BUILDING A WORLD LEADING PRECIOUS METALS MINING COMPANY www.fortunasilver.com August 2016
Cautionary Statement on Forward Looking Statements / Non-GAAP Financial Measures This corporate presentation contains forward looking statements which constitute forward looking information within the meaning of applicable Canadian securities legislation and forward looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (collectively, Forward looking Statements ). All statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking Statements in this corporate presentation may include, without limitation, statements about the company s plans for its mines and mineral properties; the company s business strategy, plans and outlook; the merit of the company s mines and mineral properties; mineral resource and reserve estimates; timelines; the future financial or operating performance of the company; expenditures; approvals and other matters. Often, but not always, these Forward looking Statements can be identified by the use of words such as estimate, estimated, potential, open, future, assumed, projected, calculated, used, detailed, has been, gain, upgraded, expected, offset, limited, contained, reflecting, containing, conduct, increasing, remaining, to be, periodically, or statements that events, could or should occur or be achieved and similar expressions, including negative variations. Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; changes in prices for silver and other metals; technological and operational hazards in Fortuna s mining and mine development activities; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; the timing and availability of financing; governmental and other approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under Risk Factors in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to estimates of future production levels; expectations regarding mine production costs; expected trends in mineral prices and currency exchange rates; the accuracy of the company s current mineral resource and reserve estimates; that the company s activities will be in accordance with the company s public statements and stated goals; that there will be no material adverse change affecting the company or its properties; that all required approvals will be obtained; that there will be no significant disruptions affecting operations and such other assumptions as set out herein. Forward-looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward-looking Statements. Certain technical data in this presentation was taken from the technical report entitled, Technical Report Update on the Lindero Heap Leach Project Salta Province, Argentina, dated February 23, 2016, prepared by Carl E. Defilippi, SME Registered Member, Paul Tietz, C.P.G., Thomas L. Dyer, P.E. and David G. Thomas, P.Geo. (the Lindero Technical Report ), and is subject to the assumptions, qualifications and procedures defined therein. This corporate presentation also refers to non-gaap financial measures, such as cash cost per tonne of processed ore; cash cost per payable ounce of silver; total production cost per tonne; all-in sustaining cash cost; all-in cash cost; adjusted net (loss) income; operating cash flow per share before changes in working capital, income taxes, and interest income; and adjusted EBITDA. These measures do not have a standardized meaning or method of calculation, even though the descriptions of such measures may be similar. These performance measures have no meaning under International Financial Reporting Standards (IFRS) and therefore, amounts presented may not be comparable to similar data presented by other mining companies. Mr. Eric N. Chapman, M.Sc., Corporate Head of Technical Services, is the Qualified Person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Chapman is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328) and is responsible for ensuring that the information contained in this presentation is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines Inc., and has approved this disclosure. Dollar amounts expressed in US dollars, unless otherwise indicated. 2
