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ANNUAL INFORMATION FORM

For the year ended December 31, 2016

Dated March 9, 2017

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THIS PAGE INTENTIONALLY LEFT BLANK.

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|                             | Annual Information Form for the
|---------------------------- | -------------------------------
|Year Ended December 31, 2016

|TABLE OF CONTENTS
|-----------------

|INTERPRETATION
      AND OTHER INFORMATION                     | 1 
|-------------------------------------------------------------- | --
|Definitions                                                    | 1 
|GLOSSARY OF TECHNICAL
      TERMS                              | 3 
|CURRENCY INFORMATION                                           | 5 
|FORWARD-LOOKING
      STATEMENTS                               | 5 
|NON-GAAP FINANCIAL MEASURES                                    | 6 
|DISCLOSURE STANDARDS                                           | 6 
|CORPORATE STRUCTURE                                            | 7 
|Incorporation and Offices                                      | 7 
|GENERAL DEVELOPMENT OF OUR BUSINESS                            | 7 
|Development of Our Business                                    | 7 
|2017
      Developments                                        | 7 
|2016 Developments                                              | 8 
|2015
      Developments                                        | 9 
|2014 Developments                                              | 9 
|Indebtedness                                                   | 10
|Inter-Corporate Relationships                                  | 10
|Legal                                                          | 11
|DESCRIPTION OF OUR
      BUSINESS                              | 11
|Overview of
      Our Business and Strategy                    | 11
|The Silver Industry                                            | 12
|The Gold
      Industry                                        | 13
|Product                                                        | 13
|Specialized
      Skill and Knowledge                          | 13
|Employees                                                      | 14
|Foreign
      Operations                                       | 14
|Competitive Conditions                                         | 14
|Environmental
      and Social Activities                      | 14
|Doing Business in Guatemala, Peru and Canada                   | 20
|The Escobal
      Mine                                         | 29
|The La Arena Mine                                              | 40
|The Shahuindo
      Mine                                       | 51
|The Bell Creek Complex                                         | 62
|The Timmins
      West Mine                                    | 71
|Mineral Resource & Mineral Reserve Disclosure                  | 79
|DIVIDENDS DISTRIBUTIONS AND
      REINVESTMENT PLAN            | 80
|DESCRIPTION OF
      CAPITAL STRUCTURE                         | 80
|MARKET FOR SECURITIES                                          | 80
|Trading History on the TSX                                     | 81
|Trading
      History on the NYSE                              | 81
|PRIOR SALES                                                    | 82
|DIRECTORS AND EXECUTIVE OFFICERS                               | 82
|Directors and Executive Officers                               | 82
|Cease Trade
      Orders, Bankruptcies, Penalties or Sanctions | 85
|Conflicts of Interest                                          | 85

|Annual Information Form for the Year Ended December 31,
      2016 | i
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|Interest
      of Management and Others in Material Transactions                | 85
|------------------------------------------------------------------------------- | --
|MATERIAL
      CONTRACTS                                                        | 85
|TRANSFER
      AGENTS AND REGISTRAR                                             | 86
|INTERESTS
      OF EXPERTS                                                      | 86
|SELECTED
      CONSOLIDATED FINANCIAL INFORMATION                               | 86
|ADDITIONAL
      CORPORATE AND FINANCIAL INFORMATION                            | 86
|INFORMATION
      CONCERNING THE COMPANYS AUDIT COMMITTEE AND EXTERNAL AUDITOR | 86
|The
      Audit Committees Duties and Charter                                  | 86
|Composition
      of the Audit Committee                                        | 86
|Relevant
      Education and Experience                                         | 87
|External
      Auditor and Other Professional Service Fees                      | 87
|Auditor
      Partner Rotation                                                  | 87

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

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|INTERPRETATION AND OTHER INFORMATION
|------------------------------------

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

In this Annual Information Form (AIF), the words and phrases
are defined below unless the context otherwise requires.

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

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

Bell Creek Mine means the underground gold mining
operation encompassing the Bell Creek deposit located in the Timmins District of
the province of Ontario in Canada, which produces ore that is processed at the
Bell Creek Mill.

Bell Creek Mill means the gold processing plant,
located in the Timmins District of the province of Ontario in Canada that
processes ore from the Bell Creek Mine and the Timmins West Mine.

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

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

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

CSA means the Canadian Securities Administrators.

Deferred Share Awards means 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, pursuant to the Companys Share Option
and Incentive Share Plan, including any amendments thereto.

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

ERHL means Escobal Resources Holdings Limited, a
wholly owned subsidiary of the Company that is incorporated under the laws of
Barbados.

EscobalAcquisition means the acquisition by
the Company of the Escobal Mine Assets in accordance with the terms and
conditions of the Transaction Agreement.

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

Escobal Feasibility Studymeans the independent
technical report entitled Escobal Mine Guatemala NI 43-101 Feasibility Study 
Southeastern Guatemala issued on November 5, 2014, with effective dates of
January 23, 2014 for the Escobal Mineral Resource and July 1, 2014 for the
Escobal Mineral Reserve.

Escobal Mine means the mining project comprised of the
Escobal Mine Assets.

Escobal Vein means the zone of mineralization on the
Escobal Exploitation License that contains the Mineral Resources and Mineral
Reserves for the Escobal Mine.

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

La Arena Feasibility Study means the updated NI 43-101
technical report for La Arena Mineral Resource and Reserve dated December 31,
2014.

La Arena Mine means the oxide open pit, heap leach
gold mine located in northern Peru.

Lake Shore means Lake Shore Gold Corporation, a
Canadian company which is a wholly-owned subsidiary of the Company and which
holds mineral interests in Ontario, Canada.

Lake Shore Arrangement means the acquisition of all of
the outstanding shares of Lake Shore on the terms and conditions set forth in
the Lake Shore Arrangement Agreement.

Lake Shore Arrangement Agreement means the arrangement
agreement entered into as of February 8, 2016, between the Company and Lake
Shore relating to the acquisition by the Company of all of the outstanding
shares of Lake Shore by way of Plan of Arrangement.

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

MEM means the Ministry of Energy and Mines of
Guatemala and/or Peru, as specified when used.

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

MNDM means Ministry of Northern Development and Mines
of Ontario, Canada.

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

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

NYSE means the New York Stock Exchange.

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

Restricted Share Awards means 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, pursuant to the Companys Share Option and Incentive Share Plan,
including any amendments thereto.

Rio Alto means Rio Alto Mining Limited, an Alberta
company that was a party to the Rio Alto Arrangement Agreement and which was
subsequently amalgamated into Tahoe Resources ULC, an Alberta company which is a
wholly-owned subsidiary of the Company and which holds mineral interests in
Peru.

|Annual Information Form for the Year Ended December 31,
      2016 | 1
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Rio Alto Arrangement means the business
combination between the Company and Rio Alto on the terms and conditions set
forth in the Rio Alto Arrangement Agreement.

Rio Alto Arrangement Agreement means the
arrangement agreement dated February 9, 2015 between the Company and Rio Alto
with respect to the Rio Alto Arrangement.

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

Secondary Offering means the offering and sale of
58,051,692 common shares of the Company beneficially held by Goldcorp that
closed on June 30, 2015.

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

Shahuindo Prefeasibility Study means the independent
technical report entitled Shahuindo Mine Peru NI 43-101 Prefeasibility Study
regarding the Shahuindo Mineral Reserve and Resource filed on SEDAR on January
25, 2016.

Shahuindo Mine means the gold-silver open pit, heap
leach mine located in northern Peru.

Shares or Tahoe Shares means common shares without par
value of the Company.

Share Option and Incentive Share Plan means the
Companys Share Option and Incentive Share Plan, as amended and restated
effective March 7, 2013.

Sulfide Project or La Arena Phase II Sulfide
Project means the project to commercially develop copper-gold
mineralization in the La Arena porphyry.

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

Timmins West Mine means the underground gold mining
operation encompassing the Timmins, Thunder Creek and 144 Gap deposits located
in the Timmins District of the province of Ontario, Canada. Ore from the Timmins
West Mine is trucked to the Bell Creek Mill for processing.

Transaction Agreement means the definitive purchase
and sale agreement made as of May 3, 2010, as amended on October 12, 2010,
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.

|2 | Tahoe Resources Inc.
|- | --------------------

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|GLOSSARY OF TECHNICAL TERMS
|---------------------------

|Ag:                                  | Silver.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Au:                                  | Gold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Contained Ounces:                    | The troy ounces of metal in resources or reserves
      obtained by multiplying tonnage by                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                     | grade.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Cut-off Grade:                       | The grade below which mineralized material is considered
      uneconomic.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Development:                         | The preparation of a mineable deposit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|g/tonne or g/t:                      | Grams per metric tonne; 31.10348 grams is equal to one
      troy ounce.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Indicated Mineral
      Resource(1): | That part of a Mineral Resource for which quantity, grade
      or quality, densities, shape and physical characteristics are estimated
      with sufficient confidence to allow the application of Modifying Factors
      in sufficient detail to support mine planning and evaluation of the
      economic viability of the deposit. Geological evidence is derived from
      adequately detailed and reliable exploration, sampling and testing and is
      sufficient to assume geological and grade or quality continuity between
      points of observation. An Indicated Mineral Resource has a lower level of
      confidence than that applying to a Measured Mineral Resource and may only
      be converted to a Probable Mineral Reserve.                                                         
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Inferred Mineral
      Resource(1):  | That part of a Mineral Resource for which quantity and
      grade or quality are estimated on the basis of limited geological evidence
      and sampling. Geological evidence is sufficient to imply but not verify
      geological and grade or quality continuity. An Inferred Mineral Resource
      has a lower level of confidence than that applying to an Indicated Mineral
      Resource and must not be converted to a Mineral Reserve. It is reasonably
      expected that the majority of Inferred Mineral Resources could be upgraded
      to Indicated Mineral Resources with continued exploration.                                                                                                                                                                                               
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|IRR:                                 | Internal Rate of Return.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|km:                                  | Kilometre.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|km2:                                 | Square Kilometre.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Kv:                                  | Kilovolt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Measured Mineral
      Resource(1):  | That part of a Mineral Resource for which quantity, grade
      or quality, densities, shape, and physical characteristics are estimated
      with confidence sufficient to allow the application of Modifying Factors
      to support detailed mine planning and final evaluation of the economic
      viability of the deposit. Geological evidence is derived from detailed and
      reliable exploration, sampling and testing and is sufficient to confirm
      geological and grade or quality continuity between points of observation.
      A Measured Mineral Resource has a higher level of confidence than that
      applying to either an Indicated Mineral Resource or an Inferred Mineral
      Resource. It may be converted to a Proven Mineral Reserve or to a Probable
      Mineral Reserve.
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Mineral Reserve:                     | The economically mineable part of a Measured and/or
      Indicated Mineral Resource. It includes diluting materials and allowances
      for losses, which may occur when the material is mined or extracted and is
      defined by studies at pre-feasibility or feasibility level as appropriate
      that include application of Modifying Factors. Such studies demonstrate
      that, at the time of reporting, extraction could reasonably be justified.
      The reference point at which Mineral Reserves are defined, usually the
      point where the ore is delivered to the processing plant, must be stated.
      The public disclosure of a Mineral Reserve must be demonstrated by a
      pre-feasibility study or feasibility study.                                                          

|Annual Information Form for the Year Ended December 31,
      2016 | 3
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|GLOSSARY OF TECHNICAL TERMS
|---------------------------

|Mineral Resource:                  | A concentration or occurrence of solid material of
      economic interest in or on the Earths crust in such form, grade or
      quality and quantity that there are reasonable prospects for eventual
      economic extraction. The location, quantity, grade or quality, continuity
      and other geological characteristics of a Mineral Resource are known,
      estimated or interpreted from specific geological evidence and knowledge,
      including sampling. Mineral Resources are sub-divided, in order of
      increasing geological confidence, into Inferred, Indicated and Measured
      categories. The term Mineral Resource covers mineralization and natural
      material of intrinsic economic interest which has been identified and
      estimated through exploration and sampling and within which Mineral
      Reserves may subsequently be defined by the consideration and application
      of Modifying Factors.
|---------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Modifying Factors:                 | Considerations used to convert Mineral Resources to
      Mineral Reserves. These include, but are not restricted to, mining,
      processing, metallurgical, infrastructure, economic, marketing, legal,
      environmental, social and governmental factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|NPV:                               | Net Present Value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|NSR:                               | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Pb:                                | Lead.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Probable Mineral
      Reserve(1): | The economically mineable part of an Indicated, and in
      some circumstances, a Measured Mineral Resource. The confidence in the
      Modifying Factors applying to a Probable Mineral Reserve is lower than
      that applying to a Proven Mineral Reserve. Probable Mineral Reserve
      estimates must be demonstrated to be economic, at the time of reporting,
      by at least a pre-feasibility study.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Proven Mineral
      Reserve(1):   | The economically mineable part of a Measured Mineral
      Resource. A Proven Mineral Reserve implies a high degree of confidence in
      the Modifying Factors. The term should be restricted to that part of the
      deposit where production planning is taking place and for which any
      variation in the estimate would not significantly affect the potential
      economic viability of the deposit. Proven Mineral Reserve estimates must
      be demonstrated to be economic, at the time of reporting, by at least a
      pre-feasibility study.                                                                                                                                                                                                                                                                                                                                                                                       
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|QA/QC:                             | Quality Assurance/Quality Control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Recovery Rate:                     | The percentage of metals or minerals which are recovered
      from ore during processing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Reserves:                          | Combined Proven and Probable Mineral Reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|tpd:                               | Metric tonnes per day.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Zn:                                | Zinc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

|(1) | The definitions of Proven and Probable Mineral Reserves,
      and Measured, Indicated and Inferred Mineral Resources are set forth in NI
      43-101 which establishes standards for all public disclosure an issuer
      makes of scientific and technical information concerning mineral projects,
      as well as in the Canadian Institute of Mining, Metallurgy and Petroleums
      CIM Definition Standards - For Mineral Resources and Reserves,
      Definitions and Guidelines (CIM Standards) adopted by the CIM Council on
      December 2000 and modified in 2005 and 2010. A reader in the United States
      should be aware that the definition standards enunciated in NI 43-101 and
      in the CIM Standards differ significantly from those set forth in SEC
      Industry Guide 7, and resource information disclosed pursuant to NI 43-101
      may not be comparable to similar information disclosed by US companies.
      See Interpretation and Other Information - Disclosure Standards for more
      information.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4 | Tahoe Resources Inc.
|- | --------------------

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

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

Two MonthsEnded
    Years Ended December 31,Feb. 28, 2017
    2016
    2015
    2014Low for the period
    1.3016
    1.2544
    1.1749
    1.0614High for the period
    1.3435
    1.4589
    1.3965
    1.1643Rate at the end of the period
    1.3249
    1.3427
    1.3840
    1.1601Average noon spot rate for the period
    1.3152
    1.3248
    1.2875
1.1045


On March 9, 2017, the Bank of Canada noon spot rate of exchange
was $1.00 -CAD$1.3505.

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

This AIF contains forward-looking information within the
meaning of applicable Canadian securities legislation and forward-looking
statements within the meaning of United States Private Securities Litigation
Reform Act of 1995 (collectively referred to as forward-looking statements).
All statements, other than statements of historical fact, are forward-looking
statements. The words "believe," "expect," "anticipate," "contemplate,"
"target," "plan," "intend," "continue," "budget," "estimate," "may," "will,"
"schedule" and similar expressions or statements identify forward-looking
statements.

Forward-looking statements in this AIF may include, but are not
limited to, statements and/or information related to: the expected working
capital requirements, the sufficiency of capital resources and the possibility
of considering alternative financing arrangements to meet strategic needs;
assessment of future reclamation obligations; exploration and review of
prospective mineral acquisitions; changes in Guatemalan, Peruvian and Canadian
mining laws and regulations; changes to the corporate tax and tax dividend rates
in Guatemala, Peru and Canada; the timing and results of court proceedings; the
anticipated timing of updated Mineral Resource and Mineral Reserve estimates;
the timing of sustaining capital projects; the expectation of meeting production
targets; the timing and cost of re-commissioning and deepening the shaft at the
Bell Creek Mine; the plans to lower heap inventory and increase gold production
at Shahuindo; the timing and cost of the design, procurement, and construction
of the crushing and agglomeration circuit at Shahuindo; the timing of the
receipt of permits at Shahuindo; the availability and sufficiency of power and
water for operations; the completion of a Preliminary Economic Assessment in
2017 on the La Arena Sulfide and Fenn-Gib Projects; and our expected community
outreach and related activities.

Forward-looking statements are based on the reasonable
assumptions, estimates, analysis and opinions made in light of our experience
and our perception of trends, current conditions and expected developments, as
well as other factors that we believe to be relevant and reasonable in the
circumstances at the date that such statements are made, but which may prove to
be incorrect. Management believes that the assumptions and expectations
reflected in such forward-looking statements are reasonable. Assumptions have
been made regarding, among other things: the Companys performance and ability
to implement operational improvements at the Escobal, La Arena, Shahuindo, Bell
Creek and Timmins West Mines; the Companys ability to carry on
exploration and development activities, including land acquisition and
construction; the timely receipt of permits and other approvals; the successful
outcomes of consultations with First Nations; the price of silver, gold and
other metals; prices for key mining supplies, including labor costs and
consumables, remaining consistent with the Companys current expectations;
production meeting expectations and being consistent with estimates; plant,
equipment and processes operating as anticipated; there being no material
variations in the current tax and regulatory environment; the Companys ability
to operate in a safe, efficient and effective manner; the exchange rates among
the Canadian dollar, Guatemalan quetzal, Peruvian sol and the United States
dollar remaining consistent with current levels; and the Companys 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 statements are 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
statements. Such risks, uncertainties and other factors include but are not
limited to: the fluctuation of the price of silver, gold and other metals;
changes in national and local government legislation, taxation and controls or
regulations; changes and national and local government politics and office
holders; social unrest, and political or economic instability in the
jurisdictions in which the Company operates; the availability of additional
funding as and when required; the speculative nature of mineral exploration and
development; the timing and ability to maintain and, where necessary, obtain
necessary permits and licenses; the uncertainty in the estimation of mineral
resources and mineral reserves; the uncertainty in geologic, hydrological,
metallurgical and geotechnical studies and opinions; infrastructure risks,
including access to water and power; drought and other environmental conditions
outside the Companys control; the impact of inflation; changes in the
administration of governmental regulation, policies and practices; environmental
risks and hazards; insured and uninsured risks; land title risks; risks
associated with illegal mining activities by unauthorized individuals on the
Companys mining or exploration properties; risks associated with competition;
risks associated with currency fluctuations; contractor, labor and employment
risks; dependence on key management personnel and executives; the timing and possible
outcome of pending or threatened litigation; the consequences of adverse
judicial rulings; the risk of unanticipated litigation; risks associated with
cyber security; risks associated with the repatriation of earnings; risks
associated with negative operating cash flow; risks associated with the
Companys hedging policies; risks associated with dilution; and risks associated
with effecting service of process and enforcing judgments. For a further
discussion of risks relevant to the Company, see the Companys Annual
Information Form available on www.sedar.com under the heading Description of
Our Business  Doing Business in Guatemala, Peru and Canada  Risk Factors
Relating to Our Business and  Risk Factors Relating to Our Shares.

|Annual Information Form for the Year Ended December 31,
      2016 | 5
|------------------------------------------------------------------ | -

---

Although management has attempted to identify important factors
that could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not to
be as anticipated, estimated or intended. There is no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
forward-looking statements. Accordingly, readers should not place undue reliance
on forward-looking statements. The Company does not undertake to update any
forward-looking statements, except as, and to the extent required by, applicable
securities laws.

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

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

|NON-GAAP FINANCIAL MEASURES
|---------------------------

This AIF includes references to certain non-GAAP financial
measures in respect of the Company, including total cash costs and all in
sustaining costs. In the gold and silver mining industries, these are common
performance measures, but are not defined under IFRS and should not be
considered in isolation. In addition to conventional measures prepared in
accordance with GAAP, certain investors use such non-GAAP measures to evaluate a
companys performance and ability to generate cash flow. Accordingly, they are
intended to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance
with GAAP. For additional information regarding these non-GAAP measures
(including reconciliations to IFRS measures, as applicable), see our
managements discussion and analysis for the year ended December 31, 2016 and
our press release of January 5, 2017, copies of which are available under our
profile on SEDAR.

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

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

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

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

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

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

|6 | Tahoe Resources Inc.
|- | --------------------

---

|CORPORATE STRUCTURE
|-------------------

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

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

We currently have seven significant wholly-owned subsidiaries:
La Arena SA, a company incorporated under the laws of Peru; Lake Shore Gold
Corp., a company incorporated under the laws of Canada; Minera San Rafael, S.A.,
a company incorporated under the laws of Guatemala; Rio Alto SAC, a company
incorporated under the laws of Peru; Shahuindo SAC, a company incorporated under
the laws of Peru; Tahoe Resources ULC, a company incorporated under the laws of
Alberta; and Tahoe Resources USA Inc., a company incorporated under the laws of
Nevada.

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

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

OVERVIEW

Since incorporation in November 2009 and initial public
offering in 2010, we have developed the Escobal Mine in Guatemala and acquired
mining interests in Peru and Canada. We commenced paying a dividend in December
2014.

ESCOBAL MINE

The Company acquired the Escobal Mine assets located in
Guatemala on June 8, 2010 pursuant to the terms of the Transaction Agreement
with affiliates of Goldcorp. The Escobal Acquisition was completed
contemporaneously with the Companys initial public offering. The Escobal Mine
achieved commercial production in January 2014.

LA ARENA MINE

The Company acquired the La Arena Mine assets located in
northwestern Peru on April 1, 2015 pursuant to the terms of the Rio Alto
Arrangement. Commercial operations at La Arena began in 2011. The La Arena Mine
Assets include, but are not limited to, the mineral and land concessions
associated with the open pit gold mine at La Arena and the Sulfide Project.

SHAHUINDO MINE

The Company acquired the Shahuindo Mine assets located in
northwestern Peru on April 1, 2015 pursuant to the terms of the Rio Alto
Arrangement. The Shahuindo Mine Assets include, but are not limited to, the
mineral and land concessions associated with the open pit gold mine at
Shahuindo. Commercial production began at Shahuindo in May of 2016.

LAKE SHORE ASSETS

The Company acquired the Lake Shore Mine assets located in
Timmins, Ontario on April 1, 2016 pursuant to the terms of the Lake Shore
Arrangement Agreement. The Lake Shore Mine assets were previously held by Lake
Shore, which began commercial operations at Bell Creek in 2012 and at Timmins
West Mine in 2011. The Lake Shore Mine assets include, but are not limited to,
the mineral and land concessions associated with the Bell Creek and Timmins West
Mines, the Fenn-Gib Project, the Juby Project, the Vogel Project and the Gold
River Project. The Lake Shore Mine assets also include but are not limited to
ownership in the Whitney Joint Venture and other mineral and land concessions
held by Temex Resources Corp., which became a wholly owned subsidiary of Lake
Shore pursuant to a plan of arrangement completed on September 18, 2015.

|2017
      DEVELOPMENTS
|-----------------------

NEW DIRECTOR

Effective January 1, 2017, Tahoes Board appointed Mr. Charles
Jeannes as a new Board member. Mr. Jeannes brings to the Company over 30 years
of mining industry experience. Most recently, he served as President and CEO of
Goldcorp leading its development into one of the worlds largest and most
successful gold mining companies. Before assuming that role, he served as
Goldcorps Executive Vice-President, Corporate Development. Mr. Jeannes joined
Goldcorp in November 2006 following its merger with Glamis Gold Ltd., where he
held a number of senior positions and played a key role in acquiring, financing
and developing the Marlin, El Sauzal and Peñasquito mines. Prior to joining
Glamis, he served as Vice President of Placer Dome Inc. and also practiced law
for 11 years, specializing in mining transactions. Mr. Jeannes holds a B.A.
degree from the University of Nevada (1980) and graduated from the University of
Arizona College of Law with honors in 1983.

|Annual Information Form for the Year Ended December 31,
      2016 | 7
|------------------------------------------------------------------ | -

---

LA ARENA PHASE II SULFIDE PROJECT IN PERU

The Company has initiated an internal scoping study on the La
Arena Phase II Sulfide Project in Peru. Detailed reinterpretation of all
historic drilling at the La Arena Phase II Sulfide Project is complete and
incorporated into a three dimensional geologic model that forms the basis for a
new resource estimate that supports the internal scoping study. The Company
anticipates completing a Preliminary Economic Assessment of the Project in 2017.

|2016
      DEVELOPMENTS
|-----------------------

LAKE SHORE ACQUISITION

On April 1, 2016, the Company completed the acquisition of Lake
Shore pursuant to the Lake Shore Arrangement Agreement dated February 8, 2016.
The Lake Shore Arrangement was approved by shareholders of the Company and the
shareholders of Lake Shore on March 31, 2016 and received final court approval
on April 1, 2016.

Pursuant to the terms of the Lake Shore Arrangement Agreement,
Lake Shore became a wholly-owned subsidiary of the Company on April 1, 2016 and
all of the issued and outstanding common shares of Lake Shore (each a Lake
Shore Share) were transferred to the Company in consideration for the issuance
by the Company of 0.1467 of a Tahoe Share for each Lake Shore Share.

In connection with the Lake Shore Arrangement, the Company
issued an aggregate of 69,239,629 Tahoe Shares to the former shareholders of
Lake Shore. Immediately upon closing of the Lake Shore Arrangement, former Lake
Shore shareholders held approximately 23% of the outstanding Tahoe Shares on an
undiluted basis. The Company has authorized the issuance of up to an additional
1,621,877 Tahoe Shares issuable upon the exercise of former stock options to
acquire Lake Shore Shares.

The Company filed a Business Acquisition Report in respect of
the Lake Shore Arrangement on SEDAR on April 29, 2016.

REDEMPTION OF LAKE SHORE CONVERTIBLE DEBENTURES

Lake Shore had outstanding a class of 6.25% convertible
unsecured debentures (the Debentures), which were governed by an indenture
dated September 7, 2012, as supplemented effective April 1, 2016 (the
Indenture). As a result of the Lake Shore Arrangement and in accordance with
the terms of the Indenture, on conversion of the Debentures each debenture
holder was entitled to receive Tahoe Shares (in lieu of Lake Shore Shares).
Tahoe and Lake Shore entered into a supplement to the Indenture with
Computershare Trust Company of Canada, as trustee, to, among other things,
evidence Tahoes agreement to issue Tahoe Shares to any debenture holder upon
conversion of the Debentures.

As the market price of the Lake Shore Shares was greater than
130% of the conversion price (as determined in accordance with the Indenture) on
April 1, 2016, Lake Shore gave notice of its election to redeem the Debentures
on May 16, 2016 (the Redemption Date) at a price equal to their principal
amount plus accrued and unpaid interest to, but excluding, the Redemption Date.
Pursuant to the Indenture, the Company elected to satisfy its obligation to
repay the principal amount of the Debentures by issuing Tahoe Shares to the
holders of the Debentures.

An aggregate of 10,611,411 Tahoe Shares were issued pursuant to
the exercise of conversion rights available to holders of the Debentures. Those
Debentures remaining outstanding after voluntary conversions were redeemed by
Lake Shore on May 16, 2016 for an aggregate of 122,264 Tahoe Shares, and the
Debentures were delisted from trading on the TSX at the close of business on the
same day.

SHAHUINDO PREFEASIBILITY STUDY

The Company completed the Shahuindo Prefeasibility Study dated
January 25, 2016. The report shows Measured and Indicated Mineral Resources of
143.1 million tonnes and 2.28 million oxide gold ounces at an average gold grade
of 0.50 gram per tonne (g/t), and Proven and Probable Mineral Reserves of 111.9
million tonnes at an average gold grade of 0.53 g/t, containing 1.91 million
ounces of gold.

BELL CREEK ROYALTY

On July 5, 2016, the Company acquired from Goldcorp for $12.5
million in cash Goldcorps 2% net smelter return royalty related to production
at the Bell Creek Mine.

MANAGEMENT CHANGES

On August 9, 2016, the Company announced the following
management changes, effective August 16, 2016:

| |  | Ron Clayton became President and Chief Executive Officer
      and was appointed to the Companys Board of Directors. Kevin McArthur
      resumed his duties as Executive Chair and continues as a Director;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Elizabeth McGregor became Vice President and Chief
      Financial Officer and Mark Sadler moved to the position of Vice President,
      Project Development;                                               
| |  | Tom Fudge became Vice President, Operations and David
      Howe became Vice President Guatemala Operations and Managing Director,
      MSR;                                                                
| |  | Phil Dalke became Vice President, Peru Operations and
      Managing Director, Rio Alto SAC; and                                                                                                             
| |  | Peter Van Alphen became Vice President and Managing
      Director, Timmins Operations.                                                                                                                      

|8 | Tahoe Resources Inc.
|- | --------------------

---

DIVIDEND REINVESTMENT PLAN

The Company implemented a dividend reinvestment plan (the
DRIP) effective October 2016. The DRIP provides eligible holders of Tahoe
Shares an opportunity to purchase additional Tahoe Shares without paying
commissions or other service charges by reinvesting their cash dividends. The
DRIP allows shareholders to reinvest their cash dividends into additional Tahoe
Shares issued from treasury at a 3% discount to the Average Market Price (as
defined in the DRIP). Participation in the DRIP is optional and will not affect
shareholders cash dividends unless they elect to participate in the DRIP.
Participation in the DRIP is open to all registered and beneficial shareholders
in Canada, the United States and those other jurisdictions where participation
in the DRIP would not be prohibited or restricted by applicable law. Dividends
are paid only when declared by the Companys Board of Directors and the Company
may, in its discretion, change or eliminate the discount applicable to treasury
acquisitions, or direct that common shares be purchased through market
acquisitions at the prevailing market price, in which case no discount
applies.

For 2016, non-cash payments were $2.4 million for a total
issuance of 256,747 common shares of the Company.

BELL CREEK SHAFT EXPANSION

Work on the Bell Creek shaft expansion project began in the
second quarter of 2016, with key positions hired and underground shaft access
development having commenced in June. Shaft engineering work is complete and the
expansion project is expected to be complete by mid-2018.

SHAHUINDO CRUSHING AND AGGLOMERATION

We initiated a review of the crushing, size distribution,
geotechnical and material handling characteristics of ore at Shahuindo in the
second half of 2016, which is nearing completion. The review supports the
achievement of throughput and recovery rates for agglomerated ores contained in
the Shahuindo Prefeasibility Study. The review also identified opportunities to
slightly reduce capital expenditures and operating costs at the mine through
revisions to the crushing and agglomeration circuit.

|2015
      DEVELOPMENTS
|-----------------------

RIO ALTO ACQUISITION

On April 1, 2015, the Company completed the acquisition of Rio
Alto pursuant to the Rio Alto Arrangement Agreement dated February 9, 2015. The
Rio Alto Arrangement was approved by shareholders of Rio Alto and received final
court approval on March 30, 2015.

Pursuant to the terms of the Rio Alto Arrangement Agreement,
Rio Alto became a wholly-owned subsidiary of the Company on April 1, 2015, as
the Company acquired all of the issued and outstanding common shares of Rio Alto
(each a Rio Alto Share) in exchange for 0.227 Tahoe Shares and the payment of
CAD$0.001 for each Rio Alto Share. Additionally, outstanding options of Rio Alto
were deemed to have been exchanged under the Rio Alto Arrangement, and the
holders of Rio Alto options received options to purchase Tahoe Shares. In
accordance with the terms of the outstanding warrants to purchase Rio Alto
Shares, each holder was entitled to receive upon exercise, 0.227 Tahoe Shares
and CAD$0.001 in cash in lieu of one Rio Alto Share.

To give effect to the Rio Alto Arrangement, we issued
75,991,381 Tahoe Shares to former holders of Rio Alto Shares, authorized the
issuance of 2,011,244 Tahoe Shares for issuance to former holders of Rio Alto
warrants upon exercise of such warrants (all of which have been exercised), and
authorized the issuance of up to an additional 3,374,449 Tahoe Shares issuable
upon the exercise of the stock options held by former option holders of Rio
Alto.

The Company filed a Business Acquisition Report in respect of
the Rio Alto Arrangement on SEDAR on June 11, 2015.

SECONDARY OFFERING

On June 30, 2015, Goldcorp closed a secondary offering of
58,051,692 Tahoe Shares it beneficially held at an offering price of CAD$17.20
per share for gross proceeds of approximately CAD$1 billion. The Secondary
Offering was completed through a syndicate of underwriters led by GMP Securities
L.P. and BMO Nesbitt Burns Inc. The secondary offering resulted in the
termination of Goldcorps rights under the shareholders agreement among the
Company and affiliates of Goldcorp, which was last amended and restated on
February 9, 2015.

|2014
      DEVELOPMENTS
|-----------------------

THE ESCOBAL MINE

After completion of construction and commissioning of all major
mine and plant components at the Escobal Mine, in January 2014 the Company
declared commercial production at the Escobal Mine. In November 2014, we
completed the Escobal Feasibility Study, including publication of our initial
Mineral Reserve statement.

DIVIDEND

In November 2014, the Board initiated a monthly dividend of
$0.02 per share, payable on December 19, 2014. The inaugural dividend coincided
with the Companys first year of commercial production. The Company continues to
pay this monthly dividend, subject to Board approval.

|Annual Information Form for the Year Ended December 31,
      2016 | 9
|------------------------------------------------------------------ | -

---

|INDEBTEDNESS
|------------

REVOLVING CREDIT FACILITY

The Company entered into a $150 million revolving credit
facility on August 11, 2015. The Company remains undrawn on this credit
facility. Scotiabank and HSBC are the co-leads for the facility, with Scotiabank
acting as the administrative agent. In addition to the co-leads, Royal Bank of
Canada, Bank of Montreal and Credit Suisse are also members of the banking
syndicate. The facility bears interest on a sliding scale of LIBOR plus between
2.25% to 3.25% or a base rate plus 1.25% to 2.25%, which is determined based
upon the Company's consolidated net leverage ratio. Standby fees for the undrawn
portion of the facility are also on a similar sliding scale basis of between
0.5625% and 0.8125% . The term for the facility is three years.

CREDIT AGREEMENT AND LOAN

On April 8, 2016, the Company signed a credit agreement with an
international bank for a credit facility (the Facility) for an aggregate
amount of $35 million. The Facility bears interest at LIBOR plus 2.25% on the
portion drawn. The LIBOR rate was reset on October 11, 2016. The Facility has a
two-year term, maturing April 9, 2018.

On April 8, 2016, proceeds from the Facility were used to repay
a $35 million loan (Loan) which was acquired as part of the acquisition of Rio
Alto on April 1, 2015 for general working capital purposes.

As security for the Loan that the Company acquired as part of
the acquisition of Rio Alto, Rio Alto had granted a charge over the shares of
its subsidiary Empresa de Energia Yamobamba S.A.C. and the rights of collection
of future cash flows derived from metal sales at the La Arena mine. The Loan had
an original one-year term, maturing June 16, 2015 bearing interest at 30-day
LIBOR plus 2.60% . Upon maturity, the loan was extended an additional nine
months to March 16, 2016 and was further amended to reflect a maturity date of
April 16, 2016. All other terms remained per the original contract.

On April 8, 2016, the Company repaid the Loan in full using the
proceeds of the Facility.

YAMOBAMBA LEASE TERMINATION

As part of the acquisition of Rio Alto on April 1, 2015, the
Company acquired a lease obligation in the form of a sale-leaseback agreement
entered into on January 29, 2015 for the La Ramada substation (La Ramada) in
Peru. La Ramada was sold for $20.7 million in exchange for cash and a deferred
gain on sale of $0.6 million was recognized and is being amortized over the term
of the sale-leaseback. Subsequent to the sale of La Ramada but on the same date,
a leaseback transaction was entered into in the amount of $20.7 million for a
term of three years with quarterly installments of interest and principal at an
effective interest rate of 6.95% and $1.2 million in principal on the lease was
immediately repaid. On April 1, 2015, the lease obligation had a fair value of
$19.3 million. The agreement is a finance lease and a corresponding asset has
been recognized within mineral interests. On August 5, 2016, the lease
obligation was retired for a total of $11.0 million.

|INTER-CORPORATE
      RELATIONSHIPS
|-----------------------------------

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



|10 | Tahoe Resources Inc.
|-- | --------------------

---

|LEGAL
|-----

APPEAL BEFORE THE CONSTITUTIONAL COURT

On July 23, 2013, the Court of Appeals in Guatemala (the
Court) held that MEM should have conducted a hearing of a written opposition
to the Escobal Mine Exploitation License (Opposition) during the permitting
application process. The Court did not rule on the substance or validity of the
license; it merely stated that MEM was obligated to hold an administrative
hearing addressing the substance of the Opposition under the 1997 Mining Law.
MEM issued a press release on July 24, 2013 stating that the ruling had no
impact on the status of the Companys exploitation license. On July 25, 2013,
MEM and the Company appealed the Courts decision to the Constitutional Court
and the Constitutional Court upheld the Courts decision, compelling MEM to
conduct a hearing on the Opposition that MEM already found to be without merit.
The claimants subsequently requested a clarification from the Constitutional
Court, which the Court denied in early May 2016.

In June 2016, MEM commenced the hearing process and then
suspended it indefinitely. The Opposition involves dated claims of prospective
environmental harm (no such harm has materialized since production at Escobal
began three years ago) and new claims of inadequate consultation. Based on the
legal posture of the case, the lack of environmental harm after three years of
operations and the extensive consultation process that MSR followed prior to
issuance of the license, the Company expects a favorable ruling.

GARCIA ET AL. V. TAHOE

On June 18, 2014, an action was commenced against the Company
in the Supreme Court of British Columbia. The lawsuit was filed by seven
Guatemalan plaintiffs who alleged that Tahoe was directly or vicariously liable
for battery and/or negligence regarding an incident that occurred at the Escobal
Mine on April 27, 2013. The plaintiffs seek compensatory and punitive damages.
On November 13, 2015, the Supreme Court of British Columbia issued a ruling
declining jurisdiction over the claims brought by the plaintiffs on the grounds
that Guatemala was the more appropriate forum to adjudicate plaintiffs claims.
The plaintiffs appealed this ruling to the Court of Appeal of British Columbia,
and on January 26, 2017, the Court of Appeal reversed the Supreme Courts
decision on the grounds that British Columbia was a more appropriate forum for
adjudication. While the ultimate result of this action is not expected to have a
material financial impact on the Company, it could have significant negative
legal implications for the mining industry as a whole, and as such, Tahoe
intends to seek leave to appeal the decision to the Supreme Court of Canada.

|DESCRIPTION OF OUR BUSINESS
|---------------------------

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

Tahoes strategy is to responsibly operate the Escobal, La
Arena, Shahuindo, Bell Creek and Timmins West Mines to international standards,
to pay significant shareholder dividends and to develop and operate high quality
precious metals assets in the Americas. Our principal objectives at this time
are to optimize Escobal, La Arena, Shahuindo, Bell Creek and Timmins West
operations and to continue expanding the Mineral Resource and Mineral Reserve
base through exploration and development of the Escobal, La Arena, Shahuindo,
Bell Creek and Timmins West ore bodies and other ore bodies identified in those
regions.

