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ANNUAL INFORMATION FORM

For the year ended December 31, 2013

Dated March 12, 2014

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| | Annual
      Information Form for theYear Ended December 31, 2013

TABLE OF CONTENTS

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|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                               | 8   
|The
      Transaction Agreement and Shareholders Agreement      | 8   
|DESCRIPTION
      OF OUR BUSINESS                                | 9   
|Overview
      of Our Business and Strategy                      | 9   
|The
      Silver Industry                                        | 9   
|Product                                                          | 10  
|Specialized
      Skill and Knowledge                            | 10  
|Employees                                                        | 11  
|Foreign
      Operations                                         | 11  
|Competitive
      Conditions                                     | 11  
|Cycles                                                           | 11  
|Environmental
      AND Social Activities                        | 11  
|Doing
      Business In Guatemala                                | 14  
|Risk
      Factors                                               | 16  
|The
      Escobal mine                                           | 24  
|DIVIDENDS
      AND DISTRIBUTIONS                                | 32  
|DESCRIPTION
      OF CAPITAL STRUCTURE                           | 32  
|MARKET
      FOR SECURITIES                                      | 33  
|Trading
      History on the NYSE                                | 33  
|Trading
      History on the TSX                                 | 33  
|PRIOR
      SALES                                                | 34  
|DIRECTORS
      AND EXECUTIVE OFFICERS                           | 34  
|Directors
      and Executive Officers                           | 34  
|Cease
      Trade Orders, Bankruptcies, Penalties or Sanctions   | 37  
|Conflicts
      of Interest                                      | 37  
|INTEREST
      OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS | 37  
|TRANSFER
      AGENTS AND REGISTRAR                              | 37  
|MATERIAL
      CONTRACTS                                         | 38  
|INTERESTS
      OF EXPERTS                                       | 38  

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|SELECTED
      CONSOLIDATED FINANCIAL INFORMATION                               | 38
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|ADDITIONAL
      CORPORATE AND FINANCIAL INFORMATION                            | 38
|INFORMATION
      CONCERNING THE COMPANYS AUDIT COMMITTEE AND EXTERNAL AUDITOR | 38
|The
      Audit Committees Duties and Charter                                  | 38
|Composition
      of the Audit Committee                                        | 39
|Relevant
      Education and Experience                                         | 39
|Pre-Approval
      Policies and Procedures                                      | 39
|External
      Auditor Service Fees                                             | 40
|APPENDIX
      A  TAHOE RESOURCES                                              | 41
|THIRD
      Amended Audit Committee Charter                                     | 41

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

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INTERPRETATION AND OTHER INFORMATION

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

In this Annual Information Form, 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;

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;

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

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

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., a
corporation wholly-owned by the Vendors;

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

Escobal mine means the mineral exploration project
comprised of the Escobal mine Assets;

Escobal mine Assets means those assets exclusively
used in or related to the Escobal mine, including, among other things, mining
licenses and interests, surface rights, permits and real property, equipment and
supplies, all pits, shafts, and other underground workings, and all buildings,
plants and other structures, fixtures and improvements that exist in or on the
real property, the technical data and correspondence in the possession of Entre
Mares in respect of the real property and the mining licenses and interests
including all drill core, samples, reports, drill logs and digital data files,
whether or not located on the real property and certain agreements which pertain
to the Escobal mine, as more particularly defined in the Transaction Agreement;

Escobal Preliminary Economic Assessment or May
2012 Escobal PEAmeans the independent technical report entitled “NI 43-101 Preliminary Economic Assessment – Escobal Guatemala Project” issued on July 24, 2013 and dated effective May 7, 2012 prepared under the guidance of Mr. Conrad Huss, P.E., of M3 Engineering & Technology Corporation (M3), together with Mr. Daniel Roth, P.E., of M3, Mr. Thomas L. Drielick, P.E., of M3, Mr. Richard K. Zimmerman, SME RM and Mr. Paul Tietz, C.P.G., of Mine Development Associates (MDA), an independent mining consulting firm, all Qualified Persons under NI 43-101.

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Escobal Vein means the zone of mineralization on the
Oasis concession that contains the Mineral Resources for the Escobal mine;

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 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;

Oasis License means the exploration license on which
the Escobal Vein is located;

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

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;

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;

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

Shareholders Agreement means the amended and restated
shareholders agreement dated as of October 12, 2010, entered into between the
Company and Goldcorp pursuant to the terms of the Transaction Agreement;

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.
| | --------------------------

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|GLOSSARY OF TECHNICAL TERMS         
|------------------------------------
|                                    
|Ag:                                 
|                                    
|Au:                                 
|                                    
|Contained Ounces:                   
|                                    
|Cut off Grade:                      
|                                    
|g/tonne or g/t:                     
|                                    
|Development:                        
|                                    
|Indicated Mineral
      Resource(1):
|                                    
|Inferred Mineral
      Resource(1): 
|                                    
|IRR:                                
|                                    
|km:                                 
|                                    
|km2:                                
|                                    
|Measured Mineral
      Resource(1): 
|                                    
|tpd                                 

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|Annual Information Form
      for the Year Ended December 31, 2013 | 

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|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 31.103 grams per ton or 34.286 grams per 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|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 of the Canadian Securities Administrators 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 U.S. companies. See
Disclosure Standards for more information.


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

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|CURRENCY
      INFORMATION

All currency amounts in this Annual Information Form are
expressed in United States dollars, unless otherwise noted. The following table
reflects the low and high rates of exchange for one United States dollar,
expressed in Canadian dollars, 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
    Year Ended December
      31,Feb. 28, 2014 (Cdn$)
    2013 (Cdn$)
    2012 (Cdn$)
    2011 (Cdn$)
    2010 (Cdn$)
    2009 (Cdn$)Low for the period
    $1.0614
    $0.9839
    $0.9710
    $0.9449
    $0.9946
    $1.0292High for the period
    1.1171
    1.0697
    1.0418
    1.0604
    1.0848
    1.3000Rate at the end of the period
    1.1075
    1.0636
    1.0051
    0.9833
    1.0054
    0.9555Average noon spot rate for the period
    1.0994
    1.0299
    0.9996
    0.9891
    1.0299
    1.1420


On March 12, 2014, the Bank of Canada noon spot rate of exchange was $1.00 - Cdn$1.1132.

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

This Annual Information Form (“AIF”) contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward looking statements” within the meaning of Unites 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: statements relating to changes in Guatemalan mining laws and
regulations; information with respect to our future financial and operating
performance and that of our subsidiaries; the estimation of Mineral Resources
and our realization of mineral resource estimates; our statements relating to
the assessment of mineralization such mineralization warranting further drilling
of the property; our plan to pursue the exploration, permitting, engineering and
development of the Escobal project and to expand its resource base; our mine
development plan; costs, including projected operating costs, and timing of
further development of the Escobal project, including the resumption of work on
and the completion of the power line, the work required to optimize the paste
backfill and tailings filter plants, sustaining commercial production, achieving
production in excess of 3500 metric tons per day and in particular statements
relating to project costs, economics, production and timing for the 4500 metric
tons per day scenario; completion of a feasibility study in the third quarter of
2014; implementation of our comprehensive Environmental Impact Management
Program; our expectations with respect to reclamation obligations; the
acquisition of additional mineral resource interests in the Americas; future
exploration and development activities, and the costs and timing of those
activities; timing and receipt of approvals, consents and permits under
applicable legislation including the expected timeline for receiving the
exploitation permit for the Escobal project and permits for other mining
property concessions; results of future exploration and drilling; metals prices;
and adequacy of financial resources.