Our Vision, Mission and Values Our Vision To be valued by our workers, the community and our shareholders as a world leading precious metals mining company. Our Mission To create value through the growth of reserves, metal production and the efficient operation of our assets with a commitment to safety, social and environmental responsibility. Our Values We value the health and safety of our workers We do not tolerate unsafe acts or conditions We value the environment We subscribe to the highest environmental standards We value our neighbours and other stakeholders We respect cultural diversity and work as a strategic partner towards the sustainable development of neighbouring communities We value the commitment to excellence We achieve high standards and best practices We value integrity We act according to our philosophy Caylloma Mine, Peru 3
Historic Highlights Foundations of a world leading precious metals mining company Caylloma Mine, Peru San Jose Mine, Mexico Trinidad North UG drilling, San Jose Mine Lindero Project, Argentina 2005 2007 2009 2011 2013 2016 Fortuna Silver Mines established Caylloma Mine: Restarted production San Jose Project: 100% interest acquired San Jose Mine: Construction and commissioning completed on-time and on-budget; commercial production declared at 1,000 tpd in September 2011 San Jose Mine: Trinidad North high-grade silver-gold discovery San Jose Mine: Expansion from 2,000 to 3,000 tpd commisioned in July 2016; on-time and under budget Caylloma Mine: Mill throughput expanded from 1,300 to 1,430 tpd in March 2016 2016 Proven and Probable Mineral Reserves of 82.5 Mt grading 0.63 g/t Au (1.68 Moz contained Au) Planned conventional open pit mining operation using truck and shovel mining methods Total LOM gold production of 1,149,000 ounces Note: Bullets for Lindero Project sourced from the Lindero technical report 4
7/24/15 8/03/15 8/11/15 8/19/15 8/27/15 9/04/15 9/15/15 9/23/15 10/01/15 10/09/15 10/19/15 10/27/15 11/04/15 11/12/15 11/20/15 12/01/15 12/09/15 12/17/15 12/28/15 1/06/16 1/14/16 1/25/16 2/02/16 2/10/16 2/19/16 2/29/16 3/08/16 3/16/16 3/24/16 4/04/16 4/12/16 4/20/16 4/28/16 5/06/16 5/16/16 5/24/16 6/02/16 6/10/16 6/20/16 6/28/16 7/07/16 7/15/16 7/25/16 Capital Structure and Share Performance Strong financial position to support organic growth strategy Strong Financial Position $95.9 M in cash (end Q1 2016) $40 M term loan due 2019 $20.0 M undrawn credit facility No hedging Share Structure (as of 28JUL16) Outstanding: 145.3 million Fully diluted: 148.4 million Exchanges NYSE: FSM TSX: FVI 250% 200% 150% 100% 50% 0% Relative Performance of FVI.T (24JUL15 27JUL16) FVI-TSE XAU-USA SLVR-FDS 216% 114% 36% -50% Source: FactSet 5
Acquisition of Goldrock Mines Corp. Combined Core Assets Production Increasing silver and gold production Low cost silver mines 2016E cash cost/t: Caylloma Mine = $79.4/t San Jose Mine = $57.4/t 2016E AISC (1) : Caylloma Mine = $12.5/oz Ag San Jose Mine = $9.1/oz Ag Consolidated = $11.1/oz Ag Lindero Project, Argentina (2) LOM annual production (years 1 9) = 108 koz Au LOM AISC = $715/oz Au Notes: 1. AISC = All-in sustaining cash cost is net of by-product credits for gold, lead and zinc 2. Lindero Technical Report Corporate Office Vancouver, Canada MEXICO SAN JOSE MINE Silver, Gold Oaxaca, Mexico Management Head Office Lima, Peru PERU CAYLLOMA MINE Silver, Lead, Zinc Arequipa, Peru ARGENTINA LINDERO PROJECT Gold Salta Province, Argentina Source: Fortuna company disclosure and Lindero technical report 6
Acquisition of Goldrock Mines Corp. Lindero Project, Argentina Lindero Project Primary Commodity Gold Operation 18,750 tpd open pit, heap leach Reserve Life 12 years Location Salta Province, Argentina Ownership 100 % Deposit Type Porphyry Gold LOM AISC $715/oz Au 127 139 119 88 Gold Production (koz) (1) 103 103 99 88 106 78 46 44 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Notes: 1. Production profile from the Lindero technical report Source: Company disclosure 7