We will continue to identify, investigate and, where
appropriate, acquire interests in mineral properties in the Americas through
direct application to government authorities, joint venture activities or
acquisition from existing holders. As part of this process, we will undertake
early-stage exploration activities to ensure an orderly and steady development
of exploration targets. See General Development of Our Business  Development
of Our Business  2017 Developments for details on the proposed Sulfide
Project.

|Annual Information Form for the Year Ended December 31,
      2016 | 11
|------------------------------------------------------------------ | --

---



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

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

Silver has a number of unique properties
including its strength, malleability and ductility, its
electrical and thermal conductivity, its sensitivity to and
high reflectance of light, and its ability to endure
extreme temperature ranges. Silvers unique properties restrict
its substitution in most 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 Descript tion of Our
Business  Doing Business in Guatemala, Peru and
Canada  Risk Factors Relating to Our Business. A
chart indicating silver prices since January 1, 1999, is
set out below.



As of March 9, 2017, the London Fix price
of silver was US$17.14.

|12 | Tahoe Resources    Inc.
|-- | -----------------------

---

|THE GOLD
      INDUSTRY
|-----------------------

Demand for gold is primarily based on global investment demand,
central bank holdings and jewelry. Savin ng and disposal play a larger role in
the price of gold than does consumption. The metal is also used for coinage, and
has been used as a standard for monetary systems in some countries.

Gold 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 Descript tion of
Our Business  Doing Business in Guatemala, Peru and Canada  Risk Factors
Relating to Our Business. A chart indicating gold prices since January 1, 1999,
is set out below.



As of March 9, 2017, the London Fix price of gold was
US$1,206.55.

|PRODUCT
|-------

The Company produces metal-bearing concentrates and gold doré.
At Escobal, silver, gold, lead and zinc are recovered by differential flotation,
producing silver-rich lead concentrates and zinc concentrates which are sold to
third-party smelters under concentrate sales arrangements. Silver sales at
Escobal for the year ended December 31, 2016 totaled $316.8 million. No revenues
from the sale of by-product me etals (gold, lead, zinc) exceeded 15% of the
total consolidated revenue. At La Arena, gold doré is produced through a cyanide
leach solution an nd carbon absorption system. Gold doré is refined and sold to
third parties under refining, sales and purchase agreements. Gold sales at La
Arena for the year ended December 31, 2016 totaled $244.4 million. At Shahuindo,
a cyanide leach solution and carbon absorption system is used to pour gold doré,
which first occurred in December 2015. Commercial production began at Shahuindo
in the second quarter of 2016. Gold sales at Shahuindo for the year ended
December 31, 2016 totaled $47.2 million (gold sold prior to declaration of
commercial production was credited against construction capital). Ore from the
Bell Creek and Timmins West Mines is processed at the Bell Creek Mill. Gold doré
is produced using carbon-in-pulp and carbon-in-leach recovery systems. The
loaded solution from the strip circuit is passed through two electro-winning
cells in the refinery where gold doré is poured and then sold to third parties
under refining, sales and purchase agreements. Sales from the Bell Creek and
Timmins West Mines for the year ended December 31, 2016 totaled $137.1 million.

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

Most aspects of our business require specialized skills and
knowledge e in the areas of geology, engineering, exploration and development,
environmental management, sustainability and accounting. We e have a number of
employees with extensive experience in mining, engineering, geology, exploration
and development and sustainability in Guatemala, Peru and Canada, including C.
Kevin McArthur, Executive Chair, Ronald W. Clayton, President and Chief
Executive Officer, Brian Brodsky, Vice President Exploration, Charlie Muerhoff,
Viice President Technical Services, Mark Sadler, Vice President Projects
Development, Tom Fudge, Vice President Operations, Edie Hofmeister, Vice
President Corporate Affairs, Phil Dalke, Vice President Operations Peru, Dave
Howe, Vice President Operations Guatemala and Peter Van Alphen, Vice President
Operations Canada. In addition, our management team has extensive experience in
accounting and finance, including Vice President and Chief Financial Officer
Elizabeth McGregor and Vice President and Controller Ryan Snow.

|Annual Information Form for the Year Ended December 31,
      2016 | 13
|------------------------------------------------------------------ | --

---

Mr. McArthur is an experienced mining engineer with over 35
years of engineering, mine building and mine operations experience, including
over six years as Chief Executive Officer of the Company, where he and the
Companys experienced executive team built, acquired and operated world class
mines in the Americas. Mr. McArthur currently serves as the Companys Executive
Chair. Previously, he served eight years in the role of President and Chief
Executive Officer of Glamis Gold Ltd. and two years in the role of President and
Chief Executive Officer of Goldcorp. Mr. Clayton is a seasoned mining executive
and mining engineer with more than 35 years of experience operating mines. He
served as the Companys first Chief Operations Officer beginning in 2010 and
became the Companys Chief Executive Officer in 2016. He was Senior Vice
President, Operations, for Hecla Mining Company before joining the Company.
Messrs. McArthur, Clayton, Brodsky, Muerhoff, Fudge, Dalke, Howe and Van Alphen
have substantial underground and open pit mining experience, including
significant Latin American and Canadian operating experience. Mr. Muerhoff is a
Qualified Person as defined by NI 43-101 and has worked in the mining industry
for over 25 years.

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

As of the date of this AIF, Tahoe Resources USA employs
approximately 25 people in Reno, Nevada, MSR employs more than 1,020 people in
Guatemala, Rio Alto SAC, La Arena and Shahuindo together employ more than 1,140
people in Peru, and Lake Shore employs more than 635 people in Canada.

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

The Escobal Mine is located in Guatemala and the La Arena and
Shahuindo Mines are located in Peru. As such, these operations are exposed to
various levels of political, economic and other risks and uncertainties
associated with operating in a foreign jurisdiction. See Description of Our
Business  Doing Business in Guatemala, Peru and Canada  Risk Factors Relating
to Our Business  Operations in Guatemala, Peru and Canada,  Obtaining and
Renewing Licenses and Permits,  Licenses and Title to Assets and 
Governmental Laws and 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  Doing Business in
Guatemala, Peru and Canada  Risk Factors Relating to Our Business, 
Competition for New Properties and  Financing Requirements.

|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 are dedicated to the highest standards of responsible
environmental stewardship. We honour this commitment by meeting or exceeding
local governmental regulations and aligning our policies and practices with
international guidelines. See Description of Our Business  Escobal Mine 
Environment and  Reclamation,  La Arena Mine  Environment,  Shahuindo
Mine  Closure,  Bell Creek Mine  Environment and  Timmins West Mine 
Environment. We have environmental management processes in place which are
designed to prevent or minimize environmental impacts, to implement mitigation
measures where appropriate, and to improve performance. Tahoes Board of
Directors oversees the Companys environmental management through the Health,
Safety, Environment and Community Committee and reviews site performance on a
quarterly basis. Tahoes Sustainability Steering Committee, chaired by Tahoes
Executive Chair, and comprised of executive management and site leaders,
oversees environmental and other social matters related to each operation on a
quarterly basis. Tahoes Health, Safety, Environment and Community Committee
receives quarterly reports from the Committee in monitoring the effectiveness of
health, safety, environmental, community relations and sustainability policies
and programs at Tahoe operations.

In Guatemala, 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.

MSR conducts continuous environmental monitoring in and around
the local communities surrounding Escobal to determine the quality of the air,
water and stream sediments and to measure vibrations, sound pressure levels,
rock geochemistry and biology. MSR regularly reports these findings to MARN to
ensure compliance with applicable environmental laws, regulations and standards.
Environmental awareness programs offer instruction to MSR employees and
contractors on environmental conservation and mitigation. The Company also works
with national and international non-governmental organizations on community
needs assessments to guide further programs in the vicinity of the Escobal Mine.

|14 | Tahoe Resources Inc.
|-- | --------------------

---

In Peru, the General Mining Law sets forth the environmental
regulation of exploration and mining activities for the country, which is
administered by MEM. Generally, MEM requires exploration and mining companies to
prepare an Environmental Impact Assessment (EIA)  Category I, Environmental
Impact Study Semi Detailed (EIAsd)  Category II, an Environmental Impact
Assessment, a Program for Environmental Management and Adjustment, and a mine
closure plan.

Our operations at La Arena and Shahuindo prevent and mitigate
environmental impacts to the fullest extent possible. These operations are
committed to meeting and/or exceeding high environmental standards, including
flora and fauna preservation, progressive rehabilitation and water quality
protection. Each operation diligently conducts biological and hydro-biological
monitoring and examines surface and ground water, noise, blasting and
vibrations, dust and other emissions to air, waste disposal and erosion control
and reports those findings to Perus MEM on a quarterly basis. Moreover, La
Arena and Shahuindo collaborate with local villages in their direct areas of
influence to sample and monitor water at least biannually. La Arena and
Shahuindo ensure that environmental impacts are minimized by adhering to the
programs as outlined in the approved EIAs and by providing ongoing training to
staff to manage environmental matters. The Companys reclamation projects are
financially supported by bonds or letters of credit.

In Canada, exploration activities are regulated through the
provincial Mining Act and the MNDM. All exploration proposals are forwarded to
the MNDM for approval. In order to ensure the consultation processes have been
fulfilled for proposed projects, scopes for potential exploration projects are
forwarded to the local First Nation communities for review.

Both the Bell Creek and Timmins West Mines comply with current
legislation, regulations and operating licenses on a municipal, provincial and
federal level. Monitoring programs include, but are not limited to, monitoring
of the following: industrial sewage, water, air, dust, noise, vibration and
waste generating materials. Effluent samples are collected at least weekly and
monitoring data and site activities are reported annually to appropriate
government agencies. In addition to complying with provincial legislation
requiring effluent monitoring, the operations also comply with the Metal Mining
Effluent Regulation and Environmental Effects Monitoring, which require detailed
studies of the receiving waters of the Bell Creek and Timmins West Mines. These
studies include aquatic, sediment and benthic analysis, fisheries assessments
and flora and fauna evaluations performed on a three year cycle, which are used
to measure potential effects to the waters, if any.

Both the Bell Creek and Timmins West Mines have also
implemented water management strategies focused on diverting clean water from
the site and treating any and all water used at the site prior to discharge into
the natural environment. All reclamation work is approved by MNDM and
financially supported with bonds or letters of credit.

SUSTAINABILITY

Alignment with International Protocols and Best
International Practices

The Company has aligned its policies and practices in Guatemala
with the United Nations Guiding Principles on Business and Human Rights
(Guiding Principles), the Voluntary Principles on Security and Human Rights
(VPSHR) and the Equator Principles and expects to complete alignment with
these standards in Peru and Canada by the end of 2017. In Guatemala, the Company
completed a Social Impact Assessment and implemented a grievance mechanism in
January 2015 to align with the Guiding Principles and the International Finance
Corporation (IFC) Performance Standards. This mechanism utilizes the NAVEX
Globals case management software which provides for multiple communication
options.

Organizational Sustainability Initiatives

Tahoe Resources Inc. is a member of Business for Social
Responsibility (BSR), a global organization working to further sustainable
business practices, which has assisted the Company in implementing policies and
practices aligned with the Guiding Principles, the VPSHR and the Equator
Principles and in drafting its sustainability report.

MSR is a member of CentraRSE, a local CSR organization in
Guatemala, comprised of more than 100 companies committed to responsible
business practices.

Rio Alto participates with other Peruvian mining companies in a
CSR Mining Initiative focused on furthering the UNs Sustainable Development
Goals. Through this effort, Rio Alto is looking to share best Sustainability
practices and seek possible synergies with other mining companies to accomplish
Sustainability goals.

Lake Shore is a member of the Ontario Mining Association, a
provincial organization whose mission is to support and improve the
competitiveness of the mining sector in the province while representing
companies engaged in the environmentally responsible exploration, production and
processing of minerals in Ontario.

2016 Sustainability Projects

Key MSR social projects in 2016 (some of which are ongoing)
include:

| | Nutrition
| | ---------

Aprendamos Juntas: MSR is
working with the well-respected Guatemalan non-profit organization, Puente, to
administer a food security program, Aprendamos Juntas (We Learn Together), for
women and their families in the vicinity of the Escobal Mine. Throughout the
program, women of reproductive age learn habits for better health and build the
confidence and skills to run a small business for economic stability.
Participants children are also weighed and measured throughout the two-year program to track their
nutritional status. From the first two groups of 800 women, 641 have completed
the first phase of the program consisting of hygiene, nutrition and health
trainings.

|Annual Information Form for the Year Ended December 31,
      2016 | 15
|------------------------------------------------------------------ | --

---

| | Education
| | ---------

Vocational Training Center:
Since 2013, MSR has provided vocational skills training to local residents at
its Vocational Training Center in the San Rafael las Flores municipality. The
center offers courses in English, computer basics, silversmithing, apparel
construction and professional welding, along with gastronomy, bakery and
cosmetology courses that were added in March 2016. The gastronomy course and
bakery course were taught by seasoned restaurant management and bakery
professionals, and focused on basic cooking methods and preparation. The
cosmetology course provided students with hands-on hair and make-up training.
Approximately 250 students from surrounding towns near the Escobal Mine are
currently enrolled in courses that will result in diplomas or technical degrees
upon graduation. In February 2017, Guatemalas INTECAP organization certified
the welding shop associated with the Vocational Training Center, which will
allow students who receive welding training at the Center to graduate with
professional and technical degrees.

School Infrastructure and
Scholarships: In 2016, MSR renovated two schools with special attention
placed on bathrooms, kitchens, classrooms and playgrounds. MSR has renovated
two-thirds of all education infrastructures in San Rafael las Flores since 2010.
MSR has also awarded more than 276 scholarships to help pay for tuition, school
supplies and uniforms to students in the vicinity of the Escobal Mine, and in
2016, donated 4,703 school backpacks filled with educational supplies to
students in San Rafael las Flores.

| | Agriculture
| | -----------

Reforestation Program: Rapid
population growth and the high demand for energy have negatively impacted
Guatemalas forestry resources. Accordingly, to reduce the increasing
deforestation in the region, more than 32,000 trees were planted in 108 hectares
in Santa Rosa through MSRs reforestation program. Further, to increase small
landowners incomes in the region, MSR helped formulate forest management plans
to obtain government subsidies.

Veterinary Services &
Training: In coordination with municipal health centers, MSR provided
vaccinations to approximately 650 small and medium-size farmers livestock and
provided additional veterinary services to 200 residents. Livestock and domestic
animal training was also provided to approximately 200 community members to
teach the importance of proper animal care and strategies for disease
prevention.

| | Infrastructure
| | --------------

Road Improvements: MSR
contributed in the main road repair from Casillas to San Rafael, along with the
secondary roads for Nueva Santa Rosa, San Rafael and Casillas in a tripartite
partnership with the municipality and the Army of Engineers.

Police Station: On February 12,
2016 MSR inaugurated the San Rafael Las Flores (SRLF) police station. The
construction of the police station was a long-term project designed to improve
safety for MSR employees, contractors and SRLF residents.

Hospital Upgrade: MSR invested
approximately $12,000 in pipes and faucets for the oxygen delivery system at the
Cuilapa Regional Hospital in the Santa Rose department. Prior to the upgrade,
oxygen was supplied to patients by individual oxygen tanks that were often
inadequate to meet patient needs, and which had to be delivered by nurses
through a time and labor-intensive process. MSRs upgrades ensure that each
patient has sufficient, individual oxygen supply, and will help approximately
600 emergency, pediatrics and maternity patients each year.

| | Capacity Building
| | -----------------

Most of MSRs 1,000+ employees come
from local areas near the Escobal Mine. In 2016, MSR continued to develop its
employee engagement and education programs based on a socio-economic baseline
study of employees and families.

FUNDES: MSR engaged FUNDES (a
non-profit organization) to conduct an economic development program to support
the development of local businesses in San Rafael las Flores. FUNDES mission is
to strengthen the business capacity of local commercial enterprises to improve
their market reach and to achieve sustainable results. In 2016, FUNDES trained 6
local business associations. FUNDES conducted business assessments of each
association and provided training to increase production, generate local
employment opportunities and increase revenue.

| | Ex-landowners Association
| | --------------------------

MSR participates in a profit-sharing
program in the form of an NSR royalty of 0.5% to be shared by a local
association of former owners of the Escobal Mine lands (Association). The
Association receives payments approximately every quarter via a trust instrument
administered by an independent party. Of this 0.5%, 10% is allocated to
development projects identified by the Association. In 2016, MSR paid
approximately $0.5 million to the Association and $0.1 million of that was
designated for development. The Association bought a property worth $0.1 million
to develop future education or health projects.

|16 | Tahoe Resources Inc.
|-- | --------------------

---

| | Community Engagement
| | --------------------

Grievance Mechanism: MSR strengthened its existing grievance mechanism to further align with the Equator Principles, IFC Performance Standards
and Guiding Principles. The comprehensive mechanism utilizes NAVEX Globals case
management software which provides for a call center and web-based interface.
Stakeholders can communicate their concerns, questions and suggestions through
MSRs telephone hotline, grievance website or in person with either their
manager or an MSR community liaison at its community office. In 2016, MSR
received 127 cases from employees and local community members. MSR resolved 99
of those cases and 63 were closed within 45 days.

Site Visits: In 2016 MSR hosted
more than 860 site visits to the Escobal Mine made by COCODES (village
leadership councils), school teachers, university students, businesswomen and
local farmers, among others.

| | Guatemalan Royalty Agreement
| | ----------------------------

In 2016 the Companys Guatemalan
voluntary royalty program offered economic and social development to the
communities impacted by the project. Of the total 5% royalty paid by the
Company, 1% was mandatory and split equally between the federal government and
the SRLF local municipality. The Company paid the remaining 4% voluntarily, of
which 1.5% was paid to the federal government, 1.5% paid to SRLF, and the
remaining 1% distributed equally among the three regional municipalities
surrounding Escobal. Under the voluntary royalty agreements between the Company
and municipal and federal governments in Guatemala, finalized concentrate sales
below $16/oz silver do not trigger a payment obligation. Some concentrate sales
during 2016 were below the $16/oz threshold.

In 2016, the Company paid a total of
approximately $3.2 million in statutory royalties and approximately $8.8 million
in voluntary royalties. The distribution was as follows:

| |  | $2.4 million statutory royalty to the
      Guatemalan Federal government;                         
| | - | ---------------------------------------------------------------------------------------------------
| |  | $0.9 million statutory royalty to SRLF;                                                            
| |  | $3.8 million voluntary royalty to the
      Guatemalan Federal government;                         
| |  | $3.8 million voluntary royalty to SRLF; and                                                        
| |  | $1.2 million voluntary royalty to the three
      regional municipalities who signed the agreement.

Key La Arena social projects in 2016 (some of which are
ongoing) include:

| | Nutrition
| | ---------

Healthy Homes Program: La Arena
has successfully implemented a three-year program in 14 villages intended to
teach families how to improve health and nutrition by establishing healthy
environments and building healthy eating habits. The program highlights the
importance of proper health and sanitation techniques, including garbage
disposal, food storage, handwashing, and separation of living spaces such as the
kitchen, bedrooms, restrooms, and livestock spaces. The program is sponsored by
the Peruvian Ministry of Health.

School Nutrition Program: During
2016, La Arena continued to sponsor a school nutrition program aimed at
promoting the consumption of a balanced diet for optimal growth. The program
targets students for the purpose of improving both nutrition and educational
outcomes. To date, 1,021 students from 7 villages have participated in the
program. La Arena has donated kitchen utensils and food to the participating
schools for students lunches. Additionally, La Arena has built school gardens
to cultivate fresh vegetables and has conducted training workshops for parents
focused on proper management and storage of food as well as the importance of
balanced nutrition.

Education

Healthy Schools Program: La
Arena promoted good health and hygiene practices in the schools of 14 villages
near the mine. The program benefited more than 2,000 students.

Teacher Training: La Arena
sponsored training workshops to develop and strengthen the skillsets of 126
teachers.

Strengthening Reading Skills -
Improving School Libraries:During 2016, La Arena sponsored a reading
comprehension contest in which 13 schools participated. Winning students
received more than 200 books and educational audiovisual material for their
school library. The materials included Peruvian literature of fiction and
non-fiction, mathematics, reading, dictionaries and encyclopaedias.

| | Agriculture
| | -----------

Breeding of Guinea Pigs: During
2016, La Arena continued implementation of a four-year program to foster best
breeding practices and strengthen business management skills.

Livestock Husbandry: La Arena
sponsored and conducted a Campaign of vitamin dosage and application with more
than 12,000 doses administered to improve livestock health conditions and
prevent disease, including cattle, sheep and goats.

|Annual Information Form for the Year Ended December 31,
      2016 | 17
|------------------------------------------------------------------ | --

---

Trout Breeding: La Arena
conducted 13 workshops on small-scale trout farming. The training campaign also
included the improvement of water harvesting processes in order to optimize
water recycling in trout breeding ponds.

| | Infrastructure
| | --------------

Community infrastructure:La Arena donated 2 community buildings; one for La Arena benefiting 500
families, and one for La Union benefiting 90 families.

Improving School Premises:La Arena donated a Science Laboratory and a Sports Platform to the La Arena
School.

| | Capacity Building
| | -----------------

Local Employment Program:During 2016, La Arena continued skillset strengthening among employees.
Sixty local employees were trained on masonry, welding and tipper operation.
Additionally, 160 local residents were trained on heavy equipment operation.

| | Community Engagement
| | --------------------

Grievance Mechanism: To comply
with Tahoes commitment to international Sustainability standards and to
strengthen its stakeholder engagement efforts, La Arena is in the process of
implementing the NAVEX Global grievance mechanism system and Boréalis
stakeholder management software. La Arena will complete implementation of the
NAVEX system in 2017.

Community Information: At site,
La Arena has implemented an Information Office which, during the course of 2016,
has been visited by more than 1,200 people primarily seeking job opportunities.
At the Information Office people are able to receive information related to the
Companys Sustainability activities, productive and sustainable programs, mining
activities, and environmental practices.

Guided Site Visits: Six groups
comprising local students, teachers, business associations and government
officials visited La Arena operations during 2016.

Key Shahuindo social projects in 2016 (some of which are
ongoing) include:

| | Nutrition
| | ---------

Health Campaigns: During 2016,
in alliance with the Public Healthcare Authority, 11 healthcare campaigns were
conducted, and medical assistance was administered to 4,660 locals.

Improving Healthcare Posts
Infrastructure: 2 Healthcare Post premises were improved, benefiting more
than 2,400 families.

Improving Healthcare Posts
Equipment: 13 Healthcare Posts were equipped with proper medical equipment,
benefiting 5,000 families at Cajabamba.

Training and Strengthening Locals
Skills: Health promoters and Community residents were trained in first aid
assistance and hygiene, benefiting more than 2,400 families.

| | Education
| | ---------

Higher Education Program:
Shahuindo, in combination with the Peruvian education non-profit TECSUP,
launched a program in 2016 to promote academic improvement among local high
school students to help them qualify for the Peruvian Ministry of Education
national scholarship. The scholarship provides financial assistance to students
enrolled as undergraduates at a national university or technical college. As
part of this initiative, Shahuindo sponsored after school education programs at
three schools in local villages, where participants received school supplies,
study materials and instruction.

Teacher Salary Stipends:
Shahuindos investment in Sustainability initiatives for 2016 included providing
teacher salary stipends.

Educational Material: Shahuindo
donated educational materials to 24 schools.

Healthy Schools Program  Aprendo
Saludable: Shahuindo fostered good health and hygiene practices in 36
schools, benefiting more than 3,800 students.

Improving School Infrastructure:
Nine pre-manufactured classrooms were placed within the four villages of Moyan
Alto, Chuquibamba, Chingol and San Felipe, benefiting more than 550 students.
Three school-lunchrooms were implemented benefiting 135 students.

Improving School Furniture:
Shelves, tables and chairs were donated to the Educational Authority of
Araqueda, benefiting more than 1,100 students.

|18 | Tahoe Resources Inc.
|-- | --------------------

---

Broadening Access to Education:
Shahuindo paid the wages of ten teachers in eight villages whose schools lacked
the resources to support teacher salaries, thus benefiting 350 students.

Back to School Campaign: More
than 3,500 educational materials packages were donated to students at 35
schools.

| | Agriculture
| | -----------

Avocado Husbandry Training:
Shahuindo continues to provide agricultural best practices training to local
farmers in the vicinity of the Project. Farmers learned how to reduce the use of
pesticides and replace them with organic products.

Breeding of Guinea Pigs: During
2016, 45 guinea pig breeding-sheds were implemented in three villages, and
locals were trained in best breeding practices and strengthening of business
management skills.

Breeding of Hens: In two
villages, hen breeding-sheds were implemented benefiting 45 families (La Fila
and Maximas Flores).

Productive Projects: Technical
assistance in granadilla farming was provided in three villages (Siguis,
Maximas Flores and Quillispampa).

| | Infrastructure
| | --------------

Infrastructure Projects:
Shahuindos 2016 infrastructure projects included clearing the Chingol Channel,
benefiting 800 farming producers from eight villages; improvement of a water
system for human consumption, benefiting 250 families; and placement of a
pontoon at Liclipampa Village, benefiting 165 families.

| | Capacity Building
| | -----------------

Shahuindo shares the positive and
substantial impacts of its mine operations with the local communities in which
it operates, and maintains a commitment to train and hire local workforce.
Shahuindos workforce is comprised of 60% local staff. The Company supports
training programs to enhance skills of the local workforce and employs the local
workforce to increase economic and human development. During 2016, 79 local
employees and locals were trained on masonry, welding, heavy-duty equipment and
tipper operation.

Women Empowerment: 439 women
from 14 villages participated in workshops to develop productive capacities in
the areas of product marketing, guinea pig breeding, and bakery and pastries
businesses, as well as furthering leadership development, employment and home
economic skills.

Contracting Local Goods and
Services: Of Shahuindos 164 suppliers, 140 are local providers contracted
for the delivery of goods and services to the Project.

| | Community Engagement
| | --------------------

Grievance Mechanism: To comply
with Tahoes commitment to international Sustainability standards and to
strengthen its stakeholder engagement efforts, Shahuindo adopted the NAVEX
Global grievance mechanism system and Boréalis stakeholder management software.
Shahuindo will complete implementation of the NAVEX system in Q2 2017.

Community Information and Site
Visits: Shahuindo implemented two Information Offices at the site and at
Cajabamba where people are able to receive information related to job
opportunities, Sustainability activities, productive and sustainable programs,
mining activities, and environmental practices. Additionally, people can submit
grievances.

Key Lake Shore social projects in 2016 (some of which are
ongoing) include:

| | Education
| | ---------

Music Education: In February
2016, Lake Shore partnered with the non-profit music organization, Through
Education Music Provides Opportunity (TEMPO), to support music education for
high school and vocational students. The 5-month course provides students an
opportunity to improve their music skills and explore careers in the music
industry. Students are taught by music professionals in areas such as
song-writing, music theory, marketing, finance, copyright law and
entrepreneurship. Lake Shore will continue to sponsor the program throughout
2017.

| | Training Local Workforce
| | ------------------------

Lake Shore partnered with Timmins
Northern College and the Native Womens Association to sponsor the national
Mining Essentials for Women program, a 12-week entry-level mining course for
aboriginal women. Aboriginal women from Lake Shores First Nations communities
participated in the program, which taught skills necessary for work in mining
processing, underground mining and surface mining. The women also attended
communication and computer skills classes, as well as mine tours and safety
trainings.

|Annual Information Form for the Year Ended December 31,
      2016 | 19
|------------------------------------------------------------------ | --

---

| | Community Engagement
| | --------------------

First Nations Impact and Benefits
Agreement (IBA): Lake Shore signed an IBA on October 27, 2016 with the
Wabun Tribal Council First Nations. The IBA establishes a framework for
continued consultation on Tahoes existing and future operations in the Timmins
area, and provides the Companys First Nations partners with long-term benefits,
new business opportunities, employment, environmental sustainability, training
and education.

Exploration Agreement: Lake
Shore is currently finalizing an agreement with Wahgoshig First Nation in order
to ensure communication/consultation with local communities on the development
of its Fenn-Gib properties.

| | Agriculture
| | -----------

Spawn Transfer: Lake Shore
provided ongoing financial support to the Spawn Transfer project, which reported
in 2016 that it successfully restored the native lake sturgeon population in the
region. This project was the first successful attempt to restore a sturgeon
population by transplanting adult sturgeon from one area to another and then
allowing them to spawn naturally.

Friends of the Porcupine River:
Lake Shore, along with other local mining partners, were involved in developing
long-term strategies for restoring the Porcupine River Watershed through the
creation of multiple spawning beds and cultural trail systems, as well as
identifying local historical areas.

|DOING BUSINESS
      IN GUATEMALA, PERU AND CANADA
|--------------------------------------------------

MINING IN GUATEMALA

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

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

MEM may suspend mining rights for, among other things, safety
and environmental concerns or failure to pay royalties or to submit reports when
due; may cancel mining for, among other things, failure to commence field work
or operations in the prescribed time; and may extinguish mining rights upon
expiration of the license term, depletion of the deposit or express renouncement
of the holder. Fees payable by licensees include surface rights fees, a granting
fee for a mining right and an area fee for the licenses.

Under the 1997 Guatemalan mining law, a mandatory royalty of 1%
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 administration and the Mining Industry
Association agreed to general terms in a royalty agreement that resulted in the
industry voluntarily paying higher royalties to the federal and local
governments. On April 16, 2013, the Company executed an initial voluntary
royalty agreement and has subsequently entered into amended voluntary royalty
agreements (Escobal Voluntary Royalty Agreements) with six municipalities in
the area in which Escobal is located. The most recent Voluntary Royalty
Agreements were entered into with three municipalities in January 2017 and, as
with past agreements, include provisions requiring the transparency of the
payments made pursuant to the agreements.

Together with the 1997 Guatemalan mining law, the Escobal
Voluntary Royalty Agreements committed the Company to pay a 5% NSR royalty on
the concentrates sold from Escobal Mine production. Under the Escobal Royalty
Agreements, 2% benefits SRLF communities, 2% benefits the federal government and
an additional voluntary 1% benefits certain outlying municipalities. See
Description of Our Business - Environmental and Social Activities -
Sustainability - 2016 Sustainability Projects - Key MSR Social Projects in
2016 - Guatemalan Royalty Agreementfor a detailed breakdown of the
royalty payments.

MINING IN PERU

Peru has rich deposits of copper, gold, silver, lead/zinc and
natural gas and petroleum. It is a leader in the mining industry and one of the
worlds largest producers of base and precious metals. Peru is one of the three
largest producers of copper and zinc in the world. It is also a major producer
of gold, silver and other minerals. Perus mining sector is thriving due to an
abundance of rich natural resources, a strong mining culture and an attractive
legal and tax regime.

In Peru, the General Mining Law allows mining companies to
obtain clear and secure title to mining concessions. The surface land property
is distinct from the natural resource. The government retains ownership of all
subsurface land and mineral resources, but the titleholder of the concessions
retains ownership of extracted mineral resources. Peruvian law requires that all
operators of mining areas have an agreement with the owners of the land surface
above the mining rights or to establish an easement upon such surface for mining
purposes. The same mining concession is valid for exploration and for
exploitation.

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Mining rights in Peru can be transferred by their private
holders with no restrictions or requirements other than to register the
transaction with the Public Mining Register. The sale of mineral products is
also unrestricted, so there is no obligation to satisfy the internal market
before exporting products.

Recently, Peru has enacted a new regime of environmental laws
whereby MEM and the Environmental Ministry have issued regulations mandating
environmental standard for the mining industry. Under these standards, new
mining development and production requires mining companies to file and obtain
approval for an Environmental Impact Study (EIS), which incorporates
technical, environmental and social matters, before being authorized to commence
operations.

The Environmental Evaluation and oversight Agency (OEFA)
monitors environmental compliance. OEFA has the authority to carry out audits
and levy fines on companies if they fail to comply with prescribed environmental
standards. The following permits are generally needed for a project: Certificate
for the Inexistence of Archaeological Remains (CIRA); Environmental Impact
Assessment (EIA); Mine Closure Plan; Establishment of a financial guarantee for
closure; Beneficiation Concession; Mining Transportation Concession; Permanent
Power Concession; Water Usage Permits; Easements and Rights-of-way; District and
Provincial Municipality Licenses and Construction and Operation Permits.

MINING IN CANADA

Mining is one of Canadas primary industries and involves the
extraction, refining and processing of important mineral products such as gold,
silver, platinum, iron, copper, lead, zinc and nickel. Canadas mining industry
represents approximately three percent of the countrys gross domestic product.
Minings importance to the overall economy and employment remains significant,
particularly in the northern part of provinces such as Ontario, British
Columbia, Saskatchewan and Quebec and territories such as the Yukon and
Northwest Territories. Canada remains one of the worlds leading mining
countries and has become the centre of global mining finance and expertise. The
TSX and TSX Venture stock exchanges have become world centres for investment in
mining and mining exploration companies.

In Canada, environmental laws are divided between federal and
provincial governments. The Canadian constitution gives the federal government
power to pass law relating to fisheries, shipping, interprovincial trade and
commerce and criminal law, as well as law for the peace, order and good
government of Canada. Federal legislation enacted related to the environment
includes theCanadian Environmental Protection Act, theCanadian
Environmental Assessment Actand the Fisheries Act and the Arctic
Waters Pollution Prevention Act. The powers of the provincial governments
cover all matters of local nature and property and civil rights within the
provinces. The provinces also have primary jurisdiction over agriculture,
forestry, mining and hydroelectric development.

In Ontario, the MNDM oversees the mineral sector and is
responsible for permitting mining operations in that province under the Mining
Act. MNDM administers and maintains land tenure, mining claims and geoscience
information. There are various forms of mineral tenure in Ontario, consisting
principally of unpatented mineral claims, mining leases and freehold lands
(including patented mineral claims).

Unpatented mineral claims and mining leases available in
respect of public lands held by the Crown that are open for exploration are
governed by the Mining Act (Ontario) and administered by MNDM. Unpatented
mineral claims do not grant the holder any real property interest in the lands
comprising such claims. The holder of claims may conduct certain limited
exploration work with respect to such claims after staking and registration.
Thereafter, if the holder wishes to carry out more extensive exploration work
and/or move to production, the holder has the right to obtain a mining lease
with respect to such claims. The holder is required to complete and file annual
assessment work as prescribed under the Mining Act. Failure to complete
the requisite assessment work will result in the forfeiture of the unpatented
claims back to the Crown (subject to certain relief provisions included in the
Mining Act). No minerals may be extracted from lands that are the subject
of an unpatented mining claim; the holder must have a mining lease or a freehold
interest to mine the land. Subject to due registration and the payment of
applicable fees, an unpatented mining claim can be transferred, charged or
mortgaged by the holder without obtaining any consents.

A mining lease entered into by a mineral claims holder with the
Crown creates a leasehold real property interest in favour of the lessee. Mining
leases grant an exclusive right to the lessee to enter upon, search for, and
extract minerals from the land, subject to the lessee obtaining other required
permits and compliance with applicable regulations, including those prescribed
by the Ontario Ministry of Natural Resources (MNR) and the Ontario Ministry of
the Environment. Typically, mining leases are for a term of 21 years, include
renewal provisions, are subject to annual lease payments and may cover mining
and surface rights or solely mining rights. A mining lease cannot be transferred
or mortgaged by the lessee without the prior consent of the MNDM. To obtain
consent of the MNDM, the lessee must submit appropriate documentation and pay
fees.

The owner of freehold lands holds a fee simple real property
interest. Historically, the holder of a mining claim interested in removing
minerals from the ground could, instead of obtaining a mining lease, apply to
the MNR to acquire the freehold interest in the subject lands by way of the
issuance of a mining patent. Mining patents may include surface and mining
rights or solely mining rights and vest in the patentee all of the Crowns title
to the subject lands and to all mines and minerals relating to such lands,
subject to any reservations set out in the patent (as may be varied by the
Public Lands Act (Ontario)). New issuances of mining patents have been
replaced by issuances of mining leases. Freehold lands and patented claims are
subject to annual provincial mining taxes and, where surface rights are held,
provincial mineral land taxes. As the holder of a mining patent enjoys the
freehold interest in the lands, no consent from the MNDM is required for the
patentee to transfer or mortgage those lands.

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FOREIGN INVESTMENT

Applicable Guatemalan, Peruvian and Canadian 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, Peru and Canada and repatriation of capital out of
Guatemala, Peru and Canada.

TAXATION

Income Tax

Income tax must be paid on income generated in Guatemala and
may be paid either under the Regime on Profits or the optional regime. After tax
legislation was passed in early 2012, the Regime on Profits was changed from a
rate of 31% of net income (total income less exempt income less deductible costs
and expenses) paid quarterly and liquidated on an annual basis. The new regime
went into effect January 1, 2013. The rate was 28% in 2014 and was 25% in 2015
and thereafter. The optional regime rate was 6% of taxable income (total income
less exempt income) paid monthly which increased to 7% in 2014 and thereafter.
Corporations must adopt one of the two regimes and commit to a regime each
December. After assessing the individual impact of each regime on earnings
attributable to common shareholders, we adopted the optional regime for 2014,
2015 and 2016. Failure to make income tax payments results in a penalty of 100%
of the unpaid tax, plus interest.

Companies incorporated in Peru are subject to income tax on
their worldwide taxable income, while foreign companies that are located in Peru
and non-resident entities are taxed on income from Peruvian sources only. The
corporate income tax was reduced from 30% in 2014, and to 28% in 2015 and 2016.
In general terms, mining companies in Peru are subject to the general corporate
income tax regime. If the taxpayer has elected to sign a Stability Agreement, an
additional 2% premium is applied on the regular corporate income tax rate. We
have not signed a Stability Agreement. Also, 50% of income tax paid by a mine to
the Central Government is remitted as Canon, by the Central Government back to
the regional and local authorities of the area where the mine is located. In
December 2016, Peru enacted tax reform that is effective January 1, 2017. The
tax reform increases the corporate income tax rate from 28% to 29.5% . The new
rate will apply to tax year 2017 and thereafter.

