Document:

EX-4.8

 Exhibit 4.8 
  

  
  

 
 SIERRA METALS INC. 
  

NOTICE OF SPECIAL MEETING 

TO BE HELD ON FEBRUARY 16, 2017 

AND 
 MANAGEMENT
INFORMATION CIRCULAR 
 DATED AS OF JANUARY 12, 2017 
  

  

 NOTICE OF SPECIAL MEETING OF SHAREHOLDERS 

NOTICE IS HEREBY GIVEN that a special meeting (the “Meeting”) of the shareholders of Sierra Metals Inc., a corporation
existing under the laws of Canada (the “Corporation”) will be held on Thursday, February 16, 2017, at 181 Bay Street, Suite 2100, Toronto, Ontario, M5J 2T3, Canada, at 10:00 a.m. (local time in Toronto) for the following
purposes: 
  

	1.	 To consider and if deemed appropriate, to approve a special resolution in the form set out in Schedule
“A” to this Notice of Meeting and Management Information Circular (the “Circular”), authorizing the Corporation to reduce the stated capital of the common shares of the Corporation (the “Common Shares”),
as more particularly described in the Circular; and 

  

	2.	 To transact such other business as may properly be put before the Meeting or any adjournment or adjournments
thereof. 

 If you are a registered shareholder of the Corporation, you are entitled to attend and vote at the
Meeting in person or by proxy. The board of directors of the Corporation requests that all registered shareholders who will not be attending the Meeting in person read, date and sign the accompanying Form of Proxy and deliver it to Computershare
Investor Services Inc. (“Computershare”) (Attention: Proxy Department), 100 University Ave., 8th Floor, Toronto, Ontario, M5J 2Y1 not less than 48 hours (excluding Saturdays, Sundays and holidays) before the Meeting, or adjournment
or postponement thereof. If a registered shareholder does not deliver a Form of Proxy to Computershare by 10:00 a.m. (Toronto time) on Tuesday, February 14, 2017 (or not less than 48 hours, excluding Saturdays, Sundays and holidays before any
adjournment or postponement of the Meeting at which the proxy is to be used) then the shareholder will not be entitled to vote at the Meeting by proxy. Only shareholders of record at the close of business on January 3, 2017 will be entitled to
receive notice of and to vote at the Meeting. 
 If you are a beneficial shareholder but not a registered shareholder of the
Corporation, a Voting Instruction Form, instead of a Form of Proxy, may accompany the Circular. You must follow the instructions, including deadlines for submission, on such Voting Instruction Form to vote your Common Shares. 

A Form of Proxy accompanies this Circular. 
 DATED at Toronto,
Ontario this 12th day of January, 2017. 
  

	
	BY ORDER OF THE BOARD OF DIRECTORS
	
	(signed) Mark Brennan
	Mark Brennan
	President and Chief Executive Officer

  
  
  

 
  
  

 

 SIERRA METALS INC. 

Suite 2100 – 79 Wellington Street West 

Toronto, Ontario M5K 1H1 

MANAGEMENT INFORMATION CIRCULAR 

(all information as at January 12, 2017 unless otherwise indicated) 

FORWARD-LOOKING INFORMATION 

This management information circular (the “Circular”) contains “forward-looking information” within the
meaning of applicable Canadian securities legislation. Forward-looking information may include, but is not limited to, statements with respect to the Distribution (as defined herein), future management of Sierra Metals Inc., a corporation existing
under the laws of Canada (the “Corporation” or “Sierra”), the future business of the Corporation, and activities, events or developments that management expects or anticipates will occur or may occur in the future.
Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “believes”, or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its
experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made. Forward-looking information involves known
and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Corporation, as applicable, to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking information. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking
information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this Circular and, other than as required
by securities law, the Corporation disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise unless so required by applicable securities laws. There can be no
assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking
information. 
 SOLICITATION OF PROXIES 

This Circular is provided in connection with the solicitation of proxies by the management of the Corporation for use at the special
meeting of shareholders of the Corporation (the “Meeting”) to be held on February 16, 2017, at the time and place and for the purposes set forth in the accompanying notice of meeting (the “Notice of Meeting”), or at any
adjournments or postponements thereof. It is expected that the solicitation will be primarily by mail, but proxies may also be solicited in person or by telephone or facsimile by employees of the Corporation. The cost of solicitation will be
borne by the Corporation. The Corporation does not intend to retain the services of a third party proxy solicitation agent to solicit proxies for the Meeting. 

APPOINTMENT AND REVOCATION OF PROXIES 

The persons named in the enclosed Form of Proxy are officers of the Corporation. A shareholder of the Corporation wishing to appoint
some other person (who need not be a shareholder) to represent such 

  
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shareholder at the Meeting may do so by inserting the appointee’s name in the blank space provided in the Form of Proxy and depositing the duly completed Form of Proxy at the registered
office of Computershare Investor Services Inc., the Corporation’s transfer agent, by 10:00 a.m. Tuesday, February 14, 2017 (or not less than 48 hours, excluding Saturdays, Sundays and holidays, before any adjournment of the Meeting at
which the proxy is to be used). 
 Any proxy given may be revoked by instrument in writing, including another proxy bearing a
later date, executed by the shareholder or by his, her or its attorney authorized in writing, and deposited either at the registered office of Computershare Investor Services Inc., the Corporation’s transfer agent, by 10:00 a.m. Tuesday,
February 14, 2017 (or not less than 48 hours, excluding Saturdays, Sundays and holidays, before any adjournment of the Meeting at which the proxy is to be used) or in any other manner permitted by law. The shareholder may choose to attend the
Meeting or any adjournment thereof in person and exercise their voting rights. 
 The Form of Proxy must be signed and dated by the
shareholder or by his or her attorney in writing, or, if the shareholder is a corporation, it must either be under its common seal or signed by a duly authorized representative. Persons signing as executors, administrators, trustees or in any other
representative capacity should so indicate and give their full title as such. If a shareholder does not deliver a Form of Proxy to Computershare Investor Services Inc., the Corporation’s transfer agent, by 10:00 a.m. (Toronto time) on Tuesday,
February 14, 2017 (or before 48 hours, excluding Saturdays, Sundays and holidays before any adjournment of the Meeting at which the proxy is to be used) then the shareholder will not be entitled to vote at the Meeting by proxy. 

EXERCISE OF DISCRETION BY PROXY 

A shareholder forwarding the enclosed Form of Proxy may indicate the manner in which the appointee is to vote with respect to any specific
item by checking the appropriate space. The persons named in the enclosed Form of Proxy will vote the shares in respect of which they are appointed in accordance with the directions, if any, of the shareholders appointing them. In the absence of
such directions, such shares will be voted in favour of the motions proposed to be made at the Meeting as stated under the headings in this Circular. The enclosed Form of Proxy confers discretionary authority upon the persons named therein with
respect to any amendment or variation to matters identified in the Notice of Meeting and to any other matter which may properly come before the Meeting. At the time of printing this Circular, management of the Corporation knows of no such
amendments, variations or other matters to come before the Meeting. However, in either case, the persons named in the Form of Proxy will vote according to their best judgment. 

NON-REGISTERED SHAREHOLDERS 

The information set forth in this section is of significant importance to many shareholders as a substantial number of shareholders do not
hold common shares of the Corporation (“Common Shares”) in their own name. Only registered shareholders or the persons they appoint as their proxies are permitted to vote at the Meeting. However, in many cases, Common Shares
beneficially owned by a person (a “Non-Registered Holder”) are registered either: (i) in the name of an intermediary (an “Intermediary”) that the Non-Registered Holder deals with in respect of the Common
Shares, such as securities dealers or brokers, banks, trust companies, and trusts or other financial institutions; or (ii) in the name of a clearing agency of which the Intermediary is a participant. In accordance with National Instrument
54-101 of the Canadian Securities Administrators, entitled “Communication with Beneficial Owners of Securities of a Reporting Issuer” (“NI 54-101”), the Corporation has distributed copies of the Circular and the
Form of Proxy (collectively, the “Meeting Materials”) to the clearing agencies and Intermediaries for distribution to Non-Registered Holders. Intermediaries are required to forward the Meeting Materials to Non-Registered Holders,
unless a Non-Registered Holder has waived the right to receive them, and often use a service corporation for this purpose. Non-Registered Holders will either: 
  

	(a)	 be provided with a computerized form (often called a “voting instruction form”) which is not signed
by the Intermediary and which, when properly completed and signed by the Non-Registered Holder and returned to the Intermediary or its service corporation, will constitute voting 

  
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instructions which the Intermediary must follow. In order for the applicable computerized form to validly constitute a voting instruction form, the Non-Registered Holder must properly complete
and sign the form and submit it to the Intermediary or its service corporation in accordance with the instructions of the Intermediary or service corporation. In certain cases, the Non-Registered Holder may provide such voting instructions to the
Intermediary or its service corporation through the Internet or through a toll-free telephone number; or 

  

	(b)	 be given a proxy form which has already been signed by the Intermediary (typically by a facsimile, stamped
signature), which is restricted to the number of shares beneficially owned by the Non-Registered Holder but which is otherwise not completed. In this case, the Non-Registered Holder who wishes to submit a proxy should properly complete the proxy
form and submit it to Computershare Investor Services Inc. (Attention: Proxy Department), 100 University Ave., 8th Floor, Toronto, Ontario, M5J 2Y1. 

In either case, the purpose of these procedures is to permit Non-Registered Holders to direct the voting of the Common Shares which they
beneficially own. Should a Non-Registered Holder who receives a voting instruction form wish to vote at the Meeting in person (or have another person attend and vote on behalf of the Non-Registered Holder), the Non-Registered Holder should print his
or her own name, or that of such other person, on the voting instruction form and return it to the Intermediary or its service corporation. Should a Non-Registered Holder who receives a proxy form wish to vote at the Meeting in person (or have
another person attend and vote on behalf of the Non-Registered Holder), the Non-Registered Holder should strike out the names of the persons set out in the proxy form and insert the name of the Non-Registered Holder or such other person in the blank
space provided and submit it to Computershare Investor Services Inc. at the address set out above. In all cases, Non-Registered Holders should carefully follow the instructions of their Intermediary, including those regarding when, where and by
what means the voting instruction form or proxy form must be delivered. A Non-Registered Holder may revoke voting instructions which have been given to an Intermediary at any time by written notice to the Intermediary. 

The Corporation will not pay for Intermediaries to deliver Meeting Materials and voting instruction forms to objecting beneficial owners
(“OBOs”). An OBO is a Non-Registered Holder that has objected to their Intermediary disclosing ownership information about such holder to the Corporation. Accordingly, OBOs will not receive the Meeting Materials unless their
Intermediary assumes the costs of delivery. The Corporation is not relying on the “notice-and-access” delivery procedures outlined in NI 54-101 to distribute copies of the Meeting Materials. 

APPROVAL OF MATTERS 
 The
Form of Proxy forwarded to holders of Common Shares affords the shareholder the opportunity to specify the manner in which the proxy nominees are to vote with respect to the Stated Capital Resolution (as defined below) by checking the appropriate
space in order to indicate whether the Common Shares registered in the shareholder’s name shall be voted “FOR” or “AGAINST” the Stated Capital Resolution. In order for the Stated Capital Resolution to be approved, a special
majority of not less than two thirds of the votes cast, whether in person or by proxy, must be in favour of the Stated Capital Resolution. 

Persons present and holding or representing ten per cent (10%) of the Common Shares entitled to vote at such meeting shall constitute a
quorum for the Meeting. If a quorum is present at the opening of the Meeting, the shareholders present may proceed with the business of the Meeting, notwithstanding that a quorum is not present throughout the Meeting. 

  
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 VOTING SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES 

The board of directors of the Corporation (the “Board”) has fixed January 3, 2017, at the close of business, as the
record date for the determination of the shareholders entitled to receive notice of the Meeting and to vote thereat (the “Record Date”). All holders of at least one Common Share of the Corporation as of that date will have the right
to vote at the Meeting. 
 As of the Record Date 162,073,293 Common Shares were issued and outstanding, each giving the right to one vote on
all matters to be acted upon at the Meeting. All such holders of record of Common Shares on the Record Date are entitled either to attend and vote thereat in person the Common Shares held by them or, provided a completed and executed proxy shall
have been delivered to the Corporation’s transfer agent, Computershare Investor Services Inc., within the time specified in the attached Notice of Meeting, to have the Common Shares held by them voted thereat by proxy. 

To the knowledge of the directors and officers of the Corporation, the only persons, firms or corporations who own, as of January 3,
2017, directly or indirectly, or exercise control or direction over voting securities of the Corporation carrying more than 10% of the voting rights attached to any class of voting securities of the Corporation, are as follows: 

 

							
	 Shareholder Name
	  	Number of
Common Shares	 	  	Percentage of
Issued and
Outstanding Shares
	 Arias Resource Capital Fund L.P.*
	  	 	52,721,964	 	  	32.5%
	 Arias Resource Capital Fund II L.P.*
	  	 	27,981,325	 	  	17.3%
	 Arias Resource Capital Fund II (Mexico) L.P.*
	  	 	1,587,826	 	  	  1.0%
	 (the above funds are collectively referred to as the “ARC Funds”)
	  				  	
	 BlackRock, Inc. (for and on behalf of its investment advisory subsidiaries)
	  	 	16,360,977	 	  	10.1%
	 Arias Resource Capital Management LP (“ARCM”)
	  	 	357,766	 	  	  0.2%

  

	*	 Mr. J. Alberto Arias (Chairman and a director of the Corporation) is the sole member of Arias Resource
Capital GP LLC, the general partner of ARCM, investment manager to the ARC Funds. Mr. Arias is also the sole director of each of the general partners of the ARC Funds. 

DATE OF INFORMATION 

Except as otherwise stated, the information contained in this Circular is given as of January 12, 2017. 

PARTICULARS OF MATTERS TO BE ACTED UPON 

Background to the Reduction of Stated Capital 

On January 12, 2017, Sierra and its wholly-owned subsidiary, Cautivo Mining Inc. (“Cautivo”), filed a preliminary
prospectus (the “Preliminary Prospectus”) in each of the provinces and territories of Canada (other than Québec) for the purpose of distributing to the holders of Common Shares all of the issued and outstanding common
shares (the “Cautivo Shares”) in the capital of Cautivo (the “Distribution”) and to distribute to the holders of Cautivo Shares rights (“Rights”) to purchase from treasury additional Cautivo Shares
(the “Rights Offering”). Cautivo was incorporated by Sierra on December 6, 2016 for the purpose of completing the Distribution and the Rights Offering. The Preliminary Prospectus may be accessed on SEDAR at www.sedar.com
under Cautivo’s profile. 
 On November 14, 2012, Sierra acquired all of the outstanding shares of Plexmar Resources Inc.
(“Plexmar”) 

  
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pursuant to a plan of arrangement (the “Arrangement”). In connection with and subsequent to the Arrangement, Sierra made advances to Plexmar and its subsidiaries in the aggregate
amount of approximately US$4.8 million (collectively, the “Loans”). Prior to the completion of the Distribution, Sierra intends to dispose of and transfer to Cautivo all of the outstanding shares of Plexmar and the Loans for
proceeds of disposition (“Proceeds”) in the form of additional Cautivo Shares. The result of this transfer will be that Cautivo will be a wholly-owned subsidiary of Sierra (until the completion of the Distribution), Plexmar will be
a wholly-owned subsidiary of Cautivo and the Loans will be held by Cautivo. 
 Pursuant to the Distribution, Sierra intends to distribute to
holders of Common Shares all of the Proceeds, being all of the issued and outstanding Cautivo Shares as a return of capital with the result that Sierra will no longer hold any Cautivo Shares. Sierra is a Canadian mining company focused on the
production of precious and base metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico. While Sierra is also exploring several precious and base metals targets in Peru and Mexico, Sierra does not consider that the
properties currently held by Plexmar are core to Sierra’s ongoing strategy. In addition, these properties have ongoing property maintenance fees and other expenses associated with them. Accordingly, Sierra believes that the value of Plexmar and
the Las Lomas Project (as defined below) are not fully reflected in the trading price of the Common Shares. By distributing the Cautivo Shares as publicly traded shares, Sierra will seek to unlock the unrecognized value of the Las Lomas Project and
place it directly into the hands of Sierra’s shareholders. 
 Cautivo has applied to list the Cautivo Shares on the Canadian Securities
Exchange (the “CSE”). Listing will be subject to Cautivo fulfilling all of the listing requirements of the CSE. 
 Certain
details of the Distribution and the Rights Offering, including the number of Cautivo Shares to be received by shareholders of the Corporation for each Common Share held, the number of Rights to be distributed, the subscription price for Cautivo
Shares under the Rights Offering, the total size of the Rights Offering and the timing of the Distribution and the Rights Offering have not been finalized. Such details will be contained in the final prospectus, if any, to be filed by Sierra and
Cautivo to effect the Distribution and the Rights Offering (the “Prospectus”). Complete details of the Distribution and the Rights Offering, including the tax treatment of the Distribution, will be contained in the Prospectus which
will be sent to each holder of Common Shares and which will be made accessible on SEDAR at www.sedar.com under Cautivo’s profile. 

Properties of Plexmar 
 At the
time of the Distribution, Cautivo’s only material assets will be its ownership interest in Plexmar and the Loans. The main asset of Plexmar is its indirect interest in the Las Lomas Project (the “Las Lomas Project”). The Las
Lomas Project consists of 44 mining concessions totaling 31,635 ha, located in the Department of Piura in northern Perú, near the Ecuador border. Under Article 71 of the Peruvian Constitution, foreign individuals (including Peruvian-domiciled
companies owned ultimately by overseas investors) must obtain permission from the President of the Republic and the Board of Ministers, in the form of a Supreme Decree, in order to hold any type of concession over property located within 50
kilometers of any of Peru’s national borders (the “Border Zone”). All of the concessions comprising the Las Lomas Project are within the Border Zone. 

Plexmar, through its Peruvian subsidiary, Sociedad Minera San Miguelito S.A.C. (“San Miguelito”), has a 100% interest
(subject to a 2% net smelter royalty (“NSR”) in respect of one concession) in respect of 7 concessions of the Las Lomas Project for which the required Supreme Decree has been obtained. As a corporation ultimately controlled by
foreign individuals, San Miguelito is prohibited under Peruvian law from holding (directly or indirectly) any type of concession in the Border Zone until the required Supreme Decree has been obtained. Accordingly, certain other concessions forming
part of the Las Lomas Project are held by Minera Ate, which has, in turn, granted San Miguelito the right to acquire such properties in the future as further described below. Minera Ate is a Peruvian corporation owned by two Peruvian nationals. 

Minera Ate has direct mining rights in respect of 26 concessions of the Las Lomas Project. Pursuant to an option agreement between San
Miguelito and Minera Ate (the “Minera Ate Option Agreement”), San Miguelito has the right, upon the receipt of the required Supreme Decree, to acquire the 26 concessions 

  
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currently held by Minera Ate in exchange for US$1.8 million. Application has been made to receive the Supreme Decree for these concessions but such approval has not yet been received. 

An additional 3 concessions forming part of the Las Lomas Project may be acquired by Minera Ate pursuant to an option agreement between Minera
Ate and the titleholder, Minera Leona de Oro S.A.C. (the “Hans Option Agreement”). The table below sets out the payments required to maintain and/or exercise the option. 

 

					
	 Concept
	  	Payments
(US$)	 
	 Option Maintenance
	  	$	750,000	(1) 
	 Option Exercising (Mining Rights Transfer)
	  	$	3,000,000	 
	 NSR of 1.7% (Maximum)
	  	$	1,500,000	 
		  	  
	  
	 
	 Total
	  	$	5,250,000	 
		  	  
	  
	 

  

	(1)	 Payments of US$150,000 are due on May 27 in each year from 2016 until 2020. A total of US$100,000 has been
paid in respect of the 2016 payment with the balance of US$50,000 being retained pending the resolution of an objection filed by a third party in respect of one of the concessions. 

An additional 8 concessions forming part of the Las Lomas Project (the “Pending Concessions”) have been awarded but are in
the process of being formally granted to Minera Ate by the government. 
 Pursuant to an agreement between Minera Ate and San Miguelito,
Minera Ate has assigned to San Miguelito all of Minera Ate’s right and obligations under the Hans Option Agreement (subject to the receipt of the required Supreme Decree and subject to the NSR referred in the chart above) in exchange for
(i) San Miguelito assuming all of Minera Ate’s obligations under the Hans Option Agreement and (ii) the payment by San Miguelito to Minera Ate of the sum of US$106,000 upon the receipt of the required Supreme Decree. In addition,
pursuant to an additional option agreement between San Miguelito and Minera Ate, San Miguelito has the right to acquire from Minera Ate the Pending Concessions (if and when such concessions are registered to Minera Ate) in exchange for the payment
of US$180,000. 
 To date, San Miguelito has been funding the activities of Minera Ate in respect of the concessions held by Minera Ate in
the Las Lomas Project (including the Hans X, Hans XX and Hans XXX concessions and the Pending Concessions) by way of advances. As at the date hereof, San Miquelito has made advances to Minera Ate in the aggregate amount of approximately US$1.8
million. In addition, it is expected that San Miguelito will continue to make advances to Minera Ate from time to time to fund the activities of Minera Ate. Accordingly, it is expected that the price payable by San Miguelito to acquire each of the
26 concessions currently held by Minera Ate, the Hans X, Hans XX and Hans XXX concessions and the Pending Concessions will be satisfied through a full or partial reduction of amounts paid by San Miguelito in respect of these concessions. 

Limited exploration work has been conducted on the Las Lomas Project to date. No drilling has been conducted and no mineral resource estimates
or mineral reserve estimates have been completed on the Las Lomas Project. 
 Sierra believes that the current fair market value of the Las
Lomas Project is approximately US$2.6 million and that the fair market value of Cautivo is the same as the fair market value of the Las Lomas Project. The fair market value of the Las Lomas Project has been determined by the Board in good faith and
in accordance with the exercise of its business judgment based, in part, on the advice of its professional advisors. The fair market value of Cautivo at the time of the Distribution will be determined by the Board on the same basis and will be
disclosed in the Prospectus but will be based on the prevailing market conditions at the time of such determination and may be higher or lower than US$2.6 million. 

Based on the number of Common Shares outstanding on the Record Date and assuming that the value of Cautivo is US$2.6 million, the value of
Cautivo ascribed to each Common Share is approximately US$0.01604 (C$0.02106 based on the Bank of Canada noon exchange rate for January 12, 2017 of C$1.3130 per US$1.00). 

Approval of Stated Capital Resolution 

While the Distribution itself does not require approval by Sierra’s shareholders, a return of capital to the holders of Common Shares
requires a reduction in the stated capital of the Common Shares. The alternative to 

  
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distributing the Cautivo Shares to holders of Common Shares as a return of capital would be for Sierra to distribute such shares as a dividend in kind. Such a dividend would be a taxable dividend
for the purposes of the Income Tax Act (Canada). 
 Accordingly, at the Meeting, shareholders of the Corporation will be asked to
consider and, if thought advisable, approve, with or without variation, a special resolution (the “Stated Capital Resolution”) authorizing Sierra to reduce the stated capital of the Common Shares by an amount equal to the aggregate
amount of the Distribution, for the purpose of effecting a one-time special distribution of the Cautivo Shares by way of a return of capital. 

The text of the Stated Capital Resolution shall be substantially as attached hereto as Schedule “A”. In order for the Stated Capital
Resolution to be approved, a special majority of not less than two thirds of the votes cast at the Meeting in person or by proxy must be in favour of the Stated Capital Resolution. 

If the Stated Capital Resolution is approved by the holders of Common Shares at the Meeting, the Board intends to cause Sierra to effect the
Distribution as soon as practicable following the filing of the Prospectus. Notwithstanding approval of the Stated Capital Resolution by shareholders, the Board, in its sole discretion, may determine not to proceed with the Distribution without
further approval or action by or prior notice to shareholders. If the Stated Capital Resolution is not approved by the holders of Common Shares at the Meeting, the Board may nonetheless determine to proceed with the Distribution as a taxable
dividend. 
 The Board believes that the proposed Distribution is in the Corporation’s best interests and therefore unanimously
recommends that shareholders vote in favour of the Stated Capital Resolution. It is the intention of the persons named in the enclosed Form of Proxy, if not expressly directed to the contrary in such Form of Proxy, to vote the proxy IN FAVOUR of the
Stated Capital Resolution at the Meeting. 
 Certain Canadian Federal Tax Considerations Relating to the Distribution 

Schedule “B” to the Circular sets out certain income tax considerations arising in respect of the receipt, holding and disposition
of Cautivo Shares to a holder of Common Shares of Sierra. 
 Ex-Distribution Trading 

In accordance with the policies and procedures of the Toronto Stock Exchange (“TSX”), it is anticipated that the Common
Shares will commence trading on an “ex-Distribution” basis (the date on which purchases of the Common Shares on the TSX will no longer have an attaching right to the Distribution) at the opening two trading days prior to the record date
for the Distribution (the “ex date”). Since regular settlement occurs three trading days after the trade date (T+3), purchases of Common Shares that occur on or after the ex date will be settled without the entitlement to the
Distribution. In such event, the seller of the Common Shares retains the right to the Distribution, and the opening bid quotation is usually reduced by the value of the Distribution. 

INTEREST OF CERTAIN PERSONS OR COMPANIES IN MATTERS TO BE ACTED UPON 

Except as disclosed herein, the Corporation is not aware of any of the directors, nominees, officers or other insiders of the Corporation or
any associate or affiliate of any of these persons, having any material interest in the matters to be acted upon at the Meeting, by way of beneficial ownership of securities or otherwise. 

INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS 

To the best of the Corporation’s knowledge, except as disclosed herein, since the commencement of the Corporation’s most recently
completed financial year, no informed person of the Corporation, proposed nominee for director or any associate or affiliate of an informed person or proposed nominee, had any material interest, direct or indirect, in any transaction or any proposed
transaction which has materially affected or would materially affect the Corporation or any of its subsidiaries. For the purposes of this Circular, an “informed person” of the Corporation means: (a) a director or executive officer of
the Corporation; (b) a director or executive officer of a person or Corporation that is itself an informed person or subsidiary of the Corporation; (c) any person or Corporation who beneficially owns, directly or indirectly, voting
securities of 

  
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the Corporation or who exercises control or direction over voting securities of the Corporation or a combination of both carrying more than 10% of the voting rights other than voting securities
held by the person or Corporation as underwriter in the course of a distribution; and (d) the Corporation itself, if and for so long as it has purchased, redeemed or otherwise acquired any of its Common Shares. 

Pursuant to the Rights Offering, it is expected that for every whole Right held, an eligible holder will be entitled to subscribe for one
Cautivo Share at a price to be determined prior to the filing of the Prospectus. Holders who exercise their Rights in full will also be entitled to acquire additional Cautivo Shares on a pro rata basis (but subject to certain limitations), if
available (the “Additional Subscription Privilege”). In connection with the Rights Offering, it is expected that two of the ARC Funds, Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P.
(collectively, the “Standby Purchasers”), will enter into a standby agreement with Cautivo (the “Standby Agreement”). Under the Standby Agreement, it is expected that each Standby Purchaser will agree to exercise
all of the Rights held by such Standby Purchaser and, severally, to purchase all of the Cautivo Shares underlying the Rights that are unexercised by other holders of Rights (the “Unsubscribed Shares”). To the extent that either
Standby Purchaser acquires any Unsubscribed Shares and/or or acquires any Cautivo Shares under the Additional Subscription Privilege, its percentage ownership interest in Cautivo will be increased from that which existed immediately prior to the
completion of the Rights Offering and such increase could be material. 
 AUDITORS 

The auditors of the Corporation are PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP has been the Corporation’s auditors since
2012. 
 OTHER BUSINESS 

Management is not aware of any matters to come before the Meeting other than those set forth in this Circular. If any other matter properly
comes before the Meeting, the persons named in the Form of Proxy will vote the Common Shares represented thereby in accordance with their best judgment on such matter. 

ADDITIONAL INFORMATION 
 Additional
information relating to the Corporation is available on SEDAR at www.sedar.com. 
 Financial information relating to the Corporation
is provided in the Corporation’s audited consolidated financial statements for the fiscal year ended December 31, 2015 and the Corporation’s condensed interim consolidated financial statements for the three and nine months ended
September 30, 2016 (unaudited), and the related annual and interim management’s discussion and analysis (“MD&A”). Shareholders who wish to obtain a copy of the financial statements and MD&A of the Corporation may
contact the Corporation as follows: 
  

					
		 	By phone:	  	416-366-7777
		 	By e-mail:	  	info@sierrametals.com
		 	By mail:	  	SIERRA METALS INC.
		 		  	79 Wellington Street West, Suite 2100
		 		  	P.O. Box 157
		 		  	Toronto, ON M5K 1H1

  
 9 

 BOARD APPROVAL 

The Board has approved the content and distribution of this Circular. 
  

	
	BY ORDER OF THE BOARD OF DIRECTORS
	
	(signed) Mark Brennan
	Mark Brennan
	President and Chief Executive Officer
	January 12, 2017

  
 10 

 SCHEDULE “A” 

STATED CAPITAL RESOLUTION 

“WHEREAS: 
  

	1.	 Sierra Metals Inc. (the “Corporation” or “Sierra”) intends to make a single
distribution (the “Distribution”) of all of the issued and outstanding common shares of Cautivo Mining Inc. (“Cautivo”), on a date (the “Distribution Date”) to be determined by the board of
directors of Sierra (the “Board”), in its sole discretion, to the holders of common shares (“Common Shares”) of the Corporation of record on a date to be determined by the Board, in its sole discretion, by way of a
return of capital and corresponding reduction in the stated capital of the Common Shares, in an aggregate amount equal to the fair market value of the common shares of Cautivo comprising the Distribution as determined by the Board (the
“Distribution Amount”); 

  

	2.	 the Distribution Amount is not to exceed the current stated capital attributable to the Common Shares on the
Distribution Date; 

  

	3.	 there are no reasonable grounds for believing that the Corporation is, or would after the reduction be, unable
to pay its liabilities as they become due, or that the realizable value of the Corporation’s assets would thereby be less than the aggregate of its liabilities; and 

 

	4.	 no amount of the Proceeds (as such term is defined in the management information circular of the Corporation
dated January 4, 2017) has been paid by Sierra on a previous reduction of the stated capital of any class of shares of the capital stock of the Corporation; 

BE IT RESOLVED, AS A SPECIAL RESOLUTION THAT: 
  

	1.	 the stated capital account of the Common Shares be reduced by the Distribution Amount; 

 

	2.	 any officer or director of Sierra is hereby authorized and directed for and on behalf of Sierra to execute or
cause to be executed, under the seal of Sierra or otherwise, and to deliver or cause to be delivered all such documents, agreements and instruments, and to perform or cause to be performed all such acts and things, as such officer or director shall
determine to be necessary or desirable to give full effect to this resolution and the matters authorized hereby, such determination to be conclusively evidenced by the execution and delivery of such documents, agreements or instruments or the
performing or causing to be performed of such other acts or things; and 

  

	3.	 notwithstanding that this special resolution has been duly passed by the holders of Common Shares, the Board,
in its sole and absolute discretion, may defer acting on this special resolution or revoke this special resolution at any time before it is acted upon without further approval, ratification or confirmation by or prior notice to the holders of Common
Shares.” 

 SCHEDULE “B” 

CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS 

The following is a general summary of the principal Canadian federal income tax considerations arising in respect of the receipt, holding and
disposition of Cautivo Shares to a holder of common shares of Sierra (“Sierra Shares”) who as beneficial owner, receives such Cautivo Shares under the Distribution and who, for the purposes of the Income Tax Act (Canada) (the
“Tax Act”) and the Regulations thereunder, (i) deals at arm’s length with Sierra and Cautivo, (ii) is not affiliated with Sierra or Cautivo, and (iii) holds Sierra Shares and Cautivo Shares as capital property at
all relevant times (a “Holder”). Generally, Sierra Shares and Cautivo Shares will be capital property to a Holder provided that the Holder does not acquire or hold such securities in the course of carrying on a business of trading
or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade. 

This summary is based on the provisions of the Tax Act and the Regulations thereunder, in force on the date hereof and Sierra’s
understanding of the current administrative policies and practices of the Canada Revenue Agency (the “CRA”) published in writing prior to the date hereof. This summary takes into account all specific proposals to amend the Tax Act
and the Regulations publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the “Proposed Amendments”) and assumes that all such Proposed Amendments will be enacted in their present form. No
assurance can be given that the Proposed Amendments will be enacted in the form proposed, if at all. This summary does not otherwise take into account or anticipate any changes in law, whether by judicial, governmental or legislative decision or
action or changes in the administrative policies and practices of the CRA, nor does it take into account provincial, territorial or foreign income tax legislation or considerations which may differ materially from those described in this summary.

 This summary is not applicable to a Holder: (i) that is a “specified financial institution”, (ii) an interest in
which is or whose shares are a “tax shelter investment”, (iii) that is, for purposes of certain rules (referred to as the mark-to-market rules) applicable to securities held by financial institutions, a “financial
institution”, (iv) that reports its “Canadian tax results” in a currency other than Canadian currency, (v) that has or will enter into a “derivative forward agreement”, or (vi) who has acquired Sierra Shares
on the exercise of an employee stock option, each as defined in the Tax Act. Such Holders should consult their own tax advisors. 

Additional considerations, not discussed herein, may be applicable to a Holder that is a corporation resident in Canada, and is, or becomes,
controlled by a non-resident corporation for purposes of the “foreign affiliate dumping” rules in section 212.3 of the Tax Act. Such Holders should consult their own tax advisors with respect to the consequences of acquiring Cautivo
Shares. 
 This summary is of a general nature only and is not exhaustive of all possible Canadian federal income tax considerations. It
does not take into account or consider the tax laws of any province or territory or of any jurisdiction outside Canada. This summary is not intended to be, nor should it be construed to be, legal or tax advice to any particular Holder, and no
representations concerning the tax consequences to any particular Holder are made. Holders should consult their own tax advisers regarding the income tax considerations applicable to them having regard to their particular circumstances. 

Assumptions Regarding Return of Capital 

Distributions made by public corporations, such as Sierra, are generally characterized as taxable dividends for the purposes of the Tax Act,
unless a specific exemption applies. Subsection 84(2) of the Tax Act provides, in effect, that a distribution made on a “winding up, discontinuance or reorganization of its [Sierra’s] business”, will not be taxed as a dividend so long
as the amount or value of the funds or property distributed does not exceed the amount by which the paid-up capital (“PUC”) of the relevant shares is reduced on the distribution. 

 It is noted that the Distribution will be made by Sierra as part of a number of potential
changes, including the incorporation of Cautivo and the transfer of all of the common shares of Plexmar and the Loans to Cautivo in exchange for Cautivo Shares (the “Reorganization”), that are contemplated in order to maximize the
overall value of the Sierra assets for Sierra Shareholders. Other changes include launching the Cautivo as a public company and the Rights Offering. 

Subsection 84(4.1) of the Tax Act applies in certain circumstances to deem a return of capital by a public corporation (such as Sierra) to be
a dividend. However, subsection 84(4.1) of the Tax Act does not apply to the Distribution provided that: (i) the Distribution can reasonably be considered to have been derived from proceeds of disposition realized by Sierra from a transaction
that occurred outside the ordinary course of the business of Sierra but within the period that commenced 24 months before the Distribution; and (ii) no other amount that may reasonably be considered to have derived from such proceeds was paid
by Sierra as a reduction of PUC prior to the Distribution. Management of Sierra has determined that the Distribution will be paid as a direct result of the proceeds of disposition that Sierra expects to receive on the sale of the outstanding common
shares of Plexmar and the Loans to Cautivo in exchange for Cautivo Shares under the Reorganization, that such transaction was outside of the ordinary course of Sierra’s business, and that no amount that may reasonably be considered to have
derived from such proceeds will have been paid by Sierra as a reduction of PUC prior to the Distribution. Therefore, the Distribution should be treated as a tax-free return of PUC (subject to the comments below concerning the reduction of the
adjusted cost base of the Sierra Shares) and not as a deemed dividend pursuant to subsection 84(4.1) of the Tax Act. 
 PUC is computed
according to the relevant provisions of the Tax Act. The starting point for computing PUC is the stated capital of the Sierra Shares for corporate law purposes, which amount is then subject to adjustment according to detailed rules contained in the
Tax Act. Sierra management has advised that the PUC of the Sierra Shares will exceed the fair market value of the Cautivo Shares on the date the Distribution is effected. The summary of tax consequences set out below assumes that the fair market
value of the Cautivo Shares will not exceed the PUC of the Sierra Shares on which the distribution is made and that subsection 84(4.1) will not apply. 

Resident Holders 
 The following is a
discussion of the consequences under the Tax Act to Holders who, for the purposes of the Tax Act and at all relevant times, are resident or deemed to be resident in Canada (“Resident Holders”). Certain Resident Holders may be
entitled to make or may have already made the irrevocable election permitted by subsection 39(4) of the Tax Act the effect of which may be to deem any shares, including Sierra Shares, Cautivo Shares and all other “Canadian securities”, as
defined in the Tax Act, owned by such Resident Holder to be capital property in the taxation year in which the election is made and in all subsequent taxation years. Resident Holders whose Sierra Shares or Cautivo Shares might not otherwise be
considered to be capital property should consult their own tax advisors concerning this election. 
 The Distribution 

The distribution of the Cautivo Shares as a return of capital will reduce the adjusted cost base of a Resident Holder’s Sierra Shares by
an amount equal to the fair market value on the date the Distribution is effected of the Cautivo Shares that are issued to or for the benefit of such holder. If the amount so required to be deducted from the adjusted cost base of the Sierra Shares
to a particular Resident Holder exceeds the Resident Holder’s adjusted cost base of such Sierra Shares, the excess will be deemed to be a capital gain realized by such Resident Holder from a disposition of their Sierra Shares. Generally, a
Resident Holder is required to include in computing its income for a taxation year one-half of the amount of any capital gain (a “taxable capital gain”). A Resident Holder that is throughout the year a Canadian-controlled private
corporation (as defined in the Tax Act) may be liable to pay an additional refundable tax on certain investment income, including taxable capital gains. 

Cautivo Shares received by a Resident Holder should have a cost to the Resident Holder for tax purposes equal to their fair market value at
the time of such receipt. In computing the adjusted cost base of the Cautivo Shares at any time, the adjusted cost base of a Resident Holder’s Cautivo Shares will be averaged with the respective adjusted cost base of all of the Cautivo Shares
held by the Resident Holder as capital property at that particular time. 

 Capital Gains and Capital Losses  

On a disposition or deemed disposition of a Cautivo Share, a Resident Holder will realize a capital gain (or capital loss) equal to the amount
by which the proceeds of disposition for the Cautivo Share exceed (or are less than) the aggregate of any reasonable costs of disposition and the adjusted cost base to the Resident Holder of the Cautivo Share immediately before the disposition or
deemed disposition. 
 A Resident Holder of Cautivo Shares who disposes or is deemed to dispose of such shares will generally be required to
include in such Resident Holder’s income the amount of any taxable capital gain and may deduct one-half of the amount of any capital loss (an “allowable capital loss”) against taxable capital gains realized by the holder in the
year of the disposition. Allowable capital losses in excess of taxable capital gains may be carried back and deducted in any of the three preceding years or carried forward and deducted in any following year against taxable capital gains realized in
such years to the extent and under the circumstances described in the Tax Act. 
 In the case of a Resident Holder that is a
corporation, the amount of any capital loss otherwise determined resulting from the disposition of a Cautivo Share may be reduced by the amount of dividends previously received or deemed to have been received by it on such Cautivo Share, to the
extent and under the circumstances prescribed by the Tax Act. Similar rules may apply where a Cautivo Share is owned by a partnership or trust of which a corporation, trust or partnership is a member or beneficiary. Such Resident Holders should
consult their own advisors. 
 A Resident Holder that is throughout the relevant taxation year a “Canadian-controlled private
corporation” as defined in the Tax Act may be liable to pay an additional refundable tax of 10 2/3% on any taxable capital gains. 
 Capital gains
realized by an individual or certain trusts may give rise to a liability for alternative minimum tax. 
 Dividends 

In the case of a Resident Holder that is an individual (other than certain trusts), dividends received or deemed to be received on the Cautivo
Shares will be included in computing the Resident Holder’s income and will be subject to the normal gross-up and dividend tax credit rules applicable to dividends paid by taxable Canadian corporations under the Tax Act, including the enhanced
gross-up and dividend tax credit applicable to any dividend designated by Cautivo as an “eligible dividend” in accordance with the provisions of the Tax Act. There may be limitations on Cautivo’s ability to designate dividends as
“eligible dividends”. 
 A Resident Holder that is a corporation will be required to include in income any dividend received or
deemed to be received on the Cautivo Shares and generally will be entitled to deduct an equivalent amount in computing its taxable income. In certain circumstances, section 55(2) of the Tax Act will treat a taxable dividend received by a Resident
Holder that is a corporation as proceeds of disposition or a capital gain. Resident Holders that are corporations should consult their own tax advisors having regard for their own circumstances. 

“Private corporations” (as defined in the Tax Act) and certain other corporations controlled by or for the benefit of an individual
(other than a trust) or related group of individuals (other than trusts) generally will be liable to pay a 38 1/3% refundable tax under Part IV of the Tax Act on dividends to the extent such dividends are deductible in computing the
corporation’s taxable income. 
 Non-Resident Holders 

The following summary is relevant to a Holder who, at all relevant times, for purposes of the Tax Act and any applicable tax treaty or
convention, is a non-resident or is deemed to be a non-resident of Canada and does not acquire or hold and is not deemed to acquire or hold Sierra Shares or Cautivo Shares in the course of carrying on a business in Canada (“Non-Resident
Holder”). Special rules, which are not discussed below, may apply to a non-resident that is an insurer which carries on business in Canada and elsewhere. Such non-residents should consult their own tax advisors. 

 The Distribution 

The distribution of the Cautivo Shares as a return of capital will reduce the adjusted cost base of a Non-Resident Holder’s Sierra Shares
by an amount equal to the fair market value, on the date the Distribution is effected, of the Cautivo Shares that are issued to or for the benefit of such holder. If the amount so required to be deducted from the adjusted cost base of the Sierra
Shares to a particular Non-Resident Holder exceeds the Non-Resident Holder’s adjusted cost base of such Sierra Shares, the excess will be deemed to be a capital gain realized by such Non-Resident Holder from a disposition of their Sierra
Shares. See “Capital Gains and Capital Losses” below. 
 The Cautivo Shares received by a Non-Resident Holder will have a
cost to the Non-Resident Holder for tax purposes equal to the fair market value of such Cautivo Shares at the time of receipt. On a disposition or deemed disposition of a Cautivo Share, a Non-Resident Holder will realize a capital gain (or capital
loss) equal to the amount by which the proceeds of disposition for the Cautivo Share exceed (or are less than) the aggregate of any reasonable costs of disposition and the adjusted cost base to the Non-Resident Holder of the Cautivo Share
immediately before the disposition. See “Capital Gains and Capital Losses” below. 
 Capital Gains and Capital Losses 

A Non-Resident Holder generally will not be subject to tax under the Tax Act in respect of a capital gain realized on the disposition or
deemed disposition of a Sierra Share or a Cautivo Share, nor will capital losses arising therefrom be recognized under the Tax Act, unless the Sierra Share or Cautivo Share constitutes “taxable Canadian property” to the Non-Resident Holder
thereof for purposes of the Tax Act, and the gain is not exempt from tax pursuant to the terms of an applicable income tax treaty or convention. 

Provided the Sierra Shares and Cautivo Shares are listed on a “designated stock exchange”, as defined in the Tax Act, at the time of
disposition, the Sierra Shares and Cautivo Shares generally will not constitute taxable Canadian property of a Non-Resident Holder at that time, unless at any time during the 60 month period immediately preceding the disposition the following two
conditions are met concurrently: (a) the Non-Resident Holder, persons with whom the Non-Resident Holder did not deal at arm’s length, partnerships in which the Non-Resident Holder or a person with whom the Non-Resident Holder did not deal
at arm’s length held a membership interest directly or indirectly through one or more partnerships, or the Non-Resident Holder together with all such persons, owned 25% or more of the issued shares of any class or series of shares of Sierra or
the Corporation, as applicable; and (b) more than 50% of the fair market value of the shares of such applicable corporation was derived directly or indirectly from one or any combination of real or immovable property situated in Canada,
“Canadian resource properties” (as defined in the Tax Act), “timber resource properties” (as defined in the Tax Act) or an option, an interest or right in such property, whether or not such property exists. Notwithstanding the
foregoing, a Sierra Share or Cautivo Share may otherwise be deemed to be taxable Canadian property to a Non-Resident Holder for purposes of the Tax Act. 

Sierra management has advised that it does not believe that more than 50% of the fair market value of Sierra Shares or the Cautivo Shares is
or will be derived directly or indirectly from property referred to under paragraph (b) above and therefore the Sierra Shares and the Cautivo Shares should not constitute taxable Canadian property. 

Generally, a Non-Resident Holder who realizes a capital gain on a disposition of Sierra Shares or Cautivo Shares that constitute or are deemed
to constitute “taxable Canadian property” of the Non-Resident Holder and which is not exempt from tax under an applicable income tax treaty or convention will be subject to the tax treatment described above under the heading
“Resident Holders – Capital Gains and Capital Losses”. 
 Non-Resident Holders who will hold Sierra Shares or Cautivo
Shares as “taxable Canadian property” should consult their own tax advisors. 
 Dividends 

Dividends received or deemed to be received by a Non-Resident Holder on the Cautivo Shares will be subject to Canadian withholding tax under
the Tax Act. The general rate of withholding tax is 25%, although such rate may be reduced under the provisions of an applicable income tax convention between Canada and the Non-Resident Holder’s country of residence. Under the Canada-United
States Income Tax Convention (1980) (the “Treaty”) as 

 
amended, the rate of withholding tax on dividends paid or credited to a Non-Resident Holder who is a resident of the U.S. for purposes of the Treaty and entitled to benefits under the Treaty (a
“U.S. Holder”) is generally limited to 15% of the gross amount of the dividend (or 5% in the case of a U.S. Holder that is a company beneficially owning at least 10% of Cautivo’s voting shares).
Non-Resident Holders should consult their own tax advisors.EX-4.9

 Exhibit 4.9 

NI 43-101 Technical Report on 

Resources and Reserves 
 Yauricocha Mine 

Yauyos Province, Peru 
 Effective Date: June 30, 2016 

Report Date: September 9, 2016 
 Report Prepared for: 

 

			
	 Sierra Metals, Inc.
  

79 Wellington Street West, Suite 2100
 P.O. Box 157

Toronto, Ontario, M5K 1H1
 Canada
	    	

 Report Prepared by 
 

 
 SRK Consulting (U.S.), Inc. 
 1125 Seventeenth
Street, Suite 600 
 Denver, CO 80202 
 SRK Project Number: 470200-120 
 Signed by Qualified Persons: 

Matthew Hastings, MSc Geology, MAusIMM (CP), Senior Consultant (Resource Geology) 

Jon Larson, BS Mining Engineering, MBA, MAusIMM, MMSAQP, Principal Consultant (Mining Engineer) 

Jeff Osborn, BEng Mining, MMSAQP, Principal Consultant (Mining Engineer) 

Fernando Rodrigues, BS Mining, MBA, MAusIMM, MMSAQP, Practice Leader/Principal Consultant (Mining Engineer) 

Daniel H. Sepulveda, B.Sc. Metallurgist, SME-RM 

John Tinucci, PhD, PE, President/Practice Leader/Principal Consultant (Geotechnical Engineer) 

Reviewed by: 
 Ben Parsons, MSc, MAusIMM (CP), Principal Consultant (Resource
Geologist) 
 Joanna Poeck BEng Mining, SME-RM, MMSAQP, Senior Consultant (Mining Engineer) 

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	Page ii

  

 

  
 Table of Contents 

 

									
	 1
	 	 Summary
	  	1
				
		 	 1.1
	 	 Property Description and Ownership
	  	1
				
		 	 1.2
	 	 Geology and Mineralization
	  	1
				
		 	 1.3
	 	 Status of Exploration, Development and Operations
	  	1
				
		 	 1.4
	 	 Mineral Processing and Metallurgical Testing
	  	1
				
		 	 1.5
	 	 Mineral Resource Estimate
	  	2
				
		 	 1.6
	 	 Mineral Reserve Estimate
	  	7
				
		 	 1.7
	 	 Mining Methods
	  	11
				
		 	 1.8
	 	 Recovery Methods
	  	12
				
		 	 1.9
	 	 Project Infrastructure
	  	13
				
		 	 1.10
	 	 Environmental Studies and Permitting
	  	14
				
		 	 1.11
	 	 Capital and Operating Costs
	  	14
				
		 	 1.12
	 	 Economic Analysis
	  	15
				
		 	 1.13
	 	 Conclusions and Recommendations
	  	16
					
		 		 	 1.13.1
	 	 Geology and Mineral Resources
	  	16
					
		 		 	 1.13.2
	 	 Mining and Reserves
	  	17
					
		 		 	 1.13.3
	 	 Environmental and Permitting
	  	17
					
		 		 	 1.13.4
	 	 Infrastructure and Tailings
	  	18
					
		 		 	 1.13.5
	 	 Economic Analysis
	  	18
			
	 2
	 	 Introduction
	  	19
				
		 	 2.1
	 	 Terms of Reference and Purpose of the Report
	  	19
				
		 	 2.2
	 	 Qualifications of Consultants (SRK)
	  	19
				
		 	 2.3
	 	 Details of Inspection
	  	20
				
		 	 2.4
	 	 Sources of Information
	  	20
				
		 	 2.5
	 	 Effective Date
	  	21
				
		 	 2.6
	 	 Units of Measure
	  	21
			
	 3
	 	 Reliance on Other Experts
	  	22
			
	 4
	 	 Property Description and Location
	  	23
				
		 	 4.1
	 	 Property Location
	  	23
				
		 	 4.2
	 	 Mineral Titles
	  	24
					
		 		 	 4.2.1
	 	 Nature and Extent of Issuer’s Interest
	  	27
				
		 	 4.3
	 	 Royalties, Agreements and Encumbrances
	  	27
					
		 		 	 4.3.1
	 	 Debt
	  	27
					
		 		 	 4.3.2
	 	 Royalties and Special Taxes
	  	28
				
		 	 4.4
	 	 Environmental Liabilities and Permitting
	  	28

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	Page iii

  

 

									
				
		 	 4.5
	 	 Other Significant Factors and Risks
	  	29
			
	 5
	 	 Accessibility, Climate, Local Resources, Infrastructure and Physiography
	  	30
				
		 	 5.1
	 	 Topography, Elevation and Vegetation
	  	30
				
		 	 5.2
	 	 Accessibility and Transportation to the Property
	  	30
				
		 	 5.3
	 	 Climate and Length of Operating Season
	  	30
				
		 	 5.4
	 	 Sufficiency of Surface Rights
	  	31
				
		 	 5.5
	 	 Infrastructure Availability and Sources
	  	33
					
		 		 	 5.5.1
	 	 Power
	  	33
					
		 		 	 5.5.2
	 	 Water
	  	33
					
		 		 	 5.5.3
	 	 Mining Personnel
	  	33
					
		 		 	 5.5.4
	 	 Potential Tailings Storage Areas
	  	33
					
		 		 	 5.5.5
	 	 Potential Waste Disposal Areas
	  	33
					
		 		 	 5.5.6
	 	 Potential Processing Plant Sites
	  	33
			
	 6
	 	 History
	  	34
				
		 	 6.1
	 	 Prior Ownership and Ownership Changes
	  	34
				
		 	 6.2
	 	 Exploration and Development Results of Previous Owners
	  	34
				
		 	 6.3
	 	 Historic Mineral Resource and Reserve Estimates
	  	35
				
		 	 6.4
	 	 Historic Production
	  	35
			
	 7
	 	 Geological Setting and Mineralization
	  	36
				
		 	 7.1
	 	 Regional Geology
	  	36
				
		 	 7.2
	 	 Local Geology
	  	38
				
		 	 7.3
	 	 Significant Mineralized Zones
	  	42
					
		 		 	 7.3.1
	 	 Mineralogy
	  	44
			
	 8
	 	 Deposit Type
	  	48
				
		 	 8.1
	 	 Mineral Deposit
	  	48
				
		 	 8.2
	 	 Geological Model
	  	48
			
	 9
	 	 Exploration
	  	49
				
		 	 9.1
	 	 Relevant Exploration Work
	  	49
				
		 	 9.2
	 	 Sampling Methods and Sample Quality
	  	49
				
		 	 9.3
	 	 Significant Results and Interpretation
	  	49
			
	 10
	 	 Drilling and Channel Sampling
	  	51
				
		 	 10.1
	 	 Type and Extent
	  	51
				
		 	 10.2
	 	 Procedures
	  	54
					
		 		 	 10.2.1
	 	 Drilling
	  	54
					
		 		 	 10.2.2
	 	 Channel Sampling
	  	54
				
		 	 10.3
	 	 Interpretation and Relevant Results
	  	55

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	Page iv

  

 

									
			
	 11
	 	 Sample Preparation, Analysis and Security
	  	56
				
		 	 11.1
	 	 Security Measures
	  	56
				
		 	 11.2
	 	 Sample Preparation for Analysis
	  	56
					
		 		 	 11.2.1
	 	 Chumpe Laboratory
	  	56
					
		 		 	 11.2.2
	 	 ALS Minerals
	  	57
				
		 	 11.3
	 	 Sample Analysis
	  	58
					
		 		 	 11.3.1
	 	 Chumpe Laboratory
	  	58
					
		 		 	 11.3.2
	 	 ALS Minerals Laboratory
	  	58
				
		 	 11.4
	 	 Quality Assurance/Quality Control Procedures
	  	59
					
		 		 	 11.4.1
	 	 Standards
	  	59
					
		 		 	 11.4.2
	 	 Blanks
	  	62
					
		 		 	 11.4.3
	 	 Duplicates (Check Samples)
	  	63
					
		 		 	 11.4.4
	 	 Actions
	  	65
					
		 		 	 11.4.5
	 	 Results
	  	65
				
		 	 11.5
	 	 Opinion on Adequacy
	  	66
			
	 12
	 	 Data Verification
	  	67
				
		 	 12.1
	 	 Procedures
	  	67
				
		 	 12.2
	 	 Limitations
	  	67
				
		 	 12.3
	 	 Opinion on Data Adequacy
	  	67
			
	 13
	 	 Mineral Processing and Metallurgical Testing
	  	68
				
		 	 13.1
	 	 Testing and Procedures
	  	68
				
		 	 13.2
	 	 Recovery Estimate Assumptions
	  	68
			
	 14
	 	 Mineral Resource Estimate
	  	70
				
		 	 14.1
	 	 Drillhole Database
	  	70
				
		 	 14.2
	 	 Geologic Model
	  	71
					
		 		 	 14.2.1
	 	 Mina Central
	  	71
					
		 		 	 14.2.2
	 	 Cachi-Cachi
	  	73
					
		 		 	 14.2.3
	 	 Mascota
	  	75
					
		 		 	 14.2.4
	 	 Esperanza
	  	76
					
		 		 	 14.2.5
	 	 Cuerpos Pequenos
	  	76
					
		 		 	 14.2.6
	 	 Grade Distribution by Area
	  	79
				
		 	 14.3
	 	 Assay Capping and Compositing
	  	80
					
		 		 	 14.3.1
	 	 Gustavson Methodology
	  	80
					
		 		 	 14.3.2
	 	 SRK Methodology
	  	81
				
		 	 14.4
	 	 Variogram Analysis and Modeling
	  	83
					
		 		 	 14.4.1
	 	 Gustavson Variography
	  	83
					
		 		 	 14.4.2
	 	 SRK Variography
	  	84

  
  

					
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Resources and Reserves– Yauricocha Mine
	  	Page v

  

 

									
				
		 	 14.5
	 	 Block Model
	  	85
					
		 		 	 14.5.1
	 	 Gustavson Block Models
	  	85
					
		 		 	 14.5.2
	 	 SRK Block Models
	  	86
				
		 	 14.6
	 	 Density
	  	86
				
		 	 14.7
	 	 Estimation Methodology
	  	87
					
		 		 	 14.7.1
	 	 Gustavson Estimations - Cachi-Cachi and Mascota
	  	87
					
		 		 	 14.7.2
	 	 SRK Estimations – Mina Central, Esperanza, Elissa, Cuerpos Pequenos
	  	88
				
		 	 14.8
	 	 Model Validation
	  	90
					
		 		 	 14.8.1
	 	 Visual Comparison
	  	90
					
		 		 	 14.8.2
	 	 Comparative Statistics
	  	92
					
		 		 	 14.8.3
	 	 Swath Plots
	  	94
				
		 	 14.9
	 	 Resource Classification
	  	101
					
		 		 	 14.9.1
	 	 Gustavson Classification
	  	101
					
		 		 	 14.9.2
	 	 SRK Classification
	  	101
				
		 	 14.10
	 	 Depletion
	  	105
				
		 	 14.11
	 	 Mineral Resource Statement
	  	105
				
		 	 14.12
	 	 Mineral Resource Sensitivity
	  	114
				
		 	 14.13
	 	 Relevant Factors
	  	118
			
	 15
	 	 Mineral Reserve Estimate
	  	119
				
		 	 15.1
	 	 Introduction
	  	119
				
		 	 15.2
	 	 Conversion Assumptions, Parameters and Methods
	  	119
					
		 		 	 15.2.1
	 	 Mining Recovery
	  	120
					
		 		 	 15.2.2
	 	 Dilution
	  	121
					
		 		 	 15.2.3
	 	 Grade Adjustment
	  	122
					
		 		 	 15.2.4
	 	 Net Smelter Return
	  	123
					
		 		 	 15.2.5
	 	 Cut-off Evaluation
	  	124
					
		 		 	 15.2.6
	 	 Mining Block Shapes
	  	125
				
		 	 15.3
	 	 Reserve Estimate
	  	125
				
		 	 15.4
	 	 Factors That May Affect the Mineral Reserve Estimate
	  	131
			
	 16
	 	 Mining Methods
	  	133
				
		 	 16.1
	 	 Current Mining Methods
	  	138
				
		 	 16.2
	 	 Parameters Relevant to Mine Designs and Plans
	  	142
					
		 		 	 16.2.1
	 	 Geotechnical
	  	142
					
		 		 	 16.2.2
	 	 Hydrological
	  	150
				
		 	 16.3
	 	 Underground Stope Optimization
	  	155
					
		 		 	 16.3.1
	 	 Mineral Resource Models
	  	155
					
		 		 	 16.3.2
	 	 Depletion
	  	155

  
  

					
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Resources and Reserves– Yauricocha Mine
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		 		 	 16.3.3
	 	 Optimization Parameters and Process
	  	155
				
		 	 16.4
	 	 Mine Production Schedule
	  	156
				
		 	 16.5
	 	 Development Schedule
	  	158
				
		 	 16.6
	 	 Waste and Stockpile Design
	  	158
				
		 	 16.7
	 	 Major Mining Equipment
	  	159
				
		 	 16.8
	 	 Ventilation
	  	159
			
	 17
	 	 Recovery Methods
	  	162
				
		 	 17.1
	 	 Operation Results
	  	162
					
		 		 	 17.1.1
	 	 Polymetallic Circuit
	  	162
					
		 		 	 17.1.2
	 	 Oxide Circuit
	  	163
				
		 	 17.2
	 	 Processing Methods
	  	165
				
		 	 17.3
	 	 Plant Design and Equipment Characteristics
	  	169
				
		 	 17.4
	 	 Consumable Requirements
	  	170
			
	 18
	 	 Project Infrastructure
	  	171
				
		 	 18.1
	 	 Access, Roads, and Local Communities
	  	173
				
		 	 18.2
	 	 Process Support Facilities
	  	173
				
		 	 18.3
	 	 Mine Operations and Support Facilities
	  	174
					
		 		 	 18.3.1
	 	 Underground Infrastructure
	  	174
				
		 	 18.4
	 	 Additional Support Facilities
	  	176
				
		 	 18.5
	 	 Water Systems
	  	176
					
		 		 	 18.5.1
	 	 Water Supply
	  	176
					
		 		 	 18.5.2
	 	 Potable Water
	  	176
					
		 		 	 18.5.3
	 	 Service Water
	  	176
					
		 		 	 18.5.4
	 	 Water Treatment
	  	176
				
		 	 18.6
	 	 Energy Supply and Distribution
	  	176
					
		 		 	 18.6.1
	 	 Power Supply and Distribution
	  	176
					
		 		 	 18.6.2
	 	 Compressed Air
	  	177
					
		 		 	 18.6.3
	 	 Fuel
	  	177
				
		 	 18.7
	 	 Waste Handling and Management
	  	177
					
		 		 	 18.7.1
	 	 Tailings Management Area
	  	177
					
		 		 	 18.7.2
	 	 Waste Rock Storage
	  	182
					
		 		 	 18.7.3
	 	 Other Waste Handling
	  	182
				
		 	 18.8
	 	 Logistics
	  	182
				
		 	 18.9
	 	 Off-Site Infrastructure and Logistics
Requirements
	  	182
				
		 	 18.10
	 	 Communications and Security
	  	183
			
	 19
	 	 Market Studies and Contracts
	  	184
			
	 20
	 	 Environmental Studies, Permitting and Social or Community Impact
	  	185

  
  

					
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		 	 20.1
	 	 Environmental Studies and Background Information
	  	185
				
		 	 20.2
	 	 Required Permits and Status
	  	186
					
		 		 	 20.2.1
	 	 Required Permits
	  	186
					
		 		 	 20.2.2
	 	 State of approved permits
	  	187
				
		 	 20.3
	 	 Environmental Study Results
	  	193
				
		 	 20.4
	 	 Environmental Issues
	  	195
				
		 	 20.5
	 	 Operating and Post Closure Requirements and Plans
	  	197
				
		 	 20.6
	 	 Post-Performance or Reclamations Bonds
	  	198
				
		 	 20.7
	 	 Social and Community
	  	198
					
		 		 	 20.7.1
	 	 Agreements
	  	198
					
		 		 	 20.7.2
	 	 Assistance to Santo Domingo de Laraos Peasant’s Community
	  	201
				
		 	 20.8
	 	 Mine Closure
	  	201
					
		 		 	 20.8.1
	 	 Reclamation Measures during Operations and Project Closure
	  	202
					
		 		 	 20.8.2
	 	 Temporary Closure
	  	202
					
		 		 	 20.8.3
	 	 Progressive Closure
	  	203
					
		 		 	 20.8.4
	 	 Final Closure
	  	204
					
		 		 	 20.8.5
	 	 Closure Monitoring
	  	206
					
		 		 	 20.8.6
	 	 Post-Closure Monitoring
	  	206
					
		 		 	 20.8.7
	 	 Reclamation and Closure Cost Estimate
	  	207
			
	 21
	 	 Capital and Operating Costs
	  	209
				
		 	 21.1
	 	 Capital Costs
	  	209
				
		 	 21.2
	 	 Operating Costs
	  	211
			
	 22
	 	 Economic Analysis
	  	214
				
		 	 22.1
	 	 Assumptions External to Project
	  	214
				
		 	 22.2
	 	 Commercial Assumptions
	  	214
				
		 	 22.3
	 	 Taxes Depreciation and Royalties
	  	214
				
		 	 22.4
	 	 Production Assumptions
	  	215
					
		 		 	 22.4.1
	 	 Base Case
	  	215
				
		 	 22.5
	 	 Analysis Conclusions
	  	220
			
	 23
	 	 Adjacent Properties
	  	222
			
	 24
	 	 Other Relevant Data and Information
	  	223
			
	 25
	 	 Interpretation and Conclusions
	  	224
				
		 	 25.1
	 	 Exploration
	  	224
				
		 	 25.2
	 	 Mineral Resource Estimate
	  	224
				
		 	 25.3
	 	 Mineral Reserve Estimate
	  	225
				
		 	 25.4
	 	 Metallurgy and Processing
	  	225
				
		 	 25.5
	 	 Projected Economic Outcomes
	  	226

  
  

					
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Resources and Reserves– Yauricocha Mine
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	 26
	 	 Recommendations
	  	228
				
		 	 26.1
	 	 Recommended Work Programs and Costs
	  	228
					
		 		 	 26.1.1
	 	 Geology and Mineral Resources
	  	228
					
		 		 	 26.1.2
	 	 Mining and Reserves
	  	228
					
		 		 	 26.1.3
	 	 Infrastructure and Tailings
	  	229
					
		 		 	 26.1.4
	 	 Environmental Studies, Permitting and Social or Community Impact
	  	229
					
		 		 	 26.1.5
	 	 Economic Analysis
	  	229
					
		 		 	 26.1.6
	 	 Costs
	  	230
			
	 27
	 	 References
	  	231
			
	 28
	 	 Glossary
	  	235
				
		 	 28.1
	 	 Mineral Resources
	  	235
				
		 	 28.2
	 	 Mineral Reserves
	  	235
				
		 	 28.3
	 	 Definition of Terms
	  	236
				
		 	 28.4
	 	 Abbreviations
	  	237

  
 List of Tables 

 

			
	 Table 1-1: Yauricocha Metallurgical Performance, January to June
2016
	  	2
		
	 Table 1-2: Yauricocha Mine Consolidated Mineral Resource
Statement as of December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	4
		
	 Table 1-3: Mina Central Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	4
		
	 Table 1-4: Esperanza Mineral Resource Statement as of
June 30, 2016 – SRK Consulting (U.S.), Inc.
	  	5
		
	 Table 1-5: Cachi-Cachi Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	5
		
	 Table 1-6: Mascota Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	6
		
	 Table 1-7: Cuerpos Pequenos Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	6
		
	 Table 1-8: Yauricocha Mine Consolidated Mineral Reserve Statement
– SRK Consulting (U.S.), Inc.
	  	8
		
	 Table 1-9: Mina Central Mineral Reserve Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	8
		
	 Table 1-10: Esperanza Mineral Reserve Statement as of
June 30, 2016 – SRK Consulting (U.S.), Inc.
	  	9
		
	 Table 1-11: Cachi-Cachi Mineral Reserve Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	9
		
	 Table 1-12: Mascota Mineral Reserve Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	10
		
	 Table 1-13: Cuerpos Pequenos Mineral Reserve Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	10
		
	 Table 1-14: Reported Mine and Mill Production, 2012 to
2015
	  	12
		
	 Table 1-15: Closure Plan - Results of the Updated Cost Analysis
(US$)
	  	14
		
	 Table 1-16: Capital Summary
	  	15
		
	 Table 1-17: Operating Cost Summary
	  	15
		
	 Table 1-18: Unit Operating Cost Summary
	  	15

  
  

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
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	 Table 2-1: Site Visit Participants
	  	20
		
	 Table 4-1: Royalty and Special Tax Scale
	  	28
		
	 Table 6-1: Prior Exploration and Development Results
	  	35
		
	 Table 7-1: Mina Central Bodies
	  	46
		
	 Table 7-2: Cachi-Cachi Mina Mineralized Bodies
	  	47
		
	 Table 7-3: Exito Mina Concessions
	  	47
		
	 Table 7-4: Ipillo Mina Concessions
	  	47
		
	 Table 7-5: Victoria Mina Concessions
	  	47
		
	 Table 10-1: Yauricocha Exploration and Development
Drilling
	  	51
		
	 Table 11-1: Chumpe LLOD’s
	  	58
		
	 Table 11-2: ALS Minerals LLOD’s
	  	59
		
	 Table 11-3: CRM Expected Means and Tolerances
	  	60
		
	 Table 11-4: CRM Performance Summary – ALS Minerals
	  	61
		
	 Table 11-5: CRM Performance Summary – Chumpe Lab
	  	62
		
	 Table 11-6: Blank Failures
	  	62
		
	 Table 11-7: Check Duplicate Statistics
	  	63
		
	 Table 13-1: Yauricocha Metallurgical Performance, January to June
2016
	  	68
		
	 Table 13-2: Yauricocha Assays Exchange with Trafigura
	  	69
		
	 Table 14-1: Mean grades by Area
	  	80
		
	 Table 14-2: Capping limits for Gustavson Estimates
	  	81
		
	 Table 14-3: Esperanza Zn Capping Analysis
	  	82
		
	 Table 14-4: SRK Capping Limits
	  	83
		
	 Table 14-5: Gustavson Model Details
	  	85
		
	 Table 14-6: SRK Model Details
	  	86
		
	 Table 14-7: Densities by Area
	  	87
		
	 Table 14-8: Estimation Parameters - Mascota
	  	87
		
	 Table 14-9: Estimation Parameters – Cachi-Cachi
	  	88
		
	 Table 14-10: Esperanza SRK Estimation Parameters
	  	88
		
	 Table 14-11: Mina Central Estimation Parameters
	  	89
		
	 Table 14-12: Elissa Estimation Parameters
	  	89
		
	 Table 14-13: Cuerpos Pequenos Estimation Parameters
	  	90
		
	 Table 14-14: Mina Central Block vs. Composite Statistics
	  	93
		
	 Table 14-15: Esperanza Block vs. Composite Statistics
	  	93
		
	 Table 14-16: Elissa Block vs. Composite Statistics
	  	93
		
	 Table 14-17: Mascota Block vs. Composite Statistics
	  	94
		
	 Table 14-18: Cuerpos Pequenos Block vs. Composite
Statistics
	  	94
		
	 Table 14-19: Cachi-Cachi Block vs. Composite Statistics
	  	94

  
  

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
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	 Table 14-20: Elevations Used for Depletion
	  	105
		
	 Table 14-21: Unit Value Price Assumptions
	  	106
		
	 Table 14-22: Metallurgical Recovery Assumptions
	  	106
		
	 Table 14-23: Unit Value
Cut-off by Mining Method and Area
	  	107
		
	 Table 14-24: Mina Central Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	108
		
	 Table 14-25: Esperanza Mineral Resource Statement as of
June 30, 2016 – SRK Consulting (U.S.), Inc.
	  	109
		
	 Table 14-26: Cachi-Cachi Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	110
		
	 Table 14-27: Mascota Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	111
		
	 Table 14-28: Cuerpos Pequenos Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	112
		
	 Table 14-29: M+I Resource Grade Tonnage Table – Mina
Central
	  	117
		
	 Table 14-30: M+I Resource Grade Tonnage Table –
Esperanza
	  	118
		
	 Table 14-31: M+I Resource Grade Tonnage Table – Cachi-Cachi
(excl. Elissa)
	  	118
		
	 Table 14-32: M+I Resource Grade Tonnage Table –
Mascota
	  	118
		
	 Table 15-1: Mining Recovery Factors
	  	121
		
	 Table 15-2: Dilution Factors
	  	122
		
	 Table 15-3: Grade Adjustment Factors
	  	123
		
	 Table 15-4: Unit Value Price Assumptions
	  	123
		
	 Table 15-5: Metallurgical Recoveries
	  	124
		
	 Table 15-6: Percent Payable
	  	124
		
	 Table 15-7: Economic and Marginal
Cut-offs by Mining Method
	  	125
		
	 Table 15-8: Mina Central Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	126
		
	 Table 15-9: Esperanza Mineral Reserve Estimate as of
June 30, 2016 – SRK Consulting (U.S.), Inc.
	  	127
		
	 Table 15-10: Cachi-Cachi Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	128
		
	 Table 15-11: Mascota Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	129
		
	 Table 15-12: Cuerpos Pequenos Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc.
	  	130
		
	 Table 15-13: Reserves Below 1070 Level
	  	132
		
	 Table 16-1: Planned vs. Reported Mine Production vs. Reported
Mill Processed, 2015
	  	137
		
	 Table 16-2: Reported Mine and Mill Production, 2012 to
2015
	  	138
		
	 Table 16-3: Intact Rock Tests
	  	144
		
	 Table 16-4: Summary of Laboratory Testing Results
	  	145
		
	 Table 16-5: Stope Optimization Parameters (Angelita, Elissa,
Escondida, Esperanza, and Zulma)
	  	156
		
	 Table 16-6: SRK Production Plan
	  	157
		
	 Table 16-7: Five-year Development Schedule
	  	158
		
	 Table 16-8: Major Underground Mining Equipment
	  	159
		
	 Table 17-1: Yauricocha Polymetallic Circuit, 2013 to 2016
Performance
	  	162

  
  

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
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	 Table 17-2: Yauricocha Oxide Circuit, 2013 to 2016
Performance
	  	164
		
	 Table 17-3: Yauricocha Plant, Major Process Equipment
	  	169
		
	 Table 17-4: Polymetallic Circuit – Consumables
	  	170
		
	 Table 19-1: Metal Prices
	  	184
		
	 Table 20-1: Approved Operation and Closure Permits
	  	188
		
	 Table 20-2: Closure Plan - Annual Calendar for Guarantee
Payment
	  	198
		
	 Table 20-3: Annual Agreements per Community 2013 - 2016 -
Summary
	  	200
		
	 Table 20-4: 2015’s Community Relations Annual Plan
Investment
	  	201
		
	 Table 20-5: Assistance to Santo Domingo de Laraos Peasant’s
Community - Summary
	  	201
		
	 Table 20-6: Closed Components
	  	204
		
	 Table 20-7: Post Closure Social Program Monitoring
	  	207
		
	 Table 20-8: Closure Plan - Results of the Updated Cost Analysis
(US$)
	  	207
		
	 Table 20-9: Closure Plan – Summary of Investment per Year
(US$)
	  	207
		
	 Table 21-1: Average Development Cost (Actual)
	  	210
		
	 Table 21-2: Capital Summary
	  	211
		
	 Table 21-3: Operating Cost Summary
	  	211
		
	 Table 21-4: Unit Operating Cost Summary
	  	211
		
	 Table 21-5: Mining Operation Cost by Functions
	  	212
		
	 Table 21-6: Processing Operation Cost by Functions
	  	212
		
	 Table 21-7: Selling Expenses Cost by Functions
	  	212
		
	 Table 21-8: Administrative Expenses Cost by Functions
	  	213
		
	 Table 22-1: Metal Prices
	  	214
		
	 Table 22-2: Yauricocha Royalty Rates
	  	215
		
	 Table 22-3: Mine Production Summary
	  	216
		
	 Table 22-4: Plant Feed Summary
	  	217
		
	 Table 22-5: Lead Concentrate Production Summary
	  	218
		
	 Table 22-6: Zinc Concentrate Production Summary
	  	219
		
	 Table 22-7: Copper Concentrate Production Summary
	  	219
		
	 Table 22-8: Concentrate NSR Terms
	  	220
		
	 Table 25-1: Capital Cost Summary
	  	226
		
	 Table 25-2: Operating Cost Summary
	  	226
		
	 Table 25-3: Unit Operating Cost Summary
	  	226
		
	 Table 26-1: Summary of Costs for Recommended Work
	  	230
		
	 Table 28-1: Definition of Terms
	  	236
		
	 Table 28-2: Abbreviations
	  	237

  
  

					
	MH/MLM	  		  	September 2016

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	Page xii

  

 

 List of Figures 
  

			
	 Figure 1-1: Metal Contribution to Revenue
	  	16
		
	 Figure 4-1: Yauricocha Location Map
	  	24
		
	 Figure 4-2: Yauricocha Mineral Title Map
	  	26
		
	 Figure 5-1: Yauricocha Site Layout
	  	32
		
	 Figure 7-1: Regional Geology Map
	  	37
		
	 Figure 7-2: Geologic Map of Yauricocha Mine Area
	  	41
		
	 Figure 7-3: Southern Mineralized Areas
	  	43
		
	 Figure 7-4: Northern Mineralized Areas
	  	44
		
	 Figure 10-1: Extent of Drilling
	  	52
		
	 Figure 10-2: Extent of Channel Sampling
	  	53
		
	 Figure 11-1: Coarse Duplicate Ag Analyses
	  	64
		
	 Figure 11-2: Coarse Duplicate Zn Analyses
	  	65
		
	 Figure 14-1: Mina Central Geologic Model
	  	72
		
	 Figure 14-2: Cachi-Cachi Geologic Model
	  	74
		
	 Figure 14-3: Mascota Geologic Model
	  	75
		
	 Figure 14-4: Esperanza Geologic Model
	  	76
		
	 Figure 14-5: Plan View of Cuerpos Pequenos Geologic
Model
	  	78
		
	 Figure 14-6: Section View of Cuerpos Pequenos Geologic
Model
	  	79
		
	 Figure 14-7: Log Probability Plot – Esperanza Zn
	  	83
		
	 Figure 14-8: Omni-directional Variogram – Esperanza
Cu
	  	84
		
	 Figure 14-9: Omni-directional Variogram – Esperanza
Ag
	  	85
		
	 Figure 14-10: Visual Model Validation – Mina
Central
	  	91
		
	 Figure 14-11: Visual Model Validation – Esperanza
	  	92
		
	 Figure 14-12: Esperanza Ag Swath Plot
	  	96
		
	 Figure 14-13: Esperanza Au Swath Plot
	  	97
		
	 Figure 14-14: Esperanza Cu Swath Plot
	  	98
		
	 Figure 14-15: Esperanza Pb Swath Plot
	  	99
		
	 Figure 14-16: Esperanza Zn Swath Plot
	  	100
		
	 Figure 14-17: Mina Central Classification
	  	102
		
	 Figure 14-18: Esperanza Classification
	  	103
		
	 Figure 14-19: Cachi-Cachi Classification
	  	103
		
	 Figure 14-20: Cuerpos Pequenos Classification
	  	104
		
	 Figure 14-21: Mascota Classification
	  	104
		
	 Figure 14-22: M+I Resource Grade Tonnage Chart – Mina
Central
	  	114
		
	 Figure 14-23: M+I Resource Grade Tonnage Chart –
Esperanza
	  	115
		
	 Figure 14-24: M+I Resource Grade Tonnage Chart – Cachi-Cachi
(excl. Elissa)
	  	116

  
  

					
	MH/MLM	  		  	September 2016

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
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	 Figure 14-25: M+I Resource Grade Tonnage Chart –
Mascota
	  	117
		
	 Figure 16-1: Yauricocha Mine Overview (showing subset of
development)
	  	134
		
	 Figure 16-2:  Yauricocha Long Section Looking Northeast
(showing development, geology shapes and reserve blocks)
	  	135
		
	 Figure 16-3: Mined and Processed Tons, 2015
	  	136
		
	 Figure 16-4: Typical Sublevel Cave Layout, 870 Level - Piso 12 in
Antacaca Sur
	  	139
		
	 Figure 16-5: Isometric view of drawpoints in Mina Central (looking
west, towards footwall)
	  	140
		
	 Figure 16-6: Vertical section through Esperanza Showing Stope
Blocks, Orebody Model, and Block Model (colored by NSR for Measured and Indicated Material)
	  	141
		
	 Figure 16-7: Plan section through Esperanza Showing Stope Blocks and
Block Model (colored by NSR for Measured and Indicated Material)
	  	142
		
	 Figure 16-8: Comparison of UCS, different materials at Yauricocha
Mine
	  	145
		
	 Figure 16-9: Isometric View, Looking Northwest, of the Cachi-Cachi
Ventilation Network
	  	160
		
	 Figure 16-10: Isometric View, Looking Northeast, of the Mina Central
Ventilation Network
	  	161
		
	 Figure 17-1: Yauricocha Polymetallic Circuit, Concentrate
Output
	  	163
		
	 Figure 17-2: Yauricocha Oxide Circuit, Concentrate Output
	  	164
		
	 Figure 17-3: Yauricocha Block Flow Diagram
	  	166
		
	 Figure 17-4: Flowsheet Polymetallic Plant
	  	167
		
	 Figure 17-5: Flowsheet Oxide Plant
	  	168
		
	 Figure 18-1: Project Infrastructure Location
	  	172
		
	 Figure 18-2: Routes from Lima to the Project
	  	173
		
	 Figure 18-3: Mining Area Infrastructure
	  	174
		
	 Figure 18-4: Stage 4 Tailings Storage Facility (TSF) As-built Drawing
	  	178
		
	 Figure 18-5: Piezometer Location in Stage 4 Tailings Storage
Facility (TSF)
	  	180
		
	 Figure 18-6: Terra-Mesh
As-built Drawings
	  	181
		
	 Figure 22-1: Metal Contribution to Revenue
	  	221
		
	 Figure 25-1: Metal Contribution to Revenue
	  	227

 Appendices 
  

	
	 Appendix A: Certificates of Qualified Persons

	
	 Appendix B: SRK Capping Analyses

  
  

					
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	1	Summary 

 This report was prepared as a Prefeasibility-level (PFS) National
Instrument 43-101 (NI 43-101) Technical Report on Resources and Reserves (Technical Report) for Sierra Metals Inc. (Sierra Metals), previously known as Dia Bras
Exploration, Inc., on the Yauricocha Mine (Yauricocha or Project), which is located in the eastern part of the Department of Lima, Peru. The purpose of this report is to present the mineral resource and reserve estimates, and economic evaluation for
the Mine. 
  

	1.1	Property Description and Ownership 

 The Yauricocha Mine is located in the Alis
district, Yauyos province, department of Lima approximately 12 km west of the Continental Divide and 60 km south of the Pachacayo railway station. The active mining area within the mineral concessions is located at coordinates 421,500 m east by
8,638,300 m north on UTM Zone 18L on the South American 1969 Datum, or latitude and longitude of 12.3105° S and 75.7219° W. It is geographically in the high zone of the eastern Andean cordillera, very close to the divide and within one of
the major sources of the River Cañete, which discharges into the Pacific Ocean. The mine is at an average altitude of 4,600 masl (Gustavson, 2015). 

The current operation is an underground polymetallic sulfide and oxide operation, providing material for the nearby Chumpe process
facility. The mine has been operating continuously under Sociedad Minera Corona S.A. (SMCSA or Minera Corona) ownership since 2002, and has operated historically since 1948. Sierra Metals, Inc. purchased 82% of SMCSA in 2011. 

 

	1.2	Geology and Mineralization 

 The Yauricocha Mine features a number of mineralized
bodies, which have been emplaced along structural trends, with the mineralization itself related to replacement of limestones by hydrothermal fluids related to nearby intrusions. The mineralization varies widely in morphology, from large, relatively
wide, tabular manto-style deposits to narrow, sub-vertical chimneys. The mineralization features economic grades of Ag, Cu, Pb and Zn, with local Au to a lesser degree. The majority of the deposits are related
to the regional high-angle NW-trending Yauricocha fault or the NE trending and less well-defined Cachi-Cachi structural trend. The mineralization generally presents as polymetallic sulfides, but is locally
oxidized to significant depths or relate to more Cu-rich bodies. 
  

	1.3	Status of Exploration, Development and Operations 

 The Yauricocha mine is
concurrently undertaking exploration, development and operations. Exploration is ongoing near the mine, and is supported predominantly by drilling and exploration drifting. Development of new or current mining areas is underway, and will continue
for the foreseeable future. The mine is also currently producing multiple types of concentrate from several underground mine areas. 
  

	1.4	Mineral Processing and Metallurgical Testing 

 The Yauricocha processing facilities
operate in a reasonably stable condition. The two parallel grinding-flotation circuits (polymetallic circuit and oxide circuit) have enough built-in flexibility to 

  
  

					
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absorb variable fresh feed grade while maintaining overall metal recoveries and producing four different final concentrates of typical commercial quality grade. 

Production statistics from the January to June 2016 period (Table 1-1) shows that 52% of the
silver and 85% of the lead in the mill feed is recovered in a lead concentrate assaying 43.5 g/t Ag, 59.3% Pb, 1.1% Cu, and 4.8% Zn. The final assay of zinc concentrate reached 50.8% Zn after recovering 90% of the zinc, 16% of the copper and
negligible portions of silver and lead. The copper concentrate assay 26.9% Cu and 33 g/t Ag after recovering 55% of the copper, 17% of the silver and negligible quantities of lead and zinc. The lead oxide concentrate produced from the oxide circuit
assay 48.6% Pb, 17.4 g/t Ag, and 3.2 g/t Au after recovering 55% of the lead in the fresh feed, 30% of the silver, 25% of the gold, and 7% of the copper. 

Table 1-1: Yauricocha Metallurgical Performance, January to June 2016 

 

																											
	Circuit	  	Stream	  	Tonne 	  	
Throughput 
 (t/d) 

(at 365 d/y) 
	  	Concentrate Grade	  	Recovery (%)
	  	  	  	  	 Au 

(g/t) 
	  	 Ag 

(g/t) 
	  	 Pb 

(%) 
	  	 Cu 

(%) 
	  	 Zn 

(%) 
	  	Au 	  	Ag 	  	Pb 	  	Cu 	  	Zn
	
Polymetallic  
	  	 Fresh Ore
	  	344,875 	  	1,889.7 	  	 	  	2.0 	  	1.7 	  	0.5 	  	4.0 	  	 	  	100 	  	100 	  	 	  	100
	
Polymetallic  
	  	 Cu Conc
	  	3,596 	  	19.7 	  	 	  	33.0 	  	2.3 	  	 26.9 	  	5.2 	  	 	  	17 	  	1 	  	55 	  	1
	
Polymetallic  
	  	 Pb Conc
	  	8,369 	  	45.9 	  	 	  	43.5 	  	59.3 	  	1.1 	  	4.8 	  	 	  	52 	  	85 	  	5 	  	3
	
Polymetallic  
	  	 Zn Conc
	  	24,478 	  	134.1 	  	 	  	2.3 	  	0.6 	  	1.1 	  	50.8 	  	 	  	8 	  	2 	  	16 	  	90
	 Oxide
	  	 Fresh Ore
	  	62,215 	  	340.9 	  	1.1 	  	4.9 	  	7.4 	  	0.6 	  	2.0 	  	 100 	  	 100 	  	 100 	  	 100 	  	 
	 Oxide
	  	 Pb Conc
	  	1,642 	  	9.0 	  	 11.0 	  	 38.9 	  	 26.1 	  	 1.2 	  	 16.7 	  	27 	  	21 	  	9 	  	6 	  	 
	
Oxide
	  	
Pb Ox Conc  
	  	5,205 	  	28.5 	  	3.2 	  	17.4 	  	48.6 	  	0.5 	  	1.0 	  	25 	  	30 	  	55 	  	7 	  	 

 Source: SRK, 2016 

Yauricocha facilities include a metallurgical testing laboratory that is used only on a needed basis. No regular sampling and testing
programs are in placed to test future mill feed samples. 
  

	1.5	Mineral Resource Estimate 

 The understanding of the geology and mineralization at
Yauricocha is based on a combination of geologic mapping, drilling and development sampling that guides the ongoing mine design. SRK has reviewed the methods and procedures for these data collection methods and notes that they are generally
reasonable and consistent with industry best practice. The validation and verification of data and information supporting the mineral resource estimation has historically been deficient, but strong efforts are being made to modernize and validate
the historic information using current, aggressive quality assurance/quality control (QA/QC) methods and more modern practices for drilling and sampling. SRK notes that the majority of the remaining resources in areas such as Mina Central and
Cachi-Cachi are supported by more modern data validation and QA/QC, and that new areas like Esperanza feature extensive QA/QC and third party analysis. 

The procedures and methods supporting the mineral resource estimation have been developed in conjunction with Minera Corona geological
personnel. The resource estimations presented herein have been conducted by independent consultants using supporting data generated by the site. In general, the geologic models are defined by the site geologists using manual and 3D modeling
techniques, and are based on information from drilling and development. These models are used to constrain block models, which are flagged with bulk density, mine area, depletion, etc. Grade is estimated into these block models using both drilling
and channel samples, applying industry-standard estimation methodology. Mineral resources estimated by the independent consultants are 

  
  

					
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categorized in a manner consistent with industry best practice, and are reported above reasonable unit value cut-offs. 

SRK is of the opinion that the resource estimations are suitable for public reporting and are a fair representation of the in-situ contained metal for the Yauricocha deposit. 
 The December 31, 2015 consolidated
audited mineral resource statement for the Yauricocha Mine is presented in Table 1-2. The individual mineral resource statements (which comprise the consolidated statement) for the Mina Central, Cachi-Cachi,
Elissa, Mascota, and Cuerpos Pequenos areas are presented in Table 1-3, Table 1-5, Table 1-6, and Table 1-7, respectively. The June 30, 2016 mineral resource statement for the Esperanza area is presented in Table 1-4. 

  
  

					
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 Table 1-2: Yauricocha Mine Consolidated Mineral Resource
Statement as of December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																																	
	  	 	Area  	 	 Category   	 	 Tonnes (000’s)  	 	 	Ag (g/t)  	 	 	Au (g/t) 	 	 	Cu (%) 	 	 	Pb (%) 	 	 	Zn (%) 	 	 	Ag (koz) 	 	 	Au (koz) 	 	 	  Cu (t) 	 	 	   Pb (t) 	 	 	     Zn (t) 	 
	 	 Total
	 	 Measured	 	 	 1,429.4  	 	 	 	75  	 	 	 	0.71 	 	 	 	0.87 	 	 	 	1.54 	 	 	 	3.10 	 	 	 	3,434 	 	 	 	33 	 	 	 	12,422 	 	 	 	22,044 	 	 	 	44,315 	 
	 	 	 Indicated	 	 	 6,441.9  	 	 	 	58  	 	 	 	0.66 	 	 	 	1.17 	 	 	 	0.81 	 	 	 	2.61 	 	 	 	11,951 	 	 	 	137 	 	 	 	75,681 	 	 	 	52,205 	 	 	 	168,138 	 
	 	 	 M + I	 	 	 7,871.3  	 	 	 	61  	 	 	 	0.67 	 	 	 	1.12 	 	 	 	0.94 	 	 	 	2.70 	 	 	 	15,384 	 	 	 	170 	 	 	 	88,103 	 	 	 	74,248 	 	 	 	212,452 	 
	 	 	 Inferred	 	 	 3,744.9  	 	 	 	49  	 	 	 	0.53 	 	 	 	1.33 	 	 	 	0.58 	 	 	 	1.86 	 	 	 	5,917 	 	 	 	64 	 	 	 	49,993 	 	 	 	21,774 	 	 	 	69,696 	 

  

	 	    (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	    (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

    ** Metallurgical recovery
assumptions for the Yauricocha Mine are variable by mineralization style and degree of oxidation. 

	 	    (3)	 The unit value cut-off grades (COG) are variable, by mining area and proposed
mining method. 

