THE STATE OF ,

1 ZACATECAS

Zacatecas is a state with much to offer. Its capital city is one of the most beautiful colonial cities in Mexico. Thanks to its history and architecture, the UNESCO declared it a World Heritage Site.

Countless historical cultural buildings can be found along the city’s European-style urban layout in narrow streets, alleys and squares.

Its main economic activities are: mining, manufacturing industry, agriculture, and tourism. The state is known for its large ore deposits of silver and other minerals, such as: gold, cooper, and zinc.

The state of Zacatecas is located in central Mexico, bordering eight states: , , , San Luis Potosí, Nuevo León, , , and . It has a highway infrastructure of 11,842 km.; a railway network of 674.89Km and one international airport.

2 GENERAL INFORMATION

Zacatecas has a surface of 75,539 km2 , equivalent to the 3.8% of the total surface of the country, occupying the 8th national place in territorial extension. Neighboring States: 1- Aguascalientes, 2- Jalisco, 3- Nuevo León, 4- San Luis Potosí, 5- Nayarit, 6- Guanajuato, 7- Coahuila, 8- Durango

UNITED STATES OF AMERICA GENERAL INFORMATION

MUNICIPALITIES 58

7 ALTITUDE ABOVE SEA 8,189 ft Mexico LEVEL (for ) 8 3 UTC-6, in Summer 4 Zacatecas TIME 5 1 UTC-5, Central Time 2 6 Pacific WEATHER Mainly dry Ocean TEMPERATURE 17 º C average (annually)

§ Due to Zacatecas privileged location in Central Mexico, is among the few States which has no existing records for any earthquake. In addition, there is no probability that a tsunami or cyclone would happen.

SOURCE: Compilation from own elaboration of the State Ministry of Economy, based on the figures provided by INEGI. 3 Economic Data

POPULATION

TOTAL POPULATION OF THE STATE1 1,490,668 inhab. EAP (ECONOMICALLY ACTIVE POPULATION) 2 644,993 inhab.

AVERAGE AGE3 26 YEARS

STATE GROSS DOMESTIC $197,171 million MXP PRODUCT (GDP) 4: (1 % of the National GDP) FOREIGN DIRECT INVESTMENT $11,288 billion USD (FDI) IN THE STATE5:

SOURCE: 1Compiled from own elaboration of the State Ministry of Economy, based on the figures provided by INEGI from Intercensus Survey from INEGI 2015. 2, 3Compiled from own elaboration of the State Ministry of Economy, based on the data provided by the National Survey of Occupancy and Employment 4th Trimester 2018 INEGI 4Compiled from data of the System of National Records, millions of MXP pesos in current prices in Dic 2017 from INEGI 2013 current prices 5 Compiled by own elaboration of State Ministry of Economy database of FDI: Foreign Direct Investment as of (date) Februry 2018 4 Zacatecas Direct Investment Foreign

Year México Zacatecas % México - Zacatecas, Foreign Direct Investment Mining 1999-2018 Total 1999-2018 27,823 7,742.4 27.9 New investments and Reinvesting of utilities 1999 228.2 14.8 6.5 2000 183.1 24.8 13.6 6, 000.0 2001 50.0 1.0 2.0 2002 274.3 136.8 49.9 5, 000.0 2003 142.2 31.0 21.8 2004 348.5 113.4 32.5 4, 000.0 2005 350.6 10.3 2.9 2006 404.9 13.1 3.2 3, 000.0 2007 1,852.4 751.6 40.6 2, 000.0 2008 4,543.0 1,692.2 37.2 Millions of dollars 2009 1,508.8 196.1 13.0 1, 000.0 2010 1,386.8 307.5 22.2 2011 1,090.7 42.0 3.9 0. 0 2012 3,075.7 707.9 23.0

2013 5,588.6 2,561.2 45.8 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2014 2,449.9 533.7 21.8 Year 1999-2018 2015 1,620.1 121.3 7.5 2016 1,150.5 163.1 14.2 Mé xico Zacatecas 2017 1,122.8 252.7 22.5 2018² 1451.9 76.7 5.3 ¹ Source: FDI quart676.7erly by secor, sub-sector, branch, sub-branch and class 21 mining : https://www.gob.mx/se/acciones-y-programas/competitividad-y- normatividad-inversion-extranjera-directa?state=published measured unit in millions of dollars. ² Numbers to the third quarter of 2018 Mining Companies