Corporations resident in Canada (whether owned by Canadians or
non-residents) are taxed on their worldwide income from all sources, including
income from business or property and net taxable capital gains. Corporations are
taxed by the federal government and by one or more provinces or territories. The
basic rate of federal corporate tax for 2016 is 38%, but it is reduced to 15% by
an abatement of ten percentage points on a corporations taxable income earned
in a province or territory and a general rate reduction of 13 percentage points
on a corporations full-rate taxable income. Provincial and territorial tax
rates are added to the federal tax and generally vary between 10% and 16% of
taxable income. A penalty is levied on returns that are filed late, equal to 5%
of the unpaid tax at the required filing date, plus an additional 1% per month
(not exceeding 12 months) of such unpaid tax for each month that the return
remains unfiled. Federal and provincial corporate tax installments must be made
monthly during the corporations tax year. The remaining balance of taxes owed
must be paid by the end of the second month following the tax year-end.

Dividends

In Guatemala, starting January 1, 2013, dividend payments have
a tax rate of 5%. All dividend payments are subject to tax, notwithstanding the
shareholders nationality. A 3% stamp tax is payable on dividends, civil and
mercantile contracts and cash payments unless the Companys operations are
subject to the payment of a Value Added Tax of 12% (which is applicable to sales
of goods and services, as well as imports and land). If dividends are paid
through the delivery of a coupon, the payment may be exempt of stamp tax. The
holder of an export license may import, free from tariff and import duties,
machinery, equipment, parts, accessories, materials and explosives that will be
used in the production of the items to be exported (Decree 2989).

In Peru, the dividend tax rate of 6.8% is imposed on
distributions of profits to non-residents and domiciled individuals by resident
companies and by branches, permanent establishments and agencies of foreign
companies. The expectation is that the rate will increase to 8% in 2017 and
reach 9.3% by 2019. The tax reform effective on January 1, 2017 also reduces the
dividends withholding tax rate from 6.8% to 5%. The tax reform repealed the
progressive increase in the withholding tax rate for 2017, 2018 and 2019.

In general, dividends received by one Canadian corporation from
another are fully deductible. A dividend received from a non-resident
corporation that is a foreign affiliate of a Canadian taxpayer may be exempt
from tax. Typically, taxpayers resident in Canada may deduct from their Canadian
tax liability a credit for income or profits tax and for withholding tax paid to
another country. The foreign tax credit is calculated separately for foreign
business tax and foreign non-business tax on a country-by-country basis. If a
Canadian corporation receives dividends from a foreign affiliate, the normal
foreign tax credits are replaced by either a complete or partial deduction for
such dividends.

Other Taxes

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

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The Special Mining Tax (SMT) in Peru is a tax imposed in
parallel with the Modified Mining Royalty described below. The SMT is applied on
operating mining income based on a sliding scale, with progressive marginal
rates ranging from 2% to 8.4% . The tax liability arises and becomes payable on
a quarterly basis. The SMT applies on the operating profit derived from sales of
metallic mineral resources, regardless of whether the mineral producer owns or
leases the mining concession.

In Canada, Ontario mining tax is imposed on profits from the
extraction of mineral substances raised and sold by operators of Ontario mines.
The tax rate on taxable profit subject to mining tax for the Companys Canadian
mine is 10%. The tax is applied to an operator's annual profit in excess of a
$500,000 annual deduction, which needs to be shared by associated corporations.

Royalties

Up to December 31, 2014, the Company paid a 5% NSR royalty (1%
statutory, 4% voluntary) on the concentrates sold from the Escobal Mine
production. The Guatemalan government attempted to increase the royalty to a 10%
NSR, effective January 1, 2015. However, on November 5, 2015, the Guatemalan
Constitutional Court formally ruled that the 10% royalty was unconstitutional.
The Company continued to pay a 5% NSR royalty (1% statutory, 4% voluntary)
throughout 2015 and 2016.

In 2004, Peru implemented a mining royalty that required
holders of mining concessions to pay between 1% and 3% of the commercial value
of sales, based on a three step sliding scale, to the Peruvian government, for
the exploitation of metallic and non-metallic mineral resources. This regime was
replaced by the Modified Mining Royalty (MMR). The MMR applies on all
companies operating income. The MMR is payable on a quarterly basis with
marginal rates ranging from 1% to 12%. An operating income to mining
operating revenue measure is calculated each quarter and, depending on
operating margin, the royalty rate increases as the operating margin increases.
The new system is designed to provide both a minimum royalty and an additional
amount based on the profitability of each project. The Company must always pay
at least the minimum royalty rate of 1% of sales, regardless of its
profitability. This royalty is treated as an income tax under IFRS.

LA CUCHILLA

On November 22, 2016, the Company announced that a previously
reported protest involving approximately 25 people outside the Escobal Mine in
Guatemala had reached a voluntary end. The protest related to the Companys La
Cuchilla home purchase program (the Program), which was introduced as a
humanitarian act to support the La Cuchilla community as well as the local
government. The end of the protest followed from discussions among community
stakeholders, the municipality of SRLF, MSR representatives, and the protesters,
with the resulting resolution involving no material changes to the terms of the
Program. The Company continues to offer assistance to the La Cuchilla community
through the Program.

POWER GENERATION AT ESCOBAL

The Company installed contractor supplied diesel-fired
generator power which is sufficient to operate the project in excess of the 4500
tpd design rate. The Company continues to assess alternative power strategies to
reduce power costs.

RISK FACTORS RELATING TO OUR BUSINESS

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

Operations in Guatemala, Peru and Canada

The Companys operations in each of its jurisdictions are
subject to political, economic, social and geographic risks. Mineral exploration
and mining activities may be affected in varying degrees by government
regulations relating to the mining industry, judicial activity or political
change or instability. Operations may also be affected in varying degrees by
government regulations and laws with respect to restrictions on production,
permitting, real property, price controls, export controls, taxes, royalties,
expropriation of property, environmental legislation and mine safety. Additional
adverse effects could result from local protests impeding access to the
Companys properties through roadblocks or other public protests or attacks
against our assets or personnel.

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 leading to major
social upheaval in Guatemala occurred in 1983 and constitutional government was
not restored until 1985. In the past two decades, Guatemala has made progress in
restructuring its political institutions and establishing democratic processes,
however the country still suffers from social problems, including, but not
limited to, a high crime rate, political corruption, malnutrition, poverty and
uncertain land tenure. These issues could adversely affect the Companys
operations at the Escobal Mine. In addition, local opposition to development
projects often occurs. Opposition in the form of roadblocks, public protests or
other means, by members of local communities, anti-mining NGOs, unemployed
people and unions can occur on local, national and provincial routes. Renewed
political unrest, changing government attitudes towards mining, or a political
crisis could adversely affect the Companys business and results of operations.
The status of Guatemala as a developing country may make it more difficult
for the Company to retain licenses and obtain required financing for projects.

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After a decade of political instability and one of its worst
economic crises in history, Peru has experienced relative political stability
and economic growth since the mid-1990s as a result of the restructuring of
Peruvian institutions to create a free-market economy. Political tension,
poverty, unemployment, corruption and social conflict still occur and may result
in an adverse effect on the Companys business and operations. In addition,
illegal mining is endemic in Peru, including in regions where the Company
operates. Historically, unregulated mining operations have adversely impacted
the environment, health and safety, human rights, security and the
socio-economic fabric of the nearby communities. The Company is working to
eliminate illegal mining and legitimize artisanal and informal mining on its
concessions by utilizing government-sanctioned mitigation programs. However,
illegal mining still occurs and may result in an adverse effect on the Companys
business and operations.

Matters Related to Aboriginal Rights in Canada

The Companys Canadian mines, mineral properties and related
mineral interests are located on and beneath lands that are or may be subject to
claims of constitutionally protected aboriginal rights, aboriginal title and
treaty rights. Canadian courts have set out certain tests that governments must
adhere to in any permitting decisions that may affect asserted or established
aboriginal rights and aboriginal title as well as treaty rights. This includes
requirements for aboriginal consultation and, if appropriate, accommodation in
respect of claimed but unproven aboriginal rights and title. It also includes
requirements that must be met in order to justify any infringement of treaty
rights, established aboriginal rights or aboriginal title (if proven and
aboriginal consent has not been obtained). The Company does not have any mines
or mineral properties in Canada in areas where aboriginal title has been proven
to date.

The duties of consultation, accommodation and, where
applicable, justification for infringement of aboriginal rights, aboriginal
title and treaty rights apply to the federal and provincial governments, not to
private companies. Canadian courts however, have held that governments can
delegate certain procedural aspects of the duty to consult to private parties.
Further, these governmental duties could affect the Company's interests in
various indirect ways, including potential legal challenges to governmental
permits that have been issued, challenges or delays in securing permits and
approvals in future, the imposition of terms and conditions to address
aboriginal interests and claims to lands or mineral interests. In order to
mitigate these risks, and in order to build constructive relations in the
communities within which it operates, the Company is committed to working
constructively with regulators and aboriginal communities to assist governments
in fulfilling their duties to aboriginal peoples in respect of the Companys
Canadian mines and mineral properties. The Company is also committed to direct,
bilateral engagements with aboriginal groups to explore opportunities for
positive relations and mutual benefit. To this end, the Company is party to IBAs
with local First Nations in respect of the Timmins operations that provide for
education and training of First Nations members, employment opportunities,
environmental care, and collaborative business opportunities. The Company has
entered into an IBA with five First Nations in respect of the Bell Creek Mine,
effective September, 2016, and an IBA with two First Nations in respect of the
Timmins West Mine, effective February, 2011.

Risks Related to the Lake Shore Arrangement

The anticipated benefits from the Lake Shore Arrangement will
depend in part on whether Tahoe and Lake Shores operations can be integrated in
an efficient and effective manner. The integration of the two companies will
present challenges to management, including the integration of systems and
personnel of the two companies, implementing uniform standards, controls,
procedures and policies, as applicable, including the integration of Lake
Shores disclosure controls and procedures and internal control over financial
reporting with our existing procedures and controls, and special risks,
including possible unanticipated liabilities, unanticipated costs, and the loss
of key employees.

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 our commercial operations or for the development, construction and
commencement of other potential projects such as the Sulfide Project, Fenn-Gib
and Whitney. 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. The duration
and success of our efforts to obtain and renew licenses or permits are
contingent upon many variables not within our control, including local politics,
legal challenges and the interpretation of applicable requirements implemented
by the licensing authority. Any unexpected refusals of required licenses or
permits or delays or costs associated with the licensing or permitting process
could prevent or delay the development or impede the operation of a mine, which
could adversely impact our operations and profitability.

Operating Cash Flow

Failure to achieve anticipated production levels would have a
material adverse impact on the Companys cash flow and future profitability. Any
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 gold, and to a lesser degree, lead and zinc. Therefore, fluctuations in the
prices of these commodities represent one of the most significant factors that
we expect will affect our future operations and potential profitability. The
price of silver, gold 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.

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Indebtedness

As of March 9, 2017, the Company has not drawn on its US$150
million revolving credit facility which currently has a term of August 2018. The
Company has an aggregate consolidated indebtedness of approximately $50 million
including a credit facility, capital lease and other obligations. 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 becomes due. If
the Company is unable to generate such cash flow to timely repay the debt, it
may be required to adopt one or more alternatives, such as selling assets,
restructuring debt or obtaining additional equity capital on terms that may be
onerous or highly dilutive. The Companys ability to refinance its indebtedness
will depend on the capital markets and its financial condition at such time. The
Company may not be able to engage in any of these activities or engage in these
activities on desirable terms, which could result in a default on its debt
obligations.

The terms of the Companys credit requires 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
activity at any of our operations or projects 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 and gold industry in particular), our status as an
enterprise with a limited production history at some operations, the location of
the Escobal Mine in Guatemala and the La Arena and Shahuindo Mines in Peru, 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, gold and other metals on
the commodities markets decreases, then revenues from our operations 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 our operations 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 for the operations. Changes to Guatemalan, Peruvian or Canadian laws,
including new mining legislation or adverse court rulings, could materially and
adversely impact our rights to exploration and exploitation licenses necessary
for our operations. See Description of Our Business  Doing Business in
Guatemala, Peru and Canada Risk Factors Relating to Our Business  Operations
in Guatemala, Peru and Canada.

There is no guarantee that title to the Escobal, La Arena,
Shahuindo, Bell Creek or Timmins West Mines 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 jurisdictions in which we operate, 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 which may cast doubt on the ownership of surface rights and the
validity of agreements related to surface rights.

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Governmental Laws and Regulations

Our operations, exploration and development activities are
subject to the laws and regulations of Guatemala, Peru and Canada 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. 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.

Illegal Miners

Illegal mining activities have occurred at many mining sites
throughout Peru, including in and around Shahuindo. In August of 2015, the
Peruvian government removed illegal miners from La Chilca, an area owned by
Shahuindo. The removal occurred without incident and we are conducting baseline
studies of the area to assess environmental impacts from the illegal mining
activity. Illegal miners are currently active in the Algamarca area near
Shahuindo. Such illegal mining activities may have an adverse effect on the
Companys operations or exploration activities. See Description of Our Business
 Doing Business in Guatemala, Peru and Canada  Risk Factors Relating to Our
Business  Illegal Miners for a more detailed description of the effects of
illegal mining.

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. The Company uses a wholly owned captive insurance program to
insure risks of certain subsidiaries and related companies.

Mine Concentrate Transportation and Marketing
Risk

Gold doré produced at La Arena, Shahuindo, Bell Creek and
Timmins West Mines, and concentrates containing combinations of silver, gold,
lead and zinc produced at the Escobal Mine, are loaded onto highway road
vehicles for transport to sea ports for export to foreign smelters and/or
refiners 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 or refinery 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 Mines products will be
entered into and/or renewed on acceptable terms.

Environmental Hazards

All phases of our operations are, and will continue to be,
subject to environmental regulation in Guatemala, Peru and Canada. Environmental
legislation in these jurisdictions involves strict standards and may entail
increased scrutiny, fines and penalties for non-compliance, stringent environmental
assessments of proposed projects and a high degree of responsibility for
companies and their officers, directors and employees. Changes in environmental
regulation, if any, may adversely impact our operations and future potential
profitability. In addition, environmental hazards which are currently unknown
may exist at our operations. 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.

|26 | Tahoe Resources Inc.
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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 at our
operations. 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.

Mineral Resource and Reserve Calculations are Only
Estimates

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

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

Infrastructure

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

Employee Recruitment and Retention

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

Adverse General Economic Conditions

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

|Annual Information Form for the Year Ended December 31,
      2016 | 27
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Competition for New Properties

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

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

Shortages of Critical Parts, Equipment and Skilled
Labour

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

Foreign Exchange Rate Fluctuations

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

Developments Regarding Indigenous Peoples

To the best of our knowledge, although indigenous people may
have inhabited the area of our Mines in Guatemala and Peru at one time, there
are no indigenous populations currently living in the immediate area of the
Escobal, La Arena or Shahuindo Mine sites. In 2016, MSR engaged with indigenous
communities in Guatemala that expressed an interest in the Escobal Mine and
during the year, more than 130 indigenous community members visited the Escobal
Mine. In addition, indigenous peoples have participated in our Guatemalan
avocado and coffee rust prevention programs and received donations of
agricultural supplies and musical instruments through its social investment
program. The Company also attended workshops with the Guatemalan government and
other private sector organizations to promote the elimination of all forms of
racial discrimination against indigenous groups.

In Canada, we are committed to direct, bilateral engagements
with aboriginal groups to explore opportunities for positive relations and
mutual benefit. To this end, the Company is party to IBAs with local First
Nations in respect of the Timmins operations that provide for education and
training of First Nations members, employment opportunities, environmental care,
and collaborative business opportunities. The Company entered into an IBA with
five First Nations in respect of the Bell Creek Mine, effective September, 2016
and an IBA with two First Nations in respect of the Timmins West Mine, effective
February, 2011. The Company will continue to engage and consult with aboriginal
groups in accordance with the laws of Canada.

Community Action

In recent years, certain communities of both indigenous people
and others in Guatemala, Peru and Canada, and certain non-governmental
organizations (NGOs) have been vocal and sometimes negative with respect to
mining activities in the jurisdictions in which we operate. These communities
and NGOs have taken such actions as road closures, work stoppages and initiating
lawsuits 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 and on the Companys financial position, cash flow and
results of operations.

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.

|28 | Tahoe Resources Inc.
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RISK FACTORS RELATING TO OUR SHARES

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, gold 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.

Dividends

The Companys policy and payment of cash dividends and
reinvestment of cash into shares 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

The Company achieved commercial production at the Escobal Mine
on January 14, 2014 and in 2014 processed a total of 1.25 million tonnes of ore
with average feed grades of 585 g/t Ag, 0.42 g/t Au, 0.93% Pb, and 1.43% Zn;
recovering 20.3 million ounces (moz) of silver, 10,893 ounces of gold, 10,359
tonnes of lead, and 13,394 tonnes of zinc in concentrate. Metal recoveries into
each of the lead and zinc concentrates met or exceeded expectations. In 2015,
the Escobal Mine concluded its second year of commercial operations with record
production of 20.4 moz of silver contained in concentrates, within Company
guidance of 18 to 21 moz of silver. In 2015, the Escobal Mine processed a total
of 1.51 million tonnes of ore with average feed grades of 487 g/t Ag, 0.39 g/t
Au, 0.50% Pb, and 0.86% Zn. In addition to recovering 20.4 moz of silver, the
Escobal Mine also recovered 11,749 ounces of gold, 10,193 tonnes of lead, and
14,589 tonnes of zinc in concentrate.

In 2016, the Escobal Mine concluded its third year of
commercial operations with record production of 21.2 moz of silver contained in
concentrates, which surpassed Company guidance of 18 to 21 moz of silver. In
2016, the Escobal Mine processed a total of 1.59 million tonnes of ore with
average feed grades of 477 g/t Ag, 0.35 g/t Au, 0.72% Pb, and 1.19% Zn. In
addition to recovering 21.3 million ounces of silver, the Escobal Mine also
recovered 10,725 ounces of gold, 9,969 tonnes of lead, and 14,975 tonnes of zinc
in concentrate. Mill throughput in 2016 averaged 4,356 tonnes per day (tpd).

At January 1, 2017, Measured and Indicated Mineral Resources
for the Escobal deposit include 367.9 million ounces of silver at an average
grade of 323 g/t. Proven and Probable Mineral Reserves include 267.5 million
ounces of silver at an average grade of 351 g/t. Mineral Resources were updated by
subtracting mine depletion volumes from the Mineral Resources and Mineral
Reserves reported in the Escobal Feasibility Study. Mineral Reserves were
updated by applying a mine plan revised at the end of 2016 to the Mineral
Resources.

|Annual Information Form for the Year Ended December 31,
      2016 | 29
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Significant capital projects in 2016 include:

| |  | Completion and commissioning of the new paste backfill
      plant. The plant is operating at design capacity and continues to perform
      to managements expectations.                                                                                                                                                                                      
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                 
| |  | Completion and installation of underground pump stations.
      Infrastructure to support a series of underground dewatering wells on the
      1190 level was completed. Well drilling and construction began in Q4 2016
      in advance of primary ramp development below the 1190 level, which is
      currently the deepest production level in them mine.

On-site analytical laboratory optimization

Upgrades to the assay laboratory building, sample preparation
and analytical equipment, metallurgical laboratory and ventilation circuit were
completed in 2016.

PROJECT SETTING, LOCATION, ACCESS AND INFRASTRUCTURE

The Escobal Mine is located in southeast Guatemala,
approximately 40 km east-southeast of Guatemala City and 2 km east of the town
of SRLF in the Department of Santa Rosa. SRLF has a population of approximately
3,500 people and is 70 km from Guatemala City by paved road. Access to the area
is also possible from the northeast on a paved highway via the town of
Mataquescuintla. The majority of the workforce is derived from communities
within Santa Rosa department and elsewhere in Guatemala, with a small expatriate
contingency.

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

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

There is a high voltage electrical line that extends to the
town of SRLF, which has potential to be upgraded to handle the anticipated load
requirements for the Escobal Mine. The Companys long-term expectation is that
electrical power may be provided to the project from Guatemalas existing
national grid by means of connecting to the existing SRLF substation at a
voltage level of 69 Kvs, and constructing a new 7 km 69kv line to site. The
Company continues to evaluate alternative sources of power for the Escobal Mine
including recommencement of the power line work.

Communication facilities at the mine site include telephone and
internet services. Water wells within the Escobal Mine area provide sufficient
water for mining and processing activities without impacting local residents or
communities. Potable water is brought to the mine from outside sources as
needed. The Company owns sufficient land to accommodate the tailing facility,
waste rock storage, process plant facilities, underground access and ancillary
surface facilities for the operation.

HISTORY

The Escobal property dates back to 1996 when Entre Mares, the
Guatemalan subsidiary of Goldcorp, 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 its 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. Entre Mares commenced exploration drilling on the Escobal property in May
2007.

In May 2010, Tahoe executed an agreement to acquire the Escobal
Project from Goldcorps indirectly wholly owned subsidiaries, Goldcorp Holdings
Barbados Ltd. And Guatemala Holdings Ltd, which respectively held 9.1% and 91.9%
of Entre Mares. On June 8, 2010 upon successful completion of Tahoes initial
public offering, Tahoe acquired 100% of the Escobal Project and associated
exploration concessions from Entre Mares.

2014 ESCOBAL FEASIBILITY STUDY

The Escobal Feasibility Study was issued on November 5, 2014
and is available for viewing on SEDAR under our profile and on our website at
www.tahoeresources.com. The Escobal Feasibility Study contained an
updated Mineral Resource estimate, the Companys initial Mineral Reserve
statement and an economic analysis demonstrating the viability of the Escobal
Mine at the proposed 4500 tpd production rate. The effective date of the Escobal
Feasibility Study is November 5, 2014; the effective date of the Mineral
Resource estimate is January 23, 2014; and the effective date of the Mineral
Reserve estimate is July 1, 2014. Mineral Resources and Mineral Reserves have
been updated as of January 1, 2017.

|30 | Tahoe Resources Inc.
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MINERAL TENURE, SURFACE RIGHTS AND ROYALTIES

Mineral Tenure

The Escobal Mine is 100% owned by the Company through its
wholly-owned subsidiary MSR, and currently comprises two mineral licenses
covering approximately 79.9 km2 on the Escobal vein and surrounding area. These
include the Escobal Exploitation License covering 20 km2 and the Juan Bosco
exploration license covering 59.9 km2. In addition, there are a number of
applications for reconnaissance and exploration licenses contiguous with the
Escobal Mine. The granting of these license applications is still pending.

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

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

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

In an attempt to encourage revision of the mining law,
Guatemala President Otto Perez Molina asked Congress in July 2013 to approve a
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. Exploration since that date has focused only on the 79.9
km2 granted concessions surrounding the Escobal Mine.



|Annual Information Form for the Year Ended December 31,
      2016 | 31
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The following table shows concession type, size and
application/grant/expiry dates for all MSR concessions:

Concession Name andLicense No.
    Type
    Area**(km 2****)**
    ApplicationDate
    ApprovalDateSOLEDAD SR-03-06
    Recon.
    802.5
    12/6/2006
    pendingEL OLIVO SEXR-029-07
    Exploration
    36.0
    5/18/2007
    pendingJUAN BOSCO SEXR-089-08
    Exploration
    59.9
    11/12/2008
    5/9/2012PUENTE QUEBRADO SEXR-049-09
    Exploration
    3.0
    10/9/2009
    pendingMELISSA SEXR-050-09
    Exploration
    3.0
    10/9/2009
    pendingVALENCIA SEXR-050-10
    Exploration
    7.0
    8/23/2010
    pendingGRANADA SEXR-054-10
    Exploration
    5.0
    10/6/2010
    pendingCRISTINA SEXR-055-10
    Exploration
    52.5
    10/6/2010
    pendingEL SILENCIO SR-06-10
    Recon.
    1,098.1
    11/4/2010
    pendingCIPRESES SEXR-048-09
    Exploration
    3.0
    10/09/2009
    pendingPAJAL SEXR-058-11
    Exploration
    66.0
    5/4/2011
    pendingESCOBAL LEXT-015-11
    Exploitation
    20.0
    7/8/2011
    04/03/2013EL DURAZNO SEXR-104-11
    Exploration
    48.8
    7/29/2011
    pendingPAJARITA SEXR-104-11
    Exploration
    57.0
    7/29/2011
    pendingTERESA SEXR-109-11
    Exploration
    68.5
    8/17/2011
    pendingOASIS I SEXR-117-11
    Exploration
    12.8
    8/31/2011
    pendingOASIS II SEXR-118-11
    Exploration
    7.0
    8/31/2011
    pendingOASIS III SEXR-119-11
    Exploration
    0.2
    8/31/2011
    pendingLUCERO I SEXR-031-14
    Exploration
    30.88
    8/8/2014
    pendingLUCERITO SEXR-032-14
    Exploration
    15.03
    8/8/2014
    pendingANDRES I SEXR-050-14
    Exploration
    32.00
    12/5/2014
    pendingANDRES II SEXR-049-14
    Exploration
    12.00
    12/5/2014
    pending


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

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

Surface Rights

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

Royalty

For a discussion on the recent rulings by the Constitutional
Court in Guatemala regarding royalties, see Description of Our Business  Doing
Business in Guatemala, Peru and Canada  Taxation  Royalties.

|32 | Tahoe Resources Inc.
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PERMITS

Operations at the Escobal Mine are conducted under permits and
licenses issued by MEM and MARN. All required permits for surface and
underground activities are in place. The environmental approvals and
requirements for the Escobal Mine from MARN are specified in Resolution
3061-2011/DIGARN/ECM/beor, dated October 19, 2011. Exploitation activities are
authorized by MEM through exploitation license LEXT 015-11, dated April 3, 2013.
The export of concentrates from the Escobal Mine is licensed through MEM, with
annual renewal requirements. The Companys export license (EXPORT-TI-10-2016) is
current and valid.

ENVIRONMENT

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

Our environmental management mandate is to meet or exceed North
American standards, practices and regulations. No impacted materials are
directly discharged from the site. Impacted water is treated when necessary to
meet or exceed Guatemalan and 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;
      and
| |  | Underground paste backfill.                           

The Company estimates the present value of asset retirement
obligations at $4.0 million to reclaim the Escobal Mine at the end of the mine
life. As at December 31, 2016, we had recorded the full amount of this
reclamation liability.

GEOLOGY AND MINERALIZATION

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

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

Drilling at the Escobal property was conducted by Entre Mares
(Goldcorp) from 2007 up to the time of our acquisition of the Escobal property
and the Company has continued drilling since that time. Drilling has been
carried out from the surface and from underground using a combination of
contracted and company-owned drills.

Exploration in 2016 at the Escobal project concentrated on
testing the deep Gap zone between the East and Central Escobal zones.

All vein intercepts were drilled by diamond drill (core)
methods, with the majority of mineralized intercepts drilled with NTW-size drill
core.

SAMPLE PREPARATION, ANALYSIS AND SECURITY

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

Exploration core samples selected for analysis are cut
lengthwise using mechanized diamond saws. One-half of the core is placed in a
plastic sample bag with a sample tag while the remaining half core is replaced
in the core box for future reference. The samples are then taken to SRLF where
they are stored in MSR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.

|Annual Information Form for the Year Ended December 31,
      2016 | 33
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Underground definition drill core is normally sampled in its
entirety, with the samples placed in plastic bags with sample tags. Samples are
stored in a secure location at the Escobal Mine site until they are either
picked up by, or delivered to, Inspectorate. Inspectorate holds sample pulps in
secured storage in Guatemala City and returns coarse reject to the mine.

Inspectorate has been the primary analytical laboratory for all
Escobal Mine drill samples used to estimate Mineral Resources with only minor
exceptions. Samples have been prepared and analyzed using industry-standard
practices suitable for the mineralization at Escobal. 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 conducted quality assurance and quality control (QA/QC) programs
throughout all of the drill campaigns at Escobal, which include check assaying
and duplicate sample assaying at other laboratories, and the use of blind assay
standards and assay blanks. In late 2015, the Company began utilizing their
on-site laboratory for analysis of a portion of the underground stope definition
drill core and intends to increase its use of the laboratory for this purpose
over the coming year. Exploration samples will continue to be analyzed by an
independent commercial laboratory.

MINERAL RESOURCES

The Mineral Resource estimate for the Escobal Mine as updated
on January 1, 2017 from the Escobal Feasibility Study contains 367.9 moz of
silver classified as Measured and Indicated Mineral Resources and 9.5 moz of
silver classified as Inferred Mineral Resources, with significant amounts of
gold, lead, and zinc reported in both resource categories. The effective date of
the updated Escobal Mineral Resource estimate is January 1, 2017 calculated by
subtracting mine depletion volumes from the Mineral Resources stated in the
Escobal Feasibility Study. A summary of the Measured, Indicated and Inferred
Mineral Resources, using a cut-off grade of 130 g/t silver-equivalent, is
provided in the following table:

January
      2017: SUMMARY OF MINERAL RESOURCESClassification
    Tonnes(M)
    Silver(g/t)
    Gold(g/t)
    Lead(%)
    Zinc(%)
    Silver(moz)
    Gold(koz)
    Lead(kt)
    Zinc(kt)Measured Mineral Resources
    4.5
    429
    0.36
    0.79
    1.38
    62.2
    52.5
    35.5
    62.2Indicated Mineral Resources
    30.9
    307
    0.32
    0.69
    1.12
    305.7
    316.6
    212.3
    347.2Measured & IndicatedMineral Resources
    35.4
    323
    0.32
    0.70
    1.16
    367.9
    369.1
    247.8
    409.3Inferred Mineral Resources
    1.4
    207
    1.10
    0.24
    0.45
    9.5
    50.1
    3.4
6.3


Figures may not sum due to rounding

Mineral Resources for the Escobal vein were estimated from
approximately 58,600 samples obtained from 842 surface and underground diamond
drill core holes, totaling 231,326 metres. Data verification for the Mineral
Resources as reported in the Escobal Feasibility Study. 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. In connection with the Escobal Feasibility Study, 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 was completed.

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

Silver-equivalent value for determining the resource cut-off
grade was calculated using metal prices of $22.50/oz Ag, $1,300/oz Au, $0.95/lb
Pb, and $0.90/lb Zn, with no metal recovery factors applied.

MINERAL RESERVES

The Escobal Proven and Probable Mineral Reserves at January 1,
2017 total 23.7 million tonnes at average grades of 351 g/t Ag, 0.35 g/t Au,
0.77% lead and 1.27% zinc containing 267.5 million ounces of silver, 270.3
thousand ounces of gold, 183.2 thousand tonnes of lead and 300.3 thousand tonnes
of zinc. The updated Mineral Reserves were calculated by applying an updated
mine plan to the Mineral Resource estimate stated in the Escobal Feasibility
Study taking into account mining depletion through the end of 2016. A summary of
the Escobal Mineral Reserves estimate at January 1, 2017 is provided in the
following table:

January
      2017: SUMMARY OF MINERAL RESERVESClassification
    Tonnes(M)
    Silver(g/t)
    Gold(g/t)
    Lead(%)
    Zinc(%)
    Silver(Moz)
    Gold(koz)
    Lead(kt)
    Zinc(kt)Proven & ProbableMineral
      Reserves
    23.7
    351
    0.35
    0.77
    1.27
    267.5
    270.3
    183.2
300.3


|34 | Tahoe Resources Inc.
|-- | --------------------

---

Cut-off grades to define the January 1, 2017 Mineral Reserves
were calculated from the NSR value of the resource model blocks minus the
production cost to account for variability in mining method and metallurgical
response. Metal prices used to determine the NSR value are $20.00 per ounce
silver, $1,300 per ounce gold, $1.00 per pound lead and $1.25 per pound zinc.
Actual mining, processing and general and administrative (G&A) costs,
metallurgical performance and smelter contract rates from the Escobal Mine were
used to derive operating costs used in the reserve calculation.

Proven and Probable Mineral Reserves include 34% dilution that
takes into account internal and external mining dilution and dilution from paste
backfill where applicable. Subeconomic material internal to the stope designs
and external mining dilution account for approximately 31% of the dilution total
and paste backfill dilution accounts for about 3% of the dilution total.
Resources within the mine plan classified as Inferred have been given metal
grades of zero for the calculation of Mineral Reserves. Mineral Reserves are
inclusive of Mineral Resources.

MINING

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

Underground development of the Escobal Mine commenced in May
2011, with construction of the East Central and West Central decline portals;
after which ramp development began. Through the end of 2016, approximately
17,100 metres of capital development and 435 metres of vertical development
(ventilation raises) have been completed.

Mining is being done by transverse longhole stoping with future
mining by a combination of transverse and longitudinal longhole stoping. The
stopes are accessed from the footwall laterals. Through the end of 2016,
approximately 23,000 metres of stope development has been completed. Ore is
hauled to the surface by truck to the ore stockpile, located proximal to the
primary crusher. Development waste rock is hauled by truck to the surface and
used as construction material for the dry stack tailings buttress.

Filtered tails from the process plant are combined with cement
and water to make a structural fill (paste backfill) for filling the underground
voids produced from stope mining. The paste backfill plant is centrally located
on the surface above the Central zone and produces backfill for delivery via a
system of ceramic-lined steel and HDPE pipe into the mine for placement in the
mined-out stopes to provide stability to the excavated openings and allow for
maximum recovery of the resource. Approximately 486,000 m3 of paste
backfill was placed in the mine during 2016.

The Escobal Feasibility Study life of mine plan as of July 1,
2014 forecasts the Escobal Mine to produce a total of 31.4 million tonnes of ore
at average grades of 347 g/t silver, 0.33 g/t gold, 0.74% lead and 1.21% zinc.
The life of mine production by year as stated in the Escobal Feasibility Study
is summarized in the following table.

Escobal Life of Mine Production(tonnes, ounces
and pounds in 000s)

Year
    Tonnes
    Ag
      g/t
    Au
      g/t
    Pb
      %
    Zn
      %
    Ag Ounces
    Au Ounces
    Pb lbs
    Zn lbs2014(H2)
    658
    542
    0.38
    0.74
    1.27
    11,466
    8
    10,744
    18,4422015
    1,529
    482
    0.36
    0.68
    1.19
    23,707
    18
    23,033
    40,1532016
    1,624
    441
    0.31
    0.65
    1.13
    23,007
    16
    23,377
    40,6222017
    1,658
    442
    0.32
    0.67
    1.12
    23,555
    17
    24,668
    40,8032018
    1,642
    442
    0.32
    0.67
    1.13
    23,337
    17
    24,399
    40,7802019
    1,633
    442
    0.40
    0.66
    1.11
    23,200
    21
    23,816
    40,1072020
    1,633
    442
    0.61
    0.82
    1.39
    23,202
    32
    29,553
    50,0632021
    1,631
    442
    0.27
    0.46
    0.78
    23,184
    14
    16,436
    27,9912022
    1,619
    398
    0.34
    0.61
    1.01
    20,706
    18
    21,894
    36,1812023
    1,643
    266
    0.27
    0.56
    1.03
    14,056
    15
    20,431
    37,1382024
    1,650
    278
    0.34
    0.63
    1.04
    14,719
    18
    22,995
    37,7282025
    1,635
    283
    0.33
    0.63
    1.11
    14,904
    17
    22,588
    39,9222026
    1,647
    332
    0.41
    0.75
    1.31
    17,596
    22
    27,259
    47,5832027
    1,639
    312
    0.44
    0.81
    1.50
    16,416
    23
    29,372
    54,2392028
    1,642
    272
    0.37
    0.86
    1.47
    14,378
    20
    31,056
    53,3682029
    1,654
    266
    0.32
    0.75
    1.27
    14,130
    17
    27,429
    46,2092030
    1,638
    243
    0.28
    0.87
    1.41
    12,817
    15
    31,291
    50,8232031
    1,637
    251
    0.17
    0.80
    1.02
    13,188
    9
    28,850
    36,6752032
    1,660
    246
    0.17
    1.07
    1.27
    13,118
    9
    39,233
    46,4722033
    1,362
    224
    0.25
    1.08
    1.80
    9,797
    11
    32,453
    53,956Total
    31,433
    347
    0.33
    0.74
    1.21
    350,484
    336
    510,876
    839,255


|Annual Information Form for the Year Ended December 31,
      2016 | 35
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PROCESSING

Ore from the Escobal Mine is processed by differential
flotation producing lead concentrates with high precious metal (silver and gold)
grades and zinc concentrates with a lesser precious metal component. The
original design basis for the processing facility was 3,500 tonnes of ore per
day or 1.28 million tonnes per year; though the installed crushing, grinding,
flotation and concentrate processing components were sized for the contemplated
increased throughput rate of 4,500 tpd which was achieved in August 2015. Mill
commissioning was initiated in the second half of 2013 with the first metal
concentrates produced on September 30, 2013. The Company declared commercial
production in January 2014 with the completion of mill commissioning and
continued to ramp up the mill throughput rate through the first half of 2014.
The Escobal ore processing facility is operating at the increased design levels
and with metal recoveries generally meeting or exceeding design expectations.

Ore is transported from the underground mine to a stockpile
located proximal to the primary crusher, from where it is delivered by front end
loader to the crusher. The ore is reduced via a three stage crushing circuit
followed by a single ball mill. Metal is recovered from the ball mill discharge
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.

Since the declaration of commercial production through the end
of 2016, the Escobal plant has processed 4.35 million tonnes of ore at average
grades of 512 g/t Ag, 0.38 g/t Au, 0.80% Pb, and 1.29% Zn; producing 61.9
million ounces of silver, 33,360 ounces of gold, 31,352 tonnes of lead, and
50,983 tonnes of zinc contained in concentrate. Metal recovery into concentrates
averaged 86.6% for silver, 62.4% for gold, 87.9% for lead, and 77.1% for zinc.

The following table summarizes the life of mine process plant
throughput schedule and metal production (metal recovered in concentrate) as of
July 1, 2014 as presented in the Escobal Feasibility Study.

