Canada Research

Published by Raymond James Ltd

Trevali Mining Corporation

TV-TSX
Adam Low CFA | 416.777.4943 | adam.low@raymondjames.ca Tracy Reynolds (Associate) | 416.777.7042 | tracy.reynolds@raymondjames.ca
Rating & Target

March 2, 2012 Company Comment

Outperform 2 Target Price (6-12 mos): Old: C$2.05 New: C$2.15 Current Price ( Mar-01-12 ) C$1.60 Total Return to Target 34% 52-Week Range C$2.38 - C$0.73 Market Data Market Capitalization (mln) C$258 Current Net Debt (mln) -C$18 Enterprise Value (mln) C$240 Shares Outstanding (mln, f.d.) 161.0 Average Daily Volume (000s) 646 Dividend/Yield C$0.00/0.0% Key Financial Metrics 2010A 2011E 2012E P/E NA NA 34.2x P/NAV NA 0.56x EBITDA (mln) Old C$(3) C$(4) C$13 New C$(3) C$(4) C$12 Zn Production (000's MT) 0.0 0.0 25.4 Zn Cash Costs (US$/lb) Old NA NA US$0.63 New NA NA US$0.64 Company Description Trevali Mining Corp. (TV-TSX) is developing two polymetallic mining projects: Halfmile-Stratmat in New Brunswick, and Santander in Peru.

Base Metals & Minerals | Exploration & Development

Trevali Closes its Funding Gap Via an Investment by Glencore Event

Before market open on March 1, 2012, Trevali announced that it has entered into a private placement with Glencore International Plc to sell 12.6 million common shares at C$1.42/share for total proceeds of US$18 million.

Recommendation
We are maintaining our Outperform rating and are raising our target price to C$2.15 from C$2.05. We are increasing our P/NAV target multiple to 0.75x (prev. 0.70x) based on a reduction in the funding risk for Trevali following this financing announcement. We continue to recommend investors buy the shares of Trevali as it transitions to an operating mining company from a developer. Trevalis objective is to commence production in 2012 at both of its polymetallic mine projects: Halfmile in New Brunswick, and Santander in Peru. Mining has commenced from the uppermost portion of Halfmile and ore is being stockpiled at Xstratas nearby Brunswick 12 mill for processing in late 1Q12. Trevali intends to commission Santander in mid-2012. We expect to see an appreciation in the trading multiple as the company makes this progression.

Analysis
We believe that this announcement is positive for Trevali as it removes the companys near-term financing gap. The funds will be used to advance the Santander mine, and provide working capital facilities for the Halfmile mine. In our view this is also a very favourable endorsement for Trevali from the largest player in the zinc industry (Glencore). The moderately dilutive impact of the share issuance to our net asset value (NAV) estimate (refer to Exhibit 5), is partially offset by the recent changes to our near- to medium-term precious metals prices (see the Industry Comment published by our Precious Metals team on February 22, 2012 entitled Precious Metals: Fourth Quarter Preview & Reviewing Our Price Deck). Our revised NAV/share is C$2.87 (prev. C$2.91).

Valuation
Trevalis shares are trading at a P/NAV of 0.56x. Our target price of C$2.15 is based on a 0.75x multiple applied to our NAV of C$2.87 (in-line with risk and liquidity-adjusted historic developer and producer multiples).
EPS 1Q 2Q 3Q 4Q Mar Jun Sep Dec 2010A C$(0.01) C$(0.01) C$(0.01) C$(0.02) 2011E (0.01)A (0.04)A (0.01)A (0.01) 2011E (0.01)A (0.04)A (0.01)A (0.01) 2012E (0.01) 0.00 0.02 0.04 2012E (0.02) 0.00 0.02 0.04 Full Year C$(0.06) (0.06) (0.06) 0.05 0.05 Revenues (mln) NA NA NA 58 57 NAV