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      for the Year Ended December 31, 2013 | 
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Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes 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; the price of silver and other metals; our ability to operates in a safe, efficient and effective manner; 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 project 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 expand the Escobal project cannot be 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, 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, insurance 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 dividends may never be declared, risks associated with the repatriation of earnings, risks of continued negative operating cash flow, risks associated with the Company’s hedging policies, 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.

This forward-looking information is based on the reasonable
beliefs, expectations and opinions of management 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 U.S. Investors Concerning Estimates of Measured and Indicated and Inferred Resources: There are no Mineral Reserves reported for the Escobal mine. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This section uses the terms Measured and Indicated Mineral Resources. We advise U.S. investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. 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 U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission 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. U.S. investors are cautioned not to assume that part or all of an Inferred Mineral Resource exists, or is economically or legally mineable.

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

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

The disclosure in this AIF uses terms that comply with
reporting standards in Canada and certain estimates are made in accordance with
Canadian National Instrument 43-101 Standards of Disclosure for Mineral
Projects (NI 43-101). NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning mineral
projects. Unless otherwise indicated, all resource estimates contained in or
incorporated by reference in this AIF have been prepared in accordance with NI
43-101. These standards differ significantly from the requirements of the SEC,
and resource information contained herein and incorporated by reference herein
may not be comparable to similar information disclosed by U.S. companies.

There are no mineral reserves reported for the Escobal project.
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 United States 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 different standards in order to
classify mineralization as a reserve. As a result, the definitions of proven and
probable reserves used in NI 43-101 differ from the definitions in the SEC
Industry Guide 7. Under 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 the SEC standards. Accordingly, mineral reserve
estimates calculated in accordance with Canadian standards may not qualify as
reserves under 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 United States
investors that while those terms are recognized and required by Canadian
regulations, the SEC does not recognize them. United States 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. These terms have a
great amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility.

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, United States 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.

It cannot be assumed that all or any part of measured mineral
resources, indicated mineral resources or inferred mineral resources will
ever be upgraded to a higher category. Investors are cautioned not to assume
that any part of the reported measured mineral resources, indicated mineral
resources or inferred mineral resources in this AIF is economically or
legally mineable.

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

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      for the Year Ended December 31, 2013 | 
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For the above reasons, information concerning descriptions of
Mineralization and Mineral Resources contained in this AIF may not be comparable
to information made public by U.S. 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.

In this Annual Information Form, unless the context indicates
otherwise, the term the Company refers to the Company together with all of its
subsidiaries.

GENERAL DEVELOPMENT OF OUR BUSINESS

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

Since our incorporation in November of 2009, we have completed
an initial public offering 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 Assessment (PEA) Reports in November 2010 and May 2012, received
approval of our Escobal Environmental Impact Statement from Guatemalas Ministry
of Environment, listed our Shares on the New York Stock Exchange 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.

The initial public offering of 58,000,000 Shares at a price of
Cdn$6.00 each for gross proceeds of Cdn$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 Cdn$6.00 per Share, pursuant to the exercise of the
over-allotment option in connection with our initial public offering, for
additional gross proceeds of Cdn$34.8 million.

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 initial
public offering. 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 the Shareholders
Agreement.

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

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On December 23, 2010 the sale of 24,959,692 Shares at a price
of Cdn$14.10 each for gross proceeds of Cdn$351,931,657 was completed through a
short form prospectus filed in each of the provinces of Canada and by private
placement outside of Canada.

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

The Company expanded its existing credit facility and drew an additional $25 million on January 2, 2014.  The expanded portion of the credit facility bears interest at a rate per annum of the US$ London Interbank Offered Rate (“LIBOR”) plus a margin of 7.25%.  The additional funds will ensure adequate working capital until full production is achieved, provide capital for the 4500 tpd expansion project which was approved by the Board in May 2012, and support general corporate purposes.

The credit facility is secured by substantially all of the
assets of the Company and its subsidiaries: Tahoe Swiss AG, Escobal Resources
Holding Limited and Minera San Rafael, S.A. Both facilities will mature on
September 3, 2014.

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

Our corporate structure 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:

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| | The purchase price (the Purchase Price) of
      approximately $500 million 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | Goldcorp is entitled to have three nominees appointed to
      the Companys Board. Goldcorps current nominees on the Companys Board
      are A. Dan Rovig, Kenneth F. Williamson and John P. Bell (see Directors
      and Executive Officers), and so long as Goldcorp and its affiliates hold
      20% or more of the issued Shares, Goldcorp will have the right to nominate
      three individuals as directors of the Company at each meeting of
      shareholders at which directors are to be elected. 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 kilometre 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
      kilometres 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.                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | Until the first to occur of (i) Goldcorp and its
      affiliates cumulatively ceasing to beneficially own at least 20% of the
      issued Shares, (ii) June 8, 2015 or (iii) C. Kevin McArthur ceasing to be
      the Chief Executive Officer of the Company, 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, provided that the Company has allowed Goldcorp to nominate three
      persons to be directors of the Company (subject to adjustment in such
      number, as described above), Goldcorp will not vote its Shares at meetings
      of shareholders in favour of any nominee directors who are not nominated
      by the Board.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | So long as Goldcorp and its affiliates hold at least 20%
      of the issued Shares, the Company has a right to designate a purchaser for
      any Shares which Goldcorp wishes to sell, where such Shares to be sold
      represent 5% or more of the issued Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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 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 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.

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

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Figure 1  Escobal mine Location Map

|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 uniqueproperties including its strength,
malleability and ductility, its electrical and thermal conductivity, its
sensitivity to andhigh reflectance of light, and the ability to endure extreme
temperature ranges. Silvers uniqueproperties restrict its substitution inmost
applications.

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. As of March 12, 2014, the London Fix price of silver was US$20.97.

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|PRODUCT
|-------

The Company produces metal-bearing concentrates. Silver, gold,
lead and zinc are recovered by flotation, producing silver-rich concentrates
which are sold to third-party smelters under concentrate sales arrangements. The
first containers of bagged concentrate were shipped to smelters in mid-October.
Concentrate shipped and sold during the fourth quarter of 2013 totalled 2,723
dry metric tonnes.

|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.

Mr. McArthur is an experienced mining engineer with over 30
years of engineering, mine building and mine operations experience, including
over 8 years in the role of President and Chief Executive Officer of Glamis Gold
Ltd. (Glamis) and two years in th he 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 and Don Gray have many years of
underground silver mining experience, including significant Latin American
operating experience. Mr. Muerhoffis a Qualified Person as defined by National
Instrument 43-101 and has worked in the mining industry for over 24 years.

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

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

As at the date of this AIF, we employ 27 employees at our
office in Reno, Nevada and approximately 840 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 2013, 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.

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Social Development

2013 Corporate Social Responsibility
(CSR) Projects

Key completed and on-going MSR
projects 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 Escobal. In 2013 MSR supported 1,550 coffee growers with a coffee rust control program including 600 coffee growers from San Carlos Alzatate and 950 coffee growers from 6 regional municipalities of Santa Rosa.  MSR donates fungicide to farmers and provides training sessions and technical visits.

Reforestation Program: MSRs
Reforestation Program was launched in coordination with the municipality of
Santa Cruz Naranjo. Over 100,000 small trees were planted in the reforestation
program with the support of around 500 volunteers. Approximately 230 hectares of
land were reforested and forest management plans were formulated to promote
forest-growth incentives for local landowners.

