Minera Tres Valles Copper Project Salamanca, Coquimbo Region, Chile

MINERA TRES VALLES COPPER PROJECT SALAMANCA, COQUIMBO REGION, CHILE

NI 43-101 F1 TECHNICAL REPORT MINERAL RESOURCE ESTIMATE, CHLORIDE LEACH PROCESSING, and DON GABRIEL MANTO PIT EXPANSION

Prepared For

Minera Tres Valles Sprott Resource Holdings Inc.

Qualified Persons:

Michael G. Hester, FAusIMM Independent Mining Consultants, Inc.

Gabriel Vera President, GV Matallurgy

Enrique Quiroga Q & Q Ltda.

Report Date: March 29, 2018 Effective Date: March 29, 2018

Minera Tres Valles Copper Project i Salamanca, Coquimbo Region, Chile March 29, 2018

Date and Signature Page

The effective date of this report is March 29, 2018. See Appendix A for certificates of the Qualified Persons.

(Signed) “Michael G. Hester” March 29, 2018 Michael G. Hester, FAusIMM Date

(Signed) “Gabriel Vera” March 29, 2018 Gabriel Vera, QP Date

(Signed) “Enrique Quiroga” March 29, 2018 Enrique Quiroga, QP Date

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project ii Salamanca, Coquimbo Region, Chile March 29, 2018

Table of Contents

1.0 Summary ...... 1 1.1 General ...... 1 1.2 Property Description and Ownership . . . . . 1 1.3 Geology and Mineralization ...... 2 1.4 Exploration Status ...... 3 1.5 Development and Operations ...... 5 1.6 Mineral Resources ...... 7 1.7 Mineral Reserves ...... 9 1.8 Conclusions and Recommendations . . . . . 10 2.0 Introduction ...... 12 2.1 Issuer and Terms of Reference . . . . . 12 2.2 Sources of Information ...... 12 2.3 Qualified Persons and Site Visits . . . . . 13 3.0 Reliance on Other Experts...... 13 4.0 Property Description and Location ...... 14 4.1 Property Location ...... 14 4.2 Land Area and Mining Claim Description . . . . 14 4.3 Agreements and Encumbrances . . . . . 15 4.4 Permit Status ...... 16 5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography . 18 5.1 Access ...... 18 5.2 Climate ...... 18 5.3 Local Resources and Infrastructure...... 18 5.4 Physiography ...... 18 6.0 History ...... 19 7.0 Geologic Setting and Mineralization...... 22 7.1 Regional Geology ...... 22 7.2 District Geology...... 22 7.3 Deposit Geology ...... 27 7.3.1 Papomono ...... 27 7.3.2 Don Gabriel ...... 30 7.4 Mineralization ...... 32 7.4.1 Papomono ...... 32 7.4.2 Don Gabriel ...... 33 8.0 Deposit Types ...... 35 9.0 Exploration ...... 36 9.1 Initial Exploration ...... 36 9.2 Mine-site Exploration ...... 36 9.3 District Targets ...... 37 10.0 Drilling ...... 38

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project iii Salamanca, Coquimbo Region, Chile March 29, 2018

Table of Contents (Continued)

11.0 Sample Preparation, Analyses and Security . . . . . 42 11.1 Sample Preparation ...... 42 11.2 Analysis ...... 42 11.3 QA/QC Programs ...... 43 11.4 Sample Security ...... 43 12.0 Data Verification ...... 45 12.1 Don Gabriel ...... 45 12.2 Papomono ...... 45 13.0 Mineral Processing and Metallurgical Testing . . . . 46 13.1 Acid Heap Leach Process ...... 46 13.1.1 Plant Operation ...... 46 13.1.2 Metallurgical Test Work . . . . . 48 13.1.3 Recovery Model ...... 53 13.1.4 Recovery Curves ...... 54 13.1.5 Acid Leach Recovery Summary . . . . 57 13.2 Chloride Leach Process ...... 59 13.2.1 Chloride Leach Test Program . . . . . 59 13.2.2 Chloride Leach Test Results . . . . . 63 13.2.3 Column and Heap Leach Comparison . . . 66 13.2.4 Impact of Salt Addition in Agglomeration . . . 67 13.2.5 Chloride Presence in Leach Solutions . . . 68 13.2.6 Crushed Ore Screen Size . . . . . 68 13.2.7 Recovery Model ...... 68 13.3.8 Copper Recovery Curves . . . . . 70 13.3.9 Summary of Chloride Leach . . . . . 72 14.0 Mineral Resource Estimates ...... 74 14.1 Mineral Resource ...... 74 14.2 Description of the Block Models . . . . . 81 14.2.1 Don Gabriel ...... 81 14.2.2 Papomono ...... 101 15.0 Mineral Reserve Estimates ...... 133 16.0 Mining Methods ...... 134 16.1 Don Gabriel ...... 134 16.1.1 Dilution and Ore Loss ...... 134 16.1.2 Slope Angles ...... 134 16.1.3 Economic Parameters ...... 134 16.1.4 Mining Phases ...... 136 16.1.5 Mine Production Schedule . . . . . 145 16.1.6 Waste Storage Facilities . . . . . 154 16.1.7 Mining Equipment ...... 157 16.2 Papomono and Don Gabriel Veins...... 157

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project iv Salamanca, Coquimbo Region, Chile March 29, 2018

Table of Contents (Continued)

17.0 Recovery Methods ...... 158 17.1 Current Process Description ...... 158 17.2 Historic Plant Performance ...... 160 17.3 Chloride Leach Process Description . . . . . 162 17.4 Upgrades to Existing Plant...... 164 17.5 Power and Water Requirements . . . . . 165 18.0 Project Infrastructure ...... 166 18.1 Water, Power, Roads and Land . . . . . 166 18.2 Plant Infrastructure ...... 167 18.3 Mine Infrastructure ...... 168 19.0 Market Studies and Contracts ...... 170 20.0 Environmental Studies, Permitting and Social or Community Impact . 172 20.1 Permits and Environmental Licenses . . . . . 172 20.1.1 RCA 012 Manquehua Prospection Tunnel . . . 172 20.1.2 RCA 283 Manquehua Prospection Tunnel Modification . 172 20.1.3 RCA 265 MTV Project . . . . . 173 20.2 Land Easements ...... 173 20.3 Water Rights and Use ...... 173 20.4 Community Relations and Social Licenses . . . . 175 20.5 Health and Safety Performance . . . . . 176 20.6 Mine Closure ...... 176 21.0 Capital and Operating Costs ...... 179 21.1 Capital Costs ...... 179 21.2 Operating Costs ...... 179 22.0 Economic Analysis ...... 179 22.1 Economic Results ...... 179 22.2 Sensitivity Analysis ...... 180 22.3 Royalties ...... 181 22.4 Tax Considerations ...... 181 23.0 Adjacent Properties ...... 183 24.0 Other Relevant Data and Information ...... 183 25.0 Interpretation and Conclusions ...... 184 26.0 Recommendations ...... 185 27.0 References ...... 187

Appendix A. Certificates of Qualified Persons . . . . . 189 Appendix B. Mining Claims ...... 194

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project v Salamanca, Coquimbo Region, Chile March 29, 2018

List of Tables

1-1 Mineral Resources ...... 7 1-2 Mineral Reserves ...... 9 1-3 Recommendations for Ongoing Work . . . . . 11 10-1 Summary of Drilling Data ...... 39 13-1 Copper Ore Crushed and Stacked in the MTV Plant since Startup . . 46 13-2 Origin of Treated Copper Ore between 2010 and October 31, 2017 . . 47 13-3 Copper Recovery Based on Copper Cathode Production . . . 47 13-4 Estimated Recoverable Copper in the Plant on October 31, 2017 . . 48 13-5 Corrected Copper Recovery as of October 31, 2017 . . . . 48 13-6 Copper Head Grades for SGS Column Tests . . . . . 49 13-7 Analysis of Impurities in PLS (September 2017 Composite) . . . 50 13-8 Copper Recovery for the First 3m of the SGS Column Tests (Columns 1-6) 50 13-9 Copper Recovery for the 3m SGS Column Tests (Columns 7-12) . . 50 13-10 Copper Recovery in the Top Meter of the 6m SGS Column Tests (Cols 1-6) 51 13-11 Copper Recovery in the Top Meter of the 3m SGS Column Tests (Cols 7-12) 51 13-12 Head and Tailings Copper Grades for MTV Heap Tests . . . 52 13-13 Head Copper Grades for MTV Column Tests . . . . 52 13-14 Copper Recovery for Heap Tests at ~130 Days of Operation . . 52 13-15 Copper Recovery for Column Tests at ~130 Days of Operation . . 53 13-16 Estimated Material Distribution and Grades for Recovery Model. . . 53 13-17 Estimated Copper Recovery for Papomono and Don Gabriel at 300 Days . 54 13-18 Estimated Combined Copper Recovery for Papomono and Don Gabriel . 54 13-19 Comparison of Copper Recovery between Test Conditions and Extrapolated to 300 Days ...... 56 13-20 Don Gabriel Column Leach Test Conditions – Chloride Leaching. . . 60 13-21 Papomono Column Leach Test Conditions – Chloride Leaching. . . 61 13-22 Don Gabriel and Papomono Heap Leach Test Conditions – Chloride Leaching. 62 13-23 Don Gabriel Column Test Results – Chloride Leaching. . . . 63 13-24 Papomono Column Test Results – Chloride Leaching. . . . 64 13-25 Average of Don Gabriel and Papomono Column Test Results – Chloride Leach. 65 13-26 Don Gabriel and Papomono Heap Test Results – Chloride Leaching. . 66 13-27 Don Gabriel and Papomono Heap and Column Test Results Comparisons - Chloride Leaching ...... 67 13-28 Preliminary Sulfation Test Results ...... 68 13-29 Estimated Recovery for Papomono and Don Gabriel under Chloride Leach Conditions at 120, 140, 160, and 180 Days Leaching . . . 69 14-1 Mineral Resource ...... 74 14-2 Economic Parameters for Mineral Resource Estimates . . . 76 14-3 Don Gabriel Model Rock Codes ...... 83 14-4 Summary Statistics of Assays and Composites in DG Manto-Total Copper 88 14-5 Summary Statistics for Assays in Don Gabriel Veins . . . 91

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project vi Salamanca, Coquimbo Region, Chile March 29, 2018

List of Tables (Continued)