Old New Old New

NA NA 2.91 2.87

Source: Raymond James Ltd., Thomson One

Please read domestic and foreign disclosure/risk information beginning on page 6 and Analyst Certification on page 7.
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Trevali Mining Corporation

Details of the Transaction

Number of shares & issuance price Through a non-brokered private placement Glencore will buy 12,620,282 common shares of Trevali for C$1.42/share, a 5% discount to Wednesdays closing price of C$1.50/share. Glencores equity stake in Trevali Upon closing, Glencore will directly own approximately 7.8% of Trevalis outstanding common shares. Xstrata, an affiliate of Glencore (Glencore owns 34% of Xstratas shares, and the two companies are planning to merge), currently holds close to 4% of Trevalis common shares. Glencore also holds a $2 million convertible debenture facility from Trevali with the option to convert the facility into equity in September 2012 at the 30-day VWAP and a minimum conversion price of C$0.64/share (based on the recent price of Trevalis shares the VWAP conversion would represent the issuance of 1.7 million common shares). In aggregate, Glencore and Xstratas diluted equity holdings in Trevali represent a stake of 12.45%. A seat on the Board for Glencore Upon the closing of the private placement Chris Eskdale of Glencore will join Trevalis Board of Directors. Mr. Eskdale is a U.K. chartered accountant with an MA from Oxford University. He has been a member of Glencores Metals and Minerals Business Group for more than 15 years, where he manages mining investments in the zinc-copper sector. This addition will bring the number of directors on Trevalis Board to 8.

Closing the Funding Gap

From our discussion with management Trevali has approximately $10 million in cash at present, and we estimate that the company will have close to $27 million in cash following the closing of the Glencore private placement. We believe that this should be sufficient to fund the companys near-term capital expenditures at Halfmile (approximately $4 million for underground development), and Santander ($13 million for underground development, upgrading of the tailings facility, and completion of the powerline). Although Trevali is now in a much more comfortable financial position we do expect the company to continue to pursue arranging credit facilities to provide more financial flexibility, as well as secure a project loan from Peruvian banks for the refurbishment of the Tingo hydro-electric power station in Peru (likely in the amount of $15 million).

Potential Catalysts for Trevalis Shares

1) Drill results from Stratmat (New Brunswick) and Santander. 2) Commencement of toll-milling concentrate production from Halfmile expected in late 1Q12. 3) Resource update for Santander expected in 2Q12. 4) Receipt of the beneficiation and mining permits for Santander expected in 1Q12/2Q12. 5) Resource update for Halfmile & Stratmat expected in 2Q12. 6) Commissioning at Santander expected in mid-2012.

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Historical and Future Relationship of Trevali with Glencore/Xstrata

Glencore at Santander Trevali has signed a unique life-of-mine concentrate offtake agreement with Glencore for its Santander mine in Peru. Glencore is currently in the process of relocating an existing concentration plant from its depleted Rosaura deposit (also in Peru) to the Santander mine site. Glencore will also provide contract mining services, and for the first four years of production toll-milling using the 2,000 tonnes/day concentrator, after which Trevali will assume ownership of the mill. Xstrata at Halfmile Xstrata has been a significant shareholder of Trevali (approximately 4% of the common shares outstanding) since the companys acquisition of Kria Resources (the former owner of Halfmile-Stratmat assets) in early 2011. In October 2011 Trevali and Xstrata finalized a toll-milling and concentrate off-take agreement for the Halfmile mine. Xstrata will produce zinc, lead-silver, and copper-gold concentrates at its nearby Brunswick 12 concentrator, and purchase 100% of the output.

