ESTIMATED RESERVES - 31 MARCH 2017 AL

AREA PLANNING
UM Corihuami

Presented to:

Av Santa Cruz N830, Of. 401

Miraflores, Lima 18, Peru
Phone: (511) 418-1266 - Annex 412

Made by:
Raul Quispe Apaza
Mining Engineer

Lima, April 2017

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 INDEX

1. ANTECEDENTES6.........................................................................................................................
2. CALCULATIONS RESERVAS7 .....................................................................................................
2.1. BOOKING-TAJO ESTIMATE Susan7 ..........................................................................................
2.1.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL7 ............................
2.1.2. CALCULATION OF LAW CORTE10 ..............................................................................
2.1.3. RESERVATIONS BY banks.11 ......................................................................................
2.2. RESERVES ESTIMATES SCREE-TAJO SLOPE12....................................................................
2.2.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL12 ..........................
2.2.2. CALCULATION OF LAW CORTE15 ..............................................................................
2.2.3. RESERVATIONS BY BANCOS16 ..................................................................................
2.3. BOOKING-TAJO ESTIMATE CAYHUA17 ...................................................................................
2.3.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL17 ..........................
2.3.2. CALCULATION OF LAW CORTE20 ..............................................................................
2.3.3. RESERVATIONS BY BANCOS21 ..................................................................................
2.4. RESERVES ESTIMATES Cayhua-TAJO NORTE22 ...................................................................
2.4.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL22 ..........................
2.4.2. CALCULATION OF LAW CORTE25 ..............................................................................
2.4.3. RESERVATIONS BY BANCOS26 ..................................................................................
2.5. RESERVES ESTIMATES TAJO-ENLARGEMENT DIANA27 ......................................................
2.5.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL27 ..........................
2.5.2. CALCULATION OF LAW CORTE30 ..............................................................................
2.5.3. RESERVATIONS BY BANCOS31 ..................................................................................
2.6. BOOKING-TAJO ESTIMATE LAURA32 ......................................................................................
2.6.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL32 ..........................
2.6.2. CALCULATION OF LAW CORTE35 ..............................................................................
2.6.3. RESERVATIONS BY BANCOS36 ..................................................................................
2.7. Estimation of reserves-TAJO A. SCREE SLOPE37.....................................................................
2.7.1. FACTORS CONSIDERED FOR THE DESIGN OF THE PIT FINAL37 ..........................
2.7.2. CALCULATION OF LAW CORTE40 ..............................................................................
2.7.3. RESERVATIONS BY BANCOS41 ..................................................................................
2.8. RESERVATIONS TOTALES42 ....................................................................................................
3. PLAN OF MINE-LOM42 .................................................................................................................
4. CONCLUSIONES44 .......................................................................................................................
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5. RECOMENDACIONES44 ...............................................................................................................

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 PICTURE

Picture 1-1 Tajos involved in estimating reserves and UM Corihuarmi6 ....................................................

Picture 2-1 Reservations Update cubed to 31 March 2017 pit Susan7 ......................................................
Picture 2-2 Pit design parameters Susan.7 ................................................................................................
Picture 2-3 Pit reserves banks Susan.11 ....................................................................................................
Picture 2-4 Reservations Update cubed to 31 March 2017 pit Scree Slope.12 ..........................................
Picture 2-5 Pit design parameters Scree Slope.12 .....................................................................................
Picture 2-6 Pit reserves banks Scree Slope16 ...........................................................................................
Picture 02.07 Reservations Update cubed to 31 March 2017 pit Cayhua17 ..................................................
Picture 02.08 Pit design parameters Cayhua.17 ............................................................................................
Picture 2-9 Pit reserves banks Cayhua21...................................................................................................
Picture 2-10 Reservations Update cubed to 31 March 2017 pit Cayhua22 ..................................................
Picture 11.02 Pit design parameters Cayhua Norte.22 ..................................................................................
Picture 2-12 Pit reserves banks Cayhua Norte.26 ........................................................................................
Picture 2-13 Act. Cubed reservation at March 31, 2017 Extension pit Diana.27 ..........................................
Picture 2-14 Pit design parameters Extension Diana27 ...............................................................................
Picture 2-15 Pit reserves banks Extension Diana31 .....................................................................................
Picture 2-16 Reservations Update cubed to 31 March 2017 pit Laura32 .....................................................
Picture 2-17 Pit design parameters Laura.32 ...............................................................................................
Picture 2-18 Reserves for banks Laura36 pit ................................................................................................
Picture 2-19 Act. Cubed reservation to 31 March 2017 pit A. Scree Slope.37 .............................................
Picture 2-20 Pit design parameters A. Scree Slope.37 .................................................................................
Picture 2-21 Pit reserves banks A. Scree Slope.41 ......................................................................................
Picture 2-22 Inventory reserves UM Corihuami to March 31 201742 ...........................................................
Picture 3-1 Reserves as of December 31, 2016 UM Corihuarmi42 ............................................................
Picture 3-2 LOM Plan from April 2017 to July 2020 UM Corihuarmi43 .......................................................

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 FIGURES

Figure 2-1 Pit geometry design Susan.8 .....................................................................................................