14-6 Summary Statistics for Composites in Don Gabriel Veins . . . 92 14-7 Specific Gravity and Bulk Density for Don Gabriel Units . . . 99 14-8 Mineral Resource for Don Gabriel Veins – 0.64% CuT . . . 100 14-9 Papomono Rock Types ...... 101 14-10 IMC Grade Shells ...... 102 14-11 Cap Grades for Papomono Deposits – Assays . . . . 109 14-12 Summary Statistics of Assays in Grade Shells . . . . 110 14-13 Summary Statistics of Composites in Grade Shells . . . . 111 14-14 Ratio of Soluble Copper to Total Copper by Oxide vs Sulfide Dominant . 113 14-15 Grade Estimation Parameters for Copper . . . . . 122 14-16 Specific Gravity and Bulk Density for Papomono Units . . . 129 15-1 Don Gabriel Mineral Reserve ...... 133 16-1 Don Gabriel Economic Parameters for Pit Design . . . . 135 16-2 Summary of Mining Phases – Salt Leach Case . . . . 137 16-3 Mine Production Schedule ...... 146 16-4 Filling Curve for Don Gabriel Waste Storage . . . . 154 17-1 Historic Summary of Crushing Plant Throughput . . . . 161 17-2 Historic Cathode Production ...... 161 18-1 Mining Equipment Owned by MTV ...... 170 20-1 Land Ownership and Easements ...... 173 20-2 Accident Index. Data from 12/2015 to 12/2016 . . . . 176 20-3 Commitments for Closure and Respective Resolutions . . . 177 20-4 Closure Costs ...... 178 22-1 Economic Results – US Dollars – Copper Price of $2.75/lb . . . 182 22-2 Sensitivity Analysis ...... 183 26-1 Recommendations for Ongoing Work . . . . . 185

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project vii Salamanca, Coquimbo Region, Chile March 29, 2018

List of Figures

1-1 Project Location ...... 2 1-2 Location of Papomono Mineral Deposits . . . . . 4 4-1 Project Location ...... 14 4-2 Property Map ...... 17 7-1 The Cretaceous Belt in Chile ...... 23 7-2 Geologic Map – Illapel District ...... 25 7-3 Regional Map of MTV Project ...... 26 7-4 Papomono Stratigraphic Units ...... 27 7-5 Papomono Structures ...... 29 7-6 Don Gabriel Stratigraphy ...... 30 7-7 Don Gabriel Litho-Structural Map ...... 31 8-1 Location of Stratabound Cu-Ag Deposits in Chile . . . . 35 10-1 MTV Drilling by Year ...... 38 10-2 Distribution of Drilling by Area ...... 39 10-3 Don Gabriel Drilling ...... 40 10-4 Papomon Drilling and Deposit Areas ...... 41 11-1 Procedures for Sample Security as Documented by Snowden . . 44 13-1 Copper Recovery for Heap and Column Tests for Papomono . . 55 13-2 Copper Recovery for Heap and Column Tests for Don Gabriel . . 56 13-3 Copper Recovery for Don Gabriel and Papomono Based on the Copper Recovery Models ...... 57 13-4 Copper Recovery for Don Gabriel Columns Tests under Chloride Leaching Conditions ...... 70 13-5 Copper Recovery for Papomono Column Tests under Chloride Leaching Conditions ...... 70 13-6 Copper Recovery for Don Gabriel Column Tests, Unscaled and under Chloride Leaching Conditions ...... 71 13-7 Copper Recovery for Papomono Column Tests, Unscaled and under Chlorine Leaching Conditions ...... 71 13-8 Copper Recovery for Don Gabriel and Papomono under Chloride Leaching Conditions ...... 72 14-1 Don Gabriel Manto Resource Cone Shell...... 78 14-2 PPM North Resource Cone Shell ...... 79 14-3 Cumbre Resource Cone Shell ...... 80 14-4 Don Gabriel Rock Types on Section 10 . . . . . 83 14-5 Don Gabriel Veins ...... 84 14-6 Probability Plot of Assays in Don Gabriel Manto – Total Copper . . 86 14-7 Probability Plot of 5m Composites in Don Gabriel Manto – Total Copper . 86 14-8 Oxide vs Sulfide Dominant Assays in Don Gabriel Manto . . . 87 14-9 Probability Plot of Assays in Don Gabriel Veins – Total Copper . . 89 14-10 Probability Plot of 5m Composites in Don Gabriel Veins – Total Copper . 89 14-11 Oxide vs Sulfide Dominant Assays in Don Gabriel Veins . . . 90 14-12 Don Gabriel Manto Variogram – Along Strike . . . . 94

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project viii Salamanca, Coquimbo Region, Chile March 29, 2018

List of Figures (Continued)

14-13 Total Copper Grades for Don Gabriel Manto for Section 10. . . 95 14-14 Probability Plot of Average Distance to Nearest 4 Holes – DG Manto . 97 14-15 Resource Classification for Don Gabriel Manto on Section 10. . . 98 14-16 Massivo Deposit and Drilling ...... 103 14-17 Massivo Deposit – Rock Types and Grade Shell on Section 30 . . 104 14-18 PPM South Deposit and Drilling ...... 105 14-19 PPM South Deposit – Rock Types and Grade Shell on Section 18 . . 106 14-20 Cumbre Deposit and Drilling ...... 107 14-21 Cumbre Deposit – Rock Types and Grade Shell on Section 34 . . 108 14-22 Probability Plot of Assays in Massivo Grade Shell – Total Copper . . 112 14-23 Probability Plot of Assays in PPM South Grade Shell – Total Copper . 112 14-24 Oxide vs Sulfide Dominant Assays in Massivo . . . . 114 14-25 Oxide vs Sulfide Dominant Assays in PPM South . . . . 115 14-26 Massivo Copper Variogram – Steep Zone – Along Strike . . . 117 14-27 Massivo Copper Variogram – Steep Zone – Down Dip . . . 118 14-28 PPM South/Connection Copper Variogram – Along Strike . . . 119 14-29 PPM South/Connection Copper Variogram – Down Dip . . . 120 14-30 Total Copper on Massivo Cross Section 30 . . . . . 123 14-31 Total Copper on PPM South Cross Section 18 . . . . 124 14-32 Probability Plot of Average Distance to Nearest 3 and 4 Holes – Massivo . 125 14-33 Probability Plot of Average Distance to Nearest 3 and 4 Holes – PPM South 126 14-34 Resource Classification on Massivo Section 36 . . . . 127 14-35 Resource Classification on PPM South Section 18 . . . . 128 14-36 Oxide vs Sulfide Dominant Blocks for Massivo Section 36 . . . 130 14-37 Oxide vs Sulfide Dominant Blocks for Mantos Connection Section 36 . 131 16-1 Location of the TetraTech Mining Phases . . . . . 138 16-2 Mining Phase 2 ...... 139 16-3 Mining Phase 3 ...... 140 16-4 Mining Phase 4 ...... 141 16-5 Mining Phase 5 ...... 142 16-6 Mining Phase 6 ...... 143 16-7 Mining Phase 7 ...... 144 16-8 End of 2018 ...... 147 16-9 End of 2019 ...... 148 16-10 End of 2020 ...... 149 16-11 End of 2021 ...... 150 16-12 End of 2022 ...... 151 16-13 End of 2023 ...... 152 16-14 End of 2024 ...... 153 16-15 Don Gabriel Waste Storage Facility ...... 155 16-16 Final Don Gabriel Pit and Waste Storage Facility . . . . 156 17-1 Crusher Flowsheet ...... 158 17-2 Flowsheet for Agglomerator and Heap Leaching . . . . 159

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project ix Salamanca, Coquimbo Region, Chile March 29, 2018

List of Figures (Continued)

17-3 Flowsheet for SXEW Plant ...... 160 18-1 Main Infrastructure in MTV Mine/Plant Complex . . . . 166 18-2 Satellite Image Showing Main Infrastructure in the Quilmenco Property . 167 18-3 Infrastructure of Papomono Mine ...... 169 20-1 Water Rights in MTV ...... 174 20-2 MTV Historic Average Water Consumption per Tonne of Ore. . . 175 20-3 Foundation MTV Projects, 2015 ...... 175

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 1 Salamanca, Coquimbo Region, Chile March 29, 2018 1.0 Summary

1.1 General

The purposes of this Technical Report are as follows:

 Develop an NI 43-101 compliant Mineral Resource estimate for the Don Gabriel and Papomono mineral deposits,  Present the results of a Preliminary Feasibility Study for the implementation of chloride media leaching, and  Present a Feasibility Study for the expansion of the Don Gabriel Manto open pit.

This work commenced during September 2017 and was completed during March 2018.

1.2 Property Description and Ownership

Minera Tres Valles SpA (“MTV”) is located in the southern part of the Coquimbo Region, in the central portion of Chile. Figure 1-1 shows the locations. It corresponds to the narrowest part of the country, with only 90km from the coast to the Argentine border. The mine-plant complex is located around the borderline between the counties of Salamanca and Illapel, both of which are part of the Choapa Province.

The mines are located between latitude 31o39′50″ S and 31o42′20″ S and longitude 70o55′00″ W and 70o57′35″ W, while the plant is around the coordinates 31o43′43″ S and 71o00′45″ W.

There are two types of mining concessions in Chile, exploration concessions and exploitation concessions. With exploration concessions, the titleholder has the right to carry out all types of exploration activities within the area of the concession. Exploration concessions can overlap, but only the titleholder with the earliest dated exploration concession over the area as indicated by their identification (ROL) number, can exercise these rights. For each exploration concession, the titleholder must pay an annual fee per hectare to the Chilean Treasury. Exploration concessions have duration of two years. At the end of this period, the concession may be renewed for 2 more years, in which case at least 50 % of the surface area must be renounced; or converted, in total or in part, into exploitation concessions. With exploitation concessions, the titleholder has the right to explore and exploit the minerals located within the concession area and to take ownership of the extracted minerals. Exploitation concessions can overlap, but only the titleholder with the earliest dated exploitation concession over the area can exercise these rights. The titleholder must pay an annual fee to the Chilean Treasury of approximately 1/10 of the Unidad Tributaria Mensual (“UTM”), at this time about US$ 7.88 per hectare. Exploitation concessions are of indefinite duration, and therefore do not expire. Concession owners do not necessarily have surface rights to the underlying land; however, they do have the right to explore or exploit the concession.

Figure 4-2 of the Technical Report shows the current status of the mining claims. A list of the claims is included in the appendix of the Technical Report. MTV has the mining rights to 229 exploitation concessions (46,378 ha), 215 of which are fully constituted and registered (44,185

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 2 Salamanca, Coquimbo Region, Chile March 29, 2018 ha) and 14 (2,193 ha) that are under administrative process, waiting perfection, performing topographic survey, or are “second floor” covering of previous MTV concessions in order to close small gaps (“demasías”). All relevant areas in the mine and the plant are fully covered and rights-assured by exploitation definitive concession (in Chile the exploitation concessions have no term). There are three concessions with partial superposition with third-parties, none of them relevant for the current exploitation of the project.

Figure 1-1. Project Location, MTV 2018

1.3 Geology and Mineralization

As Figure 1-1 shows the MTV Project consists of two main deposit areas about 5km apart. The Don Gabriel area hosts the Don Gabriel Manto and Don Gabriel Vein deposits. The Papomono (“PPM”) area consists of seven known deposits: Massivo, Cumbre, Mantos Connection, PPM South, Mantos North, PPM North, and Epithermal. Figure 1-2 shows the relative location of the various PPM deposits. Mantos North and the Cumbre pit were heavily exploited during the Vale tenure.

