Hochschild Mining Plc

Hochschild Mining plc

Sell Side Roundtable

Ignacio Bustamante, CEO Ramon Barúa, CFO Isabel Lutgendorf, Head of IR Disclaimer

Some statements contained in this presentation or in documents referred to in it are or may be forward‐ looking statements. Actual results may differ from those expressed in such statements, depending on a

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1 Focus on value creation

• Leading precious metals producer

Lake Shore Gold (35%) • Owner of 3 of the 12 largest primary silver mines in the world

• Specialising in high margin, precious metal assets in the Americas

• Production: 66% Ag, 34% Au Mercurio • Operations in Peru, Argentina and Mexico

Gold Resource Corp (30%) Moris (100%) • Mine operators for over 40 years Astana Farallon • Flagship mine Arcata in production since 1964 Josnitoro • 2010 production: 26.3 moz Ag Eq Crespo • Mine life of 7.9 years and growing Ares (100%) Azuca Inmaculada Arcata (100%) • FTSE 250 with market cap over US$1.9bn Cerro Blanco Pallancata (60%) • Financial net debt of $168m as of June 2010 Sabina Victoria Current operations • Project pipeline Strategic investments • $50 million exploration budget in 2010 Exploration projects • Actively drilling projects in Peru, Mexico and Chile Offices Mosquito San José (51%) Los Pinos

2 Mission & Vision

MISSION “We are a precious metals mining company focused on the Americas , working with excellence, social responsibility and the highest environmental and safety standards, achieving high profitability , sustained growth and creating shareholder value ”

VISION “Become the market leader in shareholder returns, work environment and safety”

3 HOC social commitment

Environment: • ISO 14001 Arcata certified. San Jose and Pallancata to achieve certification by 1Q11

• Environmental Management Plan in operations and projects

• Constant monitoring through Critical Performance Indicators

Safety: • DNV certification started in 2008, in process to achieve Level 5 at Arcata, Pallancata and San Jose

• Frequency Index currently at 3.7 Community relations: • Programmes focused on health, education and infant nutrition with an annual US$10m budget

– Mobile Hospital – Over 20 schools and 1,000 students supported – Alpaca genetic improvement program

4 Strategy ‐ pillars for growth

• Optimise life of mine at main operations ‐ Arcata ‐ San José 1 Core Assets • Increase productivity ‐ Pallancata • Cost control

• Fund exploration through largest ever budget ‐ Company Exploration • Maximise economies of scale by targeting makers 2 opportunities within clusters ‐ Company • Strategic project pipeline maintainers

• Focus on early stage projects with high geological ‐ Strategic 3 Corporate Development potential and clear path to control Investments

5 1 Current operations

ARCATA, Peru PALLANCATA, Peru SAN JOSÉ, Argentina

Main operations

11.3 MOZ AG EQ 10.3 MOZ AG EQ 9.6 MOZ AG EQ

ARES, Peru MORIS, Mexico

Smaller, ageing mines

3.5 MOZ AG EQ 1.8 MOZ AG EQ

GRC, Mexico LAKE SHORE GOLD, Canada

Strategic investments

70 KOZ AU ‐ Target 150 KOZ AU ‐ Target

•Production figures relate to full year 2009 and are based on 100% production 6 • Lakeshore and GRC’s production targets are based on public data and refer to 2011 (LSG) and the first 12 months of production (GRC)

1 More than doubled capacity since the IPO

Throughput capacity (tonnes per day)

157%

7,190 7,190 4,890 2,800

2006 2007 2008 2009

tpd 2006 2007 2008 2009 Ares 800 940 940 940 Arcata 1,000 1,200 1,750 1,750 Pallancata 1,000 2,000 3,000 3,000 San José ‐ 750 1,500 1,500

7 1 Focus on increasing resource life 1

Arcata 8.3 7.4 6.4 • LOM expected to 34% increase further by the end of the year FY08 FY09 H110 • Reserve cut‐off grades Pallancata 7.9 applied to resources 7.0 6.2 7.1 5.2 5.9 • High conversion rate from resources to reserves FY08 FY09 H110 San Jose 8.9 8.4 FY08 FY09 H110 6.2

