Document:

exv4w7

 

FORM 51-102F3

Material Change Report

	 	Item 1   	 Name and Address of Company
	 
	 	   	Fairfax Financial Holdings Limited (“Fairfax”)
 95
Wellington Street West, Suite 800 
Toronto, Ontario
M5J 2N7
	 
	 	Item 2   	 Date of Material Change
	 
	 	   	October 28, 2004
	 
	 	Item 3   	 News Release
	 
	 	   	The attached press release was distributed through CCNMatthews on October 28, 2004.
	 
	 	Item 4   	 Summary of Material Change
	 
	 	   	Fairfax has agreed to issue US$300 million of subordinate voting shares (2,406,741
shares) to a number of institutional investors, including Markel Corporation (US$100
million) and Southeastern Asset Management (US$150 million), at US$124.65 per share.
Fairfax intends to use the proceeds of this issue to purchase or redeem outstanding
indebtedness from time to time, based on market conditions, and for general corporate
purposes. Closing of the share issuance is subject to approvals by requisite
regulatory authorities, which are anticipated to be obtained before the end of 2004.
	 
	 	Item 5   	 Full Description of Material Change
	 
	 	   	Please refer to the attached press release for a full description of the material
change.
	 
	 	Item 6   	 Reliance on subsection 7.1(2) or (3) of National Instrument 51-102
	 
	 	   	Not applicable.
	 
	 	Item 7   	 Omitted Information
	 
	 	   	No significant facts remain confidential in, and no information has been omitted from,
this report.
	 
	 	Item 8   	 Executive Officer
	 
	 	   	For further information please contact Bradley P. Martin, Vice President, at (416)
367-4941.
	 
	 	Item 9   	 Date of Report
	 
	 	   	November 5, 2004

 

 

FAIRFAX News Release

Stock Symbol: FFH.SV (TSX); FFH (NYSE)

TORONTO, October 28, 2004

US$300 MILLION EQUITY ISSUE

(Note: All dollar amounts in this release are expressed in U.S. dollars.)

Fairfax Financial Holdings Limited has agreed to issue $300 million of subordinate voting
shares (2,406,741 shares) to a number of institutional investors, including Markel Corporation
($100 million) and Southeastern Asset Management ($150 million), at today’s closing price of
$124.65 per share. Fairfax intends to use the proceeds of this issue to purchase or redeem
outstanding indebtedness from time to time, based on market conditions, and for general corporate
purposes.

Closing of this share issuance is subject to approvals by requisite regulatory authorities, which
are anticipated to be obtained before the end of 2004. Fairfax will file a supplement to its
current shelf prospectus with applicable Canadian and U.S. securities regulatory authorities
providing for the issuance of these additional shares.

Prem Watsa, CEO of Fairfax, commented: “Fairfax is raising significant equity at this time because
of its high priority of improving its ratings and deleveraging significantly. A strong financial
position with cash in excess of $600 million after this issue is the best way to handle uncertainty
in our industry and in the economy generally. So when Steven Markel, Vice Chairman of Markel
Corporation, with one of the best insurance company track records, and Mason Hawkins, founding
partner of Southeastern Asset Management, one of our largest shareholders with one of the best
investment track records, offered to buy shares, we took advantage of the opportunity.

The significant flexibility that this equity issue provides the holding company, together with the
disciplined underwriting operations that we have built, our runoff expertise and our investment
acumen, will allow us to recoup the 5% dilution to book value quite easily.”

Steven Markel, Vice Chairman of Markel Corporation, stated: “We have known Prem Watsa for more
than 19 years, and we have the utmost confidence in Prem and his management team. We are delighted
to participate in this capital raising, as we believe Fairfax is well on its way to increased
profitability. This is among the largest equity investments that our company has ever made, and we
expect that this transaction will produce the classic “win-win” for Markel and Fairfax.”