 Table 1-3: Mina Central Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																																	
	  	 	Area  	 	Category  	 	Tonnes (000’s) 	 	 	Ag (g/t) 	 	 	Au (g/t) 	 	 	Cu (%) 	 	 	Pb (%) 	 	 	Zn (%) 	 	 	Ag (koz) 	 	 	Au (koz) 	 	 	  Cu (t) 	 	 	   Pb (t) 	 	 	     Zn (t) 	 
	 	 All
	 	Measured	 	 	682.6 	 	 	 	49 	 	 	 	0.86 	 	 	 	0.84 	 	 	 	0.79 	 	 	 	2.33 	 	 	 	1,078 	 	 	 	19 	 	 	 	5,736 	 	 	 	5,380 	 	 	 	15,924 	 
	 	 	Indicated	 	 	3,786.4 	 	 	 	36 	 	 	 	0.71 	 	 	 	0.93 	 	 	 	0.22 	 	 	 	1.79 	 	 	 	4,383 	 	 	 	86 	 	 	 	35,380 	 	 	 	8,460 	 	 	 	67,953 	 
	 	 	M + I	 	 	4,468.9 	 	 	 	38 	 	 	 	0.73 	 	 	 	0.92 	 	 	 	0.31 	 	 	 	1.88 	 	 	 	5,461 	 	 	 	105 	 	 	 	41,116 	 	 	 	13,839 	 	 	 	83,877 	 
	 	 	Inferred	 	 	2,034.9 	 	 	 	26 	 	 	 	0.46 	 	 	 	0.99 	 	 	 	0.06 	 	 	 	1.02 	 	 	 	1,720 	 	 	 	30 	 	 	 	20,166 	 	 	 	1,317 	 	 	 	20,834 	 

  

	 	    (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	    (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

    ** Metallurgical recovery
assumptions for the polymetallic Mina Central area are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	    (3)	 The unit value COG for the Mina Central area is a consistent US$40. 

  
  

					
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 Table 1-4: Esperanza Mineral Resource Statement as of
June 30, 2016 – SRK Consulting (U.S.), Inc. 
  

																																																	
	  	 	Area  	 	Category   	 	 Tonnes (000’s)  	 	 	Ag (g/t) 	 	 	Au (g/t) 	 	 	Cu (%) 	 	 	Pb (%) 	 	 	Zn (%) 	 	 	Ag (koz) 	 	 	Au (koz) 	 	 	  Cu (t) 	 	 	   Pb (t) 	 	 	     Zn (t) 	 
	 	
ALL  
	 	Measured	 	 	444.4  	 	 	 	65 	 	 	 	0.44 	 	 	 	1.23 	 	 	 	1.45 	 	 	 	3.38 	 	 	 	935 	 	 	 	6 	 	 	 	5,466 	 	 	 	6,434 	 	 	 	15,034 	 
	 	 	Indicated	 	 	2,089.6  	 	 	 	70 	 	 	 	0.58 	 	 	 	1.81 	 	 	 	1.22 	 	 	 	3.20 	 	 	 	4,680 	 	 	 	39 	 	 	 	37,830 	 	 	 	25,511 	 	 	 	66,916 	 
	 	 	M + I	 	 	2,534.0  	 	 	 	69 	 	 	 	0.55 	 	 	 	1.71 	 	 	 	1.26 	 	 	 	3.23 	 	 	 	5,615 	 	 	 	45 	 	 	 	43,296 	 	 	 	31,946 	 	 	 	81,950 	 
	 	 	Inferred	 	 	1,541.8  	 	 	 	69 	 	 	 	0.63 	 	 	 	1.87 	 	 	 	0.92 	 	 	 	2.49 	 	 	 	3,415 	 	 	 	31 	 	 	 	28,898 	 	 	 	14,146 	 	 	 	38,437 	 

	 	    (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	    (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

    ** Metallurgical recovery
assumptions for the polymetallic Esperanza area are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	    (3)	 The unit value COG for the Esperanza area is a consistent US$44. 

Table 1-5: Cachi-Cachi Mineral Resource Statement as of December 31, 2015 – SRK Consulting (U.S.),
Inc. 
  

																																																	
	  	 	Area  	 	Category  	 	Tonnes (000’s)  	 	 	Ag (g/t) 	 	 	Au (g/t) 	 	 	Cu (%) 	 	 	Pb (%) 	 	 	Zn (%) 	 	 	Ag (koz) 	 	 	Au (koz) 	 	 	  Cu (t) 	 	 	   Pb (t) 	 	 	     Zn (t) 	 
	 	
ALL  
	 	Measured	 	 	148.8  	 	 	 	84 	 	 	 	0.49 	 	 	 	0.33 	 	 	 	1.61 	 	 	 	6.47 	 	 	 	400 	 	 	 	2 	 	 	 	494 	 	 	 	2,395 	 	 	 	9,620 	 
	 	 	Indicated	 	 	330.9  	 	 	 	71 	 	 	 	0.37 	 	 	 	0.33 	 	 	 	1.50 	 	 	 	7.12 	 	 	 	751 	 	 	 	4 	 	 	 	1,088 	 	 	 	4,968 	 	 	 	23,572 	 
	 	 	M + I	 	 	479.7  	 	 	 	75 	 	 	 	0.41 	 	 	 	0.33 	 	 	 	1.53 	 	 	 	6.92 	 	 	 	1,151 	 	 	 	6 	 	 	 	1,582 	 	 	 	7,363 	 	 	 	33,193 	 
	 	 	Inferred	 	 	69.6  	 	 	 	41 	 	 	 	0.43 	 	 	 	0.44 	 	 	 	0.82 	 	 	 	5.83 	 	 	 	91 	 	 	 	1 	 	 	 	309 	 	 	 	570 	 	 	 	4,057 	 

	 	    (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	    (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

    ** Metallurgical recovery
assumptions for the polymetallic Cachi-Cachi area are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	    (3)	 The unit value COG for the Cachi-Cachi area is variable. 

	 	a.	US$40 = Angelita 

	 	b.	US$44 = Elissa & Escondida 

	 	c.	US$38 = Karlita 

	 	d.	US$51 = Zulma 

  
  

					
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 Table 1-6: Mascota Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																																	
	  	 	Area  	 	Category  	 	Tonnes (000’s) 	 	 	Ag (g/t) 	 	 	Au (g/t) 	 	 	Cu (%) 	 	 	Pb (%) 	 	 	Zn (%) 	 	 	Ag (koz) 	 	 	Au (koz) 	 	 	  Cu (t) 	 	 	   Pb (t) 	 	 	     Zn (t) 	 
	 	 Mascota  
	 	Measured	 	 	119.0 	 	 	 	206 	 	 	 	1.18 	 	 	 	0.34 	 	 	 	4.75 	 	 	 	0.80 	 	 	 	787 	 	 	 	5 	 	 	 	407 	 	 	 	5,646 	 	 	 	956 	 
	 	 	Indicated	 	 	119.0 	 	 	 	343 	 	 	 	1.40 	 	 	 	0.43 	 	 	 	4.81 	 	 	 	0.70 	 	 	 	1,310 	 	 	 	5 	 	 	 	510 	 	 	 	5,721 	 	 	 	835 	 
	 	 	M + I	 	 	237.9 	 	 	 	274 	 	 	 	1.29 	 	 	 	0.39 	 	 	 	4.78 	 	 	 	0.75 	 	 	 	2,098 	 	 	 	10 	 	 	 	918 	 	 	 	11,366 	 	 	 	1,791 	 
	 	 	Inferred	 	 	9.2 	 	 	 	353 	 	 	 	0.63 	 	 	 	0.85 	 	 	 	2.88 	 	 	 	0.54 	 	 	 	105 	 	 	 	0 	 	 	 	79 	 	 	 	265 	 	 	 	49 	 

  

	 	    (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	    (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

    ** Metallurgical recovery
assumptions for the Pb-oxide Mascota area are 53% Ag, 24% Au, 0% Cu, 66% Pb, and 0% Zn. 

	 	    (3)	 The unit value COG for the Mascota area is a consistent US$38. 

Table 1-7: Cuerpos Pequenos Mineral Resource Statement as of December 31, 2015 – SRK Consulting
(U.S.), Inc. 
  

																																																	
	  	 	Area  	 	Category  	 	Tonnes (000’s) 	 	 	Ag (g/t) 	 	 	Au (g/t) 	 	 	Cu (%) 	 	 	Pb (%) 	 	 	Zn (%) 	 	 	Ag (koz) 	 	 	Au (koz) 	 	 	  Cu (t) 	 	 	   Pb (t) 	 	 	     Zn (t) 	 
	 	
ALL  
	 	Measured	 	 	34.6 	 	 	 	210 	 	 	 	0.56 	 	 	 	0.92 	 	 	 	6.32 	 	 	 	8.02 	 	 	 	234 	 	 	 	1 	 	 	 	319 	 	 	 	2,190 	 	 	 	2,780 	 
	 	 	Indicated	 	 	116.1 	 	 	 	221 	 	 	 	0.80 	 	 	 	0.75 	 	 	 	6.50 	 	 	 	7.63 	 	 	 	826 	 	 	 	3 	 	 	 	873 	 	 	 	7,545 	 	 	 	8,862 	 
	 	 	M + I	 	 	150.7 	 	 	 	219 	 	 	 	0.74 	 	 	 	0.79 	 	 	 	6.46 	 	 	 	7.73 	 	 	 	1,060 	 	 	 	4 	 	 	 	1,192 	 	 	 	9,734 	 	 	 	11,640 	 
	 	 	Inferred	 	 	89.5 	 	 	 	203 	 	 	 	0.49 	 	 	 	0.60 	 	 	 	6.12 	 	 	 	7.06 	 	 	 	585 	 	 	 	1 	 	 	 	541 	 	 	 	5,475 	 	 	 	6,318 	 

  

	 	    (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	    (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

    ** Metallurgical recovery
assumptions for the Cuerpos Pequenos area are variable. 

	 	  i.	Metallurgical recovery assumptions for the copper sulfide Cuye area are 66% Ag, 35% Au,90% Cu, 0% Pb, and 0% Zn 

	 	 ii.	Metallurgical recovery assumptions for the Pb-Oxide Contacto Occ. and Violeta areas are 53% Ag, 24% Au, 0% Cu, 66% Pb, and 0% Zn. 

	 	iii.	Metallurgical recovery assumptions for the remaining polymetallic areas are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	    (3)	The unit value COG’s for the Cuerpos Pequenos deposits are variable. 

	 	a.	US$43 = Violeta 

	 	b.	US$38 = Cuye 

	 	c.	US$51 = Contacto Occ., Contacto, Ori., CSM II, CSM I, CSM, Cuye Sur, Marita, Juliana, Gallito, Butz, Pozo Rico 

  
  

					
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	1.6	 Mineral Reserve Estimate 

Yauricocha is a currently operating underground mine with production history under Minera Corona ownership dating back to 2002. The
significant mineralized zones in the southern area are Mina Central, Mascota and Esperanza. The northern extent, grouped into an area called Cachi-Cachi, consists of Angelita, Elissa, Escondida, Karlita and Zulma. Smaller but typically higher-grade
bodies (Cuerpos Pequenos) exist throughout the property. Given the significant production history at the mine, the primary basis for the modifying factors used to convert resources to reserves is historical cost, recovery and performance of the
selected mining methods at the mine. 
 The procedures and methods supporting the mineral reserve estimation have been developed by SRK
in conjunction with Sierra Metals mine planning personnel. The reserve estimates presented herein have been conducted by independent consultants using supporting data generated by the site. In general, each mining area is evaluated using reasonable
mining block shapes based on the mining method applicable to the zone. The Mineral Reserves are categorized in a manner consistent with industry best practice. Data and information supporting the mining recovery, mining dilution,
reconciliation-based grade adjustments, metallurgical recoveries, consensus commodity pricing, and treatment and refining charges have been provided by Sierra Metals and reviewed by SRK. These factors are used to calculate unit values for the blocks
in the models. Historic and expected direct and indirect mining, processing and general and administrative costs were provided by Sierra Metals. To be considered economic, the Net Smelter Return (NSR) value of the mining block must be greater than
the economic cutoff. Mining blocks below the economic cutoff but above the marginal cutoff are, in some cases, included in the reserve where they are in between or immediately adjacent to an economic block and it is reasonable to expect that no
significant additional development would be required to extract the marginal block. Isolated blocks, defined as blocks with no defined access, have been excluded from the reserve. Only material classified as Measured and Indicated Resources
contribute to the grade values in a mining block. Material inside a mining block and not classified as Measured or Indicated is assumed to have zero grade. Mined out areas were provided by Sierra Metals personnel. 

SRK is of the opinion that the reserve estimates are suitable for public reporting and are a fair representation of the mill feed tonnes,
grade, and metal for the Yauricocha deposit. 
 The consolidated mineral reserve statement for the Yauricocha Mine is presented in
Table 1-8. The individual mineral resource statements (which comprise the consolidated statement) for the Mina Central, Cachi-Cachi, Elissa, Mascota, and Cuerpos Pequenos areas are presented in Table 1-9, Table 1-11, Table 1-12, and Table 1-13, respectively. The June 30, 2016 mineral
resource statement for the Esperanza area is presented in Table 1-10. 

  
  

					
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  Table 1-8: Yauricocha Mine Consolidated Mineral Reserve Statement – SRK Consulting (U.S.), Inc. 
  

																																							
	 Area    	 	Category   	 	 Tonnes  

(000’s)  
	 	 Ag  

(g/t)  
	 	 	 Au  

(g/t)  
	 	 	 Cu  

(%)  
	 	 	 Pb  

(%)  
	 	 	 Zn  

(%)  
	 	 	 Ag  

(koz)  
	 	 	 Au  

(koz)  
	 	 	 Cu  

(t)  
	 	 Pb  

(t)  
	 	
Zn 
 (t) 

	
 Total
	 	Proven	 	846.5  	 	 	70.7  	 	 	 	0.65  	 	 	 	0.59  	 	 	 	1.60  	 	 	 	2.82  	 	 	 	1,925  	 	 	 	18  	 	 	4,961  	 	13,513  	 	23,845 
	 	Probable	 	2,940.5  	 	 	58.4  	 	 	 	0.62  	 	 	 	0.91  	 	 	 	1.02  	 	 	 	2.95  	 	 	 	5,517  	 	 	 	58  	 	 	26,664  	 	29,983  	 	86,805 
	 	P+P	 	3,787.0  	 	 	61.1  	 	 	 	0.62  	 	 	 	0.84  	 	 	 	1.15  	 	 	 	2.92  	 	 	 	7,442  	 	 	 	76  	 	 	31,625  	 	43,495  	 	110,650 

  

	 	    (1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	    (2)	 Ore reserves are reported at NSR cutoffs (CoG) that range from $55/t to $75/t based on metal price assumptions*, grade
adjustments made to the resource model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

* Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper (US$/lb 2.28),
Lead (US$/lb 0.86), and Zinc (US$/lb 0.94). 
 ** Grade adjustments (reductions) are based on historical mine to mill reconciliation and
vary by mineralization style. 
 *** Metallurgical recovery assumptions for the Yauricocha Mine are variable by mineralization style and
degree of oxidation. 

	 	    (3)	 The effective date of the Esperanza estimate is June 30, 2016. The effective date for all other areas is
December 31, 2015. 

  Table 1-9: Mina Central Mineral Reserve Statement as of December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																									
	 Area    	 	Category  	 	 Tonnes  

(000’s)  
	 	 Ag  

(g/t)  
	 	 Au  

(g/t)  
	 	 Cu  

(%)  
	 	 Pb  

(%)  
	 	 Zn  

(%)  
	 	 Ag  

(koz)  
	 	 Au  

(koz)  
	 	 Cu  

(t)  
	 	 Pb  

(t)  
	 	
Zn 
 (t) 

	 Mina  Central  	 	Proven	 	352.9  	 	43  	 	0.77  	 	0.61  	 	0.80  	 	2.19  	 	485  	 	9  	 	2,152  	 	2,819  	 	7,720 
	 	Probable	 	1,225.4  	 	37  	 	0.79  	 	0.73  	 	0.28  	 	2.44  	 	1,465  	 	31  	 	8,950  	 	3,469  	 	29,890 
	 	P+P	 	1,578.2  	 	38  	 	0.79  	 	0.70  	 	0.40  	 	2.38  	 	1,950  	 	40  	 	11,102  	 	6,287  	 	37,610 

	 	    (1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	    (2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions) are based on
historical mine to mill reconciliation and are 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn. 
 *** Metallurgical recovery assumptions for
the area are 69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn (polymetallic material). 

	 	    (3)	 The NSR CoG for the area is variable by area. 

	 	    a.	   US$58 = Catas, Antacaca 

	 	    b.	   US$55 = Rosura, Antacaca Sur 

	 	    (4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	    a.	   Mining recovery applied is variable by area: 

	 	     i.	     80% = Catas, Antacaca 

	 	    ii.	     70% = Rosura, Antacaca Sur 

	 	    b.	   Mining dilution, applied with a zero grade, is variable by area: 

	 	     i.	     20% = Catas, Antacaca 

	 	    ii.	     25% = Rosura, Antacaca Sur 

  
  

					
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 Table 1-10: Esperanza Mineral Reserve
Statement as of June 30, 2016 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	  	Category  	  	 Tonnes 

(000’s) 
	 	  	 Ag 

(g/t) 
	 	  	 Au 

(g/t) 
	 	  	 Cu 

(%) 
	 	  	 Pb 

(%) 
	 	  	 Zn 

(%) 
	 	  	 Ag 

(koz) 
	 	  	 Au 

(koz) 
	 	  	 Cu 

(t) 
	 	  	 Pb 

(t) 
	 	  	 Zn 

(t) 
	 
	  Esperanza  
	  	Proven	  	 	230.3 	 	  	 	50 	 	  	 	0.34 	 	  	 	0.85 	 	  	 	1.33 	 	  	 	3.07 	 	  	 	371 	 	  	 	3 	 	  	 	1,956 	 	  	 	3,055 	 	  	 	7,075 	 
	  	Probable  	  	 	1,289.7 	 	  	 	52 	 	  	 	0.44 	 	  	 	1.26 	 	  	 	1.09 	 	  	 	2.84 	 	  	 	2,161 	 	  	 	18 	 	  	 	16,291 	 	  	 	14,023 	 	  	 	36,565 	 
	  	P+P	  	 	1,520.0 	 	  	 	52 	 	  	 	0.43 	 	  	 	1.20 	 	  	 	1.12 	 	  	 	2.87 	 	  	 	2,532 	 	  	 	21 	 	  	 	18,247 	 	  	 	17,078 	 	  	 	43,640 	 

	 	(1)	All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding. 

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions)
are based on historical mine to mill reconciliation and are 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn. 
 ***
Metallurgical recovery assumptions for the area are 69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn (polymetallic material). 

	 	(3)	 The NSR CoG for the area is US$56. 

	 	(4)	Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	Mining recovery applied is 90%. 

	 	b.	Mining dilution, applied with a zero grade, is 20%. 

 Table 1-11: Cachi-Cachi Mineral Reserve Statement as of December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area  	  	Category  	  	 Tonnes 

(000’s) 
	 	  	 Ag 

(g/t) 
	 	  	 Au 

(g/t) 
	 	  	 Cu 

(%) 
	 	  	 Pb 

(%) 
	 	  	 Zn 

(%) 
	 	  	 Ag 

(koz) 
	 	  	 Au 

(koz) 
	 	  	 Cu 

(t) 
	 	  	 Pb 

(t) 
	 	  	 Zn 

(t) 
	 
	
 Cachi-Cachi  
	  	Proven	  	 	111.4 	 	  	 	73 	 	  	 	0.45 	 	  	 	0.27 	 	  	 	1.49 	 	  	 	5.87 	 	  	 	260 	 	  	 	2 	 	  	 	300 	 	  	 	1,662 	 	  	 	6,541 	 
	  	Probable  	  	 	208.9 	 	  	 	73 	 	  	 	0.32 	 	  	 	0.24 	 	  	 	1.52 	 	  	 	6.38 	 	  	 	488 	 	  	 	2 	 	  	 	496 	 	  	 	3,180 	 	  	 	13,328 	 
	  	P+P	  	 	320.3 	 	  	 	73 	 	  	 	0.37 	 	  	 	0.25 	 	  	 	1.51 	 	  	 	6.20 	 	  	 	748 	 	  	 	4 	 	  	 	796 	 	  	 	4,842 	 	  	 	19,869 	 

	 	(1)	All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding. 

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions)
are based on historical mine to mill reconciliation and are 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn. 
 ***
Metallurgical recovery assumptions for the area are 69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn (polymetallic material). 

	 	(3)	The NSR CoG for the area is variable by area. 

	 	a.	US$75 = Zulma 

	 	b.	US$64 = Elissa, Escondida 

	 	c.	US$58 = Angelita 

	 	d.	US$56 = Karlita 

	 	(4)	Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	Mining recovery applied is variable by area: 

	 	  i.	90% = Zulma, Karlita 

	 	 ii.	95% = Elissa, Escondida 

	 	iii.	80% = Angelita 

	 	b.	Mining dilution, applied with a zero grade, is variable by area: 

	 	  i.	10% = Zulma, Elissa, Escondida 

	 	 ii.	20% = Angelita, Karlita 

  
  

					
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  Table 1-12: Mascota Mineral Reserve
Statement as of December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	  	Category  	  	 Tonnes 

(000’s) 
	 	  	 Ag 

(g/t) 
	 	  	 Au 

(g/t) 
	 	  	 Cu 

(%) 
	 	  	 Pb 

(%) 
	 	  	 Zn 

(%) 
	 	  	 Ag 

(koz) 
	 	  	 Au 

(koz) 
	 	  	 Cu 

(t) 
	 	  	 Pb 

(t) 
	 	  	 Zn

(t)
	 
	 Mascota  
	  	Proven	  	 	120.5 	 	  	 	165 	 	  	 	1.12 	 	  	 	0.27 	 	  	 	3.60 	 	  	 	0.47 	 	  	 	639 	 	  	 	4 	 	  	 	321 	 	  	 	4,342 	 	  	 	572	 
	  	Probable  	  	 	106.0 	 	  	 	230 	 	  	 	1.12 	 	  	 	0.30 	 	  	 	3.25 	 	  	 	0.44 	 	  	 	783 	 	  	 	4 	 	  	 	320 	 	  	 	3,448 	 	  	 	469	 
	  	P+P	  	 	226.5 	 	  	 	195 	 	  	 	1.12 	 	  	 	0.28 	 	  	 	3.44 	 	  	 	0.46 	 	  	 	1,422 	 	  	 	8 	 	  	 	641 	 	  	 	7,790 	 	  	 	1,041	 

	 	(1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions)
are based on historical mine to mill reconciliation and are 14% Ag, 0% Au, 7% Cu, 13% Pb, and 7% Zn. 
 ***
Metallurgical recovery assumptions for the area are 53% Ag, 40% Au, 0% Cu, 66% Pb, and 0% Zn (lead oxide material). 

	 	(3)	 The NSR CoG for the area is US$56. 

	 	(4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	Mining recovery applied is 90%. 

	 	b.	Mining dilution, applied with a zero grade, is 20%. 

	 	(5)	 The application of mining recovery and dilution (applied at a zero grade) results, in some cases, in higher tonnage and
lower grade in reserves when compared to resources in relatively high grade bodies. 

  Table 1-13: Cuerpos Pequenos Mineral Reserve Statement as of December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area  	  	Category  	  	 Tonnes 

(000’s) 
	 	  	 Ag 

(g/t) 
	 	  	 Au 

(g/t) 
	 	  	 Cu 

(%) 
	 	  	 Pb 

(%) 
	 	  	 Zn 

(%) 
	 	  	 Ag 

(koz) 
	 	  	 Au 

(koz) 
	 	  	 Cu 

(t) 
	 	  	 Pb 

(t) 
	 	  	 Zn

(t)
	 
	
Cuerpos   Pequenos      
	  	Proven 	  	 	31.4 	 	  	 	168 	 	  	 	0.50 	 	  	 	0.74 	 	  	 	5.20 	 	  	 	6.16 	 	  	 	170 	 	  	 	1 	 	  	 	233 	 	  	 	1,635 	 	  	 	1,938	 
	  	Probable  	  	 	110.5 	 	  	 	174 	 	  	 	0.73 	 	  	 	0.55 	 	  	 	5.31 	 	  	 	5.93 	 	  	 	620 	 	  	 	3 	 	  	 	606 	 	  	 	5,863 	 	  	 	6,553	 
	  	P+P 	  	 	142.0 	 	  	 	173 	 	  	 	0.68 	 	  	 	0.59 	 	  	 	5.28 	 	  	 	5.98 	 	  	 	790 	 	  	 	3 	 	  	 	839 	 	  	 	7,498 	 	  	 	8,491	 

	 	(1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions)
are based on historical mine to mill reconciliation and are variable: 

	 	a.	14% Ag, 0% Au, 7% Cu, 13% Pb, and 7% Zn = Contacto Occ. 

	 	b.	12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn = All others 

 *** Metallurgical
recovery assumptions for the area are variable: 

	 	c.	53% Ag, 40% Au, 0% Cu, 66% Pb, and 0% Zn = Contacto Occ. (lead oxide material) 

	 	d.	66% Ag, 35% Au, 90% Cu, 0% Pb, and 0% Zn = CUYE (copper sulfide material) 

	 	e.	69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn = All others (polymetallic material) 

	 	(3)	 The NSR CoG for the areas is variable. 

	 	a.	US$56 = CUYE 

	 	b.	US$75 = All others 

	 	(4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	Mining recovery applied is variable by area: 

	 	  i.	95% = CSM_II 

	 	 ii.	94% = C_ORI, CSM_I, Gallito 

	 	iii.	90% = C_OCC, CSM, CUYE, Marita, Juliana, Pozo Rico 

	 	iv.	88% = Butz 

	 	b.	Mining dilution, applied with a zero grade, is variable by area: 

	 	  i.	20% = CUYE, Marita 

	 	 ii.	10% = All others 

	 	(5)	 The application of mining recovery and dilution (applied at a zero grade) results, in some cases, in higher tonnage and
lower grade in reserves when compared to resources in these relatively high grade bodies. 

  
  

					
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 This reserves estimate includes mining blocks down to the 1170 level (approximately
3,737 masl). Minera Corona is currently undertaking shaft expansion and construction projects to access deep ore beyond the 1070 level (3,837 masl). Two Mascota shaft pocket installations at the 1100 level are planned to be in production in late
2016 and early 2017. These will serve to handle waste and ore skipping for the remainder of the production run, into 2020, from the 1070 level. The Mascota double loading pockets will ensure that development waste as well as ore can be skipped from
this level horizon. Completion on the grizzly and dump station for one pocket is currently being completed on the 1070 level. The second grizzly infrastructure on pocket number 2 will be completed by Q1 2017. 

The new Yauricocha shaft will eventually provide access down to the 1370 level and is expected to be in production in early 2019. 

Delays in these projects could affect the overall mine plan by delaying extraction of ore below the 1070 level. 

 

	1.7	 Mining Methods 

The primary mining method at Yauricocha is sublevel caving and is used in Mina Central, Esperanza, Mascota, Angelita (Cachi-Cachi), and
Karlita (Cachi-Cachi). Sublevels are arranged in three 16.7 m sublevels per 50 m level. Drawpoints are spaced on 8 m centers oriented perpendicular to the general strike of the body. Material is caved from 16.7 m above and recovered in the
drawpoint. Cut and fill mining, typically overhand cut and fill, is used in the remaining Cachi-Cachi orebodies (Elissa, Escondida, and Zulma) and in the Cuerpos Pequenos orebodies. Cuts are 2 to 3 m high depending on the cut and fill method
employed. 
 Material is classified in the mine as polymetallic, oxide and copper ores. Polymetallic ore makes up more than 93% of the
reserve tons. Lead oxide makes up approximately 6% of the reserves. Material classified as copper sulfide or copper oxide can also be encountered, but is a minor component of the overall tons in the reserves estimate. 

The mine is accessed by two shafts (Central and Mascota shafts) or the Túnel Klepetko (Klepetko Tunnel). Most of the ore and waste
is transported via Klepetko Tunnel (720 level or an elevation of 4,165 masl), which runs east-northeast from the mine towards the mill and concentrator. 

Mudflows are encountered at Yauricocha. At present, lower mined levels where mudflows are occurring are at the 820 level or an elevation
of 4,040 to 4,057 masl (Antacaca and Catas ore bodies) and the 870 level or an elevation of 4,010 to 4,093 masl (Rosaura and Antacaca Sur ore bodies). All of the recorded mudflows have been located within ore bodies near the contact with the Jumasha
limestone and the adjacent granodiorite and Celendín formation. 
 Geotechnical investigations have been conducted at the
Yauricocha Mine to prepare a geotechnical model of ground conditions. The investigations involved preparing of a major fault model, rock mass model, rock mass strength model, rock mass characterization, granular material (ore ) classifications;
underground traverse mapping, core logging, laboratory tests, shafts inspections, subsidence studies, preparation of a geotechnical database, and the implementation of a data collection process. SRK has confirmed that these activities comply with
international standards and industry best practices. 
 In SRK’s opinion the amount and quality of data is adequate for supporting
the current mine design. Subsidence analyses have demonstrated a reasonable understanding of mechanisms leading to the 

  
  

					
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observed underground and surface subsidence and cracking disturbance. The current understanding of mudflow conditions is sufficient to make adjustments in drawpoint design, mucking operations,
and to a dewatering program. 
 The interpretation of groundwater data provides an understanding of primarily regional groundwater
response to mining. SRK has not had the opportunity to review this data because the information is still being gathered and a groundwater model is being evaluated. Integration of both the geotechnical and hydrogeology models will be conducted once
the hydrogeology model is completed. 
 Dewatering of the immediate hangingwall has improved inflow conditions at drawpoints.
Continued dewatering will help to improve stability of the rock mass near the drawpoints. The drainage galleries appear to be effective, but additional drain holes will be required to remove water from the immediate hangingwall intrusives as mining
progresses to depth. 
 Mine production was 820,000 ore tonnes in 2015, and the Chumpe Mill processed 830,000 tonnes of ore. Table 1-14 shows reported mine production and mill tonnes processed between 2012 and 2015. 

Table 1-14: Reported Mine and Mill Production, 2012 to 2015 

 

																			
	            	 	 Category	  	2012  	 	  	2013  	 	  	2014  	 	  	2015  	 
	 	  Tonnes Mined
	  	 	849,615  	 	  	 	858,398  	 	  	 	929,316  	 	  	 	820,040  	 
	 	  Tonnes Processed
	  	 	872,869  	 	  	 	837,496  	 	  	 	890,910  	 	  	 	829,805  	 

 Source: SRK, 2016 

Two shaft construction projects are in process at Yauricocha. The Yauricocha Shaft project will provide access below the 1120 level and
is expected to be in production in 2019. The Mascota Shaft expansion project will provide production access to the 1120 level with shaft commissioning expected fourth quarter of 2016. Additionally, the Yauricocha Tunnel project, expected to be
completed in the first calendar quarter of 2017, will provide additional flexibility for hauling material to the Chumpe Mill. 
 Site
personnel produce five-year plans as part of the regular short, medium and long term planning process. Infill drilling in areas ahead of planned mining is used to convert mineral resources to ore reserves. As a result, the site’s long-range
plans incorporate material that is not classified as Proven or Probable reserves. The reader is cautioned that mineral resources are not ore reserves and have not demonstrated economic viability. To verify the economic viability of the reserves
estimated for this report, SRK created a production plan incorporating only proven and probable reserves. The proven and probable production plan results in a five-year mine life with 117,000 tonnes remaining in year 6. 

 

	1.8	Recovery Methods 

 Yauricocha operates a conventional concentration process that
includes a single crushing stage, and two parallel circuits, the polymetallic ore circuit with nominal capacity of 2,100 tonnes per day (t/d), and the oxide ore circuit with nominal capacity of 600 t/d. Each circuit consisting of grinding,
sequential differential flotation, dewatering of the concentrates, and thickening and disposal of the flotation tails. Yauricocha’s produces four mineral concentrates: lead oxide concentrate, lead sulfide concentrate, copper concentrate, and
zinc concentrate. All the mineral concentrates are trucked off site. 

  
  

					
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 In addition to the ore supplied from its own mine, Yauricocha has been processing, and
expects to continue processing material from third-party sources whenever there is spare capacity in the processing facilities. 
 A
new crushing plant is being constructed to process oxide ore, with completion expected in 2016. The combined capacity of the expanded concentrator will increase the capacity from the current approximately 81,000 tonnes per month to nominally 105,000
tonnes per month. Yauricocha has identified and expects to be soon working in a number of bottlenecks downstream from the crushing plants. 
  

	1.9	Project Infrastructure 

 The Project is a mature producing mine and mill, with all
required infrastructure in-place and functional. The project has highway access with two routes to support Project needs with the regional capital Huancayo (population 340,000) within 100 km. Personnel travel
by bus to the site and live in one of the four camps (capacity approximately 2,000 people). There are currently approximately 1,700 personnel on-site with approximately 500 being employees and 1,200 being
contractors. 
 The on-site facilities include the processing plant, mine surface facilities,
underground mine facilities, tailings storage facility, and support facilities. The processing facility includes crushing, grinding, flotation; dewatering and concentrate separation, concentrate storage, and thickening and tailings discharge lines
to the tailings storage facility (TSF). The underground mine and surface facilities include headframes, hoist houses, shafts and winzes, ventilation structures, mine access tunnels, waste storage facilities, powder and primer magazines, underground
shops, and diesel and lubrications storage. The support facilities include four camps where personnel live while on-site, a laboratory, change houses and showers, cafeterias, school, medical facility,
engineering and administrative buildings, and miscellaneous equipment and electrical shops to support the operations. 
 The site has
existing water systems to manage water needs on-site. Water is sourced from Uñascocha Lake, Ococha Lake, Cachi-Cachi underground mine, and recycle/overflow water from the TSF depending on end use. Water
treatment systems treat the raw water for use as potable water or for service water in the plant. Additional systems treat the wastewater for further consumption or discharge. 

Energy for the site is available through electric power, compressed air, and diesel. The electric power is supplied by contract over an
existing 69 kV line to the site substation. The power is distributed for use in the underground or at the processing facility. 12.75 MVA is the load with approximately 70% of this being used at the mine and the remainder at the mill and other
facilities. A compressed air system is used underground and diesel is used in the diesel equipment on-site and in the 895 kW backup generator. 

The site has permitted systems for handling of waste including a TSF, waste rock storage facility, and systems to handle other
miscellaneous wastes. The TSF has recently been expanded and has capacity for two to three years at the current production levels, and an additional TSF expansion is planned in 2018. An on-site industrial
landfill is used to dispose of the Project solid and domestic waste. The Project collects waste oil, scrap metal, plastic, and paper and it is recycled at off-site licensed facilities. 

  
  

					
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 The site has an existing communications system that includes a fiber optic backbone
with internet, telephone, and paging systems. The security on-site is managed through checkpoints at the main access road, processing plan, and at the camp entrances. 

Logistics to the site are transported primarily by truck and the five main concentrate products are shipped by 30 to 40 t trucks to
other customer locations in Peru. Materials and supplies needed for Project operation are procured in Lima and delivered by truck. 
  

	1.10	Environmental Studies and Permitting 

 SMCSA has all relevant permits required for
the current mining and metallurgical operations to support a current capacity of 2,500 t/d. These permits include operating licenses, mining and process concessions, capacity extension permits, exploration permits and their extensions, water use
license, discharge permits, sanitary treatment plants permits, and environmental management instruments among others, as well as a Community Relations Plan including annual assessment, records, minutes, contracts and agreements. 

SMCSA’s only principal environmental management tool is the Environmental Adjustment and Management Plan (PAMA) of the Yauricocha
Production Unit (Centromin, 1997), which has the category of an environmental certification similar as an environmental impact assessment. 

SMCSA has updated its environmental baseline and adjusted its monitoring program by its Supporting Technical Report to the PAMA
“Expanding the capacity of the Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (Geoservice Ambiental S.A.C., ITS approved by Directorial resolution N°
242-2015-MINEM-DGAAM). This will allow Yauricocha to increase production output to 3,000 t/d once final construction changes are reviewed and approved by government authorities. 

If seeking any expansion it is likely that a detailed environmental and social impact assessment for the Accumulación Yauricocha
Unit will have to be prepared in coordination with SENACE (Peruvian national service for environmental certification). Closure Plan costs are presented in the next table. 

Table 1-15: Closure Plan - Results of the Updated Cost Analysis (US$) 

 

									
	Description	 	Progressive Closure  	 	Final Closure  	 	Post Closure  	 	Total  
	 Direct costs
	 	1,204,266  	 	8,649,603  	 	723,607  	 	10,577,476  
	 General costs
	 	120,427  	 	864,960  	 	72,361  	 	1,057,748  
	 Utility
	 	96,341  	 	691,968  	 	57,889  	 	846,198  
	 Engineering
	 	48,171  	 	345,984  	 	28,944  	 	423,099  
	
Supervision, auditing & administration
	 	48,171  	 	345,984  	 	28,944  	 	423,099  
	
Contingency
	 	48,171  	 	345,984  	 	28,944  	 	423,099  
	
Total
	 	1,565,547  	 	11,244,483  	 	940,689  	 	13,750,719  
	 VAT
	 	281,798  	 	2,024,007  	 	169,324  	 	2,475,129  
	 Total
Budget
	 	1,847,345  	 	13,268,490  	 	1,110,013  	 	16,225,848  

 Note: SRK has made minor adjustments where amounts in the original table did not add properly. The final amount is
unchanged 
  
  

	1.11	Capital and Operating Costs 

 Using an average mining/processing rate of 1,729 t/d
and a maximum rate of 2,077 t/d, the Yauricocha reserves should support the Project until the end of the first quarter of 2021. 

  
  

					
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 The yearly capital expenditure by area is summarized in Table 1-16. 
 Table 1-16: Capital Summary 

 

																											
	 	 	Description	  	 2016  

 (US$000’s)  
	 	  	 2017  

 (US$000’s)  
	 	  	 2018  

 (US$000’s)  
	 	  	 2019  

 (US$000’s)  
	 	  	 2020  

 (US$000’s)  
	 	  	 2021 

 (US$000’s) 
	 
	 	 Development
	  	 	795  	 	  	 	821  	 	  	 	787  	 	  	 	806  	 	  	 	764  	 	  	 	127 	 
	 	 Projects
	  	 	2,772  	 	  	 	3,979  	 	  	 	4,728  	 	  	 	5,322  	 	  	 	4,822  	 	  	 	0 	 
	 	 PP&E
	  	 	1,780  	 	  	 	1,500  	 	  	 	1,500  	 	  	 	1,500  	 	  	 	1,500  	 	  	 	0 	 
	 	 Mine Expansion
	  	 	1,674  	 	  	 	2,500  	 	  	 	2,500  	 	  	 	3,100  	 	  	 	3,100  	 	  	 	0 	 
	 	 Growth
	  	 	6,480  	 	  	 	3,750  	 	  	 	3,750  	 	  	 	1,000  	 	  	 	1,500  	 	  	 	0 	 
	 	 Exploration
	  	 	525  	 	  	 	0  	 	  	 	0  	 	  	 	0  	 	  	 	0  	 	  	 	0 	 
	 	 Total Capital
	  	 	$14,024  	 	  	 	$12,550  	 	  	 	$13,266  	 	  	 	$11,728  	 	  	 	$11,686  	 	  	 	$127 	 

 Source: Sierra Metals, 2016 
  

The Project’s operating costs were estimated using a first principles approach and are based on current site specific data. Table 1-17 and Table 1-18 show a summary of total operating costs and unit operating costs. 

Table 1-17: Operating Cost Summary 

 

																													
	Area	  	Total  
(US$000’s)  	 	  	 2016  

(US$000’s)  
	 	  	 2017  

(US$000’s)  
	 	  	 2018  

(US$000’s)  
	 	  	 2019  

(US$000’s)  
	 	  	 2020  

(US$000’s)  
	 	  	 2021 

(US$000’s) 
	 
	 Mine
	  	 	145,624  	 	  	 	30,157  	 	  	 	31,142  	 	  	 	26,727  	 	  	 	27,364  	 	  	 	25,924  	 	  	 	4,310 	 
	 Plant
	  	 	40,149  	 	  	 	7,784  	 	  	 	8,039  	 	  	 	7,710  	 	  	 	7,894  	 	  	 	7,479  	 	  	 	1,243 	 
	 G&A
	  	 	25,247  	 	  	 	4,508  	 	  	 	4,456  	 	  	 	5,049  	 	  	 	5,319  	 	  	 	5,064  	 	  	 	852 	 
	
Total
	  	 	$211,020  	 	  	 	$42,449  	 	  	 	$43,637  	 	  	 	$39,485  	 	  	 	$40,577  	 	  	 	$38,466  	 	  	 	$6,406 	 

 Source: Sierra Metals, 2016 
  

 
 Table 1-18: Unit
Operating Cost Summary 
  

																			
	 	 	  
Area	  	     Average  
(US$/t)  	 	  	
2016  

     (US$/t)  
	  	 2017  

     (US$/t)  
	  	
2018  

     (US$/t)  
	  	 2019  

     (US$/t)  
	  	
2020  

     (US$/t)  
	  	
2021 

     (US$/t) 

	 	
  Mine
	  	 	38.45  	 	  	41.07  	  	41.07  	  	36.75  	  	36.75  	  	36.75  	  	36.75 
	 	
  Plant
	  	 	10.60  	 	  	10.60  	  	10.60  	  	10.60  	  	10.60  	  	10.60  	  	10.60 
	 	   G&A
	  	 	6.67  	 	  	6.14  	  	5.88  	  	6.94  	  	7.14  	  	7.18  	  	7.26 
	 	   Total
	  	 	$55.72  	 	  	$57.81  	  	$57.55  	  	$54.29  	  	$54.50  	  	$54.53  	  	$54.62 

 Source: Sierra Metals, 2016 
  

 

	1.12	Economic Analysis 

 Yauricocha is a polymetallic mine that produces and sells lead,
zinc and copper concentrates. Zinc is the biggest contributor to the project revenue and corresponds to approximately 41% of value. Copper is considered a secondary co-product to zinc, corresponding to 23% of
the revenue. Lead, silver and gold are considered by-products of the operation and each contribute 18%, 15% and 3%, respectively, to the mine’s revenue.
Figure 1-1 presents a graphical representation of each metals contribution to the Project’s revenue. 

The reserves disclosed in this report support a profitable operation under the cost and market assumptions stated in this report. 

  
  

					
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 Source: SRK, 

Figure 1-1: Metal Contribution to Revenue 

 
  

	1.13   Conclusions	and Recommendations 

  

	1.13.1	Geology and Mineral Resources 

 SRK is of the opinion that the exploration at
Yauricocha is being conducted in a reasonable manner and is supported by an extensive history of discovery and development. Recent exploration success at Esperanza will continue to develop in the near term and SRK notes that other areas near the
current mining operation remain prospective for additional exploration, and that these will be prioritized based on the needs and objectives of the Yauricocha Mine. 

The current QA/QC program is aggressive and should be providing very high confidence in the quality of the analytical data.
Unfortunately, the results from both ALS and the Chumpe laboratories show significant failures which could be related to a number of factors that may be out of the control of the laboratory. These should be evaluated and investigated by Yauricocha
personnel, in collaboration with the lab. 
 SRK is of the opinion that the current procedures and methods for the data collection and
validation are reasonable and consistent with industry best practices, but that there are opportunities to improve this going forward. 

The procedures and methods supporting the mineral resource estimation have been developed in conjunction with Minera Corona geological
personnel, and the resource estimations presented herein 

  
  

					
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have been conducted by independent consultants using supporting data generated by site personnel. In general, the geologic models are defined by the site geologists using manual and 3D modeling
techniques from drilling and development information. These models are used to constrain block models, which are flagged with bulk density, mine area, depletion, etc. Grade is estimated into these block models using both drill and channel samples,
and applying industry-standard estimation methodology. Mineral resources estimated by the independent consultants are categorized in a manner consistent with industry best practice, and are reported above reasonable unit value cut-offs. 
 SRK is of the opinion that the resource estimations are suitable for public reporting
and are a fair representation of the in-situ contained metal for the Yauricocha deposit. 
  

	1.13.2	 Mining and Reserves 

The Yauricocha Mine is a producing operation with a long production history. SRK is of the opinion that the reserve estimations are
suitable for public reporting and are a fair representation of the expected mill feed for the Yauricocha deposit. Sierra Metals personnel are working to manage the challenging ground conditions through studies, improved planning, and execution of
mine plans. 
 SRK recommends the following: 
  

	 	●	 	 The planning of infill drilling and mine planning should emphasize the conversion of resources into reserves inventory
especially for the mid-range planning horizon; 

	 	●	 	 The Yauricocha Shaft and Mascota Shaft Expansion projects need to be monitored closely in order to ensure timely access
to reserves below the 1020 level; and 

	 	●	 	 Mine to mill reconciliation efforts should continue in order to verify and tune the parameters used to convert resources
to reserves; particularly the grade adjustment factors. Site personnel are improving the QA/QC program, modeling, and estimation techniques, and the grade adjustment factors may need to be modified as a result. Production at Esperanza presents a
unique opportunity to perform a focused reconciliation analysis. 

  

	1.13.3	 Environmental and Permitting 

 

	 	●	 	 The Production Unit is located in the buffer zone of the Nor Yauyos-Cochas landscape reserve wherefore its location is
considered sensitive. 

	 	●	 	 The Santo Domingo Laraos peasant’s community does not give the social license to perform mining activities in the
area of Ipillo and other points of interest to SMCSA. 

	 	●	 	 Existing contaminated soils will have to be identified more precisely, treated (decontaminated) and the areas restored.
Therefore, a soil decontamination plan should be included in the next Closure Plan amendment or update, or presented separately in compliance with the D.S. N° 002-2014-MINAM. 

	 	●	 	 Site wide management and monitoring of contact and non-contact water is
necessary to prevent and control impacting ground water and surface water quality (e.g., contact water from waste dumps and filtrations from the tailings pond). 

	 	●	 	 Wetland conservation and management; and compensation as required as to the National Wetland Strategy (Estrategia
Nacional de Humedales, D.S. N° 004-2015-MINAM) and the complementary guideline for environmental compensation: High Andean ecosystems (Guia complementaria para la compensación ambiental:
ecosistemas alto andinas, R.M. N°183-2016-MINAM). 

  
  

					
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	 	●	 	 Since the PAMA of the Yauricocha Production Unit (Centromin, 1997) is the only principal environmental management tool,
which has the category of an environmental certification similar as an environmental impact assessment, SMCSA will have to present an updated environmental impact study as established by the D.S.
N° 019-2009-MINAM. As the D.S. N° 040-2014-EM, in its First and Second Supplementary Final Provisions, regulates the
integration and updating of the environmental impact assessment with the objective that each operating unit shall only have one updated environmental management tool, it is likely that the Accumulación Yauricocha Unit will have to present a
detailed environmental and social impact assessment in coordination with SENACE if seeking any expansion. This includes preparing a number of studies as to the term of reference published by SENACE such as social impact assessment including a
social, economic, cultural and anthropological population baseline, hydrogeological pollutant transport model for short-, medium- and long-term scenarios, air quality and contaminant distribution assessment, archaeological survey report as for the
certificate of nonexistence of archaeological remains (CIRA, certificado de inexistencia de restos arqueologicos), mitigation or compensation measures as applicable, among others. These studies, if well performed, will help to give a better
understanding of the environmental and social implications of the mine site. 

  

	1.13.4	 Infrastructure and Tailings 

Based on SRK’s review of the provided tailings storage facility documents SRK recommends the following additional work: 

 

	 	●	 	 Generate at least 10 sections with slide analysis and factor of safety; 

	 	●	 	 Generate sections with in situ geology and densities; and 

	 	●	 	 Generate hydrogeology studies within the footprint of the dam and surface water models. 

 

	1.13.5	 Economic Analysis 

In early years of production, the economic valuation of the Project used gold and silver prices that are lower than current spot prices
observed in the market. The metal price assumptions were derived from July 19, 2016 BMO Capital Markets Street Consensus Commodity prices, and the consensus price for 2016 was used for the evaluation.
By-products represent approximately 20% of the revenue, and SRK notes that an increase in gold and silver prices could result in a significant positive impact in the analysis. 

Mine development quantities and costs used in the valuation were built up from site-specific averages from recent production. Only 5% of
the development meters are covered by capital expenditures and the remaining 95% are covered by operating costs, thus mine development capital represents approximatley 6% of the total project capital. A detailed development plan incorporated into
the economic evaluation may help to optimize the mine plan. SRK recommends that the company reviews and refines the estimate of mine development required to mine the stated reserves in future reserves assessments. 

The valuation contained herein did not consider the impact of an eventual closure of the operation. It is SRK’s understanding that
there is the potential to extend the mine life further than what is currently supported by reserves. SRK recommends that Sierra Metals include closure liability and timing of the obligations for the project valuation in the future. 

  
  

					
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	2	Introduction 

  

	2.1	Terms of Reference and Purpose of the Report 

 This report was prepared as a
Prefeasibility-level (PFS) National Instrument 43-101 (NI 43-101) Technical Report on Resources and Reserves (Technical Report) for Sierra Metals Inc. (Sierra Metals),
previously known as Dia Bras Exploration, Inc., on the Yauricocha Mine (Yauricocha or Project), which is located in the eastern part of the Department of Lima, Peru. The purpose of this report is to present the mineral resource and reserve
estimates, supported by an economic evaluation for the Mine. 
 The quality of information, conclusions, and estimates contained herein
is consistent with the level of effort involved in SRK’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this
report. This report is intended for use by Sierra Metals subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits Sierra Metals to file this report as a Technical Report with Canadian
securities regulatory authorities pursuant to NI 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any
third party is at that party’s sole risk. The responsibility for this disclosure remains with Sierra Metals. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new
Technical Report has been issued. 
 This report provides Mineral Resource and Mineral Reserve estimates, and a classification of
resources and reserves prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines, May 10, 2014 (CIM, 2014). 

 

	2.2	Qualifications of Consultants (SRK) 

 The Consultants preparing this technical
report are specialists in the fields of geology, exploration, Mineral Resource and Mineral Reserve estimation and classification, underground mining, geotechnical, environmental, permitting, metallurgical testing, mineral processing, processing
design, capital and operating cost estimation, and mineral economics. 
 None of the Consultants or any associates employed in the
preparation of this report have any beneficial interest in Sierra Metals. The Consultants are not insiders, associates, or affiliates of Sierra Metals. The results of this Technical Report are not dependent upon any prior agreements concerning the
conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between Sierra Metals and the Consultants. The Consultants are being paid a fee for their work in accordance with normal professional
consulting practice. 
 The following individuals, by virtue of their education, experience and professional association, are
considered Qualified Persons (QP) as defined in the NI 43-101 standard, for this report, and are members in good standing of appropriate professional institutions. QP certificates of authors are provided in
Appendix A. The QP’s are responsible for specific sections as follows: 

  
  

					
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	 	●	 	 Matthew Hastings, Senior Consultant (Resource Geology) is the QP responsible for the Geology and Resource - Sections 4, 5.1-5.4, 6-12, 14, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

	 	●	 	 Jon Larson, Principal Consultant (Mining Engineer) is the QP responsible for Reserves, Mining Methods, Market Studies
and Contracts, Capital and Operating Costs, Economic Analysis, Adjacent Properties, and Other Relevant Data and Information – Sections 2, 3, 15, 16.1, 16.3-16.8, 19,
21-24, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

	 	●	 	 Jeff Osborn, Principal Consultant (Mining Engineer) is the QP responsible for Project Infrastructure - Sections 5.5, 18,
and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

	 	●	 	 Fernando Rodrigues, Principal Consultant (Mining Engineer) is the QP responsible for Environmental Studies, Permitting
and Social or Community Impact - Section 20, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

	 	●	 	 Daniel Sepulveda, Associate Consultant (Metallurgy) is the QP responsible for Mineral Processing and Metallurgical
Testing and Recovery Methods - Sections 13, 17, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

	 	●	 	 John Tinucci, President/Practice Leader/Principal Consultant (Geotechnical Engineer) is the QP responsible for Mining
Methods - Section 16.2, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

  

	2.3	Details of Inspection 

 Table 2-1 shows
recent site visit participants. 
 Table 2-1: Site Visit Participants 

 

									
	Personnel	  	Company	  	Expertise	  	Date(s) of Visit	  	Details of Inspection
	 Matthew Hastings
	  	 SRK Consulting

 (U.S.) Inc.
	  	Resource Geology	  	March 12-14, 2015	  	Reviewed geology, resource estimation methodology, sampling and drilling practices, and examined drill
core.
	 Jon Larson
	  	 SRK Consulting

 (U.S.) Inc.
	  	Mining and Reserves	  	June 21-23, 2016	  	Tour of mine, mill, and surface facilities. Reviewed planning practices, mining methods, and underground
construction projects.
	 Fernando Rodrigues
	  	  

SRK Consulting
  (U.S.), Inc.

 
	  	Mining and Reserves	  	March 12-14, 2015	  	Tour of mill, tailings storage facility, on-site lab, and surface
facilities.
	 Daniel Sepulveda
	  	  

SRK Consulting
  (U.S.) Inc.

 
	  	  

Metallurgy and Process
  
	  	  

March 12-14, 2015
  
	  	  

Reviewed metallurgical test work and process plant.
  

  

	2.4	Sources of Information 

 The sources of information include data and reports
supplied by Sierra Metals personnel as well as documents cited throughout the report and referenced in Section 27. 

  
  

					
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	2.5	Effective Date 

 The effective date of this report is June 30, 2016. 

 

	2.6	Units of Measure 

 The metric system has been used throughout this report unless
otherwise noted. Tonnes (t) are metric of 1,000 kg, or 2,204.6 lb. All currency is in U.S. dollars (US$) unless otherwise stated. 

  
  

					
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	3	Reliance on Other Experts 

 The Consultant’s opinion contained herein is based
on information provided to the Consultants by other consultants and Sierra Metals throughout the course of the investigations. SRK has relied upon the work of other consultants, most notably Gustavson Associates in selected project areas in support
of this Technical Report. Many sections of this report, which have not materially changed since previous technical reports, are excerpted from the May 11, 2015 technical report published by Sierra Metals and prepared by Gustavson Associates.
These excerpts appear as italicized text. 
 Gustavson Associates are responsible for the mineral resource estimation of the
Cachi-Cachi and Mascota areas, and SRK has relied upon this work for the statement of mineral resources. SRK has reported Mineral Resources from the Gustavson block models (provided in May 2016), and has updated the models to reflect new metal
pricing, density assumptions, and depletion from mining, but has left the estimated grades, classification, and other parameters intact as were previously provided by Gustavson. 

The Consultants used their experience to determine if the information from previous reports was suitable for inclusion in this technical
report and adjusted information that required amending or updating. This report includes technical information, which required subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree
of rounding and consequently introduce a margin of error. Where these occur, the Consultants do not consider them to be material. 

SRK has relied upon Sierra Metals for disclosure of accurate and factual information regarding the surface land ownership or agreements
as well as the mineral titles and their validity. These items have not been independently reviewed by SRK and SRK did not seek an independent legal opinion of these items. 

  
  

					
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	4	Property Description and Location 

 Sections 4.1, 4.2 and 4.3 of this Report
has been excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the
format of this report; any changes to the text have been indicated by the use of [brackets]. 
  

	4.1	Property Location 

 The Yauricocha Mine is located in the Alis district, Yauyos
province, department of Lima approximately 12 km west of the Continental Divide and 60 km south of the Pachacayo railway station. The active mining area within the mineral concessions is located at coordinates 421,500 m east by 8,638,300 m north on
UTM Zone 18L on the South American 1969 Datum, or latitude and longitude of 12.3105° S and 75.7219° W. It is geographically in the high zone of the eastern Andean cordillera, very close to the divide and within one of the major sources of
the River Cañete, which discharges into the Pacific Ocean. The mine is at an average altitude of 4,600 masl Figure 4-1 shows the project location. 

  
  

					
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 Figure 4-1: Yauricocha Location Map 

 

	4.2	Mineral Titles 

 The mining concession Acumulación Yauricocha (Figure 4-2) was transferred from Empresa Minera del Centro del Peru, the Peruvian state-owned mining entity, to Minera Corona in 2002 (Empresa Minera, 2002) for the sum of $US4,010,000.00, plus an agreement to invest
$US3,000,000.00 to project development or to the community, which agreement has been completed. The Accumulation Yauricocha includes the mineral rights on 19,204.5715 ha. Dia Bras purchased 82% of Minera Corona in May 2011. On December 5, 2012,
Dia Bras Exploration changed its name to Sierra Metals Inc. According to information provided by Dia Bras, the mineral concessions are not subject to an expiration date and remain in effect as long as these two conditions are met: (1) renewal
payment is made to the Peruvian federal government in the amount of US$3 per hectare (ha), and (2) annual minimum production amount of US$100/yr/ha. The payment subject to Condition (1) was made to

  
  

					
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the Peruvian federal government on June 20, 2012. This mineral concession is in good standing (PMJHR, 2013 and INGEMMET, 2012). 

No royalties are associated with the Yauricocha mineral concession. 

Included within the above area is a processing site concession with an area of 148.5 ha with a permitted capacity of 2,500 dry
tonnes/day. This has been authorized by Resolution No. 279- 2010-MEM-DGM/V on July 14, 2010. The payment for rights to
the processing site concession was paid on June 20, 2012 (INGEMMET, 2012). This mineral concession is in good standing. 

  
  

					
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 Source: Sierra Metals, 2015 

Figure 4-2: Yauricocha Mineral Title Map 

  
  

					
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	4.2.1	Nature and Extent of Issuer’s Interest 

 As part of the mineral concessions
transfer with Empresa Minera del Centro del Peru in 2002 (see Section 4.2), Minera Corona acquired approximately 677 ha of land and associated surface rights. A portion of the San Lorenzo Alis community is located within the 677 ha. 

In 2007, Minera Corona entered into an additional agreement with the San Lorenzo Alis community (Villaran, 2009). Under this
agreement, Minera Corona owns the surface rights and may conduct mining operations in the subject 677 ha through August 2, 2037, or until mine closure, whichever comes first. In exchange, Minera Corona is obligated to pay the San Lorenzo Alis
community an annual fee. This fee is paid by Minera Corona every two years beginning on January 1, 2009, and surface rights remain in good standing. However, in February 2013 an addendum was signed which establishes that the payments must be
made every year. This right of usufruct (beneficial use) has been registered before the Public Registry of Lima, Office of Cañete (Public Registry of Lima et al, 2013). 

The Company has in place several land surface agreements by means of which the title holders of the land surfaces within the area of
the Acumulación Yauricocha mining concession, grants the Company the right to use the superficial surface and execute mining activities. The agreements entered by the Company in this regard, are the following: 

Lease Agreement: Huacuypacha 

The Company has entered into a lease agreement with Mr. Abdon Vilchez Melo, regarding the surface land within the real property
named Huacuypacha, located in Tinco, district of Alis, province of Yauyos, Department of Lima. This land is not registered in the Public Registry. By means of this agreement, the Company acquired the right to use said land, including access to water
boreholes. 
 This agreement has been renewed in four opportunities. The term of the agreement expires on December 31,
2021. 
 Lease Agreement: Queka and Cachi-Cachi 

The Company has entered into a lease agreement with the Family Varillas, in relation to land containing 56 ha located in district of
Alis, province of Yauyos, Department of Lima. This land is not registered in the Public Registry. By means of this agreement, the landowner granted the use of the referred land in favor of the Company for a total payment of S/.31,500. In addition to
the payment obligation, the Company has assumed the obligation to take care of all the environmental liabilities that its activities could generate. 

This agreement has been amended in two opportunities. The term of the agreement expired on March 7, 2012. However, the company
has signed a new agreement extending the term of the lease until March 7, 2022 in exchange for a one-time payment of S/.210,000. 

 

	4.3	Royalties, Agreements and Encumbrances 

  

	4.3.1	Debt 

 For the purchase of Minera Corona, Dia Bras Peru S.A.C. borrowed
US$150 million in an agreement with Banco de Credito de Peru on May 24, 2011. All current obligations of debt service have been 

  
  

					
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met and this Technical Report supports the cash flows and reporting requirements that are necessary to continue meeting these obligations. 

In October 2013, Minera Corona has signed a new loan agreement with Banco de Credito de Peru for US$60 million. This loan has a
period of 5 years and is to support expansion and infrastructure costs. 
  

	4.3.2	Royalties and Special Taxes 

 In 2011, the Peruvian Congress passed a new Mining
Law effective in 2012. Under this law, a Special Tax and Royalty is introduced which applies to the operating margin of producing mining companies. The margin rates for a given interval of Earnings Before Interest and Tax (EBIT) are shown in Table 4-1. The total royalty is the summation of the special mining tax and the mining royalty. 
 Table 4-1: Royalty and Special Tax Scale 
  

											
	 	 	  

EBIT Margin  
	 	Special Mining Tax	  	Mining Royalty  	  	 
	 	 	  	  	  	 	  

Margin Rate
	  	Margin Rate  	  	 
		 	0.00%	  	5.00%  	 	0.00%	  	0.00%  	  	
		 	5.00%	  	10.00%  	 	2.00%	  	1.00%  	  	
		 	10.00%	  	15.00%  	 	2.40%	  	1.75%  	  	
		 	15.00%	  	20.00%  	 	2.80%	  	2.50%  	  	
		 	20.00%	  	25.00%  	 	3.20%	  	3.25%  	  	
		 	25.00%	  	30.00%  	 	3.60%	  	4.00%  	  	
		 	30.00%	  	35.00%  	 	4.00%	  	4.75%  	  	
		 	35.00%	  	40.00%  	 	4.40%	  	5.50%  	  	
		 	40.00%	  	45.00%  	 	4.80%	  	6.25%  	  	
		 	45.00%	  	50.00%  	 	5.20%	  	7.00%  	  	
		 	50.00%	  	55.00%  	 	5.60%	  	7.75%  	  	
		 	55.00%	  	60.00%  	 	6.00%	  	8.50%  	  	
		 	60.00%	  	65.00%  	 	6.40%	  	9.25%  	  	
		 	65.00%	  	70.00%  	 	6.80%	  	10.00%  	  	
		 	70.00%	  	75.00%  	 	7.20%	  	10.75%  	  	
		 	75.00%	  	80.00%  	 	7.60%	  	11.50%  	  	
		 	80.00%	  	85.00%  	 	8.00%	  	12.00%  	  	
		 	85.00%	  	90.00%  	 	8.40%	  	 	  	

 Source: Gustavson, 2015 
  

	4.4	Environmental Liabilities and Permitting 

 The mine known as
“Acumulación Yauricocha Unit” is located on the property of the San Lorenzo de Alis and Laraos Peasants Communities and in the buffer zone of the Nor Yauyos-Cochas landscape reserve. It was established by the Supreme Decree N° 033-2001-AG (06/03/2001) which has a Master Plan 2006-2011 by the National Institute of Natural Resources Natural Protected Area Office (INRENA, Instituto Nacional de Recursos
Naturales, IANP, Intendencia de Áreas Naturales Protegidas). 

  
  

					
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 SMCSA has managed its operations in Acumulación Yauricocha based on: 

 

	 	•	 	 The Environmental Adjustment and Management Plan (PAMA, Plan de Adecuación y Manejo Ambiental) presented by
CENTROMIN (approved by Directorial resolution N° 015-97-EM/DGM, 01/03/1997); 

 

	 	•	 	 The modification of the implementation nine projects of the PAMA of the Yauricocha Production Unit presented by
CENTROMIN, (approved by Directorial resolution N° 159-2002-EM-DGAA, 05/23/2002); 

 

	 	•	 	 The implementation of the PAMA “Yauricocha” Administrative Economic Unit by SMCSA (approved by Directorial
resolution N° 031-2007-MINEM-DGM, 02/08/2007); 

  

	 	•	 	 The Mine Closure Plan (PCM) at feasibility level of the Yauricocha Mining Unit, presented by SMCSA (approved by
Directorial resolution N° 258-2009-MINEM-AAM, 08/24/2009); 

  

	 	•	 	 Authorization to operate the Mill N° 4 (8’x10’) and the amendment of the “Yauricocha
Chumpe” Benefit Concession to the expanded capacity of 2500 TMD, presented by SMCSA (approved by Resolution
N° 279-2010-MINEM-DGM-V, 07/14/2010); 

 

	 	•	 	 The Yauricocha Mining Unit Mine Closure Plan Update, presented by SMCSA (approved by Directorial resolution N° 495-2013-MINEM-AAM, 12/17/2013); 

  

	 	•	 	 Supporting Technical Reports to the PAMA (ITS, Informe Técnico Sustentatorio) “Expanding the capacity of the
Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (approved by Directorial resolution N° 242-2015-MINEM-DGAAM, 06/09/2015); 

 

	 	•	 	 Supporting Technical Report to the PAMA (ITS) “Technological improvement of the domestic waste water treatment
system” (approved by Directorial resolution N° 486-2015-MINEM-DGAAM, 11/12/2015); and 

  

	 	•	 	 Approval of the amendment of the Closure Plan of the Yauricocha Mining Unit (approved by Directorial resolution N° 002-2016-MINEM-DGAAM, 01/08/2016). 

 Note that the Supporting Technical Reports
are prepared in compliance with the Supreme Decree N° 054-2013-PCM (article Art. 4) and R.M. N° 120-2014-MEM/DM, and refers to the modification of mining components, or extensions and upgrades in the mining unit, in exploration and exploitation projects when the environmental impacts are insignificant.

 Environmental liabilities and permitting are discussed in further detail in Section 20. A list of approved environmental and
closure permits are included in section 20.2 Required Permits and Status. 
  

	4.5	Other Significant Factors and Risks 

 SRK is not aware of any additional
significant factors or risks that affect access, title, right, or ability to perform work on the property. 

  
  

					
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	5	Accessibility, Climate, Local Resources, Infrastructure and Physiography 

Sections 5.1, 5.2, 5.3 and 5.4 of this Report has been excerpted from NI 43-101 Technical
Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of this report; any changes to the text have been indicated by the use of
[brackets]. 
  

	5.1	Topography, Elevation and Vegetation 

 The topography of the Yauricocha mining
district is abrupt, typical alpine terrain. Pliocene erosion is clearly recognizable in the undulating, open fields to the northeast of the Continental Divide while to the southeast the terrain is cut by deep valleys and canyons. The extent of this
erosion is evidenced by mountain peaks with an average elevation of 5,000 masl. 
 To the southeast of the Continental Divide,
the high valleys are related to the Chacra Uplift. Below 3,400 m elevation, this grand period of uplift is clearly illustrated by deep canyons that in some cases are thousands of meters deep. Valleys above 4,000 masl clearly demonstrate the effects
of Pliocene glaciations, with well-developed lateral and terminal moraines, U-shaped valleys, hanging valleys and glacial lakes. 

Vegetation in the Yauricocha area is principally tropical alpine – rain tundra. The flora is varied with species of grasses,
bushes, and some trees. The biological diversity is typical of Andean alpine communities. 
  

	5.2	Accessibility and Transportation to the Property 

 The principal access to the
Mine is the main Lima – Huancayo – Yauricocha highway. The highway is paved (asphalt) for the first 420 km, along the Lima – Huancayo – Chupaca interval. From Chupaca to the Mine the road is unpaved. 

Another important access route is along the southern Pan-American Highway from Lima through
Cañete to Yauricocha, through the valley of the Rio Cañete, for a distance of 370 km. The road is paved (asphalt) from Lima to Pacarán, and from Pacarán to the mine it is unpaved. 

 

	5.3	Climate and Length of Operating Season 

 The climate in the region is cool, with
two well-demarcated seasons with daytime temperatures above 20oC; the nights are cool with temperatures below 10 oC. Operations are carried out year round. The wet season extends from November to April, and during April and May there is
broad vegetative cover. The dry season covers the remainder of the year. 
 During the wet season, snow and hail feed the
glaciers, which subsequently feed streams that descend the mountainsides and feed the lakes below. 
 The climate factors do not
affect the length of the operating season, and the mine operates continuously year-round. 

  
  

					
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	5.4	Sufficiency of Surface Rights 

 Overall, the property position including mineral
concessions and surface rights are expected to be sufficient for foreseeable mine activities. As shown on Figure 5-1, the project infrastructure is located within the area where Sierra Metals has surface
rights. The Cachi-Cachi mine is located within the area of mineral rights, but outside of the area of surface rights. Cachi-Cachi is an underground mine, and surface access to Cachi-Cachi is located within the area of surface rights. 

Of the 20 km length of the property along strike, approximately 4 km have been developed near the center of the property. 

  
  

					
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 Source: Gustavson, 2015 

Figure 5-1: Yauricocha Site Layout 

  
  

					
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	5.5	Infrastructure Availability and Sources 

  

	5.5.1	Power 

 The primary power is provided through the existing power system, Sistema
Interconectado Nacional (SINAC) to the Oroya Substation. A three phase, 60 hertz, 69 kV power line owned and operated by Statkraft (SN Power Peru S.A.) through its subsidiary, Electroandes S.A. delivers electricity from the Oroya Substation to the
Project substation at Chumpe. Power is transformed to 12 KV line voltage and approximately 9 MVA is supplied to the mine and 3.75 MVA is supplied to the processing plant. 
  

	5.5.2	Water 

 Water is sourced from Uñascocha Lake, Ococha Lake, Cachi-Cachi
underground mine, and recycle/overflow water from the TSF depending on end use. 
  

	5.5.3	Mining Personnel 

 The largest community of substance is Huancayo located
approximately 100 km to the east-northeast. Huancayo and the surrounding communities have a combined population of approximately 340,000 people. Huancayo is the capital of the Junin Region of Peru. 

The employees live on-site at four camps and a hotel with capability to house approximately 2,000
people. The camps include the supervisory camp, the mill camp, and the mining camp that also houses mining contractors. There are approximately 1,700 people (500 employees/1,200 contractors) currently working on the site. 

 

	5.5.4	Potential Tailings Storage Areas 

 The site has an existing tailings storage
facility that has recently been expanded to a capacity of approximately 2.5 Mt. Based on the last expansion, the facility will allow storage of the tailings material for the next three years, based on the current production rates. 

 

	5.5.5	Potential Waste Disposal Areas 

 The site has existing permitted waste disposal
areas as well as systems to handle miscellaneous wastes. 
  

	5.5.6	Potential Processing Plant Sites 

 The site has an existing mineral processing site
that has been in use for a number of years. 

  
  

					
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	6	History 

 Sections 6.1 and 6.2 of this Report has been excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of this report; any
changes to the text have been indicated by the use of [brackets]. 
  

	6.1	Prior Ownership and Ownership Changes 

 The silver of Yauricocha was initially
documented by Alexander von Humboldt in the early 1800s. In 1905, the Valladares family filed the claims of what is today the Yauricocha Mine. The Valladares family mined high grade silver ore for 22 years and in 1927, Cerro de Pasco Corporation
acquired the Yauricocha claims. In 1948, Cerro de Pasco commenced mining operations at Yauricocha until the Peruvian Military Government nationalized Cerro de Pasco Corporation and Yauricocha became a production unit of State-owned Centromin Peru
S.A. for 30 years. In 2002, the Yauricocha unit was privatized and purchased by Minera Corona. Dia Bras (Sierra Metals) acquired 82% of the total equity of Corona in May 2011. 

Sierra Metals retains a 100% controlling ownership status in the Yauricocha Mine, through their subsidiary Sociedad Minera Corona S.A.
(SMCSA). An unnamed private interest holds 18.16% equity ownership in Yauricocha, with Sierra Metals holding the remaining 81.84%. 
  

	6.2	Exploration and Development Results of Previous Owners 

 Prior to the 1970s
detailed production records are unavailable. Since 1973, Company records indicate that Yauricocha has produced 13.6 million tonnes of mineralized material containing 63 million ounces of silver as well as 378 thousand tonnes of lead,
117 thousand tonnes of copper and nearly 618 thousand tonnes of zinc. Since 1979, Yauricocha has averaged 413,000 tonnes of production per year. The historical estimates presented below predate CIM and NI
43-101 reporting standards and therefore cannot be relied upon. These estimates were not used as a basis for the current resource and/or reserve estimates, as the material has already been mined and processed.

 Table 6-1 summarizes exploration and mining statistics under Corona ownership.
Mineral inventory is derived from Company reports to Peruvian regulatory Authorities and are not CIM compliant. Mine production is derived from actual mine production records. 

  
  

					
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 Table 6-1: Prior Exploration and Development Results

  

															
	YEAR   	  	
Exploration   

(Meters)   
	  	
Development   
and Infill   

(Meters)   
	  	
 Exploration   

 and   

 Development   

 (Meters)   
	  	Drilling (DDH)  
by Company  
(Meters)  	  	  

Drilling   

(DDH)   

by   

Contractor   

(Meters)   
  
	  	
Mine  
 Production  

(Tonnes)  
	  	Mineral *
Inventory
(Tonnes)
	 2002  
	  	2,726	  	1,160	  	3,886	  	  1,887	  	 	  	124,377	  	   344,630
	 2003  
	  	3,307	  	1,648	  	4,955	  	  3,415	  	 	  	212,677	  	   571,520
	 2004  
	  	1,778	  	2,245	  	4,023	  	  2,970	  	 	  	233,486	  	1,001,350
	 2005  
	  	2,004	  	2,030	  	4,034	  	  3,160	  	  8,043	  	373,546	  	   702,524
	 2006  
	  	   788	  	1,998	  	2,786	  	  2,999	  	10,195	  	487,909	  	6,371,845
	 2007  
	  	   826	  	1,640	  	2,466	  	  4,751	  	  6,196	  	546,652	  	4,773,198
	 2008  
	  	   796	  	1,534	  	2,380	  	  5,379	  	13,445	  	690,222	  	4,720,606
	 2009  
	  	   872	  	1,040	  	1,912	  	  4,955	  	13,579	  	802,737	  	4,974,593
	 2010  
	  	   454	  	   632	  	1,086	  	  4,615	  	  3,527	  	837,389	  	5,379,526
	 2011  
	  	   684	  	   927	  	1,611	  	  5,195	  	  9,071	  	816,289	  	4,943,770
	 2012  
	  	   921	  	   609	  	1,530	  	11,532	  	31,257	  	872,869	  	5,246,000
	 2013  
	  	 1730	  	   839	  	2,569	  	10,653	  	16,781	  	840,711	  	6,394,000
	 2014  
	  	   680	  	   331	  	1,011	  	  9,357	  	30,455	  	890,910	  	 

 * Beginning of Year Balances. Mineral Inventory includes Proven and Probable Reserves and Indicated Resources as
reported to the Peruvian Exchange, and is not CIM compliant. These numbers are for historic information purposes only. 
 Source: Gustavson, 2015

  

	6.3	Historic Mineral Resource and Reserve Estimates 

 The historic Mineral Inventories
are listed in Section 6.2. A qualified person has not done sufficient work to classify the historical estimates summarized in Table 6-1 as a current resource and the issuer is not treating the historical
estimate as a current resource estimate. 
  

	6.4	Historic Production 

 Historic production is also listed in Table 6-1, and is based on actual Yauricocha Mine production reports. 

  
  

					
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	7	Geological Setting and Mineralization 

 Sections 7.1, 7.2 and 7.3 of this
Report has been excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to
suit the format of this report; any changes to the text have been indicated by the use of [brackets]. 
  

	7.1	Regional Geology 

 Most of the stratigraphy, structure, magmatism, volcanism and
mineralization in Peru are spatially- and genetically-related to the tectonic evolution of the Andean Cordillera that is situated along a major convergent subduction zone where a segment of the oceanic crust, the Nazca Plate, slips beneath the
overriding South American continental plate. The Andean Cordillera has a metamorphic rock basement of Proterozoic age on which Hercynian Paleozoic sedimentary rocks accumulated and were, in turn, deformed by plutonism and volcanism to Upper
Paleozoic time. Beginning in the Late Triassic time, following Atlantic Ocean rifting, two periods of subduction along the western margins of South America resulted in the formation of the present Andes: the Mariana-type subduction from the Late
Triassic to Late Cretaceous and Andean-style subduction from the Late Cretaceous to the present. Late Triassic to late Cretaceous Mariana-type subduction resulted in an environment of extension and crustal attenuation producing an oceanic trench,
island arcs, and back arc basin from west to east. The back arc basin reportedly has two basinal components, the Western Basin and Eastern Basin, which are separated by the Cusco – Puno high, probably part of the Maranon Arch. The basins are
largely comprised of marine clastic and minor carbonate lithologies of the Yura and Mara Groups overlain by carbonates of the Ferrobamba Formation. The western back-arc basin, called the ‘Arequipa
Basin’, is the present Western Andean Cordillera of Peru; the site of a Holocene magmatic belt that spans the Andes and was emplaced from Late Oligocene to 25 Ma. 

The Western Andean Cordillera is recognized for its world class base- and precious-metal deposits, many of which have been
intermittently mined since Incan time. Most of the metal deposits in Peru are spatially and genetically associated with metal-rich hydrothermal fluids generated along magmatic belts that were emplaced along convergent plate tectonic lineaments.
Furthermore, many of these primary base-metal deposits have undergone significant supergene enrichment due to uplift and weathering over the last 30 Ma. 

Radiometric studies have correlated the igneous host rocks and attendant hydrothermal alteration for some of the largest and richest
porphyry copper deposits in the world along the Western Andean Cordillera from 6° to 32° south, including the Chalcobamba – Tintaya iron-gold-copper skarn and porphyry belt (30 to 35 Ma) in the main magmatic arc, southward through the
Santa Lucia district (25 to 30 Ma) and into Chile. The Andahuaylas-Yauri Porphyry Copper Belt, a well-known 300 km long porphyry copper belt related to middle Eocene to early Oligocene calc-alkaline plutonism, is situated along the northeastern edge
of the Western Andean Cordillera. 

  
  

					
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 Source: Sierra Metals, 2015 

Figure 7-1: Regional Geology Map 

  
  

					
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	7.2	Local Geology 

 The local geology of the Yauricocha mine has been well understood
by Minera Corona personnel for a number of years, and is summarized as follows. Figure 7-2 shows the local surface geology of the Yauricocha area. 

Goyllarisquizga Formation 

The oldest rocks exposed in the area are the lower Cretaceous Goyllarisquizga arenites. This formation is approximately 300 m thick
and comprises thick gray and white arenites, locally banded with carbonaceous lutites as well as small mantos of low-quality coal beds and clay. In the vicinity of Chaucha, these arenites have near their base
interbedded, red lutite. The arenites crop out in the cores of the anticlines southwest of Yauricocha, as beds dispersed along the Chacras uplift, and isolated outcrops in the Éxito zone. 

Jumasha Formation 

The mid-Cretaceous Jumasha Formation consists of massive gray limestone, averages 700 m thick,
and concordantly overlies the Goyllarisquizga Formation. Intercalations of carbonaceous lutites occur at its base near the contact with the arenites. These layers are succeeded by discontinuous lenses of maroon and grey limestone, occasionally with
horizons of lutite and chert about 6 m thick. Also present are pseudo-breccias of probable sedimentary origin and a basaltic sill. 

Celendín Formation 

The Celendín Formation concordantly overlies the Jumasha Formation and contains finely stratified silicic lutites with
intercalations of recrystallized limestone of Santoniana age as well as the France Chert. The average thickness in the Yauricocha area is 400 m. 

Casapalca Red Beds 

The Casapalca red beds lay concordantly on the Celendín Formation with a gradational contact. It has been assigned an age
between upper Cretaceous and lower Tertiary, but because of the absence of fossils its age cannot be precisely determined. It is composed primarily of calcareous red lutites, pure limestones, and reddish arenaceous limestone. Lava flows and
tuffaceous beds have been occasionally reported. 
 Intrusions 

Major intrusive activity occurred during the Miocene period. Radiometric K-Ar ages derived
from biotite samples taken in the Yauricocha and Éxito areas yield an average age of 6.9 Ma. The intrusives cut the sediments at a steep angle and exhibit sharp contacts, as well as a tendency to follow the regional strike and dip of the
structure. The intrusions vary in size from bodies of several hundred square meters to large masses that cover several square kilometers. Small intrusive compositions vary from granodiorite to quartz monzonite at margins and are typically
porphyritic with phenocrysts of plagioclase, orthoclase, biotite, hornblende and quartz. The plagioclases vary from orthoclase to andesine. 

Metamorphism 

All of the intrusions have produced metamorphic aureoles in the surrounding rocks. The extent, type, and grade of metamorphism vary
greatly with the type of rock intruded. The rocks have been altered to quartzites, hornfelsed lutites, and recrystallized limestones. Locally, the intrusions have produced 

  
  

					
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narrow zones of skarn of variable width. These skarn zones contain epidote, zoisite, tremolite, wollastonite, phlogopite, garnet, chlorite and diopside. 

Structure 

The Andean Cordillera uplift has dominated the structural evolution of the Yauricocha area through episodes of folding, fracturing,
and brecciation associated with the local structure having a general NW-SE strike principally expressed as follows: 

Folds 
 Various folds
make up the principal structures of the Yauricocha area. The Purísima Concepcíon anticline and the France Chert syncline occur in the Mina Central area, while the Cachi-Cachi anticline and Huamanrripa al Norte syncline and the Quimpara
syncline occur immediately to the south of Lake Pumacocha, north of Mina San Valentíne. 
 The Purísima
Concepcíon anticline, located southwest of the Yauricocha Mine in the Mina Central area, is well defined by a tightly folded basaltic sill 17 m thick. The axial trace trends approximately N50W with a gentle SE plunge of 20°. In the axis
of this anticline and towards Flanco East, the basaltic sill contains occurrences of disseminated gold in horizontal, silicic breccias. 

The France Chert syncline is a tight fold, also in the Mina Central area, but located northeast of the mine. Its axial trace changes
trend from N35W in the south to N65W in the north and has a SE40 plunge. The Yauricocha mineral deposit is found in the west flank of this fold and in banded limestones without subsidiary folding. 

In the Mina Central area, the NW strike of the folded sediments was rotated about 30° clockwise horizontally. This distortion can
be attributed to a basement shear fault that strikes NE-SW. The axial trace of the Cachi-Cachi-Prometida anticline strikes approximately N80W to N70W and its flanks dip to the north (Prometida) and south
(Cachi-Cachi) with a plunge to the east. Mineralization in the vicinity of the major North Intrusive located 2 km north of Mina Central is associated with this fold. 

The Quimpara syncline, located 1 km south of the discharge stream of Pumacocha Lake, has an axial trace that strikes N45W. Its east
flank is in contact with the intrusive at an angle dipping 70° to 75°W. Its west flank dips about 80°E conformably with beds of dark gray limestone that are recrystallized in the vicinity of the contact. Garnets, magnetite and copper
oxides occur in the same contact. 
 Fractures 

Diverse systems of fractures were developed during episodes of strong deformation. 

Folding occurred before and/or contemporaneous with intrusive emplacement. Primary fractures developed during folding along with
longitudinal faults parallel to the regional strike of the stratigraphy. These faults combined to form the Yauricocha Fault along the Jumasha limestone- Celendín lutite contact. The Yauricocha Fault extends a great distance from the SE of the
Ipillo mine continuing to the north behind Huamanrripa hill, parallel to and along Silacocha Lake. 
 After the intrusions were
emplaced, the strike of the folds NW of the mine was rotated by strong horizontal forces some 30°. As a result of this rotation, three sets of shears and joints were developed: NW-SE, NE-SW and E-W with dips of 50-80° NE or SW first, then 60-85° SE or NW, and finally N
or S with nearly vertical dips. This set of fractures forms fault blocks that cut the dominant 

  
  

					
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lithologies of the area and join with the Yauricocha Fault. The Yauricocha Fault is the most significant fault in the mining district and is a strong control on mineralization. 

Contacts 
 The
contacts of the Jumasha limestone-Celendín lutite, the Jumasha limestone-intrusions, and Celendín lutite-intrusions had major influence on the development of folds, fractures and ascension of mineralizing fluids. 

Breccias 
 The
breccias that occur in the Yauricocha area typically follow structural lineaments and occur predominantly in the limestones associated with contacts and intersections of fractures. They form tabular and chimney-like bodies. Tectonic breccias,
forming near intrusions or contacts, constitute some of the principal receptive structures for mineralization. 

  
  

					
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 Source: Sierra Metals, 2015 

Figure 7-2: Geologic Map of Yauricocha Mine Area 

  
  

					
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	7.3	Significant Mineralized Zones 

 Mineralization at the Yauricocha Mine is
represented by variably oxidized portions of a multiple-phase polymetallic system with at least two stages of mineralization, demonstrated by sulfide veins cutting brecciated polymetallic sulfide mineralized bodies. The mineralized bodies and
quartz-sulfide veins appear to be intimately related and form a very important structural/mineralogical assemblage in the Yauricocha mineral deposit. Comments herein made regarding the characteristics of the Yauricocha district apply directly to the
Minera Corona Yauricocha Mine. 
 The mineralized zones defined at Yauricocha are shown within the property boundary in Figure 7-3. All parts of the property with historic exploration or production activity are in the current area of operations. This area is nearly centered within the concession boundary and there is both space and
potential to expand the resources and the operation both directions along the strike of the Yauricocha Fault. 
 Minera Corona
has developed local classifications describing milling and metallurgical characteristics of mineralization at Yauricocha: polymetallic, oxide, and copper. “Polymetallic” mineralization is represented by
Pb-Zn sulfides, often with significant Ag values, “oxide” refers to mineralization that predominantly comprises oxidized sulfides and resulting supergene oxides, hydroxides and/or carbonates (often
with anomalous Au), and the “copper” classification is represented by high values of Cu with little attendant Pb-Zn. 

SRK notes that the previous Gustavson technical report provides an excellent and very detailed list of the individual mineralized
bodies as defined by the mine geology department, which SRK will not reprint here. The general layout of the southern mineralized areas (Mina Central, Mascota, Esperanza) as well as the northern mineralized area (Cachi-Cachi) is shown in Figure 7-3 and Figure 7-4. The overwhelming majority of the mineral resource and reserve has come from the areas noted on these figures, although there are many smaller bodies (some
of which are shown in red) that are important for production and are included in the mineral resource estimation, despite representing a comparably minor percentage of the total resource and reserve base. SRK notes that there are additional smaller
areas, which have no formal modeling or drilling, but have been mined in the past or are in production as areas of opportunity, generally discovered during development or active mining. 

  
  

					
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 Source: SRK, 2016 

Figure 7-3: Southern Mineralized Areas 

  
  

					
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 Source: SRK, 2016 

Figure 7-4: Northern Mineralized Areas 

 

	7.3.1	Mineralogy 

 The mineralogy for the Yauricocha Mine is presented below: 

Ore Mineralogy 
  

	 	•	 	 Pyrite FeS2 - Generally of friable texture to porous and
massive bodies; five types have been distinguished that represent five different stages of formation. Abbreviated Py in [Table 7-1through Table 7-5].

	 	•	 	 Marcasite FeS2 - Three types of marcasite have been
identified, which are associated with chalcopyrite, galena and sphalerite. 

	 	•	 	 Enargite Cu3AsS4 - This is the principal copper mineral in the deposit, which occurs in irregular fragments and large masses together with quartz and pyrite. Abbreviated En in in [Table 7-1through Table 7-5]. 

	 	•	 	 Chalcopyrite CuFeS2 - After enargite, chalcopyrite is the
most abundant copper mineral. It occurs as replacement fragments of limestone breccia together with friable quartz and pyrite, or filling small cavities. It is associated with native gold and electrum. The amount of this mineral increases in the
lower levels of the mine. Abbreviated Cp in in [Table 7-1through Table 7-5]. 

  
  

					
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	 	•	 	 Bornite
Cu5FeS4 - Bornite is invariably associated with chalcopyrite and to a lesser degree with enargite. Abbreviated Bn in in [Table 7-1through Table 7-5]. 

	 	•	 	 Covellite and Idaite CuS and Cu5FeS6—These two minerals have been observed within bornite, forming as small laminar intergrowths. Abbreviated Cv and Id respectively in in [Table
7-1through Table 7-5]. 

	 	•	 	 Tetrahedrite and Tennantite (Cu,Fe)12Sb4S13 and Cu12As4S13 - Small crystals of these minerals are abundant in the periphery of the enargite bodies, as in the mineralized bodies on the outer margins of the Central and Sur Medio intrusions. Abbreviated as
Tet and Ten respectively in in [Table 7-1through Table 7-5]. 

	 	•	 	 Galena PbS - This mineral is found disseminated and in skarnified limestone; at Yauricocha it is typically associated
with chalcopyrite and sphalerite. 

	 	•	 	 Sphalerite (Zn,Fe)S - Sphalerite is the most abundant mineral in the Yauricocha deposit and is associated with clay,
pyrite and galena, mainly in the peripheries of the mineralized bodies. Abbreviated Spl in in [Table 7-1through Table 7-5]. 

	 	•	 	 Geocronite (Pb14(Sb, As)6 S23) - This mineral is found in the upper levels of the mine associated with galena, sphalerite, tetrahedrite and quartz filling fractures and cleavages in sphalerite. Abbreviated Geo in in
[Table 7-1through Table 7-5]. 

Gangue Mineralogy 
  

	 	•	 	 Quartz SiO2 - Quartz is the most abundant gangue mineral in
the mineralized bodies. Abbreviated Qtz in in [Table 7-1through Table 7-5]. 

	 	•	 	 Hematite (var. Specularite) and Siderite Fe2O3 and FeCO3 - These minerals are associated with limestone and intrusive veins in the Éxito and Ipillo mines. Abbreviated Hem or Sid
respectively in in [Table 7-1through Table 7-5]. 

	 	•	 	 Calcite CaCO3 - Calcite is found in veinlets associated with
quartz and sphalerite. Abbreviated Cal in in [Table 7-1through Table 7-5]. 

	 	•	 	 Fluorite CaF2 - Fluorite was deposited contemporaneously with
galena and sphalerite within the lead-zinc mineralized bodies. Abbreviated Fl in in Table 7-1through Table 7-5. 

	 	•	 	 Barite BaSO4 - Barite occurs in the periphery of the
lead-zinc orebodies in zones of lower temperature. Abbreviated Bar in in [Table 7-1through Table 7-5]. 

	 	•	 	 Magnetite
Fe3O4 - This mineral is found primarily in the Cuye and Catas mineralized bodies, and rarely in Antacaca, and in deep levels (Levels 770
to 1020). Abbreviated Mag in in [Table 7-1through Table 7-5]. 