FY08 FY09 H110

1 Arcata, San Jose, Pallancata. 8 Resources includes reserves 2 Exploration –existing strategy is successful

• Historically we have focused on epithermal low World's Leading Primary Silver Mines in 2009 sulphidation veins (millions of ounces) • These deposits contain on average 60% Ag ‐ 40% Au Mine/Country Production in value, characterised by high grade, low tonnage 1 Fresnillo, Mexico 35.4 2 Cannington, Australia 33.8 ore bodies with annual production between 5 –10 3 Dukat, Russia 11.8 million Ag eq oz/year 4 Gümüsköy, Turkey 11.2 5 Uchucchacua, Peru 10.6 • Typically they are mined underground and have 6 Arcata, Peru 9.5 limited formal mine life 7 Pallancata, Peru 8.4 8 San Bartolomé, Bolivia 7.5 • Some exceptions (e.g. Vanguardia: 10m Au eq oz, 9 Greens Creek, U.S. 7.5 Peñon: 12m Au eq oz, Fresnillo: 20m Au eq oz), but 10 Imiter, Morocco 6.8 on average these type of deposits have 2‐3m Au eq 11 Alamo Dorado, Mexico 5.3 12 San José, Argentina 5.0 oz Source: Silver Institute's World Silver Survey 2010 publication

HOCHSCHILD OWNS 3 OF THE TOP 12 LARGEST SILVER MINES GLOBALLY

9 2 Exploration – adding potential

• We will continue to focus on epithermal low sulphidation veins (company maintainers) • We are also pursuing epithermal high sulphidation disseminated deposits & Copper (Au) Porphyries (company makers)

‐ More frequent geological occurrence especially in Peru, Chile, Mexico ‐ Typically higher EBITDA margins and NPV per ounce ‐ Relatively simple open pit operations when compared to current underground mining activities ‐ Higher gold component & longer mine life = higher market multiples Exploration Typical HOC focus Average EBITDA by Deposit Type operations30 350 300 25 Average EBITDA / yr # of deposits 250 20 200 15 150 10

100 of# deposits

EBITDA (US$ / (US$ yr) EBITDA 5 50 0 0 VMS IOCG Carl in Porphyry Epithermal porphyry) Paleoplacer Intermediate Sulphidation Orogenic BIF Sulphidation Intrusive (non- Sulphidation Orogenic Orogenic Replacement Epithermal Low Epithermal High Epithermal Skarn/Carbonate Epithermal Alkalic Epithermal Turbidite/Black S… Greenstone/Volcanic

10 Source: Metals Economics Group (www.metalseconomicsgroup.com) 2 Looking for deposits with longer LOM

100

75 Reserve LOM Resource LOM LOM for Epithermal Low Sulphidation Veins (ELS) 50 years type deposit

25 Average = 10.7 yrs - La San Mina Ares Pogo Co-O Topia Rossi Silver Cubo- Lucky Martha Julcani Arcata Diablito Huaron Greens Zaruma Bolanos Fresnillo Antapite El Penon El Colombia Caylloma Pimenton San Jose San Troy Mine Ishihuinca Quiruvilca N. Senora Kettle R-B Kettle Pallancata San Dimas San Encantada Martin San Guanacevi Shila-Paula Recuperad La Cienega Morococha Guanajuato Guanajuato

100

75 Reserve LOM Resource LOM LOM for Epithermal High 50 Sulphidation Veins (ELS) years & Au (Cu) Porphyry 25 Average = 17.8 yrs

- Ity Voro Morila Siguiri Wharf Sukari Ahafo Choco Pierina Hidden Central Penjom Kumtor Bonikro Reefton Kalsaka Chatree Kemess Angovia Ruby Hill Corrales La Coipa C Creek- Chapada Gedabek Laverton Soledad- Middelvei El Castillo Andacollo Navachab Samira Hill Maricunga Sadiola Hill Sadiola El Chanate El North Mara North Boddington La Libertad Bereznyaki Lega Dembi San AndresSan Bronzewing Sukhaybarat Bogoso/Pres Maikainzoloto La Herradura Berezitovoye Lefa Corridor

11 Source: Metals Economics Group (www.metalseconomicsgroup.com) 2 Greater gold exposure

Market Gold Silver

Approx. Market Size in Au Eq. (Ag Eq.) 90 Moz Au (5.4 Boz Ag) 700 Moz Ag (12 Moz Au) Market Value in US$ US$ 81 Billion US$ 8 Billion # of Primary Deposits 660 Au mines 59 Ag mines (% of Tot. Prod.) (90% of Tot. Prod.) (35% of Tot. Prod.)