Acquisition of Goldrock Mines Corp. Benefits to Fortuna shareholders Lindero 2016 Feasibility Study: 26% after-tax IRR NPV5% of US$152M ($1,200/oz gold) (1) Fortuna has identified upfront capital project opportunities which may marginally reduce the project IRR but improve the project's risk profile Pro Forma 2018 annual production of 19.7 million silver equivalent ounces including base metals (17% 3-year CAGR vs 2015) (2) Accretive to Fortuna on all key metrics including net asset value, reserves, resources and adjusted cash flow basis to Fortuna shareholders Increases precious metals equivalent reserve base by plus 200% (3) Property and district scale exploration opportunities Notes: 1. Lindero Technical Report 2. Assumes commissioning of the Lindero Mine in the second half of 2018 with gold annual production of 64koz and Fortuna production of 9.1 Moz silver, 51 koz gold production, 25 Mlb lead production, and 33 Mlb zinc production using $1,200/oz gold, $15.00/oz silver, $1.0/lb lead, $1.0/lb zinc for metal equivalency estimate 3. Ag Eq calculated using Au = $1,140/oz and Ag = $19/oz. Ag Eq does not include base metals. See slide 9 for basis. 8
Contained Metal - Ag Eq (Moz) Growing Reserve and Resource Base Strong growth in Reserves and Resources at San Jose and the addition of Lindero Reserve and Resource Base (1,2) Reserves by Metal (1) 160.0 140.0 120.0 100.0 Proven & Probable Reserves Measured & Indicated Resources Inferred Resources +200% Growth Stand-alone 28% 72% Silver Gold (as Ag Eq) 80.0 60.0 40.0 Pro Forma 24% Gold (as Ag Eq) Silver 20.0 76% 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Pro Forma Notes: 1. Ag Eq calculated using Au = $1,140/oz and Ag = $19/oz (60:1 Au:Ag ratio). Ag Eq does not include base metals 2. Resources and reserves reported as of year end for each year. See Appendix for back-up to each resource and reserve bar 9
Ag Eq Moz AISC ($/oz Ag) Consolidated Ag Eq Production and AISC Consolidated production rate of ~25 Moz Ag Eq by 2019 (first full year of production at Lindero) 30.0 Pro Forma Production Profile (Ag Eq Moz) Caylloma Mine, Peru San Jose Mine, Mexico Lindero Mine, Argentina AISC ($/oz Ag Eq) 30.0 25.0 $25.5 25.0 20.0 15.0 10.0 5.0 0.0 3.0 3.3 $21.1 3.6 $15.9 6.4 $14.8 7.2 3.9 4.5 5.0 Notes: 1. Estimates of production and Reserve and Resource Life for San Jose and Caylloma mines include Inferred Resources and are of a preliminary nature. While the Inferred Resources have received the same treatment as the Mineral Reserves with the exception of the application of a conversion factor to account for the uncertainty of upgrading and conversion, they are considered too geologically speculative to warrant the economic considerations applied to them that would enable their categorization as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not currently have demonstrated economic viability and there is no certainty that the preliminary economic assessment will be realized. There are no material changes in the economic assessments for each of the properties with respect to those reported in the most recent technical reports. 2. 2016E AISC estimated at metal prices of $1,200/oz for gold, $15.00 for silver, and $1,750/t for lead and zinc; 2017E 2020E AISC estimated at metal prices of $1,150/oz for gold, $15.00 for silver, and $2,200/t for lead and zinc. Brownfields exploration costs included in 2016E AISC but not in subsequent years. Historical AISC based on realized metal prices. 3. Ag Eq is calculated using gold, silver, lead and zinc 4. Refer to Appendix for quantity produced of each metal per annum and associated annual metal prices. Lindero production from the Lindero Technical Report $13.6 8.4 5.8 3.8 8.0 7.7 10.2 10.3 11.1 11.0 $12.3 $11.8 $10.8 $10.4 5.6 5.6 6.3 6.5 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E 20.0 15.0 10.0 5.0 10
Increasing Silver and Gold Production Combination of low cost organic growth and the Lindero Project Caylloma Mine, Peru San Jose Mine, Mexico Consolidated Silver Production (Moz) 6.6 6.6 7.1 8.0 4.6 3.9 7.2 7.3 7.9 4.4 4.9 5.9 2.5 1.9 2.5 0.5 0.4 0.8 1.7 1.9 2.0 2.0 2.1 2.2 1.7 1.2 1.5 1.8 1.4 2.3 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E 8.7 9.1 9.3 10.3 Pro Forma Gold Production (koz) Caylloma Mine, Peru San Jose Mine, Mexico Lindero Mine, Argentina 63.5 132.8 128.7 4.6 17.9 19.0 33.5 38.5 42.0 50.5 50.0 52.9 49.1 3.3 3.2 2.7 2.6 2.4 2.8 2.2 1.8 1.2 0.9 1.9 0.7 0.4 2.8 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E Note: Please refer to Note 1 on slide 10 11