MTV is located in the prolific Cretaceous belt of Chile, which hosts a vast amount of copper deposits, ranging from small to world-class size. This belt presents a variety of deposit types, the most common being the IOCG (Iron Oxide Copper Gold) and the Cu-Ag stratabound, also called “mantos”. The first type of mineralization, IOCG, is more common in the Atacama Region and throughout the north of Chile. These deposits can reach gigantic sizes, such as Candelaria, which in 21 years has produced 3.6Mt of payable copper. On the other hand, the stratabound, “manto-type” deposits are more common from Atacama Region to the south. The largest examples are El Soldado and Michilla. There are also some Cu-Au porphyries in the Cretaceous belt, which the largest is Andacollo. Finally, minor skarn and Cu-Au veins are found all over the belt.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 3 Salamanca, Coquimbo Region, Chile March 29, 2018 volcanic rock forms a thick package of flat layering or gently dipping beds of lava, pyroclastic and epiclastic rocks from middle to upper Cretaceous.

Lithostratigraphically, the volcanic rocks belong to two main units. The slopes of the valleys form pediments of the Quebrada Marquesa Formation, from the Barremian-Albian age. In the Salamanca-Illapel region the predominance is the Quellen Member, which is characterized by an intercalation of andesitic lava, volcanic breccias and agglomerates, with subordinate sandstones. Overlying it, in unconformity relation, is the Viñita Formation, of Upper Creataceous age. It is generally horizontal bedding and this attitude is demonstrated by characteristic plateaus (tableland) geomorphologies like Llanos de Talhuen, between Choapa and Chalinga rivers and Cerro Carrizo-Los Linderos, north of Chalinga Valley. Its limits also form cliffs and escarpments. The basal zone is predominately oxidized levels of sandstones and conglomerates (Sta. Virginia Mb) while near the top lava and volcanoclastics dominates (Rio Manque Mb). Besides the obvious geomorphologic distinction, the Viñita Fm. stands out by its reddish colors, contrasting with dominant gray tones from the Quebrada Marquesa Formation.

Remnants of Tertiary tuffs can be seen forming isolated outcrops in the upper parts of the plateau while quaternary coverage fills the E-W orientated main valleys.

At MTV, the Quebrada Marquesa Fm is the main host rock for stratabound copper mineralization, and in the Viñita Fm only some skarns, minor veins or manganese beds are found.

In district scale most of the known Manto-type deposits are close to the west regional fault, called the Manquehua Fault. The Llimpo Fault, to the east, is less evident and only skarn or vein copper deposits have been found to date.

1.4 Exploration Status

There has been no significant exploration since the Vale tenure. Currently, the main development priorities are the expansion of production from the Don Gabriel Manto open pit, and conducting a pre-feasibility study of the Papomono (“PPM”) Massivo to support a development decision.

Once these priorities are met, IMC anticipates additional exploration drilling in known deposits, including the Don Gabriel Veins, the Epithermal Vein, Cumbre, and others to upgrade inferred mineral resource to measured and indicated mineral resource.

There are also additional known targets to examine on the MTV claim block. Most of these are identified through geophysical signatures.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 4 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 1-2. Location of Papomono Mineral Deposits, IMC 2018 INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 5 Salamanca, Coquimbo Region, Chile March 29, 2018

1.5 Development and Operations

MTV is a grassroots discovery made by Vale in 2005. After assessing some opportunities, a 3.5- year term purchase option contract was signed in March 2005 with Minera Werenfried for a block of 25,000 ha of mining properties in the Choapa Province. Field reconnaissance identified several albite-rich rocks with chalcocite and copper oxide mineralization that was being exploited by artisanal miners. The high concentration of copper occurrences aligned through a 6 km structure in the Manquehua Valley led to the interpretation of potential significant mineral deposits lying underneath.

After a few years of exploration, drilling, and evaluation, the project was approved by Vale’s board for construction in 2008, triggering the purchase of 90% of the asset from Minera Werenfried. Total investment on the project during project and operation stages was US$ 241 million. The designed crushing and SX-EW plant had a design capacity of 5,500 tpd ore and 50.7 tpd copper cathodes respectively.

In December 2010 the plant was inaugurated and in February 2011 the first cathodes were produced. The plant feed was from Papomono underground, the Cumbre open pit and Enami- purchased ore. In 2012 a third-party ore purchase system was implemented, sourcing ore from local miners.

The road to Don Gabriel was finished in June 2012, allowing the open pit to start production. After several adjustments and improvements in the crushing plant, maximum capacity was reached during the second half of 2012, and eventually surpassed 5,600 tpd during 10 months. A monthly production of 1,330 tonnes of cathodes was reached in November 2012.

At the end of 2012 Vale decided to sell MTV, among other international assets. New projects were frozen from this moment on, except for the quaternary crusher, which was already being built and was designed to reduce the size of crushed material to ¼”, mainly targeting future Don Gabriel chalcocite material. The new crusher was commissioned in August 2013.

The selling process was completed in December 2013, when the Vecchiola Group acquired 100% of the asset. Soon after, Vecchiola decided to shut down the mines, downsize its workforce and focus initially on the tolling process in order to make the turnaround while re- evaluating the whole operation. In 2015 a reassessment of the reserve base, mining methods and cost effectiveness was performed, and in October small-scale production resumed at on-site deposits in a trial stage and a new long-term mine plan was established. During 2016 a set of metallurgical tests were performed in order to test the potential increase in recovery using oxidant agents. Presently, only one daily shift is operating, occupying around 30% of the plant capacity.

In October 2017 Vecchiola sold 70% of the common stock to SRH Chile SpA, a subsidiary of Sprott Resource Holdings Inc., a Canadian natural resources company listed on the Toronto Stock Exchange.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 6 Salamanca, Coquimbo Region, Chile March 29, 2018 Between December 2010 and October 2017 MTV has mined and processed 4.22 million tonnes of ore at an average grade of 0.90% Cu. Considering the external purchases and tolling, a total of 6.14 million tonnes averaging 1.22% Cu was processed in its plant, resulting in 59,991 tonnes of copper cathodes.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 7 Salamanca, Coquimbo Region, Chile March 29, 2018

1.6 Mineral Resources

Table 1-1 presents the mineral resource for the Minera Tres Valles Copper Project.

Table 1-1. Mineral Resource Mining CuT CuT CuS CuCn CuR Copper Resource Class Method Cutoff(%) Ktonnes (%) (%) (%) (%) (klbs) Measured Mineral Resource Don Gabriel Manto OP 0.20 983 0.824 0.128 0.591 0.105 17,857 Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0 PPM Massivo UG 0.34 2,449 1.941 0.466 1.339 0.136 104,796 PPM Cumbre OP 0.19 266 0.485 0.069 0.378 0.037 2,844 PPM Cumbre UG 0.34 0 0.000 0.000 0.000 0.000 0 PPM Mantos Connection UG 0.59 262 1.266 0.414 0.667 0.185 7,312 PPM South UG 0.58 634 1.275 0.244 0.949 0.082 17,821 Epithermal UG 0.65 0 0.000 0.000 0.000 0.000 0 PPM North OP 0.19 102 0.956 0.584 0.222 0.150 2,150 North Manto UG 0.58 834 1.082 0.498 0.522 0.063 19,894 Measured Mineral Resource 5,530 1.416 0.366 0.939 0.111 172,674 Indicated Mineral Resource Don Gabriel Manto OP 0.20 5,476 0.828 0.110 0.625 0.093 99,959 Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0 PPM Massivo UG 0.34 891 1.623 0.428 1.082 0.113 31,881 PPM Cumbre OP 0.19 2,388 0.540 0.096 0.388 0.056 28,429 PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699 PPM Mantos Connection UG 0.59 1,287 1.017 0.325 0.466 0.227 28,856 PPM South UG 0.58 989 0.998 0.319 0.583 0.096 21,760 Epithermal UG 0.65 509 0.980 0.338 0.323 0.320 10,997 PPM North OP 0.19 250 0.999 0.571 0.293 0.135 5,506 North Manto UG 0.58 633 0.967 0.441 0.459 0.067 13,495 Indicated Mineral Resource 12,774 0.868 0.200 0.561 0.108 244,581 Meas/Ind Mineral Resource Don Gabriel Manto OP 0.20 6,459 0.827 0.113 0.620 0.095 117,816 Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0 PPM Massivo UG 0.34 3,340 1.856 0.456 1.270 0.130 136,676 PPM Cumbre OP 0.19 2,654 0.534 0.093 0.387 0.054 31,273 PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699 PPM Mantos Connection UG 0.59 1,549 1.059 0.340 0.500 0.220 36,168 PPM South UG 0.58 1,623 1.106 0.290 0.726 0.091 39,581 Epithermal UG 0.65 509 0.980 0.338 0.323 0.320 10,997 PPM North OP 0.19 352 0.987 0.575 0.272 0.139 7,656 North Manto UG 0.58 1,467 1.032 0.473 0.495 0.065 33,389 Meas/Ind Mineral Resource 18,304 1.034 0.250 0.675 0.109 417,255 Inferred Mineral Resource Don Gabriel Manto OP 0.20 79 0.698 0.501 0.123 0.074 1,216 Don Gabriel Veins UG 0.64 2,020 1.331 0.137 1.043 0.151 59,273 PPM Massivo UG 0.34 22 2.643 0.415 1.977 0.251 1,282 PPM Cumbre OP 0.19 537 0.664 0.167 0.416 0.081 7,861 PPM Cumbre UG 0.34 298 0.530 0.066 0.426 0.038 3,482 PPM Mantos Connection UG 0.59 117 0.792 0.282 0.184 0.325 2,043 PPM South UG 0.58 111 0.947 0.399 0.379 0.168 2,317 Epithermal UG 0.65 223 1.011 0.476 0.207 0.328 4,970 PPM North OP 0.19 13 2.903 0.496 2.227 0.180 832 North Manto UG 0.58 37 1.387 0.702 0.387 0.298 1,131 Inferred Mineral Resource 3,457 1.108 0.188 0.770 0.149 84,408 INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 8 Salamanca, Coquimbo Region, Chile March 29, 2018 The mineral resource estimate is as of January 1, 2018 and is inclusive of the mineral reserves. Measured and indicated mineral resources amount to 18.3 million tonnes at 1.034% total copper (“CuT”) for 417.3 million contained pounds. Inferred mineral resource is an additional 3.46 million tonnes at 1.108% total copper for 84.4 million contained pounds. The table also shows grades for acid soluble copper (“CuS”), cyanide soluble copper (“CuCn”), and residual copper (“CuR”) since these components are used for metal recovery calculations.

To establish “reasonable prospects for eventual economic extraction” as required by NI 43-101, estimated unit costs for mining, processing, G&A, and solvent extraction/electrowinning (“SXEW”), as well as process recoveries have been developed to calculate appropriate cutoff grades for mining. The mineral resources are based on a copper price of US$ 3.30 per pound of finished copper.

Process costs and recoveries are based on crushing and heap leaching with sulfuric acid. It is also planned that salt will be added to the leach solutions to add chlorine ions to assist oxidation and dissolution, particularly of the chalcocite. This has been termed the “salt leach case or chloride leach case”. With the salt leach process, the average copper recovery is estimated at about 87% for the Don Gabriel Manto and Veins. The copper recovery for the various PPM deposits range from 85% for the Epithermal vein to 90% for Massivo, based on variations in the acid soluble, cyanide soluble, and residual copper components of the resource. The crushing, agglomeration, and leaching costs are estimated at $9.73 per tonne and SX-EW costs are estimated at $0.19 per pound copper.