Mason Hawkins, founding partner of Southeastern Asset Management, added: “We welcome the
opportunity to increase our investment in Fairfax and are delighted to be investing alongside
Markel Corporation. In our many years of investing, we haven’t
found or invested in any insurance company we respect more than Markel, both in terms of
underwriting excellence and

 

 

integrity at the top. A premier underwriter such as Markel making such a large investment in
Fairfax is the ultimate statement about Fairfax’s business, management, balance sheet, and future
opportunity. This investment increases Fairfax’s financial flexibility and will allow the company
to maximize the growth in its intrinsic value per share over the next decade.”

Fairfax and Markel have also begun to explore opportunities for mutually beneficial transactions,
including possible terms for a strategic alternative for Markel’s French reinsurance subsidiary.

Consistent with common practice, Fairfax will be filing an amendment to its current base shelf
prospectus to restore the amount of securities which may be offered thereunder to $750 million.

A copy of the final prospectus supplement and related base shelf prospectus may be obtained from
Bradley P. Martin, 95 Wellington Street West, Suite 800, Toronto, Canada M5J 2N7, phone: (416)
367-4941.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of these securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the securities laws of any
such jurisdiction.

Fairfax Financial Holdings Limited is a financial services holding company which, through its
subsidiaries, is engaged in property, casualty and life insurance and reinsurance, investment
management and insurance claims management .

-30-

	 	 	 
	For further information contact:

	 	Bradley P. Martin, Vice President, at (416) 367-4941

FAIRFAX FINANCIAL HOLDINGS LIMITED

95 Wellington Street West, Suite 800, Toronto Ontario M5J 2N7 Telephone 416/367 4941 Telecopier 367 4946exv4w45

 

	Goldcorp + Wheaton The Superior Alternative

 

 

	Cautionary Statements

	of in or and any condition changes circular). statement. as

	Such factors estimated statement well and evaluations, offer as statement, (6) the of Goldcorp,
Wheaton or statements. anticipated, registration tender statement, notice of special meeting