  
  

					
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 Table 7-1: Mina Central Bodies 

 

													
	  

Name
  
	 	 Type

 
	  	 Mineralogy (Gangue)

 
	 	 Classification

 
	 	 Comment

 
	 	  	 	 
	A Deposit	 	Deposit - Tabular	  	Cp-(Py)	 	Not classified	 	 	 	 	 	
	Amoeba	 	Deposit	  	Spl-Gal-Cp-En-Cv-(Py)
	 	Not classified	 	 	 	 	 	
	Antacaca	 	Deposit	  	Spl-Gal-Cp-En-(Py)	 	Polymetallic, Copper	 	 	 	 	 	
	Antacaca West	 	Deposit	  	Cp-En-(Py)	 	Polymetallic	 	Part of the Antacaca Deposit	 	 	 	
	Butz	 	Deposit - Breccia	  	Spl-Gal-Cp-En-(Py-Qtz-FI)	 	Polymetallic	 	 	 	 	 	
	Catas	 	Deposit - Breccia	  	Spl-Gal-Cp-En-Bn-(Mag-Hem-Py)	 	Polymetallic	 	Anomalous Au	 	 	 	
	Contacto Occidental	 	Deposit	  	Spl-Gal-(Py-Qtz-Fl)	 	Oxide	 	Argentiferous galena	 	 	 	
	Contacto Oriental	 	Deposit - Breccia	  	Spl-Gal-Cp-En-(Py)	 	Polymetallic	 	 	 	 	 	
	Contacto Sur Medio	 	Deposit - Breccia	  	 Spl-Gal-Tet-Geo-(Py-Cal-

Rhodochrosite-
Real-Orp-Gar-Ser)
	 	Polymetallic	 	Argentiferous galena	 	 	 	
	Cuye	 	Deposit	  	 Spl-Cp-En-Tet-(Py-Mag-
 Hem)
	 	Copper, Polymetallic	 	Vertically zoned, possible Au	 	 	 	
	Cuye Norte	 	Deposit	  	 Spl-Gal-(Py-Qtz-FI-Pyro-

Gyp-Jaro-Cerr)
	 	Not classified	 	 	 	 	 	
	  

El Norte
  
	 	  
 Deposit
	  	  
 Cp-En-Cv-Bn-(Py-Hem)
	 	  
 Not classified
	 	  
 Zonation
	 	 	 	
	Erika	 	Deposit - Breccia	  	Spl-Gal-(Py-FI)	 	Not classified	 	Argentiferous galena	 	 	 	
	Felicidad	 	Deposit	  	En-(Py-Qtz)	 	Not classified	 	 	 	 	 	
	Gallito	 	Deposit - Breccia	  	 Spl-Gal-En-Bn-Tet-(Py-
 Calcsilicates)
	 	Polymetallic	 	 	 	 	 	
	Huamannripa	 	Deposit - Breccia	  	Spl-Gal-(Py)	 	Not classified	 	 	 	 	 	
	Juliana I	 	Deposit - Breccia	  	Spl-Gal-(Py)	 	Polymetallic	 	 	 	 	 	
	Juliana II	 	Deposit - Breccia	  	Spl-Gal-Cp-En-(Py)	 	Polymetallic	 	Argentiferous galena	 	 	 	
	Jacqueline	 	Deposit -	  	 	 	Not classified	 	 	 	 	 	
	Katty	 	Deposit	  	Spl-Gal-(Py-Qtz-FI)	 	High grade oxide	 	 	 	 	 	
	Mascota	 	Deposit	  	(Hem)	 	Oxide	 	Principal oxide body	 	 	 	
	Milagrosa	 	Deposit	  	Spl-Gal-Cp-En-(Py)	 	Polymetallic	 	 	 	 	 	
	Olguita	 	Deposit	  	Spl-Gal-Cp-(Py)	 	Not classified	 	Argentiferous galena, extension of Catas but with different mineralogy	 	 	 	
	Pozo Rico	 	Deposit	  	Cp-En	 	Polymetallic, High Grade Oxide	 	Anomalous Au, oxidized portion of the Catas sulfide deposit	 	 	 	
	Sasacaca	 	Deposit	  	Spl-Gal-Cp-En-(Py)	 	Not classified	 	 	 	 	 	
	Violeta	 	Deposit - Breccia	  	Spl-Gal-Cp-(Py-Cerr-Jaro)	 	Not classified	 	 	 	 	 	
	Violeta 329	 	Deposit - Breccia	  	Spl-Gal-(Py-Rhodochrosite)	 	High Grade Oxide	 	Argentiferous galena	 	 	 	
	Viviana	 	Deposit - Breccia	  	Spl-Gal-Tet-(Py-CO3)	 	Polymetallic	 	 	 	 	 	
	Cuye Vein	 	Vein - Breccia	  	Spl-Gal-(Py)	 	Not classified	 	Argentiferous galena, partially brecciated	 	 	 	
	Juliana Vein	 	Vein	  	 Spl-Gal-(Py-Mar-Qtz-FI-
 CaMnC03)
	 	Not classified	 	 Vein-like interior, massive

mineralization at contact
	 	 	 	
	Marita	 	Vein	  	Spl-Gal-(Py)	 	Not classified	 	Argentiferous galena	 	 	 	
	Vein A	 	Vein	  	Spl-Gal-(Py)	 	Not classified	 	 	 	 	 	
	Vein C	 	Vein	  	‘sulfides and oxides”	 	Not classified	 	 	 	 	 	
	Vein Cuye Sur	 	Vein - Breccia	  	Spl-Gal-En-(Py)	 	Not classified	 	 	 	 	 	
	Vein D	 	Vein	  	Spl-Gal-Cp-(Py)	 	Not classified	 	 	 	 	 	
	Vein F	 	Vein	  	Spl-Gal-Cp-(Py)	 	Not classified	 	 	 	 	 	
	Vein G	 	Vein - Breccia	  	Spl-Gal-(Py)	 	Not classified	 	 	 	 	 	
	Vein Mascota	 	Vein - Breccia	  	Spl-Gal-(Py-rhodochrosite)	 	Not classified	 	 	 	 	 	

 Source: Sierra Metals, 2015 

  
  

					
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 Table 7-2: Cachi-Cachi Mina Mineralized Bodies 

 

													
	  

Name
  
	 	 Type

 
	  	 Mineralogy (Gangue)

 
	 	 Classification

 
	 	 Comment

 
	 	  	 	 
	Angelita	 	Deposit	  	Spl-Gal-(Py)	 	Polymetallic	 	 	 	 	 	
	Caprichosa	 	Deposit - Breccia	  	Spl-Gal-(Py)	 	Not classified	 	 	 	 	 	
	Fanny	 	Deposit - Replacement	  	Gal-(Jaro-Hem-Cerr)	 	Polymetallic	 	Remnant galena	 	 	 	
	Privatzadora	 	Deposit - Breccia	  	Spl-Gal-(Py)	 	Polymetallic	 	 	 	 	 	
	Raquellita	 	Deposit - Breccia	  	Spl-Gal-(Py)	 	Polymetallic	 	 	 	 	 	
	Raquellita II	 	Deposit - Breccia	  	Spl-Gal-(Py-Bar-Chalcedony)	 	Polymetallic	 	 	 	 	 	
	Rossy	 	Deposit - Breccia	  	Spl-Gal-(Py-Qtz)	 	Not classified	 	 	 	 	 	
	Carmencita Vein	 	Vein - Breccia	  	Spl-Gal-Cp-(Py)	 	Not classified	 	 	 	 	 	
	Dianita Vein	 	Vein	  	Spl-Gal-Cp-(Py)	 	Not classified	 	 	 	 	 	
	Esperanza Vein	 	Vein	  	Spl-Gal-(Py-Chalcedony)	 	Not classified	 	 	 	 	 	
	Tatiana	 	Vein	  	Spl-Gal-(Py)	 	Not classified	 	 	 	 	 	
	Elissa	 	Deposit - Replacement	  	Spl-Gal-(Py-Calcite-Rhodochrosite)	 	Polymetallic	 	 	 	 	 	
	Virginia Vein	 	Vein	  	 	 	Not classified	 	 	 	 	 	

 Source: Sierra Metals, 2015 

Table 7-3: Exito Mina Concessions 

 

													
	  

Name
  
	 	 Type

 
	  	 Mineralogy (Gangue)

 
	 	 Classification

 
	 	 	 	 	 	 
	Evita Deposit	 	Deposit - Breccia	  	Spl-Gal-(Py-Qtz-Garnet-Epi-Hem-Chl)	 	Not classified	 		 		 	
	Isabel	 	Deposit - Breccia	  	Spl-Gal – (Py-Qtz-Garnet)	 	Not classified	 		 		 	
	Evita Vein	 	Vein	  	Spl-Gal-(Py-Qtz-Garnet-Epi)	 	Not classified	 		 		 	
	Santa Isabel Vein	 	Vein	  	Spl-Gal-Cp-(Py-Qtz)	 	Not classified	 		 		 	

 Source: Sierra Metals, 2015 

Table 7-4: Ipillo Mina Concessions 

 

													
	  

Name
  
	 	 Type  

 
	  	 Mineralogy (Gangue)

 
	 	 Classification

 
	 	 Comments

 
	 	  	 	 
	Poggi	 	Vein	  	Spl-Gal-Cp-(Py-Qtz-Hem)
	 	Not classified	 	Hematite as specularite, anomalous Au	 	 	 	
	Poggi II	 	Vein	  	Spl-Gal-Cp-(Py-Qtz-Hem)
	 	Polymetallic	 	Anomalous Au	 	 	 	
	Ponderosa Vein	 	Vein	  	Spl-Gal-Cp-(Qtz, Hem)	 	Not classified	 	Anomalous Au	 	 	 	
	Ramal Coquelet	 	Vein	  	Spl-Gal-Cp-(Py-Hem)	 	Not classified	 	 	 	 	 	

 Source: Sierra Metals, 2015 

Table 7-5: Victoria Mina Concessions 

 

													
	  

Name
  
	 	 Type  

 
	  	 Mineralogy (Gangue)

 
	 	 Classification

 
	 	 	 	 	 	 
	La Grande Vein	 	Vein	  	Spl-Gal-En-(Py-Qtz-Rhodochrosite)
	 	Not classified	 		 		 	
	Victoria 0505 Vein	 	Vein	  	Spl-Gal-Cp-En-Cv-Ten-(Py-Qtz-Real-Orp)	 	Also listed as Veta 0505; Copper	 		 		 	
	Victoria 8651-E Vein	 	Vein	  	Spl-Gal-Cp-En-Tet-(Py-Qtz-Hem-Rhodonite)	 	Not classified	 		 		 	

 Source: Sierra Metals, 2015 

  
  

					
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	8	Deposit Type 

 Section 8.1 of this Report has been excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of this report; any
changes to the text have been indicated by the use of [brackets]. 
  

	8.1	Mineral Deposit 

 Mineralization in the Yauricocha district is spatially and
genetically related to the Yauricocha stock, a composite intrusive body of granodioritic to quartz monzonitic composition that has been radiometrically dated at late Miocene (approximately 7.5 million years old) (Giletti and Day, 1968). The
stock intrudes tightly folded beds of the late Cretaceous Jumasha and Celendín Formations and the overlying Casapalca Formation (latest Cretaceous and Paleocene?). Mineralized bodies are dominantly high-temperature polymetallic sulfide bodies
that replaced limestone. Metal-bearing solutions of the Yauricocha magmatic-hydrothermal system were highly reactive and intensely attacked the carbonate wall rock of the Jumasha and Celendín Formations, producing the channels in which
sulfides were deposited. Base and precious metals were largely precipitated within several hundred meters of the stock (Lacy, 1949; Thompson, 1960). Skarn is developed adjacent to the stock but does not host appreciable amounts of economic
mineralization (Alverez and Noble, 1988). Mineralization typically exhibits both vertical and radial zoning and there is a pronounced district zoning, with an inner core of enargite (the principal copper mineral) giving way outward to an
enargite-chalcopyrite-bornite zone, which in turn is succeeded to the west by zones characterized by sphalerite, galena and silver (Lacy, 1949; Thompson, 1960). 

The mineralized zones at Yauricocha are partially to completely oxidized and extend from the surface to below level 1220. Supergene
enrichment is closely related to oxidation distribution. Supergene covellite, chalcocite and digenite are found where the sulfide minerals are in contact with oxidized areas. 

Mineralization at Yauricocha very closely resembles that typified by polymetallic Ag-Au
deposits, which comprise quartz-sulfide-carbonate fissure vein equivalents of quartz-sulfide and carbonate-base metal deposits. These deposits are best developed in Central and South America, where they have been mined since Inca times as important
Ag sources. Quartz and pyrite of the quartz-sulfide Au +/- Cu mineralization suite typically occur early in the paragenetic sequence; carbonate-hosted mineralization and some polymetallic Ag-Au veins evolved
at a later stage. Predominant controls on mineralization are structural, where dilatational structures, voids resulting from wall rock dissolution, and/or rheologic dissimilarities at contacts between units serve as enhanced fluid pathways for
mineralizing solutions. 
  

	8.2	Geological Model 

 The geological model used for the Yauricocha deposit has been
developed and verified through extensive exploration and mining activities during more than 50 years of mining. SRK is of the opinion that the geological model is appropriate and will continue to serve the company going forward. 

  
  

					
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	9	Exploration 

 Section 9 of this Report has been excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of this report; any
changes to the text have been indicated by the use of [brackets]. 
 The Yauricocha mining district contains multiple
polymetallic deposits represented by skarn and replacement bodies and intrusion-hosted veins related to Miocene-era magmatism. Mineralization is strongly structurally-controlled with the dominant features
being the Yauricocha Fault and the contact between the Jumasha limestones and the Celendín Formation (especially the France Chert). Exploration is being conducted to expand the mineralized zones currently being exploited as well as on
prospects in the vicinity of the operations. 
 Exploration in or close to the mining operations is of higher priority since it
is performed under existing governmental and community permits. Any exploration success can be quickly incorporated into defined resources and reserves and thus the business plan. 

Further and more detailed descriptions of these exploration targets and the results obtained from exploration efforts are described in
the 2015 Gustavson technical report. 
  

	9.1	Relevant Exploration Work 

 Exploration in the district has been ongoing and
generative methods have been successful in delineating a number of targets (described above) for future drilling or exploration development. This work has included detailed geological mapping of the areas, surface rock chip sampling, and limited
trench/channel sampling. 
 The most recent near-mine exploration work has been focused on drilling of the newly-discovered Esperanza
mineralized zone. This zone was discovered through drilling on suspected extensions of the Mascota and Cuye mineralized zones, but has evolved into its own discrete area. 
  

	9.2	Sampling Methods and Sample Quality 

 Sampling of exploration targets generally
features rock chip or hand samples taken by geologists from surface outcrops using rock hammers and chisels. These samples are point samples and should be considered indicative of mineralization rather than representative of any volume or tonnage.

 In cases where channel or trench samples are collected, these are done so using pickaxes, shovels, chisels, hammers, and other hand
tools, and are likely more representative of the mineralization. 
 Regardless, the results are used as guides for future drilling
programs, rather than resource estimation. 
  

	9.3	Significant Results and Interpretation 

 Significant results from the exploration
efforts have defined a series of areas that may be prospective for future drilling or sampling, including the following: Yauricocha Sur, San Juan & San Antonio, Exito 

  
  

					
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NE, Kilkaska, Ipillo, Falla Yauricocha, Cerros Uchcapri, Leonpitacana, and Carhuanisho, Yauricocha Este, Yauricocha Oeste, and Tintircullpa Yauricocha. Priority is given to near-mine
opportunities, such as the intersection of the Cachi-Cachi structural trend and the Yauricocha fault, which continues to yield mineralized orebodies such as the newly-discovered Esperanza area. 

  
  

					
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	10	Drilling and Channel Sampling 

 Section 10.1 of this Report has been
excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of
this report; any changes to the text have been indicated by the use of [brackets]. 
  

	10.1	Type and Extent 

 Minera Corona’s Geology Department owns and operates
three small hydraulic drills, the reach of which varies between 80 m and 150 m with core diameter is 3.5 cm. A fourth air drill has a reach of 60 m and the core diameter is 2.25 cm. Additionally, the department owns two jackleg drills fitted with an
extension bar reaching up to 25 m. These machines are utilized to delineate mineralization at intervals of 10 m between holes. The company utilizes the services of a drilling contractor for deeper drillholes reaching up to 474 m in length. Core
diameters are HQ and NQ. Exploration (establishing continuity of mineralization) and development (reserve and production definition) drilling conducted by Corona from 2002 to 2011 is detailed in Table 10-1.

 Table 10-1: Yauricocha Exploration and Development Drilling 

 

																					
	Year  	  	Exploration
Drifting (m)	 	  	 Development

and Infill (m)
	 	  	 Exploration and

Development (m)
	 	  	 Drilling (DDH)

by Company (m)
	 	  	 Drilling (DDH) by

Contractor (m)
	 
	
2002  
	  	 	2,726	 	  	 	1,160	 	  	 	3,886	 	  	 	1,887	 	  			 
	
2003  
	  	 	3,307	 	  	 	1,648	 	  	 	4,955	 	  	 	3,415	 	  			 
	
2004  
	  	 	1,778	 	  	 	2,245	 	  	 	4,023	 	  	 	2,970	 	  			 
	
2005  
	  	 	2,004	 	  	 	2,030	 	  	 	4,034	 	  	 	3,160	 	  	 	8,043	 
	
2006  
	  	 	788	 	  	 	1,998	 	  	 	2,786	 	  	 	2,999	 	  	 	10,195	 
	
2007  
	  	 	826	 	  	 	1,640	 	  	 	2,466	 	  	 	4,751	 	  	 	6,196	 
	
2008  
	  	 	796	 	  	 	1,584	 	  	 	2,380	 	  	 	5,379	 	  	 	13,445	 
	
2009  
	  	 	872	 	  	 	1,040	 	  	 	1,912	 	  	 	4,955	 	  	 	13,579	 
	
2010  
	  	 	454	 	  	 	632	 	  	 	1,086	 	  	 	4,615	 	  	 	3,527	 
	
2011  
	  	 	684	 	  	 	927	 	  	 	1,611	 	  	 	5,195	 	  	 	9,071	 
	
2012  
	  	 	921	 	  	 	609	 	  	 	1,530	 	  	 	11,532	 	  	 	31,257	 
	
2013  
	  	 	1730	 	  	 	839	 	  	 	2,569	 	  	 	10,653	 	  	 	16,781	 
	
2014  
	  	 	680	 	  	 	331	 	  	 	1,011	 	  	 	9,357	 	  	 	30,455	 
	
2015  
	  	 	184	 	  	 	158	 	  	 	342	 	  	 	9,735	 	  	 	33,214	 

 Source: Sierra Metals, 2016 

In addition to the drilling at Yauricocha, extensive channel sampling of the mineralized bodies is completed for grade control and
development purposes. These data points are utilized in mineral resource estimation as well. The general distribution of drilling and channel samples is shown in Figure 10-1 and Figure 10-2, respectively. 

  
  

					
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 Source: SRK 

Figure 10-1: Extent of Drilling 

  
  

					
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 Source: SRK 

Figure 10-2: Extent of Channel Sampling 

  
  

					
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	10.2	Procedures 

  

	10.2.1	Drilling 

 Modern drill collar locations are surveyed underground by the mine
survey team by total station. Where these types of surveys have been completed, collar locations are assumed to be accurate to less than 0.1 m. Historic drilling was not surveyed to the same level of detail, potentially decreasing the accuracy of
the collar positions in space compared to modern holes. This effect would potentially decrease the accuracy of the geological model and resource estimation in these areas, but SRK notes that the majority of areas supported by this historic drilling
has already been mined. 
 While drill holes are currently surveyed down-hole for all new exploration drilling, this has not always
been the case. Historic drill holes as well as more recent holes that were not deemed to be long enough or otherwise designated non-critical for surveying were not surveyed down hole and the collar azimuth and
dip serve as the only point of reference for the hole. SRK notes that 139 holes now have down-hole surveys, and that most of these are in the new Esperanza area. While the nominal spacing of the survey has been 50 m, a number of the newer holes have
been surveyed every 5m to discern any potential risk of deviation affecting the accuracy of the interpretation. 
 A study of the
deviation for the 139 holes which have currently been surveyed showed that average deviations of the total surveyed distance down-hole are only -1.09° bearing and 0.18° inclination. This would indicate
that the lack of down-hole survey information is not necessarily a major risk at Yauricocha, although SRK recommends continuing the practice of surveys and nominal intervals of 25 to 50 m to ensure quality of information. 

SRK visited the core logging and sampling facilities at the mine site in early 2015, and notes that the logging facility is clean and
sufficiently equipped. Logging is conducted on paper and transferred to excel worksheets. Details recorded include geotechnical information such as recovery and RQD, geologic information (lithology, alteration, mineralization, etc.), sampling
information, as well as other parameters, which may not get incorporated in to the digital database. Samples are selected by the geologist and placed in numbered plastic bags, along with a bar-coded sample
ticket for tracking. Bags are tied tightly to prevent contamination during handling and transport. 
 Drill recovery is generally over
97%, and there appears to be no relationship between grade distribution and recovery. 
 Drill holes are split by hydraulic or manual
methods where core is broken or poorly indurated, and is sawn by rotary diamond saw blade where the core is competent. In both scenarios, care is taken to ensure that the sample is collected in a consistent and representative manner. SRK notes that
sampling is only conducted in segments of core that are noted as having obvious mineralization during logging. This results in a number of occurrences where the first sample in a drillhole may be a very high grade one, or that there may be multiple
high grade samples with un-sampled intervals in between. These intervals have been considered as un-mineralized based on the assumptions made for the sampling or lack
thereof, and are flagged with a lowest-limit-of-detection value. 
  

	10.2.2	Channel Sampling 

 Channel samples are collected underground by geology staff.
Samples are collected via hammer and chisel, with rock chips collected on a tarp for each sample, and transferred to sample bags. Typical sample intervals are 1 m along the ribs of crosscuts within stopes for the large mineralized

  
  

					
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zones or across the back of the stopes for the small mineralized zones. The samples are placed in a plastic bag labeled with a permanent marker on the outside. A sample ticket displaying the
number and bar code is inserted in the bag. The bags are tied to prevent outside contamination during their handling and transportation to the assay lab. 

SRK notes that samples are not weighed to ensure representativeness, but geologists are involved in the channel sampling efforts to
direct samplers to collect samples, which visually are representative of the mineralization. 
  

	10.3	Interpretation and Relevant Results 

 Drilling and sampling results are interpreted
by Minera Corona site geologists, and reviewed in cross sections and plan/level maps. The relevant results are those featuring significant intervals of geologic or economic interest, which are follow up on by continued drilling or exploration
development. 

  
  

					
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	11	Sample Preparation, Analysis and Security 

  

	11.1	Security Measures 

 Core and channel sample material is stored at the mine site in
a secure building, and the boxes are well labeled and organized. The entire mine site is access-controlled. Samples submitted to third-party laboratories are transported by mine staff to the preparation laboratory in Lima. 

The channel samples are processed at Minera Corona’s Chumpe laboratory located in the Concentrator Plant under the supervision of
company personnel. 
 The on-site laboratory currently is not independently certified. Channel
sample locations are surveyed in the underground by mine survey staff. Sample start and end point locations are assumed to be accurate to centimeter accuracy. 
  

	11.2	Sample Preparation for Analysis 

 Samples are generally prepared by a primary and
secondary laboratory: 
  

	 	•	 	 Primary: Chumpe Laboratory –Yauricocha Mine Site; Non-ISO Certified

  

	 	•	 	 Secondary: ALS Minerals – Lima; ISO 9001:2008 Certified 

The Chumpe laboratory prepares the majority of samples, except in cases where checks on the method of preparation are desired and ALS
conducts sample prep on duplicate check assays. 
  

	11.2.1	Chumpe Laboratory 

 The majority of historic core samples, and effectively all
channel samples have been prepared and analyzed by the Chumpe laboratory. Detailed procedures have been documented by Minera Corona and are summarized below (in italics). 

Sample Reception 

For core samples, bagged samples are transported by the internal transport service from the core logging facility and are received at
the reception counter at the laboratory entrance. A log entry is made to record the sample numbers being received. 
 Channel
samples are collected in the field by the geology staff and transported by the internal transport service from the Yauricocha Mine or Klepetko Adit and are received at the reception counter at the laboratory entrance. A log entry is made to record
the number of samples being received. These samples are between 1.5 and 3.0 kg; are damp and received in plastic bags. 
 Preparation

 Equipment used in sample preparation includes: 

 

	 	•	 	 1 – Primary Jaw Crusher, Make – Denver, Jaw capacity – 5” x 6”, Output – 70%,minus  1⁄4” 

  

	 	•	 	 1 – Secondary Jaw Crusher, Make – FIMA, Jaw capacity – 5” x 6”, Output –80%, minus 10
mesh 

  

	 	•	 	 1 – Pneumatic Pulverizer, Make – Tmandina 

 

	 	•	 	 2 – Sample Dryers, with termocupla and temperature regulator 

 

	 	•	 	 1 –  1⁄2”
Stainless steel splitter, Make – Jones 

  
  

					
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	 	•	 	 Five point air nozzles 

 

	 	•	 	 Stainless steel trays, 225x135x65 mm 

 

	 	•	 	 Stainless steel trays, 300x240x60 mm 

 

	 	•	 	 Plastic or impermeable cloth 

 

	 	•	 	 2” brushes 

Preparation Procedure 

Prior to beginning sample preparation, verify that: 
  

	 	•	 	 The equipment is clean and free from contamination. 

 

	 	•	 	 The crushers and pulverizers are functioning correctly. 

 

	 	•	 	 Review the numbering of the sample bags that all bags are unique and identifiable. 

The procedure to reduce the sample to a pulp of 150 gm, at 85% passing 200 mesh is: 

 

	 	•	 	 Transfer the sample to the appropriate tray, depending on the volume of the sample, noting the tray number on the
sample ticket. 

  

	 	•	 	 Insert a blank sample (silica or quartz) in each batch. 

 

	 	•	 	 Place in the Sample Dryer at a temperature of 115oC. 

 

	 	•	 	 Code the sample envelopes with the information from the sampling ticket noting the sample code, the tray number, date
and the quantity of samples requested on the sample ticket. 

  

	 	•	 	 Once dry, remove and place the tray on the work table to cool. 

 

	 	•	 	 Pass 100% of the sample through the Primary Jaw Crusher when particle sizes exceed 1 inch, the resulting product
70% passing  1⁄4 inch. 

  

	 	•	 	 Pass the sample through the secondary crusher, the resulting product 80% passing 10 mesh. 

 

	 	•	 	 Clean all equipment after crushing of each sample. 

 

	 	•	 	 Select a random sample to carry out the control of the crushing to 10 mesh, noting the weights in the log along with
the sample code for the sample in question. 

  

	 	•	 	 Empty the sample into the Jones Splitter and split to obtain an approximate 150 g sample. Clean the splitter after
each sample with the air nozzle. 

  

	 	•	 	 Put the numbered envelopes in the tray for the corresponding sample. 

 

	 	•	 	 Then pass the sample in the ring cavity of the pneumatic pulverizer until achieving a size fraction of 85% minus 200
mesh. This is accomplished by setting the time on the pulverizer’s timer. Clean the cavities after each pulverization with the compressed air nozzle. 

 

	 	•	 	 Transfer the pulverized sample to the impermeable sample mat, homogenize and pour into the respective coded envelope.

  

	 	•	 	 As a part of this process, pass a random sample through a 200 mesh screen, noting the weights in the control log.

  

	 	•	 	 Clean all materials and the work area thoroughly. 

 

	11.2.2	ALS Minerals 

 Samples prepared at ALS Minerals exclusively include the complete
duplicate suite of samples supporting the Esperanza deposit as well as the most recent exploration drilling in selected other areas. ALS Minerals was selected as the laboratory for analysis of the Esperanza samples, in particular, to mitigate any
potential concerns arising from the use of a site laboratory. SRK has not 

  
  

					
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visited the ALS Minerals lab in Lima, but notes that ALS Minerals-Lima is an ISO-Certified preparation and analysis facilities and adheres to the most
stringent standards in the industry 
 The PREP-31 method of sample preparation was used for
all samples processed through ALS Minerals. This includes jaw crushing to 70% less than 2 mm, with a riffle split of 250 g, then pulverized using ring pulverizers to >85% passing 75 microns. Samples are tracked in barcoded envelopes throughout
the process using internal software tracking and control measures. 
  

	11.3	Sample Analysis 

 Samples are generally analyzed by a primary and secondary
laboratory: 
  

	 	•	 	 Primary: Chumpe Laboratory –Yauricocha Mine Site; Non-ISO Certified

	 	•	 	 Secondary: ALS Minerals – Lima; ISO 9001:2008 Certified 

The Chumpe Laboratory provides all analyses used in the drilling/sampling database supporting the mineral resource estimation, whereas
the ALS Laboratory is used exclusively as an independent check on the Chumpe laboratory. 
  

	11.3.1	Chumpe Laboratory 

 Core and channel samples from the mine are assayed utilizing
two procedures. Silver, lead, zinc, and copper are assayed by atomic absorption (AA) on an aqua regia digest. Gold is assayed by fire assay (FA) with an AA finish. Lower limits of detection are shown in Table
11-1, and are higher than those for ALS Minerals as Chumpe does not run the same multi-element analysis. 

Table 11-1: Chumpe LLOD’s 
  

							
	              	 	Element  	 	LLOD  	 	Unit        
	 	 Ag
	 	0.2  	 	ppm
	 	 Au
	 	0.01  	 	ppm
	 	 Cu
	 	0.02  	 	%
	 	 Pb
	 	0.02  	 	%
	 	 Zn
	 	0.02  	 	%

 Source: Sierra Metals, 2016 
  

	11.3.2	ALS Minerals Laboratory 

 The core samples analyzed at ALS are analyzed for a suite
of 35 elements using inductively coupled plasma atomic emission spectroscopy (ICP-AES) on an aqua-regia digest, generally used to discern trace levels of multiple elements. Samples are also analyzed using an
AA method on an aqua regia digest for accuracy at ore-grade ranges. Au is analyzed using FA (gravimetric finish) with an AA finish. 

Other analyses include total sulfur via Leco furnace and fluorine via KOH fusion and ion selective electrode. 

Lower limits of detection for the critical elements are shown in Table 11-2. 

  
  

					
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 Table 11-2: ALS Minerals LLOD’s 

 

							
	              	 	Element  	 	LLOD  	 	Unit  
	 	 Ag
	 	0.2  	 	ppm
	 	 Au
	 	0.005  	 	ppm
	 	 Cu
	 	0.001  	 	%
	 	 Pb
	 	0.001  	 	%
	 	 Zn
	 	0.001  	 	%

 Source: Sierra Metals, 2016 
  

	11.4	Quality Assurance/Quality Control Procedures 

 Section 11.4 of this
Report has been excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to
suit the format of this report; any changes to the text have been indicated by the use of [brackets]. 
 Prior to 2012,
Minera Corona did not utilize the services of an independent lab for data verification. The company used an internal QA/QC procedure at its assay lab (Chumpe) located in the Concentration Plant. Historically, the results have compared well with the
metal contained in concentrates and further work on a formal external QA/QC procedure had not been pursued. Beginning in 2012, Minera Corona began to use external check assays as part of the validation system for the Chumpe lab data stream. 

The current procedure includes certified standards, blanks, pulp duplicates, and sample preparation size review. These are processed
at approximately one per 20 samples. External labs receive approximately one sample for each 15 processed internally. Gustavson did not have the opportunity to fully observe the laboratory operation; however, Gustavson has examined QA/QC records of
certified standards for 2011 through 2014. 
 The results of the historic QA/QC show that the Chumpe laboratory generally
performed well with respect to the standards blanks and duplicates submitted from the exploration department, but SRK notes that this has changed in the past year, with the Chumpe lab consistently missing targets for QA/QC. This has resulted in a
program of duplicate samples for every interval being submitted to ALS Minerals in Lima as a check on the Chumpe lab. 
 Currently,
Minera Corona uses a very aggressive program of QA/QC for new exploration areas to mitigate uncertainty in analytical results. A subsequent and more detailed review of the QA/QC applied to new exploration efforts focused on Esperanza is discussed in
Sections 11.4.1 to 11.4.3. 
  

	11.4.1	Standards 

 Minera Corona currently inserts standards or certified reference
materials (CRM) into the sample stream at a rate of about 1:20 samples, although the insertion rate is adjusted locally to account for particular observations in the core. Five standards have been generated by Minera Corona and certified via round
robin analysis for the current exploration programs. These standards have been 

  
  

					
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procured from Yauricocha material, and homogenized and analyzed by Target Rocks Peru S.A., a commercial laboratory specializing in provision of CRM to clients in the mining industry. 

Each CRM undergoes a rigorous process of homogenization and analysis using aqua regia digestion and AA or ICP finish, from a random
selection of 10 packets of blended pulverized material. The six laboratories participating in the round robin for the Yauricocha CRM are: 
  

	 	•	 	 ALS Minerals, Lima 

  

	 	•	 	 Inspectorate, Lima 

  

	 	•	 	 Acme, Santiago 

  

	 	•	 	 Certimin, Lima 

  

	 	•	 	 SGS, Lima 

  

	 	•	 	 LAS, Peru 

The means and between lab standard deviations (SD) are calculated from the received results of the round robin analysis, and the
certified means and tolerances are provided in certificates from Target Rocks. The certified means and expected tolerances are shown in Table 11-3. 

Table 11-3: CRM Expected Means and Tolerances 

 

																																	
	CRM	 	Certified Mean	 	 	Two Standard Deviations (between lab)	 
	Element	 	  Ag (g/t)  	 	 	  Pb (%)  	 	 	  Cu (%)  	 	 	  Zn (%)  	 	 	Ag (g/t)  	 	 	Pb (%)  	 	 	Cu (%)  	 	 	Zn (%)  	 
	 Mat. N°
04
	 	 	29.10  	 	 	 	0.70  	 	 	 	0.16  	 	 	 	0.28  	 	 	 	2.10  	 	 	 	0.03  	 	 	 	0.008  	 	 	 	0.006  	 
	 Mat. N°
05
	 	 	128.20  	 	 	 	2.37  	 	 	 	0.576  	 	 	 	2.50  	 	 	 	7.70  	 	 	 	0.06  	 	 	 	0.02  	 	 	 	0.12  	 
	 Mat. N°
06
	 	 	469.00  	 	 	 	7.75  	 	 	 	2.53  	 	 	 	7.98  	 	 	 	13.00  	 	 	 	0.20  	 	 	 	0.12  	 	 	 	0.23  	 
	 Mat. PLSUL N°
03
	 	 	192.00  	 	 	 	3.09  	 	 	 	1.03  	 	 	 	3.15  	 	 	 	4.00  	 	 	 	0.084  	 	 	 	0.036  	 	 	 	0.13  	 
	
Mat. PLSUL N° 04
	 	 	6.70  	 	 	 	0.087  	 	 	 	0.237  	 	 	 	0.225  	 	 	 	0.50  	 	 	 	0.010  	 	 	 	0.011  	 	 	 	0.008  	 

 Source: Sierra Metals: 2016 

SRK notes that the CRM are adequate for QA/QC monitoring, with the exception of Au, which is not certified for any CRM. Given that Au is
generally a minor and lower grade component to the mineral resources at Yauricocha, SRK regards this as a minor risk, and notes that ALS Minerals conducts its own internal QA/QC checking Au performance as a backstop to their analyses. In total,
Corona has submitted 69 CRM to ALS Minerals in 2015-2016 for the Esperanza area, in a total database of 1,342 samples, for an insertion rate of about 5%. An additional 46 CRM were submitted to the Chumpe lab during the same period for the same
number of samples, at a rate of about 3%. These two sets of CRM were reviewed independently by SRK. 
 Performance: ALS Minerals 

SRK uses a nominal +/-3 SD criteria for evaluating failures of the CRM. The SD used is the
between lab SD, as provided in the certificates from Target Rocks. SRK notes that failure rates for the CRM as provided are very high, with about 16% failures low and over 10% failures high. However, this is due to an unusually high incidence of
sample switching, indicating that appropriate attention is not being maintained during QA/QC sample submission. If the sample switches are corrected, SRK notes that the incidence of failure drops to 11% low and only 7% high, which is still rather
elevated for an established laboratory such as ALS. The tabulated results of this QA/QC are shown in Table 11-4. 

  
  

					
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 Table 11-4: CRM Performance Summary – ALS Minerals

  

																							
	              	 	Ag	 
	 	STD	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-04
	  	 	13	 	  	 	1	 	  	 	0	 	  	 	7.69%	 	  	 	0.00%	 
	 	 MAT-05
	  	 	7	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 MAT-06
	  	 	9	 	  	 	6	 	  	 	0	 	  	 	66.67%	 	  	 	0.00%	 
	 	 MCL-02
	  	 	10	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-03  
	  	 	22	 	  	 	10	 	  	 	0	 	  	 	45.45%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	17	 	  	 	0	 	  	 	1	 	  	 	0.00%	 	  	 	5.88%	 
	 	Pb	 
	 	STD	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-04
	  	 	13	 	  	 	1	 	  	 	1	 	  	 	7.69%	 	  	 	7.69%	 
	 	 MAT-05
	  	 	7	 	  	 	3	 	  	 	0	 	  	 	42.86%	 	  	 	0.00%	 
	 	 MAT-06
	  	 	9	 	  	 	2	 	  	 	0	 	  	 	22.22%	 	  	 	0.00%	 
	 	 MCL-02
	  	 	10	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-03  
	  	 	22	 	  	 	9	 	  	 	0	 	  	 	40.91%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	17	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	Cu	 
	 	STD	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-04
	  	 	13	 	  	 	0	 	  	 	1	 	  	 	0.00%	 	  	 	7.69%	 
	 	 MAT-05
	  	 	7	 	  	 	0	 	  	 	1	 	  	 	0.00%	 	  	 	14.29%	 
	 	 MAT-06
	  	 	9	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 MCL-02
	  	 	10	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-03  
	  	 	22	 	  	 	1	 	  	 	0	 	  	 	4.55%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	17	 	  	 	0	 	  	 	1	 	  	 	0.00%	 	  	 	5.88%	 
	 	Zn	 
	 	STD	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-04
	  	 	13	 	  	 	0	 	  	 	5	 	  	 	0.00%	 	  	 	38.46%	 
	 	 MAT-05
	  	 	7	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 MAT-06
	  	 	9	 	  	 	2	 	  	 	0	 	  	 	22.22%	 	  	 	0.00%	 
	 	 MCL-02
	  	 	10	 	  	 	0	 	  	 	1	 	  	 	0.00%	 	  	 	10.00%	 
	 	 PLSUL-03  
	  	 	22	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	17	 	  	 	0	 	  	 	12	 	  	 	0.00%	 	  	 	70.59%	 
	 	Total	 
	 	STD	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-04
	  	 	52	 	  	 	2	 	  	 	7	 	  	 	3.85%	 	  	 	13.46%	 
	 	 MAT-05
	  	 	28	 	  	 	3	 	  	 	1	 	  	 	10.71%	 	  	 	3.57%	 
	 	 MAT-06
	  	 	36	 	  	 	10	 	  	 	0	 	  	 	27.78%	 	  	 	0.00%	 
	 	 MCL-02
	  	 	40	 	  	 	0	 	  	 	1	 	  	 	0.00%	 	  	 	2.50%	 
	 	 PLSUL-03  
	  	 	88	 	  	 	20	 	  	 	0	 	  	 	22.73%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	68	 	  	 	0	 	  	 	14	 	  	 	0.00%	 	  	 	20.59%	 
	 	 ALL
	  	 	312	 	  	 	35	 	  	 	23	 	  	 	11.22%	 	  	 	7.37%	 

 Source: SRK, 2016 

Performance: Chumpe Laboratory 

The incidence of failure for the CRM submitted to the Chumpe lab in 2015-2016 is also very high, with failure rates of 40.3% low and 4.5%
high for all CRM and all metals. The performance of these CRM at the Chumpe Laboratory is summarized in Table 11-5. Most notable is the consistent and significant under-reporting of Ag analyses compared to the
expected mean for multiple CRM, across multiple grade ranges. SRK notes that the performance between laboratories will be discussed further in Section 11.4.3. 

  
  

					
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 Table 11-5: CRM Performance Summary – Chumpe Lab

  

																							
	               	 	Ag	 
	 	CRM ID	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-05
	  	 	11	 	  	 	2	 	  	 	0	 	  	 	18.18%	 	  	 	0.00%	 
	 	 MAT-06
	  	 	17	 	  	 	17	 	  	 	0	 	  	 	100.00%	 	  	 	0.00%	 
	 	 PLSUL-03
	  	 	33	 	  	 	33	 	  	 	0	 	  	 	100.00%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	24	 	  	 	24	 	  	 	0	 	  	 	100.00%	 	  	 	0.00%	 
	 	Pb	 
	 	CRM ID	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-05
	  	 	11	 	  	 	4	 	  	 	0	 	  	 	36.36%	 	  	 	0.00%	 
	 	 MAT-06
	  	 	17	 	  	 	0	 	  	 	2	 	  	 	0.00%	 	  	 	11.76%	 
	 	 PLSUL-03
	  	 	33	 	  	 	2	 	  	 	0	 	  	 	6.06%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	24	 	  	 	0	 	  	 	9	 	  	 	0.00%	 	  	 	37.50%	 
	 	Cu	 
	 	CRM ID	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-05
	  	 	11	 	  	 	9	 	  	 	0	 	  	 	81.82%	 	  	 	0.00%	 
	 	 MAT-06
	  	 	17	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-03
	  	 	33	 	  	 	32	 	  	 	0	 	  	 	96.97%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	24	 	  	 	9	 	  	 	0	 	  	 	37.50%	 	  	 	0.00%	 
	 	Zn	 
	 	CRM ID	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-05
	  	 	11	 	  	 	2	 	  	 	2	 	  	 	18.18%	 	  	 	18.18%	 
	 	 MAT-06
	  	 	17	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-03
	  	 	33	 	  	 	0	 	  	 	0	 	  	 	0.00%	 	  	 	0.00%	 
	 	 PLSUL-04
	  	 	24	 	  	 	3	 	  	 	3	 	  	 	12.50%	 	  	 	12.50%	 
	 	Total	 
	 	CRM ID	  	Total	 	  	Low 3SD	 	  	High 3SD	 	  	% Low	 	  	% High	 
	 	 MAT-05
	  	 	44	 	  	 	17	 	  	 	2	 	  	 	38.64%	 	  	 	4.55%	 
	 	 MAT-06
	  	 	68	 	  	 	17	 	  	 	2	 	  	 	25.00%	 	  	 	2.94%	 
	 	 PLSUL-03  
	  	 	132	 	  	 	67	 	  	 	0	 	  	 	50.76%	 	  	 	0.00%	 
	 	 PLSUL-04  
	  	 	96	 	  	 	36	 	  	 	12	 	  	 	37.50%	 	  	 	12.50%	 
	 	 ALL
	  	 	340	 	  	 	137	 	  	 	16	 	  	 	40.29%	 	  	 	4.71%	 

 Source: SRK, 2016 
  

	11.4.2	Blanks 

 Minera Corona currently inserts unmineralized quartz sand blanks into the
sample stream at a rate of 1:20 samples or adjusted as necessary to ensure smearing of grade is not occurring immediately after higher grade intervals. Blanks are generally about 0.5 kg of silica sand, bagged and submitted in the sample stream along
with the normal core samples. The results of the blank analysis show that, using a failure criteria of 5X the LLOD, that there are systemic failures for the ALS samples and considerably less for the Chumpe samples. This is owed primarily to the very
low limit of detection for the ALS samples compared to the Chumpe samples, such that a 5X LLOD failure criteria is elevated in the Chumpe samples compared to the ALS samples. 

Table 11-6: Blank Failures 
  

																											
	               	 	Lab	  	Count	 	  	Ag	 	  	Pb	 	  	Cu	 	  	Zn	 	  	Au	 
	 	ALS	  	 	37	 	  	 	5	 	  	 	19	 	  	 	14	 	  	 	27	 	  	 	19	 
	 	Chumpe  	  	 	45	 	  	 	4	 	  	 	1	 	  	 	1	 	  	 	0	 	  	 	1	 

 Note: Failures assessed on a 5X LLOD basis. 

Source: SRK, 2016 

  
  

					
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	11.4.3	Duplicates (Check Samples) 

 Duplicate samples such as the other half of split core
or a crushed/pulverized sample resubmitted to the same laboratory are common practice for normal QA/QC programs, but become less critical once development and mining continues. These samples are designed to check the primary assay laboratory’s
ability to repeat sample values or check the nugget effect of the deposit very early on. 
 While Minera Corona does not submit true
duplicate samples for these intra-lab repeatability checks, they do submit check samples between labs for the same intervals. Minera Corona uses three types of check samples in the QA/QC program for Esperanza.
These include twin (core) duplicates, coarse duplicates (crushed), and pulp duplicates (pulverized) to assess repeatability at the different phases of preparation. 

Consistent bias is observed (Figure 11-1 and Figure 11-2)
for certain elements (Ag and Zn) between the ALS and Chumpe labs, with Chumpe generally under-reporting compared to ALS, particularly at higher grades. The Cu and Pb values more or less are consistent between labs, although the consistency does
break down at higher grades. SRK is of the opinion that, for samples around the average deposit grade, the consistency between labs is reasonable, and given that the Chumpe lab is the lab used to populate the database supporting the mineral resource
estimation, that the risk associated with analytical reporting errors is likely that the grades are being conservatively reported at the higher limits. The means for the different check assay groups are summarized in Table 11-7. 
 Table 11-7: Check Duplicate Statistics 

 

																																													
	Samples	 	 	Ag (g/t)	 	 	Pb (%)	 	 	Cu (%)	 	 	Zn (%)	 	 	Au (g/t)	 
	Type	 	Count	 	 	Chumpe	 	 	ALS	 	 	Chumpe	 	 	ALS	 	 	Chumpe	 	 	ALS	 	 	Chumpe	 	 	ALS	 	 	Chumpe	 	 	ALS	 
	Coarse  	 	 	1264	 	 	 	54.56	 	 	 	55.97	 	 	 	1.31	 	 	 	1.27	 	 	 	1.36	 	 	 	1.33	 	 	 	2.92	 	 	 	3.11	 	 	 	0.41	 	 	 	0.45	 
	Fine	 	 	376	 	 	 	59.57	 	 	 	64.48	 	 	 	0.99	 	 	 	1.00	 	 	 	1.65	 	 	 	1.63	 	 	 	2.54	 	 	 	2.83	 	 	 	0.39	 	 	 	0.43	 
	Twin	 	 	92	 	 	 	143.37	 	 	 	131.98	 	 	 	2.75	 	 	 	2.49	 	 	 	3.32	 	 	 	2.87	 	 	 	5.86	 	 	 	6.31	 	 	 	0.60	 	 	 	0.76	 

 Source: SRK, 2016 

  
  

					
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 Source: Sierra Metals: 2016 

Figure 11-1: Coarse Duplicate Ag Analyses 

  
  

					
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 Figure 11-2: Coarse Duplicate Zn Analyses 

Source: Sierra Metals: 2016 
  

	11.4.4	Actions 

 SRK notes that the actions taken by the exploration team at Yauricocha is
documented in the QA/QC procedures for the mine. In the event that a failure is noted, the laboratory is contacted and the source of the failure is investigated. There is no formal documentation for procedures involving re-runs of batches at this time. SRK notes that the QA/QC reports are not amended to reflect the new passing QA/QC and batch, and only reflect the initial failure and batch to track laboratory performance rather
than the performance of reruns. 
 SRK is of the opinion that these actions are not consistent with industry best practice, which
generally features a program of reanalysis upon failure of a CRM in a batch of samples. SRK notes that this program is implemented at other sites, but is not well documented at Yauricocha. 

 

	11.4.5	Results 

 The results of the QA/QC program described above show relatively high
incidence of failures across the board for all types of QA/QC, with the CRM and the obvious bias between check duplicates being the most concerning. SRK notes that the CRM failures are potentially due to ongoing sample
mix-ups, but that this inherently represents a failure in the process that must be reviewed. SRK evaluated the CRM performance using more lenient tolerances than the CRM themselves

  
  

					
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recommend (+/-3SD vs +/-2SD) as the recommended performance ranges result in extreme failure rates. In the event
that the laboratories are unable to match the performance tolerances for the CRM provided by Target Rocks, this could be due to a few reasons, including: 

The fact that the tolerances have been reduced for the Target Rocks between labs standard deviation, since Target Rocks removed outlier
data from the calculation of the SD. Inclusion of this outlier data in the round robin between lab SD calculations would broaden the SD tolerances to something more achievable. If the tolerances for the CRM provided by Target Rocks are deemed too
restrictive for reasonable laboratory performance, these should be adjusted in collaboration with Target Rocks. 
 If the SD as
calculated by Target Rocks is deemed reasonable, and it is determined that the laboratories should be able to meet the performance criteria, then this is a more serious matter. The laboratories are not capable of analyzing to the precision needed
for these CRM, and the laboratory practices should be reviewed. Uncertainty in the accuracy and precision of the analyses would be introduced through this process, requiring some action in terms of the classification of the mineral resources. 

SRK is aware that the bias of the Chumpe laboratory compared to ALS has been noted and that changes in procedures and hardware are being
implemented at Chumpe to better approximate the preparation and analysis methodology employed by ALS. 
  

	11.5	Opinion on Adequacy 

 SRK is of the opinion that the database is supported by
adequate QA/QC to have reasonable confidence to estimate mineral resources. SRK notes that the failures in the QA/QC should be addressed as soon as possible through review of the original CRM/blanks and their performance limits, as well as reasons
for consistent bias observed between the site Chumpe lab and ALS Minerals. SRK notes that these biases are conservative given that Chumpe is the source for the actual drilling database, and that the nature of the bias is not such that the entire
resource would be mis-stated. SRK did not observe any consistent performance issues over time (2015-2016) at either lab, but rather noted isolated and apparently random failures for the CRM and blanks in
particular. AS noted, many of these can be attributed to sample mixing during QA/QC submittal, a problem in and of itself. SRK strongly recommends that more attention is given to sampling and QA/QC in the future to continue to mitigate potential
uncertainty in the analyses supporting the mineral resource. SRK also notes that any bias from the Chumpe analyses will likely be conservative due to the significant under reporting of Ag and locally other metals for Chumpe compared to ALS. 

Although the performance and monitoring of the QA/QC samples is not consistent with industry best practices, SRK notes that the lack of
precision in certain analyses (Ag, Zn, Pb, Cu) is less critical due to the nature of the mineralization and mining criteria at Yauricocha. Precision issues between 0.1 to 0.2% in the base metals is likely not sufficient to cause material issues in
deciding whether material is mined or not, and these decisions are generally made with ongoing development samples and grade control entirely unsupported by detailed QA/QC. Thus, much of the risk associated with the analyses has already be borne by
the active mining of multiple areas at Yauricocha, and mitigated by ongoing profitable production. SRK is of the opinion that while these issues should be addressed going forward; they represent little risk to the statement of mineral resources at
this time. 

  
  

					
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	12	Data Verification 

 Section 12.1 of this Report has been excerpted from
NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of this report;
any changes to the text have been indicated by the use of [brackets]. 
 Gustavson has verified the data supporting mineral
resource estimation at Yauricocha since 2012. SRK notes that the data verification process is made very difficult due to the lack of a compiled and well-ordered database for the project. SRK also notes that the analytical certificates provided for
ALS Mineral analyses due not correspond to the actual database values as these assays are only used in a check capacity. 
  

	12.1	Procedures 

 Gustavson reviewed the drillhole and underground channel samples
databases for the Yauricocha project and compared the assay database with a separately maintained database of assay data which is described as ‘laboratory data’. Chumpe lab does not provide a separately maintained database, nor are there
assay certificates per se with which to compare the database. 
 Detailed database comparisons were carried out on drillhole
databases from five areas of the deposit, which comprise over 80 percent of the resource tonnage. The overall error rates are between 0.28% and 0.55%, which is within an acceptable range for this type of database. 

 

	12.2	Limitations 

 Neither SRK nor Gustavson has reviewed 100% of the analyses at
Yauricocha against certified, independent assay certificates. 
  

	12.3	Opinion on Data Adequacy 

 SRK has relied upon the verification conducted by
Gustavson over the recent project history and notes that much of the risk associated with potential database contamination or transposition is borne-out through daily production in the currently operating
underground mine. 
 SRK does recommend the installation of a dedicated database management platform that will compile and validate the
database used in mineral resource estimation against the actual certificates received from Chumpe, as well as make QA/QC management and database export more flexible and reliable. 

  
  

					
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	13	Mineral Processing and Metallurgical Testing 

  

	13.1	Testing and Procedures 

 Yauricocha’s facilities include a metallurgical
laboratory at site. Sampling and testing of samples are executed on a needed basis. No testwork results were available at this time. 
  

	13.2	Recovery Estimate Assumptions 

 Yauricocha has been in operation since 1984; its
results showing that the operating personnel have a good understanding of the metallurgical performance of the polymetallic and oxide mineralization. Final concentrates (Table 13-1) show typical commercial
concentrate grades. 
 In terms of copper concentrate, the fresh feed assaying 0.5% Cu yielded a concentrate assaying 26.9% Cu at a
recovery of 55% Cu. Deportment of Zn and Pb to copper concentrate was at 1% for both metals. Silver recovery to copper concentrate reached 17%. 

In terms of lead sulfide concentrate, 85% of the fresh feed assaying 1.7% Pb in the polymetallic plant was deported to a sulfide
concentrate grading 59.3% Pb. Deportment of Cu and Zn to the Pb concentrate reached 5% and 3%, respectively. The large fraction of silver in the polymetallic circuit was deported to the lead concentrate; it reached 52% recovery in the period January
to June 2016. The lead sulfide concentrate produced from the oxide circuit represents only a minor fraction of the overall lead concentrate production, and is blended with its similar from the polymetallic circuit in the single final lead sulfide
concentrate thickener. For the period January to June 2016, the tonnage of lead sulfide concentrate produced from the oxide circuit represented 16.4% of the total production. Gold and silver recovery to oxide Pb concentrate reached 27% and 21%,
respectively. The oxide lead concentrate’s lead grade reached 26.1%, which is below commercial quality levels, therefore justifying Yauricocha’s decision to blend it with its similar from the polymetallic circuit. 

The zinc concentrate recovered 90% of the feed assaying 4.0% Zn. Lead and copper recovery to the zinc concentrate reached 2% and 16%,
respectively. Silver deportment to the zinc concentrate reached 8%. 
 Table 13-1: Yauricocha Metallurgical
Performance, January to June 2016 
  

																																																			
	  	  	  	  	  	 	  	Throughput 	 	  	Concentrate Grade	 	  	Recovery (%)	 
	Plant	  	Stream	  	Tonne 	 	  	 (t/d) 

(at 365 d/y) 
	 	  	 Au 

(g/t) 
	 	  	 Ag 

(g/t) 
	 	  	 Pb 

(%) 
	 	  	 Cu 

(%) 
	 	  	 Zn 

(%) 
	 	  	Au 	 	  	Ag 	 	  	Pb 	 	  	Cu 	 	  	Zn 	 
	 Polymetallic
	  	Fresh Ore	  	 	344,875 	 	  	 	1,889.7 	 	  			 	  	 	2.0 	 	  	 	1.7 	 	  	 	0.5 	 	  	 	4.0 	 	  			 	  	 	100 	 	  	 	100 	 	  				  	 	100 	 
	 Polymetallic
	  	Cu Conc	  	 	3,596 	 	  	 	19.7 	 	  			 	  	 	33.0 	 	  	 	2.3 	 	  	 	26.9 	 	  	 	5.2 	 	  			 	  	 	17 	 	  	 	1 	 	  	 	55 	 	  	 	1 	 
	 Polymetallic
	  	Pb Conc	  	 	8,369 	 	  	 	45.9 	 	  			 	  	 	43.5 	 	  	 	59.3 	 	  	 	1.1 	 	  	 	4.8 	 	  			 	  	 	52 	 	  	 	85 	 	  	 	5 	 	  	 	3 	 
	
Polymetallic
	  	Zn Conc	  	 	24,478 	 	  	 	134.1 	 	  	 	 	 	  	 	2.3 	 	  	 	0.6 	 	  	 	1.1 	 	  	 	50.8 	 	  	 	 	 	  	 	8 	 	  	 	2 	 	  	 	16 	 	  	 	90 	 
	 Oxide
	  	Fresh Ore	  	 	62,215 	 	  	 	340.9 	 	  	 	1.1 	 	  	 	4.9 	 	  	 	7.4 	 	  	 	0.6 	 	  	 	2.0 	 	  	 	100 	 	  	 	100 	 	  	 	100 	 	  	 	100 	 	  			 
	 Oxide
	  	Pb Conc	  	 	1,642 	 	  	 	9.0 	 	  	 	11.0 	 	  	 	38.9 	 	  	 	26.1 	 	  	 	1.2 	 	  	 	16.7 	 	  	 	27 	 	  	 	21 	 	  	 	9 	 	  	 	6 	 	  			 
	 Oxide
	  	Pb Ox Conc	  	 	5,205 	 	  	 	28.5 	 	  	 	3.2 	 	  	 	17.4 	 	  	 	48.6 	 	  	 	0.5 	 	  	 	1.0 	 	  	 	25 	 	  	 	30 	 	  	 	55 	 	  	 	7 	 	  	 	 	 

     Source: SRK, 2016 

Available information on potentially deleterious elements for Pb sulfide concentrate and for Cu concentrate are available for the period
February to April 2016 (Table 13-2). Depending on the commercial terms with the concentrate buyers, the 0.518% as observed in copper concentrate during March 2016 could have translated in penalties. Arsenic is
also present in the lead sulfide 

  
  

					
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concentrate, but in levels that unlikely will trigger penalty payments. Arsenic in Pb sulfide concentrate reached 0.164% during February 2016. 

Table 13-2: Yauricocha Assays Exchange with Trafigura 

 

																																					
	Period	  	Source  	  	Product	  	  Wet Tonnes  	 	  	  Dry Tonnes  	 	  	  Cu %	 	  	  Pb %	 	  	  Zn %	 	  	 As %	 	  	Sb %	 	  	Bi %	 
	 Feb 2016  
	  	Yauricocha  	  	Zn Sulfide	  	 	2,977.750  	 	  	 	2,767.017  	 	  	 	1.210  	 	  	 	0.680  	 	  	 	50.060  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 
	 Feb 2016
	  	Trafigura	  	Zn Sulfide	  	 	2,975.890  	 	  	 	2,759.066  	 	  	 	0.000  	 	  	 	0.000  	 	  	 	49.525  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 
	 Feb 2016
	  	Final	  	Zn Sulfide	  	 	2,975.890  	 	  	 	2,759.066  	 	  	 	0.000  	 	  	 	0.000  	 	  	 	49.472  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 
	 Feb 2016
	  	Yauricocha  	  	Pb Sulfide	  	 	1,247.880  	 	  	 	1,130.247  	 	  	 	2.900  	 	  	 	46.870  	 	  	 	5.570  	 	  	 	0.000  	 	  	 	-  	 	  	 	-  	 
	 Feb 2016
	  	Trafigura	  	Pb Sulfide	  	 	1,245.600  	 	  	 	1,124.887  	 	  	 	0.000  	 	  	 	47.183  	 	  	 	0.000  	 	  	 	0.177  	 	  	 	-  	 	  	 	-  	 
	 Feb 2016
	  	Final	  	Pb Sulfide	  	 	1,245.600  	 	  	 	1,124.887  	 	  	 	0.000  	 	  	 	47.280  	 	  	 	0.000  	 	  	 	0.164  	 	  	 	-  	 	  	 	-  	 
	 Mar 2016
	  	Yauricocha  	  	Cu Conc	  	 	522.600  	 	  	 	346.585  	 	  	 	27.560  	 	  	 	1.510  	 	  	 	3.430  	 	  	 	0.000  	 	  	 	0.000  	 	  	 	0.000  	 
	 Mar 2016
	  	Trafigura	  	Cu Conc	  	 	520.320  	 	  	 	459.353  	 	  	 	27.060  	 	  	 	1.600  	 	  	 	3.370  	 	  	 	0.500  	 	  	 	0.070  	 	  	 	0.090  	 
	 Mar 2016
	  	Final	  	Cu Conc	  	 	520.320  	 	  	 	459.353  	 	  	 	27.003  	 	  	 	1.525  	 	  	 	3.408  	 	  	 	0.518  	 	  	 	0.045  	 	  	 	0.075  	 
	 Apr 2016
	  	Yauricocha  	  	Pb Oxide C  	  	 	1,638.330  	 	  	 	1,433.911  	 	  	 	1.620  	 	  	 	45.980  	 	  	 	1.630  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 
	 Apr 2016
	  	Trafigura	  	Pb Oxide C  	  	 	1,639.170  	 	  	 	1,430.190  	 	  	 	0.000  	 	  	 	44.439  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 
	 Apr 2016
	  	Final	  	Pb Oxide C  	  	 	1,639.170  	 	  	 	1,430.190  	 	  	 	0.000  	 	  	 	44.398  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 	  	 	-  	 

 Source: SRK, 2016 

  
  

					
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	14	Mineral Resource Estimate 

 Section 14.2 of this Report has been
excerpted from NI 43-101 Technical Report on the Yauricocha Mine, prepared by Gustavson Associates, report date May 11, 2015 and are shown in italics. Standardizations have been made to suit the format of
this report; any changes to the text have been indicated by the use of [brackets]. 
 Mineral Resource Estimations have been
conducted by either of the following Qualified Persons, using various industry-standard mining software: 
  

	 	•	 	 Thomas J. Matthews, Senior Resource Geologist of Gustavson Associates; DatamineTM 

Mine Areas: Mascota, Cachi-Cachi (excl. Elissa) 
  

	 	•	 	 Matthew Hastings, Senior Resource Geologist of SRK Consulting (U.S.) Inc.; Maptek VulcanTM 

Mine Areas: Mina Central, Esperanza, Elissa, Cuerpos Pequenos 

This report features mineral resources reported from models developed and estimated by Gustavson Associates as well as SRK, at criteria
determined by Minera Corona and SRK to be reasonable for reporting of these resources. Descriptions of methodology have been separated on the basis of area and consulting firm, as the methodologies may differ slightly between the two groups. 

 

	14.1	Drillhole Database 

 SRK received two separate drilling databases for this project.
The first is a compiled and validated database provided by Gustavson Associates containing all drilling and channel sampling up to the end of 2015 for all mine areas. The second is a compiled and validated database provided by Minera Corona
containing only drilling up to June 24, 2016, only for the Esperanza area. The former has been used for the modeling and estimation of all areas except Esperanza, whereas the latter has only been used for the Esperanza area. 

SRK notes that Minera Corona maintains their own databases in many individual spreadsheets by orebody and time period, which are in turn
separated by channel sample and diamond drill hole. The compilation of these files is time-consuming and error-prone, which is why SRK has elected to use the compiled EOY2015 Gustavson database. 

In the combined database received, no differentiation is made between drilling and channel samples. In most cases, this distinction can
be made based on the total length of the record in the database, but this cannot be used to precisely state the provenance of a sample within the database alone. The current database is maintained in a series of files within the Datamine software
used for modeling and estimation on-site. 
 SRK is of the opinion that one of the largest and
most critical deficiencies at Yauricocha is the lack of a well-maintained database in any format that compiles the entirety of the information to be used in the resource estimation. A database in this type of format would ideally be able to be
sorted based on year, type of drilling/sampling, analytical lab, etc., and would permit flexibility and speed in manipulation of data and filtering it for use in mineral resource estimation. 

  
  

					
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	14.2	Geologic Model 

 Geological models have been developed primarily by Minera Corona
site geologists, and in general are the best and most accurate representations of the geology of the deposits (in italics below). In general, these have been digitized in 3D (DatamineTM) from sectional interpretation either on level maps or
cross sections from drilling. 
 In areas where the site geological personnel have not internally developed 3D geologic models, models
have been developed by Gustavson using LeapfrogTM Mining implicit modeling techniques (Mascota). 
 SRK has elected to utilize
these models as provided as the site geologists have done very good work developing the majority of models and the remaining implicit models are also reasonable interpretations of the mineralization. 

Mineralization at Yauricocha encompasses two main styles, differentiated by scale, continuity, and exploration and development style.

  

	 	•	 	 Cuerpos Massivos (large bodies) are bodies formed along major structures of significant (several hundreds of meters)
of vertical extent, consistent geometry, and significant strike length. These bodies constitute the majority of tonnage mined in the operation, are easily intersected by targeted drilling, and are mined by bulk mining methods.

  

	 	•	 	 Cuerpos Chicos (small bodies) are smaller mineralized bodies of high grades. They are often skarn bodies, are less
continuous and less regular in form than the Cuerpos Massivos, and are difficult to intersect except with carefully targeted drilling. They are typically mined by overhand cut and fill or similar high-selectivity mining methods. The mine has
historically drifted into these zones and delineated them using localized channel sample data. Recently, additional effort has been made to use targeted drilling to explore the extents of certain of these bodies. Cuerpos Chicos in the Cachi-Cachi
area are referred to by the area designation “Cachi-Cachi” and Cuerpos Chicos occurring in the vicinity of Mina Central are collectively referred to as the “Cuerpos Pequenos”. 

 

	14.2.1	Mina Central 

 The geology model for Mina Central has been constructed by Corona
site geologists. This model is based on cross sectional and level mapping, and encompasses the massive orebodies Antacaca, Catas, Rosaura, and Antacaca Sur, which are broken on geographic and infrastructure boundaries rather than any mineralogic or
geologic boundaries. The model is effectively continuous through all areas. The mineralization is domained using a steeply dipping, NW trending, tabular manto wireframe constructed in DatamineTM. Both channel sampling and drilling have been used
to develop this model. SRK reviewed the wireframes collaboratively with Corona personnel and noted that it appears to be a reasonable representation of the polymetallic sulfide mineralization as logged and sampled in this area. An example of this
model is shown in Figure 14-1. 

  
  

					
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 Source: SRK 

Figure 14-1: Mina Central Geologic Model 

  
  

					
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	14.2.2	Cachi-Cachi 

 The geology model for Cachi-Cachi has been constructed by Corona site
geologists. This model is based on cross sectional and level mapping, and encompasses the massive orebodies Karlita, Angelita, Elissa, Escondida, and Zulma, which are discrete mineralized bodies with unique morphologies and mineralization. The
mineralization is domained using a variety of geometries and orientations, which are generally steeply dipping. Models are wireframes digitized in DatamineTM. Both channel sampling and drilling have been used to develop these models. SRK
reviewed the wireframes collaboratively with Corona personnel and noted that it appears to be a reasonable representation of the polymetallic sulfide mineralization as logged and sampled in this area. An example of these models is shown in Figure 14-2. 

  
  

					
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 Source: SRK 

Figure 14-2: Cachi-Cachi Geologic Model 

  
  

					
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	14.2.3	Mascota 

 The geology model for Mascota has been constructed by Gustavson
Associates using implicit modeling in LeapfrogTM Mining software. The model is based on the grouped lithologies from drilling and sampling in the Mascota mine area. SRK notes that the site does not model Mascota in 3D, and prefers to rely on
plan polygonal modeling for mine planning and resource reporting. SRK notes that the model produced by Gustavson only accounts for areas known to feature Pb-oxide mineralization, although the orebody is known
to contain limited zones of oxide Cu as well as polymetallic sulfide mineralization at depth. SRK has not generated a new model for this area due to the paucity of understanding of these areas as well as the time constraints for this work. SRK notes
that the additional areas offer potential upside to the project in terms of adding these areas with additional interpretation of existing drilling and development. 
  

 
 Source: SRK 

Figure 14-3: Mascota Geologic Model 

  
  

					
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	14.2.4	Esperanza 

 The geology model for Esperanza has been constructed by Corona site
geologists. This model is based on very detailed cross sectional and level mapping in order to capture the inherent complexity of this area. The model is digitized as a 3D wireframe in DatamineTM. The model represents two primary feeder
structures within Esperanza, which appear to coalesce at depth and split into many “finger-like” smaller structures in the upper levels. Although general continuity along strike and down-dip is quite
good, SRK notes that the mineralization varies dramatically in orientation and thickness, locally over short distances. 
  

 
 Source: SRK 

Figure 14-4: Esperanza Geologic Model 

 

	14.2.5	Cuerpos Pequenos 

 The geology model for the Cuerpos Pequenos has been constructed
by Corona site geologists. This model is based on cross sectional and level mapping, and encompasses the smaller bodies, which are considered discrete mineralized bodies with unique morphologies and mineralization. The models included in this area
are Gallitos, Juliana, Pozo Rico, Cuye, Marita, Butz, Cuye Sur, Contacto Oriental, Contacto Occidental, Katty, Sur Medio (II and III), and Violeta. The mineralization is domained using a variety of geometries and orientations, which are generally
steeply-dipping. Models are wireframes digitized in DatamineTM. Both channel sampling and drilling have been used to develop these models. SRK reviewed the wireframes collaboratively with Corona personnel and noted that it appears to be a
reasonable representation of the polymetallic sulfide mineralization as logged and sampled in this area. 

  
  

					
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 The unpredictable nature of the orebodies and the exploration methodology used to
delineate them makes for some uncertainty in the interpretation of the bodies, as they have been demonstrated to pinch and swell dramatically over short distances. Although an important source of mineral resources and production, these are not
relied upon to the same degree as more massive bodies, such as Mina Central and Esperanza. SRK notes that there are several of the Cuerpo Pequeno-type orebodies that have not been modeled or estimated to date, but include mineralization which has
been selectively mined already. This has historically made modeling and estimation of the smaller orebodies a distinct challenge, as the mineralization is often mined before the biannual modeling process. An example of these models is shown in plan
in Figure 14-5 and section in Figure 14-6. 

  
  

					
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 Source: SRK 

Figure 14-5: Plan View of Cuerpos Pequenos Geologic Model 

  
  

					
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 Source: SRK 

Figure 14-6: Section View of Cuerpos Pequenos Geologic Model 

 

	14.2.6	Grade Distribution by Area 

 The individual mineralized zones feature
mineralogically discrete compositions, which produce a variation of the polymetallic sulfide and oxide grades throughout. SRK has compiled the simple mean grades (Table 14-1) for the individual area into to
show the variation. Some areas such as the Cuerpos Pequenos feature dramatically different metal content (elevated Ag) compared to others like Esperanza and Cuye, which feature higher Cu. 

  
  

					
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 Table 14-1: Mean grades by Area 

 

																									
	           	 	Area	  	 Samples

Count
	 	  	Ag
Mean	 	  	Au
Mean	 	  	Cu
Mean	 	  	Pb
Mean	 	  	Zn
Mean
	 	 ALL
	  	 	34,297	 	  	 	26.66	 	  	 	0.17	 	  	 	0.22	 	  	 	0.64	 	  	0.95
	 	 Angelita
	  	 	339	 	  	 	15.19	 	  	 	0.33	 	  	 	0.38	 	  	 	0.36	 	  	5.32
	 	 Butz
	  	 	28	 	  	 	70.11	 	  	 	0.14	 	  	 	0.11	 	  	 	3.16	 	  	5.68
	 	 C. Occ.
	  	 	115	 	  	 	469.78	 	  	 	2.22	 	  	 	0.39	 	  	 	12.14	 	  	3.92
	 	 C. Ori.
	  	 	93	 	  	 	119.78	 	  	 	1.16	 	  	 	1.27	 	  	 	2.10	 	  	4.82
	 	 CSM
	  	 	42	 	  	 	507.37	 	  	 	0.58	 	  	 	0.23	 	  	 	15.32	 	  	14.66
	 	 CSM_I
	  	 	43	 	  	 	586.32	 	  	 	0.46	 	  	 	0.30	 	  	 	13.24	 	  	15.23
	 	 CSM_II
	  	 	216	 	  	 	801.67	 	  	 	0.65	 	  	 	0.49	 	  	 	15.29	 	  	19.45
	 	 Cuye
	  	 	108	 	  	 	39.69	 	  	 	0.22	 	  	 	3.51	 	  	 	0.21	 	  	1.01
	 	 Cuye Sur
	  	 	144	 	  	 	115.92	 	  	 	0.03	 	  	 	2.36	 	  	 	0.44	 	  	1.34
	 	 Elissa
	  	 	473	 	  	 	131.18	 	  	 	0.27	 	  	 	0.15	 	  	 	2.65	 	  	13.12
	 	 Escondida
	  	 	205	 	  	 	171.92	 	  	 	0.70	 	  	 	0.61	 	  	 	2.89	 	  	6.43
	 	 Esperanza
	  	 	302	 	  	 	78.15	 	  	 	0.62	 	  	 	2.67	 	  	 	1.76	 	  	3.55
	 	 Gallitos
	  	 	123	 	  	 	127.84	 	  	 	0.14	 	  	 	0.43	 	  	 	7.35	 	  	10.71
	 	 Juliana
	  	 	67	 	  	 	81.54	 	  	 	0.05	 	  	 	0.09	 	  	 	2.79	 	  	5.71
	 	 Karlita
	  	 	313	 	  	 	67.79	 	  	 	0.62	 	  	 	0.48	 	  	 	2.12	 	  	6.14
	 	 Katty
	  	 	64	 	  	 	494.69	 	  	 	1.10	 	  	 	0.13	 	  	 	16.23	 	  	1.51
	 	 Marita
	  	 	77	 	  	 	95.94	 	  	 	0.24	 	  	 	0.62	 	  	 	0.50	 	  	9.85
	 	 Mascota
	  	 	3,404	 	  	 	257.13	 	  	 	1.77	 	  	 	0.92	 	  	 	7.74	 	  	1.05
	 	 Mina Central
	  	 	9,614	 	  	 	58.25	 	  	 	0.54	 	  	 	0.96	 	  	 	0.99	 	  	3.25
	 	 Pozo Rico
	  	 	346	 	  	 	102.72	 	  	 	1.04	 	  	 	0.23	 	  	 	3.39	 	  	7.61
	 	 Violeta
	  	 	40	 	  	 	311.99	 	  	 	1.12	 	  	 	0.41	 	  	 	10.02	 	  	14.18
	 	 Zulma
	  	 	67	 	  	 	152.45	 	  	 	0.75	 	  	 	0.21	 	  	 	3.19	 	  	11.89
	 	 Out
	  	 	18,074	 	  	 	7.62	 	  	 	0.06	 	  	 	0.10	 	  	 	0.18	 	  	0.38

 Source: SRK, 2016 
  

	14.3	Assay Capping and Compositing 

  

	14.3.1	Gustavson Methodology 

 Gustavson conducted capping and compositing for the
estimations of Mascota and Cachi-Cachi (excluding Elissa). 
 Compositing 

Gustavson composites the data prior to capping outliers. In general, Gustavson selected a 1.0 m nominal composite length given that
average sample lengths are generally 1.0 m. However, Gustavson utilizes a specific compositing mode in DatamineTM, which breaks composites into equal lengths across an interval, with the objective to achieve a global mean of 1.0 m. This results
in individual composites that range dramatically in length between 0.5 and 1.5 m in the case of Cachi-Cachi, for example. 
 Samples
within the mineralized domains are selected for compositing, with unsampled intervals received a composite grade of zero. 
 Outliers

 Capping of outlier composites is analyzed using cumulative frequency plots, and capping values are applied to limit the high
grade outlier populations. Capping limits assigned by Gustavson to the composite data are summarized in Table 14-2. SRK has not conducted capping analyses for the Gustavson estimates. 

  
  

					
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 Table 14-2: Capping limits for Gustavson
Estimates 
  

																							
	           	 	Area	  	Ag (g/t)	 	  	Au (g/t)	 	  	Cu (%)	 	  	Pb (%)	 	  	Zn (%)	 
	 	Mascota	  	 	3,000	 	  	 	13	 	  	 	10	 	  	 	11	 	  	 	2.5	 
	 	Cachi-Cachi (excl. Elissa)	  	 	1,000	 	  	 	5	 	  	 	3	 	  	 	20	 	  	 	30.0	 

 Source: Gustavson, 2016 
  

	14.3.2	SRK Methodology 

 SRK conducted capping and compositing for the databases
supporting estimations at Mina Central, Esperanza, Elissa, and Cuerpos Pequenos. 
 Outliers 

SRK reviewed the outliers in the Esperanza, Elissa, Cuerpos Pequenos, and Mina Central data using a combination of histograms, log
probability plots, and descriptive statistics. Outliers are evaluated from the raw, un-composited data, flagged by the 3D geologic model. An example of the log probability plot reviewed for Zn is shown in
Figure 14-7. An example of a capping analysis for Zn in Esperanza is shown in Table 14-3. This capping analysis reviewed the impact of the cap on a number of factors in
the database, including total reduction in contained metal, percentage of samples capped, and reduction to the CV. The detailed capping analyses conducted by SRK for the four areas listed above is presented in Appendix B of this report. Capping
limits assigned for each area estimated by SRK are shown in Table 14-4. 

  
  

					
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 Table 14-3: Esperanza Zn Capping Analysis

  

																																															
	            
	 	Cap	  	Capped	 	  	Percentile	 	  	Capped (%)	 	  	Lost Metal (%)	 	  	CV (%)	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 		  				  				  				  				  				  	 	1,831	 	  	 	37.080	 	  	 	3.378	 	  	 	5,657	 	  	 	34.59	 	  	 	1.74	 
	 	28.50	  	 	9	 	  	 	99.60%	 	  	 	0.50	 	  	 	0.44	 	  	 	0.83	 	  	 	1,831	 	  	 	28.50	 	  	 	3.362	 	  	 	5,630	 	  	 	33.70	 	  	 	1.73	 
	 	26.48	  	 	24	 	  	 	98.80%	 	  	 	1.30	 	  	 	0.95	 	  	 	1.50	 	  	 	1,831	 	  	 	26.475	 	  	 	3.346	 	  	 	5,603	 	  	 	32.91	 	  	 	1.71	 
	 	25.00	  	 	32	 	  	 	98.40%	 	  	 	1.70	 	  	 	1.60	 	  	 	2.30	 	  	 	1,831	 	  	 	25.000	 	  	 	3.325	 	  	 	5,568	 	  	 	31.98	 	  	 	1.70	 
	 	22.00	  	 	47	 	  	 	97.50%	 	  	 	2.60	 	  	 	3.40	 	  	 	4.40	 	  	 	1,831	 	  	 	22.000	 	  	 	3.263	 	  	 	5,465	 	  	 	29.49	 	  	 	1.66	 
	 	20.00	  	 	69	 	  	 	96.40%	 	  	 	3.80	 	  	 	5.20	 	  	 	6.20	 	  	 	1,831	 	  	 	20.000	 	  	 	3.202	 	  	 	5,362	 	  	 	27.32	 	  	 	1.63	 
	 	18.02	  	 	89	 	  	 	95.60%	 	  	 	4.90	 	  	 	7.60	 	  	 	8.40	 	  	 	1,831	 	  	 	18.022	 	  	 	3.122	 	  	 	5,228	 	  	 	24.79	 	  	 	1.59	 
	 	15.60	  	 	122	 	  	 	93.90%	 	  	 	6.70	 	  	 	12.00	 	  	 	11.00	 	  	 	1,831	 	  	 	15.602	 	  	 	2.995	 	  	 	5,015	 	  	 	21.31	 	  	 	1.54	 
	 	14.06	  	 	144	 	  	 	92.80%	 	  	 	7.90	 	  	 	15.00	 	  	 	14.00	 	  	 	1,831	 	  	 	14.058	 	  	 	2.893	 	  	 	4,844	 	  	 	18.89	 	  	 	1.50	 
	 	13.07	  	 	159	 	  	 	91.90%	 	  	 	8.70	 	  	 	17.00	 	  	 	15.00	 	  	 	1,831	 	  	 	13.07	 	  	 	2.817	 	  	 	4,718	 	  	 	17.27	 	  	 	1.48	 
	 	12.21	  	 	176	 	  	 	90.90%	 	  	 	9.60	 	  	 	19.00	 	  	 	17.00	 	  	 	1,831	 	  	 	12.21	 	  	 	2.744	 	  	 	4,595	 	  	 	15.82	 	  	 	1.45	 
	 	zn > 25	  				  				  				  				  				  	 	32	 	  	 	37.08	 	  	 	28.121	 	  	 	800	 	  	 	8.89	 	  	 	0.11	 
	 	zn <= 25 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1,799	 	  	 	24.36	 	  	 	2.950	 	  	 	4,857	 	  	 	24.27	 	  	 	1.67	 

 Note: Selected capping limit shown in red, with statistics for samples above and below the cap at the
bottom of the table. 
 Source: SRK, 2016 

  
  

					
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 Source: SRK, 2016 

Note: Selected cap shown with red dotted line. 

Figure 14-7: Log Probability Plot – Esperanza Zn 

Table 14-4: SRK Capping Limits 

 

																							
	          	 	Area	  	Ag (g/t)	 	  	Au (g/t)	 	  	Cu (%)	 	  	Pb (%)	 	  	Zn (%)	 
	 	Mina Central	  	 	800	 	  	 	5	 	  	 	10	 	  	 	20	 	  	 	30	 
	 	Esperanza	  	 	345	 	  	 	2.5	 	  	 	12	 	  	 	11	 	  	 	25	 
	 	Elissa	  	 	420	 	  	 	1.1	 	  	 	0.5	 	  	 	10	 	  	 	36	 

 Source: SRK, 2016 
  

	14.4	Variogram Analysis and Modeling 

  

	14.4.1	Gustavson Variography 

 Variogram Ranges used for Estimation and Classification
are based on variography conducted on 1m composites within the Cuerpos Massivos. Variography for Mina Central (Catas, Antacaca, Rosaura, Antacaca Sur) was carried out on samples from all the bodies as a contiguous unit, because they all occupy the
same structural domain. Variography for Mascota and Elissa were considered separately. 
 Both General relative and pairwise
variograms were constructed. Both show long ranges of continuity within the domain, in the strike and dip directions, and very poor structure in the across strike direction (consistent with the geometry of the mineralized zones). The variography
supports using relatively long ranges for classification and estimation, as tabulated below. 
 SRK considered the ranges
interpreted by Gustavson for the general and pairwise relative variograms as potential maximums of continuity, and notes that these were utilized for this purpose in the Mascota area. 

  
  

					
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	14.4.2	SRK Variography 

 SRK did not conduct detailed variogram analysis in support of
kriging or other variogram-based estimation methods. SRK did, however conduct limited variogram analyses using omni-directional variograms based on capped and composited data from Esperanza. This was designed to assess potential ranges of
interpolation for the estimation, if not specifically the dimension of ellipsoids and kriging parameters. The metals with the least variance within the orebody exhibited the most reasonable variograms, although the nugget effect is generally
observed to be high, as much as 40% of the total sill as modeled in Figure 14-8. The range for the Cu variogram in Esperanza is approximately a maximum of 100m, although the range for more variable metals is
considerably less; averaging about 50 m for Ag (Figure 14-9). 
 SRK utilized ranges of
interpolation between 25 and 100 m for all orebodies, based on a combination of the omni-directional variography for Esperanza and Gustavson’s review of other orebodies, as well as statements of geological continuity from observations of mine
geology personnel with experience in the mine. 
 SRK is of the opinion that potential improvements to the estimations could be made by
conducting detailed geostatistical analysis, incorporating kriging for the various areas where applicable, and utilization of these observations in classification of mineral resources. SRK has not conducted this analysis due to time constraints.

  
 

 
 Source: SRK, 2016 

Figure 14-8: Omni-directional Variogram – Esperanza Cu 

  
  

					
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 Source: SRK, 2016 

Figure 14-9: Omni-directional Variogram – Esperanza Ag 

 

	14.5	Block Model 

  

	14.5.1	Gustavson Block Models 

 Gustavson constructed 3D block models using CAE
DatamineTM software. 
 Separate block model prototypes were constructed for each of the main resource areas, with the block
models rotated horizontally around the Z axis to orient blocks parallel to the main strike of the mineralized zones. Relatively small blocks were used in order to reduce edge effects in the estimation, and to allow division into stope blocks without
introducing data artifacts. 
 The details for the Gustavson block models are summarized in Table
14-5. 
 Table 14-5: Gustavson Model Details

  

																					
	 
          
	 	Area	  	Orientation 	  	Origin (Local m)	 	  	 Number

of Blocks
	 	  	 Block Size

(m)
	 	  	 Rotation

(°)
	 
	 	Cachi-Cachi	  	X	  	 	23,740	 	  	 	238	 	  	 	2	 	  	 	0	 
	 	  	Y	  	 	16,335	 	  	 	175	 	  	 	2	 	  	 	0	 
	 	  	Z	  	 	3,950	 	  	 	150	 	  	 	2	 	  	 	0	 
	 	Mascota	  	X	  	 	23,660	 	  	 	52	 	  	 	2	 	  	 	0	 
	 	  	Y	  	 	15,435	 	  	 	40	 	  	 	2	 	  	 	0	 
	 	  	Z	  	 	3490.413	 	  	 	625	 	  	 	1	 	  	 	65	 

 Source: Gustavson, 2016 

  
  

					
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	14.5.2	SRK Block Models 

 SRK constructed 3D block models using Maptek VulcanTM
software. 
 SRK utilized sub-blocking methods in order to achieve a smaller block size in the
mineralized zones, with maximums approximating selective mining unit equivalents in the vicinity of mineralization, and larger blocks in the waste areas that function for design and dilution purposes while keeping the size of the model to a minimum.
The exception to this is the Esperanza model, where smaller blocks were used outside of the mineralized zone as certain areas external to the main orebody were estimated. In the case of Mina Central, the dimensions of the previous Gustavson model
were retained so that the site can efficiently use the resulting model. The details for the 3D block models are summarized in Table 14-6. 

Table 14-6: SRK Model Details 

 

																													
	           	 	Area	  	Orientation  	  	 Origin

(Local m)
	 	  	 Extent

(Local m)
	 	  	 Block Size

(Min m)
	 	  	 Block Size

(Max m)
Mineralization
	 	  	 Block
Size

(Max m)
Waste
	 	  	 Rotation

(°)
	 
	 	 Mina Central
	  	X	  	 	23,820	 	  	 	24620	 	  	 	0.5	 	  	 	3	 	  	 	10	 	  	 	0	 
	 	  	Y	  	 	15,300	 	  	 	15460	 	  	 	0.5	 	  	 	3	 	  	 	10	 	  	 	0	 
	 	  	Z	  	 	3,490.413	 	  	 	4190.413	 	  	 	0.5	 	  	 	3	 	  	 	10	 	  	 	150	 
	 	 Esperanza
	  	X	  	 	23,480	 	  	 	23940	 	  	 	0.5	 	  	 	2	 	  	 	2	 	  	 	0	 
	 	  	Y	  	 	15,840	 	  	 	16060	 	  	 	0.5	 	  	 	2	 	  	 	2	 	  	 	0	 
	 	  	Z	  	 	3700	 	  	 	4240	 	  	 	0.5	 	  	 	2	 	  	 	2	 	  	 	150	 
	 	 Cuerpos Pequenos  
	  	X	  	 	23560	 	  	 	24000	 	  	 	0.5	 	  	 	2	 	  	 	10	 	  	 	0	 
	 	  	Y	  	 	14800	 	  	 	15690	 	  	 	0.5	 	  	 	2	 	  	 	10	 	  	 	0	 
	 	  	Z	  	 	3800	 	  	 	4300	 	  	 	0.5	 	  	 	2	 	  	 	10	 	  	 	0	 
	 	 Elissa
	  	X	  	 	23925	 	  	 	24045	 	  	 	0.5	 	  	 	3	 	  	 	10	 	  	 	0	 
	 	  	Y	  	 	16580	 	  	 	16630	 	  	 	0.5	 	  	 	3	 	  	 	10	 	  	 	0	 
	 	  	Z	  	 	3934	 	  	 	4154	 	  	 	0.5	 	  	 	3	 	  	 	10	 	  	 	230	 

 Source: SRK, 2016 
  

	14.6	Density 

 Density is determined from a series of bulk tests for each area. SRK has
been provided with tabulated densities from Minera Corona, but not the individual density measurements. Detailed documentation exists for the methodology of taking density measurements, which includes immersion methods for core samples as well as
volumetric excavation methods for in-situ material. SRK has reviewed this and notes that the methods as described are reasonable and appropriate for density determination. The densities of the orebodies are
verified through ongoing production. 
 Densities of wall rock or un-mineralized material are
either unassigned or set to a nominal 2.65 g/cm3. 

  
  

					
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 Table 14-7: Densities by Area 

 

					
	               	 	  	    	Density (g/cm3)
	 	 Cachi-Cachi
	    	 
	 	 Angelita
	    	3.64
	 	 Elissa
	    	3.68
	 	 Escondida
	    	3.58
	 	 Karlita
	    	3.70
	 	 Zulma
	    	3.58
	 	 Cuerpos Pequenos 
	    	 
	 	 All Orebodies
	    	3.65
	 	 Mascota
	    	 
	 	 Mascota PbOx
	    	3.48
	 	 Mina Central
	    	 
	 	 Catas
	    	3.82
	 	 Antacaca
	    	3.68
	 	 Rosaura
	    	3.64
	 	 Antacaca Sur
	    	3.78
	 	 Esperanza
	    	 
	 	 Esperanza
	    	3.75

 Source: Corona, 2016 
  

	14.7	Estimation Methodology 

 Both SRK and Gustavson utilize different estimation
methodologies for the various orebodies at Yauricocha. The following describes the methods in general, by the individual areas. 
  

	14.7.1	Gustavson Estimations - Cachi-Cachi and Mascota 

 Gustavson utilized Ordinary
Kriging (OK) in all resource areas. This estimation type was chosen to help decluster the variable channel and drill data densities in the resource areas. Composites from within one body were not allowed to be used to estimate any other body. Search
ellipse distances were determined through analysis of variograms. Individual search distances correspond to resource classification categories. Blocks outside modeled bodies were not estimated. All bodies were estimated using channel and drill hole
sampling. The resource was estimated in three passes for all blocks. All passes utilized ordinary kriging. 
 The estimation
parameters are listed in Table 14-8 for Mascota and Table 14-9 for Cachi-Cachi. 

Table 14-8: Estimation Parameters - Mascota 

 

															
	               	 	Mascota	  	Estimation Pass	 
	 	  	1	 	  	2	 	  	3	 
	 	 Bearing (Z)
	  	 	45	 	  	 	45	 	  	 	45	 
	 	 Plunge (Y)
	  	 	0	 	  	 	0	 	  	 	0	 
	 	 Dip (X)
	  	 	-89	 	  	 	-89	 	  	 	-89	 
	 	 Search radius: Rotated X (m)
	  	 	15	 	  	 	30	 	  	 	60	 
	 	 Search radius - Rotated Y (m)
	  	 	40	 	  	 	80	 	  	 	160	 
	 	 Search radius - Rotated Z (m)
	  	 	7	 	  	 	14	 	  	 	28	 
	 	 Min Composites
	  	 	5	 	  	 	3	 	  	 	1	 
	 	 Max Composites
	  	 	10	 	  	 	10	 	  	 	10	 
	 	
Maximum Composites/Drillhole 
	  	 	2	 	  	 	2	 	  	 	2	 

 Source: SRK, 2016 

  
  

					
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 Table 14-9: Estimation Parameters –
Cachi-Cachi 
  

															
	               	 	Cachi-Cachi	  	Estimation Pass	 
	 	  	1	 	  	2	 	  	3	 
	 	 Bearing (Z)
	  	 	0	 	  	 	0	 	  	 	0	 
	 	 Plunge (Y)
	  	 	0	 	  	 	0	 	  	 	0	 
	 	 Dip (X)
	  	 	0	 	  	 	0	 	  	 	0	 
	 	 Search radius: Rotated X (m)
	  	 	13	 	  	 	26	 	  	 	52	 
	 	 Search radius - Rotated Y (m)
	  	 	13	 	  	 	26	 	  	 	52	 
	 	 Search radius - Rotated Z (m)
	  	 	13	 	  	 	26	 	  	 	52	 
	 	 Min Composites
	  	 	3	 	  	 	3	 	  	 	3	 
	 	 Max Composites
	  	 	9	 	  	 	9	 	  	 	9	 
	 	
Maximum Composites/Drillhole 
	  	 	2	 	  	 	2	 	  	 	2	 

 Source: SRK, 2016 
  

	14.7.2	SRK Estimations – Mina Central, Esperanza, Elissa, Cuerpos Pequenos 

 SRK
utilized Inverse Distance Squared (ID2) in all resource areas. This estimation type was chosen to achieve a reasonably reliable local estimation of grade that does not bias the global resource estimation. Similar to Gustavson’s methodology, SRK
utilized the geology models as hard boundaries in the estimation. Ranges for interpolation were derived from omni-directional variogram analysis or continuity assumptions from site geologists based on underground mining observations. With the
exception of Esperanza, blocks outside of the geological models are not estimated. All estimations utilized both channel and drilling samples, with the exception of Esperanza, which only features drilling. SRK utilized either two or three nested
estimation passes for each area. SRK weighted the estimations by either length of the composites or the horizontal thickness of the composites as appropriate, depending on the orientation of the orebody and the relationship to the drilling angles.

