BofAML: Global Metals, Mining & Steel Conference May 16, 2018 - PowerPoint PPT Presentation

BofAML: Global Metals, Mining & Steel Conference May 16, 2018

Disclaimer This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include, but are not limited to, statements regarding the Fresnillo Group’s intentions, beliefs or current expectations concerning, among other things, the Fresnillo Group’s results of operations, financial position, liquidity, prospects, growth, strategies and the silver and gold industries. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results of the Fresnillo Group’s operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group operates, may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. In addition, even if the results of operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations (including the US dollar and Mexican Peso exchange rates), the Fresnillo Group’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, changes in its business strategy, political and economic uncertainty. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document speak only as of the date of this document, reflect the Fresnillo Group’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Fresnillo Group’s operations, results of operations, growth strategy and liquidity. Investors should specifically consider the factors identified in this document which could cause actual results to differ before making an investment decision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or applicable law, the Fresnillo Group explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this document that may occur due to any change in the Company’s expectations or to reflect events or circumstances after the date of this document. 2

Fresnillo at a Glance – A Decade of Progress and Achievement Key Highlights Location � World’s largest silver producer (58.7 moz in 2017) and Mexico’s largest gold producer HERRADURA (911.1 koz in 2017) DISTRICT ORISYVO � Total assets of US$4.7 billion 1 and market cap of US$12.9 billion 2 SAN JULIÁN � Silver resources of 2.3 billion ounces and gold resources of 38.5 million are the foundation for creating long term value FRESNILLO � Growth potential supported by mining concessions of 1.8m hectares in Mexico and CIÉNEGA DISTRICT DISTRICT 350 thousand hectares in Peru � Margins sustained by cash costs and AISC amongst the lowest in the industry � Production target at IPO of 65 moz of silver and 750 koz of gold by 2018 SOUTH PERU � Substantial, high quality project pipeline and strong commitment to disciplined and Fresnillo plc mines (7 principal mines and 2 satellite mines) 3 sustainable growth Development projects (2) Advanced exploration projects (4) � Focus on greenfield and brownfield projects that can be developed into low-cost, Prospects in drilling world-class mines Prospects at an early stage 1 As of 31 Dec 2017 2 As at 11 May 2018 3 Operations at Soledad-Dipolos are currently suspended 3

A decade of progress and achievement Explore Operate Develop Sustain • Consistently invested over Maintained a strategic We work hard to ensure the By optimising capacity and commitment to continuous health and safety of our people recoveries, generating continuous US$4 billion in both existing operations and growing our exploration across all precious and that their communities see a improvements in productivity and portfolio of quality assets. metals price cycles. return on their investment of cost controls while leveraging time, skills and commitments. expansion opportunities, we have: • 4 new mines developed & • US$1.6 Billion invested in Silver Up 69% commissioned: exploration since IPO • Over US$32 Million invested in Production since IPO Saucito local communities since IPO Up 225% Gold • San Julián Silver Resources grown 177% Production since IPO Noche Buena to 2.3 Billion ounces since IPO • Close to US$130 Million Silver Up 23% Soledad & Dipolos invested in health, safety and Reserves since IPO • Gold Resources grown 305% environmental initiatives since • to 39 Million ounces since IPO IPO Gold Up 216% Due to commission 2 projects in 2018: Reserves since IPO Pyrites Plant at • ~95% Organic Growth • Inclusion into the FTSE4Good Dividends Paid UK 50 scheme, amongst Saucito Paid US$2.5 Billion 2 nd Dynamic Leaching • Strong pipeline of projects others Plant at Herradura including Juanicipio, due to be commissioned in 2020 4

A decade of Production and Resource Growth per Share Production 140 180 Production (Eq Ag oz) per thousand shares Production (Eq Ag oz) per 160 120 Production (Eq Ag moz) 140 thousand shares 100 120 80 100 80 60 60 40 40 20 20 - - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Resources 8 6,000 Resources (Eq Ag oz) per share Resources (Eq Ag oz) per share 7 5,000 Resources (Eq Ag moz) 6 4,000 5 3,000 4 3 2,000 2 1,000 1 - - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5 Silver: Gold 74 : 1

Growth and Returns Investing in Growth Growth Outcome Returns EBITDA Total Exploration Expenses from Increase in silver equivalent (2008 to 2017) the last decade (2008 to 2017) resources (2007-2017) Total EBITDA – US$ 8,570m US$ 1,570.0 million 4,458.5 million ounces* Average EBITDA p.a. – US$ 857m (Increase of 158%) Average EBITDA margin – 53% Total CAPEX from the last decade Production growth Total Dividends Paid since IPO (2008 to 2017) (2007 to 2017) (2008 to 2017) US$ 4,281.8 million Silver – 69% US$ 2,492.2 million Gold – 225% 6 * Measured, Indicated and Inferred resources, considering a Gold/Silver ratio of 74. Includes resources mined and processed.

Health, Safety, Environment & Community Relations Health & Safety • 2 Fatal accidents year to date • The enhanced Health & Safety approach piloted at Saucito in 2017 and subsequently adopted at both Fresnillo and Ciénega is set to be rolled out across our other operations, emphasising risk awareness and encouraging reporting • Investment in Health increased to US$12.5m, up 15% vs. 2016 Environment, Community Relations and Awards • Working along side Ethisphere, we hosted the first Business Ethics Leadership Alliance (BELA) roundtable in Mexico City bringing together leading industry figures to share best practises on ethics and compliance programmes • Our social investment portfolio contributes to 4 of the UN’s sustainability goals, they are: Capacity building, Water, Education & Health • Our Environment, Social and Governance (ESG) performance was recognised by the inclusion of Fresnillo in the FTSE4 GOOD UK 50 ranking • Released our first Modern Slavery Statement, setting out the steps taken to prevent any involvement in slavery and human trafficking • Reviewed the new requirements of the EU Non-financial Reporting Directive for the Strategic Report which resulted in the Company adopting the six capitals approach of the IIRC 7