Figure 2-2 Susan pit design - View plant.8 ..................................................................................................
Figure 2-3 Section A - A'9 ...........................................................................................................................
Figure 2-4 Section B - B'.9 ..........................................................................................................................
Figure 2-5 Pit design geometry Scree Slope.12 ........................................................................................
Figure 2-6 Pit design Scree Slope - View Planta.13 ..................................................................................
Figure 02.07 Section A - A'13 .......................................................................................................................
Figure 02.08 Section B - B'.14 ......................................................................................................................
Figure 2-9 Section C - C'14 .......................................................................................................................
Figure 2-10 Pit geometry design Cayhua.17 ...........................................................................................
Figure 11.02 Cayha pit design - View Planta.18 ........................................................................................
Figure 2-12 Section A - A'18 ....................................................................................................................
Figure 2-13 Section B - B'.19 ...................................................................................................................
Figure 2-14 Pit design geometry Cayhua Norte.22 ..................................................................................
Figure 2-15 Cayha pit design - View Planta.23 ........................................................................................
Figure 2-16 Section A - A'23 ....................................................................................................................
Figure 2-17 Section B - B'.24 ...................................................................................................................
Figure 2-18 Pit design geometry Expansion Diana.27 .............................................................................
Figure 2-19 Large pit design Diana - View Planta.28 ..............................................................................
Figure 2-20 Section A - A'28 ....................................................................................................................
Figure 2-21 Section B - B'.29 ...................................................................................................................
Figure 2-22 Pit geometry design Laura.32...............................................................................................
Figure 2-23 Laura pit design - View Planta33 ..........................................................................................
Figure 2-24 Section A - A'33 ....................................................................................................................
Figure 2-25 Section B - B'.34 ...................................................................................................................
Figure 2-26 Pit design geometry A. Scree Slope.37 ................................................................................
Figure 2-27 A. pit design Scree Slope - View Planta38 ...........................................................................
Figure 2-28 Section A - A'38 ....................................................................................................................
Figure 2-29 Section B - B'.39 ...................................................................................................................

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 ESTIMATED RESERVES - 31 MARCH 2017 AL
UM Corihuami
1. BACKGROUND

Estimation of Mineral Reserves aims, know the quantity and quality of reserves of a mine or mineral
deposit. Simultaneously to define distribution, geometry and its economic value, to plan the type and level of
production and to estimate the useful time of the mining operation. Therefore this mineral must be
determined on a basis of mineral removable.

Reserves are the most valuable asset of any mining company and already, is the main financial
support of a mine, ensuring financing negotiations, credits, and others. Reserves are regulated based on
international market prices for metals and operating costs that determine the profitability of the mine.

This paper aims to make the estimation of reserves and make the mine plan based on the results of
examinations performed at the Corihuarmi. Already counting on the block model updated and interpolated
with the values of geochemistry, contemplating the corresponding restrictions, whose report is
PE_COR_Resource_Estimation_Corihuarmi_JL_Abr2017_Rev00, we proceeded to update the costs of
mining of ore and waste per pit, with its corresponding cost processing and administrative costs. To reserve
estimates took into account the following cuts:

Picture 1-1 Tajos involved in estimating reserves and UM Corihuarmi.

Tajos

Susan Tajo
Mining Scree Slope Tajo
Unit Tajo Cayhua
Corihuami
Tajo Norte Cayhua
Expansion Tajo Diana
Laura Tajo
Amp Tajo. scree Slope

The cuts shown in above table are optimized and which estimation and mining plan is performed.

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2. Reserve calculation

The calculation of reserves was conducted in order to determine the reserves updated with scans
performed at the end of 2016 and the first quarter of 2017, then it determine the reserves with which account
the UM Corihuarmi. With these reservations mining planning, which will give us results in the lifetimes of
Mina and construction requirements to give sustainability to the production of Ounces be held.

To achieve this objective has been used to date as of March 2017 31 topography, the block model
interpolated values Au, which are encoded with alterations, resource classification, density type of alteration
and ore bodies ( ore body). An estimate of reserves by pit is made, the factors considered for the design of
the final pit, calculation of the cut-off (cut off) and finally reserves by banks indicated.

After review of the data model block, which was estimated in the Data Analyst of Minesight, runs
optimization corresponding performed and support the MS-Economic Planner which determines the
optimum cone price of 1,100 US $ / Oz, then he made the pit design considering geomechanical parameters
of each Tajo.

2.1. TAJO-reserve estimate SUSAN

Table 2-1; summarizes the total numbers of reservations that were obtained at the conclusion of
this work cubing Susan pit whose figure is 18,697.51 Ounces of Au.

Picture 2-1 Update cubed reserves at March 31 2017 Susan pit.

mineral Law oz Dismount Total

Block MR
TM Au g ounce TM TM
/ TM s
SUSAN 2241996 0.259 18697.51 627.119 2869115 0.280

2.1.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman concerning geomechanical
geometry parameters shown in Table No. 2-2 and Figure No. 2-1 was considered.

Picture 2-2 Pit design parameters Susan.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 70 degree
Width bank 6.4 s
meters
Slope angle end Four. Five degree
Ramp width 10 s
meters
Ramp rate 10 %

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Figure 2-1 Pit design geometry Susan.

Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slopes, the results of optimization and design for the block Susan is determined is carried
Figures shown 2-2, 2-3 and 2-4:

T
O

B'

T
O

Figure 2-2 Susan pit design - top view.

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Figure 2-3 Section A - A '

Figure 2-4 Section B - B '.

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 2.1.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

CALCULATION OF CUT OFF - SUSAN TAJO Jan-17

ounces Troy => grams - Conversion 31.1035

COSTS $/ $ / Oz Au
Ton
Mina costs -

incremental Haulage 0.16

Plant Cost 1.32 -

Capex Ampliacion Pad 0.60

Administration cost 1.12 -

Minandex royalties 36.08

government royalties 12.03
Dore transportation and selling costs 6.60

Total cost ($ / ton) $ 3,204 -

RECOVERIES 75.29%

PRICE AU $ / Oz Au
Au Price $ 1100.0

LAW OF CUT $ / tn $ / Oz Au $ / gr Au
Base cost Minado $- $ 33.61
Processing Cost $ 2,079
Management Cost Net $ 1,125
Worth $ 1045.290
Sale price Maquila and $ 1,100.00
royalties $ 54.71

Cut off 0.127

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 2.1.3. RESERVATIONS BY BANKS

Table 2-3 shows the distribution of reserves by banks, clearing also shown, striping ratio (S / R) and
gold ounces cubed in the pit Susan.

Picture 2-3 Pit reserves banks Susan.

mineral Au law g / oz Dismount Total

Bank MR
TM TM oun TM TM
4870 - ces 3,428 3,428
4865 3,219 0.153 15.78 13,469 16,688 4.18
4860 6,056 0.160 31.19 22.976 29,032 3.79
4855 7,561 0.185 44.85 29.965 37.526 3.96
4850 9,322 0.200 59.91 34.391 43.713 3.69
4845 16.264 0.214 111.64 26.121 42,385 1.61
4840 57.754 0.291 540.15 31,912 89.666 0.55
4835 66.848 0.294 632.08 28.310 95.158 0.42
4830 100.847 0.257 834.24 49.929 150.776 0.5
4825 225.708 0.239 1,733.62 76.822 302.530 0.34
4820 411.371 0.248 3,283.98 137.570 548.941 0.33
4815 336.497 0.258 2,790.12 55,732 392.229 0.17
4810 340.270 0.266 2,910.02 55.612 395.882 0.16
4805 240.698 0.267 2,066.98 11,980 252.678 0.05
4800 223.601 0.257 1,850.43 15,458 239.059 0.07
4795 93.866 0.233 701.65 16.941 110.807 0.18
4790 63.204 0.306 622.42 10,824 74.028 0.17
4785 29,168 0.415 389.18 4,353 33.521 0.15
4780 9,742 0.253 79.24 1,326 11,068 0.14
TOTAL 2241996 0.259 18697.51 627.119 2869115 0.28

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 2.2. RESERVES ESTIMATES SLOPE-TAJO SCREE

Table 2-4; summarizes the total reserve figures were obtained on completion of this work cubing pit
scree Slope whose figure is 2481.51 Ounces of Au.

Picture 2-4 Reservations Update cubed to March 2017 Scree Slope pit 31.

mineral Law Au g / oz Dismount Total

Block MR
TM TM ounce TM TM
s
SCREE SLOPE 256.723 0.301 2,481.51 194.764 451.487 0.759

2.2.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman, geomechanical parameters
concerning the geometry shown in Table 2-5 and Figure 2-5 are considered.

Picture 2-5 Pit design parameters Scree Slope.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 65 degree
Banco width 7 s
meters
Final slope angle 37 degree
Ramp width 10 s
meters
Ramp gradient 10 %

Figure 2-5 Pit design geometry Scree Slope.

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 Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slopes, the results of optimization and design for the block scree Slope is determined is
performed is the figures 2-6, 2-7, 2-8 and 2-9:

Figure 2-6 Scree Slope pit design - top view.

Figure 02.07 Section A - A '

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Figure 02.08 Section B - B '.

Figure 2-9 Section C - C '.

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 2.2.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

Troy Ounces => grams - Conversion 31.1035

COSTS $/ $ / Oz Au
Ton
Mina costs -
incremental Haulage 0.19
Plant Cost 1.32 -
Capex Ampliacion Pad 0.60
Administration cost 1.12 -

Minandex royalties 36.08

government royalties 12.03
Dore transportation and selling costs 6.60

Total cost ($ / ton) $ 3,236 -

RECOVERIES 86.41%

PRICE AU $ / Oz Au
Au Price $ 1100.0

COURT ACT $ / Ton $ / Oz Au $ / Gr Au

Base cost Minado $ - $ 33.61
Processing Fee $ 2,111
Administration cost $ 1,125
Net worth Sale $ 1045.290
price Maquila and $ 1,100.00
royalties $ 54.71

Cut off 0.111

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 2.2.3. RESERVATIONS BY BANKS

Table 2-6 shows the distribution of reserves by banks, clearing also shown, striping ratio (S / R) and
gold ounces cubed in scree pit Slope.

