Fresnillo District Site Visit September 2019
Site Visit Hosts Frenillo Operational Key District FFP Review Messages Overview Corporate & Regional Fresnillo Saucito Andre Sougarret Andre Sougarret Carlos Vidales Carlos Vidales Hector Contreras Hector Contreras VP Operations VP Operations General Manager General Manager General Manager General Manager David Giles David Giles Hector Toledo Hector Toledo Francisco Gonzales Francisco Gonzales VP Explorations VP Explorations Planning Superintendent Planning Superintendent General Superintendent General Superintendent Gonzalo Eyzaguirre Gonzalo Eyzaguirre Daniel Saldivar Daniel Saldivar Walter Solano Walter Solano Geology Superintendent Geology Superintendent Regional Sub-Director Regional Sub-Director Planning Superintendent Planning Superintendent Francisco Macedo Francisco Macedo Jaime Bravo Jaime Bravo Hugo Silva Hugo Silva Corporate Planning Manager Corporate Planning Manager Plant Superintendent Plant Superintendent Geology Superintendent Geology Superintendent Gabriela Mayor Gabriela Mayor Fidel Morin Fidel Morin Hector Estrada Hector Estrada Head of Investors Relations Head of Investors Relations Projects Superintendent Projects Superintendent Plant Superintendent Plant Superintendent Patrick Chambers Patrick Chambers Investors Relations Investors Relations 2
Agenda 1 Fresnillo District Overview Fresnillo District Overview 2 Operational Review Operational Review Regional Geology Regional Geology 2.1 2.2 Fresnillo Operation Fresnillo Operation 2.3 Saucito Operation Saucito Operation 3 Fresnillo To Its Full Potential (FFP) Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges Main Challenges 3.2 Projects to improve infrastructure Projects to improve infrastructure Projects to improve processes Projects to improve processes 3.3 Key Messages Key Messages 4 Fresnillo Visit - September 2019 3
Location & developed infrastructure Frenillo Operational Key District FFP Review Messages Overview Located in the mining region of Zacatecas Key Facts Geographical Location � Fresnillo, Saucito, and Juanicipio are strategically located in the Fresnillo district, Zacatecas. � Close to other important mining operations such as Peñasquito (Newmont Goldcorp), Madero (Peñoles) and others. � 2 mining units : � Fresnillo, an underground silver mine with lead, zinc and gold content. � Saucito, an underground silver mine with lead, zinc and gold content. � Both mining units are close to each other and are near to the Juanicipio Project, currently under development. � Both mine operations have concentration plants with 8k t/d production capacity. � Both operations have well developed infrastructure, including: � Shafts, pumping stations, Sub-stations, workshops, warehouses, tailings dams, water treatment plants, housing and administrative offices. Project Tellus - November 2016 4
Fresnillo District Timeline Frenillo Operational Key FFP District Review Messages Overview 2004 1554 1910 1961 1926 1974 1997 2003 1700-1800 Production Cerro Proaño was The Fresnillo Peñoles adquired Discovery of Flotation Discovery of Inicial Pequeños increased discoverd Company the Santo Niño Process to treat the San exploration of ¨The Mexican Mineros from 4.5k tpd Vein sulphurs Carlos Vein Saucito vein American Company¨ to 7k tpd 2007 2017 2005 2008 2010 2013 2018 2009 Discovery of Vertical Construction of Fátima ramp IPO of Fresnillo First Plant at Second Plant Pyrites Plant the Jarillas Conveyor the Jarillas Shaft began (Saucito) PLC Saucito at Saucito Phase 1 Vein installed 5
Silver Ounces and Throughput Frenillo Operational Key District FFP Review Messages Overview 14-14.5 17-18 6
Regional Organisational Structure Frenillo Operational Key District FFP Review Messages Overview Sub-director Distrito Fresnillo (Gonzalo Eyzaguirre) Gerente Saucito Gerente Fresnillo Gerente Juanicipio (Hector Contreras) Superintendente General (Carlos Vidales) (TBD) Distrital (Reynaldo Jimenez) (4) Superintendente General (4) Superintendente General Superintendente General Superintendente General Poniente Operaciones Operaciones Operaciones (1) Superintendente Distrital de (Luis Gerardo Martinez) (Francisco Gonzales Trueba) (TBD) (TBD) Mantenimiento (Javier Guevara) (4) Superintendente General Oriente (2) Superintendente Distrital de (Alonso