The mining production of the state is carried out by 17 mining units which concentrate 11 companies, among the main ones we have the following:

5 Economic Data

DYNAMICS OF THE Mining

ECONOMIC SECTORS OF Services for campanies, general population THE STATE, YEAR 2017, households GDP % Manufacturing Industries Agriculture, Livestock, Forestry &Hunting

16.8

14.5

10.2 10.1 9.8 8.6 million MXP

Mining Services for Manufacturing Agriculture, Retail Construction campanies, Industries Livestock, Source: Compiled from own elaboration of the general Forestry State Ministry of Economy, based on the population &Hunting figures and data provided by the National households Accounts System, at current process of base year 2013, INEGI 6 Competitive Advantages

ü State Government support for: - Suppliers’ development - Small miners’ development ü Privileged location and modern infrastructure ü Stable labor force ü Pro-business environment ü Government commitment to maintain favorable conditions for the competitiveness of companies. ü Easy access to national and international markets ü Mining Cluster of Zacatecas ü Quantum, City of Knowledge ü Government State commitment for labour force development ü Availability of renewable energies ü Satellite Internet

7 Privileged Location

SAN JOSÉ PORTS 3040 KM. - MAZATLAN, SIN 598 KM DALLAS MANZANILLO, COL 640 KM 1361 KM. ALTAMIRA, TAMPS 618 KM

VERACRUZ, VER 1,033 KM

LÁZARO CÁRDENAS, MICH 750 KM

BORDERS WITH USA BORDERS S.L.P ALTAMIRAALTAMIRA REYNOSA, TAMPS 662 KM 170 KM. 618 Km REYNOSA, TAMPS 662 KM 618 Km NVO. LAREDO, TAMPS 657KM NVO. LAREDO, TAMPS 657KM SILAO, GTO QUERETARO CD. JUAREZ, CHIH. 1,205 KM 412 KM. CD. JUAREZ, CHIH. 1,205 KM 328 KM. , B. C. 2,249 KM TIJUANA, B. C. 2,249 KM LÁZARO CÁRDENAS, MICH. MATAMOROS, TAMPS. 750 KM 650 KM.

DISTANCESDISTANCES TO:TO: CONNECTIVITY LOS ANGELES, CA 2,542 KM 626 KM CD. MÉXICO 626 KM CHICAGO,LOS ANGELES,IL CA 2,5422,588 KM 327 KM GUADALAJARA 327 KM CHICAGO, IL 2,588 KM ü Very competitive CD. MEXICO (DF) 626 KM AGUASCALIENTES 125 KM CD. MEXICO (DF) 626 KM TIJUANA, B. C. 2,249 KM distribution service cost. MONTERREYMONTERREY 455455KM TIJUANA, B. C. 2,249 KM SAN LUIS POTOSÍ 170 KM SAN JOSÉ, CALIF. 3,040 KM

SILAO, GTO. 328 KM DALLAS, . 1,361 KM

QUERETARO 412 KM LAREDO, TEXAS. 678 KM 8 ZACATECAS International Airport

Zacatecas has an International Airport located at 23 km. from the capital city. 29 km. from Guadalupe and 36 km. from .

INTERNATIONAL AND DOMESTIC FLIGHTS

ü Direct domestic flights to Mexico City (AeroMexico/Viva Aerobus); Tijuana (Volaris). ü International non-stop flights to Dallas, Texas (American Airlines); Los Angeles, , San José, California and Chicago, (Volaris).

9 Privileged Location

10 Human Capital

UNIVERSIDAD AUTÓNOMA DE ZACATECAS (UAZ) WORLD CLASS EDUCATION: INSTITUTO TECNOLÓGICO DE ZACATECAS (ITZ) Zacatecas State Government is the development of its local talent and the ITESM – TEC DE CAMPUS ZACATECAS growth of their skills and abilities. UNIVERSIDAD DE LA VERA-CRUZ (UNIVER) UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO (UNID) UNIVERSIDAD POLITÉCNICA DE ZACATECAS (UPZ) 52,205 ENROLLED STUDENTS UNIVERSIDAD DEL DESARROLLO PROFESIONAL IN PROFESSIONAL LEVEL (UNIDEP) UNIVERSIDAD AUTÓNOMA DE DURANGO (UAD)