Picture 2-6 Pit reserves banks Scree Slope.

mineral Law Au g oz Dismount Total

Bank M
TM / TM ounce TM TM R
4800 s fifty fifty
4795 1,121 0.502 18.10 2,514 3,635 2.24
4790 5,885 0.514 97.26 6,006 11,891 1.02
4785 6,037 0.273 53.05 4,189 10,226 0.69
4780 15,113 0.272 132.25 6,474 21,588 0.43
4775 12,711 0260 106.18 9,421 22.131 0.74
4770 18,755 0.267 161.20 14,189 32.944 0.76
4765 21,016 0.534 360.49 12,580 33,597 0.60
4760 19.264 0.386 239.36 11,920 31,184 0.62
4755 15,508 0.376 187.59 7,263 22,771 0.47
4750 10,880 0.183 64.01 7,231 18,111 0.66
4745 14,951 0.167 80.12 6,078 21,029 0.41
4740 14.943 0.186 89.34 7,118 22,062 0.48
4735 10,550 0.190 64.52 4,985 15,535 0.47
4730 14,650 0.251 118.19 8,413 23.063 0.57
4725 16,934 0.326 177.48 8,738 25.672 0.52
4720 16.081 0.288 148.72 10,156 26.237 0.63
4715 10,964 0.211 74.49 6,978 17.942 0.64
4710 2,176 0.261 18.24 4,712 6,888 2.17
4705 63 0.193 0.39 851 914 13.44
4700 1,057 0.453 15.38 2,898 3,955 2.74
4695 4,398 0.385 54.51 14.454 18.852 3.29
4690 21,102 0.273 184.90 25.693 46.795 1.22
4685 2,562 0.434 35.73 11,854 14.416 4.63
TOTAL 256.723 0.301 2,481.51 194.764 451.487 0.76

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 2.3. RESERVES ESTIMATES Cayhua-TAJO

Table 2-7; summarizes the total reserve figures were obtained on completion of this work cubing
Cayhua pit whose figure is 21656.62 Ounces of Au.

Picture 02.07 Reservations Update cubed to March 31 2017 Cayhua pit.

mineral Law Au g / oz Dismount Total

Block MR
TM TM ounce TM TM
s
Cayhua 2549617 0.264 21656.62 1265085 3814702 0.496

2.3.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman, geomechanical parameters
concerning the geometry shown in Table 2-8 and Figure 2-10 are considered.

Picture 02.08 Pit design parameters Cayhua.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 70 degree
Width bank 6.4 s
meters
Slope angle end Four. Five degree
Ramp width 10 s
meters
Ramp rate 10 %

Figure 2-10 Geometry Cayhua pit design.

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 Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slope is determined is performed, the results of optimization and design for the block Cayhua
Figures shown 2-11 2-12 2-13 and 2-14:

Figure 11.02 Cayha pit design - top view.

Figure 2-12 Section A - A '

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Figure 2-13 Section B - B '.

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 2.3.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

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 2.3.3. RESERVATIONS BY BANKS

Table 2-9 shows the distribution of reserves by banks, clearing also shown, striping ratio (S / R) and
gold ounces cubed in Cayhua pit.

Picture 2-9 Pit reserves banks Cayhua.

mineral Law Au g / oz Dismount Total

Bank MR
TM TM oun TM TM
4905 2,025 0.188 ces
12.27 6,902 8,927 3.41
4900 15,348 0.185 91.49 33.929 49.277 2.21
4895 4,356 0.173 24.16 21,129 25.485 4.85
4890 5,259 0.180 30.38 25.808 31.067 4.91
4885 28.568 0.187 171.39 57.106 85.674 2.00
4880 54.245 0.196 342.00 63.416 117.661 1.17
4875 71.098 0.209 477.71 63.061 134.159 0.89
4870 83.343 0.242 647.48 81.496 164.839 0.98
4865 80.265 0.282 728.34 56.130 136.395 0.70
4860 96.817 0.284 882.71 69.798 166.615 0.72
4855 171.720 0.278 1,533.61 81.298 253.018 0.47
4850 267.053 0.283 2,434.12 78.776 345.829 0.29
4845 255.485 0.292 2,399.16 63,350 318.835 0.25
4840 244.379 0.276 2,170.14 103.924 348.303 0.43
4835 207.436 0.276 1,838.49 53.779 261.215 0.26
4830 198.089 0.240 1,529.99 80.232 278.321 0.41
4825 153.049 0.227 1,116.05 49.793 202.842 0.33
4820 150.422 0.210 1,014.14 65.893 216.315 0.44
4815 117.628 0.208 785.28 56,367 173.995 0.48
4810 109.130 0.294 1,032.71 51.491 160.621 0.47
4805 84.207 0.336 909.78 26.258 110.465 0.31
4800 56.777 0.363 662.08 23.649 80.426 0.42
4795 46.379 0.282 420.94 22.454 68.833 0.48
4790 28.656 0.286 263.68 22.417 51.073 0.78
4785 9,583 0.232 71.45 3,952 13,535 0.41
4780 8,300 0.251 67.09 2,677 10,977 0.32
TOTAL 2549617 0.264 21.657 1265085 3814702 0.50

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 2.4. RESERVES ESTIMATES Cayhua NORTH-TAJO

Table 2-10; summarizes the total numbers of reservations that were obtained at the conclusion of this
work cubing Norte pit Cayhua whose figure is 21,910.19 Ounces of Au.