The agreements that Trevali has negotiated with Glencore and Xstrata have enabled it to position itself for near-term production, with minimal capital expenditure, at both of its mine development projects. We expect Xstratas Brunswick mine to be depleted in 2013, at which time we also anticipate that Xstrata will close its Brunswick 12 concentrator, thus bringing an end to the toll-milling agreement for Halfmile. In our base case analysis we assume that the closure of the Brunswick 12 mill will necessitate Trevali constructing its own dedicated concentrator to process ore from the HalfmileStratmat deposits. We have assumed a capital cost estimate for this facility of $136 million. In our view, the combination of Glencores equity investment in Trevali (signifying the strong relationship that these two companies share), and Glencores pending merger with Xstrata, has the potential to reduce this capital expenditure burden. We can envision two possible scenarios through which Trevali could benefit from a Glencore and Xstrata merger: 1) Glencore could retrofit the Brunswick 12 mill to a smaller throughput capacity (from 10,000 tonnes/day to 4,000 tonnes/day) and extend the tollmilling agreement; or 2) Glencore could sell the Brunswick 12 mill to Trevali, and Trevali could then refurbish and customize the mill to meet its requirements. In Exhibit 1 we outline the impact that these scenarios could have on our NAV estimate.

Exhibit 1: Potential Capital Cost Reduction Scenarios for Halfmile-Stratmat

Scenario Base Case - construction of a dedicated mill for Halfmile-Stratmat #1 - Toll-Milling for Life-of-Mine #2a - Purchase and retrofit of Brunswick 12 - high-end #2b - Purchase and retrofit of Brunswick 12 - low-end
Source: Raymond James Ltd.

Capital Cost NAV % Change from ($ mln) ($/share) Base Case 135.6 2.87 N/A 0.0 3.14 9% 100.0 3.01 5% 50.0 3.21 12%

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Trevali Mining Corporation

Glencores Recent Market Activity

Glencores recent market activity paints a bullish picture for commodities generally, and zinc specifically (refer to Exhibit 2). Exhibit 2: Glencores Recent Market Activity
Date Feb-12 Company Volcan Transaction Commodity Details Type Offtake Zinc Agreed to buy zinc concentrates from Peruvian miner Volcan (VOLCABC1-VL) for zero treatment charges, and instead elected for a price participation arrangement whereby Glencore will share in 25% of the profit from increases in the price of zinc. Merger Equity Various Zinc Agreed to buy the remaining 66% stake of Xstrata that Glencore didn't already own. Announced it will purchase a 50.04% interest in Rosh Pinah Zinc Corp. Ltd., a private zinc mining company in Namibia from Exxaro Base Metals and Industrial Holdings Ltd. (EXX-JO), and a further 30.04% from other shareholders, for a total of 80.08%. The Rosh Pinah Employee Empowerment Participation Scheme Trust holds the remaining 19.92%. Rosh Pinah operates an underground zinc-lead mine in southwestern Namibia with zinc concentrate production of 95,000 tonnes/year.

Feb-12 Dec-11

Xstrata Rosh Pinah Zinc Corp.

Dec-11

Umcebo Mining Ltd.

Dec-11

Oct-11

Purchased a 43.66% equity interest in Umcebo Mining Ltd., a private South African coal mining business. Umcebo has three thermal coal mines in operation and a stand-alone wash plant, with annual production of 7.2 million tonnes. PolyMet Equity CopperIncreased its equity stake in PolyMet Mining Corp. (POM-TSX) to 24.1% from ~16.4% Mining Corp. Nickel via a private placement. Through oustanding convertible debentures, warrants, and common share purchase agreements, Glencore can increase its stake to 35.1%. PolyMet owns the NorthMet copper-nickel-precious metals ore body and the large Erie Plant processing facility in the Mesabi Range mining district in northeastern Minnesota. Ironbark Convertible Zinc, Other Entered into a US$50 million convertible funding facility with Ironbark Zinc Ltd. (IBGZinc Debt Base Metals AU) to help fund Ironbark's growth acquisition strategy. Glencore also entered into an agreement for up to 55% of the production of concentrates from Ironbark's Citronen project, one of the world's largest undeveloped zinc deposits in northern Greenland. Glencore had an existing 12% equity interest in the company. Minara Resources Acquisition Nickel Acquired the remaining 27% of Minara Resources that Glencore did not already own. Minara operates the Murrin Murrin nickel-cobalt project in Western Australia, one of the world's largest and lowest cost nickel mines.