 Esperanza 

SRK estimated Esperanza using a sub-vertical flattened search ellipsoid, with orientations and
dimensions based on the morphology of the orebody. Ranges were generally based on the variograms obtained through omni-directional variogram analysis of the Ag and Cu capped and composited values, which exhibited the least variance. A fourth
estimation pass was used to estimate blocks external to the geology model. This was due to the local presence of a lower-grade halo of mineralization. SRK elected to estimate this, but flag these blocks as Inferred due to the uncertainty in the
geological continuity outside of the main model. A restricted search ellipsoid was also used for this pass to ensure that extrapolation did not result in a disproportionate amount of tonnes. 

Table 14-10: Esperanza SRK Estimation Parameters 

 

																			
	               	 	Esperanza	  	Estimation Pass	 
	 	  	1	 	  	2	 	  	3	 	  	Out	 
	 	 Search radius: Rotated X (m)
	  	 	25	 	  	 	50	 	  	 	100	 	  	 	25	 
	 	 Search radius - Rotated Y (m)
	  	 	25	 	  	 	50	 	  	 	100	 	  	 	25	 
	 	 Search radius - Rotated Z (m)
	  	 	5	 	  	 	10	 	  	 	10	 	  	 	5	 
	 	 Min Composites
	  	 	5	 	  	 	3	 	  	 	1	 	  	 	1	 
	 	 Max Composites
	  	 	10	 	  	 	10	 	  	 	10	 	  	 	10	 
	 	
Maximum Composites/Drillhole 
	  	 	2	 	  	 	2	 	  	 	NA	 	  	 	NA	 

 Source: SRK, 2016 

  
  

					
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 Mina Central 

SRK estimated Mina Central using a flattened ellipsoid, with variable orientations based on a dynamic anisotropy model using the hanging
wall and footwall surfaces of the Mina Central geologic model. This varies the orientation and thickness of the ellipsoid with changes in the orientation and thickness of the orebody, and results in a more geologically reasonable estimation that
follows the contacts. The estimation parameters utilized by SRK for the Mina Central estimation are summarized in Table 14-11. 

Table 14-11: Mina Central Estimation Parameters 

 

									
	               	 	Mina Central	  	Estimation Pass
	 	  	1  	  	2  	  	3  
	 	 Bearing (Z)
	  	Variable (based on mineralization contacts)
	 	 Plunge (Y)
	  
	 	 Dip (X)
	  
	 	 Search radius: Rotated X (m)
	  	25  	  	50  	  	100  
	 	 Search radius - Rotated Y (m)
	  	25  	  	50  	  	100  
	 	 Search radius - Rotated Z (%)
	  	50%  	  	50%  	  	50%  
	 	 Min Composites
	  	5  	  	3  	  	1  
	 	 Max Composites
	  	10  	  	10  	  	10  
	 	
Maximum Composites/Drillhole 
	  	2  	  	2  	  	NA  

 Note: Z radius is a % of the distance between the hanging wall and footwall of the Mina Central Structure

 Source: SRK, 2016 

Elissa 

SRK estimated the Elissa orebody using a flattened ellipsoid, oriented sub-vertically consistent
with the geology model. A single orientation was used. Elissa features a significant amount of channel samples compared to drilling that are used to estimate the mineral resources, and as a result there exists a possibility for the estimation to be
biased towards the clustered channel samples. To mitigate this risk, SRK used octant restrictions to ensure that data would be selected in a spatially representative manner so that the channel sample grades would not be extrapolated significant
distances without support from the drilling. The estimation parameters utilized by SRK for the Elissa Estimation are summarized in Table 14-12. 

Table 14-12: Elissa Estimation Parameters 

 

															
	               	 	Elissa	  	Estimation Pass	 
	 	  	1	 	  	2	 	  	3	 
	 	Bearing (Z)	  	 	230	 	  	 	230	 	  	 	230	 
	 	Plunge (Y)	  	 	0	 	  	 	0	 	  	 	0	 
	 	Dip (X)	  	 	84	 	  	 	84	 	  	 	84	 
	 	Search radius: Rotated X (m)	  	 	25	 	  	 	50	 	  	 	100	 
	 	Search radius - Rotated Y (m)	  	 	25	 	  	 	50	 	  	 	100	 
	 	Search radius - Rotated Z (m)	  	 	5	 	  	 	10	 	  	 	20	 
	 	Min Composites	  	 	3	 	  	 	3	 	  	 	1	 
	 	Max Composites	  	 	10	 	  	 	10	 	  	 	10	 
	 	Maximum Composites/Drillhole 	  	 	2	 	  	 	2	 	  	 	NA	 
	 	Max Samples/Octant	  	 	2	 	  	 	2	 	  	 	2	 
	 	Minimum Octants	  	 	4	 	  	 	5	 	  	 	5	 

 Source: SRK, 2016 

  
  

					
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 Cuerpos Pequenos 

SRK estimated the orebodies comprising the Cuerpos Pequenos areas using a vertical, narrow cigar-shaped ellipsoid, which generally
approximates the orientation of the orebodies. SRK notes that the orebodies themselves are highly variable in their orientation and thickness. A two-pass estimation was utilized to obtain a reasonable and
accurate local estimation in the first pass, and to fill the geological model in the second pass. The estimation parameters utilized by SRK for the Cuerpos Pequenos area are summarized in Table 14-13. 

Table 14-13: Cuerpos Pequenos Estimation Parameters 

 

											
	           	 	 Cuerpos Pequenos	  	Estimation Pass	 
	 	  	1	 	  	2	 
	 	  Bearing (Z)
	  	 	0	 	  	 	0	 
	 	  Plunge (Y)
	  	 	0	 	  	 	0	 
	 	  Dip (X)
	  	 	-90	 	  	 	-90	 
	 	  Search radius: Rotated X (m)
	  	 	50	 	  	 	100	 
	 	  Search radius - Rotated Y (m)
	  	 	25	 	  	 	50	 
	 	  Search radius - Rotated Z (m)
	  	 	25	 	  	 	50	 
	 	  Min Composites
	  	 	3	 	  	 	1	 
	 	  Max Composites
	  	 	10	 	  	 	10	 
	 	  Maximum Composites/Drillhole
	  	 	2	 	  	 	NA	 

  Source: SRK, 2016 
  

	14.8	Model Validation 

 All models have been validated using a minimum of visual and
statistical measures to assess the probability of conditional bias in the estimation. In the case of Esperanza, swath plots were also generated to validate the estimation. SRK is of the opinion that the validation of the models is sufficient for
relying upon them as mineral resources, but notes that the ultimate validation of the models is in the fact that the mine continuously produces material from the areas modeled and projected by the resource estimations. SRK notes that reconciliation
of the production to the resource models is not a consistent part of the current validation methods, but is under consideration by Sierra Metals for future models. 
  

	14.8.1	Visual Comparison 

 Both SRK and Gustavson have conducted visual comparisons of the
composite grades to the block grades in in each model. In general, block grade distributions match well in level and cross section views through the various orebodies. Some of these examples are shown in Figure
14-10 and Figure 14-11. 

  
  

					
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 Figure 14-10: Visual Model Validation – Mina Central

 Cross section +/-5m 

Source: SRK, 2016 

  
  

					
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 Figure 14-11: Visual Model Validation – Esperanza

 Cross section +/-10m 

Source: SRK, 2016 
  

	14.8.2	Comparative Statistics 

 SRK compared the estimated block grades to the composite
grades utilized in the estimation, for the same zones and volumes to ensure that both are representative. SRK weighted the statistics by composite length or horizontal thickness for the composites, and by volume for the blocks. The comparisons for
each area are shown in Table 14-14 through Table 14-19. The tabulated results show that, in almost all cases, the blocks feature a lower or very similar mean to the
composite grades. Where blocks locally exceed the composite grades, SRK notes that these appear to be limited occurrences, and generally the potentially over-estimated areas are in areas, which have been mined previously. SRK is of the opinion that
these results show that there is reasonable agreement between the models and the supporting data, with low risk for global over-estimation. 

  
  

					
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 Table 14-14: Mina Central Block vs.
Composite Statistics 
  

																			
	           	 	 Column 	  	Data	  	  	  	Count 	 	  	Mean	 	  	% Diff.	 
	 	  Ag (g/t)
	  	Blocks
 Composites
	  	 	  	 	1,372,924	 	  	 	37.59	 	  	 	47%	 
	 	  	  	  	 	5,801	 	  	 	55.30	 	  
	 	  Au (g/t)
	  	Blocks
 Composites
	  	 	  	 	1,372,924	 	  	 	0.53	 	  	 	-7%	 
	 	  	  	  	 	5,801	 	  	 	0.49	 	  
	 	  Cu (%)
	  	Blocks
 Composites
	  	 	  	 	1,372,924	 	  	 	0.84	 	  	 	5%	 
	 	  	  	  	 	5,801	 	  	 	0.88	 	  
	 	  Pb (%)
	  	Blocks
 Composites
	  	 	  	 	1,372,924	 	  	 	0.41	 	  	 	129%	 
	 	  	  	  	 	5,801	 	  	 	0.94	 	  
	 	  Zn (%)
	  	Blocks
 Composites
	  	 	  	 	1,372,924	 	  	 	1.85	 	  	 	66%	 
	 	  	  	  	 	5,801	 	  	 	3.07	 	  

 Source: SRK, 2016 

Table 14-15: Esperanza Block vs. Composite Statistics 

 

																			
	           	 	 Column 	  	Data	  	  	  	Count 	 	  	Mean	 	  	% Diff.	 
	 	  Ag (g/t)
	  	Blocks	  	 	  	 	403,901	 	  	 	64.98	 	  	 	7%	 
	 	  	Composites	  	  	 	443	 	  	 	69.23	 	  
	 	  Pb (%)
	  	Blocks	  	 	  	 	403,901	 	  	 	1.07	 	  	 	25%	 
	 	  	Composites	  	  	 	443	 	  	 	1.34	 	  
	 	  Cu (%)
	  	Blocks	  	 	  	 	403,901	 	  	 	1.67	 	  	 	16%	 
	 	  	Composites	  	  	 	443	 	  	 	1.94	 	  
	 	  Zn (%)
	  	Blocks	  	 	  	 	403,901	 	  	 	2.78	 	  	 	16%	 
	 	  	Composites	  	  	 	443	 	  	 	3.24	 	  
	 	  Au (g/t)
	  	Blocks	  	 	  	 	403,901	 	  	 	0.55	 	  	 	-6%	 
	 	  	Composites	  	  	 	443	 	  	 	0.52	 	  

 Source: SRK, 2016 

Table 14-16: Elissa Block vs. Composite Statistics 

 

																			
	           	 	 Column 	  	Data	  	  	  	Count	 	  	Mean	 	  	% Diff.	 
	 	  Ag (g/t)
	  	Blocks	  	 	  	 	17,646	 	  	 	112.69	 	  	 	13%	 
	 	  	Composites	  	  	 	462	 	  	 	126.79	 	  
	 	  Au (g/t)
	  	Blocks	  	 	  	 	17,646	 	  	 	0.21	 	  	 	14%	 
	 	  	Composites	  	  	 	462	 	  	 	0.24	 	  
	 	  Cu (%)
	  	Blocks	  	 	  	 	17,646	 	  	 	0.10	 	  	 	32%	 
	 	  	Composites	  	  	 	462	 	  	 	0.13	 	  
	 	  Pb (%)
	  	Blocks	  	 	  	 	17,646	 	  	 	2.54	 	  	 	3%	 
	 	  	Composites	  	  	 	462	 	  	 	2.60	 	  
	 	  Zn (%)
	  	Blocks	  	 	  	 	17,646	 	  	 	11.16	 	  	 	15%	 
	 	  	Composites	  	  	 	462	 	  	 	12.85	 	  

 Source: SRK, 2016 

  
  

					
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 Table 14-17: Mascota Block vs. Composite
Statistics 
  

																	
	             	 	Column	  	Data	  	Count	 	  	Mean	 	  	% Diff.	 
	 	 Ag (g/t)
	  	Blocks	  	 	76,660	 	  	 	259.42	 	  	 	-3%	 
	 	  	Composites 	  	 	3,514	 	  	 	252.89	 	  
	 	 Au (g/t)
	  	Blocks	  	 	76,660	 	  	 	1.70	 	  	 	0%	 
	 	  	Composites	  	 	3,511	 	  	 	1.70	 	  
	 	 Cu (%)
	  	Blocks	  	 	76,660	 	  	 	0.54	 	  	 	62%	 
	 	  	Composites	  	 	3,514	 	  	 	0.88	 	  
	 	 Pb (%)
	  	Blocks	  	 	76,660	 	  	 	5.01	 	  	 	-3%	 
	 	  	Composites	  	 	3,514	 	  	 	4.88	 	  
	 	 Zn (%)
	  	Blocks	  	 	76,660	 	  	 	0.64	 	  	 	0%	 
	 	  	Composites	  	 	3,514	 	  	 	0.64	 	  

 Source: SRK, 2016 

Table 14-18: Cuerpos Pequenos Block vs. Composite Statistics 

 

																	
	             	 	Column	  	Data	  	Count	 	  	Mean	 	  	% Diff.	 
	 	 Ag (g/t)
	  	Blocks	  	 	91,985	 	  	 	249.72	 	  	 	26%	 
	 	  	Composites	  	 	1,501	 	  	 	313.44	 	  
	 	 Au (g/t)
	  	Blocks	  	 	91,985	 	  	 	0.59	 	  	 	16%	 
	 	  	Composites 	  	 	1,501	 	  	 	0.69	 	  
	 	 Cu (%)
	  	Blocks	  	 	91,985	 	  	 	0.75	 	  	 	25%	 
	 	  	Composites	  	 	1,501	 	  	 	0.94	 	  
	 	 Pb (%)
	  	Blocks	  	 	91,985	 	  	 	6.50	 	  	 	15%	 
	 	  	Composites	  	 	1,501	 	  	 	7.45	 	  
	 	 Zn (%)
	  	Blocks	  	 	91,985	 	  	 	7.46	 	  	 	7%	 
	 	  	Composites	  	 	1,501	 	  	 	8.01	 	  

 Source: SRK, 2016 

Table 14-19: Cachi-Cachi Block vs. Composite Statistics 

 

																	
	             	 	Column	  	Data	  	Count	 	  	Mean	 	  	% Diff.	 
	 	 Ag (g/t)
	  	Blocks	  	 	22,809	 	  	 	56.49	 	  	 	23%	 
	 	  	Composites 	  	 	934	 	  	 	69.47	 	  
	 	 Au (g/t)
	  	Blocks	  	 	22,809	 	  	 	0.46	 	  	 	5%	 
	 	  	Composites	  	 	915	 	  	 	0.48	 	  
	 	 Cu (%)
	  	Blocks	  	 	22,809	 	  	 	0.42	 	  	 	-11%	 
	 	  	Composites	  	 	934	 	  	 	0.37	 	  
	 	 Pb (%)
	  	Blocks	  	 	22,809	 	  	 	1.09	 	  	 	47%	 
	 	  	Composites	  	 	934	 	  	 	1.60	 	  
	 	 Zn (%)
	  	Blocks	  	 	22,809	 	  	 	5.53	 	  	 	6%	 
	 	  	Composites	  	 	934	 	  	 	5.87	 	  

 Source: SRK, 2016 
  

	14.8.3	Swath Plots 

 For the Esperanza orebody, SRK has compiled swath plots to validate
the estimation. A swath plot is a graphical display of the grade distribution derived from a series of bands (8m width in this case), or swaths, generated in the X, Y, and Z orientations through the deposit. Grade variations from the block model are
compared using the swath plot to the distribution derived from the composites. The swath plots for each metal in Esperanza are shown in Figure 14-12, Figure 14-13,
Figure 14-14, Figure 14-15, and Figure 14-16. SRK notes that, in general the estimated grades represent a

  
  

					
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smoothed approximation of the composite grades. The only potential issue noted is that the Zn grades appear to be slightly overestimated on the margins of the deposit to the farthest east, where
data becomes very sparse. SRK considers this a low risk, as this area is dominantly classified as Inferred. 
 Note that SRK did not
produce swath plots for the other orebodies, as their narrow and tabular orientations do not allow for the swath plots as a reasonable comparison, as samples along strike may affect blocks in a different swath and product a perceived bias in the
plot. Esperanza has a wider and less tabular morphology, which makes this comparison more reasonable. 

  
  

					
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 Source: SRK, 2016 

Figure 14-12: Esperanza Ag Swath Plot 

  
  

					
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 Source: SRK, 2016 

Figure 14-13: Esperanza Au Swath Plot 

  
  

					
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 Source: SRK, 2016 

Figure 14-14: Esperanza Cu Swath Plot 

  
  

					
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 Source: SRK, 2016 

Figure 14-15: Esperanza Pb Swath Plot 

  
  

					
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 Source: SRK, 2016 

Figure 14-16: Esperanza Zn Swath Plot 

  
  

					
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	14.9	Resource Classification 

 Mineral resource classification is typically a subjective
concept, and industry best practices suggest that resource classification should consider both the confidence in the geological continuity of the mineralized structures, the quality and quantity of exploration data supporting the estimates and the
geostatistical confidence in the tonnage and grade estimates. Appropriate classification criteria should aim at integrating both concepts to delineate regular areas at similar resource classifications. 

 

	14.9.1	Gustavson Classification 

 The Gustavson estimations for Cachi-Cachi and Mascota
are classified on the basis of the estimation pass in which a block is estimated. In these cases, the sample selection criteria and nested passes result in increasing confidence in the first pass, with decreasing confidence in subsequent passes. The
variable used to flag the pass into the model is called SVOL, and is generally represented by a 1 (Measured), 2 (Indicated), and 3 (Inferred). SRK is of the opinion that this is an appropriate methodology for flagging the resource classification in
Cachi-Cachi and Mascota. 
  

	14.9.2	SRK Classification 

 SRK is satisfied that the geological modeling honors the
current geological information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource evaluation. The sampling information was acquired primarily by core drilling or limited channel sampling. 

The estimated blocks were classified according to: 
  

	 	•	 	Confidence in interpretation of the mineralized zones; 

  

	 	•	 	Number of data (holes or channel samples) used to estimate a block; and, 

  

	 	•	 	Average distance to the composites used to estimate a block. 

 In order to classify
mineralization as a Measured or Indicated Mineral Resource, “the nature, quality, quantity and distribution of data” must be “such as to allow confident interpretation of the geological framework and to reasonably assume the
continuity of gold mineralization.” (CIM Definition Standards on Mineral Resources and Mineral Reserves, December 2005). SRK utilized the following general criteria for classification of the Mineral Resource: 

 

	 	•	 	Measured: Blocks estimated with an average distance of 25 m by at least three drillholes. 

  

	 	•	 	Indicated: Blocks estimated with an average distance of 50 m by at least two drillholes. 

  

	 	•	 	Inferred: All estimated block grades not assigned to the Measured or Indicated categories were assigned to the Inferred category. 

In selected cases, such as Elissa and Mina Central, the blocks were reviewed on long section utilizing the above criteria. Subsequently,
they were flagged using a more generalized polygon that approximated the distribution of the classes on the block by block classification, without permitting local minor changes (such as a few blocks of Inferred in the middle of a large volume of
Indicated) from impacting the reporting of resources or the impending mine design. 

  
  

					
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 Note: Long section looking NE. Red = Measured, Green = Indicated, Blue = Inferred. 

Source: SRK, 2016 

Figure 14-17: Mina Central Classification 

  
  

					
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 Note: Cross section looking NW. Red = Measured, Green = Indicated, Blue = Inferred. 

Source: SRK, 2016 

Figure 14-18: Esperanza Classification 

 
 

 
 Note: Inclined perspective view looking SE. Red = Measured, Green = Indicated, Blue = Inferred. 

Source: SRK, 2016 

Figure 14-19: Cachi-Cachi Classification 

  
  

					
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 Note: Inclined perspective view looking SE. Red = Measured, Green = Indicated, Blue = Inferred. 

Source: SRK, 2016 

Figure 14-20: Cuerpos Pequenos Classification 

 
 

 
 Red = Measured, Green = Indicated, Blue = Inferred 

Source: SRK, 2016 

Figure 14-21: Mascota Classification 

  
  

					
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	14.10	Depletion 

 SRK depleted the block models using provided information on long
sections and cross sections from Minera Corona. These detailed the levels above which the mine considers the material to be completely mined or inaccessible. SRK notes that this is a conservative approach, given that it effectively ignores pillars
or areas, which have not been completely mined. However, SRK agrees with this approach and notes that extensive surveying of previously mined areas would need to be done in order to reasonably incorporate the remaining material above these levels.
The levels corresponding to previous mining depletion are summarized in Table 14-20. All material in each area above these elevations was flagged with a mined variable in the block model, with 1 representing
completely mined, and 0 representing completely available. 
 Table 14-20: Elevations Used
for Depletion 
  

																	
	               	 	Area	 	Mined Elev. (m)	 	 	  	 	 	Area	 	Mined Elev. (m)	 
	 	Andrea	 	 	4164	 	 				 	Cuye Sur	 	 	3962	 
	 	Angelita	 	 	4165	 	 				 	Katty	 	 	3982	 
	 	Elissa	 	 	4084	 	 				 	Marita	 	 	3962	 
	 	Escondida	 	 	4064	 	 				 	Violeta	 	 	3962	 
	 	Karlita	 	 	4100	 	 				 	Julian	 	 	4082	 
	 	Zulma	 	 	4104	 	 				 	Gallito	 	 	4082	 
	 	Contacto Occ.	 	 	3982	 	 				 	Butz	 	 	3982	 
	 	Contacto Ori.	 	 	4032	 	 				 	Pozo Rico	 	 	3932	 
	 	CSM_II	 	 	3982	 	 				 	Mascota PbOx	 	 	3870	 
	 	CSM_I	 	 	3982	 	 				 	Catas/Antacaca	 	 	3982	 
	 	CSM	 	 	3982	 	 				 	Rosaura	 	 	4032	 
	 	Cuye	 	 	3962	 	 	 	 	 	 	Antacaca Sur	 	 	4057	 

 Source: Sierra Metals, 2016 
  

	14.11	Mineral Resource Statement 

 CIM Definition Standards for Mineral Resources and
Mineral Reserves (December 2005) defines a mineral resource as: 
 “A concentration or occurrence of diamonds, natural solid
inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge”. 

The “reasonable prospects for economic extraction” requirement generally implies that the quantity and grade estimates meet
certain economic thresholds and that the Mineral Resources are reported at an appropriate cut-off grade taking into account extraction scenarios and processing recoveries. SRK is of the opinion that the costs
provided by Minera Corona represent the approximate direct marginal mining and processing cost for various mining methods. To satisfy the criteria of reasonable prospect for economic extraction, SRK has calculated unit values for the blocks in the
models based on the grades estimated, metal price assumptions, and metallurgical recovery factors. SRK has done this for both the Gustavson and SRK models. SRK has not edited or amended the Gustavson block models in any way, except to calculate the
unit values, assign updated densities, and deplete for previous production as described above. 

  
  

					
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 The metal price assumptions have been derived from July 19, 2016 BMO Capital
Markets Street Consensus Commodity prices, and are reasonable for the statement of mineral resources and ore reserves. These prices are summarized in Table 14-21. 

Table 14-21: Unit Value Price Assumptions 

 

											
	              
	 	Gold  	  	Silver  	  	Copper  	  	Lead  	  	Zinc  
	 	(US$/oz)  	  	(US$/oz)  	  	(US$/lb)  	  	(US$/lb)  	  	(US$/lb)  
	 	  

1,251.00  
  
	  	  
 16.76  

 
	  	  

2.28  
  
	  	  
 0.86  

 
	  	  

0.94  
  

 Source: Sierra Metals, 2016 

The metallurgical recovery factors are based on actual to-date 2016 metallurgical recoveries for
the various processes and concentrates produced by the Yauricocha mine. SRK has considered that the orebodies stated in mineral resources fall into one of three general categories in terms of process route: polymetallic sulfide, lead oxide, and
copper sulfide. The overwhelming majority of the orebodies are considered as polymetallic sulfide, with limited production from Pb Oxide areas, and only Cuye currently producing Cu Sulfide material. The summary of the recovery discounts applied
during the unit value calculation is shown in Table 14-22. SRK notes that the recoveries stated for the unit value calculations do not consider payability or penalties in the concentrates, as these are
variable and may depend on contracts to be negotiated. 
 Table 14-22: Metallurgical
Recovery Assumptions 
  

																							
	             	 	Process Recovery 	  	Ag (%)	 	  	Au (%)	 	  	Cu (%)	 	  	Pb (%)	 	  	Zn (%)	 
	 	 Polymetallic
	  	 	77	 	  	 	18	 	  	 	76	 	  	 	88	 	  	 	94	 
	 	 Pb Oxide
	  	 	53	 	  	 	24	 	  	 	0	 	  	 	66	 	  	 	0	 
	 	 Cu Sulfide
	  	 	66	 	  	 	35	 	  	 	90	 	  	 	0	 	  	 	0	 

 Source: Sierra Metals, 2016 

The general unit value calculation can then be summarized as the estimated grade of each metal, multiplied by the price (US$/g or
US$/%), multiplied by the process recovery. This yields a dollar value of the block per tonne, which can be utilized to report resources above the break-even costs for mining and processing. Minera Corona has provided these costs to SRK, noting that
they are generalized given the flexibility of the mining methods within each area or individual orebody. For example, several orebodies feature a majority of a specific mining method, but will locally utilize others on necessity, or require adjusted
pumping capacity or ground conditions, which may locally move this cost up or down. SRK considers the application of a single unit value cut-off to each orebody as reasonable. The unit value sub-marginal costs provided by Corona are summarized in Table 14-23. 

  
  

					
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 Table 14-23: Unit Value Cut-off by Mining Method and Area 
  

									
	             	 	Description	  	
Break-Even Cost  

(US$)  
	 	 	Area
	 	Sublevel Caving: Conventional	  	 	40  	 	 	Most of operations
	 	Sublevel Caving: Mechanized, No Water	  	 	38  	 	 	Cuye, Mascota Ox., Karlita  
	 	Sublevel Caving: Mechanized, Low Water	  	 	40  	 	 	Angelita, Catas, Antacaca
	 	Cut and Fill: Overhead Conventional	  	 	51  	 	 	Zulma, Cuerpos Peq.
	 	Cut and fill: Overhead Mechanized	  	 	43  	 	 	Violeta
	 	Cut And Fill: Overhead Mechanized w/ Pillars	  	 	44  	 	 	Elissa, Escondida

 Source: Sierra Metals, 2016 

The December 31, 2015, consolidated audited mineral resource statement for the Mina Central, Cachi-Cachi, Elissa, Mascota, and
Cuerpos Pequenos areas are presented in Table 14-24, Table 14-26, Table 14-27, and Table
14-28, respectively. The June 30, 2016 mineral resource statement for the Esperanza area is presented in Table 14-25. 

  
  

					
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 Table 14-24: Mina Central Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	 	Category  	 	Tonnes (000’s)	 	 	Ag (g/t)	 	 	Au (g/t)	 	 	Cu (%)	 	 	Pb (%)	 	 	Zn (%)	 	 	Ag (koz)	 	 	Au (koz)	 	 	Cu (t)	 	 	Pb (t)	 	 	Zn (t)	 
	
Catas
	 	Measured	 	 	240.5	 	 	 	31	 	 	 	0.85	 	 	 	1.19	 	 	 	0.25	 	 	 	1.18	 	 	 	242	 	 	 	7	 	 	 	2,873	 	 	 	601	 	 	 	2,828	 
	 	Indicated	 	 	1,883.2	 	 	 	36	 	 	 	0.82	 	 	 	0.98	 	 	 	0.12	 	 	 	2.17	 	 	 	2,166	 	 	 	50	 	 	 	18,415	 	 	 	2,330	 	 	 	40,902	 
	 	M + I	 	 	2,123.6	 	 	 	35	 	 	 	0.83	 	 	 	1.00	 	 	 	0.14	 	 	 	2.06	 	 	 	2,409	 	 	 	56	 	 	 	21,288	 	 	 	2,931	 	 	 	43,730	 
	 	Inferred	 	 	1,300.1	 	 	 	30	 	 	 	0.50	 	 	 	0.93	 	 	 	0.07	 	 	 	1.12	 	 	 	1,244	 	 	 	21	 	 	 	12,069	 	 	 	962	 	 	 	14,542	 
	
Antacaca
	 	Measured  	 	 	128.0	 	 	 	36	 	 	 	0.78	 	 	 	0.82	 	 	 	0.47	 	 	 	1.55	 	 	 	148	 	 	 	3	 	 	 	1,049	 	 	 	607	 	 	 	1,979	 
	 	Indicated	 	 	807.1	 	 	 	26	 	 	 	0.53	 	 	 	1.10	 	 	 	0.09	 	 	 	0.92	 	 	 	665	 	 	 	14	 	 	 	8,855	 	 	 	752	 	 	 	7,391	 
	 	M + I	 	 	935.1	 	 	 	27	 	 	 	0.57	 	 	 	1.06	 	 	 	0.15	 	 	 	1.00	 	 	 	813	 	 	 	17	 	 	 	9,904	 	 	 	1,358	 	 	 	9,370	 
	 	Inferred	 	 	470.8	 	 	 	19	 	 	 	0.37	 	 	 	1.12	 	 	 	0.04	 	 	 	0.55	 	 	 	287	 	 	 	6	 	 	 	5,277	 	 	 	209	 	 	 	2,576	 
	
Rosaura
	 	Measured	 	 	84.2	 	 	 	50	 	 	 	0.90	 	 	 	0.43	 	 	 	0.87	 	 	 	3.09	 	 	 	135	 	 	 	2	 	 	 	359	 	 	 	734	 	 	 	2,602	 
	 	Indicated	 	 	552.1	 	 	 	44	 	 	 	0.56	 	 	 	0.75	 	 	 	0.67	 	 	 	1.78	 	 	 	790	 	 	 	10	 	 	 	4,139	 	 	 	3,687	 	 	 	9,829	 
	 	M + I	 	 	636.3	 	 	 	45	 	 	 	0.61	 	 	 	0.71	 	 	 	0.69	 	 	 	1.95	 	 	 	925	 	 	 	12	 	 	 	4,499	 	 	 	4,421	 	 	 	12,431	 
	 	Inferred	 	 	156.0	 	 	 	23	 	 	 	0.42	 	 	 	0.98	 	 	 	0.04	 	 	 	2.05	 	 	 	117	 	 	 	2	 	 	 	1,525	 	 	 	65	 	 	 	3,200	 
	
Antacaca Sur
	 	Measured	 	 	229.9	 	 	 	75	 	 	 	0.91	 	 	 	0.63	 	 	 	1.50	 	 	 	3.70	 	 	 	552	 	 	 	7	 	 	 	1,455	 	 	 	3,438	 	 	 	8,516	 
	 	Indicated	 	 	544.0	 	 	 	44	 	 	 	0.71	 	 	 	0.73	 	 	 	0.31	 	 	 	1.81	 	 	 	762	 	 	 	12	 	 	 	3,971	 	 	 	1,690	 	 	 	9,831	 
	 	M + I	 	 	773.9	 	 	 	53	 	 	 	0.77	 	 	 	0.70	 	 	 	0.66	 	 	 	2.37	 	 	 	1,315	 	 	 	19	 	 	 	5,425	 	 	 	5,128	 	 	 	18,347	 
	 	Inferred	 	 	108.0	 	 	 	21	 	 	 	0.52	 	 	 	1.20	 	 	 	0.08	 	 	 	0.48	 	 	 	72	 	 	 	2	 	 	 	1,295	 	 	 	82	 	 	 	516	 
	
Total
	 	Measured	 	 	682.6	 	 	 	49	 	 	 	0.86	 	 	 	0.84	 	 	 	0.79	 	 	 	2.33	 	 	 	1,078	 	 	 	19	 	 	 	5,736	 	 	 	5,380	 	 	 	15,924	 
	 	Indicated	 	 	3,786.4	 	 	 	36	 	 	 	0.71	 	 	 	0.93	 	 	 	0.22	 	 	 	1.79	 	 	 	4,383	 	 	 	86	 	 	 	35,380	 	 	 	8,460	 	 	 	67,953	 
	 	M + I	 	 	4,468.9	 	 	 	38	 	 	 	0.73	 	 	 	0.92	 	 	 	0.31	 	 	 	1.88	 	 	 	5,461	 	 	 	105	 	 	 	41,116	 	 	 	13,839	 	 	 	83,877	 
	 	Inferred	 	 	2,034.9	 	 	 	26	 	 	 	0.46	 	 	 	0.99	 	 	 	0.06	 	 	 	1.02	 	 	 	1,720	 	 	 	30	 	 	 	20,166	 	 	 	1,317	 	 	 	20,834	 

	 	(1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	(2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

 ** Metallurgical recovery assumptions for the
polymetallic Mina Central area are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	(3)	 The unit value COG for the Mina Central area is a consistent US$40. 

  
  

					
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 Table 14-25: Esperanza Mineral Resource Statement as of
June 30, 2016 – SRK Consulting (U.S.), Inc. 
  

																													
	Area	 	 Category	 	 Tonnes (000’s)  	 	Ag (g/t)  	 	 Au (g/t)  	 	 Cu (%)  	 	 Pb (%)  	 	 Zn (%)  	 	Ag (koz)  	 	Au (koz)  	 	Cu (t)  	 	Pb (t) 	 	 	Zn (t) 	 
	
Esperanza
	 	 Measured  	 	444.4  	 	65  	 	0.44  	 	1.23  	 	1.45  	 	3.38  	 	935  	 	6  	 	5,466  	 	 	6,434 	 	 	 	15,034 	 
	 	 Indicated	 	2,089.6  	 	70  	 	0.58  	 	1.81  	 	1.22  	 	3.20  	 	4,680  	 	39  	 	37,830  	 	 	25,511 	 	 	 	66,916 	 
	 	 M + I	 	2,534.0  	 	69  	 	0.55  	 	1.71  	 	1.26  	 	3.23  	 	5,615  	 	45  	 	43,296  	 	 	31,946 	 	 	 	81,950 	 
	 	 Inferred	 	1,541.8  	 	69  	 	0.63  	 	1.87  	 	0.92  	 	2.49  	 	3,415  	 	31  	 	 28,898  	 	 	14,146 	 	 	 	38,437 	 

	 	(1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	(2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

 ** Metallurgical recovery assumptions for the
polymetallic Esperanza area are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	(3)	 The unit value COG for the Esperanza area is a consistent US$44. 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 110

  
  

 Table 14-26: Cachi-Cachi Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	 	Category  	 	Tonnes (000’s)	 	 	Ag (g/t)	 	 	Au (g/t)	 	 	Cu (%)	 	 	Pb (%)	 	 	Zn (%)	 	 	Ag (koz)	 	 	Au (koz)	 	 	Cu (t)	 	 	Pb (t)	 	 	Zn (t)	 
	
Angelita a
	 	Measured	 	 	50.3	 	 	 	21	 	 	 	0.30	 	 	 	0.38	 	 	 	0.52	 	 	 	5.97	 	 	 	33	 	 	 	0	 	 	 	191	 	 	 	261	 	 	 	3,002	 
	 	Indicated	 	 	176.7	 	 	 	18	 	 	 	0.38	 	 	 	0.39	 	 	 	0.69	 	 	 	5.38	 	 	 	105	 	 	 	2	 	 	 	689	 	 	 	1,219	 	 	 	9,504	 
	 	M + I	 	 	226.9	 	 	 	19	 	 	 	0.36	 	 	 	0.39	 	 	 	0.65	 	 	 	5.51	 	 	 	138	 	 	 	3	 	 	 	880	 	 	 	1,480	 	 	 	12,506	 
	 	Inferred	 	 	54.3	 	 	 	16	 	 	 	0.40	 	 	 	0.48	 	 	 	0.34	 	 	 	5.00	 	 	 	28	 	 	 	1	 	 	 	261	 	 	 	185	 	 	 	2,714	 
	
Karlita c
	 	Measured	 	 	17.8	 	 	 	29	 	 	 	0.66	 	 	 	0.39	 	 	 	0.41	 	 	 	6.94	 	 	 	17	 	 	 	0	 	 	 	69	 	 	 	73	 	 	 	1,232	 
	 	Indicated	 	 	4.0	 	 	 	30	 	 	 	1.00	 	 	 	0.33	 	 	 	0.76	 	 	 	7.42	 	 	 	4	 	 	 	0	 	 	 	13	 	 	 	31	 	 	 	298	 
	 	M + I	 	 	21.8	 	 	 	29	 	 	 	0.72	 	 	 	0.38	 	 	 	0.47	 	 	 	7.03	 	 	 	20	 	 	 	1	 	 	 	83	 	 	 	103	 	 	 	1,530	 
	 	Inferred	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	
Elissa b
	 	Measured  	 	 	4.0	 	 	 	178	 	 	 	0.04	 	 	 	0.12	 	 	 	3.03	 	 	 	14.20	 	 	 	23	 	 	 	0	 	 	 	5	 	 	 	121	 	 	 	568	 
	 	Indicated	 	 	104.8	 	 	 	106	 	 	 	0.22	 	 	 	0.09	 	 	 	2.55	 	 	 	10.65	 	 	 	357	 	 	 	1	 	 	 	92	 	 	 	2,675	 	 	 	11,162	 
	 	M + I	 	 	108.8	 	 	 	109	 	 	 	0.22	 	 	 	0.09	 	 	 	2.57	 	 	 	10.78	 	 	 	380	 	 	 	1	 	 	 	97	 	 	 	2,797	 	 	 	11,730	 
	 	Inferred	 	 	9.5	 	 	 	94	 	 	 	0.33	 	 	 	0.11	 	 	 	2.33	 	 	 	9.04	 	 	 	29	 	 	 	0	 	 	 	10	 	 	 	222	 	 	 	862	 
	
Escondida b
	 	Measured	 	 	68.4	 	 	 	130	 	 	 	0.61	 	 	 	0.30	 	 	 	2.56	 	 	 	5.73	 	 	 	286	 	 	 	1	 	 	 	205	 	 	 	1,750	 	 	 	3,918	 
	 	Indicated	 	 	41.7	 	 	 	200	 	 	 	0.63	 	 	 	0.67	 	 	 	2.30	 	 	 	5.17	 	 	 	268	 	 	 	1	 	 	 	279	 	 	 	958	 	 	 	2,154	 
	 	M + I	 	 	110.0	 	 	 	157	 	 	 	0.62	 	 	 	0.44	 	 	 	2.46	 	 	 	5.52	 	 	 	554	 	 	 	2	 	 	 	484	 	 	 	2,709	 	 	 	6,072	 
	 	Inferred	 	 	5.7	 	 	 	189	 	 	 	0.83	 	 	 	0.68	 	 	 	2.85	 	 	 	8.36	 	 	 	34	 	 	 	0	 	 	 	38	 	 	 	161	 	 	 	473	 
	 Zulma
d
	 	Measured	 	 	8.4	 	 	 	149	 	 	 	0.58	 	 	 	0.28	 	 	 	2.25	 	 	 	10.74	 	 	 	40	 	 	 	0	 	 	 	23	 	 	 	189	 	 	 	900	 
	 	Indicated	 	 	3.8	 	 	 	144	 	 	 	0.65	 	 	 	0.38	 	 	 	2.24	 	 	 	11.94	 	 	 	18	 	 	 	0	 	 	 	14	 	 	 	85	 	 	 	454	 
	 	M + I	 	 	12.2	 	 	 	148	 	 	 	0.60	 	 	 	0.31	 	 	 	2.25	 	 	 	11.11	 	 	 	58	 	 	 	0	 	 	 	38	 	 	 	274	 	 	 	1,354	 
	 	Inferred	 	 	0.1	 	 	 	119	 	 	 	1.15	 	 	 	0.43	 	 	 	2.15	 	 	 	8.88	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	2	 	 	 	9	 
	
Total
	 	Measured	 	 	148.8	 	 	 	84	 	 	 	0.49	 	 	 	0.33	 	 	 	1.61	 	 	 	6.47	 	 	 	400	 	 	 	2	 	 	 	494	 	 	 	2,395	 	 	 	9,620	 
	 	Indicated	 	 	330.9	 	 	 	71	 	 	 	0.37	 	 	 	0.33	 	 	 	1.50	 	 	 	7.12	 	 	 	751	 	 	 	4	 	 	 	1,088	 	 	 	4,968	 	 	 	23,572	 
	 	M + I	 	 	479.7	 	 	 	75	 	 	 	0.41	 	 	 	0.33	 	 	 	1.53	 	 	 	6.92	 	 	 	1,151	 	 	 	6	 	 	 	1,582	 	 	 	7,363	 	 	 	33,193	 
	 	Inferred	 	 	69.6	 	 	 	41	 	 	 	0.43	 	 	 	0.44	 	 	 	0.82	 	 	 	5.83	 	 	 	91	 	 	 	1	 	 	 	309	 	 	 	570	 	 	 	4,057	 

	 	(1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	(2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

 ** Metallurgical recovery assumptions for the
polymetallic Cachi-Cachi area are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn. 

	 	(3)	 The unit value COG for the Cachi-Cachi area is variable. 

	 	a.	 US$40 = Angelita 

	 	b.	 US$44 = Elissa & Escondida 

	 	c.	 US$38 = Karlita 

	 	d.	 US$51 = Zulma 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 111

  
  

  Table 14-27: Mascota Mineral Resource Statement as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	 	Category	  	Tonnes (000’s) 	 	  	Ag (g/t) 	 	  	Au (g/t) 	 	  	Cu (%) 	 	  	Pb (%) 	 	  	Zn (%) 	 	  	Ag (koz) 	 	  	Au (koz) 	 	  	Cu (t) 	 	  	Pb (t) 	 	  	Zn (t) 	 
	 Mascota  
	 	Measured  	  	 	119.0 	 	  	 	206 	 	  	 	1.18 	 	  	 	0.34 	 	  	 	4.75 	 	  	 	0.80 	 	  	 	787 	 	  	 	5 	 	  	 	407 	 	  	 	5,646 	 	  	 	956 	 
	 	Indicated	  	 	119.0 	 	  	 	343 	 	  	 	1.40 	 	  	 	0.43 	 	  	 	4.81 	 	  	 	0.70 	 	  	 	1,310 	 	  	 	5 	 	  	 	510 	 	  	 	5,721 	 	  	 	835 	 
	 	M + I	  	 	237.9 	 	  	 	274 	 	  	 	1.29 	 	  	 	0.39 	 	  	 	4.78 	 	  	 	0.75 	 	  	 	2,098 	 	  	 	10 	 	  	 	918 	 	  	 	11,366 	 	  	 	1,791 	 
	 	Inferred	  	 	9.2 	 	  	 	353 	 	  	 	0.63 	 	  	 	0.85 	 	  	 	2.88 	 	  	 	0.54 	 	  	 	105 	 	  	 	0 	 	  	 	79 	 	  	 	265 	 	  	 	49 	 

	 	 (1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	 (2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

 ** Metallurgical recovery assumptions for the Pb-oxide Mascota area are 53% Ag, 24% Au, 0% Cu, 66% Pb, and 0% Zn. 

	 	 (3)	 The unit value COG for the Mascota area is a consistent US$38. 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 112

  
  

 Table 14-28: Cuerpos Pequenos Mineral Resource Statement as
of December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	 	 Category	 	 Tonnes (000’s) 	 	 	 Ag (g/t) 	 	 	 Au (g/t) 	 	 	 Cu (%) 	 	 	 Pb (%) 	 	 	 Zn (%) 	 	 	 Ag (koz) 	 	 	 Au (koz) 	 	 	 Cu (t) 	 	 	 Pb (t) 	 	 	 Zn (t)	 
	
Contacto Occ. c    
	 	 Measured  	 	 	2.6 	 	 	 	324 	 	 	 	1.38 	 	 	 	0.50 	 	 	 	8.10 	 	 	 	9.92 	 	 	 	27 	 	 	 	0 	 	 	 	13 	 	 	 	213 	 	 	 	261	 
	 	 Indicated	 	 	3.0 	 	 	 	286 	 	 	 	0.76 	 	 	 	0.49 	 	 	 	7.02 	 	 	 	9.73 	 	 	 	28 	 	 	 	0 	 	 	 	15 	 	 	 	214 	 	 	 	296	 
	 	 M + I	 	 	5.7 	 	 	 	304 	 	 	 	1.05 	 	 	 	0.49 	 	 	 	7.52 	 	 	 	9.82 	 	 	 	55 	 	 	 	0 	 	 	 	28 	 	 	 	427 	 	 	 	557	 
	 	 Inferred	 	 	2.4 	 	 	 	249 	 	 	 	0.57 	 	 	 	0.37 	 	 	 	6.51 	 	 	 	10.28 	 	 	 	20 	 	 	 	0 	 	 	 	9 	 	 	 	159 	 	 	 	251	 
	
Contacto Ori. c
	 	 Measured	 	 	5.4 	 	 	 	90 	 	 	 	0.44 	 	 	 	0.50 	 	 	 	1.70 	 	 	 	3.98 	 	 	 	16 	 	 	 	0 	 	 	 	27 	 	 	 	92 	 	 	 	216	 
	 	 Indicated	 	 	3.1 	 	 	 	86 	 	 	 	0.42 	 	 	 	0.49 	 	 	 	1.62 	 	 	 	3.77 	 	 	 	9 	 	 	 	0 	 	 	 	15 	 	 	 	50 	 	 	 	116	 
	 	 M + I	 	 	8.5 	 	 	 	89 	 	 	 	0.43 	 	 	 	0.50 	 	 	 	1.67 	 	 	 	3.90 	 	 	 	24 	 	 	 	0 	 	 	 	43 	 	 	 	143 	 	 	 	333	 
	 	 Inferred	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 CSM
II c
	 	 Measured	 	 	7.1 	 	 	 	336 	 	 	 	0.41 	 	 	 	0.31 	 	 	 	8.26 	 	 	 	7.54 	 	 	 	76 	 	 	 	0 	 	 	 	22 	 	 	 	583 	 	 	 	532	 
	 	 Indicated	 	 	18.2 	 	 	 	558 	 	 	 	0.49 	 	 	 	0.43 	 	 	 	12.84 	 	 	 	10.84 	 	 	 	326 	 	 	 	0 	 	 	 	78 	 	 	 	2,333 	 	 	 	1,969	 
	 	 M + I	 	 	25.2 	 	 	 	496 	 	 	 	0.47 	 	 	 	0.40 	 	 	 	11.56 	 	 	 	9.91 	 	 	 	402 	 	 	 	0 	 	 	 	100 	 	 	 	2,916 	 	 	 	2,501	 
	 	 Inferred	 	 	9.3 	 	 	 	386 	 	 	 	0.42 	 	 	 	0.32 	 	 	 	9.15 	 	 	 	8.20 	 	 	 	116 	 	 	 	0 	 	 	 	29 	 	 	 	855 	 	 	 	766	 
	 CSM I
c
	 	 Measured	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	 Indicated	 	 	1.2 	 	 	 	302 	 	 	 	1.56 	 	 	 	0.20 	 	 	 	15.73 	 	 	 	12.87 	 	 	 	12 	 	 	 	0 	 	 	 	2 	 	 	 	191 	 	 	 	157	 
	 	 M + I	 	 	1.2 	 	 	 	302 	 	 	 	1.56 	 	 	 	0.20 	 	 	 	15.73 	 	 	 	12.87 	 	 	 	12 	 	 	 	0 	 	 	 	2 	 	 	 	191 	 	 	 	157	 
	 	 Inferred	 	 	0.0 	 	 	 	249 	 	 	 	2.06 	 	 	 	0.18 	 	 	 	12.57 	 	 	 	10.34 	 	 	 	0 	 	 	 	0 	 	 	 	0 	 	 	 	4 	 	 	 	3	 
	 CSM c
	 	 Measured	 	 	5.7 	 	 	 	444 	 	 	 	0.74 	 	 	 	0.23 	 	 	 	13.52 	 	 	 	12.04 	 	 	 	82 	 	 	 	0 	 	 	 	13 	 	 	 	775 	 	 	 	690	 
	 	 Indicated	 	 	7.3 	 	 	 	454 	 	 	 	0.71 	 	 	 	0.23 	 	 	 	13.88 	 	 	 	12.45 	 	 	 	106 	 	 	 	0 	 	 	 	17 	 	 	 	1,006 	 	 	 	903	 
	 	 M + I	 	 	13.0 	 	 	 	449 	 	 	 	0.72 	 	 	 	0.23 	 	 	 	13.72 	 	 	 	12.27 	 	 	 	188 	 	 	 	0 	 	 	 	30 	 	 	 	1,781 	 	 	 	1,593	 
	 	 Inferred	 	 	24.1 	 	 	 	421 	 	 	 	1.17 	 	 	 	0.13 	 	 	 	13.11 	 	 	 	10.36 	 	 	 	326 	 	 	 	1 	 	 	 	31 	 	 	 	3,155 	 	 	 	2,494	 
	 Cuye b
	 	 Measured	 	 	2.1 	 	 	 	3 	 	 	 	0.13 	 	 	 	8.51 	 	 	 	0.07 	 	 	 	0.95 	 	 	 	0 	 	 	 	0 	 	 	 	182 	 	 	 	2 	 	 	 	20	 
	 	 Indicated	 	 	3.4 	 	 	 	7 	 	 	 	0.13 	 	 	 	8.05 	 	 	 	0.09 	 	 	 	0.85 	 	 	 	1 	 	 	 	0 	 	 	 	270 	 	 	 	3 	 	 	 	28	 
	 	 M + I	 	 	5.5 	 	 	 	5 	 	 	 	0.13 	 	 	 	8.23 	 	 	 	0.09 	 	 	 	0.89 	 	 	 	1 	 	 	 	0 	 	 	 	452 	 	 	 	5 	 	 	 	49	 
	 	 Inferred	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 Cuye
Sur c
	 	 Measured	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	 Indicated	 	 	1.1 	 	 	 	28 	 	 	 	0.31 	 	 	 	0.24 	 	 	 	0.20 	 	 	 	4.68 	 	 	 	1 	 	 	 	0 	 	 	 	3 	 	 	 	2 	 	 	 	51	 
	 	 M + I	 	 	1.1 	 	 	 	28 	 	 	 	0.31 	 	 	 	0.24 	 	 	 	0.20 	 	 	 	4.68 	 	 	 	1 	 	 	 	0 	 	 	 	3 	 	 	 	2 	 	 	 	51	 
	 	 Inferred	 	 	0.4 	 	 	 	36 	 	 	 	0.31 	 	 	 	0.38 	 	 	 	0.31 	 	 	 	4.45 	 	 	 	1 	 	 	 	0 	 	 	 	2 	 	 	 	1 	 	 	 	19	 
	
Marita c
	 	 Measured	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	 Indicated	 	 	11.3 	 	 	 	67 	 	 	 	0.31 	 	 	 	2.61 	 	 	 	0.26 	 	 	 	4.08 	 	 	 	24 	 	 	 	0 	 	 	 	294 	 	 	 	29 	 	 	 	460	 
	 	 M + I	 	 	11.3 	 	 	 	67 	 	 	 	0.31 	 	 	 	2.61 	 	 	 	0.26 	 	 	 	4.08 	 	 	 	24 	 	 	 	0 	 	 	 	294 	 	 	 	29 	 	 	 	460	 
	 	 Inferred	 	 	13.7 	 	 	 	75 	 	 	 	0.35 	 	 	 	3.11 	 	 	 	0.13 	 	 	 	4.38 	 	 	 	33 	 	 	 	0 	 	 	 	427 	 	 	 	17 	 	 	 	602	 
	
Violeta a
	 	 Measured	 	 	1.5 	 	 	 	177 	 	 	 	0.51 	 	 	 	0.57 	 	 	 	6.85 	 	 	 	18.03 	 	 	 	9 	 	 	 	0 	 	 	 	9 	 	 	 	104 	 	 	 	273	 
	 	 Indicated	 	 	1.4 	 	 	 	192 	 	 	 	0.54 	 	 	 	0.54 	 	 	 	7.24 	 	 	 	16.41 	 	 	 	8 	 	 	 	0 	 	 	 	7 	 	 	 	98 	 	 	 	223	 
	 	 M + I	 	 	2.9 	 	 	 	184 	 	 	 	0.53 	 	 	 	0.55 	 	 	 	7.04 	 	 	 	17.26 	 	 	 	17 	 	 	 	0 	 	 	 	16 	 	 	 	202 	 	 	 	496	 
	 	 Inferred	 	 	0.0 	 	 	 	341 	 	 	 	0.83 	 	 	 	0.37 	 	 	 	9.50 	 	 	 	13.77 	 	 	 	1 	 	 	 	0 	 	 	 	0 	 	 	 	5 	 	 	 	7	 
	
Juliana c
	 	 Measured	 	 	1.4 	 	 	 	40 	 	 	 	0.26 	 	 	 	0.10 	 	 	 	3.31 	 	 	 	5.83 	 	 	 	2 	 	 	 	0 	 	 	 	1 	 	 	 	47 	 	 	 	83	 
	 	 Indicated	 	 	6.8 	 	 	 	43 	 	 	 	0.22 	 	 	 	0.10 	 	 	 	3.82 	 	 	 	6.29 	 	 	 	9 	 	 	 	0 	 	 	 	7 	 	 	 	259 	 	 	 	426	 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 113

  
  

																																															
	Area	 	 Category	 	 Tonnes (000’s) 	 	 	 Ag (g/t) 	 	 	 Au (g/t) 	 	 	 Cu (%) 	 	 	 Pb (%) 	 	 	 Zn (%) 	 	 	 Ag (koz) 	 	 	 Au (koz) 	 	 	 Cu (t) 	 	 	 Pb (t) 	 	 	 Zn (t)	 
	 	 	 M + I	 	 	8.2 	 	 	 	42 	 	 	 	0.23 	 	 	 	0.10 	 	 	 	3.73 	 	 	 	6.21 	 	 	 	11 	 	 	 	0 	 	 	 	8 	 	 	 	306 	 	 	 	509	 
	 	 Inferred	 	 	3.4 	 	 	 	66 	 	 	 	0.07 	 	 	 	0.11 	 	 	 	3.88 	 	 	 	7.06 	 	 	 	7 	 	 	 	0 	 	 	 	4 	 	 	 	131 	 	 	 	239	 
	
Gallito c
	 	 Measured  	 	 	4.0 	 	 	 	103 	 	 	 	0.37 	 	 	 	1.10 	 	 	 	6.71 	 	 	 	10.30 	 	 	 	13 	 	 	 	0 	 	 	 	44 	 	 	 	270 	 	 	 	414	 
	 	 Indicated	 	 	10.1 	 	 	 	108 	 	 	 	0.29 	 	 	 	0.78 	 	 	 	6.62 	 	 	 	9.96 	 	 	 	35 	 	 	 	0 	 	 	 	79 	 	 	 	672 	 	 	 	1,011	 
	 	 M + I	 	 	14.2 	 	 	 	106 	 	 	 	0.31 	 	 	 	0.87 	 	 	 	6.65 	 	 	 	10.06 	 	 	 	48 	 	 	 	0 	 	 	 	124 	 	 	 	942 	 	 	 	1,425	 
	 	 Inferred	 	 	2.2 	 	 	 	163 	 	 	 	0.16 	 	 	 	0.24 	 	 	 	9.90 	 	 	 	11.55 	 	 	 	11 	 	 	 	0 	 	 	 	5 	 	 	 	213 	 	 	 	249	 
	 Butz c
	 	 Measured	 	 	0.1 	 	 	 	52 	 	 	 	0.14 	 	 	 	0.06 	 	 	 	1.64 	 	 	 	2.92 	 	 	 	0 	 	 	 	0 	 	 	 	0 	 	 	 	1 	 	 	 	2	 
	 	 Indicated	 	 	17.8 	 	 	 	60 	 	 	 	0.11 	 	 	 	0.09 	 	 	 	2.89 	 	 	 	5.02 	 	 	 	34 	 	 	 	0 	 	 	 	16 	 	 	 	516 	 	 	 	894	 
	 	 M + I	 	 	17.8 	 	 	 	60 	 	 	 	0.11 	 	 	 	0.09 	 	 	 	2.89 	 	 	 	5.02 	 	 	 	34 	 	 	 	0 	 	 	 	16 	 	 	 	516 	 	 	 	894	 
	 	 Inferred	 	 	33.8 	 	 	 	64 	 	 	 	0.15 	 	 	 	0.10 	 	 	 	2.73 	 	 	 	4.95 	 	 	 	70 	 	 	 	0 	 	 	 	33 	 	 	 	924 	 	 	 	1,674	 
	
Pozo Rico c         
 
	 	 Measured	 	 	4.6 	 	 	 	59 	 	 	 	0.73 	 	 	 	0.14 	 	 	 	2.22 	 	 	 	6.22 	 	 	 	9 	 	 	 	0 	 	 	 	7 	 	 	 	103 	 	 	 	288	 
	 	 Indicated	 	 	31.5 	 	 	 	230 	 	 	 	1.95 	 	 	 	0.22 	 	 	 	6.90 	 	 	 	7.39 	 	 	 	233 	 	 	 	2 	 	 	 	70 	 	 	 	2,172 	 	 	 	2,328	 
	 	 M + I	 	 	36.1 	 	 	 	208 	 	 	 	1.80 	 	 	 	0.21 	 	 	 	6.30 	 	 	 	7.24 	 	 	 	241 	 	 	 	2 	 	 	 	77 	 	 	 	2,275 	 	 	 	2,616	 
	 	 Inferred	 	 	0.1 	 	 	 	232 	 	 	 	0.70 	 	 	 	1.06 	 	 	 	13.28 	 	 	 	18.39 	 	 	 	1 	 	 	 	0 	 	 	 	1 	 	 	 	11 	 	 	 	15	 
	
Total
	 	 Measured	 	 	34.6 	 	 	 	210 	 	 	 	0.56 	 	 	 	0.92 	 	 	 	6.32 	 	 	 	8.02 	 	 	 	234 	 	 	 	1 	 	 	 	319 	 	 	 	2,190 	 	 	 	2,780	 
	 	 Indicated	 	 	116.1 	 	 	 	221 	 	 	 	0.80 	 	 	 	0.75 	 	 	 	6.50 	 	 	 	7.63 	 	 	 	826 	 	 	 	3 	 	 	 	873 	 	 	 	7,545 	 	 	 	8,862	 
	 	 M + I	 	 	150.7 	 	 	 	219 	 	 	 	0.74 	 	 	 	0.79 	 	 	 	6.46 	 	 	 	7.73 	 	 	 	1,060 	 	 	 	4 	 	 	 	1,192 	 	 	 	9,734 	 	 	 	11,640	 
	 	 Inferred	 	 	89.5 	 	 	 	203 	 	 	 	0.49 	 	 	 	0.60 	 	 	 	6.12 	 	 	 	7.06 	 	 	 	585 	 	 	 	1 	 	 	 	541 	 	 	 	5,475 	 	 	 	6,318	 

  

	 	(1)	 Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have
demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper lead and zinc assays were capped where appropriate. 

	 	(2)	 Mineral resources are reported at unit value cut-offs (CoG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable metallurgical recoveries** as a function of grade and relative metal distribution in individual concentrates), generalized mining/processing costs). 

	 	*	 Metal price assumptions considered for the calculation of unit values are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76),
Copper (US$/lb 2.28), Lead (US$/lb 0.86) and Zinc (US$/lb 0.94) 

 ** Metallurgical recovery assumptions for the
Cuerpos Pequenos area are variable. 

	 	  i.	 Metallurgical recovery assumptions for the copper sulfide Cuye area are 66% Ag, 35% Au,90% Cu, 0% Pb, and 0% Zn

	 	 ii.	 Metallurgical recovery assumptions for the Pb-Oxide Contacto Occ. and Violeta
areas are 53% Ag, 24% Au, 0% Cu, 66% Pb, and 0% Zn. 

	 	iii.	 Metallurgical recovery assumptions for the remaining polymetallic areas are 77% Ag, 18% Au, 76% Cu, 88% Pb, and 94% Zn.

	 	(3)	 The unit value COG’s for the Cuerpos Pequenos deposits are variable. 

	 	a.	 US$43 = Violeta 

	 	b.	 US$38 = Cuye 

	 	c.	 US$51 = Contacto Occ., Contacto, Ori., CSM II, CSM I, CSM, Cuye Sur, Marita, Juliana, Gallito, Butz, Pozo Rico

  
  

					
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	14.12	Mineral Resource Sensitivity 

 To demonstrate the sensitivity of the mineral
resource estimations to factors such as changes in commodity prices or mining/processing costs, SRK has produced grade vs. tonnage charts at various unit value cut-offs for each area, for M+I resources only.
This shows that the majority of the mineral resources defined in Mina Central, Esperanza, Cachi-Cachi, and Mascota have some sensitivity to the unit value cut-off (varying in degree between orebody), and that
this should be considered in the context of the impact on changing cost assumptions with respect to the contained M+I Mineral Resources and Ore Reserves. The charts are presented in Figure 14-22, Figure 14-23, Figure 14-24, and Figure 14-25. The simplified tabulated results at US$5 increments are presented in 

It should be noted that the grade tonnage charts for Elissa and the Cuerpos Pequenos are not presented, as the very high grades in these
orebodies effectively yield a straight line or dramatic step changes for the tonnes and grade above almost all reasonable cut-offs. It can be assumed that, in general, these orebodies are not as sensitive to
the range of unit value cut-offs assumed to be relevant for the other areas. 
  

 
 Source: SRK, 2016 

Figure 14-22: M+I Resource Grade Tonnage Chart – Mina Central 

  
  

					
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 Source: SRK, 2016 

Figure 14-23: M+I Resource Grade Tonnage Chart – Esperanza 

  
  

					
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 Source: SRK, 2016 

Figure 14-24: M+I Resource Grade Tonnage Chart – Cachi-Cachi (excl. Elissa) 

  
  

					
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 Figure 14-25: M+I Resource Grade Tonnage Chart – Mascota 

Source: SRK, 2016 
 Table 14-29: M+I Resource Grade Tonnage Table – Mina Central 
  

											
	 	 	  Cut-off  	 	 Avg. Value US$  

(metval)  
	 	  	 Tonnage  

(000’s)  
	 
	 	25  	 	 	86.91  	 	  	 	5,372  	 
	 	30  	 	 	89.76  	 	  	 	5,125  	 
	 	35  	 	 	93.35  	 	  	 	4,823  	 
	 	40  	 	 	97.77  	 	  	 	4,469  	 
	 	45  	 	 	102.52  	 	  	 	4,115  	 
	 	50  	 	 	107.44  	 	  	 	3,777  	 
	 	55  	 	 	112.44  	 	  	 	3,463  	 
	 	60  	 	 	117.4  	 	  	 	3,176  	 
	 	65  	 	 	122.54  	 	  	 	2,904  	 
	 	70  	 	 	127.57  	 	  	 	2,661  	 
	 	75  	 	 	132.49  	 	  	 	2,443  	 

 Source: SRK, 2016 

  
  

					
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 Table 14-30: M+I Resource Grade Tonnage Table –
Esperanza 
  

											
	 	 	  Cut-off  	 	
Avg. Value US$  

(metval)  
	 	  	 Tonnage  

(kt)  
	 
	 	25  	 	 	179.8  	 	  	 	2,567  	 
	 	30  	 	 	180.2  	 	  	 	2,560  	 
	 	35  	 	 	180.65  	 	  	 	2,552  	 
	 	40  	 	 	181.13  	 	  	 	2,544  	 
	 	45  	 	 	181.8  	 	  	 	2,532  	 
	 	50  	 	 	182.4  	 	  	 	2,521  	 
	 	55  	 	 	183.07  	 	  	 	2,507  	 
	 	60  	 	 	183.79  	 	  	 	2,493  	 
	 	65  	 	 	184.56  	 	  	 	2,478  	 
	 	70  	 	 	185.43  	 	  	 	2,459  	 
	 	75  	 	 	186.35  	 	  	 	2,439  	 

 Source: SRK, 2016 

Table 14-31: M+I Resource Grade Tonnage Table – Cachi-Cachi (excl. Elissa) 

 

											
	  	 	  Cut-off  	 	
Avg. Value US$  

(metval)  
	 	  	 Tonnage  

(kt)  
	 
	 	25  	 	 	176.05  	 	  	 	409  	 
	 	30  	 	 	176.36  	 	  	 	408  	 
	 	35  	 	 	177.08  	 	  	 	406  	 
	 	40  	 	 	177.98  	 	  	 	404  	 
	 	45  	 	 	180.6  	 	  	 	396  	 
	 	50  	 	 	182.63  	 	  	 	390  	 
	 	55  	 	 	184.25  	 	  	 	385  	 
	 	60  	 	 	186.15  	 	  	 	380  	 
	 	65  	 	 	189.2  	 	  	 	371  	 
	 	70  	 	 	192.71  	 	  	 	360  	 
	 	75  	 	 	194.86  	 	  	 	354  	 

 Source: SRK, 2016 

Table 14-32: M+I Resource Grade Tonnage Table – Mascota 

 

											
	  	 	  Cut-off  	 	
Avg. Value US$  

(metval)  
	 	  	 Tonnage  

(kt)  
	 
	 	25  	 	 	145.36  	 	  	 	250  	 
	 	30  	 	 	146.98  	 	  	 	246  	 
	 	35  	 	 	148.9  	 	  	 	242  	 
	 	40  	 	 	150.89  	 	  	 	238  	 
	 	45  	 	 	153.24  	 	  	 	233  	 
	 	50  	 	 	155.48  	 	  	 	228  	 
	 	55  	 	 	157.73  	 	  	 	223  	 
	 	60  	 	 	160.35  	 	  	 	217  	 
	 	65  	 	 	162.16  	 	  	 	214  	 
	 	70  	 	 	164.02  	 	  	 	209  	 
	 	75  	 	 	166.14  	 	  	 	205  	 

 Source: SRK, 2016 
  

 

	14.13   Relevant Factors	

 SRK is not aware of any relevant factors which may materially impact the mineral
resources stated herein. 

  
  

					
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	15	Mineral Reserve Estimate 

  

	15.1	Introduction 

 Yauricocha is an operating underground mine with production history
under Minera Corona ownership dating back to 2002. As described in Section 7.3, the significant mineralized zones in the southern area are Mina Central, Mascota and Esperanza. The northern extent, grouped into an area called Cachi-Cachi,
consists of Angelita, Elissa, Escondida, Karlita and Zulma. Smaller but typically higher grade bodies (Cuerpos Pequenos) exist throughout the property as illustrated in Figure 7-3. 

The primary mining methods are sublevel caving, accounting for approximately 84% of tonnage production in 2015, and overhand cut and fill
(11% in 2015). Mining using square sets and other methods are used for the remaining 5%. As described in Section 7.3, material is classified in the mine as polymetallic, oxide and copper ores. Polymetallic ore makes up more than 93% of the
reserve tons. Lead oxide makes up approximately 6% of the reserves. Material classified as copper sulfide or copper oxide can also be encountered, but is a minor component of the overall tons in the reserves estimate. 

 

	15.2	Conversion Assumptions, Parameters and Methods 

 Measured and Indicated Mineral
Resources were converted to Mineral Reserves by applying the appropriate modifying factors, as described herein, to potential mining block shapes created during the mine design process. Given the significant production history at the mine, the
primary basis for the modifying factors used to convert resources to reserves is historical cost, recovery and performance of the selected mining methods at the mine. 

The undiluted tonnage and grade of each potential mining block is based on the resource block models that were either provided to SRK by
Gustavson Associates (Mascota, Cachi-Cachi excluding Elissa) or estimated by SRK (all remaining models), as described in Section 14 of this report. All Mineral Reserve tonnages are expressed as “dry” tons (i.e., no moisture) and are
based on the density values stored in the block model. While some mining blocks consist entirely of Measured and Indicated Mineral Resources, other mining blocks may include small amounts of Inferred Mineral Resources and unclassified material.
Where Inferred and unclassified material has been included in a mining block, such material has been assigned a grade of zero. 

Reserve tons and grade are calculated using the following factors: 

 

	 	●	 	 Mining Recovery: a factor resulting in ore loss (tonnage reduction) due to the mining method applied and the orebody.
The presence of water in the mining area has an impact on the mining recovery. 

  

	 	●	 	 Dilution: a factor resulting in a reduction of the overall average grade due to the mining of waste (planned or
unplanned) with the ore. The dilution factor depends on the mining method and the ore body. The presence of water in the mining area has an impact on the dilution. 

 

	 	●	 	 Grade Adjustment: factors that reduce the grades estimated in the resource block models on a percentage basis. These
factors are based on historic mine to mill reconciliation and vary according to the material type. 

  
  

					
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 The generalized formula for calculating the reserve tonnage in each mining block is: 

Treserve = Tmining block * Mining
Recovery% * (1+Dilution%) 
 The generalized formula for calculating the reserve grade is: 

Greserve = Resource Grademining block *
(1+Adjustment%) / (1+Dilution%) 
  

	15.2.1	Mining Recovery 

 The mining recovery factors used in this report are based on
historical Yauricocha data and are the factors used in the planning processes currently implemented at the site. The mining method, geomechanical characteristics of the body, and presence of water affect the mining recovery applied. Table 15-1 lists the mining recovery factors applied to each ore body based on the mining method. 

  
  

					
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 Table 15-1: Mining Recovery Factors 

 

									
	Area	  	Zone	  	 Mining

Method
	  	Mining Method Description	  	
Mining
 Recovery (%)

	Mina Central	  	Antacaca	  	SLCM2	  	Mechanized Sub Level Caving – Some Water Present	  	80
	  	Antacaca Sur	  	SLCM3	  	Mechanized Sub Level Caving – Water present	  	70
	  	Catas	  	SLCM2	  	Mechanized Sub Level Caving – Some Water Present	  	80
	  	Rosura	  	SLCM3	  	Mechanized Sub Level Caving – Water present	  	70
	Esperanza	  	All	  	SLCM1	  	Mechanized Sub Level Caving – No Water Present	  	90
	Mascota	  	All	  	SLCM1	  	Mechanized Sub Level Caving – No Water Present	  	90
	Cachi-Cachi	  	Angelita	  	SLCM2	  	Mechanized Sub Level Caving – Some Water Present	  	80
	  	Elissa	  	CRAM2	  	Mechanized Overhand Cut and Fill – With Pillars	  	95
	  	Escondida	  	CRAM2	  	Mechanized Overhand Cut and Fill – With Pillars	  	95
	  	Karlita	  	SLCM1	  	Mechanized Sub Level Caving – No Water Present	  	90
	  	Zulma	  	CRAC	  	Conventional Overhand Cut and Fill	  	90
	Cuerpos Pequenos	  	Contacto Occidental (C_OCC)	  	CRAC	  	Conventional Overhand Cut and Fill	  	90
	  	Contacto Oriental (C_ORI)	  	CRAC	  	Conventional Overhand Cut and Fill	  	94
	  	Contacto Sur Medio II (CSM_II)	  	CRAC	  	Conventional Overhand Cut and Fill	  	95
	  	Contacto Sur Medio I (CSM_I)	  	CRAC	  	Conventional Overhand Cut and Fill	  	94
	  	Contacto Sur Medio (CSM)	  	CRAC	  	Conventional Overhand Cut and Fill	  	90
	  	CUYE	  	SLCM1	  	Mechanized Sub Level Caving – No Water Present	  	90
	  	CUYE Sur	  	CRAC	  	Conventional Overhand Cut and Fill	  	95
	  	Marita	  	CRAC	  	Conventional Overhand Cut and Fill	  	90
	  	Violeta	  	CRAC	  	Conventional Overhand Cut and Fill	  	95
	  	Juliana	  	CRAC	  	Conventional Overhand Cut and Fill	  	90
	  	Gallito	  	CRAC	  	Conventional Overhand Cut and Fill	  	94
	  	Butz	  	CRAC	  	Conventional Overhand Cut and Fill	  	88
	  	Pozo Rico	  	CRAC	  	Conventional Overhand Cut and Fill	  	90

 Source: SRK 2016 
  

	15.2.2	Dilution 

 The dilution factors used in this report are based on historical
Yauricocha data and are the factors used in the planning processes currently implemented at the site. The mining method, geomechanical characteristics of the body, and presence of water affect the dilution applied. Table

  
  

					
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15-2 lists the dilution factors applied to each ore body based on the mining method. These factors account for material mined outside of the planned mining
blocks and is in addition to any internal dilution (with zero grade inside a designed mining block). 
 Table
15-2: Dilution Factors 
  

									
	  	  	Area	 	Zone	  	Mining Method  	  	Dilution (%)  
	  	Mina Central	 	Antacaca	  	SLCM2  	  	20  
	  	 	Antacaca Sur    	  	SLCM3  	  	25  
	  	 	Catas	  	SLCM2  	  	20  
	  	 	Rosura	  	SLCM3  	  	25  
	  	Esperanza	 	All	  	SLCM1  	  	20  
	  	Mascota	 	All	  	SLCM1  	  	20  
	  	Cachi-Cachi	 	Angelita	  	SLCM2  	  	20  
	  	 	Elissa	  	CRAM2  	  	10  
	  	 	Escondida	  	CRAM2  	  	10  
	  	 	Karlita	  	SLCM1  	  	20  
	  	 	Zulma	  	CRAC  	  	10  
	  	Cuerpos Pequenos    	 	C_OCC	  	CRAC  	  	10  
	  	 	C_ORI	  	CRAC  	  	10  
	  	 	CSM_II	  	CRAC  	  	10  
	  	 	CSM_I	  	CRAC  	  	10  
	  	 	CSM	  	CRAC  	  	10  
	  	 	CUYE	  	SLCM1  	  	20  
	  	 	CUYE Sur	  	CRAC  	  	10  
	  	 	Marita	  	CRAC  	  	20  
	  	 	Violeta	  	CRAC  	  	10  
	  	 	Juliana	  	CRAC  	  	10  
	  	 	Gallito	  	CRAC  	  	10  
	  	 	Butz	  	CRAC  	  	10  
	  	 	Pozo Rico	  	CRAC  	  	10  

 Source: SRK 2016 
  

	15.2.3	Grade Adjustment 

 Yauricocha uses grade adjustment factors for each metal that
reduce the grade as estimated in the resource block model. These grade adjustment factors are based on historical mine-mill reconciliation statistics. SRK recommends that Minera Corona continue to monitor the performance of its resource estimation
to ensure the grade adjustment factors, detailed in Table 15-3, continue to be reasonable. 

  
  

					
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 Table 15-3: Grade Adjustment Factors 

 

																	
	  	  	Area	 	Zone	  	Material Type	  	Grade Adjustment (%)
	  	 	  	  	Ag  	  	Au  	  	Cu  	  	Pb  	  	Zn  
	  	Mina Central	 	Antacaca	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Antacaca Sur  	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Catas	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Rosura	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	Esperanza	 	All	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	Mascota	 	All	  	Lead Oxide	  	-14  	  	0  	  	-7  	  	-13  	  	-7  
	  	Cachi-Cachi	 	Angelita	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Elissa	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Escondida	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Karlita	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Zulma	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	Cuerpos Pequenos    	 	C_OCC	  	Lead Oxide	  	-14  	  	0  	  	-7  	  	-13  	  	-7  
	  	 	C_ORI	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	CSM_II	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	CSM_I	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	CSM	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	CUYE	  	Copper Sulfide  	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	CUYE Sur	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Marita	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Violeta	  	Lead Oxide	  	-14  	  	0  	  	-7  	  	-13  	  	-7  
	  	 	Juliana	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Gallito	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Butz	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  
	  	 	Pozo Rico	  	Polymetallic	  	-12  	  	0  	  	-10  	  	-8  	  	-9  

 Source: SRK 2016 
  

	15.2.4	Net Smelter Return 

 A net smelter return (NSR) calculation was performed on each
block model block taking into account the adjusted grade, metal price, metallurgical recovery, and the payable metal. The payable metal summarized for this report includes the applicable concentrate treatment charges, refining charges, deductions,
price participation, and penalty element payments. These factors vary by concentrate. 
 The metal price assumptions have been derived
from July 19, 2016 BMO Capital Markets Street Consensus Commodity prices, and in SRK’s opinion are reasonable for the statement of mineral resources and ore reserves. These prices are summarized in Table
15-4. 
 Table 15-4: Unit Value Price Assumptions 

 

											
	  	 	Gold  	 	Silver  	 	Copper  	  	Lead  	 	Zinc  
	 	(US$/oz)  	 	(US$/oz)  	 	(US$/lb)  	  	(US$/lb)  	 	(US$/lb)  
	 	1,251.00  	 	16.76  	 	2.28  	  	0.86  	 	0.94  

 Source: SRK 2016 

Metallurgical recoveries used for reserves are based on data provided by Minera Corona and are summarized in Table 15-5. SRK compared the information provided with metallurgical balance reports, production records and sales data from previous years. The values appear reasonable for the material types at Yauricocha. Gold is
recovered from the ore types at Yauricocha, but it is not 

  
  

					
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routinely tracked through the mill. Production statistics and sales data for the past 18 months were used for the gold recovery assumption. 

Table 15-5: Metallurgical Recoveries 

 

															
	 	 	  	  	Mill Recovery 
(%)1
	 	Material Type	  	Concentrate	  	Ag  	  	Au  	  	Cu  	  	Pb  	  	Zn  
	 	Polymetallic	  	Copper	  	17  	  	9  	  	55  	  	0  	  	0  
	 	  	Lead	  	52  	  	9  	  	0  	  	84  	  	0  
	 	  	Zinc	  	0  	  	0  	  	0  	  	0  	  	90  
	 	  	Total	  	69  	  	18  	  	55  	  	84  	  	90  
	 	Copper Sulfide	  	Total	  	66  	  	35  	  	90  	  	0  	  	0  
	 		  	Sulfide	  	21  	  	16  	  	0  	  	9.2  	  	0  
	 	Lead Oxide	  	Oxide	  	31  	  	24  	  	0  	  	56  	  	0  
	 	 	  	Total	  	53  	  	40  	  	0  	  	66  	  	0  
	 		  	Lead Oxide	  	30  	  	16  	  	0  	  	34  	  	0  
	 	Copper Oxide	  	Copper Oxide	  	22  	  	0  	  	43  	  	0  	  	0  
	 	 	  	Total	  	52  	  	16  	  	43  	  	34  	  	0  

 1 Values of 0 indicate negligible recovery or that the metal is not
payable in the concentrate. Totals may not sum due to rounding. 
 Source: SRK 2016 

Table 15-6 summarizes the average percent payable for each element per material type. Actual
payable metal(s), treatment and refining charges (TC/RC), deductions and penalties were calculated and used in the final NSR value and vary on a block-by-block basis,
based on grade. 
 Table 15-6: Percent Payable 

 

																							
	 	 	Material Type	  	Ag (%)	 	  	Au (%)	 	  	Cu (%)	 	  	Pb (%)	 	  	Zn (%)	 
	 	 Polymetallic
	  	 	88	 	  	 	62	 	  	 	96	 	  	 	95	 	  	 	84	 
	 	 Lead Oxide
	  	 	94	 	  	 	84	 	  	 	0	 	  	 	93	 	  	 	0	 
	 	 Copper Sulfide
	  	 	1	 	  	 	< 1	 	  	 	94	 	  	 	0	 	  	 	0	 

 Source: SRK 2016 
  

	15.2.5	  Cut-off Evaluation 

 The NSR
value of each potential mining block was calculated and evaluated against economic and marginal cutoff values. The economic cutoff varies by mining method and ore body and includes direct and indirect mining costs, processing costs, and general and
administrative costs. Mining blocks with an average NSR value above the economic cut-off, that have defined access, and that are not isolated (i.e., single mining blocks far from other economic blocks) are
classified as economic and included in the reserves. In some cases, marginal blocks, defined as blocks below the economic cutoff but above the cost of direct mining and processing, are included in the reserve if they are in between or immediately
adjacent to economic blocks and it is reasonable to expect that no significant additional development would be required to extract the marginal block. Mining blocks with an NSR value below the marginal cutoff are classified as waste. 

The economic and marginal cutoffs used in this report are provided in Table 15-7. 

  
  

					
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 Table 15-7: Economic and Marginal Cut-offs by Mining Method 
  

																	
	 	  	 Mining

Method
	  	
Direct  
 Mining  

(US$/t)  
	  	
Indirect  
Mining  

(US$/t)  
	  	
Processing  

(US$/t)  
	  	
G&A  

(US$/t)  
	  	
Total  

(US$/t)  
	  	
Economic  
 Cut-off  
 (US$/t)  
	  	
Marginal  
 Cut-off  
 (US$/t)  

	  	 SLCC
	  	31.66  	  	9.59  	  	10.50  	  	6.50  	  	58.25  	  	58.00  	  	40.00  
	  	 SLCM1
	  	29.26  	  	9.59  	  	10.50  	  	6.50  	  	55.85  	  	56.00  	  	38.00  
	  	 SLCM2
	  	31.15  	  	9.59  	  	10.50  	  	6.50  	  	57.74  	  	58.00  	  	40.00  
	  	 SLCM3
	  	28.79  	  	9.59  	  	10.50  	  	6.50  	  	55.38  	  	55.00  	  	38.00  
	  	 CRAC
	  	48.65  	  	9.59  	  	10.50  	  	6.50  	  	75.24  	  	75.00  	  	51.00  
	  	 CRAM1
	  	36.10  	  	9.59  	  	10.50  	  	6.50  	  	62.69  	  	63.00  	  	43.00  

 Source: SRK 2016 

SRK notes that the economic cutoffs used in this report are materially higher than the cut-offs
used in the previously filed Technical Report. The cut-offs contained herein represent SRK’s understanding of the current mining, processing and G&A costs at Yauricocha. 

 

	15.2.6	Mining Block Shapes 

 The mining method used in Mina Central, Mascota and Karlita
is sublevel caving utilizing drawpoints on 8 m centers oriented perpendicular to the general strike of the body. Material is caved from 16.67 m above and recovered in the drawpoint. SRK notes that Minera Corona previously utilized a 25m
sublevel spacing and has transitioned to the smaller 16.67 m spacing due to the geomechanical characteristics of the material. Potential mining blocks for these areas were created by dividing the each body into 16.67 m sublevels (three sublevels per
each 50 m level). The sublevels were further divided into 8m blocks perpendicular to the general strike of the area. The result is a set of potential mining blocks that are 16.67 m high by 8 m wide by the width of the body. It is SRK’s opinion
that this is a reasonable approach for estimating reserves in these areas given the thickness of the ore bodies, the mining method employed, and the relatively low mining selectivity within a drawpoint. 

The mining method used for Esperanza will be sublevel caving. Potential mining blocks were constructed using Maptek Vulcan software and
its implementation of Stope Shape Optimizer produced by Alford Mining Systems. Additional information on the optimization parameters can be found in Section 16.3. 

Stope Shape Optimizer was also used to produce potential mining blocks for Angelita (sublevel caving), Elissa (cut and fill), Escondida
(cut and fill) and Zulma (cut and fill). In the Cuerpos Pequenos ore bodies the mineralized shapes were divided into 2 m to 3 m levels depending on the cut and fill method employed. It is SRK’s opinion that this approach is reasonable given the
mining method and high grade of the Cuerpos Pequenos bodies. 
  

	15.3	Reserve Estimate 

 Mineral Reserves were classified using the 2014 CIM Definition
Standards. The QP for the estimate is Jon Larson, MMSA QP of SRK. 
 The December 31, 2015, consolidated mineral reserve statement
for the Mina Central, Cachi-Cachi, Mascota, and Cuerpos Pequenos areas is presented in Table 15-8, Table 15-10, Table 15-11, and
Table 15-12, respectively. The June 30, 2016 mineral reserve statement for the Esperanza area is presented in Table 15-9. All values are estimated mill feed and
include dilution, recovery, and grade adjustment factors based on mine to mill reconciliation. 

  
  

					
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 Table 15-8: Mina Central Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																																	
	 	 	Area   	 	Category    	 	Tonnes (000’s)   	 	 	Ag (g/t)	 	 	Au (g/t)	 	 	Cu (%)	 	 	Pb (%)	 	 	Zn (%)	 	 	Ag (koz)	 	 	Au (koz)	 	 	Cu (t)	 	 	    Pb (t) 	 	 	     Zn (t) 	 
	 	 Catas
	 	 Proven	 	 	88.6  	 	 	 	29  	 	 	 	0.89 	 	 	 	1.18 	 	 	 	0.24 	 	 	 	1.23 	 	 	 	82 	 	 	 	3 	 	 	 	1,046 	 	 	 	215 	 	 	 	1,086 	 
	 	 	 Probable	 	 	744.9  	 	 	 	32  	 	 	 	0.85 	 	 	 	0.82 	 	 	 	0.12 	 	 	 	2.84 	 	 	 	775 	 	 	 	20 	 	 	 	6,104 	 	 	 	862 	 	 	 	21,126 	 
	 	 	 P+P	 	 	833.5  	 	 	 	32  	 	 	 	0.85 	 	 	 	0.86 	 	 	 	0.13 	 	 	 	2.67 	 	 	 	858 	 	 	 	23 	 	 	 	7,149 	 	 	 	1,077 	 	 	 	22,212 	 
	 	
Antacaca
	 	 Proven	 	 	40.9  	 	 	 	35  	 	 	 	0.83 	 	 	 	0.58 	 	 	 	0.57 	 	 	 	1.71 	 	 	 	46 	 	 	 	1 	 	 	 	238 	 	 	 	232 	 	 	 	700 	 
	 	 	 Probable	 	 	80.1  	 	 	 	30  	 	 	 	0.62 	 	 	 	0.94 	 	 	 	0.20 	 	 	 	1.36 	 	 	 	77 	 	 	 	2 	 	 	 	754 	 	 	 	158 	 	 	 	1,089 	 
	 	 	 P+P	 	 	120.9  	 	 	 	32  	 	 	 	0.69 	 	 	 	0.82 	 	 	 	0.32 	 	 	 	1.48 	 	 	 	123 	 	 	 	3 	 	 	 	992 	 	 	 	391 	 	 	 	1,789 	 
	 	
Rosura
	 	 Proven	 	 	 46.0  	 	 	 	36  	 	 	 	0.77 	 	 	 	0.30 	 	 	 	0.76 	 	 	 	2.51 	 	 	 	53 	 	 	 	1 	 	 	 	137 	 	 	 	348 	 	 	 	1,154 	 
	 	 	 Probable	 	 	 171.9  	 	 	 	53  	 	 	 	0.64 	 	 	 	0.43 	 	 	 	1.06 	 	 	 	2.25 	 	 	 	292 	 	 	 	4 	 	 	 	737 	 	 	 	1,815 	 	 	 	3,871 	 
	 	 	 P+P	 	 	 217.9  	 	 	 	49  	 	 	 	0.67 	 	 	 	0.40 	 	 	 	0.99 	 	 	 	2.31 	 	 	 	345 	 	 	 	5 	 	 	 	874 	 	 	 	2,163 	 	 	 	5,025 	 
	 	
Antacaca Sur
	 	 Proven	 	 	 177.4  	 	 	 	53  	 	 	 	0.70 	 	 	 	0.41 	 	 	 	1.14 	 	 	 	2.69 	 	 	 	303 	 	 	 	4 	 	 	 	731 	 	 	 	2,023 	 	 	 	4,780 	 
	 	 	 Probable	 	 	 228.5  	 	 	 	44  	 	 	 	0.78 	 	 	 	0.59 	 	 	 	0.28 	 	 	 	1.66 	 	 	 	321 	 	 	 	6 	 	 	 	1,355 	 	 	 	633 	 	 	 	3,804 	 
	 	 	 P+P	 	 	 406.0  	 	 	 	48  	 	 	 	0.74 	 	 	 	0.51 	 	 	 	0.65 	 	 	 	2.11 	 	 	 	624 	 	 	 	10 	 	 	 	2,086 	 	 	 	2,656 	 	 	 	8,583 	 
	 	
Total
	 	 Proven	 	 	 352.9  	 	 	 	43  	 	 	 	0.77 	 	 	 	0.61 	 	 	 	0.80 	 	 	 	2.19 	 	 	 	485 	 	 	 	9 	 	 	 	2,152 	 	 	 	2,819 	 	 	 	7,720 	 
	 	 	 Probable	 	 	 1,225.4  	 	 	 	37  	 	 	 	0.79 	 	 	 	0.73 	 	 	 	0.28 	 	 	 	2.44 	 	 	 	1,465 	 	 	 	31 	 	 	 	8,950 	 	 	 	3,469 	 	 	 	29,890 	 
	 	 	 P+P	 	 	 1,578.2  	 	 	 	38  	 	 	 	0.79 	 	 	 	0.70 	 	 	 	0.40 	 	 	 	2.38 	 	 	 	1,950 	 	 	 	40 	 	 	 	11,102 	 	 	 	6,287 	 	 	 	37,610 	 

  

	 	    (1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	    (2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

   ** Grade adjustments (reductions) are based
on historical mine to mill reconciliation and are 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn. 
   *** Metallurgical recovery
assumptions for the area are 69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn (polymetallic material). 

	 	    (3)	 The NSR CoG for the area is variable by area. 

	 	a.	US$58 = Catas, Antacaca 

	 	b.	US$55 = Rosura, Antacaca Sur 

	 	    (4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	Mining recovery applied is variable by area: 

	 	 i.	80% = Catas, Antacaca 

	 	ii.	70% = Rosura, Antacaca Sur 

	 	b.	Mining dilution, applied with a zero grade, is variable by area: 

	 	 i.	20% = Catas, Antacaca 

	 	ii.	25% = Rosura, Antacaca Sur 

  
  

					
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 Table 15-9: Esperanza Mineral Reserve Estimate as of
June 30, 2016 – SRK Consulting (U.S.), Inc. 
  