Picture 2-10 Reservations Update cubed to March 31 2017 Cayhua pit.

mineral Law Au g / oz Dismount Total

Block MR
TM TM ounce TM TM
s
NORTH Cayhua 1531792 0.445 21910.19 1721581 3253373 1,124

2.4.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman, geomechanical parameters
concerning the geometry shown in Table 2-11 and Figure 2-14 are considered.

Picture 11.02 Pit design parameters Cayhua North.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 70 degree
Width bank 6.4 s
meters
Slope angle end Four. Five degree
Ramp width 10 s
meters
Ramp rate 10 %

Figure 2-14 Design geometry Cayhua Norte pit.

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 Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slopes, the results of optimization and design for the block Cayhua North is determined is
performed is the figures 2-15, 2-16 and 2-17.

Figure 2-15 Cayha pit design - top view.

Figure 2-16 Section A - A '

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Figure 2-17 Section B - B '.

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 2.4.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

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 2.4.3. RESERVATIONS BY BANKS

Table 2-12, details the distribution of reserves by banks, clearing also shown, striping ratio (S / R)
and gold ounces cubed in North Cayhua pit.

Picture 2-12 Pit reserves banks Cayhua Norte.

mineral Law Au g oz Dismount Total

Bank MR
TM / TM ounce TM TM
4940 s 150 150
4935 2,971 2,971
4930 333 0.232 2.48 21.698 22.031 65.16
4925 4,439 0.176 25.05 28.743 33,182 6.48
4920 13.439 0.917 396.06 115.564 129.003 8.60
4915 47.592 0.843 1,289.99 162.130 209.722 3.41
4910 105.675 0.575 1,952.44 286.883 392.558 2.71
4905 137.633 0.531 2,349.61 227.407 365.040 1.65
4900 140.898 0.442 2,004.34 249.725 390.623 1.77
4895 130.576 0.454 1,905.00 148.148 278.724 1.13
4890 141.541 0.442 2,010.82 141.555 283.096 1.00
4885 120.368 0.423 1,638.19 80.118 200.486 0.67
4880 124.082 0.459 1,830.90 85.695 209.777 0.69
4875 107.040 0.503 1,729.33 33.737 140.777 0.32
4870 105.596 0.467 1,586.22 34.587 140.183 0.33
4865 69.153 0.338 751.48 14,311 83.464 0.21
4860 74.412 0.303 724.66 20.646 95.058 0.28
4855 67.991 0.281 613.63 13,593 81.584 0.20
4850 66.902 0.269 578.50 15,279 82.181 0.23
4845 37.395 0.219 263.08 13,791 51.186 0.37
4840 24.583 0.213 168.44 21.113 45.696 0.86
4835 6,900 0.226 50.19 2,068 8,968 0.30
4830 5,244 0.236 39.77 1,669 6,913 0.32
TOTAL 1531792 0.445 21.910 1721581 3253373 1.12

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 2.5. RESERVES ESTIMATES DIANA-TAJO ENLARGEMENT

Table 2-13; summarizes the total reserve figures were obtained on completion of this work cubing pit
zoom Diana whose figure is 7733.98 Ounces of Au.

Picture 2-13 Act. Cubed reserves to March 2017 Enlargement Diana pit 31.

mineral Law Au g / oz Dismount Total

Bloc MR
TM TM ounce TM TM
k
s
A. DIANA 603.507 0399 7,733.98 587.519 1191026 0.974

2.5.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman, geomechanical parameters
concerning the geometry shown in Table 2-14 and Figure 2-18 are considered.

Picture 2-14 Pit design parameters Extension Diana.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 70 degree
Width bank 6.4 s
meters
Slope angle end Four. Five degree
Ramp width 10 s
meters
Ramp rate 10 %

Figure 2-18 Pit design geometry Expansion Diana.

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 Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slopes, the results of optimization and design for the block zoom Diana is determined is
carried Figures shown 2-19 2-21 2-20 and:

Figure 2-19 Large pit design Diana - top view.

Figure 2-20 Section A - A '

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Figure 2-21 Section B - B '.

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 2.5.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

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 2.5.3. RESERVATIONS BY BANKS

Table 2-15 details the distribution of reserves by banks, clearing also shown, striping ratio (SR) and
cubed ounces of gold in the pit Enlargement Diana.

Picture 2-15 Pit reserves banks Extension Diana.

mineral Au law oz Dismount Total

Bank MR
TM g/ ounce TM TM
4855 TM s 171 171
4850 2,838 0.351 32.03 7,939 10,777 2.80
4845 14,435 0.385 178.82 18,711 33.146 1.30
4840 23.503 0.447 337.41 45.563 69.066 1.94
4835 21,810 0.509 357.20 38.954 60.764 1.79
4830 23.317 0.448 336.00 45.112 68.429 1.93
4825 20,697 0.451 300.31 36.326 57,023 1.76
4820 22.913 0.424 312.17 47.861 70.774 2.09
4815 13,953 0.246 110.19 26.065 40.018 1.87
4810 47.387 0.514 782.40 86.965 134.352 1.84
4805 51.255 0.493 811.61 69.338 120.593 1.35
4800 56.926 0.434 794.55 69.316 126.242 1.22
4795 48.616 0.469 733.45 22,176 70.792 0.46
4790 48.726 0.460 719.87 19.423 68.149 0.40
4785 43,780 0.457 643.78 12,241 56.021 0.28
4780 47.075 0.231 349.71 13,003 60.078 0.28
4775 40.522 0.247 322.25 6,409 46.931 0.16
4770 36.684 0.254 299.59 9,541 46.225 0.26
4765 21.737 0260 181.84 4,399 26.136 0.20
4760 17,333 0.235 130.80 8,006 25.339 0.46
TOTAL 603.507 0399 7,734 587.519 1191026 0.97

