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|  ANNUAL INFORMATION FORMMarch 29, 2017MAG Silver Corp.Suite 770 – 800 West Pender StreetVancouver, BC, Canada V6C 2V6An additional copy of this Annual Information Form for theyear ended December 31, 2016 may be obtained upon requestfrom the Corporate Secretary of MAG Silver Corp. at the aboveaddress or from the company's web site:www.magsilver.com |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| INTRODUCTORY NOTES                                                     | 3  |
|------------------------------------------------------------------------|----|
| Date of Information                                                    | 3  |
| Cautionary Statement on Forward-Looking Information                    | 3  |
| Currency and Exchange Rates                                            | 6  |
| Metric Equivalents                                                     | 7  |
| Financial Data in this AIF                                             | 7  |
| Defmined Terms                                                         | 7  |
| Cautionary Statement Regarding Non-IFRS Measures                       | 7  |
| CORPORATE STRUCTURE                                                    | 8  |
| Intercorporate Relationships                                           | 8  |
| GENERAL DEVELOPMENT OF THE BUSINESS                                    | 10 |
| Three Year History                                                     | 11 |
| DESCRIPTION OF THE BUSINESS                                            | 15 |
| General                                                                | 15 |
| Principal Markets                                                      | 15 |
| Adjacent Property Disclosure                                           | 15 |
| Cautionary Note to Investors Concerning Estimates of Mineral Resources | 16 |
| Technical Information                                                  | 16 |
| Passive Foreign Investment Company                                     | 16 |
| Employees                                                              | 16 |
| Competitive Conditions                                                 | 17 |
| Economic Dependence                                                    | 17 |
| CARRYING ON BUSINESS IN MEXICO                                         | 17 |
| RISK FACTORS                                                           | 21 |
| MINERAL PROJECTS                                                       | 41 |
| DIVIDENDS                                                              | 58 |
| DESCRIPTION OF CAPITAL STRUCTURE                                       | 58 |
| Common Shares                                                          | 58 |
| Shareholder Rights Plan                                                | 59 |
| MARKET FOR SECURITIES                                                  | 59 |
| Trading Price and Volume                                               | 59 |
| Prior Sales                                                            | 60 |
| DIRECTORS AND OFFICERS                                                 | 63 |
| Name, Occupation and Security Holding                                  | 63 |
| Cease Trade Orders, Bankruptcies, Penalties or Sanctions               | 66 |
| Conflicts of Interest                                                  | 66 |
| Audit Committee                                                        | 67 |
| Compensation Committee                                                 | 69 |
| Corporate Governance and Nomination Committee                          | 70 |
| Disclosure Committee                                                   | 70 |
| Sustainability Committee                                               | 70 |
| LEGAL PROCEEDINGS AND REGULATORY ACTIONS                               | 70 |
| INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS             | 71 |
| TRANSFER AGENTS AND REGISTRARS                                         | 72 |
| MATERIAL CONTRACTS                                                     | 72 |
| INTERESTS OF EXPERTS                                                   | 72 |
| ADDITIONAL INFORMATION                                                 | 73 |
| Schedule "A"                                                           | 74 |
| Schedule "B"                                                           | 80 |

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| Type of Document                                                                                                                | Effective Date / Period Ended          | Date Filed / Posted  | Document name which may be viewed at the SEDAR website at www.sedar.com                      |
|--------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|---------------------------|---------------------------------------------------------------------------------------------------|
| Amended and Restated Technical Report on the Mineral Resource Update for the Juanicipio Joint Venture, Zacatecas State, Mexico  | June 12, 2014 (Amended June 30, 2014)  | July 3, 2014         | Technical Report (43-101) – English Qualification Certificate(s) and Consent(s)   |

|  | · | the future price of silver, gold, lead and zinc; |
|--|--------|--------------------------------------------------|

|  | · | the estimation of mineral resources; |
|--|--------|--------------------------------------|

|  | · | preliminary economic estimates relating to the Juanicipio Project (as defined herein); |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | estimates of the time and amount of future silver, gold, lead and zinc production for specific operations; |
|--|--------|------------------------------------------------------------------------------------------------------------|

|  | · | estimated future development and exploration expenditures and other expenses for specific operations; |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | the expected changes to the design of the Juanicipio Project mine plan to increase production capabilities resulting in an incremental increase in capital cost, potential delays in commercial production and an impact on the expected mine life of the project; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | permitting timelines; |
|--|--------|-----------------------|

|  | · | the Company's expectations regarding impairments of mineral properties; |
|--|--------|-------------------------------------------------------------------------|

|  | · | the Company's expectations regarding its efforts to negotiate with the Ejido Benito Juarez (the "EBJ") to obtain surface access to various portions of the Cinco de Mayo Property; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the anticipated timing of commercial production, an updated Juanicipio Technical Report (as defined below) and a formal 'production decision' at Minera Juanicipio; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the Company's expectations regarding the sufficiency of its capital resources and requirements for additional capital; |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | the Company's expectations regarding litigation risks, currency fluctuations, environmental risks and reclamation cost; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | changes to governmental laws and regulations; and |
|--|--------|---------------------------------------------------|

|  | · | the anticipated impact of the Zacatecas Tax Law (as defined below) and changes to Mexican Value Added Tax legislation (as defined below); and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Company's expectations regarding drill results and the anticipated timing of a new resource estimate. |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | the potential for no commercially mineable deposits due to the speculative nature of the Company's business; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | none of the properties in which the Company has an interest having any mineral reserves; |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | the Company's properties are primarily in the exploration stage, and most exploration projects do not result in commercially mineable deposits; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | estimates of mineral resources being based on interpretation and assumptions which are inherently imprecise; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | no guarantee of surface rights for the Company's mineral properties; |
|--|--------|----------------------------------------------------------------------|

|  | · | no guarantee of the Company's ability to obtain all necessary licenses and permits that may be required to carry out exploration and development of its mineral properties and business activities; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to all of the properties in which the Company has an interest being located in Mexico; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | the effect of global economic and political instability on the Company's business; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | risks related to maintaining a positive relationship with the communities in which the Company operates; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | risks related to the Company's ability to finance substantial expenditures required for commercial operations on its mineral properties; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Company's history of losses and no revenues from operations; |
|--|--------|------------------------------------------------------------------|

|  | · | risks related to the Company's ability to arrange additional financing, and possible loss of the Company's interests in its properties due to a lack of adequate funding; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to the development of the ramp decline to access and confirm expected mineralization at the Juanicipio Project, particularly, Minera Juanicipio not yet having made a formal "production decision", and no guarantee that the financial results and the contemplated development timeline will be consistent with the Juanicipio Technical Report; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to a lack of access to a skilled workforce; |
|--|--------|-----------------------------------------------------------|

|  | · | risks relating to the capital requirements for the Juanicipio Project and the timeline to production; |
|--|--------|-------------------------------------------------------------------------------------------------------|

----

|  | · | risks related to title, challenge to title, or potential title disputes regarding the Company's mineral properties; |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to the Company being a minority shareholder of Minera Juanicipio; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | risks related to disputes with joint venture partners; |
|--|--------|--------------------------------------------------------|

|  | · | risks related to the influence of the Company's significant shareholders over the direction of the Company's business; |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to the continued exploration on and value of the Cinco de Mayo Property; |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | the potential for legal proceedings to be brought against the Company; |
|--|--------|------------------------------------------------------------------------|

|  | · | risks related to environmental regulations; |
|--|--------|---------------------------------------------|

|  | · | the highly competitive nature of mineral exploration industry; |
|--|--------|----------------------------------------------------------------|

|  | · | risks related to equipment shortages, access restrictions and lack of infrastructure on the Company's mineral properties; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Company's dependence upon key personnel, some of whom may not have entered into written agreements with the Company, and other qualified management; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the Company's dependence on certain related party service providers (Minera Cascabel S.A. de C.V. ("Cascabel") and IMDEX Inc. ("IMDEX")) to supervise operations in Mexico; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to directors being, or becoming, associated with other natural resource companies which may give rise to conflicts of interest; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | currency fluctuations (particularly the C$/US$ and US$/Mexican Peso exchange rates) and inflationary pressures; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | risks related to mining operations generally; |
|--|--------|-----------------------------------------------|

|  | · | risks related to fluctuation of mineral prices and marketability; |
|--|--------|-------------------------------------------------------------------|

|  | · | the Company being subject to anti-corruption laws, human rights laws, and Mexican foreign investment and income tax laws; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------|

|  | · | the Company being subject to Canadian disclosure practices concerning its mineral resources which allow for more disclosure than is permitted for domestic U.S. reporting companies; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to maintaining adequate internal control over financial reporting; |
|--|--------|----------------------------------------------------------------------------------|

|  | · | funding and property commitments that may result in dilution to the Company's shareholders; |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | the volatility of the price of the Company's Common Shares; |
|--|--------|-------------------------------------------------------------|

|  | · | the uncertainty of maintaining a liquid trading market for the Company's Common Shares; |
|--|--------|-----------------------------------------------------------------------------------------|

|  | · | of the Company being a "passive foreign investment company" which may have adverse U.S. federal income tax consequences for U.S. shareholders; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the difficulty of U.S. litigants effecting service of process or enforcing any judgments against the Company, as the Company, its principals and assets are located outside of the United States; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | all of the Company's assets being located outside of Canada; |
|--|--------|--------------------------------------------------------------|

|  | · | risks related to the decrease of the market price of the Common Shares if the Company's shareholders sell substantial amounts of Common Shares; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | risks related to dilution to existing shareholders if stock options are exercised; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | risks related to dilution to existing shareholders if deferred share units, restricted share units or performance share units are converted into Common Shares of the Company; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the history of the Company with respect to not paying dividends and anticipation of not paying dividends in the foreseeable future; and, |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the absence of a market through which the Company's securities, other than Common Shares, may be sold. |
|--|--------|--------------------------------------------------------------------------------------------------------|