Escobal Life of Mine Process Plant Operations(tonnes, ounces and pounds in 000s)

Year
    Throughput
    Metal Recovered in ConcentratesTonnes
    Ag g/t
    Au g/t
    Pb %
    Zn %
    Ag Ounces
    Au Ounces
    Pb lbs
    Zn lbs2014(H2)
    684*
    527
    0.37
    0.76
    1.27
    10,138
    5
    10,243
    14,5142015
    1489
    483
    0.36
    0.68
    1.19
    20,074
    11
    19,979
    29,5502016
    1,643
    442
    0.31
    0.65
    1.14
    20,133
    10
    20,978
    30,9532017
    1,643
    442
    0.32
    0.67
    1.12
    20,130
    10
    21,704
    30,3762018
    1,643
    442
    0.32
    0.67
    1.13
    20,131
    10
    21,682
    30,6442019
    1,643
    442
    0.40
    0.66
    1.11
    20,132
    13
    21,266
    30,3102020
    1,643
    442
    0.60
    0.82
    1.38
    20,133
    21
    26,770
    38,3302021
    1,643
    442
    0.27
    0.46
    0.79
    20,136
    8
    14,431
    20,8892022
    1,643
    399
    0.34
    0.61
    1.01
    17,987
    11
    19,486
    27,2472023
    1,643
    266
    0.27
    0.56
    1.03
    11,573
    8
    17,845
    27,6862024
    1,643
    278
    0.34
    0.63
    1.04
    12,113
    11
    20,221
    28,0342025
    1,643
    283
    0.33
    0.63
    1.11
    12,393
    11
    20,017
    30,0812026
    1,643
    332
    0.41
    0.75
    1.31
    14,745
    14
    24,406
    36,1352027
    1,643
    312
    0.44
    0.81
    1.50
    13,749
    15
    26,632
    41,8652028
    1,643
    272
    0.37
    0.86
    1.47
    11,870
    12
    28,253
    41,0742029
    1,643
    266
    0.32
    0.75
    1.27
    11,549
    10
    24,460
    38,8442030
    1,643
    244
    0.28
    0.87
    1.41
    10,518
    9
    28,534
    39,0332031
    1,643
    251
    0.17
    0.80
    1.02
    10,833
    5
    26,155
    27,4542032
    1,643
    246
    0.17
    1.07
    1.27
    10,661
    5
    35,924
    34,9222033
    1,381
    224
    0.25
    1.08
    1.79
    8,067
    6
    30,471
    42,509Total
    31,476
    347
    0.33
    0.74
    1.21
    297,004
    204
    459,459
636,449


*includes stockpiled ore as of July 1, 2014

TAILINGS AND WASTE ROCK FACILITY

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 are 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.

|36 | Tahoe Resources Inc.
|-- | --------------------

---

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

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

TRANSPORTATION AND LOGISTICS

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.

The disturbance footprint of the Escobal Mine site is
approximately 100 hectares. Reclamation is conducted concurrent with operations
by placing salvaged topsoil on outslopes and encouraging vegetation. Final
reclamation of the surface will occur at final closure at the end of mine life.
The present value of asset retirement obligations for the Escobal Mine is
currently estimated at $4.0 million.

OPERATING COSTS

The Escobal Feasibility Study operating costs for the Escobal
Mine were calculated for each year of the mine life using the annual production
tonnages and the actual mining, milling, and site general and administration
(G&A) costs from the mines initial year of production as the basis. The
following table summarizes the Escobal Mine average life of mine operating costs
as estimated for the Escobal Feasibility Study.

Escobal Operating Costs

Operating Cost
    $/ore tonneMine
    $37.23Process Plant
    $22.83General Administration
    $15.06Production Cost
    $75.13Smelting/Refining Treatment
    $26.64Total Operating Cost
    $101.77


Figures may not sum due to
rounding

CAPITAL COSTS

As of July 1, 2014, the Escobal Feasibility Study estimates
life of mine sustaining capital of approximately $301.2 million expended over
19.5 years. About 50% of the sustaining capital is for primary underground
development; the remaining 50% is divided between mine infrastructure and
utilities, underground mobile equipment purchases and rebuilds, surface
equipment, annual ball mill liner replacement, and miscellaneous site G&A.
Total life of mine capital, including expansion capital, totals $325.5M.

|Annual Information Form for the Year Ended December 31,
      2016 | 37
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---

The total capital carried in the Escobal Feasibility Study
financial model for the Escobal Mine is shown in the following table.

Life of Mine Capital Summary

Year
    Cost Estimate (000s)2014 Expansion*
               Sustaining*
    $ 5,549 $ 14,4422015
      Expansion         
      Sustaining
    $ 14,220 $ 30,7572016
      Expansion         
      Sustaining
    $ 4,545 $ 17,8312017 Sustaining
    $ 19,1172018 Sustaining
    $ 20,1942019 Sustaining
    $ 23,2582020 Sustaining
    $ 12,3602021 Sustaining
    $ 12,1512022 Sustaining
    $ 17,0542023 Sustaining
    $ 18,3012024 Sustaining
    $ 25,4802025 Sustaining
    $ 15,4762026 Sustaining
    $ 15,6402027 Sustaining
    $ 12,8512028 Sustaining
    $ 11,3342029 Sustaining
    $ 13,8282030 Sustaining
    $ 9,4192031 Sustaining
    $ 5,2052032 Sustaining
    $ 3,6662033 Sustaining
    $ 2,814Total
    $ 325,493


*JulyDecember 2014

Expansion and sustaining capital are expected to be financed
from cash flow from production at the Escobal Mine.

FINANCIAL ANALYSIS

The Escobal Feasibility Study economic analysis indicates the
Escobal Mine has an NPV 5% of $1.52 billion using base case metal prices of
$18/oz silver, $1,300/oz gold, $0.95/lb lead and $0.90/lb zinc. The financial
analysis does not present an internal rate of return (IRR), as it is a less
meaningful metric for this study of the Escobal Mine. In this study, all capital
costs prior to July 1, 2014, are considered to be sunken; hence the calculated
return on investment is magnified by the significant mine cash flows offset by
the exclusion of the initial capital investment in the calculation and would
exaggerate any IRR calculated. NPV provides a more accurate and meaningful
economic assessment of the mine. Sensitivity analyses were done using changes to
metal prices, silver prices only (no change to base case gold, lead and zinc
prices), operating costs, capital costs and metallurgical recovery; the results
of which are summarized in the following table.

|38 | Tahoe Resources Inc.
|-- | --------------------

---

Sensitivity Analysis  NPV after Taxes

NPV @ 0%
    NPV @ 5%
    NPV @ 10%Change in Metal Prices20%
    $3,100,197
    $2,288,349
    $1,805,97110%
    $2,556,373
    $1,902,019
    $1,510,006Base Case 0%
    $2,012,550
    $1,515,689
    $1,214,041-10%
    $1,526,811
    $1,160,056
    $935,374-20%
    $1,029,418
    $800,057
    $654,775Change in Silver Prices$25.00
    $3,740,225
    $2,761,565
    $2,179,556$22.00
    $2,999,793
    $2,227,618
    $1,765,764Base Case $20.00
    $2,506,171
    $1,871,653
    $1,489,902$18.00
    $2,012,550
    $1,515,689
    $1,214,041$15.00
    $1,329,003
    $1,012,566
    $818,096Change in Operating Cost20%
    $1,605,357
    $1,228,547
    $995,68810%
    $1,776,080
    $1,354,731
    $1,095,059Base Case 0%
    $2,012,550
    $1,515,689
    $1,214,041-10%
    $2,249,020
    $1,676,647
    $1,333,023-20%
    $2,485,489
    $1,837,605
    $1,452,005Change in Initial Capital20%
    $2,007,687
    $1,510,869
    $1,209,26110%
    $2,010,119
    $1,513,279
    $1,211,651Base Case 0%
    $2,012,550
    $1,515,689
    $1,214,041-10%
    $2,014,981
    $1,518,099
    $1,216,431-20%
    $2,017,413
    $1,520,508
    $1,218,821Change in Recovery2.0%
    $2,106,005
    $1,582,562
    $1,265,5561.0%
    $2,059,277
    $1,549,125
    $1,239,799Base Case 0.0%
    $2,012,550
    $1,515,689
    $1,214,041-1.0%
    $1,965,823
    $1,482,253
    $1,188,284-2.0%
    $1,919,095
    $1,448,816
$1,162,526


CONCLUSIONS AND RECOMMENDATIONS

The Escobal Feasibility Study concluded the results of the
Study demonstrated:

| |  | Proven and Probable reserves are supported by
      the feasibility of the Escobal Mine.                                  
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | Operating results to date validate the mining
      method and process design for the Escobal Mine.                       
| |  | Mine and mill expansion from the current rate
      to 4500 tpd is achievable with minimal additional capital expenditure.

The Escobal Feasibility Study further recommended:

| |  | Tahoe continue to aggressively explore for extensions or
      offsets of the Escobal vein, or to accelerate its district exploration
      programs, to provide higher mining grades beyond 2022.                                                                                                                                                                                                                                                              
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Concurrent with the prior recommendation, initiate
      studies to investigate increased mining and throughput rates to grow the
      annual silver production in the second half of the mine life.                                                                                                                                                                                                                                                           
| |  | Tahoe continue investigating lower cost alternatives to
      the current diesel generated power at the mine site. The Escobal
      Feasibility Study indicates that lower power costs have the opportunity to
      provide significant operating cost savings in the near term.                                                                                                                                                                              
| |  | Critical evaluation of operating and capital costs. Now
      that the Escobal Mine has reached design operational parameters, Tahoe
      should begin to focus on optimizing mining and processing procedures in an
      effort to reduce operating costs. Reductions in primary development mining
      costs and increased equipment utilization would have a direct positive
      impact on the life of mine sustaining capital requirements.           
| |  | Metallurgical studies to determine if silver and gold
      metallurgical recoveries can be improved as incremental increases in metal
      recovery, particularly for silver, may have a significant positive impact
      on the long-term cash flow from the mine.                                                                                                                                                                                          
| |  | Critical evaluation of mining dilution. The Escobal
      Feasibility Study indicates that there may be opportunities to
      incrementally increase mining grades without additional costs by reducing
      the dilution included in the mine plan. In addition, future resource modeling efforts should
incorporate methods to better depict grade domain boundaries in the resulting
model blocks to allow for a more accurate estimate of mining dilution.
| |  | Tahoe performs annual geotechnical and water
      management performance reviews of the tailings dry stack to ensure
      stability and reclamation success.                                                                                                                                                                                                                                                                                                  

|Annual Information Form for the Year Ended December 31,
      2016 | 39
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|THE LA ARENA
      MINE
|-----------------------

RECENT ACTIVITIES AT THE LA ARENA MINE

In 2016, the La Arena Mine produced a total of 204.4 thousand
ounces of gold in doré, and a total of 15.7 million tonnes of ore and 32.5
million tonnes of waste were mined for a strip ratio of 2.1:1. A total of 15.3
million tonnes of ore at an average grade of 0.49 g/t Au from the open pit and
existing stockpiles were placed on the leach pad.

At January 1, 2017 Measured and Indicated Mineral Resources for
the La Arena oxide deposit totalled 63.8 million tonnes at an average gold grade
of 0.39 g/t, containing 804.6 thousand ounces of gold. Proven and Probable
Mineral Reserves for the La Arena oxide mine totalled 54.1 million tonnes at an
average grade of 0.41 g/t Au, containing 714.7 thousand ounces of gold. Mineral
Resources and Mineral Reserves for the La Arena oxide mine at January 1, 2017
were calculated by applying the mine topographic surface at January 1, 2017 from
updated Mineral Resources and Mineral Reserves estimates completed as of July 1,
2016.

Sustaining capital projects in 2016 included planned additions
and extensions to the leach pads and waste dumps, planned pit expansion, and the
installation of a re-pumping station to provide for irrigation to the life of
mine leach pad stacking design.

PROPERTY DESCRIPTION

The La Arena Project is located in northern Peru, 480 km NNW of
Lima, Peru, in the Huamachuco District. The project is situated in the eastern
slope of the western Cordillera, close to the continental divide at an average
altitude of 3,400 metres above sea level. The region displays a particularly
rich endowment of metals (Cu-Au-Ag) occurring in porphyry and epithermal
settings, including the Lagunas Norte mine at Alto Chicama, the Comarsa mine, La
Virgen mine, and the Companys Shahuindo mine.

The project can be accessed via a 165 km national roadway from
the coastal city of Trujillo directly east towards Huamachuco, passing through
Chiran, Shorey/Quiruvilca and the Lagunas Norte project (Barrick Gold
Corporation). The topography in the project area is relatively smooth with
undulating hills. Elevations vary between 3,000 and 3,600 meters above sea
level. In general, the slopes are stable with grades varying between 16o and
27o, and the land is covered with vegetation typical of the area.

Average annual temperature data recorded from the La Arena
meteorological station in 2013 was 10.6oC. The maximum recorded temperature is
22.6°C and the minimum is 0.4oC. Historically, total average annual rainfall has
been estimated at 1124 mm/annum and the average total annual evaporation rate in
733 mm/annum. The average relative humidity varies monthly between 77% and 88%.
Maximum precipitation usually occurs during the months of October through to
March while the months of June to September are the driest. The maximum daily
precipitation recorded to date at the La Arena site was 245.6 mm in February
2012 while the minimum precipitation of 0 mm was recorded in July 1998.

The La Arena Mine site was connected to the Peruvian power
supply grid in September 2014.

HISTORY

Gold mineralization at La Arena was first discovered by Cambior
Inc. in December 1994. Cambior staked a claim for mining concessions of 1,800
hectares over the current La Arena oxide and sulfide deposits in January 1995.
The mining concessions comprising the La Arena Project passed to Iamgold
following its acquisition of Cambior in 2006.

Rio Alto entered into an option and earn-in agreement with
Iamgold Quebec Management Inc. in June 2009 which provided it with an option to
acquire 100% of La Arena S.A., the Peruvian company that owned the La Arena
Project, upon payment of $47.6 million cash, subject to certain adjustments and
the completion of expenditure commitments. On February 9, 2011, Rio Alto
announced that it had exercised its option and acquired 100% of the La Arena
Project upon payment of the exercise price of $49.0 million. Tahoe completed its
acquisition of Rio Alto in April 2015 and assumed ownership of the La Arena
Project. The mine is operated by the Companys wholly owned operating company,
La Arena S.A.C.

LA ARENA FEASIBILITY STUDIES

Six NI 43-101 Technical Reports have been completed on the La
Arena Project between 2008 and 2015. Two events triggered an updated NI 43-101
report for La Arena in 2015:

| | 1. | An update to the gold oxide resource and reserve
      estimates for oxide project as additional data from a reverse circulation
      infill drill program was available. Gold inventory has been updated as a
      result of the in-fill drilling program completed with updated cost
      estimates; and
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|40 | Tahoe Resources Inc.
|-- | --------------------

---

| | 2. | The Pre-Feasibility Study on the sulfide Cu-Au deposit,
      also known as La Arena Phase II, has been finalized. A Pre-Feasibility
      Study was completed in January 2015 on the Cu-Au sulfide material located
      on the east side of the current oxide pit. There have been no changes in
      the mineral resources on the sulfide deposit.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The report was issued on February 27, 2015 with an effective
date of December 31, 2014.

The following descriptions of the La Arena Project are
summarized from the NI-43-101 Technical Report entitled La Arena Project, Peru
prepared on behalf of Rio Alto with an effective date of December 31, 2014 and
issued on February 27, 2015 (the La Arena 2015 Technical Report). A more
complete description of the La Arena Mine may be found within the La Arena 2015
Technical Report, a copy of which is available on the Companys profiles on
SEDAR and EDGAR. Unless stated otherwise, information in this section is
summarized, complied, extracted or incorporated by reference from the La Arena
2015 Technical Report. Scientific and technical information in this AIF relating
to updates to the La Arena Mine disclosure since the date of the La Arena 2015
Technical Report has been verified by Charles Muerhoff, the Companys Vice
President Technical Services and Qualified Person as defined by NI 43-101. The
La Arena 2015 Technical Report was prepared on behalf of the Company in
accordance with NI 43-101 by Qualified Persons. Defined terms used in this
summary have the meanings ascribed to such terms in the La Arena 2015 Technical
Report. The reference numbers of the tables and figures set out in this section
are those attributed by the La Arena 2015 Technical Report. For a complete
description of the assumptions, qualifications and procedures associated with
the following information, reference should be made to the full text of the La
Arena 2015 Technical Report. Readers are encouraged to read the full La Arena
2015 Technical Report.

MINERAL TENURE, SURFACE RIGHTS, AND ROYALTIES

The mineral concessions pertaining to the La Arena Project
total 25 licenses with available area of approximately 31,757 hectares that are
fully owned and registered in the name of La Arena S.A.C., a wholly-owned
subsidiary of Rio Alto. The mining concessions are in good standing. Based on
publicly available information, no litigation or legal issues related to the
mining concessions comprising the project are pending.

N°
    Reg. Code
    Name
    Owner
    Area (Ha)1
    010000912L
    ACUMULACION LA ARENA
    LA ARENA
    18,831.142
    10063994
    FLORIDA I
    LA ARENA
    6003
    010063994A
    FLORIDA IA
    LA ARENA
    4004
    10108794
    FLORIDA III
    LA ARENA
    3005
    010108794A
    FLORIDA III A
    LA ARENA
    7006
    10111497
    MICHE 33
    LA ARENA
    1007
    10131811
    CA-CHACHI 2
    LA ARENA
    1,000.008
    10131911
    CACHACHI 3
    LA ARENA
    1,000.009
    10132011
    CACHACHI 4
    LA ARENA
    1,000.0010
    10132111
    CACHACHI 5
    LA ARENA
    40011
    10133111
    CACHACHI 1
    LA ARENA
    70012
    10143010
    SERPAQUINO 5
    LA ARENA
    60013
    10300910
    SERPAQUINO-04
    LA ARENA
    90014
    30003794
    PEÑA COLORADA I
    LA ARENA
    1,000.0015
    30003894
    PEÑA COLORADA II
    LA ARENA
    80016
    30003994
    PEÑA COLORADA III
    LA ARENA
    60017
    30004603
    CARBONERA SANAGORAN TRES
    LA ARENA
    10018
    15007637X01
    PEÑA COLORADA
    LA ARENA
    480.319
    15009027X01
    EL FERROL N°5019
    LA ARENA
    6020
    15010088X01
    EL FERROL N°5026
    LA ARENA
    28621
    15010314X01
    EL FERROL N°5027
    LA ARENA
    20022
    10203912
    CHURGO-1
    LA ARENA
    60023
    10099913
    RAMX-7
    LA ARENA
    80024
    10100013
    RAMX-8
    LA ARENA
    20025
    630000611
    CARBON SAN FRANCISCO 2011 III
    LA ARENA
    10026
    630000711
    CARBON SAN FRANCISCO 2011 II
    RIO ALTO
    200


|Annual Information Form for the Year Ended December 31,
      2016 | 41
|------------------------------------------------------------------ | --

---



The mineral resources identified so far in the La Arena deposit
are completely contained within the mining concession Maria Angola 18. This
mining concession is free of any underlying agreements and/or royalties payable
to previous private owners. The Ferrol N°5019, Ferrol N°5026 and Ferrol N°5027
mining concessions, which are partially overlapped by Maria Angola 18, are
subject to a 2% NSR royalty, payable to their previous owners. Mining
concessions Florida I, Florida IA, Florida II, Florida IIA, Florida III and
Florida IIIA are subject to a 1.6% NSR royalty. Mining concessions Peña
Colorada, Peña Colorada I, Peña Colorada II and Peña Colorada III are subject to
a 1.4% NSR royalty.

PERMITS

The La Arena Project is subject to various Peruvian mining
laws, regulations and procedures. Mining activities in Peru are subject to the
provisions of the Uniform Code of the General Mining Law (General Mining Law),
which was approved by Supreme Decree No. 14-92-EM on June 4, 1992, and its
subsequent amendments and regulations, as well as other related laws. Under
Peruvian law, the Peruvian State is the owner of all mineral resources in the
ground. The rights to explore for and develop these mineral resources are
granted by means of the Concession System.

Mining concessions are considered immovable assets and are
therefore subject to being transferred, optioned, leased and/or granted as
collateral (mortgaged) and, in general, may be subject to any transaction or
contract not specifically forbidden by law. Mining concessions may be privately
owned and the participation in the ownership of the Peruvian State is not
required. Buildings and other permanent structures used in a mining operation
are considered real property accessories to the concession on which they are
situated.

The Company has received all permits necessary to operate the
La Arena oxide mine.

ENVIRONMENT

The La Arena oxide mine operates under an existing
Environmental Impact Assessment (EIA) which was approved on July 20, 2010. La
Arena is actively working to ensure the commitments and recommendations of the
EIA are followed, including environmental monitoring and social management plan
programs. Currently the La Arena gold oxide dump leach mine is working at full
capacity of the production permit of 35,990 tpd.

An environmental assessment report for the Sulfide Project was
initiated in the fourth quarter of 2012 and was presented to MEM in June 2013.
This study was approved December 27, 2013. The surface footprint of this permit
is not outside the footprint of the initial EIA for the oxide mine and according
to the current regulations was treated as a modification of the original EIA.
New environmental commitments include water quality monitoring stations, air,
noise quality and social management programs. All the new commitments result from a
compilation and update of all plans and programs currently ongoing at the
operation.

|42 | Tahoe Resources Inc.
|-- | --------------------

---

GEOLOGY AND MINERALIZATION

The La Arena (Au, and Cu-Au) Project is located in a prolific
metallogenic province that contains many precious and polymetallic mines and
projects such as; Lagunas Norte (Au-Ag), Santa Rosa (Au), La Virgen (Au),
Quiruvilca (Ag-Base Metals), Tres Cruces (Au), Shahuindo (Au-Ag) and Igor
(Au-Cu).

The La Arena oxide gold project consists of mineralization
which is predominantly of an epithermal high sulfidation style, hosted in
oxidized sandstone-breccia within the Chimu Formation.

The Cu-Au-(Mo) sulfide mineralization is hosted in a
multi-stage porphyry intrusion. The La Arena Porphyry outcrops to the east from
the Calaorco and Ethel zones of the oxide deposit. The style of mineralization
is typically porphyritic with at least four intrusive events identified. The
intrusive rocks vary from dacitic to andesitic, differentiated by texture and
composition.

EXPLORATION

Up until the effective date of the La Arena 2015 Technical
Report, a total of 284,782 metres had been drilled at La Arena. The drilled
metres are evenly split between reverse circulation (RC), at 141,591 metres
(49.7% of the total), and core drilling (DC) at 143,191 metres (51.3% of the
total).

The oxide deposit had 19,733 metres of core drilling and
114,281 metres of reverse circulation drilling, for a total of 134,014 metres.
The sulfide had 121,858 metres of core drilling and 28,910 metres of reverse
circulation drilling, for a total of 150,768 metres.

During the 2014 period, 22,087 metres of reverse circulation
drilling were completed into the oxide deposit and 4,487 metres were completed
into the sulfide deposit as part of the sterilization program near the Sulfide
Project.

Exploration during 2015 concentrated on four holes totaling
2,355 metres to test the deep Tilsa structures below the Calaorco pit. Three
deep holes totaling 3,954 metres were also completed to test down-dip extensions
of the Phase II Cu-Au sulfide mineralized zone.

During 2016 exploration activity included first-pass drilling
at the El Alizar target near the La Arena mine with a total of 25 holes for
5,889 metres defining irregular zones of mineralization related to narrow
breccia zones.

SAMPLE PREPARATION, ANALYSIS AND SECURITY

Diamond drill core has been logged in detail for geological,
structural and geotechnical information, including RQD and core recovery. Core
recovery is generally 90-95%. Whole core is routinely photographed.

Core samples were collected with sample breaks generally
corresponding to geologic contacts. Core has not been orientated for structural
measurements, except for 18 holes drilled for the Phase II geotechnical program
in 2012. Sampling of core from exploration programs prior to 2011 consisted of
chiselling the core in half. The standard procedure for core sampling since 2011
cut the core lengthways with a diamond saw, with half-core sent for assay.

Reverse circulation drill cuttings were logged for geological
features and collected at 2 meter intervals and quartered in riffle splitters.
Sub-samples weighing approximately 6 kg were collected in cloth-lined sample
bags.

Reference material is retained and stored on site, including
half-core, photographs generated by diamond drilling, duplicate pulps and pulps
of all submitted core and reverse circulation samples. All pulps are stored at
the La Arena core shed.

The sample preparation methods for the samples submitted prior
to 2003 are not documented. Since 2003 the sample preparation method consisted
of digitally weighing the samples, drying the samples to a maximum of 120oC (for
wet samples), crushing the samples to 70% passing 2 mm (10 mesh), riffle
splitting to 250 g, and pulverizing to 85% passing 75% μm (200 mesh). Subsample
size of 50 g pulps are submitted for analysis.

Chemical analysis at the primary laboratory (ALS Chemex since
2005) and the secondary laboratory (CIMM Peru) consisted of fire assay (FA) with
atomic absorption spectrometry (AAS) finish, using 50 g sub-samples. Those
samples that returned grades ≥ 5 g/t Au were analysed using gravimetric methods.
For Cu, Ag, Mo, Pb, Zn, As, Sb and Bi multi-acid (four) digestion AAS is used.
Mercury was analysed using cold vapour AAS. In 2010, Rio Alto changed to the
primary laboratory to CERTIMIN (previously CIMM Peru), with the secondary
laboratory being ALS Chemex.

MINERAL RESOURCE

Oxide Mineral Resources

The Mineral Resource estimate for the La Arena oxide gold
deposit was updated for January 1, 2017 by applying the mine topographic surface
at January 1, 2017 to the Mineral Resources Estimate updated at July 1, 2016. As
of January 1, 2017, oxide Measured and Indicated Mineral Resources total 63.8
million tonnes at an average gold grade of 0.39 g/t, containing 804.6 thousand
ounces of gold.

|Annual Information Form for the Year Ended December 31,
      2016 | 43
|------------------------------------------------------------------ | --

---

JANUARY 2017:
      SUMMARY OF OXIDE MINERAL RESOURCESClassification
    Tonnes (M)
    Gold (g/t)
    Gold (koz)Measured Mineral Resources
    0.3
    0.37
    4.2Indicated Mineral Resources
    63.5
    0.39
    800.4Measured & Indicated Mineral Resources
    63.8
    0.39
    804.6Inferred Mineral Resources
    0.4
    0.30
3.5


Figures may not sum due to rounding

The oxide resource is reported at a cut -off grade of 0.10 g/t
Au within an optimized undiscounted cash flow pit shell using a metal price of
$1,400/oz Au and actual costs experienced at the La Arena Mine.

Mineral Resources for the La Arena oxide deposit were estimated
using approximately 76,000 drill samples obtained from 1,222 reverse circulation
drill holes and 135 diamond drill core holes, totalling approximately 207,000
metres.

Oxide mineralization was modeled into four large low-grade
domains, a higher grade series of Tilsa(sub-vertical) structures, and a
lower-grade domain for the satellite Astrid deposit. The lower-grade domains use
a nominal 0.05 g/t cutoff grade as a hard boundary as this appears to be a
natural break in the gold population and it is below the current open pit
operational cut-off grade of 0.10 g/t. Tilsa-style structures have a core
(+/-1m) of very high grade but typically not well defined by drilling due to a
combination of thickness and orientation of the structures. Therefore, a nominal
cutoff grade of 0.5 g/t was used to bulk up these structures into broader
zones. This also facilitated more depth and strike length to the
interpretations. Estimation methods used were Localized Uniform Conditioning for
the low-grade oxide domains and Ordinary Kriging for the Tilsa structure domains
and background material.

Sulfide Mineral Resources

Sulfide Mineral Resources remain unchanged from those reported
in the La Arena 2015 Technical Report which, in turn, were re-presented from the
January 2013 Technical Report. Indicated Mineral Resources for the La Arena
sulfide deposit stand at 274 million tonnes with average grades of 0.24 g/t Au
and 0.33% Cu, containing 2.1 million ounces of gold and 2.0 billion pounds of
copper. There are no Measured Mineral Resources for the sulfide deposit.

JANUARY 2017:
      SUMMARY OF SULFIDE MINERAL RESOURCESClassification
    Tonnes (M)
    Gold (g/t)
    Copper (%)
    Gold (koz)
    Copper (Mlbs)Measured Mineral Resources
    -
    -
    -
    -
    -Indicated Mineral Resources
    274.0
    0.24
    0.33
    2,124
    2,014Measured & Indicated Mineral Resources
    274.0
    0.24
    0.33
    2,124
    2,014Inferred Mineral Resources
    5.4
    0.10
    0.19
    18
22


figures may not sum due to rounding

Sulfide Mineral Resources are reported at a cut-off grade of
0.12% Cu within an optimized undiscounted cash flow pit shell using metal prices
of $1,400/oz Au and $3.50/lb Cu and updated operating cost parameters.

Mineral Resources for the Sulfide Project deposit were
estimated from samples obtained from 388 core and reverse circulation drill
holes totalling 131,951 metres.

Sulfide mineralization was modeled into three domains based on
geology - porphyry intrusive, sandstone, and a prominent low-angle thrust which
occurs in the upper northern portion of the resource area. There are no internal
grade subdomains within the geological domains. Ordinary Kriging was used to
estimate the sulfide copper; gold, silver, molybdenum, and arsenic were
estimated using inverse distance methods.

Refinement of the geologic model of the La Arena porphyry was
completed and incorporated into an updated three dimensional geologic model in
2016. This model will form the basis for a new resource estimate, internal
scoping study and Preliminary Economic Assessment in 2017.

MINERAL RESERVE ESTIMATE

Oxide Mineral Reserves

The La Arena oxide Proven and Probable Mineral Reserves at
January 1, 2017 total 54.1 million tonnes at an average gold grade of 0.41 g/t,
containing 714.7 thousand ounces of gold. A summary of the La Arena oxide
Mineral Reserves at January 1, 2017 is provided in the following table:

|44 | Tahoe Resources Inc.
|-- | --------------------

---

JANUARY 2017:
      SUMMARY OF OXIDE MINERAL RESERVESClassification
    Ore Type
    Tonnes (M)
    Gold (g/t)
    Gold (koz)Proven Mineral Reserves
    Sediments Intrusive
    - 0.3
    - 0.37
    - 4.1Total Proven Mineral Reserves
    0.3
    0.37
    4.1Probable Mineral Reserves
    Sediments Intrusive
    48.2 5.6
    0.42 0.30
    657.7 52.9Total Probable Mineral Reserves
    
    53.8
    0.41
    710.6Proven & Probable Mineral Reserves
    All Ore Types
    54.1
    0.41
714.7


Figures may not sum due to rounding

Oxide mineral reserves have been constrained to the final pit
design based on an optimized pit shell. The mineral reserve has been estimated
with Measured and Indicated oxide Mineral Resources only. The pit optimization
input parameters used are listed in the table below.

Pit Optimization Parameters for Oxide Mineral Reserves

Mining
      Parameters
    Units
    ValueMining Dilution Factor
    n/a
    incorporated into block model
      incorporated into block modelMining Recovery Factor
    n/aMining Cost
    $/t mined
    1.90Processing
      Parameters
    Units
    ValueOre processing rate
    Mt/y
    16.2Processing Cost
    $/t leached
    1.49General & Administration Cost
    $/t leached
    1.11Gold leaching recovery - intrusive
    %
    83Gold leaching recovery - sediments
    %
    86Economics
      Assumptions
    Units
    ValueGold price
    $/oz
    1,200Payable proportion of gold produced
    %
    99.9Gold Sell Cost
    $/oz
    12.37Royalties
    %
1


Intrusive ore hosted within the oxide is separated as a
different ore type for processing, as it needs to be blended with sediments in
order to be leached effectively. Mineralization within the colluvium was not
included in the mineral reserve due to the cost of moving the national highway.
However, mineralized colluvium inside the Calaorco Pit was included in the
mineral reserves as sediments. The colluvium deposit is a small shallow
unconsolidated deposit of approximately 2.0 million tonnes grading 0.34 g/t gold
and is located immediately southeast of the main Calaorco Pit.

Sulfide Mineral Reserve Estimate

Sulfide Mineral Reserves remain unchanged from those reported
in the La Arena 2015 Technical Report which, in turn, were re-presented from the
January 2013 Technical Report. Probable sulfide Mineral Reserves using a cut-off
grade of 0.18% copper are 63.1 million tonnes with average grades of 0.31 g/t Au
and 0.43% Cu, containing 633 thousand ounces of gold and 579 million pounds of
copper.

JANUARY 2017:
      SUMMARY OF SULFIDE MINERAL RESERVESClassification
    Tonnes (M)
    Gold (g/t)
    Copper (%)
    Gold (koz)
    Copper (Mlbs)Proven Mineral Reserves
    -
    -
    -
    -
    -Probable Mineral Reserves
    63.1
    0.31
    0.43
    633.2
    579.4Proven & Probable Mineral Reserves
    63.1
    0.31
    0.43
    633.2
579.4


Figures may not sum due to rounding

When calculating the reserve for the sulfide resource a small
capital constrained project was considered with strict financial hurdles. The
resulting reserve at this stage is only a small portion of the total resource.
The main economic assumptions used in the sulfide pit optimization are presented
in the table below.

|Annual Information Form for the Year Ended December 31,
      2016 | 45
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---

Pit Optimization Parameters for Sulfide Mineral Reserves

Mining Parameters
    Units
    ValueMining Dilution Factor
    factor
    1.05Mining Recovery Factor
    factor
    0.98Mining Cost
    $/t mined
    1.92Processing Parameters
    Units
    ValueOre processing rate
    Mt/y
    6.57Processing Cost
    $/t milled
    4.61Process Copper Recovery Range
    %
    75.9 - 92.0 (Avg 91.1)Process Gold Recovery Formula
    %
    29.5  45.5 (Avg 38.9)General & Administration Cost
    M$/y
    22.6Economics Assumptions
    Units
    ValueCopper price
    $/lb
    3.0Payable proportion of copper produced
    %
    96.5Copper Sell Cost
    $/lb
    0.37Gold price
    $/oz
    1,200Payable proportion of gold produced
    %
    88.6Gold Sell Cost
    $/oz
    8.0Royalties
    %
1.0


The Company is currently in the process of re-evaluating the La
Arena Phase II Sulfide Project without regard to the capital and operating
constraints that were applied to the 2015 Pre-Feasibility Study.

MINING

Operations on site are currently exploiting the near-surface
oxide gold reserve. Oxide ore has been mined from Calaorco and Ethel pits, with
the Ethel pit now being exhausted. The open pits are mined in 8 metre high
benches by conventional drill and blast methods. Loading is with 170 tonne face
shovels and a fleet of predominantly 92 tonne trucks. Ore is truck dumped in
either 8 metre or 16 metre lifts onto the dump leach pads, with no crushing or
agglomeration required prior to irrigation. The table below shows the historical
ore and waste production since the operations began in 2011 through the end of
2016.

|Historical Mine
      Production
|--------------------------------
|                                
|Year                            
|2011                            
|2012                            
|2013                            
|2014                            
|2015                            
|2016                            
|Total                           

Figures may not sum due to rounding

PROCESSING

After the ore is placed on the leach pad, cyanide leach
solution is sprayed onto each leach pad cell for a nominal period of 60 days.
The pregnant solution flows onto the geomembrane underlying the pad to a central
collection point and into the pregnant solution pond. Pontoon mounted pumps in
this pond are used to pump the solution to the adsorption, desorption and
refining (ADR) plant located approximately 300 metres north of the leach pad.
The plant currently has the capacity to treat solution from 36,000 tpd of ore.
The process includes absorption onto carbon pellets and desorption in high
caustic/high temperature leach columns. The carbon is sent to regeneration and
the enriched solution is sent to electro-winning cells where a cathode is used
to produce a fine-grained precipitate. The precipitate is filtered and dried,
which also evaporates the mercury which is then captured for later disposal.
This dried precipitate is smelted to produce doré bars of approximately 80% Au.

A summary of processing for the project through the end of 2016
is presented in the table below. Ore dumped in the leach pad differs from actual
mined ore tonnes due to ore rehandle from the stockpile to the leach pad.

|46 | Tahoe Resources Inc.
|-- | --------------------

---

|Historical Process Plant Production
|-----------------------------------
|**Year**                           
|Tonnes (M)                         
|2011                               
|2012                               
|2013                               
|2014                               
|2015                               
|2016                               
|Total                              

figures may not sum due to rounding

CAPITAL AND OPERATING COSTS

Oxide Gold Project

Capital costs for the oxide gold project were developed by Rio
Alto and forecasted on an annual basis for inclusion in the La Arena 2015
Technical Report. Annual capital cost estimates from the technical report are
summarized in the table below.

|Annual Capital Cost for Oxide Gold Project (in 000 US$)Capex for Oxide Gold Project (000
    US$)
|---------------------------------------------------------------------------------------------------
|                                                                                                   
|Construction                                                                                       
|Plant                                                                                              
|Community Relations                                                                                
|Permits & Engineering                                                                              
|Other Capex                                                                                        
|Road Diversion                                                                                     
|Land Purchases                                                                                     
|Total Capex                                                                                        

Annual Operating cost estimates for the oxide gold project as
reported in the 2015 NI 43-101 technical report, broken down by major element,
are summarized below.

|Annual
      Operating Cost for Oxide Gold Project (in 000 US$) Total
      Operating Costs and Operating Profit (000 US$)
|----------------------------------------------------------------------------------------------------------------------------
|
|                                                                                                                            
|Net Revenue                                                                                                                 
|Total Operating Expenses                                                                                                    
|Closure Expenditures                                                                                                        
|Operating Profit (EBITDA)                                                                                                   
|Operating Profit Margin                                                                                                     

Sulfide Project

A summary of operating costs for the Sulfide Project as
reported in the La Arena 2015 Technical Report is presented in the table below.

|Annual Information Form for the Year Ended December 31,
      2016 | 47
|------------------------------------------------------------------ | --

---

Total Operating Cost Summary for the
      Sulfide ProjectUnit CostMININGMining Direct Cost ($/ t mined)
    1.32Mining Maintenance ($/mined)
    0.02Mining Indirects ($/mined)
    0.60PROCESSINGPower
    1.73Reagents & Consumables
    1.30Labour
    0.66Maintenance & Mobile Equipment
    0.93Total Processing Cost ($/ t milled)
    4.61GENERAL AND ADMINISTRATION
    $22.6 M/y


Initial capital expenditures reported in the La Arena 2015
Technical Report were US$314 million for the processing plant and all associated
infrastructure such as camp relocation, power, drainage system, tailings
facilities and contingency. An additional US$61.2 million was allocated for
sustaining capital during the 10 year mine life, for total estimated capital
expenditures of US$415.5 million (including $40 million for mine closure), for
the 63Mt project.

