---







ANNUAL INFORMATION FORM

For the year ended December 31, 2014

Dated March 11, 2015

---

| | Annual Information Form for the
    
    Year Ended December 31, 2014
| | ---------------------------------------------------------------------

TABLE OF CONTENTS

|                                                                 | Page
|---------------------------------------------------------------- | ----
|INTERPRETATION AND
      OTHER INFORMATION                       | 1   
|Definitions                                                      | 1   
|Glossary of Technical Terms                                      | 3   
|Currency
      Information                                       | 5   
|Forward-Looking Statements                                       | 5   
|Disclosure
      Standards                                       | 6   
|CORPORATE
      STRUCTURE                                        | 7   
|Incorporation
      and Offices                                  | 7   
|GENERAL DEVELOPMENT
      OF OUR BUSINESS                        | 7   
|Development
      of Our Business                                | 7   
|Intercorporate Relationships                                     | 10  
|The
      Transaction Agreement and Shareholders Agreement      | 10  
|Legal                                                            | 11  
|DESCRIPTION OF OUR BUSINESS                                      | 12  
|Overview of Our Business and Strategy                            | 12  
|The Silver
      Industry                                        | 12  
|Product                                                          | 13  
|Specialized
      Skill and Knowledge                            | 13  
|Employees                                                        | 14  
|Foreign
      Operations                                         | 14  
|Competitive Conditions                                           | 14  
|Cycles                                                           | 14  
|Environmental and Social Activities                              | 14  
|Doing
      Business In Guatemala                                | 17  
|The Escobal Mine                                                 | 27  
|DIVIDENDS AND DISTRIBUTIONS                                      | 36  
|DESCRIPTION OF
      CAPITAL STRUCTURE                           | 36  
|MARKET FOR SECURITIES                                            | 36  
|Trading History on the TSX                                       | 36  
|Trading
      History on the NYSE                                | 37  
|PRIOR SALES                                                      | 37  
|DIRECTORS AND EXECUTIVE OFFICERS                                 | 38  
|Directors and Executive Officers                                 | 38  
|Cease Trade
      Orders, Bankruptcies, Penalties or Sanctions   | 40  
|Conflicts of Interest                                            | 41  
|INTEREST OF MANAGEMENT AND OTHERS IN
      MATERIAL TRANSACTIONS | 41  
|TRANSFER AGENTS AND
      REGISTRAR                              | 41  
|MATERIAL CONTRACTS                                               | 41  
|INTERESTS OF
      EXPERTS                                       | 42  

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

|SELECTED CONSOLIDATED
      FINANCIAL INFORMATION                               | 42
|------------------------------------------------------------------------------- | --
|ADDITIONAL CORPORATE AND FINANCIAL
      INFORMATION                            | 42
|INFORMATION
      CONCERNING THE COMPANYS AUDIT COMMITTEE AND EXTERNAL AUDITOR | 43
|The Audit
      Committees Duties and Charter                                  | 43
|Composition of the Audit Committee                                              | 43
|Relevant
      Education and Experience                                         | 43
|Pre-Approval Policies and Procedures                                            | 43
|External
      Auditor and Other Professional Service Fees                      | 44
|Auditor Partner Rotation                                                        | 44
|APPENDIX A  TAHOE AUDIT COMMITTEE
      CHARTER                                | 45
|Third Amended Audit Committee Charter                                           | 45

| | Tahoe Resources Inc.
| | --------------------

---

INTERPRETATION AND OTHER INFORMATION

|DEFINITIONS
|-----------

In this Annual Information Form (AIF), the following words
and phrases have the following meanings unless the context otherwise requires:

Acquisition means the acquisition by the Company of
the Escobal mine Assets in accordance with the terms and conditions of the
Transaction Agreement;

Arrangement means the means the arrangement involving
the Company and Rio Alto under the provisions of the BCA, on the terms and
conditions set forth in the plan of arrangement, subject to any amendments or
variations thereto made in accordance with the Arrangement Agreement, the
applicable provisions of the plan of arrangement or made at the direction of the
court in the final order;

Arrangement Agreement means the arrangement agreement
dated February 9, 2015 between the Company and Rio Alto with respect to the
Arrangement, as amended or supplemented from time to time;

Audit Committee means the Audit Committee of the
Board;

Award means an award of Deferred Shares or Restricted
Shares under the Share Option and Share Incentive Plan;

BCA means the Business Corporations Act
(British Columbia), as amended, including all regulations promulgated
thereunder;

Board means the board of directors of the Company;

Blattman Brothers means Blattman Brothers Consulting
Inc., LLC, an independent engineering consulting firm;

Company means Tahoe Resources Inc. together with,
unless the context indicates otherwise, all of its subsidiaries;

Compensation Committee means the Compensation
Committee of the Board;

CSA means the Canadian Securities Administrators;

Deferred Shares means Shares subject to Awards that
will be issued upon the passage of time, continued employment of the recipient
by the Company or upon such other terms and conditions as the Compensation
Committee of the Company may determine in its discretion;

Entre Mares means Entre Mares de Guatemala, S.A.;

ERHL means Escobal Resources Holdings Limited, a
company incorporated under the laws of Barbados which is owned by the Company;

Escobal Exploitation license means the exploitation
license (concession) on which the Escobal vein and Escobal mine are located.

Escobal Feasibility Study or November 2014 Feasibility Study means the
independent technical report entitled Escobal Mine Guatemala NI 43-101
Feasibility Study  Southeastern Guatemala issued on November 5, 2014, with
effective dates of January 23, 2014 for the Escobal Mineral Resource and July 1,
2014 for the Escobal Mineral Reserve. The November 2014 Feasibility Study was
prepared under the guidance of Mr. Conrad Huss, P.E., of M3 Engineering &
Technology Corporation, together with Mr. Daniel Roth, P.E., of M3, Mr. Thomas
L. Drielick, P.E., of M3, Mr. Paul Tietz, C.P.G., of Mine Development
Associates, an independent mining consulting firm, Mr. Matthew Blattman, P.E.,
of Blattman Brothers Consulting, LLC, an independent mining consulting firm and
Mr. Jack Caldwell, P.E., of Robertson GeoConsultants Inc., an independent mining
consulting firm, all Qualified Persons under NI 43-101;

Escobal mine means the mining project comprised of the
Escobal mine Assets;

Escobal mine Assets means those assets exclusively
used in or related to the Escobal mine;

Escobal vein means the zone of mineralization on the
Escobal exploitation license that contains the Mineral Resources and Mineral
Reserves for the Escobal mine;

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

GHBL means Goldcorp Holdings (Barbados) Ltd., a
Barbados company that is an indirect wholly-owned subsidiary of Goldcorp;

GHL means Guatemala Holdings Ltd., a Cayman Islands
company that is an indirect wholly-owned subsidiary of Goldcorp;

Goldcorp means Goldcorp Inc., a Canadian public
company and where the context requires, includes affiliates of Goldcorp Inc.;

MARN means the Ministry of Environment and Natural
Resources of Guatemala;

MDA means Mine Development Associates, an independent
mining consulting firm;

MEM means the Ministry of Energy and Mines of
Guatemala;

M3 means M3 Engineering & Technology Corporation,
an independent mining and engineering consulting firm;

Minera San Rafael or MSRmeans Minera
San Rafael, S.A., a Guatemala corporation that is owned by ERHL and Tahoe Swiss
AG, a Swiss corporation that is owned by the Company;

NI 43-101 means National Instrument 43-101 
Standards of Disclosure for Mineral Projects, of the CSA;

NI 52-110 means National Instrument 52-110  Audit
Committees, of the CSA;

NYSE means the New York Stock Exchange;

Oasis License means the original exploration license
on which the Escobal vein is located; a portion of the Oasis licence was
subsequently converted to the Escobal exploitation license in April 2013;

Persons includes an individual, partnership,
association, body corporate, trustee, executor, administrator or legal
representative;

Plan of Arrangement or Arrangement means the
potential business combination between the Company and Rio Alto expected to
close in 2015;

Restricted Shares means Shares subject to Awards that
are issued but which will only be delivered to the holder of the Award upon the
passage of time, continued employment of the holder by the Company or upon such
other terms and conditions as the Compensation Committee of the Company may
determine in its discretion;

Rio Alto means Rio Alto Mining Limited, a Canadian
company with mineral interests in Peru, and all Rio Alto Mining Limited
subsidiaries involved in the Plan of Arrangement with the Company in 2015;

Robertson means Robertson GeoConsultants Inc., an
independent engineering consulting firm;

SEC means the Securities and Exchange Commission of
the United States of America;

SEDAR means the System for Electronic Document
Analysis and Retrieval, accessible through the internet at www.sedar.com;

Shareholders Agreement means the shareholders
agreement between the Company and affiliates of Goldcorp and entered into
pursuant to the terms of the Transaction Agreement, dated as of June 8, 2010 and
as amended and restated between the Company and Goldcorp on October 12, 2010,
April 19, 2011 and February 9, 2015;

Shares means common shares without par value of the
Company;

Share Option and Incentive Share Plan means the
Companys Share Option and Incentive Share Plan;

Transaction Agreement means the definitive purchase
and sale agreement made as of May 3, 2010, as amended on October 12, 2010, among
the Company and the Vendors relating to the acquisition by the Company of the
Escobal mine Assets and including any amending agreement or instrument
supplementary or auxiliary thereto;

TSX means the Toronto Stock Exchange; and

Vendors means GHBL and GHL.

| | Tahoe Resources Inc.
| | --------------------

---

|GLOSSARY OF TECHNICAL TERMS          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Ag:                                  | Silver.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Au:                                  | Gold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Contained Ounces:                    | The troy ounces of metal in resources or
      reserves obtained by multiplying tonnage by grade.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Cut-off Grade:                       | The grade below which mineralized material is
      considered uneconomic.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Development:                         | The preparation of a mineable deposit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|g/tonne or g/t:                      | Grams per metric tonne; 31.10348 grams is equal
      to one troy ounce.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Indicated Mineral
      Resource(1): | That part of a Mineral Resource for which quantity, grade
      or quality, densities, shape and physical characteristics can be estimated
      with confidence sufficient to allow the appropriate application of
      technical and economic parameters, to support mine planning and evaluation
      of the economic viability of the deposit. The estimate is based on
      detailed and reliable exploration and testing information gathered through
      appropriate techniques from locations such as outcrops, trenches, pits,
      workings and drill holes that are spaced closely enough for geological and
      grade continuity to be reasonably assumed.                                           
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Inferred Mineral
      Resource(1):  | That part of a Mineral Resource for which quantity and
      grade or quality can be estimated on the basis of geological evidence and
      limited sampling and reasonably assumed, but not verified, geological and
      grade continuity. The estimate is based on limited information and
      sampling gathered through appropriate techniques from locations such as
      outcrops, trenches, pits, workings and drill holes.                                                                                                                                                                                                                                                                                  
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|IRR:                                 | Internal Rate of Return.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|km:                                  | Kilometre.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|km2:                                 | Square Kilometre.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Kv:                                  | Kilovolt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Measured Mineral
      Resource(1):  | That part of a Mineral Resource for which quantity, grade
      or quality, densities, shape and physical characteristics are so well
      established that they can be estimated with confidence sufficient to allow
      the appropriate application of technical and economic parameters, to
      support production planning and evaluation of the economic viability of
      the deposit. The estimate is based on detailed and reliable exploration,
      sampling and testing information gathered through appropriate techniques
      from locations such as outcrops, trenches, pits, workings and drill holes
      that are spaced closely enough to confirm both geological and grade
      continuity.
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Mineral Reserve:                     | The economically mineable part of a Measured or Indicated
      Mineral Resource demonstrated by at least a Preliminary Feasibility Study.
      The Study must include adequate information on mining, processing,
      metallurgical, economic and other relevant factors that demonstrate, at
      the time of reporting, that economic extraction can be justified. A
      Mineral Reserve includes diluting materials and allowances for losses that
      may occur when the material is mined.                                                                                                                                                                                                                 

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

|Mineral Resource:                  | A concentration or occurrence of diamonds, natural solid
      inorganic material, or natural solid fossilized organic material including
      base and precious metals, coal, and industrial minerals in or on the
      Earths crust in such form and quantity and of such a grade or quality
      that it has reasonable prospects for economic extraction. The location,
      quantity, grade, geological characteristics and continuity of a Mineral
      Resource are known, estimated or interpreted from specific geological
      evidence and knowledge. Mineral Resources are sub- divided, in order of
      increasing geological confidence, into Inferred, Indicated and Measured
      categories.
|---------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Mineralized:                       | Mineral bearing; the metallic minerals may have
      been either a part of the original rock unit or injected at a later time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|NPV:                               | Net Present Value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|NSR or Net Smelter Return:         | Gross sales proceeds received from the sale of production
      obtained from a property, less the costs of insurance, smelting, refining
      (if applicable) and the cost of transportation of production from the mine
      or mill to the point of sale. For the purposes of taxes and royalties in
      Guatemala the cost of transportation is not deducted.                                                                                                                                                                                                                                                                                                                                                  
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Ore:                               | A metal or mineral or a combination of these of
      sufficient value as to quality and quantity to enable it to be mined and
      processed at a profit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|oz/t:                              | Troy ounces of metal per short ton of material.
      One oz/t is equivalent to 34.286 grams per tonne. One short ton is
      equivalent to 0.907 tonne.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Pb:                                | Lead.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|ppm:                               | Parts per million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Probable Mineral
      Reserve(1): | The economically mineable part of an Indicated and, in
      some circumstances, a Measured Mineral Resource demonstrated by at least a
      preliminary feasibility study. This study must include adequate
      information on mining, processing, metallurgical, economic, and other
      relevant factors that demonstrate, at the time of reporting, that economic
      extraction can be justified.                                                                                                                                                                                                                                                                                                          
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Proven Mineral
      Reserve(1):   | The economically mineable part of a Measured Mineral
      Resource demonstrated by at least a preliminary feasibility study. This
      study must include adequate information on mining, processing,
      metallurgical, economic, and other relevant factors that demonstrate, at
      the time of reporting, that economic extraction is justified.                                                                                                                                                                                                                                                                                                                                                             
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|QA/QC:                             | Quality Assurance/Quality Control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Recovery Rate:                     | The percentage of metals or minerals which are
      recovered from ore during processing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Reserves:                          | Combined Proven and Probable Mineral Reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|tpd:                               | Metric tonnes per day.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Zn:                                | Zinc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|(1) | The definitions of Proven and Probable Mineral Reserves,
      and Measured, Indicated and Inferred Mineral Resources are set forth in NI
      43-101 which establishes standards for all public disclosure an issuer
      makes of scientific and technical information concerning mineral projects.
      A reader in the United States should be aware that the definition
      standards enunciated in NI 43-101 differ significantly from those set
      forth in SEC Industry Guide 7, and resource information disclosed pursuant
      to NI 43-101 may not be comparable to similar information disclosed by US
      companies. See Interpretation and Other Information - Disclosure
      Standards for more information.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Tahoe Resources Inc.
| | --------------------

---

|CURRENCY
      INFORMATION
|--------------------------

All currency amounts in this AIF are expressed in United States
(US) dollars, unless otherwise noted. The following table reflects the low and
high rates of exchange for one United States dollar, expressed in Canadian
dollars, (CAD$) during the periods noted, the rates of exchange at the end of
such periods and the average rates of exchange during such periods, based on the
Bank of Canada noon spot rate of exchange.

Two
      Months Ended
    Years Ended December 31,Feb. 28, 2015
    2014
    2013
    2012Low for the period
    1.1728
    1.0614
    0.9839
    0.9710High for the period
    1.2717
    1.1643
    1.0697
    1.0418Rate at the end of the period
    1.2508
    1.1601
    1.0636
    1.0051Average noon spot rate for the period
    1.2298
    1.1045
    1.0299
0.9996


On March 11, 2015, the Bank of Canada noon spot rate of
exchange was $1.00 - CAD$0.7835.

|FORWARD-LOOKING
      STATEMENTS
|--------------------------------

This AIF contains forward-looking information within the
meaning of applicable Canadian securities legislation and forward-looking
statements within the meaning of United States Private Securities Litigation
Reform Act of 1995 (collectively referred to as forward-looking information).
Wherever possible, words such as plans, expects, or does not expect,
budget, scheduled, estimates, forecasts, anticipate or does not
anticipate, believe, intend and similar expressions or statements that
certain actions, events or results may, could, would, might or will be
taken, occur or be achieved, have been used to identify forward-looking
information.

Forward-looking information in this AIF may include, but is not
limited to, the following: statements related to our liquidity position, the
intention to repay outstanding debt and the sufficiency of cash from operations
to fund such repayment; expected working capital requirements and the
sufficiency of capital resources; the completion of the business combination
with Rio Alto and the expected timing thereof; the availability and sufficiency
of power for operations; the assessment of future reclamation obligations;
exploration and review of prospective mineral acquisitions; our expected
community outreach and related activities for 2015; statements relating to
changes in Guatemalan mining laws and regulations and the timing and results of
court proceedings; the estimation of Mineral Resources and Mineral Reserves; our
plan to continue the exploration, permitting, engineering, development and
operation of the Escobal property and Escobal mine; our mine development plan;
further development of alternative power sources at the Escobal mine; in regards
to the 4500 tpd scenario, statements relating to upgrades and modifications,
project costs, economics, production and timing; the acquisition of additional
mineral resource interests in the Americas; future exploration and development
activities; and the timing and receipt of approvals, consents and permits under
applicable legislation.

Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions made in light of our experience
and our perception of trends, current conditions and expected developments, as
well as other factors that we believe to be relevant and reasonable in the
circumstances at the date that such statements are made, but which may prove to
be incorrect. We believe that the assumptions and expectations reflected in such
forward-looking information are reasonable. Assumptions have been made
regarding, among other things: our ability to carry on exploration and
development activities; the timely receipt of required approvals, including the
approvals required for the business combination with Rio Alto; the price of
silver and other metals; our ability to operates in a safe, efficient and
effective manner; the successful closing of the business combination with Rio
Alto; and our ability to obtain financing as and when required and on reasonable
terms. Readers are cautioned that the foregoing list is not exhaustive of all
factors and assumptions which may have been used.

Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause actual results to be
materially different from those expressed or implied by such forward-looking
information, including risks associated with our dependence on the Escobal mine
and our limited operating and production history, risks associated with the
fluctuation of the price of silver and other metals, the risk of civil unrest
and political instability in Guatemala, the risk that permits to maintain and/or
expand the Escobal mine cannot be retained or obtained, risks associated with
the availability of additional funding as and when required, exploration and
development risks, permitting and licensing risks, uncertainty in the estimation of Mineral Resources and Mineral Reserves, geologic,
hydrological, and geotechnical risks, infrastructure risks, inflation risks,
governmental regulation risks, security risks including those along the
concentrate transport route, environmental risks and hazards, insured and
uninsured risks, land title risks, risks associated with competition, risks
associated with currency fluctuations, labour and employment risks, risks
associated with dependence on key management personnel and executives,
legislative, judicial and litigation risks, the risk that the dividend program
may not be continued, risks associated with the repatriation of earnings, risks
of negative operating cash flow, risks associated with the interests of certain
directors in other mining projects, risks associated with dilution, risks
associated with stock exchange prices and risks associated with effecting
service of process and enforcing judgments.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

This forward-looking information is based on our reasonable
beliefs, expectations and opinions on the date of this AIF. Although we have
attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking information, there may
be other factors that cause results not to be as anticipated, estimated or
intended. There is no assurance that such information will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. We do not undertake to update any
forward-looking information, except as, and to the extent required by,
applicable securities laws.

Cautionary Note to US Investors Concerning Estimates of
Measured,Indicated and Inferred Resources:

Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. We advise US investors that while those terms
are recognized and required by Canadian regulations, the SEC does not recognize
them. US investors are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into Reserves. This section
also uses the term Inferred Mineral Resources. We advise US investors that while
this term is recognized and required by Canadian regulations, the SEC does not
recognize it. Inferred Mineral Resources have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. US investors are cautioned not to
assume that part or all of an Inferred Mineral Resource exists, or is
economically or legally mineable.

|DISCLOSURE
      STANDARDS
|--------------------------

The disclosure in this AIF uses terms that comply with
reporting standards in Canada and certain estimates are made in accordance with
NI 43-101. NI 43-101 is a rule developed by the CSA that establishes standards
for all public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise indicated, all
resource and reserve estimates contained in or incorporated by reference in this
AIF have been prepared in accordance with NI 43-101. The SEC does not recognize
resources. Resource information contained herein and incorporated by reference
herein may not be comparable to similar information disclosed by US companies.

Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. Certain documents incorporated by reference
herein use the terms Probable Mineral Reserve and Proven Mineral Reserve, as
permitted under NI 43-101. For US reporting purposes, SEC Industry Guide 7
(under the United States Securities Exchange Act of 1934 (the Exchange Act)),
as interpreted by Staff of the SEC, applies similar standards as NI 43-101 in
order to classify mineralization as a reserve. As a result, the definitions of
Proven and Probable Reserves used in NI 43-101 are similar to the definitions in
the SEC Industry Guide 7. Under both NI 43-101 and SEC standards, mineralization
may not be classified as a "reserve" unless the determination has been made that
the mineralization could be economically and legally produced or extracted at
the time the reserve determination is made. Among other things, all necessary
permits would be required to be in hand or issuance imminent in order to
classify mineralized material as reserves under both NI 43-101 and the SEC
standards.

In addition, this AIF uses the terms Measured Mineral
Resource, Indicated Mineral Resource and Inferred Mineral Resource to
comply with the reporting standards in Canada. The Company advises US investors
that while those terms are recognized and required by Canadian regulations, the
SEC does not recognize them. US investors are cautioned not to assume that any
part or all of the mineral deposits in these categories will ever be converted
into Mineral Reserves. Further, Inferred Mineral Resources have a great amount
of uncertainty as to their existence and as to whether they can be mined legally
or economically. Therefore, US investors are also cautioned not to assume that
all or any part of the Inferred Mineral Resources exist. In accordance with
Canadian rules, estimates of Inferred Mineral Resources cannot form the basis
of feasibility or other economic studies.

| | Tahoe Resources Inc.
| | --------------------

---

While disclosure of contained ounces is permitted disclosure
under Canadian regulations, the SEC only permits issuers to report
mineralization as in place tonnage and grade without reference to unit measures.

For the above reasons, information concerning descriptions of
Mineralization, Mineral Resources and Mineral Reserves contained in this AIF may
not be comparable to information made public by US companies subject to the
reporting and disclosure requirements of the SEC.

CORPORATE STRUCTURE

|INCORPORATION
      AND OFFICES
|-------------------------------

We were incorporated under the BCA on November 10, 2009 under
the name CKM Resources Inc. Our name was changed to Tahoe Resources Inc. on
January 13, 2010. Our head office is located at 5310 Kietzke Lane, Suite 200,
Reno, Nevada, United States 89511. Our registered and records office is located
at 1500  1055 West Georgia Street, Vancouver, British Columbia, Canada, V6E
4N7.

We currently have four wholly-owned subsidiaries: Tahoe
Resources USA Inc., a company incorporated under the laws of Nevada on February
2, 2010; Tahoe Swiss A.G., a company incorporated under the laws of Switzerland
on May 20, 2010; Escobal Resources Holdings Limited, a company incorporated
under the laws of Barbados on March 16, 2010; and Minera San Rafael, S.A., a
company incorporated under the laws of Guatemala on April 5, 2010.

GENERAL DEVELOPMENT OF OUR BUSINESS

|DEVELOPMENT OF
      OUR BUSINESS
|---------------------------------

OVERVIEW

Since our incorporation in November of 2009, we have completed
an initial public offering (IPO) of our Shares, listed our Shares on the TSX,
acquired the Escobal mine Assets in Guatemala, completed an offering of our
Shares under a short form prospectus filed in all provinces of Canada, commenced
exploration and development activities of the Escobal mine, completed Escobal
preliminary economic assessments in November 2010 and May 2012, received
approval of our Escobal Environmental Impact Statement from MEM, listed our
Shares on the NYSE in May 2012, obtained the final exploitation license for the
Escobal mine in April 2013, completed construction and commissioning of all
major mine and plant components and declared commercial production in January
2014, completed the Escobal Feasibility Study including publication of our
initial Mineral Reserve statement in November 2014, commenced paying a dividend
in December 2014, and concluded our inaugural year of commercial production
within the production and cost guidance established by the Company at the
beginning of 2014.

IPOANDPRIVATEPLACEMENT

The IPO of 58,000,000 Shares at a price of CAD$6.00 each for
gross proceeds of CAD$348 million was completed on June 8, 2010, the day of
listing our Shares on the TSX. At that time, an additional 47,766,000 Shares
were paid to the vendor company as part of the acquisition cost for the Escobal
mine. On June 17, 2010, we issued a further 5,800,000 Shares at a price of
CAD$6.00 per Share, pursuant to the exercise of the over-allotment option in
connection with our IPO, for additional gross proceeds of CAD$34.8 million.

On December 23, 2010 the sale of 24,959,692 Shares at a price
of CAD$14.10 each for gross proceeds of CAD$351.9 million was completed through
a short form prospectus filed in each of the provinces of Canada and by private
placement outside of Canada.

ESCOBAL MINEASSETS

We acquired the Escobal mine Assets on June 8, 2010 pursuant to
the terms of the Transaction Agreement, which was negotiated at arms length.
The Acquisition was completed contemporaneously with the closing of our IPO. The
Escobal mine Assets were held by San Rafael, a Guatemala corporation, owned by
GHL and ERHL. In turn, ERHL was owned by the Vendors. On June 8, 2010 and
pursuant to the Acquisition, we acquired from the Vendors all of the issued and
outstanding shares of ERHL and the shares of San Rafael held by GHL. Subsequent
to the Acquisition, the Vendors transferred their Shares to Goldcorp, and
Goldcorp and the Company entered into an amendment and restatement of the
Shareholders Agreement.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

INDEBTEDNESS

The Company entered into and drew down a $50 million credit
facility (the facility) on June 4, 2013 with a major international lender. The
facility bears interest at a rate per annum of the US$ London Interbank Offered
Rate (LIBOR) plus a margin of 6%. The proceeds have provided additional
working capital and supported general corporate purposes during mine and mill
commissioning.

On January 2, 2014, the Company expanded the original facility
agreement and drew an additional $25 million to ensure adequate working capital
through continued ramp up of the Escobal mine and to provide working capital for
general corporate purposes. The $25 million bore interest at a rate per annum of
the US$ LIBOR plus 7.25% .

In July 2014, the Company amended the facility agreement and
extended the maturity date of the original $50 million to June 3, 2015. All
other terms remain per the original agreement.

On September 3, 2014, the Company repaid the $25 million
expanded portion of the facility with funds generated from mining operations.
The original $50 million is anticipated to be repaid as scheduled from operating
cash flows.

The facility is secured by substantially all of the assets of
the Company and its subsidiaries: Tahoe Swiss AG, ERHL and MSR.

Additionally, the facility contains covenants that, among other
things, restrict the ability of the Company and its subsidiaries to incur
additional debt, merge without consent, consolidate, transfer, lease or
otherwise dispose of all or substantially all its of its assets to any other
entity.

2015DEVELOPMENTS

On February 9, 2015, the Company entered into the Arrangement
Agreement with Rio Alto for a business combination of the two companies pursuant
of a plan of arrangement. Under the terms of the Arrangement, each issued and
outstanding common share of Rio Alto will be exchanged for 0.227 of a Share and
CAD$0.001 in cash. Upon closing of the Arrangement, existing Tahoe and Rio Alto
shareholders will own approximately 65% and 35% of the combined company,
respectively.

Based on the closing price of the Shares on the TSX of
CAD$17.64 on February 6, 2015, the offer implies consideration of CAD$4.00 per
Rio Alto share which represents a premium of 22.1% to the closing price of Rio
Alto shares of CAD$3.28 on the TSX on February 6, 2015 and a premium of 20.3%
based on the volume weighted average prices of each respective company on the
TSX for the 20-day period ending on February 6, 2015. The boards of directors of
each of Tahoe and Rio Alto have determined that the Arrangement is in the best
interests of their respective shareholders based on a number of factors,
including fairness opinions received from their respective financial advisors.

The completion of the Arrangement is subject to the approval by
at least 66.67% of the votes cast by shareholders of Rio Alto at a special
meeting. In accordance with the rules of the TSX, the Company has obtained
written consent from its shareholders with ownership, control or direction over
more than 50% of the outstanding Shares approving the issuance of Shares as
consideration under the Arrangement.

In addition to Rio Alto shareholder and court approvals, the
Arrangement is subject to applicable regulatory approvals and the satisfaction
of certain other closing conditions customary in transactions of this nature.
The Arrangement is expected to close in April 2015.

The Arrangement includes customary deal-protection provisions
including non-solicitation provisions, a right to match competing offers and a
CAD$57.6 million termination fee payable to the Company under certain
circumstances.

| | Tahoe Resources Inc.
| | --------------------

---

Upon completion of the Arrangement, the Companys executive
management and Board is expected to be comprised as follows:

|Executive Management  |                                                                                                 
|--------------------- | ------------------------------------------------------------------------------------------------
|                      |                                                                                                 
|C. Kevin McArthur     | Executive Chairman                                                                              
|                      |                                                                                                 
|Alex
      Black      | Chief Executive Officer 
    (currently President
      and Chief Executive Officer of Rio Alto)
|                      |                                                                                                 
|Ronald W. Clayton     | President and Chief Operating Officer                                                           
|                      |                                                                                                 
|Mark Sadler           | Vice President and Chief Financial Officer                                                      
|                      |                                                                                                 
|Tim Williams          | Vice President Operations                                                                       
|                      |                                                                                                 
|Brian Brodsky         | Vice President Exploration                                                                      
|                      |                                                                                                 
|Edie Hofmeister       | Vice President Corporate Affairs                                                                
|                      |                                                                                                 
|Board                 |                                                                                                 
|                      |                                                                                                 
|C. Kevin McArthur     | Executive Chairman and Director                                                                 
|                      |                                                                                                 
|Alex Black            | Director (currently Director of Rio Alto)                                                       
|                      |                                                                                                 
|A. Dan Rovig          | Lead Director                                                                                   
|                      |                                                                                                 
|Tanya Jakusconek      | Director                                                                                        
|                      |                                                                                                 
|Paul B. Sweeney       | Director                                                                                        
|                      |                                                                                                 
|James S. Voorhees     | Director                                                                                        
|                      |                                                                                                 
|Drago Kisic Wagner    | Director (currently Director of Rio Alto)                                                       
|                      |                                                                                                 
|Kenneth F. Williamson | Director                                                                                        
|                      |                                                                                                 
|Dr. Klaus Zeitler     | Director (currently Director of Rio Alto)                                                       

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

|INTERCORPORATE
      RELATIONSHIPS
|----------------------------------

Our corporate structure as of the date of this AIF is as
follows:



|THE TRANSACTION
      AGREEMENT AND SHAREHOLDERS AGREEMENT
|-----------------------------------------------------------

The significant terms of the Transaction Agreement and the
Shareholders Agreement entered into in connection with the Acquisition are as
follows:

| | The purchase price of approximately $500 million (the
      Purchase Price) was satisfied by the payment of $224,570,000 in cash and
      the issuance to the Vendors of 47,766,000 Shares and the payment of a
      success fee consisting of $2.2 million in cash and the issuance of 364,304
      Shares;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | The Shareholders Agreement provides Goldcorp with Board
      nomination rights for so long as Goldcorp and its affiliates hold 20% or
      more of the issued Shares. Until the most recent amendment and restatement
      of the Shareholders Agreement effective February 9, 2015, Goldcorp was
      entitled to have three nominees appointed to the Companys Board, and such
      entitlement was exercised through Goldcorp having the right to nominate
      these individuals as directors of the Company at each meeting of
      shareholders at which directors were to be elected. A. Dan Rovig retired
      from the Goldcorp Board in 2014, leaving Kenneth F. Williamson and John P.
      Bell (see Directors and Executive Officers) as Goldcorps nominees on
      the Companys Board. Pursuant to the terms of the February 9, 2015
      amendment and restatement of the Shareholders Agreement, Goldcorp is
      currently entitled to have one nominee appointed to the Companys Board
      (Kenneth F. Williamson). The number of individuals Goldcorp and its
      affiliates are entitled to nominate as directors is subject to adjustment
      for changes in the size of the Companys Board;
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | The Company had a 20 km area of interest for its benefit
      around the Escobal mine until June 8, 2013 and Goldcorp and its affiliates
      had an area of interest for their benefit varying from 20 to 50 km around
      certain of their projects until June 8, 2013;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | As long as Goldcorp and its affiliates hold at least 20%
      of the issued Shares, Goldcorp and its affiliates have a right to maintain
      their percentage interest in the issued Shares by participating in the
      issuance of additional Shares for cash or cash equivalents. If Shares are
      issued on a non-cash transaction, Goldcorp may maintain its percentage
      interest in the issued Shares through the next issue of Shares for cash or
      cash equivalents to be undertaken by the Company; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | Until the first to occur of (i) Goldcorp and its
      affiliates cumulatively ceasing to beneficially own at least 20% of the
      issued Shares for a continuous period of at least 30 days, (ii) June 8,
      2015 or (iii) C. Kevin McArthur ceasing to be the Chief Executive Officer
      of the Company, (A) Goldcorp is subject to standstill provisions in
      respect of the Company and its securities, subject to exceptions that
      relate to a change of control of the Company and, (B) provided that the
Company has complied with the terms of Goldcorps Board nomination rights,
Goldcorp will not vote its Shares at meetings of shareholders in favour of any
nominee directors who are not nominated by the Board. Upon completion of the
Arrangement, C. Kevin McArthur is expected to cease being the Companys Chief
Executive Officer, which would terminate Goldcorps obligations as described in
this paragraph.                                                                                                                                                                                                                                                                                        

| | Tahoe Resources Inc.
| | --------------------

---

|LEGAL
|-----

APPEALBEFORE
THECONSTITUTIONALCOURT

On July 23, 2013, the Court of Appeals in Guatemala (the
Court) held that MEM should have conducted a hearing of a written opposition to
the Escobal mine exploitation license during the permitting application process.
The Court did not rule on the substance or validity of the license; it merely
stated that MEM was obligated to hold an administrative hearing addressing the
substance of the opposition under the 1997 Mining Law. The Court did not
invalidate or comment on the Escobal mine exploitation license in its decision.
MEM issued a press release on July 24, 2013 stating that the ruling had no
impact on the status of the Escobal mine exploitation license. MEM and the
Company have appealed the Courts decision to the Constitutional Court. If the
Constitutional Court upholds the Courts decision, MEM will likely be compelled
to hear the opposition which it already stated it believes to be without merit.
A public hearing of the appeal was held in November 2013. The Constitutional
Court is expected to issue a ruling in the case sometime in the near future.

GARCIA ET AL.V.TAHOE

On June 18, 2014, an action was commenced against the Company
in the Supreme Court of British Columbia. Filed by seven Guatemalan plaintiffs,
the lawsuit alleges that Tahoe is directly or vicariously liable for battery
and/or negligence regarding an incident that occurred at the Escobal mine on
April 27, 2013. The plaintiffs seek compensatory and punitive damages. Tahoe
believes the claim has no merit.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

DESCRIPTION OF OUR BUSINESS

|OVERVIEW OF OUR
      BUSINESS AND STRATEGY
|-------------------------------------------

Tahoes strategy is to responsibly operate the Escobal mine to
world standards, to pay significant shareholder dividends and to develop and
operate high quality precious metals assets in the Americas. Our principal
objectives at this time are to optimize Escobal operations and to continue
expanding the Mineral Resource and Mineral Reserve base through exploration and
development of the Escobal vein and other veins identified in the region.

We will continue to identify, investigate and, where
appropriate, acquire interests in mineral properties in the Americas through
direct application to government authorities, joint venture activities or
acquisition from existing holders. As part of this process, we will undertake
early-stage exploration activities to ensure an orderly and steady development
of exploration targets. See General Development of Our Business  Development
of Our Business  2015 Developments for details on the proposed business
combination with Rio Alto.



|THE SILVER
      INDUSTRY
|-------------------------

Demand for silver is based on investment demand, industrial and
decorative uses, photography, jewelry and silverware. Together, these categories
represent more than 90% of annual silver consumption.

Silver has a number of unique properties including its
strength, malleability and ductility, its electrical and thermal conductivity,
its sensitivity to and high reflectance of light, and the ability to endure
extreme temperature ranges. Silvers unique properties restrict its substitution
in most applications.

| | Tahoe Resources Inc.
| | --------------------

---

Silver prices will have a direct impact on our business.
Declining prices can, for example, impact operations by requiring a
re-assessment of the feasibility of a particular project. See Description of
Our Business  Risk Factors  Risks Relating to the Companys Business. A chart
indicating silver prices since January 1, 1999, is set out below.



Source: Bloomberg

As of March 11, 2015, the London Fix price of silver was
US$15.64.

|PRODUCT
|-------

The Company produces metal-bearing concentrates. Silver, gold,
lead and zinc are recovered by differential flotation, producing silver-rich
lead concentrates and zinc concentrates which are sold to third-party smelters
under concentrate sales arrangements. Silver sales for the year ended December
31, 2014 totaled $350.3 million. No revenues from the sale of by-product metals
(gold, lead, zinc) exceeded 15% of the total consolidated revenue.

|SPECIALIZED
      SKILL AND KNOWLEDGE
|-------------------------------------

Most aspects of our business require specialized skills and
knowledge in the areas of geology, engineering, exploration and development,
environmental management, corporate social responsibility and accounting. We
have a number of employees with extensive experience in mining, engineering,
geology, exploration and development in Guatemala, including C. Kevin McArthur,
Vice Chair and Chief Executive Officer, Ronald W. Clayton, President and Chief
Operating Officer, Brian Brodsky, Vice President Exploration, Charlie Muerhoff,
Vice President Technical Services and Don Gray, Vice President Operations and
Guatemala Country Manager, who left his positions at MSR and Tahoe, effective
February 13, 2015. Mr. Gray was replaced by Tom Fudge, Vice President of
Guatemala Operations. Mr. Fudge previously served as the General Manager of the
Escobal mine.

Mr. McArthur is an experienced mining engineer with over 30
years of engineering, mine building and mine operations experience, including
over eight years in the role of President and Chief Executive Officer of Glamis
Gold Ltd. (Glamis) and two years in the role of President and Chief Executive
Officer of Goldcorp. Mr. Brodsky was Goldcorps Exploration Manager for Central
America. Mr. Clayton was Senior Vice President, Operations, for Hecla Mining
Company before joining the Company. He, Mr. Muerhoff and Mr. Fudge have many
years of underground silver mining experience, including significant Latin
American operating experience. Mr. Muerhoff is a Qualified Person as defined by
NI 43-101 and has worked in the mining industry for over 25 years.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

|EMPLOYEES
|---------

As at the date of this AIF, Tahoe Resources USA employs fewer
than 30 employees at our office in Reno, Nevada and MSR employs more than 900
employees in Guatemala.

|FOREIGN
      OPERATIONS
|------------------------

The Escobal mine is located in Guatemala, and as such is
exposed to various levels of political, economic and other risks and
uncertainties associated with operating in a foreign jurisdiction. See
Description of Our Business  Risk Factors  Risks Relating to the Companys
Business Operations in Guatemala,  Obtaining and Renewing Licenses and
Permits,  Title to Assets and  Governmental Regulation.

|COMPETITIVE
      CONDITIONS
|----------------------------

We compete with other entities in the search for and
acquisition of mineral properties. As a result of this competition, we may be
unable to acquire attractive properties in the future on terms we consider
acceptable. We also compete for financing with other resource companies. There
is no assurance that additional capital or other types of financing will be
available to us if needed, or that, if available, the terms of such financing
will be favourable to us. See Description of Our Business  Risk Factors 
Risks Relating to the Companys Business, Competition for New Properties and
 Financing Requirements.

|CYCLES
|------

We are a producer of silver. See Description of Our Business 
The Silver Industry for details of the demand for silver and the market price
for silver.

|ENVIRONMENTAL
      AND SOCIAL ACTIVITIES
|-----------------------------------------

The Company is committed to conducting business honestly and
ethically everywhere we operate. We aspire to deliver long term shareholder
value through sustainable economic and social development in the communities
where we work. We strive to minimize the environmental effects of our
operations, to provide a safe and healthy workplace for all our employees and
contractors and to promote sustainable businesses and social programs in the
communities where we operate.

ENVIRONMENT

We recognize that all development comes with some impacts. We
are dedicated to the highest standards of responsible environmental stewardship.
We honour this commitment by meeting or exceeding local governmental regulations
and operating our projects to North American standards. See Description of Our
Business  Escobal mine  Environment and  Reclamation. We have review
processes in place which are designed to prevent or minimize environmental
incidents or impacts, to evaluate incidents and operating practices and to
create action plans and operating procedures to prevent reoccurrence. The Board
oversees the Companys environmental management through the Health, Safety,
Environment and Community Committee.