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| Canadian dollars, as expressed in US dollars  | Year Ended December 31,  |
|----------------------------------------------------|-------------------------------|
|  2016                                    |  2015               |  2014  |
| Rate at end of period                              |  $0.7448                 |  $0.7233 |  $0.8620 |
|  Average rate for period                      |  $0.7548                 |  $0.7821 |  $0.9054 |
|  High for period                              |  $0.7972                 |  $0.8511 |  $0.9422 |
|  Low for period                               |  $0.6854                 |  $0.7161 |  $0.8589 |

----

| Mexican pesos, as expressed in U.S. dollars | Year Ended December 31, |
|---------------------------------------------|-------------------------|
| 2016                                        | 2015                    | 2014 |
| Rate at end of period                       | $0.0484                 | $0.05767 | $0.0679 |
| Average rate for period                     | $0.0533                 | $0.06317 | $0.0748 |
| High for period                             | $0.0582                 | $0.06870 | $0.0778 |
| Low for period                              | $0.0475                 | $0.05755 | $0.0676 |
| To convert from Imperial | To metric           | Multiply by |
|--------------------------|---------------------|-------------|
| Acres                    | Hectares            | 0.404686    |
| Tons                     | Tonnes              | 0.907185    |
| Troy Ounces/ton ("opt")  | Grams/Tonne ("g/t") | 34.2857     |

----

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|  | (1) | The Company is the registered owner of 99.99% of the issued Class I shares of Minera Pozo Seco, a corporation incorporated under the laws of Mexico. The remaining 0.01% of the issued Class I shares of Pozo Seco are held by Dan MacInnis, a director of the Company, on behalf of the Company. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | The Company is the registered owner of 99.99% of the issued Class I shares of Sierra Vieja, a corporation incorporated under the laws of Mexico. The remaining 0.01% of the issued Class I shares of Sierra Vieja are held by Dan MacInnis, a director of the Company, on behalf of the Company. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | The Company is the registered owner of 99.99% of the issued Class I shares of Lagartos, a corporation incorporated under the laws of Mexico. The remaining 0.01% of the issued Class I shares of Lagartos are held by Dan MacInnis, a director of the Company, on behalf of the Company. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | Lagartos is the registered owner of a 44% interest in Minera Juanicipio a corporation incorporated under the laws of Mexico, which holds the joint ventured Juanicipio Project with Fresnillo, a London Stock Exchange listed company controlled by Peñoles, holds the remaining 56% interest in Minera Juanicipio. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                              | Percentage of Ownership | Jurisdiction of Organization |
|-----------------------------------|-------------------------|------------------------------|
| Minera Los Lagartos, S.A. DE C.V. | 100%(1)                 | Mexican Republic             |
| Minera Juanicipio, S.A. DE C.V.   | 44%(2)                  | Mexican Republic             |
| 0890887 B.C. Ltd.                 | 100%(3)                 | Canada                       |
| 0891512 B.C. Ltd.                 | 100%(3)                 | Canada                       |
| 0892249 B.C. Ltd.                 | 100%(3)                 | Canada                       |
| DSUB0890887 Cooperatief U.A.      | 100%(4)                 | Netherlands                  |
| STPF B.V.                         | 100%(5)                 | Netherlands                  |
| Minera Pozo Seco S.A. DE C.V.     | 100%(6)                 | Mexico                       |
| Minera Sierra Vieja S.A. DE C.V.  | 100%(6)                 | Mexico                       |

----

| (1) | On October 9, 2005 the assets of Lexington Capital Group Inc., previously a subsidiary of the Company, were merged with Lagartos, so that all of the Company's interests in the Juanicipio claim were held by Lagartos. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | 44% interest is owned by Lagartos, which in turn is wholly owned by the Company. |
|-----|----------------------------------------------------------------------------------|

| (3) | 0890887 B.C. Ltd., 0892249 B.C. Ltd., and 0891512 B.C. Ltd. were incorporated on September 21, 2010, September 28, 2010, and October 6, 2010, respectively and are wholly owned by the Company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | DSUB0890887 Cooperatief U.A. was incorporated on October 11, 2010 in the jurisdiction of the Netherlands, and is wholly owned by 0890887 B.C. Ltd. and 0892249 B.C. Ltd. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | STPF B.V. was acquired by DSUB0890887 Cooperatief U.A. on October 12, 2010. |
|-----|-----------------------------------------------------------------------------|

| (6) | Minera Pozo Seco and Sierra Vieja were incorporated in Mexico on September 27, 2010. |
|-----|--------------------------------------------------------------------------------------|

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| Year | Average Exchange Rate (Mxn peso/US$) |
|------|--------------------------------------|
| 2016 | 18.6774                              |
| 2015 | 15.8299                              |
| 2014 | 13.3609                              |
| 2013 | 12.8411                              |
| 2012 | 13.1657                              |

----

| I. | Duty for Environmental Remediation in the Extraction of Minerals (Remediación Ambiental en la Extracción de Minerales). This duty applies for the extraction activities of the soil and sub-soil of materials that constitute deposits of the same nature to the materials of the soil, through open-pit processes. This duty does not apply to the substances and minerals subject to the Mining Law (i.e., substances and minerals subject to provisions of Article 4 of the Mining Law, such as gold, silver, lead, zinc, copper, etc.). |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| II. | Duty for Emissions of Gases to the Atmosphere (De la Emisión de Gases a la Atmósfera). This duty applies to emissions caused to the atmosphere of certain substances generated in productive processes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| III. | Duty for Emissions of Pollutants to the Soil, Sub-soil and Water (De la Emisión de Contaminantes al Suelo, Subsuelo y Agua). This duty applies to those pollutants deposited, scrapped or released to the soil, subsoil or water deposits. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| IV. | Duty for the Deposit or Storage of Waste (Del Impuesto al Depósito o Almacenamiento de Residuos). This duty applies to the deposit or storage of waste in public or private landfills. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                  | Grade         | Contained Metal  |
|---------------------------------------|--------------------|-----------------------|
| Zone/Classification              | Tonnage (Mt)  | Ag (g/t)         | Au (g/t)  | Pb (%)  | Zn (%)  | Ag (M oz)  | Au (k oz)  | Pb (M lb)  | Zn (M lb)  |
|  Bonanza Grade Silver Zone  |               |                  |   |   |   |   |   |   |   |
| Indicated                        | 8.3           | 601              | 1.7  | 2.0  | 3.7  | 160  | 448  | 365  | 676  |
| Inferred                         | 2.4           | 626              | 1.9  | 1.4  | 2.2  | 48  | 146  | 74  | 114  |
| Deep Zone                        |               |                  |   |   |   |   |   |   |   |
| Indicated                        | 1.8           | 93               | 1.7  | 1.4  | 2.6  | 5  | 97  | 54  | 102  |
| Inferred                         | 2.7           | 146              | 2.0  | 2.1  | 3.4  | 13  | 173  | 128  | 203  |

|  | 1. | CIM definitions were followed for the classification of Mineral Resources. |
|--|----|----------------------------------------------------------------------------|

|  | 2. | Mineral Resources are estimated at an incremental NSR cut-off value of US$70/tonne |
|--|----|------------------------------------------------------------------------------------|

|  | 3. | NSR values are calculated in US$ using factors of $0.57 per g/t Ag, $30.11 per g/t Au, $9.07 per % Pb, and $12.21 per % Zn. These factors are based on metal prices of US$21.50/oz Ag, US$1,250/oz Au, $0.91/lb Pb, and $0.99/lb Zn and estimated recoveries and smelter terms. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | The Mineral Resource estimate uses drill hole data available as of December 31, 2013. |
|--|----|---------------------------------------------------------------------------------------|