The sensitivity analysis on the NPV and IRR for the Sulfide
Project as reported in the La Arena 2015 Technical Report is shown in the table
below:

Sensitivity Analysis for the
    Sulfide ProjectAfter Tax NPV2.50/lb Cu
    2.75/lb Cu
    3.00/lb Cu
    3.50/lb Cu
    4.00/lb Cu0%
    $115,931,418
    $202,256,504
    $285,492,823
    $448,325,631
    $606,298,9594%
    $57,148,889
    $124,695,433
    $189,213,692
    $314,925,219
    $436,670,6246%
    $34,108,807
    $94,249,838
    $151,479,447
    $262,807,486
    $370,539,0248%
    $14,441,544
    $68,205,343
    $119,203,512
    $218,270,395
    $314,068,57410%
    $(2,366,623)
    $45,879,743
    $91,521,670
    $180,078,151
    $265,657,574After Tax IRR2.50/lb Cu
    2.75/lb Cu
    3.00/lb Cu
    3.50/lb Cu
    4.00/lb CuIRR
    9.70%
    15.41%
    20.15%
    28.22%
    35.16%


The La Arena 2015 Technical Report also includes the
pre-feasibility study on La Arena Phase II (identified in the La Arena 2015
Technical Report and the reproduction of the Executive Summary section of the La
Arena 2015 Technical Report above as the Sulfide Project). The initial capital
for La Arena Phase II was estimated at US$314 million for the processing plant
and all associated infrastructure such as camp relocation, power, drainage
system, tailings facilities and contingency. An additional US$61.2 million was
allocated for sustaining capital during the 10 year mine life, for total
estimated capital of US$415.5 million (including $40 million mine closure), for
the 63Mt starter project.

The initial capital cost estimate from the La Arena 2015
Technical Report is summarized in the table below, with all costs stated in US
dollars with no provision for forward escalation of any costs. The base date of
the estimate is the fourth quarter of 2014. A fully detailed estimate, WBS and
estimate analyses are included as appendices to the La Arena 2015 Technical
Report.

|48 | Tahoe Resources Inc.
|-- | --------------------

---

Initial Capital Estimate SummaryWBS
    Level 1 Description
    Total US$M2000
    Mining
    $0.93000
    Process Plant
    $1254000
    Site Services and Utilities
    $11.35000
    Site Infrastructure
    $44.57000
    Project Preliminaries
    $32.38000
    Indirect Costs
    $54.59000
    Owners Costs
    $17.08800
    Provisions
    $28.6Total
    
    $314


For the economic model, sustaining capital of 2% of the process
plant, 1% of the site services and 1% of the internal infrastructure was
allocated annually to the project cash flow. Additionally, the following items
were included:

| |  | US$27.1 million were split between in years 4
      and 6 for waste dump expansion;
| | - | -----------------------------------------------------------------------------------
| |  | US$4.0 million for liners on Calaorco tailings
      facilities;                   
| |  | US$3.1 million for contingency on Sustaining
      Capital; and                    
| |  | US$40.0 million for mine closure on year 11.                                       

A total Sustaining Capital of US$61.2 million and Mine Closure
of US$40.0 million dollar are included in the financial model.

ECONOMIC ANALYSIS

Oxide Mineral Reserves at La Arena Gold Oxide
Mine

The annual cash flow and net present value (at a 5% discount
rate) from the La Arena 2015 Technical Report are presented in the table below.
The economic results show a total cash flow of US$218.6 million or a discounted
value of US$180.5M. The table below shows annual net cash flow and the
corresponding cumulative figures.

Net Cash Flow

|Net Cash
      Flow (After-Tax) (000 US dollars)
|-------------------------------------------------
|                                                 
|Pre Tax Cash Flow                                
|Taxes                                            
|After Tax Cash Flow                              
|Cumulative Cash Flow                             
|NPV (5%)                                         
|Cumulative NPV (5%)                              

The effects of changes in the major project assumptions and
estimates used in the La Arena 2015 Technical Report were evaluated using the
traditional approach of assessing variations in the metal prices, grades,
operating cost, capital expenditures and metallurgical recovery. The analysis
was carried out by changing the input parameters (±10%) within the cost model
and assessing the NPV (at a 5% discount rate) as shown in the table below.

|Annual Information Form for the Year Ended December 31,
      2016 | 49
|------------------------------------------------------------------ | --

---

Sensitivity
      Analysis on the NPVSensitivity Analysis on the 5% NPV (000 US
    dollars)Low Range
      (-10%)
    Base Case
    High Range (10%)Gold Price of US$1,150Inputs Variance (US$)
    1,035
    1,150
    1,265NPV (5%)
    114,317
    180,517
    245,781Grade Avg of 0.39Inputs Variance(g/t Au)
    0.35
    0.39
    0.42NPV (5%)
    114,552
    180,517
    245,565Opex Avg of $3.00 /tonne minedInputs Variance (/tonne mined)
    $2.70
    $3.00
    $3.30NPV (5%)
    244,266
    180,517
    116,767LOM Capex Avg of $107,582MInputs Variance
    $96,824
    $107,582
    $118,340NPV (5%)
    190,256
    180,517
    170,778LOM Recovery Avg of 83.99%Inputs Variance
    75.59%
    83.99%
    92.39%NPV (5%)
    114,552
    180,517
    245,565


Reserves at La Arena Phase II Sulfide Project

As previously stated, project capital of US$314 million was
estimated in the La Arena 2015 Technical Report for the processing plant and all
associated infrastructure for La Arena Phase II. An additional US$61.2 million
was allocated for sustaining capital during the 10 year mine life, for total
estimated capital expenditures of US$415.5 million (including US$40 million for
mine closure).

The sensitivity analysis on the NPV and IRR for La Arena Phase
II is shown in the table below:

|Sensitivity Analysis on the NPV and IRR
      (Sulfide Project)
|---------------------------------------------------------------
|                                                               
|                                                               
|0%                                                             
|4%                                                             
|6%                                                             
|8%                                                             
|10%                                                            
|                                                               
|                                                               
|IRR                                                            

INTERPRETATION AND CONCLUSIONS

The La Arena 2015 Technical Report contained the following
interpretation and conclusions:

| |  | The increase in the gold oxide Mineral Resource was
      primarily due to the definition of extra resource to the west and at depth
      in Calaorco, as a direct result of the 2014 drilling program.                                                                                                                                                                                                                
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | Oxide Mineral Reserves have increased due to the physical
      extension of the mineralization of the oxide deposit reflected in the new
      Mineral Resource estimates. The gold price of US$1,200 per ounce was not
      changed from the previous estimates and only costs were updated based on
      the performance of the year 2014.                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | The La Arena oxide mine continues to exceed budget
      expectations due to positive grade variances between resource models and
      mining, and the definition of additional resources at the mine.                                                                                                                                                                                                                 
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | The Sulfide Project reserve pit at 63 Mt is the starter
      pit which provides 10 years of steady mill feed at 18,000 tpd to the
      processing plant. The trade-off analysis conducted in Section 15 shows
      that this pit size represents the best discounted value for the project
      with lowest capital. However, this pit is only a portion of a potentially
      larger pit from the 274 Mt resource.

|50 | Tahoe Resources Inc.
|-- | --------------------

---

Based on the newly-refined geologic model of the La Arena
porphyry completed in 2016, the Company is currently in the process of
re-evaluating the Sulfide Project, including an updated resource estimate, and
anticipates completing an internal scoping study in 2017.

|THE SHAHUINDO
      MINE
|------------------------

RECENT ACTIVITIES AT SHAHUINDO

Construction of the Shahuindo Mine commenced early in the
second quarter of 2015, with commissioning of the mine and processing facilities
initiated in the fourth quarter of 2015. The Shahuindo Mine achieved commercial
production on May 1, 2016. All pre-operating revenues from production have been
credited against construction capital through April 30, 2016.

In 2016, the Shahuindo Mine produced a total of 48,414 ounces
of gold in doré. From May 1, 2016 through the end of 2016, a total of 8.45
million tonnes of ore and 6.42 million tonnes of waste were mined for a strip
ratio of0.76. A total of 4.58 million tonnes of ore at an average grade of 0.85
g/t Au from the open pit and existing stockpile were placed on the leach pad.

The mines Q3 2016 production, unit costs and profitability
were affected by severe drought conditions experienced in north-central Peru
beginning in the second quarter of 2016. As a result, the irrigation area on the
leach pad was temporarily reduced due to a decrease in the availability of
process water. Successful efforts to increase the permanent water supply during
Q3 and Q4 2016 have allowed the area under irrigation to return to planned
levels. Run-of-mine ore continued to be placed on the leach pads at planned
rates, which increased gold inventories in the heap to levels higher than
anticipated. The Company expects to lower heap inventory and increase gold
production over the next several quarters as a result of increased water
availability and operating improvements.

At January 1, 2017 Measured and Indicated Mineral Resources for
the Shahuindo oxide deposit totalled 138.1 million tonnes at an average grade of
0.50 g/t Au, containing 2.2 million ounces of gold. Proven and Probable Mineral
Reserves for the Shahuindo oxide mine totalled 110.3 million tonnes at an
average grade of 0.52 g/t Au, containing 1.9 million ounces of gold. Mineral
Resources and Mineral Reserves for the Shahuindo oxide mine were calculated by
applying the mine topographic surface at January 1, 2017 to an updated Mineral
Resource and Mineral Reserve estimates completed as of July 1, 2016.

HISTORY

Legal rights to the mineral leases of Shahuindo were in dispute
between 1996 and 2009. A number of Peruvian, Mexican and Canadian companies have
been involved in numerous legal processes that were eventually settled in 2009
with 100% ownership being legally registered to Shahuindo SAC (previously
Sulliden Shahuindo SAC), a wholly owned subsidiary of the Company.

Sulliden Shahuindo SAC entered into a Transfer of Mineral
Rights and Properties Contract, named Contrato de Transferencia de Propiedades
Mineras, with Compañia Minera Algamarca SA and Exploraciones Algamarca S.A
covering 26 mineral claims and 41 surface rights, which was formalized by public
deed dated November 11, 2002.

Subsequently, the vendors (Compañia Minera
  Algamarca SA and Exploraciones Algamarca SA), controlled by new stockholders and
  other companies of the same group, challenged the Transfer of Mineral Rights and
  Properties Contract and launched a number of judicial proceedings against
  Sulliden Shahuindo SAC. Sulliden Shahuindo SAC also commenced legal proceedings
  to confirm their rights under this agreement and a number of other judicial
  proceedings to protect its title to the Shahuindo property. In 2009, Sulliden
  Shahuindo SAC prevailed and maintained 100% of the mineral claims and surface
  rights.

In 2012 the NI 43-101 Technical Report on the Shahuindo Heap
Leap Project, Cajabamba, Peru was prepared on behalf of Sulliden Gold
Corporation which reported Mineral Resources and Mineral Reserves for the
Shahuindo Project. This report has since been superseded by the Shahuindo
Prefeasibility Study discussed herein.

In August 2014, Rio Alto acquired all of the outstanding shares
of Sulliden Gold Ltd. and became the owner of Shahuindo Mineral claims and
surface rights under their Peruvian subsidiary, Shahuindo SAC.

In April 2015, Tahoe completed an acquisition of Rio Alto,
acquiring control of Shahuindo SAC and the Shahuindo Mineral claims and surface
rights. Shahuindo SAC remains as Tahoes wholly owned operating company for the
Shahuindo Mine.

SHAHUINDO PREFEASIBILITY STUDY

Tahoe prepared the Shahuindo Prefeasibility Study in respect of
the following triggering events for the Shahuindo Mine:

| |  | The Mineral Resources and Mineral Reserves estimates have
      been updated as the result of data obtained from drilling and additional
      engineering studies conducted in 2014 and 2015. Mining studies incorporate
      updated cost estimates and financial analyses;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Tahoe has revised the mining strategy for the Shahuindo
      Mine; and                                                                                                                                                                                                       
| |  | Tahoe has conducted further metallurgical testing on the
      ore at Shahuindo and has revised the metallurgical assumptions and
      flowsheet for the project.                                                                                                            

|Annual Information Form for the Year Ended December 31,
      2016 | 51
|------------------------------------------------------------------ | --

---

The Shahuindo Prefeasibility Study has been completed having an
effective date of January 1, 2016. The effective dates of the Mineral Resources
estimate and Mineral Reserves estimate as reported in the Shahuindo
Prefeasibility Study are April 15, 2015 and November 1, 2015, respectively.
Unless otherwise noted, units are metric. The Shahuindo Prefeasibility Study has
been prepared in compliance with the disclosure and reporting requirements set
forth in NI 43-101, as well as with the Canadian Institute of Mining, Metallurgy
and Petroleums CIM Definition Standards - For Mineral Resources and Reserves,
Definitions and Guidelines (CIM Standards) adopted by the CIM Council on
December 2000 and modified in 2005 and 2010.

A more complete description of the Shahuindo Mine may be found
within the Shahuindo Prefeasibility Study, a copy of which is available on the
Companys profiles on SEDAR and EDGAR. Unless stated otherwise, information in
this section is summarized, complied, extracted or incorporated by reference
from the Shahuindo Prefeasibility Study. The Shahuindo Prefeasibility Study was
prepared in accordance with NI 43-101 by Qualified Persons. Defined terms used
in this summary shall have the meanings ascribed to such terms in the Shahuindo
Prefeasibility Study. The reference numbers of the tables and figures set out in
this section are those attributed by the Shahuindo Prefeasibility Study.
Technical information in this AIF relating to updates to the Shahuindo Mine
disclosure since the date of the Shahuindo Prefeasibility Study has been
verified by Charles Muerhoff, the Companys Vice President Technical Services
and Qualified Person as defined by NI 43-101. For a complete description of the
assumptions, qualifications and procedures associated with the following
information, reference should be made to the full text of the Shahuindo
Prefeasibility Study. Readers are encouraged to read the full Shahuindo
Prefeasibility Study.

Technical Report Highlights

Tahoe, through its wholly owned subsidiary, Shahuindo SAC, owns
and operates the Shahuindo Mine in Peru. The Shahuindo deposit is an
intermediate-sulfidation sediment-hosted epithermal gold-silver deposit which
the Company has initiated open pit mining and heap leaching of oxide ore. Metal
recovery is by carbon-in-column adsorption-desorption-refining (ADR) processes
which produces a gold-rich doré for sale to international refineries.

Construction of the Shahuindo Mine commenced in mid-2014, with
commissioning of the mine and processing facilities in the fourth quarter of
2015. The Company achieved commercial production at Shahuindo on May 1, 2016.

Production at Shahuindo is scheduled in two phases: Phase 1
processes run-of-mine (ROM, i.e., no crushing required) material at an initial
rate of 10,000 tpd in 2016; a second adsorption column circuit will be installed
in mid-2016 to increase the plant processing capacity to accommodate increased
mining rates. Phase 2 is scheduled to begin in mid- to late-2018 and continue
through the end of the current mine life with the plant capacity increased to
36,000 tpd to process mixed coarse- and fine-grain ore that requires crushing
and agglomeration prior to leaching. The phased approach enabled gold production
as soon as possible with minimal capital expenditure, thus generating cash flow
early in the project.

The prefeasibility study supports the declaration of Proven and
Probable Mineral Reserves. The study provides economic parameters for the
Shahuindo Mine from January 1, 2016 forward.

Highlights of the study include:

| |  | Measured and Indicated Mineral Resources of 143.1 million
      tonnes and 2.28 million oxide gold ounces at an average gold grade of 0.50
      gram per tonne (g/t);                                                                                                          
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Proven and Probable Mineral Reserves of 111.9 million
      tonnes at an average gold grade of 0.53 g/t, containing 1.91 million
      ounces of gold;                                                                                                                          
| |  | Average annual gold production (i.e., gold in doré) of
      78,000 ounces in the first two years of production (Phase 1) and 169,000
      ounces in years three through ten (Phase 2). Total gold produced in doré
      over the LOM is estimated to be 1.504 million ounces;
| |  | As of January 1, 2016, capital costs are estimated at
      $179.6 million for project (construction) capital and $140.7 million for
      sustaining capital over the LOM;                                                                                                     
| |  | After tax net present value at a 5% discount rate (NPV5)
      of $318.9 million and an internal rate of return (IRR) of 40.6% with a
      payback period of 4.1 years at the base case metal prices; and                                                                      
| |  | Exploration conducted by previous owners and by Tahoe
      demonstrates considerable potential to add additional gold ounces to the
      production profile at Shahuindo and has identified multiple exploration
      prospects in the district.                             

Mineral Resources and Mineral Resources reported in the
Shahuindo Prefeasibility Study used metal prices of $1,200/oz Au and $15/oz Ag.
Mineral Resources were reported within a $1,400/oz Au pit shell at a
gold-equivalent (AuEq) cut-off grade of 0.14 g/t. The financial analysis used
escalating metal prices over the LOM beginning with $1,100/oz Au in 2016 and
increasing in $100/oz increments annually to $1,400/oz Au in 2019 where it
remained constant through the end of the mine life. Likewise, silver prices used
were $14.75/oz in 2016, $17.25/oz in 2017, $20.00/oz in 2018, and $23.50/oz in
2019 and forward to the end of the mine life. Silver has a negligible
contribution to the mine economics.

MINERAL TENURE

The Shahuindo Mine comprises one mineral right, Acumulacion
Shahuindo, which includes 26 mineral titles 100% controlled by Tahoes wholly
owned subsidiary, Shahuindo SAC, and has an approximate area of 7,338.91
hectares. Shahuindo SAC also controls the neighboring Vikingo and Vinkingo I
concession covering 1,858 hectares.

|52 | Tahoe Resources Inc.
|-- | --------------------

---

The mining rights and surface rights are registered under the
name of Shahuindo SAC in the government title registry office of La
Superintendencia Nacional de los Registros Públicos (SUNARP). The mining claims
have no expiry date. All concessions are subject to an annual payment of $3 per
hectare to the Peruvian government. All claims are in good standing as of the
effective date of the Shahuindo Prefeasibility Study.

Shahuindo SAC has acquired 381 surface rights within the
Shahuindo Mine area to date, covering a total area of approximately 2,559
hectares. Some of these surface rights were used to relocate local land owners
into new areas. Shahuindo SAC also acquired additional surface rights outside
the mining concessions for the same process of relocating land owners. The
Company controls sufficient surface lands to accommodate the infrastructure
necessary to operate the Shahuindo mining project as envisioned in the Shahuindo
Prefeasibility Study.

Mineral Title Summary

N°
    Reg. Code
    Name
    Owner
    Area (Ha)27
    10025901
    VIKINGO I
    MINERA SULLIDEN PERU S.A.C.
    100028
    10026001
    VIKINGO
    MINERA SULLIDEN PERU S.A.C.
    90029
    010000411L
    ACUMULACION SHAHUINDO
    SHAHUINDO SAC
    7338.9




PERMITS

The Shahuindo Mine operates under an Environmental Impact
Statement (EIA, Estudio de Impacto Ambiental) approved in 2013. The EIA was
prepared according to MEM requirements and complies with Peruvian regulations.

As of the effective date of the Shahuindo Prefeasibility Study,
most required permits have been obtained, with the remaining permits in the
final stages of approval. The following list describes the status of the
required permits for operations as of January 1, 2016:

| |  | Certificate for the inexistence of Archaeological Remains
       Approval granted.
| | - | -----------------------------------------------------------------------------------
| |  | Environmental Impact Assessment - Approval granted.
      Expansion EIA in process.
| |  | Mine Closure Plan  Approval granted                                               
| |  | Beneficiation Concession  Approval granted.                                       
| |  | Water usage permit  Approval granted.                                             
| |  | Mining Plan  Final stage of evaluation with MEM.                                  
| |  | Operations Permits  In process; approvals
expected in January 2016.               

|Annual Information Form for the Year Ended December 31,
      2016 | 53
|------------------------------------------------------------------ | --

---

All permits and any new permits will be renewed or obtained as
required All remaining permits required for full operations were obtained in
early 2016.

ACCESS, CLIMATE, LOCAL RESOURCES AND PHYSIOGRAPHY

Access

The Shahuindo Mine is located in northern Peru approximately
970 kilometers by road north-northwest of Lima. The project site can be accessed
from Lima by traveling north on Highway 1 (Pan-American Highway) to Ciudad de
Dios, then east on Highway 8 to Cajamarca. The site is approximately 130
kilometers from Cajamarca via asphalt-paved highway (100 kilometers on Highway
3N), and gravel and dirt roads.

There are several seaports available to the Company for
equipment import  the Port of Callao in Lima, Port of Paita (northern Peru) and
Port Salaverry at Trujillo. There are daily flights between Lima and Cajamarca
on Peruvian national airlines.

Climate

Climate in the area is typical of the sierra region. It is cold
and dry during the dry season and humid during the rainy season. Rainfall
typically occurs between October and April (wet season), with occasional
sporadic showers in the other months. The average annual rainfall is about
1000mm with an extreme wet year having a rainfall of 1,550mm and an extreme dry
year receiving 449mm. The dry season months are May through September.

The average daily temperature is 15.7oC, reaching 23.1oC during
the day and decreasing to 7.5oC in the night. The average minimum temperature is
9.7oC and the average maximum temperature is 22.3oC.

Local Resources

The Shahuindo Mine is located in an economically depressed area
where subsistence agriculture is the main activity.

Manning requirements for the project are sourced according to
the Companys employment policy, with priority given to the local area, then
expanding to the surrounding communities, including Cajabamba, whenever
possible. More experienced and technical personnel have been recruited from
Cajamarca and from throughout Peru. The project currently employs approximately
1,300 people, with the majority of employees from within Cajamarca province.

Power for the operations will initially be from diesel
generators located on site. As the mine ramps up production, the site will be
connected to the trans-national 220 kV transmission line which was recently
completed and passes within 3 kilometers of the site. It is currently planned to
connect to line power in the second half of 2017, via a substation partially
built by Sulliden which will require upgrading. From 2018 while processing 36
ktpd, the project will consume up to a maximum of approximately 45 million kWh
of power per year. Maximum total demand power for the project is approximately
7.4MW. When the substation is completed, it will have an installed capacity of
40 MW.

The Shahuindo heap leach project will require a water supply
for mining; processing, camp and other support facilities. Water demand will be
highest during the dry season. During an average dry season, Anddes predicted
the maximum water requirement to be up to 12.7 liters per second (L/s) in the
dry season for the initial phase of operations (Anddes, 2015j). From January
2018, when the project ramps up to 36 ktpd and the primary leach pad is
commissioned (Pad 2B), the operating flow for leaching activities is estimated
to be as high as 39.9 L/s (Anddes, 2015c). Most of this water will be recycled
through the closed circuit leach pad - pregnant solution pond - adsorption
circuit - barren solution pond - leach pad.

Physiography

The Shahuindo site is located on the west side of the
Condebamba River valley. The topography varies from rolling hillsides to steep
ravines. Elevation across the project varies from 2,400 metres above sea level
to 3,600 metres above sea level. The project area is classified as neo-tropical
Peruvian Yungas by the World Wildlife Fund.

GEOLOGIC SETTING AND MINERALIZATION

The Shahuindo deposit is located on the eastern flank of the
Andean Western Cordillera in northern Peru, within a regional fold and thrust
belt of predominantly sedimentary rocks. The region is particularly well-endowed
with mineral occurrences varying from low-to-high sulfidation systems and from
porphyry through polymetallic to epithermal deposits.

Mineralization at Shahuindo is best described as an
intermediate-sulfidation epithermal system, though high-sulfidation
mineralization occurs at depth and in the core of hydrothermal breccias.
Oxidation of mineralization extends to a depth of 150 metres below surface. In
the weathered oxide facies, gold and silver are associated with the presence of
jarosite and hematite. In the underlying fresh sulfide facies, gold is typically
extremely fine grained with the related mineral species not yet identified.

The principal zone of mineralization in the Shahuindo district
occurs in a belt between two large-amplitude regional-scale folds, the Algamarca
anticline and the San Jose Anticline. The Algamarca anticline is upright and
symmetrical with amplitude of at least 400m, whereas the San Jose fold is an
asymmetric, overturned, northeast-vergent fold with a shallowly dipping axial
surface and amplitude of at least 300m. Important structural elements include
fold limbs and fold axial surfaces, fold-related fractures, faults and related
extension fractures, breccia dikes and irregular bodies, and igneous intrusive
contacts.

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Both structure and lithology control the location, shape, and
orientation of the mineralization. The mineralization is hosted within the
siliciclastic sandstone-dominant Farrat Formation and the underlying sedimentary
Carhuaz formation. These sedimentary rocks have been intruded by at least three
felsic stocks which tend to be located along faults and cores of anticlinal
structures. In addition, the metallurgical recovery of gold is affected by
lithology with the identification of five primary geometallurgical domains based
on the relationship between lithology and grain size and gold recovery.
Modelling the distribution and occurrence of lithologic units / geometallurgical
domains is critical to mine planning.

DEPOSIT TYPE

The Shahuindo deposit formed in a predominantly
intermediate-sulfidation epithermal system of probable Miocene age.
Distinguishing characteristics of an intermediate-sulfidation environment
include mineral assemblages indicating a sulfidation state between those of high
and low sulfidation types, relatively high total sulfide content of five to ten
percent in the sulfide environment, presence of silver sulfosalts, and
association with andesitic to dacitic volcanics. Magmatic associated fluids are
implied. There is no evidence of adularia at Shahuindo, thus ruling out a
low-sulfidation environment. There are some observances of enargite at depth,
suggesting a mixed intermediate- to high-sulfidation system.

EXPLORATION

Prior to 1990, exploration was conducted by Algamarca on the
Shahuindo property though no public records are available to provide details of
Algamarcas work. From 1990 to 1998, Alta Tecnología e Inversión Minera y
Metalúrgica SA (Atimmsa), Asarco LLC (Asarco), and Southern Peru Copper Corp.
(Southern Peru) explored the Shahuindo Project area, completing mapping,
geochemical sampling, and reverse circulation (RC) and core drilling.

Val Dór Geofisica Peru conducted magnetic and induced
polarization geophysical surveys between 2002 and 2012 on behalf of the prior
owners of Shahuindo. There have been no additional geophysical surveys completed
on the concession since the acquisition of the deposit by Rio Alto in 2014.

Most of the accessible underground adits located on the
concession were sampled prior to 2012. Where possible, samples were taken from
the adit portal and along the accessible portion of the tunnel. Most samples
were vertical and non-continuous. Approximately 140 small adits were sampled.

Detailed soil sampling completed by Sulliden between 2003 and
2012 revealed a series of continuous, parallel gold anomalies in the central and
northern areas of the concession. Base metal anomalies were found to the
northwest and to the southeast of the concession.

The present exploration strategy at Shahuindo utilizes
relatively standard exploration techniques that include detailed surface
geologic mapping, surface geochemical sampling, and drill testing. The most
effective exploration tool at Shahuindo has been core and RC drilling. Samples
have also been collected from underground workings in the northern portion of
the project area which has seen exploitation by informal miners.

Several targets proximal to the Shahuindo deposit have been
identified in the district from geophysical surveys, prior informal mining
operations, surface mapping and geochemical sampling, and drilling.

The focus on the 2014-2015 exploration was to infill drill the
existing resource/reserve. Exploration during 2016 focused on step-out drilling
to define the margins of the current resource and identify new zones peripheral
to the current pit; at the San Lorenzo and Choloque zones north of the Shahuindo
starter pit, the El Sauce zone southeast of the pit and the San Jose zone on the
extreme northwest margin of the Shahuindo resource.

During 2016 reconnaissance work comprising prospecting,
sampling and trenching was carried out in areas north and northwest of Shahuindo
to identify additional early-stage district targets.

DRILLING

A total of 1,039 holes drilled by Atimmsa, Asarco, Southern
Peru, Sulliden and Tahoe were used to model and estimate the resource at
Shahuindo. Reverse circulation (RC) (604 holes) and diamond drilling (435 holes)
have both been carried out on the property. The cut-off date for drill data
inclusion in the resource model was April 15, 2015. The table below is a summary
of the drilling included in the resource model.

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Shahuindo Drilling Summary

Company
    Year
    Diamond Core
    Reverse Circulation
    Total Drill
    TotalNo.
    Meters
    No.
    Meters
    Holes
    MetersAttimsa
    1992
    -
    -
    11
    744
    11
    744Asarco
    1994-1996
    55
    8,105
    31
    3,681
    86
    11,786Southern Peru
    1997-1998
    16
    1,818
    80
    9,755
    96
    11,573Sulliden
    2003-2012
    352
    72,913
    248
    42,477
    600
    115,389Rio Alto
    2014-2015
    12
    1,258
    234
    23,264
    246
    24,522Total
    1992-2015
    435
    84,094
    604
    79,921
    1,039
    164,015


The majority of the RC drilling completed by Rio Alto in 2014
and 2015 was within the current resource. The database also includes twelve
diamond core holes that were drilled for geotechnical purposes and subsequently
sampled for analyses. The majority of the drilling in the oxide domain within
the resource is on a nominal spacing of 25m x 25m due to the extensive RC infill
programs conducted in 2014 and 2015.

Upon its acquisition of Rio Alto in April 2015, Tahoe has
continued drilling diamond core and RC for infill, step-out, geotechnical,
hydrology, and condemnation purposes.

From April 15, 2015 (the cut-off date for inclusion of drill
data in the resource estimate) through December 31, 2015, Tahoe continued infill
drilling within the current resource and pit shell, step-out drilling to expand
the resource, geotechnical, metallurgical and condemnation drilling in support
of operations, and exploration drilling at the proximal San Lorenzo, La Chilca,
and Choloque targets. Post-resource drilling completed by Tahoe in 2015 includes
180 core and RC holes totaling 32,717 meters.

In 2016 exploration at Shahuindo focused on step-out drilling
to define the margins of the current resource and identify new zones peripheral
to the current pit. A total of 115 holes for 17,703 metres were drilled in the
San Lorenzo, Choloque, El Sauce and San Jose targets.

SAMPLE PREPARATION, ANALYSIS AND SECURITY

Tahoe has limited information about sample preparation and
analyses for the drill programs prior to the major drill programs by Sulliden
beginning in 2003. The drilling prior to Sullidens work is considered to be a
minimal risk to the estimate of Mineral Resources, as this dataset accounts for
only 15% of the data used in the estimate and many of the holes drilled prior to
Sulliden have been twinned or offset with new drill holes.

From 2003 to 2012, Sullidens sampling and sample dispatch for
the Shahuindo Project were carried out under the supervision of Sulliden staff.
Samples were sent to ALS Minerals (ALS, formerly known as ALS Chemex) in Lima
for sample preparation and analysis. Samples were prepared and analyzed using
industry-standard practices, including the use of quality assurance and quality
control (QA/QC) duplicates, blanks, and assay standards. The ALS laboratory in
Lima is ISO 9001:2008 and ISO 17025:2005 certified.

Samples from Rio Altos 2014-2016 drill programs were analyzed
by CERTIMIN (Lima). Gold was assayed with a 50-gram fire assay using an atomic
adsorption finish. Fire assays were repeated using with a gravimetric finish for
samples whose initial fire assay results were greater than 10 g/t Au. Rio Alto
employed a QA/QC program of field duplicates, blanks and assay standards. The
CERTIMIN laboratory is ISO 9001 certified for geochemical, metallurgical and
environmental sample analyses. Tahoe continues to use the CERTIMIN laboratory in
Lima as its primary assay lab for its continued drilling at the Shahuindo Mine.

Drill core and RC sampling procedures, sample analyses, QAQC
procedures and sample security employed at Shahuindo are of sufficient quality
for use in the resource estimate.

DATA VERIFICATION

Tahoe conducted an audit of the 2014-2015 Rio Alto assay
database (data through April 15, 2015) by comparing the analytical results
reported in the hard copy certificates received from the laboratory (CERTIMIN)
to the digital database used for the resource estimate. Tahoe compared 100% of
the gold and silver assays in the database against the laboratory certificates
with no errors detected.

The QA/QC programs conducted on the Shahuindo samples and the
multiple database audits are sufficient to ensure that the data used in the
resource estimate is valid. While there are some discrepancies regarding the
silver standards used by Rio Alto in 2014 and 2015, this is not considered
material as silver has a negligible contribution to the economics of the
project.

|56 | Tahoe Resources Inc.
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MINERAL PROCESSING AND METALLURGICAL TESTING

The mineral processing and metallurgical testing that included
cyanidation and flotation testing programs have been conducted on composite
samples from the Shahuindo Mine by various companies starting in 1996. These
companies include Asarco, Compania Minera Algamarca, Sulliden, Rio Alto and
Tahoe, with test work conducted at Dawson Metallurgical Laboratories, Kappes,
Cassiday & Associates (KCA), Heap Leach Consultants (HLC), SGS and Tahoes
La Arena laboratory.

Results from the cyanidation tests conducted by KCA from 2009
to 2012 and in 2014, and by Tahoe (Rio Alto) in 2014 and 2015 on core drill hole
and surface composites were used in the development of the recovery and leach
design parameters for use in the prefeasibility study. The results of the
testing program indicate excellent gold recoveries at both run-of-mine (ROM) and
coarse crush sizes with low to moderate reagent requirements, implying
amenability to heap leaching. Silver recoveries were generally low.

Compacted permeability tests on -25mm crushed samples were
conducted, both with and without cement. The results are variable with one-third
of the tests conducted in 2015 failing. The results from KCAs compacted
permeability tests on -32mm composites conducted in 2012 indicated that mixing
of the more weathered samples with competent material would be required to
maintain permeability at 6 kg of cement per tonne of ore. Two of the three KCA
tests passed the compacted permeability tests at a simulated heap height of
approximately 110 meters.

Maintaining heap permeability and minimizing channeling at
higher heap heights in the life of mine leach pads will require crushing and
agglomeration of the ore. Tahoe will implement crushing and agglomeration in two
stages beginning in Q3 2017, with the first stage designed to operate at a
nominal 12,000 tpd rate through mid-2018. Expansion of the crushing and
agglomeration circuit to 36,000 tpd is expected in mid-2018. The Company is in
process of conducting further test work on the agglomeration circuit to augment
existing test work to maximize recovery and determine the maximum leach pad
height.

MINERAL RESOURCE ESTIMATE

The Mineral Resource estimate has been classified as Measured,
Indicated and Inferred based on the confidence of the input data, geological
interpretation and grade estimation parameters. The Mineral Resource estimate
was prepared in accordance with NI 43-101, and classifications adopted by the
CIM Council.

The January 1, 2017 estimate of oxide Mineral Resources for the
Shahuindo deposit contains Measured and Indicated Mineral Resources of 138.1
million tonnes at average grades of 0.50 g/t Au and 6.8 g/t Ag, containing 2.2
million ounces of gold and 30.3 million ounces of silver. Inferred Mineral
Resources for the oxide deposit total 3.5 million tonnes at average grades of
0.46 g/t Au and 8.3 g/t Ag; containing 52.7 thousand ounces of gold and 938.4
thousand ounces of silver. The effective date of the Shahuindo Mineral Resource
oxide estimate is January 1, 2017. Sulfide resources, which have not been
updated since the January 25, 2016 Shahuindo Prefeasibility Study, total 87.7
million tonnes at average grades of 0.71 g/t Au and 21.1 g/t Ag, containing 2.0
million ounces of gold and 59.4 million ounces of silver. All sulfide resources
are classified as Inferred Mineral Resources.

The table below shows a summary of the Shahuindo Mineral
Resources at January 1, 2017 using cut-off grades for oxide material of 0.15 g/t
Au and sulfide material of 0.50 g/t AuEq.

Shahuindo Mineral Resources at January 1, 2017

Material
      Type
    Resource Classification
    Tonnes
      (M)
    Au
      (g/t)
    Ag
      (g/t)
    Au Ounces
      (koz)
    Ag Ounces
      (koz)**Oxide**
    Measured MineralResources
    94.4
    0.50
    6.8
    1,518
    20,669Indicated Mineral Resources
    43.7
    0.50
    6.8
    705.3
    9,615Measured and
      IndicatedMineral Resources
    138.1
    0.50
    6.8
    2,223
    30,284Inferred Mineral Resources
    3.5
    0.46
    8.3
    52.8
    938Sulfide
    Inferred Mineral Resources
    87.7
    0.71
    21.1
    2,002
    59,441


Totals may not sum due to rounding

Oxide resources are reported within a $1,400/oz Au optimized
open pit shell.

The sulfide Mineral Resources at Shahuindo are classified
entirely as Inferred due to limited metallurgical characterization and wider
drill spacing than in the oxide portion of the deposit. There have been no
economic or mining studies of the sulfide portion of the Shahuindo deposit
completed to date; the Inferred sulfide resource is reported at a 0.5 AuEq g/t
cut-off using metal prices of $1,200/oz gold and $14/oz silver.

The drill data used for the estimate of oxide Mineral Resources
and sulfide Mineral Resources includes data from all drilling completed through
June 2016 and April 2015, respectively. The drill hole information includes
collar location, downhole survey, assay, lithology and oxidation data.

Lithological, oxidation and structural models were created to
model the distribution of mineralization to the pertinent geologic domains. Gold
mineralization domains were created using a 0.1 g/t Au cut-off; these domains
were used as hard boundaries to constrain the grade estimate. Silver values have
been estimated inside the gold domains. A suite of other elements were also modeled and estimated into the block
model, including sulfur, copper, lead, zinc, arsenic, molybdenum, calcium, total
iron, sodium and manganese. The economic contribution of these elements is not
material to the project.

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MINERAL RESERVE ESTIMATE

The Shahuindo Mineral Reserve estimate has been classified as
Proven and Probable, applying applicable mining, metallurgical, economic,
permitting, and other relevant factors to the Measured and Indicated Mineral
Resources. The Mineral Reserve estimate was prepared in accordance with NI
43-101, and classifications adopted by the CIM Council. The Shahuindo Proven and
Probable Mineral Reserves total 110.3 million tonnes of oxide material at
average grades of 0.52 g/t Au and 6.8 g/t silver; containing 1.9 million ounces
of gold and 24.2 million ounces of silver at cut-off grades of 0.25 g/t Au for
2017 and 2018 planned production and 0.18 gpt Au for production forecasted
beyond 2018. Mineral Reserves are inclusive of Mineral Resources. There are no
sulfide Mineral Reserves reported. The effective date of the Shahuindo Mineral
Reserve is January 1, 2017. The Shahuindo Mineral Reserve estimate is summarized
in the table below:

Shahuindo Mineral Reserve at January 1, 2017

Reserve
      Classification
    Tonnes (M)
    Au
      Grade (g/t)
    Ag
      Grade (g/t)
    Au
      Ounces (000s)
    Ag
      Ounces (000s)Proven Mineral Reserve
    78.8
    0.52
    6.8
    1,290
    16,760Probable Mineral Reserve
    33.5
    0.53
    7.0
    569
    7,477Proven & Probable Mineral Reserve
    110.3
    0.52
    6.8
    1,859
    24,238


Totals may not sum due to rounding

Metal prices used for reporting Mineral Reserves are $1,200 per
ounce gold and $18 per ounce silver. The Mineral Reserve estimate does not
include process recovery factors or plant losses.