Education Projects: Infrastructure assessment identified improvements for 6 schools; and MSR sponsored “Discovering the Earth” science clubs in 6 schools in which 580 children conducted experiments and learned about the vegetable, animal and mineral kingdoms. A volunteer day was organized in each municipality in which 450 community volunteers participated.  Over 300 first-grade teachers in 7 municipalities of Santa Rosa, were trained in reading and writing teaching skills in a joint effort between MSR and the Ministry of Education. MSR and Del Valle University completed teacher training and provided classroom implementation monitoring and evaluation for natural science lessons under the national school curricula.  MSR inaugurated 2 schools in January 2014 in the vicinity of the Escobal mine—one new and one renovated.

Vocational Training Center: A
650-square-meter training facility with 3 workshop areas and 2 equipped
classrooms was inaugurated in 2013. Vocational training was launched in August
with an 8-month apparel manufacturing program for 36 women from local San Rafael
area communities. Currently the center is providing sewing, entrepreneurship and
English as a second language lessons. Later program offerings will include
training in other trades and technical careers such as welding, auto mechanics,
electro mechanics, computer skills, 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 is being expanded to regional
municipalities. A fruit farming course was designed in partnership with the
Ministry of Agriculture technicians, community leaders and university agronomy
students.

High Level Commission: The
government set up an inter-institutional commission to address community issues
and oversee security matters, the first of its kind in Guatemala. It is managed
by the Technical Secretary of Intelligence, and is comprised of members from
Ministry of Interior, Energy and Mines, Environment and the National Dialogue
Table. MSR helped the Commission to locate suitable office space in SRLF and get
established.

Health Projects: MSR supported
INTECAP in training 298 health employees in teamwork, patient attention,
motivation at work, and food security. The health employees work in 7 municipal
health centers. Regional health centers were evaluated jointly with the Ministry
of Health to assess infrastructure and equipment needs that the Company will
provide.

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

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Black Beans Project: The
Ministry of Agriculture and MSR are assisting 300 farmers in a black bean
production through the delivery of seeds and training in 6 regional
municipalities.

Community Infrastructure Projects:  Community projects completed during the year include: El Copante (health clinic); Media Cuesta  (classroom and restrooms); La Cuchilla (fencing, soccer field); Casco Urbano  (multifunction classroom); Las Cortinas (water road drainages); Quequexque (stone road); Estanzuelas (multifunction classroom and school upgrades underway); Colonias Unidas (water system); El Chan (school upgrades and multifunction classroom underway); Casco Urbano (upgrades to middle school in collaboration with Glasswing International); Los Planes’ new elementary school ; and El Copante school bathrooms and multifunction classroom,

Other Local Development
Projects: 1) A two-month soil conservation and fertilizer program was
completed benefiting 352 community members; and 2) more than 375 veterinary
treatment and vaccination appointments have been provided year to date to local
livestock owners and farmers.

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 met in 2013 and the first payment is expected in June 2014 via a trust instrument that will be administered by an independent party.  Of this half percent, 10% will go toward development projects to be 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 Escobal project.  This includes capacity building among locals to recognize, analyze and address their community needs by more effectively controlling and using their own and external resources, including royalty funds.  To this end, the Company formed a participatory joint committee comprised of the mayor of San Rafael where the Escobal mine is located, municipal leaders and community members in order to identify the most impactful and efficient use of funds to benefit the municipality.  MSR is acting as a facilitator in this process.

Organizational CSR Initiatives

CentraRSE—ISO 26000:  The Company has been accepted to join the local CSR organization in Guatemala, compromised 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 seven 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 became a BSR member and retained it to assist in implementing policies and practices aligned with the United Nations Guiding Principles on Business and Human Rights, 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.

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Local Stakeholder Mapping and
Engagement

Most of MSR’s 840 employees come from local areas near the Escobal mine.  In 2013 MSR continued to develop its employee engagement and education programs based on a socio-economic baseline study of employees and families.  In addition, a stakeholder mapping assessment of over 3,000 stakeholders in Guatemala was completed in order to help the CSR team evaluate risks, impacts and opportunities.

The Company engaged FUNDES 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 capacity and achieve sustainable results.

Community Outreach

Home Visits:Over 1,000
informative home visits were conducted year to date covering the municipality of
San Rafael las Flores (23 out of the 27 COCODES or local villages); on average,
70% of the homes in those communities were visited.

Site Visits: Site visits to the
Escobal mine have been made by 13 COCODES, the Mayor of Casillas with his
municipal council, the Mayor of San Rafael with his municipal council, San
Rafael school teachers, businesswomen, health workers and representatives of
MEM.

Dialogue Meetings: More than
125 outreach and dialogue meetings throughout San Rafael have been made with key
stakeholders.

Health:  On-going implementation of the prenatal heath fair jointly supported by SRLF ́s Health Center and MSR.  During the year 110 out of 150 pregnant women benefited.  The program includes medical check-ups, ultrasounds, blood tests, healthcare and nutrition lessons, dietary supplements and planting of 300 new gardens.

Food and Nutrition:  The Company designated a 100 million quetzal fund (approximately USD$12.5 million) to be initiated in the first half of 2014 and distributed over the next three years to support the food and nutrition needs of rural families in Guatemala.

Royalty Agreement

Through regular communication and partnerships with locals to implement community projects, we continue to demonstrate our commitment to environmental stewardship, employee safety and economic and social development in the communities near the project.  The recently finalized Royalty Agreement is intended to engage and benefit communities experiencing impacts from our operations who will receive funds to manage local issues. For details regarding the royalty agreements, see “Doing Business in Guatemala—Mining”.

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

MINING

The Escobal mine is located in Guatemala. The State of
Guatemala owns all mineral deposits within Guatemala. The Energy and Mines
Ministry (MEM) may grant reconnaissance, exploration and exploitation licenses
to any entity, whether Guatemalan or foreign. Applications for licenses are
typically granted on a first in 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. There is
legislation currently before Congress that would amend the mining laws, but so
far as we are aware, the amendments will not affect mineral tenure. Details with
respect to each type of license are set out below.

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

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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
current mining law, a royalty of 1% is 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 new administration and the Mining
Industry Association agreed to general terms in a royalty agreement that has
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 Guatemalan mining
law, the Escobal Royalty Agreement commits the Company to pay a 5% Net Smelter
Revenue (NSR) royalty on the concentrates sold from Escobal mine production.
Under the Escobal Royalty Agreement two percent will benefit San Rafael
communities, two percent will benefit the Federal government and an additional
voluntary one percent will benefit 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.

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 square kilometres 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 square kilometres (the area may be greater than 100 square kilometres 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 Guatemala Environment Ministry for approval prior to undertaking exploration activities.

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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 square kilometres (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.

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 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 will be 28% in 2014 and 25% in 2015 and thereafter.  The optional regime rate is 6% of taxable income (total income less exempt income) paid monthly. The tax rate of the optional regime starting in 2014 is 7%. Corporations must adopt one of the two regimes and commit to a regime each December.  The Company has adopted the optional regime for 2014.  Failure to make income tax payments results in a penalty of 100% of the unpaid tax, plus interest.

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

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Starting January 1, 2013, dividend payments will 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.

Effective January 1, 2009, corporations and enterprises domiciled in Guatemala must pay the Impuesto de Solidaridad, Decree 73-2008, (“ISO”) quarterly. The annual 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.

In addition to the above taxes (a) all interest paid by
financial institutions on accounts is subject to a 10% tax that is withheld by
the financial institution when interest payments are made, (b) a 0.03% to 0.09%
tax is payable on a quarterly basis on real estate, and (c) social security
contributions of 12.67% by the employer and 4.83% by the employee, must be paid
every month based on the payroll payments.