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 2.6. TAJO-reserve estimate LAURA

Table 2-16; summarizes the total numbers of reservations that were obtained at the conclusion of this
work cubing Laura pit whose figure is 9376.81 Ounces of Au.

Picture 2-16 Reservations Update cubed to March 31 2017 Laura pit.

mineral Law Au g / oz Dismount Total

Block MR
TM TM ounce TM TM
s
LAURA 1411458 0.207 9,376.81 457.539 1868997 0.324

2.6.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman, geomechanical parameters
concerning the geometry shown in Table 2-17 and Figure 2-22 are considered.

Picture 2-17 Pit design parameters Laura.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 70 degree
Width bank 6.4 s
meters
Slope angle end Four. Five degree
Ramp width 10 s
meters
Ramp rate 10 %

Figure 2-22 Pit design geometry Laura.

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 Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slope is determined is performed, the results of optimization and design for the block Laura
Figures shown 2-23, 2-24 and 2-25:

Figure 2-23 Laura pit design - top view.

Figure 2-24 Section A - A '

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Figure 2-25 Section B - B '.

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 2.6.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

Troy Ounces => grams - Conversion 31.1035

COSTS $/ $ / Oz Au
Ton
Mina costs -
incremental Haulage -
Plant Cost 1.32 -
Capex Ampliacion Pad 0.60
Administration cost 1.12 -

Minandex royalties 36.08

government royalties 12.03
Dore transportation and selling costs 6.60

Total cost ($ / ton) $ 3,046 -

RECOVERIES 80.00%

PRICE AU $ / Oz Au
Au Price $ 1100.0

COURT ACT $ / Ton $ / Oz Au $ / Gr Au

Base cost Minado $ - $ 33.61
Processing Fee $ 1,921
Administration cost $ 1,125
Net worth Sale $ 1045.290
price Maquila and $ 1,100.00
royalties $ 54.71

Cut off 0.113

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 2.6.3. RESERVATIONS BY BANKS

Table 2-18 details the distribution of reserves by banks, clearing also shown, striping ratio (SR) and
cubed ounces of gold in the pit Laura.

Picture 2-18 Pit reserves banks Laura.

Mineral Law Au g oz Dismount Total

Bank MR
TM / TM oun TM TM
4900 ces 584 584
4895 920 920
4890 3 0.147 0.01 1,607 1,610 535.67
4885 twenty-one 0.125 0.08 744 765 35.43
4880 372 0.141 1.68 2,460 2,832 6.61
4875 719 0.139 3.20 3,734 4,453 5.19
4870 4,138 0.176 23.39 6,212 10,350 1.50
4865 8,512 0.219 6004 3,048 11,560 0.36
4860 15.833 0.250 127.11 6,894 22.727 0.44
4855 17.788 0.249 142.50 6,353 24,141 0.36
4850 28.039 0.212 190.73 11,861 39,900 0.42
4845 32.932 0.197 208.37 13,126 46.058 0.40
4840 44.773 0.195 280.50 17.713 62.486 0.40
4835 51.239 0.201 330.30 15,213 66.452 0.30
4830 71.131 0.195 446.26 20.749 91.880 0.29
4825 90.912 0.192 560.40 29.757 120.669 0.33
4820 121.026 0.191 744.65 39.215 160.241 0.32
4815 121.586 0.196 764.36 27.851 149.437 0.23
4810 139.547 0.199 894.82 36.760 176.307 0.26
4805 140.719 0.212 957.38 42.631 183.350 0.30
4800 148.135 0.224 1,065.31 59.866 208.001 0.40
4795 132.319 0.220 935.76 45.736 178.055 0.35
4790 84.855 0.207 565.15 30.797 115.652 0.36
4785 63,170 0.213 432.80 15,783 78.953 0.25
4780 50.915 0.207 338.89 13,184 64.099 0.26
4775 17.837 0.222 127.08 2,135 19.972 0.12
4770 15,245 0.214 104.86 1,669 16.914 0.11
4765 5,701 0.219 40.06 480 6,181 0.08
4760 3,991 0.242 31.11 457 4,448 0.11
TOTAL 1411458 0.207 9,377 457.539 1868997 0.32

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 2.7. Estimation of reserves-TAJO A. SCREE SLOPE

Table 2-19; summarizes the total reserve figures were obtained on completion of this work cubing pit
A. scree Slope whose figure is 7408.75 Ounces of Au.