The cut-off grade for the Mineral Reserves was calculated from
operating costs experienced at the Shahuindo Mine, the estimated metallurgical
performance sourced from test work and engineering first principles. Proven and
Probable Mineral Reserves include five percent dilution at zero grade and mining
losses of two percent. Resources within the mine plan classified as Inferred
were considered to have no economic value and have been classified as waste in
the mining schedule.

MINING METHODS AND MINE PRODUCTION SCHEDULE

The Shahuindo Mine is an open pit heap leach operation. The
mining method used is a conventional drill/blast, shovel and dump truck
operation.

The mining schedule at Shahuindo consists of two phases. The
first phase entails mining higher grade starter pits providing ROM material to
the phase 1 leach pads in 2016 through mid-2018; the average mining rates in
2016 and 2017 are approximately 15,800 tonnes of ore per day and 15,300 tonnes
of ore per day, respectively. The second phase of the operation includes
increased plant capacity and an additional leach pad. The mining rate in phase 2
increases production to meet the expanded plant capacity of 36,000 tonnes of ore
per day, which will require an upgraded mining fleet.

The LOM production schedule from the Shahuindo Prefeasibility
Study forecasts the Shahuindo Mine to produce and deliver to the processing
facilities a total of 110.9 million tonnes of ore at an average gold grade of
0.53 g/t, and average silver grade of 6.86 g/t. The LOM plan from the Shahuindo
Prefeasibility Study is summarized in the table below.

Life of Mine Mining Schedule

Unit
    2016
    2017
    2018
    2019
    2020
    2021Ore Tonnes
    k tonnes
    5,756
    5,602
    10,289
    13,412
    13,039
    12,352Au Grade
    g/t
    0.68
    0.54
    0.64
    0.48
    0.48
    0.51Ag Grade
    g/t
    5.95
    5.73
    7.24
    6.45
    7.05
    6.47Waste Tonnes
    k tonnes
    4,954
    4,113
    21,835
    18,895
    19,246
    19,893Strip Ratio
    waste:ore
    0.86
    0.73
    2.12
    1.41
    1.48
    1.61Total Tonnes
    k tonnes
    10,710
    9,715
    32,124
    32,306
    32,285
    32,245Au Mined
    k oz
    126
    97
    212
    206
    200
    201Ag Mined
    k oz
    905
    1,090
    2,524
    2,741
    2,954
2,568


Unit
    2022
    2023
    2024
    2025
    TotalOre Tonnes
    k tonnes
    16,066
    14,405
    12,732
    7,236
    110,890Au Grade
    g/t
    0.50
    0.59
    0.52
    0.49
    0.53Ag Grade
    g/t
    7.79
    7.16
    6.36
    7.30
    6.86Waste Tonnes
    k tonnes
    16,395
    15,922
    17,497
    11,106
    149,855Strip Ratio
    waste:ore
    1.02
    1.11
    1.37
    1.53
    1.35Total Tonnes
    k tonnes
    32,461
    30,327
    30,230
    18,342
    260,485Au Mined
    k oz
    258
    273
    215
    113
    1,900Ag Mined
    k oz
    3,599
    3,143
    2,663
    2,246
24,470


|58 | Tahoe Resources Inc.
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PROCESSING

Gold from the Shahuindo Mine is extracted from the ore via heap
leach and then processed by carbon-in-column, adsorption-desorption-refining
(ADR) operations. The civil and geotechnical design of the leach pads were
engineered by Anddes Asociados SAC; the process plant was engineered by Heap
Leaching Consulting SAC, both of Lima, Peru.

The start-up production plan for the processing of Shahuindo
ore is 10,000 tpd (Phase 1) with processing capacity expanded early in the
second half of 2016. Average processing rates in 2016 and 2017 are about 12,200
tonnes of ore per day and 16,500 tonnes of ore per day, respectively. The
process plant facilities will be further expanded in Phase 2 to 36,000 tpd. The
Phase 2 expansion to be implemented in 2018 will include a crushing and
agglomeration circuit that includes a single-stage crusher and screen, cement
and lime addition to the fines, agglomeration in belt conveyors and stacking
system to place ore onto the leach pad.

The Shahuindo Mine is scheduled to produce a total of 1.5
million ounces of gold and 2.8 million ounces of silver in doré over a ten year
period. The table below summarizes the life of mine process plant throughput
schedule and ounce production as reported in the Shahuindo Prefeasibility Study.

**Life of Mine Process Plant Throughput**

|                          | Unit     | 2017   | 2018   | 2019   | 2020   | 2021   
|------------------------- | -------- | ------ | ------ | ------ | ------ | -------
|Heap Leach Process Tonnes | k tonnes | 6,022  | 11,179 | 13,000 | 13,039 | 12,352 
|Process Au Head Grade     | g/t      | 0.52   | 0.60   | 0.48   | 0.48   | 0.51   
|Process Ag Head Grade     | g/t      | 5.63   | 6.84   | 6.56   | 7.05   | 6.47   
|Au ounces recovered       | k oz     | 74.1   | 172.9  | 161.8  | 160.0  | 160.8  
|Ag ounces recovered       | k oz     | 76.3   | 294.9  | 328.9  | 354.5  | 308.2  
|                          | Unit     | 2022   | 2023   | 2024   | 2025   | Total  
|Heap Leach Process Tonnes | k tonnes | 13,140 | 13,140 | 13,140 | 11,431 | 110,890
|Process Au Head Grade     | g/t      | 0.55   | 0.62   | 0.52   | 0.41   | 0.53   
|Process Ag Head Grade     | g/t      | 8.52   | 7.44   | 6.30   | 6.28   | 6.86   
|Au ounces recovered       | k oz     | 186.5  | 209.5  | 174.5  | 120.8  | 1,503.7
|Ag ounces recovered       | k oz     | 431.9  | 377.2  | 319.6  | 276.9  | 2,834.2

INFRASTRUCTURE

The Shahuindo Mine is approximately 25 kilometers by road from
the town of Cajabamba and 130 kilometers by road from the town of Cajamarca.
Access from Cajamarca is via asphalt-paved highway and gravel and dirt roads.

During Phase 1 operations, power at the site is provided by
on-site diesel generation capable of sustaining 1.2 MW of power. In 2018, power
will be provided via the National Commercial Grid. The long term power
requirement for the Shahuindo Mine is 7.4MW.

All process and domestic water for the operation is currently
from an 18,000 cubic meter rainwater run-off collection pond, a series of water
wells. Additional process water will be supplied from pit dewatering.

At the effective date of the Shahuindo Prefeasibility Study,
buildings required for the initial start-up were in place and tailored for Phase
1 production. Some of the infrastructure from Phase 1 will be upgraded before
Phase 2 production commences.

CLOSURE

The entire facility was designed with closure in mind to the
greatest extent practicable. The facilities are designed and operated to
minimize the footprints and areas of disturbance and utilize the most advanced
planning and reclamation techniques available. The disturbance footprint of
Shahuindo Mine site is approximately 1,348 Ha. Reclamation will commence as soon
as practical during operations by placing salvaged topsoil on outer slopes and
encouraging vegetation.

CAPITAL AND OPERATING COSTS

The operating costs for the Shahuindo Mine were calculated for
each year during the life of mine using the forecasted annual production
tonnages. The mining, processing and site general and administration (G&A)
costs were derived from first principals, or based on operating costs
experienced at Tahoes La Arena Mine which is comparable to the Shahuindo Mine.

The table below includes the summary of the anticipated
life-of-mine costs as presented in the Shahuindo Prefeasibility Study.

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      2016 | 59
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Operating Cost Summary

Operating
      Cost
    ValueMining Cost ($/tonne mined)
    $1.91Mining Cost ($/ore tonne mined)
    $4.50Process Plant Operating Cost ($/tonne
      processed)
    $2.55General Administration ($/tonne processed)
    $2.23


*includes $1.42/tonne ore for crushing and agglomeration
beginning in 2018

The capital expenditure requirement for the Shahuindo Mine is
$320.3 million beginning on January 1, 2016. This includes construction capital
of $179.6 million and $140.7 million in sustaining capital. Capital expenditures
incurred prior to January 1, 2016 were considered as sunk costs.

The project capital as presented in the Shahuindo
Prefeasibility Study is summarized in the table below. The total project capital
carried in the financial model for new construction is expended over a three
year period.

Project Capital

Project Capital
    $
      (millions)Mining
    $27.5Process Plant
    $105.6Other
    $46.6Total
$179.6


Construction of the mine camp, offices, commissary and other
ancillary facilities are complete and currently in use. Project capital includes
construction of the second leach pad (pad 2A), which was completed in Q4 2016.
The solution canal connecting pad 2A to the existing pad was completed in Q3
2016. Construction of the life-of-mine waste dump facility platform and
foundation is in progress as is preparation for additional haul roads.

Engineering for the 12,000 tpd crushing and agglomeration
circuit has been completed; equipment fabrication and procurement is ongoing
with initial equipment deliveries to the site beginning in Q4 2016. Site layout
definition, earthworks and civil works engineering are complete. The Company
completed the permitting process for the 12,000 tpd operation during Q1 2017,
with commissioning of the circuit anticipated in Q3 2017.

ECONOMIC ANALYSIS

The Shahuindo Mine economic analysis presented in the Shahuindo
Prefeasibility Study indicates that the project has an IRR of 40.6% with a
payback period of 4.1 years after taxes and an after-tax NPV using a five
percent discount rate (NPV5) of $318.9M after taxes.

Sensitivity analyses were conducted using changes in metal
prices, operating cost, initial capital, and recovery; the results of which are
summarized in the table below. Changes to metal prices have the greatest impact
on the NPV and IRR of the project.

Sensitivity Analysis  NPV and IRR after Taxes (All Values in
$000s)

Variable
    Change
    NPV @
      0%
    NPV @
      5%
    NPV @
      10%
    IRR%
    PaybackChange in Metal Prices
    +20%
    $723,045
    $508,619
    $362,690
    67.7%
    3.3+10%
    $597,309
    $413,960
    $289,289
    53.1%
    3.6Base Case
    $471,200
    $318,863
    $215,413
    40.6%
    4.1-10%
    $342,701
    $221,333
    $139,143
    29.0%
    4.8-20%
    $202,022
    $113,741
    $54,457
    17.1%
    6.1Change in Operating
      Cost
    +20%
    $348,725
    $225,158
    $141,508
    29.0%
    4.9+10%
    $411,022
    $273,026
    $179,417
    34.8%
    4.4Base Case
    $471,200
    $318,863
    $215,413
    40.6%
    4.1-10%
    $530,361
    $363,820
    $250,632
    46.7%
    3.8-20%
    $588,728
    $407,955
    $285,031
    53.1%
    3.6Change in Total Capital
    +20%
    $409,200
    $263,661
    $165,625
    29.1%
    4.8+10%
    $440,142
    $291,213
    $190,477
    34.2%
    4.5Base Case
    $471,200
    $318,863
    $215,413
    40.6%
    4.1-10%
    $502,354
    $346,596
    $240,419
    49.0%
    3.7-20%
    $533,592
    $374,233
    $265,224
    60.2%
3.4


|60 | Tahoe Resources Inc.
|-- | --------------------

---

Variable
    Change
    NPV @ 0%
    NPV @ 5%
    NPV @ 10%
    IRR%
    PaybackChange in Metal
      Recovery
    2%
    $508,599
    $347,156
    $237,466
    44.2%
    3.91%
    $489,905
    $333,014
    $226,443
    42.4%
    4.0Base Case
    $471,200
    $318,863
    $215,413
    40.6%
    4.1-1%
    $452,456
    $304,682
    $204,358
    38.9%
    4.2-2%
    $433,662
    $290,459
    $193,265
    37.2%
    4.3


SHAHUINDO FINANCIAL MODEL

The life of mine base case assumptions for the Shahuindo
financial model are summarized in the table below:

LOM Base Case Summary - Assumptions

Production
      Statistics
    Base CaseMineOre (ktonnes)
    110,890Gold Grade (g/t)
    0.53Silver Grade (g/t)
    6.86Contained Gold (kozs)
    1,900Contained Silver (kozs)
    24,470Waste (ktonnes)
    149,855Total Tonnes Mined (ktonnes)
    260,745ProcessingOre Placed on Pad (ktonnes)
    110,890Gold Production (kozs recovered)
    1,504Silver Production (kozs
      recovered)
    2,834Gold Recovery
    79%Silver Recovery
    12%Revenues, Capital Cost & Operating
      CostRevenues ($000)
    $2,110,507Project Capital ($000)
    $179,629Sustaining Capital ($000)
    $140,676Mining Cost ($/tonne mined)
    $1.91Mining Cost ($/ore tonne mined)
    $4.50Process Plant Operating Cost
      ($/tonne processed)
    $2.55General Administration ($/tonne
      processed)
    $2.23Treatment & Transportation
      Charges ($/tonne processed)
    $0.06Total Operating Cost ($/tonne
      processed)
    $9.28Economic Indicators before TaxesNPV @ 0% ($000)
    $667,385NPV @ 5% ($000)
    $462,203NPV @ 10% ($000)
    $322,836Economic Indicators after TaxesNPV @ 0% ($000)
    $471,200NPV @ 5% ($000)
    $318,863NPV @ 10% ($000)
    $215,413IRR
    40.6%Payback (yrs)
    4.1


CONCLUSIONS AND RECOMMENDATIONS

The results of this study demonstrate that:

| | 1. | The Shahuindo Mine is economically viable from January 1,
      2016 through to the end of the estimated mine life, supporting the
      declaration of Proven and Probable Mineral
Reserves;
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Annual Information Form for the Year Ended December 31,
      2016 | 61
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| | 2. | The Shahuindo mining strategy consists of two phases. The
      first phase will process ROM ore at an initial rate of 10,000 tonnes of
      ore per day, ramping up to an average of 12,200 tonnes of ore per day in
      2016 and 16,500 tonnes of ore per day in 2017; the second phase will
      include a crushing and agglomeration circuit that will increase production
      to 36,000 tpd. The phased approach enables gold production as soon as
      possible with minimal capital expenditure, generating cash flow early in
      the project;
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 3. | The results of laboratory testing program indicate
      excellent gold recoveries at both ROM and moderate crush sizes with low to
      moderate reagent requirements, implying amenability to heap leaching.
      Silver recoveries are generally low; and                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 4. | The Shahuindo district holds excellent opportunities for
      further discovery and definition of additional oxide and sulfide
      mineralized bodies that have potential to increase the resource base at
      Shahuindo.                                                                                                                                                                                                                                                                                                                                  

After reaching commercial production, the Shahuindo
Prefeasibility Study recommends the Company systematically evaluate mining,
processing and other surface operations to optimize processes and procedures and
reduce capital and operating costs. Examples include the following trade-off
studies to evaluate:

| | 5. | the potential to reduce or eliminate the requirement for
      the crushing and or agglomeration circuit, and the impact to metal
      recoveries;                       
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                           
| | 6. | the economic benefit of implementing a secondary crushing
      circuit to increase recovery;                                                                             
| |    |                                                                                                                                                                           
| | 7. | the potential to increase the overall slope angle of the
      pit to increase the NPV of the project through further geotechnical and
      hydrogeological analyses; and
| |    |                                                                                                                                                                           
| | 8. | the potential to reduce operating costs by evaluating the
      suitability by backfilling mined waste rock into the
pit.                                                 

|THE BELL CREEK
      COMPLEX
|----------------------------

The Bell Creek Complex, which includes the Bell Creek Mine and
the Bell Creek Mill, was acquired by Tahoe on April 1, 2016 as part of Tahoes
acquisition of Lake Shore. Information relating to the Bell Creek Complex,
including Mineral Resources and Mineral Reserves as at January 1, 2017, is set
out below. The information in this section is supported by a technical report
prepared for Lake Shore in compliance with NI 43-101 entitled NI 43-101
Technical Report, Updated Mineral Reserve Estimate for Bell Creek Mine, Hoyle
Township, Timmins, Ontario, Canada dated March 27, 2015 (the Bell Creek
Technical Report.)

Technical information in this AIF relating to updates to the
Bell Creek Complex disclosure since the date of the Bell Creek Technical Report
has been verified by Charles Muerhoff, the Companys Vice President Technical
Services and Qualified Person as defined by NI 43-101.

RECENT ACTIVITIES AT THE BELL CREEK MINE

On May 3, 2016, the Board of Directors of Tahoe approved the
Bell Creek Shaft Project (the Shaft Project). The Shaft Project, which is
expected to be completed in mid-2018, will extend the shaft from approximately
300 metres currently to the 1080 metre level elevation, and equip the shaft to
hoist ore and waste. The project is being completed to increase production,
lower unit costs, extend mine life and allow for accelerated delineation of the
deep resources as well as exploration at depth. The Shaft Project is anticipated
to cost approximately $80 million.

The Shaft Project achieved significant progress in 2016. Mobile
equipment was received and lateral development on the first two of five horizons
was completed. Vertical development commenced from the 535 metre level towards
the 300 metre level via mechanized raise climbing method. The existing, dormant
hoisting plant was audited, yielding only minor deficiencies. Repairs to the
plant have been completed and the hoist is ready to support rehabilitation of
the existing shaft. Engineering and procurement is progressing on schedule. Site
infrastructure work has also commenced in preparation for the civil works around
the new hoisting plant and electrical substation footprint.

Construction of the Phase 4 North tailings facility expansion
at the Bell Creek Mill was completed at the end of Q3 2016.

In November 2016, Lake Shore signed an IBA relating to the Bell
Creek Mine and surrounding properties with the Mattagami, Wahgoshig, Matachewan
and Flying Post First Nation communities in the Timmins area of Northern
Ontario. The IBA establishes a framework for continued consultation relating to
the Companys existing and future operations in and around Timmins, and provides
long-term financial benefits to the four First Nations communities as well as
opportunities in such areas as new business ventures, employment, training and
education.

The 2016 exploration program at the Bell Creek Complex focused
on drilling extensions of the NA, NA2 and HW6 veins as well as extending
resources to depth at the Schumacher and Vogel properties east of the Bell Creek
Mine. Results of the 2016 exploration programs as they relate to Bell Creek are
discussed under Exploration below.

PROJECT DESCRIPTION, LOCATION AND ACCESS

The Bell Creek Mine property comprises 12 patent claims and two
patents covering a total area of approximately 320 hectares (ha). All claims are
either patented or leased mineral claims or patented veteran lots (vet lots) and
remain valid in perpetuity as long as the annual taxes remain paid in full. The
Schumacher property is a Boer War Vet lot with an area of approximately 64 ha.
It is bounded to the west by Bell Creek and to the east by the Vogel property.

|62 | Tahoe Resources Inc.
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To maintain these claims in good standing, yearly lease rents
and land tenant taxes are required to be paid for the leased claims, while land
taxes and municipal taxes are required for the vet lots. Of the 12 leased
claims, eight are due for renewal on September 30, 2025 with the remaining four
due for renewal on September 30, 2027.

The Bell Creek Mine property is located in Hoyle Township,
Porcupine Mining Division, approximately 20 km by road, northeast of Timmins,
Ontario. Access to the property is gained via Florence Street, a 6.7 km long
all-weather asphalt and gravel road north of Ontario Provincial Highway 101. The
project is situated approximately 564 km north-northwest of Toronto, Ontario.

The project comprises Bell Creek Deposit, mine infrastructure
including shaft, ramp, Bell Creek Mill, tailing facilities as well as office,
warehouse, and dry facilities. Allweather road access and electrical power
transmission lines are established and operational to Bell Creek Mine. The Bell
Creek Mine area, and the City of Timmins experience a Continental Climate with
an average mean temperature range of -16.8°C (January) to +17.5°C (July) and
annual precipitation of approximately 834.6mm.

A map showing the location and access to the Bell Creek Mine
Property is provided under the heading Timmins West Mine  Project Description,
Location, Access and Infrastructure.

HISTORY

Historical records indicate that gold was discovered in the
Timmins area in the early part of the twentieth century. However, it was only
with increased access to the region following the development of rail
infrastructure in the 1900s that world class deposits were found near the
Porcupine and Nighthawk Lakes. The Vipond, Dome, and Hollinger Mines were
discovered in 1909.

Gold mineralization was first discovered on the Bell Creek
property through a joint venture between Rosario and Dupont between 1980 and
1982. Between 1986 and 1991, Canamax Resources Inc. explored and developed the
Bell Creek Mine. Falconbridge operated the mine between 1991 and 1992, followed
by Kinross in 1993 and 1994 when mining operations ceased. The mine was kept on
care and maintenance until 2001, when a decision was made to allow the
underground workings to flood.

In 2002, the Porcupine Joint Venture, a joint venture between
Placer Dome Canada Ltd. (Placer) and Kinross, was formed and in 2005 the
property was reactivated. Goldcorp acquired Placers interest later that year
and became the operator of the Porcupine Joint Venture. Acquisition of the
property by Lake Shore was finalized on December 18, 2007.

In November 2005,
  Lake Shore signed a 20-year lease agreement securing a leasehold interest in the
  surface and mining rights on the Schumacher property. The lease is renewable for
  an additional 20-year term. Acquisition of the Bell Creek claims by Lake Shore
  from the previous owner, PJV, was finalized on December 18, 2007. The two
  northern claims were acquired by Lake Shore from the previous owner in
  December 2009.

On January 1, 2012 Lake Shore announced the Bell Creek Mine to
be in commercial production. On April 1, 2016, Tahoe acquired the Bell Creek
Mine as a result of its acquisition of Lake Shore.

MINERAL TENURE, SURFACE RIGHTS AND ROYALTIES

In November 2005, Lake Shore signed a 20-year lease agreement
giving it a leasehold interest in the surface and mining rights on the
Schumacher property. The lease is renewable for another 20-year term. The
property is a Boer War Vet Lot and, as such, is a freehold patent with both
surface and mining rights (granted by the Crown before May 6, 1913). It is
bounded to the west by Bell Creek and the east by the Vogel property. Lake Shore
is required to make an annual advanced royalty payment of CAD$25K in years four
to six of the lease and CAD$50K thereafter (indexed to inflation) and to pay a
2% NSR once commercial production begins (internal company documents).

On January 31, 2007, Lake Shore entered into an agreement with
Goldcorp, manager of the Porcupine Joint Venture, to acquire the Bell Creek
Mine. The acquisition was finalized on December 18, 2007. The agreement was
subject to a 2% NSR royalty payable to the Porcupine Joint Venture comprised of
Goldcorp and Kinross. Kinross subsequently assigned its rights under the
agreement to Goldcorp, and in July 2016 Tahoe acquired this 2% NSR royalty from
Goldcorp. Underlying royalty agreements affect some of the Bell Creek claims
including two agreements with net profit interests that can be purchased
outright for relatively small amounts.

The two northern claims were acquired from Goldcorp in 2009
as part of the Bell Creek West acquisition. These claims are both Boer War Vet
lots, located in a surveyed township and as such have fixed boundaries for an
area of approximately 64 ha. These claims are subject to various royalties.

PERMITS

The required permits and approvals for operations at the Bell
Creek Mine have been acquired. These include the following Provincial Permits
and Federal Permits: Ministry of Northern Development and Mines (MNDM);
Ministry of the Environment (MOE); Ministry of Natural Resources (MNR);
Ministry of Transportation (MTO); Technical Standards and Safety Authority
(TSSA); Ministry of Labour (MOL); Occupational Health and Safety;
Explosives; Notification of Commencement of Construction and Operation;
Department of Fisheries and Oceans Canada (DFO); Natural Resources Canada (NR
CAN)  Explosives Regulatory Division (ERD); and Environment Canada (EC).

|Annual Information Form for the Year Ended December 31,
      2016 | 63
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ENVIRONMENT

Water management and protection of the natural environment
surrounding the Bell Creek Complex were recognized from the onset of the project
as primary environmental concerns.

All construction and works conducted at Bell Creek passes
through extensive screening by both Lake Shore staff and a third party
consultant to minimize impact to Bell Creek and best manage water and air
releases as per Lake Shores operating permits. Detailed engineering reports
assist staff in managing the above mentioned concerns from the site.

The development of the mine will create a disturbance footprint
on the terrestrial environment. Baseline work did not identify the possibility
of provincially or federally listed fauna species on the site that will trigger
concern. The Closure Plan will reduce this disturbance area at closure and
disturbed areas will be rehabilitated with the intent of returning the site to a
productive use (i.e. forestry) resulting in limited long-term impact to the
area.

Environmental monitoring will be conducted in accordance with
regulatory requirements. The monitoring program will be compiled in a database
to assure compliance with all regulations.

GEOLOGICAL SETTING, MINERALIZATION AND DEPOSIT TYPES

The Bell Creek deposit is located in the western part of the
Archean aged Southern Abitibi Greenstone Belt, a supracrustal complex of
moderately to highly deformed, usually greenschist facies, volcanic-dominated
oceanic assemblages that are approximately 2.7 million years in age.
Supracrustal rocks in the Timmins region are assigned as members of seven
volcanic and two sedimentary assemblages within the Western Abitibi Subprovince
of the Superior Province. Intrusions were emplaced during the Archean and
Proterozoic eons.

The Bell Creek property is underlain by carbonate altered,
greenschist facies Archean-aged, metavolcanic and clastic metasedimentary rock
units belonging to the Tisdale and Porcupine assemblages. The metavolcanic
portion of the stratigraphy represents the lower portion of the Tisdale Group,
with the ultramafic metavolcanic rocks belonging to the Hershey Lake Formation
(Brisbin, 1997) or Pykes (1982) lowermost unit, Formation IV. The mafic
metavolcanic variolitic and iron tholeiitic flow units are interpreted as being
characteristic of Pykes (1982) middle unit, Formation V. The Krist Formation,
Pykes upper unit, is absent from Hoyle Township (Berger, 1998). The lithologies
generally strike east-west, to west-northwest, and are steeply dipping.

In the Porcupine Camp, gold-bearing structures most commonly
form in relatively competent volcanics intruded by felsic porphyry stocks and
dykes prior to the deposition of the Timiskaming assemblages. Porphyries dating
from 2691 ± 3 Ma to 2688 ± 2 Ma intruded the already folded and faulted
greenstone sequences and initiated the mesothermal systems with the formation of
associated albitites. Observations of pyrrhotite and gold-mineralized clasts at
both Pamour and Dome mines within Timiskaming conglomerates suggest a prolonged
gold deposition event from the creation of the steep south dipping DPFZ up to
the latest episode of crustal stabilization.

Fracture intensity and alteration increase toward mineralized
zones. Alteration consists of bulk and fracture-controlled sericite, Fe-dolomite
to ankerite, quartz, and dark green to black chlorite. Microfractures contain
late chlorite and carbonate veinlets. Distal carbonatization, resulting in grey
carbonate zones, is quite common.

Gold mineralization in the Bell Creek area has been described
as occurring along selvages of quartz veins and wall rocks, in stylolitic
fractures in quartz veins, in fine grained pyrite, and in association with
amorphous carbon. High grade gold mineralization occurs within quartz veins
contained in alteration zones. The alteration zones are characterized by
carbonate, graphitic and amorphous carbon, fine grained pyrite, sericite, and/or
paragonite and are enriched in Au, As, Bi, and W. This style of alteration is
referred to by mine geologists as grey zones and is an exploration target in
Hoyle Township.

EXPLORATION

Diamond drilling in the general vicinity of the Bell Creek
deposit was conducted by several entities with the first recorded drill hole
assessment work filed in 1940. Documented drill records began with the Rosario
Resources Canada Ltd. in 1978. Historic drilling completed prior to the
acquisition by Lake Shore is reported to consist of 73,294 metres in 546 holes.

Below is a summary of historic drill programs completed prior
to Lake Shore at Bell Creek:

| |  | 1978-1981 (Rosario): North to South oriented
      drill holes throughout the district. No drill holes collared within 1,000
      metres of future mine workings;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                   
| |  | 1982-1990 (Amax and Canamax): surface drilling
      at 30 metre centres on a north south oriented grid presently referred to
      as the Bell Creek Mine grid;  
| |   |                                                                                                                                                                   
| |  | 1988-1991 (Canamax): underground diamond
      drilling;                                                                                                          
| |   |                                                                                                                                                                   
| |  | 1991-1994 (Falconbridge): underground drilling;                                                                                                                   

Since acquiring the property in 2007 Lake Share has conducted
the following exploration drilling:

|64 | Tahoe Resources Inc.
|-- | --------------------

---

Bell Creek Surface and Underground Exploration

Year
    Number of
      Holes
    Metres (m)2008
    44
    25,1992009
    112
    50,7032010
    53
    27,7982011
    53
    31,0672012
    11
    3,3182013
    0
    02014
    0
    02015
    16
    10,6172016
    53
    16,604TOTAL
    342
    165,305


Diamond drilling has identified 16 mineralized zones (14
sub-parallel and two splay zones) that comprise the North A and North B vein
systems which extend from surface to a vertical depth of approximately 1,700
metres. Mineralization remains open down plunge and to the east at depth.

Since acquiring the project in 2005 Lake Shores exploration
work has focused on delineating, defining and extending the mineralization
contained within the North A and North B zones which were previously identified
or mined. Initial exploration activity led to the preparation of NI
43-101-compliant Mineral Resource estimate in 2010.

2016

Exploration at the Bell Creek Complex in 2016 focused on the
NA/NA2 zones, the two largest resource blocks at the Bell Creek Mine, and the
HW6 zone, a new structure discovered in late 2015 near the west limit of the
mine. Drilling successfully extended the NA/NA2 Zones a minimum of 30 metres to
the east and to depth. Drilling of the HW6 Zone extended mineralization a
minimum of 60 metres down dip that remains open to depth.

Surface drilling at the Bell Creek Complex also focused on
extending resources to depth at the Schumacher and Vogel properties east of the
Bell Creek Mine. The program identified mineralization approximately 250 metres
below the current Vogel resource and 1.0 km east of the Bell Creek 760 Level.
The deep Vogel extension remains open to the east and to depth and will be the
focus of additional drilling in 2017.

Exploration at Bell Creek in 2017 is planned to extend known
mineralization and grow the current Inferred and Indicated Mineral Resource base
as well as to further define Vogel deep extensions.

SAMPLING, ANALYSIS AND DATA VERIFICATION

Sample handling procedures are not available for companies
operating at Bell Creek prior to Lake Shore but it is believed to be suitable
for use in Mineral Resource estimation. Procedures and practices employed by
Lake Shore since acquiring the property conform to or exceed industry standards.
Lake Shores procedures are described below:

For both surface and underground drill samples a secure chain
of custody follows diamond drill core from the drill though analysis with the
return of sample pulps to a locked on site storage facility. Unannounced visits
to the drill sites are made to ensure safety, good working practices, and drill
core security.

The diamond drill contractors secure the drill core boxes at
the drill site and deliver them to the core logging facilities located at Lake
Shores exploration office in Timmins, Ontario. Lake Shore personnel then check
and label boxes and core blocks with hole number, box number, and footage and
prepare a summary log.

The core is then logged by a geologist entering data directly
into Drill Logger software developed by Geovia GEMS describing geology,
structure, alteration, and mineralization. Intervals to be sampled are indicated
by the geologist, sample tags are inserted, rock quality designation
measurements and photographs are taken, and the log is printed, reviewed, and
edited. The core is then given to a trained and supervised technician for
sampling. The core is split by trained Lake Shore technicians using a diamond
saw. One half of the core is placed in a plastic sample bag and the remaining
half is returned to the core box. Lake Shore uses sequentially numbered
triplicate sample tags. One portion of the tag goes in the sample bag along with
the split half of the sample, one portion of the tag is stapled into the core
box at the end of the sample interval, and the third stays in the sample book
for archiving. Once the sampling is completed, all drill core is stored in racks
or square piled in a secure compound at the core logging facilities or at the
Timmins West Mine compound.

The analytical samples are enclosed within sealed shipping
bags, are transferred into larger shipping bins, and are directly delivered to
the selected analytical labs by Lake Shore employees. The lab employee that
receives the sample shipment signs a chain of custody document that is returned
to Lake Shores office for reference and filing. The return assay results are
processed by the database manager and are reviewed by Professional
Geoscientists. Data is made available for viewing by authorized members of the
Lake Shore geological and management staff.

|Annual Information Form for the Year Ended December 31,
      2016 | 65
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All samples are analyzed for gold at various independent
laboratories using fire assay with an atomic absorption finish, except for
samples sent to SGS Labs, which provided an ICP finish. For samples that return
a value greater than 3.0 g/t Au (changed to greater than 10 g/t Au on March
15th, 2011), another aliquot from the same pulp is taken and Fire
Assayed (FA) with a gravimetric finish. Occasionally for samples which may
include visible gold analysis is requested to be completed using a pulp metallic
method. In reporting assay results, the protocol utilized by Lake Shore
stipulates that Metallic Assay results override FA with a gravimetric finish,
which in turn overrides FA with an atomic absorption or ICP finish.

Drill core obtained from underground drill programs is
subjected to the core handling and logging procedures as the core from the
surface programs with some exceptions. Due to the density of drilling and the
large amount of core being generated by the underground programs, most holes are
whole core sampled. Select exploration holes are retained for future reference
with core being cut and sampled as per the normal Lake Shore process.

Lake Shores QA/QC program involves inserting one blank, one
CRM standard and one pulp duplicate in the sample stream. Prior to June 2012 the
QA/QC material was inserted for every 20 to 25 samples submitted for analysis,
post June 2012 the process was changed, inserting the QA/QC samples for every 40
core samples. Drill core from a local, barren diabase dyke is used as a blank
sample medium. ALS has been instructed to take one reject duplicate after every
25 samples processed.

The QA/QC results are reviewed by one of the QPs on a routine
basis.

MINERAL PROCESSING AND METALLURGICAL TESTING

Prior to 2011, metallurgical testing on Bell Creek
mineralization had not been completed by Lake Shore. Reliance had been placed on
historical test work conducted prior to the construction of the Bell Creek Mill
and on historical milling experience.

Metallurgical testing on Bell Creek mineralization was first
completed for Canamax in 1983 by Lakefield Research of Canada Ltd.

Test work was conducted on four samples and included mineral
characterization (head assays, emission specifics, specific gravity
determination, gold occurrence test), trial grinds, flotation tests, and
cyanidation of the ore. A fifth sample was used for settling and filtration
tests.

The Bell Creek Mill Phase 1 expansion was completed in October
2010. Phase 2 of the mill expansion was completed during the third quarter of
2013. Prior to launching the Phase 2 expansion project, more comprehensive test
work was completed involving seven companies. Overall, the combination of Lake
Shores operating history and the extensive amount of test work conducted
provides confidence that the process design and equipment selection will result
in achieving the targeted recovery and throughput levels.

MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

Lake Shore has prepared an updated Mineral Resource estimate
for the Bell Creek deposit with an effective date of January 1, 2017. The
estimate is based on both historic diamond drilling and drilling completed by
Lake Shore. The Mineral Resource estimate for the Bell Creek Mine occurs within
sixteen mineralized domains of which four, the North A, North A2, North B and
North B2, account for 91% of the total ounce content. The bulk of this
mineralization is centered about section 5950 E between 975 metre elevation and
1375 metre elevation.

The updated Mineral Resource estimate at Bell Creek includes
4.4 million tonnes at an average gold grade of 4.4 gpt for 618.9 thousand ounces
of gold in the Measured and Indicated categories and 4.2 million tonnes at an
average gold grade of 4.4 gpt for 586.6 thousand ounces of gold in the Inferred
category. Mineral Resources are reported using gold cut-off grade of 2.2 g/t.

MINERAL RESOURCES

Mineral Resources reported for the Bell Creek deposit at
January 1, 2017 were estimated by subtracting mining depletion from June through
October 2016 and forecasted production from November through December of 2016
from an updated resource model completed at the end of May 2017.

Bell Creek Mineral Resources at January 1, 2017

Classification
    Tonnes (M)
    Au g/t
    Au
      Ounces (000s)Measured
    0.3
    4.18
    40Indicated
    4.1
    4.43
    579Measured & Indicated
    4.4
    4.41
    619Inferred
    4.2
    4.38
    587


Totals may not sum due to rounding

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MINERAL RESERVES

Proven and Probable Mineral Reserves at the Bell Creek mine at
January 1, 2017 are estimated at 1.8 million tonnes at an average gold grade of
4.4 g/t for 245.1 thousand ounces of gold using a gold cut-off grade of 2.2
g/t.

Bell Creek Mine Mineral Reserves at January 1, 2017

Classification
    Tonnes (M)
    Au g/t
    Au
      Ounces (000s)Proven
    0.1
    4.21
    16Probable
    1.6
    4.36
    229Proven & Probable
    1.8
    4.35
    245


Totals may not sum due to rounding

Mineral Reserves were calculated by applying a revised mine
plan to the updated Mineral Resource model using a gold price of $1,250/oz.
Mineral Reserves are supported by a mine plan that features variable stope
thicknesses designed on the Mineral Resource model using operating costs of
$81.35 per tonne ore with 95% mining recovery, external dilution of 14% and
metallurgical recovery of 94.5% . Mineral Resources are inclusive of Mineral
Reserves.

The calculation of Mineral Resources and Mineral Reserves has
taken into account environmental, permitting, legal, title, taxation,
socio-economic, marketing and political factors and constraints, none of which
are considered to have the potential to affect materially the operation of the
Bell Creek Mine. The Mineral Resource and Mineral Reserve estimates may be
materially impacted by assumptions used for commodity prices, operating and
capital costs, rock mechanics (geotechnical) constraints, constant underground
access to all working areas, and metal recovery.

MINING OPERATIONS

The primary access at the Bell Creek Mine is via the existing
portal and main ramp from surface. The main ramp is 5 metres wide x 5 metres
high and currently extends to the 895L. All active production levels in the mine
will be accessed via the ramp (i.e. no captive levels) and personnel, materials,
and ore and waste rock will be transferred via the ramp. Secondary access/egress
to/from the underground to surface will be via the existing manway in the shaft.
Below the existing access to the shaft at the 240L station, the main ramp and
internal raises equipped with escapeways will provide two access routes to the
240L.

The Shaft Project is expected to be completed mid-2018, with
commissioning of the facility in the second half of 2018, and will extend the
shaft from approximately 300 metres depth to the 1080 metre level elevation. The
shaft will be equipped to hoist both ore and waste. The project is being
completed to increase production, lower unit costs, extend mine life and allow
for accelerated delineation of the deep resources as well as exploration at
depth.

Narrow vein longitudinal longhole stoping with delayed
unconsolidated rock fill has been the primary mining method used to date at the
Bell Creek Mine. In current active mining areas, sublevels have been established
at 15 to 20 metre vertical intervals (floor to floor) and this sublevel spacing
will be maintained for remaining sublevels to the 1165L. On each sublevel, the
resource will generally be accessed near the centre (along strike) and stope
undercut and overcut sills developed to the east and west extents. Stope lengths
will generally be 20 metres along strike; however, stopes abutting waste or low
grade material may be marginally longer or shorter to optimize recovery.
Longitudinal mining will retreat from the furthest stope from the access, toward
the initial access point.