Equity

Coal

Oct-11

Source: Raymond James Ltd.

Changes to Our Precious Metals Price Deck

Our Precious Metals team made revisions to our near- to medium-term gold and silver price assumptions on February 22, 2012. Refer to Exhibit 3 or the Industry Comment entitled Precious Metals: Fourth Quarter Preview & Reviewing Our Price Deck for further details. Exhibit 3: Raymond James Ltd. Precious Metals Price Deck

Source: Raymond James Ltd.

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Net Asset Value Estimate

The details of our NAV/share estimate of C$2.87 (previously C$2.91) for Trevali Mining are shown in Exhibit 4. We have updated our model to account for the equity financing with Glencore and recent changes to our precious metals prices.

Exhibit 4: Net Asset Value for Trevali Mining

Trevali Mining Corp. Owners hi p US$ (ml n) US$/s hr Va l ua ti on Ba s i s Projects Sa nta nder 100.0% 199.1 1.03 NPV @ 8% Rea l FY End 2012 Ha l fmi l e Tol l i ng 100.0% 13.1 0.07 NPV @ 8% Rea l FY End 2012 Ha l fmi l e/Stra tma t 100.0% 312.5 1.62 NPV @ 8% Rea l FY End 2012 Ti ngo Hydroel ectri c Pl a nt 100.0% 32.9 0.17 NPV @ 8% Rea l FY End 2012 Hua mpa r 100.0% 3.0 0.02 As s et a cqui s i ti on cos t Rutta n 100.0% 5.3 0.03 Ba l a nce s heet a s a t Q3 10A Expl ora ti on 100.0% 50.0 0.26 Other Assets Ca s h a nd Ma rketa bl e Securi ti es 3.5 0.02 Ba l a nce s heet a s a t Q4 12E Worki ng Ca p net of Ca s h a nd ST Debt (3.8) -0.02 Ba l a nce s heet a s a t Q4 12E Opti ons 19.4 0.10 va ri ous expi ry da tes Debt and Obligations Short Term Debt (0.0) -0.00 Ba l a nce s heet a s a t Q4 12E Long-term Debt (3.2) -0.02 Ba l a nce s heet a s a t Q4 12E Corpora te SG&A (75.0) -0.39 DCF @ 8% Rea l FY-12E Deferred Ta xes (4.0) -0.02 Ba l a nce s heet a s a t Q4 12E Provi s i on for Conti ngenci es 0.00 NET ASSET VALUE 552.6 $2.87 C$2.87 Ful l y Di l uted Sha res Outs ta ndi ng 192,544 Ba s i c Sha res Outs ta ndi ng 160,840 Copper: '12E=US$3.69/l b, '13E=US$4.25/l b, '14E=US$4.25/l b, '15E=US$4.00/l b, '16E=US$3.50/l b, L-T=US$2.75/l b Lea d: '12E=US$1.04/l b, '13E=US$1.20/l b, '14E=US$1.25/l b, '15E=US$1.25/l b, '16E=US$1.10/l b, L-T=US$0.95/l b Zi nc: '12E=US$0.99/l b, '13E=US$1.18/l b, '14E=US$1.25/l b, '15E=US$1.30/l b, '16E=US$1.20/l b, L-T=US$1.10/l b Si l ver: '12E=US$33.75/oz, '13E=US$34.75/oz, '14E=US$32.00/oz, '15E=US$28.30/oz, '16E=US$26.50/oz, L-T=US$19.50/oz Gol d: '12E=US$1,710/oz, '13E=US$1,760/oz, '14E=US$1,700/oz, '15E=US$1,500/oz, '16E=US$1,400/oz, L-T=US$1,200/oz

Source: Raymond James Ltd.