In 2014, we continued to work with local communities to help
them upgrade water systems and infrastructure programs. The Company also
advanced its partnership with San Carlos University in Guatemala to conduct
health and environmental baseline studies. We also worked with independent
consultants on community needs assessments to guide further programs in the
vicinity of the Escobal mine.

CORPORATESOCIALRESPONSIBILITY

2014 Alignment with International Protocols and Best
International Practices

In the latter half of 2013 and throughout 2014, the Company
worked to align its policies and practices with the United Nations Guiding
Principles on Business and Human Rights (Guiding Principles), the Voluntary
Principles on Security and Human Rights and the Equator Principles. The adoption
of these standards reflects the Companys evolution from a junior exploration
company to a major silver producer following receipt of our final operating
permits in 2013. The Company finalized a comprehensive Social Impact Assessment
and outlined its strategies to avoid, minimize or mitigate real or perceived
social impacts in its Social Management Plan. We also implemented a new
grievance mechanism to align with the Guiding Principles and the International
Finance Corporation Performance Standards.

| | Tahoe Resources Inc.
| | --------------------

---

2014 Corporate Social Responsibility (CSR) Projects

Key MSR projects in 2014 (some of which
are ongoing) include:

Regional Coffee Growers: A
coffee-eating fungus, known as coffee rust, has invaded a third of Guatemalas
coffee crops and is threatening many of the coffee farms in the vicinity of the
Escobal mine. In 2014 MSR supported more than 2,000 coffee growers from eight
municipalities, with a coffee rust control program. MSR donates fungicide to
farmers and provides training sessions and technical visits.

Reforestation Program: Over
100,000 small trees were planted in the reforestation program. Approximately 165
hectares of land were reforested and 73 forest management plans were formulated
to promote forest-growth incentives for local landowners.

Education Programs: MSR
sponsored Discovering the Earth science clubs in which 275 children conducted
experiments and learned about the vegetable, animal and mineral kingdoms. MSRs
Exploration Department also taught participants about the rock cycle and the
importance of minerals. Approximately 2,800 San Rafael Las Flores (SRLF)
students received backpacks filled with school supplies including pencils,
notebooks, crayons and rulers. MSR provided scholarships to 223 primary,
secondary and university-level students to pay for tuition, school supplies,
uniforms, and room and board. Afterschool math and reading lessons were
organized for more than 640 Santa Rosa high school students. MSR and Glasswing
International co-sponsored 10 teachers salaries in Casillas and provided
science training for extracurricular activities. MSR supported two debate clubs
at middle schools located in SRLF and Casillas; more than 70 students
participated in the debate about topics such as gender equality.

Education Infrastructure
Projects: Education projects completed during the year occurred in San
Rafael City (upgrades to preschool, middle school and high school bathrooms,
kitchens, classrooms and construction of playground; Sabana Redonda (upgrades to
elementary school classrooms and construction of bathrooms, playground and
kitchen); Amberes (upgrades to elementary school bathrooms, kitchen and
classrooms); El Barrialito (upgrades to preschool kitchen and classrooms and
construction of retainer wall and playground); and Barrera (construction of
elementary school bathrooms and upgrades to kitchen and classrooms).

Vocational Training Center: The
center provided 24 different classes including apparel construction, welding,
jewelry making, entrepreneurship and English as a second language lessons.
Additional business courses were offered to increase community members skills
to supply service to the company and initiate procurement opportunities. Later
program offerings will include training in other trades and technical careers
such as auto mechanics, electro mechanics, and others. Program implementation is
being managed through a joint effort between MSR and INTECAP (a quasi-government
vocational training organization).

Avocado Program: Implementation
of this program continued locally and expanded to six regional municipalities.
MSR donated over 3,800 root-grafted Hass avocados and provided technical
assistance to approximately 349 farmers.

Health Projects: Infrastructure
assessments identified improvements to two water systems in La Cuchilla and Las
Nueces and one drainage system in Amberes. MSR upgraded the maternity wing of
the Santa Rosa hospital in Cuilapa City.

Veterinary Services: In
coordination with the five local and regional municipal health centers, MSR
provided vaccinations to 1,252 local farmers livestock and provided 316
additional veterinary services.

Other Local Development
Projects:

| |  | A two-month soil conservation and fertilizer
      program was completed benefiting 400 community members;                                                                             
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                        
| |  | MSR educated more than 250 children and youth
      about nutrition and agricultural production through school vegetable
      garden initiatives; and                                 
| |   |                                                                                                                                                                                        
| |  | Livestock and domestic animal training was
      provided to more than 250 community members to teach the importance of
      proper animal care and strategies for disease prevention.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Ex-landowners Association

The Company entered into a profit-sharing program in the form
of an NSR royalty of 0.5% to be shared by a local association of former owners
of the Escobal Mine lands (Association). The Association receives payments
approximately every quarter via a trust instrument administered by an
independent party. Of this 0.5%, 10% will be allocated to development projects
identified by the Association.

Capacity Building for Expected Royalty Funds

One of the Companys CSR priorities is to promote education and
business opportunities in the vicinity of the Escobal mine. This includes
capacity building among locals to recognize, analyze and address their community
needs by more effectively controlling and using their own resources in addition
to available external resources, including royalty funds. To this end, the
Company sponsors governance capacity-building workshops for 250 community
leaders located in SRLF, Santa Cruz Naranjo, Barberena and Casillas. These
workshops aim to increase democratic participation by educating citizens about
their rights and responsibilities and encouraging them to participate in the
development of their society and to make the most efficient use of revenues to
meet those needs.

Organizational CSR Initiatives

CentraRSE-ISO 26000: The Company
is a member of the local CSR organization in Guatemala, comprised of more than
100 companies committed to operating using responsible business practices. As
part of this membership, the Company participated in the IndicaRSE assessment -
a survey tool based on international best practices (International
Standardization Organization or ISO 26000) that is used in Central America.
Survey findings are being used internally to assess the MSR organization and
strengthen MSRs performance in several key areas: corporate governance; labor
practices; environmental sustainability; supplier/procurement/purchasing
(practices, policies and ethics); and economic development.

Business for Social Responsibility
(BSR): The Company is a member of BSR and retained the organization to
assist in implementing policies and practices aligned with the Guiding
Principles, including designing a new grievance program and human rights policy,
the Voluntary Principles on Security and Human Rights, including human rights
trainings for security contractors, and the Equator Principles, a risk
management framework, adopted by financial institutions, for determining,
assessing and managing environmental and social risk in projects subject to
financing.

Local Stakeholder Engagement

Most of MSRs 900+ employees come from local areas near the
Escobal mine. In 2014 MSR continued to develop its employee engagement and
education programs based on a socio-economic baseline study of employees and
families.

The Company engaged FUNDES (a non-profit organization) to
conduct an economic development program to support the development of local
businesses in SRLF. FUNDES mission is to strengthen the business capacity of
local commercial enterprises to improve their market reach and to achieve
sustainable results. In 2014 FUNDES trained six local business associations: the
Jewelry Association, Truckers Association, SRLF Livestock Association, SRLF
Small Farmers Association, Womens Dairy Producers Association and the
Agricultural Cooperative. FUNDES conducted business assessments of each
association and provided training to increase production, to generate local
employment opportunities and to increase revenue.

Community Outreach

Presentations: Held informative
presentations reaching over 2,800 residents of the municipality of SRLF and
additional regional municipalities about the benefits and characteristics of the
Escobal mine.

Site Visits: Hosted more than
1,500 site visits to the Escobal mine made by COCODES (village leadership
councils), school teachers, university students, businesswomen and local
farmers, among others.

Dialogue Meetings: Held outreach
and dialogue meetings throughout SRLF with approximately 160 key stakeholders to
discuss community development plans and to analyze stakeholder concerns.

Volunteer Activities: Organized
four volunteer activities in which 755 volunteer hours were donated by 47 MSR
employees and 102 community members to renovate local schools by gardening,
painting and cleaning.

Food and Nutrition: Designated
$2.3 million to support the food and nutrition needs of rural families in
Guatemala.

| | Tahoe Resources Inc.
| | --------------------

---

Environmental Stewardship: MSR
was selected by MEM to implement the Cultivating Good Water program in
its local communities. MSR is the first mining company to adopt this program
which engages both public and private sectors and local communities to share the
responsibilities of natural resource management. In 2015, MSR will partner with
multi-stakeholder groups to implement sustainable development programs to
conserve a local watershed, the El Dorado.

Royalty Agreement

In 2014 the Companys voluntary royalty program offered
economic and social development to the communities impacted by the project. Of
the total 5% royalty paid by the Company, 1% was mandatory and split equally
between the federal government and the SRLF local municipality. The Company paid
the remaining 4% voluntarily, of which 1.5% was paid to the federal government,
1.5% paid to SRLF, and the remaining 1% distributed equally among the
surrounding six regional municipalities. For 2014, the Company paid a total of
$5.8 million in royalties which includes $4.6 million in voluntary
royalties.

The distribution was as follows:

| | $0.6 million mandatory royalty to the
      Guatemalan Federal government;
|- | --------------------------------------------------------------------------
|  |                                                                           
| | $0.6 million mandatory royalty to SRLF;                                   
|  |                                                                           
| | $1.7 million voluntary royalty to the
      Guatemalan Federal government;
|  |                                                                           
| | $1.7 million voluntary royalty to SRLF; and                               
|  |                                                                           
| | $1.2 million voluntary royalty to the six
      regional municipalities.  

See Description of Our Business - Doing Business in Guatemala
 Mining for details on the updated royalty rates effective January 1, 2015, as
set out in the updated Guatemalan mining law.

|DOING BUSINESS
      IN GUATEMALA
|---------------------------------

MINING

The Escobal mine is located in Guatemala. The State of
Guatemala owns all mineral deposits within Guatemala. MEM may grant
reconnaissance, exploration and exploitation licenses to any entity, whether
Guatemalan or foreign. Applications for licenses are typically granted on a
first-time basis, with holders of reconnaissance licenses given priority for an
exploration license (over portions of the area covered by the reconnaissance
license) and holders of exploration licenses given priority for an exploitation
license (over portions of the area covered by the exploration license), so long
as applications are made before the expiration of the existing license. Mineral
licenses are coordinate staked (filed only referenced to UTM coordinates) and
no monuments are located on the ground. No physical survey of exploration
license boundaries is required.

Details with respect to each type of license are set out below.

License holders may use water, so long as such use does not
affect the permanent exercise of water rights by others, and subject to the
requirement that mining operations must not contaminate the environment.
Licensees are also granted rights of way, including the right to build roads,
with the proviso that surface owners be compensated.

MEM may suspend mining rights for, among other things, safety
and environmental concerns or failure to pay royalties or to submit reports when
due; may cancel mining for, among other things, failure to commence field work
or operations in the prescribed time; and may extinguish mining rights upon
expiration of the license term, depletion of the deposit or express renouncement
of the holder.

Fees payable by licensees include surface rights fees, a
granting fee for a mining right and an area fee for the licenses.

Under the 1997 Guatemalan mining law, a mandatory royalty of 1%
was payable at the exploitation stage and shared equally between the State and
the municipality where the project is situated. The royalty is determined by an
affidavit of the volume of the marketed product from mining operations and is
based on the value of sale consigned in the national market or international
exchange. On January 26, 2012, the administration and the Mining Industry
Association agreed to general terms in a royalty agreement that resulted in the
industry voluntarily paying higher royalties to the national and local
governments. On April 16, 2013, the Company executed a voluntary royalty
agreement (Escobal Royalty Agreement). Together with the 1997 Guatemalan
mining law, the Escobal Royalty Agreement committed the Company to pay a 5% Net Smelter Return (NSR) royalty on the concentrates sold
from Escobal mine production. Under the Escobal Royalty Agreement 2% benefitted
SRLF communities, 2% benefitted the Federal government and an additional
voluntary 1% benefitted certain outlying municipalities in the Departments of
Santa Rosa and Jalapa. The first royalty payment was made to participating
municipalities and MEM on January 30, 2014.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

On November 28, 2014, the Guatemalan government passed
legislation, amending the 1997 mining law and increasing mandatory royalties to
10%. The royalty increase is the only proposed change to the Guatemala mining
law and is part of an effort to raise revenue and balance the 2015 budget.
President Otto Perez Molina signed and approved the legislation which
subsequently became law, effective January 1, 2015.

The law requires that the Company pay a 9% royalty directly to
the federal government and a 1% royalty to the local municipality in which the
project is located for a total royalty payment of 10%. This represents an
additional 5% royalty to the Companys current combined statutory and voluntary
royalty program and effectively ended the Companys voluntary royalty of 4%
under the terms of the Escobal Royalty Agreement. The new law is currently being
challenged in the Guatemalan Constitutional Court. For financial reporting
purposes, as of January 1, 2015, the Company commenced accruing royalty payments
at the 10% legislated rate.

Licenses and Permitting

Reconnaissance Licenses: A reconnaissance license is
typically granted for a six-month term, and may be extended on request for an
additional six months, or on application for an exploration license, until the
grant of the exploration license. This license can cover an area from 500 to
3,000 km2 and gives the holder the exclusive right to identify and
locate possible areas for exploration within the licenses boundaries. A holder
of a reconnaissance license is obligated to begin field projects within 30 days
after grant of the license, to give immediate notice to the regulators of
discovery of minerals other than those described in the license, to file reports
within three months after the completion of each period of reconnaissance, and
to compensate third parties, such as surface rights holders, for damages or
other adverse impacts caused by operations. An environmental mitigation study
must be filed with MEM before undertaking reconnaissance activities. On
application, a reconnaissance license may be converted to an exploration
license.

Exploration Licenses: An exploration license is
typically granted for a three-year term and may be extended on request for two
additional two-year terms, or on application for an exploitation license, until
the grant of the exploitation license. With each extension, the surface area
must be reduced by 50%; however, in certain cases this 50% reduction requirement
can be modified and reduced. An exploration license covers an area of up to 100
km2 (the area may be greater than 100 km2 if deemed
necessary for the mining project as demonstrated by a technical-economic study;
however, such a decision would be at the discretion of MEM). An exploration
license allows the holder the exclusive right to locate, study, analyze and
evaluate the deposits that have been granted within the licenses boundaries.
The licensee is obligated to begin field projects within 90 days after grant of
the license, to give immediate notice to regulators of discovery of minerals
different from those described in the license, to file reports within three
months after the completion of the exploration year, and to compensate third
parties for damages or other adverse impacts caused by operations. An
environmental mitigation study must be filed with MEM before undertaking
exploration activities. In addition, an environmental assessment must be filed
with the MARN for approval prior to undertaking exploration activities.

Exploitation Licenses: An exploitation license is
typically granted for a 25-year term and may be extended, on request, for an
additional 25-year term. An exploitation license legally is considered to be a
real property title, of limited term, that may be recorded at the property
registry and may be mortgaged for the exclusive purpose of obtaining financing
for operations within the license of exploitation. Exploitation licenses cover
an area not greater than 20 km2 (the area may be larger if deemed
necessary for the mining project as demonstrated by a technical-economic study).
An exploitation licensee has the exclusive right to develop the deposits that
have been granted within the licenses boundaries. If minerals different from
those authorized in the license are discovered, the licensee has the right to
augment the license to include the new minerals.

To obtain an exploitation license, the applicant must prepare
an environmental impact study for review and approval by MARN. Upon grant of an
environmental approval, the applicant must also arrange for the issuance of a
bond for environmental protection. Once an exploitation license is granted, the
licensee must begin operations within 12 months after grant of the license,
present a copy of the Commercial Patent (also referred to as a business license)
within six months after grant of the license, file reports within three months
after the end of each calendar year, and compensate third parties for potential
damages and adverse impacts caused by operations.

| | Tahoe Resources Inc.
| | --------------------

---

Permitting: Other permits required in connection with
exploitation activities include a municipal construction license, a forestry
license, export credentials, a communications license, explosives storage, use
and transportation licenses, a substation and electric transmission permit and a
license for the import and use of raw materials and chemicals. The licensee must
also settle the mines closure plan and reclamation bond with MARN, and may be
required to obtain surface rights for access, either by lease or purchase.

FOREIGNINVESTMENT

Applicable Guatemalan law guarantees equal treatment and
enjoyment of constitutional rights to foreign and local investors in certain
areas including, but not limited to, private property, expropriation and
importing. Foreign investors are permitted to participate in any legal economic
activity, including provision of capital to companies incorporated in Guatemala
and repatriation of capital out of Guatemala.

TAXATION

Income tax

Income tax must be paid on income generated in Guatemala and
may be paid either under the general regime or the optional regime. After tax
legislation was passed in early 2012, the general regime was changed from a rate
of 31% of net income (total income less exempt income less deductible costs and
expenses) paid quarterly and liquidated on an annual basis. The new regime went
into effect January 1, 2013. The rate was 28% in 2014 and will be 25% in 2015
and thereafter. The optional regime rate was 6% of taxable income (total income
less exempt income) paid monthly which increased to 7% in 2014 and thereafter.
Corporations must adopt one of the two regimes and commit to a regime each
December. After assessing the individual impact of each regime on earnings
attributable to common shareholders, we adopted the optional regime for 2014.
Failure to make income tax payments results in a penalty of 100% of the unpaid
tax, plus interest.

Dividends

Starting January 1, 2013, dividend payments have a tax rate of
5%. All dividend payments are subject to tax, notwithstanding the shareholders
nationality. A 3% stamp tax is payable on dividends, civil and mercantile
contracts and cash payments unless the Companys operations are subject to the
payment of a Value Added Tax of 12% (which is applicable to sales of goods and
services, as well as imports and land). If dividends are paid through the
delivery of a coupon, the payment may be exempt of stamp tax. The holder of an
export license may import, free from tariff and import duties, machinery,
equipment, parts, accessories, materials and explosives that will be used in the
production of the items to be exported.

ISO

Effective January 1, 2009, corporations and enterprises
domiciled in Guatemala must pay on a quarterly basis, the Impuesto de
Solidaridad, (ISO) included in Decree 73-2008. The ISO amount is calculated at
the rate of 1% of the greater of (i) the amount resulting after subtracting from
total assets, the fiscal credits (resolved through resolution), reserve for
doubtful accounts, accumulated depreciation and amortization for the last fiscal
year, and (ii) gross income for the last fiscal year. The ISO may be taken as a
credit against the income tax to be paid by the corporation. Taxpayers operating
under the optional regime are ISO exempt.

Royalty

Up to December 31, 2014, the Company paid a 5% NSR royalty (1%
mandatory, 4% voluntary) on the concentrates sold from the Escobal mine
production. Effective January 1, 2015, the royalty increased to a 10% NSR. See
Description of Our Business - Doing Business in Guatemala  Mining for details
on the updated royalty rates effective January 1, 2015, as set out in the
updated Guatemalan mining law.

ENVIRONMENTAL

Guatemala has environmental legislation that forbids bringing
into the country contaminating products and materials that are banned in their
country of origin, as well as various substances, residues, radioactive
materials and waste that can infect, contaminate or degrade the environment.

An environmental mitigation study must be filed with MEM before
undertaking reconnaissance or exploration activities. In addition, an
environmental assessment must be filed with MARN for approval prior to
undertaking exploration activities.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

In order to obtain the exploitation license, MSR prepared an
environmental impact study for review and approval by MARN. Upon grant of the
license in April 2013, the Company also arranged for the issuance of a bond for
environmental protection and obtained an environmental license pursuant to
Guatemalan regulations. Once the exploitation license was granted, the Company
complied with all exploration permitting regulations including 1) beginning
operations leading to the exploitation of the deposit within 12 months after
grant of the license, and 2) presenting a copy of the Commercial Patent within
six months after grant of the license. The Company files reports quarterly to
MARN. A report is filed within three months after the end of each calendar year
pursuant to MEM requirements.

POWER LINE

Organized resistance previously impeded the Companys attempts
to install a power line along an approved right of way. The Company installed
contractor supplied diesel-fired generator power which is sufficient to operate
the project up to 4500 tpd. The Company continues to assess alternative power
strategies to reduce power costs.

RISKFACTORS

Our operations are subject to the normal risks associated with
mineral exploration, development and production. The continued commercial
success of the Escobal mine and the acquisition of additional mineral interests
will be subject to numerous factors beyond our control. Certain of these risk
factors are discussed below.