																																																	
	  	 	  Area	 	 Category   	 	  Tonnes (000’s)  	 	 	   Ag (g/t)	 	 	Au (g/t)  	 	 	 Cu (%) 	 	 	 Pb (%) 	 	 	 Zn (%) 	 	 	 Ag (koz) 	 	 	 Au (koz) 	 	 	 Cu (t) 	 	 	 Pb (t) 	 	 	 Zn (t) 	 
	 	
  Esperanza 
	 	 Proven	 	 	230.3  	 	 	 	50  	 	 	 	0.34 	 	 	 	0.85 	 	 	 	1.33 	 	 	 	3.07 	 	 	 	371 	 	 	 	3 	 	 	 	1,956 	 	 	 	3,055 	 	 	 	7,075 	 
	 	 	 Probable	 	 	 1,289.7  	 	 	 	52  	 	 	 	0.44 	 	 	 	1.26 	 	 	 	1.09 	 	 	 	2.84 	 	 	 	2,161 	 	 	 	18 	 	 	 	16,291 	 	 	 	14,023 	 	 	 	36,565 	 
	 	 	 P+P	 	 	 1,520.0  	 	 	 	52  	 	 	 	0.43 	 	 	 	1.20 	 	 	 	1.12 	 	 	 	2.87 	 	 	 	2,532 	 	 	 	21 	 	 	 	18,247 	 	 	 	17,078 	 	 	 	43,640 	 

  

	 	(1)	All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding. 

	 	(2)	Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource model**, metallurgical recovery assumptions***, mining costs, processing costs, general and
administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions) are based on historical mine to
mill reconciliation and are 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn. 
 *** Metallurgical recovery assumptions for the area are 69% Ag, 18% Au, 55%
Cu, 84% Pb, and 90% Zn (polymetallic material). 

	 	(3)	The NSR CoG for the area is US$56. 

	 	(4)	Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	Mining recovery applied is 90%. 

	 	b.	Mining dilution, applied with a zero grade, is 20%. 

  
  

					
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 Table 15-10: Cachi-Cachi Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																															
	Area	 	 Category  	 	 Tonnes (000’s) 	 	 	 Ag (g/t) 	 	 	 Au (g/t) 	 	 	 Cu (%) 	 	 	 Pb (%) 	 	 	 Zn (%) 	 	 	 Ag (koz) 	 	 	 Au (koz) 	 	 	 Cu (t) 	 	 	 Pb (t) 	 	 	 Zn (t) 	 
	 Angelita
	 	 Proven	 	 	36.6 	 	 	 	17 	 	 	 	0.25 	 	 	 	0.27 	 	 	 	0.46 	 	 	 	5.26 	 	 	 	20 	 	 	 	0 	 	 	 	99 	 	 	 	166 	 	 	 	1,925 	 
	 	 Probable	 	 	78.9 	 	 	 	14 	 	 	 	0.33 	 	 	 	0.25 	 	 	 	0.65 	 	 	 	4.68 	 	 	 	37 	 	 	 	1 	 	 	 	200 	 	 	 	514 	 	 	 	3,696 	 
	 	 P+P	 	 	115.5 	 	 	 	15 	 	 	 	0.31 	 	 	 	0.26 	 	 	 	0.59 	 	 	 	4.87 	 	 	 	56 	 	 	 	1 	 	 	 	299 	 	 	 	680 	 	 	 	5,621 	 
	
Karlita
	 	 Proven	 	 	15.7 	 	 	 	18 	 	 	 	0.42 	 	 	 	0.27 	 	 	 	0.25 	 	 	 	5.74 	 	 	 	9 	 	 	 	0 	 	 	 	42 	 	 	 	40 	 	 	 	900 	 
	 	 Probable	 	 	3.9 	 	 	 	19 	 	 	 	0.66 	 	 	 	0.21 	 	 	 	0.56 	 	 	 	5.79 	 	 	 	2 	 	 	 	0 	 	 	 	8 	 	 	 	22 	 	 	 	227 	 
	 	 P+P	 	 	19.6 	 	 	 	18 	 	 	 	0.47 	 	 	 	0.25 	 	 	 	0.31 	 	 	 	5.75 	 	 	 	12 	 	 	 	0 	 	 	 	50 	 	 	 	62 	 	 	 	1,127 	 
	 Elissa
	 	 Proven	 	 	3.8 	 	 	 	132 	 	 	 	0.04 	 	 	 	0.09 	 	 	 	2.41 	 	 	 	10.71 	 	 	 	16 	 	 	 	0 	 	 	 	4 	 	 	 	92 	 	 	 	410 	 
	 	 Probable	 	 	86.2 	 	 	 	85 	 	 	 	0.19 	 	 	 	0.06 	 	 	 	2.21 	 	 	 	8.82 	 	 	 	236 	 	 	 	1 	 	 	 	54 	 	 	 	1,902 	 	 	 	7,603 	 
	 	 P+P	 	 	90.1 	 	 	 	87 	 	 	 	0.18 	 	 	 	0.06 	 	 	 	2.21 	 	 	 	8.90 	 	 	 	253 	 	 	 	1 	 	 	 	58 	 	 	 	1,995 	 	 	 	8,012 	 
	
Escondida    
	 	 Proven	 	 	49.9 	 	 	 	121 	 	 	 	0.64 	 	 	 	0.29 	 	 	 	2.53 	 	 	 	5.62 	 	 	 	194 	 	 	 	1 	 	 	 	144 	 	 	 	1,262 	 	 	 	2,801 	 
	 	 Probable	 	 	37.3 	 	 	 	170 	 	 	 	0.57 	 	 	 	0.60 	 	 	 	1.89 	 	 	 	4.22 	 	 	 	204 	 	 	 	1 	 	 	 	224 	 	 	 	704 	 	 	 	1,576 	 
	 	 P+P	 	 	87.2 	 	 	 	142 	 	 	 	0.61 	 	 	 	0.42 	 	 	 	2.25 	 	 	 	5.02 	 	 	 	399 	 	 	 	2 	 	 	 	368 	 	 	 	1,966 	 	 	 	4,377 	 
	 Zulma
	 	 Proven	 	 	5.4 	 	 	 	117 	 	 	 	0.48 	 	 	 	0.23 	 	 	 	1.86 	 	 	 	9.29 	 	 	 	20 	 	 	 	0 	 	 	 	12 	 	 	 	101 	 	 	 	504 	 
	 	 Probable	 	 	2.5 	 	 	 	105 	 	 	 	0.49 	 	 	 	0.36 	 	 	 	1.51 	 	 	 	9.04 	 	 	 	8 	 	 	 	0 	 	 	 	9 	 	 	 	38 	 	 	 	226 	 
	 	 P+P	 	 	7.9 	 	 	 	113 	 	 	 	0.48 	 	 	 	0.27 	 	 	 	1.75 	 	 	 	9.21 	 	 	 	29 	 	 	 	0 	 	 	 	21 	 	 	 	139 	 	 	 	731 	 
	
Total
	 	 Proven	 	 	111.4 	 	 	 	73 	 	 	 	0.45 	 	 	 	0.27 	 	 	 	1.49 	 	 	 	5.87 	 	 	 	260 	 	 	 	2 	 	 	 	300 	 	 	 	1,662 	 	 	 	6,541 	 
	 	 Probable	 	 	208.9 	 	 	 	73 	 	 	 	0.32 	 	 	 	0.24 	 	 	 	1.52 	 	 	 	6.38 	 	 	 	488 	 	 	 	2 	 	 	 	496 	 	 	 	3,180 	 	 	 	13,328 	 
	 	 P+P	 	 	320.3 	 	 	 	73 	 	 	 	0.37 	 	 	 	0.25 	 	 	 	1.51 	 	 	 	6.20 	 	 	 	748 	 	 	 	4 	 	 	 	796 	 	 	 	4,842 	 	 	 	19,869 	 

	 	(1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions) are based on historical
mine to mill reconciliation and are 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn. 
 *** Metallurgical recovery assumptions for the area are
69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn (polymetallic material). 

	 	(3)	 The NSR CoG for the area is variable by area. 

	 	a.	 US$75 = Zulma 

	 	b.	 US$64 = Elissa, Escondida 

	 	c.	 US$58 = Angelita 

	 	d.	 US$56 = Karlita 

	 	(4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	 Mining recovery applied is variable by area: 

	 	  i.	 90% = Zulma, Karlita 

	 	 ii.	 95% = Elissa, Escondida 

	 	iii.	 80% = Angelita 

	 	b.	 Mining dilution, applied with a zero grade, is variable by area: 

	 	  i.	 10% = Zulma, Elissa, Escondida 

	 	 ii.	 20% = Angelita, Karlita 

  
  

					
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 Table 15-11: Mascota Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																													
	Area	 	 Category	 	  Tonnes (000’s)  	 	 Ag (g/t)  	 	 Au (g/t)  	 	 Cu (%)  	 	 Pb (%)  	 	 Zn (%)  	 	  Ag (koz)  	 	 Au (koz  	 	 Cu (t)  	 	 Pb (t) 	 	 	 Zn (t)	 
	
Mascota
	 	 Proven	 	120.5  	 	165  	 	1.12  	 	0.27  	 	3.60  	 	0.47  	 	639  	 	4  	 	321  	 	 	4,342 	 	 	 	572	 
	 	 Probable   	 	106.0  	 	230  	 	1.12  	 	0.30  	 	3.25  	 	0.44  	 	783  	 	4  	 	320  	 	 	3,448 	 	 	 	469	 
	 	 P+P	 	226.5  	 	195  	 	1.12  	 	0.28  	 	3.44  	 	0.46  	 	1,422  	 	8  	 	641  	 	 	7,790 	 	 	 	1,041	 

	 	(1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions) are based on historical
mine to mill reconciliation and are 14% Ag, 0% Au, 7% Cu, 13% Pb, and 7% Zn. 
 *** Metallurgical recovery assumptions for the area are
53% Ag, 40% Au, 0% Cu, 66% Pb, and 0% Zn (lead oxide material). 

	 	(3)	 The NSR CoG for the area is US$56. 

	 	(4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.     Mining	 recovery applied is 90%. 

	 	b.     Mining	 dilution, applied with a zero grade, is 20%. 

	 	(5)	 The application of mining recovery and dilution (applied at a zero grade) results, in some cases, in higher tonnage and
lower grade in reserves when compared to resources in relatively high grade bodies. 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 130

  
  

 Table 15-12: Cuerpos Pequenos Mineral Reserve Estimate as of
December 31, 2015 – SRK Consulting (U.S.), Inc. 
  

																																																	
	Area	 	 Category  	 	 Tonnes (000’s) 	 	 	 Ag (g/t) 	 	 	 Au (g/t) 	 	 	 Cu (%) 	 	 	 Pb (%) 	 	 	 Zn (%) 	 	 	 Ag (koz) 	 	 	 Au (koz) 	 	 	 Cu (t) 	 	 	 Pb (t) 	 	 	 Zn (t) 	 	 	 
	
Contacto Occ.    
	 	 Proven	 	 	2.6 	 	 	 	240 	 	 	 	1.19 	 	 	 	0.40 	 	 	 	6.02 	 	 	 	7.92 	 	 	 	20 	 	 	 	0 	 	 	 	10 	 	 	 	157 	 	 	 	206 	 	 
	 	 Probable	 	 	2.9 	 	 	 	207 	 	 	 	0.64 	 	 	 	0.38 	 	 	 	5.09 	 	 	 	7.55 	 	 	 	19 	 	 	 	0 	 	 	 	11 	 	 	 	146 	 	 	 	216 	 	 
	 	 P+P	 	 	5.5 	 	 	 	223 	 	 	 	0.90 	 	 	 	0.39 	 	 	 	5.53 	 	 	 	7.72 	 	 	 	39 	 	 	 	0 	 	 	 	21 	 	 	 	302 	 	 	 	422 	 	 
	 Contacto Ori.
	 	 Proven	 	 	3.2 	 	 	 	99 	 	 	 	0.49 	 	 	 	0.48 	 	 	 	1.72 	 	 	 	3.72 	 	 	 	10 	 	 	 	0 	 	 	 	15 	 	 	 	55 	 	 	 	119 	 	 
	 	 Probable	 	 	1.2 	 	 	 	115 	 	 	 	0.55 	 	 	 	0.55 	 	 	 	1.94 	 	 	 	4.16 	 	 	 	4 	 	 	 	0 	 	 	 	6 	 	 	 	22 	 	 	 	48 	 	 
	 	 P+P	 	 	4.3 	 	 	 	103 	 	 	 	0.51 	 	 	 	0.50 	 	 	 	1.78 	 	 	 	3.84 	 	 	 	14 	 	 	 	0 	 	 	 	22 	 	 	 	77 	 	 	 	167 	 	 
	 CSM
II
	 	 Proven	 	 	7.3 	 	 	 	252 	 	 	 	0.35 	 	 	 	0.23 	 	 	 	6.48 	 	 	 	5.90 	 	 	 	59 	 	 	 	0 	 	 	 	17 	 	 	 	472 	 	 	 	430 	 	 
	 	 Probable	 	 	19.5 	 	 	 	403 	 	 	 	0.40 	 	 	 	0.32 	 	 	 	9.68 	 	 	 	8.09 	 	 	 	252 	 	 	 	0 	 	 	 	62 	 	 	 	1,887 	 	 	 	1,576 	 	 
	 	 P+P	 	 	26.8 	 	 	 	362 	 	 	 	0.38 	 	 	 	0.29 	 	 	 	8.81 	 	 	 	7.49 	 	 	 	311 	 	 	 	0 	 	 	 	79 	 	 	 	2,359 	 	 	 	2,007 	 	 
	 CSM I
	 	 Proven	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 
	 	 Probable	 	 	1.2 	 	 	 	227 	 	 	 	1.30 	 	 	 	0.15 	 	 	 	12.35 	 	 	 	10.01 	 	 	 	9 	 	 	 	0 	 	 	 	2 	 	 	 	153 	 	 	 	124 	 	 
	 	 P+P	 	 	1.2 	 	 	 	227 	 	 	 	1.30 	 	 	 	0.15 	 	 	 	12.35 	 	 	 	10.01 	 	 	 	9 	 	 	 	0 	 	 	 	2 	 	 	 	153 	 	 	 	124 	 	 
	
CSM
	 	 Proven	 	 	5.7 	 	 	 	339 	 	 	 	0.64 	 	 	 	0.18 	 	 	 	10.80 	 	 	 	9.53 	 	 	 	62 	 	 	 	0 	 	 	 	10 	 	 	 	616 	 	 	 	543 	 	 
	 	 Probable	 	 	8.2 	 	 	 	298 	 	 	 	0.53 	 	 	 	0.15 	 	 	 	9.53 	 	 	 	8.43 	 	 	 	78 	 	 	 	0 	 	 	 	13 	 	 	 	778 	 	 	 	688 	 	 
	 	 P+P	 	 	13.9 	 	 	 	315 	 	 	 	0.57 	 	 	 	0.16 	 	 	 	10.05 	 	 	 	8.88 	 	 	 	140 	 	 	 	0 	 	 	 	23 	 	 	 	1,394 	 	 	 	1,231 	 	 
	 CUYE
	 	 Proven	 	 	2.3 	 	 	 	2 	 	 	 	0.11 	 	 	 	6.09 	 	 	 	0.05 	 	 	 	0.69 	 	 	 	0 	 	 	 	0 	 	 	 	139 	 	 	 	1 	 	 	 	16 	 	 
	 	 Probable	 	 	3.5 	 	 	 	5 	 	 	 	0.10 	 	 	 	5.57 	 	 	 	0.07 	 	 	 	0.60 	 	 	 	1 	 	 	 	0 	 	 	 	195 	 	 	 	2 	 	 	 	21 	 	 
	 	 P+P	 	 	5.8 	 	 	 	4 	 	 	 	0.10 	 	 	 	5.77 	 	 	 	0.06 	 	 	 	0.63 	 	 	 	1 	 	 	 	0 	 	 	 	334 	 	 	 	4 	 	 	 	37 	 	 
	
Marita
	 	 Proven	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 
	 	 Probable	 	 	11.2 	 	 	 	43 	 	 	 	0.25 	 	 	 	1.66 	 	 	 	0.19 	 	 	 	2.95 	 	 	 	16 	 	 	 	0 	 	 	 	186 	 	 	 	21 	 	 	 	331 	 	 
	 	 P+P	 	 	11.2 	 	 	 	43 	 	 	 	0.25 	 	 	 	1.66 	 	 	 	0.19 	 	 	 	2.95 	 	 	 	16 	 	 	 	0 	 	 	 	186 	 	 	 	21 	 	 	 	331 	 	 
	 Juliana
	 	 Proven	 	 	1.4 	 	 	 	26 	 	 	 	0.20 	 	 	 	0.07 	 	 	 	2.21 	 	 	 	3.89 	 	 	 	1 	 	 	 	0 	 	 	 	1 	 	 	 	31 	 	 	 	55 	 	 
	 	 Probable	 	 	5.8 	 	 	 	30 	 	 	 	0.18 	 	 	 	0.07 	 	 	 	2.79 	 	 	 	4.57 	 	 	 	6 	 	 	 	0 	 	 	 	4 	 	 	 	161 	 	 	 	264 	 	 
	 	 P+P	 	 	7.2 	 	 	 	29 	 	 	 	0.18 	 	 	 	0.07 	 	 	 	2.67 	 	 	 	4.44 	 	 	 	7 	 	 	 	0 	 	 	 	5 	 	 	 	192 	 	 	 	319 	 	 
	
Gallito
	 	 Proven	 	 	4.2 	 	 	 	76 	 	 	 	0.31 	 	 	 	0.82 	 	 	 	5.20 	 	 	 	7.87 	 	 	 	10 	 	 	 	0 	 	 	 	34 	 	 	 	216 	 	 	 	327 	 	 
	 	 Probable	 	 	10.6 	 	 	 	77 	 	 	 	0.23 	 	 	 	0.57 	 	 	 	4.96 	 	 	 	7.39 	 	 	 	26 	 	 	 	0 	 	 	 	60 	 	 	 	525 	 	 	 	783 	 	 
	 	 P+P	 	 	14.7 	 	 	 	77 	 	 	 	0.25 	 	 	 	0.64 	 	 	 	5.03 	 	 	 	7.53 	 	 	 	36 	 	 	 	0 	 	 	 	94 	 	 	 	741 	 	 	 	1,109 	 	 
	 Butz
	 	 Proven	 	 	0.1 	 	 	 	40 	 	 	 	0.13 	 	 	 	0.05 	 	 	 	1.32 	 	 	 	2.33 	 	 	 	0 	 	 	 	0 	 	 	 	0 	 	 	 	1 	 	 	 	1 	 	 
	 	 Probable	 	 	14.1 	 	 	 	45 	 	 	 	0.09 	 	 	 	0.07 	 	 	 	2.35 	 	 	 	4.01 	 	 	 	21 	 	 	 	0 	 	 	 	10 	 	 	 	332 	 	 	 	566 	 	 
	 	 P+P	 	 	14.2 	 	 	 	45 	 	 	 	0.09 	 	 	 	0.07 	 	 	 	2.35 	 	 	 	4.01 	 	 	 	21 	 	 	 	0 	 	 	 	10 	 	 	 	333 	 	 	 	567 	 	 
	 Pozo
Rico
	 	 Proven	 	 	4.8 	 	 	 	46 	 	 	 	0.65 	 	 	 	0.11 	 	 	 	1.82 	 	 	 	5.05 	 	 	 	7 	 	 	 	0 	 	 	 	5 	 	 	 	87 	 	 	 	241 	 	 
	 	 Probable 	 	 	32.4 	 	 	 	180 	 	 	 	1.74 	 	 	 	0.18 	 	 	 	5.66 	 	 	 	5.97 	 	 	 	188 	 	 	 	2 	 	 	 	58 	 	 	 	1,836 	 	 	 	1,936 	 	 
	 	 P+P	 	 	37.2 	 	 	 	163 	 	 	 	1.60 	 	 	 	0.17 	 	 	 	5.17 	 	 	 	5.86 	 	 	 	195 	 	 	 	2 	 	 	 	63 	 	 	 	1,923 	 	 	 	2,177 	 	 
	 Total
	 	 Proven	 	 	31.4 	 	 	 	168 	 	 	 	0.50 	 	 	 	0.74 	 	 	 	5.20 	 	 	 	6.16 	 	 	 	170 	 	 	 	1 	 	 	 	233 	 	 	 	1,635 	 	 	 	1,938 	 	 
	 	 Probable	 	 	110.5 	 	 	 	174 	 	 	 	0.73 	 	 	 	0.55 	 	 	 	5.31 	 	 	 	5.93 	 	 	 	620 	 	 	 	3 	 	 	 	606 	 	 	 	5,863 	 	 	 	6,553 	 	 
	 	 P+P	 	 	142.0 	 	 	 	173 	 	 	 	0.68 	 	 	 	0.59 	 	 	 	5.28 	 	 	 	5.98 	 	 	 	790 	 	 	 	3 	 	 	 	839 	 	 	 	7,498 	 	 	 	8,491 	 	 

	 	(1)	 All figures rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.

	 	(2)	 Ore reserves are reported at NSR cutoffs (CoG) based on metal price assumptions*, grade adjustments made to the resource
model**, metallurgical recovery assumptions***, mining costs, processing costs, general and administrative (G&A) costs, and treatment and refining charges. 

	 	*	 Metal price assumptions considered for the calculation of NSR are: Gold (US$/oz 1,251.00), Silver (US$/oz 16.76), Copper
(US$/lb 2.28), Lead (US$/lb 0.86), and Zinc (US$/lb 0.94) 

 ** Grade adjustments (reductions) are based on historical
mine to mill reconciliation and are variable: 

	 	a.	 14% Ag, 0% Au, 7% Cu, 13% Pb, and 7% Zn = Contacto Occ. 

	 	b.	 12% Ag, 0% Au, 10% Cu, 8% Pb, and 9% Zn = All others 

*** Metallurgical recovery assumptions for the area are variable: 

	 	c.	 53% Ag, 40% Au, 0% Cu, 66% Pb, and 0% Zn = Contacto Occ. (lead oxide material) 

	 	d.	 66% Ag, 35% Au, 90% Cu, 0% Pb, and 0% Zn = CUYE (copper sulfide material) 

	 	e.	 69% Ag, 18% Au, 55% Cu, 84% Pb, and 90% Zn = All others (polymetallic material) 

	 	(3)	 The NSR CoG for the areas is variable. 

	 	a.	 US$56 = CUYE 

	 	b.	 US$75 = All others 

	 	(4)	 Ore reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. 

	 	a.	 Mining recovery applied is variable by area: 

	 	  i.	 95% = CSM_II 

	 	 ii.	 94% = C_ORI, CSM_I, Gallito 

	 	iii.	 90% = C_OCC, CSM, CUYE, Marita, Juliana, Pozo Rico 

	 	iv.	 88% = Butz 

	 	b.	 Mining dilution, applied with a zero grade, is variable by area: 

	 	  i.	 20% = CUYE, Marita 

	 	 ii.	 10% = All others 

	 	(5)	 The application of mining recovery and dilution (applied at a zero grade) results, in some cases, in higher tonnage and
lower grade in reserves when compared to resources in these relatively high grade bodies. 

  
  

					
	MH/MLM	  		  	September 2016

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 131

  
  

	15.4	Factors That May Affect the Mineral Reserve Estimate 

 This reserves estimate
includes mining blocks down to the 1170 level (approximately 3,737 masl). Minera Corona is currently undertaking shaft expansion and construction projects to access deep ore beyond the 1070 level (3,837 masl). Two Mascota shaft pocket installations
at the 1100 level are planned to be in production in late 2016 and early 2017. These will serve to handle waste and ore skipping for the remainder of the production run, into 2020, from the 1070 level. The Mascota double loading pockets will ensure
that development waste as well as ore can be skipped from this level horizon. Completion on the grizzly and dump station for one pocket is currently being completed on the 1070 level. The second grizzly infrastructure on pocket number 2 will be
completed by Q1 2017. 
 The new Yauricocha shaft will eventually provide access down to the 1370 level and is expected to be in
production in early 2019. 
 Delays in these projects could impact the overall mine plan by delaying extraction of ore below the 1070
level. The quantity of material included in the reserves estimate (Table 15-8 through Table 15-12) below the 1070 level is provided in Table 15-13. 
 SRK knows of no other existing environmental, permitting, legal, socio-economic, marketing,
political or other factors that might materially affect the mineral reserve estimate contained herein. 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 132

  
  

 Table 15-13: Reserves Below 1070 Level 

 

																																															
	  
 Area
	 	 Category  	 	 Tonnes (000’s) 	 	 	 Ag (g/t) 	 	 	 Au (g/t) 	 	 	 Cu (%) 	 	 	 Pb (%) 	 	 	 Zn (%) 	 	 	 Ag (koz) 	 	 	 Au (koz) 	 	 	 Cu (t) 	 	 	 Pb (t) 	 	 	Zn (t)	 
	
Mina Central
	 	 Proven 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	 Probable 	 	 	466.0 	 	 	 	34 	 	 	 	0.73 	 	 	 	1.02 	 	 	 	0.08 	 	 	 	3.02 	 	 	 	506 	 	 	 	11 	 	 	 	4,774 	 	 	 	373 	 	 	 	14,070	 
	 	 P+P 	 	 	466.0 	 	 	 	34 	 	 	 	0.73 	 	 	 	1.02 	 	 	 	0.08 	 	 	 	3.02 	 	 	 	506 	 	 	 	11 	 	 	 	4,774 	 	 	 	373 	 	 	 	14,070	 
	
Esperanza
	 	 Proven 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	 Probable 	 	 	178.2 	 	 	 	40 	 	 	 	0.51 	 	 	 	0.87 	 	 	 	1.10 	 	 	 	4.00 	 	 	 	230 	 	 	 	3 	 	 	 	1,557 	 	 	 	1,961 	 	 	 	7,133	 
	 	 P+P 	 	 	178.2 	 	 	 	40 	 	 	 	0.51 	 	 	 	0.87 	 	 	 	1.10 	 	 	 	4.00 	 	 	 	230 	 	 	 	3 	 	 	 	1,557 	 	 	 	1,961 	 	 	 	7,133	 
	
Mascota
	 	 Proven 	 	 	38.3 	 	 	 	210 	 	 	 	1.05 	 	 	 	0.22 	 	 	 	3.25 	 	 	 	0.50 	 	 	 	258 	 	 	 	1 	 	 	 	84 	 	 	 	1,242 	 	 	 	190	 
	 	 Probable 	 	 	105.9 	 	 	 	230 	 	 	 	1.13 	 	 	 	0.30 	 	 	 	3.25 	 	 	 	0.44 	 	 	 	783 	 	 	 	4 	 	 	 	320 	 	 	 	3,445 	 	 	 	469	 
	 	 P+P 	 	 	144.1 	 	 	 	225 	 	 	 	1.11 	 	 	 	0.28 	 	 	 	3.25 	 	 	 	0.46 	 	 	 	1,041 	 	 	 	5 	 	 	 	404 	 	 	 	4,687 	 	 	 	659	 
	
Total
	 	 Proven 	 	 	38.3 	 	 	 	210 	 	 	 	1.05 	 	 	 	0.22 	 	 	 	3.25 	 	 	 	0.50 	 	 	 	258 	 	 	 	1 	 	 	 	84 	 	 	 	1,242 	 	 	 	190	 
	 	 Probable 	 	 	750.0 	 	 	 	63 	 	 	 	0.74 	 	 	 	0.89 	 	 	 	0.77 	 	 	 	2.89 	 	 	 	1,519 	 	 	 	18 	 	 	 	6,652 	 	 	 	5,779 	 	 	 	21,672	 
	 	 P+P 	 	 	788.2 	 	 	 	70 	 	 	 	0.75 	 	 	 	0.85 	 	 	 	0.89 	 	 	 	2.77 	 	 	 	1,777 	 	 	 	19 	 	 	 	6,736 	 	 	 	7,021 	 	 	 	21,862	 

	 	(1)	 See footnotes for Table 15-8 through Table
15-12 for key parameters used to determine reserves. 

 Source: SRK, 2016 

  
  

					
	MH/MLM	  		  	September 2016

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 133

  
  

	16	Mining Methods 

 Production at Yauricocha comes from a number of mineralized areas.
The larger orebodies are Mina Central, Mascota, Esperanza, Angelita (Cachi-Cachi), Elissa (Cachi-Cachi), and Escondida (Cachi-Cachi). These orebodies make up 96% of the Proven and Probable reserves. Smaller zones, referred to as Cuerpos Pequenos or
Cuerpos Chicos, are found throughout the claim area. These zones are typically higher grade and can be difficult to delineate in the resource models, but make up an important supplement to overall production. 

Figure 16-1 shows the layout of the Yauricocha mine, the geology shapes, and a subset of the
development for reference. 

  
  

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 134

  
  

 

 
 Figure 16-1: Yauricocha Mine Overview (showing subset of development)

 Source: SRK, 2016 
 Figure 16-2 shows a long section through Yauricocha showing the mining areas, geology shapes, reserve blocks, and development. 

  
  

					
	MH/MLM	  		  	September 2016

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
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 Figure 16-2: Yauricocha Long
Section Looking Northeast (showing development, geology shapes and reserve blocks) 
 Source: SRK 2016 

Access to the mine is through the Central Shaft, Mascota Shaft or Klepetko Tunnel. A winze at Cachi-Cachi hoists production from lower
levels in that area to the 720 main haulage level. The Central Inclined Shaft in the Mascota area uses winch and cable pulled rail cars to bring material from the 1070 level to the 920 level. As shown in Figure
16-2, ramps connect levels and sublevels in the primary mining areas. The vast majority of material (97% in 2015) is transported to the mill through the Klepetko Tunnel. Some waste material is used as backfill
underground with the remaining transported to surface (242,600 tonnes in 2016) and placed on waste dumps or used to backfill historic pits in accordance with the reclamation plan. 

Ore production in 2015 as reported by the mine was just over 800,000 total ore tonnes (dry). The Chumpe Mill reported processing 830,000
tonnes (dry). Some short term ore stockpiles exist near the primary crusher at the mill site, but no long term or low grade ore stockpiles are in use. Figure 16-3 shows 2015 production at Yauricocha by month.
Table 16-1 shows a comparison of planned tons and grade vs. production as reported by the mine and processed material as reported by the mill. SRK notes a reasonable agreement in tonnes. The grades expected in
the mine plan for silver and lead are generally more conservative (lower) than the realized grades. There are a number of factors that can contribute to these differences, including operational constraints, which result in deviations from the mine
plan. More detailed sampling near the mining face does result in improved ore control. SRK recommends continued monitoring of the reconciliation reports in order to better tune the models used for resources, reserves and detailed mine plans. 

  
  

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 136

  
  

 

 
 Figure 16-3: Mined and Processed Tons, 2015 

Source: SRK 2016 

  
  

					
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Resources and Reserves– Yauricocha Mine
	  	 Page
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    Table 16-1: Planned vs. Reported Mine
Production vs. Reported Mill Processed, 2015 
  

																																																													
	  	  	Planned	 	  	Reported Mine Production	 	  	Reported Mill Processed	 
	Month	  	Tonnes
(dry t)	 	  	 Ag

(g/t)
	 	  	Pb
(%)	 	  	Cu
(%)	 	  	Zn
(%)	 	  	Tonnes
(dry)	 	  	 Ag

(g/t)
	 	  	Pb
(%)	 	  	Cu
(%)	 	  	Zn
(%)	 	  	Tonnes
(dry t)	 	  	 Ag

(g/t)
	 	  	Pb
(%)	 	  	Cu
(%)	 	  	Zn
(%)	 
	 January
	  	 	78,000	 	  	 	97.1	 	  	 	2.91	 	  	 	0.61	 	  	 	2.94	 	  	 	78,086	 	  	 	100.0	 	  	 	2.58	 	  	 	0.67	 	  	 	3.05	 	  	 	74,975	 	  	 	103.0	 	  	 	2.74	 	  	 	0.55	 	  	 	2.83	 
	 February
	  	 	78,000	 	  	 	81.5	 	  	 	2.22	 	  	 	0.77	 	  	 	3.41	 	  	 	77,319	 	  	 	84.9	 	  	 	1.99	 	  	 	1.16	 	  	 	2.93	 	  	 	69,997	 	  	 	109.8	 	  	 	3.25	 	  	 	0.62	 	  	 	2.61	 
	 March
	  	 	78,000	 	  	 	93.1	 	  	 	2.59	 	  	 	0.85	 	  	 	2.88	 	  	 	77,012	 	  	 	117.5	 	  	 	2.98	 	  	 	1.04	 	  	 	3.00	 	  	 	74,997	 	  	 	132.5	 	  	 	3.67	 	  	 	0.74	 	  	 	2.84	 
	 April
	  	 	78,000	 	  	 	106.8	 	  	 	2.75	 	  	 	0.65	 	  	 	2.79	 	  	 	72,301	 	  	 	119.0	 	  	 	3.17	 	  	 	0.87	 	  	 	2.94	 	  	 	74,996	 	  	 	123.9	 	  	 	3.28	 	  	 	0.72	 	  	 	2.84	 
	 May
	  	 	78,000	 	  	 	90.5	 	  	 	2.53	 	  	 	0.65	 	  	 	3.03	 	  	 	75,183	 	  	 	130.9	 	  	 	3.45	 	  	 	0.61	 	  	 	3.40	 	  	 	74,996	 	  	 	120.3	 	  	 	3.07	 	  	 	0.69	 	  	 	3.50	 
	 June
	  	 	78,000	 	  	 	    117.5	 	  	 	3.18	 	  	 	0.36	 	  	 	3.23	 	  	 	69,885	 	  	 	129.7	 	  	 	2.84	 	  	 	0.66	 	  	 	3.88	 	  	 	74,997	 	  	 	85.2	 	  	 	2.03	 	  	 	0.90	 	  	 	3.95	 
	 July
	  	 	78,000	 	  	 	90.5	 	  	 	2.58	 	  	 	0.84	 	  	 	3.12	 	  	 	59,645	 	  	 	85.9	 	  	 	2.77	 	  	 	0.84	 	  	 	3.07	 	  	 	74,998	 	  	 	102.6	 	  	 	3.37	 	  	 	0.47	 	  	 	2.65	 
	 August
	  	 	67,000	 	  	 	88.3	 	  	 	2.71	 	  	 	0.70	 	  	 	2.63	 	  	 	51,384	 	  	 	93.6	 	  	 	3.15	 	  	 	0.64	 	  	 	3.41	 	  	 	68,251	 	  	 	97.1	 	  	 	3.25	 	  	 	0.50	 	  	 	3.16	 
	
September  
	  	 	51,680	 	  	 	93.2	 	  	 	3.60	 	  	 	0.76	 	  	 	2.56	 	  	 	52,240	 	  	 	92.4	 	  	 	3.06	 	  	 	0.55	 	  	 	3.39	 	  	 	50,309	 	  	 	86.4	 	  	 	3.02	 	  	 	0.59	 	  	 	3.22	 
	 October
	  	 	49,000	 	  	 	54.8	 	  	 	1.70	 	  	 	0.78	 	  	 	2.73	 	  	 	56,301	 	  	 	88.9	 	  	 	2.83	 	  	 	0.61	 	  	 	3.09	 	  	 	59,302	 	  	 	76.7	 	  	 	2.53	 	  	 	0.73	 	  	 	3.03	 
	 November
	  	 	53,000	 	  	 	48.6	 	  	 	1.58	 	  	 	0.94	 	  	 	3.14	 	  	 	68,013	 	  	 	99.5	 	  	 	2.49	 	  	 	0.57	 	  	 	2.77	 	  	 	62,226	 	  	 	76.5	 	  	 	1.95	 	  	 	0.66	 	  	 	2.83	 
	 December
	  	 	53,360	 	  	 	68.3	 	  	 	2.32	 	  	 	1.11	 	  	 	3.30	 	  	 	64,883	 	  	 	91.1	 	  	 	2.68	 	  	 	0.55	 	  	 	3.32	 	  	 	69,763	 	  	 	93.4	 	  	 	2.70	 	  	 	0.47	 	  	 	3.10	 
	
Total
	  	 	820,040	 	  	 	88.4	 	  	 	    2.59	 	  	 	    0.73	 	  	 	    2.99	 	  	 	     802,251	 	  	 	    103.9	 	  	 	    2.82	 	  	 	    0.74	 	  	 	    3.18	 	  	 	     829,805	 	  	 	    101.9	 	  	 	    2.92	 	  	 	    0.64	 	  	 	    3.05	 

     Source: SRK, 2016 

  
  

					
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 Table 16-2 shows reported mine production and mill tonnes
processed between 2012 and 2015. 
 Table 16-2: Reported Mine and Mill Production, 2012 to
2015 
  

																			
	 	 	 Category	  	2012  	 	  	2013  	 	  	2014  	 	  	2015  	 
	 	 Tonnes Mined
	  	 	849,615	 	  	 	858,398	 	  	 	929,316	 	  	 	820,040	 
	 	 Tonnes Processed
	  	 	872,869	 	  	 	837,496	 	  	 	890,910	 	  	 	829,805	 

 Source: SRK 2016 

Two shaft construction projects are in process at Yauricocha. The Yauricocha Shaft project will provide access below the 1120 level and
is expected to be in production in 2019. The Mascota Shaft expansion project will provide production access to the 1120 level with shaft commissioning expected fourth quarter of 2016. Additionally, the Yauricocha Tunnel project, expected to be
completed in the first calendar quarter of 2017, will provide additional flexibility for material hauled to Chumpe Mill. 
  

	16.1	Current Mining Methods 

 Mechanized sublevel caving is the primary mining method at
Yauricocha. This method is in use in Mina Central, Mascota, Cachi-Cachi (Angelita and Karlita), and is planned for Esperanza. 
 Three
sublevels are established for each 50m level resulting in a planned 16.7 m between sublevels labeled as pisos (floors). Drawpoints from the footwall into the ore are typically 3.5 m wide x 3 m high and spaced 8 m apart. Steel sets, shotcrete and
bolting are used as ground support in the drawpoints. The length of each drawpoint varies with the thickness of the orebody. Samples are collected for grade control analysis as the drawpoint is developed from the left and right ribs. Upholes are
drilled in stopes that require drilling and blasting to initiate caving. Figure 16-4 shows a typical level layout with footwall asbuilt, drawpoints, stope blocks, and orebody geology model at the 870 level,
piso (floor) 12 in Antacaca Sur. 

  
  

					
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 Figure 16-4: Typical Sublevel Cave Layout, 870 Level - Piso
12 in Antacaca Sur 
 Source: SRK, 2016 

Drawpoints are staggered by 4m from sublevel to sublevel. Figure 16-5 shows an isometric view of
drawpoint asbuilts in Mina Central illustrating the typical drawpoint layout and offset. 

  
  

					
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 Figure 16-5: Isometric view of drawpoints in Mina Central
(looking west, towards footwall) 
 Source: SRK, 2016 

Cut and fill mining is employed in the smaller orebodies. For example, in Elissa (Cachi-Cachi), mining is accomplished using 2 m wide x
2 m high cuts and an overhand (ascending) technique where the lower levels are filled as mining progresses to the next sublevel above. Pillars are left at each level. 

Esperanza 
 Esperanza,
located to the northwest of Mina Central, varies in thickness and continuity particularly in the upper levels. Sublevel caving will be used in this massive orebody with parameters consistent with Mina Central. Sublevels will be spaced at 16.7m with
drawpoints spaced at 8 m. SRK notes that Minera Corona is currently evaluating increasing the drawpoint spacing to 11 m thus reducing the drawpoint development required. Figure 16-6 shows an example vertical
section through Esperanza illustrating the geology, stope blocks used for reserves determination, and the block model NSR values for measured and indicated material. 

  
  

					
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 Figure 16-6: Vertical section through Esperanza Showing
Stope Blocks, Orebody Model, and Block Model 

                      
(colored by NSR for Measured and Indicated Material) 
 Source: SRK 2016 

Figure 16-7 shows a plan section at elevation 3900 (1020 P0 Level) showing the stope blocks and
block model colored by NSR for measured and indicated material. 

  
  

					
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 Figure 16-7: Plan section through Esperanza Showing Stope
Blocks and Block Model 

                      
  (colored by NSR for Measured and Indicated Material) 
 Source: SRK, 2016 

 

	16.2	Parameters Relevant to Mine Designs and Plans 

  

	16.2.1	Geotechnical 

 Geologic Setting 

The Yauricocha mine is located in the district of Alis, province of Yauyos, department of Lima at elevations ranging from about 4,200 to
5,000 masl within Quebrada Chumpe. The operation mines polymetallic (lead, zinc, silver) and copper bearing ores that occur as both tabular ore bodies and veins within the Jumasha limestone. The ore bodies are grouped along the contact of the
Jumasha limestone with the Celendín Formation and a granodiorite intrusive. In the vicinity of the ore deposits, this contact generally corresponds with the northwest trending Yauricocha fault, although smaller granodiorite intrusive bodies
and associated ore bodies are also found within portions of the limestone. 

  
  

					
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 The underground mine is currently mining the ore bodies using sublevel caving. Ore is
transported via Túnel Klepetko (720 level or an elevation of 4,185 masl), which runs east-northeast from the mine towards the mill and concentrator located in lower reaches of Quebrada Chumpe. At present, lower mined levels where mudflows are
occurring are at the 820 level or an elevation of 4,040 to 4,057 masl (Antacaca and Catas ore bodies) and the 870 level or an elevation of 4,010 to 4,093 masl (Rosaura and Antacaca Sur ore bodies). All of the recorded mudflows have been located
within ore bodies near the contact with the Jumasha limestone and the adjacent granodiorite and Celendín formation. 
 Rock Mass
Characterization 
 Geotechnical investigations have been conducted at the Yauricocha Mine to prepare a geotechnical model of
ground conditions. The investigations involved preparing of a major fault model, rock mass model, rock mass strength model, rock mass characterization, granular material (ore) classifications; underground traverse mapping, core logging, laboratory
tests, shaft inspections, subsidence studies, preparation of a geotechnical database and the implementation of a data collection process. SRK has confirmed that these activities comply with international standards and industry best practices. 

The field investigation focused primarily on the Antacaca Sur deposit because of the recent mud flow events in that area. The model has
been expanded to include Antacaca, Catas, Rosaura and Mascota deposit mining areas. The field investigation considered a total of 500 m of geotechnical logging from underground geotechnical drill holes, and 6,000 m of geotechnical mapping of the
underground workings. More than 2,000 minor structures and discontinuities were mapped. A total of 83 rock laboratory tests were performed and more than 40 soil tests were conducted to support this investigation. The mine personnel understand that
the geotechnical model is a living process and must be updated as additional data is gathered and new mining areas are exposed. 

Geotechnical core logging has been conducted to help in delineating structural domains. Data gathered include the following rock type
information: 
  

	 	●	 	 Lithology; 

  

	 	●	 	 Faulting and shearing; 

  

	 	●	 	 Orientation of structure for delineating joint sets; 

 

	 	●	 	 Estimating intact rock strength; and 

 

	 	●	 	 Rock quality designation (RQD). 

The data for estimating intact block geometry comes from several sources including: 

 

	 	●	 	 Orientation of structure for delineating joint sets; 

 

	 	●	 	 Number of discontinuities (joints); 

 

	 	●	 	 The average fracture frequency; and 

 

	 	●	 	 The joint spacing. 

Joint surface properties are assessed from both geotechnical mapping and core logging. Data collected includes: 

 

	 	●	 	 Openness/aperture; 

  

	 	●	 	 Planarity; 

  

	 	●	 	 Roughness; 

  

	 	●	 	 Infilling/coating; and 

  
  

					
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	 	●	 	Evidence of groundwater. 

 The rock mass rating (RMR) classification system developed by
Bieniawski (1976) is a widely used empirical method for classifying the rock mass quality. RMR values account for intact rock strength, RQD, joint conditions, spacing, and water conditions. Each rock mass characteristic (described previously)
has a rating value when summed together has a maximum value of 100 points for the most competent rock. Site observations indicate that the RMR is a valid representation of the rock mass conditions. The mine has adopted the RMR89 to be consistent with previous rock mass characterization data collected by the mine. 

Laboratory Strength Testing 

Laboratory strength testing was conducted at the Universidad Nacional de Ingenieria, Lima Peru (UNI). SRK, Corona and DCR Ingenieros
collected suitable samples for the tests. SRK defined the laboratory specifications and prepared several memorandums indicating the tests requirements. A total of 26 samples were tested for Unconfined Compressive Strength (UCS) with elastic modulus,
24 multiaxial compressive strength under different confinements, 15 tensile tests and 18 density tests were part of the first laboratory tests program. Table 16-3 summarize the number of tests and the type of
material tested. 
 Table 16-3: Intact Rock Tests 

 

																							
	Units	 	No. of tests
	 	 Dry

  Density  
	 	 Wet

  density  
	 	  Porosity  	 	  Absorsion  	 	
  Specific  

  Gravety  
	 	Uniaxial
Compressive
  strength (UCS)  	 	
  Young’s  

Modulus
 E
	 	
  Poisson  
 ratio

V
	 	Triaxial
  Compressive  
Strength	 	
  Tensile  

  strength  

	
Intrusive
	 	3	 	3	 	3	 	3	 	3	 	5	 	5	 	5	 	6	 	3
	
Limenstone  
	  	Marbled  	 	3	 	3	 	3	 	3	 	3	 	3	 	3	 	3	 	 	 	3
	  	Fine grain  	 	3	 	3	 	3	 	3	 	3	 	5	 	5	 	5	 	6	 	3
	  	Re-cristalzed  	 	3	 	3	 	3	 	3	 	3	 	5	 	5	 	5	 	6	 	3
	  	Coarse-grained  	 	3	 	3	 	3	 	3	 	3	 	5	 	5	 	5	 	6	 	3
	 Breccia
Calcareous
	 	3	 	3	 	3	 	3	 	3	 	3	 	3	 	3	 	0	 	0
	 Total
Tests
	 	18	 	18	 	18	 	18	 	18	 	26	 	26	 	26	 	24	 	15

 Source: Yauricocha, 2015 

The limestones have density ranging between 2.71 and 2.73 g/cm3, slightly higher
than the Intrusive materials tested. The intrusive has an average value of 2.67 g/cm3. The average density of the ore is 4.05 g/cm3. 

All limestones have UCS values ranging between 55 MPa and 60 MPa. The fresh intrusive material has UCS ranging between 170 MPa and 172
MPa, but the altered intrusives only reach 110 MPa in the matrix of the rock. The breccia has UCS values between 40 and 50 MPa. Some samples of ore have UCS strength up to 50 MPa, but these tests were not representative of the general condition of
the ore material. A comparison of the UCS from PLT tests for each material is shown in Figure 16-8. The laboratory testing results are summarized in Table 16-4. 

  
  

					
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 Source: SRK, 2015 

Figure 16-8: Comparison of UCS, different materials at Yauricocha Mine 

Table 16-4: Summary of Laboratory Testing Results 

 

											
	Intact Rock Strength	 	Rock Type
	 	    Caliza            
 
   Marmolizada            	 	    Caliza          
Grano  
    
Fino      	 	Caliza      
    Recristalizada    
    	 	    Caliza             
 
      Grano              
    Grueso            	 	    Intrusivo          
    
	 Average UCS (MPa)  
	 	52.6        	 	55    	 	61.5      	 	56.6      	 	171.5        
	 Average Young’s Modulus
(GPa)  
	 	13.87        	 	16.47    	 	17.15      	 	14.52      	 	21.75        
	 Average Poisson’s ratio  
	 	0.25        	 	0.25    	 	0.24      	 	0.25      	 	0.21        
	 Average Tensile strength (MPa)  
	 	2.63        	 	3.07    	 	4.53      	 	 	 	2.80        

 Source: SRK, 2015 

Three main geotechnical units and two minor discontinuities domains were identified as a result of these investigations at the central
mine area. The geotechnical domains included the footwall, hangingwall and ore material. Subdomains such as fresh limestone, breccia, altered intrusive and fresh intrusive were observed within each domain. Each domain and subdomain were
characterized and the rock mass strength parameters were estimated. 

  
  

					
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 Geotechnical Model 

The geotechnical model has sufficient resolution for understanding rock mass behavior and for conducting the analyses for mine design and
the ground support assessments. The geotechnical model covers most of the central mine areas, with emphasis on the Antacaca Sur area of the mine. SRK reviewed all areas where the underground accesses was available and reviewed core logging, covering
historic mining areas were underground access was not available. The geotechnical model and the structural models described were developed for the purpose of addressing the following issues: surface subsidence, shaft stability and understanding of
the rock mass strength in areas of active mining. 
 The geotechnical model has followed international industrial standards. The model
has sufficient resolution to be used for stability analyses and ground support assessments. 
 The geotechnical model covers the
Yauricocha central mine area and represents data from the current excavations. Special attention was taken to gather data on the Antacaca Sur area of the mine, but data collection was expanded to include Antacaca, Rosaura, Catas and Mascota areas of
the mine. 
 Three geotechnical units (hangingwall, orebody and footwall) were identified and two structural domains were identified
(Domains I and II). Each geotechnical domain was subdivided into different geotechnical subdomains depending on the rock mass quality and rock mass strength. 

Two subdomains were identified as breccia and limestone within the footwall domain. The competent limestone domain covers most of the
underground workings. Even though geologically there are different types of limestones, the RMR89 and the laboratory test results indicated that various limestones have similar mechanical
behavior and can be grouped in one geotechnical unit, referred to as fresh limestone. The breccia subdomain is located in along the footwall contact of the orebody and this subdomain is characterized as weak material. Field observations indicate the
footwall breccia is not continuous and has variable thickness. 
 The hangingwall domain also has two subdomains. The altered intrusive
has low rock quality and low strength parameters. This material is located along the hangingwall of the ore material and is in contact with the Yauricocha fault. This subdomain is comprised by cubic blocks of intrusive material with clay infilling,
which reduces the rock mass strength of the units. The nearer the subdomain is to the Yauricocha fault the more clay between blocks is observed. This results in a reduction in rock mass strength. Field observations and core logging indicate that the
highly weathered intrusive hangingwall extends about 20 m from the Yauricocha fault. Beyond the 20 m the rock mass strength significantly increases and the amount of clay infilling decreases and thus is considered a separate subdomain, named fresh
intrusive. 
 The fresh intrusive is characterized as good to very good rock quality. The information collected from drainage
drillholes indicates RMR89 is between 54 and 65 with an intact rock strength ranging from 146 to 197 MPa. 

The ore material has been identified as a separated geotechnical domain because of its unusually weak character. The data (i.e., field
observations, core logging and laboratory tests) indicate this unit behaves as granular material. To understand the effect of the strength parameters under different moisture levels, five remolded multi-stage undrained triaxial tests were conducted
at different moisture levels (i.e., 2%, 3%, 4.8%, 6%, and 8%). The test results indicate a clear reduction in 

  
  

					
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strength at increasing moisture contents. The ore material has significantly lower cohesion at higher moisture contents, but the internal friction angle is only slightly reduced. 

Geologic Structure 

Considerable geologic structure has developed as the result of horizontal compressive forces which have created the Andes Mountains and
folded and faulted the sequence of rocks present at the site. Folding ranges from tight vertical folds to gradual folds. Several folds with axes parallel to the regional northwestern structural trend are present in the area of the mine including:

  

	 	●	 	 Anticline Purísima Concepción - Located to the southwest of the mine it is a local tight fold with a
N50°W axis plunging 20°SE. 

  

	 	●	 	 Syncline France Chert - Located to the northeast of the mine it is a tight fold with a N35°W changing to N65°W
axis plunging 40°SE. The ore deposits are Yauricocha are located on the western flank of this fold. To the north of the mine, these folded sediments have been rotated 30° in a clockwise motion, possible as a result of a northeast oriented
shearing or tearing movement in the underlying basement rocks. 

  

	 	●	 	 Anticline Cachi-Cachi, Prometida - Located about 2 km north of the mine at the northern end of the emplaced intrusive
its axis trends N70°W to N80°W plunging to the east. The north (Prometida) and south (Cachi-Cachi) dipping flanks have controlled local mineral emplacement in these areas. 

During the development of the folding, fracturing of the sedimentary rocks occurred, with longitudinal faults developing parallel to the
orientation of the folds. The most recognized of these is the Yauricocha fault, which generally runs along the contact between the Jumasha limestone and the Celendín formation from the Mina Ipillo to the south to parallel with Laguna
Sillacocha. This fault has helped control the emplacement of the granodiorite intrusive and associated mineralization. However, there are other faults in the mine area indicated in geologic maps; mostly normal faults that parallel the main
structural trend. One of these is a normal fault that crosses the Túnel Klepetko near the northeastern contact with the Celendín Formation. This corresponds with a fault zone encountered in the tunnel that produced a significant and
steady inflow prior to construction of the new tunnel. One thrust fault is also indicated just above the Quebrada Chumpe waste rock facility. 

After emplacement of the granodiorite, the sediments at the north end of the intrusion were twisted 30° to the east. As a result of
this rotation, shears and joints developed with strikes of northwest-southeast (dipping 50° to 80°), northeast-southwest (dipping 60° to 85°), east-west (80° to near vertical). These three fracture sets form faulted blocks within
the sedimentary rocks, which in turn control the location of ore bodies and veins. Contacts between the principal lithological units (Celendín, Jumasha, and granodiorite intrusive) were also controls on the emplacement of the mineralization.

 Structural Model 

Two major fault sets were identified in the Mascota zone. The first were northwest trending, steeply dipping faults that are parallel to
the Yauricocha fault. These structures are interpreted to have normal to normal-oblique movement. The second fault sets are east-west to east-southeast trending and are steeply dipping. They are strike slip faults that are interpreted to be
displaced by the Yauricocha and other northwest trending faults. 

  
  

					
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 There is clear indication based on the stereographic analyses of the major
discontinuities that the first 360 m below ground surface at the central mine area is controlled by an east-west sub-vertical jointing system, which dips mostly to the south. A second principal jointing system
strikes northeast. From level 720 to the last mapped level (i.e., level 920). The principal jointing is controlled by the same east-west jointing system, but the set steeply dips to the south. There is a conjugal northeast jointing system that dips
northeast and southwest and occurs at shallower depths. 
 There is a secondary jointing system above level 720 dipping southeast and
southwest. Below this level the secondary jointing is controlled by the same jointing system, but dipping southeast and rotating northeast below level 920. 

The mine personnel have been trained for collection of both rock mass data and joint mapping data. A surface monitoring system,
underground data collection procedures and a laboratory testing program have been recently implemented at the mine. 
 The mine should
continue collecting geotechnical information from each exploration drillhole, especially as new levels or areas are developed. The laboratory testing of samples for soil index tests (e.g., grain sizes distribution, plastic and liquid limits,
moisture content, etc.) should be continued. This data will help to reduce the uncertainties of ore materials in the geotechnical model. Validation of the rock mass strength of each geotechnical domain should be continued. 

The underground traverse mapping should be the routine work of the geotechnical team. Results from this mapping should be incorporated
into the current geotechnical database. Ground-truthing of the faults that were assigned “probable” confidence should be conducted to increase the confidence in their existence. Ground-truthing should focus on characterizing all fault
characteristics that can impact local stability including, but not limited to fault geometry, fault surface undulation and kinematics of fault blocks. Evidence of primary east-northeast trending faults in the underground levels should be sought to
determine whether there is a correlation with interpreted faults from surficial data and those included in the model. 
 The mine has
been analyzing factors contributing to mud rush conditions. Common factors present include the following: 
  

	 	●	 	 Orebody is inclined and not vertical; 

 

	 	●	 	 Rock mass in the high-grade ore, low-grade ore and hangingwall intrusive rocks
are weak soil-like material and block infilling characterized by thick weak gouge in fractures; 

  

	 	●	 	 Excessive water in the area, especially coming from the hangingwall rocks; 

 

	 	●	 	 Weak rock has a strain-softening behavior after being disturbed; and 

 

	 	●	 	 There are hydraulic connections between faulting and caved zone. Additional work will be required to quantify the levels
at which these conditions trigger mud rush events and to address questions about triggering mechanisms. 

 Predicting
the extent of the cave/subsidence zone is important to understanding both water inflows to mining and rock mass disturbance around drawpoints. Subsidence work done to date has consisted of measuring the surface crack limits, mapping the cave limits
to depth and using numerical methods to predict subsidence regions. 

  
  

					
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 Mud Flows 

The first known occurrence of a mudflow (termed soplo on-site) was in 1997 during mine operation
by Centromin using the same mining methods. This occurred in the Antacaca Sur at the 575 level or an elevation of 4326 masl (about 100 m below the groundwater elevation in the neighboring granodiorite). Since 2005 during mine operation by SMCSA, in
some zones adjacent to the fault contact, mudflows have occurred resulting in damage to equipment and are a threat to the safety of the miners. Two of the principal conditions that are required for mudflows to occur are: 

 

	 	●	 	 A source of fine silty material in the mined ore – in this case most likely the fault gouge zone and possibly
argillic alteration of the hangingwall intrusives; and 

  

	 	●	 	 Presence of water inflows to the mined area. Small inflows (of a few liters per second) have been observed within the
mined drifts during the initial stages of sub-level caving operations. During the later stages of production on a sub-level, the flow sometimes ceases until, over time,
a mudflow event is triggered. This delay in triggering an event is indicative of water buildup in the overlying caved material impeded by the low permeability of fine silty material. Eventually the buildup of water is sufficient to break the flow
barrier resulting in a mudflow. 

 The source of the water in the hangingwall is not well understood. Tracer tests
have been conducted but were inconclusive. SRK recommends additional tracer tests be run to see if water from the tailing storage facility (TSF) and natural groundwater has been migrating into the faults in the Virginia mine area and then into the
central mine area. A water balance analysis of the underground water is required to understand where water is coming from and where it is going downgradient in the vugular limestone formation. 

SRK is of the opinion that mudflows can be mitigated as mining goes deeper where stresses and groundwater pressures increase with depth,
and rock mass strengths will likely remain similarly weak. This mitigation requires long-term planning and the gathering of additional data on trigger mechanisms for mudflows. 

The mine has made efforts to continue building a culture of safety discipline, which has improved safety. SRK is of the opinion that
recent mudflow incidents were preventable by improving operational procedures, short-term characterization to identify high-risk drawpoints, implementing appropriate remedial design measures, advancing long-term planning to manage water ahead of
mining, and appropriately adjust mining dimensions for ground conditions. 
 Geotechnical Mine Design Parameters 

The current mine layout consists generally of the following geotechnical design parameters: 

 

	 	●	 	Mining method: sub-level caving with 75°-85° dipping tabular orebody; 

  

	 	●	 	Sub-level draw heights: 16 m; 

  

	 	●	 	Drawpoint spacing: 8 m; 

  

	 	●	 	Drawpoint size: 3.5 m wide x 3.0 m high; 

  

	 	●	 	Drawpoint support: 

  

	 	o	Steel sets with blocking and lagging on 1.0 m spacing, and 

  

	 	o	Fiber reinforced shotcrete with 2.5 m bolts on 1.0 m spacing. 

  

	 	●	 	Development drift support: Spot bolting and mesh as required. 

  
  

					
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 Other design parameters (e.g., 25 m draw heights) have been evaluated over the mine
life. The parameters listed above seem to function best in the current mining areas. 
 Ground support for mitigating mudflows
conditions consists of constructing a timber bulkhead at the ore-hangingwall contact, placing a waste rock bulkhead at the drawpoint entry during development of other drawpoints, and window management procedures during initial drawpoint production.
The mine has recently installed remote loader capabilities as the loader mucks from the drawpoint. This has helped minimize miner access during production. 

Summary 
 Geotechnical
investigations have been conducted at the Yauricocha Mine to prepare a geotechnical model of ground conditions. The investigations involved preparing of a major fault model, rock mass model, rock mass strength model, rock mass characterization,
granular material (ore) classifications; underground traverse mapping, core logging, laboratory tests, shafts inspections, subsidence studies, preparation of a geotechnical database, and the implementation of a data collection process. SRK has
confirmed that these activities comply with international standards and industry best practices. 
 In SRK’s opinion the amount
and quality of data is adequate for supporting the current mine design. Subsidence analyses have demonstrated a reasonable understanding of mechanisms leading to the observed underground and surface subsidence and cracking disturbance. The current
understanding of mudflow conditions is sufficient to make adjustments in drawpoint design, mucking operations, and dewatering programs. 
  

	16.2.2	Hydrological 

 Hydrogeological work has been conducted at the mine by GeoLogic
(2014), Hydro-Geo Consultores (2010) and Geoservice Ingenieria (2008). This work has focused on characterizing the regional surface and groundwater regimes as influenced by the mining operations. Data has
been collected on levels, from pump tests, tracer tests and surface water weirs. The following descriptions are based on Geoservice (2014). 

Climate and Hydrologic Balance 

The site climate is typical of the Peruvian Andes, with most precipitation occurring during the summer months (November through April)
and drier conditions during the rest of the year. Average monthly temperatures are estimated to range from a low of 7.8°C in July to a maximum of 9.7°C in January and December with an annual average of 9.0°C. Average annual relative
humidity is estimated at 75%. 
 Average monthly precipitation was obtained from SENAMI records (1990 to 2012) for the meteorological
station at Yauricocha, which lies at an elevation of 4,675 masl. Precipitation in the region shows a significant decrease with decreasing elevation (about 320 mm per 1,000 m). Recorded average annual precipitation at Yauricocha is 1,010 mm.

 There are no pan evaporation data for stations close to the mine site. The closest identified station is Upamayo (operated by
ElectroAndes) and which lies approximately 75 km to the northwest at an elevation of 4,093 masl. Average monthly pan evaporation data from this station for the period 1957 to 1996 indicates an average annual pan evaporation of 832 mm. This is
equivalent to an average annual potential evapotranspiration (PET) of about 583 mm using a pan adjustment factor of 0.7. 

  
  

					
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Calculation of PET (Geoservice, 2013) based on average monthly temperatures employing the method of Thornthwaite yielded a PET of 590 mm, which is very similar. Actual evapotranspiration (AET) is
lower, due to moisture deficits during the dry season (May to September). 
 An estimated monthly hydrological balance for the project
site was developed to estimate potential runoff and infiltration. Daily measurements of stream flows at the base of Quebrada Chumpe were provided by SMCSA for the period January 1, 2014 through July 3, 2014. These data show a peak flow of
about 52.9 L/s with a minimum flow of 10.0 L/s and an average flow of 20.1 L/s. This suggests that the base flow (supported by groundwater discharge) is about 10 L/s, or in other words, any annual water excess is almost evenly distributed between
groundwater recharge and surface water runoff. 
 The water balance based on an average annual precipitation of 1009.7 mm is
distributed as follows: runoff depth of 268 mm (27% of total precipitation), infiltration depth of 265 mm (26% of total precipitation), and actual evapotranspiration depth of 477 mm (47% of total precipitation). 

Geology and Hydrostratigraphic Units 

Jumasha Formation 
 The Jumasha
Formation, of mid to late Cretaceous age, consists principally of limestones and dolomites with an average thickness of 700 m, which forms peaks and cliffs in the project area. Massive gray limestone and dolomite are present, as well as thinly
stratified yellowish grey shalely limestone. This formation hosts the ore deposits at the Yauricocha and neighboring mines. There is ample evidence of the formation of karst, with open solution channels apparent on the canyon sidewalls in many areas
and within the underground workings, as well as open solution channels, which collect surface water flow in the bottoms of valleys. 

This karstic characteristic makes the formation a very high conductivity conduit of groundwater flow controlled by structural and
lithological features with the resultant disruption of normally expected flow paths and the flow of groundwater across drainage divides. In the mine area, including the underground workings, the Jumasha formation strikes along a northwesterly
direction with near vertical bedding evident. This combined with the predominant northwesterly structural trend favors development of karstic flow conduits in a northwesterly direction. 

Generally minor water inflow is currently observed from this formation within the mine workings (indicating that the phreatic surface is
below current mining operations), although solution channels do conduct surface water infiltration from above. A recent report by SMCSA indicates that the total flow collected from the underground workings from above the 720 level (i.e. drainage
from older higher workings) currently averages 6 to 10 L/s. However, previous studies (Hydro-Geo, 2010) indicated much higher flows from the workings above the 720 level at 170.3 L/s in 2010. A subsequent
survey (Hydro-Geo, 2012) indicated total flow from these workings to be about 4 L/s. 
 The
Jumasha formation is observed to collect all stream flow just below Laguna Pumacocha about 8 km to the south-southeast of the mine site in a solution cavern that extends to a depth of greater than 638 m (maximum depth explored) indicating a phreatic
surface of less than 3,740 masl in the karst system. Discharge from the limestone is also observed upstream of the town of Alis, about 8 km to the northwest of the mine at an elevation of about 3,400 masl. Based on visual observations during our
site visit, it appeared that flow in the Rio Alis greatly increases near this point. Other smaller solution caverns have been noted at the outlet for Laguna Pacocha, about 11 km to the 

  
  

					
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south-southeast of the mine, and Laguna Cochapampa just above the town of Laraos, about 8 km to the southwest of the mine. 

No drillhole test data is available for this formation. Karst solution channels will have an essentially infinite hydraulic conductivity,
although portions of the limestone not connected to solution channels or certain interbeds, which are not pure limestone, may exhibit much lower hydraulic conductivities. 

Celendín Formation 

The Celendín Formation, of late Cretaceous age, consists primarily of silicified shales with interbeds of recrystallized limestone
and has an average thickness of 400 m. It conformably overlies the Jumasha Formation, although the contact is along a fault zone in the immediate vicinity of the Yauricocha underground workings. It exhibits only isolated scattered outcrops of
limestone with gypsum horizons, red shales and sandstones. The lower portion contains thinly bedded calcareous rocks including marls, clayey limestones, limestones, and dolomites. Much of the area covered by the Celendín exhibits a cover of
colluvial soils, suggesting a highly fractured and/or easily weathered rock. 
 Exposures of the Celendín along the northeast
portion of the Túnel Klepetko were typically dry during our site visit with little observed water inflow. This combined with the rock type would suggest fairly low permeability. However, the lack of current flow could be attributed to ongoing
construction of the parallel Túnel Yauricocha to the east within the same formation. Construction of this tunnel has already intercepted and dried up the previous highest inflow along the Túnel Klepetko. It is noted that previous
measurements of inflows along Túnel Klepetko (Hydro-Geo, 2012) indicated that average inflow per unit length from the Celendín (0.013 L/s/m) was generally similar to that observed from the
granodiorite, and considerably higher if flow from the two highest inflow zones (at 18 and 126 L/s) from encountered fault zones were included. The geometric mean hydraulic conductivity measured from 38 tests in four drillholes was 6.1 x 10-5 cm/s. 
 Casapalca Formation 

The Casapalca formation, of late Cretaceous to Tertiary age, consists primarily of calcareous shales, calcareous siltstones, siltstones,
sandstones, and conglomerates predominately of a red color, and has a variable thickness. In lesser amounts, limestones and calcareous sandstones are found. This formation conformably overlies the Celendín formation, exhibiting a gradational
contact. This formation outcrops in the lower portion of Quebrada Chumpe near the concentrator and mine tunnel portals. Like the Celendín it is generally covered by colluvial soils suggesting a highly fractured and/or easily weathered rock.
Core samples from this formation generally indicate highly fractured rock within 50 m of ground surface. The geometric mean hydraulic conductivity measured from 34 tests in nine drillholes was 4.9 x 10-4 cm/s.

 Quaternary Sediments 

The site topography has been largely shaped by glaciers, leaving behind numerous small depressions (which form lakes and sometimes have
terminal moraines), U-shaped valley bottoms, and compacted moraine at higher elevations. Colluvium and moraine covers much of the area, with glacially scoured rock outcrops common at the higher elevations.
These sediments are composed of a mixture of compacted sand, silt, and clay with angular gravel. Unconsolidated alluvial material is limited to small portions of the drainage bottoms, with more significant amounts at lower elevations due to
increased stream flow. There are probably accumulations of fine grained (silty to clayey) 

  
  

					
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sediments at the bottom of natural lakes in the vicinity. The geometric mean hydraulic conductivity measured from 21 tests in 11 drillholes was 1.9 x 10-3
cm/s. 
 Intrusive Units 

Intrusive activity developed mainly in the Miocene, with an average indicated age of 6.9 million years. In the study area,
granodiorite is present as an extensive intrusive body with a northwest to southeast orientation (approximately 15 km in length), bounded on the west by the Jumasha formation and on the east by the Celendín or Casapalca formations (up to
about 8 km in width). This intrusive has well defined contacts with the surrounding sediments and its emplacement generally follows the regional structure and stratigraphic planes. The intrusive exhibits surface outcrops of a few hundred square
meters to several square kilometers, with commonly occurring offshoots and branches from the larger intrusive body. The composition varies from granodiorite to quartz-monzonite along the borders. The intrusive has produced metamorphic aureoles in
the surrounding rocks producing quartzites, hornfelsic shales, and recrystallized limestones. The extent of the alteration halo varies by rock type, with the alteration extending the least distance in the limestones, moderately in the sandstones,
and furthest in the shales. 
 Along exposures of the granodiorite within the Túnel Klepetko, the rock appears to be overall
moderately fractured and generally wet to very wet with numerous seeps. Average inflow per unit length along the tunnel was 0.023 L/s/m. Recently, five horizontal drains drilled into the granodiorite from the 720 level are producing a total of 87
L/s of drainage, or an average flow per unit length of 0.052 L/s/m. The geometric mean hydraulic conductivity measured from 59 tests in 10 drillholes was 3.0 x 10-4 cm/s. 

Geologic Structures 

The geologic structures from a hydrogeological standpoint indicate a highly fractured rock environment that is probably responsible for
the relatively higher measured hydraulic conductivity of the lithological units present, regardless of their inherent low matrix permeability. It also explains why measured inflows have been relatively uniform along drain holes or tunnels through
these rocks. The notably higher flow along one of the contacts is also consistent with the fracturing and movement along these contacts. 

Sources of Inflows to the Mine 

There are two principal sources of inflow to the mine: 
  

	 	●	 	Infiltration of water through the subsidence cone overlying the mine; 

  

	 	●	 	Groundwater discharge from the east Jumasha contact to the east. 

 Predicted areas of the
subsidence cones for various years are overlain on a map of current site topography, which also shows areas of observed surface subsidence (craters and cracks) and small open pits used to mine the ore deposits in previous years. 

Infiltration of groundwater through the subsidence cone is essentially the same as current groundwater recharge from the ground surface.
Precipitation that does not evaporate either runs off or infiltrates. Based on detailed topography of the mine surface, depressions exist in areas of subsidence as well as one open pit. The total current area of observed subsidence depressions is
4819 m2 and these collect surface runoff from an upstream area of 175,396 m2. There is also an open pit with an area of 29,438 m2 that collects surface runoff from an upstream area of 177,845 m2. 

  
  

					
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Some of this runoff is currently collected in a diversion channel. Additionally, surface cracks associated with subsidence have been observed over an area of 75,437 m2 and these cracks also likely collect some of the surface runoff from the above identified runoff areas. Infiltration and some portion of the runoff that enters these subsidence cone areas at the
surface is generally expected to move downward along the subsidence cone and report to the currently mined areas, although some infiltration into the surrounding rock along the sides of the cone can be expected. 

The total inflow into the upper levels of the mine (i.e. at or above the 720 level) in 2012 was 11.0 L/s, which is in general agreement
with the above calculation. 
 Groundwater inflow from drainage of the surrounding granodiorite and Celendín formation has been
estimated such that the sectors of the mine with mudflows (Antacaca Sur, Antacaca, Catas, and Rosaura) extend approximately 700 m along the Yauricocha fault contact, or the same length of drainage area as the horizontal drain holes. The drain holes
produce an average sustained flow of 82.3 L/s. Note that there is still some additional flow below the 720 level where the drains are located (about 15.4 L/s). The estimated total current inflow from groundwater drainage is 97.7 L/s. Hence, the
majority of water inflow to the mine is currently coming from groundwater inflow from the neighboring granodiorite. 
 As the mine
deepens, there is potential for the amount of groundwater inflow to increase. This is due to a combination of increased head difference between the static groundwater level in the granodiorite and Celendín formation, the level of the adjacent
mine workings and an increased depth and width of seepage along this interface. Based on the increased head difference alone, the flow could potentially increase to as much as 330 L/s at a mining depth of 3,600 m. At the same time, it is expected
that associated lowering of groundwater levels due to mine drainage could reduce inflows into the existing ore transport tunnels. It will be necessary to conduct a numerical groundwater flow simulation that incorporates projected future mining
levels over time to provide a more accurate estimate of projected increases in mine flow with time as well as evaluate the effectiveness of any implemented drainage measures. 

Mine Dewatering 

Options for interception of these flows considered the following: 

 

	 	●	 	Horizontal drains; 

  

	 	●	 	Drainage tunnels; 

  

	 	●	 	Grout curtain; 

  

	 	●	 	Interceptor wells; and 

  

	 	●	 	Vertical drains. 

 If flow is occurring from the ore drawpoint initially and during the
mining process this flow stops, then the potential for a mudflow is greatly increased and operations should be stopped and equipment withdrawn in anticipation of this occurrence. Records should be maintained of the time when the water flow stops
until the time that a mudflow is observed to determine how early a warning this provides. 
 The ratio of waste to ore (dilution)
should be monitored during mining to assess at what point mudflows are more likely to occur. Generally, the chances for a mudflow increase as the dilution increases. Collection of this data can provide a guide as to when to halt extraction and
thereby minimize the chances for mudflows to occur during mining. 

  
  

					
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 It is SRK’s understanding based on anecdotal interviews, that miners often hear
noises indicating ground movement is imminent allowing them to remove themselves from the area prior to a mudflow occurring. It is recommended that consideration be given to evaluating the use of geophones to detect potential mudflows earlier,
although it is not clear if normal background noise of ground movement is too great to implement this method. 
 Summary 

The interpretation of groundwater data provides an understanding of primarily regional groundwater response to mining. SRK has not had
the opportunity to review this data because the information is still being gathered and a groundwater model is being evaluated. Integration of both the geotechnical and hydrogeology models will be conducted once the hydrogeology model is completed.

 Dewatering of the immediate hangingwall has improved inflow conditions at drawpoints. Continued dewatering will help to improve
stability of the rock mass near the drawpoints. The drainage galleries appear to be effective, but additional drain holes will be required to remove water from the immediate hangingwall intrusives as mining progresses to depth. The program on
drainage continues in the central mine zone and local programs are in place in Cachi-Cachi zones. 
  

	16.3	Underground Stope Optimization 

 Stope blocks shapes were constructed using Maptek
Vulcan’s implementation of Alford Mining System’s Stope Shape Optimizer (Stope Optimizer) for Esperanza and Cachi-Cachi. The mining method applicable to Esperanza and Angelita (Cachi-Cachi), Mina Central and Mascota is sublevel caving. The
cut and fill mining method applies to Elissa, Escondida, and Zulma. Sublevel cave shapes were constructed by cutting the orebody shape into blocks that are 16.7 m high by 8 m wide by the thickness of the orebody. The Cuerpos Pequenos bodies are
mined using cut and fill techniques, and the orebodies were divided into 2 to 3 m levels depending on the cut and fill method employed. 
  

	16.3.1	Mineral Resource Models 

 As described in section 14, SRK constructed and estimated
mineral resource models for Mina Central, Esperanza, Elissa, and the Cuerpos Pequenos orebodies. Resource models constructed and estimated by Gustavson Associates were used for Mascota and Cachi-Cachi (excluding Elissa). 

 

	16.3.2	Depletion 

 Corona personnel provided the status of mined out areas as of
June 30, 2016 for Esperanza and December 31, 2015 for all other areas. Information for each area is provided in Table 14-20. 
  

	16.3.3	Optimization Parameters and Process 

 NSR values were calculated using the
parameters described in Section 15.2 for material classified as Measured or Indicated. All other blocks are assumed to be waste with NSR and grade values of zero. 

Stope optimization was used to construct mining shapes in Angelita, Elissa, Escondida, Esperanza and Zulma. Parameters used for stope
optimization are provided in Table 16-5. 

  
  

					
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 Table 16-5: Stope
Optimization Parameters (Angelita, Elissa, Escondida, Esperanza, and Zulma) 
  

																					
	Area	  	Angelita	 	  	Elissa	 	  	Escondida	 	  	Esperanza	 	  	Zulma	 
	Mining Method	  	 	Sublevel Cave	 	  	 	Cut and Fill	 	  	 	Cut and Fill	 	  	 	Sublevel Cave	 	  	 	Cut and Fill	 
	Minimum Stope Length (m)	  	 	4	 	  	 	2	 	  	 	2	 	  	 	4	 	  	 	2	 
	Minimum Waste Pillar Width (m)	  	 	2	 	  	 	2	 	  	 	2	 	  	 	2	 	  	 	2	 
	Stope Height (m)	  	 	16.7	 	  	 	2.5-3	 	  	 	2.5-3	 	  	 	16.7	 	  	 	2.5-3	 
	Stope Width (m)	  	 
	4 (left and
right), 8 total	 
 	  	 	2	 	  	 	2	 	  	 
	4 (left and
right), 8 total	 
 	  	 	2	 
	Maximum Waste Fraction	  	 	0.2	 	  	 	0.2	 	  	 	0.2	 	  	 	0.2	 	  	 	0.2	 
	Cutoff (NSR)	  	 	58	 	  	 	64	 	  	 	64	 	  	 	56	 	  	 	75	 
	Minimum Footwall Dip (degrees)	  	 	75	 	  	 	89	 	  	 	89	 	  	 	75	 	  	 	89	 
	Maximum Footwall Dip (degrees)	  	 	105	 	  	 	91	 	  	 	91	 	  	 	105	 	  	 	91	 
	Top/Bottom Maximum Ratio	  	 	7.5	 	  	 	7.5	 	  	 	7.5	 	  	 	7.5	 	  	 	7.5	 
	Stope Orientation	  	 
	Perpendicular
to Orebody	 
 	  	 
	Perpendicular
to Orebody	 
 	  	 
	Perpendicular
to Orebody	 
 	  	 
	Perpendicular
to Orebody	 
 	  	 
	Perpendicular
to Orebody	 
 
	Strike Tolerance (degrees)	  	 	+/-25	 	  	 	+-5	 	  	 	+-5	 	  	 	+/-25	 	  	 	+-5	 

 Source: SRK 2016 

Tonnes and grade for each stope shape, whether defined using stope optimization or by cutting the geology model, was further processed
in spreadsheets to apply the mining recovery, dilution (at 0 grade), and to calculate an NSR for the diluted and recovered material. Blocks were classified as economic, marginal or waste based on the NSR value of the mining block and cutoff for the
area. The blocks meeting the reserve criteria were visually inspected and isolated blocks were identified and removed from the reserves. Marginal blocks immediately adjacent to economic blocks were considered and included in the reserves if it was
reasonable to expect that no significant additional development would be required to exploit the marginal block. 
  

	16.4	Mine Production Schedule 

 Yauricocha is an operating mine with a signification
production history. Site personnel produce five-year plans as part of the regular short, medium and long term planning process. SRK personnel attended daily planning meetings during a site visit in June 2016 and has reviewed the production plans
provided by the site (partial year 2016 through 2020). SRK notes the following: 
  

	 	•	 	 Operations and production personnel are supported by a geology and engineering groups; 

 

	 	•	 	 The geology and engineering groups work in close collaboration and planning is conducted with care and diligence;

  

	 	•	 	 Historical knowledge of the site is leveraged in the planning process; and 

 

	 	•	 	 Infill drilling in areas ahead of planned mining are used to convert mineral resources to ore reserves. As a result, the
long range plans incorporate material that is not classified as Proven or Probable reserves, including in year 1 of the long range plan. 

SRK recommends that the planning of infill drilling and mine planning should emphasize converting resources into reserves inventory
especially for the mid-range planning horizon. 

  
  

					
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 To verify the economic viability of the reserves estimated for this report, SRK created
a production plan incorporating only proven and probable reserves. The plan is shown in Table 16-6 and is broken down by material type. Also shown is the tonnage in the actual Yauricocha mine plan (2017
through 2020) to illustrate that the production plan is achievable. Again, SRK notes that the Yauricocha mine plan includes material that is not classified as Proven or Probable reserves, and the reader is cautioned that any resources incorporated
into the Yauricocha site plan are not reserves and have not demonstrated economic viability. 
 Table 16-6:
SRK Production Plan 
  

																																	
	Item	  	Units	 	  	Year 1	 	  	Year 2	 	  	Year 3	 	  	Year 4	 	  	Year 5	 	  	Remaining	 	  	Total	 
	Yauricocha Production Plan	  	 	Tonnes	 	  	 	848,860	 	  	 	876,490	 	  	 	812,710	 	  	 	726,190	 	  	 	N/A	 	  	 	N/A	 	  	 	3,264,250	 
	SRK Reserves Schedule	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	Polymetallic	  	 

	Tonnes
Ag (g/t)
Cu %
Pb %
Zn %
Au (g/t)	 
 
 
 
 
 	  	 

	634,573
65.5
0.48
1.54
3.83
0.56	 
 
 
 
 
 	  	 

	654,214
51.0
0.53
1.15
3.35
0.61	 
 
 
 
 
 	  	 

	693,190
53.3
0.69
1.22
3.30
0.69	 
 
 
 
 
 	  	 

	744,597
52.1
1.18
0.68
2.73
0.53	 
 
 
 
 
 	  	 

	705,408
43.7
1.34
0.46
2.12
0.60	 
 
 
 
 
 	  	 

	117,290
38.6
0.93
1.15
4.02
0.49	 
 
 
 
 
 	  	 

 

 

	3,549,272
52.4
 0.86

1.00
 3.08

0.59
	 
 

 
  

 
  

	Pb Oxides	  	 

	Tonnes
Ag (g/t)
Cu %
Pb %
Zn %
Au (g/t)	 
 
 
 
 
 	  	 

	99,676
144.8
0.27
3.73
0.49
1.13	 
 
 
 
 
 	  	 

	104,025
237.9
0.30
3.41
0.46
1.18	 
 
 
 
 
 	  	 

	28,280
221.9
0.32
2.92
1.74
0.87	 
 
 
 
 
 	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 

 

 
	231,981
195.9
0.29
 3.49

0.63
 1.12
	 
 
 

 
  

 

	Cu Sulfide	  	 

	Tonnes
Ag (g/t)
Cu %
Pb %
Zn %
Au (g/t)	 
 
 
 
 
 	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 

 

	5,781
3.8
 5.77
0.06
0.63
0.10
	 
 

 
 
 
 
	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 
 

	-
 0.0

0.00
0.00
0.00
0.00
	 
  

 
 
 
 
	  	 
 

 

 
	5,781
 3.8

5.77
 0.06

0.63
 0.10
	 
  

 
  

 
  

	Total	  	 	Tonnes	 	  	 	734,249	 	  	 	758,239	 	  	 	727,250	 	  	 	744,597	 	  	 	705,408	 	  	 	117,290	 	  	 	3,787,033	 
	  	 	Ag (g/t)	 	  	 	76.2	 	  	 	76.7	 	  	 	59.4	 	  	 	52.1	 	  	 	43.7	 	  	 	38.6	 	  	 	61.1	 
	  	 	Cu %	 	  	 	0.45	 	  	 	0.50	 	  	 	0.72	 	  	 	1.18	 	  	 	1.34	 	  	 	0.93	 	  	 	0.84	 
	  	 	Pb %	 	  	 	1.84	 	  	 	1.46	 	  	 	1.27	 	  	 	0.68	 	  	 	0.46	 	  	 	1.15	 	  	 	1.15	 
	  	 	Zn %	 	  	 	3.38	 	  	 	2.95	 	  	 	3.22	 	  	 	2.73	 	  	 	2.12	 	  	 	4.02	 	  	 	2.92	 
	  	 	Au (g/t)	 	  	 	0.63	 	  	 	0.69	 	  	 	0.69	 	  	 	0.53	 	  	 	0.60	 	  	 	0.49	 	  	 	0.62	 

 Source: SRK 2016 

The SRK plan shows a reduced annual production tonnage compared to the Yauricocha production schedule provided by the site. This is due
to reduced mining rates to account for completion of the shaft infrastructure projects, as described in Section 16 and the use of balanced, practical level-to-level
advance rates in each of the zones. It is SRK’s opinion that the analysis of this representative production schedule, which incorporates the development plan (discussed below) and the capital and operating costs described in Section 21,
provides a reasonable test of the economic viability of the reserves. An average production rate of 734,000 tonnes per year results in a five-year mine life with 117,000 tonnes remaining in year 6 using the Proven and Probable Reserves estimated in
this report. 

  
  

					
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Resources and Reserves– Yauricocha Mine
	  	 Page
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	16.5	Development Schedule 

 Table 16-7 shows the
five-year schedule for development that supports production preparation, underground access, and infill drilling in the Yauricocha plan. The development for year 1 (2016) has been planned in detail. Years two through five are based on previous
years’ development requirements per tonne of production. The development cost is classified as mine operating expenses. SRK did not review a complete 3D
life-of-mine development and production design. A combination of various tools, including Datamine and AutoCADTM, is used to for short and long range planning. SRK
recommends completing a consolidated 3D life-of-mine (LoM) design to improve communication of the LoM plan, infill drilling and general mine planning. 

Table 16-7: Five-year Development Schedule 

 

																									
	Orientation  	 	Type  	 	Size (m)	 	  Year 1 

 (2016 Plan Year) 

 Development 

 (m) 
	 	 	 Year 2 

Development 
 (m) 
	 	 	 Year 3 

Development 
 (m) 
	 	 	 Year 4 

Development 
 (m) 
	 	 	  Year 5

 Development
  (m)
	 
	
Horizontal  
	 	
Development  
	 	3.0x3.0	 	 	2,280 	 	 	 	2,491 	 	 	 	2,306 	 	 	 	2,306 	 	 	 	2,306	 
	 	 	3.5x3.0	 	 	1,588 	 	 	 	1,735 	 	 	 	1,607 	 	 	 	1,607 	 	 	 	1,607	 
	 	 	3.5x3.5	 	 	2,415 	 	 	 	2,638 	 	 	 	2,443 	 	 	 	2,443 	 	 	 	2,443	 
	 	 	4.0x4.0	 	 	57 	 	 	 	62 	 	 	 	57 	 	 	 	57 	 	 	 	57	 
	 	 	Total Development    	 	 	6,341 	 	 	 	6,926 	 	 	 	6,413 	 	 	 	6,413 	 	 	 	6,413	 
	 	
Exploration  
	 	3.0x3.0	 	 	650 	 	 	 	710 	 	 	 	657 	 	 	 	657 	 	 	 	657	 
	 	 	Total Exploration	 	 	650 	 	 	 	710 	 	 	 	657 	 	 	 	657 	 	 	 	657	 
	 	
Preparation  
	 	1.5x2.1	 	 	321 	 	 	 	350 	 	 	 	324 	 	 	 	324 	 	 	 	324	 
	 	 	2.4x2.4	 	 	482 	 	 	 	527 	 	 	 	488 	 	 	 	488 	 	 	 	488	 
	 	 	3.0x3.0	 	 	7,483 	 	 	 	8,174 	 	 	 	7,569 	 	 	 	7,569 	 	 	 	7,569	 
	 	 	3.5x3.0	 	 	2,802 	 	 	 	3,061 	 	 	 	2,834 	 	 	 	2,834 	 	 	 	2,834	 
	 	 	3.5x3.5	 	 	304 	 	 	 	332 	 	 	 	307 	 	 	 	307 	 	 	 	307	 
	 	 	4.0x4.0	 	 	4 	 	 	 	4 	 	 	 	4 	 	 	 	4 	 	 	 	4	 
	 	 	Total Preparation	 	 	11,397 	 	 	 	12,449 	 	 	 	11,527 	 	 	 	11,527 	 	 	 	11,527	 
	 	
Total Horizontal
	 	 	18,388 	 	 	 	20,086 	 	 	 	18,598 	 	 	 	18,598 	 	 	 	18,598	 
	
Vertical  
	 	
Development  
	 	d=1.8	 	 	100 	 	 	 	109 	 	 	 	101 	 	 	 	101 	 	 	 	101	 
	 	 	Total Development	 	 	100 	 	 	 	109 	 	 	 	101 	 	 	 	101 	 	 	 	101	 
	 	
Exploration  
	 	d=1.8	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	 	Total Exploration	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	- 	 	 	 	-	 
	 	
Preparation  
	 	1.2x2.4	 	 	419 	 	 	 	458 	 	 	 	424 	 	 	 	424 	 	 	 	424	 
	 	 	1.5x1.5	 	 	123 	 	 	 	135 	 	 	 	125 	 	 	 	125 	 	 	 	125	 
	 	 	d=1.8	 	 	744 	 	 	 	812 	 	 	 	752 	 	 	 	752 	 	 	 	752	 
	 	 	Total Preparation	 	 	1,286 	 	 	 	1,405 	 	 	 	1,301 	 	 	 	1,301 	 	 	 	1,301	 
	 	
Total Vertical
	 	 	1,386 	 	 	 	1,514 	 	 	 	1,402 	 	 	 	1,402 	 	 	 	1,402	 
	
Grand Total
	 	 	19,774 	 	 	 	21,600 	 	 	 	20,000 	 	 	 	20,000 	 	 	 	20,000	 
	    Source: SRK 2016	 				 				 				 				 			

  

	16.6	Waste and Stockpile Design 

 A majority of the mine waste rock is used as backfill
underground. The vast majority of material (97% in 2015) is transported to the mill through the Klepetko Tunnel. Some waste material is used as backfill underground with the remaining transported to surface (242,600 tonnes in 2016) and placed on
waste dumps or used to backfill historic pits in accordance with the reclamation plan. No long-term or low-grade stockpiles are in use at the site. 

  
  

					
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Resources and Reserves– Yauricocha Mine
	  	 Page
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	16.7	Major Mining Equipment 

 A list of the major mining equipment used underground is
included in Table 16-8. 
 Table 16-8: Major Underground Mining
Equipment 
  

							
	Mining Equipment    	  	Count 	 	  	 
	Mini Jumbos	  	 	7 	 	  
	 Jumbos
	  	 	1 	 	  
	 Scooptrams
	  	 	35 	 	  
	 Dump Trucks
	  	 	2 	 	  
	 Utility Trucks
	  	 	2 	 	  
	 Locomotives
	  	 	23 	 	  
	
Mine Cars
	  	 	237 	 	  
	 Total
	  	 	307 	 	  

  Source: SRK, 2016 
  

	16.8	Ventilation 

 The ventilation system and ventilation equipment at Yauricocha is
divided into six zones. Zone I equipment includes the surface equipment and ventilation for levels 260 to 490. Zone II covers levels 720 to 820 in Esperanza, Gallito, Mascota, Antacaca Sur, Rosara and other nearby Cuerpos Pequenos orebodies. Zone
III covers Cachi-Cachi. Zone IV covers levels 870 to 1020 for Mascota, Esperanza and other nearby Cuerpos Pequenos orebodies. Zone V ventilates levels 870 to 1020 in Catas, Rosaura, Antacaca Sur and other Cuerpos Pequenos orebodies. The sixth zone,
known as “Chumpe” includes the equipment near the Chumpe Mill. Figure 16-9 shows an isometric view of the Cachi Cachi ventilation network. Figure 16-10 shows
an isometric view of the Mina Central ventilation network. 