The resource is being mined top down in blocks as ramp
development advances to depth. To maintain steady production rates, a mining
front is generally established at every third sublevel (i.e. 45 to 60 metre high
blocks). Where a stope will be mined up to a previously mined stope in the block
above, sill pillar recovery will be required. Sill pillar recovery will require
working on top of backfill and mining uppers stopes, leaving a permanent sill
pillar (1:1.25 pillar width to pillar height ratio) in place below the stope
above to contain the unconsolidated rock fill. The uppers stopes will not be
backfilled, and 3 metre thick rib pillars will be left to support the hanging
wall (and footwall) between stopes.

Two sources of dilution have been considered in establishing
the Bell Creek Mine reserves. Planned dilution includes low grade material
and/or waste rock that will be mined and will not be segregated from the ore.
Sources of planned dilution include:

| |  | Waste rock or low grade material that is
      drilled and blasted within the drift profile of ore sills and the overall
      grade of the muck justifies delivery to the mill.                                                                                                               
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                  
| |  |  Waste rock or low grade material within the
      confines of the stope limits. This includes internal waste pockets and
      footwall and/or hanging wall rock that has been drilled and blasted to
      maximize ore recovery and/or maintain favourable wall geometry for
      stability.

Unplanned dilution includes low grade resource, waste rock,
and/or backfill from outside the planned drift profile or stope limits that
overbreaks or sloughs and is mucked with the ore and delivered to the mill.
Unplanned dilution has been calculated for each stope based on the local stope
dimensions and geometry.

Based on the March 27, 2015 technical report for the Bell Creek
Mine, production will average 850 tpd in Year 1 and slowly begin to increase to
1,000 tpd by Year 4 while capital and operating development activities continue.
New mining blocks developed are expected to contain more tonnes than
previously mined blocks, providing an opportunity to bring multiple blocks in
production simultaneously. In Year 5 through Year 7, development activities will
reduce and development personnel and equipment will transition to support
production activities.

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The existing development, production, and auxiliary underground
equipment fleet will continue to be used, with 50 tonne capacity underground
haul trucks added to the fleet to support hauling from deeper in the mine.

Ventilation requirements have been estimated based on providing
0.06 cubic metres per second (cms) of fresh air per kilowatt (kW) of mobile
equipment diesel power (including factors for availability and utilization), for
the equipment anticipated to be operating.

The Bell Creek Mine is well positioned in the established
Timmins mining district. Consumable materials and external services required to
support the mining operation will continue to be sourced from local businesses
or from other nearby mining centres. A number of contracts have been established
to support current site activities and these will be amended as required to meet
production demands.

The site has existing health and safety programs in place as
required by the Ontario Occupational Health and Safety Act and Regulations for
Mines and Mining Plants. There is an existing Joint Health and Safety Committee
and Mine Rescue Team and training facilities.

PROCESSING AND RECOVERY OPERATIONS

Ore from the Bell Creek Mine is milled exclusively at the Bell
Creek Mill located approximately 6.7 kms north of Highway 101 in South
Porcupine, Ontario. The processing plant consists of a one stage crushing
circuit, ore storage dome, one-stage grinding circuit with gravity recovery,
followed by pre-oxidation and cyanidation of the slurry with CIL and CIP
recovery. Ore from the Timmins West Mine is also trucked to the Bell Creek
Milling facility for processing. Throughput at the Bell Creek process plant
averaged just above 3,400 tpd in 2016

The Bell Creek Mill was established as a conventional gold
processing plant utilizing cyanidation with gravity and CIP recovery. Between
1987 and 1994 the mill processed 576,017 short tonnes of Bell Creek ore grading
0.196 ounce per short tonne Au (112,739 recovered ounces). The historical gold
recovery was approximately 93 percent. Additional tonnage from the Marlhill
Mine, Owl Creek open pit, and Hoyle Pond Mine was processed prior to the mill
being placed on care and maintenance in 2002. During this period several
improvements and additions were implemented to increase tonnage throughput from
the original 350 tpd to 1,500 tpd. Lake Shore purchased the mill in 2008 and
re-commissioned the mill for operation in 2009 at 1,000 tpd. The mill was
expanded to 2,000 tpd in the fourth quarter of 2010 and was further expanded to
2,500 tpd in 2011. Phase 2 of the mill expansion (increasing throughput capacity
to 3,300 tpd) was completed in the third quarter of 2013.

Ore from the Bell Creek Mine is dumped directly onto a 16 by
16 grizzly at the truck dump and a remote controlled rockbreaker is used to
break up the oversized material. The ore is fed with an apron feeder to a series
of conveyors reporting to a scalping grizzly feeder in the crushing building.
The openings between the fingers on the grizzly feeder are 3.5, with the
oversize reporting to a 44 x 34 C110HD Metso jaw crusher. The jaw crusher is
set to a closed side setting of 4. The discharge from the crusher is combined
with the -3.5 material from the grizzly feeder and conveyed to the ore storage
dome. The dome has a 20,000MT storage capacity, 6,000MT of which is live. Three
apron feeders pull ore from the dome and convey it to the SAG mill building.

The grinding circuit consists of one 22 diameter by 36.5
length low aspect ratio Metso SAG mill and is powered by twin 6,250 hp (4,600
kW) motors. The SAG mill is a repurposed ball mill converted to a SAG by
installing 1⁄2 grates and a trommel with 3⁄4 openings. Oversize from the trommel
reports to a collection bin which is fed back into the SAG mill feed chute.
Undersize from the trommel reports to a pumpbox which feeds a cyclopac equipped
with 6 outlets. Four of the outlets are fitted with 20 Krebs gMAX cyclones, and
the other two outlets are capped and available for possible future expansion.
The SAG cyclone overflow reports to the thickener feed box and the underflow
reports back to the SAG mill. A portion of the cyclone underflow is fed to a 30
Knelson. Knelson concentrate is collected in a hopper and is pumped daily to the
refinery for further treatment, while the Knelson tails flow by gravity back to
the SAG mill. Target grind is 80% passing 200 mesh.

Flocculent is added to the cyclone overflow and is pumped to a
20 meter diameter thickener. The slurry from the cyclones is 25-35% solids by
weight with the thickener underflow at 55% solids by weight. The thickener
overflow water is pumped to the process water tank and reused in the grinding
process. The thickener underflow slurry is pumped to the leach circuit. The
leach circuit consists of five agitated tanks in series with a total volume of
1,940 cubic meters. Pure oxygen is sparged into the first three leach tanks to
passivate the contained pyrrhotite in the ore, as well to maintain a target
dissolved oxygen level, which is required for efficient gold dissolution in
cyanide. Cyanide is then added to leach tank #4, or #5.

There are three carbon-in-leach (CIL) tanks equipped with
Kemix screens having a total volume of 7,500 cubic meters. The first tank (CIL
#5) operates without carbon, so it is essentially a leach tank. The second (CIL
#2) and third (CIL #1) tanks contain roughly 8 grams of carbon per liter of
slurry. The circuit will reach equilibrium for loading of the carbon with the
grade of the loaded carbon in the range of 2,500 to 4,500 grams per tonne.
Loaded carbon is pumped from CIL #2, screened, washed, and then transferred to
the loaded carbon tank. Carbon in the CIP and CIL tanks is advanced
counter-current to the flow of slurry in the circuits.

The slurry from CIL #1 tank reports to the carbon-in-pulp
(CIP) circuit, and is split into two trains of three CIP tanks in parallel
with approximately 45 grams of carbon per liter of slurry. Recovery of the gold
from the carbon is a batch process with carbon being stripped at a rate of 3.5 tonnes per
batch. The turnaround time between batches is 24 hours. Carbon can be cleaned
with acid, reactivated with the kiln and reused in the circuit.

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The loaded solution from the strip circuit is passed through
two electro-winning cells in the refinery. The gold collects on the cathodes in
a sludge form. The cells are washed weekly and the sludge is collected in filter
bags and dried. The dried sludge is then mixed with reagents and melted in the
induction furnace. Gold bullion bars are poured when the melt is completed.

The gravity gold material collected from the Knelson
concentrator is transferred to the refinery and a gravity table is used to
increase the gold content. The concentrate is then dried, reagents are added and
the material is melted in the induction furnace. The gravity concentrate and the
CIP gold sludge are melted separately due to the differing amounts of reagents
used in each, and to more accurately determine recoveries in each circuit.

Processing results of Bell Creek Mine ore at the Bell Creek
Mill in 2016 are shown in the table below.

BELL CREEK MINE MATERIAL PROCESSED IN 2016

Tonnes
      Processed (000s)
    Au
      Grade (gt)
    Recovery319.3
    4.31
    94.5%


TAILINGS FACILITY

The Bell Creek tailings facility (BCTF) is part of the Bell
Creek Complex and is located west of the Bell Creek Mill. The facility, covers
an area of approximately 147 ha, and includes three tailings cells, two clear
water ponds, an effluent treatment plant and sludge settling pond, and north and
south diversion ditches Tailings are pumped in a conventional slurry stream (40%
to 45% solids) from the mill to the tailings facility for deposition.

The Bell Creek Mill is permitted to 5,500 tpd. Construction of
the Phase 4 North tailings facility expansion at the Bell Creek Mill was
completed at the end of Q3 2016.A depositional plan has been completed
to allow for deposition within the existing BCTF footprint for the next 5 years
prior to additional expansion.

INFRASTRUCTURE, PERMITTING AND COMPLIANCE ACTIVITIES

Provincially, the MNDM is the lead agency for mining projects
in Ontario. Mine production triggers requirements under Part VII of the Mining
Act. These requirements include notifications, public and First Nations
consultation, closure plans and financial assurance. Approval of a closure plan
provides rights for the Company to proceed under the Mining Act. Mine production
is not allowed on unpatented mining claims and public notice is mandatory for
mine production.

The Ministry of the Environment and Climate Change (MOECC)
issues permits to take water (both surface and groundwater), emit noise and
dust, and discharge into water, land and the atmosphere. The MOECC will
administer the following permits for the Bell Creek Complex:

| |  | Wastewater treatment and effluent discharge
      from the mine process water, including construct and operate tailings
      impoundment  Ontario Water Resources Act (OWRA).
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Water taking permits  OWRA.                                                                                                                                                     
| |  | Industrial Sewage Works Permit  OWRA.                                                                                                                                           
| |  | Solid waste management (waste generator
      registration)  Ontario Environmental Protection Act (EPA).                                                                        
| |  | Noise/air emissions  EPA.                                                                                                                                                       

Currently, the Bell Creek Complex operates under the following
permits issued by the MOECC:

| |  | Permit to Take Water No. 6153-84WPMB issued
      April 28, 2010.                                       
| | - | --------------------------------------------------------------------------------------------------------
| |  | Amended Environmental Compliance Approval
      (Industrial Sewage) No. 9641-9SSJTH issued January 2015.
| |  | Amended Environmental Compliance Approval (Air)
      No. 0303-9G8RUY issued March 21, 2014.            
| |  | Waste Generator No. ON7562685.                                                                          

The Ministry of Natural Resources and Forestry (MNRF) issues
land use permits and work permits under the Public Lands Act and the Lakes and
Rivers Improvement Act, respectively. The MNRF will administer the following
permits for the Bell Creek Complex:

| |  | Forest Resource Licenses which are issued for
      the cutting of crown owned timber (Crown Forest Sustainability Act.                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Land use permits for such things as effluent
      ditches/pipelines, access roads, camps, etc., where the acquisition of
      crown lands is required  Public Lands Act.
| |  | Work permits for such things as creek crossings
      or impoundment structures (dams) - Lakes and Rivers Improvement Act.                                                 

Water management and protection of the natural environment
surrounding the Bell Creek Complex were recognized from the onset of the project
as primary environmental concerns.

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      2016 | 69
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All construction and works conducted at Bell Creek passes
through extensive screening by both Lake Shore staff and a third party
consultant to minimize impact to Bell Creek and best manage water and air
releases as per Lake Shores operating permits. Detailed engineering reports
assist staff in managing the above mentioned concerns from the site.

The development of the mine will create a disturbance footprint
on the terrestrial environment. Baseline work did not identify the possibility
of provincially or federally listed fauna species on the site that will trigger
concern. The Closure Plan will reduce this disturbance area at closure and
disturbed areas will be rehabilitated with the intent of returning the site to a
productive use (i.e., forestry) resulting in limited long-term impact to the
area.

Environmental monitoring will be conducted in accordance with
regulatory requirements. The monitoring program will be compiled in a database
to assure compliance with all regulations.

Effluent treatment reagents (i.e., lime, flocculent, etc.) will
be stored in designated areas. Currently these materials are stored within the
ETP and warehouse in accordance with their respective Material Safety Data
Sheets.

Bulk containers of petroleum products are stored in designated
areas within Maintenance area. Spill trays are utilized for containment.

Fuel will be stored and handled in accordance with the Liquid
Fuels Handling Code. Gasoline and diesel fuel will be stored in the tank farm
and in portable, double-hulled tanks that are located within containment areas
to contain incidental spillage. Propane is stored in above ground tanks.

There are no PCBs at the Bell Creek Complex.

With the exception of silica dust from development rock, there
will be no designated substances at the Bell Creek Complex, as defined in the
Occupational Health and Safety Act.

Explosives will be brought to the Bell Creek Complex on an
as-needed basis. All explosives are stored in powder magazines in the
underground workings of the Bell Creek Mine.

As part of the Safety and Environment Program, Lake Shore has
prepared a Spill Prevention Contingency and Response Plan for the Bell Creek
Complex. This document provides a practical guide for preventing, controlling
and responding to spills. It has been prepared using guidelines provided by the
Liquid Fuels Handling Code, the Canadian Environmental Protection Act, the
Ontario Environmental Protection Act, the North American Emergency Response
Guidebook, as well as standardized response procedures from petroleum product
suppliers. Copies of this document are available from the Environmental
Department.

Mine closure is the orderly, safe and environmental conversion
of an operating mine to a closed-out state.

The development of a walk-away, no active management scenario
is a primary environmental management goal for this project. The long-term
environmental management issues associated with the project have been identified
in the Mining Act and relate to ore hoisted to surface, waste rock dumps, open
holes to surface and overall construction of permanent structures. Other
secondary issues, such as returning the site to a productive use (i.e. forestry)
will be accommodated within the context of the Closure Plan.

Currently, with the extensive sampling program initiated by the
Bell Creek Complex, the analytical data collected does not identify any
potential acid rock drainage issues.

At the conclusion of the mine life, the closeout rehabilitation
measures summarized below will be implemented.

| |  | Removal of surface buildings and associated
      infrastructure.                
| | - | ---------------------------------------------------------------------------------
| |  | Removal of holding ponds by converting into naturally
      draining ponds.      
| |  | Sloping and covering any and all waste rock/tailings with
      native grasses.  
| |  | Securing mine opening as per O. Reg. 240/00.                                     
| |  | Ensuring water quality as per monitoring program
      submitted in Closure Plan.

Consultation has been undertaken with regulatory agencies, the
general public, the Métis Nation of Ontario, Wabun Tribal Council and the First
Nation communities of Flying Post First Nation, Mattagami First Nation, and
Matachewan First Nation, who are represented by Wabun Tribal Council, and also
Wahgoshig First Nation. Consultation provides an opportunity to identify and
address the impacts of Lake Shores activities on external stakeholders and to
expedite the authorization process.

The consultations were held in order to comply with Lake Shore
corporate policy, the provincial requirements of Ontario Regulation 240/00 and
the Environmental Bill of Rights.

As a result of the consultations undertaken, in November 2016
Tahoe signed an IBA relating to the Bell Creek Mine and surrounding properties
with the Mattagami, Wahgoshig, Matachewan and Flying Post First Nation
communities in the Timmins area of Northern Ontario. The IBA establishes a
framework for continued consultation relating to the Companys existing and
future operations in and around Timmins, and provides long-term financial
benefits to the four First Nations communities as well as opportunities in such
areas as new business ventures, employment, training and education.

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CAPITAL AND OPERATING COSTS

The estimated capital and operating costs as reported in the
March 27, 2015 technical report for Bell Creek have been based on operating
experience at the Bell Creek Mine and the Bell Creek Mill. The estimated LOM
capital and operating costs are summarized in the table below:

Cost Item
    Total Costs
      (millions)
    Cost per
      TonneCapital Cost
    $77.8
    $36.6/tonneOperating Cost (not including royalties)
    $220.0
    $103.65/tonne


EXPLORATION, DEVELOPMENT AND PRODUCTION

The main objective of the Bell Creek Mine exploration program
for 2017 is to extend known mineralization and grow the current resource base.
An underground drilling program will test four target areas within and proximal
to the mine, while a surface drilling program will test the North Zone
stratigraphy west of the diabase dyke and approximately 250 meters west of the
mine.

This drilling will test the unexplored down-dip portion of the
North Zones along a 550 meter strike length, which starts approximately 250
meters west of the Bell Creek deposit.

|THE TIMMINS
      WEST MINE
|---------------------------

The Timmins West Mine was acquired by Tahoe on April 1, 2016 as
part of Tahoes acquisition of Lake Shore. Information relating to the Timmins
West Mine, including Mineral Resources and Mineral Reserves as at January 1,
2017, is set out below. The information in this section is supported by a
technical report prepared for Lake Shore in compliance with NI 43-101 entitled
43-101 Technical Report, Updated Mineral Reserve Estimate for Timmins West Mine
and Initial Resource Estimate for the 144 Gap Deposit, Timmins, Ontario, Canada
dated February 29, 2016 (the Timmins West Technical Report).

Technical information in this AIF relating to updates to the
Timmins West Mine disclosure since the date of the Timmins West Technical Report
has been verified by Charles Muerhoff, the Companys Vice President Technical
Services and Qualified Person as defined by NI 43-101.

RECENT ACTIVITIES AT THE TIMMINS WEST MINE

On May 3, 2016, Tahoes Board of Directors approved additional
spending to accelerate exploration and delineation of the 144 Gap zone. Progress
was made in 2016 on the resource definition and infrastructure development at
the 144 Gap Deposit which included surface and underground drilling, and ramp,
raise and lateral development to access the resource.

The 2016 exploration programs at the Timmins West Complex
focused on definition of resources at the 144 Gap Deposit and extensional
drilling at Timmins Mine Deep, 144 Trend and Gold River Trend. Results of the
2016 exploration programs as they relate to these areas are discussed under
Exploration below.

PROJECT DESCRIPTION, LOCATION, ACCESS AND INFRASTRUCTURE

The Timmins West Mine consists of mineralized zones from the
Timmins Deposit, the Thunder Creek Deposit, and the 144 Gap Deposit for a total
area of approximately 17.1 square kilometers, or approximately 1,712 hectares.
The majority of the property is situated within Bristol Township (1,340 ha),
with approximately 336 hectares located in Thorneloe Township and 36 hectares in
Carscallen Township.

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      2016 | 71
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A map showing the location and access to the Timmins West Mine
is provided below:



The Timmins Deposit portion of the Timmins West Mine property
consists of a block of 23 contiguous claims (totaling approximately 395
hectares) which include eleven (11) individual patented and surface rights
claims, six (6) claims that hold a patent surface rights with leased mining
rights, and six (6) claims that hold a 21-year Crown mining and surface rights
lease. The Thunder Creek Deposit portion of the property consists of 20 staked
mineral claims (35 units totaling approximately 629 hectares) which includes two
(2) claims that hold a surface rights patent and three (3) claims which hold a
21-year Crown mining and surface rights lease. The 144 Gap Deposit consists of a
contiguous block of 33 mineral claims that hold a 21-year Crown mining and
surface rights lease covering approximately 688 hectares. This block represents
part of a larger lease block containing 56 claims (1,083.32 hectares) which were
brought to lease in June 2016. Surrounding the Timmins West Mine property are an
additional 276 staked claims, six (6) leases, and 33 patents also owned by Lake
Shore.

Lake Shore owns a 100% interest in most of the property,
subject to underlying royalties. The only exception is the Meunier-144 portion
of the property where Lake Shore holds a 50% interest in ten patent claims. The
claims and leases are all in good standing.

The Timmins West Mine is located 1.1 kms southeast of the
junction of provincial Highways 101and 144. All season road access to the
property is provided by provincial Highways 101 and 144, and the site access
road. Bush roads, trails suitable for all-terrain vehicles, and foot paths
provide access throughout the property and other locations within the claim
boundaries. A major power transmission line traverses the northwest portion of
the property.

The Timmins West Mine area and the City of Timmins experience a
continental climate with an average mean temperature range of -16.8°C (January)
to +17.5°C (July) and an annual precipitation of approximately 835 mm. Annually,
ice will start to form on lakes in approximately mid-November, and ice breakup
will take place in early to mid-May. Work can be carried out on the property
twelve months a year.

HISTORY

The discovery of gold in Bristol Township on the McAuley-Brydge
property (currently the Timmins West Mine) occurred in 1911. During the period
from 1911 to 1914 two shallow shafts were sunk; one on the present main
mineralized zone, which is reported to be 12 metres deep, and the second east of
Vein 2 and Vein 3 Zones at an unspecified shallower depth. Shortly after, fire
storms swept large parts of Carscallen, Bristol and Ogden Townships, and the
surface plants at various mines were completely destroyed. It was not until the
late 1930s that any further significant drilling occurred, first by Orpit Mines
Limited, which completed 7,620 metres of diamond drilling between 1938 and 1944,
and also by Rusk Porcupine Mines, which excavated several pits and trenches
across a 150 metre to 200 metre area of the Thunder Creek portion of the
property. Holmer Gold Mines Limited (Holmer) acquired the first of its
interest in what is now the Timmins West Mine property in 1963.

Lake Shore acquired the Timmins West Mine property by
fulfilling the earn-in requirements as set out in option agreements entered into
in 2003 with Holmer and West Timmins Mining Inc. (WTM), formerly Band-Ore
Resources Limited (Band Ore) and Sydney Resources Ltd., respectively, and by
completing business combination agreements with those companies. Holmer became a wholly-owned subsidiary
of Lake Shore in December 2004, and WTM became a wholly-owned subsidiary of Lake
Shore in November 2009.

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In January of 2011, commercial production was declared for the
Timmins Deposit. In January of 2012, commercial production was declared for the
Thunder Creek Deposit. Subsequently, the Timmins and Thunder Creek Deposits were
combined into a single operation called the Timmins West Mine. In March of 2012,
Lake Shore filed an updated Mineral Resource Estimate for the Timmins Deposit,
including a Preliminary Economic Assessment (PEA) for the Timmins West Mine.
In May of 2012, Lake Shore released a Pre-feasibility Study and Mineral Reserves
for the Timmins West Mine.

The 144 Gap Deposit was initially discovered in late 2014 as
part of a successful surface diamond drilling campaign. In 2015, Lake Shore
reported significant expansion of the 144 Gap Deposit through continued surface
diamond drilling.

On April 1, 2016, Tahoe acquired the Timmins West Mine as a
result of its acquisition of Lake Shore.

MINERAL TENURE, SURFACE RIGHTS AND ROYALTIES

In May 2003, Lake Shore and Holmer entered into an option
agreement whereby Lake Shore would earn a 50% interest in the Holmer property
(the present day Timmins Deposit property) by March 24, 2006. The area covered
by this option agreement consisted of 11 Freehold Patents with surface and
mining rights; Lease 106634 (formerly Lease 102611) a group of six Leasehold
Patents with surface and mining rights; and Lease 107874 (formerly Lease 104075)
a group of six Freehold Patents with mining rights as well as six Leasehold
Patents of surface rights for the same area. Lake Shore completed the earn-in
requirements in September 2004 and on December 31st, 2004 Holmer became a
wholly-owned subsidiary of Lake Shore pursuant to a business combination
agreement between Lake Shore, its wholly owned subsidiary Lake Shore Holdings
Corp. and Holmer. As part of this arrangement a 1.5% NSR royalty was assigned to
claim P-4227 (Mr. Lorne Labrash) that could be purchased for $1 million.
Mineralization in the current resource model does not extend to claim
P-4227.

Lake Shore optioned a 60% interest in the Thunder Creek
property from Band-Ore in November 2003. In September 2006, Band-Ore and Sydney
Resources Corporation merged to become WTM, and the terms of the Lake Shore -
Band-Ore option agreement succeeded to WTM. In May 2008, Lake Shore informed WTM
that the obligations to earn a 60% interest in the Thunder Creek property had
been fulfilled. On November 6, 2009, Lake Shore and WTM completed a business
combination agreement resulting in WTM becoming a wholly owned subsidiary of
Lake Shore. On January 1, 2012, WTM was amalgamated into Lake Shore, which now
holds the 100% interest.

All claims and leases are in good standing as of the Effective
Date of this AIF.

Royalties

Brief summaries of the royalties are stated below:

| |  | Mineral claims optioned originally from Mr. Jim Croxall
      were subject to a 2% NSR royalty. These claims were also subject to an
      advanced annual royalty payment of $5,000 prior to commercial production.
      Lake Shore purchased 1% of the NSR in November 2010 in exchange for
      approximately $1,500,000 equivalent in Lake Shore stock. The other 1% NSR
      was purchased by Premier Royalty in 2012. Sandstorm Gold Ltd. acquired
      Premier Royalty Corp in October 2013. The surface rights for leased claims
      P495307, P495308, and P495309 (mineral rights only on lease number 108773)
      were acquired by Lake Shore (surface lease number 108774), with both
      leases to remain in good standing until June 30, 2032.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Claim 1189886 was optioned from Mr. Bruce Durham with an
      attached 3.0% royalty.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Eight claims optioned from the late Mr. Matt Kangas and
      Mr. Jim Croxall (1177807, 1177808, 1177809, 1177811, 1181410, 1181413,
      1198803, and 1198804) are subject to a 2% NSR royalty of which 1% may be
      purchased for $1,000,000. An advanced royalty payment of $5,000 (indexed
      for inflation) is paid annually to the estate of Mr. Kangas and to Mr.
      Croxall in equal portions.                                                                                                                                                                                                                                                                                                                                                     
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Four claims (1189593, 1181995, 1189580, and 1189592) were
      purchased by Bruce Durham, Robert Duess, Ken Krug, and Henry Hutteri from
      Ray Meikle and Steve Anderson and then optioned to Band Ore. A 3% NSR
      royalty is payable, 1.5% to Durham et al., and 1.5% to Meikle and
      Anderson. There is not a buy down of this royalty.                                                                                                                                                                                                                                                                                                                                                                                                               
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Claims 1189552 and 1189553 were optioned from Mr. Bruce
      Durham and partners with an attached 3.0% royalty.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Claims 923646 and 923647 are subject to a 3% NSR, payable
      to Royal Gold and Torogold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | On March 1, 2012, FrancoNevada Corporation
      (Franco-Nevada) entered into an agreement with Lake Shore where
      FrancoNevada paid Lake Shore US$35 million for a 2.25% NSR royalty on the
      sale of minerals from the Timmins West Mine.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

The surface and mining rights for claims p26392, p26393,
p26394, p26395, p26396, p26397, p26398, p26399, p26400, p26403 (known as the
Meunier 144 property)are currently held by Lake Shore and Adventure Gold Inc.
(each with a 50% interest). There is a 2.5% NSR royalty payable to David
Meunier, with an option to buy back 1% of this royalty.

|Annual Information Form for the Year Ended December 31,
      2016 | 73
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PERMITS

The required permits and approvals for operations at the
Timmins West Mine have been acquired and include the following Provincial
Permits: Ministry of Northern Development and Mines (MNDM); Ministry of the
Environment (MOE); Ministry of Natural Resources (MNR); Ministry of
Transportation (MTO); Technical Standards and Safety Authority (TSSA);
Ministry of Labour (MOL); Occupational Health and Safety; Explosives; and
Notification of Commencement of Construction and Operation. The required permits
and approvals for operations at the Timmins West Mine include the following also
include the following Federal Permits: Department of Fisheries and Oceans Canada
(DFO); Natural Resources Canada (NR CAN)  Explosives Regulatory Division
(ERD) and Environment Canada (EC).

ENVIRONMENT

Water management and protection of the cold water systems on
and adjacent to the Timmins West Mine site were recognized from the onset of the
project as primary environmental concerns. Preliminary design for Timmins West
Mine includes the concept of managing rock that can be an acid generating risk
within a containment facility and treating runoff in accordance with regulatory
requirements before release to the environment. Timmins West Mine is regulated
under both provincial and federal legislation.

The waste rock containment pad is designed to receive and
contain rock from the underground workings that are identified as potentially
acid generating. All runoff from the site waste rock piles is contained within
the footprint of the operation and treated through the treatment process prior
to discharge to the natural environment. Mine water from the underground
workings will also be directed to ponds and treated through the effluent
treatment plant (ETP) prior to discharge. The treatment process will ensure
that all Environmental Compliance Approval (ECA) criteria are met prior to
discharging into the natural environment.

To protect Thunder Creek, and maintain flows within the system,
un-impacted storm water is diverted away from Thunder Creek. Storm water is
captured and treated prior to discharge to the natural environment.

The development of the mine will create a disturbance footprint
on the terrestrial environment. Baseline work did not identify the possibility
of provincially or federally listed fauna species on the site that will trigger
concern. The Closure Plan will reduce this disturbance area at closure and
disturbed areas will be rehabilitated with the intent of returning the site to a
productive use (i.e. forestry) resulting in limited long-term impact to the
area.

A closure plan for the bulk sampling was filed with the MNDM in
October 2009 and the commercial production closure plan was filed in 2010. In
January 2011, Lake Shore announced the Timmins Mine to be in commercial
production. The closure plan has been amended as required; most recently, the
3rd mine production closure plan amendment was submitted to ensure site
compliance with Ontario Regulation 240/00. At closure, the site will be
rehabilitated in accordance with closure plans filed with the MNDM.

Lake Shore and two First Nations, namely Mattagami and Flying
Post First Nations, entered into an IBA in February, 2011, which outlines how
Lake Shore and the First Nations communities will work together in the following
areas: education and training of First Nation community members, employment,
business and contracting opportunities, financial considerations and
environmental provisions.

Environmental monitoring will be conducted in accordance with
regulatory and due diligence requirements. The monitoring program will be
compiled in a management system.

GEOLOGY AND MINERALIZATION

The Timmins region comprises supracrustal rocks within the
Western Abitibi Subprovince, of the Superior Province. Lithologic units in the
region consist of seven volcanic and two sedimentary assemblages of Archean age
that were subsequently intruded by porphyry rocks during the Archean and
Proterozoic times.

The Timmins West Complex is dominated by mafic volcanic and
sedimentary rocks of the Tisdale, Deloro and Porcupine Groups that occur within
a broad basin which opens to the east. Rocks within the basin generally strike
east-west with moderate north dips. These rocks are cut by a series of
ultramafic to felsic intrusions. Key structural features of the property include
the Destor Porcupine Fault Zone (DPFZ) which passes through the south portion
of the interpreted basin and the 144 and Gold River Trends which occur on the
north and south basin limbs. These two trends represent intense zones of
alteration and deformation that control all of the main gold occurrences
identified on the property.

The Timmins Deposit, Thunder Creek Deposit, and 144 Gap Deposit
all occur along the 144 Trend, a broad and extensive structural corridor that
extends to the southwest from the Timmins Deposit. This trend generally
coincides with the northeast trending contact zone between southeast facing
mafic metavolcanic rocks of the Tisdale Assemblage (to the northwest) and
dominantly metasedimentary rocks that unconformably overlie Porcupine Assemblage
(to the southeast).

Gold mineralization occurs in steep north-northwest plunging
mineralized zones which coincide with parallel lineations related to folds and
elongate lithologic units. Mineralization occurs within, or along favourable
lithostructural settings in proximity (within hundreds of metres) to the 144
Trend and related structures (i.e., Holmer and Rusk Shear Zones). Mineralization
comprises multiple generations of quartz-carbonate-tourmaline ± albite veins,
associated pyrite alteration envelopes, and disseminated pyrite mineralization.
Textural evidence suggests that veining formed progressively through D3 and D4
deformation and is related to Alkalic Intrusive Complex (AIC) and syenitic to
monzonitic intrusions.

|74 | Tahoe Resources Inc.
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EXPLORATION

Prior to 2003, all exploration on the Timmins West Mine area
was carried-out by previous operators. Since 2003, exploration on the Timmins,
Thunder Creek, and 144 Gap deposits by Lake Shore has consisted primarily of
diamond drilling. Through the end of 2016, Lake Shore has completed nearly
500,000 meters of drilling in 929 drill holes. Other exploration activities from
2003 to present consisted of basic geological and structural mapping,
prospecting, outcrop stripping, litho-geochemical sampling, and MMI soil
geochemical surveys.

Geophysical surveys including airborne magnetics as well as
surface and downhole IP were also completed as part of various research projects
by consultants or through university academic studies. These campaigns have
helped form the current level of geological understanding necessary to generate
useful drill targets for advanced exploration of the Timmins West Mine area.

2016 Exploration

Exploration throughout the Timmins district in 2016 (since the
April 1, 2016 merger with Lake Shore) totaled 101,927 metres of resource infill
and definition drilling and 66,800 metres of exploration drilling. 2016
exploration programs are summarized below:

Timmins Deposit

Exploration of the Timmins Deposit
tested the down plunge extension of the Timmins Deposit Fold Nose (TDFN) from
underground platforms. Results to date have proven the extension of
predominantly ultramafic-style mineralization along the fold nose approximately
150 metres below the current resource limit. A deep drill hole which commenced
in September 2016 and completed in February 2017 successfully intersected the
TDFN structure approximately 400 metres below the current resource limit.

144 Trend

Exploration drilling in the 144 Gap
area tested both near-mine expansion targets and potential new discoveries.
Specific exploration targets included stratigraphic contacts and structural
features between the 144 Gap and Gap SW Zones, and potential new zones at the
Thunder Creek Stock target areas.

Underground and surface drilling at the
144 Gap deposit was designed to support updated resource and reserve estimates
and detailed mine planning. The most recent drilling defined the resource at 7
to 15 metre drill spacing with results generally in line with the previous
resource estimate for the deposit. An initial reserve estimate for the 144 Gap
deposit is expected in 2017.

Drilling along the general 144 Trend
targeted the 144 South Zone located approximately 1.6 kms southwest of the 144
Gap Deposit. Drilling at 144 South succeeded in extending mineralization along a
syenite porphyry approximately 65 metres to the east and to depth, and 50 to 150
metres to the west from where previously recognized. Mineralization is now
defined over a 300 metre strike length and 700 metre vertical window along a
distinct southwest trending, north-westerly dipping corridor which remains open
to depth and at least 1.5 kms along strike to the southwest.

Gold River Trend

Surface drilling along the Gold River
Trend, located 4 km south of the Timmins West Mine focused on testing depth
extensions of the West and East deposits. At Gold River West drilling extended
mineralization 250 metres below the current resource and 150 metres west of
previously reported intercepts. At Gold River East recent drilling intersected
mineralization 300 metres below the current resource limit.

Wide-spaced drilling along the 1.5 km
untested corridor west of Gold River West and towards the 144 Trend confirmed
alteration and structural continuity but returned low-grade gold values.
Drilling at Gold River will continue in 2017 with 6,500 metres of drilling
planned.

SAMPLE PREPARATION, ANALYSIS AND SECURITY

Diamond Drill Programs

For both surface and underground drill samples a secure chain
of custody follows diamond drill core and from the drill though analysis with
the return of sample pulps to a locked on site storage facility. Unannounced
visits to the drill sites are made to ensure safety, good working practices, and
drill core security.

The diamond drill contractors secure the drill core boxes at
the drill site and deliver them to the core logging facilities located at Lake
Shores exploration office in Timmins, Ontario. Lake Shore personnel then check
and label boxes and core blocks with hole number, box number, and footage and
prepare a summary log.

The core is then logged by a geologist entering data directly
into Drill Logger software developed by Geovia GEMS describing geology,
structure, alteration, and mineralization. Intervals to be sampled are indicated
by the geologist, sample tags are inserted, rock quality designation
measurements and photographs are taken, and the log is printed, reviewed, and
edited. The core is then given to a trained and supervised technician for
sampling. The core is split by trained Lake Shore technicians using a diamond
saw. One half of the core is placed in a plastic sample bag and the remaining
half is returned to the core box. Lake Shore uses sequentially numbered
triplicate sample tags. One portion of the tag goes in the sample bag along with the split half of the
sample, one portion of the tag is stapled into the core box at the end of the
sample interval, and the third stays in the sample book for archiving. Once the
sampling is completed, all drill core is stored in racks or square piled in a
secure compound at the core logging facilities or at the Timmins West Mine
compound.

|Annual Information Form for the Year Ended December 31,
      2016 | 75
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The analytical samples are enclosed within sealed shipping
bags, are transferred into larger shipping bins, and are directly delivered to
the selected analytical labs by Lake Shore employees. The lab employee that
receives the sample shipment signs a chain of custody document that is returned
to Lake Shores office for reference and filing. The return assay results are
processed by the database manager and are reviewed by Professional
Geoscientists. Data is made available for viewing by authorized members of the
Lake Shore geological and management staff.

Since 2007, all samples from surface exploration programs have
been delivered by Lake Shore personnel directly to the ALS Chemex Prep Lab in
Timmins. The pulps were created in Timmins and then shipped to the ALS Chemex
Assay Laboratory in Vancouver, B.C., or Rouyn-Noranda, PQ. As part of ALS
internal QA/QC program, a duplicate reject sample was prepared every 50 samples.

For surface samples the number of internal blanks, standards
and duplicate control samples inserted into the sample stream depends upon rack
size. Blank samples are inserted at a random frequency of one every 1 to 40
samples and are used to check for possible contamination in the crushing circuit
and are not placed after a standard sample. Standard samples are inserted into
the sample stream at a frequency of one every 1 to 40 samples and are used to
check the precision of the analytical process.

Since May 9, 2013 a special protocol has been followed for
underground samples where visible gold VG is observed which ensures that
proper cleaning of crusher and pulverizers are carried out in the prep lab in
order to avoid and/or minimize cross-contamination of subsequent samples.

For underground drill samples collected from 2008 to March 18,
2013, the introduction of blank samples, certified gold standards, and blind
coarse duplicates in the sample stream were generally done at a frequency of one
per every group of 20 samples. As of March 18, 2013, this protocol was changed
to one blank, one coarse duplicate, and one gold standard for every group of 40
samples.

