PAULSON Gold Equities: Myths,

Dreams and Reality

& CO.
INC. Marcelo Kim
Partner

Denver Gold Forum

Colorado Springs, CO
September 26, 2017
CONFIDENTIAL
This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
0 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
LEGAL DISCLAIMER

This document does not constitute an offer to sell or a solicitation of an offer to buy any securities, and may not be relied upon in connection
with any offer or sale of securities. This document should be read in conjunction with, and is qualified in its entirety by, information
appearing in the Confidential Private Offering Memorandum (and a Limited Partnership Agreement for domestic partnerships), which should
be carefully reviewed prior to investing. Certain statements included herein may constitute forward-looking statements, including, but not
limited to, those identified by the expressions expect, intend, will and similar expressions to the extent they relate to the investment
vehicles discussed herein. The forward-looking statements are not historical facts but reflect Paulson & Cos current expectations regarding
future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or
events to differ materially from current expectations. Although Paulson & Co believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not
to place undue reliance on such statements due to the inherent uncertainty therein. Paulson & Co undertakes no obligation to update publicly
or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors
which affect this information, except as required by law.

An investment in a hedge fund is speculative and involves a high degree of risk, which each investor must carefully consider. An investor in
hedge funds could lose all or a substantial amount of his or her investment. Returns generated from an investment in a hedge fund may not
adequately compensate investors for the business and financial risks assumed. While hedge funds are subject to market risks common to other
types of investments, including market volatility, hedge funds employ certain trading techniques, such as the use of leveraging and other
speculative investment practices that may increase the risk of investment loss. Products may involve above-average risk. Risks associated with
hedge fund investments include, but are not limited to, the fact that hedge funds can be highly illiquid; they are not required to provide
periodic pricing or valuation information to investors; they may involve complex tax structures and delays in distributing important tax
information; they are not subject to the same regulatory requirements as mutual funds; they often charge higher fees and the high fees may
offset the funds trading profits; they may have a limited operating history; they can have performance that is volatile; they may have a fund
manager who has total trading authority over the fund and the use of a single adviser applying generally similar trading programs could
mean a lack of diversification, and consequentially, higher risk; they may not have a secondary market for an investors interest in the fund
and none may be expected to develop; they may have restrictions on transferring interests in the fund; and may effect a substantial portion of
their trades on foreign exchanges.

All material is compiled from sources believed to be reliable, but accuracy cannot be guaranteed.

This material may not be distributed to other than the intended recipients. Unauthorized reproduction or distribution of all or any of this
material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
1 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
GOLD EQUITIES HAVE SEVERELY UNDERPERFORMED GOLD PRICE

Performance Since 2010

200

180

160

140

120 Gold: 20%

(Index = 100)

100

80

60
GDX: -45%
40 GDXJ: -58%

20

0
2/6/ 2011

7/3/ 2015

8/8/ 2016
12/31/2009

12/14/2014
7/20/2010

8/26/2011

3/14/2012

10/1/2012

4/20/2013

11/7/2013

5/27/2014

1/20/2016

2/25/2017

9/14/2017
Source: Paulson & Co., Bloomberg as of September 20, 2017
This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
2 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
INPUT COSTS HAVE MOVED IN COMPANIES FAVOR

Gold, FX and Oil Prices Since 2010

200

180

160

140
(Index = 100)

120 Gold: 20%

100
FX: -16%
80
Oil: -28%
60

40

20

0
2/6/2011

7/3/2015

8/8/2016
7/20/2010

8/26/2011

3/14/2012

5/27/2014

1/20/2016

2/25/2017
10/1/2012

11/7/2013
4/20/2013

9/14/2017
12/31/2009

12/14/2014

FX is a basket of CAD, AUD and ZAR vs. USD

Source: Paulson & Co., Bloomberg as of September 20, 2017

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
3 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
THE SOBERING REALITY OF GOLD EQUITIES

Analysis of 13 Largest Publicly Listed Gold

Companies Shows Total Shareholder Returns
Have Been Dreadful

Economic Returns Have Been Value Destructive

So What To Do?