Financial Snapshot Maximizing margins through management of cost and capital 161.0 137.4 Revenue ($ M) 174.0 154.7 172.9 62.2 Cash Flow from Operations ($ M) 40.9 59.8 30.6 49.2 2012 2013 2014 2015 2016E* 2012 2013 2014 2015 2016E* 20.5 0.5 3.7 2.3 7.0 7.0 14.5 14.5 1.1 1.0 2.8 2.5 1.1 0.6 4.8 6.8 AISCC ($/oz Ag) 11.1 1.0 2.4 1.7 3.3 4.7 3.6 2.7 Worker's participation, Royalties & Mining tax G & A Brownfields exploration Sustaining CAPEX Cash cost per oz Ag 73.1 44.5 EBITDA ($ M) 64.1 50.9 62.1 2013 2014 2015 2016E* 2012 2013 2014 2015 2016E* (*) 2016E: Au = $1,150/oz, Ag = $15.00/oz, Pb = $1,750/t and Zn = $1,750/t 12
Moz Caylloma Mine, Peru Snapshot Commodities Silver, zinc, lead Operation 1,430 tpd underground mine Reserve and Resource Life¹ 6 years Location Arequipa, Peru Ownership 100 % Deposit Type Intermediate sulphidation epithermal deposit 2016E AISCC*, net of by-products Au, Pb and Zn $12.5/oz Ag Caylloma Mine Silver Production 2.5 2.0 1.5 2.0 2.0 2.1 2.2 1.7 1.2 1.5 1.8 1.4 2.3 1.0 0.5 0.0 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E (1) Please refer to Note 1 on slide 10 13
Moz koz San Jose Mine, Mexico Snapshot Commodities Silver, gold Operation 3,000 tpd underground mine Reserve and Resource Life¹ 7.7 years Location Oaxaca, Mexico Ownership 100 % Deposit Type High-grade, low sulphidation epithermal deposit 2016E AISCC*, net of by-products Au $9.1/oz Ag San Jose Mine Silver Production Gold Production 8.0 7.0 6.0 5.0 4.0 4.4 4.9 5.9 7.2 7.3 7.9 8.0 60.0 50.0 40.0 30.0 38.5 33.5 42.0 50.5 50.0 52.9 49.1 3.0 2.0 1.0 0.0 0.5 1.9 2.5 20.0 10.0 0.0 4.6 17.9 19.0 (1) Please refer to Note 1 on slide 10 14
San Jose Mine, Mexico Miocene epithermal belt Southern Mexico and CA San Jose deposit centrally located in prolific Miocene Epithermal Belt World class or giant silver deposit* World class neighbors: Pachuca, Marlin and Escobal (*) Largest 10% of deposits based on metal content 15
San Jose Mine, Mexico Mineral concessions: 64,400 hectares 16
San Jose Mine, Mexico Mineral Reserves and Resources as of December 31, 2015 17
San Jose Mine, Mexico Trinidad North Discovery: Step-out drilling highlights - Bonanza Vein Characterized by high-grades and wide widths Contiguous with existing operation Mineralization open at depth and to the north 18
San Jose Mine, Mexico Brownfields Exploration: Trinidad North Extension (TNE) target Development of a 1,500 meter exploration cross-cut to be initiated in Q1 2016 Test extension of Trinidad North vein system where the Ocotlan Vein is projected to intersect the Trinidad vein system 19
San Jose Mine, Mexico Brownfields Exploration: Trinidad Central Deep Mineralization is open-todepth On-going exploration drilling from 1100 level Favorable intercepts support the potential for discovery of new resources 20
San Jose Mine, Mexico Brownfields Exploration: San Antonio - La Noria prospects Located approximately 2 kilometers west of San Jose Mine area North-trending epithermal vein systems similar to Trinidad Vein system San Antonio Vein system characterized by strong gold and silver values over strike length of 1.5 kilometers On-going exploration drilling to test San Antonio and La Noria vein system 21
Growth Strategy Focused on organic growth, disciplined M&A Maximize production, profitability and sustainable free cash flow generation Capitalize on Brownfields exploration and M&A opportunities Caylloma Mine mill throughput expanded to 1,430 tpd in March 2016 San Jose mill expanded from 2,000 to 3,000 tpd in July 2016 Trinidad North Discovery: Robust mineralization with potential for further resource expansion along strike and to depth Exploration potential for new discoveries on commanding land positions in Peru and Mexico Capitalize on acquisition of Goldrock Mines Corp. 22
Investment Highlights A leading silver mining company in the Americas PROVEN MINE DEVELOPERS AND STRONG OPERATORS Increasing Ag - Au PRODUCTION Commissioning of San Jose mill expansion to 3,000 tpd completed in July 2016 STRONG TREASURY $95.9 M in cash (end Q1 2016) $20.0 M untapped credit facility Sustainable free cash flow generation 2016 PRODUCTION GUIDANCE 7.0 Moz Ag koz 42.8 43.7 42.5 Au Mlbs Zn Mlbs Pb 23