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.

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.

COMMUNITIES ANDNON-GOVERNMENTALORGANIZATIONS

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 law suits 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 Cooperation and Development Guidelines for
Multinational Enterprises, for support for their anti-mining activities.

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The Company is open to all constructive dialogue and, in 2013, engaged with one indigenous group that expressed an interest in the Escobal mine.  However, it is not aware of any significant indigenous population residing in the area of the Project.  According to Guatemala’s National Institute of Statistics (Census 2002) San Rafael Las Flores’ population is 99.6% “Ladino”, i.e., of Hispanic origin and non-indigenous.

On January 12, 2013, two contract security guards were killed when project security personnel were ambushed just after midnight by armed criminals planning to damage the Project.  This was one of three attacks on Guatemalan resource companies in the same week.

In the second quarter of 2013 there were a number of NGO-led protests opposing the development of the Escobal mine and issuance of the exploitation permit in April.  Participation by local community members in these protests was limited. On May 7, the prosecutor’s office charged the Company’s former security management consultant, Alberto Rotondo, with “injuries” and obstruction of justice for his alleged involvement in an incident in which individuals were blocking the mine gate on April 27th.  Mr. Rotondo remains under house arrest pending further legal proceedings.

Subsequent to these events and in response to a variety of
criminal acts and general lawlessness in the region, federal authorities imposed
a state of emergency and increased police and military presence to establish the
rule of law in the area. The government lifted the state of emergency on June 4.
The Ministry of Gobernación permanently installed a unit of National Police in
San Rafael to further ensure ongoing security in the area. Subsequent to the
lifting of the state of emergency and installation of a permanent police force
in San Rafael, security incidents have significantly decreased. In the latter
half of the year there were no NGO protests in the vicinity of the mine.

In addition, the government set up a permanent high level
commission in San Rafael Las Flores to address community issues and oversee
security matters. This Commission is managed by the Technical Secretary of
Intelligence, and is comprised of Gobernación, MEM, MARN and the National
Dialogue Table.

|RISK
      FACTORS
|------------------

Our operations are subject to the normal risks associated with
mineral exploration, development and production. The 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 the Company’s sole operation.  Developing the Escobal mine into a profitable silver mining operation will depend 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.

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      Resources Inc.
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The Escobal mine does not have identified Proven and Probable Mineral Reserves. The costs, timing and complexities of upgrading the Mineral Resources at the Escobal mine to Proven and Probable Mineral Reserves may be greater than we anticipate. 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 Resources, profitability, financial performance and results of operations of the Company.

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.

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.

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Operating History

We have a very 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 and lack of revenues.
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, lead, zinc and gold. 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 January 3, 2014, the Company had aggregate consolidated indebtedness of $75 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 September of 2014. 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.

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

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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.

Financing Requirements

Any changes to our current projections or any new development
activities, 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 anenterprise 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”.

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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.

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.

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

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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 may exist
on the Escobal mine which are currently unknown. 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.

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Mineral Reserve and Resource Calculations are Only
Estimates

Any figures presented by us for Mineral Resources in this Annual Information Form or any figures for Mineral Reserves that may be presented by us in the future are and will only be estimates. There is a degree of uncertainty attributable to the calculation of Mineral Reserves and Mineral Resources. Until Mineral Reserves or Mineral Resources are actually mined and processed, the quantity of metal and grades must be considered estimates only and no assurances can be given that the indicated levels of metals will be produced. The estimating of Mineral Reserves and Mineral Resources is 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 resource estimates included in this AIF for the Escobal mine are well established and reflect management’s best estimates, by their nature, resource 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 Reserves or Mineral Resources 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 reserve or resource estimates. The extent to which resources may ultimately be reclassified as Proven or Probable Mineral Reserves depends upon the demonstration of their profitable recovery. Any Proven and Probable Mineral Reserves which are estimated in the future ultimately may not be profitable due to market price fluctuations, increased production costs, reduced recovery rates, or other factors.

A reduction in any reserves that may be estimated by us in the future could have an adverse impact on our future cash flows, earnings, results of operations and financial condition. No assurances can be given that any resource estimates for the Escobal mine will ultimately be reclassified as Proven or Probable Mineral Reserves.

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 is not available or 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 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.

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

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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 and gold 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.

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 silver mines, silver developmental projects, silver 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 U.S. 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.

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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.  According to Guatemala’s most recent census--National Institute of Statistics (Census 2002)--San Rafael Las Flores’ population is 99.6% “Ladino”, i.e., 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 and non-governmental organizations (“NGOs”) have become more vocal and active with respect to mining activities at or near their communities throughout Guatemala. These communities and NGOs have taken such actions as road closures, destruction of property, work stoppages, and law suits for damages. 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.  See “Description of Our Business – Doing Business in Guatemala – Communities and Non-Governmental Organizations”.

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 has not based its production decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure.  There is no guarantee that anticipated production levels and costs will be achieved. Failure to achieve the anticipated production levels and costs would have a material adverse impact on the Company’s cash flow and future profitability.

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

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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.

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.

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Significant Shareholder

Goldcorp currently owns 58,051,692 Shares, representing
approximately 40% 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.

Dividends

We intend to retain earnings to repay debt and finance the growth and development of our business.  We do not have a policy to pay cash dividends on the Shares in the near future but expect to develop one in 2014. The development of a policy and payment of future cash dividends, if any, 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
|----------------------

RECENT ACTIVITIES AT THE  ESCOBAL MINE

Throughout 2013, the operations group focused on development and construction activities including underground development, mill construction, and completion of surface and ancillary facilities. Commissioning activities commenced mid-year and continued throughout the year, with crusher commissioning beginning in June and mill commissioning starting at the end of September.  By year end all major mine and mill components had been commissioned and with one minor exception were operating to specification.  During commissioning, we recognized that the mixer in the paste backfill plant was not adequately mixing the tailings, resulting in plugged delivery lines to the underground mine and a paste product that does not consistently meet specifications.  A short-term solution was implemented that will allow the plant to deliver the necessary quantity and quality of paste backfill to the mine and a long-term engineered solution to the problem is being actively pursued.  We expect capital costs to remain within the guidance the Company provided in November and we do not expect this development to have a material effect on production or operating costs.

In anticipation of mill and plant commissioning during the
fourth quarter, management identified criteria to determine when the mine was
being operated as intended by management, thereby rising to the level of
commercial production. These factors include, but are not limited to: 1)
operational commissioning of each major mine and plant component; 2) the
demonstrated ability to operate consistently and without significant
interruption at a production rate exceeding 70 percent of design capacity; 3)
sustainability of operating rates and their improvement over time; 4) metal
concentrates produced consistently meeting minimum concentrate specifications;
and 5) the Companys metal concentrate products demonstrated strong customer
demand. On January 14, 2014, the Company announced that the operation had met
all of the established criteria, that commercial production had commenced and
that the mine was now operating as intended.

The Board approved the Company’s plan to continue Escobal project development for the 4500 tpd case. Work on the expansion began in 2012.  Continuous production in excess of 3500 metric tons per day is expected by 2016.

The Company employed approximately 840 people in Guatemala at the end of 2013.  In addition, over 1,000 contractors were employed in construction work, which was largely completed by year end.  Extensive safety and training programs were implemented in areas of surface development, process plant operations, construction and underground mine operations.