	(2) performance not a shareholders and management tender offer looking (1) and of economic results
(1) a take-over bid circular and (2) a and management information financial Ltd.: registration
statement and prospectus, the Goldcorp and cause will be realized. of mineral reserves and mineral
resources be prospectus conclusions has attempted to identify important factors that could that
statements made in this document are qualified by Minerals shareholders and operations factors
category has filed the following documents with Canadian securities River
solicitation/recommendation looking statement business, resources are recognized and required by
Canadian regulations, Wheaton Goldcorp Goldcorp of notice of special meeting of Goldcorp the
Although Goldcorp and Wheaton River, each for the year ended December 31, 2003, and , for this
detailed information, which is subject to the qualifications and has filed the following documents
with the United States Securities and registration the shares meeting of Goldcorp a and Free copies
of the following documents can also be obtained by directing a statement and prospectus, (5) the
(1) concerning of current reclamation activities, statements, there may be other and “indicated”
Goldcorp common of special statement) Investors and shareholders may obtain a free copies the
documents described above at registration results Goldcorp: statements” looking outstanding has
filed the following documents with the United States Securities and Exchange Commission in of offer
looking the Glamis shares tender take-over bid circular, (2) the related letter of transmittal,
(3) the Goldcorp activities, actual forward Readers are cautioned not to assume that all or any
part of mineral deposits in these categories will ever of “forward and its subsidiaries.
Consequently, all of the forward all Gold Ltd. has filed a take over bid circular with Canadian
securities regulatory authorities in connection with its common Goldcorp’s circular, (4) the
Goldcorp statements, including, but not limited to, those with respect to the prices of gold,
copper and silver, the timing and contained in purchase Glamis to (1) the Goldcorp constitute
looking to offer. outstanding exhibit offer the Wheaton River investors and shareholders are strongly advised to read the Goldcorp
an its of as document Such forward shareholders and management information circular. with all
offer. investors and shareholders are strongly advised to read the Goldcorp this included in
connection purchase is United States readers are advised that, while the terms “measured” to
Goldcorp included Readers should refer to the respective annual information forms of Goldcorp in
offer (which at the address referred to below: circular, (7) the Wheaton River directors’ circular
and (8) certain other documents. its circular or from the Securities and Exchange Commission’s
website at www.sec.gov. shareholders and management information statements actual results to differ
materially from those There can be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those anticipated in such notes set
forth therein. the Securities and Exchange Commission does not recognize them. Commission with will
file a directors’ circular with Canadian securities regulatory authorities and a
solicitation/recommendation statement with United States Securities and Exchange tender offer
statement and the Wheaton River solicitation/recommendation statement, as well as any amendments
and supplements thereto, because they contain directors’ Certain Goldcorp, Wheaton and Glamis. amount of estimated future production, costs of
production, capital expenditures, reserves determination, costs and timing of the development of
new deposits and permitting time lines, involve known and unknown risks, uncertaintie
s and other
factors which may cause the actual results, performance or achievements Glamis, respectively, to be
materially different from any future results, performance or achievements expressed or implied by
such forward include, among others, the actual results of current exploration project parameters as
plans continue to be refined and the future prices of gold, copper and silver. cause intended.
statements. Many of these factors are beyond the control of Goldcorp these
cautionary statements and there can be no assurance that the expected results or developments
anticipated by Goldcorp Readers are advised that National Instrument 43-101 of the Canadian
Securities Administrators requires that each reported separately. material change reports filed by
each company since January 1, 2004 available at www.sedar.com be converted into reserves. This
document is neither an offer to purchase securities nor a solicitation of an offer to sell
securities. regulatory authorities in connection with its offer to purchase all of the outstanding
common shares of Wheaton River Minerals Ltd.: notice of special meeting of Goldcorp Exchange
prospectus and (2) a tender offer statement (which includes as an exhibit the notice Wheaton River
has filed a directors’ circular with Canadian securities regulatory authorities and a
solicitation/recommendation statement with United States Securities and Exchange Commission with
respect to Goldcorp’s offer to purchase all of the outstanding common shares of Goldcorp.
connection Goldcorp Commission with respect to Glamis’ Goldcorp important information. information
amendments and supplements thereto, because they contain important information. www.sedar.com
request to Goldcorp of Goldcorp Goldcorp

	Presentation assumptions throughout, unless otherwise
stated:

	All amounts in US dollars 2005 prices: Au
$400/oz, Cu $1.25/lb, Ag $6.00/oz; long-term Au $400/oz, Cu $0.95/lb and Ag $6.00/oz Silver
production treated as gold equivalent NAV discount rates of 5% for precious metals and 8% for base
metals Number of shares outstanding based on fully diluted, in the money shares using treasury
method

 

 

	The New Goldcorp

	Rob McEwen Chairman & CEO of Goldcorp Chairman of New Goldcorp Ian Telfer Chairman & CEO of Wheaton
River CEO of New Goldcorp

 

 

	One Shareholder’s Perspective

	“While I am Goldcorp’s CEO, I am also its 3rd largest shareholder and my goal is to increase the value of
our company and my investment” Rob McEwen, Jan 2005

 

 

	Transaction Rationale

	Wheaton River World Class Mines Strong Financial Position Asset Diversification Commodity Mix
Issues Strong Management
New Goldcorp The Superior Alternative Commodity Mix in Line with Peers Strong, Committed and
Entrepreneurial Management with Proven Track Record

	Goldcorp Management Succession World Class
Mines Geographically Diversified Producer Strong Financial Position Lowest Cost Million Ounce
Producer World Class Mine Strong Financial Position Track Record of Creating Value Lack of Asset
Diversification

 

 

	Growth Without Earnings Does NotReward Investors Glamis would issue 175 mm shares (135% dilution)
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: Bloomberg, Company Reports and BMO
Nesbitt Burns Research Note: Share price change = Closing prices between Jun. 3, 1996 and Jan. 18,
2005

	Share Price ($)

	GWE $16 14 12 10 8 6 4 2 0

	Goldcorp

	+205%

	0 700 600 500 400 300 200 100 (000’s) Prod. Ozs

	Share price 1996-2005 Share Price ($) Jan. 18/05: $423

	$80 70 60 50 40 30 20 10 0 Gold Spot -

	Placer Dome 5 2005E Production -39% Barrick Jun. 3/96: $391 1996 Production -29% Gold Spot -

	-28% Newmont

	(000’s) Prod. Ozs

	May-03

	Jan-03 ?