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
4 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
AVERAGE TOTAL SHAREHOLDER RETURNS HAVE LAGGED BY 65%

Total Return Since 2010

60

40 35

20 20
20

0
-2
-9
-20

-40
- 40
- 46 - 45
-60 - 53
- 56
- 63
-80 - 72
- 75 - 74
- 83
-100
GDX
Yamana

Barrick
AngloGold

Goldcorp

Gold Fields

Newcrest

Newmont

Gold
Iamgold

Randgold
Kinross

Agnico
Eldorado

Polymetal
Source: Paulson & Co., Bloomberg as of September 20, 2017 (Gold Fields return includes spin-off of Sibanye)
This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
5 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
DESPITE POOR RETURNS, CEOs RECEIVED $550 MILLION
Cumulative CEO Pay
(2010-2016)
80,000,000

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

Yamana
AngloGold

Randgold

Goldcorp
Kinross
Iamgold

Gold Fields

Newmont
Eldorado
Barrick
Polymetal

Newcrest

Agnico

Total Shareholder Return: +20% -56% -75% -46% -40% -53% -74% +35% -2% -63% -74% -83% -9%

Source: Paulson & Co., Company Filings

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
6 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
DESPITE DESTROYING $85 BILLION IN VALUE
Starting EV Equity Net Debt Dividends Spin- Ending Value Current
12/31/2009 Issued Raised Paid Off Capitalization Loss EV
250
$9.5
$32.6 $- 12.8
$- 4.4
$220.4 $- 85.6

200 $195.6

150
$134.8

100

50

0
Source: Paulson & Co., Bloomberg as of September 6, 2017 (Gold Fields return includes spin-off of Sibanye)
This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
7 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
WHERE HAS THE $85 BILLION GONE?

Industry Return on Capital Has Been Lower than

Cost Of Capital

Cumulative Impairments Since 2010 Have Totaled

$85 Billion

Analysis of M&A Suggests Serial Value

Destruction

Return On Invested Capital Has Been Inadequate

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
8 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
INDUSTRY SPENDS MORE THAN IT EARNS DESPITE FLAT PRODUCTION

Industry Cash Flow Statement

(2010-2016)
CF From Operations ($ bn) $109

CF from Investing ($bn) -$134

CF from Financing ($ bn) $25

Change in Cash -$1

Change in Production +2%

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
9 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
INDUSTRY INVESTS IN GOOD & BAD PROJECTS

250,000

2 0 15 2 0 16
200,000

2 0 14
2 0 13 2 0 12
150,000
Invested Capital ($m)

2 0 11

2 0 10
100,000

50,000

0
-6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%

Return on Capital - Cost of Capital

Source: Paulson & Co., Company Filings as of December 31, 2016

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
10 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
RANDGOLD INVESTS ONLY IN HIGH RETURN PROJECTS
& HAS HIGHEST TOTAL SHAREHOLDER RETURN

3,500

2 0 15 2 0 16
3,000
2 0 14
2,500
2 0 13
Invested Capital ($m)

2,000

2 0 12
1,500
2 0 11

2 0 10
1,000

500

0
-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

Return on Capital - Cost of Capital

Source: Paulson & Co., Company Filings as of December 31, 2016

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
11 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
RANDGOLDS CONSISTENT AND SIMPLE STRATEGY

20% IRR

$1,000/oz Gold Price

Source: Paulson & Co., Randgold

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
12 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
ELDORADO INVESTS IN NEGATIVE RETURN PROJECTS
& HAS LOWEST SHAREHOLDER RETURN

9,000
2 0 15
8,000
2 0 16
7,000
2 0 13
2 0 14
6,000
Invested Capital ($m)

5,000
2 0 12
4,000

3,000
2 0 10 2 0 11
2,000

1,000

0
-8.0% -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0%

Return on Capital - Cost of Capital

Source: Paulson & Co., Company Filings as of December 31, 2016

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
13 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
ELDORADO: HISTORY OF CHRONIC, POOR M&A

Net Value
Purchase Cum Cash Disposal
Deal Year Outflow Status
Price ($m) Flow ($m) ($m)
($m)
Sino Gold 2009 -$1,421 $599 $796 -$26 Sold

Brazauro 2010 -$75 -$58 - -$133 Pending

Andean 2010 -$3,200 - - - Outbid

European Construction/
2011 -$2,256 -$928 - -$3,184 Arbitration
Goldfields
Glory Resources 2013 -$32 -$4 - -$36 Pending
Pre-
Integra 2016 -$336 - - -$336 Feasibility

TOTAL
-$4,120 -$391 $796 -$3,715
(excl. Andean)

Source: Paulson & Co., BMO, Bloomberg, Company Filings

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
14 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
$85 BIILLION ON COLLECTIVE WRITEDOWNS
AS A RESULT OF POOR INVESTMENT
Cumulative Writedowns Since 2010
($ Millions)
30,000

25,000

20,000

15,000

10,000

5,000

0
Iamgold

Eldorado

Kinross
Yamana

Goldcorp
AngloGold

Barrick
Randgold

Gold Fields

Newcrest
Polymetal

Agnico

Newmont

Source: Paulson & Co., Company Filings as of December 31, 2016

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
15 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
8 LARGEST M&A DEALS: $36 BILLION PAID AND STILL CASH FLOW
NEGATIVE
Years Since Acquisition: 7.2 6.2 6.9 3.2 6.8 5.5 6.4 7.8