It is assumed that the Don Gabriel Manto, PPM North and a portion of Cumbre will be mined by open pit methods by a mining contractor. Estimated contract mining costs are $2.35 and $2.15 per tonne for ore and waste respectively based on a quotation from a recognized Chilean contract mining company. This estimate includes the cost for geology, mine engineering, and ore control.

The ore haulage cost is estimated as $2.21 per tonne for Don Gabriel and $1.76 for Papomono, and is based on a contractor quotation. The one-way haulage distances are about 17km from Don Gabriel and 12km from Papomono.

The mineral resources for Don Gabriel Manto, PPM North and Cumbre are tabulated inside Lerchs-Grossman (LG) shells run with the economic and recovery parameters. Measured, indicated, and inferred mineral resources were allowed to contribute to the economics to develop the shells.

The estimated internal cutoff grades for the Don Gabriel Manto, PPM North, and Cumbre pits are 0.20%, 0.19% and 0.19% total copper respectively. Internal cutoff grade applies to blocks that have to be removed from the pit, so mining is a sunk cost. The blocks only have to pay processing, ore haulage, G&A, SXEW, and the $0.20 differential between ore and waste mining cost. The resources for the open pits on Table 1-1 are based on internal cutoff grade.

For the underground deposits proposed underground mining methods were selected for each deposit and approximate mining costs for the various methods estimated. The proposed methods and costs are:

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 9 Salamanca, Coquimbo Region, Chile March 29, 2018 Block Caving Massivo, Cumbre $8.40 per ore tonne Front Caving PPM South, Connection, North Manto $22.00 per ore tonne Sub-level Stoping DG Veins, Epithermal $24.00 per ore tonne

There is a portion of Cumbre beneath the potential open pit that might be amenable to underground mining. Estimated breakeven cutoff grades for each underground deposit are shown on Table 1-1.

The mineral resources are in-situ estimates. IMC has not included any dilution or ore loss assumptions in the estimates. This will be done during the evaluation of potential mineral reserves.

The mineral resources are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For Mineral Resources and Mineral Reserves" adopted by the CIM Council (as amended, the "CIM Definition Standards") in accordance with the requirements of National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101"). Mineral reserve and mineral resource estimates reflect the reasonable expectation that all necessary permits and approvals will be obtained and maintained.

There is no guaranty that any of the mineral resources will be converted to mineral reserve. There is also no guaranty that any of the inferred mineral resources will be upgraded to measured or indicated mineral resource or to mineral reserve.

IMC does not believe that there are significant risks to the mineral resource estimates based on environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors. The project is in a jurisdiction friendly to mining and has operated in the past and is currently operating at a low level of production. The most significant risks to the mineral resource are related to economic parameters such as prices lower than forecast, recoveries lower than forecast, or costs higher than the current estimates. There could also be geologic risk if additional drilling reduces the current resource estimates or results in more erratic deposit geometries that prove difficult to mine.

1.7 Mineral Reserves

Table 1-2 presents the mineral reserve for the Don Gabriel Manto. The proven and probable mineral reserve amounts to 5.2 million tonnes at 0.814% total copper for 92.7 million contained copper pounds. Recoverable copper is estimated at 80.5 million pounds based on an average recovery of 86.9%. The mineral reserve is effective as of January 1, 2018.

Table 1-2. Don Gabriel Mineral Reserve Cont. Payable CuT CuS CuCn CuR Copper Copper Ktonnes (%) (%) (%) (%) (klbs) (klbs) Mineral Reserve Proven Mineral Reserve 898 0.800 0.127 0.572 0.100 15,827 13,749 Probable Mineral Reserve 4,270 0.817 0.110 0.615 0.092 76,871 66,782 Prov/Prob Mineral Reserve 5,168 0.814 0.113 0.607 0.094 92,698 80,531

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 10 Salamanca, Coquimbo Region, Chile March 29, 2018

The mineral reserve is based on an open pit mine plan and mine production schedule developed by IMC at cutoff grade of 0.25% total copper. The mineral reserve is based on a copper price of US$ 2.75 per pound. Measured mineral resource in the mine production schedule was converted to proven mineral reserve, and indicated mineral resource was converted to probable mineral reserve. Inferred mineral resources were treated as waste. Ore loss and dilution assumptions are also incorporated into the estimate.

The mineral reserves are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For Mineral Resources and Mineral Reserves" adopted by the CIM Council (as amended, the "CIM Definition Standards") in accordance with the requirements of National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101"). Mineral reserve and mineral resource estimates reflect the Company's reasonable expectation that all necessary permits and approvals will be obtained and maintained.

IMC does not believe that there are significant risks to the mineral reserve estimate based on environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors. The project is in a jurisdiction friendly to mining and has operated in the past and is currently operating at a low level of production. The most significant risks to the mineral resource are related to economic parameters such as prices lower than forecast, recoveries lower than forecast, or costs higher than the current estimates. The Don Gabriel mineral reserve also assumes a positive preliminary feasibility study and production decision for the Papomono Massivo deposit. Some of the key economic parameters depend on higher production rates than the Don Gabriel pit will provide by itself.

1.8 Conclusions and Recommendations

The goal of this Technical Report was to present an NI 43-101 compliant Mineral Resource estimate for all the Don Gabriel and Papomono mineral deposits, a Preliminary Feasibility Study for the implementation of chloride media leaching, and a Feasibility Study for the expansion of the Don Gabriel Manto open pit, for the MTV property located near Salamanca, Chile. The highlights for these items are summarized as follows:

Updated Mineral Resource Estimate

 Total measured and indicated mineral resource of 18.3 million tonnes at 1.03% CuT containing 417 million pounds of copper.  Total inferred mineral resource of 3.5 million tonnes at 1.11% CuT containing 84.4 million pounds of copper.

Salt Leach Preliminary Feasibility Study

 Potential to increase copper recoveries by 10%, up to a 40% reduction in the leaching cycle time, and up to 40% reduction in sulfuric acid consumption.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 11 Salamanca, Coquimbo Region, Chile March 29, 2018  Estimated capital cost of US$6.9 million, which includes the activities from detailed engineering to the end of construction.  Approximately 11 months to implement.  Less than two year payback.

Don Gabriel Manto Feasibility Study

 Almost triples production from the Don Gabriel Manto open pit.  Mine plan based on Mineral Reserves of 5.17 million tonnes at 0.81% CuT at a copper cut-off grade of 0.25%.  Produce approximately 14 million pounds of copper per year over a six-year reserve life.  The expansion could commence as early as the 2nd quarter of 2018.

The Mineral Reserves and Mineral Resource estimates for the MTV property are effective as of January 1, 2018.

IMC recommends the following work to advance the MTV project:

 A Preliminary Feasibility Study should be conducted for the Papomono Massivo deposit to develop additional mineral reserves and begin exploitation of the deposit.  A Preliminary Economic Analysis should be conducted for Cumbre, PPM South, Mantos Connection, North Mantos, PPM North, Epithermal, and Don Gabriel veins to define possible mining methods and additional drilling and studies that are required to upgrade the mineral resources to mineral reserves.  The Don Gabriel pit expansion should commence with stripping in phases 4 and 5.  The plant should be upgraded to accommodate the salt leaching process.

Table 1-3 shows the estimated costs for these items, which amounts to US$ 13.1 million.

Table 1-3. Recommendations for Ongoing Work Cost (US$x1000) Papomono Massivo Preliminary Feasibility Study $292 Preliminary Economic Analysis – Additional Deposits $135 Don Gabriel Pit Expansion – Waste Stripping $5,740 Upgrade Plant to Chloride Leach Process $6,898 TOTAL $13,065

The recommendation to commence the expansion of the Don Gabriel pit is based on the economic analysis presented in the Technical Report. The cost is based on an estimate of 2.67 million tonnes of pre-strip waste during 2018 at the unit cost of $2.15 per tonne. Phase 5 stripping is expected to commence very soon after the start of phase 4 stripping, and it therefore not contingent upon it.

The economic analysis also indicates the plant upgrade to the chloride leach process can be justified based on Don Gabriel recovery results alone.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 12 Salamanca, Coquimbo Region, Chile March 29, 2018

2.0 Introduction

2.1 Issuer and Terms of Reference

This Technical Report is issued to Sprott Resource Holdings Inc. (“SRHI”) and their subsidiaries SRH Chile SpA and Minera Tres Valles SpA (“MTV”). SRHI owns 70% of the common shares of MTV. This report was prepared by Independent Mining Consultants Inc. (“IMC”) of Tucson, Arizona, USA, and Propipe S.A. (“Propipe”) of Chile.

The purposes of this Technical Report are as follows:

 Develop an NI 43-101 compliant Mineral Resource estimate for all the Don Gabriel and Papomono mineral deposits,  Present the results of a Preliminary Feasibility Study for the implementation of chloride media leaching, and  Present a Feasibility Study for the expansion of the Don Gabriel Manto open pit.

This work commenced during September 2017 and was completed during March 2018.

IMC’s scope of work for the project is summarized as follows:

 Audit the drillhole databases for the Don Gabriel and Papomono deposit areas,  Develop mineral resource block models for the two Don Gabriel, and seven Papomono mineral deposits,  Estimate NI 43-101 compliant mineral resources for the Don Gabriel and Papomono deposits,  Develop an operational mine plan for the expansion of the Don Gabriel Manto open pit, and  Estimate mineral reserves for the Don Gabriel Manto.

Propipe’s scope of work is summarized as follows:

 Review existing copper leaching recovery data from commencement of operations  Review available leaching tests based on chloride (salt) leaching,  Estimate copper recoveries based on salt leaching,  Develop engineering plans to convert the existing acid leach plant to the salt leach process, and  Estimate the capital cost for the plant conversion.

2.2 Sources of Information

The primary sources of information used for this study include:

 The digital drillhole databases for Don Gabriel and Papomono. These were developed during the Vale tenure and maintained by MTV, INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 13 Salamanca, Coquimbo Region, Chile March 29, 2018  Original assay certificates for a significant number of the holes,  Various geologic solids that were developed (interpreted) by MTV geologists,  An optimization study for the Don Gabriel pit conducted by Tetra Tech,  Various reports on sampling methodology, quality control and quality assurance (QA/QC), geologic setting, exploration activities and results, resource modeling, geotechnical and slope stability, mine planning, and economic evaluations were provided for the study. They were developed by Vale, MTV, and other consultants.  Various reports on metallurgical testing, process recovery, and mineral processing that were developed by Vale, MTV, and other consultants.

IMC and Propipe reviewed the data and only used data that was deemed reliable for this report.

The resources models were generated using the Leapfrog Implicit Modeling software, MineSight®, and IMC proprietary software. Tetra Tech performed an optimization study using Geovia Whittle® Strategic Planning software.