	Dec-04 Sep-02 Jul-04 May-02 Feb-04 Sep-03

	Agnico Jan-02 Glamis

	Apr-03 Sep-01 Nov-02 May-01 Jun-02 Jan-01 5 0Jan-02

	$19 17 15 13 11 9 7 5 $25 20 15 10 /Share $ /Share $

	May-03 May-04 Jan-03 Dec-03 Sep-02 Jul-03 May-02 Feb-03

	Meridian Jan-02 Goldcorp Sep-02

	Apr-02 Sep-01 Nov-01 May-01 Jun-01 Jan-01 8 6 4 2 Jan-01

 

 

	Intermediate Producers Share Price Performance: Intervening Events $21 18 15 12 9 6 3 $20 18 16 14
12 10 Source: Bloomberg

	/Share $ /Share $

 

 

	Why Wheaton Over Glamis? It’s the right deal for Goldcorp! VALUE RISK MANAGEMENT

 

 

	76.6x Glamis $5,102 Glamis ($/oz) 54.9x Peer Avg $3,540 Peer Avg

	P/E—2005E 21.6x Wheaton EV/2005E Production $2,342 Wheaton

	Attractive Valuation 8

	1.9x Glamis 27.8x Glamis 1.6x Peer Avg 19.0x Peer Avg

	P/5% NAV 1.5x Wheaton P/CFPS—2005E 13.7x Wheaton Company models and BMO Nesbitt Burns Research
Note: Peer average based on average multiples of intermediate peer group: Why Wheaton? Source:
Agnico-Eagle, Bema, Centerra, IAMGold, Kinross, Meridian, Goldcorp

 

 

	234 Glamis $882 IAMGold 237 Bema $1,100 Agnico 280 Agnico $1,128 Bema 313 Meridian
$1,231 Centerra 431 IAMGold $1,793 Wheaton

	Glamis is Overvalued 621 Wheaton $1,812 Meridian

	628 Goldcorp $2,128 Glamis 641 Centerra $2,357 Kinross 1,671 Kinross $2,724 Goldcorp Source:
Company Reports and BMO Nesbitt Burns Research

 

 

	Why Wheaton? 2004E Production (000’s oz) Market Cap ($ mm)

	$ 15 Glamis

	Superior Performance $ 86 Wheaton 2004 9 mo.

	$ 18 Glamis 2003 $ 58 Wheaton

 

 

	Why Wheaton? Net Income ($ mm) Source: Company Reports

	$0.05 Glamis-Goldcorp

	-74%

	Significant Earnings Now $0.19 Goldcorp

	$0.32 Goldcorp-Wheaton

	+68%

	Pro Forma EPS $0.19 Goldcorp

	Why Wheaton? 9 Months Ended Sept. 30/04 Source: Glamis takeover bid circular, Goldcorp takeover bid
circular Note: See Appendix C for additional information regarding pro forma impact to earnings

 

 

	Glamis -4% 3% -98% -45% -1%

	+27% +12% +47% +11% +5%

	Superior Value Creation Accretion/(Dilution) to Goldcorp Shareholders Wheaton 12

	Why Wheaton? 2005E CFPS 2006E CFPS 2005E EPS 2006E EPS 5% NAVPS Source: Company Models and BMO
Nesbitt Burns ResearchNote: Includes break fee paid for termination of Wheaton
transaction.Amortization of purchase price discrepancy on production ounce basis,see Appendix C for
more information

 

 