10,000
8,000
6,000
4,000
2,000
0
(26)
-2,000
-4,000 (2,608) (2,277)
(3,484)
-6,000 (4,522)
-8,000
(7,802)
-10,000 (8,440)
(9,156)
-12,000

Osisko / Agnico & Yamana

Andean Resources / Goldcorp

European Goldfields / Eldorado

Equinox / Barrick

Red Back / Kinross

Lihir Gold / Newcrest

Fronteer Gold / Newmont

Sino Gold / Eldorado

Transaction Value FCF Net Capital Outflow

Source: Paulson & Co., BMO Capital Markets

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
16 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
80% OF TRANSACTION VALUE OF 8 LARGEST M&A DEALS HAS BEEN
IMPAIRED
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Equinox / Barrick

Osisko / Agnico & Yamana

Red Back / Kinross

Fronteer Gold / Newmont

Andean Resources / Goldcorp

Sino Gold / Eldorado

European Goldfields / Eldorado
Lihir Gold / Newcrest

Transaction Value Impairment

Source: Paulson & Co., BMO Capital Markets

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
17 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
RETURN ON CAPITAL SHOCKINGLY LOW

Return on Capital
(2010-2016)
25%
22.6%

20%

15%

1 0.5%
10%
7.4%

5.1%
5% 4.6%
2 .9%
2 .3%
1.7% 2.2%
1.2% 1 .2% 1 .4%
0 .7% 1.1%
0%
Kinross

Yamana

Randgold
Newmont
Iamgold

Goldcorp

Average

Gold Fields
Barrick
Eldorado

Newcrest

AngloGold

Polymetal
Agnico

Source: Paulson & Co., Company Filings

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
18 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
WHOSE FAULT IS IT?

Shareholders Have No One To Blame But

Themselves

Investors Rubber Stamp Mergers, CEO Pay

Packages, Board Appointments

Behave Like Sheep Being Led To Slaughter

Little To No Engagement With Boards

No Activism

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
19 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
SOMETHING HAS TO CHANGE

The definition of insanity is doing the same thing

over and over again and expecting a different
result.

-Albert Einstein

The secret of change is to focus all your energy not

on fighting the old, but on building the new.

-Socrates

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
20 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
OUTLOOK

Consistent Underperformance & Value

Destruction Will Result in Either:

Activist Shareholders Entering

Continued Frustration for Equity
Shareholders

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
21 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
INVESTORS HAVE BEEN TAKEN FOR A RIDE

CEOs Take Massive Pay Irrespective of Investor Returns

Boards Are Stacked With CEO Appointees & Cronies

CEOs And Boards Own Little Or No Stock

Reload on Options Even As Stock Declines

CEOs And Boards Get Rich While Shareholders Lose

Money

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
22 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
RULES OF THE GAME MUST CHANGE

Investors Must Take The Bull By The Horns

Need To Demand Accountability

Company Pay, Especially CEOs, Should Be Aligned

With Shareholder Returns

Poorly Performing CEOs and Boards Should Be Booted

Boards Must Have More Shareholder Representation

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
23 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
PAULSON STRATEGY

Our Recent Investments Have Involved Buying

Stakes In Companies and Getting Board
Representation with Investor Rights Agreements:

Midas Gold
International Tower Hill

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
24 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.
CALL TO ACTION: SHAREHOLDERS GOLD COUNCIL (SGC)

Coalition Formed By Gold Investors, Similar to ISS

Council Composed Of Broad Base of Significant Gold

Shareholders

Make Recommendations On Board Appointments,

Pay Packages, AGM Matters, Extraordinary Meetings

Looking For Founding Partners To Join Us

Finally Gives Gold Investors A Real Voice

Source: Paulson & Co.

This material has been obtained from sources believed to be reliable but its accuracy cannot be guaranteed. This information is presented for illustrative purposes only and may represent Paulsons views based on various
assumptions that may not occur or differ in the future. There is no guarantee that securities and exposure levels presented herein would be held in the funds in the future. Benchmarks used for comparison throughout this material
are unmanaged and effected by factors that may differ from those effecting Paulson portfolio, therefore, cannot be solely relied upon as an accurate measure of comparison. Performance results described herein are net of fees and
25 expenses for the periods indicated. Past performance does not necessarily indicate future returns and may differ depending upon the actual date of investment. This material is confidential and may not be distributed to other
than the intended recipient. Unauthorized reproduction or distribution of all or any of this material is strictly prohibited. Copyright 2017 Paulson & Co. Inc.