RISKSRELATING
TOOURBUSINESS

Dependence on the Escobal Mine

The Escobal mine is currently the Companys sole operation. As
a result, unless we acquire additional property interests, any adverse
development affecting the Escobal mine could have a material adverse effect upon
the Company and would materially and adversely affect the potential production
of Mineral Reserves, profitability, financial performance and results of
operations of the Company. Ongoing development and operation of the Escobal mine
depends upon Tahoes ability to consistently mine to design parameters and to
process mined material at approximate design throughput rates. The long-term
commercial viability of the Escobal mine is also dependent upon a number of
factors, some of which relate to the particular attributes of the deposit (such
as size, grade and proximity to infrastructure), metal prices and government
regulations, including regulations relating to royalties, allowable production,
importing and exporting of minerals and environmental protection. Most of the
above factors are beyond our control. As a result, there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions. Failure to do so will have a material adverse impact on our
operations and potential future profitability.

Operations in Guatemala

The Escobal mine is located in Guatemala which has a history of
political unrest. Guatemala suffered an armed conflict for 36 years, which was
finally resolved through a peace agreement reached with the countrys internal
revolutionary movement in 1996. The last political crisis in Guatemala occurred
in 1983 and constitutional government was not restored until 1985. Renewed
political unrest or a political crisis in Guatemala could adversely affect our
business and results of operations.

Guatemala suffers from social problems such as a high crime
rate and uncertain land tenure for many indigenous people, which could adversely
affect the Escobal mine. Such adverse effects could result from the efforts of
third parties to manipulate local populations into encroaching on the Escobal
mine land, challenging the boundaries of such land, impeding Escobal mine
activities through roadblocks or other public protests or attacks against
Escobal mine assets or personnel.

Our business may be exposed to a number of risks and
uncertainties, including terrorism and hostage taking, military repression,
extortion, expropriation or nationalization without adequate compensation,
labour unrest, high rates of inflation, changes to royalty and tax regimes,
extreme fluctuations in currency exchange rates, volatile local, political and
economic developments, difficulty with understanding and complying with the
regulatory and legal framework respecting the ownership and maintenance of
mineral properties, surface rights, mines and mining operations, and difficulty
obtaining key equipment and components for equipment.

| | Tahoe Resources Inc.
| | --------------------

---

Obtaining and Renewing Licenses and Permits

In the ordinary course of business, we will be required to
obtain and renew governmental licenses or permits for the operation and
expansion of the Escobal mine or for the development, construction and
commencement of mining at the Escobal mine. Obtaining or renewing the necessary
governmental licenses or permits is a complex and time-consuming process
involving numerous jurisdictions and often involving public comment periods and
costly undertakings on our part. The duration and success of our efforts to
obtain and renew licenses or permits are contingent upon many variables not
within our control, including local politics, legal challenges and the
interpretation of applicable requirements implemented by the licensing
authority. Any unexpected refusals of required licenses or permits or delays or
costs associated with the licensing or permitting process could prevent or delay
the development or impede the operation of a mine, which could adversely impact
our operations and profitability.

Operating History

We have a limited history of operations and commercial
production. As a newly producing company, we are subject to many risks common to
such enterprises, including under-capitalization, cash shortages, limitations
with respect to personnel, financial and other resources. There is no assurance
that we will be successful in achieving a return on shareholders investment and
the likelihood of our success must be considered in light of our early stage of
production.

Operating Cash Flow

Failure to achieve anticipated production levels would have a
material adverse impact on the Companys cash flow and future profitability. Our
failure to achieve profitability and positive operating cash flows could have a
material adverse effect on our financial condition and results of operations.

Metal Price Fluctuations

The majority of our revenue is derived from the sale of silver
and, to a lesser degree, gold, lead and zinc. Therefore, fluctuations in the
prices of these commodities represent one of the most significant factors that
we expect will affect our future operations and potential profitability. The
price of silver and other metals are affected by numerous factors beyond our
control, including levels of supply and demand, global or regional consumptive
patterns, sales by government holders, metal stock levels maintained by
producers and others, increased production due to new mine developments and
improved mining and production methods, speculative activities related to the
sale of metals, availability and costs of metal substitutes, international
economic and political conditions, interest rates, currency values and
inflation. Declining market prices for these metals could materially adversely
affect our future operations and profitability.

Indebtedness

As of March 11, 2015, the Company had aggregate consolidated
indebtedness of $50 million. As a result of this indebtedness, the Corporation
is required to use a portion of its cash flow to service principal and interest
on its debt, which will limit the cash flow available for other business
opportunities. The Companys ability to make scheduled principal payments, pay
interest on or refinance its indebtedness depends on the Companys future
performance, which is subject to economic, financial, competitive and other
factors beyond its control. Unexpected delays in production or other operational
problems could impact our ability to service the debt and make necessary capital
expenditures when the debt facility becomes due in June of 2015. If the Company
is unable to generate such cash flow to timely repay the debt, it may be
required to adopt one or more alternatives, such as selling assets,
restructuring debt or obtaining additional equity capital on terms that may be
onerous or highly dilutive. The Companys ability to refinance its indebtedness
will depend on the capital markets and its financial condition at such time. The
Company may not be able to engage in any of these activities or engage in these
activities on desirable terms, which could result in a default on its debt
obligations.

The terms of the Companys credit facility require it to
satisfy various affirmative and negative covenants and to meet certain financial
ratios and tests. These covenants limit, among other things, the Companys
ability to incur further indebtedness if doing so would cause it to fail to meet
certain financial covenants, create certain liens on assets or engage in certain
types of transactions. Although at present these covenants do not restrict the
Companys ability to conduct its business as presently conducted, there are no
assurances that in future the Company will not be limited in its ability to
respond to changes in its business or competitive activities or be restricted in
its ability to engage in mergers, acquisitions or dispositions of assets.
Furthermore, a failure to comply with these covenants, including a failure to
meet the financial tests or ratios, would likely result in an event of default
under the credit facility and would allow the lender to accelerate the debt.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Financing Requirements

Any changes to our current projections or any new development
activity, whether at the Escobal mine or elsewhere, may require substantial
additional capital. When such additional capital is required, we will need to
pursue various financing transactions or arrangements, including joint venturing
of projects, debt financing, equity financing or other means. Additional
financing may not be available when needed or, if available, the terms of such
financing might not be favourable to us and might involve substantial dilution
to existing shareholders. We may not be successful in locating suitable
financing transactions in the time period required or at all, may not obtain the
capital required by other means. A failure to raise capital when needed would
have a material adverse effect on our business, financial condition and results
of operations. Any future issuance of Shares to raise required capital will
likely be dilutive to shareholders. In addition, debt and other mezzanine
financing may involve a pledge of assets and may be senior to interests of
equity holders. We may incur substantial costs in pursuing future capital
requirements, including investment banking fees, legal fees, accounting fees,
securities law compliance fees, printing and distribution expenses and other
costs. The ability to obtain needed financing may be impaired by such factors as
the capital markets (both generally and in the silver industry in particular),
our status as an enterprise with a limited production history, the location of
the Escobal mine in Guatemala and the price of silver, gold, lead and zinc on
the commodities markets (which will impact the amount of asset-based financing
available) and/or the loss of key management personnel. Further, if the price of
silver and other metals on the commodities markets decreases, then revenues from
the Escobal mine will likely decrease and such decreased revenues may increase
the requirements for capital. Failure to obtain necessary capital on reasonable
terms may materially adversely affect our future operations and profitability.

Licenses and Title to Assets

The validity of the licenses related to the Escobal mine can be
uncertain and may be contested. There is no assurance that applicable
governmental bodies will not revoke or significantly alter the conditions of
applicable licenses that are required by the Escobal mine. Changes to Guatemalan
laws, including new mining legislation or adverse court rulings could materially
and adversely impact our rights to exploration and exploitation licenses
necessary for the Escobal mine. See Description of Our Business  Doing
Business in Guatemala and  Risk Factors  Risks Relating to Our Business 
Operations in Guatemala.

There is no guarantee that title to the Escobal mine or surface
rights will not be challenged or impugned. Our properties may be subject to
prior unregistered liens, agreements or transfers, indigenous land claims or
undetected title defects.

In Guatemala, legal rights applicable to exploration and
exploitation licenses are different and separate from legal rights applicable to
surface lands. Accordingly, title holders of licenses must reach agreement with
surface land owners on adequate remuneration to compensate for mining activities
on their land. Not all surface rights are registered interests such that there
may be doubt concerning the ownership of surface rights and the validity of
agreements related to surface rights.

Governmental Laws and Regulations

Our operations, exploration and development activities are
subject to the laws and regulations of Guatemala that govern various matters
including environmental protection, management and use of toxic substances and
explosives, management of natural resources, exploration, development,
production, and post-closure reclamation of mines, imports and exports, price
controls, taxation, mining royalties, labour standards and occupational health
and safety, including mine safety and historic and cultural preservation.

The costs associated with legal compliance are substantial. In
addition, possible future laws and regulations, changes to existing laws and
regulations (including the imposition of higher taxes and mining royalties which
have been, or may be, implemented or threatened) or more stringent enforcement
of current laws and regulations by governmental authorities, could cause
additional expense, capital expenditures, restrictions on or suspension of our
operations and planned operations at the Escobal mine. Moreover, these laws and
regulations may allow governmental authorities and private parties to bring
lawsuits based upon damages to property and injury to persons resulting from the
environmental, health and safety impacts of our operations, or possibly even
those actions of parties from whom we acquired our mines or properties. Such
legal actions could lead to the imposition of substantial fines, penalties or
other civil or criminal sanctions. It is difficult to strictly comply with all
regulations that may be imposed on us. We have competent and well-trained
individuals and consultants to assist us with compliance with such laws and
regulations, however, even with the application of considerable skill we may
inadvertently fail to comply with certain laws. Failure to comply with laws and
regulations could lead to financial restatements, fines, penalties, loss,
reduction or expropriation of entitlements, the imposition of additional local,
foreign or governmental parties as joint venture partners with carried or
other interests and other material negative impacts on us.

| | Tahoe Resources Inc.
| | --------------------

---

Operating Hazards, Risks and Insurance

The ownership, operation and development of a mine or mineral
property involves many risks which even a combination of experience, knowledge
and careful evaluation may not be able to overcome. These risks include
environmental hazards, industrial accidents, explosions and third-party
accidents, the encountering of unusual or unexpected geological formations,
ground falls and cave-ins, mechanical failure, unforeseen metallurgical
difficulties, power interruptions, flooding, earthquakes and periodic
interruptions due to inclement or hazardous weather conditions. These
occurrences could result in environmental damage and liabilities, work
stoppages, delayed production and resultant losses, increased production costs,
damage to, or destruction of, mineral properties or production facilities and
resultant losses, personal injury or death and resultant losses, asset write
downs, monetary losses, claims for compensation of loss of life and/or damages
by third parties in connection with accidents (for loss of life and/or damages
and related pain and suffering) that occur on company property, and punitive
awards in connection with those claims and other liabilities.

It is not always possible to fully insure against such risks,
and we may decide not to take out insurance against such risks as a result of
high premiums or other reasons. Should such liabilities arise they could reduce
or eliminate any future profitability and result in an increase in costs and a
decline in value of our securities. Liabilities that we incur may exceed the
policy limits of insurance coverage or may not be covered by insurance, in which
event we could incur significant costs that could adversely impact our business,
operations, potential profitability or value. Despite efforts to attract and
retain qualified personnel, as well as the retention of qualified consultants,
to manage our interests, even when those efforts are successful, people are
fallible and human error could result in significant uninsured losses to us.
These could include loss or forfeiture of mineral interests or other assets for
non-payment of fees or taxes, significant tax liabilities in connection with any
tax planning effort we might undertake and legal claims for errors or mistakes
by our personnel.

Mine Concentrate Transportation and Marketing
Risk

Concentrates containing combinations of silver, gold, lead and
zinc are produced at the Escobal mine and loaded onto highway road vehicles for
transport to sea ports for export to foreign smelters in markets such as Asia,
Europe and North America. This type of process involves a high level of
environmental and financial risk. The Company could be subject to potential
significant increases in road and maritime transportation charges and treatment
and refining charges. Transportation of such concentrate is also subject to
numerous risks including, but not limited to, delays in delivery of shipments,
road blocks, terrorism, civil unrest, weather conditions and environmental
liabilities in the event of an accident or spill. The Company could be subject
to limited smelter availability and capacity and could also face the risk of a
potential interruption of business from a third party beyond its control, which
in both cases could have a material adverse effect on the Companys operations
and revenues. There is no assurance that smelting, refining or transportation
contracts for the mines products will be entered into and/or renewed on
acceptable terms.

Environmental Hazards

All phases of our operations with respect to the Escobal mine
are, and will continue to be, subject to environmental regulation in Guatemala.
Environmental legislation in Guatemala involves strict standards and may entail
increased scrutiny, fines and penalties for non-compliance, stringent
environmental assessments of proposed projects and a high degree of
responsibility for companies and their officers, directors and employees.
Changes in environmental regulation, if any, may adversely impact our operations
and future potential profitability. In addition, environmental hazards which are
currently unknown may exist on the Escobal Mine. We may be liable for losses
associated with such hazards, or may be forced to undertake extensive remedial
clean-up action or to pay for governmental remedial clean-up actions, even in
cases where such hazards have been caused by previous or existing owners or
operators of the property, or by the past or present owners of adjacent
properties or by natural conditions. The costs of such clean-up actions may have
a material adverse impact on our operations and future potential profitability.

Reclamation Obligations

Reclamation requirements are designed to minimize long-term
effects of mining exploitation and exploration disturbance by requiring the
operating company to control possible deleterious effluents and to re-establish
to some degree pre-disturbance land forms and vegetation. We are, and will
continue to be, subject to such requirements for our activities on the Escobal
mine. Any significant environmental issues that may arise, however, could lead to increased reclamation
expenditures and could have a material adverse impact on our financial
resources.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Mineral Resource and Reserve Calculations are Only
Estimates

Any figures presented by us for Mineral Resources and Mineral
Reserves in this AIF will only be estimates. There is a degree of uncertainty
attributable to the estimation of Mineral Resources and Mineral Reserves. Until
Mineral Resources or Mineral Reserves are actually mined and processed, the
quantity of metal and grades must be considered estimates only and no assurances
can be given that the predicted levels of metals will be produced. The
estimating of Mineral Resources and Mineral Reserves includes a subjective
process that relies on the judgment of the persons preparing the estimates. The
process relies on the quantity and quality of available data and is based on
knowledge, mining experience, analysis of drilling results and industry
practices. Valid estimates made at a given time may significantly change when
new information becomes available. While we believe that the Mineral Resource
and Mineral Reserve estimates included in this AIF for the Escobal mine are well
established and reflect managements best estimates, by their nature, resource
and reserve estimates are imprecise and depend, to a certain extent, upon
analysis of drilling results and statistical inferences that may ultimately
prove to be inaccurate.

Estimated Mineral Resources or Mineral Reserves may have to be
recalculated based on changes in metal prices, further exploration or
development activity or actual production experience. This could materially and
adversely affect estimates of the volume or grade of mineralization, estimated
recovery rates or other important factors that influence resource or reserve
estimates. The extent to which resources may be reclassified as Proven or
Probable Mineral Reserves depends upon the demonstration of their profitable
recovery, among other criteria. Proven and Probable Mineral Reserves may not be
profitable in the future due to market price fluctuations, increased production
costs, reduced recovery rates, or other factors. A reduction in reserves could
have an adverse impact on our future cash flows, earnings, results of operations
and financial condition.

Infrastructure

Mining activities depend, to one degree or another, on adequate
infrastructure. Reliable roads, bridges, power sources and water supply are
important elements of infrastructure, which affect capital and operating costs.
If adequate infrastructure becomes unavailable in the future there can be no
assurance that operations will achieve the anticipated production volume; or
that the anticipated ongoing operating costs to operate the Escobal mine will
not be higher than anticipated. Furthermore, unusual or infrequent weather
phenomena, sabotage, government neglect or other interference in the maintenance
or provision of necessary infrastructure could adversely affect our operations
and profitability.

Employee Recruitment and Retention

Recruiting and retaining qualified personnel is critical to our
success. We are dependent on the services of key executives and other highly
skilled personnel focused on managing our interests. The number of persons
skilled in the acquisition, development, and operation of mining properties is
limited and competition for such persons is intense. As our business activity
grows, we will require additional key financial, administrative, geologic and
mining personnel as well as additional operations staff. There is no assurance
that we will be successful in attracting, training and retaining qualified
personnel as competition for persons with these skill sets increases. If we are
not successful in attracting, training and retaining qualified personnel, the
efficiency of our operations could be impaired, which could have an adverse
impact on our future cash flows, earnings, results of operations and financial
condition.

Adverse General Economic Conditions

Unprecedented events in global financial markets in the past
several years have had a profound impact on the global economy. Many industries,
including the silver and gold mining industry, are impacted by these market
conditions. Some of the key impacts of the current financial market turmoil
include contraction in credit markets resulting in a widening of credit risk,
devaluations, high volatility in global equity, commodity, foreign exchange and
precious metal markets and a lack of market liquidity. A continued or worsened
slowdown in the financial markets or other economic conditions, including but
not limited to, consumer spending, employment rates, business conditions,
inflation, fuel and energy costs, consumer debt levels, lack of available
credit, the state of the financial markets, interest rates and tax rates, may
adversely affect our growth and profitability. Specifically, the global
credit/liquidity crisis could impact the cost and availability of financing and
our overall liquidity, the volatility of silver, gold, lead and zinc prices
would impact our revenues, profits, losses and cash flow, continued recessionary
pressures could adversely impact demand for our production, volatile energy,
commodity and consumables prices and currency exchange rates would impact our
production costs and the devaluation and volatility of global stock markets would impact the valuation of our equity and
other securities. These factors could have a material adverse effect on our
financial condition and results of operations.

| | Tahoe Resources Inc.
| | --------------------

---

Competition for New Properties

An element of our business strategy is to make selected
acquisitions. We expect to continue to evaluate acquisition opportunities on a
regular basis and intend to pursue those opportunities that we believe are in
our long-term best interests. There is a limited supply of desirable mineral
lands available in areas where we would consider conducting exploration or
development activities. Because we face strong competition for new properties
from other mining companies, some of which have greater financial resources than
we do, we may be unable to acquire attractive new mining properties on terms
that we consider acceptable. In addition, competition in the mining business for
limited sources of capital could adversely impact our ability to acquire and
develop suitable mining properties, development projects, producing companies or
properties having significant exploration potential. As a result, there is no
assurance that we will be able to acquire additional mining properties.

The success of any acquisition that we make will depend upon
our ability to effectively manage the operations of entities we acquire and to
realize other anticipated benefits. The process of managing acquired businesses
may involve unforeseen difficulties and may require a disproportionate amount of
management resources. There can be no assurance that we will be able to
successfully manage the operations of businesses we acquire or that we achieve
the anticipated benefits of our acquisitions.

Shortages of Critical Parts, Equipment and Skilled
Labour

Our ability to acquire critical resources such as input
commodities, drilling equipment, tires and skilled labour due to increased
worldwide demand, may cause unanticipated cost increases and delays in delivery
times, thereby impacting operating costs, capital expenditures and development
schedules.

Foreign Exchange Rate Fluctuations

Fluctuations in currency exchange rates, particularly the
weakening of the US dollar against the Guatemalan quetzal could have a
significant effect on our results of operations. We may from time to time engage
in foreign currency trading activities in order to minimize these effects on our
operating results.

Developments Regarding Indigenous Peoples

To the best of our knowledge, although indigenous people may
have inhabited the area at one time, there are no indigenous populations
currently living in the immediate area of the Escobal mine site. In 2014, the
Company engaged with indigenous communities that expressed an interest in the
Escobal mine and to date, more than 70 indigenous community members have visited
the Escobal mine. In addition, indigenous peoples have participated in the
Companys avocado and coffee rust prevention programs and received donations of
agricultural supplies and musical instruments through its social investment
program. The Company also attended workshops with the Guatemalan government and
other private sector organizations to promote the elimination of all forms of
racial discrimination against indigenous groups.

According to Guatemalas most recent census--National Institute
of Statistics (Census 2002)--SRLFs population is 99.6% Ladino, meaning of
Hispanic origin and non-indigenous. Nevertheless, laws and movements respecting
the acquisition of lands and other rights of indigenous communities may alter
decades-old arrangements made by prior owners of the lands where the Escobal
mine is located. We used commercially reasonable efforts in our dealings to
ensure all land-related agreements were entered into in accordance with
applicable laws, but there is no guarantee that future laws and actions will not
have a material adverse effect on our operations at the Escobal mine or on our
financial position, cash flow and results of operations.