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

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PROJECTSETTING,LOCATION,ACCESS ANDINFRASTRUCTURE

The Escobal mine is located in southeast Guatemala,
approximately 40 kilometres east-southeast of Guatemala City and two kilometres
east of the town of San Rafael las Flores in the Department of Santa Rosa. San
Rafael Las Flores 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 mm. Average temperatures vary between 14°C
and 33.1°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 San Rafael las Flores, 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 San Rafael las Flores 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 anticipates it will recommence work on the power line in the future.

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 mine 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 mine
of 6.97 million tonnes at 0.63 g/t gold and 580.3 g/t silver and an Inferred
Mineral Resource of 13.15 million tonnes at 0.53 g/t gold and 443.4 g/t silver.
Goldcorp did not release a technical report to support the Mineral Resource
declaration at that time.

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Three NI 43-101 Technical Reports have been completed on the
Escobal mine by (1) AMEC Americas Ltd. in April 2010, (2) M3 Engineering &
Technology Corporation (M3) in November 2010, and (3) M3 in May 2012 (reissued
July 2013). It is the May 2012 technical report, NI 43-101 Preliminary Economic
Assessment  Escobal Guatemala Project that forms the basis of Tahoes
development plans for the Escobal mine as discussed herein.

2012ESCOBALPRELIMINARYECONOMICASSESSMENT

We engaged M3, an independent mining consulting firm, of
Tucson, Arizona to prepare the Escobal Preliminary Economic Assessment (PEA)
report issued on July 24, 2013 and dated effective May 7, 2012, which is
available for viewing on SEDAR under our profile and on our website at
tahoeresourcesinc.com. The Escobal PEA contains an economic analysis of the
potential viability of Mineral Resources at the Escobal mine and an updated
Mineral Resource estimate for the Escobal mine. The effective date of the
Escobal PEA is May 7, 2012 and the effective date of the Mineral Resource
estimate contained in the report is January 23, 2012. See Mineral Resources
below.

The Qualified Person and Principal author for the Escobal PEA is Conrad Huss, P.E., of M3. All M3 personnel who worked on the report were supervised by Conrad Huss. The Qualified Person responsible for the review of the civil and environmental controls for the Escobal mine is Daniel Roth, P.E., of M3. The Qualified Person responsible for the review of the metallurgical testing and flow sheets for the Escobal mine is Thomas L. Drielick, P.E., of M3. The Qualified Person responsible for the review of the project history, geologic setting and deposit characterization is Richard K. Zimmerman, SME Registered Member, of M3. The Qualified Person responsible for the review of the drilling, sampling method, sample preparation and analysis and data verification, and for preparing the Mineral Resource estimate for the Escobal mine, is Paul Tietz, C.P.G., of Mine Development Associates (“MDA”), an independent mining consulting firm.

The 2012 PEA forms the basis for the operating and production plan for the Escobal Mine.

NI 43-101 Required Disclosure: Investors are cautioned that the Escobal Preliminary Economic Assessment is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the Escobal Preliminary Economic Assessment will be realized. The basis for the Escobal Preliminary Economic Assessment is the Indicated Mineral Resources and Inferred Mineral Resources, the effective date of which is January 23, 2012.  There is no prefeasibility or feasibility study with respect to 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 comprises four exploration licenses covering approximately 190 km2 called the Oasis, Lucero, Andres and Juan Bosco licenses.  The Oasis, Lucero and Andres 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. The Juan Bosco license was granted subsequent to the Acquisition on April 26, 2012. The Oasis License covers the entire Escobal Vein. 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. The first three-year term of the Oasis License expired in March 2010, at which time a renewal application was filed to extend the exploration license for two additional years. This renewal application was approved by MEM on April 28, 2010. As a requirement of the renewal process, the Oasis License was reduced in area from 50 km2 to 40 km2 and three new exploration licenses were applied for to fill the 20% gap created by the area reduction.  These applications– for the Melisa, Cipreses and Puente Quebrado licenses cover a total area of 9 km2 in the northeast and south areas of the original Oasis License.

In June 2010, an application was filed to extend the term of
the Lucero license for two years from its July 2010 expiration date. The renewal
application provides for a reduction in the area of the license from 52.8 km2 to
40 km2. One new license application (Valencia) was filed to fill the approximate
12.8 km2 gap created by the reduction of the original Lucero license. Similarly, an application was made in October 2010 to extend the Andres
license for two years from the original license expiration in December 2010. In
this case the Granada license was applied for to fill the gap left through
reduction of the Andres license. The renewal periods for the Lucero and Andres
licenses were granted in March 2012.

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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.

In addition to the three granted exploration licenses,
applications for the Soledad reconnaissance license and the El Olivo exploration
license were submitted to MEM by Entre Mares in 2006 and 2007, respectively. San
Rafael acquired the right to these applications as part of the Escobal
Acquisition. San Rafael later filed an application for the Cristina exploration
license (October 2010) and the El Silencio reconnaissance license (November
2010). In 2011, five exploration concessions  Nacimiento, Pajarita, El Durazno,
Teresa and Pajal  were applied for over newly identified prospective areas
within the El Soledad and El Silencio reconnaissance concessions. The Company
was subsequently notified by MEM that these applications could not be registered
until the reconnaissance concessions were granted and requested exploration
areas were formally excluded. All of these licenses will cover land within the
Escobal mine area when and if they are issued.

On July 8, 2011, an application was submitted to MEM for the
Escobal Exploitation concession, covering 20.0 km2 of area designated for mine
development in the original Oasis exploration concession. Upon filing of the
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.

In the second quarter of 2011, the Company completed additional baseline studies and environmental analyses and submitted an Exploitation EIS (“EIS”) to MARN for the Escobal mine exploitation license.  On October 21, 2011, MARN notified the Company that it had approved the Exploitation EIS.  Once full EIS clearance was received, construction of the process plant and support facilities required for full production began.  By year end, earthwork at the main plant site and tailings areas, warehouse, access road and office facilities were well underway.  In addition, construction of the electrical substation and power line on the Escobal mine site commenced.

In the third quarter of 2011, the Company submitted an
exploitation concession application and supporting documentation to MEM. MEM had
completed all of the review possible without EIS approval by October 8, 2011. A
final legal review commenced on October 24, 2011 when the Exploitation EIS was
officially received at MEM. After completing a technical and legal review, MEM
issued the Escobal exploitation license on April 3, 2013 for a period of 25
years.

In November 2011, Otto Perez Molina was elected to serve as the
new Guatemalan President. President Perez, who was inaugurated on January 14,
2012, has taken a public stance that his administration supports sound mining
development in Guatemala. MEM submitted legislation in October that would permit
the state to acquire up to a 40% interest in natural resource projects in
Guatemala. After introducing the legislation, MEM officials stated that the
proposed amendment does not cover existing projects such as Escobal. However, it
is unclear how this may affect the Companys regional exploration program. No
action was taken by Congress.

In a further 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.

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According to Guatemalan requirements, 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.