  
  

					
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   Source: Minera Corona, 2016 

  Figure 16-9: Isometric View, Looking Northwest, of the Cachi-Cachi Ventilation Network 

  
  

					
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   Source: Minera Corona, 2016 

  Figure 16-10: Isometric View, Looking Northeast, of the Mina Central Ventilation Network 

  
  

					
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	17	Recovery Methods 

 Yauricocha operates a conventional concentration process that
includes a single crushing stage and two parallel circuits to process polymetallic ore and oxide ore. Each circuit consists of grinding, sequential differential flotation, dewatering of the concentrates, thickening and disposal of the flotation
tails. Yauricocha’s produces four mineral concentrates: lead oxide concentrate, lead sulfide concentrate, copper concentrate, and zinc concentrate. All the mineral concentrates are trucked off site. 

In addition to the ore supplied from its own mine, Yauricocha has been processing, and expects to continue processing material from
third-party sources whenever there is spare capacity in the processing facilities. 
 A new crushing plant is being constructed to
process oxide ore, with completion expected in 2016. The combined capacity of the expanded concentrator will be nominally 105,000 tonnes per month. Yauricocha has identified and expects to be soon working in a number of bottlenecks downstream from
the crushing plants. 
  

	17.1	Operation Results 

  

	17.1.1	Polymetallic Circuit 

 Yauricocha’s polymetallic circuit operates at
approximately 1,900 t/d of fresh feed (Table 17-1). The lower throughput observed in 2015 was because mine supply restrictions. Silver is preferentially deported to the lead sulfide concentrate in an
increasing proportion, starting with 2013 at 34.7%, and reaching 52.3% for the January-February 2016 period. 

Table 17-1: Yauricocha Polymetallic Circuit, 2013 to 2016 Performance 

 

																							
	Period  	  	Stream	  	Tonnes 	  	
Throughput 
(t/d) 

(at 365 d/y) 
	  	Grade	  	Recovery %
	  	  	  	  	 Ag 

(g/t) 
	  	 Pb 

(%) 
	  	 Cu 

(%) 
	  	 Zn 

(%) 
	  	Ag 	  	Pb 	  	Cu 	  	Zn 
	 2013
	  	Fresh Ore	  	641,268 	  	1,757 	  	83.2 	  	1.5 	  	0.7 	  	4.1 	  	100 	  	100 	  	100 	  	100 
	  	Cu Conc	  	12,728 	  	35 	  	1,057.8 	  	2.8 	  	23.2 	  	6.4 	  	25.2 	  	3.7 	  	70.6 	  	3.1 
	  	Pb Conc	  	14,258 	  	39 	  	1,300.0 	  	53.4 	  	1.8 	  	5.9 	  	34.7 	  	80.0 	  	6.3 	  	3.2 
	  	Zn Conc	  	45,412 	  	124 	  	122.1 	  	0.6 	  	1.0 	  	50.8 	  	10.4 	  	3.0 	  	10.8 	  	88.7 
	
2014
	  	Fresh Ore	  	703,713 	  	1,928 	  	83.8 	  	1.8 	  	0.7 	  	4.0 	  	100 	  	100 	  	100 	  	100 
	  	Cu Conc	  	12,782 	  	35 	  	1,115.0 	  	2.1 	  	26.4 	  	6.8 	  	24.2 	  	2.1 	  	68.0 	  	3.1 
	  	Pb Conc	  	18,055 	  	49 	  	1,397.9 	  	58.6 	  	1.5 	  	4.9 	  	42.8 	  	83.9 	  	5.3 	  	3.2 
	  	Zn Conc	  	48,657 	  	133 	  	114.9 	  	0.8 	  	1.4 	  	50.6 	  	9.5 	  	3.1 	  	13.2 	  	88.5 
	 2015
	  	Fresh Ore	  	618,460 	  	1,694 	  	78.6 	  	1.6 	  	0.6 	  	3.4 	  	100 	  	100 	  	100 	  	100 
	  	Cu Conc	  	8,145 	  	22 	  	1,277.6 	  	2.3 	  	27.8 	  	4.1 	  	21.4 	  	1.8 	  	65.3 	  	1.6 
	  	Pb Conc	  	14,463 	  	40 	  	1,655.7 	  	59.5 	  	1.1 	  	4.3 	  	49.3 	  	85.7 	  	4.7 	  	2.9 
	  	Zn Conc	  	37,587 	  	103 	  	91.2 	  	0.6 	  	1.2 	  	50.7 	  	7.1 	  	2.1 	  	13.4 	  	90.1 
	 2016(1)
	  	Fresh Ore	  	344,875 	  	1,890 	  	2.0 	  	1.7 	  	0.5 	  	4.0 	  	100 	  	100 	  	100 	  	100 
	  	Cu Conc	  	3,596 	  	20 	  	33.0 	  	2.3 	  	26.9 	  	5.2 	  	17.1 	  	1.4 	  	55.2 	  	1.4 
	  	Pb Conc	  	8,369 	  	46 	  	43.5 	  	59.3 	  	1.1 	  	4.8 	  	52.3 	  	84.9 	  	5.0 	  	2.9 
	  	Zn Conc	  	24,478 	  	134 	  	2.3 	  	0.6 	  	1.1 	  	50.8 	  	8.0 	  	2.4 	  	15.7 	  	89.8 

 (1)    January to June only 

Source: SRK, 2016 

  
  

					
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 The copper concentrate and zinc concentrate recover minor fractions of the silver with
values of 17.1% and 8%, respectively, in 2016. 
 Approximately 11% of the mill feed tonnage leaves the site as concentrate (Figure 17-1). In 2013, output reached 72,399 t; in 2014, the total concentrate production was 79,494 t. In 2015, the total concentrate production reached 60,196 t, which is significantly lower than previous years. This is
likely due to the mine supply upsets experienced during this period. The production in the first six months of 2016 has reached 36,442 t, which suggests the potential annual output could revert back to the 70,000 to 80,000 t range observed in
years 2013 and 2014. 
  

					
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	

 Source: SRK, 2016 

Figure 17-1: Yauricocha Polymetallic Circuit, Concentrate Output 

Zinc concentrate accounts for the largest output of all the concentrate streams. Zinc concentrate production ranged from 45,000 to
50,000 t/y, or approximately 65% of the total tonnage produce from the polymetallic circuit. 
 All the concentrate streams show
metal content values within the ranges accepted by smelters (Table 17-1). The concentrate grades for the 2016 show lead concentrate at 59.3% Pb in 2016, zinc concentrate at 50.8% Zn, and copper concentrate at
26.9% Cu. 
  

	17.1.2	Oxide Circuit 

 Yauricocha’s oxide circuit has a nominal capacity of 600 t/d,
and it has been operating in the range of 340 to 540 t/d (Table 17-2). Silver is preferentially deported to the lead oxide concentrate, it reached a recovery of 26.3% in 2013 and is at 29.7% in 2016. Gold
deportment appears more 

  
  

					
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variable. In 2016, the lead sulfide concentrate recovered 26.8% and the lead oxide concentrate accounted for 25% of the recovery of gold. 

Table 17-2: Yauricocha Oxide Circuit, 2013 to 2016 Performance 

 

																											
	Period  	  	Stream    	  	Tonnes  	  	
Throughput  

(t/d)  

(at 365 d/y)  
	  	Grade	  	Recovery %
	  	  	  	  	 Au  

(g/t)  
	  	 Ag  

(g/t)  
	  	 Pb  

(%)  
	  	 Cu  

(%)  
	  	 Zn  

(%)  
	  	Au  	  	Ag  	  	Pb  	  	Cu  	  	Zn  
	2013	  	Fresh Ore    	  	196,228  	  	537.6  	  	1.7  	  	277.8  	  	7.7  	  	0.6  	  	1.7  	  	100  	  	100  	  	100  	  	100  	  	100  
	  	Pb Conc    	  	2,603  	  	7.1  	  	24.0  	  	2,368.5  	  	23.8  	  	2.7  	  	11.6  	  	18.6  	  	11.3  	  	4.1  	  	5.5  	  	9.1  
	  	Pb Ox Conc    	  	17,188  	  	47.1  	  	4.4  	  	835.7  	  	50.0  	  	0.6  	  	1.3  	  	22.4  	  	26.3  	  	56.8  	  	7.6  	  	6.8  
	2014	  	Fresh Ore    	  	171,829  	  	470.8  	  	1.3  	  	233.6  	  	9.0  	  	0.5  	  	1.6  	  	100  	  	100  	  	100  	  	100  	  	100  
	  	Pb Conc    	  	2,231  	  	6.1  	  	17.9  	  	2,494.3  	  	27.5  	  	2.1  	  	13.5  	  	18.3  	  	13.9  	  	4.0  	  	5.2  	  	11.1  
	  	Pb Ox Conc    	  	20,082  	  	55.0  	  	3.4  	  	737.1  	  	49.2  	  	0.4  	  	0.7  	  	31.4  	  	36.9  	  	63.9  	  	9.0  	  	5.0  
	2015	  	Fresh Ore    	  	173,443  	  	475.2  	  	1.0  	  	184.0  	  	7.6  	  	0.7  	  	1.8  	  	100  	  	100  	  	100  	  	100  	  	100  
	  	Pb Conc        	  	3,154  	  	8.6  	  	10.4  	  	1,640.0  	  	28.9  	  	1.5  	  	7.5  	  	19.7  	  	16.2  	  	6.9  	  	4.2  	  	7.6  
	  	Pb Ox Conc	  	16,102  	  	44.1  	  	2.9  	  	697.7  	  	49.8  	  	0.4  	  	0.7  	  	28.5  	  	35.2  	  	60.5  	  	5.9  	  	3.5  
	2016(1)	  	Fresh Ore    	  	62,215  	  	340.9  	  	1.1  	  	4.9  	  	7.4  	  	0.6  	  	2.0  	  	100  	  	100  	  	100  	  	100  	  	100  
	  	Pb Conc    	  	1,642  	  	9.0  	  	11.0  	  	38.9  	  	26.1  	  	1.2  	  	16.7  	  	26.8  	  	20.9  	  	9.3  	  	5.7  	  	22.1  
	  	Pb Ox Conc    	  	5,205  	  	28.5  	  	3.2  	  	17.4  	  	48.6  	  	0.5  	  	1.0  	  	25.0  	  	29.7  	  	55.0  	  	6.9  	  	4.3  

 (1)    January to June only 

Source: SRK, 2016 
 Lead oxide
concentrate tonnage accounts for 76% to 90% of the total concentrate tonnage produced from Yauricocha’s oxide circuit. The mass of mill feed collected as concentrate (mass pull) ranges from approximately 10% to 13% (Figure 17-2). In 2013, total output reached 19,791 t; in 2014, the total concentrate production was 22,313 t; 19,256 tonnes were produced in 2015. The production in the first six months of 2016 has reached 6,847 t.

  
 

 
 Source: SRK, 2016 

Figure 17-2: Yauricocha Oxide Circuit, Concentrate Output 

  
  

					
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 The lead sulfide concentrate produced from the oxide circuit has consistently reached
lead grade below 30% (26.1% Pb in 2016), and represents a small tonnage when compared to the lead sulfide concentrate produced from the polymetallic circuit. Both concentrate streams are blended in a single concentrate thickener to become a single
final lead sulfide concentrate. 
  

	17.2	Processing Methods 

 Mine trucks deliver polymetallic ore and oxide ore to their
respective coarse ore bins (Figure 17-3). The single crushing plant batches ore that is delivery to dedicated ore bins to each processing line. Each process line includes a grinding stage, and a sequential
differential flotation plant. Concentrate streams are diverted to a dedicated thickener that feeds a dedicated concentrate filter. 

By 2016, Yauricocha expects to complete the construction of a new crushing plant that will be dedicated to process oxide ore. The
existing crushing plant will be dedicated to polymetallic ore. 
 The detailed flowsheets for the polymetallic and oxide plants are
presented in the Figure 17-4 and Figure 17-5, respectively. 

  
  

					
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 Source: SRK, 2016 

Figure 17-3: Yauricocha Block Flow Diagram 

  
  

					
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 Source: Sierra Metals, 2016 

Figure 17-4: Flowsheet Polymetallic Plant 

  
  

					
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 Source: Sierra Metals, 2016 

Figure 17-5: Flowsheet Oxide Plant 

  
  

					
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	17.3	Plant Design and Equipment Characteristics 

 Yauricocha uses conventional
concentration equipment. The operation is completely manual; no automation or online monitoring of the process variables are available throughout the circuits. Both circuits have a flotation feed target of approximately P80=140 μm, which is
monitored manually using a Marcy scale. 
 The completion of a new crushing plant by 2016 and the increase in throughput to an expected
overall 105,000 t/m will translate in bottlenecks throughout the circuit. Yauricocha is planning to increase the capacity and control of its concentrate thickeners by replacing their rake mechanisms with modern units using torque monitoring and rake
positioning system. Better control of the thickener’s discharge density will likely increase the concentrate filtration capacity. Yauricocha is working on identifying and solving additional bottlenecks that may surface at higher throughputs.

 Table 17-3 summarizes the major process equipment at the process facility. 

Table 17-3: Yauricocha Plant, Major Process Equipment 

 

													
	 	 	Area	 	Equipment	 	Specification	 	# Units 	 	kW 	 	 
		 	 Crushing
	 	Jaw crusher	 	24 inch x 36 inch	 	1 	 	45 	 	
		 	 Crushing
	 	Cone crusher	 	4 ft	 	1 	 	75 	 	
		 	 Oxide
	 	Rod mill	 	7 ft x 12 ft	 	1 	 	360 	 	
		 	 Oxide
	 	Ball Mill	 	8 ft x 6 ft	 	1 	 	186 	 	
		 	 Oxide
	 	Ball Mill	 	5 ft x 6 ft	 	1 	 	63 	 	
		 	 Oxide
	 	Flotation cell	 	7 ft x 7 ft	 	5 	 		 	
		 	 Oxide
	 	Flotation cell	 	Denver 60	 	22 	 		 	
		 	 Oxide
	 	Flotation cell	 	SK 80	 	1 	 		 	
		 	 Oxide
	 	Flotation cell	 	OK 1.5	 	25 	 		 	
		 	 Oxide
	 	Flotation cell	 	SP 18	 	8 	 		 	
		 	 Oxide
	 	Flotation cell	 	Denver 100	 	12 	 	 	 	
		 	 Oxide
	 	Tails thickener	 	30 ft x 10 ft	 	1 	 		 	
		 	 Oxide
	 	Pb Ox Conc Thickener 	 	50 ft x 10 ft	 	1 	 		 	
		 	 Oxide
	 	Pb Ox Press filter	 	1,200 x 1,200	 	1 	 	 	 	
		 	 Polymetallic 
	 	Ball Mill	 	8 ft x 10 ft	 	1 	 	360 	 	
		 	 Polymetallic
	 	Ball Mill	 	8 ft x 6 ft	 	1 	 	186 	 	
		 	 Polymetallic
	 	Rod mill	 	7 ft x 12 ft	 	1 	 	186 	 	
		 	 Polymetallic
	 	Flotation cell	 	SK 240	 	2 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	OK 30	 	2 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	Denver 60	 	4 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	SP18	 	7 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	Denver 100	 	6 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	Denver Sub A-24 5 	 	3 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	DR 300	 	7 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	10 ft x 10 ft	 	1 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	Denver 60	 	12 	 		 	
		 	 Polymetallic
	 	Flotation cell	 	DR 100	 	12 	 	 	 	
		 	 Polymetallic
	 	Cu Conc Thickener	 	30 ft x 10 ft	 	1 	 		 	
		 	 Polymetallic
	 	Pb Conc Thickener	 	50 ft x 10 ft	 	1 	 		 	
		 	 Polymetallic
	 	Zn Conc Thickener	 	50 ft x 10 ft	 	1 	 		 	
		 	 Polymetallic
	 	Tails thickener	 	100 ft x 10 ft	 	1 	 	 	 	
		 	 Polymetallic
	 	Zn Drum vacuum filter	 	8 ft x 12 ft	 	1 	 		 	
		 	 Polymetallic
	 	Pb Drum vacuum filter	 	8 ft x 12 ft	 	1 	 		 	
		 	 Polymetallic
	 	Cu Press filter	 	 	 	1 	 	 	 	

 Source: SRK/ Sierra Metals, 2016 

  
  

					
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	17.4	Consumable Requirements 

 The consumables statistics for 2016 are presented in
Table 17-4 for the polymetallic and oxide circuit. All consumables arrive to Yauricocha site on truck, mostly from a Lima port. 

Table 17-4: Polymetallic Circuit – Consumables 

 

									
	 	 	Plant	 	Item	 	g/t of Fresh Feed 	 	 
		 	 Polymetallic
	 	S04Zn	 	868 	 	
		 	 Polymetallic
	 	CNNa	 	168 	 	
		 	 Polymetallic
	 	Z-11	 	28 	 	
		 	 Polymetallic
	 	Z-6	 	26 	 	
		 	 Polymetallic
	 	MIBC	 	17 	 	
		 	 Polymetallic
	 	FROTHER-70	 	0 	 	
		 	 Polymetallic
	 	CAL	 	652 	 	
		 	 Polymetallic
	 	CuS04	 	261 	 	
		 	 Polymetallic
	 	BISULFITO	 	153 	 	
		 	 Polymetallic
	 	FOSFAT. MONOS.	 	0 	 	
		 	 Polymetallic
	 	Z-14	 	2 	 	
		 	 Polymetallic 
	 	BICROM. SODIO	 	0 	 	
		 	 Polymetallic
	 	CARBON WPH	 	0 	 	
		 	 Polymetallic
	 	BOLAS 1.1/2 inch Ø 	 	239 	 	
		 	 Polymetallic
	 	BOLAS 2 inch Ø	 	225 	 	
		 	 Polymetallic
	 	BARRAS 3 inch Ø	 	184 	 	
		 	 Oxide
	 	Na2Si03	 	0 	 	
		 	 Oxide
	 	A-31	 	0 	 	
		 	 Oxide
	 	(NH4) S03	 	0 	 	
		 	 Oxide
	 	S04Zn	 	130 	 	
		 	 Oxide
	 	PETROLEO	 	0 	 	
		 	 Oxide
	 	Z-14	 	416 	 	
		 	 Oxide
	 	NaCN	 	116 	 	
		 	 Oxide
	 	A 407	 	0 	 	
		 	 Oxide
	 	CuS04	 	0 	 	
		 	 Oxide
	 	MT-738	 	54 	 	
		 	 Oxide
	 	A-404	 	10 	 	
		 	 Oxide
	 	MIBC	 	0 	 	
		 	 Oxide
	 	FROTHER-70	 	68 	 	
		 	 Oxide
	 	BOLAS 1.1/2 inch Ø	 	0 	 	
		 	 Oxide
	 	BOLAS 2 inch Ø	 	0 	 	
		 	 Oxide
	 	BARRAS 3 inch Ø	 	49 	 	

 Source: SRK/ Sierra Metals, 2016 

  
  

					
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	18	Project Infrastructure 

 The Project is a mature producing mine and mill, with all
required infrastructure in-place and functional. The project has highway access with two routes to support Project needs with the regional capital Huancayo (population 340,000) within 100 km. Personnel travel
by bus to the site and live in one of the four camps (capacity approximately 2,000 people). There are currently approximately 1,700 personnel on-site with approximately 500 being employees and 1,200 being
contractors. 
 The on-site facilities include the processing plant, mine surface facilities,
underground mine facilities, tailings storage facility, and support facilities. The processing facility includes crushing, grinding, flotation; dewatering and concentrate separation, concentrate storage, and thickening and tailings discharge lines
to the TSF. The underground mine and surface facilities include headframes, hoist houses, shafts and winzes, ventilation structures, mine access tunnels, waste storage facilities, powder and primer magazines, underground shops, and diesel and
lubrications storage. The support facilities include four camps where personnel live while on-site, a laboratory, change houses and showers, cafeterias, school, medical facility, engineering and administrative
buildings, and miscellaneous equipment and electrical shops to support the operations. 
 The site has existing water systems to manage
water needs on-site. Water is sourced from Uñascocha Lake, Ococha Lake, Cachi-Cachi underground mine, and recycle/overflow water from the TSF depending on end use. Water treatment systems treat the raw
water for use as potable water or for service water in the plant. Additional systems treat the wastewater for further consumption or discharge. 

Energy for the site is available through electric power, compressed air, and diesel. The electric power is supplied by contract over an
existing 69 kV line to the site substation. The power is distributed for use in the underground or at the processing facility. 12.75 MVA is the load with approximately 70% of this being used at the mine and the remainder at the mill and other
facilities. A compressed air system is used underground and diesel is used in the diesel equipment on-site and in the 895 kW backup generator. 

The site has permitted systems for handling of waste including a TSF, waste rock storage facility, and systems to handle other
miscellaneous wastes. The TSF has recently been expanded and has capacity for 2 to 3 years at the current production levels. An on-site industrial landfill is used to dispose of the Project solid and domestic
waste. The Project collects waste oil, scrap metal, plastic, and paper and it is recycled at off-site licensed facilities. 

The site has an existing communications system that includes a fiber optic backbone with internet, telephone, and paging systems. The
security on-site is managed through checkpoints at the main access road, processing plan, and at the camp entrances. 

Logistics to the site are primary by truck with the five primary concentrate products being shipped by 30 to 40 t trucks to other
customer locations in Peru. Materials and supplies needed for Project operation are procured in Lima and delivered by truck. 
 A
general location map showing the facilities is shown in Figure 18-1. 

  
  

					
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 Source; Gustavson, 2015 NI 43-101 Technical Report on
Yauricocha Mine_Dec 3 2014 update May 11 2015 – (figure 5-1) 
 Figure 18-1: Project Infrastructure Location 

  
  

					
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	18.1	Access, Roads, and Local Communities 

 The project site is remote in the mountains
of Peru and accessed by road from Lima on the Lima-Huancayo-Yauricocha Highway. The route is approximately 260 km. The final section of the road is unpaved. A second access uses the paved Pan-American Highway
from Lima for about 137 km then the old Pan-American Highway and the Cañete-Yauyos highway on to Yauricocha. This route is approximately 344 km. The site has
developed a number of gravel secondary roads for access to the mine area (to the west), mill (to the east), and tailings areas (centrally located) as well other areas of the project. Figure 18-2 shows the
routes. 
  
 

 
 Source: Sierra Metals, 2016 

Figure 18-2: Routes from Lima to the Project 

The Pachacayo railway station is located approximately 100 km north or the Project. 

The largest community of substance is Huancayo located approximately 100 km to the east-northeast. Huancayo and the surrounding
communities have a combined population of approximately 340,000 people. Huancayo is the capital of the Junin Region of Peru. 
  

	18.2	Process Support Facilities 

 A fully developed processing facility with required
support facilities exists on-site and is discussed in detail in Section 17. The plant facility includes crushing, grinding, flotation; dewatering and concentrate separation, concentrate storage, and
thickening and tailings discharge lines to the 

  
  

					
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tailings storage facility. The process area also has shops, sample laboratory, change house and shower, and engineering/administration facilities. 

 

	18.3	Mine Operations and Support Facilities 

 The mine surface facilities include the
hoists and headframes that support the operation of the two shafts on-site. Additionally, change house and dry facilities, shops, engineering, and mine administrative facilities are in place. The mine area
layout can be seen in Figure 18-3. 
  
 

 
 Source: Sierra Metals, 2013 

Figure 18-3: Mining Area Infrastructure 

 

	18.3.1	Underground Infrastructure 

 Access and Haulage 

The underground mine access is through existing shafts or tunnels. The site currently has three shafts in service, The Central shaft,
Mascota shaft, and the Cachi-Cachi shaft. The new Yauricocha shaft, technically a winze, is currently under construction and is expected to be commissioned by 2019. 

The shafts are typically used to move men and materials but can move ore and waste to the surface if necessary. The shafts also are
primarily used to move ore and waste from depth to the 720 haulage level where the material is hauled through tunnels by rail from the underground to the surface. All ore and waste hauling to the surface is currently moved through the tunnels. 

  
  

					
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 The 810 m deep Central shaft services levels 970 to 690 and has a capacity of 74 t/h
for ore and 67 t/h for waste. The Mascota shaft is able to move 135 t/h of ore and 110 t/h for waste. The 920 m Mascota services levels 1100 to 680. The Mascota shaft is being deepened to below the 1120 level and will provide access to the
1120 level and ore/waste haulage from the level. The Mascota shaft will utilize a new Hepburn hoist and be able to move approximately 106,000 t/month to the 1430 level. The system will move both or and waste. Commissioning is expected to be complete
early in 2017. The new Yauricocha winze will start on 720 level and end below the1300 level. The 580 m winze will provide access to the levels that exist every 50 ft below to the 1120 level and to new development below to the 1300 level. The
Yauricocha shaft will work in tandem with the Mascota shaft until late 2020. The Yauricocha shaft will utilize an 80,000 t capacity hoist that will be operated at 80% of this capacity. The shaft will handle both ore and waste. The Cachi Cachi shaft
provides access to the 870 level shaft bottom at 910 level and handles only Cachi Cachi orebody waste and ore. 
 The subsidence
associated with the sub-level caving mining method has begun to lightly impact the Mascota and Central shafts in the upper levels. The Project is monitoring the status with surveying methods. Mitigation will
be considered once further data is collected. 
 The existing primary haulage is through the 4 km. Klepetko Tunnel (3 m high x 3 m
wide) located on level 720. The haulage is achieved by 20 t electric trolley locomotive with cars of 3.1 to 4.5m3 size. The new Yauricocha tunnel (3.5m x 3.5m) is being developed from the surface
(Chumpe). The tunnel is planned to be 4.7 km in length. The new tunnel will access the mine at the 720 level. The tunnel is being added to increase the flexibility of haulage and to debottleneck haulage that can only currently occur out of the
Klepetko tunnel. The tunnel will serve as a ventilation conduit as well as provide access and haulage. As of August 2016, approximately 290 m remained to complete the tunnel. The project is expected to complete by the end of 2016. 

The Central incline shaft is located between the 920 level and services down to the 1070 level. The Central incline shaft is a production
shaft that utilizes a 200 HP winch that pulls three 1.5 t railcars between the levels. 
 Ventilation 

The underground mine has a ventilation system that supports the Cachi-Cachi mine and a separate ventilation system that supports the
Central mine. 
 The ventilation system at Cachi-Cachi is an intake system that pulls fresh air through the Klepetko Tunnel and the
main decline (Bocamina 410) at Cachi-Cachi. The air exhausts through three boreholes at the surface, Borehole (Chimera) 919, the “Rossy” borehole, and the “Raquelita” borehole. A SIVA 139HP primary fan and is located at Borehole
919 (level 300) and pulls approximately 50,000 cfm. The air moves into the mine through the main decline and down to the lower levels of the mine through the shaft to where production is in progress and then exhausted through vent raises and shafts
to the surface. Ventilation doors are installed and booster fans are used throughout the mine to maintain the air quality. 
 The
ventilation system at the Central mine intakes air from the Central mine main decline, the Mascota and Central shafts, Raise Bore #3, and the Klepetko Tunnel. The intake air is approximately 159,000 cfm. The air exhausts through Raisebore #2 and
Raisebore #1. The primary fans are located at these locations with a Joy 180 HP fan at Raisebore #1 and a Joy 200 HP fan at Raisebore 

  
  

					
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#2. Air is pulled through the workings and routed with ventilation doors and booster fans to maintain air quality. 
  

	18.4	Additional Support Facilities 

 The employees live
on-site in four camps plus a hotel with facilities for approximately 2,000 people. The camps include the supervisory camp, the mill camp, and the mining camp that also houses mining contractors. There are
approximately 1,700 people (500 employees/1,200 contractors) currently working on the site. The camps include a school, dining facilities, exercise facilities, and housing facilities. 

Other general facilities include engineering and geology, safety, and environmental offices and buildings. A health clinic on-site is staffed by a National Health Service doctor. 
 There are additional underground shops,
powder and primer magazines, and fuel and oil storage facilities. 
  

	18.5	Water Systems 

  

	18.5.1	Water Supply 

 Water is sourced from Uñascocha Lake, Ococha Lake,
Cachi-Cachi underground mine, and recycle/overflow water from the tailings storage facility (TSF) depending on end use. The location of the two lakes can be seen in Figure 18-1. 

 

	18.5.2	Potable Water 

 Potable water is sourced from Uñascocha Lake and Ococha Lake
and treated by on-site water treatment systems for potable water consumption. 
  

	18.5.3	Service Water 

 Service water is used primarily at the Chumpe Mill and small
quantities used for dust control on the mine surface operations. The service water is sourced from the Cachi-Cachi underground mine and delivered through Klepetko tunnel. Additional service water is obtained from the TSF facilities. If these sources
require supplementation, the water is obtained from Uñascocha Lake and Ococha Lake. 
  

	18.5.4	Water Treatment 

 Wastewater from the Chumpe mill is treated at the Klepetko waste
water treatment plant. The plant has a capacity of 17.0 L/s. The treated effluent is re-used in the mill with excess discharged to the Chumpe River. Sludge generated by the treatment plant is placed in the
TSF. Domestic waste water from the camps is treated by one of the two wastewater treatment plants. 
  

	18.6	Energy Supply and Distribution 

  

	18.6.1	Power Supply and Distribution 

 The current total load for the Project is 12.75
MVA. The primary power is provided through Sistema Interconectado Nacional (SINAC) to the Oroya Substation. A three phase, 60 hertz, 69 kV power line 

  
  

					
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owned and operated by Statkraft (SN Power Peru S.A.) through its subsidiary, Electroandes S.A. delivers electricity from the Oroya Substation to the Project substation at Chumpe. Power is
transformed to 12 KV line voltage and approximately 9 MVA is supplied to the mine and 3.75 MVA is supplied to the processing plant. Statkraft owns, operates, and is responsible for maintenance of the Chumpe substation and the line distribution from
the Chumpe substation to the mine substation and to the processing plant substation. 895 kW of backup generation is available through a CAT model 3512B backup generator. 

The Project has a 10 year contract that was signed in November of 2013 and runs through October 2023. 

 

	18.6.2	Compressed Air 

 The mine uses compressed air for powering air chutes, drilling
equipment, small pumps, and miscellaneous tools. The system includes compressors and tanks at the surface with piping distributing the compressed air throughout the mine. 

The mill has a smaller system for control air and miscellaneous tools. 

 

	18.6.3	Fuel 

 The site has diesel storage tanks
on-site that store fuel for use in surface mining equipment and that can be transferred to the underground fuel storage facilities. These are existing tanks that have been in use for a number of year. Fuel is
purchased from vendors in Huancayo and transported to the site by truck. 
  

	18.7	Waste Handling and Management 

  

	18.7.1	Tailings Management Area 

 Tailings from the Chumpe Mill are stored in on-site tailings facilities. The tailings undergo flocculation and settling, and then are processed through a thickener and piped to the existing permitted tailings facility. The dam has a permitted capacity of
approximately 2.5 Mt based on the last expansion completed in early 2016 (Step 4 expansion). The facility will allow storage of the tailings material for approximately three years based on production of 800,000 t/y. An expansion will occur at that
time (Step 5), currently expected to be 2018. 
 Yauricocha hired Tierra Group International, LTD to review and design the required
tailing dam facility so the mine can continue producing. This most recent tailings dam is known as the Stage 4 expansion. The findings in this section was selected from “Informe Final – CQA – TGI” volumes I, II, III and IV. This
document was prepared and delivered to Yauricocha on February 2016. SRK has summarized the findings in this section and it does not take any design responsibility since SRK is not the “Engineer on Record” for the design. 

Figure 18-4 shows the as-built drawing of the latest
embankment on-site, the Stage 4 expansion. 

  
  

					
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 Source: Tierra Group International, LTD 2016 

Figure 18-4: Stage 4 Tailings Storage Facility (TSF)
As-built Drawing 

  
  

					
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 Tierra Group International is the engineering company that designed and reviewed the
construction and inspection of all works performed on the dam. In the document reviewed, daily logs and pictures of all tasks were recorded to ensure a record was kept. According to the document, QA/QC was done on the dam and the company generated
an appendix on the document describing all the QA/QC procedures that meet industry best practices. All laboratory tests were performed in many known laboratories and it does follow industry guidelines. 

Construction Methodology 

The embankment is a centerline/downstream construction built using 0.3 m lifts compacted using 10 t compactors. In areas near the
mountain contacts, the lifts were 0.10 m. 
 Two materials types were used for the construction of the embankment. The first is a run
of mine material with most of the material is less than 13 mm and an averaged dry density of 2.116 gcm3. The installed embankment with this material has a volume of 15.7 Mm3. During installation, the moisture was estimated to be 8.5%. 
 The second material
was crushed and screened on-site and is typically less than 76 mm in size. The material had an averaged dry density of 2.4 gcm3 and a moisture during
installation of 8.7%. 
 A primary Terra-mesh system was installed with a volume of 0.46
km3 with an average density of 2.421 gcm3. A second Terramesh system was installed with a 1.3
km3 volume. 
 The total fill for the Phase 4 of the dam is 130 Mm3. The top of the dam will be elevation 4,529 and is approximately 44.5 m in height. The width of the crown is 7 m. The dike length is 267 m. 

Currently there are five piezometers working on the dam and three piezometers that are not working. Figure
18-5 shows the piezometer locations. 

  
  

					
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 The piezometers are noted in red 

Source: Tierra Group International, LTD 2016 

Figure 18-5: Piezometer Location in Stage 4 Tailings Storage Facility (TSF) 

KCB Engineering also provided support to construct the TSF. Figure 18-6 shows the as-built for the Terra-mesh. 

  
  

					
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 Source: Tierra Group International, LTD 2016 

Figure 18-6: Terra-Mesh As-built Drawings 

  
  

					
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 Seismicity 

Cesel Engineers (2006) have conducted the study of seismic risk. The results of regression analysis on seismic records from
Huaytapallana, Cavesh and Quinoa were developed specifically for the project area. The analyses results indicate that the extreme earthquake (largest earthquake that a seismogenic zone can produce under known tectonic conditions) would a 7.25 Ms
magnitude earthquake from a shallow subduction event 60 km away. 
 The study recommended, based on the results of deterministic and
probabilistic analyses, that a design earthquake for the 475 years return period event have a peak horizontal ground acceleration (PGA) of 0.40 g. This PGA should be used for design of all structures at the mine located on firm soil or rock. For
pseudo-static design of slope embankments and walls, 50% of the PGA has been recommended, or 0.20% of gravitational acceleration for lateral seismic coefficient in the project area, including the tailings dam. 

Factor of Safety Analysis 

Based on the documentation provided, the dam was designed with a minimum factor of safety of 1.5, but no specific sections were provided.
Additionally, the engineering companies (KCB and Tierra) stated that geotechnical studies were performed but SRK did not confirm this information. 
  

	18.7.2	Waste Rock Storage 

 Waste rock generated by the Project is used as backfill
underground with the remainder transported to the surface, primarily through the Klepetko Tunnel. There is an existing waste storage area on the surface and a historic open pit that is proximate to the shaft area that will be backfilled as a
reclamation requirement. Some development material will be hoisted through the shafts to backfill the pit. 
 There is a borrow area on-site for general construction purposes and to support tailings construction. 
  

	18.7.3	Other Waste Handling 

 An on-site
industrial landfill is used to dispose of the Project solid and domestic waste. The Project collects waste oil, scrap metal, plastic, and paper and it is recycled at off-site licensed facilities. 

 

	18.8	Logistics 

 Materials and supplies needed for Project operation are procured in
Lima and delivered by truck. Labor is bussed to the site on the existing highways and roads from Lima or Huancayo. 
 The concentrates
produced by the Project are transported overland by 30 to 40 t truck to the refinery. Costs for transportation, insurance, and related charges are included in the treatment costs for concentrates. The concentrates are processed by a smelter in Peru
with treatment and refining charges agreed to in advance under annual contracts. 
  

	18.9	Off-Site Infrastructure and Logistics Requirements 

The Project has no offsite infrastructure of substance and the five concentrate products are trucked to customer locations in Peru. The
products consist of lead sulfide concentrate, copper concentrate (polymetallic), copper concentrate (campaign), zinc concentrate, lead oxide concentrate. 

  
  

					
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	18.10	Communications and Security 

 The site has an existing communications system that
includes local internet, a fiber optic backbone, a telephone system, and an underground telephone system. A paging system is also available at the plant and mine. 

There are security checkpoints at the main access road, the mill site, and at the camp entrance. 

  
  

					
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	19	Market Studies and Contracts 

 Yauricocha is a polymetallic operation that
currently produces lead, zinc and copper concentrates, which are sold to various smelters with slightly different specifications. Yauricocha currently holds contracts for the provision of its various concentrates, these contracts were not reviewed
by SRK, but their terms were included in the provided technical economic model. The terms appear reasonable and in line with similar operations SRK is familiar with. No material concentrate contract changes are expected in the foreseeable future.

 The metals produced from the Yauricocha concentrates are zinc, copper, silver, lead and gold. These commodities are traded on
various metals exchanges. Metal prices were provided by Sierra Metals and are based July 19, 2016 BMO Capital Markets Street Consensus Commodity prices. The provided price curve has good adherence with current spot prices and general consensus
of market forecasters. The metal price assumption are presented in Table 19-1. 
 Table 19-1: Metal Prices 
  

																	
	Year	 	Au (US$/oz) 	 	Ag (US$/oz) 	 	Cu (US$/lb) 	 	Pb (US$/lb) 	 	Zn (US$/lb) 	 	 	 	 	 
	 2016
	 	1,251.00 	 	16.76 	 	2.28 	 	0.86 	 	0.94 	 				 	
	 2017
	 	1,300.00 	 	16.50 	 	2.38 	 	0.86 	 	0.93 	 				 	
	 2018
	 	1,293.00 	 	17.00 	 	2.50 	 	0.90 	 	0.98 	 				 	
	 2019
	 	1,300.00 	 	17.62 	 	2.75 	 	0.92 	 	1.00 	 				 	
	 2020
	 	1,300.00 	 	18.00 	 	2.93 	 	0.95 	 	1.00 	 				 	
	
2021
	 	1,300.00 	 	18.00 	 	3.00 	 	0.95 	 	1.00 	 				 	

 Source: Sierra Metals, 2016 

  
  

					
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	20	Environmental Studies, Permitting and Social or Community Impact 

 This section
contains a review of the environmental and social aspects of the Acumulación Yauricocha Production Unit, politically located in the district of Alis, province of Yauyos in the department of Lima, Peru. 

SRK relied on information provided by Yauricocha personnel and documents available from the Ministry of Energy and Mines as documented in
the References section. 
  

	20.1	Environmental Studies and Background Information 

 The mine known as
“Acumulación Yauricocha Unit” is located on the property of the San Lorenzo de Alis and Laraos Peasants Communities and in the buffer zone of the Nor Yauyos-Cochas landscape reserve. It was established by the Supreme Decree N° 033-2001-AG (06/03/2001) which has a Master Plan 2006-2011 by the National Institute of Natural Resources Natural Protected Area Office (INRENA, Instituto Nacional de
Recursos Naturales, IANP, Intendencia de Áreas Naturales Protegidas). 
 Historically, mining
activities are known to exist at Yauricocha before 1862. In 1927, the Cerro de Pasco Copper Corporation acquired the concessions and produced cupper oxides from 1948 to 1953. High grade sulfides were intercepted in 1954 and sent to the La Oroya
smelter. The construction of the Klepetko tunnel and the Chumpe mineral processing plant (to treat copper-lead-zinc-silver) concluded in 1966. In 1974, Yauricocha was run by Centromin Perú S.A. In 2000,
Yauricocha was acquired by SMCSA through a privatization process. 
 Geographically the Acumulación Yauricocha Unit is located
on the western slopes of the Peruvian central mountain range (Cordillera Central), approximately 16 km west of the continental divide. Slopes are rugged and all run-offs converge to the Chumpe creek and the
Tinco River, which belongs to the Cañete watershed. 
 In general, the weather is cold and wet (tundra), with an average annual
rainfall of 700 mm, average annual temperatures of 7°C and perpetual snow in the mountains. It has rainy summers and dry winters with moderate frost (Senhami). 

Environmentally it is located in the Puna ecoregion, at an altitude between 4,150 and 4,700 masl. As to Holdridge life zones, the
area includes: Very Humid Sub-Alpine Paramo (pmh-SaT), Pluvial Alpine Tundra (tp-AT) and Tropical snow (NT). 

Soils are suitable for cold climate grassland and protection and actual land use is limited to urban (private or government), natural
pastures and unproductive land. 
 SMCSA has managed its operations in Acumulación Yauricocha based on: 

 

	 	•	 	 The Environmental Adjustment and Management Plan (PAMA, Plan de Adecuación y Manejo Ambiental) presented by
CENTROMIN (approved by Directorial resolution N° 015-97-EM/DGM, 01/03/1997); 

	 	•	 	 The modification of the implementation nine projects of the PAMA of the Yauricocha Production Unit presented by
CENTROMIN, (approved by Directorial resolution N° 159-2002-EM-DGAA, 05/23/2002); 

  
  

					
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	 	•	 	 The implementation of the PAMA “Yauricocha” Administrative Economic Unit by SMCSA (approved by Directorial
resolution N° 031-2007-MINEM-DGM, 02/08/2007); 

	 	•	 	 The Mine Closure Plan (PCM) at feasibility level of the Yauricocha Mining Unit, presented by SMCSA (approved by
Directorial resolution N° 258-2009-MINEM-AAM, 08/24/2009); 

	 	•	 	 Authorization to operate the Mill N° 4 (8’x10’) and the amendment of the “Yauricocha
Chumpe” Benefit Concession to the expanded capacity of 2500 TMD, presented by SMCSA (approved by Resolution
N° 279-2010-MINEM-DGM-V, 07/14/2010); 

	 	•	 	 The Yauricocha Mining Unit Mine Closure Plan Update, presented by SMCSA (approved by Directorial resolution N° 495-2013-MINEM-AAM, 12/17/2013); 

	 	•	 	 Supporting Technical Reports to the PAMA (ITS, Informe Técnico Sustentatorio) “Expanding the capacity of the
Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (approved by Directorial resolution N° 242-2015-MINEM-DGAAM, 06/09/2015); 

	 	•	 	 Supporting Technical Report to the PAMA (ITS) “Technological improvement of the domestic waste water treatment
system” (approved by Directorial resolution N° 486-2015-MINEM-DGAAM, 11/12/2015); and 

	 	•	 	 Approval of the amendment of the Closure Plan of the Yauricocha Mining Unit (approved by Directorial resolution N° 002-2016-MINEM-DGAAM, 01/08/2016). 

 Note that the Supporting Technical Reports
are prepared in compliance with the Supreme Decree N° 054-2013-PCM (article Art. 4) and R.M. N° 120-2014-MEM/DM, and refers to the modification of mining components, or extensions and upgrades in the mining unit, in exploration and exploitation projects when the environmental impacts are insignificant.

 A list of approved environmental and closure permits are included in section 20.2 Required Permits and Status. 

 

	20.2	Required Permits and Status 

  

	20.2.1	Required Permits 

 SMCSA has all relevant permits required for the current mining
and metallurgical operations to support a capacity of 3000 t/d. These permits include operating licenses, mining and process concessions, capacity extension permits, exploration permits and their extensions, water use license, discharge
permits, sanitary treatment plants permits, and environmental management instruments among others. 
 SMCSA also has a Community
Relations Plan including annual assessment, records, minutes, contracts and agreements. 
 Among the relevant permits, the following
can be highlighted: 
  

	 	•	 	 Land ownership titles; 

	 	•	 	 Public registrations (SUNARP) of: 

	 	o	Process concession, 

	 	o	Mining concession, 

	 	o	Constitution of “Acumulación Yauricocha”, and 

	 	o	Land ownership and Records owned property (land surface) and lease; and 

	 	•	 	 2016 water use right proof of payment. 

  
  

					
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	20.2.2	State of approved permits 

 SMCSA ́s list of permits and licenses is shown in
Table 20-1 which was prepared based on reports of the Ministry of Energy and Mines (MINEM), Public Registry of Mining (current INGEMMET), National Water Authority (ANA), National Public Registry Authority
(SUNARP), General Directorate of Environmental Health (DIGESA), notary and information provided by SMCSA. 
 Note that the following
permits were not available for review: 
  

	 	•	 	 Mine ventilation permit; 

	 	•	 	 2016‘s Closure Plan financial guarantee accreditation; 

	 	•	 	 2016 ́s mining concessions proof of payment; 

	 	•	 	 2016 ́s processing concession proof of payment; and 

	 	•	 	 Landfill permit. 

	 	•	 	 proof of payment; and 

	 	•	 	 Landfill permit. 

  
  

					
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 Table 20-1: Approved Operation and Closure Permits 

 

													
	Item	 	Date	 	Expiry date  	 	Status  	 	Emitted by  	 	Permits/licensees	 	Document
	Environmental Management Instruments
	 	 	01/13/1997    	 	 	 	Valid	 	MINEM	 	Approval of the PAMA (Plan de Adecuación y Manejo Ambiental), Environmental Adjustment and Management Program of the
Yauricocha Production Unit of CENTROMIN located in the district of Alis, province of Yauyos and department of Lima	 	Directorial resolution
N° 015-97-EM/DGM
	 	 	05/23/2002	 	 	 	Valid	 	MINEM	 	Approval of the modification of the implementation of the PAMA of the Yauricocha Production Unit by CENTROMIN	 	Directorial resolution N° 159-2002-EM-DGAA
	 	 	02/08/2007	 	 	 	Valid	 	MINEM	 	Approval of the implementation of the PAMA “Yauricocha” Administrative Economic Unit by SMCSA	 	 Directorial resolution N° 031-2007-MINEM-DGM
 Report N° 963-2006-MINEM-DGM-FMI-MA

	 	 	08/24/2009	 	 	 	Valid	 	MINEM	 	Approval of the Mine Closure Plan (PCM) at feasibility level of the Yauricocha Mining Unit, presented by SMCSA	 	 Directorial resolution N° 258-2009-MINEM-AAM
 Report N° 999-2009-MINEM-AAM-CAH-MES-ABR

	 	 	12/17/2013	 	 	 	Valid	 	MINEM	 	Approval of the Yauricocha Mining Unit Mine Closure Plan Update, presented by SMCSA	 	 Directorial resolution N° 495-2013-MINEM-AAM
 Informe N° 1683-2013-MINEM-AAM-MPC-RPP-ADB-LRM

	 	 	06/09/2015	 	 	 	Valid	 	MINEM	 	Conformity of the Supporting Technical Report (ITS, Informe Técnico Sustentatorio) to the PAMA for “Expanding the
capacity of the Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD”, presented by SMCSA	 	 Directorial resolution N° 242-2015-MINEM-DGAAM
 Report N°
503-2015-MINEM.DGAAM-DNAM-DGAM-D

	 	 	11/12/2015	 	 	 	Valid	 	MINEM	 	Conformity of the second Supporting Technical Report (ITS) to the PAMA for “Technological improvement of the domestic waste
water treatment system “ PAMA Accumulation Unit Yauricocha presented by SMCSA	 	 Directorial resolution N° 486-2015-MINEM-DGAAM
 Report N°
936-2015-MINEM-DGAAM-DNAM-DGAM-D

	 	 	01/08/2016	 	 	 	Valid	 	MINEM	 	Approval of the amendment of the Closure Plan of the Yauricocha Mining Unit, presented by SMCSA	 	 Directorial resolution N° 002-2016-MINEM-DGAAM
 Report N°
021-2016-MINEM-DGAAM-DNAM-DGAM-PC

	Mineral Process Concession
	 	 	04/18/1996	 	 	 	Expired  	 	MINEM	 	Definite authorization to operate the “ Yauricocha Chumpe Processing Plant” at an installed capacity of 1350 TMD,
CENTROMIN	 	Report N°164-96-EM-DGM-DPDM
	 	 	09/04/2008	 	 	 	Valid	 	MINEM	 	Authorization to operate the “Yauricocha Chumpe Processing Plant “, including an additional lead circuit and expanding
its capacity to 2010 TMD, SMCSA	 	 Resolution N° 549-2008-MINEM-DGM-V
 Report N° 178-2008-MINEM-DGM-DTM-PB

	 	 	09/16/2009	 	 	 	Valid	 	MINEM	 	Authorization to raise the Yauricocha tailings deposit dam crest by an additional 20 m in 4 stages, SMCSA	 	 Resolution N° 714-2009-MINEM-DGM-V
 Report 242-2009-MINEM-DGM-DTM-PB

	 	 	07/14/2010	 	 	 	Valid	 	MINEM	 	Authorization to operate the Mill No. 4 (8 ‘x 10’) and the amendment of the “Yauricocha Chumpe” Benefit
Concession to the expanded capacity of 2500 TMD, SMCSA	 	 Resolution N°279-2010-MINEM-DGM-V
 Report N° 207-2010-MINEM-DGM-DTM-PB

	 	 	03/04/2011	 	 	 	Valid	 	MINEM	 	Operating license for the Ball Mill (5 ‘x 6’) for regrinding, installed in “Yauricocha Chumpe Processing Plant,
SMCSA	 	 Resolution N°088-2011-MINEM-DGM-V
 Report N° 075-2011-MINEM-DGM-DTM-PB

	 	 	04/03/2012	 	 	 	Valid	 	MINEM	 	Authorization to operate the “Yauricocha” tailings deposit up to 4519 m in altitude (second stage) with a free board of
2 m, SMCSA	 	 Resolution N° 112-2012-MINEM-DGM-V
 Report N° 112-2012-MINEM-DGM-DTM-PB

	 	 	04/29/2014	 	 	 	Valid	 	MINEM	 	Authorization to operate the raised “Yauricocha- Chumpe “ tailings deposit up to 4522 m in altitude, SMCSA	 	 Resolution N° 0159-2014-MINEM-DGM-V
 Report N° 128-2014-MINEM-DGM-DTM-PB

	 	 	08/03/2015	 	 	 	Valid	 	MINEM	 	Authorization to operate the raised “Yauricocha- Chumpe “ tailings	 	Resolution
N° 0344-2015-MINEM-DGM-V

  
  

					
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	Item	 	Date	 	Expiry date  	 	Status  	 	Emitted by  	 	Permits/licensees	 	Document
	 	 	 	 	 	 	 	 	 	 	deposit up to 4524 m in altitude (third stage)	 	Report N° 240-2015-MINEM-DGM-DTM-PB
	 	 	10/14/2015	 	 	 	Valid	 	MINEM	 	Authorization to build, implement equipment and operate as to the Chumpe Process Plant Extension Project 2500 to 3000 TMD of the
“Yauricocha Chumpe” benefit concession, SMCSA	 	 Resolution N° 0460-2015-MINEM-DGM-MV
 Report N° 326-2015-MINEM-DGM-DTM-PB

	Land Ownership
	 	 	--	 	12/21/2021	 	Valid	 	SMCSA	 	Vílchez Yucra family (way of passage and installations)	 	--
	 	 	--	 	03/07/2022	 	Valid	 	SMCSA.	 	Varillas Vílchez family (56 ha for mining use)	 	--
	 	 	--	 	07/31/2037	 	Valid	 	SMCSA	 	San Lorenzo de Altis Community (696,6630 ha for mining use)	 	--
	 	 	--	 	Indefinite	 	Valid	 	SMCSA	 	Mineral processing concession: Yauricocha Chumpe processing plant (148.5 ha for mining use and an authorized capacity for 2500
TMD)	 	--
	 	 	--	 	Indefinite	 	Valid	 	SMCSA	 	Mining concession: “Acumulación Yauricocha” (18,777.9238 ha for mining use)	 	--
	Water: Use, Discharge and Sanitation Facilities
	 	 	2004	 	 	 	Expired	 	 	 	Water use license for population purposes in the Yauricocha Production Unit, whose collection point is the Laguna Acococha –
Uñascocha	 	Administrative resolution N°249-2004-GR-LP-DRA-MOC
	 	 	2003	 	 	 	Expired	 	 	 	Water use license for population purposes in the Yauricocha Production Unit whose collection point is the Huacuypacha spring	 	Administrative resolution N° 1355-2003-AG/DRA-LC/ATDR-MOC
	 	 	2004	 	 	 	Expired	 	 	 	Water use license for industrial purposes in the Yauricocha Production Unit whose collection point is the tunnel Klepetko	 	Administrative resolution N° 142-2004-GR-LP-DRA-MOC
	 	 	2004	 	 	 	Expired	 	 	 	Water use license for mining purposes in the Yauricocha Production Unit	 	Administrative resolution N° 249-2004-AG/DRA-LC/ATDR-MOC
	 	 	2005	 	 	 	Expired	 	 	 	Water use license for population purposes in the Yauricocha Production Unit	 	Administrative resolution N° 225-2005-GR-LP/DRA-MOC
	 	 	07/16/2007	 	 	 	Expired	 	DIGESA	 	Sanitary license of the treatment and disposal system for domestic wastes waters of the Yauricocha Production Unit, SMCSA	 	Directorial resolution N° 1832-2007-DIGESA-SA
	 	 	01/25/2008	 	 	 	Expired	 	DIGESA	 	Sanitary license for the treatment of potable water for the Yauricocha and Chumpe mining camps of the Yauricocha Production
Unit	 	Directorial resolution N°
256-2008-DIGESA-SA
	 	 	01/16/2015	 	01/30/2008	 	Valid	 	ANA	 	Renovation of the treated industrial waste water discharge license (authorized to SMCSA by R.D. N° 017-2013-ANA-DGCRH), for the Chumpe-Yauricocha treatment plant of the Acumulación Yauricocha Unit.	 	Directorial resolution N° 011-2015-ANA-DGCRH
	Proof of Payment for Surface Water Use
	 	 	01/26/2016	 	 	 	Expired	 	ANA	 	Proof of payment for surface water use for the year 2015 in collection points authorized by the National Water Authority (ANA) for
population, industrial and mining use.	 	--
	 	 	05/03/2016	 	 	 	Valid	 	ANA	 	Proof of payment for discharging treated industrial waste water for the year 2016 (Chumpe - Yauricocha treatment plant)	 	--
	Mining Concessions
	 	 	02/27/1991	 	 	 	Valid	 	Mining public register	 	Including the Yauricocha Chumpe Processing Plant and an area of 148.50 ha	 	--
	 	 	03/06/2002	 	 	 	Valid	 	 	 	Mining concessions transfer contract form CENTROMIN in favor of SMCSA (includes detail of mining concessions and inventory of the
assets of Yauricocha Production Unit	 	--

  
  

					
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	Item	 	Date	 	Expiry date  	 	Status  	 	Emitted by  	 	Permits/licensees	 	Document
	 	 	09/29/2008	 	 	 	Valid	 	SUNARP	 	Constitution of the “Accumulation Yauricocha Concession” (includes details of the Mineral Process Concession)	 	--
	 	 	07/03/2015	 	 	 	--	 	SMCSA	 	Inventory of Mining Rights	 	--
	Property Registrations and Contracts
	 	 	03/07/2012	 	03/072022	 	Valid	 	Notary	 	Lease by the Rods Vilches family	 	--
	 	 	08/27/2013	 	 	 	Valid	 	SUNARP	 	Property Registration Certificate: Land located on the right bank of the Huacuypacha creek and the road from Huancayo to
Cañete	 	Supreme decree
N° 035-94-JUS
	 	 	08/27/2013	 	 	 	Valid	 	SUNARP	 	Property Registration Certificate: Land located in the Chumpe region	 	Supreme decree
N° 035-94-JUS
	 	 	08/27/2013	 	 	 	Valid	 	SUNARP	 	Property Registration Certificate: Located in the location Yauricocha	 	Supreme decree
N° 035-94-JUS
	 	 	01/01/2014	 	12/31/2021	 	Valid	 	Notary	 	Lease by – Los Arrendadores	 	 
	Contracts, Acts and Agreements
	 	 	03/01/2013	 	 	 	Valid	 	SMCSA	 	Agreement between the Tomas peasants community and SMCSA (minutes for delivering sheet metal roofing as a donation is)	 	--
	 	 	04/16/2014	 	 	 	Valid	 	SMCSA	 	Agreement between the San Lorenzo de Alis peasants community and SMCSA (proceedings of delivery of different materials)	 	--
	 	 	04/26/2014	 	 	 	Valid	 	SMCSA	 	Supplementary agreement between the Tinco peasants community and SMCSA	 	--
	 	 	05/05/2014	 	 	 	Valid	 	SMCSA	 	Supplementary agreement between the Tomas peasants community and SMCSA	 	--
	 	 	07/02/2014	 	 	 	Valid	 	SMCSA	 	Service contract	 	--
	 	 	2015	 	 	 	Valid	 	SMCSA	 	Service contract for personnel transport and minutes for delivering different materials as donation	 	--
	 	 	07/03/2015	 	 	 	Valid	 	SMCSA	 	Minute of the round table meeting between the Huancachi peasant community and SMCSA. Minute for delivering 112 toilets and
accessories.	 	--
	 	 	09/19/2015	 	 	 	Valid	 	SMCSA	 	Agreement between the San Lorenzo de Alis peasants community and SMCSA (Minutes for delivering a concrete and metal bridge in
Chacarupe and Ananhuichán Alis peasants communities respectively)	 	--
	 	 	02/12/2016	 	 	 	Valid	 	SMCSA	 	Agreement between the Tomas peasants community and SMCSA (construction contract)	 	--
	 	 	03/04/2016	 	 	 	Valid	 	SMCSA	 	Agreement between the rural community of San Lorenzo de Alis and SMCSA (Minute for delivering a
pick-up TOYOTA 0 km and service contract).	 	--
	 	 	04/15/2016	 	 	 	Valid	 	SMCSA	 	Agreement between the Huancachi peasant community and SMCSA (Minute for implementing the community center)	 	--
	 	 	04/21/2016	 	 	 	Valid	 	SMCSA	 	Agreement between the San Lorenzo de Alis peasant community and SMCSA (Minutes for providing a service contract and sports
equipment)	 	--
	 	 	--	 	 	 	 	 	SMCSA	 	Summary table of the status of commitments for the period 2013, 2014, 2015 and 2016 by SMCSA as to the agreements celebrated with
the peasants communities.	 	--
	Community Relation Plans
	 	 	2013	 	 	 	Expired	 	SMCSA	 	Annual Community Relations Plan - 2013 (including the total amount invested)	 	--
	 	 	2014	 	 	 	Expired	 	SMCSA	 	Annual Community Relations Plan - 2014 (including the total amount	 	--

  
  

					
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	Item	 	Date	 	Expiry date  	 	Status  	 	Emitted by  	 	Permits/licensees	 	Document
	 	 	 	 	 	 	 	 	 	 	invested)	 	 
	 	 	2015	 	 	 	Valid	 	SMCSA	 	Annual Community Relations Plan - 2015 (including the total amount invested)	 	--
	Other Documents
	 	 	07/18/2007	 	 	 	Valid	 	Notary	 	Contract and right of use transaction between the San Lorenzo de Alis peasants community and SMCSA	 	--
	 	 	07/15/2011	 	 	 	Valid	 	Yauricocha production unit	 	Reprogramming execution of works, communication works execution - 1st stage (the General Schedule for Yauricocha Tailings Deposit
Regrowth, Stages II, III and IV)	 	Resolution
N° 714-2009-MINEM-DGM-V
	 	 	12/03/2015	 	 	 	Valid	 	MINEM	 	Mining Operation Certificate (COM)	 	Dossier N° 2556310

 Source: Prepared based on reports of Ministry of Energy and Mines (MINEM), Public Registry of Mining (current INGEMMET), National Water
Authority (ANA), National Public Registry Authority (SUNARP), General Directorate of Environmental Health (DIGESA), notary and information provided by SMCSA. 

  
  

					
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 The Environmental Adjustment and Management Program (PAMA), as established by the
Supreme Decree No 016-93-EM, was the first environmental management tool that was created for mines and metallurgical operations existing before 1994 to adopt
technological advances and / or alternative measures to comply maximum permissible limits for effluent discharge and emissions of mining-metallurgical activities. Since then, many environmental regulations have been enacted updating and/or replacing
older regulations. The environmental certification for mining activities was transferred from the Ministry of Mining and Energy to the Ministry of Environment; specifically to the National Service for Environmental Certification (SENACE, Servicio
Nacional de Certificación Ambiental) effective December 28, 2015.
 Though SMCSA has updated its
environmental baseline and adjusted its monitoring program by its Supporting Technical Report to the PAMA “Expanding the capacity of the Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (Geoservice
Ambiental S.A.C., ITS approved by Directorial resolution N° 242-2015-MINEM-DGAAM), an important gap exists with reference to environmental and social impact assessment as referred to by the actual
environmental protection and management regulation for operating, profit, general labor and mining storage activities (D.S. N° 040-2014-EM, 11/12/2014). 

The Peruvian Environmental Legislation contemplated that mine owners perform a number of studies to adjust to these new regulations, such
as: 
  

	 	●	 	 Environmental Quality Standards Compliance for Soils (Estudio de Calidad Ambiental (ECA) de Suelos).- This study had to
be submitted to the Ministry of Energy and Mines (MINEM) in compliance with the Supreme Decree (D.S.) N° 002-2014-MINAM. Hence, SMCSA submitted to the MINEM its Supporting Technical Report to the PAMA
“Expanding the capacity of the Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (ITS approved by Directorial resolution N° 242-2015-MINEM-DGAAM).

  

	 	●	 	 Comprehensive plan for the adaptation and implementation of the activities to the permissible limits for liquid effluent
discharge (Plan Integral para la Adecuación e Implementación de sus actividades a los Limites Permisibles para la descarga de efluentes líquidos).- This study had to be submitted to the MINEM in compliance with the Ministerial
resolution N° 154-2012-MEM/DM. Its approval status has not been confirmed. 

 

	 	●	 	 Environmental Impact Assessment Update (Actualización del Estudio de Impacto Ambiental).- This study had to be
submitted to the MINEM in compliance with the D.S. N° 019-2009-MINAM. Instead, SMCSA presented its Supporting Technical Report to the PAMA “Expanding the capacity of the Processing Plant Chumpe
of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (ITS approved by Directorial resolution N° 242-2015-MINEM-DGAAM) updating its environmental baseline to some extent.

  

	 	●	 	 Sworn statement to the General Directorate of Mining Environmental Affairs (DGAAM, Dirección General de Asuntos
Ambientales Mineras) and Environmental Control Agency (OEFA, Organismo de Evaluación y Fiscalización Ambiental) of the activities and/or processes and/or extensions and/or existing components to regularize (Declaración Jurada de
los componentes por Regularizar).- In compliance with the D.S. No 040-2015-EM all those activities, extensions, and/or components that have not been
included in any Environmental Management Instrument had to be declared. SMCSA did not declare any component. 

  
  

					
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	 	●	 	 Detailed Technical Memorandum (MTD, Memoria Técnica Detallada).- In compliance with the D.S. No 040-2015-EM, a Detailed Technical Memorandum had to be submitted for all those activities, extensions, and/or components declared to be regularized as to the sworn statement
mentioned above. As none have been declared to be regularized, no Detailed Technical Memorandum had to be presented. Once the MTD is approved this components have to be integrated into an EIA (Environmental and Social Impact Assessment).

 Since in some operations the PAMA is the only principal environmental management tool, it has the category of an
environmental certification similar as an environmental impact assessment and therefore is subject of the presentation of the updated environmental impact study as established by the D.S.
N° 019-2009-MINAM. Note that the D.S. N° 040-2014-EM, in its First and Second Supplementary Final Provisions,
regulates the integration and updating of the environmental impact assessment with the objective that each operating unit shall only have one updated environmental management tool. Therefore, it is likely that the Accumulación Yauricocha Unit
will have to present a detailed environmental and social impact assessment in coordination with SENACE if seeking any expansion. This includes a social impact assessment including a social, economic, cultural and anthropological population baseline,
hydrogeological pollutant transport model for short-, medium- and long-term scenarios, air quality and contaminant distribution assessment, archaeological survey report as for the certificate of nonexistence of archaeological remains (CIRA,
certificado de inexistencia de restos arqueologicos), mitigation or compensation measures as applicable, among others. 
 20.3 Environmental Study Results

 As stated in the former section, SMCSA updated, to some extent, its environmental base line and environmental monitoring program
to adjust to the mandatory compliances by performing its Supporting Technical Report to the PAMA “Expanding the capacity of the Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD” (Geoservice Ambiental
S.A.C., 2015, ITS approved by Directorial resolution N° 242-2015-MINEM-DGAAM), an important gap prevails with reference to the environmental and social impact assessments as to the actual
environmental protection and management regulation for operating, profit, general labor and mining storage activities (D.S. N° 040-2014-EM, 11/12/2014). 

The monitoring program has been updated since July 2015 according to the ITS (Geoservice Ambiental S.A.C., 2015) and its Report N° 503-2015-MEM-DGAAM/DNAM/ DGAM/D and a First Quarter 2016 Environmental Monitoring Report (Equas, March 2016) has been
performed. The following issues of importance are: 
  

	 	●	 	 Land use capacity - Soils are suitable for cold climate grassland and protection; 

 

	 	●	 	 Actual land use - Is limited to urban (private or government), natural pastures and unproductive land;

  

	 	●	 	 Wetlands - Note that no reference was made to wetlands while these are likely to be present in the area and are
protected in Peru; 

  

	 	●	 	 Soil quality - 32 samples from disturbed areas were analyzed and the results compared to the environmental quality
standards for soil (D.S. N° 002-2013-MINAM): arsenic, cadmium, lead and Total Petroleum Hydrocarbons (TPH) exceed the environmental standards, as well as to a lesser extent also: benzene, xylene,
naphthalene, toluene and ethylbenzene; 

  
  

					
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	 	●	 	 Geology - As to the ITS there is predominantly presence of sedimentary rock such as sand-, silt- and claystones,
conglomerates, limestones and dolomites; 

  

	 	●	 	 Biology - Terrestrial biology has been assessed in a dry and a wet season: 

o   Flora - 12 species were identified listed as protected by D.S. N° 043-2006-AG, among which categorized as Critical Endangered (CR): Ephedra rupestris, and as Endangered (EN): Nototriche tovari, as well as three species belonging to the CITES category II; 

o   Birds - Four species were identified listed as protected by D.S.
N° 004-2014-MINAGRI, among which categorized as Endangered (EN): Vultur gryphus (Condor), seven species in the IUCN Red List and four species belonging to the CITES category I and II; 

o   Mammals - Two species were identified listed as protected by D.S.
N° 004-2014-MINAGRI, among which categorized as Endangered (EN): Puma concolor (Puma), Vicugna (Vicuña) and two species belonging to the CITES; 

o   Reptiles and amphibians - Three endemic species were identified (gender: Lioalemus), but none is listed
as protected; 
 o   Insects - Insects have not been assessed; and 

o   Terrestrial biological monitoring - Though this monitoring in generally mandatory the N° 503-2015-MEM-DGAAM/DNAM/DGAM/D report does not include terrestrial biological monitoring: flora, birds, mammals, reptiles and amphibians, and insects. 

 

	 	●	 	 Hydrobiology - The ITS indicates that in both wet and dry season for most monitoring stations the diatom pollution
tolerance index IDG results in moderated polluted water (eutrophication), while the EPT and BMWP indicate in wet season bad water quality with presence of organic matter and in the dry season good water quality with presence of trout
(Onchorynchus mykiss). In some trout elevated concentrations of mercury and cadmium were found while in others retention of P, Na, Mg, K and Ca. Successive regular monitoring should be performed in the same five surface water quality
monitoring stations for phytoplankton, zooplankton, benthos, periphyton and nekton. The
N° 503-2015-MEM-DGAAM/DNAM/DGAM/D report does not indicate the frequency of monitoring; 

 

	 	●	 	 Hydrology - The Yauricocha project is located in eight micro-watersheds belonging to the Alis and Laraos rivers sub-watersheds which include mountain tops with elevations as high as 4800 and 5300 masl; 

  

	 	●	 	 Springs - The water of the Laraopuquio and Quilcasa springs are slightly acidic while the water from the Chumpe 1 spring
exceeds the environmental quality standards for iron, lead and manganese as to the D.S. N° 002-2008-MINAM, category 3 (irrigation of tall and short stem crops and animal’s beverage);

  

	 	●	 	 Regular monitoring established in the ITS has been performed by EQUAS S.A. for the first quarter of 2016 in accordance
to: 

 o   D.S. N°
040-2014-EM, Environmental protection and management regulation for operating, profit, general labor and mining storage activities; 

o   D.S. N° 015-2015-MINAM. - Amendment to the National
Environmental Quality Standards for water and establishment of supplementary provisions; 
 o   D.S. N°
010-2010-MINAM. - Maximum permissible limits for effluent discharge of metallurgical mining activities; and 

o   D.S. N° 002-2013-MINAM. - Environmental quality standards for
soil. 
  

	 	●	 	 Surface water quality monitoring - Monthly monitoring is performed in five monitoring stations: M-2, M-4 (707), PM-11, PM-12 and PM13, and quarterly reported to the MINEM.

  
  

					
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The water quality analysis is performed for those parameters for which national environmental quality standards have been established as for category 3 - subcategory D1 irrigation of tall and
short stem crops and D2 animal’s beverage (D.S. N° 002-2008-MINAM D.S. N° 015-2015-MINAM). As to the First Quarter 2016 Environmental Monitoring Report
(Equas, March 2016) the water quality of the Chumpe creek does not comply with the category 3 in the in PM-11 for low dissolved oxygen concentration and in PM-12 and PM-13 for high manganese concentrations while the water quality in the Tinco River complies with the category 3; 

  

	 	●	 	 Underground water quality monitoring - Quarterly monitoring is performed in seven monitoring stations: DR-01-13, DR-02-13,
DR-03-13, PB-01-13,
PB-02-13, PB-03-13 and
PT-01-13. As to the ITS approval report the variables to be monitored are: pH, temperature, electrical conductivity, Dissolved oxygen, flow, grease and oils, CN-wad, CrVI, DBO, mercury, bicarbonates, carbonates, fluorides, chlorides, DQO, thermotolerant coliforms and total coliforms, e.coli, enterococci, helminths, phenols, phosphates, nitrates, nitrites, S.A.A.M.,
sulphur, sulfates, and as total metals: Al, Sb, As, Ba, Bi, Bo, Cd, Ce, Co, Cu, Cr, Sn, P, Fe, Li, Mg, Mn, Mo, Ni, Ag, Pb, Se, Na, Ta, Ti, Va, Zn. As no national environmental quality standards have been set for underground water, the water quality
analysis is performed as for those parameters for which surface water national environmental quality standards have been set (category 3 - subcategory D1 irrigation of tall and short stem crops). As to the First Quarter 2016 Environmental Monitoring
Report (Equas, March 2016) the underground water quality meet this reference quality; 

  

	 	●	 	 Effluent water quality - Monitoring is performed monthly, in one monitoring station:
V-1 (705) and its quality is compared to D.S. N° 010-2010-MINAM. As to the First Quarter 2016 Environmental Monitoring Report (Equas, March 2016) the effluent water
quality complies with the maximum permissible limits for effluent discharge of metallurgical mining activities; 

  

	 	●	 	 Air quality - Bi-quaternary monitoring is performed in two monitoring stations: CA-01 (704) and CA-02, leeward from the processing plant and windward from the Chumpe mining camp respectively in accordance with D.S. N°
003-2008-MINAM and D.S. N° 074-2001-PCM. As to this new monitoring program no monitoring results are yet available;

  

	 	●	 	 Noise: Bi-quaternary monitoring is performed in three monitoring stations: R-1, R-2 and R-3 in accordance with D.S. N°
085-2003-PCM; 

  

	 	●	 	 Soil quality monitoring - Quaternary monitoring is performed in three monitoring stations: MI-01-UY, MI-03-UY and
MI-06-UY and the results are compared with the environmental quality standards for soil, D.S. N° 002-2013-MINAM. As to the
results: MI-01-UY and MI-03-UY comply with the environmental quality standards for soil,
while MI-06-UY exceeds the environmental quality standards for soil concentrations of arsenic and lead; and 

 

	 	●	 	 Hence, to enable a proper environmental evaluation monitoring should be reported over a longer time period.

 20.4 Environmental Issues 

Data and information for this section is based on the PAMA (SGS, 1996), the report N° 1683-2013-MEM-AAM/MPC/RPP/ADB/LRM, the ITS (Geoservice Ambiental S.A.C., 2015), its report
N°503-2015-MEM/DGAAM/DNAM/DGAM/D and SMCSA ́s 2015 Annual Memory. 

  
  

					
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 Accumulación Yauricocha is an underground mine operated by the method of ascending cut and fill
stoping to extract its polymetallic ore (sulfides) of lead, silver, copper, zinc and iron and lead silver oxide ore. 
  

	 	●	 	 Ore transport - The ore is transported from the Klepetko Nv. 720 tunnel to the hopper of the mineral Chumpe processing
plant; 

  

	 	●	 	 Waste rock - Waste rock is hauled through the mine entrances and stored in the waste rock dump at Chumpe, which has a
storage capacity of 320,000 m3 when reaching level 4156 (meters above sea level). Another 17 waste rock dumps are considered to be closed. Though the Closure Plan and its updates consider two
types of covers for the closure of the waste rock dumps – one for none acid rock drainage generating material (NPAG) and another for potential acid rock drainage generating material (PAG) – no comprehensive study on potential acid rock
drainage was available to review as to whether the different waste rock dumps are NPAG or PAG. No mention was found on differentiating PAG waste rock from NPAG waste rock or its differentiated management. To prevent rainfall runoff from getting into
contact with the waste rock the implementation of collecting channels have been foreseen as part of the closure design of the larger dumps. No information has been found on the water percolating through the waste rock dumps; and

  

	 	●	 	 Ore processing - The ore is processed in the Chumpe mineral processing plant which has two separate flotation circuits:

 o   One, of 2000 TMD in capacity, to process polymetallic ores; and 

o   Another, of 500 TMD in capacity, to process the lead and silver oxide ore. 

The process is conventional with stages of crushing, grinding, regrinding, selective flotation, and filtration, dispatch of concentrates and transport,
and tailings storage. 
  

	 	●	 	 Tailings - The tailings deposit is located at an elevation of 360 m and 2.6 km upstream of the existing
processing plant and several camps and installations, in the location that once was the Yauricocha Lake. The tailings dam was built with compacted granular material of intrusive and metamorphic origin. The design considers growing the crest in five
stages. According to the reports N° 1683-2013-MEM-AAM/MPC/RPP/ADB/LRM and N° 503-2015-MEM-DGAAM/DNAM/DGAM/D the global stability is stable under static and pseudo static conditions. SMCSA has obtained the authorization to operate the third stage of the tailings
deposit and start the construction of the fourth stage. As to the PAMA and closure plan update, the tailings are considered PAG, as tailings deposited from 1979 to 1988 contains 31.4% of pyrite and tailings deposited from 1989 to 1996 contains 17.6%
pyrite. No additional recent data and no comprehensive study on the mineralogical composition and drainage quality in the short, medium and long term were available to review in order to have a better understanding of the tailings
geochemical-physical characteristics and its environmental implications. 

 o   Regarding
water management: 
  

	 	-	 Water in the tailings pond is composed of water from the tailings pulp, direct rainfall and mine water from the Victoria
tunnel; clarified water from the tailings pond is pumped to a tank and returned to the processing plant by gravity, closing the circuit; 

  

	 	-	 Filtrations are captured by a system of underdrains and sent towards the underdrain sump and pool for recirculation; and

  

	 	-	 Channels on the right and left of the tailings deposit capture the rainfall runoff preventing them to come into contact
with the tailings. 

  
  

					
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 o   Regarding its management and control, SMCSA monitors
the design parameters, the physical stability by piezometers installed in the tailings dam, and the cleaning of the rainfall runoff channels (SMCSA ́s 2015 Annual Memory). 

 

	 	●	 	 Domestic and industrial solid waste - SMCSA operates a sanitary landfill for domestic wastes and has warehouses for
temporary storage of recyclable waste. Recyclable non-hazardous solid waste and hazardous solid waste are delivered to a solid waste traders company (EC/RS) and a solid waste server company (EPS/RS)
respectively, both authorized by DIGESA, complying with the Regulations of the General Law of Solid Waste; 

  

	 	●	 	 Effluent, surface and groundwater management and control: 

o   Mine water - The mine water from the Klepetko tunnel is collected in a channel and directed to the water
treatment plant at Chumpe where it is neutralized by adding lime and its solid particles depressed by adding flocculants; 

o   Wastewater control - SMCSA operates three domestic wastewater treatment plants called PTARD as to the
Spanish acronym for residual domestic waste water treatment plant: 

	 	-	 One with a capacity of 17 m3/day, installed in the area Chumpe, and
another with a capacity of 40 m3/day, installed in the La Esperanza areas, operate by activated sludge and multiple aeration. The treated water seeps into the subsoil; and

	 	-	 One with a capacity of 100 m3/day, installed in the Chumpe area,
operates by means of sequential biological reactors (SBR). The treated water is incorporated in the mineral processing plant (zero effluent). 

o   Surface water quality control - Monthly monitoring of water for quarterly reporting to the Ministry of
Energy and Mines (MEM) and National Water Authority (ANA) includes verification of the compliance with Maximum Permissible Limits (D.S. N°010- 2010-MINAM) and Environmental Quality Standards for Water
(D.S. N° 002- 2008-MINAM, as amended by D.S. N° 015-2015-MINAM); and 

o   Groundwater quality control - Quarterly is monitored by nine piezometers. 

 

	 	●	 	 Emissions and dust control: 

o   Bi-quaternary monitoring two monitoring stations: one leeward
from the processing plant and the other windward from the Chumpe mining camp; and 
 o   Dust prevention by
wetting the road surfaces (dirt roads) during the dry season (vehicle traffic). 
 20.5 Operating and Post Closure Requirements and Plans 

SMCSA has a closure plan with two amendments approved: 
  

	 	●	 	 Yauricocha Mine Unit Closure Plan, approved by directorial resolution N°258-2009-MEM/AAM (08/24/2009) and Report N°999-2009-MEM-AAM/CAH/ MES/ABR;

  

	 	●	 	 Yauricocha Mine Unit Closure Plan Update, approved by directorial resolution N°495-2013-MEM-AAM (12/13/2013) and Report 
N°1683-2013-MEM-AAM/ MPC/ RPP/ADB/LRM; and 

  

	 	●	 	 Yauricocha Mine Unit Closure Plan Modification, approved by directorial resolution N°002-2016-MEM-DGAAM (01/08/2016) and Report
N°021-2016-MEM-DGAAM/DNAM/DGAM/ PC. 

In 2007, a feasibility level Closure Plan for the Yauricocha Mining Unit was developed by CESEL S.A. following the requirements of the Peruvian
legislation for mine closure, “Ley de Cierre de  

  
  

					
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Minas”, Law N° 28090 and its Regulation, Supreme Decree N° 033-2005-EM and its
amendments D.S. N° 035-2006-EM and D.S. N° 045-2006-EM. and
based on the content recommended by the General Department of Mining Environmental Affairs (DGAAM, Dirección General de Asuntos Ambientales Mineros) in the Guideline for Preparation of Mine Closure Plans approved by Resolution R.D. N° 130-2006-AAM, dated April 2006. 
 This Closure
Plan considers eight areas: Central, Cachi-Cachi, Éxito, El Paso, Ipillo, Chumpe, Yauricocha and Florida. 
 In 2012, pursuant
to Peruvian regulations, the Mine Closure Plan was updated by Geoservice Ingeniería S.A.C. (and approved in 2013). In 2015, the time schedule of the Closure Plan was modified in accordance with the mine’s life timeline by a second
amendment of the Closure Plan. This second amendment has been approved by the Peruvian Authorities. 
 20.6 Post-Performance or Reclamations Bonds 

On January 15, 2016, a bank guaranty was renewed for the amount of US$14,346,816.00 as a guarantee of compliance for the Mine
Closure Plan as to the Yauricocha Mine Unit Closure Plan Update, approved by directorial resolution N°495-2013-MEM-AAM
(12/13/2013). 
 As to the second amendment of the closure plan, approved by directorial resolution N°002-2016-MEM-DGAAM (01/08/2016), the mining operator shall record the guarantee by varying annuities the first days of each year, so that the total amount
required for final and post closure is recorded by January 2020 (Table 20-2). 
 Table 20-2: Closure Plan - Annual Calendar for Guarantee Payment 
  

									
	 Due date

 
	  	
Amount 

(US$ including VAT) 
	  	
Accumulated Amount 
 (US$ including
VAT) 
	  	Status of Payment  	  	 
	 17/01/2015
	  	0 	  	0 	  	 done
	  	
	 17/01/2016
	  	10,278 	  	14,346,816 	  	 done
	  	
	 17/01/2017
	  	101,706 	  	14,458,801 	  	 To be provisioned
	  	
	 17/01/2018
	  	226,708 	  	14,685,508 	  	 To be provisioned
	  	
	 17/01/2019
	  	418,972 	  	15,104,480 	  	 To be provisioned
	  	
	
17/01/2020
	  	813,268 	  	15,917,747 	  	 To be provisioned
	  	
	
Total Payment  
	  	 	  	$15,917,747 	  	 	  	

     Source: Informe N°021-2016-MEM-DGAAM/DNAM/DGAM/ PC 
 20.7 Social and Community 

SMCSA maintains a relationship with the peasant’s communities of San Lorenzo de Alis, Huancachi, Tomas and Tinco, and have
subscribed to various agreements with those communities. To some extent, SMCSA maintains a relationship with the Santo Domingo de Larao peasant’s community. The company assists with various projects but have not subscribed to any agreement as
Santo Domingo de Larao do no permit developing mining activities in their community. 
 20.7.1 Agreements 

In compliance with its social responsibility policy, SMCSA has subscribed to various annual agreements with the surrounding
peasant’s communities including San Lorenzo de Alis, Huancachi, Tomas and Tinco. These commitments are intended to promote and support the development of 

  
  

					
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these communities address needs identified by the people themselves. The improvements are intended to primarily improve sheep raising by introducing improved livestock. Additionally, activities
are intended to improve irrigation infrastructure and local communication by implementing local bridges and some roads. 
 Table 20-3 summarizes the annual agreements per community (2013 to 2016). Most of these commitments have been fulfilled with respect to the Delivery Acts subscribed at the completion of each commitment. 

  
  

					
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 Table 20-3: Annual Agreements per Community
2013 - 2016 - Summary 
  

							
	Community	  	Agreements	  	Compliance Document	  	Status
	2013
	 CC de San

Lorenzo de Alis
	  	Agreement between the San Lorenzo de Alis Peasant’s Community and SMCSA - 2013	  	Record of Delivery 07/03/2014: pipes, water intakes, sedimentation ponds, break-pressure boxes).	  	Fulfilled
	  	  	Record of Delivery of 11/28/2014 (material for repair of irrigation, seeds and fertilizers)	  	Fulfilled
	  	  	Record of Delivery of 09/30/2014 Piscigranja bridge	  	Fulfilled
	  	  	Record of Delivery of 05/27/2014, Lloclla bridge.	  	Fulfilled
	  	  	Record of Delivery of 06/07/2014, Cantuchaca bridge	  	Fulfilled
	  	  	Bank deposit: check No. 00008055 6002355 1454424008 BCP 69 04/28/14	  	Fulfilled
	  	  	June and October 2013, multiple letter No. 005 / RRRCC / SMCSA / 2013	  	Fulfilled
	 CC de

Huancachi
	  	Minutes of Roundtable Meeting of the Huancachi Peasants Community Sociedad and SMCSA. 2013	  	Record of Delivery of 08/14/2015: 112 toilets.	  	Fulfilled
	  	  	Letter 033-2015/CC Huancachi: request. For transfer of the budget for hotel
equipment	  	Fulfilled
	CC de Tomas	  	Agreement between the Tomas Peasants Community Sociedad and SMCSA. 2013	  	Record of Delivery of 05/10/2013	  	Fulfilled
	  	  	Record of Delivery of 07/06/2013.	  	Fulfilled
	  	  	 Multiple letter N° 003/RRCC/SMCSA/2013.

Multiple letter N° 005/RRCC/SMCSA /2013
	  	Fulfilled
	  	Supplemental Commitment under Convention. 2013	  	Record of Delivery of 06/16/2014	  	Fulfilled
	  	  	Record of Delivery 0f 07/11/ 2014.	  	Fulfilled
	  	  	Record of Delivery of 11/21/2014	  	Fulfilled
	  	  	Record of Delivery of 09/17/ 2014	  	Fulfilled
	CC de Tinco	  	Supplementary Agreement between the Tinco Peasant’s Community and SMCSA	  	Record of Delivery 08/29/2014.	  	Fulfilled
	  	  	Letter N° 08-2014/RRCC/SMCSA	  	Fulfilled
	2014, 2015 and 2016
	CC de San Lorenzo de Alis	  	Agreement between the San Lorenzo de Alis Peasant’s Community and SMCSA.- 2014	  	Record of Delivery of 12/12/2015.	  	Fulfilled
	  	  	Record of Delivery of 12/12/2015	  	Fulfilled
	  	Agreement between the San Lorenzo de Alis Peasant’s Community and SMCSA. 2015	  	Record of Delivery of a pick up 0 km 04/18/2016	  	Fulfilled
	  	  	Contract: Zósimo Curi (consultant)	  	Fulfilled
	  	  	Letter N° 049/RRCC/SMCSA2015	  	Fulfilled
	  	  	Letter N° 011/RRCC/SMCSA/2015	  	Fulfilled
	 CC de San

Lorenzo de Alis
	  	Agreement between the San Lorenzo de Alis Peasant’s Community and SMCSA. 2016	  	Contract: Ing. Tomás Robert Martínez Meza (consultant)	  	In Process
	  	  	Consultant technical proposal and CVs	  	In Process
	  	  	 	  	Fulfilled
	  	  	Record of Delivery of 06/14/2016.	  	In Process
	 CC de

Huancachi
	  	Minutes of Roundtable Meeting of the Huancachi Peasants Community Sociedad and SMCSA. 2014, 2015 and 2016	  	Record of Delivery of 05/28/2016	  	In Process
	  	  	Record of Delivery of 06/17/2014	  	Fulfilled
	  	  	None	  	In Process
	CC de Tomas	  	Agreement between the Tomas Peasant’s Community and SMCSA. 2014 and 2015	  	Contract	  	In Process
	  	  	None	  	In Process
	  	  	Letter N°051/RRCC/SMCSA/2015	  	Fulfilled
	  	  	Letter N° 012/RRCC/SMCSA/2015	  	Fulfilled

   Source: UP Yauricocha, RRCC/SMCSA/ JUNIO 2016 

  
  

					
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 Community Relations Annual Plans are prepared and each program budgeted. Table 20-4 shows the investment for 2015. 
 Table 20-4: 2015
 ́s Community Relations Annual Plan Investment 
  

									
	2015 Community Relations Annual Plan    	  	Amount Budgeted (US$)  	  	Amount Spent (US$)  	  	 	 
	 Education
	  	7,525.35  	  	8,413.74  	  			
	 Healthcare
	  	17,326.69  	  	16,696.05  	  	 	                    	 
	 Local sustainable
development
	  	0.00  	  	1,006.68  	  			
	 Basic
infrastructure
	  	48,459.01  	  	43,445.65  	  			
	 Institutional and
capabilities empowerment
	  	26,785.71  	  	6,108.00  	  			
	
Culture promotion
	  	5,604.72  	  	3,497.64  	  			
	
Total
	  	$105,701.48  	  	$79,167.76  	  			

 Source: SMCSA, 2015, PLAN ANUAL_RRCC_2015 

20.7.2 Assistance to Santo Domingo de Laraos Peasant’s Community 

No agreements have been subscribed with the Santo Domingo Laraos peasant’s community as their authorities and people do not give the
social license to perform mining activities in the area of Ipillo and other points of interest to SMCSA. Nevertheless, SMCSA has supported various small projects and support schools and other aspects of the community as indicates in the next table.

 Table 20-5: Assistance to Santo Domingo de Laraos Peasant’s Community - Summary

  

					
	Assistance	  	Status	  	Delivery Act
	Renting a truck (0 km) they have acquired offering service to the mining unit	  	Fulfilled    	  	Hire of truck August 26, 2014
	Donation 01 melamine round table, a cabinet with decorative doors and 06 chairs	  	Fulfilled	  	Record of Delivery, June 26, 2014
	Donation of 151 wooden poles 6 “x 2.5 M. L.	  	Fulfilled	  	Record of Delivery, April 21, 2015
	Improving 2.5 km of roads to enable vehicle access from the Laguna Pumacocha to the Rock Paintings of Qilcasca	  	Fulfilled	  	Record of Delivery, April 2, 2015
	Donation of S/. 3000 for the anniversary of the community	  	Fulfilled	  	Record of Delivery, August 31, 2015
	Donation of 25 tracksuits for the magisterial community of the “avión” district	  	Fulfilled	  	Record of Delivery, July 6, 2015
	Donation of the transport to deliver 50 recycled plastic cylinders for the construction of floating cages.	  	Fulfilled	  	Record of Delivery, June 29, 2015
	Donation of 50 gallons of oil to the Municipal District of Laraos	  	Fulfilled	  	Record of Delivery, June 3, 2015
	Donation of cleaning implements for Initial Educational Institution Laraos	  	Fulfilled	  	Record of Delivery, June 11, 2015
	Donation of one truck of surplus wood for domestic use to the possessors of the “Success” area	  	Fulfilled	  	Record of Delivery, June 3, 2015
	Donation of 50 gallons of oil to the peasant’s Community of Laraos	  	Fulfilled	  	Record of Delivery, March 19, 2015
	Donation of a computer, printer and computer accessories	  	Fulfilled	  	Record of Delivery, March 29, 2015
	Donation of 51 tracksuits for the students of the primary school of Laraos	  	Fulfilled	  	Record of Delivery, June 14, 2015

 Source: UP Yauricocha, RRCC/SMCSA/ JUNIO 2016 

20.8 Mine Closure 
 SMCSA is committed to
perform progressive closure activities starting in 2015 and finishing in 2020, final closure in a span of two years and post-closure in five years (this latter is the minimum period required to achieve physical, geochemical and hydrological
stability of the area occupied by the mining unit as per Peruvian legislation). 
 The mine closure objective is to recover conditions
similar to pre-mining conditions and/or uses compatible with the surrounding environmental conditions. 

Specific objectives are: 

  
  

					
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	 	●	 	 Human health and safety.- Ensure public health and safety implementing measures to eliminate risks such as pollution
caused by acid rock drainage or waste, that could be transported to populated areas by water or wind; 

  

	 	●	 	 Physical stability. - Implement environmental and technical measures to maintain physical stability of the mining
components in the short, medium and long term (including mine entrances, chimneys, waste rock dumps, tailings deposits, etc.) that must withstand seismic and hydrological extraordinary events; 

 

	 	●	 	 Geochemical stability. - Implement measures to maintain chemical stability of the mining components in the short, medium
and long term (including mine entrances, chimneys, waste rock dumps, tailings deposits, etc.) that must withstand ordinary and hydrological extraordinary hydrological events; 

 

	 	●	 	 Land use. - Implement measures to enhance post-mining beneficial land use, restoring gradually soil fertility for
agriculture, livestock, landscape and / or recreational use, considering the topographical conformation and integration into the landscape; 

  

	 	●	 	 Water use. - Implement measures in the Production Unit Acumulación Yauricocha to prevent contamination of
superficial and underground water, and focusing on restoring those water bodies, which have been potentially affected, by means of a strategic recovery for post-mining use. 