Community Action

In recent years, communities of both indigenous people and
others, and non-governmental organizations (NGOs) in Guatemala have become
more vocal and negative with respect to mining activities in the country. These
communities and NGOs have taken such actions as road closures, work stoppages
and initiating lawsuits for damages. In addition, they have petitioned human
rights organizations, including the Inter American Commission on Human Rights
(IACHR), alleging human rights violations associated with mining operations,
and the Canadian National Contact Point, alleging violations of the Organisation
for Economic Co-operation and Development Guidelines for Multinational
Enterprises, for support for their anti-mining activities. These actions relate
not only to current activities but often in respect to decades-old mining
activities by prior owners of mining properties. Such actions by communities and
NGOs may have a material adverse effect on our operations at the Escobal mine
and on the Companys financial position, cash flow and results of operations.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Claims and Legal Proceedings

We may be subject to claims or legal proceedings covering a
wide range of matters that arise in the ordinary course of business activities,
including claims relating to ex-employees. These matters may give rise to legal
uncertainties or have unfavourable results. We will carry liability insurance
coverage and mitigate risks that can be reasonably estimated. In addition, we
may be involved in disputes with other parties in the future that may result in
litigation or unfavourable resolution which could materially adversely impact
our financial position, cash flow and results of operations.

Conflicts of Interest

Certain of our directors and officers also serve as directors
and/or officers of other companies involved in natural resource exploration and
development. Consequently, there is a possibility that a conflict could arise
for such directors and officers. Any Company-related decision made by any of
these directors and officers should be made in accordance with their duties and
obligations to deal fairly and in good faith and to act in the best interests of
the Company and its shareholders. In addition, each of the directors is required
to declare and refrain from voting on any matter in which such director may have
a conflict of interest in accordance with the procedures set forth in the
Companys Code of Business Conduct, in the BCA and other applicable laws.

Production Decision

The Company did not base its initial production decision on a
feasibility study of Mineral Reserves, but subsequently in November 2014,
published the NI 43-101 compliant Escobal Feasibility Study demonstrating the
economic and technical viability of the Escobal mine.

RISKSRELATING
TOOURSHARES

Market Price of Shares and Volatility

Securities of mining companies have experienced substantial
volatility in the past, often based on factors unrelated to a companies
financial performance or prospects. These factors include macroeconomic
developments in North America and globally and market perceptions of the
attractiveness of particular industries. The price of our Shares is also likely
to be significantly affected by short-term changes in silver or other mineral
prices or in our financial condition or results of operations. Other
market-related factors unrelated to our performance that may affect the price of
the Shares include the following: the extent of analytical coverage available to
investors concerning our business may be limited if investment banks with
research capabilities do not follow the Company; lessening in trading volume and
general market interest in the Shares may affect an investors ability to trade
significant numbers of Shares; the size of our public float may limit the
ability of some institutions to invest in Shares; and a substantial decline in
the price of the Shares that persists for a significant period of time could
cause the Shares, if listed on an exchange, to be delisted from such exchange,
further reducing market liquidity. As a result of any of these factors, the
market price of the Shares at any given point in time may not accurately reflect
our long-term value. Securities class action litigation often has been brought
against companies following periods of volatility in the market price of their
securities. We may in the future be the target of similar litigation. Securities
litigation could result in substantial costs and damages and divert managements
attention and resources.

The market price of the Shares is affected by many other
variables which are not directly related to our success and are, therefore, not
within our control. These include other developments that affect the market for
all resource sector securities, the breadth of the public market for our Shares
and the attractiveness of alternative investments. The effect of these and other
factors on the market price of the Shares is expected to make the Share price
volatile in the future, which may result in losses to investors.

Dilution

Future sales or issuances of equity securities could decrease
the value of the Shares, dilute shareholders voting power and reduce future
potential earnings per Share.

We may sell additional equity securities in subsequent
offerings (including through the sale of securities convertible into Shares) and
may issue additional equity securities to finance our operations, development,
exploration, acquisitions or other projects. We cannot predict the size of
future sales and issuances of equity securities or the effect, if any, that
future sales and issuances of equity securities will have on the market price of
the Shares. Sales or issuances of a substantial number of equity securities, or
the perception that such sales could occur, may adversely affect prevailing
market prices for the Shares. With any additional sale or issuance of equity
securities, investors will suffer dilution of their voting power and may
experience dilution in our earnings per Share.

| | Tahoe Resources Inc.
| | --------------------

---

In addition, in connection with any equity financing by the
Company, the dilution to the relative proportion of the equity of the existing
shareholders of the Company may be increased in the event Goldcorp exercises its
anti-dilution rights under the Shareholders Agreement. Such rights are
exercisable by Goldcorp as long as Goldcorp and its affiliates beneficially own
at least 20% of the number of the issued and outstanding Shares. See General
Development of the Business  The Transaction Agreement and Shareholders
Agreement.

Significant Shareholder

As at March 11, 2015, Goldcorp owns 58,051,692 Shares,
representing approximately 39% of the current issued and outstanding Shares.
Subject to applicable law and to contractual protections negotiated by us,
Goldcorp may, as a practical matter, be able to cause the Company to effect
corporate transactions without the consent of other shareholders and cause or
prevent a change in control of the Company. See General Development of the
Business  The Transaction Agreement and Shareholders Agreement. Upon
completion of the business combination with Rio Alto, Goldcorps Share ownership
is expected to represent approximately 26% of the Shares expected to be issued
and outstanding at that time.

Dividends

The Companys policy and payment of cash dividends will be
reviewed periodically by our Board and will depend upon, among other things,
conditions then existing including earnings, financial condition and capital
requirements, restrictions in financing agreements, business opportunities and
conditions and other factors. See Dividends and Distributions.

|THE ESCOBAL
      MINE
|----------------------

RECENTACTIVITIES AT THEESCOBALMINE

The Company achieved commercial production at the Escobal mine
on January 14, 2014. In 2014, the mine processed a total of 1.25 million tonnes
of ore with average feed grades of 585 g/t Ag, 0.42 g/t Au, 0.93% Pb, and 1.43%
Zn; recovering 20.3 million ounces of silver, 10,893 ounces of gold, 10,359
tonnes of lead, and 13,394 tonnes of zinc in concentrate. Metal recoveries into
each of the lead and zinc concentrates met or exceeded expectations.

The Escobal mine and processing facilities are operating at
design capacity, with capital development and stope development and production
at levels to sustain the 3,500 tpd processing rate. Mill throughput in 2014
averaged 3,413 tpd, including the first quarter ramp-up period. Now that the
Escobal mine has reached operational design parameters, the Company is focused
on optimizing mining and processing procedures.

In November 2014, the Company released the Escobal Feasibility
Study which demonstrated the feasibility of the Escobal mine, updated the
Mineral Resource Estimate, and supported the Companys initial declaration of
Proven and Probable Mineral Reserves. At January 23, 2014, Measured and
Indicated Mineral Resources stood at 434 million ounces of silver at an average
silver grade of 346 g/t. At July 1, 2014, Proven and Probable Mineral Reserves
for the Escobal mine were 31.4 million tonnes with an average silver grade of
347 grams per tonne, containing 350.5 million ounces of silver in the life of
mine plan. The Escobal Feasibility Study predicts average annual silver
production in excess of 19 million ounces (22.4 million silver-equivalent
ounces) over the first ten years of the mine life. The Feasibility Study also
estimates the remaining capital to expand the production rate from 3,500 tpd to
4,500 tpd to be $24.3 million. All expansion capital and life of mine sustaining
capital are expected to be funded by the Companys existing cash balance and
projected future cash flow from the Escobal mine.

Expanding mine production to 4,500 tpd requires the purchase of
additional underground equipment, increased paste backfill capacity, and
additional tailing filtering capacity. Equipment purchases have been initiated
and the upgraded backfill plant and additional tailing filter unit are expected
to be commissioned and operational to support the planned schedule to reach the
increased throughput goals by mid-year 2015. We expect capital costs to remain
within the 2015 guidance the Company released on January 20, 2015 and available
on www.sedar.com or on the Companys website.

The Company employed 885 people in Guatemala at the end of
2014, excluding expatriate staff. The extensive safety and training programs
implemented in 2014 have resulted in reductions in employee accidents and safety
incidents and increased productivity in all areas of operations - surface
operations, process plant operations, and underground mine operations.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

PROJECTSETTING,LOCATION,ACCESS ANDINFRASTRUCTURE

The Escobal mine is located in southeast Guatemala,
approximately 40 km east-southeast of Guatemala City and 2 km east of the town
of SRLF in the Department of Santa Rosa. SRLF has a population of over 3,000
people and is 70 km from Guatemala City by paved road. Access to the area is
also possible from the northeast on a paved highway via the town of
Mataquescuintla. The majority of the workforce is derived from communities
within Santa Rosa department and elsewhere in Guatemala, with a small expatriate
contingency.

The local climate consists of two major seasons; a rainy
season between May and November and a dry season between November and May.
Annual precipitation averages 1,689 millimetres. Average temperatures vary
between 14°C and 33°C. Mining activities are expected to be able to be conducted
year-round.

The project area lies within mountainous terrain interspersed
with rolling hills and valleys. Elevations range from 1,300 metres in the valley
on the west end of the Escobal vein to 1,800 metres in the drilled east
extension. The high mountain range of Montana Soledad Grande north and east of
the Escobal mine rises to an elevation of 2,600 metres. Vegetation is
characterized by natural mountain forest species that consist of oak, pine and
cypress tree varieties and lower strata scrub-brush species.

There is a high voltage electrical line that extends to the
town of SRLF, which has potential to be upgraded to handle the anticipated load
requirements for the Escobal mine. The Companys long-term expectation is that
electrical power may be provided to the project from Guatemalas existing
national grid by means of connecting to the existing SRLF substation at a
voltage level of 69 kilovolts, and constructing a new 7 km 69kv line to site.
Power line installation along the highway right-of-way commenced in September
2012 but was interrupted by protestors. Given the civil unrest, the Company
implemented plans to provide diesel generator power for the mine in order to
prevent delay to the production schedule. Power generation is more than adequate
to support full scale production and is expected to be available for as long as
the Company chooses to utilize this option. The Company is evaluating
alternative sources of power for the Escobal mine including recommencement of
the power line work.

In 2011, the Company established communication facilities at
the mine site including telephone and internet services. Water wells within the
Escobal mine area are capable of providing sufficient water for the Escobal mine
without impacting local residents or communities. Sufficient land has been
purchased to host the required tailings, waste rock, process plant facilities,
and underground access for the mining operation. Water wells have been developed
within the Escobal mine area to provide water for mining and process needs.
Potable water is brought to the project from outside sources as needed.

HISTORY

The Escobal property dates back to 1996 when Entre Mares
prospected in the area and identified high-grade gold values associated with
surface quartz veins in the western portion of the Escobal vein. In 2006, Entre
Mares initiated regional exploration in the area, partially based on verifying
geochemical anomalies in the companys database. In late 2006, significant
silver and gold grades were detected from surface sampling along an extensive
alteration zone developed over the Escobal vein. An exploration license was
applied for in October 2006 and was granted in March 2007. Exploration drilling
commenced in May 2007 and is ongoing.

In early 2010, Goldcorp, predecessor owner of the Escobal mine,
reported a Measured and Indicated Mineral Resource estimate for the Escobal
property of 6.97 million tonnes at 0.63 g/t Au and 580.3 g/t Ag and an Inferred
Resource of 13.15 million tonnes at 0.53 g/t Au and 443.4 g/t Ag. Goldcorp did
not release a technical report to support the Mineral Resource declaration at
that time.

Four NI 43-101 Technical Reports have been completed on the
Escobal property or mine as follows:

| | AMEC Americas Ltd. in April 2010;                              
|- | ---------------------------------------------------------------
|  |                                                                
| | M3 Engineering & Technology Corporation in
      November 2010;
|  |                                                                
| | M3 in May 2012 (reissued July 2013); and                       
|  |                                                                
| | M3 in November 2014.                                           

The technical report entitled Escobal Mine Guatemala NI 43-101
Feasibility Study and dated November 5, 2014 forms the basis of Tahoes
operational plans for the Escobal mine as discussed herein. All scientific and
technical information in this AIF relating to updates to the Escobal mine
disclosure since the date of Escobal Feasibility Study has been verified by
Charles Muerhoff, the Companys Vice President Technical Services and Qualified
Person as defined by NI 43-101.

| | Tahoe Resources Inc.
| | --------------------

---

2014ESCOBALFEASIBILITYSTUDY

We engaged M3, an independent mining and engineering consulting
firm, of Tucson, Arizona to supervise the preparation of the Escobal Feasibility
Study issued on November 5, 2014, which is available for viewing on SEDAR under
our profile and on our website at www.tahoeresourcesinc.com. The Escobal
Feasibility Study contains an updated Mineral Resource estimate, the Companys
initial Mineral Reserve statement and an economic analysis demonstrating the
viability of the Escobal mine. The effective date of the Escobal Feasibility
Study is November 5, 2014; the effective date of the Mineral Resource estimate
is January 23, 2014; and the effective date of the Mineral Reserve estimate is
July 1, 2014.

The Qualified Person and principal author of the Escobal
Feasibility Study is Conrad Huss, P.E., of M3. All M3 personnel who contributed
to the study were supervised by Mr. Huss. The Qualified Person responsible for
the review of the civil and environmental aspects of the Escobal mine is Daniel
Roth, P.E., of M3. The Qualified Person responsible for the review of the
metallurgical testing, process flow sheets, and process plant at the Escobal
mine is Thomas L. Drielick, P.E., of M3. The Qualified Person responsible for
the review of the tailings and waste rock facility at the Escobal mine is Jack
Caldwell, P.E., of Robertson GeoConsultants Inc. of Vancouver, British Columbia,
an independent engineering consulting firm. The Qualified Person responsible for
the review of the geology, drilling, sampling methodology, sample preparation
and analysis, data verification, and for preparing the Mineral Resource estimate
for the Escobal mine, is Paul Tietz, C.P.G., of Mine Development Associates
(MDA) of Reno, Nevada, an independent mining consulting firm. The Qualified
Person responsible for the Mineral Reserve estimate and review of mining
methods, mine infrastructure, and production scheduling is Matthew Blattman,
P.E. of Blattman Brothers Consulting, LLC of Cypress, Texas, an independent
mining consulting firm.

The November 2014 Feasibility Study forms the basis for the
operating and production plan for the Escobal mine.

MINERALTENURE,SURFACERIGHTS,ANDROYALTIES

Mineral Tenure

The Escobal mine is 100% owned by the Company through its
wholly-owned subsidiary Minera San Rafael, S.A, and currently comprises two
mineral licenses covering approximately 79.9 km2 on the Escobal vein and
extensions. These include the Escobal exploitation license covering 20 km2 and
the Juan Bosco exploration license covering 59.9 km2. In addition, there are a
number of applications for reconnaissance and exploration licenses associated
with the Escobal mine. The granting of these license applications is still
pending.

Exploration licenses in Guatemala are granted for an initial
period of three years which can be extended for two additional periods for two
years each, for a total holding period of seven years. According to Guatemala
law, after 2014, no additional extensions will be permitted and an exploitation
license application must be made. Prior to the application for an exploitation
license, a pre-feasibility study, mine plan and environmental impact assessment
must be completed.

The Oasis, Lucero and Andres exploration licences were granted
to Entre Mares on March 26, 2007, August 21, 2007 and December 17, 2007,
respectively, and were transferred to Minera San Rafael as part of the
Acquisition in 2010. On July 8, 2011, an application was submitted to MEM for
the Escobal exploitation concession, covering 20.0 km2 of area over
the Escobal vein designated for mine development in the original Oasis
exploration concession. On October 21, 2011, MARN notified the Company that it
had approved the Exploitation EIS and on April 3, 2014, MEM approved the Escobal
exploitation concession for a period of 25 years. Upon filing of the Escobal
exploitation concession application, three new exploration concessions (Oasis I,
II, III) were requested to occupy the area liberated through elimination of the
original Oasis concession. Similarly, new exploration concessions were requested
over areas covered by the Andres (Andres I and II) on May 12, 2014 and Lucero
(Lucero I and Lucerito) on August 8, 2014, after completion of the original
seven year holding period on these concession areas.

In addition to the granted exploration and exploitation
licenses, applications for the Soledad and El Silencio reconnaissance licenses
were submitted to MEM in 2006 and 2010, respectively. The granting of these
license applications is still pending.

In an attempt to encourage revision of the mining law that had
been proposed in 2012, Guatemala President Otto Perez Molina asked Congress in
July to approve a two-year temporary moratorium on the granting of new mining
and exploration licenses. Congress has taken no action on the proposal. The
Companys existing licenses, including the Escobal exploitation license, have
not been affected by the Presidents request.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Figure 2  Escobal mine Concession Map



The following table shows concession type, size and
application/grant/expiry dates for all MSR concessions:

ConcessionLicense No.
    Type
    Area**(km2)**
    ApplicationDate
    ApprovalDate
    1st
    ExtensionApprovedOASIS LEXR-040-06
    Exploration
    40.0
    10/25/2006
    3/15/2007
    4/27/2010LUCERO LEXR-041-06
    Exploration
    30.8
    10/25/2006
    7/20/2007
    3/29/2012SOLEDAD SR-03-06
    Recon.
    802.5
    12/6/2006
    pendingANDRES LEXR-030-07
    Exploration
    40.0
    5/18/2007
    11/6/2007
    3/29/2012EL OLIVO SEXR-029-07
    Exploration
    36.0
    5/18/2007
    pendingJUAN BOSCO SEXR-089-08
    Exploration
    59.9
    11/12/2008
    5/9/2012PUENTE QUEBRADO SEXR-049-09
    Exploration
    3.0
    10/9/2009
    pendingMELISSA SEXR-050-09
    Exploration
    3.0
    10/9/2009
    pendingVALENCIA SEXR-050-10
    Exploration
    7.0
    8/23/2010
    pendingGRANADA SEXR-054-10
    Exploration
    5.0
    10/6/2010
    pendingCRISTINA SEXR-055-10
    Exploration
    52.5
    10/6/2010
    pendingEL SILENCIO SR-06-10
    Recon.
    1,098.1
    11/4/2010
    pendingCIPRESES SEXR-048-09
    Exploration
    3.0
    10/09/2009
    pendingPAJAL SEXR-058-11
    Exploration
    66.0
    5/4/2011
    pendingESCOBAL LEXT-015-11
    Exploitation
    20.0
    7/8/2011
    04/03/2013EL DURAZNO SEXR-104-11
    Exploration
    48.8
    7/29/2011
    pending


| | Tahoe Resources Inc.
| | --------------------

---

ConcessionLicense
      No.
    Type
    Area(km2)
    ApplicationDate
    ApprovalDate
    1st ExtensionApprovedPAJARITA SEXR-104-11
    Exploration
    57.0
    7/29/2011
    pendingTERESA SEXR-109-11
    Exploration
    68.5
    8/17/2011
    pendingOASIS I SEXR-117-11
    Exploration
    12.8
    8/31/2011
    pendingOASIS II SEXR-118-11
    Exploration
    7.0
    8/31/2011
    pendingOASIS III SEXR-119-11
    Exploration
    0.2
    8/31/2011
    pending


Yearly payments are made to MEM for each concession based on
concession size and a graduating concession age factor. For exploration
concessions the current holding cost amounts to approximately $400 to $1,200 per
km2. For exploitation concessions a fixed cost of approximately
$1,500 is charged per km2. Required payments are current for all
concessions held by the Company.

There are no defined work requirements to keep an exploration
concession valid, although exploration activity (sampling, mapping, etc.) must
to be conducted and results filed with the MEM on an annual basis. The Company
has filed exploration activity reports with MEM for all exploration and
exploitation concessions each year as required.

Surface Rights

In Guatemala, the surface rights are independent of mining
rights and must be negotiated separately. There is no allowance for
expropriation in Guatemala. Approximately 281 hectares of surface rights have
been acquired or are under contract by the Company. These surface rights are
sufficient to provide for our operations at the Escobal mine, including areas
for tailings disposal, waste rock disposal, processing plant, and ancillary
surface facilities.

Royalty

Up to December 31, 2014, the Company paid a 5% NSR royalty (1%
mandatory, 4% voluntary) on the concentrates sold from the Escobal mine
production. Effective January 1, 2015, the royalty increased to a 10% NSR. See
Doing Business in Guatemala  Mining for details on the updated royalty rates
effective January 1, 2015, as set out in the updated Guatemalan mining law. See
Description of Our Business  Doing Business in Guatemala  Mining.

PERMITS

Operations at the Escobal mine are conducted under permits and
licenses issued by MEM and MARN. All required permits for surface and
underground activities are in place. The environmental approvals and
requirements for the Escobal mine from MARN are specified in Resolution
3061-2011/DIGARN/ECM/beor, dated October 19, 2011. Exploitation activities are
authorized by MEM through exploitation license LEXT 015-11, dated April 3, 2013.
The export of concentrates from the Escobal mine is licensed through MEM, with
annual renewal requirements. The Companys export license (EXPORT-TI-17-2014) is
current and valid.