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

Concession
    Type
    Size
      (km2)
    Application Date
    Grant
      Date
    1st Extension Filed
    1st Extension ApprovedSOLEDAD
    Recon
    802.5
    12/6/2006
    NAOASIS
    Exploration
    40.0
    10/25/2006
    3/26/2007
    10/9/2009
    4/27/2010LUCERO
    Exploration
    45.8
    10/25/2006
    8/21/2007
    6/21/2010
    3/29/2012ANDRES
    Exploration
    44.0
    5/18/2007
    12/17/2007
    10/6/2010
    3/29/2012EL OLIVO
    Exploration
    36.0
    5/18/2007
    NAJUAN BOSCO
    Exploration
    59.9
    11/12/2008
    4/26/2012PUENTE
      QUEBRADO
    Exploration
    3.0
    10/9/2009
    NAMELISA
    Exploration
    3.0
    10/9/2009
    NACIPRESES
    Exploration
    3.0
    10/9/2009
    NAVALENCIA
    Exploration
    7.0
    8/23/2010
    NAGRANADA
    Exploration
    5.0
    10/6/2010
    NACRISTINA
    Exploration
    52.2
    10/6/2010
    NAEL SILENCIO
    Recon
    1098.1
    11/4/2010
    NANACIMIENTO
    Exploration
    7.6
    2/19/2011
    NAPAJAL
    Exploration
    66.0
    5/4/2011
    NAESCOBAL
    Exploitation
    20.0
    7/8/2011
    NAEL DURAZNO
    Exploration
    48.9
    7/29/2011
    NAPAJARITA
    Exploration
    57.0
    7/29/2011
    NATERESA
    Exploration
    68.5
    8/17/2011
    NAOASIS I
    Exploration
    12.8
    8/31/2011
    NAOASIS II
    Exploration
    7.0
    8/31/2011
    NAOASIS III
    Exploration
    0.2
    8/31/2011
    NA


Prior to 2012, yearly payments made to MEM for each 50 km2 of
an exploration license included an approximate US$3,750 license holding fee and
an approximate US$90 exploration report filing fee. In 2012 the license holding
fee paid to MEM was increased to approximately US$58,000 for each 50 km2
license. All required payments for all granted licenses are current. Similar
payments will be required for subsequent extension periods.

There are no defined work requirements to keep an exploration license valid, although exploration activity (sampling, mapping, etc.) must  be conducted and results filed with MEM on an annual basis. Exploration activity reports have been filed with MEM for all exploration licenses as required.

Surface Rights

All of the surface rights that we require for our operations at
the Escobal mine were acquired in 2010. A few additional parcels were acquired
in early 2011 and 2012 to add flexibility and account for potential future
growth in mineral resources. In Guatemala, the surface rights are independent of
mining rights and must be negotiated separately. There is no allowance for
expropriation in Guatemala.

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Land in the area of the Escobal mine is privately owned by
local farmers and used for growing coffee in the higher elevations and
vegetables and other crops in the flatter low lying areas. Approximately 250
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

In June of 2014, a profit sharing program is expected to
commence in the form of an NSR royalty of 0.5% to be paid to a local association
of former owners of surface lands. The current mining law mandates that a
royalty of 1% is payable at the exploitation stage and shared equally between
the State and the municipality where the project is situated. Congress may act
to amend the mining law. Until that time, the Company and the federal government
have entered into a voluntary Escobal Royalty Agreement discussed above to
supplement the mandatory 1% and contribute to the communities impacted by our
operations. See Description of Our Business  Doing Business in Guatemala 
Mining.

PERMITS

Operational activities 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 and through the export credential EXPORT –TI -13-2013, dated July 17, 2013 and amended on November 18, 2013.

LEGAL

On July 23, a Court of Appeals in Guatemala held that MEM should have conducted a hearing of a written opposition to the Escobal exploitation license during the permitting application process.  The court did not rule on the substance or validity of the opposition; 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 exploitation license in its decision.  MEM issued a press release on July 24 stating that the ruling had no impact on the status of Escobal’s exploitation license.  MEM and the company have appealed the lower court’s decision to the Constitutional Court.  If the Constitutional Court upholds the Court of Appeals’ decision, MEM will have to hear the opposition which it already stated it believes to be without merit.  A public hearing was held on the issue in November 2013.  The Constitutional Court is expected to issue a ruling in the case sometime in the next several months.

The Escobal exploitation license is required for the Company to operate the mill and to produce concentrate from the mine. All other permits required for continued exploration, construction and operations are in place. However, as the Escobal mine is the Company’s sole project, if the exploitation permit for Escobal is unexpectedly suspended, the Company will be unable to generate revenue. As a result and under such circumstances, the Company expects this would adversely impact its business, results of operations, financial performance and may result in default on the debt facility or reduction of workforce at the project.

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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 will be directly discharged from the site.  Impacted water will be treated 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
- Process water recovery and recycling
- Process/contact water treatment systems
- Surface and groundwater monitoring programs
- Underground paste backfill

The Company has estimated the present value of asset retirement obligations at $3.0 million to reclaim the Escobal mine at the end of the mine life.  As at December 31, 2013, we had recorded the full amount of this reclamation liability based on progress of the construction of the mine and plant at that time.  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 3,000 metre lateral distance and 2,000 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.

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Drilling at the Escobal mine was conducted by Entre Mares (Goldcorp) from 2007 up to the time of our acquisition of the Escobal mine and we have continued the drilling since that time. Drilling has been carried out using a combination of contracted and company-owned drills.  As of December 31, 2013, a total of 431 surface exploration drill holes (181,502 metres) have targeted the Escobal Vein system. An additional 366 diamond drill holes (41,990 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 using NTW-size drill core.

In 2013 exploration drilling at the Escobal mine explored
extensions of the deposit where it was open laterally and to depth and to
improve confidence in the mineral resource through in-fill drilling. A total of
between two and four drills operated from the surface at the Escobal mine
throughout the year.

The Escobal Vein is one of numerous vein showings recognized in
the district. Using the geologic model developed for the Escobal mine,
prospective areas were evaluated throughout the region to identify drill-viable
targets that occur within our currently held license areas.

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 sampled at 1.5-meter lengths though sample intervals can be defined from less than one meter in zones of discreet mineralization to over three meters 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 San Rafael
las Flores 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 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.

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.

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MINERALRESOURCES

The Mineral Resource estimate for the Escobal mine as published in the May 2012 Escobal PEA contains 367.5 million ounces of silver classified as Indicated resources and 36.7 million ounces of silver classified as Inferred resources, with significant amounts of gold, lead, and zinc reported in both resource categories.  The effective date of the Escobal mine Mineral Resource is January 23, 2012.  A summary of the Indicated and Inferred resources, using a cutoff grade of 150 grams per tonne silver-equivalent, is provided in the following table:

MAY 2012 ESCOBAL PEA TABLE 1-1: SUMMARY OF
      INDICATED AND INFERRED MINERAL RESOURCESResource Classification
    Tonnes (M)
    Silver (g/t)
    Gold (g/t)
    Lead (%)
    Zinc (%)
    Silver (Moz)
    Gold (koz)
    Lead (kt)
    Zin (kt)Indicated
    27.1
    422
    0.43
    0.71
    1.28
    367.5
    373
    192
    347Inferred
    4.6
    254
    0.59
    0.34
    0.66
    36.7
    85
    15
    30


Mineral Resources at the Escobal mine were estimated using
approximately 22,900 samples obtained from 355 diamond drill core holes,
totaling 122,665 meters. Data verification for the Mineral Resources as reported
in the May 2012 Escobal PEA 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 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 Indicated Mineral Resources total 429.7
million ounces at an average grade of 493 g/t and silver-equivalent Inferred
Mineral resources total 44.7 million ounces at an average grade of 309 g/t.
Silver-equivalent values for the resources were calculated using metal prices of
$25.00/oz Ag, $1300/oz Au, $0.95/lb Pb, and $0.90/lb Zn, with no metal recovery
factors applied. There are no mineral reserves reported for the Escobal project.