Source: Metals Economic Group (MEG), Mar 2009 Note: Prices used for calculations, Gold US$900/Oz and Silver US$12.0/Oz

• Gold universe has less ounces, but represents a higher value

12 2 We are in the right location

HSE Au Pueblo Viejo (38.9 Moz) Porphyries

Lagunas Norte (13.7 Moz) Yanacocha (46.7 Moz) Cerro Corona (4.4 Moz)

Pierina (8.7 Moz)

Marte-Lobo (6.5 Moz) Pascua Lama (37.4 Moz) Veladero (20.0 Moz) Andacollo (10 Moz)

Cerro Casale (33.0 Moz)

• These deposit types occur geographically in the Andes of Chile and Peru and “opening up the field” is consistent with our cluster strategy • We have experience with HSE deposits (Sipan) • Our acquisition of SWG has given us exposure to Cu (Au) porphyries in southern Peru in at least 3 early stage targets

13 2 SUMMARY: Company makers and maintainers

COMPANY MAKERS

• Hochschild produces above 26 million silver equivalent ounces at a 60 –1 ratio • A company maker project produces 20 –30 million silver equivalent ounces per year • Mostly high sulphidation and porphyry style deposits/disseminated

COMPANY MAINTAINERS • Similar type deposits to where we are producing 5 – 10 million silver equivalent ounces per year: producing incremental growth or replacing mines • Low sulphidation epithermal deposits

14 2 Exploration ‐ Largest ever budget1

$24 MILLION ALREADY INVESTED IN EXPLORATION IN THE FIRST HALF

1 Exploration budget for advanced projects considered as greenfield 15

2 A solid team

Greenfield • 27 geologists who collectively hold 15 postgraduate degrees • 23 support staff to ensure our geologists focus on exploration Brownfield • 40 geologists who collectively hold 10 postgraduate degrees • 8 support staff to ensure our geologists focus on exploration

16 2 Exploration: High quality project pipeline

Peru Mexico CURRENT OPERATIONS Argentina Canada Chile Arcata Ares Pallancata Moris San José GRC ‐ El Aguila Mines Lake Shore Gold COMPANY MAKERS COMPANY MAINTAINERS

Resource Azuca Development Crespo Inmaculada

Victoria Mosquito Astana Farallon Mercurio Drill Targets La Flora Cerro Blanco Sabina Los Pinos Huacullo

Josnitoro Argenta Ibel Careli‐Carmen Apacheta Prospects Corazon de Tiniebla San Martin

Generative Projects Mines 265,489ha 479,785ha 211,945ha

17 2 Company maintainers

AZUCA, Peru CRESPO, Peru INMACULADA, Peru

Scoping stage

CERRO BLANCO, Peru LA FLORA, Argentina MOSQUITO, Argentina

Drilling underway during 2010

LOS PINOS, Argentina ASTANA FARALLON, Peru HUACULLO, Peru

Target preparation

18 2 Advanced projects: Azuca (Peru)

• 100% owned project Azuca • 60 MOZ Ag Eq of resources in Q3 Yanamayo • Scoping study underway • Geological potential in the area • Located in Southern Peru Cluster Azuca 1 km

Indicative Azuca timetable 2010 2011 2012 2013 IIIQ IVQ IQ IIQ IIIQ IVQ IQ IIQ IIIQ IVQ IQ IIQ

Scoping(+/- 30%)

Pre-feasibility (evaluation of activity)

Feasibility(+/- 10%)

EPCM Start up

19 2 Azuca geological data

20 2 Advanced projects : Inmaculada (Peru)

• HOC currently owns a 49% interest Tonnes (MM) Au (g/t) Ag (g/t) Indicated 1.2 3.9 122 • IMZ currently owns remaining 51%; can earn 70% interest by completing and funding a Inferred 4.7 3.4 147

feasibility study by September 2013 Total 5.9 3.5 142 • Single vein geological body with potential for further continuity

21 2 Company makers

VICTORIA, Chile MERCURIO, Mexico SABINA, Peru

Sombrerete Drilling in progress Mercur io Fresnillo

JOSNITORO, Peru APACHETA, Peru CORAZON DE TINIEBLAS, Mexico

Permits and approvals underway

22 2 Company Makers ‐ Victoria, Chile

102m @ 0.43 g/t Au, 34 g/t Ag 101.9m @ 0.91g/t Au , 57 g/t Ag

Ownership: option to acquire up to 60%

Vaquillas Target • New discovery (10.5m @ 8.9 g/t Au & 116 g/t Ag)