ENVIRONMENT

We have implemented a comprehensive Environmental Impact
Management Program developed specifically for the conditions at Escobal, which
addresses operating, reporting, and mitigation procedures for surface and
underground operations. Based on our due diligence in respect of the
Acquisition, our completed and approved Exploitation EIS and our activities at
the Escobal mine since that time, we have identified and, where applicable,
mitigated potential material environmental liabilities through our Environmental
Impact Management Program.

Our environmental management mandate is to meet or exceed North
American standards, practices and regulations. No impacted materials are
directly discharged from the site. Impacted water is treated when necessary to
meet or exceed industry standards prior to being released into the environment.
Our Environmental Impact Management Program for the Escobal project commenced in
2011 and includes the following:

| | Filtered and dry stacked tailings;           
|- | ---------------------------------------------
|  |                                              
| | Lined storm water and waste water facilities;
|  |                                              
| | A concurrent reclamation program;            

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

| | Process water recovery and recycling;                 
|- | ------------------------------------------------------
|  |                                                       
| | Process/contact water treatment systems;              
|  |                                                       
| | Surface and groundwater monitoring programs;
      and
|  |                                                       
| | Underground paste backfill.                           

The Company estimates the present value of asset retirement
obligations at $3.5 million to reclaim the Escobal mine at the end of the mine
life. As at December 31, 2014, we had recorded the full amount of this
reclamation liability. No liability has been recorded for environmental
disturbance associated with our exploration drill pads and drill roads since
they are concurrently reclaimed as part of the drilling process as soon as
drilling is finished.

GEOLOGY ANDMINERALIZATION

The geological setting of Guatemala is comprised of two
tectonic terrains juxtaposed across a major tectonic plate boundary. The
northern half of Guatemala is on the North American plate, and the southern half
is on the Caribbean plate with three major east-west trending faults forming the
collision boundary. The Escobal mine is on the Caribbean plate, south of the
faults. The area is characterized by a series of volcanic units derived from
multiple eruptive events. The Escobal deposit is an intermediate-sulfidation
fault-related vein formed within Tertiary sedimentary and volcanic rocks within
the Caribbean plate. The Escobal vein system hosts silver, gold, lead and zinc,
with an associated epithermal suite of elements, within quartz and
quartz-carbonate veins. Quartz veins and stockwork up to 50 metres wide, with up
to 10% sulfides, form at the core of the Escobal deposit and grade outward
through silicification, quartz-sericite, argillic and propylitic alteration
zones.

Drilling to date has identified continuous precious and base
metal mineralization over a 2,400 metre lateral distance and 1,200 metre
vertical range in three zones; the East, West and Central zones. The vein system
is oriented generally east-west, with variable dips. The East zone dips to the
south from 60° to 75° and steepens to near-vertical at depth. The majority of
the mineralized structure(s) in the West zone dips from 60° to 70° to the north,
steepens to near-vertical and then again dips towards the north at depth. The
upper eastern portion of the Central zone dips 60° to 70° to the south as in the
East Zone, and changes to vertical or north dip at depth.

Drilling at the Escobal mine property was conducted by Entre
Mares (Goldcorp) from 2007 up to the time of our acquisition of the Escobal mine
and we have continued drilling since that time. Drilling has been carried out
using a combination of contracted and company-owned drills. As of December 31,
2014, a total of 481 surface drill holes (204,323 metres) have targeted the
Escobal vein system. An additional 674 diamond drill holes (77,231 metres) were
completed from underground drill stations using company-owned drills for stope
definition. All vein intercepts at the Escobal mine were drilled by diamond
drill (core) methods, with the majority of mineralized intercepts drilled with
NTW-size drill core.

The Escobal vein is one of numerous vein showings recognized in
the district. Using the geologic model developed for the Escobal vein,
prospective areas were evaluated throughout the region to identify drill-viable
targets that occur within our currently held license areas. Through the end of
2014, initial drill testing of vein targets outside of the Escobal exploitation
concession has consisted of 16 drill holes totaling 4,964 metres.

SAMPLEPREPARATION,ANALYSIS ANDSECURITY

The drill core for the Escobal mine is photographed, logged for
geologic and geotechnical properties and sampled at the project site. Geologists
determine sample intervals based on geologic and/or mineralogic changes. The
drill core is generally sampled at 1.0 -meter to 1.5 -metre lengths though
sample intervals can be defined from less than one metre in zones of discreet
mineralization to over three metres in weakly mineralized or altered areas. Once
the sample intervals are determined, the core is marked and tagged in wood core
boxes.

Exploration core samples selected for analysis are cut
lengthwise using mechanized diamond saws. One-half of the core is placed in a
plastic sample bag with a sample tag while the remaining half core is replaced
in the core box for future reference. The samples are then taken to SRLF where
they are stored in Minera San Rafaels secured office/warehouse facility until
they are picked up by Inspectorate, an independent commercial laboratory.
Inspectorate operates a sample preparation facility in Guatemala City and
couriers the sample pulps to their facility in Reno, Nevada USA for analysis.
Inspectorate holds sample pulps in secured storage in Guatemala City.

Underground definition drill core is normally sampled in its
entirety, with the samples placed in plastic bags with sample tags. Samples are
stored in a secure location at the Escobal mine site until they are either picked up by, or delivered to, Inspectorate. Inspectorate holds
sample pulps in secured storage in Guatemala City and returns coarse reject to
the mine.

| | Tahoe Resources Inc.
| | --------------------

---

Inspectorate has been the primary analytical laboratory for all
Escobal mine drill sample preparation and analysis, with only minor exceptions.
All samples have been prepared and analyzed using industry-standard practices
suitable for the mineralization at the Escobal mine. Gold is analyzed by fire
assay with atomic absorption (AA) finish; silver is analyzed by digestion/AA,
with higher grade samples repeated using fire assay and gravimetric methods.
Lead and zinc are analyzed by induced coupled polarization or by digestion/AA,
with high grade samples repeated using titration methods. Both Entre Mares and
Tahoe have conducted quality assurance and quality control (QA/QC) programs
throughout all of the drill campaigns at the Escobal mine, which include check
assaying and duplicate sample assaying at other laboratories, and the use of
blind assay standards and assay blanks.

MINERALRESOURCES

The Mineral Resource estimate for the Escobal mine as published
in the November 2014 Feasibility Study contains 433.9 million ounces of silver
classified as Measured and Indicated Mineral Resources and 9.3 million ounces of
silver classified as Inferred Mineral Resources, with significant amounts of
gold, lead, and zinc reported in both resource categories. The effective date of
the Escobal Mineral Resource estimate is January 23, 2014. A summary of the
Measured, Indicated and Inferred Mineral Resources, using a cut-off grade of 130
g/t silver-equivalent, is provided in the following table:

NOVEMBER 2014 ESCOBAL FEASIBILITY STUDY:
    SUMMARY OF MINERAL RESOURCESClassification
    Tonnes (M)
    Silver (g/t)
    Gold (g/t)
    Lead (%)
    Zinc (%)
    Silver (Moz)
    Gold (koz)
    Lead (kt)
    Zinc (kt)Measured Resources
    6.5
    511
    0.40
    0.91
    1.59
    107.4
    85
    59
    104Indicated Resources
    32.5
    313
    0.32
    0.68
    1.12
    326.5
    333
    221
    364Measured + Indicated
    39.0
    346
    0.33
    0.72
    1.20
    433.9
    418
    281
    467Inferred Resources
    1.4
    224
    1.24
    0.25
    0.47
    9.3
    50
    3
6


Mineral Resources for the Escobal vein were estimated from
approximately 58,600 samples obtained from 842 surface and underground diamond
drill core holes, totaling 231,326 metres. Data verification for the Mineral
Resources as reported in the November 2014 Escobal Feasibility Study was
supervised by Paul Tietz, CPG, of MDA. Data verification included verification
of drill locations in the field, review of sample handling and data collection
procedures, and independent verification sampling/assaying of drill core. MDA
also completed a full audit of the Escobal database, analysis of the QA/QC data
and a study of core recovery and its relationship to metal grades.

MDA modeled and estimated the Escobal mine Mineral Resources by
refining the geologic model, evaluating the drill data statistically,
interpreting mineral domains on cross sections and level plans, analyzing the
modeled mineralization statistically to establish estimation parameters, and
estimating silver, lead, gold, and zinc grades into a three-dimensional block
model using inverse distance cubed (ID3).

Silver-equivalent value for determining the resource cut-off
grade was calculated using metal prices of $22.00/oz Ag, $1,325/oz Au, $1.00/lb
Pb, and $0.95/lb Zn, with no metal recovery factors applied. The effective date
of the Escobal Mineral Resources estimate is January 23, 2014.

MINERALRESERVES

The Escobal Proven and Probable Mineral Reserves total 31.4
million tonnes at average grades of 347 g/t Ag, 0.33 g/t Au, 0.74% lead and
1.21% zinc containing 350.5 million ounces of silver, 335,600 ounces of gold,
232,100 tonnes of lead and 381,600 tonnes of zinc. A summary of the Escobal
Mineral Reserves estimate is provided in the following table:

NOVEMBER 2014 ESCOBAL FEASIBILITY STUDY:
      SUMMARY OF MINERAL RESERVESClassification
    Tonnes (M)
    Silver (g/t)
    Gold (g/t)
    Lead (%)
    Zinc (%)
    Silver (Moz)
    Gold (koz)
    Lead (kt)
    Zinc (kt)Proven Reserves
    6.0
    457
    0.37
    0.86
    1.51
    87.8
    70.8
    51.7
    90.2Probable Reserves
    25.4
    321
    0.32
    0.71
    1.14
    262.7
    265.2
    180.4
    291.3Proven + Probable
    31.4
    347
    0.33
    0.74
    1.21
    350.5
    335.6
    232.1
381.6


The Escobal Mineral Reserves were estimated by Matthew
Blattman, P.E., of Blattman Brothers Consulting LLC. Blattman completed a mine
design and schedule from the Measured and Indicated Resources based on the
actual production and development methods and rates from the Escobal mine.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Cut-off grades to define the Mineral Reserves were calculated
from the NSR value of the resource model blocks minus the production cost to
account for variability in mining method and metallurgical response. NSR value
was determined using metal prices of $22.50 per ounce silver, $1,300.00 per
ounce gold, $0.95 per pound lead and $0.90 per pound zinc. By using a slightly
optimistic value for silver, the continuity of the ore-grade mineralization
along the edges of the mineral deposit provided for more realistic stope design.
Mining, processing and general and administrative (G&A) costs, metallurgical
performance and smelter contract rates from the Escobal mine, and engineering
first-principles were used to derive operating costs and revenue.

Proven and Probable Mineral Reserves include 31% dilution that
takes into account internal and external mining dilution and dilution from paste
backfill where applicable. Subeconomic material internal to the stope designs
and external mining dilution account for approximately 20% and 9% of the
dilution total, respectively. Paste backfill dilution accounts for about 2%.
Resources within the mine plan classified as Inferred have been given metal
grades of zero. Blattman acknowledges that lower dilution rates may be
attainable when mining.

The effective date of the Escobal Mineral Reserves Estimate is
July 1, 2014. The reserve model has been depleted to account for Mineral
Resources extracted prior to this date. Mineral Reserves are inclusive of
Mineral Resources.

MINING

The Escobal mine is accessed via two primary declines (East
Central and West Central ramps) which provide access to the Central and West
zones of the deposit. A third internal primary ramp is currently being driven
into the East Zone from the East Central ramp. Access ramps are driven from the
main ramp system to establish sublevel footwall laterals driven parallel to the
vein on 25m vertical intervals. Primary and secondary development headings are
mined 5 m wide by 6 m high with arched backs. The primary ramps are typically
driven at a maximum gradient of -15%.

Underground development of the Escobal mine commenced in May
2011, with construction of the East Central and West Central decline portals;
after which ramp development began. Through the end of 2014, approximately
10,800 metres of capital development and 400 metres of vertical development
(ventilation raises) have been completed.

Mining is being done by transverse longhole stoping with future
mining by a combination of transverse and longitudinal longhole stoping. The
stopes are accessed from the footwall laterals. Through the end of 2014,
approximately 11,000 metres of stope development has been completed. Ore is
hauled to the surface by truck to the ore stockpile, located proximal to the
primary crusher. Development waste rock is hauled by truck to the surface and
used as construction material for the dry stack tailings buttress.

Filtered tails from the process plant are combined with cement
and water to make a structural fill (paste backfill) for filling the underground
voids produced from stope mining. The paste backfill plant is centrally located
on the surface above the Central zone and produces backfill for delivery via a
system of ceramic-lined steel and HDPE pipe into the mine for placement in the
mined-out stopes to provide stability to the excavated openings and allow for
maximum recovery of the resource.

Through December 31, 2014, the Escobal mine delivered 1.43
million tonnes of ore with estimated average grades of 584 g/t Ag, 0.45 g/t Au,
0.91% Pb, and 1.34% Sn to the surface stockpile.

PROCESSING

Ore from the Escobal mine is processed by differential
flotation producing lead concentrates with high precious metal (silver and gold)
grades and zinc concentrates with a lesser precious metal component. The
original design basis for the processing facility is 3,500 tonnes of ore per day
or 1.28 million tonnes per year; though the installed crushing, grinding,
flotation and concentrate processing components were sized for the contemplated
increased throughput rate of 4,500 tpd. Mill commissioning was initiated in the
second half of 2013 with the first metal concentrates produced on September 30,
2013. The Company declared commercial production in January 2014 with the
completion of mill commissioning and continued to ramp up the mill throughput
rate through the first half of 2014. The Escobal ore processing facility is now
operating at design levels and with metal recoveries generally meeting or
exceeding design expectations.

Ore is transported from the underground mine to a stockpile
located proximal to the primary crusher, from where it is delivered by front end
loader to the crusher. The ore is reduced via a three stage crushing circuit
followed by a single ball mill. This is followed by a conventional lead-zinc
differential flotation circuit consisting of tank cells with separate circuits for lead and
zinc. Lead and zinc concentrates produced at the concentrator facility are
filtered, packaged into super sacks which are placed in containers, and loaded
onto trucks for shipment to port for delivery to commercial concentrate smelters
and metal refineries.

| | Tahoe Resources Inc.
| | --------------------

---

Since the declaration of commercial production, the Escobal
plant has processed 1.25 million tonnes of ore at average grades of 585 g/t Ag,
0.42 g/t Au, 0.93% Pb, and 1.43% Zn; producing 20.3 million ounces of silver,
10,893 ounces of gold, 10,359 tonnes of lead, and 13,394 tonnes of zinc
contained in concentrate. Metal recovery into concentrates averaged 86.7% for
silver, 64.0% for gold, 89.0% for lead, and 75.2% for zinc.

Expansion to 4,500 tpd requires additional tailing filtering
capacity and modifications and/or upgrades to ancillary mill components, which
the Company expects to complete by mid-2015 to accommodate the increased
throughput.

TAILINGS ANDWASTEROCKFACILITY

Tailings produced by the Escobal process facility are filtered
to approximately 16% to 18% moisture prior to delivery to the paste backfill
plant or surface repository. Rather than using a traditional pond system,
tailings produced by the Escobal process facility that are not returned to the
underground mine as paste backfill will be dry stacked on the surface in an
engineered facility. Unlike conventional tailings impoundments which are
designed to retain water and tailings behind dam embankments and require large
surface areas, dry stack facilities require a smaller footprint, have long-term
structural integrity, and maximize water conservation.

The Escobal dry stack facility is built using development rock
from the mine to construct rock buttresses at the face of the facility on
5-metre high lifts. Filtered tailings are trucked to the facility and placed
behind the rock buttresses in 30-centimetre layers and compacted to minimize
infiltration from precipitation. This process will be repeated throughout the
life of the mine. The facility is underlain by a system of underdrains to
collect water that may seep through the tailings and to divert shallow
downslope-migrating groundwater. Surface waters are diverted around the facility
through a series of water diversion channels constructed along the upslope
perimeter of the facility.

The construction method of the Escobal dry stack facility
allows for concurrent reclamation as each lift is completed, which will greatly
simplify the closure of the facility in an environmentally sound manner. As
successive lifts of the dewatered tails are placed and compacted behind the
perimeter rock buttresses, the lower rock slopes will be covered with stockpiled
topsoil and re-vegetated. At final closure, the vegetated slope will replicate
the natural slopes of the surrounding topography.

TRANSPORTATION ANDLOGISTICS

Guatemala has ports on both the Pacific and the Caribbean
coasts. Access to the mine site from both ports is on paved highway. Filtered
concentrate is placed in one or two tonne super-sacks, placed in seagoing
containers, and carried on highway tractor trailer units along paved highway to
port for shipment to international smelters.

RECLAMATION

The entire facility for the Escobal mine has been designed and
constructed with closure in mind, to the greatest extent practicable. The
facilities are designed and operated to minimize the footprint and areas of
disturbance and to utilize the most advanced planning and reclamation techniques
available including dry stack tailings, concurrent reclamation and geomorphic
landform grading.

The disturbance footprint of the Escobal mine site is
approximately 100 hectares. Reclamation will commence as soon as practical
during operations by placing salvaged topsoil on outslopes and encouraging
vegetation. Final reclamation of the top surface will occur at final closure at
the end of mine life. The present value of asset retirement obligations for the
Escobal mine are currently estimated at $3.5 million.

2014CAPITALCOSTS

During 2014, the Companys total capitalized costs for the
Escobal mine were $41.2 million. Sustaining costs totalled $21.2 million,
comprising $9.6 million of underground development and $11.6 million of
surface-related sustaining capital. Capitalized construction closeout costs were
$5.7 million and other capitalized costs totalled $14.3 million.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

DIVIDENDS AND DISTRIBUTIONS

In December 2014 the Company paid its inaugural cash dividend
of $0.02 per Share, and additional $0.02 per Share dividends were paid in
January and February 2015. Although the Company expects to continue paying
monthly dividends, pursuant to the Companys dividend policy, the continuation
and amount of the dividend is to be determined by the Board, with regard to the
earnings and financial requirements of the Company and other applicable
conditions existing at such time. No dividends were declared or paid prior to
December 2014.

DESCRIPTION OF CAPITAL STRUCTURE

The Company is authorized to issue an unlimited number of
Shares. As at the date of this AIF, 147,689,775 shares were issued and
outstanding as fully paid and non-assessable Shares.

The holders of Shares are entitled to one vote per Share at
meetings of the shareholders of the Company. Holders of Shares are entitled to
dividends, if, as and when declared by the Board and, upon liquidation, to
participate equally in such assets of the Company as are distributed to the
holders of Shares.

MARKET FOR SECURITIES

The Shares are listed on the TSX under the symbol THO and on
the NYSE under the symbol TAHO. The following table sets forth information
relating to the trading of the Shares on both the TSX and NYSE for the months
indicated.

|TRADING HISTORY
      ON THE TSX
|--------------------------------

TRADING PRICE (CDN$)2014
    High
    Low
    VolumeJanuary
    20.53
    16.85
    5,252,500February
    26.23
    19.15
    5,510,400March
    27.16
    22.64
    5,679,200April
    25.00
    22.39
    2,950,000May
    25.66
    22.20
    3,481,800June
    28.14
    22.36
    3,775,300July
    29.82
    27.17
    4,758,200August
    30.15
    27.26
    3,616,800September
    27.54
    22.47
    3,998,800October
    24.43
    19.00
    6,746,500November
    20.58
    17.68
    5,769,200December
    19.45
    15.96
5,875,500


TRADING PRICE (CDN$)2015
    High
    Low
    VolumeJanuary
    19.45
    15.96
    5,875,500February
    18.42
    15.56
13,982,100


Source: http://finance.yahoo.com/q?s=tho.to

The price of the Shares as reported by the TSX at the close of
business on December 31, 2014, the last business day of the year in Canada, was
CAD$16.15 per share and on March 11, 2015 was CAD$15.09 per share.

| | Tahoe Resources Inc.
| | --------------------

---

|TRADING HISTORY
      ON THE NYSE
|---------------------------------

TRADING PRICE (US$)2014
    High
    Low
    VolumeJanuary
    18.42
    15.73
    1,627,000February
    23.68
    17.27
    2,437,600March
    24.48
    20.46
    3,174,800April
    22.75
    20.33
    2,230,200May
    23.63
    20.46
    1,651,700June
    26.23
    20.48
    2,966,200July
    27.48
    25.45
    4,036,500August
    27.55
    25.00
    2,500,300September
    25.21
    20.05
    2,159,400October
    21.73
    16.85
    3,801,900November
    17.97
    15.61
    4,508,300December
    15.25
    11.33
4,880,100


TRADING PRICE (US$)2015
    High
    Low
    VolumeJanuary
    16.13
    13.06
    4,103,600February
    18.42
    15.56
14,296,600


Source: http://finance.yahoo.com/q?s=taho

The price of Shares as reported by the NYSE at the close of
business on December 31, 2014, the last business day of the year in the US, was
$13.87 and on March 11, 2015 was $11.79 per share.