The breakdown of the changes to our model with respect to their impact our NAV estimate is shown in Exhibit 5. Exhibit 5: Net Asset Value Change Breakdown
Previous NAV Equity Raise / Share Dilution Gold / Silver Price Changes New NAV
Source: Raymond James Ltd.

NAV C$ 2.91 2.82 2.96 $2.87

Impact C$ -0.09 0.05 $0.04

Impact % -3% 2% -1%

Company Citations Company Name Glencore International Plc PolyMet Mining Corp. Xstrata

Ticker GLEN POM XTA

Exchange LSE TSX LSE

Currency

Closing Price

RJ Rating NC NC NC

RJ Entity

Notes: Prices are as of the most recent close on the indicated exchange and may not be in US$. See Disclosure section for rating definitions. Stocks that do not trade on a U.S. national exchange may not be approved for sale in all U.S. states. NC=not covered.

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Trevali Mining Corporation

Important Investor Disclosures

Raymond James & Associates (RJA) is a FINRA member firm and is responsible for the preparation and distribution of research created in the United States. Raymond James & Associates is located at The Raymond James Financial Center, 880 Carillon Parkway, St. Petersburg, FL 33716, (727) 567-1000. Non-U.S. affiliates, which are not FINRA member firms, include the following entities which are responsible for the creation and distribution of research in their respective areas; In Canada, Raymond James Ltd., Suite 2200, 925 West Georgia Street, Vancouver, BC V6C 3L2, (604) 659-8200; In Latin America, Raymond James Latin America, Ruta 8, km 17, 500, 91600 Montevideo, Uruguay, 00598 2 518 2033; In Europe, Raymond James European Equities, 40, rue La Boetie, 75008, Paris, France, +33 1 45 61 64 90. This document is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of or located in any locality, state, country, or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The securities discussed in this document may not be eligible for sale in some jurisdictions. This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation nor does it take into account the particular investment objectives, financial situations, or needs of individual clients. Information in this report should not be construed as advice designed to meet the individual objectives of any particular investor. Investors should consider this report as only a single factor in making their investment decision. Consultation with your investment advisor is recommended. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. The information provided is as of the date above and subject to change, and it should not be deemed a recommendation to buy or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. Persons within the Raymond James family of companies may have information that is not available to the contributors of the information contained in this publication. Raymond James, including affiliates and employees, may execute transactions in the securities listed in this publication that may not be consistent with the ratings appearing in this publication. With respect to materials prepared by Raymond James Ltd. (RJL), all expressions of opinion reflect the judgment of the Research Department of RJL, or its affiliates, at this date and are subject to change. RJL may perform investment banking or other services for, or solicit investment banking business from, any company mentioned in this document. All Raymond James Ltd. research reports are distributed electronically and are available to clients at the same time via the firms website (http://www.raymondjames.ca). Immediately upon being posted to the firms website, the research reports are then distributed electronically to clients via email upon request and to clients with access to Bloomberg (home page: RJLC), First Call Research Direct and Reuters. Selected research reports are also printed and mailed at the same time to clients upon request. Requests for Raymond James Ltd. research may be made by contacting the Raymond James Product Group during market hours at (604) 659-8000. In the event that this is a compendium report (i.e., covers 6 or more subject companies), Raymond James Ltd. may choose to provide specific disclosures for the subject companies by reference. To access these disclosures, clients should refer to: http://www.raymondjames.ca (click on Equity Capital Markets / Equity Research / Research Disclosures) or call toll-free at 1-800-667-2899.