MINERAL RESOURCES

At January 1 2017, the Timmins West Mine Mineral Resource
totals 7.9 million tonnes with an average gold grade of 4.02 g/t, containing
1.02 million ounces of gold in the Indicated Mineral Resource category and 1.3
million tonnes with an average gold grade of 4.15 g/t containing 179.1 thousand
ounces of gold in the Inferred Mineral Resource category. Subdivision of the
Mineral Resource between the Timmins, Thunder Creek, and 144 Gap Deposit is
tabulated in Table 1.1 below.

TABLE 1.1:       TIMMINS WEST MINE MINERAL RESOURCE ESTIMATE
JANUARY 1, 2017

Tonnes (M)
    Au
      Grade (g/t)
    Au
      Ounces (000s)Timmins Deposit @ 1.5 Au g/t cut-offIndicated
    1.3
    4.82
    200Inferred
    0.6
    4.71
    83Thunder Creek @ 1.5 Au g/t cut-offIndicated
    1.3
    3.76
    163Inferred
    0.1
    4.03
    17144 Gap Deposit @ 2.6 Au g/t cut-offIndicated
    5.3
    3.89
    661Inferred
    0.7
    3.72
    80Total Timmins West MineIndicated
    7.9
    4.02
    1,023Inferred
    1.3
    4.16
179


The Mineral Resource model for the Timmins West Mine deposits
was updated at the end of May 2016. The Mineral Resource estimate effective
January 1, 2017 was estimated by subtracting from the updated resource model the
actual mine depletion volumes from June through October 2016 and the forecasted
production from November through December 2016.

|76 | Tahoe Resources Inc.
|-- | --------------------

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MINERAL RESERVES

Probable Mineral Reserves at January 1, 2017 for the Timmins
West Mine are summarized in Table 1.2 below.

TABLE 1.2: TIMMINS WEST MINE ESTIMATED PROBABLE MINERAL
RESERVES AT JANUARY 1, 2017

Deposit
    Tonnes (M)
    Au
      Grade (g/t)
    Au
      Ounces (000s)Timmins Deposit
    1.2
    3.89
    145Thunder Creek Deposit
    0.8
    3.42
    88Timmins West Mine Total Reserves
    2.0
    3.69
    233


Mineral Reserves are reported at a gold cut-off grade of 2.0
grams per tonne. The cut-off grade includes estimated mining and site G&A
costs of $55.81 per tonne, surface haulage costs of $6.30 per tonne, milling
costs of $17.55 per tonne, mining recovery of 95%, external dilution of 16% for
the Timmins deposit and 13% for the Thunder Creek deposit, and a metallurgical
recovery of 97%. Mineral Resources are inclusive of Mineral Reserves. There are
no Mineral Reserves for the 144 Gap deposit, though the Company anticipates
releasing the inaugural Mineral Reserve estimate for 144 Gap in Q3 2017.

To calculate the Mineral Reserves from the Mineral Resources,
the Indicated Mineral Resources were isolated from Inferred Mineral Resources
and assessments were made of the geometry and continuity of each of the
mineralized zones. Geomechanical evaluations were taken into account in the
assessment and assignment of appropriate mining methods and stope sizes.
Individual stope designs (wireframes) were then created in three dimensions.
These stope wireframes were queried against the block models to determine the
in-situ Mineral Resource. This allowed for fair inclusion of internal dilution
from both low grade and barren material. Additional factors were assigned for
external dilution (with or without grade) dependent on the specific mining
method and geometry of each stoping unit being evaluated. Finally, a recovery
factor was assigned to the overall Mineral Reserves to allow for in-stope and
mining process losses.

Stope cut-off grades were estimated to determine which stopes
to include in the Mineral Reserves. Detailed mine development layouts and
construction activities were assigned to provide access to each of the stoping
units. A detailed LOM development and production schedule was prepared to
estimate the annual tonnes, average grade, and ounces mined to surface.
Development, construction, and production costs were estimated to allow an
economic assessment to be made comparing the capital and operating expenses
required for each area to the expected revenue stream to ensure economic
viability.

MINING OPERATIONS

The Thunder Creek, Timmins, and 144 Gap deposits at the Timmins
West Mine are accessed by a production shaft and portal/ramp from surface. .
Production from the Thunder Creek and Timmins deposits comes from a combination
of ore development and tranverse and longitudinal longhole stoping at 20 metre
vertical intervals.

Mining at the Timmins deposit was initiated in the second half
of 2009 via the main ramp from surface that had been developed to a depth of 200
vertical metres while the production shaft was being constructed. The current
mine plan forecasts production to average approximately 980 tonnes of ore per
day from 2017 through 2019 before ramping down and ending in 2020. From 2009
through 2016, 2.4 million tonnes of ore with an average gold grade of 4.4 g/t
and containing 333 thousand ounces of gold have been mined from the Timmins
deposit and delivered to the Bell Creek mill.

Access to the Thunder Creek Deposit was gained by developing
ramps from the Timmins deposit 200 metre level (accessing Thunder Creek Rusk
Zone at the 300 metre level) and 650 metre level (accessing Thunder Creek
Porphyry Zone at the 730 metre level). The Rusk horizon was intersected in July
of 2010 and the Porphyry Zone in November 2010. Access within the Thunder Creek
Deposit was greatly improved with the successful connection of the down-ramp
driven from the 300 metre level and the up-ramp driven from the 730 metre level
completed in 2015. The current mine plan forecasts production to average
approximately 1,400 tonnes of ore per day in 2017 before ramping down and ending
in late 2018. From 2010 through 2016, 2.5 million tonnes of ore with an average
gold grade of 4.4 g/t and containing 535 thousand ounces of gold have
been mined from the Thunder Creek deposit.

The 144 Gap deposit was initially discovered in late 2014 as
part of a successful surface diamond drilling campaign. The Gap deposit is
accessible via a 1,317 metre ramp and hanging-wall exploration drift (820 metre
level) driven to the southwest from the 765 metre level at Thunder Creek.
Initial development and trial stoping of the 144 Gap deposit began in Q3 2016.

The mine design used for the updated Mineral Reserve Estimate
is based on operating experience gained since commercial production commenced in
2011. The majority of the main mine infrastructure (surface and underground) is
in place and the Bell Creek Mill expansion project has been completed to meet
current production requirements. The Timmins West Mine successfully uses the
longhole mining method which is commonly used worldwide for deposits with
similar geometry and conditions. The operation also uses common, proven mining
equipment and has experienced management and mine operations personnel. The
Timmins area has a significant, well-established mining service/supply industry
to support the operation.

The Timmins West Mine has implemented systems and programs
(i.e. health and safety, environment, training, maintenance, operating
procedures, etc.) necessary to sustain production. This experience has also
provided a solid basis for estimating the capital and operating costs used in
preparation of the LOM plan.

|Annual Information Form for the Year Ended December 31,
      2016 | 77
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Table 1.3 is the life of mine production profile for the
Timmins West Mine based on the January 1, 2017 Mineral Reserve estimate. TABLE
1.3: ESTIMATED LIFE OF MINE PRODUCTION PROFILE

Item
    2017
    2018
    2019
    2020
    TotalOre Tonnes (M)
    874.9
    644.7
    358.1
    84.0
    1,961.7Average Tonnes Per Day
    2,397
    1,766
    981
    976
    -Average Au Grade (g/t)
    3.76
    3.64
    3.65
    3.63
    3.69Gold Ounces Mined (000s)
    105.7
    75.4
    42.1
    9.8
    233.0


CLOSURE AND RECLAMATION

Mine closure is the orderly safe and environmental conversion
of an operating mine to a closed-out state.

The development of a walk-away, no active management scenario
is a primary environmental management goal for this project. The long-term
environmental management issues associated with the project have been identified
in the Mining Act and relate to ore hoisted to surface, waste rock dumps, open
holes to surface and overall construction of permanent structures. Other
secondary issues, such as returning the site to a productive use (i.e. forestry)
will be accommodated within the context of the Closure Plan.

Should Lake Shore identify and require an area to store rock
which poses a metal leaching risk, this will be conducted on the waste-rock
containment pad during the life of the mine. Runoff from this low permeability
pad will be directed to the containment pond, preventing a release of water with
potentially high concentrations of metals. Water from the containment pond will
be recycled for use as process water with the excess being treated and released
to the environment in accordance with regulatory requirements. However, with the
extensive sampling program initiated by the Timmins West Mine facility, the
analytical data collected does not identify any potential acid generating or
metal leaching issues.

At the conclusion of the mine life, the closeout rehabilitation
measures summarized below will be implemented.

| |  | Removal of surface buildings and associated
      infrastructure.                                                  
| | - | -------------------------------------------------------------------------------------------------------------------
| |  | Dewatering the ponds by pumping treated
      effluent through the approved discharge location.                    
| |  | Breaching of existing ponds to all natural
      flows and remediated site drainage to their background watersheds.
| |  | Allowing the underground workings to naturally
      submerge with local groundwater.                              
| |  | Securing of mine openings in accordance with
      regulatory requirements.                                        
| |  | Contouring of waste rock.                                                                                          
| |  | Contouring, covering, and re-vegetating
      disturbed areas using available overburden.                          

Infrastructure will be removed from the site and any other
disturbed areas associated with the project will be re-vegetated, mainly through
natural regeneration using seed banks in the overburden stored on site.

OPERATING COSTS

The estimated capital and operating costs as presented in the
Timmins West Technical Report were based on Lake Shores operating experience at
the Timmins West Mine and the Bell Creek Mill.

The estimated LOM capital and operating costs are summarized in
Table 1.4.

TABLE 1.4:      ESTIMATED LOM CAPITAL AND OPERATING COSTS

Cost Item
    Total CostsCapital Cost
    $82.6 MOperating Cost
    $296.0 M ($102.2 per
      tonne)


The costs and productivities used as the basis for estimating
the Mineral Reserves have been based on actual performance metrics of the
operation in 2011 through 2016. These factors are considered low risk to the
Mineral Reserve Estimate. In addition, social, political, and environmental
factors are all considered to be low risk factors for the continued operation of
the Timmins West Mine and to the Mineral Reserves Estimate.

|78 | Tahoe Resources Inc.
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CONCLUSIONS AND RECOMMENDATIONS

The Timmins West Technical Report made the following
recommendations for Mineral Resource estimation and Mineral Resource
development:

| |  | Continue to evaluate alternate estimation
      methods such as ordinary or indicator kriging to assess whether they
      provide any improvements for grade estimation can on a local scale.                                                                                                                                                                                                                                                                                                                                           
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Evaluate the use of spherical search
      ellipsoids for certain zones at the 144 Gap Deposit in order to reduce
      artifacts in grade estimation caused by a drill hole orientations.                                                                                                                                                                                                                                                                                                                                               
| |  | Complete some additional studies to evaluate
      capping levels for various zones at the 144 project.                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | Collect some additional specific gravity data
      for mineralized zones. Work to date suggests that all three of the
      deposits at the Timmins West Mine have a variety of rock types and that
      the SG within the rock types can vary considerably so more data would be
      beneficial for Mineral Resource Estimates. Implement definition drilling
      of Indicated Mineral Resources to refine shapes and grade estimates as
      necessary for detailed mine planning. Review this program on an annual
      basis.

|MINERAL
      RESOURCE & MINERAL RESERVE DISCLOSURE
|---------------------------------------------------

ESCOBAL

The basis of the Escobal Mineral Resources and Mineral Reserves
is from Escobal Mine Guatemala NI 43-101 Feasibility Study,dated
November 5, 2014. Mineral Resources at January 1, 2017 estimated by subtracting
mine depletion volumes through December 31, 2016 from the Mineral Resources
stated in the aforementioned technical report. Mineral Resources are reported at
a silver-equivalent cut-off grade of 130 g/t using metal prices of $22/oz
silver, $1,325/oz gold, $1.00/lb lead and $0.95/lb zinc. Mineral Reserves at
January 1, 2017 calculated by applying an optimized mine plan to the updated
Mineral Resources. Mineral Reserves are reported using a cut-off calculated from
the net smelter return value less production costs using metal prices of $20/oz
silver, $1,300/oz gold, $1.00/lb lead and $1.25/lb zinc.

LA ARENA

The basis of the La Arena Mineral Resources and Mineral
Reserves is from La Arena Project, Peru Technical Report (NI 43-101),
dated February 27, 2015. Oxide Mineral Resources and Mineral Reserves at January
1, 2017 calculated by subtracting July through December 2016 mine depletion
volumes from an updated Mineral Resource estimate effective July 1, 2016.
Sulfide Mineral Resources and Mineral Reserves remain unchanged from the
aforementioned technical report. Oxide Mineral Resources are reported at a gold
cut-off grade of 0.10 g/t within a $1,400/oz gold pit shell. Oxide Mineral
Reserves are reported using a gold cut-off grade of 0.15 g/t for planned 2017
production and 0.10 g/t for post-2017 forecasted production within a pit
designed from a $1,200/oz gold pit shell. Sulfide Mineral Resources are reported
using a copper cut-off grade of 0.12% within a $3.50/lb copper and $1,400/oz
gold pit shell. Sulfide Mineral Reserves are reported using a copper cut-off
grade of 0.18% within a pit designed from a $3.00/lb copper and $1,200/oz gold
pit shell.

SHAHUINDO

The basis of the Shahuindo Mineral Resources and Mineral
Reserves is from Technical Report on the Shahuindo Mine, Cajabamba, Peru,
dated January 25, 2016. Mineral Resources and Mineral Reserves at January 1,
2017 calculated by subtracting July through December 2016 mine depletion volumes
from an updated Mineral Resource estimate effective July 1, 2016. Sulfide
Mineral Resources remain unchanged from the aforementioned technical report.
Oxide Mineral Resources are reported using a gold cut-off grade of 0.15 g/t
within a $1,400/oz gold pit shell. Oxide Mineral Reserves are reported using a
gold cut-off grade of 0.25 g/t for planned 2017 and 2018 production and 0.18 g/t
for production post-2018 within a pit designed from a $1,200/oz gold pit shell.
Sulfide Mineral Resources are reported using a gold cut-off grade of 0.5 g/t.
There currently are no sulfide Mineral Reserves at Shahuindo.

BELL CREEK

The basis of the Bell Creek Mineral Resources and Mineral
Reserves is from NI 43-101 Technical Report, Updated Mineral Reserve Estimate
for Bell Creek Mine, Hoyle Township, Ontario, Canada, dated March 27, 2015.
Mineral Resources and Mineral Reserves at January 1, 2017 calculated by
subtracting June through October 2016 mine depletion volumes and November
through December 2016 forecasted production from an updated Mineral Resource
estimate effective June 1, 2016. Mineral Resources are reported using a gold
cut-off grade of 2.2 g/t. Mineral Reserves are reported using a gold cut-off
grade of 2.2 g/t and a gold price of $1,250/oz.

TIMMINS WEST

The basis of the Timmins West Mine Mineral Resources and
Mineral Reserves is from 43-101 Technical Report, Updated Mineral Reserve
Estimate for Timmins West Mine and Initial Resource Estimate for the 144 Gap
Deposit, Timmins, Ontario, Canada, dated February 29, 2016. Mineral
Resources and Mineral Reserves at January 1, 2017 calculated by subtracting June
through October 2016 mine depletion volumes and November through December 2016
forecasted production from an updated Mineral Resource estimate effective June
1, 2016. Mineral Resources are reported using a gold cut-off grade of 1.5 g/t.
Mineral Reserves are reported using a gold cut-off grade of 2.0 g/t and a gold
price of $1,250/oz.

WHITNEY

The basis of the Whitney Mineral Resources are at January 14,
2014 is from Technical Report and Resource Estimate on the Upper Hallnor,
C-Zone, and Broulan Reef Deposits, Whitney Gold Property, Timmins Area, Ontario,
Canada, dated February 26, 2014. Mineral Resources are reported using a gold
cut-off grade of 3.0 g/t.

|Annual Information Form for the Year Ended December 31,
      2016 | 79
|------------------------------------------------------------------ | --

---

GOLD RIVER

The basis of the Gold River Mineral Resources at January 17,
2012 is from Technical Report on the Update of Mineral Resource Estimate for
the Gold River Property, Thorneloe Township, Timmins, Ontario, Canada, dated
April 5, 2012. Mineral Resources are reported using a gold cut-off grade of 2.0
g/t.

JUBY

The basis of the Juby Mineral Resources at February 24, 2014 is
from Technical Report on the Updated Mineral Resource Estimate for the Juby
Gold Project, Tyrrell Township, Shining Tree Area, Ontario, dated February
24, 2014. Mineral Resources are reported using a gold cut-off grade of 0.40 g/t,

FENN-GIB

The basis of the Fenn-Gib Mineral Resources at November 17,
2011 is from Fenn-Gib Resource Estimate Technical Report, Timmins Canada,
dated November 17, 2011. Indicated Mineral Resources and approximately 90% of
Inferred Mineral Resources within a $1,190/oz gold pit shell reported using a
gold cut-off grade of 0.50 g/t. The remaining 10% of Inferred Mineral Resources
reported using a gold cut-off grade of 1.5 g/t.

|DIVIDENDS DISTRIBUTIONS AND REINVESTMENT
      PLAN
|---------------------------------------------------

In December 2014 the Company paid its inaugural cash dividend
of $0.02 per Share per month, and additional $0.02 per Share dividends were paid
each month in 2015, 2016 and 2017 to date. Although the Company expects to
continue paying monthly dividends, pursuant to the Companys dividend policy,
the continuation and amount of the dividend is to be determined by the Board,
with regard to the earnings and financial requirements of the Company and other
applicable conditions existing at such time. No dividends were declared or paid
prior to December 2014.

The Company implemented a Dividend Reinvestment Plan (DRIP) in
October 2016, which continues to be open for enrollment to qualified
participants. The DRIP allows shareholders to reinvest their cash dividends into
additional common shares issued from treasury at a 3% discount to the Average
Market Price (as defined in the DRIP). Dividends are paid only when declared by
Tahoes Board of Directors and the Company may, in its discretion, change or
eliminate the discount applicable to treasury acquisitions, or direct that
common shares be purchased through market acquisitions at the prevailing market
price, in which case no discount applies. Tahoe filed a registration statement,
including a prospectus, relating to the DRIP with the SEC. A copy of the
registration statement (including prospectus) is available electronically from
EDGAR (http://www.sec.gov/edgar).

Dividends declared and paid during Q4 2016 and 2016 totaled
$18.7 million and $69.4 million, respectively (Q4 2015 and 2015: $13.6 million
and $49.7 million, respectively). Dividends paid in 2016 consist of cash and
non-cash payments in the form of common shares of the Company through the
dividend reinvestment plan. For Q4 2016 and 2016, cash payments were $16.3
million and $67.0 million, respectively, and non-cash payments were $2.4 million
and $2.4 million, respectively for a total issuance of 256,747 common shares of
the Company.

|DESCRIPTION OF CAPITAL STRUCTURE
|--------------------------------

The Company is authorized to issue an unlimited number of
Shares. As at the date of this AIF, 311,736,296 Shares were issued and
outstanding as fully paid and non-assessable Shares.

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

|MARKET FOR SECURITIES
|---------------------

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

|80 | Tahoe Resources Inc.
|-- | --------------------

---

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

TRADING PRICE
      (CAD$)2016
    High
    Low
    VolumeJanuary
    13.26
    9.45
    18,257,100February
    13.42
    9.92
    37,051,700March
    15.07
    11.77
    33,534,600April
    17.72
    12.71
    51,264,400May
    17.88
    14.76
    29,176,800June
    19.48
    15.30
    31,373,600July
    22.05
    18.75
    23,681,100August
    22.13
    16.98
    25,497,600September
    19.28
    16.71
    20,806,800October
    16.91
    14.43
    22,957,300November
    16.91
    11.95
    33,403,900December
    13.93
    11.13
    26,772,700


TRADING PRICE
      (CAD$)2017
    High
    Low
    VolumeJanuary
    15.11
    11.27
    41,066,700February
    12.59
    10.57
    23,268,000


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

The price of the Shares as reported by the TSX at the close of
business on December 30, 2016, the last business day of the year in Canada, was
CAD$12.65 per share and on March 8, 2017 was CAD$10.73 per share.

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

TRADING PRICE
      (USD)2016
    High
    Low
    VolumeJanuary
    9.42
    6.48
    24,710,300February
    9.71
    7.12
    34,563,100March
    11.54
    8.78
    45,666,900April
    14.13
    9.70
    53,826,100May
    14.29
    11.50
    44,361,700June
    15.01
    11.68
    50,225,700July
    16.84
    14.16
    37,962,700August
    17.01
    12.93
    46,026,500September
    14.95
    12.73
    43,371,000October
    12.91
    10.92
    40,268,600November
    12.65
    8.87
    58,488,200December
    10.65
    8.30
    47,640,100


TRADING PRICE
      (USD)2017
    High
    Low
    VolumeJanuary
    11.43
    8.59
    58,592,600February
    9.58
    8.03
    47,251,200


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

The price of Shares as reported by the NYSE at the close of
business on December 30, 2016, the last business day of the year in the US, was
$9.42 and on March 8, 2017 was $7.94 per share.

|Annual Information Form for the Year Ended December 31,
      2016 | 81
|------------------------------------------------------------------ | --

---

|PRIOR SALES
|-----------

In the 12-month period ended December 31, 2016, the Company
granted 1,351,000 options and 402,000 share awards (consisting of 342,000
Deferred Share Awards granted on April 1, 2016 (234,000), August 10, 2016
(99,000) and August 15, 2016 (9,000), and 60,000 Restricted Share Awards granted
on May 4, 2016) under its Share Option and Incentive Share Plan adopted on April
20, 2010. The details of the options granted by the Company during the year
ended December 31, 2016 are as follows:

Grant Date
    Options Granted
    CAD$
    Expiry DateMarch 9, 2016
    1,081,000
    $12.38
    March 9, 2021April 4, 2016
    186,000
    $13.01
    April 4, 2021August 15, 2016
    45,000
    $21.22
    August 15, 2021November 3, 2016
    27,000
    $15.79
    November 3, 2021November 7, 2016
    12,000
    $15.20
    November 7, 2021


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

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

The following tables set forth information regarding our
directors and executive officers. The term of office for the Directors expires
as of the Companys Annual General Meeting which will be held on May 3, 2017.

DIRECTORSName and Municipality of Residence
    Position(s) withthe
      Company
    Date ofAppointment
    Principal OccupationRONALD W. CLAYTON Reno, Nevada, United States
    Director
    9-Aug-16
    President and Chief Executive Officer of the
      CompanyTANYA JAKUSCONEK(3)(4) Toronto, Ontario,
      Canada
    Director
    2-May-11
    Senior Gold Research Analyst for Scotia BankCHUCK JEANNES(2)(3) RENO, NEVADA, UNITED
      STATES
    Director
    1-Jan-17
    Independent directorDRAGO G. KISIC(1)(4) Lima, Peru
    Director
    1-April-15
    President of Macrocapitales Safi and Bodega San
      NicolasC. KEVIN MCARTHUR(5)Reno, Nevada, United
      States
    Executive Chair
    7-Apr-15
    Executive Chair of the CompanyALAN MOON(1)(4) CALGARY, ALBERTA, CANADA
    Director
    1-Apr-16
    Corporate directorA. DAN ROVIG(2)Reno, Nevada, United States
    Lead Director
    8-Jun-10
    Independent consultantPAUL B. SWEENEY(1)(3) Vancouver, British
      Columbia, Canada
    Director
    14-Apr-10
    Independent business consultantJAMES S. VOORHEES(2)(4) Santa Barbara,
      California, United States
    Director
    14-Apr-10
    Independent directorKENNETH F. WILLIAMSON(1)(3)Dwight, Ontario,
      Canada
    Director
    8-Jun-10
    Independent directorKLAUS M. ZEITLER(2)(3)Vancouver,
      British Columbia, Canada
    Director
    1-April-15
    President, CEO and director of Amerigo
Resources Limited


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

|82 | Tahoe Resources Inc.
|-- | --------------------

---

EXECUTIVE
      OFFICERSName and Municipality ofResidence
    Position(s) withthe Company
    Date ofAppointment
    Principal OccupationC. KEVIN MCARTHUR Reno, Nevada, United States
    Executive Chair and Director
    7-April-15
    Executive Chair of the CompanyRONALD W. CLAYTON Reno, Nevada, United States
    President and Chief Executive Officer
    9-Aug-16
    President and Chief Executive Officer of the
      CompanyELIZABETH MCGREGOR Reno, Nevada, United States
    Vice President and Chief Financial Officer
    9-Aug-16
    Vice President and Chief Financial Officer of
      the CompanyBRIAN BRODSKY Reno, Nevada, United States
    Vice President, Exploration
    1-Jun-10
    Vice President, Exploration of the CompanyEDIE HOFMEISTER 
      Reno, Nevada, United States
    Vice President, Corporate Affairs, General Counsel and
      Corporate Secretary
    1-Feb-10
    Vice President, Corporate Affairs, General Counsel and
Corporate Secretary of the Company


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

Ron Clayton, Director, President and Chief Executive
Officer. Mr. Clayton was appointed President and Chief Executive Officer on
August 16, 2016, when he also became a member of the Board of Directors. Mr.
Clayton joined the Company on March 30, 2010 as the Companys first Chief
Operating Officer and was appointed President on March 12, 2014. Mr. Clayton is
a seasoned mining executive with over 35 years of mine operating experience. As
a member of Tahoes founding executive team, Mr. Clayton led the construction of
the Escobal Mine. Prior to joining Tahoe, he was Senior Vice President,
Operations, and the General Manager of several underground mines for Hecla
Mining Company. He also held the position of Vice President, Operations with
Stillwater Mining Company and a number of engineering and operations management
positions with Climax Molybdenum Company and Homestake Mining Company. Mr.
Clayton earned his Bachelor of Science Degree in Mining Engineering from the
Colorado School of Mines and is a graduate of the Tuck School of Business
Executive Program at Dartmouth College.

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.

Chuck Jeannes, Director. Mr. Jeannes was appointed to
the Board of Directors effective January 1, 2017. He served as President and
Chief Executive Officer of Goldcorp from 2009 until April, 2016, and Executive
Vice President, Corporate Development from 2006 until 2008. From 1999 until the
acquisition of Glamis Gold Ltd. by Goldcorp, he was Executive Vice President,
Administration, General Counsel and Secretary of Glamis. Prior to joining
Glamis, Mr. Jeannes worked for Placer Dome Inc. (Placer Dome), most recently
as Vice President of Placer Dome North America. He holds a Bachelor of Arts
degree from the University of Nevada and graduated from the University of
Arizona School of Law with honours in 1983. He practiced law from 1983 until
1994 and has broad experience in capital markets, mergers and acquisitions,
public and private financing and international operations.

Drago G. Kisic, Director.Mr. Kisic holds a B.S. from
Pontificia Universidad Católica del Perú and a Masters degree (B-Phil) from
Oxford University. As a founding partner and current Director of Macroconsult
and Macroinvest, Mr. Kisic advised the Government of Peru during the
privatization of Centromin, Minero-Peru, Hierro-Peru and Peru's telephone and
telecommunications companies CPT and Entel-Peru. Mr. Kisic is a member of the
board of the Obrainsa (a construction company); Mapfre and Mapfre Peru Vida
(insurance companies); Haug (a steel contractor); and Corporación Rey (textile
related company). Currently, he is President of Macrocapitales Safi and Bodega
San Nicolás and is a member and former President of the Peruvian Center for
International Studies (CEPEI) and the Peruvian Institute of Business Management
(IPAE). Mr. Kisic was advisor to the Executive Director of the World Bank, and
was President of CONASEV (the Peruvian securities and companies' regulatory
authority) and Vice-president of the Lima Stock Exchange. Mr. Kisic was a member
of the board and head of the Economic Office and Manager of the Balance of
Payments & External Sector Bureau of Peru's Central Reserve Bank and member
of the board of Banco Financiero del Peru. He was also the Head of the Border
Integration Team during the peace negotiations between Peru and Ecuador.

C. Kevin McArthur, Executive Chair of the Board.Mr.
McArthur founded the Company and was appointed President and Chief Executive
Officer on November 10, 2009. On April 7, 2015, upon the completion of the
acquisition of Rio Alto, he assumed the role of Executive Chair of the Company.
From November 15, 2006 until his retirement in December 2008, he was President,
Chief Executive Officer and a Director of Goldcorp. He was President and Chief
Executive Officer of Glamis Gold Ltd. from January 1998 until it was acquired by
Goldcorp in November 2006 and served in a variety of management positions with
Glamis beginning in 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. degree in Mining Engineering from the University
of Nevada. He is currently a Director of Royal Gold, Inc.

Alan Moon, Director.Mr. Moon is a former senior
executive with significant international and Canadian business experience. For
the past 20 years he has served on the Board of Directors, including Board
Chair, on companies in a variety of industries that operated both
internationally and in Canada, including Oil and Gas Exploration and Production,
Electrical Generation and Distribution and Mineral Exploration and Production.
Mr. Moon was Chair of Lake Shore from 2005 until it was acquired by Tahoe. Mr.
Moon is very active in the charitable sector in Calgary having served on the
Board of Directors of a number of organizations. He is
currently the Chair of the Kahanoff Centre for Charitable Activities a unique
charity that owns and operates a significant office building that exclusively
rents space to charitable organizations. Mr. Moon has a B.Sc. Chem. Eng. from
the University of Alberta and an MBA from the University of Western Ontario. He
earned his ICD.D designation in 2005.

|Annual Information Form for the Year Ended December 31,
      2016 | 83
|------------------------------------------------------------------ | --

---

A. Dan Rovig, Lead Director.Mr. Rovig was the founding
Chair of the Board of the Company and served in that capacity from June 2010
until the completion of the acquisition of Rio Alto on April 1, 2015. Mr. Rovig
is currently the Lead Director of the Board of the Company. He was a Director
and Chairman of the Board of Glamis Gold Ltd. from November 1998 to November
2006 and a Director of Goldcorp from 2006 to 2014. Prior to November 1998, Mr.
Rovig served first as President of Glamis from September 1988 until his
appointment as a Director, and the President and Chief Executive Officer of
Glamis and its subsidiaries from November 1989 to August 1997 when he retired.
Prior to 1988, Mr. Rovig was an executive Officer of British Petroleum Ltd.,
including its subsidiaries Amselco Minerals Inc. and BP Minerals America for
five years. Prior experience included 16 years in the Anaconda Company in a
variety of positions from Metallurgist to Senior VP Operations. Mr. Rovig holds
a B.S. degree in Mining Engineering, a M.S. degree in Mineral Dressing
Engineering from Montana College of Mineral Science and Technology, and a Doctor
of Science degree, Honoris Causa, from Montana Tech of the University of
Montana. 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 a
Director of the Company since April 2010. He is currently also a Director of
OceanaGold Corporation. From May 2010 to May 2011, he was a part-time commercial
advisor to Plutonic Power Corporation and subsequently Alterra Power Corp. From
August 2009 to April 2010, he served as Plutonic Power Corporations President.
He was Executive Vice President, Corporate Development of Plutonic Power
Corporation from October 2008 to August 2009 and was Executive Vice President,
Business Development of Plutonic Power Corporation from January 2007 to October
2008. He was an independent business and financial consultant from 2005 to 2007
and was Vice President and Chief Financial Officer of Canico Resource Corp. from
2002 to 2005. Mr. Sweeney has over 35 years of experience in financial
management of mining and renewable energy companies.

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

Kenneth F. Williamson, Director. Mr. Williamson has been
a Director of the Company since June 2010 and 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. 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.

Klaus M. Zeitler, Director.Dr. Zeitler received his
professional education at Karlsruhe University from 1959 to 1966 and obtained a
PHD in economic planning. Dr. Zeitler is a member of the Canadian Institute of
Mining and Metallurgy and the Prospectors and Developers Association. Dr.
Zeitler financed, built and managed base metal and gold mines throughout the
world (Europe, Africa, North America, South America, and Pacific Region) with a
total investment value of $4 billion. Dr. Zeitler was a managing Director of
Metallgesellschaft AG, a German metals conglomerate, and in 1986 founded and was
a Director and CEO of Metall Mining, later Inmet, a TSX listed company with
assets of over $5 billion and base metal and gold mines in different parts of
the world. After having been a Director of Teck Cominco for many years, Dr.
Zeitler joined Teck Cominco in 1997 as Senior Vice President and had
responsibilities for the exploration and development of mines in Peru, Mexico
and the USA. Since his retirement from Teck Cominco in 2002, and in addition to
being Chairman and CEO of Amerigo Resources Limited, Dr. Zeitler has been
actively involved as a Director in various junior base and precious metal
companies. Dr. Zeitler served as Director of Rio Alto from June 2009 until its
acquisition by the Company on April 1, 2015.

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

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.

|84 | Tahoe Resources Inc.
|-- | --------------------

---

Elizabeth McGregor, Vice President and Chief Financial
Officer.Ms. McGregor was appointed Vice President and Chief Financial
Officer of the Company on August 9, 2016. Ms. McGregor is a Canadian Chartered
Professional Accountant (CPA, CA) and, prior to her current assignment, served
as Tahoes VP Treasurer. She directs financial planning, corporate liquidity,
financial reporting and risk management. Prior to joining Tahoe, she worked at
Goldcorp where she held various financial roles including Director of Project
Finance and Cost Control; Administration Manager at the Peñasquito mine; and
Director of Risk. Ms. McGregor began her career at KPMG as Audit Manager. She
holds a B.A. (Hons) from Queens University at Kingston.

As of March 8, 2017, our directors, executive officers and
employees, as a group, beneficially owned, directly or indirectly, or exercised
control or direction over vested Shares, representing approximately 1.5% 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 463,000
Deferred Share Awards and 2,793,898 options as at March 8, 2017.

|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, 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  Doing
Business in Guatemala, Peru and Canada  Risk Factors 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.

|MATERIAL CONTRACTS
|------------------

Tahoe has not entered into any material contracts, other than
material contracts entered into in the ordinary course of business, during the
most recently completed financial year that remain in effect.

|Annual Information Form for the Year Ended December 31,
      2016 | 85
|------------------------------------------------------------------ | --

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|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.

|INTERESTS OF EXPERTS
|--------------------

All scientific and technical information in this AIF relating
to the Escobal, La Arena, Shahuindo, Bell Creek and Timmins West Mines has been
verified by Charles Muerhoff, the Companys Vice President Technical Services
and Qualified Person as defined by NI 43-101. Mr. Muerhoff beneficially owns,
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 Chartered
Professional Accountants of British Columbia.

|SELECTED CONSOLIDATED FINANCIAL
      INFORMATION
|-------------------------------------------------

Selected audited consolidated financial information is as
follows:

|                           |   | Years Ended
      December 31, | 
|-------------------------- | - | ------------------------------ | 
|                           |   | 2016                           | 
|Revenues                   | $ | 784,503                        | 
|Earnings (Loss)            | $ | 117,876                        | 
|Earnings (Loss) Per Share  |   |                                | 
|Basic                      | $ | 0.41                           | 
|Diluted                    | $ | 0.41                           | 
|Cash and Cash Equivalents  | $ | 163,368                        | 
|Total Assets               | $ | 3,071,253                      | 
|Total Liabilities          | $ | 499,099                        | 
|Total Shareholders Equity | $ | 2,572,154                      | 

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

Further discussion of the Companys financial results is
contained in the Companys Financial Statements and Managements Discussion and
Analysis of Financial Condition and Results of Operations for the year ended
December 31, 2016.

|ADDITIONAL CORPORATE AND FINANCIAL
      INFORMATION
|----------------------------------------------------

Additional information relating to the Company, including
additional financial information contained in the audited annual financial
statements and the related Management Discussion and Analysis for the year ended
December 31, 2016, 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 9, 2017, can be found on SEDAR at
www.sedar.comor on the Companys website at
www.tahoeresources.com.

|INFORMATION CONCERNING THE COMPANYS
      AUDIT COMMITTEE AND EXTERNAL AUDITOR
|-------------------------------------------------------------------------------

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

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

On April 20, 2010, the Board adopted a charter for the Audit
Committee to follow in carrying out its audit and financial review functions.
The charter was amended effective April 13, 2012 in order to reflect certain
requirements applicable to audit committees under Rule 10A-3(b) under the
Exchange Act, in connection the Companys successful application to list its
common shares on the NYSE. The charter was further amended effective March 12,
2014, to include certain provisions clarifying the Audit Committees
responsibilities with respect to the Companys internal audit function, as
required by Section 303A.07 of the NYSE Listed Manual. This charter was further
amended effective August 2015 to add minor clarifications. This amended charter
can be found on our website at
www.tahoeresources.com/company-information/corporate-governance/.

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

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

|86 | Tahoe Resources Inc.
|-- | --------------------

---

|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. Kisic holds a B.S. from Pontificia Universidad Católica del
Perú and a Masters degree (B-Phil) from Oxford University. As a founding
partner and current Director of Macroconsult and Macroinvest, Mr. Kisic advised
the Government of Peru during the privatization of Centromin, Minero-Peru,
Hierro-Peru and Peru's telephone and telecommunications companies CPT and
Entel-Peru. Mr. Kisic is a member of the board of the Obrainsa (a construction
company); Mapfre and Mapfre Peru Vida (insurance companies); Haug (a steel
contractor); and Corporación Rey (textile related company). Currently, he is
President of Macrocapitales Safi and Bodega San Nicolás and is a member and
former President of the Peruvian Center for International Studies (CEPEI) and
the Peruvian Institute of Business Management (IPAE). Mr. Kisic was advisor to
the Executive Director of the World Bank, and was President of CONASEV (the
Peruvian securities and companies' regulatory authority) and Vice-president of
the Lima Stock Exchange. Mr. Kisic was a member of the board and head of the
Economic Office and Manager of the Balance of Payments & External Sector
Bureau of Peru's Central Reserve Bank and member of the board of Banco
Financiero del Peru. He was also the Head of the Border Integration Team during
the peace negotiations between Peru and Ecuador.

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

Mr. Williamson has been a Director of the Company since June
2010 and 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. 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.

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

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

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

The Audit Committee has reviewed the nature and amount of the
audit and non-audit services provided by Deloitte LLP to ensure auditor
independence. The following table sets out the aggregate fees billed in CAD$ for
services performed during the years ended December 31, 2016 and 2015 for the
category of fees described:

Financial Period
    Audit
    Fees(1)Jan. 1  Dec. 31, 2016
    $1,322,175Jan. 1  Dec. 31, 2015
$789,390


|(1) | Audit Fees include fees necessary to perform the annual
      audit and quarterly reviews of the Companys consolidated financial
      statements. Audit Fees include fees for accounting consultations on
      matters reflected in the financial statements and other attest services
      required by legislation or regulation, such as comfort letters, consents,
      reviews of securities filings and statutory audits. The external auditor
      provided no other services in 2016 or 2015.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

|Annual Information Form for the Year Ended December 31,
      2016 | 87
|------------------------------------------------------------------ | --

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