2.3 Qualified Persons and Site Visits

Michael G. Hester, Vice President and Principal Mining Engineer for IMC, is an independent Qualified Person. Mr. Hester is responsible for the mineral resource estimates, the mineral reserve estimate, the Don Gabriel mine plan, and the overall report. Mr. Hester visited the site in May 17-18, 2017 and September 20-21, 2017 for about a day and a half for each visit.

Gabriel Vera of GV Metallurgy (“GV”), Chile, is an independent Qualified Person. Mr. Vera is responsible for the certification of historic recoveries, as well as the estimation of metallurgical recoveries for the chloride leach process, Section 13 of the report. Mr. Vera visited the site on March 23, 2018.

Enrique Quiroga of Q & Q Ltda. (“Q&Q”), Chile, is an independent Qualified Person. Mr. Quiroga is responsible for the engineering plans and cost estimate for the conversion of the plant to the chloride leach process, Section 17 of the report. Mr. Quiroga has visited the site many times, the most recent on June 27, 2017.

This report is in metric units of measure. However quantities of copper metal are often expressed in Imperial (or US) pounds since prices are typically quoted in those units on international markets. Currency is expressed in US dollars as of the 1st quarter of 2018.

3.0 Reliance on Other Experts

IMC is not qualified to audit property rights in Chile and is relying on the report “Resguardo Mensual Concesiones Mineras Proyecto Sociedad Contractual Minera Tres Valles” by Terradap Chile and dated March 3, 2018.

IMC also did not conduct an independent environmental audit for this project. Section 20 was prepared by MTV under the supervision of Sebastian Cortes, a forest engineer with 10 years of

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 14 Salamanca, Coquimbo Region, Chile March 29, 2018 experience in environmental control and management in public and private sectors. This responsibility includes health & safety, environmental studies, permits and community relations aspects of the report. The MTV project is operating and it is reported to IMC that all the required permits are in place.

4.0 Property Description and Location

4.1 Property Location

MTV is located in the southern part of the Coquimbo Region, in the central portion of Chile. Figure 4-1 shows the locations. It corresponds to the narrowest part of the country, with only 90km from the coast to the Argentine border. The mine-plant complex is located around the borderline between the counties of Salamanca and Illapel, both of which are part of the Choapa Province.

Figure 4-1. Project Location, MTV 2018

4.2 Land Area and Mining Claim Description

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 15 Salamanca, Coquimbo Region, Chile March 29, 2018 to explore and exploit the minerals located within the concession area and to take ownership of the extracted minerals. Exploitation concessions can overlap, but only the titleholder with the earliest dated exploitation concession over the area can exercise these rights. The titleholder must pay an annual fee to the Chilean Treasury of 1/10 of the UTM, at this time approximately US$ 7.88 per hectare. Exploitation concessions are of indefinite duration, and therefore do not expire. Concession owners do not necessarily have surface rights to the underlying land; however, they do have the right to explore or exploit the concession.

Figure 4-2 shows the current status of the mining claims. A list of the claims is included in the appendix. MTV has the mining rights to 229 exploitation concessions (46,378 ha), 215 of which are fully constituted and registered (44,185 ha) and 14 (2,193 ha) that are under administrative process, waiting sentence, performing topographic resurvey, or are “second floor” being adapted over previous MTV concessions in order to close old, small gaps (“demasías”). All relevant areas in the mine and the plant are fully covered and rights-assured by exploitation definitive concession (in Chile the exploitation concessions have no term). There are three concessions with partial superposition with third-party, none of them relevant for the project.

4.3 Agreements and Encumbrances

Sprott Resource Holdings Inc. (“SRHI”) purchased of 70% of the equity of S.C. Minera Tres Valles (“MTV”) from the Vecchiola Group for a purchase price of US$ 39.9 million during October 2017. The transaction included US$ 33.5 million in cash and US$ 6.4 million in SRHI common shares. A total of 51,191,847 SRHI common shares were issued to the Vecchiola Group. The Vecchiola Group retains a 30% interest in the project. There are no additional payments pending for this transaction, and there are also no back-in rights or clawback agreements whereby the property could revert to former owners.

There is a royalty payable to the Chilean government depending on production. Currently production is below the minimum of 12,000 mtpy copper so there are no payments. From 12 to 15 ktonnes of copper production the marginal rate is 0.5% and between 15 and 20 ktonnes of copper production the marginal rate is 1.0%. At full production the effective royalty rate for total MTV production will be about 0.3%.

MTV purchased 19 concessions (2,574 hectares) in the extreme northwest property block from Mineria Activa during 2015 which are subject to a 2% NSR royalty. These are the Salamanca, Herminia and La Por Llegar concessions. Currently there are no known mineral deposits on these claims.

There are no environmental liabilities on the property other than the formal commitments detailed in the original mining license.

The law number 20.551 of October 28th of 2011, established the obligation of all mining facilities of more than 10 ktonnes/month processing in Chile to develop a closure plan. This plan was prepared by Arcadis, which calculated the total cost of MTV closure to be of US$ 6.73M (VAT included). This was submitted to Sernageomin and approved in November 30th of 2016.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 16 Salamanca, Coquimbo Region, Chile March 29, 2018 The schedule for presentation of incremental Bank Guarantee Bonds was established in January 6th of 2017, ending in 2026, and is up to date.

4.4 Permit Status

The property is operating at a low level of production, and MTV has all the permits required to operate. More details on the permits are discussed in Section 20 of this report.

IMC does not know of any other significant factors or risks that may affect access, title, or the right or ability to perform work on the property.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 17 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 4-2. Property Map – Terradap Chile, March 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 18 Salamanca, Coquimbo Region, Chile March 29, 2018 5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Access

The main access to MTV is the D-81 road, which connects Illapel with Salamanca. From Santiago, it is 222 km north by route 5-N until Los Vilos. Then, 93 km east, following the Pupios Valley, crossing the Cavilolen Range and finally into the Choapa Valley. The main entrance is located 9 km before arriving in Salamanca in the Chuchiñí community. At this point a 5km private road connects with the MTV plant.

5.2 Climate

The climate in this region is inner steppe, with dry summers and most of the total rainfall (average of 200mm/a) in the winter. Average annual temperature is 19°C, oscillating from 30°C in summer to 9°C in winter. Daily thermal amplitude is around 19°C. Vegetation is mostly shrub, with local areas of small trees, thin grass and cactuses. In the main valleys, agriculture is developed through irrigation channels, highlighting the crops of grapes, avocados, berries, peppers, walnuts and apricots.

5.3 Local Resources and Infrastructure

The Choapa province is the southernmost part of the Coquimbo Region. It is formed by four counties (Comunas), spreading from the coast to the Argentinean border. MTV has the Papomono mine located in the Illapel county while all other infrastructure in Salamanca County. Illapel, the capital of the Choapa Province, is a city with 31,500 inhabitants, 19 km NW of MTV. Salamanca is only 8km south of MTV and has a population of 25,600. The city is located in the north Choapa river bank, close to the confluence with the Chalinga River. The town has several hotels, restaurants, supermarkets and drugstores, two bank/ATM agencies, two gas stations and a police station. It also includes a local VHF TV station and several radio stations. Due to the proximity to Antofagasta Minerals Ltd. Los Pelambres mine, Salamanca has a large amount of skilled mining labor and contractors.

The Choapa province is an old artisanal mining district with hundreds of small points of copper and gold manual extraction, which coexists with low scale agricultural activities in the valleys.

MTV is operating, and there is sufficient power and water to sustain the operation. The project also has sufficient surface rights for the leach pad, processing facilities, and the required waste storage areas.

5.4 Physiography

The altitude of the plant is around 600 m.a.s.l. (meters above sea level), while the mines are between 1,400 m and 1,600 m.a.s.l., allowing year-round work on there (snowfall is minimal and very uncommon). The project is located around the La Horqueta Hill (1,965 m.a.s.l) which acts as a watershed for three valleys: Manquehua to south, Quilmenco to SW and Cárcamo to north (giving the name to the project).

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 19 Salamanca, Coquimbo Region, Chile March 29, 2018

6.0 History

With the original name of Project Papomono, work began with an IP geophysical survey, and drilling started in April 2005. In June, drillhole DDH-009 intercepted three high-grade copper intervals (best interval of 35m @ 2.7%Cu), leading to the discovery of the Papomono main deposit. In April 2006, the following year, Don Gabriel “Mantos” was discovered through DDH-036 (best result was 40 m @ 1.01%Cu). In the following months, Vale staked new mining properties around the original block, doubling the total tenements surface. At the same time, 10 IP-survey grids were performed in different parts of the block and some higher chargeability anomalies were drill-tested, with low degree of success.

A preliminary economic assessment for combined underground-open pit exploitation of Papomono and Don Gabriel, a 3,000 tpd SX-EW plant and 18,500 tonnes of copper cathode per year was done by NCL in August 2006, based on a preliminary resource estimate. Based on NCL recommendations the Post-Pillar underground method was selected for Papomono Phase 1, the North Manto deposit. Metallurgical studies made by Domic S.A. proposed a two-stage leaching process, chemical and bacteriological, for mixed oxide-chalcocite treatment.

In March 2007 the excavation of a tunnel for bulk metallurgical sampling and underground drilling in Papomono began. This tunnel was further expanded for production purpose, and eventually finished two years later, at a total length of 1,870 m. In August 2009 AMEC was hired to carry out the engineering of the project, and Arboleda Grande, 5km southwest of Don Gabriel, was proposed as the location for the plant. In December 2007 a land-easement contract was signed with Comunidad Agricola Chalinga and in January 2008 an Environmental Impact Study (EIS) for Project Papomono was submitted to the environmental authority. This was withdrawn and in October Vale resubmitted the project under the new name, Project MTV, with the plant located in Quilmenco Valley. The final environmental license (RCA) was granted in October 2009.

In 2008 the project was approved by Vale’s board for construction, triggering the purchase of 90% of the asset from Minera Werenfried. Total investment on the project during project and operation stages was US$ 241 million. The designed crushing and SX-EW plants have maximum capacities of 5,400 tpd ore and 50.7 tpd copper cathodes, respectively. Based on total resources a preliminary mineral reserve was estimated, while drilling campaigns were continued into the following years.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 20 Salamanca, Coquimbo Region, Chile March 29, 2018 In December 2010 the plant was inaugurated and in February 2011 the first cathodes were produced. The plant feed was from Papomono underground, the Cumbre open pit and Enami- purchased feed. In 2012 a third-party ore purchase system was implemented, sourcing feed from local miners.

An audited mineral resource and mineral reserve statement was released in May 2013. The mineral resource and mineral reserve statement was audited by Snowden Mining Industry Consultants (“Snowden”) in the report titled “Cia. Contratual Tres Valles: Resource and Reserve Statement”. The mineral resource and mineral reserve estimates contained therein were certified as JORC-compliant (Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia) by Snowden.

The measured and indicated mineral resource was 40.74 million tonnes at 0.81% copper. Inferred mineral resource was an additional 4.10 million tonnes at 0.79% copper. The mineral resource was stated at a cutoff grade of 0.2% total copper. The Snowden work was a review of mineral resource models and mineral resource estimates prepared by MTV. The mineral resource estimate appears to have been reliable at the time. However, there has been mining activity since the estimate, so the mineral resource estimate cannot be considered as a current mineral resource estimate.