52 UNIVERSITIES, TECHNICAL INSTITUTO POLITÉCNICO NACIONAL (IPN) AND HIGHER UNIVERSIDAD TECNOLÓGICA DEL ESTADODE EDUCATION SYSTEMS ZACATECAS (UTEZ) COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA (CONALEP)

11 EDUCATION INSTITUTIONS

MUNICIPALITY EDUCATION INSTITUTIONS OF TECHNICAL AND SUPERIOR LEVEL STUDENTS TRANCOSO COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 823 CBTIS - CENTRO DE BACHILLERATO TECNOLOGICO INDUSTRIAL Y DE SERVICIOS ITESM - INSTITUTO TECNOLOGICO Y DE ESTUDIOS SUPERIORES DE MONTERREY GUADALUPE CONALEP - COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA 13,898 UNID - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO UNIVER - UNIVERSIDAD DE LA VERA-CRUZ UTEZAC - UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS ITSZ - INSTITUTO TECNOLÓGICO SUPERIOR DE ZACATECAS UAZ - UNIVERSIDAD AUTÓNOMA DE ZACATECAS IPN - INSTITUTO POLITÉCNICO NACIONAL UAD - UNIVERSIDAD AUTÓNOMA DE DURANGO CIMAT - CENTRO DE INVESTIGACIÓN EN MATEMÁTICAS ZACATECAS COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 45,552 ITESM – INSTITUTO TECNOLOGICO Y DE ESTUDIOS SUPERIORES DE MONTERREY CONALEP – COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA UNID - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO UNIVER - UNIVERSIDAD DE LA VERA-CRUZ UTEZAC - UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 391 CALERA CECYTEZ - COLEGIO DE ESTUDIOS CIENTÍFICOS Y TECNOLÓGICOS DEL ESTADO DE ZACATECAS 1756 GRAL. ENRIQUE ESTRADA COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 1,472 ITSF - INSTITUTO TECNOLÓGICO SUPERIOR DE FRESNILLO UPZ - UNIVERSIDAD POLITECNICA DE ZACATECAS UNID-FRESNILLO - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO FRESNILLO 14,489 UAD-FRESNILLO UNIVERSIDAD AUTÓNOMA DE DURANGO SEDE FRESNILLO UAF - UNIVERSIDAD AUTÓNOMA DE FRESNILLO COLEGIO DE BACHILLERES 1,462 COLEGIO DE BACHILLERES PLANTEL CHAPARROSA CENTRO DE BACHILLERATO TECNOLOGICOS INDUSTRIAL Y DE SERVICIOS NUM. 104 SOMBRERETE 3,311 INSTITUTO TECNOLOGICO SUPERIOR DE ZACATECAS OCCIDENTE CENTRO DE BACHILLERATO TECNOLOGICO AGROPECUARIO NUM. 88 OJOCALIENTE 1,810 COLEGIO DE BACHILLERES OJOCALIENTE PLANTEL CONALEP 326 MAZAPIL MIGUEL AUZA CENTRO DE SERVICIOS DE EDUCACION MEDIA SUPERIOR A DISTANCIA 583 TLEBACHILLERATO COMUNITARIO PLANTEL TERMINAL PLANTEL CONALEP 326 MAZAPIL MAZAPIL CENTRO DE SERVICIOS DE EDUCACION MEDIA SUPERIOR A DISTANCIA 626 TLEBACHILLERATO COMUNITARIO PLANTEL TERMINAL COLEGIO DE BACHILLERES CHALCHIHUITES 363 TELEBACHILLERATO COMUNITARIO DE PLANTEL JOSE MARIA MORELOS CONCEPCIÓN DEL ORO CENTRO DE BACHILLERATO TECNOLOGICOS INDUSTRIAL Y DE SERVICIOS NUM. 221 473 TOTAL 40 87,928 12 ACADEMIC PROGRAMS RELATED TO MINING ACTIVITY – HIGH LEVEL

NEW COME REGISTRED GRADUATES UNIVERSITY MUNICIPALITY ACADEMIC PROGRAM STUDENTS STUDENTS 2017-2018 2018-2019 2018-2019

UNIVERSIDAD TECNOLÓGICA DEL MINNING ENGINEERING 98 0 170 GUADALUPE ESTADO DE ZACATECAS SUPERIOR TECHNICIAN IN MINING 50 60 110

