aggregate principal amount	480,000
Stream obligation
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility				$ 224,020		$ 201,020
Cash consideration		$ 20,000
Repurchase of stream obligation	$ (237,000)
Liquidity risk
Maturity Analysis For Derivative Financial Liabilities
Convertible notes			100,000
Accounts payable and accrued liabilities			43,385
Interest on convertible notes			7,866
Restricted share unit liability			1,502
Finance lease obligation			839
Total financial liabilities			706,709
Cash and cash equivalents			45,407
working capital deficit			48,163
Liquidity risk | 1 year
Maturity Analysis For Derivative Financial Liabilities
Accounts payable and accrued liabilities			43,385
Interest on convertible notes			2,250
Restricted share unit liability			948
Finance lease obligation			277
Total financial liabilities			152,046
Liquidity risk | 2-3 years
Maturity Analysis For Derivative Financial Liabilities
Interest on convertible notes			4,500
Restricted share unit liability			554
Finance lease obligation			527
Total financial liabilities			174,804
Liquidity risk | 4-5 years
Maturity Analysis For Derivative Financial Liabilities
Convertible notes			100,000
Interest on convertible notes			1,116
Finance lease obligation			35
Total financial liabilities			379,859
Liquidity risk | Senior secured loan facility
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility			480,000
Interest payments on loan facility			73,117
Aggregate principal amount			480,000
Liquidity risk | Senior secured loan facility | 1 year
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility			80,000
Interest payments on loan facility			25,186
Liquidity risk | Senior secured loan facility | 2-3 years
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility			133,333
Interest payments on loan facility			35,890
Liquidity risk | Senior secured loan facility | 4-5 years
Maturity Analysis For Derivative Financial Liabilities
Principal repayments on loan facility			266,667
Interest payments on loan facility			12,041
Liquidity risk | Stream obligation
Maturity Analysis For Derivative Financial Liabilities
Repayment of credit facility			422,724
Repurchase of stream obligation			$ (237,000)

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FINANCIAL RISK MANAGEMENT - Fair value estimation (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair value | Level 2
Fair Value Measurement Of Assets And Liabilities
Financial assets	$ 14,487	$ 11,067
Financial liabilities	84,649	79,312
Fair value | Level 3
Fair Value Measurement Of Assets And Liabilities
Financial assets		132
Financial liabilities	70,069	302,105
Fair value | Restricted share unit liability | Level 2
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	1,502	2,730
Fair value | Deferred share unit liability | Level 2
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	997
Fair value | Offtake obligation | Level 3
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	70,069	78,085
Fair value | Stream obligation | Level 3
Fair Value Measurement Of Assets And Liabilities
Financial liabilities		224,020
Fair value | Debt portion of convertible note | Level 2
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	82,150	76,582
Fair value | Trade receivables | Level 2
Fair Value Measurement Of Assets And Liabilities
Financial assets	14,487	11,067
Fair value | Other assets | Level 3
Fair Value Measurement Of Assets And Liabilities
Financial assets		132
Carrying value | Designated at FVTPL
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	72,568	304,835
Carrying value | Designated at FVTPL | Restricted share unit liability
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	1,502	2,730
Carrying value | Designated at FVTPL | Deferred share unit liability
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	997
Carrying value | Designated at FVTPL | Offtake obligation
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	70,069	78,085
Carrying value | Designated at FVTPL | Stream obligation
Fair Value Measurement Of Assets And Liabilities
Financial liabilities		224,020
Carrying value | Other financial liabilities
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	597,344	495,908
Carrying value | Other financial liabilities | Accounts payable and accrued liabilities
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	43,048	53,436
Carrying value | Other financial liabilities | Senior secured term credit facility
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	472,146	365,890
Carrying value | Other financial liabilities | Debt portion of convertible note
Fair Value Measurement Of Assets And Liabilities
Financial liabilities	82,150	76,582
Carrying value | FVTPL
Fair Value Measurement Of Assets And Liabilities
Financial assets	14,487	132
Carrying value | FVTPL | Trade receivables
Fair Value Measurement Of Assets And Liabilities
Financial assets	14,487
Carrying value | FVTPL | Other assets
Fair Value Measurement Of Assets And Liabilities
Financial assets		132
Carrying value | Amortized cost, Financial assets
Fair Value Measurement Of Assets And Liabilities
Financial assets	47,436
Carrying value | Amortized cost, Financial assets | Cash and cash equivalents
Fair Value Measurement Of Assets And Liabilities
Financial assets	45,407
Carrying value | Amortized cost, Financial assets | Restricted cash
Fair Value Measurement Of Assets And Liabilities
Financial assets	$ 2,029
Carrying value | Loans and receivables
Fair Value Measurement Of Assets And Liabilities
Financial assets		72,388
Carrying value | Loans and receivables | Cash and cash equivalents
Fair Value Measurement Of Assets And Liabilities
Financial assets		56,285
Carrying value | Loans and receivables | Trade receivables
Fair Value Measurement Of Assets And Liabilities
Financial assets		11,067
Carrying value | Loans and receivables | Restricted cash
Fair Value Measurement Of Assets And Liabilities
Financial assets		$ 5,036