	$22 Glamis

	Stronger Financial Position $404 Wheaton 13

	$420 Goldcorp Note: Wheaton pro forma Silver Wheaton transaction that closed on Oct. 15, 2004.
Silver Wheaton securities valued at current market. Goldcorp includes market value of gold bullion
and marketable securities

 

 

	Why Wheaton? Liquid Assets Sept. 30/04 ($ mm) Source: Company Reports

	Production -29% 25 Revised Budget & Actual

	(000 oz)

	2004 El Sauzal 35 Budget $192 Estimate

	($/oz)

	2004E Cash Costs +10% $175 Budget

	-12% 234 Actual

	(000 oz)

	Glamis Misses Targets 2004 Production 265 Budget

 

 

	$184 Actual

	($/oz) +8%

	-8% 230 Actual 2003 Cash Costs $170 Budget

	(000 oz)

	Why Wheaton? 2003 Production 250 Budget Source: Company Reports

	($/oz) ($/oz) $200 190 180 170 160 150 140 130 $350 300 250 200 150 100 50 0 Q3/04 Q3/04 Q2/04
Q2/04 Total Cash Costs

	Q1/04 Q1/04

	Luismin Peak

	Q4/03 Q4/03 Q3/03 Q3/03 Au Equiv Prod

	Q2/03 Q2/03

	70 60 50 40 30 20 10 0 40 35 30 25 20 15 10 5 0 Au equiv. Prod. (000’s oz) Au equiv. Prod. (000’s
oz)

	Why Wheaton?Proven Operating Performance Increased Production Lowered Costs Exceeded Budgets
Source: Company Reports

 

 

	Nil! 2003 & 2004 Glamis 663 383 280 2003 & 2004 Wheaton 1,084 552 532 2003 & 2004 Goldcorp

	Why Wheaton?Proven Underground Experience Gold Production from Underground Mines (000 oz)

	Source: Company Reports

 

 

	Marlin42%

	Cerro Blanco 5% Glamis San Martin4% Marigold15% Projects Projects El Sauzal 34%

	Less Development Risk Mines vs Alumbrera45% Mines

	Wheaton Peak7% Amapari17% San Martin3%

	Why Wheaton? 5% NAV Contribution – San Dimas District 18% Los Filos 10% Company models and BMO
Nesbitt Burns Research Source:

 

 

	Glamis Overvalued Future Dilutive <$25mm Misses Targets None High Risk

	Score Card

	Wheaton Attractive Now Accretive >$400mm Exceeds Budgets Proven Track Record Low Risk

	Why Wheaton Over Glamis? Valuation Earnings Value Creation Cash & Securities Operating Performance
Underground Expertise Development Profile

 

 

	11% Newmont Revenue 19% NewGoldcorp 20% Placer Dome

	Base Metal % of 2006E 25% Newcrest

	New Goldcorp is a Gold Company Highly valued gold companies produce base metals New Goldcorp will
retain premium gold multiples 40% Agnico Source: Company Reports and BMO Nesbitt Burns Research

 

 

	The New Goldcorp

 

 

	A Compelling Combination

	New Goldcorp – World Class Mines Geographically Diversified Producer Strong Financial Position
Lowest Cost Million Ounce Producer Commodity Mix in Line with Peers Strong, Committed and
Entrepreneurial Management with Proven Track Record

 

 

	(37.5%)

	Red Lake 550,000 oz Amapari 189,000 oz Alumbrera 208,000 oz Peak 136,000 oz Amapari 10.5 mm ozs
Red Lake
22 Los Filos New Goldcorp Saskatchewan Minerals Wharf Mine Bajo de la Alumbrera Total
Reserves: Total Resources: 9.5 mm ozs Luismin and Los Filos

	Peak Luismin 142,000 oz Los Filos 86,000 oz

	Wharf 72,000 oz is 2005E gold (excludes silver) Great Mines Make a Great Mining Company Goldcorp
Mines Goldcorp Head Office Wheaton Mines Wheaton Projects Wheaton Head Office Source: Company
Reports Note: 2005E Au production shown for all except Amapari which are 2006E. Luismin

