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Minsur Corporate Presentation May, 2018 1 AGENDA 1. General - PowerPoint PPT Presentation

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Minsur Corporate Presentation May, 2018 1 AGENDA 1. General Overview 2. Portfolio of world-class and profitable assets 3. Expansion Projects 4. Financial performance 5. Tin market outlook 6. Closing Remarks 2 Pucamarca, 2012 1 General

  1. Minsur Corporate Presentation May, 2018 1

  2. AGENDA 1. General Overview 2. Portfolio of world-class and profitable assets 3. Expansion Projects 4. Financial performance 5. Tin market outlook 6. Closing Remarks 2 Pucamarca, 2012

  3. 1 General Overview 3 3

  4. Minsur at a glance ✓ Leading Peruvian mining company with +35 years of continuous operations 2 0 1 7 ✓ Largest supplier of tin in the Western Hemisphere ✓ Revenues Owner of San Rafael, the world ’s largest and richest tin mine US$ 672 M ✓ World ´ s single largest tin deposit : Pitinga mine * ✓ EBITDA Diversification through a highly profitable small scale gold mine Pucamarca, and a large copper deposit, Mina Justa US$ 254 M ✓ Majority owned and sponsored by Peru ´ s largest economic group , Breca ✓ Sn Production Listed on the Lima Stock Exchange (MinsurI1) 24,615 t ✓ Highly committed to sustainability Au Production 100,010 oz Brazil Pitinga (Sn, Nb/Ta) Ferroalloys Production Peru 3,252 t Operating Pirapora (Sn) Lima Refining San Rafael (Sn) Pisco (Sn) Project Headquarters Mina Justa Pucamarca (Au) (Cu, Au, Ag) 4 * In terms of contained tin resources as of December 31, 2012 (Source: ITRI)

  5. Part of BRECA Conglomerate, Peru’s largest economic Group Shareholders Financial Breca Mining Industrial Real Estate Services Entities * 5

  6. Over 35 years of continuous operations Minsur sales 40% of Marcobre to Alxar (Empresas Copec) for US$200M as part of the financial strategy to develop Mina Justa 2018 Minsur consolidates 100% of Marcobre – Mina Justa (Copper) for US$85M 2016 Pucamarca (Gold) begins operations (US$222M capex) 2013 Minsur acquires 70% of Marcobre – Mina Justa (Copper) for US$506M 2012 Minsur acquires the Taboca mining unit in Brazil US$395M Revenues evolution (US$M) 2008 Pisco (Tin foundry) begins operations (first in the world to use submerged lance technology for tin concentrates processing) 914 893 883 876 2003 739 Operations begin in the 672 619 617 San Rafael mine with 1997 copper being its main Pisco able to process the totality product of the ore mined at San Rafael, allowing optimization of 1992 307 commercial strategy 180 Tin becomes the only metal … produced in San Rafael … 1977 1966 Minsur Sociedad Limitada is established in Peru 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 6

  7. Global leading Tin Producer Global ranking – Top 10 Tin producers (2016, MT) 76,000 26,802 25,445 23,756 20,100 13,111 11,088 10,984 8,541 8,200 Yunnan Tin Malaysia Minsur PT Timah Yunnan EM Vinto Thaisarco Guangxi Metallo Gejiu Zi-Li Smelting Corp Chengfeng China Tin Chimique 7 Source: ITA, 2016

  8. Highly Committed to Sustainability Safety and health Environment Social Management ✓ Identifying, preventing, monitoring and ✓ Maintaining trust relationships with the ✓ Identifying hazards, promoting safe mitigating environmental aspects, efficient stakeholders in our areas of influence behaviors to achieve a zero accident work use of resources and waste environment ✓ Promoting sustainable development of ✓ Promoting an environmental-care culture communities ✓ Reporting all incidents, promoting participation of employees and stakeholders in safety and health ✓ San Rafael: Safest underground mine in Peru (2017, Mining Safety Institute) Accident Frequency Index (# Loss time injuries/million man hours worked) 2.3 0.6 0.5 0.3 0.2 2013 2014 2015 2016 2017 8

  9. Minsur added to ICMM (May, 2018) 9

  10. Focused Strategy ✓ Maintaining the low-cost nature of our world-class mining assets ✓ Focus on Cost- Continuing to improve operating efficiencies Control Efficiency ✓ and Operational Maintain the profitability of our operations Excellence ✓ Secure sustainability of our assets: commitment to world class industry practices ✓ Maintain Our Maintain our strong balance sheet and liquidity profile, including our investment grade ratings Strong Balance Sheet and ✓ Liquidity Profile Continue our conservative financial policies ✓ Business development on existing assets: • Organic growth – low execution risk expansions • Explorations – brownfields in current operations Disciplined ✓ Investment Focus on mining friendly geographies and metals with high demand potential Approach ✓ Disciplined growth approach – selective capital expenditures to manage through different commodity cycles 10

  11. 2 Our Operations 11

  12. Portfolio of world-class and profitable assets San Rafael (Sn) Tin Throughput: 2,900 MT/day Gold US$7,045 / MT Cash-cost*: Smelters Peru Average Grade*: 1.75% Operation: Underground mine Pucamarca (Au) Throughput: 21,000 MT/day Pisco By P. Cash-cost*: US$338 /oz San Rafael Average Grade*: 0.50 g/MT Operation: Open pit mine Pitinga Pucamarca Brazil Pitinga (Sn, NbTa) Throughput: 17,910 MT/day Pirapora Cash-cost*: US$11,377 / MT Average Sn Grade*: 0.20% Operation: Open pit mine 12 12 *Figures as of 2017