Contact information: Carlos Baca Investor Relations Manager T: +51.1.616.6060, ext. 2 info@fortunasilver.com www.fortunasilver.com
Senior Management APPENDIX Jorge A. Ganoza President, CEO and Director Co-founder of Fortuna. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna team. Jorge also serves as Chairman of the Board of Atico Mining Corporation. Manuel Ruiz-Conejo Vice President, Operations Over 25 years experience in the execution of multi-million dollar mining projects and the implementation of community relations programs. Luis Dario Ganoza Chief Financial Officer / Chief Compliance Officer Over 14 years experience in the operations and financial management of public mining companies. Luis also serves as a Director of Atico Mining Corporation. Jose Pacora Vice President, Project Development Over 30 years experience in the mining industry working for both engineering firms and mining companies developing strong capabilities in engineering, construction and project management. 25
Board of Directors APPENDIX Simon Ridgway, Chairman of the Board Co-founder of Fortuna. Vancouver-based mining financier. Also founded Focus Ventures, Radius Gold, Mar West Resources and Northland Resources. Jorge A. Ganoza, President and CEO Co-founder of Fortuna. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna team. Jorge also serves as Chairman of the Board of Atico Mining Corporation. Robert R. Gilmore 30 years of experience working with resource companies and currently serves as Chairman of the Board for Eldorado Gold Corporation and as a Director for Layne Christensen Company. David Farrell President of Davisa Consulting, a private consulting firm working with junior to midtier global mining companies. Successfully negotiated, structured and closed more than $25 billion worth of M&A. Thomas Kelly 36 years of experience in mine production, minerals industry consulting and corporate management in various Latin American countries. Currently serves as COO of Atico Mining Corporation. Mario Szotlender Co-founder of Fortuna. Financier, businessman and Director of Radius Gold, Endeavour Silver, Magellan, Focus Ventures and Iron Creek. 26
Trinidad North Discovery Drilling Highlights APPENDIX Hole_Id From (m) To (m) Interval (m) ETW* (m) Ag (g/t) Au (g/t) Ag Eq** (g/t) SJOM-335 419.00 425.30 6.30 3.7 3,511 15.04 4,413 SJOM-337 314.90 324.35 9.45 6.5 498 3.03 680 SJOM-340 265.70 273.00 7.30 4.2 2,762 14.46 3,630 SJOM-343 272.00 286.95 14.95 10.2 1,190 8.45 1,697 SJOM-345 397.65 416.60 18.95 10.3 305 2.44 452 SJOM-346 SJOM-349A 293.50 303.50 10.00 6.5 1,503 7.76 1,969 340.50 368.00 27.50 18.8 600 4.20 852 320.00 330.20 10.20 4.5 929 4.87 1,221 367.00 375.45 8.45 4.1 1,808 13.21 2,601 SJOM-359 389.25 395.30 6.05 3.4 887 4.04 1,129 SJOM-364 462.05 467.30 5.25 3.0 2,573 10.77 3,219 SJOM-369 355.30 361.00 5.70 3.3 1,029 5.94 1,385 SJOM-378 391.15 398.30 7.15 4.9 467 1.93 583 SJOM-386 321.45 348.50 27.05 13.0 399 2.15 528 SJOM-390 413.85 421.90 8.05 4.0 636 2.93 812 SJOM-395 414.70 420.95 6.25 3.3 854 4.97 1,152 SJOM-401 including 339.95 374.90 34.95 18.0 426 2.62 583 343.05 352.00 8.95 4.6 1,282 8.11 1,768 Above average widths and grades Estimated true widths of up to 18.8 meters Ag Eq values range to 4.4 kg/t (*) ETW = Estimated true width (**) Ag Eq values calculated at Au:Ag ratio of 60 based on assumed metal prices of Au = $1,140/oz and Ag = $19/oz and metallurgical recoveries of 89 % for both gold and silver 27
San Jose Mine, Mexico NI 43 101 Reserves and Resources APPENDIX Classification Tonnes (000) Ag (g/t) Au (g/t) Contained Metal Ag (Moz) Au (koz) Proven & Probable Reserves 3,780 232 1.73 28.2 209.9 Measured & Indicated Resources 844 84 0.72 2.3 19.6 Inferred Resources 6,561 261 1.61 55.0 339.9 Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43-101: 1. Mineral Reserves and Mineral Resources are as defined by CIM Definition Standards on Mineral Resources and Mineral Reserves 2. Mineral Resources are exclusive of Mineral Reserves 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability 4. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources or Mineral Reserves at San Jose 5. Mineral Resources and Mineral Reserves are estimated as of June 30, 2015 and are reported as of December 31, 2015 taking into account productionrelated depletion for the period through December 31, 2015 6. Mineral Reserves for San Jose are estimated using a break-even cut-off grade of 137 Ag Eq g/t based on assumed metal prices of $19/oz Ag and $1,140/oz Au; estimated metallurgical recovery rates of 89% for Ag and 89% for Au and actual operating costs incurred in period June 2014 through May 2015. Mineral Resources are estimated at a Ag Eq cut-off grade of 100 g/t, with Ag Eq in g/t = Ag (g/t) + Au (g/t) * (($1,140/$19) * (89/89)) 7. Totals may not add due to rounding procedures 28