 

 

	1.40

	New Goldcorp 1.20

	1.00 0.80

	Centerra

	IAMGold 0.60 2005E Prod. (mm ozs)

	Circle size represents relative size of gold reserves Agnico 0.40 Bema Glamis Meridian 0.20

	$350 300 250 200 150 100 50 0 -50

	Distancing Ourselves from the Pack Cash Cost ($/oz)2005E Source: Company Reports, Company Models
and BMO Nesbitt Burns Research

 

 

	$-23 Agnico

	$22 Glamis

	Liquid Assets $82 IAMGold

	$131 Centerra

	Sept. 30/04 24

	$206 Kinross $225 Meridian

	Liquid Assets (Net Debt) $824 New Goldcorp

	Strong Financial Position – ($ mm) Source: Company Reports Note: Wheaton pro forma Silver Wheaton
transaction that closed on Oct. 15, 2004. Silver Wheaton securities valued at current market.
Goldcorp includes market value of gold bullion and marketable securities

 

 

	$348 Harmony $317 Gold Fields $246 AngloGold $242 Newmont $240 Placer Dome $226 Kinross $211
Barrick $143 Buena- ventura $104 Newcrest

	New Goldcorp is the lowest cost million ounce producer. $55 New Goldcorp

	The Lowest Cost Million+ Ounce Producer 2005E Cash Cost (base metals as by-products) ($/oz) Source:
Company models and BMO Nesbitt Burns Research. Note: Cash costs for Au equivalent production;
by-product credits calculated assuming $1.25/lb Cu, $0.48/lb Zn, $0.24/lb Pb

 

 

	$348 Harmony $317 Gold Fields $246 AngloGold $242 Newmont $240 Placer Dome $226 Kinross calculated
assuming $1.25/lb Cu, $0.48/lb Zn, $0.24/lb Pb $211 Barrick $199 Newcrest $143 Buena- ventura

	New Goldcorp remains the lowest cost million ounce producer whether copper is treated as a
by-product or co-product to gold $136 New Goldcorp

	The Lowest Cost Million+ Ounce Producer 2005E Cash Cost (base metals as co-products) ($/oz) Source:
Company models and BMO Nesbitt Burns Research. Note: Cash costs for Au equivalent production;
co-product costs based on proportional gold revenue allocated to total cash costs

 

 

	$13 Meridian $14 Agnico $21 Glamis $25 Kinross

	$65 Placer Dome $67 NewGoldcorp

	$77 Barrick Average daily volume in 2004, includes all exchanges

	Enhanced Liquidity Average Daily Value Traded ($ mm) Source: Bloomberg Note:

 

 

	$220 Amapari $115

	$148 $89 Los Filos/El Limon Silver Wheaton Market Value $72 Peak $34 0% NAV $448 Alumbrera $266
Purchase Price $519 Luismin

	Track Record of Accretive Acquisitions ($ mm) $85 Source: Company Reports, BMO Nesbitt Burns
Research and Bloomberg

 

 

	Record High

	oz of silver on a gold equivalent basis.

	2004 Accomplishments Lowest Ever

	Wheaton – Produced 621,100 oz (full year) – Cash costs – Operating cash flow (9 months) $147
million >$125 million in dividends from Alumbrera Note: 621,000 oz refers to gold equivalent
that includes 108,200

 

 

	+213% +47% +31%

	Jan-05 Oct-04 Jul-04 Apr-04 Jan-04

	Delivering Shareholder Value Oct-03

	Relative Share Price Performance Jul-03

	Wheaton Glamis S&P / TSX Gold Index Apr-03

	0% Jan-03

	Wheaton — 300% 250% 200% 150% 100% 50% -50% Source: Bloomberg

 

 

	A Compelling Combination The Superior Alternative Lowest Cost Million Ounce Producer Commodity Mix
in Line with Peers New Goldcorp – World Class Mines Geographically Diversified Producer Strong
Financial Position Strong, Committed and Entrepreneurial Management with Proven Track Record