|  | 5. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
|--|----|----------------------------------------------------------------------------------------------|

|  | 6. | Totals may not add correctly due to rounding. |
|--|----|-----------------------------------------------|

|  | 7. | Mineral Resource estimates are being updated based on recent drilling. |
|--|----|------------------------------------------------------------------------|

|                 | Grade         | Contained Metal  |
|----------------------|--------------------|-----------------------|
| Classification  | Tonnage (Mt)  | Ag (g/t)         | Au (g/t)  | Pb (%)  | Zn (%)  | Ag (M oz)  | Au (k oz)  | Pb (M lb)  | Zn (M lb)  |
| Indicated       | 10.1          | 511              | 1.7  | 1.9  | 3.5  | 166  | 544  | 419  | 778  |
| Inferred        | 5.1           | 372              | 2.0  | 1.8  | 2.8  | 61  | 319  | 202  | 317  |

|  | 1. | CIM definitions were followed for the classification of Mineral Resources. |
|--|----|----------------------------------------------------------------------------|

|  | 2. | Mineral Resources are estimated at an incremental NSR cut-off value of US$70 per tonne. |
|--|----|-----------------------------------------------------------------------------------------|

|  | 3. | NSR values are calculated in US$ using factors of $0.57 per g/t Ag, $30.11 per g/t Au, $9.07 per % Pb, and $12.21 per % Zn. These factors are based on metal prices of $21.50/oz Ag, $1,250/oz Au, $0.91/lb Pb, and $0.99/lb Zn and estimated recoveries and smelter terms. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | The Mineral Resource estimate uses drill hole data available as of December 31, 2013. |
|--|----|---------------------------------------------------------------------------------------|

|  | 5. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
|--|----|----------------------------------------------------------------------------------------------|

|  | 6. | Totals may not add correctly due to rounding. |
|--|----|-----------------------------------------------|

----

|  | · | Updated Mineral Resource as described in this report |
|--|--------|------------------------------------------------------|

|  | · | Metal Prices |
|--|--------|--------------|

|  | · | Payment Terms for concentrate |
|--|--------|-------------------------------|

|  | · | Cost Escalation |
|--|--------|-----------------|

|  | · | New Gold and Silver Tax (0.5% Gross Revenue) |
|--|--------|----------------------------------------------|

|  | · | New Mining Tax (7.5% on EBITDA) |
|--|--------|---------------------------------|

|  | · | Increased Corporate Tax rate (30% from 28%) |
|--|--------|---------------------------------------------|

|  | · | Increase in cut-off grade used to report Mineral Resources |
|--|--------|------------------------------------------------------------|

|  | · | Continuing to advance the underground access ramp.  The budget in the 2012 PEA estimates this work to be $11.4 million with MAG's 44% share being $5 million. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | 10,000 m of drilling at the Valdecañas vein system to obtain a drill hole spacing no greater than 100 m in both the along-strike and up- and down-dip directions. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | 10,000 m of drilling for a property-wide exploration program including mapping, and drilling of new targets.  Key criteria should be known mineralization, lineaments, and alteration. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Item                                   |  US$ M  |
|---------------------------------------------------|-------------------|
|  Ramp advancement                       |  11.4   |
|  Drilling (~20,000 m)                   |  3.6    |
|  Interpretation, resource update, etc.  |  0.1    |
|  Geotechnical and Engineering Studies   |  1.2    |
|  Metallurgical and Mill Design Studies  |  1.1    |
|  Permitting and Environmental Work      |  0.9    |
|  Operating Costs / Office               |  1.2    |
|  Infrastructure Studies                 |  1.0    |
|  Sub-total                              |  20.5   |
|  Contingency (10%)                      |  2.1    |
|  Total                                  |  22.6   |

----

|  | · | a series of roads used to access drill sites, the decline and the mill site, |
|--|--------|------------------------------------------------------------------------------|

|  | · | an underground access portal, and the start of an underground access ramp, |
|--|--------|----------------------------------------------------------------------------|

|  | · | a surface explosive magazine, and |
|--|--------|-----------------------------------|

|  | · | interim power lines. |
|--|--------|----------------------|

----

----

----

|  | · | Down-hole benching with uncemented rockfill (modified Avoca). |
|--|--------|---------------------------------------------------------------|

|  | · | Long-hole open stoping ("LHOS") with cemented backfill. |
|--|--------|---------------------------------------------------------|

|  | · | Cut-and-fill with uncemented backfill. |
|--|--------|----------------------------------------|

|                                 | Gold      | Silver      | Lead     | Zinc     |
|--------------------------------------|----------------|------------------|---------------|---------------|
| Recoveries to lead concentrate  | 69%       | 81%         | 93%      | 8%       |
| Lead concentrate grades         | 30.3 g/t  | 10,265 g/t  | 43.0%    | 6.7%     |
| Recoveries to zinc concentrate  | 3%        | 7%          | 1%       | 87%      |
| Zinc concentrate grades         | 0.95 g/t  | 637 g/t     | 0.33%    | 52.0%    |
| Recovery to pyrite concentrate  | 19%       | 6%          | –  | –  |

----

|                                      |          | Grade    | Contained Metal |
|-------------------------------------------|---------------|----------|-----------------|
|                                      | MillionTonnes | Au (g/t) | Ag (g/t)        | Pb (%) | Zn (%) | Au (koz) | Ag (Moz) | Pb (Mlb) | Zn (Mlb) |
| Material derived from Indicated Resources | 5.3           | 1.88     | 667             | 2.1 | 4.1 | 318 | 113 | 242 | 472 |
| Material derived from Inferred Resources  | 4.9           | 1.46     | 408             | 1.6 | 2.9 | 230 |   65 | 169 | 311 |
| External dilution                         | 0.2           | 1.80     | 209             | 1.8 | 3.0 |     9 |     1 |     6 |   11 |
| Waste                                     | 3.0           | 0        | 0               | 0 | 0 | 0 | 0 | 0 | 0 |

----

|  | · | Mining: $43.92/t milled. |
|--|--------|--------------------------|

|  | · | Milling: $19.18/t milled. |
|--|--------|---------------------------|

|  | · | General and Administration: $3.46/t milled. |
|--|--------|---------------------------------------------|

|  | · | Silver price = $23.39/oz |
|--|--------|--------------------------|

|  | · | Gold price = $1,257/oz |
|--|--------|------------------------|

|  | · | Lead price = $0.95/lb |
|--|--------|-----------------------|

|  | · | Zinc price = $0.91/lb |
|--|--------|-----------------------|

----

| Item                                | Units  | Value  |
|------------------------------------------|-------------|-------------|
| Revenue                                  | $M          | 4,992       |
| Cash flow before tax                     | $M          | 3,013       |
| Tax                                      | $M          | 851         |
| Cash flow after tax                      | $M          | 2,162       |
| Discount rate                            | %           | 5%          |
| NPV before tax (5% discount rate)        | $M          | 1,762       |
| IRR before tax                           | %           | 54%         |
| NPV after tax (5% discount rate)         | $M          | 1,233       |
| IRR after tax                            | %           | 43%    |
| Peak debt                                | $M          | (302)       |
| Payback from Year 1 (approximate)        | yrs    | 5.6         |
| Payback from mill start-up (approximate) | yrs         | 2.1         |
| Project life from Year 1                 | yrs         | 19          |