Caylloma Mine, Peru NI 43 101 Reserves and Resources APPENDIX Classification Tonnes (000) Ag (g/t) Au (g/t) Pb (%) Zn (%) Contained Metal Ag (Moz) Au (koz) Proven & Probable Reserves 1,979 121 0.30 2.83 3.55 7.7 19.3 Measured & Indicated Resources 1,851 84 0.32 1.13 2.12 5.0 19.3 Inferred Resources 3,392 132 0.59 2.20 3.30 14.3 64.7 Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43-101: 1. Mineral Reserves and Mineral Resources are as defined by CIM Definition Standards on Mineral Resources and Mineral Reserves 2. Mineral Resources are exclusive of Mineral Reserves 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability 4. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources or Mineral Reserves at Caylloma 5. Mineral Resources and Mineral Reserves are estimated as of June 30, 2015 and are reported as of December 31, 2015 taking into account productionrelated depletion for the period through December 31, 2015 6. Mineral Reserves for Caylloma are estimated using break-even cut-off grades based on estimated NSR values using assumed metal prices of $19/oz Ag, $1,140/oz Au, $2,150/t Pb and $2,300/t Zn; metallurgical recovery rates of 84.5% for Ag, 39.5% for Au, 92.6% for Pb and 89.9% for Zn and actual operating costs incurred in the period July 2014 through June 2015. Mineral Resources are reported based on NSR values using the same metal prices and metallurgical recovery rates as detailed for Mineral Reserves; and an NSR cut-off grade of $50/t for veins classified as wide (Animas, Animas NE, Nancy, San Cristobal) and $100/t for veins classified as narrow (all other veins) 7. Totals may not add due to rounding procedures 29
Lindero Project, Argentina NI 43 101 Reserves and Resources APPENDIX Classification Tonnes (000) Au (g/t) Contained Metal Au (koz) Proven & Probable Reserves 82,533 0.63 1,684 Measured & Indicated Resources 34,767 0.41 456 Inferred Resources 46,500 0.41 610 Mineral Reserve and Mineral Resource estimates prepared in accordance with NI 43-101: 1. Mineral Resources are exclusive of Mineral Reserves 2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability 3. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources or Mineral Reserves at Lindero 4. Mineral Resources and Mineral Reserves are reported as of October 23, 2015 5. Mineral Reserves are reported based on open pit mining within designed pit shells based on variable gold cut-off grades and gold recoveries by metallurgical type. Met type 1 cut-off 0.25 g Au/t, recovery 67.9%; Met type 2 cut-off 0.23 g Au/t, recovery 73.6%; Met type 3 cut-off 0.24 g Au/t, recovery 69.3%; and Met type 4 cut-off 0.27 g Au/t, recovery 61.7% 6. The cut-off grades and pit designs are considered appropriate for long term gold prices of $1,200/oz 7. Mineral Resources for Lindero are reported above a 0.2 g/t Au cut-off grade 8. Mineral Resources are reported with internal dilution appropriate for a 10 x 10 x 8 m selective mining unit. No external dilution is included. 9. Mineral Resources for Lindero are reported using a long-term gold price of $1,350/oz, mining costs at $1.80 per tonne of material, with total processing and process G&A costs of $5.72 per tonne of ore and an average process recovery of 70%. The refinery costs net of pay factor were estimated to be $10.21 per ounce gold 10. Mineral Resources for Lindero are reported within a conceptual pit shell using a slope angle (52 ) consistent with the geotechnical consultant s recommendations (Seegmiller, August 2012) 11. Totals may not add due to rounding procedures 12. Copper grades are not included as they do not report to the reserves 30