 

 

	Goldcorp + Wheaton The Superior Alternative

 

 

	Transaction Summary Asset Summary Annual Mine Depletion

	Appendices Appendix A: Appendix B: Appendix C:

 

 

	Takeover bid Each Wheaton River share will be exchanged for 0.25 of a Goldcorp Share Wheaton
River’s options and warrants will be exercisable to purchase Goldcorp shares on the same exchange
ratio basis Minimum number of shares tendered is 66 2/3% of common shares outstanding Approval of
the issuance of Goldcorp shares as transaction consideration by holders of a majority of Goldcorp
shares at the shareholder meeting on February 10, 2005 The Boards of Goldcorp and Wheaton River
have voted in favor of the combination Goldcorp has the right to match a superior proposal If the
combination does not occur as a result of one party accepting a superior proposal or Goldcorp
shareholders not approving the issuance of Goldcorp shares, a termination fee of $35 million will
be payable to the other Each party has the right to proceed with a superior proposal February 14,
2005 at 5:00 pm (Vancouver time)

	Appendix A: Transaction Summary Transaction Structure Consideration Key Conditions Board Support
Termination Provisions Proceeding with a Superior Proposal Bid Expiry Date

	ATTRIBUTABLE GOLD (mm oz) (100%) 4.94 1.14 1.32 Red Lake 1.23 0.50 1.41 GRADE (oz/t) Red Lake
TONNES (mm) (100%) 3.18 2.26 0.94 Wharf Mine GOLD RESERVES AND RESOURCES CATEGORY Proven & Probable
Measured & Indicated Inferred

 

 

	Appendix B: Goldcorp Red Lake—Canada (100%) In operation since 1948 March, 1995 nine holes with
average grade of 9.08 oz/t across 7.5 feet 1996, annualized production rate of 53,000 Au oz at
$360/oz 2004, Red Lake produced 552,000 Au oz 2005E production is 550,000 Au oz Company reports and
Website

	Source:

	ATTRIBUTABLE GOLD (mm oz)(37.5%) 2.59 ATTRIBUTABLE COPPER (mm t)(37.5%) 0.72 GRADE (g/t) 0.53 Cu
(%) 0.48 GOLD RESERVES AND RESOURCES TONNES (mm)(100%) 150.1 COPPER RESERVES AND RESOURCES TONNES
(mm)(100%) 150.1

	Bajo de la Alumbrera

	CATEGORY Proven & Probable CATEGORY Proven & Probable
separate transactions in 2003 50%; per day US$1.2 billion 2004 production: 237,700 oz gold gold and
151 million lbs of copper

 

 

	Appendix B: Wheaton River Bajo de la Alumbrera Mine—Argentina (37.5%) Acquired 37.5% interest in
two Co-ownership: XstrataNorthern Orion 12.5% Open pit 300,000 tonnes 10+ years of proven and
probable reserves Historical capex: Commercial production began February 1998 and 146 million lbs
of copper 2005E production of 142,000 oz Wheaton River Minerals Website

	Source:

	ATTRIBUTABLE GOLD (mm oz)(100%) 0.77 0.35 1.74 ATTRIBUTABLE SILVER (mm oz)(100%) 36.0 141.4 GRADE
(g/t) 4.88 4.87 3.09 Grade (g/t) 338 295 TONNES (mm t)(100%) 4.9 2.3 17.5 TONNES (mm)(100%) 3.3
14.9 Luismin GOLD RESERVES AND RESOURCES SILVER RESERVES AND RESOURCES

	CATEGORY Proven & Probable Measured & Indicated Inferred CATEGORY Proven & Probable Inferred
district (largest mine) is a

 

 

	Located in the San Dimas Acquired in June of 2002 Mines have produced over 838,000 oz of gold and
57 million oz of silver since 1991 San Dimasworld-class epithermal vein system accounting for 70%
of production Operations have consistently converted 90% of resources into reserves 2004 production
was 132,500 oz of gold and 6.7 mm oz of silver 2005E production of 142,000 oz of gold and 7.9
million of silver Wheaton River Minerals WebsiteNote: Wheaton sold silver production to Silver
Wheaton in 2004