The proven and probable mineral reserve was 17.73 million tonnes at 0.91% copper. The mineral reserve was defined with a life of mine plan. The mineral reserve estimate might have been considered reliable at the time, but it was based on a copper price of $3.40 per pound, significantly higher than the price used for this current study, so the mineral reserve estimate cannot be considered as a current mineral reserve estimate. Also, there has been mining activity since the estimate, so some of the historic mineral reserve has been depleted.

There are numerous uncertainties inherent in the foregoing historical estimates, which are subject to all of the assumptions, parameters and methods used to prepare such historical estimates. The historical estimates have been prepared in accordance with the requirements of JORC and may not comply with or fulfill the CIM Definition Standards, and may vary significantly from actual amounts, grade and quality of minerals recovered from the MTV property. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or current mineral reserves and SRHI is not treating the historical estimates as current mineral resources or current mineral reserves.

The proven and probable mineral reserve was 17.73 million tonnes at 0.91% copper. The mineral reserve used only the proven and probable reserve categories defined by NI 43-101 and was defined with a life of mine plan. The mineral reserve estimate might have been considered reliable at the time, but it was based on a copper price of $3.40 per pound, significantly higher than the price used for this current study, so the mineral reserve estimate cannot be considered as INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 21 Salamanca, Coquimbo Region, Chile March 29, 2018 a current mineral reserve estimate and the issuer is not treating this estimate as a current estimate. Also, there has been mining activity since the estimate, so some of the historic mineral reserve has been depleted.

At the end of 2012 Vale decided to sell MTV, among other international assets. New projects were frozen from this moment on, except for the quaternary crusher, which was already being built and was designed to reduce the size of crushed material to ¼”, mainly targeting future Don Gabriel chalcocite mineral. The new crusher was commissioned in August 2013.

Between December 2010 and October 31, 2017 MTV has mined and processed 4.22 million tonnes of ore at an average grade of 0.90% Cu. Considering the external purchases and tolling, a total of 6.14 million tonnes averaging 1.22% Cu was processed in its plant, resulting in 59,991 tonnes of copper cathodes. In addition to the finished cathodes, copper in process solutions, cathodes still in EW cells, and recoverable copper on the leach pad was estimated at 1,416 tonnes as of October 31, 2017.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 22 Salamanca, Coquimbo Region, Chile March 29, 2018

7.0 Geological Setting and Mineralization

7.1 Regional Geology

MTV is located in the prolific Cretaceous belt of Chile, which hosts a vast amount of copper deposits, ranging from small to world-class size. This belt presents a variety of deposit types, the most common being the IOCG (Iron Oxide Copper Gold) and the Cu-Ag stratabound, also called “mantos” (see Figure 7-1). The first type of mineralization, IOCG, is more common in the Atacama Region and throughout the north of Chile. These deposits can reach gigantic sizes, such as Candelaria, which in 21 years has produced 3.6Mt of payable copper. On the other hand, the stratabound, “manto-type” deposits are more common from Atacama Region to the south. The largest examples are El Soldado and Michilla. There are also some Cu-Au porphyries in the Cretaceous belt, which the largest is Andacollo. Finally, minor skarn and Cu-Au veins are found all over the belt.

7.2 District Geology

MTV is located in a regional horst-graben system, formed by a 10 km wide corridor of volcanic rocks, and bordered by km-scale N-S faults. To the west and east intrusive granodioritic to dioritic rocks prevail, which are from the Early Cretaceous age Illapel Super-Group. The volcanic rock forms a thick package of flat layering or gently dipping beds of lava, pyroclastic and epiclastic rocks from middle to upper Cretaceous.

Lithostratigraphically, the volcanic rocks belong to two main units. The slopes of the valleys form pediments of the Quebrada Marquesa Formation, from the Barremian-Albian age. In the Salamanca-Illapel region the predominance is the Quellen Member, which is characterized by an intercalation of andesitic lava, volcanic breccias and agglomerates, with subordinate sandstones. Overlying it, in unconformity relation, is the Viñita Formation, of Upper Creataceous age. It is generally horizontal bedding and this attitude is demonstrated by characteristics plateaus (tableland) geomorphologies like Llanos de Talhuen, between Choapa and Chalinga Rivers and Cerro Carrizo-Los Linderos, north of Chalinga Valley. The limits of the Viñita Formation also form cliffs and escarpments. The basal zone is predominately oxidized levels of sandstones and conglomerates (Sta. Virginia Mb) while near the top lava and volcanoclastics dominates (Rio Manque Mb). Besides the obvious geomorphologic distinction, the Viñita Fm. stands out by its reddish colors, contrasting with dominant gray tones from Quebrada Marquesa.

Remnants of Tertiary tuffs can be seen forming isolated outcrops in the upper parts of the plateau while quaternary coverage fills the E-W main valleys.

At MTV, Quebrada Marquesa Fm is the main host rock for stratabound copper mineralization. In terms of Viñita Fm, only some skarns, minor veins or manganese beds are found.

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Figure 7-1. Left: the Cretaceous belt in Chile with main deposits (MTV in cap letters). Right: Types of deposits found in Cretaceous belt of Chile, (Maksaev V. et al. 2007).

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 24 Salamanca, Coquimbo Region, Chile March 29, 2018

The concession block is outlined by two main regional faults: Manquehua and Llimpo. These faults can be easily identified when producing the sharp contact between intrusive and volcanic rocks but can also be clearly seen in aeromagnetic surveys (see Figure 7-2). The magnetometry also shows ENE-WSW trans-andean structures coincident with some valleys (e.g. Chalinga Valley). The relation between these trans-Andean faults and important porphyries is notorious in Chile. In the Salamanca region it can be seen as controlling the gigantic Los Pelambres Cu-Mo porphyry, close to Argentinean border (see Figure 7-2, right).

In district scale most of the known Manto-type deposits are close to the west regional fault, called the Manquehua Fault (see Figures 7-3). The Llimpo Fault, to the east, is less evident and only skarn or vein copper deposits have been found to date. Zooming in on the Manquehua Valley, which names the regional structure, a set of veins, dikes and lineaments can be observed aligned in a 6 km-long NW-SE corridor, grossly sigmoidal-pattern Figure 7-3 right). At both sides of this sigmoid, the main Papomono and Don Gabriel deposits are found. In the middle part of the structure, several smaller deposits are outlined. Less important mineral zones can be related to N-S, WNW-ESE or E-W structures.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 25 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 7-2. Left: horst-graben structure, producing the long regional belt of volcanic rocks bounded by batolite intrusives. (Sernageomin, 1991), Right: Aeromagnetometry (RTP) showing the regional NNW-SSE faults cut by trans-Andean ENE-WSW regional structure

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 26 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 7-3. Left: Regional map of MTV project, showing the Manquehua and Llimpo regional faults, as well as the relation between batolitic intrusives (pink color) and volcanics (green to gray). Right: Zoom to the Manquehua Valley and it´s structural corridor (MTV, 2006)

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 27 Salamanca, Coquimbo Region, Chile March 29, 2018

7.3 Deposit Geology

7.3.1 Papomono

7.3.1.1 Stratigraphy

The stratigraphy observed in the Papomono deposit is mainly composed of a sequence of andesite interbedded with pyroclastic rocks of the Quebrada Marquesa Formation, N40 W strike, dipping 15° to SW. The lithostratigraphy used for deposit modeling purposes is formed by three main levels, from top to base:

Unit C: Volcanic breccias and Lapillis intercalated with andesitic lava and commonly epidotized. This unit presents a small amount of mineralization and is the most common outcropping unit.

Unit B: Porphyritic and compact andesite, which is considered as a physical barrier for the ascendant fluids.

Unit A: Ash and lapilli tuffs with some andesites, typically flow-structure bearing. This unit is the main host rock in Papomono and its beds are commonly subject to intense albitization. Table 7-4 summarizes these units, their thicknesses and textures.

Figure 7-4. Papomono Stratigraphic Units

A small intrusive plug with fine equigranular texture cuts all andesitic volcanic sequences. It is located in the intermediate zone between the Manquehua and Papomono faults. It is cylindrical in shape and its composition is dioritic-gabroic. This plug is a host for the Cumbre mineral deposit. INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 28 Salamanca, Coquimbo Region, Chile March 29, 2018

Dikes of intermediate composition (andesitic-microdioritic), mineralized or not, intrude the volcanic sequence following structural discontinuities in the EW to NE directions. They are reduced in size, from 0.5 to 5 m thickness, with dominant chloritic alteration.

To the west, granodiorites from the Illapel Super Group (granodiorites with some granitic zones) are in sharp contact with the volcanic sequence. Locally, some aplitic apophysis are found. To the west, some reddish volcanoclastics of the Viñita Formation are preserved unconformably in the upper part of the hills.

7.3.1.2 Structure

In Papomono, four structural systems are mapped. They are shown on Figure 7-5. The most obvious at the surface is the regional N15°W striking, 85°NE dipping Manquehua fault which produces the sharp contact between the granodioritic batholith to the west and andesitic sequence to the east. This fault is believed to have been reactivated after the emplacement of the Illapel batholite as the andesites around its contact are slightly metamorphosed to hornfels.

The most important structure in terms of mineralization control is the Papomono Fault system. This system is oriented N35°W to N40°W, dipping 80°- 85° to the southwest and includes the Papomono Fault and the Epithermal Vein controlling fault. In the Cumbre open pit, a fault with this direction was also mapped. The Papomono Fault is an intensely fractured and brecciated zone, mapped in a 950m-long extent. In the central zone it assumes a wider width, from 10 to 50 m of intense fracturing, with some gouge bands that are chalcocite-bearing. This fault system is considered to be the main hydrothermal fluids conduit in Papomono.

The third system is related to groups of N-S striking, 55°E dipping, short and narrow trans- tensional faults, generally filled by chalcocite. These sets of structures repeat each 550m along the Papomono Fault zone, suggesting they correspond to a Riedel-type structure. They are in blue on Figure 7-5. A more extensive, N8°E striking fault (blue dots on Figure 7-5) coincides with the central set of N-S veins and is clearly seen in the magnetometry AS survey on the right side of the figure.

Finally, there is a set of late N70°E to N80°E striking vertical structures that displace all other previous structures, generally in a transcurrent dextral movement. At one point a horizontal throw of up to 140 m can be observed in the Manquehua fault, while a 25m horizontal component was measured in the Papomono Fault.

It is important to mention that the Papomono fault was also submitted to a transpressive effort towards the east, which is expressed by a low angle fault, concordant with bedding, and observed only in the PPM Massive zone. The hanging wall seems to be thrusted some 25m over the footwall.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 29 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 7-5. Left: Papomono Structures (Red: Papomono Fault system; Blue: N-S Veins; Green: N70oE Faults). Right: Magnetometry (AS) with 3D- modelled structures showing the coincidence between its response and mapped structures (MTV, 2006)

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 30 Salamanca, Coquimbo Region, Chile March 29, 2018

7.3.2 Don Gabriel

7.3.2.1 Stratigraphy

Lithostratigraphically, the Don Gabriel deposit consists of five units, all N60°W striking, dipping 25° SW (Figure 7-6). The upper level is formed by porphyritic, fine to medium texture andesite and breccia intercalations, generally red to grey colored. In the middle of this unit there is a 10 m-thick dioritic sill with fine equigranular or aphanitic texture, pale-gray to green colors.