----

|  Hole-IDValdecañasVeinWest ("W")East ("E") | From    | To      | Interval(m) (3) |  True Width(m) (2)(3) | Gold(g/t) (3) | Silver(g/t) (3) | Silver (opt)(3) | Lead (%) | Zinc (%) | Copper (%) |
|------------------------------------------------------|---------|---------|-----------------|----------------------------|---------------|-----------------|-----------------|----------|----------|------------|
| P1    (W)                                  | 941.80  | 955.30  | 13.50           | 11.69                      | 1.45          | 103             | 3.0             | 2.24     | 4.31     | 0.18       |
| Incl                                                 | 941.80  | 949.20  | 7.40            | 6.41                       | 1.96          | 169             | 4.9             | 3.60     | 7.03     | 0.26       |
| Incl                                                 | 943.00  | 947.20  | 4.20            | 3.64                       | 3.12          | 213             | 6.2             | 3.25     | 8.19     | 0.32       |
| P2    (W)                                  | 981.50  | 1010.15 | 28.65           | 22.06                      | 2.98          | 195             | 5.7             | 5.36     | 6.64     | 0.45       |
| Incl                                                 | 984.55  | 986.20  | 1.65            | 1.27                       | 0.61          | 267             | 7.8             | 11.75    | 13.67    | 0.21       |
| Incl                                                 | 992.65  | 994.90  | 2.25            | 1.73                       | 11.40         | 97              | 2.8             | 2.25     | 4.87     | 0.25       |
| Incl                                                 | 995.95  | 1008.95 | 13.00           | 10.01                      | 3.85          | 308             | 9.0             | 8.67     | 8.39     | 0.73       |
| Incl                                                 | 999.95  | 1002.95 | 3.00            | 2.31                       | 0.48          | 466             | 13.6            | 4.58     | 10.02    | 1.70       |
| Incl                                                 | 1006.95 | 1008.95 | 2.00            | 1.54                       | 14.55         | 403             | 11.8            | 16.33    | 16.50    | 0.22       |
| Incl                                                 | 1006.95 | 1007.95 | 1.00            | 0.77                       | 16.00         | 564             | 16.5            | 20.00    | 14.20    | 0.20       |
| or*                                                  | 1006.95 | 1007.95 | 1.00            | 0.77                       | 84.70         | 564             | 16.5            | 20.00    | 14.20    | 0.20       |
| P3-2    (E)                                | 761.50  | 764.25  | 2.75            | 2.12                       | 1.13          | 467             | 13.6            | 2.39     | 6.38     | 0.04       |
| and    (W)                                 | 940.20  | 974.55  | 34.35           | 26.45                      | 2.65          | 405             | 11.8            | 3.22     | 4.09     | 0.37       |
| Incl                                                 | 948.25  | 950.25  | 2.00            | 1.54                       | 9.45          | 172             | 5.0             | 7.78     | 6.78     | 0.30       |
| incl                                                 | 959.55  | 972.80  | 13.25           | 10.20                      | 4.94          | 919             | 26.8            | 5.25     | 4.87     | 0.62       |
| incl                                                 | 963.55  | 964.55  | 1.00            | 0.77                       | 16.00         | 770             | 22.5            | 7.98     | 18.35    | 0.62       |
| or*                                                  | 963.55  | 964.55  | 1.00            | 0.77                       | 161.5         | 770             | 22.5            | 7.98     | 18.35    | 0.62       |
| incl                                                 | 969.20  | 972.80  | 3.60            | 2.77                       | 8.26          | 2,804           | 81.8            | 4.99     | 2.66     | 1.04       |
| or*                                                  | 969.20  | 972.80  | 3.60            | 2.77                       | 8.26          | 8,751           | 255.2           | 4.99     | 2.66     | 1.04       |
| incl                                                 | 969.80  | 970.80  | 1.00            | 0.77                       | 11.50         | 6,000           | 175.0           | 8.28     | 2.90     | 2.18       |
| or*                                                  | 969.80  | 970.80  | 1.00            | 0.77                       | 11.50         | 27,411          | 799.5           | 8.28     | 2.90     | 2.18       |
| P4    (W)                                  | 1006.00 | 1051.20 | 45.20           | 32.09                      | 0.80          | 137             | 4.0             | 1.50     | 6.50     | 0.82       |
| incl                                                 | 1006.00 | 1023.25 | 17.25           | 12.25                      | 1.50          | 118             | 3.4             | 2.77     | 14.52    | 0.44       |
| incl                                                 | 1007.55 | 1017.30 | 9.75            | 6.92                       | 2.29          | 127             | 3.7             | 3.79     | 18.78    | 0.33       |
| incl                                                 | 1010.55 | 1014.25 | 3.70            | 2.63                       | 0.42          | 128             | 3.7             | 5.10     | 25.24    | 0.27       |
| incl                                                 | 1015.25 | 1017.30 | 2.05            | 1.46                       | 9.43          | 201             | 5.9             | 2.69     | 16.87    | 0.78       |
| incl                                                 | 1039.35 | 1050.20 | 10.85           | 7.70                       | 0.17          | 326             | 9.5             | 1.79     | 3.86     | 2.36       |
| incl                                                 | 1039.35 | 1042.35 | 3.00            | 2.13                       | 0.11          | 672             | 19.6            | 5.65     | 6.78     | 4.18       |

----

----

| Hole-ID |  Vein1 |  From |  To |  Interval | TrueWidth2 | Au (g/t) | Ag (g/t) | Ag (opt) | Pb (%) | Zn(%) | Cu(%) |
|---------|-------------|------------|----------|----------------|------------|----------|----------|----------|--------|-------|-------|
| P5      | V1W         | 1016.20    | 1033.15  | 16.95          | 15.37      | 1.59     | 110      | 3.20     | 2.85   | 7.21  | 0.30  |
| incl.   | V1W         | 1021.15    | 1033.15  | 12.00          | 10.88      | 2.14     | 140      | 4.07     | 3.51   | 8.83  | 0.41  |
| incl.   | V1W         | 1021.15    | 1029.95  | 8.80           | 7.98       | 2.77     | 163      | 4.77     | 4.18   | 10.24 | 0.42  |
| incl.   | V1W         | 1027.35    | 1029.95  | 2.60           | 2.36       | 5.99     | 211      | 6.14     | 4.29   | 12.73 | 0.47  |
| P6      | V1W         | 1057.65    | 1102.50  | 44.85          | 34.35      | 0.78     | 84       | 2.46     | 2.98   | 8.66  | 0.19  |
| incl.   | V1W         | 1072.60    | 1102.50  | 29.90          | 22.90      | 1.13     | 119      | 3.47     | 4.18   | 11.89 | 0.27  |
| incl.   | V1W         | 1077.75    | 1102.50  | 24.75          | 18.96      | 1.34     | 126      | 3.68     | 4.19   | 12.42 | 0.30  |
| incl.   | V1W         | 1094.40    | 1102.50  | 8.10           | 6.20       | 2.84     | 237      | 6.92     | 9.32   | 18.32 | 0.43  |
| incl.   | V1W         | 1096.80    | 1100.55  | 3.75           | 2.87       | 4.48     | 292      | 8.52     | 13.24  | 24.92 | 0.55  |
| incl.   | V1W         | 1099.55    | 1100.55  | 1.00           | 0.77       | 16.00    | 365      | 10.65    | 13.00  | 13.60 | 0.96  |
| P7      | V1W         | 1152.55    | 1163.95  | 11.40          | 8.73       | 0.03     | 49       | 1.42     | 0.61   | 2.69  | 0.19  |
| incl.   | V1W         | 1154.50    | 1157.20  | 2.70           | 2.07       | 0.06     | 117      | 3.41     | 2.06   | 6.88  | 0.50  |
| P8      | V1W         | 1031.95    | 1050.45  | 18.50          | 14.17      | 0.17     | 50       | 1.47     | 1.17   | 3.10  | 0.21  |
| incl.   | V1W         | 1035.50    | 1041.10  | 5.60           | 4.29       | 0.44     | 130      | 3.80     | 2.90   | 7.15  | 0.56  |
| P9      | V1W         | 1086.60    | 1090.00  | 3.40           | 2.10       | 0.04     | 12       | 0.34     | 1.21   | 0.69  | 0.01  |
| and     | SK          | 1178.90    | 1233.00  | 54.10          | 34.77      | 0.00     | 18       | 0.54     | 0.11   | 1.45  | 0.09  |
| P10     | V1W         | 1119.50    | 1127.30  | 7.80           | 5.98       | 1.17     | 87       | 2.53     | 0.87   | 6.40  | 0.34  |
| incl.   | V1W         | 1120.30    | 1124.45  | 4.15           | 3.18       | 2.09     | 149      | 4.34     | 1.47   | 11.51 | 0.58  |
| P11     | V1E         | 935.25     | 978.35   | 43.10          | 27.70      | 1.72     | 75       | 2.18     | 1.96   | 3.36  | 0.23  |
| incl.   | V1E         | 946.95     | 948.20   | 1.25           | 0.80       | 16.00    | 95       | 2.77     | 2.61   | 3.89  | 0.36  |
| incl.   | V1E         | 953.10     | 954.30   | 1.20           | 0.77       | 10.80    | 99       | 2.89     | 0.15   | 0.62  | 0.62  |
| incl.   | V1E         | 976.00     | 977.20   | 1.20           | 0.77       | 3.52     | 478      | 13.94    | 20.00  | 18.10 | 0.56  |
| P12     | VANT        | 1110.15    | 1116.05  | 5.90           | 4.52       | 0.44     | 136      | 3.98     | 1.94   | 1.92  | 0.68  |
| incl.   | VANT        | 1111.15    | 1113.35  | 2.20           | 1.68       | 0.38     | 260      | 7.59     | 4.93   | 2.33  | 1.62  |
| and     | V1E         | 1206.50    | 1220.25  | 13.75          | 10.53      | 0.01     | 113      | 3.29     | 0.71   | 3.98  | 0.54  |
| and     | SK          | 1220.25    | 1262.75  | 42.50          | NA         | 0.01     | 7        | 0.21     | 0.13   | 0.94  | 0.03  |
| P13     | VANT        | 1030.15    | 1040.55  | 10.40          | 6.68       | 2.69     | 105      | 3.06     | 3.59   | 10.79 | 0.23  |
| incl.   | VANT        | 1035.95    | 1039.05  | 3.10           | 1.99       | 5.05     | 127      | 3.72     | 2.48   | 14.31 | 0.34  |
| and     | V1E         | 1141.65    | 1149.00  | 7.35           | 5.63       | 0.16     | 147      | 4.27     | 1.07   | 3.28  | 0.40  |
| incl.   | V1E         | 1144.45    | 1145.45  | 1.00           | 0.77       | 0.07     | 387      | 11.29    | 5.92   | 10.15 | 1.58  |
| VM1     | VANT        | 718.65     | 722.00   | 3.35           | 3.42       | 0.74     | 40       | 1.15     | 0.76   | 6.55  | 0.06  |
| and     | V1E         | 792.50     | 798.75   | 6.25           | 5.12       | 1.04     | 130      | 3.81     | 1.15   | 3.00  | 0.64  |
| incl.   | V1E         | 793.90     | 794.60   | 0.70           | 0.57       | 4.02     | 435      | 12.69    | 0.29   | 7.94  | 2.34  |
| VM2     | VANT        | 779.45     | 780.60   | 1.15           | 0.80       | 0.12     | 350      | 10.21    | 7.79   | 15.45 | 0.67  |
| and     | V1E         | 889.75     | 926.20   | 36.45          | 29.85      | 0.50     | 235      | 6.87     | 4.76   | 5.79  | 0.99  |
| incl.   | V1E         | 896.50     | 905.30   | 8.80           | 7.21       | 0.66     | 475      | 13.86    | 1.91   | 5.27  | 2.38  |
| incl.   | V1E         | 904.40     | 905.30   | 0.90           | 0.74       | 0.03     | 1290     | 37.63    | 4.35   | 13.05 | 6.79  |
| incl.   | V1E         | 913.85     | 915.50   | 1.65           | 1.35       | 2.16     | 716      | 20.88    | 40.35  | 12.55 | 0.17  |
| VM3     | VANT        | 720.00     | 723.55   | 3.55           | 2.91       | 0.18     | 191      | 5.57     | 0.36   | 1.06  | 0.02  |
| and     | V1E         | 822.20     | 837.40   | 15.20          | 13.16      | 1.42     | 122      | 3.56     | 4.71   | 2.75  | 0.46  |
| incl.   | V1E         | 827.75     | 828.75   | 1.00           | 0.87       | 4.30     | 378      | 11.03    | 26.65  | 4.08  | 0.96  |