PRIOR SALES

In the 12-month period ended December 31, 2014, the Company
granted 105,000 options and 248,000 share awards (consisting of 210,000 Deferred
Share Awards granted on April 1, 2014, 3,000 Deferred Share Awards granted on
August 12, 2014 and 35,000 Restricted Share Awards granted on May 8, 2014) under
its Share Option and Incentive Share Plan adopted on April 20, 2010. The details
of the options granted during the year ended December 31, 2014 are as follows:

|Grant Date       | Options Granted | CAD$   | Expiry Date     
|---------------- | --------------- | ------ | ----------------
|April 1, 2014    | 42,000          | $23.37 | April 1, 2019   
|June 1, 2014     | 12,000          | $22.49 | June 1, 2019    
|June 2, 2015     | 12,000          | $22.49 | June 2, 2019    
|June 8, 2014     | 12,000          | $23.18 | June 8, 2019    
|August 12, 2014  | 12,000          | $29.74 | August 12, 2019 
|October 20, 2014 | 15,000          | $23.68 | October 20, 2019

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

DIRECTORS AND EXECUTIVE OFFICERS

|DIRECTORS AND
      EXECUTIVE OFFICERS
|--------------------------------------

The following tables set forth information regarding our
directors and executive officers. The term of office for the Directors expires
as of the Companys Annual General Meeting which will be held on May 9, 2015.

DIRECTORSName and Municipality ofResidence
    Position(s) withthe Company
    Date ofAppointment
    Principal
    OccupationC. KEVIN MCARTHUR(5)Reno, Nevada, United States
    Vice Chair, Chief
      Executive Officer and Director
    10-Nov-09
    Vice Chair and Chief
      Executive Officer of the Company.A. DAN ROVIG Reno, Nevada,
      United States
    Director and Chair
    8-Jun-10
    Independent consultant.LORNE B. ANDERSON(1) (2)Surrey, British Columbia, Canada
    Director
    14-Apr-10
    Independent financial
      consultant.PAUL B. SWEENEY(1) (3)Vancouver, British Columbia, Canada
    Director
    14-Apr-10
    Independent business
      consultant.JAMES S. VOORHEES(2) (4)Reno, Nevada, United States
    Director
    14-Apr-10
    Independent director.JOHN P. BELL(2) (4)Vancouver, British Columbia, Canada
    Director
    8-Jun-10
    Independent director.KENNETH F. WILLIAMSON(1)(3)Dwight, Ontario, Canada
    Director
    8-Jun-10
    Independent director.TANYA JAKUSCONEK(3) (4)Toronto, Ontario, Canada
    Director
    2-May-11
    Senior Gold Research
      Analyst for Scotia Bank.


|Member of:
|----------
|(1)       
|(2)       
|(3)       
|(4)       
|Other:    
|(5)       

EXECUTIVE OFFICERSName and Municipality ofResidence
    Position(s) withthe Company
    Date ofAppointment
    Principal
    OccupationC. KEVIN MCARTHUR Reno, Nevada, United States
    Vice Chair, Chief Executive
      Officer and Director
    12-Mar-14
    Vice Chair and Chief Executive
      Officer of the Company.RONALD W. CLAYTON Reno, Nevada, United States
    President and Chief Operating
      Officer
    12-Mar-14
    President and Chief Operating
      Officer of the Company.MARK SADLER Reno, Nevada, United States
    Vice President and Chief
      Financial Officer
    7-Mar-13
    Vice President and Chief Financial
      Officer of the Company.BRIAN BRODSKY Reno, Nevada, United States
    Vice President, Exploration
    1-Jun-10
    Vice President, Exploration of the
      Company.EDIE HOFMEISTER Reno, Nevada, United States
    Vice President, Corporate
      Affairs, General Counsel and Corporate Secretary
    12-Mar-14
    Vice President, Corporate Affairs,
      General Counsel and Corporate Secretary of the Company.


For details on the proposed changes to our executive officers
and Board upon completion of the proposed business combination with Rio Alto,
see General Development of Our Business  Development of Our Business  2015
Developments.

| | Tahoe Resources Inc.
| | --------------------

---

The principal occupation of each of the Companys directors and
executive officers within the past five years is disclosed in the brief
biographies set forth below.

Lorne B. Anderson, Director.Mr. Anderson is a Chartered
Accountant. He has been an Independent Financial Consultant to the minerals
industry since 1998. Since 1998 he has served on the Boards of several mineral
companies listed on the TSX Venture Exchange. From 1988 to 1998 Mr. Anderson was
the Chief Financial Officer and Treasurer of Glamis. He has over 20 years of
experience in the mining industry, during which time he has been involved with
administration, both equity and bank financings, and investor relations
programs.

John P. Bell, Director. Mr. Bell is a former Canadian
diplomat, serving as Ambassador to Cote dIvoire, Brazil, and High Commissioner
to Malaysia. He also served as Canadas Chief Negotiator to the Rio Earth Summit
(the United Nations Conference on Environment and Development). He was a Chief
Federal Negotiator for Canadian Department of Indian and Northern Affairs from
1998 to 2006. He is currently a director of Goldcorp, and of the Canadian
Network for International Surgery (CNIS). He holds a Bachelor of Commerce degree
and an Honorary Doctorate of Laws degree from the University of British
Columbia.

Tanya Jakusconek, Director. Ms. Jakusconek is a Senior Gold
Research Analyst who has covered large and mid-tier North American producers
since 1991. She began her investment career at RBC Dominion Securities, and then
worked at BBN James Capel and National Bank Financial before moving to
Scotiabank in 2011. She earned a B.Sc (Honours) in Geology and an M.Sc Applied
(MINEX Program), both from McGill University in Montreal.

C. Kevin McArthur, Vice Chair of the Board and Chief
Executive Officer.Mr. McArthur founded the Company and was appointed
President and Chief Executive Officer on November 10, 2009. On March 12, 2014,
he was appointed Vice Chairman and Chief Executive Officer. He was President,
Chief Executive Officer and a director of Goldcorp from November 15, 2006 until
his retirement on December 31, 2008. He served in a variety of management
positions with Glamis starting in 1988, including acting as Glamis President
and Chief Executive Officer from January 1, 1998 to November 14, 2006. Prior to
working with Glamis, Mr. McArthur held various operating and engineering
positions with BP Minerals and Homestake Mining Company. He holds a B.S. in
Mining Engineering from the University of Nevada. He is currently a Director of
Royal Gold, Inc.

A. Dan Rovig, Director and Chair of the Board.Mr. Rovig
is currently a Director and Chair of the Board of the Company. He was a director
and Chairman of the Board of Glamis from November 1998 to November 2006 and a
director of Goldcorp from 2006 to 2014. Prior to November 1998, Mr. Rovig served
first as President of Glamis from September 1988 until his appointment as a
director, and the President and Chief Executive Officer of Glamis and its
subsidiaries from November 1989 to August 1997 when he retired. Prior to 1988,
Mr. Rovig was an executive officer of British Petroleum Ltd., including its
subsidiaries Amselco Minerals Inc. and BP Minerals America for five years. Prior
experience included 16 years in the Anaconda Company in a variety of positions
from Metallurgist to Senior VP Operations. Mr. Rovig holds a B.S. degree in
Mining Engineering and a M.S. degree in Mineral Dressing Engineering from
Montana College of Mineral Science and Technology. He is also a registered
member of the Society for Mining, Metallurgy and Exploration, and the Geological
Society of Nevada.

Paul B. Sweeney, Director. Mr. Sweeney has been an
independent business consultant since May 2011. He is currently a Director of
Oceana Gold Corporation and Grenville Strategic Royalty Inc. From May 2010 to
May 2011, he was a part-time commercial advisor to Plutonic Power Corporation
and subsequently Alterra Power Corp. From August 2009 to April 2010, he served
as Plutonic Power Corporations President. He was Executive Vice President,
Corporate Development of Plutonic Power Corporation from October 2008 to August
2009 and was Executive Vice President, Business Development of Plutonic Power
Corporation from January 2007 to October 2008. He was an independent business
and financial consultant from 2005 to 2007 and was Vice President and Chief
Financial Officer of Canico Resource Corp. from 2002 to 2005. Mr. Sweeney has
over 35 years experience in financial management of mining and renewable energy
companies.

James S. Voorhees, Director. Mr. Voorhees has been an
independent consultant since 2007. From 2005 to 2006 Mr. Voorhees was Executive
Vice President and Chief Operating Officer of Glamis and from 1999 to 2005 he
was Vice President Operations and Chief Operating Officer of Glamis. Prior to
joining Glamis, Mr. Voorhees held various engineering and operating positions
with Newmont Mining Corp., Santa Fe Pacific Minerals, Western Mining Corp., and
Atlantic Richfield Company. Mr. Voorhees holds a B.S. degree in Mining
Engineering from the University of Nevada and is a registered professional
engineer.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Kenneth F. Williamson, Director. Mr. Williamson has been
a director of Goldcorp since November 2006. He was Vice Chairman Investment
Banking of Midland Walwyn/Merrill Lynch Canada Inc. from 1993 until his
retirement in 1998. He was a director of Glamis from April 1999 to November
2006. He has worked in the securities industry for more than 25 years,
concentrating on financial services and the natural resource industries in the
United States and Europe. He was chairman of the board of BlackRock Ventures
until it was acquired by Shell Canada in 2006. As an active board member he has
chaired various committees including audit, governance, and compensation. Mr.
Williamson is a registered Professional Engineer and holds a Bachelor of Applied
Science degree from the University of Toronto and a M.B.A. degree from the
University of Western Ontario.

Brian Brodsky, Vice President, Exploration. Mr. Brodsky
was appointed Vice President of Exploration of the Company and began work for
the Company on June 1, 2010. Mr. Brodsky is an economic geologist with over 35
years of precious metals exploration experience. He worked for Goldcorp and its
predecessor Glamis from 2003 to 2010 as Exploration Manager, overseeing regional
studies and detailed property assessments throughout Guatemala. His team was
instrumental in the exploration and development of the Marlin Mine and Cerro
Blanco gold-silver deposit as well as the grass-roots discovery and definition
of the Escobal vein. In early 2010 Mr. Brodsky was appointed to the position of
Director of Exploration for the US and Latin America for Goldcorp. Prior to
joining Glamis/Goldcorp, Mr. Brodsky explored gold-silver, base metals and
uranium deposits in various geologic environments throughout the United States,
Peru and West Africa for Rio Algom Ltd., Cordex, Cruson & Pansze. He holds a
B.S. in Geology from the University of Nevada.

Ronald W. Clayton, President and Chief Operating
Officer. Mr. Clayton was appointed Vice President and Chief Operating
Officer of the Company on April 1, 2010 and President and Chief Operating
Officer on March 12, 2014. Mr. Clayton has extensive experience in development
and operation of underground silver mines as well as operations in Latin
America. Prior to joining the Company, Mr. Clayton was Senior Vice President of
Operations and General Manager of several underground precious metal mines over
a 20- year career with Hecla Mining Company. Mr. Clayton was also Vice President
 Operations for Stillwater Mining Company from 2000 to 2002 and held various
production, engineering and management positions with the Climax Molybdenum
Company and Homestake Mining Company from 1976 to 1987. Mr. Clayton holds a B.S.
in Mining Engineering from Colorado School of Mines.

Edie Hofmeister, Vice President, Corporate Affairs, General
Counsel and Corporate Secretary. Ms. Hofmeister was appointed Corporate
Secretary of the Company on February 1, 2010, Vice President, General Counsel on
March 2, 2011 and Vice President, Corporate Affairs, General Counsel and
Corporate Secretary on March 12, 2014. Prior to that, she served as General
Counsel to a $2-billion bankruptcy Trust in Reno, Nevada. From 1994 to 2001 she
worked as an attorney at Brobeck, Phleger and Harrison LLP where she acted as
senior litigation counsel to Exxon/Mobil, Shell and Imperial Oil Canada in
complex environmental coverage cases. Since 2007 she has worked with indigenous
groups in developing nations to promote reforestation and sustainable community
programs. Ms. Hofmeister holds a B.A. from the University of California Los
Angeles, an M.A. in International Studies from the University of Notre Dame, and
a J.D. from the University of San Francisco School of Law.

Mark T. Sadler, Vice President and Chief Financial
Officer. Mr. Sadler was appointed Vice President and Chief Financial Officer
of the Company on March 8, 2013. Mr. Sadler has over 25 years of experience in
the mining industry having worked for Glencore Ltd. and Rio Tinto/Kennecott from
1990 to 2012 where he held various financial and commercial roles including
General Manager Base Metal Concentrate Sales (Rio Tinto Copper), Director of
Finance & Marketing / CFO (Kennecott Minerals Company) and Director of Raw
Materials and Precious Metal Sales (Kennecott Utah Copper). Mr. Sadler began his
career in 1985 at Grant Thornton LLP. He holds a B.S. degree in Accounting from
the University of Utah and is a member of the Utah Association and American
Institute of Certified Public Accountants.

As of the date hereof, our directors, executive officers and
employees, as a group, beneficially owned, directly or indirectly, or exercised
control or direction over 4,438,861 vested Shares, representing approximately
3.00% of the issued Shares before giving effect to the exercise of share
purchase options and the receipt of Shares issuable pursuant to Deferred or
Restricted Share Awards. The directors, executive officers and employees, as a
group, held 212,000 Deferred Share Awards and 1,531,222 Options as at March 11,
2015.

|CEASE TRADE
      ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS
|--------------------------------------------------------------

No director or executive officer of the Company is, or within
ten years prior to the date hereof has been, a director, chief executive officer
or chief financial officer of any company (including the Company) that, (i) was
subject to a cease trade order, an order similar to a cease trade order or an
order that denied the relevant company access to any exemption under securities
legislation, that was in effect for a period of more than 30 consecutive days, that was issued while the
director or executive officer was acting in the capacity as director, chief
executive officer or chief financial officer; or (ii) was subject to a cease
trade order, an order similar to a cease trade order or an order that denied the
relevant company access to any exemption under securities legislation, that was
in effect for a period of more than 30 consecutive days, that was issued after
the director or executive officer ceased to be a director, chief executive
officer or chief financial officer and which resulted from an event that
occurred while that person was acting in the capacity as director, chief
executive officer or chief financial officer.

| | Tahoe Resources Inc.
| | --------------------

---

No director or executive officer of the Company, or a
shareholder holding a sufficient number of securities of the Company that would
affect material control of the Company, (i) is, or within ten years prior to the
date hereof has been, a director or executive officer of any company (including
the Company) that, while that person was acting in that capacity, or within a
year of that person ceasing to act in that capacity, became bankrupt, made a
proposal under any legislation relating to bankruptcy or insolvency or was
subject to or instituted any proceedings, arrangement or compromise with
creditors or had a receiver, receiver manager or trustee appointed to hold its
assets, other than John P. Bell who ceased to be a director of JER Envirotech
International Corp. (JER) within one year of the date JER ceased to do
business, or (ii) has, within ten years prior to the date hereof, become
bankrupt, made a proposal under any legislation relating to bankruptcy or
insolvency, or become subject to or instituted any proceedings, arrangement or
compromise with creditors, or had a receiver, receiver manager or trustee
appointed to hold the assets of the director, executive officer or shareholder.

No director or executive officer of the Company, or a
shareholder holding a sufficient number of securities of the Company to affect
materially the control of the Company, has been subject to (i) any penalties or
sanctions imposed by a court relating to securities legislation or by a
securities regulatory authority or has entered into a settlement agreement with
a securities regulatory authority; or (ii) any other penalties or sanctions
imposed by a court or regulatory body that would likely be considered important
to a reasonable investor in making an investment decision.

|CONFLICTS OF
      INTEREST
|---------------------------

To the best of the Companys knowledge there are no known
existing or potential material conflicts of interest among the Company and the
Companys directors, officers or other members of management, as a result of
their outside business interests except that certain of our directors and
officers serve as directors and officers of other companies, and therefore it is
possible that a conflict may arise between their duties to us and their duties
as a director or officer of such companies. In the event of such a conflict of
interest, the Company will follow the requirements and procedures of applicable
corporate and securities legislation and applicable exchange policies, including
the relevant provisions of the BCA. See Description of Our Business  Risk
Factors  Risks Relating to Our Business.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

None of our directors, executive officers or any shareholder
who beneficially owns or controls or directs, directly or indirectly, more than
10% of the issued Shares, or any of their respective associates or affiliates,
had any material interest, directly or indirectly, in any transaction within the
three most recently completed financial years or during the current financial
year that has materially affected or is reasonably expected to affect the
Company

TRANSFER AGENTS AND REGISTRAR

The transfer agent and registrar for the Shares is
Computershare Investor Services Inc. at its principal offices in Vancouver,
British Columbia.

MATERIAL CONTRACTS

On February 9, 2015, the Company entered into an amendment and
restatement to the Shareholders Agreement with Goldcorp, pursuant to which the
parties, among other things, reduced Goldcorps Board nomination right from
three directors to one director. See General Development of the Business  The
Transaction Agreement and Shareholders Agreement.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

INTERESTS OF EXPERTS

The Qualified Person and principal author of the 2014 Escobal
Feasibility Study is Conrad Huss, P.E., of M3 Engineering and Technology
Corporation. All M3 personnel who contributed to the study were supervised by
Mr. Huss. The Qualified Person responsible for the review of the civil and
environmental aspects of the Escobal mine is Daniel Roth, P.E., of M3. The
Qualified Person responsible for the review of the metallurgical testing,
process flow sheets, and process plant at the Escobal mine is Thomas L.
Drielick, P.E., of M3. The Qualified Person responsible for the review of the
tailings and waste rock facility at the Escobal mine is Jack Caldwell, P.E., of
Robertson GeoConsultants Inc. of Vancouver, British Columbia, an independent
engineering consulting firm. The Qualified Person responsible for the review of
the geology, drilling, sampling methodology, sample preparation and analysis,
data verification, and for preparing the Mineral Resource estimate for the
Escobal mine, is Paul Tietz, C.P.G., of Mine Development Associates of Reno,
Nevada, an independent mining consulting firm. The Qualified Person responsible
for the Mineral Reserve estimate and review of mining methods, mine
infrastructure, and production scheduling is Matthew Blattman, P.E., of Blattman
Brothers Consulting, LLC of Cypress, Texas, an independent mining consulting
firm. All scientific and technical information in this AIF relating to updates
to the Escobal mine disclosure since the date of Escobal Feasibility Study has
been verified by Charles Muerhoff, the Companys Vice President Technical
Services and Qualified Person as defined by NI 43-101.

The Company believes that at the date hereof, each of the
authors of the Escobal Feasibility Study, Mr. Muerhoff and the employees and
partners, as applicable, of M3 Engineering and Technology Corporation, Robertson
GeoConsultants Inc., Mine Development Associates, and Blattman Brothers
Consulting LLC beneficially own, directly or indirectly, less than 1% of the
outstanding securities of the Company.

The independent registered public accounting firm of the
Company is Deloitte LLP. Deloitte LLP is independent with respect to the Company
within the meaning of the Rules of Professional Conduct of the Institute of
Chartered Accountants of British Columbia.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

Selected audited consolidated financial information is as
follows:

Years Ended December 31,2014
    
    
    2013
    
    
    2012
    
    
    2011Revenues
    $
    350,265
    
    $
    -
    
    $
    -
    
    $
    -Net Earnings (Loss)
    $
    90,790
    
    $
    (65,597
    )
    $
    (93,453
    )
    $
    (69,166
    )Net Earnings (Loss) Per ShareBasic
    $
    0.62
    
    $
    (0.45
    )
    $
    (0.65
    )
    $
    (0.48
    )Diluted
    $
    0.61
    
    $
    (0.45
    )
    $
    (0.65
    )
    $
    (0.48
    )Cash and Cash Equivalents
    $
    80,356
    
    $
    8,838
    
    $
    164,561
    
    $
    349,837Total Assets
    $
    975,628
    
    $
    883,333
    
    $
    852,943
    
    $
    922,005Total Liabilities
    $
    97,568
    
    $
    109,179
    
    $
    21,646
    
    $
    10,351Total Shareholders Equity
    $
    878,060
    
    $
    774,154
    
    $
    831,297
    
    $
    911,654


|(1) | In thousands of US dollars, except per share
    amounts.
|--- | ---------------------------------------------------------

Further discussion of the Companys financial results is
contained in Managements Discussion and Analysis of Financial Condition and
Results of Operations for the year ended December 31, 2014.