 

	20.8.1	Reclamation Measures during Operations and Project Closure 

 This section has been
prepared based on the Yauricocha Mine Unit Closure Plan Update ́s report N°1683-2013-MEM-AAM/MPC/ RPP/ADB/LRM. 

 

	20.8.2	Temporary Closure 

 In case of a temporary closure for a period less than three
years, ordered or not by the competent authority, SMCSA will develop a detailed care and maintenance plan considering future operations and evaluating the social impacts associated with it. 

The temporary closure considers: 
  

	 	●	 	 Remove and save mobile equipment; 

 

	 	●	 	 Demolition, salvage and disposal - not applicable during temporary closure; 

 

	 	●	 	 Physical stability - maintain mine entrances, chimneys, tailing deposit, waste rock dumps, and infrastructure;

  

	 	●	 	 Geochemical stability - maintain tailings deposit and waste rock dumps sedimentation ponds to capture any drainage;

  

	 	●	 	 Hydrological stability - maintain canals and ditches in an operative state; 

 

	 	●	 	 Landform - profiling the outer slope of the tailing deposit; 

 

	 	●	 	 Social programs - mitigate impacts on local employment and local development implementing the following programs:

 o   Communication, culture and participation program; 

o   Environmental education and training program; 

o   Health and responsible environmental management program; and 

o   Citizenship: leadership, institutional strengthening and project transfers program. 

  
  

					
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	20.8.3	Progressive Closure 

 Progressive closure is performed simultaneously during
operation and considers the following: 
  

	 	•	 	 Dismantling - All materials in disuse will be dismantled. 

	 	•	 	 Demolition, salvage and disposal - Not applicable during progressive closure. 

	 	•	 	 Physical stability - 

	 	○ 	 	 Open pits in disuse - the Mascota, Juliana, Pawac and Poderosa pits will be partially filled with surrounding waste rock
and pit slopes will be stabilized by benching. 

	 	○ 	 	 Mine entrances - two mine entrances will be closed by a masonry wall without drainage, and in one land forming using
waste rock and a proper cover will be applied (refer to geochemical stability). 

	 	○ 	 	 Waste rock dumps: 

	 	-	 Waste rock from the Mascota, Juliana and Triada dumps will be removed to the Central pit; 

	 	-	 Waste rock from the Mariela dump will be removed to the Central pit and Mariela mine entrance; 

	 	-	 Waste rock from the Pawac dump will be removed to the Pawac pit; 

	 	-	 Waste rock from the Poderosa dump will be removed to the Poderosa pit; and 

	 	-	 The passive Triada waste rock dump and the Cachi-Cachi waste rock dump will be stabilized and covered.

	 	•	 	 Geochemical stability - implementing covers considering the material to be covered (i.e. its mineralogy, net
neutralization potential, presence of acid drainage, granulometry, topography and slopes) considering two types: 

	 	○ 	 	 Type 1, to cover none acid generating materials: 0.20 m of organic material, revegetated; and

	 	○ 	 	 Type 2 to cover acid generating materials: 0.20 m of organic material, overlaying a layer of 0.20 m draining
material, overlaying a layer of 0.20 m clay material, overlaying a 0.20 m thick layer of limestone; and revegetated. 

	 	•	 	 Hydrological stability - implementing collector channels considering two types: 

	 	○ 	 	 Type 1: trapezoidal masonry channel with base and height of 0.50 m and 0.50 m and slope of 1H: 2V (flow 0.45 m3/s); and 

	 	○ 	 	 Type 2: trapezoidal masonry channel with base and height of 0.60 m and 0.65 m and slope of 1H: 2V (flow 0.90 m3/s). 

	 	•	 	 Landform - consist of leveling, re-contouring and organic soil coverage;

	 	•	 	 Revegetation - planting native grasses such as Stipa ichu and Calamagrostis sp.; 

	 	•	 	 Social programs - programs are designed year by year considering the following topics: 

	 	○ 	 	 Education; 

	 	○ 	 	 Healthcare; 

	 	○ 	 	 Local sustainable development; 

	 	○ 	 	 Basic infrastructure; 

	 	○ 	 	 Institutional and capabilities empowerment; and 

	 	○ 	 	 Culture promotions. 

  
  

					
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 Table 20-6 list those components that have been closed as to
October 2013 (as per report N°1683-2013-MEM-AAM/MPC/ RPP/ADB/LRM). 

Table 20-6: Closed Components 

 

							
	 	 	 	 
	 Type

 
	  	 Component
  
	 	 Area
  
	  	 Description

 

	 	  	 	 	Mina Central	  	Tajo 24 de junio
	 	  	Open pit	 	  	Cuye
	Mine	  	 	 	Mina Éxito	  	Éxito
	  	Mine entrances	 	Mina Central	  	Nv. 260 Bocamina 6565-NW (Mascota)
	  	 	  	Nv. 260 Bocamina 5460-S (Juliana)
	  	 	  	Nv. 230 Bocamina 2775-S (Mariela)
	  	 	Mina Éxito	  	Nv. 300 Bocamina-Rampa 
7052-N
	  	 	Mina El Paso  	  	Nv. 250 Bocamina 3522-NW
	  	 	  	Nv. 210 Bocamina 4010-NW
	  	Chimneys	 	Mina Éxito	  	Chimenea 215-5 - superficie
	 	  	 	  	Chimenea 301-6 - superficie
	Waste disposal  	  	Waste rock dumps	 	Mina Éxito	  	Depósito de desmonte Éxito
	  	 	Mina El Paso	  	Depósito de desmonte Nv. 250
	Water treatment	  	Water treatment plant  	 	Mina Éxito	  	Mine water treatment plant Exito

 Source: Yauricocha Mine Unit Closure Plan
Update ́s report N°1683-2013-MEM-AAM/MPC/ RPP/ADB/LRM 
  

	20.8.4	Final Closure 

 For Final Closure, a final Updated Closure Plan must be presented
detailing the closure specifications and process of public consultation. The following components must be closed as per the last approved updated closure plan: 
  

	 	•	 	Fourteen mine entrances - 9 in Central, 1 in Cachi-Cachi and 3 Ipillo; 

  

	 	•	 	Twelve chimneys - 6 in Central, 5 in Cachi-Cachi and 1 in Ipillo; 

  

	 	•	 	One tailing deposit - in Central; 

  

	 	•	 	Two Shafts - Central and Mascota; 

  

	 	•	 	Mineral processing plant - in Chumpe; 

  

	 	•	 	Eight Waste rock dumps - 3 in Central, 1 in Cachi-Cachi. 3 in Ipillo and 1 Chumpe; 

  

	 	•	 	Mine water treatment plant Chumpe (to treat 270 to 280 l/s from the Klepetko tunnel); 

  

	 	•	 	Domestic waste water treatment plant Chumpe (17 m3); 

  

	 	•	 	Domestic waste water treatment plant Yauricocha (40 m3); 

  

	 	•	 	Areas for material supply - 2 areas in Central, 2 in Chumpe and 2 in Yauricocha; 

  

	 	•	 	Two tunnel portals - Klepetko and Yauricocha (note, the Yauricocha tunnel is dry); 

  

	 	•	 	Two open pits - Central pit and Cachi-Cachi pit; 

  

	 	•	 	Other infrastructure: 

  

	 	○ 	 	 Central Area - warehouse, compressors, shaft, winch, maintenance shop, carpentry, offices, chemical laboratory, camps
(Vista Alegre, Esperanza, Hotel Americano and workers houses among others), and a sanitary and industrial landfills; 

  

	 	○ 	 	 Chumpe Area - Mineral processing plant, central warehouse, fuel stock, junkyard, camps (Chumpe and Huacuypacha), workers
houses, employees houses, school, stadium and market; and 

  

	 	○ 	 	 Ipillo Area - 2 concrete slabs and a trench. 

  
  

					
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 Final closure is achieved when upon completion of the following: 

 

	 	•	 	 Dismantling - An inventory of all reusable equipment will be prepared and all materials in disuse will be dismantled;

	 	•	 	 Cleaning - All materials that have been in contact with dangerous substances will be completely decontaminated;

	 	•	 	 Transfer of property program (e.g., transfer of access roads); 

	 	•	 	 Demolition, salvage and final disposal; 

	 	•	 	 Physical stability: 

	 	○ 	 	 Open pits - the Central and Cachi-Cachi pits will be partially filled with surrounding waste rock and pit slopes will be
stabilized by benching; 

	 	○ 	 	 Mine entrances - the mine entrances will be closed by four types of plugs: 

	 	○ 	 	 Type II, with a masonry wall and drainage; 

	 	○ 	 	 Type III, of reinforced concrete without drainage; 

	 	○ 	 	 Type V, filled with none acid generating waste rock without drainage, and an hermetic plug of massive concrete.

	 	○ 	 	 Chimneys - Type I, of reinforced concrete; 

	 	○ 	 	 Yauricocha ́s tailings deposit - As to civil design for closing condition; and 

	 	○ 	 	 Areas for material supply - will be developed utilizing stable slopes by benching. 

	 	•	 	 Geochemical stability - implementing covers considering the material to be covered (i.e. its mineralogy, net
neutralization potential, presence of acid drainage, granulometry, topography and slopes) considering two types: 

	 	○ 	 	 Type 1 - to cover none acid generating materials: 0.20 m of organic material; revegetated; and

	 	○ 	 	 Type 2 to cover acid generating materials: 0.20 m of organic material, overlaying a layer of 0.20 m draining
material, overlaying a layer of 0.20 m clay material, overlaying a 0.20 m thick layer of limestone; and revegetated. 

 As
to the Yauricocha ́s tailings deposit, the Type 2 cover applies. 

	 	•	 	 Hydrological stability - implementing collector channels considering five types: 

	 	○ 	 	 Type 1 - trapezoidal masonry channel with base and height of 0.50 m and 0.50 m and slope of 1H: 2V (flow 0.45
m3/s); 

	 	○ 	 	 Type 2 - trapezoidal masonry channel with base and height of 0.60 m and 0.65 m and slope of 1H: 2V (flow 0.90
m3/s); 

	 	○ 	 	 Type 3 - trapezoidal masonry channel with base and height of 0.70 m and 0.75 m and slope of 1H:2V (flow 0.868
m3/s); applies to the Yauricocha ́s tailings deposit and San Antonio waste rock deposit; 

	 	○ 	 	 Type 4 - trapezoidal masonry channel with base and height of 0.80 m and 0.80 m and slope of 1H: 2V (flow 1.661
m3/s); applies to the Chumpe waste rock deposit; and 

	 	○ 	 	 Type 7 - trapezoidal masonry channel with base and height of 0.90 m and 1.10 m and slope of 1H:2V (flow 3.047
m3/s); applies to the Cachi-Cachi Pit waste rock deposit Nv. 300. 

	 	•	 	 Landform - consists of leveling, recontouring and organic soil coverage; 

	 	•	 	 Revegetation - planting native grasses such as Stipa ichu and Calamagrostis sp; 

	 	•	 	 Social programs - programs are designed year by year considering the following topics: 

	 	○ 	 	 Environmental education and training program; 

  
  

					
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	 	○ 	 	Promote local sustainable development; and 

  

	 	○ 	 	Promote institutional and capabilities empowerment. 

  

	20.8.5	Closure Monitoring 

 Operational monitoring continues until final closure is
achieved (see Section 20.8.4). 
  

	20.8.6	Post-Closure Monitoring 

 This section summarizes the post closure monitoring per
the Yauricocha Mine Unit Closure Plan Update ́s report N°1683-2013-MEM-AAM/MPC/RPP/ADB/LRM: 

 

	 	•	 	 Physical stability monitoring - Monitoring of possible displacements and settlements, cracks, slip surfaces control in
mine entrances, open pits, tailings deposit, waste rock dumps, camps and auxiliary related installations by topographic landmarks control (fixed concrete bases and stainless plates). The established monitoring frequency for the first two years is bi-annual, and for the following three years annually. 

	 	•	 	 Geochemical monitoring - Monitoring of tailings deposit, waste rock dumps, and open pits inspecting the cover ́s
surface for cracks and slip surfaces. The established monitoring frequency is bi-annual for the first two years and annually for the following three years; 

	 	•	 	 Hydrological monitoring - Inspection of the hydraulic components of the tailings deposit, waste rock dumps, and open
pits for (structural) fissures, settlements, collapsing and flow obstructions. The established monitoring frequency for the first two years is bi-annual, and for the following three years annually.

	 	•	 	 Water quality monitoring - In three monitoring stations (MA-1, MA-2, MA-3, see footnote 1) for: pH, electrical conductivity, total suspended solids, total dissolved solids, nitrates,
alkalinity, acidity, hardness, total cyanide, cyanide wad, ammonium, sulphates, total metals (Al, As, Cd, Ca, Cu, Fe, Pb, Hg, Mo, Ni, Se and Zn), DBO5, DQO, dissolved oxygen. The established
monitoring frequency for the first two years is quaternary, and for the following three years bi-annual. No groundwater quality monitoring has been contemplated. 

	 	•	 	 Sediments monitoring - Data from three monitoring stations (MA-1, MA-2, MA-3, see footnote) is analyzed for: total metals (Al, As, Cd, Ca, Cu, Fe, Pb, Hg, Mo, Ni, Se and Zn), total cyanide. The data collected shall be compared with reference
values for the National Oceanic and Atmospheric Administration of the USA. The established monitoring frequency for the first two years is bi-annual, and annual for the following three years.

	 	•	 	 Hydrobiological monitoring - In three monitoring stations (MA-1, MA-2, MA-3, see footnote) for: phytoplankton, zooplankton, bentos, macrophytas. The established monitoring frequency for the first two years is
bi-annual, and annual for the following three years. 

	 	•	 	 Biological monitoring - Vegetation control to verify the effectiveness of the plant cover systems evaluating the extent
of engraftment of the species, the success of the revegetation systems and the need for complementary planting, seeding, fertilization and vegetation 

  

 
 1
MA-1: Tingo river (UTM: N 424,650; E 8,642,250), MA-2: Milpoca Lake (UTM: N 423,975; E 8,634,588), MA-3:
Rodiana creeck wetland (UTM: N 427,310; E 8,631,000). 

  
  

					
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control. The established monitoring frequency for the first two years is bi-annual, and annual for the following three years. 

 

	 	•	 	 Social monitoring - Monitoring to ensure the quality and accuracy of the information collected in the field, ensure the
compliance with the goals and achievements of the objectives of the social activities and programs, and achieve its sustainability. 

Table 20-7: Post Closure Social Program Monitoring 

 

															
	Code	  	 Activities
 and
Tasks
	  	Goals	  	Resources	  	Indicators	  	Proofs	  	Instruments	  	Frequency
	001 training program to develop productive capacities	  	Selection of persons to participate in the program coordinating with the mining unit and with the beneficiaries,
5 workshops per year	  	50 people trained annually, 150 people in trained three years	  	A specialist in development of productive capacities, educational materials, mobility, travel expenses	  	Number of participants, number of workshops held, field visits	  	List of attendees, photographic panel, readings and manuals	  	Convocation of the population of the area of influence and coordination with the stakeholders	  	Bi-anual/ anual
	002 Educational environmental   monitoring program	  	1 workshop to sensitize the population in the area of influence. Training in social monitoring using teaching modules	  	10 people trained annually for three years, 1 representative for each peasant community as social monitor, 1 monitoring
committee	  	Didactic materials, flipcharts, markers, multimedia, etc. a specialist in environmental education	  	 Number of people of the population of the area
of influence
 trained
	  	List of workshop attendees and field visits, pictures, input and output proofs	  	Beneficiary population survey on perceptions	  	Bi-anual/ anual

     Source: Yauricocha Mine Unit Closure Plan Update ́s report N°1683-2013-MEM-AAM/MPC/ RPP/ADB/LRM 
  

	20.8.7	Reclamation and Closure Cost Estimate 

 Table
20-8 and Table 20-9 summarize the results of the updated cost analysis. 

Table 20-8: Closure Plan - Results of the Updated Cost Analysis (US$) 

 

																	
	Description	  	Progressive Closure	 	  	Final Closure	 	  	Post Closure	 	  	Total	 
	 Direct
costs
	  	 	1,204,266	 	  	 	8,649,603	 	  	 	723,607	 	  	 	10,577,476	 
	 General
costs
	  	 	120,427	 	  	 	864,960	 	  	 	72,361	 	  	 	1,057,748	 
	 Utility
	  	 	96,341	 	  	 	691,968	 	  	 	57,889	 	  	 	846,198	 
	 Engineering
	  	 	48,171	 	  	 	345,984	 	  	 	28,944	 	  	 	423,099	 
	 Supervision ,
auditing & administration
	  	 	48,171	 	  	 	345,984	 	  	 	28,944	 	  	 	423,099	 
	 Contingency
	  	 	48,171	 	  	 	345,984	 	  	 	28,944	 	  	 	423,099	 
	
Total
	  	 	1,565,547	 	  	 	11,244,483	 	  	 	940,689	 	  	 	13,750,719	 
	 VAT
	  	 	281,798	 	  	 	2,024,007	 	  	 	169,324	 	  	 	2,475,129	 
	 Total
Budget
	  	 	1,847,345	 	  	 	13,268,490	 	  	 	1,110,013	 	  	 	16,225,848	 

     Note: SRK has made minor adjustments where amounts in the original table did not add properly. The
final amount is unchanged 
     Source: Report N°021-2016-MEM-DGAAM/DNAM/DGAM/ PC and Report
N° 170-2015/MEM-DGM-DTM-PCM 

 Table 20-9: Closure Plan – Summary of Investment per Year (US$) 

 

															
	Year  	  	Annual Investment	 	  	Totals	 	  	Closure Stage  	  	 	  	 
	2015  	  	 	29,029	 	  	 	1,565,510	 	  	 Progressive
	  	  
	2016  	  	 	279,204	 	  	  	  	  
	2017  	  	 	473,448	 	  	  	  	  
	2018  	  	 	462,849	 	  			 	  	 	  	  
	2019  	  	 	203,311	 	  	 	 	 	  	 	  	  

  
  

					
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	2020	  	 	117,669	 	  			 	  	 	  		  	
	2021	  	 	4,894,393	 	  	 	11,244,484	 	  	Final	  		  	
	2022	  	 	6,350,091	 	  	  	  		  	
	2023	  	 	268,768	 	  	 	940,688	 	  	Post	  		  	
	2024	  	 	268,768	 	  	  	  		  	
	2025	  	 	134,384	 	  	  	  		  	
	2026	  	 	134,384	 	  			 	  	 	  		  	
	2027	  	 	134,384	 	  	 	 	 	  	 	  		  	
	Total	  	 	13,750,682	 	  	 	13,750,682	 	  	 	  		  	

     Note: The totals in the tables reproduced as 20-8 and 20-9 difference in 37 US$ to some material mistake. 
     Source: Report N°021-2016-MEM-DGAAM/DNAM/DGAM/ PC and Report N° 170-2015/MEM-DGM-DTM-PCM 

  
  

					
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	21	Capital and Operating Costs 

 As part of the verification process to certify the
reserves presented in this report, SRK conducted an economic valuation of the Yauricocha Project including only reserve material. This section outlines the capital and operating costs considered in this valuation. All costs presented in this section
are first semester 2016 US dollars, unless stated otherwise. 
  

	21.1	Capital Costs 

 Using an average mining/processing rate of 1,729 /d and a maximum
rate of 2,077 t/d, the Yauricocha reserves should support the project until the end of the first quarter of 2021. 
 Considering this
life of mine, the Project’s technical team prepared an estimate of capital required to sustain the mining and processing operations. This capital estimate is broken down into the following main areas. 

 

	 	•	 	Mine Development; 

	 	•	 	Project Sustaining; 

	 	•	 	Equipment Sustaining; 

	 	•	 	Expansion of Existing Mines; 

	 	•	 	Installation of New Mines; and 

	 	•	 	Exploration. 

 Mine development is related to any production development that is
capitalized. Most of the production development costs are included in the mining operating cost, but it is estimated that around 5% of the development meters will be capitalized. The Project’s average development cost is based on actual numbers
for the first semester of 2016 and projected numbers for the remainder months of this year. The cost considered is US$842/m, and is supported by the numbers in Table 21-1. 

  
  

					
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 Table 21-1: Average Development Cost
(Actual) 
  

															
	          	 	Type of Development	  	Meters	 	  	%	 	  	Cost (US$/m)	 
	 	 Horizontal
	  			 	  			 	  			 
	 	 Development 3.0 x 3.0  
	  	 	2,280	 	  	 	11.53%	 	  	 	835	 
	 	 Development 3.5 x 3.0
	  	 	1,588	 	  	 	8.03%	 	  	 	900	 
	 	 Development 3.5 x 3.5
	  	 	2,415	 	  	 	12.22%	 	  	 	1089	 
	 	 Development 4.0 x 4.0
	  	 	57	 	  	 	0.29%	 	  	 	1200	 
	 	 Exploration 3.0 x 3.0
	  	 	650	 	  	 	3.29%	 	  	 	835	 
	 	 Preparation 1.5 x 2.1
	  	 	321	 	  	 	1.62%	 	  	 	362	 
	 	 Preparation 2.4 x 2.4
	  	 	482	 	  	 	2.44%	 	  	 	590	 
	 	 Preparation 3.0 x 3.0
	  	 	7,483	 	  	 	37.84%	 	  	 	835	 
	 	 Preparation 3.5 x 3.0
	  	 	2,802	 	  	 	14.17%	 	  	 	900	 
	 	 Preparation 3.5 x 3.5
	  	 	304	 	  	 	1.54%	 	  	 	1089	 
	 	 Preparation 4.0 x 4.0
	  	 	4	 	  	 	0.02%	 	  	 	1200	 
	 	 Vertical
	  			 	  			 	  			 
	 	 Development d=1.8
	  	 	100	 	  	 	0.51%	 	  	 	362	 
	 	 Preparation 1.2 x 2.4
	  	 	419	 	  	 	2.12%	 	  	 	516	 
	 	 Preparation 1.5 x 1.5
	  	 	123	 	  	 	0.62%	 	  	 	362	 
	 	 Preparation d=1.8
	  	 	744	 	  	 	3.76%	 	  	 	362	 
	 	
Total
	  	 	19,774	 	  	 	100.00%	 	  	 	$842	 

   Source: Sierra Metals, 2016 

The estimate of amount of development required for the production is based on a ratio between ore production and development meters,
which is 1.3 meters per one thousand metric tonnes of ore. The basis of this ratio is the actual numbers of production of 2016, which presented an amount of underground ore of 33,138 t and 9,194 m of development for the first semester of the year.
The capital estimate considers that only 5% of this development will be capitalized, while the remainder 95% is covered by mine operating costs. 

Project sustaining capital includes a number of various projects, including adjustments to groundwater pumping, water treatment,
underground mine ventilation, Cachi-Cachi and Central Mine shafts, tailings dam expansion, improvements to hoisting systems, closure of older mining areas, etc. 

Equipment sustaining cost includes the capital to maintain and replace mine and plant equipment. 

Expansion of existing areas and development of new areas is included in the capital. This includes Project Victoria, drilling of Central
Mine, Yauricocha’s tunnel and shaft, Mascota’s shaft, the Esperanza Project and other smaller mine development/expansion projects. 

Exploration capital will be used in the exploration of future mining opportunities within the company’s mining and exploration
concessions. 
 In addition to the capital requirements presented above, the evaluation also includes an estimate of working capital
requirements based on the following terms: 
  

	 	•	 	30 days delay in payment of product sales; 

  

	 	•	 	30 days delay in payables, excluding labor; and 

  

	 	•	 	60 days inventory of items associated with mining, processing and product transportation. 

As this is a currently operating/producing Project, SRK considered that the company already has the necessary working capital in place,
estimated at around US$7.2 million, based on the premises disclosed above. 
 The yearly capital expenditure by area is summarized
in Table 21-2. 

  
  

					
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 Table 21-2: Capital Summary 

 

																											
	 	 	Description	  	 2016  

(US$000’s)  
	 	  	 2017  

(US$000’s)  
	 	  	 2018  

(US$000’s)  
	 	  	 2019  

(US$000’s)  
	 	  	 2020  

(US$000’s)  
	 	  	 2021  

(US$000’s)  
	 
	 	 Development
	  	 	795  	 	  	 	821  	 	  	 	787  	 	  	 	806  	 	  	 	764  	 	  	 	127  	 
	 	 Projects
	  	 	2,772  	 	  	 	3,979  	 	  	 	4,728  	 	  	 	5,322  	 	  	 	4,822  	 	  	 	0  	 
	 	 PP&E
	  	 	1,780  	 	  	 	1,500  	 	  	 	1,500  	 	  	 	1,500  	 	  	 	1,500  	 	  	 	0  	 
	 	 Mine Expansion
	  	 	1,674  	 	  	 	2,500  	 	  	 	2,500  	 	  	 	3,100  	 	  	 	3,100  	 	  	 	0  	 
	 	 Growth
	  	 	6,480  	 	  	 	3,750  	 	  	 	3,750  	 	  	 	1,000  	 	  	 	1,500  	 	  	 	0  	 
	 	 Exploration
	  	 	525  	 	  	 	0  	 	  	 	0  	 	  	 	0  	 	  	 	0  	 	  	 	0  	 
	 	 Total Capital
	  	 	$14,024  	 	  	 	$12,550  	 	  	 	$13,266  	 	  	 	$11,728  	 	  	 	$11,686  	 	  	 	$127  	 

 Source: Sierra Metals, 2016 
  

 

	21.2	Operating Costs 

 The basis of the operating cost estimate is a first principles
approach based on site specific data. Sierra Metal’s technical team provided SRK with their cost estimate on a yearly basis for the projected life of mine. The costs were broken down into three main areas, as follows: 

 

	 	•	 	Mining; 

  

	 	•	 	Processing; and 

  

	 	•	 	G&A. 

 Table 21-3 and Table 21-4 show a summary of total operating costs and unit operating costs. 
 Table 21-3: Operating Cost Summary 
  

																													
	Area	  	Total  
(US$000’s)  	 	  	 2016  

(US$000’s)  
	 	  	 2017  

(US$000’s)  
	 	  	 2018  

(US$000’s)  
	 	  	 2019  

(US$000’s)  
	 	  	 2020  

(US$000’s)  
	 	  	 2021  

(US$000’s)  
	 
	 Mine
	  	 	145,624  	 	  	 	30,157  	 	  	 	31,142  	 	  	 	26,727  	 	  	 	27,364  	 	  	 	25,924  	 	  	 	4,310  	 
	 Plant
	  	 	40,149  	 	  	 	7,784  	 	  	 	8,039  	 	  	 	7,710  	 	  	 	7,894  	 	  	 	7,479  	 	  	 	1,243  	 
	 G&A
	  	 	25,247  	 	  	 	4,508  	 	  	 	4,456  	 	  	 	5,049  	 	  	 	5,319  	 	  	 	5,064  	 	  	 	852  	 
	
Total
	  	 	$211,020  	 	  	 	$42,449  	 	  	 	$43,637  	 	  	 	$39,485  	 	  	 	$40,577  	 	  	 	$38,466  	 	  	 	$6,406  	 

 Source: Sierra Metals, 2016 
  

Table 21-4: Unit Operating Cost Summary 

 

																			
	 	 	 Area	  	     Average  
(US$/t)  	 	  	
2016  

     (US$/t)  
	  	 2017  

     (US$/t)  
	  	
2018  

     (US$/t)  
	  	 2019  

     (US$/t)  
	  	
2020  

     (US$/t)  
	  	
2021 

     (US$/t) 

	 	  Mine
	  	 	38.45  	 	  	41.07  	  	41.07  	  	36.75  	  	36.75  	  	36.75  	  	36.75 
	 	  Plant
	  	 	10.60  	 	  	10.60  	  	10.60  	  	10.60  	  	10.60  	  	10.60  	  	10.60 
	 	  G&A
	  	 	6.67  	 	  	6.14  	  	5.88  	  	6.94  	  	7.14  	  	7.18  	  	7.26 
	 	  Total
	  	 	$55.72  	 	  	$57.81  	  	$57.55  	  	$54.29  	  	$54.50  	  	$54.53  	  	$54.62 

 Source: Sierra Metals, 2016 

The mining cost was developed from the following from eight individual functions that comprise the mining operation. Table 21-5 presents each function and its associated unit cost. 

  
  

					
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 Table 21-5: Mining Operation Cost by
Functions 
  

																									
	Area	  	2016
(US$/t)	 	  	2017
(US$/t)	 	  	2018
(US$/t)	 	  	2019
(US$/t)	 	  	2020
(US$/t)	 	  	2021
(US$/t)	 
	 Labor
	  	 	5.80	 	  	 	5.80	 	  	 	5.19	 	  	 	5.19	 	  	 	5.19	 	  	 	5.19	 
	 Exploration and
Development
	  	 	1.69	 	  	 	1.69	 	  	 	1.51	 	  	 	1.51	 	  	 	1.51	 	  	 	1.51	 
	 Preparation and
Exploitation
	  	 	22.47	 	  	 	22.47	 	  	 	20.11	 	  	 	20.11	 	  	 	20.11	 	  	 	20.11	 
	 Power
	  	 	1.83	 	  	 	1.83	 	  	 	1.63	 	  	 	1.63	 	  	 	1.63	 	  	 	1.63	 
	 Aux.
Services
	  	 	1.81	 	  	 	1.81	 	  	 	1.62	 	  	 	1.62	 	  	 	1.62	 	  	 	1.62	 
	 Maintenance
	  	 	1.83	 	  	 	1.83	 	  	 	1.64	 	  	 	1.64	 	  	 	1.64	 	  	 	1.64	 
	 General Mine
Expenses
	  	 	5.28	 	  	 	5.28	 	  	 	4.73	 	  	 	4.73	 	  	 	4.73	 	  	 	4.73	 
	
Haulage
	  	 	0.36	 	  	 	0.36	 	  	 	0.32	 	  	 	0.32	 	  	 	0.32	 	  	 	0.32	 
	
Total
	  	 	$41.07	 	  	 	$41.07	 	  	 	$36.75	 	  	 	$36.75	 	  	 	$36.75	 	  	 	$36.75	 

 Source: Sierra Metals, 2016 

The processing cost was developed from the following from seven individual functions that compose the processing operation; Table 21-6 presents each function and its associated unit cost. 
 Table
21-6: Processing Operation Cost by Functions 
  

																									
	Area	  	 2016

(US$/t)
	 	  	 2017

(US$/t)
	 	  	 2018

(US$/t)
	 	  	 2019

(US$/t)
	 	  	 2020

(US$/t)
	 	  	 2021

(US$/t)
	 
	 Labor
	  	 	2.03	 	  	 	2.03	 	  	 	2.03	 	  	 	2.03	 	  	 	2.03	 	  	 	2.03	 
	 Grinding
	  	 	1.08	 	  	 	1.08	 	  	 	1.08	 	  	 	1.08	 	  	 	1.08	 	  	 	1.08	 
	 Flotation, Thickening
and Filtering
	  	 	3.42	 	  	 	3.42	 	  	 	3.42	 	  	 	3.42	 	  	 	3.42	 	  	 	3.42	 
	 Power
	  	 	2.32	 	  	 	2.32	 	  	 	2.32	 	  	 	2.32	 	  	 	2.32	 	  	 	2.32	 
	 Laboratory
	  	 	0.14	 	  	 	0.14	 	  	 	0.14	 	  	 	0.14	 	  	 	0.14	 	  	 	0.14	 
	 Maintenance
	  	 	0.30	 	  	 	0.30	 	  	 	0.30	 	  	 	0.30	 	  	 	0.30	 	  	 	0.30	 
	
General Plant Expenses
	  	 	1.32	 	  	 	1.32	 	  	 	1.32	 	  	 	1.32	 	  	 	1.32	 	  	 	1.32	 
	
Total
	  	 	$10.60	 	  	 	$10.60	 	  	 	$10.60	 	  	 	$10.60	 	  	 	$10.60	 	  	 	$10.60	 

 Source: Sierra Metals, 2016 

The G&A cost estimate divided into selling expenses and administrative expenses. Note that the G&A cost includes all the
expenses with marketing, selling and transporting the products to market. The selling expenses and administrative expenses were broken into various functions, which are presented in Table 21-7 and Table 21-8. 
 Table 21-7: Selling Expenses Cost by
Functions 
  

																									
	Area	  	 2016

(US$/t)
	 	  	 2017

(US$/t)
	 	  	 2018

(US$/t)
	 	  	 2019

(US$/t)
	 	  	 2020

(US$/t)
	 	  	 2021

(US$/t)
	 
	 Salaries &
Benefit
	  	 	0.081	 	  	 	0.122	 	  	 	0.120	 	  	 	0.125	 	  	 	0.123	 	  	 	0.123	 
	 Consulting and
Professional Fees
	  	 	0.021	 	  	 	0.026	 	  	 	0.025	 	  	 	0.026	 	  	 	0.026	 	  	 	0.026	 
	 Rent Expense
	  	 	0.003	 	  	 	0.002	 	  	 	0.002	 	  	 	0.002	 	  	 	0.002	 	  	 	0.002	 
	 Maintenance
	  	 	0.001	 	  	 	0.003	 	  	 	0.003	 	  	 	0.003	 	  	 	0.003	 	  	 	0.003	 
	
Communication
	  	 	0.019	 	  	 	0.016	 	  	 	0.015	 	  	 	0.016	 	  	 	0.016	 	  	 	0.016	 
	 Supplies
	  	 	0.003	 	  	 	0.002	 	  	 	0.001	 	  	 	0.002	 	  	 	0.002	 	  	 	0.002	 
	 Assay &
Sampling
	  	 	0.079	 	  	 	0.088	 	  	 	0.087	 	  	 	0.090	 	  	 	0.089	 	  	 	0.089	 
	
Supervision & Shipping Expense
	  	 	0.025	 	  	 	0.024	 	  	 	0.023	 	  	 	0.024	 	  	 	0.024	 	  	 	0.024	 
	 Other
	  	 	0.001	 	  	 	0.001	 	  	 	0.001	 	  	 	0.001	 	  	 	0.001	 	  	 	0.001	 
	
Concentrate Transportation
	  	 	3.037	 	  	 	3.000	 	  	 	4.039	 	  	 	4.039	 	  	 	4.039	 	  	 	4.039	 
	
Total
	  	 	$3.270	 	  	 	$3.283	 	  	 	$4.317	 	  	 	$4.329	 	  	 	$4.324	 	  	 	$4.324	 

 Source: Sierra Metals, 2016 

  
  

					
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 Table 21-8: Administrative Expenses Cost by
Functions 
  

																									
	Area	  	2016
(US$/t)	 	 	2017
(US$/t)	 	  	2018
(US$/t)	 	  	2019
(US$/t)	 	  	2020
(US$/t)	 	  	2021
(US$/t)	 
	 Salaries and
benefits
	  	 	1.83	 	 	 	1.80	 	  	 	1.83	 	  	 	1.96	 	  	 	1.99	 	  	 	2.05	 
	 Consulting and
professional fees
	  	 	0.30	 	 	 	0.17	 	  	 	0.17	 	  	 	0.18	 	  	 	0.19	 	  	 	0.19	 
	 Legal fees
	  	 	0.07	 	 	 	0.07	 	  	 	0.07	 	  	 	0.07	 	  	 	0.07	 	  	 	0.08	 
	 Audit fees
	  	 	0.11	 	 	 	0.10	 	  	 	0.10	 	  	 	0.11	 	  	 	0.11	 	  	 	0.12	 
	 Travelling
expense
	  	 	0.03	 	 	 	0.03	 	  	 	0.03	 	  	 	0.03	 	  	 	0.03	 	  	 	0.03	 
	 Marketing and
advertising
	  	 	0.01	 	 	 	0.01	 	  	 	0.01	 	  	 	0.01	 	  	 	0.01	 	  	 	0.01	 
	 Rent expense
	  	 	0.12	 	 	 	0.11	 	  	 	0.11	 	  	 	0.12	 	  	 	0.12	 	  	 	0.12	 
	 Penalties and
taxes
	  	 	0.03	 	 	 	0.03	 	  	 	0.03	 	  	 	0.03	 	  	 	0.03	 	  	 	0.03	 
	 Insurance
expense
	  	 	0.02	 	 	 	0.01	 	  	 	0.01	 	  	 	0.01	 	  	 	0.01	 	  	 	0.01	 
	 Maintenance and
repairs
	  	 	0.04	 	 	 	0.03	 	  	 	0.03	 	  	 	0.04	 	  	 	0.04	 	  	 	0.04	 
	 Communications
expense
	  	 	0.08	 	 	 	0.08	 	  	 	0.09	 	  	 	0.09	 	  	 	0.09	 	  	 	0.10	 
	 Supplies
	  	 	0.05	 	 	 	0.05	 	  	 	0.05	 	  	 	0.05	 	  	 	0.05	 	  	 	0.05	 
	 Bank charges
	  	 	0.09	 	 	 	0.05	 	  	 	0.05	 	  	 	0.05	 	  	 	0.05	 	  	 	0.05	 
	 Other
	  	 	0.14	 	 	 	0.06	 	  	 	0.06	 	  	 	0.07	 	  	 	0.07	 	  	 	0.07	 
	 SAP
Adjustment
	  	 	(0.03	) 	 	 	-	 	  	 	-	 	  	 	-	 	  	 	-	 	  	 	-	 
	 Total
	  	 	$2.87	 	 	 	$2.59	 	  	 	$2.62	 	  	 	$2.81	 	  	 	$2.85	 	  	 	$2.94	 

 Source: Sierra Metals, 2016 

  
  

					
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	22	Economic Analysis 

 Sierra Metals is a producing issuer as defined by
Section 1.1 of NI 43-101, and Yauricocha is an operating mine with a significant production history. A technical economic model was prepared by SRK to evaluate the Project. This model is based on annual
production assumptions and the market conditions, cost estimates, sales deductions and costs and royalties and taxes provided by Sierra Metal’s technical team. This section discloses these assumptions and comments on the profitability of the
reserves. The economic model was prepared under the assumption of 100% equity. All financial data is real terms using first half 2016 dollars. Currency is in real term U.S. dollars (US$), unless otherwise stated. 

 

	22.1	Assumptions External to Project 

 This valuation is based on metal prices provided
by SMCSA and reviewed by SRK. SMCSA currently has contracts for the provision of its concentrates; however, SRK did not review the details of existing contracts. The provided price curve has good adherence with current spot prices and general
consensus of market forecasters. The metal price assumption is presented in Table 22-1. 

Table 22-1: Metal Prices 

 

																							
	 	  	Year  	  	Au (US$/oz)	 	  	Ag (US$/oz)	 	  	Cu (US$/lb)	 	  	Pb (US$/lb)	 	  	Zn (US$/lb)	 
	  	2016  	  	 	1,251.00	 	  	 	16.76	 	  	 	2.28	 	  	 	0.86	 	  	 	0.94	 
	  	2017  	  	 	1,300.00	 	  	 	16.50	 	  	 	2.38	 	  	 	0.86	 	  	 	0.93	 
	  	2018  	  	 	1,293.00	 	  	 	17.00	 	  	 	2.50	 	  	 	0.90	 	  	 	0.98	 
	  	2019  	  	 	1,300.00	 	  	 	17.62	 	  	 	2.75	 	  	 	0.92	 	  	 	1.00	 
	  	2020  	  	 	1,300.00	 	  	 	18.00	 	  	 	2.93	 	  	 	0.95	 	  	 	1.00	 
	  	2021  	  	 	1,300.00	 	  	 	18.00	 	  	 	3.00	 	  	 	0.95	 	  	 	1.00	 

 Source: Sierra Metals, 2016 
  

	22.2	Commercial Assumptions 

 Yauricocha is a polymetallic operation that currently
produces lead, zinc and copper concentrates, which are sold to various smelters with slightly different specs. This valuation was prepared using concentrate sales proceeds and revenue generated by the Yauricocha operation alone. SRK understands that
the company also deals into the sales of third party concentrates, but these were not considered in this valuation. Specific price assumptions were calculated from the aforementioned price curve and through the application of appropriate discounts
and premiums based on the physical characteristics and qualities of each product. Product types from Yauricocha are described below: 
  

	 	•	 	Lead concentrate also containing gold and silver; 

  

	 	•	 	Zinc concentrate; and 

  

	 	•	 	Copper concentrate also containing gold and silver. 

  

	22.3	Taxes Depreciation and Royalties 

 The analysis of the Yauricocha Project includes
a total of 30% of income taxes over taxable income. Losses carried forward are used when possible, limited to 50% of profits. 

  
  

					
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Resources and Reserves– Yauricocha Mine
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 A depreciation schedule was calculated by SRK, assuming that the Project is able to
depreciate all of its assets by the end of the mine life, which occurs on 2021, based on the reserves disclosed in this report. The depreciation also considers that the Project currently hold an amount of US$43.5 million of installed assets
that are yet to be depreciated 
 The Project includes payment of two types of governmental royalties, the first called a mining
royalty and the second called a special mining tax. Both royalties are calculated as a rate depending on the ratio between the EBIT and the Net Revenue. This rate is applied on top of the EBIT, with the difference that the mining royalty can be
replaced by a minimum rate of 1% over the net revenue, in case this 1% is higher than the mining royalty rate over the EBIT. The rates for each royalty are presented in Table 22-2. 

Table 22-2: Yauricocha Royalty Rates 

 

																			
	                  	 	  	  	Special Mining Tax	 	  	Mining Royalty	 
	 	EBIT (%)  	  	Marg. (%)	 	  	Cum. (%)	 	  	Marg. (%)	 	  	Cum. (%)	 
	 	0.00  	  	 	0.00  	 	  	 	0.00  	 	  	 	0.00  	 	  	 	0.00  	 
	 	10.00  	  	 	2.00  	 	  	 	0.20  	 	  	 	1.00  	 	  	 	0.10  	 
	 	15.00  	  	 	2.40  	 	  	 	0.32  	 	  	 	1.75  	 	  	 	0.19  	 
	 	20.00  	  	 	2.80  	 	  	 	0.46  	 	  	 	2.50  	 	  	 	0.31  	 
	 	25.00  	  	 	3.20  	 	  	 	0.62  	 	  	 	3.25  	 	  	 	0.48  	 
	 	30.00  	  	 	3.60  	 	  	 	0.80  	 	  	 	4.00  	 	  	 	0.68  	 
	 	35.00  	  	 	4.00  	 	  	 	1.00  	 	  	 	4.75  	 	  	 	0.91  	 
	 	40.00  	  	 	4.40  	 	  	 	1.22  	 	  	 	5.50  	 	  	 	1.19  	 
	 	45.00  	  	 	4.80  	 	  	 	1.46  	 	  	 	6.25  	 	  	 	1.50  	 
	 	50.00  	  	 	5.20  	 	  	 	1.72  	 	  	 	7.00  	 	  	 	1.85  	 
	 	55.00  	  	 	5.60  	 	  	 	2.00  	 	  	 	7.75  	 	  	 	2.24  	 
	 	60.00  	  	 	6.00  	 	  	 	2.30  	 	  	 	8.50  	 	  	 	2.66  	 
	 	65.00  	  	 	6.40  	 	  	 	2.62  	 	  	 	9.25  	 	  	 	3.13  	 
	 	70.00  	  	 	6.80  	 	  	 	2.96  	 	  	 	10.00  	 	  	 	3.63  	 
	 	80.00  	  	 	7.60  	 	  	 	3.70  	 	  	 	11.50  	 	  	 	4.74  	 
	 	85.00  	  	 	8.00  	 	  	 	4.10  	 	  	 	12.00  	 	  	 	5.34  	 
	 	90.00  	  	 	8.40  	 	  	 	4.52  	 	  	 	12.00  	 	  	 	5.34  	 

 Source: Sierra Metals, 2016 
  

	22.4	Production Assumptions 

  

	22.4.1	Base Case 

 The life of mine (LoM) mine production schedule estimates that the mine
will produce about 1.58 Mt of run of mine (RoM) at the following average metal grades: 
  

	 	•	 	Au: 0.62 g/t; 

  

	 	•	 	Ag: 61.12 g/t; 

  

	 	•	 	Cu: 0.84%; 

  

	 	•	 	Pb: 1.15%; and 

  

	 	•	 	Zn: 2.92%. 

 The details of the life of mine RoM production are presented in Table 22-3. Note that only Proven and Probable reserve material is included in this economic analysis. Site personnel generate an alternate mine plan which includes Inferred Mineral Resources that are considered too
speculative 

  
  

					
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geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. 

Table 22-3: Mine Production Summary 

 

													
	Area	  	Description	  	Value	 	  	Units  	  	 	  	 
	 Mina Central
	  	 Development
	  	 	2,030	 	  	m	  		  	
	  	Antacaca Ore	  	 	121	 	  	kt	  		  	
	  	Antacaca Sur Ore	  	 	406	 	  	kt	  		  	
	  	Rosaura Ore	  	 	218	 	  	kt	  		  	
	  	Catas Ore	  	 	833	 	  	kt	  		  	
	  	Mina Central Total Ore	  	 	1,578	 	  	kt	  		  	
	 Mascota
	  	 Development
	  	 	291	 	  	m	  		  	
	  	Mined Ore	  	 	227	 	  	kt	  		  	
	  	Mascota Total Ore	  	 	227	 	  	kt	  		  	
	 Cachi-Cachi
	  	 Development
	  	 	412	 	  	kt	  		  	
	  	Elissa Ore	  	 	116	 	  	kt	  		  	
	  	Escondida Ore	  	 	90	 	  	kt	  		  	
	  	Karlita Ore	  	 	87	 	  	kt	  		  	
	  	Zulma Ore	  	 	20	 	  	kt	  		  	
	  	Total Ore Mined	  	 	8	 	  	kt	  		  	
	  	Cachi-Cachi Total Ore	  	 	320	 	  	kt	  		  	
	
Cuerpos Pequenos        
	  	 Development
	  	 	135	 	  	m	  		  	
	  	Contacto Occidental Ore	  	 	5	 	  	kt	  		  	
	  	Contacto Oriental Ore	  	 	4	 	  	kt	  		  	
	  	Contacto Sur Medio	  	 	14	 	  	kt	  		  	
	  	Contacto Sur Medio I	  	 	1	 	  	kt	  		  	
	  	Contacto Sur Medio II	  	 	27	 	  	kt	  		  	
	  	Cuye Ore	  	 	6	 	  	kt	  		  	
	  	Marita Ore	  	 	11	 	  	kt	  		  	
	  	Juliana Ore	  	 	7	 	  	kt	  		  	
	  	Gallito Ore	  	 	15	 	  	kt	  		  	
	  	Butz Ore	  	 	14	 	  	kt	  		  	
	  	Cuerpos Pequenos Total Ore  	  	 	105	 	  	kt	  		  	
	 Esperanza
	  	Development	  	 	1,955	 	  	kt	  		  	
	  	Mined Ore	  	 	1,520	 	  	kt	  		  	
	  	Esperanza Total Ore	  	 	1,520	 	  	kt	  		  	
	 Pozo Rico
	  	Pozo Rico	  	 	0	 	  	m	  		  	
	  	Development	  	 	48	 	  	m	  		  	
	  	Pozo Rico Total Ore	  	 	48	 	  	kt	  		  	
	 Totals
	  	Development	  	 	4,870	 	  	m	  		  	
	  	Mined Ore	  	 	3,787	 	  	kt	  		  	
	  	Daily Mining Rate	  	 	1,729	 	  	t/d	  		  	
	  	Gold Grade, Mined	  	 	0.62	 	  	g/t	  		  	
	  	Silver Grade, Mined	  	 	61.12	 	  	g/t	  		  	
	  	Copper Grade	  	 	0.84	 	  	%	  		  	
	  	Lead Grade, Mined	  	 	1.15	 	  	%	  		  	
	  	Zinc Grade, Mined	  	 	2.92	 	  	%	  		  	
	  	Contained Gold, Mined	  	 	75.9	 	  	koz	  		  	
	  	Contained Silver, Mined	  	 	7,442	 	  	koz	  		  	
	  	Contained Copper, Mined	  	 	69,738	 	  	klb	  		  	
	  	Contained Lead, Mined	  	 	95,893	 	  	klb	  		  	
	  	Contained Zinc, Mined	  	 	243,949	 	  	klb	  		  	

 Source: SRK, 2016 

  
  

					
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 The RoM is broken down into four types of material, polymetallic ore, lead oxide ore,
copper oxide ore and copper sulfide ore. The plant feed is summarized in Table 22-4. 
 Table 22-4: Plant Feed Summary 
  

											
	 	 	Description	  	Value	 	  	units	 
	
                
	 	 RoM Feed
	  			 	  			 
		 	 Polymetallic Ore, Processed
	  	 	3,549	 	  	 	kt	 
		 	 Lead Oxide Ore, Processed
	  	 	232	 	  	 	kt	 
		 	 Copper Oxide Ore, Processed
	  	 	0	 	  	 	kt	 
		 	 Copper Sulfide Ore, Processed
	  	 	6	 	  	 	kt	 
		 	 Total RoM Processed
	  	 	3,787	 	  	 	kt	 
		 	 Average Processing Rate
	  	 	1,729	 	  	 	t/d	 
		 	 Milled Ore Gold Grade, Processed
	  	 	0.62	 	  	 	g/t	 
		 	 Milled Ore Silver Grade, Processed
	  	 	61.12	 	  	 	g/t	 
		 	 Milled Ore Copper Grade, Processed
	  	 	0.84	 	  	 	%	 
		 	 Milled Ore Lead Grade, Processed
	  	 	1.15	 	  	 	%	 
		 	 Milled Ore Zinc Grade, Processed
	  	 	2.92	 	  	 	%	 
		 	 Milled Ore Gold Content, Processed
	  	 	75.9	 	  	 	koz	 
		 	 Milled Ore Silver Content, Processed
	  	 	7,442	 	  	 	koz	 
		 	 Milled Ore Copper Content, Processed  
	  	 	69,734	 	  	 	klb	 
		 	 Milled Ore Lead Content, Processed
	  	 	95,884	 	  	 	klb	 
		 	 Milled Ore Zinc Content, Processed
	  	 	243,936	 	  	 	klb	 

                     Source: SRK, 2016

 Lead concentrate is produced from the processing of polymetallic ore and lead oxide ore. The life of mine production of lead
concentrate is presented in Table 22-5. 

  
  

					
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  Table 22-5: Lead Concentrate Production Summary

  

									
	    
            	 	Item	  	Value	 	  	Unit    
	 	 Polymetallic Ore Lead Concentrate    
	  				  	 
	 	 Concentrate Gold Grade
	  	 	3.78	 	  	g/t
	 	 Concentrate Silver Grade
	  	 	1,943	 	  	g/t
	 	 Concentrate Copper Grade
	  	 	0	 	  	%
	 	 Concentrate Lead Grade
	  	 	59.69	 	  	%
	 	 Concentrate Zinc Grade
	  	 	0	 	  	%
	 	 Recovery
	  				  	 
	 	 Gold
	  	 	9.0	 	  	%
	 	 Silver
	  	 	52.2	 	  	%
	 	 Copper
	  	 	0.0	 	  	%
	 	 Lead
	  	 	84.4	 	  	%
	 	 Zinc
	  	 	0.0	 	  	%
	 	 Concentrate Yield
	  	 	50.0	 	  	kt (dry)    
	 	 Lead Oxide Lead Concentrate
	  				  	 
	 	 Concentrate Gold Grade
	  	 	6.62	 	  	g/t
	 	 Concentrate Silver Grade
	  	 	1,524	 	  	g/t
	 	 Concentrate Copper Grade
	  	 	0	 	  	%
	 	 Concentrate Lead Grade
	  	 	48.58	 	  	%
	 	 Concentrate Zinc Grade
	  	 	0	 	  	%
	 	 Recovery
	  				  	 
	 	 Gold
	  	 	24.0	 	  	%
	 	 Silver
	  	 	31.5	 	  	%
	 	 Copper
	  	 	0.0	 	  	%
	 	 Lead
	  	 	56.4	 	  	%
	 	 Zinc
	  	 	0.0	 	  	%
	 	 Concentrate Yield
	  	 	9.4	 	  	kt (dry)    
	 	 Lead Sulfide Lead Concentrate
	  				  	 
	 	 Concentrate Gold Grade
	  	 	15.03	 	  	g/t
	 	 Concentrate Silver Grade
	  	 	3,474	 	  	g/t
	 	 Concentrate Copper Grade
	  	 	0	 	  	%
	 	 Concentrate Lead Grade
	  	 	27.08	 	  	%
	 	 Concentrate Zinc Grade
	  	 	0	 	  	%
	 	 Recovery
	  				  	 
	 	 Gold
	  	 	16.0	 	  	%
	 	 Silver
	  	 	21.1	 	  	%
	 	 Copper
	  	 	0.0	 	  	%
	 	 Lead
	  	 	9.2	 	  	%
	 	 Zinc
	  	 	0.0	 	  	%
	 	 Concentrate Yield
	  	 	2.8	 	  	kt (dry)    

 Source: SRK, 2016 

Zinc concentrate is produced from the processing of polymetallic ore. The life of mine production of zinc concentrate is presented in
Table 22-6. 

  
  

					
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 Table 22-6: Zinc Concentrate Production
Summary 
  

											
	         	 	Item	  	Value	 	  	Unit	 
	 	 Zinc Concentrate
	  			 	  			 
	 	 Concentrate Gold Grade
	  	 	0.00	 	  	 	g/t	 
	 	 Concentrate Silver Grade
	  	 	0	 	  	 	g/t	 
	 	 Concentrate Copper Grade
	  	 	0.0	 	  	 	%	 
	 	 Concentrate Lead Grade
	  	 	0.0	 	  	 	%	 
	 	 Concentrate Zinc Grade
	  	 	51	 	  	 	%	 
	 	 Recovery
	  			 	  			 
	 	 Gold
	  	 	0	 	  	 	%	 
	 	 Silver
	  	 	0	 	  	 	%	 
	 	 Copper
	  	 	0	 	  	 	%	 
	 	 Lead
	  	 	0	 	  	 	%	 
	 	 Zinc
	  	 	90	 	  	 	%	 
	 	 Concentrate Yield
	  	 	193.4	 	  	 	kt (dry)	 

 Source: SRK, 2016 

Copper concentrate is produced from the processing of polymetallic ore and copper sulfide ore. The life of mine production of copper
concentrate is presented in Table 22-7. 
 Table
22-7: Copper Concentrate Production Summary 
  

											
	
           
	 	
Item
	  	 	Value	 	  	 	Unit	 
	 	 Polymetallic Ore Copper Concentrate
	  			 	  			 
	 	 Concentrate Gold Grade
	  	 	3.06	 	  	 	g/t	 
	 	 Concentrate Silver Grade
	  	 	502	 	  	 	g/t	 
	 	 Concentrate Copper Grade
	  	 	27.3	 	  	 	%	 
	 	 Concentrate Lead Grade
	  	 	0.0	 	  	 	%	 
	 	 Concentrate Zinc Grade
	  	 	0	 	  	 	%	 
	 	 Recovery
	  			 	  			 
	 	 Gold
	  	 	9.0	 	  	 	%	 
	 	 Silver
	  	 	16.7	 	  	 	%	 
	 	 Copper
	  	 	55.1	 	  	 	%	 
	 	 Lead
	  	 	0.0	 	  	 	%	 
	 	 Zinc
	  	 	0.0	 	  	 	%	 
	 	 Precipitate Yield
	  	 	61.8	 	  	 	kt (dry)	 
	 	
Copper Sulfide Ore Copper Concentrate    
	  			 	  			 
	 	 Concentrate Gold Grade
	  	 	0.14	 	  	 	g/t	 
	 	 Concentrate Silver Grade
	  	 	10.1	 	  	 	g/t	 
	 	 Concentrate Copper Grade
	  	 	21.0	 	  	 	%	 
	 	 Concentrate Lead Grade
	  	 	0.0	 	  	 	%	 
	 	 Concentrate Zinc Grade
	  	 	0	 	  	 	%	 
	 	 Recovery
	  			 	  			 
	 	 Gold
	  	 	35.0	 	  	 	%	 
	 	 Silver
	  	 	66.0	 	  	 	%	 
	 	 Copper
	  	 	90.0	 	  	 	%	 
	 	 Lead
	  	 	0.0	 	  	 	%	 
	 	 Zinc
	  	 	0.0	 	  	 	%	 
	 	
Precipitate Yield
	  	 	1.4	 	  	 	kt (dry)	 

 Source: SRK, 2016 

Current contracts for the sales of the metal concentrates establishes the terms for the payment of each metal contained in the products.
These Net Smelter Return (NSR) Terms are presented in Table 22-8. 

  
  

					
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   Table 22-8: Concentrate NSR
Terms 
  

									
	 	 	
Item
	 	 	Value	 	  	Unit
	 	 	 Lead Concentrate
	 			 	  	 
	 	 	 Au Minimum Deduction
	 	 	1.00	 	  	g/t
	 	 	 Au Payability Factor
	 	 	95	 	  	%
	 	 	 Au Refining Charge
	 	 	20.00	 	  	US$/oz
	 	 	 Ag Minimum Deduction
	 	 	50.00	 	  	g/t
	 	 	 Ag Payability Factor
	 	 	95	 	  	%
	 	 	 Ag Refining Charge
	 	 	2.40	 	  	US$/oz
	 	 	 Pb Minimum Deduction
	 	 	3.0	 	  	% points
	 	 	 Pb Payability Factor
	 	 	95	 	  	%
	 	 	 Pb Treatment Charge
	 	 	285.00	 	  	US$/t
	 	 	 Price Participation
	 			 	  	 
	 	 	 Lower Base Price (US$/t)
	 	 	1,800.00	 	  	US$/t
	 	 	 Upper Base Price (US$/t)
	 	 	1,900.00	 	  	US$/t
	 	 	 Lower Premium (US$/t)
	 	 	0.16	 	  	US$/t
	 	 	 Upper Premium (US$/t)
	 	 	0.15	 	  	US$/t
	 	 	 Zinc Concentrate
	 			 	  	 
	 	 	 Zn Minimum Deduction
	 	 	8.0	 	  	% points
	 	 	 Zn Payability Factor
	 	 	85	 	  	%
	 	 	 Zn Treatment Charge
	 	 	258.90	 	  	US$/t
	 	 	 Price Participation
	 			 	  	 
	 	 	 Lower Base Price (US$/t)
	 	 	1,725.00	 	  	US$/t
	 	 	 Upper Base Price (US$/t)
	 	 	1,850.00	 	  	US$/t
	 	 	 Lower Premium (US$/t)
	 	 	0.16	 	  	US$/t
	 	 	 Upper Premium (US$/t)
	 	 	0.15	 	  	US$/t
	 	 	 Copper Concentrate
	 			 	  	 
	 	 	 Au Minimum Deduction
	 	 	1.50	 	  	g/t
	 	 	 Au Payability Factor
	 	 	95	 	  	%
	 	 	 Au Refining Charge
	 	 	6.00	 	  	US$/oz
	 	 	 Ag Minimum Deduction
	 	 	75.00	 	  	g/t
	 	 	 Ag Payability Factor
	 	 	95	 	  	%
	
        
	 	 Ag Refining Charge
	 	 	1.50	 	  	US$/oz
	 	 	 Cu Minimum Deduction
	 	 	1.1	 	  	% points
	 	 	 Cu Payability Factor
	 	 	97	 	  	%
	 	 	 Cu Refining Charge
	 	 	0.20	 	  	US$/lb

     Source: SRK, 2016 

 

	22.5	Analysis Conclusions 

 Yauricocha is a polymetallic mine that produces and sells
lead, zinc and copper concentrates. Zinc is the biggest contributor to the project revenue and corresponds to approximately 41% of value. Copper is considered a secondary co-product to zinc, corresponding to
23% of the revenue. Lead, silver and gold are considered by-products of the operation and each contribute 18%, 15% and 3%, respectively, to the mine’s revenue. Figure
22-1 presents a graphical representation of each metals contribution to the Project’s revenue. 

The reserves stated in this report support a profitable operation under the cost and market assumptions discussed in this report. 

  
  

					
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 Source: SRK, 2016 

Figure 22-1: Metal Contribution to Revenue 

  
  

					
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	23	Adjacent Properties 

 SRK is not aware of any adjacent properties to the Yauricocha mine as defined
under NI 43-101. 

  
  

					
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	24	Other Relevant Data and Information 

 SRK knows of no other relevant data at this
time. 

  
  

					
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	25	Interpretation and Conclusions 

  

	25.1	Exploration 

 SRK is of the opinion that the exploration at Yauricocha is being
conducted in a reasonable manner and is supported by an extensive history of discovery and development. Recent exploration success at Esperanza will continue to develop in the near term and SRK notes that other areas near the current mining
operation remain prospective for additional exploration, and that these will be prioritized based on the needs and objectives of the Yauricocha Mine. 

The understanding of the geology and mineralization at Yauricocha is based on a combination of geologic mapping, drilling, and
development sampling that guides the ongoing mine design. SRK has reviewed the methods and procedures for these data collection methods and notes that they are generally reasonable and consistent with industry best practice. The validation and
verification of data and information supporting the mineral resource estimation has historically been deficient, but strong efforts are being made to modernize and validate the historic information using current, aggressive QA/QC methods and more
modern practices for drilling and sampling. SRK notes that the majority of the remaining resources in areas such as Mina Central and Cachi-Cachi are supported by more modern data validation and QA/QC, and that new areas like Esperanza feature
extensive QA/QC and third-party analysis. 
 The current QA/QC program is aggressive and should be providing very high confidence in
the quality of the analytical data. Unfortunately, the results from both ALS and the Chumpe laboratories show significant failures which could be related to a number of factors that may be out of the control of the laboratory. 

SRK is of the opinion that the current procedures and methods for the data collection and validation are reasonable and consistent with
industry best practices, but that there are opportunities to improve this going forward. For example, the current management of the “database” is effectively maintained through a host of individual Excel files, which is not consistent with
industry best practice. Modern best practices generally feature a unified database software with all of the information compiled and stored in one place, with methods and procedures in place to verify the data and prevent tampering. 

 

	25.2	Mineral Resource Estimate 

 The procedures and methods supporting the mineral
resource estimation have been developed in conjunction with Minera Corona geological personnel, and the resource estimations presented herein have been conducted by independent consultants using supporting data generated by site personnel. In
general, the geologic models are defined by the site geologists using manual and 3D modeling techniques from drilling and development information. These models are used to constrain block models, which are flagged with bulk density, mine area,
depletion, etc. Grade is estimated into these block models using both drill and channel samples, and applying industry-standard estimation methodology. Mineral resources estimated by the independent consultants are categorized in a manner consistent
with industry best practice, and are reported above reasonable unit value cut-offs. 
 SRK is
of the opinion that the resource estimations are suitable for public reporting and are a fair representation of the in-situ contained metal for the Yauricocha deposit. 

  
  

					
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	25.3	Mineral Reserve Estimate 

 The Yauricocha Mine is a producing operation with a long
production history. The procedures and methods supporting the mineral reserve estimation have been developed by SRK in conjunction with Sierra Metals mine planning personnel. The reserve estimates presented herein have been conducted by independent
consultants using supporting data generated by the site 
 In general, each mining area is evaluated using reasonable mining block
shapes based on the mining method applicable to the zone. Data and information supporting the mining recovery, mining dilution, reconciliation-based grade adjustments, metallurgical recoveries, consensus commodity pricing, and treatment and refining
charges have been provided by Sierra Metals and reviewed by SRK. These factors are used to calculate unit values for the blocks in the models. Historic and expected direct and indirect mining, processing and general and administrative costs were
provided by Sierra Metals. To be considered economic, the Net Smelter Return (NSR) value of the mining block must be greater than the economic cutoff. Mining blocks below the economic cutoff but above the marginal cutoff are, in some cases, included
in the reserve where they are in between or immediately adjacent to an economic block and it is reasonable to expect that no significant additional development would be required to extract the marginal block. Isolated blocks, defined as blocks with
no defined access, have been excluded from the reserve. Only material classified as Measured and Indicated Resources contribute to the grade values in a mining block. Material inside a block and not classified as Measured or Indicated is assumed to
have zero grade. Mined out areas were provided by Sierra Metals personnel. The Mineral Reserves are categorized in a manner consistent with industry best practice. SRK is of the opinion that the reserve estimations are suitable for public reporting
and are a fair representation of the mill feed for the Yauricocha deposit. 
 Sierra Metals personnel are working to manage the
challenging ground conditions through studies, improved planning, and execution of mine plans. This reserves estimate includes mining blocks down to the 1170 level (approximately 3737 masl). Minera Corona is currently undertaking two shaft projects
to access deep ore beyond the 1070 level (3837 masl). The Mascota shaft extension is planned to be in production in early 2018 and will provide access to the 1120 level. The new Yauricocha shaft will eventually provide access down to the 1370 level
and is expected to be in production in early 2019. Delays in these projects could affect the overall mine plan by delaying extraction of ore below the 1070 level. 
  

	25.4	Metallurgy and Processing 

 Yauricocha’s processing plant is showing
consistent performance in terms of throughput and metal recovery. A second crushing plant to process oxide ore is being constructed with expected completion in 2016. The expanded facilities will increase the combined capacity from approximately
81,000 tonnes per month to nominally 105,000 tonnes per month. 
 Metal deportment has improved over time. The polymetallic plant
deports silver preferentially to the lead sulfide concentrate reaching 52.3% during January-February 2016. In the oxide circuit silver is preferentially deported to the lead oxide concentrate reaching 29.7% in 2016. All final concentrates (copper
concentrate, lead sulfide concentrate, lead oxide concentrate, zinc concentrate) achieve typical commercial quality grades. 

  
  

					
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	25.5	Projected Economic Outcomes 

 Considering an average mining/processing rate of
1,729 /d and a maximum rate of 2,077 t/d, the Yauricocha reserves should be able to support the project until the end of the first quarter of 2021. 

Under these assumptions, the yearly capital expenditure for each of the main areas is summarized in Table
25-1. 
 Table 25-1: Capital Cost Summary 

 

																									
	Description	  	 2016

(US$000’s)
	 	  	 2017

(US$000’s)
	 	  	 2018

(US$000’s)
	 	  	 2019

(US$000’s)
	 	  	 2020

(US$000’s)
	 	  	 2021

(US$000’s)
	 
	 Development
	  	 	795	 	  	 	821	 	  	 	787	 	  	 	806	 	  	 	764	 	  	 	127	 
	 Projects
	  	 	2,772	 	  	 	3,979	 	  	 	4,728	 	  	 	5,322	 	  	 	4,822	 	  	 	0	 
	 PP&E
	  	 	1,780	 	  	 	1,500	 	  	 	1,500	 	  	 	1,500	 	  	 	1,500	 	  	 	0	 
	 Mine
Expansion
	  	 	1,674	 	  	 	2,500	 	  	 	2,500	 	  	 	3,100	 	  	 	3,100	 	  	 	0	 
	 Growth
	  	 	6,480	 	  	 	3,750	 	  	 	3,750	 	  	 	1,000	 	  	 	1,500	 	  	 	0	 
	 Exploration
	  	 	525	 	  	 	0	 	  	 	0	 	  	 	0	 	  	 	0	 	  	 	0	 
	 Total Capital
	  	 	$14,024	 	  	 	$12,550	 	  	 	$13,266	 	  	 	$11,728	 	  	 	$11,686	 	  	 	$127	 

   Source: Sierra Metals, 2016 

The Project’s operating costs were estimated using a first principles approach and are based on current site specific data. Table 25-2 and Table 25-3 present the summary of total operating costs and the summary of unit operating costs. 

Table 25-2: Operating Cost Summary 

 

																													
	Area	  	 Total

(US$000’s)
	 	  	 2016

(US$000’s)
	 	  	 2017

(US$000’s)
	 	  	 2018

(US$000’s)
	 	  	 2019

(US$000’s)
	 	  	 2020

(US$000’s)
	 	  	 2021

(US$000’s)
	 
	 Mine
	  	 	145,624	 	  	 	30,157	 	  	 	31,142	 	  	 	26,727	 	  	 	27,364	 	  	 	25,924	 	  	 	4,310	 
	 Plant
	  	 	40,149	 	  	 	7,784	 	  	 	8,039	 	  	 	7,710	 	  	 	7,894	 	  	 	7,479	 	  	 	1,243	 
	 G&A
	  	 	25,247	 	  	 	4,508	 	  	 	4,456	 	  	 	5,049	 	  	 	5,319	 	  	 	5,064	 	  	 	852	 
	 Total
	  	 	$211,020	 	  	 	$42,449	 	  	 	$43,637	 	  	 	$39,485	 	  	 	$40,577	 	  	 	$38,466	 	  	 	$6,406	 

   Source: Sierra Metals, 2016 

Table 25-3: Unit Operating Cost Summary 

 

																													
	Area	  	 Average

(US$/t)
	 	  	 2016

(US$/t)
	 	  	 2017

(US$/t)
	 	  	 2018

(US$/t)
	 	  	 2019

(US$/t)
	 	  	 2020

(US$/t)
	 	  	 2021

(US$/t)
	 
	 Mine
	  	 	38.45	 	  	 	41.07	 	  	 	41.07	 	  	 	36.75	 	  	 	36.75	 	  	 	36.75	 	  	 	36.75	 
	 Plant
	  	 	10.60	 	  	 	10.60	 	  	 	10.60	 	  	 	10.60	 	  	 	10.60	 	  	 	10.60	 	  	 	10.60	 
	 G&A
	  	 	6.67	 	  	 	6.14	 	  	 	5.88	 	  	 	6.94	 	  	 	7.14	 	  	 	7.18	 	  	 	7.26	 
	 Total
	  	 	$55.72	 	  	 	$57.81	 	  	 	$57.55	 	  	 	$54.29	 	  	 	$54.50	 	  	 	$54.53	 	  	 	$54.62	 

   Source: Sierra Metals, 2016 

The Yauricocha Project is a polymetallic mine that produces and sells lead, zinc and copper concentrates. Zinc is the biggest
contributor to the project revenue, as it corresponds to approximately 41% of value. Copper is considered a secondary co-product to zinc, corresponding to 23% of the revenue. Lead, silver and gold are
considered by-products of the operation and each contribute 18%, 15% and 3%, respectively, to the mine’s revenue. Figure 25-1 presents a graphical representation of
each metals contribution to the Project’s revenue. The reserves stated in this report support a profitable operation under the cost and market assumptions discussed in this report. 

  
  

					
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 Source: SRK, 2016 

Figure 25-1: Metal Contribution to Revenue 

  
  

					
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	26	Recommendations 

  

	26.1	Recommended Work Programs and Costs 

  

	26.1.1	Geology and Mineral Resources 

 SRK has the following recommendations for the
geology and mineral resources at Yauricocha: 
  

	 	•	 	 Construct and compile a single reliable database, which can be easily verified, audited, and shared internally. This is
a near-term objective of the Yauricocha geology team, and SRK expects that this will be done in relatively short order. 

	 	•	 	 Exploration should continue in the Esperanza area, which is locally open along strike and at depth.

	 	•	 	 Long term exploration should be focused on areas such as the possible intersection of the Yauricocha fault and the
Cachi-Cachi structural trend, where very little has been done to date on this area. 

	 	•	 	 Exploration should be supported by a reasonably detailed structural model for the area to aid in exploration targeting.

	 	•	 	 Given the use of channel samples in the mineral resource estimations, SRK recommends ensuring that the channel samples
are collected on a representative basis, and that they are collected across the entire exposed thickness of an orebody. In addition, they should be weighed for each sample to ensure that appropriate quantities of material are sampled from both the
harder, more difficult material and the higher-grade, softer material. 

	 	•	 	 SRK strongly recommends reviewing the performance of the QA/QC with the relevant lab and investigating the source of the
failures. Reanalysis should be requested for the failed batches, and the new assays should be incorporated into the database. 

	 	•	 	 The estimations for the mineral resources would potentially benefit from detailed geostatistical analysis supporting a
more robust estimation method such as kriging, but this should be undertaken with care to avoid over-smoothing of some orebodies which feature high variability that may be desired in the detailed mine planning. 

	 	•	 	 Yauricocha should produce internal documentation summarizing the procedures and methods similar to that described in
this report. 

  

	26.1.2	 Mining and Reserves 

SRK has the following recommendations regarding mining and reserves at Yauricocha: 

 

	 	•	 	 The planning of infill drilling and mine planning should emphasize the conversion of resources into reserves inventory
especially for the mid-range planning horizon; 

	 	•	 	 The Yauricocha Shaft and Mascota Shaft Expansion projects need to be monitored closely in order to ensure timely access
to reserves below 1020 level; 

	 	•	 	 Mine to mill reconciliation efforts should continue in order to verify and tune the parameters used to convert resources
to reserves particularly the grade adjustment factors. Site personnel are improving the QA/QC program, modeling, and estimation techniques, and the grade adjustment factors may need to be modified as a result. Production at Esperanza presents a
unique opportunity to perform a focused reconciliation analysis; and 

  
  

					
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	 	•	 	 A consolidated 3D life-of-mine (LoM)
design should be completed to improve communication of the LoM plan, infill drilling and general mine planning and execution. 

SRK recommends study to determine if modifying the orientation of the sublevel cave drawpoints could result in reduced development.
Drawpoints are currently planned perpendicular to the strike of the orebody. In certain areas, particularly in Esperanza, it may be possible to orient the drawpoints parallel to the strike of the orebody. This orientation could result in fewer
development meters required for exploitation of the ore. 
  

	26.1.3	Infrastructure and Tailings 

 Based on SRK’s review of the provided tailings
storage facility documents SRK recommends the following additional works: 
  

	 	•	 	 Generate at least 10 sections with slide analysis and factor of safety; 

	 	•	 	 Generate sections with in-situ geology and densities; and 

	 	•	 	 Generate hydrogeology studies within the footprint of the dam and surface water models. 

 

	26.1.4	 Environmental Studies, Permitting and Social or Community Impact 

SRK has the following recommendations for the environmental and social studies and permitting at Yauricocha: 

 

	 	•	 	 It is likely that the Accumulación Yauricocha Unit will have to present a detailed environmental and social
impact assessment in coordination with SENACE if seeking any expansion. This includes preparing a number of studies as to the term of reference published by SENACE such as social impact assessment including a social, economic, cultural and
anthropological population baseline, hydrogeological pollutant transport model for short-, medium- and long-term scenarios, air quality and contaminant distribution assessment, archaeological survey report as for the certificate of nonexistence of
archaeological remains (CIRA, certificado de inexistencia de restos arqueologicos), mitigation or compensation measures as applicable, among others. These studies, if well performed, will help to give a better understanding of the
environmental and social implications of the mine site. 

  

	26.1.5	 Economic Analysis 

In early years of production, the economic valuation of the Project used gold and silver prices that are lower than current spot prices
observed in the market. The metal price assumptions were derived from July 19, 2016 BMO Capital Markets Street Consensus Commodity prices, and the consensus price for 2016 was used for the evaluation.
By-products represent approximately 20% of the revenue and SRK notes that an increase in gold and silver prices could result in a significant positive impact in the analysis. 

Mine development quantities and costs used in the valuation were built up from site-specific averages from recent production. Only 5% of
the development meters are covered by capital expenditures and that the remaining 95% would be covered by operating costs, thus mine development capital represents approximately 6% of the total project capital. A detailed development plan
incorporated into the economic evaluation may help to optimize the mine plan. SRK 

  
  

					
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recommends that the company reviews and refines the estimate of mine development required to mine the stated reserves in future reserves assessments. 

The valuation contained herein did not consider the impact of an eventual closure of the operation. It is SRK’s understanding that
there is the potential to extend the mine life further than what is currently supported by reserves. SRK recommends that Sierra Metals include closure liability and timing of the obligations for the project valuation in the future. 

 

	26.1.6	Costs 

 Table 26-1 lists the estimated cost
for the recommended work described in Section 26. 
 Table 26-1: Summary of Costs for
Recommended Work 
  

													
	  	 	 Category	  	Work	  	Units	 	  	Cost US$	 
	 	  Geology and Resources
	  	 Drilling - Esperanza
	  	 	3,000 m	 	  	 	300,000	 
	 	  Geology and Resources
	  	 Drilling - Yauricocha North
	  	 	10,000 m	 	  	 	1,000,000	 
	 	  Geology and Resources
	  	 Structural Study
	  	 	1	 	  	 	100,000	 
	 	  Geology and Resources
	  	 QA/QC and Reanalysis
	  	 	500	 	  	 	12,500	 
	 	  Mining and Reserves
	  	
Mining Methods Study – Drawpoint Orientation
	  	 	1	 	  	 	100,000	 

  Note: Drilling costs assume US$100/m drilling costs. 

 Source: SRK 

  
  

					
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	27	References 

 ACOMISA, 2015, Informe Técnico Sustentatorio
(ITS): “Mejora Technológica del Sistema de treatamiento de Aguas Residuales Domésticas. 875 pgs. y 13 planos y el levantamiento de observaciones 19 pgs. y 6 planos y Anexos 42 pgs. (la carpeta del Anexo 2 Estudio Hidrologico
estaba vacio). 
 ACOMISA, 2015, Segundo Informe Técnico Sustentatorio (ITS): “Mejora Technológica
del Sistema de treatamiento de Aguas Residuales Domésticas. 79 pgs. y 9 planos y Anexos 187 (la carpeta de los capítulos 3, 7, 13 14 y 15 estaban vacios, así como sus anexos). 

Centromin, 1997, Plan de Manejo Ambiental PAMA UDP Yauricocha, Dirección de Asuntos Ambientales. 192 pgs. 

CIM (2014). Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves:
Definitions and Guidelines, May 10, 2014. 
 Comunidad Campesina de Huancachi y Sociedad Minera Corona S.A.,
7/3/2015, Acta de reunion mesa de dialogo. 4 pgs. 
 Comunidad Campesina de Laraos y y Sociedad Minera Corona S.A.,
03/29/2015, Contrato de prestación de servicios transporte de personal y acta de entrega (06/14/2016). 33 pgs. 

Comunidad Campesina de Tomas y Sociedad Minera Corona S.A., 05/05/2014, Convenio Complementario y actas de entrega de
fecha: 06/16/2014, 07/11/2014, 09/17/2014, y 11/21/2014. 11 pgs. 
 Comunidad Campesina de Tomas y Sociedad Minera
Corona S.A., 02/12/2016, contrato de obra de fecha 02/25/16, Cartas N° 051/RRCC/SMCSA/2015, N° 012-RRCC-SMCSA-2015. 34 pgs. 

Comunidad Campesina de Tomas y Sociedad Minera Corona S.A., 03/01/2013, y actas de entrega de fecha: 05/10/13,
07/06/13, cartas multiples N° 005/RRCC/SMCSA/2013 y N° 003/RRCC/SMCSA/2013. 9 pgs. 
 Comunidad Campesina de
Tinco y Sociedad Minera Corona S.A., 04/26/2014, Convenio Complementario y actas de entrega de fecha: 08/29/2014, 06/06/2014 y contrato de locación con el Arq. Antonio Lopez Bendezú 07/02/2014. 16 pgs. 

Comunidad Campesina de San Lorenzo de Alis y Sociedad Minera Corona S.A., 04/16/2014, y actas de entrega de fecha:
08/10/14, 12/31/14, 12/15/14, 07/03/14, 11/21/14, 09/30/14, 05/27/14 y 06/07/14, adenda al convenio (04/28/14), carta multilple N° 005/RRCC/SMCSA/2013, acta de entrega de fecha 04/04/14. 28 pgs. 

Comunidad Campesina de San Lorenzo de Alis y Sociedad Minera Corona S.A., 09/19/2015, y actas de entrega de fecha
12/12/2015 (puente de concreto en Chacarune y puente metalico Ananhuichán) 
 Comunidad Campesina de San
Lorenzo de Alis y Sociedad Minera Corona S.A., 03/04/2016 y acta de entrega de fecha 04/18/2016 y contrato de servicio de fecha 04/13/15, carta N° 049/RRCC/SMCSA/2014 y carta N° 011-2015-RRCC-SMCSA. 13
pgs 
 Comunidad Campesina de San Lorenzo de Alis y Sociedad Minera Corona S.A., 04/21/2016 y contrato de servicio de
fecha 02/01/16, Propuesta técnico-económico del Proyecto 

  
  

					
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Fortalecimiento de las actividades economicoas de las familias de la organización comunal de San Lorenzo de Alis y acta de entrega de fecha de 06/14/16. 42 pgs. 

Comunidad Campesina de Huancachi y Sociedad Minera Corona S.A., 04/15/2016, acta de instalación de fecha
05/28/16 y acta de entrega de camioneta del 06/17/16. 9 pgs. 
 Geoservice Ambiental SAC, 2015, Informe
Técnico Sustentatorio para la Ampliacion de la Capacidad de la Planta de Beneficio Chumpe de 2500 TMD a 3000 TMD en la Unidad Acumulacion Yauricocha. 810 pp. 15 capitulos y 4 Anexos (las carpetas de los anexos 8, 9 10 y 11 estaban vacios).

 Giletti, B.J. and Day, H.W., 1968, Potassium-argon ages of igneous intrusive rocks of Peru: Nature, v. 220, pp. 570-572 
 Gustavson, (2015). NI 43-101
Technical Report on the Yauricocha Mine, Yauyos Province, Peru, Prepared for Sierra Metals Inc., by Gustavson Associates, Donald E. Hulse, Thomas C. Matthews, and Deepak Malhotra, Lakewood, Colorado, USA, May 11, 2015, 195pp. 

INGEMMET, 2012. Report from the Peru Institute of Geology, Mining, and Metallurgy (INGEMMET) dated June 20, 2012.

 Lacy, W.C., 1949, Oxidation Processes and Formation of Oxide Ore at Yauricocha: Soc. Geol. Peru, v. 25th
Anniversary Jubilar, pt. 2, fasc. 12, 15 pp. 
 MINEM, 2016, Approval of the amendment of the Closure Plan of the
Yauricocha Mining Unit, presented by Sociedad Minera Corona S.A., Directorial resolution N° 002-2016-MINEM-DGAAM, Report N°
021-2016-MINEM-DGAAM-DNAM-DGAM-PC. 13 pp. (original in Spanish) 

MINEM, 2015a, Conformity of the second Supporting Technical Report (ITS) to the PAMA for “Technological
improvement of the domestic waste water treatment system” Accumulacion Yauricocha Unit, presented by Sociedad Minera Corona S.A., Directorial resolution N° 486-2015-MINEM-DGAAM, Report N° 936-2015-MINEM-DGAAM-DNAM-DGAM-D. 19 pp. (original in Spanish) 

MINEM, 2015b, Conformity of the Supporting Technical Report (ITS, Informe Técnico Sustentatorio) to the PAMA for
“Expanding the capacity of the Processing Plant Chumpe of the Accumulated Yauricocha Unit from 2500 to 3000 TMD”, presented by SMC, Directorial resolution N° 242-2015-MINEM-DGAAM, Report
N° 503-2015-MINEM.DGAAM-DNAM-DGAM-D. 30 pp. (original in Spanish) 

MINEM, 2015c, Authorization to build, implement equipment and operate as to the Chumpe Process Plant Extension Project
2500 to 3000 TMD of the “Yauricocha Chumpe” benefit concession, Sociedad Minera Corona S.A , Resolution N° 0460-2015-MINEM-DGM-MV, Report N° 326-2015-MINEM-DGM-DTM-PB (original in Spanish) 

MINEM, 2014, Application for assessment of the modification of the Environmental Impact of Mining Unit Accumulation
Yauricocha related to the relocation of the air quality monitoring point 704, presented by Sociedad Minera Corona S.A., Report N°
325-2014-MEM-DGAAM/DGAM/DNAM/SIAM, 6 pp. (original in Spanish) 

  
  

					
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 MINEM, 2013, Approval of the Yauricocha Mining Unit Mine Closure Plan
Update, presented by SMC, Directorial resolution N° 495-2013-MINEM-AAM, Informe N° 1683-2013-MINEM-AAM-MPC-RPP-ADB-LRD. 54 pp (original in Spanish) 

MINEM, 2011, Elimination of points of the monitoring program, presented by Sociedad Minera Corona S.A., Report N° 1057-2011-MEM-AAM/WAL/AD/KVS, and Directorial resolution N° 332-2011-MEM/AAM. 7 pp.
(original in Spanish) 
 MINEM, 2011, Elimination of the efluent monitoring point 701, presented by Sociedad Minera
Corona S.A., Report N° 010-2011-MEM-AAM/WAL/AD, and Directorial resolution N° 005-2011-MEM/AAM. 5 pp. (original in Spanish) 
 MINEM, 2009,
Final Report of the Evaluation of the Mine Closure Plan at Feasibility Level of the Yauricocha Mining Unit presented by Sociedad Minera Corona S.A., Report N° 999-2009-MINEM-AAM-CAH-MES-ABR, and Directorial resolution N° 258-2009-MINEM-AAM, 24 pp. (original in Spanish) 
 MINEM, 2007,
Approval of the implementation of the PAMA “Yauricocha” Administrative Economic Unit by SMC, Directorial resolution N° 031-2007-MINEM-DGM, Report
N° 963-2006-MINEM-DGM-FMI-MA. 11 pp. (original in Spanish) 

MINEM, 2002, Approval of the modification of the implementation of the PAMA of the Yauricocha Production Unit by
CENTROMIN, Directorial Resolution N° 159-2002-EM-DGAA. 13 pp. (original in Spanish) 

PMJHR, 2013. Book of Mineral Certificates (Libro de Derechos Mineros Certificado de Vigencia). Prepared by Peru
Ministry of Justice and Human Rights (Ministerio de Justicia y Derechos Humanos del Perú), dated September 23, 2013. 

SERNANP, 2015, Contribition to the Supporting Technical Report “Technological improvement of the domestic waste
water treatment system” of the camps Chumpe and Esperanza of the Accumulacion Yauricocha Unit. Lettre N° 1360-2015-SERNANP-DGANP. 1 pp (original in Spanish) 

SERNANP, 2015, Technical Opinion Report N° 501-2015-SERNANP-DGANP. 2 pp.
(original in Spanish) 
 Sierra Metals, (2016). Multiple unpublished reports, tables, maps, and figures. Provided by
Sierra Metals and their subsidiary Sociedad Minera Corona S.A. 
 Sociedad Minera Corona S.A., 07/07/16, Plan Anual
de Relaciones Comunitarias – Periodo 2015, tabla resumen 
 Sociedad Minera Corona S.A., 07/07/16, Plan Anual de
Relaciones Comunitarias – Periodo 2014, tabla resumen 
 Sociedad Minera Corona S.A., 07/07/16, Plan Anual de
Relaciones Comunitarias – Periodo 2013, tabla resumen 
 Sociedad Minera Corona S.A., 01/15/16, Oficio al MINEM
Carta Fianza No. 10314717-003 del 17/01/2012 con vencimiento 17/01/2016 

  
  

					
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 Sociedad Minera Corona S.A., 2015, Reporte Público
Sostenibilidad Ambiental Periodo 2014. 16 pgs. 
 Thompson, D.S.R., 1960, The Yauricocha Sulphide Deposits, Central
Peru: Unpublished PhD dissertation, Imperial College, London, 154 pp. 
 Villaran, 2009. Land Use Contract between
San Lorenzo de Alis and Minera Corona, S.A. (Transaccion Extrajudicial y Contrato de Usufructo que Celebran de una Parte la Comunidad Campesian San Lorenzo de Alis y de la Otra Parte Minera Corona, S.A.) Prepared by Ricardo Ortiz de Zevallos
Villaran, Notary of Lima, dated November 16, 2007. 

  
  

					
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	28	Glossary 

 The Mineral Resources and Mineral Reserves have been classified
according to CIM (CIM, 2014). Accordingly, the Resources have been classified as Measured, Indicated or Inferred, the Reserves have been classified as Proven, and Probable based on the Measured and Indicated Resources as defined below. 

 

	28.1	Mineral Resources 

 A Mineral Resource is 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. 

An Inferred Mineral Resource is 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. 

An Indicated Mineral Resource is 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. 
 A Measured Mineral Resource
is 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.

  

	28.2	Mineral Reserves 

 A Mineral Reserve is 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. 

  
  

					
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 The reference point at which Mineral Reserves are defined, usually the point where the
ore is delivered to the processing plant, must be stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed
as to what is being reported. The public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or Feasibility Study. 

A Probable Mineral Reserve is 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. 

A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high
degree of confidence in the Modifying Factors. 
  

	28.3	Definition of Terms 

 The following general mining terms may be used in this
report. 
 Table 28-1: Definition of Terms 

 

			
	Term	 	Definition
	Assay	 	The chemical analysis of mineral samples to determine the metal content.
	Capital Expenditure	 	All other expenditures not classified as operating costs.
	Composite	 	Combining more than one sample result to give an average result over a larger distance.
	Concentrate	 	A metal-rich product resulting from a mineral enrichment process such as gravity concentration or flotation, in
which most of the desired mineral has been separated from the waste material in the ore.
	Crushing	 	Initial process of reducing ore particle size to render it more amenable for further processing.
	Cut-off Grade (CoG)	 	The grade of mineralized rock, which determines as to whether or not it is economic to recover its gold content
by further concentration.
	Dilution	 	Waste, which is unavoidably mined with ore.
	Dip	 	Angle of inclination of a geological feature/rock from the horizontal.
	Fault	 	The surface of a fracture along which movement has occurred.
	Footwall	 	The underlying side of an orebody or stope.
	Gangue	 	Non-valuable components of the ore.
	Grade	 	The measure of concentration of gold within mineralized rock.
	Hangingwall	 	The overlying side of an orebody or slope.
	Haulage	 	A horizontal underground excavation which is used to transport mined ore.
	Hydrocyclone	 	A process whereby material is graded according to size by exploiting centrifugal forces of particulate
materials.
	Igneous	 	Primary crystalline rock formed by the solidification of magma.
	Kriging	 	An interpolation method of assigning values from samples to blocks that minimizes the estimation
error.
	Level	 	Horizontal tunnel the primary purpose is the transportation of personnel and materials.
	Lithological	 	Geological description pertaining to different rock types.
	LoM Plans	 	Life-of-Mine plans.
	LRP	 	Long Range Plan.
	Material Properties	 	Mine properties.
	Milling	 	A general term used to describe the process in which the ore is crushed and ground and subjected to physical or
chemical treatment to extract the valuable metals to a concentrate or finished product.
	Mineral/Mining Lease	 	A lease area for which mineral rights are held.
	Mining Assets	 	The Material Properties and Significant Exploration Properties.
	Ongoing Capital	 	Capital estimates of a routine nature, which is necessary for sustaining operations.
	Ore Reserve	 	See Mineral Reserve.
	Pillar	 	Rock left behind to help support the excavations in an underground
mine.