| 2 | True widths were estimated from cross sections and core angles.  Where indicated as "NA" the true width of the structure cannot be reasonably estimated. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | All silver assays over 6,000 g/t were capped at 6,000 g/t and all gold assays over 16 g/t were capped at 16 g/t, consistent with the capping used for the existing Indicated and Inferred Resources. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Hole-ID |  Vein1 |  From |  To |  Interval | TrueWidth2 | Au (g/t) | Ag (g/t) | Ag (opt) | Pb (%) | Zn(%) | Cu(%) |
|---------|-------------|------------|----------|----------------|------------|----------|----------|----------|--------|-------|-------|
| P17     | V1W         | 1242.00    | 1252.90  | 10.90          | 9.70       | 120      | 3.51     | 2.46     | 5.55   | 5.08  | 0.21  |
| Incl.   | V1W         | 1250.10    | 1250.75  | 0.65           | 0.57       | 379      | 11.05    | 4.89     | 16.2   | 13.65 | 0.8   |
| VM6     | VANT        | 783.50     | 790.60   | 7.10           | 5.60       | 177      | 5.15     | 7.36     | 2.39   | 6.31  | 0.12  |
| incl.   | VANT        | 784.50     | 788.50   | 4.00           | 3.15       | 283      | 8.25     | 12.62    | 3.62   | 8.42  | 0.17  |
| and     | V1E         | 961.20     | 972.55   | 11.35          | 5.20       | 333      | 9.72     | 16.87    | 4.47   | 3.77  | 1.04  |
| incl.   | V1E         | 963.65     | 966.80   | 3.15           | 1.44       | 854      | 24.91    | 54.67    | 3.21   | 2.72  | 2.28  |
| P18     | VANT        | 1110.10    | 1114.15  | 4.05           | 3.95       | 58       | 1.70     | 1.09     | 0.68   | 2.27  | 0.08  |
| and     | V1E         | 1174.75    | 1182.85  | 8.10           | 6.90       | 109      | 3.18     | 2.00     | 1.27   | 3.23  | 0.57  |
| P16     | VANT        | 889.60     | 892.10   | 2.50           | 2.30       | 69       | 2.00     | 0.17     | 2.25   | 11.66 | 0.08  |
| and     | V1E         | 1067.95    | 1069.30  | 1.35           | 1.10       | 13       | 0.38     | 0.12     | 0.16   | 4.43  | 0.07  |
| P19     | TBD         | 737.30     | 739.30   | 2.00           | 1.40       | 888      | 25.90    | 0.84     | 0.82   | 2.03  | 0.07  |
| and     | VANT        | 878.50     | 881.00   | 2.50           | 2.00       | 17       | 0.50     | 0.33     | 0.54   | 2.83  | 0.03  |
| and     | V1E         | 1012.65    | 1013.25  | 0.60           | 0.45       | 39       | 1.14     | 0.11     | 0.15   | 0.18  | 0.11  |

----

| Hole-ID |  Vein1 |  From |  To |  Interval | TrueWidth2 | Au (g/t) | Ag (g/t) | Ag (opt) | Pb (%) | Zn(%) | Cu(%) |
|---------|-------------|------------|----------|----------------|------------|----------|----------|----------|--------|-------|-------|
| RV3     | V1W         | 676.45     | 680.25   | 3.80           | 2.90       | 138      | 4.04     | 0.25     | 0.04   | 0.77  | 0.01  |
| RV2     | V1W         | 833.85     | 838.50   | 4.65           | 3.30       | 112      | 3.26     | 1.04     | 0.58   | 1.61  | 0.05  |
| and     | V2W         | 855.65     | 859.15   | 3.50           | 3.00       | 206      | 6.02     | 0.30     | 0.63   | 1.46  | 0.04  |
| RV1     | V1E         | 709.65     | 711.30   | 1.65           | 1.50       | 38       | 1.11     | 0.07     | 0.11   | 0.17  | 0.01  |
| and     | V1W         | 891.90     | 899.80   | 7.90           | 6.40       | 229      | 6.69     | 5.16     | 7.63   | 8.39  | 0.56  |
| and     | TBD         | 967.50     | 971.30   | 3.80           | 2.60       | 53       | 1.54     | 3.00     | 0.60   | 4.20  | 0.13  |
| RV5     | V1W         | 535.10     | 540.35   | 5.25           | 3.50       | 2009     | 58.59    | 6.94     | 0.36   | 0.74  | 0.03  |
| RV4     | TBD         | 411.70     | 418.15   | 6.45           | N/A        | 271      | 7.91     | 4.80     | 0.00   | 0.01  | 0.01  |
| and     | V1E         | 786.70     | 787.40   | 0.70           | 0.50       | 379      | 11.05    | 0.49     | 8.32   | 0.60  | 0.02  |
| and     | V1W         | 938.25     | 948.05   | 9.80           | 6.00       | 151      | 4.39     | 2.50     | 2.46   | 3.92  | 0.21  |
| VM10    | V1E         | 274.60     | 274.80   | 0.20           | 0.20       | 697      | 20.33    | 0.62     | 0.00   | 0.01  | 0.00  |
| and     | V1W         | 290.06     | 291.43   | 1.37           | 1.37       | 449      | 13.10    | 1.25     | 0.03   | 0.02  | 0.00  |
| RV6     | VANT        | 934.75     | 949.85   | 15.10          | 9.60       | 203      | 5.93     | 1.97     | 6.20   | 7.82  | 0.39  |
| incl.   | VANT        | 945.90     | 949.85   | 3.95           | 2.83       | 340      | 9.91     | 3.75     | 14.74  | 13.40 | 0.30  |
| and     | V1E         | 1011.40    | 1014.20  | 2.80           | 1.50       | 60       | 1.74     | 0.14     | 0.93   | 0.64  | 0.41  |
| P14     | VANT        | 1163.15    | 1164.40  | 1.25           | 1.25       | 23       | 0.67     | 0.42     | 0.44   | 3.38  | 0.03  |
| and     | V1E         | 1227.10    | 1229.90  | 2.80           | 2.40       | 60       | 1.76     | 0.43     | 0.28   | 1.40  | 0.38  |
| and     | V1W         | 1258.40    | 1261.20  | 2.80           | 2.30       | 4        | 0.11     | 0.11     | 0.02   | 0.04  | 0.00  |