INSTITUTO TECNOLÓGICO SUPERIOR SOMBRERETE UNIVERSITY SUPERIOR TECHNIQUE 22 42 140 DE ZACATECAS OCCIDENTE

INSTITUTO TECNOLÓGICO SUPERIOR ENVIRONMENTAL ENGINEERING 11 19 87 FRESNILLO DE FRESNILLO MINNING ENGINEERING 58 95 393 UNIVERSIDAD AUTONOMA DE GEOLOGIST 30 24 160 ZACATECAS MINNING – METALURGICAL ZACATECAS 61 62 336 UNIDAD ACADEMICA DE CIENCIAS DE ENGINEERING LA TIERRA ENVIRONMENTAL SCIENCES 32 33 131 UNIDAD PROFESIONAL INTERDISCIPLINARIA DE INGENIERIA ENVIRONMENTAL ENGINEERING 30 67 218 ZACATECAS CAMPUS ZACATECAS DEL INSTITUTO POLITECNICO NACIONAL METALURGICAL ENGINEERING 15 38 111 ENVIRONMENTAL ENGINEERING 1 0 2 UNIVERSIDAD AUTONOMA DE ZACATECAS ENGINEERING ENVIRONMENTAL ZACATECAS 0 0 2 INSTITUTO DE INVESTIGACION PARA ARCHITECTURE LAS CIENCIAS AMBIENTALES ENGINEERING BIOECOLOGY 0 0 2 FORESTRY AND SOIL ENGINEERING 0 1 2 INSTITUTO UNIVERSITARIO DE VALUATION AND ENVIRONMENTAL ZACATECAS 11 8 8 POSGRADOS EN ALTA DIRECCION IMPACT DIPLOMA UNIVERSIDAD AUTONOMA DE ADMINISTRATION AND MINING FRESNILLO 3 10 19 FRESNILLO ECONOMY MASTER DEGREE

TOTAL 422 459 1,891

SOURCE: Ministry of Education (SEDUZAC), Analysis and Dissemination, Dept. of Statistics at the beginning of the 2017-2018 13 ACADEMIC PROGRAMS RELATED TO MINING ACTIVITY – TECHNICAL LEVEL

NEW COME REGISTRED GRADUATES UNIVERSITY MUNICIPALITY ACADEMIC PROGRAM STUDENTS STUDENTS 2017-2018 2018-2019 2018-2019 UNIVERSIDAD TECNOLÓGICA DEL GUADALUPE SUPERIOR TECHNICIAN IN MINING 77 57 136 ESTADO DE ZACATECAS INSTITUTO TECNOLÓGICO SUPERIOR SOMBRERETE SUPERIOR TECHNICIAN IN MINING 36 41 140 DE ZACATECAS OCCIDENTE CENTRO DE BACHILLERATO TECNOLOGICOS INDUSTRIAL Y DE FRESNILLO SUPERIOR TECHNICIAN IN MINING 52 0 96 SERVICIOS NUM. 1

TOTAL 165 98 372

SOURCE: Ministry of Education (SEDUZAC), Analysis and Dissemination, Dept. of Statistics at the beginning of the 2017-2018

14 MINING CORRIDOR

WORKES REGISTERED ECONOMICALLY ACTIVE BEFORE IMSS MUNICIPALITY INHABITANTS ₁ POPULATION ₂ (MEXICAN SOCIAL SECURITY SYSTEM) ₄ 1 9,353 3,192 469 2 OJOCALIENTE 40,740 13,069 4,434 3 MIGUEL AUZA 22,296 7,729 2,385 4 CONCEPCION DEL ORO 12,803 4,680 1,120 GENERAL PANFILO 5 22,346 6,721 616 NATERA 6 ZACATECAS 138,176 57,621 50,485 7 MORELOS 11,493 4,153 4,557 8 MAZAPIL 17,813 6,014 8,119 9 SOMBRERETE 61,188 21,113 4,736 10 FRESNILLO 213,139 77,688 37,909 11 CHALCHIHUITES 10,565 3,372 1,904 TOTAL 559,912 186,222 116,734

1 Source: Compiled from own elaboration of State Ministry of Economy, based on Intercensus Survey from INEGI 2015. ₂ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the National Survey of Occupation and Employment (ENOE-ITER) by INEGI, date consulted: FEB, 2019 ₃ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the National Survey of Occupancy and Employment (ENOE-ITER) INEGI, FEB, 201 ₄ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the IMSS total registered insured employees by municipality, Junuary 2019 15 Investment Opportunities