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TAXATION - Deferred income tax liability (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred income tax liability
Deferred income tax liability	$ (15,236)
Deductible temporary differences for which no deferred tax assets have been recognized	37,962	$ 75,948
Tax losses expiring in periods from 2030 to 2037	275,265	256,463
Investment tax credits	8,965	8,965
Tax loss carry forwards
Deferred income tax liability
Deferred income tax liability	74,400	53,266
Deductible temporary differences for which no deferred tax assets have been recognized		59,472
Long term debt
Deferred income tax liability
Deferred income tax liability	10,798	22,525
Investment tax credits
Deferred income tax liability
Deferred income tax liability	6,545	6,545
Financing costs
Deferred income tax liability
Deferred income tax liability	4,310	4,288
Other
Deferred income tax liability
Deferred income tax liability	2,080	756
Deductible temporary differences for which no deferred tax assets have been recognized	68	68
Decommissioning and restoration provision
Deferred income tax liability
Deferred income tax liability		4,978
Deductible temporary differences for which no deferred tax assets have been recognized	18,947
Inventories
Deferred income tax liability
Deferred income tax liability	(847)	(964)
Provincial mining tax attributes
Deferred income tax liability
Deferred income tax liability	(6,088)
Deductible temporary differences for which no deferred tax assets have been recognized	18,947	16,408
Mineral interests
Deferred income tax liability
Deferred income tax liability	$ (106,434)	$ (91,394)

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TAXATION - Income tax expense (recovery) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
TAXATION
Current tax expense	$ 4,196	$ 1,621
Deferred income tax expense (recovery)	12,668	(7,022)
Total tax (recovery) expense	$ 16,864	$ (5,401)

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TAXATION - Provision for income tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
TAXATION
Statutory income tax rates	27.00%	26.00%
Expected tax (recovery) expense	$ 14,441	$ (5,680)
Change in income tax rates		(574)
Provincial mining taxes	800	1,621
Change in unrecognized temporary differences	(10,942)	7,679
Share-based compensation and other items	943	988
Flow-through shares	823	842
Flow-through share premium	(526)	(574)
Impact of foreign exchange on CAD denominated tax attributes	11,735	(12,550)
Non-temporary differences	(410)	2,847
Total tax (recovery) expense	16,864	(5,401)
Deductible temporary differences for which no deferred tax assets have been recognized	$ 37,962	$ 75,948

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COMMITMENTS - Contractual obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Contingencies line items
Principal repayments on loan facility	$ 542,215	$ 667,995	$ 501,160
Repayment of convertible notes	82,150	76,582
Decommissioning and restoration provision	18,947	$ 18,436	$ 13,675
Operating leases	13,804
Purchase commitments	5,568
Finance lease obligation	839
Total	700,141
1 year
Contingencies line items
Decommissioning and restoration provision	422
Operating leases	4,571
Purchase commitments	5,568
Finance lease obligation	277
Total	118,274
2-3 years
Contingencies line items
Decommissioning and restoration provision	51
Operating leases	7,649
Finance lease obligation	527
Total	181,950
4-5 years
Contingencies line items
Operating leases	1,462
Finance lease obligation	35
Total	381,321
More than 5 years
Contingencies line items
Decommissioning and restoration provision	18,474
Operating leases	122
Total	18,596
Credit Facility
Contingencies line items
Principal repayments on loan facility	480,000
Repayment of convertible notes	107,866
Interest payments on loan facility	73,117
Credit Facility | 1 year
Contingencies line items
Principal repayments on loan facility	80,000
Interest payments on loan facility	25,186
Credit Facility | 2-3 years
Contingencies line items
Principal repayments on loan facility	133,333
Repayment of convertible notes	4,500
Interest payments on loan facility	35,890
Credit Facility | 4-5 years
Contingencies line items
Principal repayments on loan facility	266,667
Interest payments on loan facility	12,041
Convertible notes | 1 year
Contingencies line items
Repayment of convertible notes	2,250
Convertible notes | 4-5 years
Contingencies line items
Repayment of convertible notes	$ 101,116

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COMMITMENTS - Brucejack Mine and Offtake and stream obligations (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 21, 2015	Dec. 31, 2018	Dec. 31, 2017
Contingencies
Royalties and selling costs		$ 19,739	$ 7,308
Mineral properties
Contingencies
Return royalty on production from property		1.20%
Royalties and selling costs		$ 258	$ 0
Mineral properties | Refined Gold
Contingencies
Mineral (in ounces)		503,386
Mineral properties | Refined Silver
Contingencies
Mineral (in ounces)		17,907,080
Stream obligation
Contingencies
Obligated payment	$ 20,000
Stream obligation | Refined Gold
Contingencies
Mineral (in ounces)	7,067,000
Mineral obligation (in percent)	8.00%
Stream obligation | Refined Silver
Contingencies
Mineral (in ounces)	26,297,000
Mineral obligation (in percent)	8.00%
Offtake obligation | Refined Gold
Contingencies
Mineral (in ounces)		7,067,000
Mineral obligation (in percent)		100.00%

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CONTINGENCIES (Details) $ in Thousands					1 Months Ended
	Sep. 07, 2018 complaint	Apr. 24, 2017 CAD ($)	Oct. 29, 2013 CAD ($)	Oct. 13, 2013	Jan. 31, 2014 plaintiff	Nov. 18, 2013 complaint
Contingencies line items
Bulk sample				10,000
Damages sought | $		$ 14,563	$ 60,000
2013 United States class actions
Contingencies line items
Putative class action complaints						5
Lead plaintiffs | plaintiff					3
2018 United States class actions
Contingencies line items
Putative class action complaints	1