----

----

| Month           | High (C$)  | Low (C$)  | Volume  |
|----------------------|----------------------|---------------------|--------------|
| January 2016         | 10.14                | 8.79                | 3,295,028    |
| February 2016   | 11.42                | 9.11                | 4,805,798    |
| March 2016      | 12.95                | 9.29                | 7,123,202    |
| April 2016      | 16.33                | 11.95               | 5,906,752    |
| May 2016        | 18.58                | 15.3                | 6,665,612    |
| June 2016       | 18.30                | 15.19               | 9,403,787    |
| July 2016       | 20.68                | 17.81               | 5,068,207    |
| August 2016     | 22.59                | 18.88               | 5,358,376    |
| September 2016  | 23.32                | 19.03               | 9,429,720    |
| October 2016    | 21.04                | 17.43               | 6,009,375    |
| November 2016   | 21.75                | 15.13               | 4,982,239    |
| December 2016   | 18.22                | 12.75               | 6,664,840    |
| Month           | High (US$)  | Low (US$)  | Volume  |
|----------------------|-----------------------|----------------------|--------------|
| January 2016         | 7.19                  | 6.12                 | 121,442      |
| February 2016   | 8.25                  | 6.52                 | 566,081      |
| March 2016      | 9.94                  | 6.93                 | 598,517      |
| April 2016      | 13.01                 | 9.12                 | 289,800      |
| May 2016        | 14.36                 | 11.76                | 342,897      |
| June 2016       | 14.34                 | 11.51                | 317,937      |
| July 2016       | 15.98                 | 12.72                | 267,746      |
| August 2016     | 17.42                 | 14.40                | 258,144      |
| September 2016  | 18.02                 | 14.49                | 284,455      |
| October 2016    | 15.99                 | 13.19                | 280,382      |
| November 2016   | 16.27                 | 11.15                | 374,980      |
| December 2016   | 13.73                 | 9.55                 | 494,202      |

----

| Date of Issuance   | Number of CommonShares Issued   | Price per CommonShare  (C$ unless noted othewise)   | Reason for Issuance   |
|------------------------------|----------------------------------------------------------|-----------------------------------------------------------------------------------|---------------------------------|
| January 5, 2016              | 6,000                                                    | 9.28                                                                              | Excercise of options            |
| February 18, 2016            | 6,000                                                    | 10.44                                                                             | Excercise of options            |
|  March 1, 2016          | 8,905,000                                           | US 7.30                                                                      | Financing                       |
|  March 4, 2016     | 1,335,750                                           | US 7.30                                                                      | Financing Over-Allotment        |
|  March 10, 2016    | 24,000                                              | 10.44                                                                        | Exercise of options             |
|  March 11, 2016    | 8,845                                               | 8.90                                                                         | Cashless exercise of options    |
|  March 11, 2016    | 3,085                                               | 10.44                                                                        | Exercise of options             |
|  March 16, 2016    | 6,000                                               | 10.04                                                                        | Exercise of options             |
|  March 22, 2016    | 7,000                                               | 9.15                                                                         | Exercise of options             |
|  March 22, 2016    | 41,053                                              | 10.44                                                                        | Cashless exercise of options    |
|  March 23, 2016    | 16,944                                              | 10.44                                                                        | Cashless exercise of options    |
| March 30, 2016               | 7,602                                                    | 10.44                                                                             | Cashless exercise of options    |
| April 5, 2016                | 50,000                                                   | 10.44                                                                             | Exercise of options             |
| April 7, 2016                | 6,500                                                    | 10.04                                                                             | Exercise of options             |
| April 12, 2016               | 5,000                                                    | 9.15                                                                              | Exercise of options             |
| April 12, 2016               | 10,000                                                   | 10.04                                                                             | Exercise of options             |
| April 19, 2016               | 6,250                                                    | 10.02                                                                             | Exercise of options             |
| April 20, 2016               | 5,000                                                    | 9.15                                                                              | Exercise of options             |
| April 20, 2016               | 10,000                                                   | 10.44                                                                             | Exercise of options             |
| April 21, 2016               | 26,369                                                   | 12.19                                                                             | Cashless exercise of options    |
| April 21, 2016               | 8,247                                                    | 9.16                                                                              | Cashless exercise of options    |
| April 25, 2016               | 7,692                                                    | 10.44                                                                             | Cashless exercise of options    |
| April 25, 2016               | 15,384                                                   | 10.44                                                                             | Cashless exercise of options    |
| May 2, 2016                  | 1,922                                                    | 10.02                                                                             | Cashless exercise of options    |
| May 2, 2016                  | 26,904                                                   | 10.44                                                                             | Cashless exercise of options    |
| May 6, 2016                  | 3,000                                                    | 9.15                                                                              | Exercise of options             |
| May 16, 2016                 | 6,000                                                    | 9.28                                                                              | Exercise of options             |
| May 18, 2016                 | 17,025                                                   | 5.86                                                                              | Cashless exercise of options    |
| May 18, 2016                 | 5,773                                                    | 9.28                                                                              | Cashless exercise of options    |
| May 19, 2016                 | 60,000                                                   | 5.86                                                                              | Exercise of options             |
| May 24, 2016                 | 48,076                                                   | 12.19                                                                             | Cashless exercise of options    |

----

| Date of Issuance   | Number of CommonShares Issued   | Price per CommonShare(C$ unless noted othewise)   | Reason for Issuance   |
|------------------------------|-------------------------------------------|-------------------------------------------------------------|---------------------------------|

| June 6, 2016       | 41,557 | 9.15 / 5.86 | Cashless exercise of options |
|--------------------|--------|-------------|------------------------------|
| June 10, 2016      | 15,000 | 9.15        | Exercise of options          |
| June 10, 2016      | 36,446 | 9.15        | Cashless exercise of options |
| July 4, 2016       | 10,000 | 9.15        | Exercise of options          |
| July 5, 2016       | 25,000 | 9.61        | inducement opt exercise      |
| July 6, 2016       | 2,000  | 9.15        | Excercise of options         |
| July 6, 2016       | 1,855  | 9.15        | Excercise of options         |
| July 6, 2016       | 25,000 | 9.15        | Excercise of options         |
| July 11, 2016      | 10,000 | 9.28        | Excercise of options         |
| July 13, 2016      | 6,500  | 9.28        | Excercise of options         |
| July 13, 2016      | 5,000  | 9.15        | Excercise of options         |
| July 13, 2016      | 40,000 | 9.15        | Excercise of options         |
| July 21, 2016      | 1,000  | 10.04       | RSU exercise                 |
| July 21, 2016      | 30,000 | 9.15        | Excercise of options         |
| July 26, 2016      | 1,000  | 10.04       | RSU exercise                 |
| July 27, 2016      | 15,000 | 5.86        | Excercise of options         |
| August 9, 2016     | 20,000 | 9.15        | Excercise of options         |
| September 2, 2016  | 7,500  | 9.28        | Excercise of options         |
| September 2, 2016  | 40,000 | 9.15        | Excercise of options         |
| September 2, 2016  | 50,000 | 9.15        | Excercise of options         |
| September 6, 2016  | 50,000 | 10.04       | Excercise of options         |
| September 7, 2016  | 5,000  | 9.28        | Excercise of options         |
| September 7, 2016  | 5,000  | 5.86        | Excercise of options         |
| September 16, 2016 | 686    | 10.04       | RSU exercise                 |
| September 16, 2016 | 314    | 10.02       | RSU exercise                 |
| September 21, 2016 | 5,000  | 10.02       | Excercise of options         |
| September 22, 2016 | 12,747 | 9.16        | Cashless exercise of options |
| September 26, 2016 | 30,000 | 9.15        | Excercise of options         |
| September 26, 2016 | 40,000 | 5.86        | Excercise of options         |
| November 2, 2016   | 10,000 | 5.86        | Excercise of options         |
| November 2, 2016   | 10,000 | 9.15        | Excercise of options         |
| November 7, 2016   | 1,100  | 9.28        | Excercise of options         |
| December 12, 2016  | 1,000  | 10.02       | RSU exercise                 |
| December 12, 2016  | 4,980  | 10.04       | RSU exercise                 |
| December 22, 2016  | 11,952 | 10.04       | RSU exercise                 |
| December 22, 2016  | 4,990  | 10.02       | RSU exercise                 |
| December 22, 2016  | 8,081  | 9.28        | PSU exercise                 |
| December 22, 2016  | 1,996  | 10.02       | RSU exercise                 |
| December 22, 2016  | 2,693  | 9.28        | PSU exercise                 |