STRATEGIC SECTORS

METAL-MECHANICAL: AUTOPARTS AND AEROSPACE

RENEWABLE ENERGIES

INFORMATION TECHNOLOGIES

MINING AND METALLURGICAL INDUSTRY

AGRIBUSINESS

TOURISM AND RELATED SERVICES

16 QUANTUM

Quantum City of Knowledge is a space for promoting the scientific and technological development of the region, under a paradigm of continuous innovation, in which research centers, laboratories, technology transfer offices, governmental and private institutions are set up to enhance the economic growth of the State. The objective is to make concur, in a determined territory for that purpose, instances that promote an economy of knowledge under a model known as the triple helix (Government, academy and companies).

Building of Research 2 Land First stage 49,500.00 m Centers, First Stage 1.- Lotification of 13 properties 30,971.82 m2 Area Advances as of 2 2.- Main square ( 42 bedding y 81 benches) December 31 m 3.- 76 Parking boxes 1,310.62 m2 4.- Accesses 6,300.54 m2 2 100 5.- Green areas 1,149.42m Frisco 6.- Roads 9,385.22 m2 % 7.- Vehicular lower bridge Metallurgy 6215 8.- Reforestation of 5,000 trees Research 9.- 3 Gabion walls in river to retain soil Center 2 Second stage 149,938.07 m CIMAT 98% 1.- Lotification of 32 properties 119,997.20 m2 3000 2.- Main square( 60 bedding y 110 benches) 2 Lasec 65% 3.- 72 Parking boxes 1,155.93 m 5231 4.- Accesses 10,931.64 m2 5.- Green areas 981.10m2 Compulogic 70% 2875 6.- Roads 16,872.20 m2 7.- Bridge connection to the first stage Servimolina 10% 935 8.- Reforestation of 3,000 trees 2 Third stage 56,144.28 m Maya Productions 55% 1353 1.- Lotification of 8 properties 40,819.13 m2 2.- Main square ( 40 bedding y 70 benches) IMSS 0% 2 2321 3.- 50 Parking boxes 1,155.93 m 2 Coworking Space 95% 4.- Accesses 5,699.54 m 1 First stage 2 Second stage 3 Third stage 2536 5.- Green areas 3207.70m2 Surface: Surface: Surface: (1st Stage) 2 2 2 2 49,500.00 m 149,938.07 m 56,144.28 m Mexican Space 0% 6.- Roads 5,472.23 m 2461 7.- Bridge connection to the second stage Agency 8.- Reforestation of 3,000 trees 0% Metallurgy 1423 Laboratories IPN 17 MINING IN ZACATECAS

Zacatecas is the 2nd mining producer in Mexico, and the 1st silver producer in the world.

18 19 MINING IN ZACATECAS

COMPANY MINING UNIT MUNICIPALITY PRINCIPAL PRODUCTS

18 BESMER GUALTERIO Source: Own compilation based on administrative records of the Mining Department of the Ministry of Economy, updated February 2018 20 MINING CONCESSIONS IN ZACATECAS

Year Area (Has) Number of Concessions % of área available 2017 1,679,458.78 2263 22.31

22.31 Surface claimed 77.69

Surface available

No. OF RANK COMPANY DEALERS AREA GRANTED (Has) SUM BY GROUP CONCESSIONS 1 GRUPO MEXICO INDUSTRIAL MINERA MEXICO S.A DE C.V. 255 28958.79 28958.79 2 PEÑOLES COMPAÑÍA MINERA LA PARREÑA S.A. DE C. 67 127978.39 PEÑOLES MET-MEX PEÑOLES S.A DE C.V. 17 718.88 PEÑOLES CIA MINERA SABINAS 16 4740.64 133437.91 3 FRESNILLO COMPAÑÍA FRESNILLO S.A. DE C.V. 53 162307.65 162307.65 4 FRISCO MINERA TAYAHUA S.A. DE C.V. 65 29468.5 FRISCO MINERA REAL DE ANGELES S.A. DE C.V. 37 21830.41 51298.91 PANAMERICAN 5 PLATA PANAMERICANA S.A. DE C.V. 40 4311.49 4311.49 SILVER 6 GOLDCORP MINERA PEÑASQUITO 17 34292.71 34292.71 7 CAPSTONE GOLD COZAMIN S.A. DE C.V. 10 368.39 CAPSTONE GOLD CAPSTONE GOLD S.A DE C.V 6 47.42 415.81