	Appendix B: Wheaton River Luismin Complex—Mexico (100%) Source:

	ATTRIBUTABLE GOLD (mm oz)(100%) 0.49 0.13 0.87 ATTRIBUTABLE COPPER (mm t)(100%) 0.01 0.01 0.04
GRADE (g/t) 6.48 3.73 8.40 Cu (%) 0.53 0.96 1.17

	Peak

 

 

	GOLD RESERVES AND RESOURCES TONNES (mm)(100%) 2.3 1.0 3.2 COPPER RESERVES AND RESOURCES TONNES
(mm)(100%) 2.3 1.0 3.2 CATEGORY Proven & Probable Measured & Indicated Inferred CATEGORY Proven &
Probable Measured & Indicated Inferred

	Wheaton River 38

	Appendix B: Peak Mine—Australia (100%) Located 600km west of Sydney Acquired in March 2003
Underground and open pit ore bodies 50 km adjacent exploration 2004 gold production: 142,700 oz
2005E production of 136,000 oz gold Wheaton River Minerals Website

	Source:

 

 

	ATTRIBUTABLEGOLD (mm oz)(100%) 1.39 0.30 0.98

	Amapari, Brazil GRADE (g/t) 2.93 1.43 4.10 GOLD RESERVES AND RESOURCES TONNES (mm)(100%) 14.8 6.6
7.4 CATEGORY Proven & Probable Measured & Indicated Inferred

	39

	State heap leach oxide

	January, 2004 of open pit heap leach $70 million (incl. Wheaton River Minerals Website Appendix B:

	Wheaton River Amapari—Brazil (100%) Located in Brazil’s Amapa Acquired in Open pittabledeposit and
underground sulphide deposit Construction began in November 2003; production expected to begin in
2005 Estimated heap leach recoveries in excess of 90% Capexoperation:payments of $15 million)
Second $50 million underground phase to be funded with cash flow 2005E production of 89,000 oz of
gold 2006E annual production: 189,000 oz of gold

	Source:

 

 

	ATTRIBUTABLEGOLD (mm oz)(100%) 2.16 0.12 GRADE (g/t) 1.09 0.63 Los Filos, TONNES (mm)(100%) 61.9
5.7 Mexico GOLD RESERVES AND RESOURCES

	CATEGORY Measured & Indicated Inferred

	Wheaton River exploration:

	Acquired by Wheaton in 2003 Comincototalling 90,000 Wheaton River Minerals Website Appendix B: Los
Filos—Mexico (100%) Located in Mexico’s Guerrero State Previous Teck400 drillholesmetres of
drilling Estimated heap leach recoveries > 70% Early stage exploration indicates potential to
expand resources Feasibility study to be completed early 2005 Expected capital costs: $80 million
LOM average Production of 175,000 ounces of gold to begin Q3 2006

	Source:

 

 

	proposal $2,368 736 1,462 209 27 40

	(US$ in millions) G-WRM $40 G-WRM $3,370 540 1,984 1,146 75 220 G-GLG $220 G-GLG

	($/oz)

	Incremental Annual Depletion/Oz $300 250 200 150 100 50 0

	41

	$209 G-WRM (1)

	of Assets $1,146 G-GLG ($ mm)

	Appendix C: Comparative Creation of Annual Mine Depletion Due to the comparatively low book values
of Goldcorp, Glamis’ creates significant annual depletion charges that depress pro forma EPS for
the next 15 years Transaction Consideration Book Value of Equity Goodwill Writeup of Assets Annual
Mine Depletion Incremental Annual Depletion/Oz. Writeup $1,400 1,200 1,000 800 600 400 200 0
Source: Goldcorp and Glamis takeover circular1. Annualized 9 month purchase price discrepancy as
per circulars

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