----

| Date of Issuance         | Number of Stock Options  Issued   | Exercise Price(C$)   | Reason forIssuance   |
|------------------------------------|-----------------------------------------------------------------|-------------------------------------|-------------------------------------|
|  December 6, 2016   | 227,773                                                    | 17.55                          | 2017 option grant              |
| Date of Grant            | Number Granted   | Share Unit Value(C$)   | Reason for Issuance   |
|------------------------------------|---------------------------------|--------------------------------------------|-------------------------------------------|
|  December 6, 2016   | 69,085 (1) (PSU)                | 17.55                                 |  2017 grant                     |
|                               |                                              |                           |                                                           |
|------------------------------------|---------------------------------------------------|--------------------------------|----------------------------------------------------------------|
| Date of Grant            | Number of DSUs Granted   | DSU Value(C$)   | Reason for Issuance                        |
|  March 31, 2016     | 3,254                                        | 12.48                     |  Elected DSUs for director fees  |
|  June 15, 2016           | 63,287                                       | 16.59                     |  2016 grant                                               |
| June 30, 2016                      | 2,151                                             | 16.09                          | Elected DSUs for director fees                                 |
|  September 30, 2016      | 1,663                                        | 19.77                     |  Elected DSUs for director fees                      |
|  December 31, 2016  | 2,409                                        | 14.78                     |  Elected DSUs for director fees                      |
| Name & Position(1)                                                                  | Principal Occupation or Employment during the past 5 years                                                                                                                                                                               | No. of Shares(5)(6) | No. of Options/priceDSU, RSU, PSU(11)                                                                  |
|-----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------------------------------------------------------------------------------------------------------|
| GEORGE N. PASPALAS (8)President, CEO,Director (since Oct 15/13)British Columbia, Canada | President and CEO of the Company since Oct 15, 2013.  Mr. Paspalas was President and Chief Executive Officer of Aurizon Mines from Aug 2011 to Jun 2013. Mr. Paspalas is also a lead director of Pretivm Resources Inc. since 2013. |  25,000        | Options 500,000/$5.35125,000/$10.0462,500/$10.02125,000/$9.2864,102/$17.55RSU & PSU78,594DSU39,886 |

----

| Name & Position(1) | Principal Occupation or Employment during the past 5 years | No. of Shares(5)(6) | No. of Options/priceDSU, RSU, PSU(11) |
|------------------------|------------------------------------------------------------|---------------------|---------------------------------------|

| DANIEL T. MACINNIS(9)Director (since Feb 1/05)British Columbia, Canada                                | Founder and President of MacXplore Consulting Services Ltd.  President and CEO of the Company from Feb 2005 to Oct 2013.  Mr. MacInnis was also a director of MAX Resources Corp. from 2008 to 2015 and is currently a director of Balmoral Resources Inc. since 2014.                                                                                                                                                                                                                                                                      |  318,137      | Options150,000/$5.86DSU39,547                  |
|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------------------------------------------|
| JONATHAN A. RUBENSTEIN(4)Director (Since Feb 26/07)Chairman (Since Oct 12/07)British Columbia, Canada | Professional Director. Currently also a director of: Detour Gold (since 2009); Eldorado Gold (since 2009); Roxgold (since 2012); and Dalradian Resources Inc. (since 2013). Formerly a director of: Troon Ventures (2009 to 2014); and Rio Novo Gold (2010 to 2012). Formerly a lawyer in private practice, with focus on corporate and securities law.                                                                                                                                                                                               |  99,923  | DSU57,059                                 |
| RICHARD M. COLTERJOHN(2)(3)Director (since Oct 16/07)Ontario, Canada                                  | Managing Partner at Glencoban Capital Management Inc., a merchant banking firm, since 2002. Mr. Colterjohn currently serves as a Chairman and Director of AuRico Metals Inc. (since 2015); Director of Roxgold Inc. (since 2012); and Director of Harte Gold Inc. (since Feb 2017). He served as a Director of AuRico Gold Inc. (from 2010 to 2015).   Formerly Mr. Colterjohn was an Investment Banker with a focus on the mining sector.                                                                                                  |  26,406       | DSU39,547                                 |
| DEREK C. WHITE(3)(9)Director (since Oct 16/07)British Columbia, Canada                                | Principal, Traxys Capital Partners LLP from Oct. 2015 to present, a private equity group focused on mining and minerals sectors.  Mr. White was formerly President & CEO of KGHM International Ltd. from 2012 to 2015. Mr. White holds an undergraduate degree in Geological Engineering and is a Chartered Accountant.  Mr. White was also a director of Laurentian Goldfields Ltd. from 2008 to 2013 and a director of Magellan Minerals Ltd. from 2006 to May 2016.  Mr. White currently serves as a director of Orca Gold Inc. |  12,059       | Options10,000/$9.1510,000/$5.86DSU45,989  |
| PETER D. BARNES(2)(4)Director (since Oct 5/12)British Columbia, Canada                           | Professional Director and a Fellow of the Institute of Chartered Accountants of BC. Co-founder of Silver Wheaton Corp in 2004 and CEO from 2006 to 2011. Executive Vice President and CFO of Goldcorp Inc. from 2005 to 2006. Director of Richmont Mines Inc. and several private companies. Member of the Institute of Corporate Directors and was a member of the Silver Institute's Board of Directors from 2009 to 2011.                                                                                                                          |  73,076       | Options60,000/$5.86DSU39,547         |

----

| Name & Position(1) | Principal Occupation or Employment during the past 5 years | No. of Shares(5)(6) | No. of Options/priceDSU, RSU, PSU(11) |
|------------------------|------------------------------------------------------------|---------------------|---------------------------------------|

| RICHARD P. CLARK(3)(4)(8)Director (since Oct 5/12)British Columbia, Canada  | President and CEO of Orca Gold Inc. from Aug 2016 to present. Mr. Clark is a lawyer with a geological background. Mr. Clark has been a senior executive with the Lundin Group of companies for past 17 years. Formerly President, CEO and director of RB Energy Inc. (formerly Sirocco Mining Inc.) from 2011 to 2015. He currently serves as director of Lucara Diamond Corp. and a director of Orca Gold Inc.                                                                                                                                                                                                                                                                                                                                            |  40,000     | Options60,000/$5.86DSU51,549                                                         |
|----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------|
| JILL LEVERSAGE(2)(9)Director (since Dec 22/14)British Columbia, Canada           | Ms. Leversage is a Chartered Business Valuator and a Fellow of the Institute of Chartered Accountants of BC. From 2013 to 2015, Managing Director at Highland West Capital Ltd., and as a financial consultant from 2012 to 2013. From 2002 to 2012 served as Managing Director, Corporate & Investment Banking for TD Securities Inc.  Ms. Leversage also currently serves as a Director and Chair of the Audit Committee for the Capital Markets Authority Implementation Organization and as a Director and Chair of the HR and Governance Committee of Partnerships BC.  She is a former director of Eagle Star Minerals Corp. from 2011 to 2013, Delta Gold Corporation from 2012 to 2015, and Catalyst Paper Corporation 2013 to 2017. |  6,750      | DSU60,181                                                                                      |
| PETER K. MEGAW(8)(10)Chief Exploration Officer (June 23/14)Arizona, USA     | President of IMDEX and co-founder of Minera Cascabel S.A. DE C.V. since 1988, a geological consulting company; consulting geologist for the Company since its inception in 2003. From 2003 to 2014 he served as a director of the Company. Dr. Megaw was formerly also a director of Candente Gold Corp. from 2009 to 2015 and is currently a director of Minaurum Gold Corp.                                                                                                                                                                                                                                                                                                                                                                              |  351,854(7) | Options37,500/$10.0275,000/$9.2855,555/$17.55RSU & PSU52,126                               |
| LARRY TADDEI(8)Chief Financial OfficerBritish Columbia, Canada              | CFO of the Company since June 22, 2010.  Mr. Taddei has been a Chartered Professional Accountant ("CPA, CA", formerly Chartered Accountant) since 1990.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  87,866     | Options90,000/$5.8660,000/10.0437,500/$10.0275,000/$9.2835,042/$17.55RSU & PSU22,257  |

----

| Name & Position(1) | Principal Occupation or Employment during the past 5 years | No. of Shares(5)(6) | No. of Options/priceDSU, RSU, PSU(11) |
|------------------------|------------------------------------------------------------|---------------------|---------------------------------------|

| MICHAEL J. CURLOOKVice President, Investor Relations and CommunicationsBritish Columbia, Canada | Vice President, Investor Relations and Communications of the Company since March 4, 2013. Previously Head of Investor Relations and Communications of Great Basin Gold Ltd from 2008 to 2012. | 29,669 | Options75,000/$9.6125,000/$10.0415,000/$10.0230,000/$9.2813,675/$17.55RSU & PSU8,250 |
|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
| JODY L. HARRISCorporate SecretaryBritish Columbia, Canada                                  | Corporate Secretary of the Company since May 8, 2007.                                                                                                                                         | 5,747  | Options25,000/$5.8617,500/$10.0410,000/$10.0220,000/$9.288,974/$17.55RSU & PSU7,444  |