MINING&PROCESSFLOWSHEET

Mineralized rock is transported from the underground mine to a
run of mine stockpile from where it is transported by front end loader or trucks
to the processing facility. Mineral concentrates containing gold, silver, lead
and zinc are produced by mineral flotation technology. The run of mine material
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.

The design basis for the processing facility is 4500 dry mtpd
or 1,642,500 dry tonnes per year. Sulfide and mixed oxide-sulfide resources
(diluted) are available for approximately 19 years at an average silver grade of
383 g/t, gold grade of 0.38 g/t, lead grade of 0.62% and zinc grade of 1.1%.

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MINING

The Escobal Mineral Resources as described in the May 2012 Escobal PEA forms the basis of our development and operating plans for the Escobal mine. The mine is expected to produce between 18 and 21 million ounces of silver in 2014 based on the 3500 tpd model. A mine wide cut-off value of 150 g/t equivalent silver has been determined as optimal for the operation.

The Escobal deposit is accessed through two main portals.  Two primary ramps, the East Central and West Central ramps, are being excavated with dimensions of five metres wide by six metres high at a maximum grade of -15% to access the Central zone. A third internal primary ramp of the same dimension is currently being driven to the East zone from the East Central ramp at a grade of +10%. Through the end of 2013, primary ramp development totals 3,884 metres.  Primary development for approximately five years of mill feed at 3500 tpd has been completed to date.

The East Central and West Central ramps connect to a system of secondary footwall laterals that are positioned on the south side of the Escobal vein and spaced 25 metres vertically in the Central zone.  Stopes are accessed from the footwall laterals at 20 metre intervals.  The mining method at Escobal is longhole stoping; whereas transverse longhole stoping is used to mine areas where the horizontal dimension across the dip of the vein is greater than 15 metres and longitudinal longhole stoping is used to mine areas where the vein thickness is less than 15 metres. Material produced from stope development and production is hauled directly from the working areas to a stockpile at the process plant by truck; development waste is hauled by truck to the surface. At the end of 2013, a total of 4,179 metres of sublevel development and 4,918 metres of stope development were completed.

During 2013, the Escobal mine produced approximately 220,000 tonnes of metal-bearing material from transverse longhole stoping and stope development. Approximately 159,000 tonnes of this material, grading 474 Ag g/t, 0.53 Au g/t, 0.64% Pb and 0.92% Zn, were processed through the mill, with the remainder of the material stored on surface stockpiles.

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.

Excavation and construction of the primary ventilation exhaust raise for the Central zone was near completion at year’s end, with ventilation fan installation and commissioning scheduled for completion in March 2014. All other infrastructure to support mining operations, such as electrical power supply, water lines, compressed air lines, communications, paste backfill piping, etc., have been installed.  Current production levels have effectively been dewatered through surface wells and from underground locations.

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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-cm 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 revegetated.  At final closure, the vegetated slope will replicate the natural slopes of the surrounding topography.

The engineering and design report for the dry stack tailings was submitted to MARN in the fourth quarter of 2012.  Submission of the report was a prerequisite to the initiation of construction of the dry stack facility.  Construction began in December 2012.  At the end of 2013, approximately 84,000 cubic metres of tailings have been placed and compacted in the dry stack facility.

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 sea-going 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.

Surface disturbance resulting from the mine will be small as all mining activity will be underground.  Reclamation will commence as soon as is practical during the development and operations by placing salvaged topsoil on outslopes and encouraging vegetation. Concurrent reclamation began in 2012 and continued throughout 2013.  Final reclamation will occur at final closure at the end of mine life.

2013 CAPITAL COSTS

In 2013, the Company incurred $36.4 million in Escobal project expense.  Upon receipt of the exploitation permit in April, the Company began capitalizing underground expenses associated with the Escobal project.  During 2013, the Company’s total capitalized costs for the Escobal project were $167.4 million.  Capital costs consisted of 1) construction and sustaining costs of $45.6 million relating to underground infrastructure and development and 2) $124.6 million in surface infrastructure.  After commissioning commenced in September, pre-operating revenues of $28 million and production costs of $18.7 million were netted and credited back to the project.

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

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DIVIDENDS AND DISTRIBUTIONS

We have not paid any dividends on our Shares. We currently intend to retain future earnings, if any, to repay our debt and to finance the expansion of our business and have not established policies for paying dividends at this time. While we expect to develop a dividend policy in 2014, a decision to pay dividends on the Shares in the future will be made by the Board on the basis of the earnings and financial requirements of the Company as well as other conditions existing at such time.

DESCRIPTION OF CAPITAL STRUCTURE

The Company is authorized to issue an unlimited number of Shares. As at the date hereof, 149,140,997 Shares were issued and outstanding as fully paid and non-assessable.

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

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

TRADING PRICE (US$)2013
    High
    Low
    VolumeJanuary
    19.19
    15.37
    4,116,400February
    17.22
    14.11
    4,259,200March
    17.96
    15.20
    4,607,100April
    19.55
    14.12
    11,787,600May
    17.31
    14.52
    9,197,800June
    15.50
    12.44
    4,337,700July
    16.61
    13.49
    3,611,300August
    20.51
    14.65
    4,271,700September
    19.46
    16.80
    4,401,800October
    20.64
    17.07
    4,977,400November
    20.42
    18.29
    4,455,100December
    18.64
    16.55
    3,671,400  TRADING PRICE (US$)2014
    High
    Low
    VolumeJanuary
    20.53
    16.85
    5,252,500February
    23.68
    17.27
    2,588,500








|Annual Information Form
      for the Year Ended December 31, 2013 | 
|------------------------------------------------------------------ | 

---

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

TRADING PRICE (CDN $)2013
        High
        Low
        VolumeJanuary
        19.19
        15.37
        4,116,400February
        17.22
        14.11
        4,259,200March
        17.96
        15.20
        4,607,100April
        19.55
        14.12
        11,787,600May
        17.31
        14.52
        9,197,800June
        15.50
        12.44
        4,337,700July
        16.61
        13.49
        3,611,300August
        20.51
        14.65
        4,271,700September
        19.46
        16.80
        4,401,800October
        20.64
        17.07
        4,977,400Nov ember
        20.42
        18.29
        4,455,100December
        18.64
        16.55
        3,671,400


TRADING PRICE (CDN $)2014
        High
        Low
        VolumeJanuary
        20.53
        16.85
        5,252,500February
        26.23
        19.15
        5,510,431


Source: www.tmxmoney.com

The price of Shares as reported by the NYSE at the close of business on December 31, 2013, the last business day of the year in the U.S., was $16.64 and on March 12, 2014 was $22.73 per share. The price of the Shares as reported by the TSX at the close of business on December 31, 2013, the last business day of the year in Canada, was Cdn$17.67 per share and on March 12, 2014 was Cdn$25.28 per share.

PRIOR SALES

In the twelve month period ended December 31, 2013, the Company granted 612,000 options and 59,000 share awards (consisting of 24,000 Deferred Share Awards and 35,000 Restricted Share Awards) under its Share Option and Incentive Share Plan adopted on April 20, 2010.

Grant Date
    
    Options
    
    CAN$
    
    First Vest Date
    
    Expiry DateGrantedMarch 7, 2013
    
    573,000
    
    $16.34
    
    March 7, 2014
    
    March 7, 2018May 9, 2013
    
    12,000
    
    $17.08
    
    May 9, 2014
    
    May 9, 2018November
      12, 2013
    
    27,000
    
    $19.91
    
    November 12, 2014
    
    November 12, 2018


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

---

DIRECTORS AND EXECUTIVE OFFICERS

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

The following table sets 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 8, 2014.