Underlying this unit there is a 100m-thick set of red to gray andesites, porphyritic to medium- coarse texture, with several amygdaloidal levels. The amygdules are generally filled by chalcocite-bearing albite. When oxidized, green oxides are typically the filling material. The vesicles and amygdules are normally oriented, attesting flow texture. This unit is the host-rock of the manto-type mineralization in Don Gabriel.

Under this unit occurs a 50m-thick unit composed of two levels of coarse reddish-brown sandstones (volcanoclastic sand) to microconglomerate, 0.6 to 10m thick, showing cross- stratification, with red andesites and breccias, hematite-rich, intercalated between them.

The lower level is composed of coarse-medium porphyritic andesites and breccias that are red- color and sometimes have a trachytic texture. This unit outcrops in the nearby valley where a swarm of vertical microdioritic dikes cut the gently dipping beds. All these units are considered as upper members of the Quebrada Marquesa Formation.

The whole set of volcanic-volcanoclastic rocks is cut by several microdioritic dikes striking in the NW direction. A stock of 350 x 130m, elongated through a NW-SE direction, is believed to be the intrusion center from which the dikes formed.

Figure 7-6. Don Gabriel Stratigraphy, MTV 2007

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7.3.2.2 Structure

In Don Gabriel, four directions of sub-vertical structures can be observed. These are shown on Figure 7-7. The most common are the N45°W to N35°W striking set of faults that can be seen in the existing pit walls. The faults are composed of zones of 1 to 2m-thick intense fracturing. At least six faults with this attitude were identified. The main fault was named the Nuñez Fault and is believed to be part of the structures that control the high-grade veins underneath the Don Gabriel Mantos. Even inside the mantos, higher copper grades are observed around this fault and others parallel to it. Towards NW, several microdioritic dikes outcrop with the same direction, suggesting the emplacement of magma took place when the structural discontinuities were formed. Field relations suggest these structures cut and displace an E-W fault zone, also visible at the open pit.

The third set of structures is N-S, which can be related to some dikes, and are not very significant in length. In the open pit the main N-S fault is called the Gaby Fault and is a set of 2 to 3 parallel nearby faults.

Finally, there are N60°E striking structures that are interpreted to be the last structures, as they produce displacements in several other faults. The main member of these faults seems to have produced a sinistral displacement in the Don Gabriel Veins deposit, with 60 m of horizontal throw in the SE block.

Figure 7-7. Don Gabriel Litho-Structural Map, MTV 2012

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7.4.1 Papomono

The dominant sulphides in the deposit are in decreasing order: chalcocite-covelite (~85%), bornite (~6%), enargite (~5%) and chalcopyrite (~4%). It is important to mention that the bulk of the chalcocite at MTV is hypogene. Very few parts were observed with supergene chalcocite. In places where intense fracturing and faulting occurs, the action of oxidizing agents generates oxide copper minerals: chrysocolla, malachite, brochantite and atacamite. For this reason, the traditional vertical zonation of oxides on top and sulphides in deeper parts are not identified in Papomono and the main oxide zones are related to more fractured zones, sometimes deeper than preserved sulphides.

The most common hydrothermal alteration, directly related to mineralization, is albitization, which can occur pervasively, forming homogeneous light-pink or light-gray beds, or as halos around structures, spotty or filling amigdules. Around the mineralized bodies, it is common to find fine disseminated hematite, occasionally with chlorite. In sectors where volcanic breccias dominate, intense epidotization is the most common alteration halo.

A conspicuous level of intense quartz-sericite-pyrite alteration characterizes the deeper parts of the deposit. This is not concordant with the stratigraphy, but seems to superimpose it, forming a grossly horizontal level, with stair treads-like contact. The project geologist called this level the “Quartz-Sericite floor”, because significant chalcocite mineralization was not found under this contact, only minor Cpy-Py. Despite limited information on this contact, since the drill holes generally stopped before or immediately at this level, it is considered a different event, not related to the stratabound mineralization, generated by upward-driven fluids.

The origin of the hypogene mineralization has two hypotheses. Sillitoe (2005) proposed the mineralizing fluids in Papomono were basinal-diagenetic, leached from the upper Viñita Fm. oxidized beds. These fluids would flow down through permeable beds and, when reaching reducing horizons (chemical traps), precipitate, with a lateral sulphide zonation (cc, cc-bo, cc- cpy, py from close-to-distal redox contact). This author considered the qz-ser-py zone as the most distal fronts of the same stratabound-related dip-downward fluids. The team of geologists at MTV believes that the fluid is hydrothermal in origin and the solutions rose through structural discontinuities from deeper parts to areas with less lithostatic pressure, precipitating in receptive stratigraphic levels, which were physically and chemically favorable. The favorable lithologic horizons that served as fluid conduits are strongly affected by a pervasive to sparse albitic alteration. The chemical trap for precipitation is a fact in Papomono, as pyro-bitumen was found in some thin sections, closely associated with chalcocite. Pyro-bitumen is described in other stratabound deposits in Chile, like El Soldado.

It was observed the precipitation of copper minerals generally occurs mainly between 1,350 and 1,450 m a.s.l. This can be related to a combination of favorable pressure and rock characteristics.

The most common deposit geometry is the manto-type (stratiform). The individual “mantos” have a thickness that ranges from 2 to 50m, up to 500m strike extension and length along dip

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 33 Salamanca, Coquimbo Region, Chile March 29, 2018 reaching 600m. Examples of this type of deposit geometry are the PPM South, Mantos Connection, and the Mantos North deposit. The other common geometry is vein-type, with a thickness between 2 and 15m, strike length from 100 to 420m and 100 to 250m deep. Dip angle is generally steep, between 80° and 90° to the west. There are also sets of tens of cm-thick N-S veins dipping 55° to the east. These sets of veins occur in clusters of 10 to 30 narrow, around 50m long, massive chalcocite veins.

One specific and important geometry is observed in only one deposit, PPM Massivo. It is a complex geometry which resulted from the intersection of at least three different mineralization controls in the same area: the Papomono Fault system, the favorable strata (mantos) and the N-S set of small veins dipping east. The resulting geometry is roughly an inverse triangle or a truncated rhomb shape, which has 440m strike, up to 190m wide and 190m high.

Finally, there is a cylinder-shape geometry related to the intrusive plug of Cumbre. This deposit is vertical, with at least 400m deep (310m from the bottom of exploited Cumbre pit) and an average diameter of 180m. A near surface oxide mineralized zone was hosted in the upper part of intrusive as well in the contact zones with volcanic to volcanoclastic rocks of the Quebrada Marquesa Formation and was already exploited by open pit. Deeper zones in Cumbre present disseminated chalcocite and bornite mineralization.

7.4.2 Don Gabriel

The mineral deposit of Don Gabriel is formed of two main zones:

 An upper deposit of “manto” type, medium copper grade, with a set of stratabound disseminated, fine chalcocite, mineralization approximately 100m thick, dipping 30° SSW. This is shown in Figure 14-4.  A lower deposit, vein-shaped (straight-tabular), sub-vertically oriented N45°W, with intense strong to spotty mineralization or veinlets type (stockwork or sheeted veinlets), high copper grade, with chalcocite, digenite and some bornite. These are shown in Figure 14-5.

Whereas the first type is hosted mainly in andesite amygdaloidal levels, the second type has medium to coarse porphyritic andesite and/or dioritic to microdioritic dikes as host rock, which underlies the level of coarse sandstone. The layers of sandstone serve as a guide-level separating the two main units. It is used as a sharp limit between the two geological models, Don Gabriel Mantos and Don Gabriel Veins.

The vertical-tabular mineralization seems to be intimately linked to the presence of dioritic dikes, which, in turn, are related to an intrusive stock to the W and SW, and outcrops at the bottom of the ravine near the mineral deposit. Such stock was also intercepted by several drill holes a little further to the east. Those dikes found in such drill holes may also be observed in the mine’s roads cut, as a 2 to 10m-thick dike swarm, which follows the same N45-50°W direction of the mineralization.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 34 Salamanca, Coquimbo Region, Chile March 29, 2018 Considering the clear relationship between the vein shape mineralization and such dikes, it is possible to speculate the presence of a metasomatic component in its genesis, despite no distinctive skarn mineral being observed, only epidote and chlorite. Another possibility is that the dioritic magma emplaced areas of structural weakness, also employed by the mineralizing fluids immediately after the igneous siting (tardi-magmatic event). In some areas, mineralization zones are also observed, with similar characteristics to the “mantos”, chalcocite disseminated mineralization with pervasive albite, which makes it possible to glimpse the potential presence of stratabound deposits, but not stratiforms, as a set of parallel veins restricted to favorable stratigraphic levels (e.g. mineral deposits El Soldado or El Espino). Another aspect worth mentioning is the common presence of veins or disseminated hematite surrounding the best mineral grade sectors.

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8.0 Deposit Types

MTV is a Cu-Ag stratabound, manto-type deposit. The stratabound deposits in Chile can be Jurassic (e.g Michilla) or Lower Cretaceous age (El Soldado), but regardless of the age, these deposits present very similar characteristics, with comparable geometries, mineralization controls and mineral paragenesis (see Figure 8-1). They are generally in volcanic/volcanoclastic, subvolcanic or sedimentary rocks. The “manto” deposits can present, in addition to the most common stratiform geometry, lenses, breccia pipes, veins or irregular shapes, sometimes all together in the same deposit. They are considered epigenetic, hydrothermal or metamorphic fluid origins are suggested, and albite is the most common alteration. Main controls are lithologic (permeable strata), structural (extensional faults) or intrusion-related. Main economic minerals are chalcocite, bornite, chalcopyrite and associated oxides. Supergene enrichment is not common as they are generally pyrite-poor.

Figure 8-1. Left: Location of stratabound Cu-Ag deposits in Chile, (Maksaev, V. et al. 2007), Right: type- section of two main stratabound deposits in Chile: Michila and El Soldado (Boric et al. 2002).

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9.0 Exploration

9.1 Initial Exploration

There has been no exploration conducted by, or on behalf, of MTV. This section is a brief summary of the Vale exploration that led to the discovery of the Papomono and Don Gabriel deposits.

The exploration that led to the discovery of MTV was started by Vale in 2005, searching for large-scale deposits. As part of Cretaceous belt, the expectations for this grassroots project were for an IOCG (Iron Oxide Copper Gold) deposit with more than 100Mt resource, which was expected to be possibly blind. Thus, the initial exploratory strategy was strongly based on geophysics. The initial works were an IP dipole-dipole and magnetometry surveys in the Manquehua valley, where a 6km-trend was initially mapped with tens of copper occurrences. The surveys were developed by Zonge Ingenieria y Geofisica (at this time Zonge International´s branch), headed by Sr. Geophysics Jim Scarbrough.