Picture 2-19 Act. Cubed reserves to March 2017 pit 31 A. Scree Slope.

mineral Law Au g / oz Dismount Total

Bloc MR
TM TM ounce TM TM
k
s
A. SCREE SLOPE 793.134 0.291 7,408.75 809.773 1602907 1,021

2.7.1. FACTORS CONSIDERED FOR FINAL DESIGN OF THE PIT

The optimum cone was determined by the method Lerchs - Grossman concerning geomechanical
geometry parameters shown in Table No. 2-20 and No. 2-26 Figure considered.

Picture 2-20 Pit design parameters A. Scree Slope.

Detail Cant. Und.

Bench height 10 meters
Operating slope angle 65 degree
Banco width 7 s
meters
Final slope angle 37 degree
Ramp width 10 s
meters
Ramp gradient 10 %

Figure 2-26 Pit design geometry A. Scree Slope.

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UM Corihuami PAG.37 DE 44
 Once determined the optimum cone price of 1,100 US $ / Oz, the pit design with which the mining
area and final slopes, the results of optimization and design for the block is determined is performed A.
scree Slope is 2-27 show, 2-28 and 2-29 Figures:

Figure 2-27 A. pit design Scree Slope - top view.

Figure 2-28 Section A - A '

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Figure 2-29 Section B - B '.

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 2.7.2. CALCULATING THE COURT LAW

The theoretical concept of this calculation is based on estimating the minimum operating law for
Open Pit, which is obtained by equating the cost of production divided by the product of the net price and
ore recovery.

ounces Troy => grams - Conversion 31.1035

COSTS $/ $ / Oz Au
Ton
Mina costs -

incremental Haulage 0.19

Plant Cost 1.32 -
Capex Ampliacion Pad 0.60
Administration cost 1.12 -

Minandex royalties 36.08

government royalties 12.03
Dore transportation and selling costs 6.60

Total cost ($ / ton) $ 3,236 -

RECOVERIES 80.00%

PRICE AU $ / Oz Au
Au Price $ 1100.0

LAW OF CUT $ / tn $ / Oz Au $ / gr Au
Base cost Minado $- $ 33.61
Processing Cost $ 2,111
Management Cost Net $ 1,125
Worth $ 1045.290
Sale price Maquila and $ 1,100.00
royalties $ 54.71

Cut off 0.120

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 2.7.3. RESERVATIONS BY BANKS

Table 2-21, details the distribution of reserves by banks, clearing also shown, striping ratio (S / R)
and gold ounces cubed in pit A. scree Slope.

Picture 2-21 Pit reserves banks A. Scree Slope.

mineral Au law oz Dismount Total

Bank MR
TM g/ ounce TM TM
4780 TM s 164 164
4775 5,871 5,871
4770 159 0.933 4.78 21,588 21.747 135.63
4765 18.348 0.358 211.25 45.479 63.827 2.48
4760 61.913 0.386 768.16 38,750 100.664 0.63
4755 85.813 0.363 1,000.94 22,740 108.552 0.26
4750 80.461 0.311 804.26 17,523 97.983 0.22
4745 64.243 0.280 578.33 18,552 82.795 0.29
4740 67.844 0.264 576.07 24,999 92.843 0.37
4735 68.922 0.261 577.68 33.585 102.507 0.49
4730 91.903 0.285 840.93 68.126 160.030 0.74
4725 77.547 0.283 706.57 123.696 201.243 1.60
4720 70.365 0.251 567.83 105.874 176.238 1.50
4715 43.858 0.241 340.11 88.518 132.376 2.02
4710 28.297 0.188 170.76 91.108 119.405 3.22
4705 24.651 24.651
4700 642 0.416 8.60 26,768 27,410 41.69
4695 7,196 0.229 52.86 28.757 35.953 4.00
4690 21,809 0.222 155.52 17.887 39.696 0.82
4685 3,813 0.360 44.11 5,139 8,952 1.35
TOTAL 793.134 0.291 7,409 809.773 1602907 1.02

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 2.8. TOTAL RESERVES

Table 2.22 estimated at UM stocks is summarized Corihuarmi., Which amounts to the sum of all the
cuts.

Picture 2-22 Inventory reserves UM Corihuami to March 31, 2017

PRICE CUT OFF PIT TM ORE Au GRADE Au ounces TM WASTE TM TOTAL MR

0.115 Diana
0.127 Susan 2241996 0.259 18,698 627.119 2869115 0.28
0.111 scree Slope 256.723 0.301 2,482 194.764 451.487 0.76
0.115 Cayhua 2549617 0.264 21.657 1265085 3814702 0.50
1,100
0.111 A. Diana 603.507 0399 7,734 587.519 1191026 0.97
0.113 Laura 1411458 0.207 9,377 457.539 1868997 0.32
0.113 North Cayhua 1531792 0.445 21.910 1721581 3253373 1.12
0.120 A. scree Slope 793.134 0.291 7,409 809.773 1602907 1.02
9388226 0.296 89265.36 5663380 15051606 0.60

The calculated balance shown in the above table summarizes which have a total of 9,388,226 tons
of ore and 5,663,380 Ounces 89,265.36 tonnes of waste.