  
  

					
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	Term	 	Definition
	RoM	 	Run-of-Mine.
	Sedimentary	 	Pertaining to rocks formed by the accumulation of sediments, formed by the erosion of other rocks.
	Shaft	 	An opening cut downwards from the surface for transporting personnel, equipment, supplies, ore and
waste.
	Sill	 	A thin, tabular, horizontal to sub-horizontal body of igneous rock
formed by the injection of magma into planar zones of weakness.
	Smelting	 	A high temperature pyrometallurgical operation conducted in a furnace, in which the valuable metal is collected
to a molten matte or doré phase and separated from the gangue components that accumulate in a less dense molten slag phase.
	Stope	 	Underground void created by mining.
	Stratigraphy	 	The study of stratified rocks in terms of time and space.
	Strike	 	Direction of line formed by the intersection of strata surfaces with the horizontal plane, always perpendicular
to the dip direction.
	Sulfide	 	A sulfur-bearing mineral.
	Tailings	 	Finely ground waste rock from which valuable minerals or metals have been extracted.
	Thickening	 	The process of concentrating solid particles in suspension.
	Total Expenditure	 	All expenditures including those of an operating and capital nature.
	Variogram	 	A statistical representation of the characteristics (usually grade).

  

	28.4	Abbreviations 

 The following abbreviations may be used in this report. 

Table 28-2: Abbreviations 

 

					
	Abbreviation	 	Unit or Term	 	 
	AA	 	atomic absorption	 	
	Ag	 	silver	 	
	Au	 	gold	 	
	°C	 	degrees Centigrade	 	
	CIL	 	carbon-in-leach	 	
	CoG	 	cut-off grade	 	
	cm	 	centimeter	 	
	cm2	 	square centimeter	 	
	°	 	degree (degrees)	 	
	dia.	 	diameter	 	
	FA	 	fire assay	 	
	g	 	gram	 	
	gal	 	gallon	 	
	g/L	 	gram per liter	 	
	gpm	 	gallons per minute	 	
	g/t	 	grams per tonne	 	
	ha	 	hectares	 	
	hp	 	horsepower	 	
	ID2	 	inverse-distance squared	 	
	ID3	 	inverse-distance cubed	 	
	kA	 	kiloamperes	 	
	kg	 	kilograms	 	
	km	 	kilometer	 	
	km2	 	square kilometer	 	
	koz	 	thousand troy ounce	 	
	kt	 	thousand tonnes	 	
	kt/d	 	thousand tonnes per day	 	
	kt/y	 	thousand tonnes per year	 	
	kV	 	kilovolt	 	
	kW	 	kilowatt	 	

  
  

					
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 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	 Page
 238

  
  

					
	Abbreviation	 	Unit or Term	 	 
	kWh	 	kilowatt-hour	 	
	kWh/t	 	kilowatt-hour per metric tonne	 	
	L	 	liter	 	
	L/sec	 	liters per second	 	
	L/sec/m	 	liters per second per meter	 	
	lb	 	pound	 	
	LoM	 	Life-of-Mine	 	
	m	 	meter	 	
	m2	 	square meter	 	
	m3	 	cubic meter	 	
	masl	 	meters above sea level	 	
	mg/L	 	milligrams/liter	 	
	mm	 	millimeter	 	
	mm2	 	square millimeter	 	
	mm3	 	cubic millimeter	 	
	Moz	 	million troy ounces	 	
	Mt	 	million tonnes	 	
	MW	 	million watts	 	
	m.y.	 	million years	 	
	NI 43-101	 	Canadian National Instrument 43-101	 	
	oz	 	troy ounce	 	
	%	 	percent	 	
	PAMA	 	 Environmental Adjustment and Management Plan
/
 Plan de Adecuación y Manejo Ambienta
	 	
	PLS	 	Pregnant Leach Solution	 	
	PMF	 	probable maximum flood	 	
	ppb	 	parts per billion	 	
	ppm	 	parts per million	 	
	QA/QC	 	Quality Assurance/Quality Control	 	
	RC	 	rotary circulation drilling	 	
	RoM	 	Run-of-Mine	 	
	RQD	 	Rock Quality Description	 	
	S/.	 	Peruvian Sole (currency)	 	
	SEC	 	U.S. Securities & Exchange Commission	 	
	sec	 	second	 	
	SG	 	specific gravity	 	
	t	 	tonne (metric ton) (2,204.6 pounds)	 	
	t/h	 	tonnes per hour	 	
	t/d	 	tonnes per day	 	
	t/y	 	tonnes per year	 	
	TSF	 	tailings storage facility	 	
	μm	 	micron or microns	 	
	V	 	volts	 	
	VFD	 	variable frequency drive	 	
	W	 	watt	 	
	y	 	year	 	

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	

  
  

  

Appendices 
  

 

  
  

					
	MH/MLM	  		  	September 2016

					
	 SRK Consulting (U.S.), Inc.
 NI 43-101 Technical Report on
Resources and Reserves– Yauricocha Mine
	  	

  
  

  
  

Appendix A: Certificates of Qualified Persons 
  

 
  

  
  

					
	MH/MLM	  		  	September 2016

			
	

	  	 SRK Consulting (U.S.), Inc.

Suite 600
 1125 Seventeenth
Street
 Denver, CO 80202
  

 
 T: 303.985.1333

F: 303.985.9947
  

 
 denver@srk.com

www.srk.com

  

 CERTIFICATE OF QUALIFIED PERSON 

I, Matthew Hastings, MSc Geology, MAusIMM (CP) do hereby certify that: 
  

	1.	I am Senior Consultant Resource Geologist of SRK Consulting (U.S.), Inc., 1125 Seventeenth Street, Suite 600, Denver, CO, USA, 80202. 

 

	2.	This certificate applies to the technical report titled “NI 43-101 Technical Report on Resources and Reserves, Yauricocha Mine, Yauyos Province, Peru” with an Effective
Date of June 30, 2016 (the “Technical Report”). 

  

	3.	I graduated with a degree in Geology from The University of Georgia in2005. In addition, I have obtained a M.Sc. Geology in 2008 from the University of Nevada, Reno as well as a Citation in Applied Geostatistics from
the University of Alberta in 2012. I am a Chartered Professional of the Australasian Institute of Mining and Metallurgy (AusIMM) as well as an Idaho registered professional geologist in the United States. I have worked as a Geologist for a total of
11 years since my graduation from university. My relevant experience includes exploration, development, and estimation of mineral resources in a variety of geological settings and deposit types. 

 

	4.	I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 

  

	5.	I visited the Yauricocha property on March 12, 2015 for 2 days. 

  

	6.	I am responsible for the Geology and Resource - Sections 4, 5.1-5.4, 6-12, 14, and portions of Sections 1, 25 and 26 summarized therefrom,
of this Technical Report. 

  

	7.	I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101. 

  

	8.	I have reviewed the project for internal corporate purposes previously, but have not participated or contributed to previous public technical reports or filings. 

 

	9.	I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with
that instrument and form. 

  

	10.	As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading. 

  

			
	Dated this 9th Day of September, 2016.	  	
	            --“Signed” --	  	
		
	                                     
                            	  	
	  
 Matthew Hastings, MSc Geology, MAusIMM (CP)
	  	

  
  
  

  

																	
		  		  		  	U.S. Offices:	    	Canadian Offices:	    	Group Offices:	 	
		  		  		  	Anchorage	    	907.677.3520	    	Saskatoon	    	306.955.4778	    	Africa	 	
		  		  		  	Clovis	    	559.452.0182	    	Sudbury	    	705.682.3270	    	Asia	 	
		  		  		  	Denver	    	303.985.1333	    	Toronto	    	416.601.1445	    	Australia	 	
		  		  		  	Elko	    	775.753.4151	    	Vancouver	    	604.681.4196	    	Europe	 	
		  		  		  	Fort Collins	    	970.407.8302	    	Yellowknife	    	867.873.8670	    	North America	 	
		  		  		  	Reno	    	775.828.6800	    		    		    	South America	 	
		  		  		  	Tucson	    	520.544.3688	    		    		    		 	

			
	

	  	 SRK Consulting (U.S.), Inc.

Suite 600
 1125 Seventeenth
Street
 Denver, CO 80202
  

 
 T: 303.985.1333

F: 303.985.9947
  

 
 denver@srk.com

www.srk.com

  

 CERTIFICATE OF QUALIFIED PERSON 

 

	1.	I, Jon Larson, BSc, MBA, MMSA-QP, do hereby certify that: 

  

	2.	I am Principal Consultant of SRK Consulting (U.S.), Inc., 1125 Seventeenth Street, Suite 600, Denver, CO, USA, 80202. 

  

	3.	This certificate applies to the technical report titled “NI 43-101 Technical Report on Resources and Reserves, Yauricocha Mine, Yauyos Province, Peru” with an Effective
Date of June 30,2016 (the “Technical Report”). 

  

	4.	I graduated with a degree in Mining Engineering from South Dakota School of Mines and Technology in 1999. In addition, I am a QP member of the Mining & Metallurgical Society of America. I have worked as a
Mining Engineer for a total of 17 years since my graduation from university. My relevant experience includes underground and open pit mine design, mine scheduling, and mine optimization. 

 

	5.	I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 

  

	6.	I visited the Yauricocha property on June 21, 2016 for 2 days. 

  

	7.	I am responsible for Reserves, Mining Methods, Market Studies and Contracts, Capital and Operating Costs, Economic Analysis, Adjacent Properties, and Other Relevant Data and Information – Sections 2, 3, 15, 16.1, 16.3-16.8, 19, 21-24, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

 

	8.	I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101. 

  

	9.	I have not had prior involvement with the property that is the subject of the Technical Report. 

  

	10.	I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with
that instrument and form. 

  

	11.	As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading. 

  

			
	Dated this 9th Day of September, 2016.	 	
	            --“Signed” --	 	
		
	                                     
                            	 	
	  
 Jon Larson, BSc, MBA, MMSA-QP
	 	

  
  
  

  

																	
		  		  		  	U.S. Offices:	    	Canadian Offices:	    	Group Offices:	 	
		  		  		  	Anchorage	    	907.677.3520	    	Saskatoon	    	306.955.4778	    	Africa	 	
		  		  		  	Clovis	    	559.452.0182	    	Sudbury	    	705.682.3270	    	Asia	 	
		  		  		  	Denver	    	303.985.1333	    	Toronto	    	416.601.1445	    	Australia	 	
		  		  		  	Elko	    	775.753.4151	    	Vancouver	    	604.681.4196	    	Europe	 	
		  		  		  	Fort Collins	    	970.407.8302	    	Yellowknife	    	867.873.8670	    	North America	 	
		  		  		  	Reno	    	775.828.6800	    		    		    	South America	 	
		  		  		  	Tucson	    	520.544.3688	    		    		    		 	

			
	

	  	 SRK Consulting (U.S.), Inc.

Suite 600
 1125 Seventeenth
Street
 Denver, CO 80202
  

 
 T: 303.985.1333

F: 303.985.9947
  

 
 denver@srk.com

www.srk.com

  

 CERTIFICATE OF QUALIFIED PERSON 

I, Jeff Osborn, BEng Mining, MMSAQP do hereby certify that: 
  

	1.	I am a Principal Consultant (Mining Engineer) of SRK Consulting (U.S.), Inc., 1125 Seventeenth, Suite 600, Denver, CO, USA, 80202. 

  

	2.	This certificate applies to the technical report titled “NI 43-101 Technical Report on Resources and Reserves, Yauricocha Mine, Yauyos Province, Peru ” with an Effective
Date of June 30, 2016 (the “Technical Report”). 

  

	3.	I graduated with a Bachelor of Science Mining Engineering degree from the Colorado School of Mines in 1986. I am a Qualified Professional (QP) Member of the Mining and Metallurgical Society of America. I have worked as
a Mining Engineer for a total of 29 years since my graduation from university. My relevant experience includes responsibilities in operations, maintenance, engineering, management, and construction activities. 

 

	4.	I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 

  

	5.	I have not visited the Yauricocha property. 

  

	6.	I am responsible for Project Infrastructure - Sections 5.5, 18, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

 

	7.	I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101. 

  

	8.	I have reviewed the project for internal corporate purposes previously, but have not participated or contributed to previous public technical reports or filings. 

 

	9.	I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with
that instrument and form. 

  

	10.	As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading. 

  

	
	Dated this 9th Day of September, 2016.
	            --“Signed” --
	
	                                      
                          
	  
 Jeff Osborn, BEng Mining, MMSAQP [01458QP]

	Principal Consultant (Mining Engineer)

  
  
  

  

																	
		  		  		  	U.S. Offices:	    	Canadian Offices:	    	Group Offices:	 	
		  		  		  	Anchorage	    	907.677.3520	    	Saskatoon	    	306.955.4778	    	Africa	 	
		  		  		  	Clovis	    	559.452.0182	    	Sudbury	    	705.682.3270	    	Asia	 	
		  		  		  	Denver	    	303.985.1333	    	Toronto	    	416.601.1445	    	Australia	 	
		  		  		  	Elko	    	775.753.4151	    	Vancouver	    	604.681.4196	    	Europe	 	
		  		  		  	Fort Collins	    	970.407.8302	    	Yellowknife	    	867.873.8670	    	North America	 	
		  		  		  	Reno	    	775.828.6800	    		    		    	South America	 	
		  		  		  	Tucson	    	520.544.3688	    		    		    		 	

			
	

	  	 SRK Consulting (U.S.), Inc.

Suite 600
 1125 Seventeenth
Street
 Denver, CO 80202
  

 
 T: 303.985.1333

F: 303.985.9947
  

 
 denver@srk.com

www.srk.com

  

 CERTIFICATE OF QUALIFIED PERSON 

I, Fernando Rodrigues, BS Mining, MBA, MMSAQP do hereby certify that: 
  

	1.	I am Practice Leader and Principal Consultant (Mining Engineer) of SRK Consulting (U.S.), Inc., 1125 Seventeenth Street, Suite 600, Denver, CO, USA, 80202. 

 

	2.	This certificate applies to the technical report titled “NI 43-101 Technical Report on Resources and Reserves, Yauricocha Mine, Yauyos Province, Peru ” with an Effective
Date of June 30,2016 (the “Technical Report”). 

  

	3.	I graduated with a Bachelors of Science degree in Mining Engineering from South Dakota School of Mines and Technology in 1999. I am a QP member of the MMSA. I have worked as a Mining Engineer for a total of 16 years
since my graduation from South Dakota School of Mines and Technology in 1999. My relevant experience includes mine design and implementation, short term mine design, dump design, haulage studies, blast design, ore control, grade estimation, database
management. 

  

	4.	I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 

  

	5.	I visited the Yauricocha property on March 12, 2015 for 2 days. 

  

	6.	I am responsible for Environmental Studies, Permitting and Social or Community Impact - Section 20, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

 

	7.	I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101.     

 

	8.	I have reviewed the project for internal corporate purposes previously, but have not participated or contributed to previous public technical reports or filings. 

 

	9.	I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with
that instrument and form. 

  

	10.	As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading. 

  

	
	Dated this 9th Day of September, 2016.
	            --“Signed” --
	
	                                      
                            
	  
 Fernando Rodrigues, BS Mining, MBA, MMSAQP [01405QP]

  
  
  

  

																	
		  		  		  	U.S. Offices:	    	Canadian Offices:	    	Group Offices:	 	
		  		  		  	Anchorage	    	907.677.3520	    	Saskatoon	    	306.955.4778	    	Africa	 	
		  		  		  	Clovis	    	559.452.0182	    	Sudbury	    	705.682.3270	    	Asia	 	
		  		  		  	Denver	    	303.985.1333	    	Toronto	    	416.601.1445	    	Australia	 	
		  		  		  	Elko	    	775.753.4151	    	Vancouver	    	604.681.4196	    	Europe	 	
		  		  		  	Fort Collins	    	970.407.8302	    	Yellowknife	    	867.873.8670	    	North America	 	
		  		  		  	Reno	    	775.828.6800	    		    		    	South America	 	
		  		  		  	Tucson	    	520.544.3688	    		    		    		 	

			
	

	  	 SRK Consulting (U.S.), Inc.

Suite 600
 1125 Seventeenth
Street
 Denver, CO 80202
  

 
 T: 303.985.1333

F: 303.985.9947
  

 
 denver@srk.com

www.srk.com

  

 CERTIFICATE OF QUALIFIED PERSON 

I, Daniel H. Sepulveda, B.Sc, SME-RM, do hereby certify that: 

 

	1.	I am Associate Consultant (Metallurgy) of SRK Consulting (U.S.), Inc., 1125 Seventeenth Street, Suite 600, Denver, CO, USA, 80202. 

  

	2.	This certificate applies to the technical report titled “NI 43-101 Technical Report on Resources and Reserves, Yauricocha Mine, Yauyos Province, Peru” with an Effective
Date of June 30, 2016 (the “Technical Report”). 

  

	3.	I graduated with a degree in Extractive Metallurgy from University of Chile in 1992. I am a registered member of the Society of Mining, Metallurgy, and Exploration, Inc. (SME), member No 4206787RM. I have worked as a
Metallurgist for a total of 24 years since my graduation from university. My relevant experience includes: employee of several mining companies, engineering & construction companies, and as a consulting engineer. 

 

	4.	I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 

  

	5.	I visited the Yauricocha property on March 12, 2015 for 2 days. 

  

	6.	I am responsible for Mineral Processing and Metallurgical Testing and Recovery Methods - Sections 13, 17, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

 

	7.	I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101. 

  

	8.	I have reviewed the project for internal corporate purposes previously, but have not participated or contributed to previous public technical reports or filings. 

 

	9.	I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with
that instrument and form. 

  

	10.	As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading. 

  

							
	Dated this 09 Day of September 2016.	 		  		  	
	

	 		  	

	  	
	  
  

Daniel H. Sepulveda, B.Sc, SME-RM
	 		  	  
		 		  	  
		 		  	  
		 		  	  
		 		  	  

  
  

  

																	
		  		  		  	U.S. Offices:	    	Canadian Offices:	    	Group Offices:	 	
		  		  		  	Anchorage	    	907.677.3520	    	Saskatoon	    	306.955.4778	    	Africa	 	
		  		  		  	Clovis	    	559.452.0182	    	Sudbury	    	705.682.3270	    	Asia	 	
		  		  		  	Denver	    	303.985.1333	    	Toronto	    	416.601.1445	    	Australia	 	
		  		  		  	Elko	    	775.753.4151	    	Vancouver	    	604.681.4196	    	Europe	 	
		  		  		  	Fort Collins	    	970.407.8302	    	Yellowknife	    	867.873.8670	    	North America	 	
		  		  		  	Reno	    	775.828.6800	    		    		    	South America	 	
		  		  		  	Tucson	    	520.544.3688	    		    		    		 	

			
	

	  	 SRK Consulting (U.S.), Inc.

Suite 600
 1125 Seventeenth
Street
 Denver, CO 80202
  

 
 T: 303.985.1333

F: 303.985.9947
  

 
 denver@srk.com

www.srk.com

  

 CERTIFICATE OF QUALIFIED PERSON 

I, John Tinucci, Ph.D., P.E., do hereby certify that: 
  

	1.	I am a Principal Geotechnical Mining Engineer of SRK Consulting (U.S.), Inc., 1125 Seventeenth Street, Suite 600, Denver, CO, USA, 80202. 

 

	2.	This certificate applies to the technical report titled “ NI 43-101 Technical Report on Resources and Reserves, Yauricocha Mine, Yauyos Province, Peru” with an Effective
Date of June 30, 2016 (the “Technical Report”). 

  

	3.	I graduated with a degree in B.S. in Civil Engineering from Colorado State University, in 1980. In addition, I have obtained a M.S. in Geotechnical Engineering from University of California, Berkeley, in 1983 and I have
obtained a Ph.D. in Geotechnical Engineering, Rock Mechanics from the University of California, Berkeley in 1985. I am a member of the American Rock Mechanics Association, of the International Society of Rock Mechanics, and a Registered Member of
the Society for Mining, Metallurgy & Exploration. I have worked as a Mining Geotechnical Engineer for a total of 31 years since my graduation from university. My relevant experience includes 34 years of professional experience. I have 15
years managerial experience leading project teams, managing P&L operations for 120 staff, and directed own company of 8 staff for 8 years. I have technical experience in mine design, prefeasibility studies, feasibility studies, geomechanical
assessments, rock mass characterization, project management, numerical analyses, underground mine stability, tunneling, ground support, slope stabilization, excavation remediation, induced seismicity and dynamic ground motion. My industry
commodities experience includes salt, potash, coal, platinum/palladium, iron, molybdenum, gold, silver, zinc, diamonds, and copper. My mine design experience includes open pit, room and pillar, (single and multi-level), conventional drill-and-blast and mechanized cutting, longwall, steep narrow vein, cut and fill, block caving, sublevel caving and cut and fill longhole stoping and paste backfilling.

  

	4.	I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 

  

	5.	I have visited the Yauricocha property. 

  

	6.	I am responsible for Mining Methods - Section 16.2, and portions of Sections 1, 25 and 26 summarized therefrom, of this Technical Report. 

 

	7.	I am independent of the issuer applying all of the tests in section 1.5 of NI 43-101. 

  

	8.	I have had prior involvement with the property that is the subject of the Technical Report. 

  

	9.	I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with
that instrument and form. 

  

	10.	As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required
to be disclosed to make the Technical Report not misleading. 

  

			
	Dated this 9th Day of September, 2016.	  	
	            --“Signed” --	  	
		
	                                     
                    	  	
	  
 John Tinucci, Ph.D., P.E.
	  	

  
  

  

																	
		  		  		  	U.S. Offices:	    	Canadian Offices:	    	Group Offices:	 	
		  		  		  	Anchorage	    	907.677.3520	    	Saskatoon	    	306.955.4778	    	Africa	 	
		  		  		  	Clovis	    	559.452.0182	    	Sudbury	    	705.682.3270	    	Asia	 	
		  		  		  	Denver	    	303.985.1333	    	Toronto	    	416.601.1445	    	Australia	 	
		  		  		  	Elko	    	775.753.4151	    	Vancouver	    	604.681.4196	    	Europe	 	
		  		  		  	Fort Collins	    	970.407.8302	    	Yellowknife	    	867.873.8670	    	North America	 	
		  		  		  	Reno	    	775.828.6800	    		    		    	South America	 	
		  		  		  	Tucson	    	520.544.3688	    		    		    		 	

	
	SRK Consulting (U.S.), Inc.
	NI 43-101 Technical Report on Resources and Reserves– Yauricocha Mine

  
  

 
 Appendix B: SRK Capping Analyses 

 
  
  

 

					
	MH/MLM	  		  	September 2016

			
	SRK Consulting (U.S), Inc.	  	
	NI 43-101 Technical Report on Yauricocha Mine, Peru	  	Appendices

  
  

 
  
 Appendix
B: SRK Capping Analyses for Mina Central, Esperanza, Elissa, and the Grouped Cuerpos Pequenos Areas 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
	  	Appendices

  

 
  

 A - Esperanza 
  

 
 Figure A1: Esperanza Log Probability Plot – Ag 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
	  	Appendices

  

 
  

 

 
 Figure A2: Esperanza Log Probability Plot – Au 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
	  	Appendices

  

 
  

 

 
 Figure A3: Esperanza Log Probability Plot – Cu 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
	  	Appendices

  

 
  

 

 
 Figure A4: Esperanza Log Probability Plot – Pb 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
	  	Appendices

  

 
  

 

 
 Figure A5: Esperanza Log Probability Plot – Zn 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
	  	Appendices

  

 
  

 Table A1: Esperanza Capping Analysis – Ag 

 

																																																							
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Weight	 	  	Min	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 		 	  			 	  			 	  			 	  			 	  			 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	1093.27	 	  	 	66.68	 	  	 	111669	 	  	 	9997	 	  	 	1.5	 
	 	1000	 	  	 	2	 	  	 	99.90%	 	  	 	0.10%	 	  	 	0.09%	 	  	 	0.56%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	1000	 	  	 	66.613	 	  	 	111557	 	  	 	9867	 	  	 	1.49	 
	 	750	 	  	 	4	 	  	 	99.70%	 	  	 	0.20%	 	  	 	0.75%	 	  	 	3.70%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	750	 	  	 	66.141	 	  	 	110766	 	  	 	9121	 	  	 	1.44	 
	 	500	 	  	 	17	 	  	 	99.10%	 	  	 	0.90%	 	  	 	2.70%	 	  	 	9.60%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	500	 	  	 	64.848	 	  	 	108601	 	  	 	7728	 	  	 	1.36	 
	 	400	 	  	 	29	 	  	 	98.30%	 	  	 	1.60%	 	  	 	4.50%	 	  	 	14%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	400	 	  	 	63.554	 	  	 	106434	 	  	 	6742	 	  	 	1.29	 
	 	345	 	  	 	35	 	  	 	98%	 	  	 	1.90%	 	  	 	6%	 	  	 	17%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	345	 	  	 	62.532	 	  	 	104722	 	  	 	6110	 	  	 	1.25	 
	 	300	 	  	 	66	 	  	 	96.30%	 	  	 	3.60%	 	  	 	7.90%	 	  	 	20%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	300	 	  	 	61.27	 	  	 	102609	 	  	 	5458	 	  	 	1.21	 
	 	250	 	  	 	85	 	  	 	95.30%	 	  	 	4.60%	 	  	 	11%	 	  	 	24%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	250	 	  	 	59.115	 	  	 	99000	 	  	 	4537	 	  	 	1.14	 
	 	200	 	  	 	126	 	  	 	93%	 	  	 	6.90%	 	  	 	15%	 	  	 	29%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	200	 	  	 	56.225	 	  	 	94160	 	  	 	3578	 	  	 	1.06	 
	 	150	 	  	 	213	 	  	 	91%	 	  	 	11.60%	 	  	 	22%	 	  	 	36%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	150	 	  	 	51.596	 	  	 	86408	 	  	 	2477	 	  	 	0.96	 
	 	100	 	  	 	361	 	  	 	80%	 	  	 	19.70%	 	  	 	34%	 	  	 	45%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	100	 	  	 	43.915	 	  	 	73544	 	  	 	1323	 	  	 	0.83	 
	 	ag > 345	 	  			 	  			 	  			 	  			 	  			 	  	 	35	 	  	 	33.2	 	  	 	353.82	 	  	 	1093.27	 	  	 	554.248	 	  	 	18401	 	  	 	35907	 	  	 	0.34	 
	 	ag <= 345	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1796	 	  	 	1642	 	  	 	0.001	 	  	 	343.67	 	  	 	56.819	 	  	 	93268	 	  	 	4586	 	  	 	1.19	 

 Table A2: Esperanza Capping Analysis – Au 
  

																																																							
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Weight	 	  	Min	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 		 	  			 	  			 	  			 	  			 	  			 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	9.2	 	  	 	0.514	 	  	 	861.2	 	  	 	0.44	 	  	 	1.29	 
	 	5	 	  	 	5	 	  	 	99.80%	 	  	 	0.30%	 	  	 	0.69%	 	  	 	4.80%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	5	 	  	 	0.51	 	  	 	854.7	 	  	 	0.39	 	  	 	1.23	 
	 	4	 	  	 	9	 	  	 	99.40%	 	  	 	0.50%	 	  	 	1.40%	 	  	 	8.20%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	4	 	  	 	0.506	 	  	 	847.5	 	  	 	0.36	 	  	 	1.19	 
	 	3.5	 	  	 	16	 	  	 	99.10%	 	  	 	0.90%	 	  	 	2.10%	 	  	 	11%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	3.5	 	  	 	0.502	 	  	 	841	 	  	 	0.33	 	  	 	1.15	 
	 	3	 	  	 	19	 	  	 	98.80%	 	  	 	1%	 	  	 	3%	 	  	 	14%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	3	 	  	 	0.497	 	  	 	832.1	 	  	 	0.31	 	  	 	1.11	 
	 	2.5	 	  	 	29	 	  	 	98.30%	 	  	 	1.60%	 	  	 	4.40%	 	  	 	17%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	2.5	 	  	 	0.489	 	  	 	819.6	 	  	 	0.27	 	  	 	1.07	 
	 	2.25	 	  	 	43	 	  	 	97.60%	 	  	 	2.30%	 	  	 	5.30%	 	  	 	20%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	2.25	 	  	 	0.484	 	  	 	811.2	 	  	 	0.25	 	  	 	1.04	 
	 	2	 	  	 	59	 	  	 	96.70%	 	  	 	3.20%	 	  	 	6.70%	 	  	 	22%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	2	 	  	 	0.477	 	  	 	799.4	 	  	 	0.23	 	  	 	1.01	 
	 	1.75	 	  	 	77	 	  	 	95.80%	 	  	 	4.20%	 	  	 	8.50%	 	  	 	25%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	1.75	 	  	 	0.468	 	  	 	784.2	 	  	 	0.2	 	  	 	0.97	 
	 	1.5	 	  	 	107	 	  	 	94.20%	 	  	 	5.80%	 	  	 	11%	 	  	 	29%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	1.5	 	  	 	0.456	 	  	 	762.9	 	  	 	0.18	 	  	 	0.92	 
	 	1.25	 	  	 	152	 	  	 	87.80%	 	  	 	8.30%	 	  	 	14%	 	  	 	33%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	1.25	 	  	 	0.438	 	  	 	733.5	 	  	 	0.14	 	  	 	0.86	 
	 	au > 2.5	 	  			 	  			 	  			 	  			 	  			 	  	 	29	 	  	 	28.3	 	  	 	2.58	 	  	 	9.2	 	  	 	3.971	 	  	 	112.4	 	  	 	2.01	 	  	 	0.36	 
	 	au <= 2.5	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1802	 	  	 	1646	 	  	 	0.001	 	  	 	2.5	 	  	 	0.455	 	  	 	748.8	 	  	 	0.21	 	  	 	1	 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table A3: Esperanza Capping Analysis – Cu 

 

																																																							
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Weight	 	  	Min	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	27.05	 	  	 	1.656	 	  	 	2774	 	  	 	8.56	 	  	 	1.77	 
	 	25	 	  	 	1	 	  	 	100%	 	  	 	0.10%	 	  	 	0.07%	 	  	 	0.25%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	25	 	  	 	1.655	 	  	 	2772	 	  	 	8.51	 	  	 	1.76	 
	 	20	 	  	 	5	 	  	 	100%	 	  	 	0.30%	 	  	 	0.48%	 	  	 	1.50%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	20	 	  	 	1.648	 	  	 	2760	 	  	 	8.23	 	  	 	1.74	 
	 	14.6	 	  	 	10	 	  	 	99.40%	 	  	 	0.50%	 	  	 	1.80%	 	  	 	4.50%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	14.6	 	  	 	1.626	 	  	 	2722	 	  	 	7.53	 	  	 	1.69	 
	 	13.6	 	  	 	19	 	  	 	98.90%	 	  	 	1.00%	 	  	 	2.30%	 	  	 	5.40%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	13.6	 	  	 	1.616	 	  	 	2706	 	  	 	7.29	 	  	 	1.67	 
	 	12	 	  	 	28	 	  	 	98.40%	 	  	 	2%	 	  	 	3.50%	 	  	 	7.30%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	12	 	  	 	1.595	 	  	 	2671	 	  	 	6.82	 	  	 	1.64	 
	 	10.7	 	  	 	44	 	  	 	97.50%	 	  	 	2.40%	 	  	 	5.20%	 	  	 	9.50%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	10.7	 	  	 	1.567	 	  	 	2624	 	  	 	6.27	 	  	 	1.6	 
	 	9	 	  	 	72	 	  	 	96.00%	 	  	 	3.90%	 	  	 	8.40%	 	  	 	13.00%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	9	 	  	 	1.511	 	  	 	2531	 	  	 	5.36	 	  	 	1.53	 
	 	8	 	  	 	89	 	  	 	95%	 	  	 	4.90%	 	  	 	11.00%	 	  	 	16%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	8	 	  	 	1.468	 	  	 	2458	 	  	 	4.75	 	  	 	1.49	 
	 	7	 	  	 	106	 	  	 	94.00%	 	  	 	5.80%	 	  	 	14%	 	  	 	19%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	7	 	  	 	1.414	 	  	 	2367	 	  	 	4.1	 	  	 	1.43	 
	 	6	 	  	 	140	 	  	 	92%	 	  	 	7.60%	 	  	 	18%	 	  	 	22%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	6	 	  	 	1.347	 	  	 	2256	 	  	 	3.42	 	  	 	1.37	 
	 	cu > 12	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	28	 	  	 	27.4	 	  	 	12.03	 	  	 	27.05	 	  	 	15.757	 	  	 	431.7	 	  	 	15.11	 	  	 	0.25	 
	 	cu <= 12	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1803	 	  	 	1647	 	  	 	0.001	 	  	 	11.95	 	  	 	1.422	 	  	 	2342	 	  	 	5.1	 	  	 	1.59	 

 Table A4: Esperanza Capping Analysis – Pb 
  

																																																							
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Weight	 	  	Min	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	37.59	 	  	 	1.451	 	  	 	2430	 	  	 	9.26	 	  	 	2.1	 
	 	25	 	  	 	3	 	  	 	99.90%	 	  	 	0.20%	 	  	 	0.59%	 	  	 	1.60%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	25	 	  	 	1.444	 	  	 	2419	 	  	 	8.88	 	  	 	2.06	 
	 	20	 	  	 	8	 	  	 	99.60%	 	  	 	0.40%	 	  	 	1.50%	 	  	 	3.70%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	20	 	  	 	1.432	 	  	 	2398	 	  	 	8.36	 	  	 	2.02	 
	 	17.5	 	  	 	11	 	  	 	99.50%	 	  	 	0.60%	 	  	 	2.30%	 	  	 	5.20%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	17.5	 	  	 	1.421	 	  	 	2379	 	  	 	7.97	 	  	 	1.99	 
	 	15	 	  	 	18	 	  	 	99%	 	  	 	1%	 	  	 	3.50%	 	  	 	7.30%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	15	 	  	 	1.403	 	  	 	2349	 	  	 	7.44	 	  	 	1.94	 
	 	12	 	  	 	36	 	  	 	98.20%	 	  	 	2%	 	  	 	6.20%	 	  	 	11%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	12	 	  	 	1.364	 	  	 	2285	 	  	 	6.53	 	  	 	1.87	 
	 	11	 	  	 	43	 	  	 	97.20%	 	  	 	2.30%	 	  	 	7.60%	 	  	 	12%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	11	 	  	 	1.344	 	  	 	2251	 	  	 	6.12	 	  	 	1.84	 
	 	9	 	  	 	71	 	  	 	96.40%	 	  	 	3.90%	 	  	 	12%	 	  	 	16%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	9	 	  	 	1.287	 	  	 	2155	 	  	 	5.13	 	  	 	1.76	 
	 	8	 	  	 	87	 	  	 	95.50%	 	  	 	4.80%	 	  	 	15%	 	  	 	18%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	8	 	  	 	1.247	 	  	 	2088	 	  	 	4.56	 	  	 	1.71	 
	 	7	 	  	 	107	 	  	 	94.40%	 	  	 	5.80%	 	  	 	18%	 	  	 	21%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	7	 	  	 	1.196	 	  	 	2003	 	  	 	3.92	 	  	 	1.66	 
	 	6	 	  	 	132	 	  	 	93.10%	 	  	 	7.20%	 	  	 	22%	 	  	 	24%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	6	 	  	 	1.133	 	  	 	1897	 	  	 	3.25	 	  	 	1.59	 
	 	pb > 11	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	43	 	  	 	36.05	 	  	 	11.18	 	  	 	37.59	 	  	 	15.965	 	  	 	575.6	 	  	 	26.55	 	  	 	0.32	 
	 	pb <= 11	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1788	 	  	 	1639	 	  	 	0.001	 	  	 	10.81	 	  	 	1.132	 	  	 	1855	 	  	 	4.16	 	  	 	1.8	 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table A5: Esperanza Capping Analysis – Zn 

 

																																																							
	Cap 	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Weight	 	  	Min	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	37.08	 	  	 	3.378	 	  	 	5657	 	  	 	34.59	 	  	 	1.74	 
	 	28.50	 	  	 	9	 	  	 	99.60%	 	  	 	0.50%	 	  	 	0.44%	 	  	 	0.83%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	28.5	 	  	 	3.362	 	  	 	5630	 	  	 	33.7	 	  	 	1.73	 
	 	26.48	 	  	 	24	 	  	 	98.80%	 	  	 	1.30%	 	  	 	0.95%	 	  	 	1.50%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	26.475	 	  	 	3.346	 	  	 	5603	 	  	 	32.91	 	  	 	1.71	 
	 	25.00	 	  	 	32	 	  	 	98.40%	 	  	 	1.70%	 	  	 	1.60%	 	  	 	2.30%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	25	 	  	 	3.325	 	  	 	5568	 	  	 	31.98	 	  	 	1.7	 
	 	22.00	 	  	 	47	 	  	 	97.50%	 	  	 	2.60%	 	  	 	3.40%	 	  	 	4.40%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	22	 	  	 	3.263	 	  	 	5465	 	  	 	29.49	 	  	 	1.66	 
	 	20.00	 	  	 	69	 	  	 	96.40%	 	  	 	3.80%	 	  	 	5.20%	 	  	 	6.20%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	20	 	  	 	3.202	 	  	 	5362	 	  	 	27.32	 	  	 	1.63	 
	 	18.02	 	  	 	89	 	  	 	95.60%	 	  	 	4.90%	 	  	 	7.60%	 	  	 	8.40%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	18.022	 	  	 	3.122	 	  	 	5228	 	  	 	24.79	 	  	 	1.59	 
	 	15.60	 	  	 	122	 	  	 	93.90%	 	  	 	6.70%	 	  	 	12%	 	  	 	11%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	15.602	 	  	 	2.995	 	  	 	5015	 	  	 	21.31	 	  	 	1.54	 
	 	14.06	 	  	 	144	 	  	 	92.80%	 	  	 	7.90%	 	  	 	15%	 	  	 	14%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	14.058	 	  	 	2.893	 	  	 	4844	 	  	 	18.89	 	  	 	1.5	 
	 	13.07	 	  	 	159	 	  	 	91.90%	 	  	 	8.70%	 	  	 	17%	 	  	 	15%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	13.07	 	  	 	2.817	 	  	 	4718	 	  	 	17.27	 	  	 	1.48	 
	 	12.21	 	  	 	176	 	  	 	90.90%	 	  	 	9.60%	 	  	 	19%	 	  	 	17%	 	  	 	1831	 	  	 	1675	 	  	 	0.001	 	  	 	12.21	 	  	 	2.744	 	  	 	4595	 	  	 	15.82	 	  	 	1.45	 
	 	zn > 25	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	32	 	  	 	28.45	 	  	 	25.04	 	  	 	37.08	 	  	 	28.121	 	  	 	800	 	  	 	8.89	 	  	 	0.11	 
	 	zn <= 25	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1799	 	  	 	1646	 	  	 	0.001	 	  	 	24.36	 	  	 	2.95	 	  	 	4857	 	  	 	24.27	 	  	 	1.67	 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 B - Mina Central 
 

 
 Figure B1: Mina Central Log Probability Plot – Ag 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure B2: Mina Central Log Probability Plot – Au 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure B3: Mina Central Log Probability Plot – Cu 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure B4: Mina Central Log Probability Plot – Pb 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure B5: Mina Central Log Probability Plot – Zn 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table B1: Mina Central Capping Analysis – Ag 

 

																																															
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 			  			 	  				  			 	  				  			 	  	 	9489	 	  	 	2128.76	 	  	 	57.786	 	  	 	586390	 	  	 	6296	 	  	 	1.37	 
	 	1000.00	 	  	 	6	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.3%	 	  	 	3.3%	 	  	 	9489	 	  	 	1000	 	  	 	57.623	 	  	 	584736	 	  	 	5853	 	  	 	1.33	 
	 	900.00	 	  	 	9	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.4%	 	  	 	4.3%	 	  	 	9489	 	  	 	900	 	  	 	57.549	 	  	 	583988	 	  	 	5721	 	  	 	1.31	 
	 	800.00	 	  	 	16	 	  	 	99.9%	 	  	 	0.2%	 	  	 	0.6%	 	  	 	5.6%	 	  	 	9489	 	  	 	800	 	  	 	57.436	 	  	 	582840	 	  	 	5543	 	  	 	1.30	 
	 	725.00	 	  	 	19	 	  	 	99.8%	 	  	 	0.2%	 	  	 	0.9%	 	  	 	6.9%	 	  	 	9489	 	  	 	725	 	  	 	57.312	 	  	 	581584	 	  	 	5369	 	  	 	1.28	 
	 	650.00	 	  	 	24	 	  	 	99.8%	 	  	 	0.3%	 	  	 	1.1%	 	  	 	8.3%	 	  	 	9489	 	  	 	650	 	  	 	57.159	 	  	 	580028	 	  	 	5176	 	  	 	1.26	 
	 	600.00	 	  	 	29	 	  	 	99.7%	 	  	 	0.3%	 	  	 	1.4%	 	  	 	9.4%	 	  	 	9489	 	  	 	600	 	  	 	57.03	 	  	 	578723	 	  	 	5030	 	  	 	1.24	 
	 	550.00	 	  	 	39	 	  	 	99.6%	 	  	 	0.4%	 	  	 	1.6%	 	  	 	11.0%	 	  	 	9489	 	  	 	550	 	  	 	56.865	 	  	 	577051	 	  	 	4860	 	  	 	1.23	 
	 	500.00	 	  	 	44	 	  	 	99.5%	 	  	 	0.5%	 	  	 	2.0%	 	  	 	12.0%	 	  	 	9489	 	  	 	500	 	  	 	56.658	 	  	 	574947	 	  	 	4666	 	  	 	1.21	 
	 	450.00	 	  	 	58	 	  	 	99.4%	 	  	 	0.6%	 	  	 	2.4%	 	  	 	14.0%	 	  	 	9489	 	  	 	450	 	  	 	56.414	 	  	 	572467	 	  	 	4462	 	  	 	1.18	 
	 	400.00	 	  	 	80	 	  	 	99.2%	 	  	 	0.8%	 	  	 	3.0%	 	  	 	16.0%	 	  	 	9489	 	  	 	400	 	  	 	56.077	 	  	 	569050	 	  	 	4214	 	  	 	1.16	 
	 	ag > 800		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	16	 	  	 	2128.76	 	  	 	1032.044	 	  	 	15790	 	  	 	107145	 	  	 	0.32	 
	 	ag <= 800	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	9473	 	  	 	782.63	 	  	 	56.314	 	  	 	570600	 	  	 	4718	 	  	 	1.22	 

 Table B2: Mina Central Capping Analysis – Au 

 

																																															
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 		 	  				  			 	  				  			 	  			 	  	 	9489	 	  	 	92	 	  	 	0.53	 	  	 	5379	 	  	 	1.62	 	  	 	2.4	 
	 	10.00	 	  	 	8	 	  	 	99.9%	 	  	 	0.1%	 	  	 	1.9%	 	  	 	32.0%	 	  	 	9489	 	  	 	10	 	  	 	0.519	 	  	 	5271	 	  	 	0.72	 	  	 	1.63	 
	 	8.00	 	  	 	15	 	  	 	99.8%	 	  	 	0.2%	 	  	 	2.3%	 	  	 	33.0%	 	  	 	9489	 	  	 	8	 	  	 	0.517	 	  	 	5249	 	  	 	0.68	 	  	 	1.6	 
	 	7.00	 	  	 	22	 	  	 	99.8%	 	  	 	0.2%	 	  	 	2.7%	 	  	 	34.0%	 	  	 	9489	 	  	 	7	 	  	 	0.515	 	  	 	5229	 	  	 	0.66	 	  	 	1.57	 
	 	6.00	 	  	 	36	 	  	 	99.6%	 	  	 	0.4%	 	  	 	3.2%	 	  	 	36.0%	 	  	 	9489	 	  	 	6	 	  	 	0.512	 	  	 	5200	 	  	 	0.62	 	  	 	1.54	 
	 	5.00	 	  	 	62	 	  	 	99.4%	 	  	 	0.7%	 	  	 	4.1%	 	  	 	38.0%	 	  	 	9489	 	  	 	5	 	  	 	0.508	 	  	 	5153	 	  	 	0.58	 	  	 	1.5	 
	 	4.00	 	  	 	95	 	  	 	99.1%	 	  	 	1.0%	 	  	 	5.5%	 	  	 	40.0%	 	  	 	9489	 	  	 	4	 	  	 	0.501	 	  	 	5080	 	  	 	0.52	 	  	 	1.44	 
	 	3.00	 	  	 	191	 	  	 	98.1%	 	  	 	2.0%	 	  	 	8.1%	 	  	 	43.0%	 	  	 	9489	 	  	 	3	 	  	 	0.487	 	  	 	4944	 	  	 	0.44	 	  	 	1.36	 
	 	2.50	 	  	 	280	 	  	 	97.2%	 	  	 	3.0%	 	  	 	10.0%	 	  	 	45.0%	 	  	 	9489	 	  	 	2.5	 	  	 	0.476	 	  	 	4829	 	  	 	0.39	 	  	 	1.31	 
	 	2.00	 	  	 	437	 	  	 	95.6%	 	  	 	4.6%	 	  	 	14.0%	 	  	 	48.0%	 	  	 	9489	 	  	 	2	 	  	 	0.458	 	  	 	4649	 	  	 	0.33	 	  	 	1.25	 
	 	1.50	 	  	 	795	 	  	 	90.0%	 	  	 	8.4%	 	  	 	19.0%	 	  	 	51.0%	 	  	 	9489	 	  	 	1.5	 	  	 	0.428	 	  	 	4345	 	  	 	0.25	 	  	 	1.17	 
	 	au > 5	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	62	 	  	 	92	 	  	 	8.66	 	  	 	536.1	 	  	 	126.1	 	  	 	1.3	 
	 	au <= 5	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	9427	 	  	 	4.8	 	  	 	0.48	 	  	 	4843	 	  	 	0.46	 	  	 	1.41	 

					
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 NI 43-101 Technical Report on
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	  	 Appendices
  

 
  

 Table B3: Mina Central Capping Analysis – Cu 

 

																																															
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 		 	  				  			 	  				  				  			 	  	 	9489	 	  	 	23.47	 	  	 	0.946	 	  	 	9597	 	  	 	3.52	 	  	 	1.98	 
	 	20.00	 	  	 	9	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.2%	 	  	 	0.7%	 	  	 	9489	 	  	 	20	 	  	 	0.944	 	  	 	9582	 	  	 	3.46	 	  	 	1.97	 
	 	18.00	 	  	 	15	 	  	 	99.8%	 	  	 	0.2%	 	  	 	0.4%	 	  	 	1.7%	 	  	 	9489	 	  	 	18	 	  	 	0.942	 	  	 	9558	 	  	 	3.37	 	  	 	1.95	 
	 	15.00	 	  	 	29	 	  	 	99.7%	 	  	 	0.3%	 	  	 	1.1%	 	  	 	4.0%	 	  	 	9489	 	  	 	15	 	  	 	0.935	 	  	 	9492	 	  	 	3.17	 	  	 	1.9	 
	 	12.00	 	  	 	63	 	  	 	99.4%	 	  	 	0.7%	 	  	 	2.5%	 	  	 	7.8%	 	  	 	9489	 	  	 	12	 	  	 	0.922	 	  	 	9356	 	  	 	2.84	 	  	 	1.83	 
	 	10.00	 	  	 	96	 	  	 	99.1%	 	  	 	1.0%	 	  	 	4.1%	 	  	 	11.0%	 	  	 	9489	 	  	 	10	 	  	 	0.907	 	  	 	9204	 	  	 	2.54	 	  	 	1.76	 
	 	9.00	 	  	 	117	 	  	 	98.8%	 	  	 	1.2%	 	  	 	5.2%	 	  	 	14.0%	 	  	 	9489	 	  	 	9	 	  	 	0.897	 	  	 	9098	 	  	 	2.36	 	  	 	1.71	 
	 	8.00	 	  	 	150	 	  	 	98.5%	 	  	 	1.6%	 	  	 	6.6%	 	  	 	16.0%	 	  	 	9489	 	  	 	8	 	  	 	0.884	 	  	 	8966	 	  	 	2.16	 	  	 	1.67	 
	 	7.00	 	  	 	189	 	  	 	98.1%	 	  	 	2.0%	 	  	 	8.3%	 	  	 	19.0%	 	  	 	9489	 	  	 	7	 	  	 	0.866	 	  	 	8793	 	  	 	1.94	 	  	 	1.61	 
	 	6.00	 	  	 	254	 	  	 	97.5%	 	  	 	2.7%	 	  	 	11.0%	 	  	 	22.0%	 	  	 	9489	 	  	 	6	 	  	 	0.844	 	  	 	8567	 	  	 	1.69	 	  	 	1.54	 
	 	5.00	 	  	 	345	 	  	 	90.0%	 	  	 	3.6%	 	  	 	14.0%	 	  	 	26.0%	 	  	 	9489	 	  	 	5	 	  	 	0.815	 	  	 	8266	 	  	 	1.41	 	  	 	1.46	 
	 	cu > 10	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	96	 	  	 	23.47	 	  	 	14.042	 	  	 	1365	 	  	 	12.33	 	  	 	0.25	 
	 	cu <= 10	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	9393	 	  	 	9.99	 	  	 	0.819	 	  	 	8232	 	  	 	1.76	 	  	 	1.62	 

 Table B4: Mina Central Capping Analysis – Pb 
  

																																															
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 			  			 	  				  			 	  				  			 	  	 	9489	 	  	 	31.5	 	  	 	0.985	 	  	 	9991	 	  	 	4.65	 	  	 	2.19	 
	 	30.00	 	  	 	1	 	  	 	100.0%	 	  	 	0.0%	 	  	 	0.0%	 	  	 	0.1%	 	  	 	9489	 	  	 	30	 	  	 	0.984	 	  	 	9990	 	  	 	4.64	 	  	 	2.19	 
	 	25.00	 	  	 	4	 	  	 	99.9%	 	  	 	0.0%	 	  	 	0.2%	 	  	 	0.6%	 	  	 	9489	 	  	 	25	 	  	 	0.983	 	  	 	9978	 	  	 	4.58	 	  	 	2.18	 
	 	22.00	 	  	 	9	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.4%	 	  	 	1.3%	 	  	 	9489	 	  	 	22	 	  	 	0.982	 	  	 	9960	 	  	 	4.5	 	  	 	2.16	 
	 	20.00	 	  	 	12	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.6%	 	  	 	2.0%	 	  	 	9489	 	  	 	20	 	  	 	0.98	 	  	 	9940	 	  	 	4.42	 	  	 	2.15	 
	 	18.00	 	  	 	18	 	  	 	99.8%	 	  	 	0.2%	 	  	 	0.9%	 	  	 	2.9%	 	  	 	9489	 	  	 	18	 	  	 	0.977	 	  	 	9910	 	  	 	4.32	 	  	 	2.13	 
	 	16.00	 	  	 	28	 	  	 	99.7%	 	  	 	0.3%	 	  	 	1.4%	 	  	 	4.0%	 	  	 	9489	 	  	 	16	 	  	 	0.972	 	  	 	9866	 	  	 	4.18	 	  	 	2.1	 
	 	15.00	 	  	 	35	 	  	 	99.7%	 	  	 	0.4%	 	  	 	1.7%	 	  	 	4.7%	 	  	 	9489	 	  	 	15	 	  	 	0.969	 	  	 	9836	 	  	 	4.09	 	  	 	2.09	 
	 	12.00	 	  	 	72	 	  	 	99.3%	 	  	 	0.8%	 	  	 	3.3%	 	  	 	7.7%	 	  	 	9489	 	  	 	12	 	  	 	0.954	 	  	 	9683	 	  	 	3.72	 	  	 	2.02	 
	 	10.00	 	  	 	125	 	  	 	98.8%	 	  	 	1.3%	 	  	 	5.3%	 	  	 	11.0%	 	  	 	9489	 	  	 	10	 	  	 	0.935	 	  	 	9485	 	  	 	3.33	 	  	 	1.95	 
	 	8.00		  	 	212	 	  	 	90.0%	 	  	 	2.2%	 	  	 	8.7%	 	  	 	15.0%	 	  	 	9489	 	  	 	8	 	  	 	0.901	 	  	 	9148	 	  	 	2.8	 	  	 	1.86	 
	 	pb > 20	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	12	 	  	 	31.5	 	  	 	24.512	 	  	 	279.4	 	  	 	11.73	 	  	 	0.14	 
	 	pb <= 20	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	9477	 	  	 	19.98	 	  	 	0.958	 	  	 	9712	 	  	 	4.02	 	  	 	2.09	 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table B5: Mina Central Capping Analysis – Zn 

 

																																															
	Cap	 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 		 	  				  			 	  				  				  			 	  	 	9489	 	  	 	45.47	 	  	 	3.229	 	  	 	32762	 	  	 	29.72	 	  	 	1.69	 
	 	40.00	 	  	 	9	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.1%	 	  	 	0.2%	 	  	 	9489	 	  	 	40	 	  	 	3.226	 	  	 	32740	 	  	 	29.55	 	  	 	1.68	 
	 	38.00	 	  	 	11	 	  	 	99.9%	 	  	 	0.1%	 	  	 	0.1%	 	  	 	0.4%	 	  	 	9489	 	  	 	38	 	  	 	3.224	 	  	 	32718	 	  	 	29.39	 	  	 	1.68	 
	 	35.00	 	  	 	25	 	  	 	99.8%	 	  	 	0.3%	 	  	 	0.3%	 	  	 	0.9%	 	  	 	9489	 	  	 	35	 	  	 	3.219	 	  	 	32662	 	  	 	29.03	 	  	 	1.67	 
	 	32.00	 	  	 	39	 	  	 	99.6%	 	  	 	0.4%	 	  	 	0.6%	 	  	 	1.6%	 	  	 	9489	 	  	 	32	 	  	 	3.209	 	  	 	32564	 	  	 	28.44	 	  	 	1.66	 
	 	30.00	 	  	 	53	 	  	 	99.4%	 	  	 	0.6%	 	  	 	0.9%	 	  	 	2.2%	 	  	 	9489	 	  	 	30	 	  	 	3.2	 	  	 	32469	 	  	 	27.93	 	  	 	1.65	 
	 	28.00	 	  	 	81	 	  	 	99.2%	 	  	 	0.9%	 	  	 	1.3%	 	  	 	3.0%	 	  	 	9489	 	  	 	28	 	  	 	3.186	 	  	 	32330	 	  	 	27.22	 	  	 	1.64	 
	 	25.00	 	  	 	131	 	  	 	98.7%	 	  	 	1.4%	 	  	 	2.3%	 	  	 	4.7%	 	  	 	9489	 	  	 	25	 	  	 	3.154	 	  	 	32008	 	  	 	25.75	 	  	 	1.61	 
	 	22.00	 	  	 	176	 	  	 	98.2%	 	  	 	1.9%	 	  	 	3.7%	 	  	 	6.9%	 	  	 	9489	 	  	 	22	 	  	 	3.108	 	  	 	31539	 	  	 	23.87	 	  	 	1.57	 
	 	20.00	 	  	 	237	 	  	 	97.6%	 	  	 	2.5%	 	  	 	5.0%	 	  	 	8.6%	 	  	 	9489	 	  	 	20	 	  	 	3.067	 	  	 	31121	 	  	 	22.4	 	  	 	1.54	 
	 	15.00	 	  	 	468	 	  	 	90.0%	 	  	 	4.9%	 	  	 	10.0%	 	  	 	14.0%	 	  	 	9489	 	  	 	15	 	  	 	2.898	 	  	 	29407	 	  	 	17.59	 	  	 	1.45	 
	 	zn > 30	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	53	 	  	 	45.47	 	  	 	35.337	 	  	 	1940	 	  	 	16.72	 	  	 	0.12	 
	 	zn <= 30	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	9436	 	  	 	30	 	  	 	3.054	 	  	 	30822	 	  	 	24.15	 	  	 	1.61	 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 C - Elissa 
  

 
 Figure C1: Elissa Log Probability Plot – Ag 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure C2: Elissa Log Probability Plot – Au 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure C3: Elissa Log Probability Plot – Cu 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure C4: Elissa Log Probability Plot – Pb 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure C5: Elissa Log Probability Plot – Zn 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table C1: Elissa Capping Analysis – Ag 

 

																																													
	Cap 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 	  			 	  			 	  			 	  			 	  			 	  	 	473	 	  	 	1091.592	 	  	 	131.179	 	  	 	120652	 	  	 	12516	 	  	 	0.85	 
	
557.90 
	  	 	5	 	  	 	99.0%	 	  	 	1.1%	 	  	 	1.7%	 	  	 	10.0%	 	  	 	473	 	  	 	557.899	 	  	 	129.07	 	  	 	118712	 	  	 	9825	 	  	 	0.77	 
	
420.00 
	  	 	9	 	  	 	98.0%	 	  	 	1.9%	 	  	 	3.3%	 	  	 	16.0%	 	  	 	473	 	  	 	420	 	  	 	126.835	 	  	 	116657	 	  	 	8232	 	  	 	0.72	 
	
376.13 
	  	 	13	 	  	 	97.0%	 	  	 	2.7%	 	  	 	4.1%	 	  	 	19.0%	 	  	 	473	 	  	 	376.13	 	  	 	125.677	 	  	 	115592	 	  	 	7605	 	  	 	0.69	 
	
357.30 
	  	 	16	 	  	 	96.0%	 	  	 	3.4%	 	  	 	4.5%	 	  	 	20.0%	 	  	 	473	 	  	 	357.295	 	  	 	125.054	 	  	 	115019	 	  	 	7303	 	  	 	0.68	 
	
322.61 
	  	 	23	 	  	 	95.0%	 	  	 	4.9%	 	  	 	5.7%	 	  	 	23.0%	 	  	 	473	 	  	 	322.608	 	  	 	123.43	 	  	 	113525	 	  	 	6603	 	  	 	0.66	 
	
296.92 
	  	 	27	 	  	 	94.0%	 	  	 	5.7%	 	  	 	6.8%	 	  	 	25.0%	 	  	 	473	 	  	 	296.917	 	  	 	121.998	 	  	 	112208	 	  	 	6067	 	  	 	0.64	 
	
279.18 
	  	 	32	 	  	 	93.0%	 	  	 	6.8%	 	  	 	7.7%	 	  	 	27.0%	 	  	 	473	 	  	 	279.178	 	  	 	120.829	 	  	 	111133	 	  	 	5677	 	  	 	0.62	 
	
268.47 
	  	 	36	 	  	 	92.0%	 	  	 	7.6%	 	  	 	8.3%	 	  	 	28.0%	 	  	 	473	 	  	 	268.467	 	  	 	120.021	 	  	 	110390	 	  	 	5429	 	  	 	0.61	 
	
261.09 
	  	 	40	 	  	 	91.0%	 	  	 	8.5%	 	  	 	8.8%	 	  	 	29.0%	 	  	 	473	 	  	 	261.093	 	  	 	119.39	 	  	 	109809	 	  	 	5245	 	  	 	0.61	 
	
258.06 
	  	 	43	 	  	 	90.0%	 	  	 	9.1%	 	  	 	9.0%	 	  	 	29.0%	 	  	 	473	 	  	 	258.061	 	  	 	119.096	 	  	 	109539	 	  	 	5163	 	  	 	0.60	 
	
ag > 420 
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	9	 	  	 	1091.592	 	  	 	613.024	 	  	 	12690	 	  	 	45925	 	  	 	0.35	 
	
ag <= 420 
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	464	 	  	 	415.87	 	  	 	120.085	 	  	 	107963	 	  	 	6393	 	  	 	0.67	 

	
	  
 Table C2: Elissa Capping Analysis – Au

 

																																													
	Cap 	  	Capped	 	  	Percentile	 	  	Capped%	 	  	Lost Metal	 	  	CV%	 	  	Count	 	  	Max	 	  	Mean	 	  	Total	 	  	Variance	 	  	CV	 
	 	  			 	  			 	  			 	  			 	  			 	  	 	473	 	  	 	4.72	 	  	 	0.27	 	  	 	248.2	 	  	 	0.22	 	  	 	1.74	 
	
2.09 
	  	 	8	 	  	 	99.0%	 	  	 	1.7%	 	  	 	4.7%	 	  	 	8.3%	 	  	 	473	 	  	 	2.092	 	  	 	0.261	 	  	 	239.6	 	  	 	0.17	 	  	 	1.59	 
	
1.36 
	  	 	13	 	  	 	98.0%	 	  	 	2.7%	 	  	 	9.5%	 	  	 	13.0%	 	  	 	473	 	  	 	1.359	 	  	 	0.25	 	  	 	230.1	 	  	 	0.14	 	  	 	1.51	 
	
1.26 
	  	 	17	 	  	 	97.0%	 	  	 	3.6%	 	  	 	10.0%	 	  	 	14.0%	 	  	 	473	 	  	 	1.26	 	  	 	0.248	 	  	 	227.8	 	  	 	0.14	 	  	 	1.5	 
	
1.10 
	  	 	24	 	  	 	96.0%	 	  	 	5.1%	 	  	 	13.0%	 	  	 	15.0%	 	  	 	473	 	  	 	1.1	 	  	 	0.242	 	  	 	222.4	 	  	 	0.13	 	  	 	1.47	 
	
1.00 
	  	 	30	 	  	 	95.0%	 	  	 	6.3%	 	  	 	15.0%	 	  	 	16.0%	 	  	 	473	 	  	 	1	 	  	 	0.237	 	  	 	218.2	 	  	 	0.12	 	  	 	1.45	 
	
0.97 
	  	 	35	 	  	 	94.0%	 	  	 	7.4%	 	  	 	15.0%	 	  	 	17.0%	 	  	 	473	 	  	 	0.966	 	  	 	0.235	 	  	 	216.4	 	  	 	0.12	 	  	 	1.45	 
	
0.94 
	  	 	39	 	  	 	93.0%	 	  	 	8.2%	 	  	 	16.0%	 	  	 	17.0%	 	  	 	473	 	  	 	0.94	 	  	 	0.234	 	  	 	214.8	 	  	 	0.11	 	  	 	1.44	 
	
0.92 
	  	 	44	 	  	 	92.0%	 	  	 	9.3%	 	  	 	17.0%	 	  	 	17.0%	 	  	 	473	 	  	 	0.92	 	  	 	0.232	 	  	 	213.4	 	  	 	0.11	 	  	 	1.44	 
	
0.90 
	  	 	51	 	  	 	91.0%	 	  	 	10.8%	 	  	 	17.0%	 	  	 	18.0%	 	  	 	473	 	  	 	0.9	 	  	 	0.23	 	  	 	211.7	 	  	 	0.11	 	  	 	1.43	 
	
0.87 
	  	 	57	 	  	 	90.0%	 	  	 	12.1%	 	  	 	18.0%	 	  	 	18.0%	 	  	 	473	 	  	 	0.868	 	  	 	0.227	 	  	 	208.8	 	  	 	0.1	 	  	 	1.42	 
	
au > 1.1 
	  			 	  			 	  			 	  			 	  			 	  	 	24	 	  	 	4.72	 	  	 	1.806	 	  	 	66.04	 	  	 	0.69	 	  	 	0.46	 
	
au <= 1.1 
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	449	 	  	 	1.1	 	  	 	0.206	 	  	 	182.1	 	  	 	0.1	 	  	 	1.53	 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table C3: Elissa Capping Analysis – Cu 

 

																							
	Cap  	 	  Capped  	 	  Percentile  	 	  Capped%  	 	  Lost Metal  	 	CV%  	 	  Count  	 	    Max  	 	  Mean  	 	  Total  	 	  Variance  	 	CV 
	 	 	 	 	 	 	 	 	 	 	 	 	473  	 	2.43  	 	0.151  	 	138.6  	 	0.04  	 	1.4 
	
0.97  
	 	8  	 	99.0%  	 	1.7%  	 	5.3%  	 	  17.0%  	 	473  	 	0.973  	 	0.144  	 	132.9  	 	0.03  	 	1.16 
	
0.81  
	 	13  	 	98.0%  	 	2.7%  	 	7.3%  	 	21.0%  	 	473  	 	0.811  	 	0.142  	 	130.9  	 	0.03  	 	1.11 
	
0.64  
	 	18  	 	97.0%  	 	3.8%  	 	11.0%  	 	26.0%  	 	473  	 	0.636  	 	0.138  	 	127.1  	 	0.02  	 	1.03 
	
0.54  
	 	24  	 	96.0%  	 	5.1%  	 	13.0%  	 	31.0%  	 	473  	 	0.536  	 	0.135  	 	123.8  	 	0.02  	 	0.97 
	
0.50  
	 	30  	 	95.0%  	 	6.3%  	 	15.0%  	 	33.0%  	 	473  	 	0.5  	 	0.133  	 	122.3  	 	0.02  	 	0.95 
	
0.42  
	 	34  	 	94.0%  	 	7.2%  	 	18.0%  	 	37.0%  	 	473  	 	0.422  	 	0.128  	 	118.1  	 	0.01  	 	0.88 
	
0.39  
	 	37  	 	93.0%  	 	7.8%  	 	20.0%  	 	39.0%  	 	473  	 	0.39  	 	0.126  	 	116.2  	 	0.01  	 	0.86 
	
0.35  
	 	44  	 	92.0%  	 	9.3%  	 	22.0%  	 	42.0%  	 	473  	 	0.348  	 	0.123  	 	113.2  	 	0.01  	 	0.82 
	
0.33  
	 	50  	 	91.0%  	 	10.6%  	 	23.0%  	 	43.0%  	 	473  	 	0.325  	 	0.121  	 	111.4  	 	0.01  	 	0.79 
	
0.31  
	 	54  	 	90.0%  	 	11.4%  	 	24.0%  	 	45.0%  	 	473  	 	0.308  	 	0.12  	 	109.9  	 	0.01  	 	0.78 
	
cu > 0.5  
	 	 	 	 	 	 	 	 	 	 	 	30  	 	2.43  	 	0.831  	 	40.86  	 	0.2  	 	0.54 
	
cu <= 0.5  
	 	 	 	 	 	 	 	 	 	 	 	443  	 	0.499  	 	0.112  	 	97.71  	 	0.01  	 	  0.83 

 Table C4: Elissa Capping Analysis – Pb 
  

																							
	Cap  	 	  Capped  	 	  Percentile  	 	  Capped%  	 	  Lost Metal  	 	CV%  	 	  Count  	 	    Max  	 	    Mean  	 	  Total  	 	  Variance  	 	CV 
	 	 	 	 	 	 	 	 	 	 	 	 	473  	 	919.8  	 	2.653  	 	2440  	 	7.04  	 	1 
	
11.56  
	 	6  	 	99.0%  	 	1.3%  	 	1.6%  	 	4.4%  	 	473  	 	919.8  	 	2.62  	 	2410  	 	6.28  	 	0.96 
	
10.00  
	 	12  	 	98.0%  	 	2.5%  	 	2.7%  	 	6.4%  	 	473  	 	919.8  	 	2.597  	 	2388  	 	5.91  	 	0.94 
	
9.53  
	 	16  	 	97.0%  	 	3.4%  	 	3.2%  	 	7.3%  	 	473  	 	919.8  	 	2.585  	 	2378  	 	5.74  	 	0.93 
	
8.46  
	 	21  	 	96.0%  	 	4.4%  	 	4.8%  	 	  10.0%  	 	473  	 	919.8  	 	2.547  	 	2343  	 	5.25  	 	0.9 
	
7.99  
	 	25  	 	95.0%  	 	5.3%  	 	5.7%  	 	11.0%  	 	473  	 	919.8  	 	2.526  	 	2323  	 	5  	 	0.89 
	
7.69  
	 	30  	 	94.0%  	 	6.3%  	 	6.3%  	 	12.0%  	 	473  	 	919.8  	 	2.509  	 	2308  	 	4.83  	 	0.88 
	
7.48  
	 	34  	 	93.0%  	 	7.2%  	 	6.9%  	 	13.0%  	 	473  	 	919.8  	 	2.494  	 	2294  	 	4.68  	 	0.87 
	
7.21  
	 	37  	 	92.0%  	 	7.8%  	 	7.7%  	 	14.0%  	 	473  	 	919.8  	 	2.474  	 	2275  	 	4.48  	 	0.86 
	
6.94  
	 	41  	 	91.0%  	 	8.7%  	 	8.6%  	 	16.0%  	 	473  	 	919.8  	 	2.449  	 	2253  	 	4.25  	 	0.84 
	
6.65  
	 	44  	 	90.0%  	 	9.3%  	 	9.5%  	 	17.0%  	 	473  	 	919.8  	 	2.423  	 	2229  	 	4.02  	 	0.83 
	
pb > 10  
	 	 	 	 	 	 	 	 	 	 	 	12  	 	20.09  	 	12.586  	 	252.8  	 	7.87  	 	  0.22 
	
pb <= 10  
	 	 	 	 	 	 	 	 	 	 	 	461  	 	899.7  	 	2.431  	 	2187  	 	4.78  	 	0.9 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table C5: Elissa Capping Analysis – Zn 

 

																							
	Cap  	 	  Capped  	 	  Percentile  	 	  Capped%  	 	  Lost Metal  	 	CV%  	 	  Count  	 	Max  	 	Mean  	 	Total  	 	  Variance  	 	CV 
	 	 	 	 	 	 	 	 	 	 	 	 	472  	 	42.08  	 	  12.805  	 	  11741  	 	67.77  	 	0.64 
	
40.00  
	 	3  	 	99.6%  	 	0.6%  	 	-0.6%  	 	  -0.5%  	 	473  	 	40  	 	12.88  	 	11846  	 	69.3  	 	0.65 
	
38.00  
	 	4  	 	99.4%  	 	0.8%  	 	-0.5%  	 	0.0%  	 	473  	 	38  	 	12.861  	 	11829  	 	68.32  	 	0.64 
	
35.00  
	 	8  	 	97.0%  	 	1.7%  	 	-0.2%  	 	1.0%  	 	473  	 	35  	 	12.826  	 	11797  	 	66.66  	 	0.64 
	
31.47  
	 	20  	 	96.0%  	 	4.2%  	 	0.5%  	 	3.2%  	 	473  	 	31.47  	 	12.728  	 	11706  	 	62.68  	 	0.62 
	
30.31  
	 	25  	 	95.0%  	 	5.3%  	 	1.0%  	 	4.5%  	 	473  	 	30.31  	 	12.669  	 	11652  	 	60.54  	 	0.61 
	
28.79  
	 	30  	 	94.0%  	 	6.4%  	 	1.6%  	 	6.2%  	 	473  	 	28.791  	 	12.581  	 	11572  	 	57.56  	 	0.6 
	
28.06  
	 	34  	 	93.0%  	 	7.2%  	 	2.0%  	 	7.1%  	 	473  	 	28.059  	 	12.531  	 	11525  	 	55.97  	 	0.6 
	
26.12  
	 	39  	 	92.0%  	 	8.3%  	 	3.2%  	 	9.9%  	 	473  	 	26.124  	 	12.377  	 	11384  	 	51.45  	 	0.58 
	
25.66  
	 	43  	 	91.0%  	 	9.1%  	 	3.5%  	 	11.0%  	 	473  	 	25.662  	 	12.336  	 	11346  	 	50.35  	 	0.58 
	
25.26  
	 	46  	 	90.0%  	 	9.7%  	 	3.9%  	 	11.0%  	 	473  	 	  25.256  	 	12.295  	 	11309  	 	49.27  	 	0.57 
	
zn > 35  
	 	 	 	 	 	 	 	 	 	 	 	7  	 	42.08  	 	38.555  	 	481.5  	 	10.18  	 	0.08 
	
zn <= 35  
	 	 	 	 	 	 	 	 	 	 	 	465  	 	34.98  	 	12.449  	 	11259  	 	59.28  	 	  0.62 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 D - Cuerpos Pequenos 
  

 
 Figure D1: Cuerpos Pequenos Log Probability Plot – Ag 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure D2: Cuerpos Pequenos Log Probability Plot – Au 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure D3: Cuerpos Pequenos Log Probability Plot – Cu 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure D4: Cuerpos Pequenos Log Probability Plot – Pb 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 

 
 Figure D5: Cuerpos Pequenos Log Probability Plot – Zn 

					
	 SRK Consulting (U.S), Inc.
 NI 43-101 Technical Report on
Yauricocha Mine, Peru
  
	  	 Appendices
  

 
  

 Table D1: Cuerpos Pequenos Capping Analysis – Ag 

 

																																													
	Cap  	 	    Capped	 	 	   Percentile	 	 	   Capped%	 	 	   Lost Metal	 	 	CV%	 	 	   Count	 	 	Max	 	 	Mean	 	 	Total	 	 	   Variance	 	 	CV	 
	 	 			 	 				 			 	 				 			 	 	 	1418	 	 	 	4606.12	 	 	 	332.003	 	 	 	  592991	 	 	 	184624	 	 	 	  1.29	 
	
1763.82  
	 	 	10	 	 	 	99.0%	 	 	 	0.7%	 	 	 	1.8%	 	 	 	5.9%	 	 	 	1418	 	 	 	1763.818	 	 	 	325.892	 	 	 	582076	 	 	 	157560	 	 	 	1.22	 
	
1438.88  
	 	 	19	 	 	 	98.0%	 	 	 	1.3%	 	 	 	3.1%	 	 	 	8.2%	 	 	 	1418	 	 	 	1438.88	 	 	 	321.113	 	 	 	573540	 	 	 	145505	 	 	 	1.19	 
	
1338.87  
	 	 	28	 	 	 	97.0%	 	 	 	2.0%	 	 	 	3.7%	 	 	 	9.3%	 	 	 	1418	 	 	 	1338.874	 	 	 	318.451	 	 	 	568785	 	 	 	139823	 	 	 	1.17	 
	
1240.00  
	 	 	40	 	 	 	96.0%	 	 	 	2.8%	 	 	 	4.6%	 	 	 	  10.0%	 	 	 	1418	 	 	 	1240	 	 	 	315.03	 	 	 	562675	 	 	 	133175	 	 	 	1.16	 
	
1178.73  
	 	 	47	 	 	 	95.0%	 	 	 	3.3%	 	 	 	5.3%	 	 	 	11.0%	 	 	 	1418	 	 	 	1178.733	 	 	 	312.132	 	 	 	557498	 	 	 	127981	 	 	 	1.15	 
	
1117.49  
	 	 	56	 	 	 	94.0%	 	 	 	3.9%	 	 	 	6.2%	 	 	 	13.0%	 	 	 	1418	 	 	 	1117.486	 	 	 	308.651	 	 	 	551281	 	 	 	122148	 	 	 	1.13	 
	
1060.85  
	 	 	64	 	 	 	93.0%	 	 	 	4.5%	 	 	 	7.1%	 	 	 	14.0%	 	 	 	1418	 	 	 	1060.847	 	 	 	304.959	 	 	 	544687	 	 	 	116374	 	 	 	1.12	 
	
1018.99  
	 	 	73	 	 	 	92.0%	 	 	 	5.1%	 	 	 	7.8%	 	 	 	14.0%	 	 	 	1418	 	 	 	  1018.985	 	 	 	301.812	 	 	 	539066	 	 	 	111737	 	 	 	1.11	 
	
961.20  
	 	 	84	 	 	 	91.0%	 	 	 	5.9%	 	 	 	9.1%	 	 	 	16.0%	 	 	 	1418	 	 	 	961.2	 	 	 	296.815	 	 	 	530141	 	 	 	104833	 	 	 	1.09	 
	
928.36  
	 	 	93	 	 	 	90.0%	 	 	 	6.6%	 	 	 	9.8%	 	 	 	16.0%	 	 	 	1418	 	 	 	928.363	 	 	 	293.642	 	 	 	524475	 	 	 	100709	 	 	 	1.08	 
	
ag > 1240  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	40	 	 	 	4606.12	 	 	 	   1644.218	 	 	 	123316	 	 	 	329199	 	 	 	0.35	 
	
ag <= 1240  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1378	 	 	 	1238.5	 	 	 	274.487	 	 	 	469675	 	 	 	99835	 	 	 	1.15	 

 Table D2: Cuerpos Pequenos Capping Analysis – Au 

 

																																													
	Cap  	 	     Capped	 	 	     Percentile	 	 	     Capped%	 	 	     Lost Metal	 	 	CV%	 	 	    Count	 	 	Max	 	 	Mean	 	 	Total	 	 	     Variance	 	 	 CV     	 
	 	 			 	 				 			 	 				 			 	 	 	1418	 	 	 	28	 	 	 	0.762	 	 	 	1360	 	 	 	3	 	 	 	2.28	 
	
20.00  
	 	 	3	 	 	 	99.9%	 	 	 	0.2%	 	 	 	1.0%	 	 	 	3.1%	 	 	 	1418	 	 	 	20	 	 	 	0.757	 	 	 	1352	 	 	 	2.78	 	 	 	2.21	 
	
15.00  
	 	 	6	 	 	 	99.7%	 	 	 	0.4%	 	 	 	3.1%	 	 	 	9.6%	 	 	 	1418	 	 	 	15	 	 	 	0.743	 	 	 	1327	 	 	 	2.34	 	 	 	2.06	 
	
10.00  
	 	 	11	 	 	 	99.4%	 	 	 	0.8%	 	 	 	6.2%	 	 	 	   17.0%	 	 	 	1418	 	 	 	10	 	 	 	0.724	 	 	 	1293	 	 	 	1.89	 	 	 	1.9	 
	 9.00  
	 	 	14	 	 	 	99.2%	 	 	 	1.0%	 	 	 	7.4%	 	 	 	19.0%	 	 	 	1418	 	 	 	9	 	 	 	0.716	 	 	 	1279	 	 	 	1.75	 	 	 	1.85	 
	 8.00  
	 	 	20	 	 	 	98.8%	 	 	 	1.4%	 	 	 	8.9%	 	 	 	21.0%	 	 	 	1418	 	 	 	8	 	 	 	0.706	 	 	 	1262	 	 	 	1.6	 	 	 	1.79	 
	 7.00  
	 	 	21	 	 	 	98.7%	 	 	 	1.5%	 	 	 	11.0%	 	 	 	24.0%	 	 	 	1418	 	 	 	7	 	 	 	0.693	 	 	 	1238	 	 	 	1.42	 	 	 	1.72	 
	 6.00  
	 	 	28	 	 	 	98.3%	 	 	 	2.0%	 	 	 	13.0%	 	 	 	28.0%	 	 	 	1418	 	 	 	6	 	 	 	0.678	 	 	 	1211	 	 	 	1.25	 	 	 	1.65	 
	 5.00  
	 	 	32	 	 	 	97.9%	 	 	 	2.3%	 	 	 	16.0%	 	 	 	31.0%	 	 	 	1418	 	 	 	5	 	 	 	0.659	 	 	 	1177	 	 	 	1.06	 	 	 	1.56	 
	 4.00  
	 	 	40	 	 	 	97.3%	 	 	 	2.8%	 	 	 	19.0%	 	 	 	35.0%	 	 	 	1418	 	 	 	4	 	 	 	0.634	 	 	 	1132	 	 	 	0.87	 	 	 	1.47	 
	 3.00  
	 	 	66	 	 	 	95.4%	 	 	 	4.7%	 	 	 	24.0%	 	 	 	40.0%	 	 	 	1418	 	 	 	3	 	 	 	0.598	 	 	 	1069	 	 	 	0.67	 	 	 	1.37	 
	au > 10  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	11	 	 	 	28	 	 	 	    15.896	 	 	 	    181.2	 	 	 	33.45	 	 	 	0.36	 
	au <= 10  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1407	 	 	 	   9.79	 	 	 	0.664	 	 	 	1179	 	 	 	1.35	 	 	 	1.75	 

					
	 SRK Consulting (U.S), Inc. 
 NI 43-101 Technical Report on Yauricocha Mine, Peru 
  
	  	 Appendices 
  

 
  

 Table D3: Cuerpos Pequenos Capping Analysis – Cu 

 

																																													
	Cap  	 	     Capped	 	 	     Percentile	 	 	     Capped%	 	 	     Lost Metal	 	 	CV%	 	 	    Count	 	 	Max	 	 	Mean	 	 	Total	 	 	     Variance	 	 	 CV     	 
	 	 			 	 				 			 	 				 			 	 	 	1418	 	 	 	30.01	 	 	 	1.147	 	 	 	2049	 	 	 	8.47	 	 	 	2.54	 
	
24.00  
	 	 	6	 	 	 	99.8%	 	 	 	0.4%	 	 	 	0.7%	 	 	 	1.4%	 	 	 	1418	 	 	 	24	 	 	 	1.141	 	 	 	2038	 	 	 	8.14	 	 	 	2.5	 
	
20.00  
	 	 	12	 	 	 	99.4%	 	 	 	0.8%	 	 	 	2.3%	 	 	 	4.1%	 	 	 	1418	 	 	 	20	 	 	 	1.125	 	 	 	2010	 	 	 	7.49	 	 	 	2.43	 
	
18.00  
	 	 	15	 	 	 	99.2%	 	 	 	1.1%	 	 	 	3.8%	 	 	 	6.3%	 	 	 	1418	 	 	 	18	 	 	 	1.111	 	 	 	1984	 	 	 	6.97	 	 	 	2.38	 
	
15.00  
	 	 	24	 	 	 	98.7%	 	 	 	1.7%	 	 	 	7.0%	 	 	 	11.0%	 	 	 	1418	 	 	 	15	 	 	 	1.078	 	 	 	1925	 	 	 	5.96	 	 	 	2.27	 
	
12.50  
	 	 	30	 	 	 	98.3%	 	 	 	2.1%	 	 	 	11.0%	 	 	 	15.0%	 	 	 	1418	 	 	 	12.5	 	 	 	1.04	 	 	 	1857	 	 	 	5.01	 	 	 	2.15	 
	
10.00  
	 	 	45	 	 	 	97.4%	 	 	 	3.2%	 	 	 	16.0%	 	 	 	21.0%	 	 	 	1418	 	 	 	10	 	 	 	0.986	 	 	 	1761	 	 	 	3.9	 	 	 	2	 
	 9.00  
	 	 	56	 	 	 	96.9%	 	 	 	3.9%	 	 	 	19.0%	 	 	 	24.0%	 	 	 	1418	 	 	 	9	 	 	 	0.956	 	 	 	1708	 	 	 	3.41	 	 	 	1.93	 
	 8.00  
	 	 	59	 	 	 	96.6%	 	 	 	4.2%	 	 	 	22.0%	 	 	 	27.0%	 	 	 	1418	 	 	 	8	 	 	 	0.923	 	 	 	1649	 	 	 	2.91	 	 	 	1.85	 
	 7.00  
	 	 	65	 	 	 	96.4%	 	 	 	4.6%	 	 	 	25.0%	 	 	 	31.0%	 	 	 	1418	 	 	 	7	 	 	 	0.888	 	 	 	1586	 	 	 	2.44	 	 	 	1.76	 
	
5.00  
	 	 	88	 	 	 	90.0%	 	 	 	6.2%	 	 	 	33.0%	 	 	 	  38.0%	 	 	 	1418	 	 	 	5	 	 	 	0.804	 	 	 	1437	 	 	 	1.59	 	 	 	1.57	 
	
cu > 12.5  
	 			 	 				 			 	 				 			 	 	 	30	 	 	 	  30.01	 	 	 	  18.847	 	 	 	    570.1	 	 	 	19.96	 	 	 	0.24	 
	
cu <= 12.5  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1388	 	 	 	12.19	 	 	 	0.843	 	 	 	1479	 	 	 	2.79	 	 	 	1.98	 

 Table D4: Cuerpos Pequenos Capping Analysis – Pb 
  

																																													
	Cap  	 	     Capped	 	 	     Percentile	 	 	     Capped%	 	 	     Lost Metal	 	 	CV%	 	 	    Count	 	 	Max	 	 	Mean	 	 	Total	 	 	     Variance	 	 	 CV     	 
	 	 			 	 				 			 	 				 			 	 	 	1418	 	 	 	59.71	 	 	 	7.406	 	 	 	13229	 	 	 	82.2	 	 	 	1.22	 
	
43.00  
	 	 	6	 	 	 	99.6%	 	 	 	0.4%	 	 	 	0.3%	 	 	 	0.7%	 	 	 	1418	 	 	 	43	 	 	 	7.388	 	 	 	13196	 	 	 	80.69	 	 	 	1.22	 
	
38.00  
	 	 	9	 	 	 	99.3%	 	 	 	0.6%	 	 	 	0.7%	 	 	 	1.5%	 	 	 	1418	 	 	 	38	 	 	 	7.36	 	 	 	13146	 	 	 	78.82	 	 	 	1.21	 
	
35.00  
	 	 	13	 	 	 	99.0%	 	 	 	0.9%	 	 	 	1.0%	 	 	 	2.1%	 	 	 	1418	 	 	 	35	 	 	 	7.333	 	 	 	13098	 	 	 	77.26	 	 	 	1.2	 
	
32.50  
	 	 	17	 	 	 	98.7%	 	 	 	1.2%	 	 	 	1.5%	 	 	 	2.7%	 	 	 	1418	 	 	 	32.5	 	 	 	7.303	 	 	 	13044	 	 	 	75.66	 	 	 	1.19	 
	
30.50  
	 	 	23	 	 	 	98.1%	 	 	 	1.6%	 	 	 	2.0%	 	 	 	3.3%	 	 	 	1418	 	 	 	30.5	 	 	 	7.269	 	 	 	12982	 	 	 	74	 	 	 	1.18	 
	
28.00  
	 	 	45	 	 	 	96.1%	 	 	 	3.2%	 	 	 	3.0%	 	 	 	4.4%	 	 	 	1418	 	 	 	28	 	 	 	7.199	 	 	 	12857	 	 	 	70.94	 	 	 	1.17	 
	
27.00  
	 	 	56	 	 	 	95.1%	 	 	 	3.9%	 	 	 	3.6%	 	 	 	5.1%	 	 	 	1418	 	 	 	27	 	 	 	7.154	 	 	 	12777	 	 	 	69.11	 	 	 	1.16	 
	
25.00  
	 	 	70	 	 	 	93.4%	 	 	 	4.9%	 	 	 	5.0%	 	 	 	6.6%	 	 	 	1418	 	 	 	25	 	 	 	7.04	 	 	 	12574	 	 	 	64.82	 	 	 	1.14	 
	
22.50  
	 	 	98	 	 	 	90.9%	 	 	 	6.9%	 	 	 	7.4%	 	 	 	8.8%	 	 	 	1418	 	 	 	22.5	 	 	 	6.849	 	 	 	12233	 	 	 	58.42	 	 	 	1.12	 
	
20.00  
	 	 	125	 	 	 	90.0%	 	 	 	8.8%	 	 	 	11.0%	 	 	 	  11.0%	 	 	 	1418	 	 	 	20	 	 	 	6.594	 	 	 	11778	 	 	 	51.04	 	 	 	1.08	 
	 pb >
30.5  
	 			 	 				 			 	 				 			 	 	 	23	 	 	 	  59.71	 	 	 	  37.827	 	 	 	1271	 	 	 	44.3	 	 	 	0.18	 
	
pb <= 30.5  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1395	 	 	 	30.5	 	 	 	6.823	 	 	 	   11958	 	 	 	64.87	 	 	 	1.18	 

					
	 SRK Consulting (U.S), Inc. 
 NI 43-101 Technical Report on Yauricocha Mine, Peru 
  
	  	 Appendices 
  

 
  

 Table D5: Cuerpos Pequenos Capping Analysis – Zn 

 

																																													
	Cap  	 	     Capped	 	 	     Percentile	 	 	     Capped%	 	 	     Lost Metal	 	 	CV%	 	 	    Count	 	 	Max	 	 	Mean	 	 	Total	 	 	     Variance	 	 	 CV     	 
	 	 			 	 				 			 	 				 			 	 	 	1418	 	 	 	1074	 	 	 	9.757	 	 	 	17427	 	 	 	1339	 	 	 	3.75	 
	
40.00  
	 	 	3	 	 	 	99.8%	 	 	 	0.2%	 	 	 	8.6%	 	 	 	74.0%	 	 	 	1418	 	 	 	40	 	 	 	8.595	 	 	 	15352	 	 	 	69.31	 	 	 	0.97	 
	
35.00  
	 	 	9	 	 	 	99.4%	 	 	 	0.6%	 	 	 	8.8%	 	 	 	74.0%	 	 	 	1418	 	 	 	35	 	 	 	8.577	 	 	 	15320	 	 	 	68.28	 	 	 	0.96	 
	
30.00  
	 	 	26	 	 	 	97.0%	 	 	 	1.8%	 	 	 	9.5%	 	 	 	75.0%	 	 	 	1418	 	 	 	30	 	 	 	8.52	 	 	 	15218	 	 	 	65.59	 	 	 	0.95	 
	
26.48  
	 	 	52	 	 	 	96.0%	 	 	 	3.7%	 	 	 	11.0%	 	 	 	75.0%	 	 	 	1418	 	 	 	26.48	 	 	 	8.416	 	 	 	15031	 	 	 	61.49	 	 	 	0.93	 
	
25.30  
	 	 	62	 	 	 	95.0%	 	 	 	4.4%	 	 	 	11.0%	 	 	 	75.0%	 	 	 	1418	 	 	 	25.296	 	 	 	8.364	 	 	 	14939	 	 	 	59.69	 	 	 	0.92	 
	
23.89  
	 	 	77	 	 	 	94.0%	 	 	 	5.4%	 	 	 	12.0%	 	 	 	76.0%	 	 	 	1418	 	 	 	23.893	 	 	 	8.285	 	 	 	14798	 	 	 	57.11	 	 	 	0.91	 
	
23.14  
	 	 	86	 	 	 	93.0%	 	 	 	6.1%	 	 	 	12.0%	 	 	 	76.0%	 	 	 	1418	 	 	 	23.14	 	 	 	8.236	 	 	 	14710	 	 	 	55.61	 	 	 	0.91	 
	
22.01  
	 	 	96	 	 	 	92.0%	 	 	 	6.8%	 	 	 	13.0%	 	 	 	76.0%	 	 	 	1418	 	 	 	22.012	 	 	 	8.15	 	 	 	14556	 	 	 	53.14	 	 	 	0.89	 
	
21.41  
	 	 	107	 	 	 	91.0%	 	 	 	7.5%	 	 	 	14.0%	 	 	 	  76.0%	 	 	 	1418	 	 	 	21.407	 	 	 	8.098	 	 	 	14465	 	 	 	51.74	 	 	 	0.89	 
	
20.45  
	 	 	122	 	 	 	90.0%	 	 	 	8.6%	 	 	 	15.0%	 	 	 	77.0%	 	 	 	1418	 	 	 	  20.454	 	 	 	8.008	 	 	 	14303	 	 	 	49.4	 	 	 	0.88	 
	 zn >
30  
	 			 	 				 			 	 				 			 	 	 	26	 	 	 	1074	 	 	 	  98.068	 	 	 	3182	 	 	 	65615	 	 	 	2.61	 
	
zn <= 30  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1392	 	 	 	29.84	 	 	 	8.123	 	 	 	  14245	 	 	 	58.11	 	 	 	0.94

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}]]