• Includes 1.13 m @ 78 g/t Au & 802 g/t Ag 0 250 500m • Recent diamond drilling suggests that previous RC drilling may have

understated both gold and silver

grades

• Further drilling planned to confirm said conclusion

23 2 Company Makers: Mercurio, Mexico

• Generative work identified 36,388 hectares of prospective open ground between two high grade mines: • Sombrerete: produced 210 moz Ag eq. (700 g/t Ag and 1.5 g/t Au) between 1545 and 2000 • Fresnillo: produced 1,100 moz Ag (700 g/t Ag and 0.6 g/t Au) between 1553 and 2004

• Recent drilling results include: • La Troje Manto: 2m @ 1.8 g/t Au, 997 g/t Ag • DH‐5: 40m (82‐122m) s86m @ 20 g/t Ag, 25 kilometers 0.22% Cu; 0.49% Pb, 1.40% Zn (includes: 3.5m @ 300 g/t Ag, 4.36% Cu; 1.18% Pb, 7.49% Zn).

24 24 2 Company Makers: Sabina, Peru - Chaquella target

Chaquella DDHSA1001

295m Turputa DDHSA1002 0 1 2km

Surface sampling (0.1‐0.6 g/t Au) in line with partial results from first core hole: 11.8m @ 0.38 g/t Au, 1.6 g/t Ag

25 2 Company Makers: Josnitoro, Peru

• 100% owned project • 10,500 hectares • Mineralised cuarcites with visible gold; mineralisation starts at surface • Permitting underway

26 2 Other potential Company Maker targets

Corazón de Tinieblas, Mexico (100% owned) • Guerrero Gold Belt: +10moz Au endowment • Project has similar geological characteristics • Field work commenced in H210

Apacheta, Peru (100% owned) • Footprint >12 x 6 km silicification & 4km advanced argillic alteration • Early stage, only 1,000 surface samples & partial geological mapping • Paved highway, 2 hrs from Ayacucho city

27 27 2 Copper projects – potential added value

28 3 Other investments

CAD 550 LAKE SHORE GOLD 495

• Ownership: 35% 440 353 • Large land properties in the prolific Timmins Gold 330 Camp in Ontario, Canada 220 • Commercial production expected in Q4 2010 110 • Potential to produce over 300 koz of gold over the coming years 0

Investment Current value US$ 250 GOLD RESOURCE CORPORATION 219 200 • Located in southern Mexico, 30% ownership 150 • Commercial production commenced in July 2010 100 • Production target of 70 koz of gold in first 12 months 70 commercial production 50

• Longer term target to triple annual production to 200 0 koz Au equivalent within 3 years Investment Current Value Source: Public information from Lake Shore Gold Corp. & GRC 29 H110: Solid financial performance

Impressive results vs H109: • Record H1 revenue of $306.9m, up 33% • Costs remain in line with expectations • EBITDA of $150.1m, up 51% • Profit before tax trebled to $87.3m • Interim dividend of $0.02 per share • Solid financial position ‐ cash balance of $91.0m

EPS MORE THAN DOUBLED TO $0.11 PER SHARE

30 Profit & Loss summary

Profit & Loss H110 H109 $million Pre‐exceptional Pre‐exceptional Revenue 306.9 230.6 Gross profit 154.8 95.1 Operating profit 97.8 56.0 EBITDA 150.1 99.3 Profit before tax 87.3 27.7 Net profit 56.1 19.2 Attrib. net profit 38.9 12.9 EPS 0.11 0.04

• Exceptional items in 1H ’10 include: • Extraordinary bonus (‐US$8.9 m) • San Felipe impairment (‐US$14.7 m) • Zincore & El Quevar (US$ 13.5m)

31 Balance Sheet summary

Balance sheet H110 H109 $million Cash 91.0 77.8 PP&E 503.2 494.8 Total assets 1,320.2 1,305.9 Financial debt 258.7 228.8 Total liabilities 501.0 502.4 Equity 819.2 803.5

• Solid cash position • Low leverage • Total net debt/pre‐exceptional annualized EBITDA: 0.56x

32 High potential for value creation

• LOM increased by 34% since 2009

• Azuca approaching pre‐feasibility stage

• Robust project pipeline in premium mining locations • Strategic investments delivering shareholder value

• Impressive financial results and solid balance sheet

• Strong precious metals prices

33 Appendix