Luna) Proyectos Operaciones (Fidel Morin) (5) (5) Superintendente Planta Superintendente Planta Superintendente Planta Superintendente Planta (3) (Jaime Bravo) (Hector Estrada) (TBD) (TBD) Superintendente Distrital TO y Productividad (Leonardo Cota) (6) (6) Superintendente Geologia Superintendente Geologia Superintendente Geologia Superintendente Geologia (Daniel Saldivar) (Hugo Silva) (TBD) (TBD) (7) (7) Superintendente Superintendente Superintendente Planeamiento MP Planeamiento MP Planeamiento MP (Hector Toledo) (Walter Solano) (Walter TBD) (8) (8) Superintendente RRHH Superintendente RRHH Superintendente RRHH (Armando Sanchez) (Alfredo Rojas) (TBD) (9) (9) Superintendente IT Superintendente IT Superintendente IT (Arturo Gurrola) (TBD) (Jhovany Magallanes) (10) Superintendente (10) Superintendente Superintendente Geomecanica Geomecanica Geomecanica (Vacante) (Oscar Lopez) (TBD) (11) (11) Superintendent Seguridad Superintendente Seguridad (David Escamilla) (Gustavo Gutierrez) 7
Agenda 1 Fresnillo District Overview Fresnillo District Overview 2 Operational Review Operational Review Regional Geology Regional Geology 2.1 2.2 Fresnillo Operation Fresnillo Operation 2.3 Saucito Operation Saucito Operation 3 Fresnillo To Its Full Potential (FFP) Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges Main Challenges 3.2 Projects to improve infrastructure Projects to improve infrastructure Projects to improve processes Projects to improve processes 3.3 Key Messages Key Messages 4 8
Local Geology Frenillo Operational Key District FFP Review Messages Overview FRESNILLO Key Facts DISTRICT � The district is composed mainly of structures striking NW 40 SE � Inclination of the veins is around 65° � The vein thickness ’ are in a range of 0.5 mts to 20 mts � The mineralogy is composed of silver sulphurs and sulpho-salts, electrum for gold and galena and sphalerite for lead and zinc 9
Local Geology Frenillo Operational Key FFP District Review Messages Overview 10 10
Agenda 1 Fresnillo District Overview Fresnillo District Overview 2 Operational Review Operational Review Regional Geology Regional Geology 2.1 2.2 Fresnillo Operation Fresnillo Operation 2.3 Saucito Operation Saucito Operation 3 Fresnillo To Its Full Potential (FFP) Fresnillo To Its Full Potential (FFP) 3.1 Main Challenges Main Challenges 3.2 Projects to improve infrastructure Projects to improve infrastructure Projects to improve processes Projects to improve processes 3.3 Key Messages Key Messages 4 11
Fresnillo Operation – Resources & Reserves 2018 Frenillo Operational Key District FFP Review Messages Overview Resources Pb Au Grade Ag Grade Zn Grade Category Tonnes Grade (gr/ton) (gr/ton) (%) (%) Measures 12´741,547 0.91 557 1.05 1.81 Indicated 24´713,485 0.86 362 1.53 3.22 37´140,609 0.66 315 1.22 2.29 Inferred TOTAL 74´595,641 0.76 339 1.38 2.75 Value Cut Resources (Cut Off) 2018: 131 g/t Ag Eq Assumptions Reserve USD/oz Au $1,250 USD/oz Ag $17.00 USD/lb Pb $0.90 USD/lb Zn $1.10 Ag Pb Au Grade Zn Grade Category Tonnes Grade Grade (gr/ton) (%) (gr/ton) (%) 4´898,954 0.66 320 0.76 1.31 Proven Cut-off is calculated using All Sustaining Cost Probable 17´673,106 0.81 222 1.80 3.91 TOTAL 22´572060 0.78 243 1.57 3.35 Value Cut Reserve (Cut Off) 2018: 212 g/t Ag Eq 12
Fresnillo - Infill drilling Campaigns Frenillo Operational Key FFP District Review Messages Overview -10400 -10200 -10000 -9800 --9600 -9400 -9200 -9000 -8800 SAN DIEGO VEIN RAMPA CANDELARIA -200 -200 N390 -400 -400 INFILL PROGRAMME N-460 15,000 metres RMPA-1 -600 -600 -800 -800 -1000 -1000 -10400 -10200 -10000 --9600 -9800 -9400 -9200 -9000 -8800 AG>600 AG>360 AND AG<=600 AG>240 AND AG<=360 AG>120 AND AG<=240 AG>60 AND AG<=120 AG<=60 2017 2018 2019 2020 KM 48 65 80 50 13
Fresnillo Operation – Underground Operations Frenillo Operational Key District FFP Review Messages Overview 550 695 920 990 56% reserves YEAR Bench & Cut & Fill Development Area % de Tonnes # Veins FIll CANDELARIA 20.07% 2 2018 50% 38% 12% SAN ALBERTO 30.28% 3 2019 50% 34% 16% SAN CARLOS 20.68% 8 Vein Type Vein Width (mts) SAN CARLOS 7.91% 1 695 Wide (> 3 mts) 3.2 SAN MATEO 7.10% 8 Medium (2-3 mts) 2.4 SAN RICARDO 7.57% 2 Narrow (< 2 mts) 1.5 SANTA ELENA 6.39% 2 TOTAL 100.00% 26 Fresnillo Visit - September 2019 14
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