DIRECTORSName and Municipality ofResidence
    Position(s) withthe Company
    Date ofAppointment
    Principal
      OccupationC. KEVIN MCARTHURReno,
      Nevada, United States
    Vice Chair, Chief Executive Officer and
      Director
    12-Mar-14
    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)
    Audit Committee.(2)
    Corporate Governance and Nominating Committee(3)
    Compensation Committee(4)
    Health, Safety, Environment and Community
      Committee


|Annual Information Form
      for the Year Ended December 31, 2013 | 
|------------------------------------------------------------------ | 

---

EXECUTIVE OFFICERSName and Municipality of Residence
    Position(s) with the Company(1)
    Date of Appointment
    Principal
      OccupationRONALD 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.


|1. | As at December 31, 2013, the positions of the Company’s executive officers were as follows: Mr. McArthur, President and Chief Executive Officer; Mr. Clayton, Executive Vice President and Chief Operating Officer; Mr. Sadler, Vice President and Chief Financial Officer; Mr. Brodsky, Vice President, Exploration; and Ms. Hofmeister, Vice President, General Counsel and Corporate Secretary. The current positions of the Company’s executive officers, as indicated in the tables above, took effect on March 12, 2014.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

Lorne B. Anderson, Director.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. 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 Gold Ltd.  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.

John P. Bell, Director. John P. Bell is a former
Canadian diplomat who served 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 1998-2006. 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.

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

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C. Kevin McArthur, Vice Chair of the Board and Chief Executive Officer.Mr. McArthur founded the Company and became President and Chief Executive Officer on November 10, 2009.  On March 12, 2014 the Board of Directors appointed him to be Vice Chair of the Board and to retain his position as 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 was President and Chief Executive Officer of Glamis Gold Ltd. from January 1, 1998 and served in a variety of management positions with Glamis since 1988.  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 Pembrook Mining Corp. and Royal Gold, Inc.

A. Dan Rovig, Director and Chair of the Board.Mr. Rovig
has been a director of Goldcorp since November 2006 and is currently a Director
and Chair of the Board of Tahoe Resources Inc. He was a director and Chairman of
the Board of Glamis Gold Ltd. from November 1998 to November 2006. 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. 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
Mongolia Growth Group Ltd. 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. Currently Mr. Voorhees is a director of Cloud
Peak Energy. From 2005 to 2006 Mr. Voorhees was Executive Vice President and
Chief Operating Officer of Glamis Gold Ltd. and from 1999 to 2005 he was Vice
President Operations and Chief Operating Officer of Glamis Gold Ltd. Mr.
Voorhees holds a B.S. degree in Mining Engineering from the University of Nevada
and is a registered professional engineer.

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 Gold Ltd. 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. Currently he is a director of
Uranium One Inc. 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.

|Annual Information Form
      for the Year Ended December 31, 2013 | 
|------------------------------------------------------------------ | 

---

Brian Brodsky, Vice President, Exploration. Mr. Brodsky
was appointed Vice President of Exploration of the Company and began work for us
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 Gold 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 U.S. 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 twenty 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 20 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, an MBA from Westminster College 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 5,681,558 vested Shares, representing approximately 3.90% 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 75,667 Deferred Share Awards and 2,350,458 Options as at March 12, 2014.

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

---

|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.

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

|Annual Information Form
      for the Year Ended December 31, 2013 | 
|------------------------------------------------------------------ | 

---

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

There are no material contracts which we have entered into
within the financial year ended December 31, 2013.

INTERESTS OF EXPERTS

The Qualified Person and Principal author for the Escobal Preliminary Economic Assessment is Conrad Huss, P.E., of M3. The Qualified Person for such report responsible for the review of the civil and environmental controls for the Escobal mine was Daniel Roth, P.E., of M3. The Qualified Person for such report responsible for the review of the metallurgical testing and flow sheets for the Escobal mine was Thomas L. Drielick, P.E., of M3. The Qualified Person for such report responsible for the review of the project history, geologic setting and deposit characterization is Richard K. Zimmerman, SME RM, of M3. All M3 personnel who worked on the report were supervised by Conrad Huss. The Qualified Person for the Escobal Economic Preliminary Assessment responsible for the review of the drilling, sampling method, sample preparation and analysis and data verification, and for the preparation of the Mineral Resource estimate described in the Escobal Economic Preliminary Assessment was Paul Tietz, C.P.G., of Mine Development Associates, an independent mining consulting firm.

The Company believes that at the date hereof, each of the
authors of the Escobal Preliminary Economic Assessment and the employees and
partners, as applicable, of M3 and Mine Development Associates, 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 for the
year ended December 31, 2013 is as follows:

|                                            |   | 2013    |   |   | 2012    |   |   | 2011    |  
|------------------------------------------- | - | ------- | - | - | ------- | - | - | ------- | -
|Revenues                                    | $ | -       |   | $ | -       |   | $ | -       |  
|Net (Loss)                                  | $ | (65,597 | ) | $ | (93,453 | ) | $ | (69,166 | )
|Net Earnings (Loss) Per Share               |   |         |   |   |         |   |   |         |  
|Basic                                       | $ | (0.45   | ) | $ | (0.65   | ) | $ | (0.48   | )
|Diluted                                     | $ | (0.45   | ) | $ | (0.65   | ) | $ | (0.48   | )
|Cash and Short-Term Investments             | $ | 8,838   |   | $ | 164,561 |   | $ | 349,837 |  
|Total Assets                                | $ | 883,333 |   | $ | 852,943 |   | $ | 922,005 |  
|Total Liabilities                           | $ | 109,179 |   | $ | 21,646  |   | $ | 10,351  |  
|Total
      Shareholders Equity            | $ | 774,154 |   | $ | 831,297 |   | $ | 911,654 |  
|(1)	In thousands, 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, 2013.

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

---

ADDITIONAL CORPORATE AND FINANCIAL INFORMATION

Additional information relating to the Company, including
additional financial information contained in the audited financial statements
and the Management Discussion and Analysis for the year ended December 31, 2013,
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 12, 2014, can be found on SEDAR at www.sedar.com or on the Companys
website at www.tahoeresourcesinc.com.

INFORMATION CONCERNING THE COMPANYSAUDIT 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 Company 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
National Instrument 52-110 of the Canadian Securities Administrators.

|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’ 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.

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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 Gold Ltd.  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
Gold Ltd. 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.
Currently he is a director of Uranium One Inc. 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 minimus non-audit services allowed by applicable law or regulation.

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 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 for services performed during the year ended December 31, 2013 for the category of fees described:

Financial Period
    Audit
      Fees(1) (Cdn$)
    Tax
      Fees(2) (Cdn$)
    All Other
      Fees(3) (Cdn$)Jan. 1  Dec. 31, 2013
    $563,500
    --
    --Jan. 1 - Dec. 31, 2012(4)
    $190,000
    $130,438
    $106,057


(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, and requests for rulings or technical advice
      from tax authorities. All tax services are provided by KPMG(3)
    All Other Fees include services related to Canadian
      indirect tax issues, Directors, stock based compensation, company
      reorganization, and the implementation of Sarbanes-Oxley compliance
      programs made necessary by the Companys listing on the
  NYSE.(4)
    During 2012, external audit serves were peformed by both KPMG LLP and Deloitte LLP.


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

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APPENDIX A  TAHOE RESOURCES

|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.

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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.

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.

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

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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;

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- 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;
- 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;
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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- 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
- periodically review, and discuss with external auditor and
      Management, the internal auditors responsibilities, 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.

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