21 EXPLORATION MINING PROJECTS IN ZACATECAS 116 PROJECTS

In 18 municipalities : Zacatecas, Mazapil, Morelos, Sombrerete, Chalchihuites, Concepción del Oro, Jiménez del Teúl, Villa de Cos, Pánfilo Natera, Fresnillo, Melchor Ocampo, El Salvador, Noria de Angeles , Vetagrande, Cañitas, Villa Gárcia, Ojocaliente, Pinos, Villa , General F. Murguia, Rio Grande, Miguel Auza, Trancoso, Sain Alto, Jerez, Calera, Jalpa y .

Main minerals: Gold, Silver, Copper, Lead, Zinc, Barite, Manganese, Litium, and Antimony.

22 AVAILABLE MINING PROJECTS

Promoted by the Ministry of 39 Economy of PROJECTS Zacatecas

In 18 municipalities: Juchipila, Pinos, Panuco, Valparaiso, Villa de Coss, Genaro Codina, T. García de la Cadena, Rio Grande, Sombrerete, Fresnillo, Ojocaliente, El Salvador, Mazapil, Francisco R. Murguia, Villanueva, Jerez, Tepechitlan y Trancoso.

Main minerals: Gold, Silver, Copper, Lead, Zinc, Manganese, and Iron.

23 SUPPLIERS DEVELOPMENT

Zacatecas has the support of specialized supplier companies for the mining sector, some of the mining suppliers are located in the Airport Industrial Park and the Industrial Park in Fresnillo.

24 MINING CLUSTER OF ZACATECAS

Date of establishment: September 12, 2012. 1st Mining Cluster in Mexico

The Mining Cluster of Zacatecas, is a non- profit civil association formed by mining industrial and supplier companies from Zacatecas and Central Mexico, academic General Objective of the Mining institutions and governmental institutions. Cluster:

Its purpose is to strengthen the mining • The strengthening of the metal- industry through joint work for the mining industry in Zacatecas and development of its supply chain, innovation central Mexico, through joint work between mining companies, in its processes, an increase in industrial suppliers, State Government of safety, the development of its human capital Zacatecas and academic as well as the attraction of suppliers to institutions. Zacatecas and Central Mexico. 25 MINING CLUSTER OF ZACATECAS

The Cluster's Board of Directors is made up of fourteen members: 7 Mining groups:

2 Government:

2 Academic institutions:

3 Supply companies:

26 COMPATIBLE MINING CENTER COMPATIBLE MINING CENTER

This is a proposal from the Mining Cluster of Zacatecas, as a response to the growing demand of services and suppliers, supported by the “Consejo Zacatecano de Ciencias y Tecnologias” Zacatecas Council of Science and Technology (COZCYT) as well as the “CONACYT”, National Council of Science and Technology.

● This proposal was integrated with the objective that the 46 organizations that form part of this cluster, collaborate jointly in this project, along with 17 experts in this field.

Its main objective is: To design, build, equip and set into operations the Research and Development Center of Technology and Compatibility of the mining sector, focsued mainly on the health áreas, including security for the workers, environmental care, and mining operations in the State of Zacatecas.

28 COMPATIBLE MINING CENTER

• Sustainable Mining Center will increase the competitive advantages, promoting an open dialogue with the communities, which must take place since the initial stages of exploration and development, this will reduce the risk of the projects, as well as provide value to the assets. • With the support of the involved communities in the care of the environment, this brings along the risk minimization of operations stoppage; also, operational continuity is assured, along with labor stability and the generation of profit. IMMEDIATE GOALS

29 Satellite Internet

StarGo is a company from Zacatecas and the only supplier in Mexico that offers high-speed satellite Internet through the last generation of technology for residential customers, Mining Industries, SMEs, Corporations and Government Entities.

ADVANTAGE

ü Quick ü Accessible cost ü 24/7 Technical Support ü Latest technology ü Satellite equipment at no cost

30 Renewable Energy Projects

Zacatecas has a privileged location that allows an optimal development of Eolic and SPV Parks.