3. LOM-mining plan

Estimated at UM Corihuarmi reserves shown in Table 3-1 are those used for the mine plan, taking
into account the blending between moraines and rock, it has also prioritized the mining pit Laura, because it
is close to the buildings of the future expansion of the leach pad. The LOM mine plan also shown in Table 3-
2 where tonnages seen to undermine the years 2017, 2018 and 2019.

Picture 3-1 Reserves as of December 31, 2016 UM Corihuarmi

PIT TM ORE Au GRADE Au ounces TM WASTE TM TOTAL MR

Diana
Susan 2241996 0.259 18,698 627.119 2869115 0.28
scree Slope 256.723 0.301 2,482 194.764 451.487 0.76
Cayhua 2549617 0.264 21.657 1265085 3814702 0.50
A. Diana 603.507 0399 7,734 587.519 1191026 0.97
Laura 1411458 0.207 9,377 457.539 1868997 0.32
North Cayhua 1531792 0.445 21.910 1721581 3253373 1.12
A. scree Slope 793.134 0.291 7,409 809.773 1602907 1.02
9388226 0.296 89265.36 5663380 15051606 0.60

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Picture 3-2 LOM Plan from April 2017 to July 2020 UM Corihuarmi

2017
PIT TM ORE Au GRADE Au ounces TM WASTE TM TOTAL MR RECUP oz Au
Diana
Susan 336.289 0.283 3,063.00 68.758 405.047 0.20 2,415.37
scree Slope 125,600 0.367 1,480.00 25,120 150.720 0.20 1,167.08
Cayhua 519.103 0.298 4,978.22 258.274 777.377 0.50 3,925.65
A. Diana 253.871 0.385 3,144.94 236.528 490.399 0.93 2,479.99
Laura 448.751 0.245 3,540.00 278.348 727.098 0.62 2,791.52
North Cayhua 324.211 0.392 4,083.31 264.581 588.792 0.82 3,219.95
A. scree Slope 190,000 0.360 2,198.10 275,000 465,000 1.45 1,733.34
2,197,8250.31822,487.561,406,6083,604,4330.6417,732.91

YEAR 2018
PIT TM ORE Au GRADE Au ounces TM WASTE TM TOTAL MR RECUP oz Au
Diana
Susan 517.209 0.283 4,700 151.539 668.749 0.29 3,760
scree Slope 110.000 0.238 840 142.316 252.316 1.29 672
Cayhua 589.356 0.277 5,258 292.226 881.582 0.50 4,206
A. Diana 349.636 0.408 4,589 350.991 700.627 1.00 3,671
Laura 645.354 0.182 3,786 120,122 765.476 0.19 3,029
North Cayhua 413.444 0.488 6,480 445.261 858.706 1.08 5,184
A. scree Slope 175.000 0.329 1,848 155.165 330.165 0.89 1,479
2,800,0000.30627,501.731,657,6214,457,6210.5922,001.38

2019
PIT TM ORE Au GRADE Au ounces TM WASTE TM TOTAL MR RECUP oz Au
Diana
Susan 629.655 0.242 4,890 184.485 814.141 0.29 3,912
scree Slope 21,123 0.238 162 27,328 48.451 1.29 129
Cayhua 848.002 0.236 6,445 420.474 1268476 0.50 5,156
A. Diana
Laura 317.353 0.201 2,051 59.070 376.423 0.19 1,641
North Cayhua 661.669 0.436 9,274 766.289 1427958 1.16 7,419
A. scree Slope 322.198 0.213 2,205 199.975 522.173 0.62 1,764
2,800,000 0.278 25026.12 1657621 4457621 0.59 20020.90

2020
PIT TM ORE Au GRADE Au ounces TM WASTE TM TOTAL MR RECUP oz Au
Diana
Susan 758.842 0.248 6,044 222.336 981.179 0.29 4,836
scree Slope
Cayhua 593.156 0.261 4,976 294.111 887.266 0.50 3,981
A. Diana
Laura
North Cayhua 132.467 0.487 2,073 245.450 377.917 1.85 1,658
A. scree Slope 105.936 0.340 1,157 179.633 285.569 1.70 926
1590402 0.279 14249.94 941.530 2531931 0.59 11399.95

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4. CONCLUSIONS

Updating reservations to this date provides all the information from scans conducted since 2016, it
has also been integrated information holes blast to March 2017 whose information is more densified for
proximity between samples and mesh perforation.

The block model information product geostatistics and interpolation data was taken report:
PE_COR_Resource_Estimation_Corihuarmi_JL_Abr2017_Rev00.

Reserves cubed to December 31, 2016 are 9,388,226 tons with an average grade of 0.296 g / tn Au
which make 89265.36 ounces.

With estimated 2017 to March 31 reserves, the LOM is projected to mid-July 2020, thus prolonging
the life of the mine until that date.

5. RECOMMENDATIONS

It should prioritize Laura pit mining, for which it requires building protection purposes blasting tap for
security and ramps preparations for exploitation.

Continue making long drilling holes to incorporate inferred resources to indicated and measured
indicated. In order to incorporate additional resources and thus increase reserves to extend the life of the
mine, continuing operations at UM Corihuarmi for the benefit of stakeholders.

Perform the preparation of operating ramps and accesses to give sustainability to mine production,
considering all the standards that are, and have prepared fronts on the dates that are scheduled
exploitation.

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