The following is the Company’s production and cost guidance for 2017:

2017 GuidanceTurmalina ComplexCaeté ComplexConsolidated
Gold production (oz)55,00060,00040,00045,00095,000105,000
COC (per oz sold US$)1$650$700$1000$1,100$750$850
AISC (per oz sold US$)1$875$925$1,100$1,300$1,050$1,150
  Primary (m)2,5002,9002,2002,6004,7005,500
  Secondary (m)2,2002,7003,4003,8505,6006,550
Definition, infill, & exploration drilling (m)16,00018,00010,00013,00026,00031,000
Growth exploration investment (core assets) ($Ms)    $7.5$8.0
1 Cash operating costs and all-in sustaining costs are non-gaap financial performance measures with no standard definition under IFRS. Refer to the Non-IFRS Measures section below. 2017 cost guidance has been prepared on the basis of a foreign exchange ratio of 3.5 Brazilian Reias vs. the US dollar.

On July 18, 2017, the Company revised its production guidance to 95,000 – 105,000 ounces compared to the previously announced range of 100,000 – 110,000 ounces reflecting the challenging first half of the year. In light of the lower production guidance and stronger Brazilian Real, the Company has increased its consolidated cash operating costs guidance from $725 – $755 per ounce sold to $750 – $850 per ounce sold and its consolidated all-in sustaining costs guidance from $900 – $1,000 per ounce sold to $1,050 – $1,150 per ounce sold. Improved operating performance across all sites is expected to increase production in the second half of 2017, resulting in continued improvement in cash costs. The completion and sustaining of the key milestones outlined in the Turmalina section of this MD&A is critical to ensuring the flexibility and consistency in the production plan at Turmalina and realizing the full potential of the higher grades in Orebody A. Subject to achieving and sustaining improved performance at Turmalina, the Company is targeting full year production of 95,000 ounces.