Analyst Information
Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analysts efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers. Analyst Stock Holdings: Effective September 2002, Raymond James equity research analysts and associates or members of their households are forbidden from investing in securities of companies covered by them. Analysts and associates are

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permitted to hold long positions in the securities of companies they cover which were in place prior to September 2002 but are only permitted to sell those positions five days after the rating has been lowered to Underperform. The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

Ratings and Definitions

Raymond James Ltd. (Canada) definitions Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six months. Outperform (MO2) The stock is expected to appreciate and outperform the S&P/TSX Composite Index over the next twelve months. Market Perform (MP3) The stock is expected to perform generally in line with the S&P/TSX Composite Index over the next twelve months and is potentially a source of funds for more highly rated securities. Underperform (MU4) The stock is expected to underperform the S&P/TSX Composite Index or its sector over the next six to twelve months and should be sold. Raymond James & Associates (U.S.) definitions Strong Buy (SB1) Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next six to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at least 15% is expected to be realized over the next 12 months. Outperform (MO2) Expected to appreciate and outperform the S&P 500 over the next 12-18 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, an Outperform rating is used for securities where we are comfortable with the relative safety of the dividend and expect a total return modestly exceeding the dividend yield over the next 12-18 months. Market Perform (MP3) Expected to perform generally in line with the S&P 500 over the next 12 months. Underperform (MU4) Expected to underperform the S&P 500 or its sector over the next six to 12 months and should be sold. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. Raymond James Latin American rating definitions Strong Buy (SB1) Expected to appreciate and produce a total return of at least 25.0% over the next twelve months. Outperform (MO2) Expected to appreciate and produce a total return of between 15.0% and 25.0% over the next twelve months. Market Perform (MP3) Expected to perform in line with the underlying country index. Underperform (MU4) Expected to underperform the underlying country index. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. In transacting in any security, investors should be aware that other securities in the Raymond James research coverage universe might carry a higher or lower rating. Investors should feel free to contact their Financial Advisor to discuss the merits of other available investments. Raymond James European Equities rating definitions Strong Buy (1) Expected to appreciate, produce a total return of at least 15%, and outperform the Stoxx 600 over the next 6 to 12 months. Outperform (2) Expected to appreciate and outperform the Stoxx 600 over the next 12 months. Market Perform (3) Expected to perform generally in line with the Stoxx 600 over the next 12 months. Underperform (4) Expected to underperform the Stoxx 600 or its sector over the next 6 to 12 months. Suitability Categories (SR) For stocks rated by Raymond James & Associates only, the following Suitability Categories provide an assessment of potential risk factors for investors. Suitability ratings are not assigned to stocks rated Underperform (Sell). Projected 12month price targets are assigned only to stocks rated Strong Buy or Outperform. Total Return (TR) Lower risk equities possessing dividend yields above that of the S&P 500 and greater stability of principal.

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Trevali Mining Corporation

Growth (G) Low to average risk equities with sound financials, more consistent earnings growth, possibly a small dividend, and the potential for long-term price appreciation. Aggressive Growth (AG) Medium or higher risk equities of companies in fast growing and competitive industries, with less predictable earnings and acceptable, but possibly more leveraged balance sheets. High Risk (HR) Companies with less predictable earnings (or losses), rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and risk of principal. Venture Risk (VR) Companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated with success, and a substantial risk of principal.

Rating Distributions
Coverage Universe Rating Distribution RJL Strong Buy and Outperform (Buy) Market Perform (Hold) Underperform (Sell) 72% 28% 1% RJA 56% 38% 6% RJ LatAm 38% 56% 7% Investment Banking Distribution RJL 41% 29% 0% RJA 13% 5% 4% RJ LatAm 15% 3% 0%

Raymond James Relationship Disclosures

Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months. Company Name Trevali Mining Corporation Disclosure Raymond James Ltd - within the last 12 months, Trevali Mining Corporation has paid for all or a material portion of the travel costs associated with a site visit by the analyst and/or associate. Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to Trevali Mining Corporation. Raymond James Ltd. has provided investment banking services within the last 12 months with respect to Trevali Mining Corporation. Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to Trevali Mining Corporation. Raymond Lames Ltd - the analyst and/or associate has viewed the material operations of Trevali Mining Corporation.