ADDITIONAL CORPORATE AND FINANCIAL INFORMATION

Additional information relating to the Company, including
additional financial information contained in the audited annual financial
statements and the related Management Discussion and Analysis for the year ended
December 31, 2014, and directors and officers remuneration and indebtedness,
principal holders of the Companys securities and securities authorized for
issuance under equity compensation plans contained in the Companys Management
Information Circular dated March 11, 2015, can be found on SEDAR at
www.sedar.com or on the Companys website at
www.tahoeresourcesinc.com.

| | Tahoe Resources Inc.
| | --------------------

---

INFORMATION CONCERNING THE COMPANYS AUDIT COMMITTEE AND
EXTERNAL AUDITOR

|THE AUDIT
      COMMITTEES DUTIES AND CHARTER
|----------------------------------------------

The Audit Committee reviews all financial statements of the
Company prior to their publication, reviews audits, considers the adequacy of
the audit procedures, recommends the appointment of independent auditors,
reviews and approves professional services to be rendered by them and reviews
fees for audit services. The Audit Committee meets with the Companys auditors
without management being present to discuss the various aspects of the Companys
financial statements and the independent audit.

On April 20, 2010, the Board adopted a charter for the Audit
Committee to follow in carrying out its audit and financial review functions.
The charter was amended effective April 13, 2012 in order to reflect certain
requirements applicable to audit committees under Rule 10A-3(b) under the
Exchange Act, in connection the Companys successful application to list its
common shares on the NYSE. The charter was further amended effective March 12,
2014, to include certain provisions clarifying the Audit Committees
responsibilities with respect to the Companys internal audit function, as
required by Section 303A.07 of the NYSE Listed Manual. This amended charter is
appended hereto as Appendix A.

|COMPOSITION OF
      THE AUDIT COMMITTEE
|----------------------------------------

The Audit Committee is currently composed of three directors:
Paul Sweeney (Chairman), Lorne Anderson and Kenneth Williamson. Each of these
individuals is independent and financially literate within the meaning of NI
52-110.

|RELEVANT
      EDUCATION AND EXPERIENCE
|---------------------------------------

All Audit Committee members have significant management
experience in the mining, securities or investment banking industry as well as
extensive continuing financial education. Details regarding the education and
experience of each member of the Audit Committee that is relevant to the
performance of his responsibilities as an Audit Committee member is as follows:

Mr. Sweeney has been an independent business consultant since
May 2011. From May 2010 to May 2011, he was a part-time commercial advisor to
Plutonic Power Corporation and subsequently Alterra Power Corp. From August 2009
to April 2010, he served as Plutonic Power Corporations President. He was
Executive Vice President, Corporate Development of Plutonic Power Corporation
from October 2008 to August 2009 and was Executive Vice President, Business
Development of Plutonic Power Corporation from January 2007 to October 2008. He
was an independent business and financial consultant from 2005 to 2007 and was
Vice President and Chief Financial Officer of Canico Resource Corp. from 2002 to
2005. Mr. Sweeney has over 35 years of experience in financial management of
mining and renewable energy companies. He has served on Audit Committees of a
number of public companies and is a former Certified General Accountant of
British Columbia.

Mr. Anderson is a Chartered Accountant. He was the Chief
Financial Officer of Tyhee Gold Corporation from May of 2005 until January 16,
2012. He was a director and the Audit Committee Chairman for Selwyn Resources
Ltd. He has been an Independent Financial Consultant to the minerals industry
since 1998. From 1988 to 1998 Mr. Anderson was the Chief Financial Officer and
Treasurer of Glamis. He has over twenty years of experience in the mining
industry, during which time he has been involved with administration, both
equity and bank financings, and investor relations programs.

Mr. Williamson has been a director of Goldcorp since November
2006. He was Vice Chairman Investment Banking of Midland Walwyn/Merrill Lynch
Canada Inc. from 1993 until his retirement in 1998. He was a director of Glamis
from April 1999 to November 2006. He has worked in the securities industry for
more than 25 years, concentrating on financial services and the natural resource
industries in the United States and Europe. He was chairman of the board of
BlackRock Ventures until it was acquired by Shell Canada in 2006. As an active
board member he has chaired various committees including audit, governance, and
compensation. Mr. Williamson is a registered Professional Engineer and holds a
Bachelor of Applied Science degree from the University of Toronto and a M.B.A.
degree from the University of Western Ontario.

|PRE-APPROVAL
      POLICIES AND PROCEDURES
|------------------------------------------

We have not adopted specific policies and procedures for the
engagement of non-audit services; however, the Audit Committee has considered
whether the provision of services other than audit services is compatible with
maintaining the auditors independence and has adopted a general policy
governing the provision of these services. This policy requires the pre-approval
by the Audit Committee of all audit and non-audit services provided by the external auditor, other than
any de minimis non-audit services allowed by applicable law or
regulation.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Pre-approval from the Audit Committee can be sought for planned
engagements based on budgeted or committed fees. No further approval is required
to pay pre-approved fees. Additional pre-approval is required for any increase
in scope or in final fees.

|EXTERNAL
      AUDITOR AND OTHER PROFESSIONAL SERVICE FEES
|----------------------------------------------------------

The Audit Committee has reviewed the nature and amount of the
audit and non-audit services provided by Deloitte LLP to ensure auditor
independence. The following table sets out the aggregate fees billed in CAD$ for
services performed during the years ended December 31, 2014 and 2013 for the
category of fees described:

Financial Period
    Audit Fees(1)
    Tax Fees(2)
    All Other Fees(3)Jan. 1  Dec. 31,
      2014(4)Jan. 1  Dec. 31, 2013
    $615,121 $565,787
    -- --
    -- --


|(1) | Audit Fees include fees necessary to perform the annual
      audit and quarterly reviews of the Companys financial statements. Audit
      Fees include fees for accounting consultations on matters reflected in the
      financial statements. Audit Fees also include audit or other attest
      services required by legislation or regulation, such as comfort letters,
      consents, reviews of securities filings and statutory audits.                                                    
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(2) | Tax Fees includes fees for tax compliance, tax planning
      and tax advice. Tax planning and tax advice includes assistance with tax
      audits and appeals, transfer price management, tax advice related to
      mergers and acquisitions, Canadian indirect tax issues, Directors,
      stock-based compensation, Company reorganization, and requests for rulings
      or technical advice from tax authorities. The external auditor provided no
      tax related services in 2013 or 2014.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(3) | All Other Fees include services related to the
      implementation of Sarbanes-Oxley compliance programs made necessary by the
      Companys listing on the NYSE. The external auditor provided no other
      services in 2013 or 2014.                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(4) | A portion of 2014 fees was billed in USD and translated
      at the average Bank of Canada noon exchange rate of 1.1045 for the period
      of January 1, 2014 to December 31, 2014.                                                                                                                                                                                                                                                                                                                    

|AUDITOR PARTNER
      ROTATION
|------------------------------

As a registrant with the United States Securities and Exchange
Commission, the lead Deloitte audit partner and the concurring Deloitte audit
partner cannot serve in those roles on the Tahoe audit team for more than five
consecutive years. Deloitte audit partners of Tahoe subsidiaries whose assets or
revenues constitute 20% or more of the assets or revenues of Tahoes respective
consolidated assets or revenues cannot serve in this role for more than seven
consecutive years.

| | Tahoe Resources Inc.
| | --------------------

---

APPENDIX A  TAHOE AUDIT COMMITTEE CHARTER

|THIRD AMENDED
      AUDIT COMMITTEE CHARTER
|-------------------------------------------

PURPOSE

The Audit Committee (the Committee) is a committee
appointed by the Board of Directors (the Board) of Tahoe Resources Inc.
(the Corporation). The Committee is established to fulfill applicable
reporting issuer obligations respecting audit committees and to assist the Board
in fulfilling its oversight responsibilities with respect to financial reporting
including responsibility to:

| | oversee the integrity of the Corporations
      financial statements and financial reporting process, including the audit
      process and the Corporations internal accounting controls and procedures
      and compliance with related legal and regulatory requirements;
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                
| | oversee the qualifications, independence,
      appointment and compensation of the external auditor;                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                
| | oversee the work of the Corporation's financial
      management and external auditor in these areas; and                                                                                                                                                                      
|  |                                                                                                                                                                                                                                                                                
| | provide an open avenue of communication between
      the external auditor, the Board and senior officers (Management).                                                                                                                                                      

In addition, the Committee shall prepare, if required, an audit
committee report for inclusion in the Corporations annual management proxy
circular, in accordance with applicable rules and regulations.

The function of the Committee is oversight. It is not the duty
or responsibility of the Committee or its members (i) to plan or conduct audits,
(ii) to determine that the Corporations financial statements are complete and
accurate and are in accordance with generally accepted accounting principles or
(iii) to conduct other types of auditing or accounting reviews or similar
procedures or investigations. The Committee and its Chair are members of the
Board of the Corporation, appointed to the Committee to provide broad oversight
of the financial, risk and control related activities of the Corporation, and
are specifically not accountable or responsible for the day-to-day operations or
performance of such activities.

Management is responsible for the preparation, presentation and
integrity of the Corporations financial statements. Management is also
responsible for maintaining appropriate accounting and financial reporting
principles and policies and systems of risk assessment and internal controls and
procedures designed to provide reasonable assurance that assets are safeguarded
and transactions are properly authorized, recorded and reported and to assure
the effectiveness and efficiency of operations, the reliability of financial
reporting and compliance with accounting standards and applicable laws and
regulations.

The external auditor are responsible for planning and carrying
out an audit of the Corporations annual financial statements in accordance with
generally accepted auditing standards to provide reasonable assurance that,
among other things, such financial statements are in accordance with generally
accepted accounting principles.

COMPOSITION ANDPROCEDURES

Composition  The Committee shall be comprised of
at least three members. None of the members of the Committee shall be an officer
or employee of the Corporation or any of its subsidiaries and each member of the
Committee shall be an independent director (as such term is defined from time
to time under the requirements or guidelines for audit committee service under
applicable securities laws and the rules of any stock exchange on which the
Corporations securities are listed for trading) and none of the members shall
have participated in the preparation of the financial statements of the
Corporation or any current subsidiaries of the Corporation at any time over the
past three years.

All members of the Committee must be financially literate (as
that term is defined from time to time under the requirements or guidelines for
audit committee service under securities laws and the rules of any stock
exchange on which the Corporation's securities are listed for trading or if it
is not so defined as that term is interpreted by the Board in its business
judgment) or must become financially literate within a reasonable period of time
after their appointment to the Committee.

Service on Multiple Audit Committees  If a
Committee member serves on the audit committees of more than four reporting
issuers or public corporations, including the Corporation, the Board must
determine that such service would not impair the ability of the member to
effectively serve on the Committee and disclose such determination in the annual
proxy circular.

Meetings  The Committee shall meet regularly at
times necessary to perform the duties described herein in a timely manner, but
not less than four times a year and at any time the Corporation proposes to
issue a press release with its quarterly or annual earnings information.
Meetings may be held in person or by telephone and at any time deemed
appropriate by the Committee.

Separate Executive Meetings  The Committee shall
meet periodically in separate executive sessions with Management (including the
Chief Financial Officer), and the external auditor, and have such other direct
and independent interaction with such persons from time to time as the members
of the Committee deem appropriate. The Committee may request any officer or
employee of the Corporation or the Corporations outside counsel or external
auditor to attend a meeting of the Committee or to meet with any members
of, or consultants to, the Committee. The external auditor will have direct
access to the Committee at their own initiative.

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

Professional Assistance  The Committee may
require the external auditor to perform such supplemental reviews or audits as
the Committee may deem desirable. In addition, the Committee may retain such
special legal, accounting, financial or other consultants as the Committee may
determine to be necessary to carry out the Committees duties at the
Corporations expense. Without limiting the foregoing, the Corporation shall
provide appropriate funding, as determined by the Committee, for payment of such
ordinary administrative expenses of the Committee as are necessary or
appropriate in carrying out its duties.

Reliance  Absent actual knowledge to the
contrary (which shall be promptly reported to the Board), each member of the
Committee shall be entitled to rely on (i) the integrity of those persons or
organizations within and outside the Corporation from which it receives
information, (ii) the accuracy of the financial and other information provided
to the Committee by such persons or organizations and (iii) representations made
by Management and the external auditor as to any information technology,
internal audit and other non-audit services provided by the external auditor to
the Corporation and its subsidiaries.

Reporting to the Board  The Committee will
report through the Committee Chair to the Board following meetings of the
Committee on matters considered by the Committee, its activities, the
performance of the Corporations internal audit function and compliance with
this Charter.

RESPONSIBILITIES OF THECOMMITTEE

Approval of Terms of Engagement of the External Auditor
 The Committee shall make recommendations to the holders of the common
shares of the Corporation (the shareholders) on the appointment or
reappointment of the external auditor of the Corporation at each meeting of
shareholders where such action is being taken (with such recommendation to be
reflected in the proxy circular to be furnished to the shareholders in
connection with each such meeting of shareholders), and shall have authority to
terminate the appointment of the external auditor. The Committee shall approve
in advance the terms of engagement and the compensation to be paid by the
Corporation to the external auditor. The Committee shall approve in advance all
non-audit services to be provided to the Corporation and its affiliates by the
external auditor.

Review of Independence  The Committee shall
review the independence of the external auditor and shall make recommendations
to the Board on appropriate actions to be taken which the Committee deems
necessary to protect and enhance the independence of the external auditor.

Auditor Reports  The Committee shall require the
external auditor to provide to the Committee, and the Committee shall review and
discuss with the external auditor, all reports which the external auditor are
required to provide to the Committee or the Board under rules, policies or
practices of professional or regulatory bodies applicable to the auditor, and
any other reports which the Committee may require.

Hiring Former Employees of the Auditor The
Committee must review and approve the Companys hiring policies regarding
partners, employees and former partners and employees of the present and former
external auditor. Oversight and Monitoring of Audits  As required
by section 2.2 of National Instrument 52110, Audit Committees, as adopted by the
Canadian Securities Administrators, the Corporation shall require the external
auditor to report directly to the Committee. The Committee shall review with the
external auditor the audit function generally, the audit procedures to be used
and the timing and estimated budgets of the audits. The Committee shall discuss
with the external auditor any difficulties or disputes that arose with
Management during the course of the audit and the adequacy of Managements
responses in correcting audit related deficiencies and the Committee shall take
such other reasonable steps as it may deem necessary to satisfy itself that the
audit was conducted in a manner consistent with all applicable legal
requirements and auditing standards of applicable professional or regulatory
bodies.

Oversight and Review of Accounting Principles and
Practices  The Committee shall, as it deems necessary, oversee, review
and discuss with Management and the external auditor:

| | the quality, appropriateness and acceptability
      of the Corporations accounting principles and practices used in its
      financial reporting, changes in the Corporations accounting principles or
      practices and the application of particular accounting principles and
      disclosure practices by Management to new transactions or events;                                                                
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | all significant financial reporting issues and
      judgments made in connection with the preparation of the financial
      statements, including the effects of alternative methods within generally
      accepted accounting principles on the financial statements and any second
      opinions sought by Management from an independent auditor with respect to
      the accounting treatment of a particular item;
|  |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | any material change to the Corporations
      auditing and accounting principles and practices as recommended by
      Management, the external auditor or the internal auditor or which may
      result from proposed changes to applicable generally accepted accounting
      principles;                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | the effect of regulatory and accounting
      initiatives on the Corporations financial statements and other financial
      disclosures;                                                                                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | any reserves, accruals, provisions, estimates
      or Management programs and policies, including factors that affect asset
      and liability carrying values and the timing of revenue and expense
      recognition, that may have a material effect upon the financial statements
      of the Corporation;                                                                                                             

| | Tahoe Resources Inc.
| | --------------------

---

| | the use of special purpose entities and the business
      purpose and economic effect of off-balance sheet transactions,
      arrangements, obligations, guarantees and other relationships of the
      Corporation and their impact on the reported financial results of the
      Corporation;                                                                                                                         
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | any legal matter, claim or contingency that could have a
      significant impact on the financial statements, the Corporations
      compliance policies and any material reports, inquiries or other
      correspondence received from regulators or governmental agencies and the
      manner in which any such legal matter, claim or contingency has been
      disclosed in the Corporations financial statements;
|  |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | the treatment for financial reporting purposes
      of any significant transactions which are not a normal part of the
      Corporations operations;                                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | the use of any pro forma or adjusted
      information not in accordance with generally accepted accounting
      principles; and                                                                                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | Managements determination of asset impairment,
      if any, as required by applicable accounting standards.                                                                                                                                                                                                                                                                                                               

Disagreement Between Management and the External Auditor
 The Committee shall review and resolve disagreements between
Management and the external and internal auditor regarding financial reporting
or the application of any accounting principles or practices.

Oversight and Monitoring of Internal Controls 
The Committee shall, as it deems necessary, exercise oversight of, review and
discuss with Management and the external auditor:

| | the adequacy and effectiveness of the Corporations
      internal accounting and financial controls and their recommendations for
      the improvement of accounting practices and internal controls;
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                        
| | any material weaknesses in the internal control
      environment, including with respect to computerized information system
      controls and security; and                                          
|  |                                                                                                                                                                                                        
| | Managements compliance with the Corporations
      processes, procedures and internal controls.                                                                                                      

Dealing With Accounting Complaints  The
Committee shall establish and monitor procedures for the receipt and treatment
of complaints received by the Corporation regarding accounting, internal
accounting controls or audit matters and the submission, anonymously or
otherwise, by employees of concerns regarding questionable accounting or
auditing matters and shall review periodically with Management these procedures
and any significant complaints received.

Oversight and Monitoring of the Corporations Financial
Disclosures  The Committee shall:

| | review with the auditor and Management, and recommend to
      the Board for approval, the audited financial statements and the notes and
      Managements Discussion and Analysis accompanying such financial
      statements, the Corporations annual report and any financial information
      of the Corporation contained in any prospectus or information circular of
      the Corporation;                                                                                                                                
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | review with the auditor and Management, approve, and
      report to the Board regarding , each set of interim financial statements
      and the notes and Managements Discussion and Analysis accompanying such
      financial statements and any other disclosure documents or regulatory
      filings of the Corporation containing or accompanying financial
      information of the Corporation;                                                                                                                             
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | prior to their distribution, discuss earnings press
      releases with Management on a quarterly basis, and discuss financial
      information from time to time provided to analysts and ratings agencies,
      it being understood that such discussions may be done generally (by
      discussing the types of information to be disclosed and the type of
      presentation to be made) and that the Committee need not discuss in
      advance each instance in which the Corporation gives financial
      information; and
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | The Committee shall review the disclosure with
      respect to its pre-approval of audit and non-audit services provided by
      the external auditor.                                                                                                                                                                                                                                                                                                                                                                               

Oversight of Risks  The Committee shall meet
periodically with Management to review:

| | the Corporations major financial risk exposures and the
      policy steps Management has taken to monitor and control such exposures,
      including the use of financial derivatives and hedging activities; and
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                     
| | the process and systems in place for ensuring
      the reliability of public disclosure documents that contain audited and
      unaudited financial information and their effectiveness.                          

Oversight of the Corporations Internal Audit
Function  The Committee shall:

| | review the activities and organizational
      structure of the internal audit function, as well as the qualifications of
      its personnel;                                                                                  
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                 
| | review the significant reports to Management
      prepared by the internal auditor and Managements responses to such
      reports;                                                                                           
|  |                                                                                                                                                                                                                                 
| | periodically review, with the senior internal
      auditor, any significant difficulties, disagreements with Management, or
      scope restrictions encountered in the course of the internal audit
      functions work; and

|Annual Information Form for the Year Ended December 31, 2014 | 
|------------------------------------------------------------ | 

---

| | review the budget and staffing for the internal
      audit function and any recommended changes in the planned scope of the
      internal audit.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------

REVIEW OF THISCHARTER ANDPERFORMANCE
OF THECOMMITTEE

The Committee shall review and reassess the adequacy of this
Charter at least annually and otherwise as it deems appropriate and recommend
changes to the Board.

The performance of the Committee shall be evaluated with
reference to this Charter annually.

| | Tahoe Resources Inc.
| | --------------------

---