----

----

----

|                           |   | Year endedDecember 31, 2016US$ |    |   | Year endedDecember 31, 2015US$ |   |
|--------------------------------|--------|--------------------------------|---------|--------|--------------------------------|--------|
|  Audit Fees          |   | $                              | 205,038 |   |                           | $      | 169,158 |   |
|  Audit-Related Fees  |   |                           | 84,574  |   |                           |   | 30,250 |   |
|  Tax Fees            |   |                           | 105,808 |   |                           |   | 69,761 |   |
|  All Other Fees      |   |                           | 0       |   |                           |   | 0 |   |
|  Total               |   | $                              | 395,420 |   |                           | $      | 269,169 |   |

----

----

|  | (a) | any penalties or sanctions imposed against the Company by a court relating to securities legislation or by a securities regulatory authority during the financial year ended December 31, 2016; or |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | any other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor in making an investment decision; or |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | settlement agreements the Company entered into before a court relating to securities legislation or with a securities regulatory authority during the financial year ended December 31, 2016. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| YEAR ENDED DECEMBER 31, 2016                                 | Cascabel & IMDEX                                | IMDEX related to Dr. Megaw                                    | US$ Total                                                           |
|--------------------------------------------------------------|-----------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------------|
| General consulting, marketing, investor relations            | 67,125                                              | 345,700                                                       | 412,825                                                             |
| Exploration management, field costs and travel reimbursement | 619,162                                             | 59,018                                                        | 678,180                                                             |
| Total                                                        | 686,287                                             | 404,718                                                       | 1,091,005                                                           |
| YEAR ENDED DECEMBER 31, 2015                                 | Cascabel & IMDEX                                | IMDEX/Peter                                                   | US$ Total                                                           |
| General consulting, marketing, investor relations            | 102,188                                             | 398,400                                                       |           500,588 |
| Exploration management, field costs and travel reimbursement |        1,019,947 |          112,416 |        1,132,363                 |
| Total                                                        |  $   1,122,135                       |  $     510,816                            |  $   1,632,951                                       |

----

|  | · | the Shareholders Agreement dated October 10, 2005 between the Company, Peñoles and others relating to Minera Juanicipio. See "Description of the Business – General – Economic Dependence", above. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | 1. | General |
|--|----|---------|

|  | 2. | Members |
|--|----|---------|

----

|  | 3. | Duties |
|--|----|--------|

|  | · | Gain an understanding of whether internal control recommendations made by external auditors have been implemented by management. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | · | Gain an understanding of the current areas of greatest financial risk and whether management is managing these effectively. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------|

|  | · | Review significant accounting and reporting issues, including recent professional and regulatory pronouncements, and understand their impact on the financial statements. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review any legal matters which could significantly impact the financial statements as reported on by the Corporation's counsel and engage outside independent counsel and other advisors whenever as deemed necessary by the Committee to carry out its duties. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review the Corporation's annual and quarterly financial statements, including Management's Discussion and Analysis with respect thereto, and all annual and interim earnings press releases, prior to public dissemination, including any certification, report, opinion or review rendered by the external auditors and determine whether they are complete and consistent with the information known to Committee members; determine that the auditors are satisfied that the financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). Pay particular attention to complex and/or unusual transactions such as those involving derivative instruments and consider the adequacy of disclosure thereof. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Focus on judgmental areas, for example those involving valuation of assets and liabilities and other commitments and contingencies. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review audit issues related to the Corporation's material associated and affiliated companies that may have a significant impact on the Corporation's equity investment. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Meet with management and the external auditors to review the annual financial statements and the results of the audit. |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | Evaluate the fairness of the interim financial statements and related disclosures including the associated Management's Discussion and Analysis, and obtain explanations from management on whether: |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | actual financial results for the interim period varied significantly from budgeted or projected results; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | generally accepted accounting principles have been consistently applied; |
|--|--------|--------------------------------------------------------------------------|

|  | · | there are any actual or proposed changes in accounting or financial reporting practices; or |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | there are any significant or unusual events or transactions which require disclosure and, if so, consider the adequacy of that disclosure. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Review the external auditors' proposed audit scope and approach and ensure no unjustifiable restriction or limitations have been placed on the scope. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Recommend to the Board an external auditor to be nominated for appointment by the Corporation's shareholders.  Subject to the appointment of the Corporation's external auditor by the Corporation's shareholders, the Committee will be directly responsible for the appointment, compensation, retention and oversight of the work of external auditor engaged for the purpose of preparing or issuing an auditor's report or performing other audit, review or attest services for the Corporation, including the resolution of disagreements between management and the external auditor regarding financial reporting.  The Corporation's external auditor shall report directly to the Committee. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review with the Corporation's management, on a regular basis, the performance of the external auditors, the terms of the external auditor's engagement, accountability and experience. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The Committee Chair will pre-approve all non-audit services to be provided to the Corporation or its subsidiary entities by the external auditor. The decisions of the Committee Chair relating to the pre-approval of non-audit services must be presented to the full Committee at its next scheduled Committee meeting. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Consider at least annually the independence of the external auditors, including reviewing the range of services provided in the context of all consulting services obtained by the Corporation, including: |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | insuring receipt from the independent auditor of a formal written statement delineating all relationships between the independent auditor and the Company, consistent with the Independence Standards Board Standard No. 1 and related Canadian regulatory body standards; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | considering and discussing with the independent auditor any relationships or services, including non-audit services, that may impact the objectivity and independence of the independent auditor; and |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | as necessary, taking, or recommending that the Board take, appropriate action to oversee the independence of the independent auditor. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Ensure that adequate procedures are in place for the review of the Corporation's public disclosure of financial information extracted or derived from the Corporation's financial statements, other than the public disclosure contained in the Corporation's financial statements, Management's Discussion and Analysis and annual and interim earnings press releases; and must periodically assess the adequacy of those procedures. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review any significant disagreement among management and the external auditors in connection with the preparation of the financial statements. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review and approve the Corporation's hiring policies regarding partners, employees and former partners and employees of the present and former external auditors of the Corporation. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Establish a procedure for: |
|--|--------|----------------------------|

|  | · | the confidential, anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the receipt, retention and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing matters. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Meet separately with the external auditors to discuss any matters that the committee or auditors believe should be discussed privately in the absence of management. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Endeavour to cause the receipt and discussion on a timely basis of any significant findings and recommendations made by the external auditors. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Ensure that the Board is aware of matters which may significantly impact the financial condition or affairs of the business. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review and oversee all related party transactions. |
|--|--------|----------------------------------------------------|

|  | · | Perform other functions as requested by the Board. |
|--|--------|----------------------------------------------------|

|  | · | If necessary, institute special investigations and, if appropriate, hire special counsel or experts to assist, and set the compensation to be paid to such special counsel or other experts. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review and re-assess annually the adequacy of this Charter and recommend updates to this charter; receive approval of changes from the Board. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | With regard to the Corporation's internal control procedures, the Committee is responsible to: |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | review the appropriateness and effectiveness of the Corporation's policies and business practices which impact on the financial integrity of the Corporation, including those related to internal auditing, insurance, accounting, information services and systems and financial controls, management reporting and risk management; and |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | review compliance under the Corporation's business conduct and ethics policies and to periodically review these policies and recommend to the Board changes which the Committee may deem appropriate; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | review any unresolved issues between management and the external auditors that could affect the financial reporting or internal controls of the Corporation; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | periodically review the Corporation's financial and auditing procedures and the extent to which recommendations made by the internal audit staff or by the external auditors have been implemented. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Comply with Rule 10A – 3(b)(2), (3), (4) and (5) under the Securities Exchange Act of 1934. |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | The Committee Chair will participate in shareholder engagement in regards to matters arising in respect to the Committee's responsibilities. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Review and approve financial summaries and disclosure made in accordance with the Extractive Sector Transparency Measures Act. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

----

|  | 4. | Chair |
|--|----|-------|

|  | 5. | Meetings |
|--|----|----------|

|  | 6. | Quorum |
|--|----|--------|

|  | 7. | Removal and Vacancy |
|--|----|---------------------|

|  | 8. | Authority |
|--|----|-----------|

|  | · | engage independent counsel and other advisors as it determines necessary to carry out its duties. |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | set and pay the compensation for any advisors employed by the Committee; and |
|--|--------|------------------------------------------------------------------------------|

|  | · | communicate directly with the internal and external auditors. |
|--|--------|---------------------------------------------------------------|

----

|  | 9. | Secretary and Minutes |
|--|----|-----------------------|

|  | 10. | Funding |
|--|-----|---------|

----

----

----

----

----