Stock Charts, Target Prices, and Valuation Methodologies

Valuation Methodology: The Raymond James methodology for assigning ratings and target prices includes a number of qualitative and quantitative factors including an assessment of industry size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition, and expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry- or companyspecific occurrences. Target Prices: The information below indicates our target price and rating changes for TV stock over the past three years.

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Update Date

Closing Price

Target Price 2.05 1.95 2.25 2.35 2.40

M $2.40 O2 $2.60 $2.40 $2.20 $2.00 $1.80

M $2.35 O2 M $2.25 O2

M $1.95 O2

M $2.05 O2

Security P rice (C$)

$1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 O ct-12-09 O ct-11-10 Feb-01-10 Feb-25-11 O ct-20-11 Feb-02-12 Mar-02-09 Mar-30-09 Mar-01-10 Mar-29-10 May-25-09 May-24-10 Mar-25-11 May-20-11 Nov-09-09 Dec-07-09 Nov-08-10 Dec-04-10 Nov-15-11 Dec-14-11 Feb-28-12 A pr-27-09 A pr-26-10 A ug-17-09 S ep-14-09 A ug-16-10 S ep-13-10 A pr-22-11 A ug-02-11 A ug-27-11 S ep-23-11 Ju n-22-09 Ja n-04-10 Ju n-21-10 Ja n-01-11 Ja n-28-11 Ju n-11-11 Ja n-06-12 Ju l-20-09 Ju l-19-10 Ju l-07-11

Jan-31-12 Nov-11-11 Aug-30-11 Aug-12-11 May-13-11

1.19 0.86 1.40 1.35 1.76

Analyst Recommendations & 12 Month SB1: Strong Buy MO2: MP3: Market Perform MU4: NR : Not Rated R:

Price Objective Outperform Underperform Restricted

D ate: February 29 2012 P rice C overage Suspended R ating C hange Target P rice and R ating C hange Target P rice C hange Split Adjustm ent

Valuation Methodology: Our target price is based on a multiple applied to our NAV/share, and takes into account the risk and liquidity-adjusted historic producer multiples.

Risk Factors
General Risk Factors: Following are some general risk factors that pertain to the projected target prices included on Raymond James research: (1) Industry fundamentals with respect to customer demand or product / service pricing could change and adversely impact expected revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes toward the sector or this stock; (3) Unforeseen developments with respect to the management, financial condition or accounting policies or practices could alter the prospective valuation. Risks - Trevali Mining Corporation Mining companies are subject to a range of risks, including, but not limited to: environmental risk, political risk, operational risk, financial risk, hedging risk, commodity price fluctuation risk, and currency risk. Any difference between our metal price forecasts and realized metal prices will likely have an impact on our earnings and valuation estimates for the mining companies in our research coverage universe. The operation of mines, and mills is complex and is exposed to a number of risks, most of which are beyond the companys control. These include: environmental compliance issues; personal accidents; metallurgical/other processing problems; unexpected rock formations; ground or slope failures; flooding or fires; earthquakes; rock bursts; equipment failures; consultant errors and, interruption due to inclement, weather conditions, road closures, and/or local protests. Other risks include, but are not limited to: uncertainties surrounding reclamation costs; aging equipment and facilities which could lead to increased costs; strikes; and, transportation disruptions. Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available for Raymond James at rjcapitalmarkets.com/SearchForDisclosures_main.asp and for Raymond James Limited at www.raymondjames.ca/researchdisclosures.

International Disclosures
For clients in the United States: Investing in securities of issuers organized outside of the U.S., including ADRs, may entail certain risks. The securities of non-U.S. issuers may not be registered with, nor be subject to the reporting requirements of, the U.S. Securities and Exchange Commission. There may be limited information available on such securities. Investors who have received this report may be prohibited in certain states or other jurisdictions from purchasing the securities mentioned in this report. Please ask your Financial Advisor for additional details.

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Trevali Mining Corporation (TV) 3 yr. Stock Performance

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Trevali Mining Corporation

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