  13. San Rafael - Pisco Overview Cost curve position (US$/MT) 2016 NBP cash cost ▪ Largest and richest ore grade tin mine in the world, producing around 5% of global tin supply ▪ High grade deposit, estimated resources of 11.2 million MT of ore with an average tin grade of 1.99% as of December 2017 .46 San Rafael: ▪ Mine life: > 6 years of mining reserves (ex resources) and adjacent potential US$ 8,478 ▪ Vertically integrated with Pisco Smelter and Refinery ▪ 3rd largest tin plant in the world ▪ One of the most efficient smelting plants in the world ▪ Processes the totality of the ore mined at San Rafael Source: ITA San Rafael drilling (km) Production % Tin grade (kMT) Identified resources 20 146 1,186 1,271 1,539 388 1,389 3,032 (´000 MT) 2.0 2.7 2.1 1.8 4.0 3.3 3.5 2.5 2,000 35 61 30 49 30 43 1,500 40 40 25 24 24 25 20 20 1,000 17 18 20 4 1 500 15 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 Treated material Tin production 13

  14. San Rafael – Pisco 1Q18 results and 2018 FY Guidance 1Q18 vs 1Q17 2014 - 2017 FY & 2018 Guidance Min Max 24 3.6 3.5 20 20 18 17.5 Production 16.5 -3% (kt Sn) 1Q17 1Q18 2014 2015 2016 2017 2018 [E] 143 93 127 Cash – Cost 62 82 75 70 (US$/tt) +50% 65 1Q17 1Q18 2014 2015 2016 2017 2018 [E] 4.5 4.8 29 30 25 22 Capex 18 -7% (US$M) 15 2014 2015 2016 2017 2018 [E]* 1Q17 1Q18 *Sustaining CAPEX only 14

  15. Ore Sorting Plant, San Rafael site, Peru 15 15

  16. Pucamarca Overview Production Au grade (g/t) kTM ▪ High quality and rich gold deposit koz 0.50 0.96 0.70 0.50 0.60 0.70 ▪ Demonstrates Minsur’s ability to develop, ramp up, and operate a new mine 0.70 8500 150 121 117 ▪ Gold production began in Feb/2013, with 116,665 ounces of gold produced 106 106 100 6500 during first year of operation & over 100,000 ounces of gold onwards 100 .46 ▪ 4500 Estimated reserves and resources of 0.61 million and 0.94 million ounces of 50 gold with an average ore grade of 0.52 and 0.41 grams per metric ton as of 2500 December 2017 500 0 ▪ Expansion of plant capacity from 17,500 TPD to 21,000 TPD 2013 2014 2015 2016 2017 ▪ Mine life: 6 years Treated material Gold production Cost curve position (US$/oz) 2017 cash cost Cost (US$/MT) One of the most cost efficient gold mines in Pucamarca 2017: US$338/oz the world Source: Wood Mackenzie 16

  17. Pucamarca 1Q18 results and 2018 FY Guidance 1Q18 vs 1Q17 2014 - 2017 FY & 2018 Guidance Min Max 29.0 121 24.2 106 100 106 100 Production 90 -17% (koz Au) 2014 2015 2016 2017 2018 [E] 1Q17 1Q18 4.1 3.9 6.2 Cash – Cost 5.0 4.2 5.0 4.3 +3% (US$/tt) 4.5 1Q17 1Q18 2014 2015 2016 2017 2018 [E] 35 3.8 17 Capex 2.1 18 25 7 (US$M) 7 +76% 1Q17 1Q18 2014 2015 2016 2017 2018 [E]* *Sustaining CAPEX only 17

  18. Pitinga - Pirapora Cash cost evolution Overview (US$/MT)* 51,979 ▪ World’s single largest tin deposit of contained tin 40,869 resources, Niobium and Tantalum as by-products ▪ Estimated resources of 368 million MT of ore with an 22,868 21,365 17,910 17,604 15,130 14,755 average tin grade of 0.13% as of December 2017 ▪ Average mine life: Over 30 years 2010 2011 2012 2013 2014 2015 2016 2017 ▪ Vertically integrated with the Pirapora smelter * Net of NbTa alloy credits ▪ Processes all the tin ore mined at Pitinga ▪ More than 99.90% of tin purity Production ▪ 6,582 Smelting capacity of 14,000 MT of concentrate per 5,873 (MT) 5,525 year 5,010 4,212 ▪ Continuously improving performance of Pitinga: 3,025 ▪ Improved recovery rates and higher throughput 1,253 1,099 ▪ Increased tin metal production in 2017 by 12% 2010 2011 2012 2013 2014 2015 2016 2017 Tin production 18

  19. Pitinga – Pirapora 1Q18 results and 2018 FY Guidance 1Q18 vs 1Q17 2014 - 2017 FY & 2018 Guidance Min Max 1.5 6.6 7.0 5.5 5.9 1.4 Production 5.0 6.0 +5% (kt Sn) 1Q17 1Q18 2014 2015 2016 2017 2018[E] 21.0 24.2 22.7 18.8 18.6 18.1 17.5 Cash – Cost 19.0 +38% (US$/tt) 1Q17 1Q18 2014 2015 2016 2017 2018[E] 67 21 Capex 40 32 25 30 (US$M) 5 -78% 20 1Q17 1Q18 2014 2015 2016 2017 2018 [E] *Sustaining CAPEX only 19

  20. 3 Expansion Projects 20 20

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