TYPE OF PRODUCTION NO. COMPANY PROJECT MUNICIPALITY ENERGY CAPACITY PRODUCTION Zacatecas y 1 BlackRock México La Bufa Wind (In operation) Eolic Guadalupe 130 MW Vientos del Altiplano (In Mazapil y Villa 2 Eolic 100 MW operation) de Cos Enel Green Power Parque Solar Palma Loca (In 3 Mazapil SPV 399.7 MW project). 4 Aldesa Industrial Parque Eólico Pinos (In project). Pinos Eolic 30 MW Parque Eólico Mazapil (In 5 Mazapil Eolic 304 MW Eoliatec / Vestas project) 6 Eólica Cerritos Pinos (In project) Pinos Eolic 75 MW Aldebaran Solar Project (In 7 Reden Solar Villa de Cos SPV 15 MW construction) 8 Helios Generación (In project) Mazapil SPV 150 MW Cemex Energía 9 Tuli Energía (In project) Mazapil SPV 150 MW Mitsui & Co Parque Solar Fotovoltaico Calera 10 Calera SPV 80.3 MW (MPA) (In project) Recursos Solares 11 Parque Solar Pinos (In proyect) Pinos SPV 297 MW PV de México

31 Gas Pipeline - La Laguna Aguascalientes The gas pipeline originates in Texas and will help meet the natural gas requirements of the states of Durango, Zacatecas and Aguascalientes.

The diameter of the pipeline is 42 inches, transporting 1,150 million cubic feet per day.

Length Municipalities of the State of Zacatecas (kilometers) Juan Aldama 26.07 Gral. Francisco R. Murgia 44.98 Río Grande 35.53 Cañitas de Felipe 11.54 Fresnillo 49.89 Panuco 25.47 Veta Grande 6.28 Guadalupe 10.89 Trancoso 7.57 Ojocaliente 14.48 Cuauhtemoc 5.89 Luis Moya 9.78 TOTAL 248.37 32 Zacatecas state Governor Alejandro Tello Cristerna is the head of the Governor´s National Conference Mining Comission (since: February 12, 2018) Mexico´s Mining Industry • 2.9% of the National GDP to year 2016 • $29,222 million pesos of contributions to income tax to year 2016. • $15,601 million dollars in exports to year 2016. • 354,702 direct jobs and 1,773,500 indirect jobs by 2016 • 23 States with mining activity. • 5 States with the highest mining activity in Mexico: 33.27% Zacatecas19.31% 9.90% Durango 7.94% Coahuila 7.61% New Tematic Agenda (considerations): • Management of the Mining Industry • Reconciling the Mining Activity with the 2030 Agenda • Mining as a Strategic Sector • Collaboration between the actors that are involved in the Mining Industry • Presence of Mining in the National Panorama Source: Based on data from the statistical project called "GDP - Activity of Goods and Services, annual since 2003 (detailed)", activity 212 - Mining of metallic and non-metallic minerals, except oil and gas, INEGI. System of National Accounts of Mexico. Account of Goods and Services. Base Year 2013. Series (detailed) 2003-2016. 2016 preliminary, consultation date February 20, 2018 http://www.inegi.org.mx/est/contenidos/proyectos/cn/bs/tabulados.aspx Source: Mining Public Policy Report, section I. Financial Situation, page 5 clause c) third, author Christopher Ávila Mier, CAMIMEX, consultation date February 20, 2018 Source: Based on data from the Economic Information Bank (BIE), External Sector> Merchandise exports by state, sector and subsector of SCIAN activity> 212 Mining of metallic and non-metallic minerals, except oil and gas (Periodicity: Annual), http : //www.inegi.org.mx/sistemas/bie/BuildAllItemsList.aspx? idNodo = 11000470 & schema = & w = 1755 & h = 810, query date February 20, 2018 Mining Public Policy Report, 33 section I. Financial Situation, page 5 subsection c) second, author Christopher Ávila Mier, CAMIMEX, consultation date February 20, 2018 New Tematic Agenda

Focus 1 Main actions Facilitating government incentives for exploration Financing Funds Economic Mining / Technology cluster Development Supplier chains / Schemes for equipment Promote the partnership between companies

Focus 2 Main actions Community needs analysis spaces Social Inclusion Better orientation and application of money from the Mining Fund Greater linkage between higher education and communities

Focus 3 Main actions Adoption of avant-garde sustainable practices Environmental Facilitate academic research with environmental needs in mining sustainability localities

34 Zacatecas, Your Strategic Partner CARLOS BÁRCENA POUS MINISTRY OF ECONOMY OF THE STATE OF ZACATECAS [email protected]