The magnetometric survey totaled 91 linear km and its result was not very effective for target selection due to a background noise, mainly in the norther part of the grid. However, the magnetometric maps proved very useful on defining the main structures and trends in the area.

During the IP survey a strong IP-Phase anomaly showed up in northern part of the Manquehua grid (Papomono area) and the strong chargeable zone was drill-tested, resulting in abundant pyrite-sericite alteration. Other exploratory criteria were tested and finally a medium chargeability-medium resistivity anomaly was checked by the 9th drill hole, resulting in an interval of 91m @ 1.7%Cu, from 212m depth. This is considered the discovery hole of Papomono deposit. The experience during the next months of exploration showed that the chalcocite mineralization was generally related to low to medium chargeability anomalies (10 to 20 mRad). In the Papomono target it was usually located laterally and over the higher phase values, while in Don Gabriel strong chargeable anomalies were lacking. The use of the empiric knowledge of this stage as exploratory guide, together with the better understanding of the geo- structural framework of the targets, led to a series of positive results, which eventually resulted in the delimitation of Papomono and Don Gabriel deposits.

From 2008 on, all the efforts were concentrated in Papomono and Don Gabriel resource drilling campaigns, with little additional exploration.

9.2 Mine-site Exploration

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 37 Salamanca, Coquimbo Region, Chile March 29, 2018 Once these priorities are met, IMC anticipates additional exploration drilling in known deposits, including the Don Gabriel Veins, the Epithermal Vein, Cumbre, and others to upgrade inferred mineral resource to measured and indicated mineral resource.

9.3 District Targets

There are also additional known targets to examine in the MTV claim block. Most of these are identified through geophysical signatures. It is reported that more than 100 copper occurrences were mapped inside the claim blocks, and around 70 of them were related to artisanal exploitation points. Most of them have geologic characteristics similar to Papomono and Don Gabriel. These need to be reviewed and ranked for potential additional work.

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10.0 Drilling

Between 2005 and 2013 Vale executed more than 170,000 m of exploration and infill drill holes, which is about 22,300 m/year on average. The maximum yearly drilling program was 40,767m, in 2008. Figure 10-1 shows drilling by year.

Figure 10-1. MTV Drilling by Year

The companies Major Drilling, Terraservice and Geotec Boyles performed the drilling campaigns. About 98.5% of drilling was diamond drill holes (DDH). In 2006, 2,694m of reverse circulation (RC) drilling was executed, but after some twin-DDH studies, it was concluded this type of drilling was not adequate to the mineralization type, with serious bias and distortions on results. The probable cause was the low hardness of the chalcocite contrasting with the hard albite-rich rock, producing fine pulverization of the chalcocite, loss of material and differentiated recovery in samples. For this reason, no RC drilling results were used in geological modeling or resource estimation. From 2007 to 2011, 18,000m of in-fill underground drill holes were executed in Papomono, from the main tunnel and cross-stations. These campaigns were performed in sections between the previous surface drilling sections, with drill holes crossing the vertical structures orthogonally, while the surface drillings were mainly driven to crosscut the mantos orthogonally. This pattern generates a complete coverage of the two main mineralization directions in Papomono and avoided biased sampling.

Figure 10-2 shows the distribution of drilling by areas. The majority of the drilling (65%) was executed in the Papomono area, as it was considered the more complex mineralization. About 23% of the drilling was in Don Gabriel. The rest was in Amarilla and Verde, two small deposits between Don Gabriel and Papomono, and other regional exploration targets.

The grid spacing in Papomono was varied. The whole deposit was drilled in sections located 25m apart, and some with 12.5m spacing. In-fill drillings were performed in a fan-pattern, from one single platform or station. For this reason, spacing between contiguous DDH varies along the drill hole but it was planned to generate relevant information every 15m. In Don Gabriel the grid spacing was also varied. The initial “manto” drilling campaigns were developed in N-S sections each 50m. Some detailing at 25 or 35m was performed punctually. Over this grid a second grid,

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 39 Salamanca, Coquimbo Region, Chile March 29, 2018 with NE-SW direction, was executed, aimed at the high-grade vein systems, underneath the “manto” deposit. The overlapping part of the grids generated more detailed information for this part of the “manto” geological model.

Figure 10-2. Distribution of Drilling by Area

The drillhole databases provided to IMC for this project included 771 holes and 145,529 meters of drilling. Table 10-1 summarizes this data by the Don Gabriel versus Papomono areas. This is only the Don Gabriel and Papomono core holes; it does not include the RC data or any of the Amarilla, Verde, or data for other targets.

Table 10-1. Summary of Drilling Data Deposit Area No. of Holes Meters Don Gabriel 189 37,860 Papomono 582 107,669 TOTAL 771 145,529

Figure 10-3 shows Don Gabriel drilling and Figure 10-4 shows Papomono drilling with respect to the various Papomono deposit areas.

It is the opinion of IMC that the drilling methods are adequate for the style of the mineralization at Don Gabriel and Papomono.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 40 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 10-3. Don Gabriel Drilling, IMC 2017

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Figure 10-4. Papomono Drilling and Deposit Areas, IMC 2018

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11.0 Sample Preparation, Analyses and Security

11.1 Sample Preparation

The drill cores were delivered by the drilling contractors in wooden boxes of 1m long, identified by project, hole ID, box number and box interval. Inside the boxes “blocking plugs” marked the advances and the respective core recovery of the interval. This was then checked by MTV´s geologic technicians, crossing the core information with the recovery sheet delivered by the contractor. The same team proceeded to the “core regularization” process, marking equal length core intervals. After that the core boxes were photographed under daylight conditions. The cores were then sent to geological and geotechnical for logging at 1:100 scale, sample delimitation and diamond-saw cutting. The samples were then bagged, labeled and packaged and dispatched to the laboratory. The weight of sample sent to the laboratory was typically between 2 and 4 kg.

At ALS Chemex, the samples were crushed to 70% passing 2mm. A riffle splitter was then used to split out about 250 gm of material that was then pulverized to 85% passing 75 microns.

11.2 Analysis

The analytical work for the exploration drilling was done at ALS Chemex in Santiago, Chile. ALS Chemex is a well-known, and respected, commercial laboratory. First, each sample was digested in aqua regia followed by ICP-AES analysis to obtain assays on 36 different elements. For sample intervals where the copper ICP-AES determination exceeded 2000ppm, i.e. 0.2% copper, two additional sets of determinations were done:

 A total copper assay by four acid digestion and atomic absorption spectroscopy (AAS).  A three step sequential analysis to determine sulfuric acid soluble, cyanide soluble, and residual copper.

For Don Gabriel, the number of copper assays in the database consisted of 37,147 by ICP analysis, 10,902 total copper analyses, and 10,856 each acid soluble, cyanide soluble, and residual sequential analyses. The final total copper assay in the database was based on the total copper analysis when it was available, and the ICP-AES analysis for the low grade intervals.

For Papomono, the number of copper assays in the database consisted of 92,996 by ICP analysis, 21,847 total copper analyses, and 21,020 each acid soluble, cyanide soluble, and residual sequential analyses. The final total copper assay in the database was based on the total copper analysis when it was available, and the ICP-AES analysis for the low grade intervals.

It is the opinion of IMC that the sample preparation and analytical work is adequate for the MTV project requirements.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 43 Salamanca, Coquimbo Region, Chile March 29, 2018

11.3 QA/QC Programs

The exploration drilling was conducted under the tenure of Vale, and there were comprehensive QA/QC programs in place for the entire exploration program. The QA/QC procedures were initially established by Vale’s exploration department and were improved and complemented following recommendations from Snowden audits. There are formal reports on QA/QC results for each of the years 2008, 2009, 2010, 2011, and 2012 available.

IMC received the original QA/QC data, formatted it, and generated control charts for the blanks, standards, and duplicates as a review of the original work.

IMC concludes that the QA/QC program in effect during the Vale exploration drilling met or exceeded industry standards and was compliant with NI 43-101 requirements.

11.4 Sample Security

Since all the drilling was done during the Vale tenure, it is not possible for the Qualified Person’s preparing this report to observe the chain of custody for samples. However, there was an audit of the standard procedures conducted by Snowden and reported in “Soc. Contractual Minera Tres Valles: Resource/Reserve Practices – Standard Procedures”, dated March 2013. Figure 11-1 describes the procedures for sample security. It is the opinion of IMC that these procedures meet or exceed NI 43-101 requirements.

The core, coarse rejects, and sample pulps are in storage at the core logging area which is in a secure area near the plant.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 44 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 11-1. Procedures for Sample Security as Documented by Snowden, 2013.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 45 Salamanca, Coquimbo Region, Chile March 29, 2018

12.0 Data Verification

12.1 Don Gabriel

For Don Gabriel, IMC selected nine drillholes to compare the assays in the database with original assay certificates:

PPM-DGAB-DH0160 PPM-DGAB-DH0166 PPM-DGAB-DH0077 PPM-DGAB-MT0002 PPM-DGAB-DH0146 PPM-DGAB-DH0113 PPM-DGAB-DH0023 PPM-DGAB-DH0006 PPM-DGAB-DH0138

IMC checked the ICP total copper, the AAS total copper, and the soluble copper assays for each sample interval. IMC also checked the downhole survey information for each hole against the original measurements.

There were no significant discrepancies noted between the database and certificates. Based on this review IMC concluded the Don Gabriel database is acceptable for resource modeling for feasibility study level work.

12.2 Papomono

For Papomono, IMC selected 20 drillholes to compare the assays in the database with original assay certificates:

PPM-PPMN-DH0046 PPM-PPMT-DH0079 PPM-PPMT-DH0106 PPM-PPMN-DH0090 PPM-PPMN-DH0120 PPM-PPMN-DH0152 PPM-PAPO-FD0021 PPM-PPMT-DH0067 PPM-PPMN-DH0030 PPM-PPMN-DH0182 PPM-PPMT-DH0035 PPM-PAPO-FD0009 PPM-PAPO-FD0013 PPM-PAPO-FD0016 PPM-PAPO-FD0018 PPM-PAPO-FD0022 PPM-PAPO-FD0051 PPM-PAPO-FD0012 PPM-PAPO-FD0017 PPM-PAPO-FD0027

The check against the assay certificates and also a logic check for acid soluble copper + cyanide soluble copper greater than total copper identified errors in nine of the Papomono drillholes. These were mostly FD series holes drilled during 2005, the first year of the exploration program. The assay certificates from the laboratory were not consistent in the order the various total and soluble copper assays were reported and this resulted in copper assays in the wrong database columns for portions of several of the holes. IMC believes all the impacted holes have been corrected and the Papomono database is acceptable for resource modeling for feasibility study level work.

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13.0 Mineral Processing and Metallurgical Testing

13.1 Acid Heap Leach Process

The objective of this report section is to provide an estimate of the achieved copper recovery for Papomono and Don Gabriel for the current acid heap leach process, based on the report ORYXEIO-MTV-2018-R01-0 from January 2018 (Certificate of Qualified Competency CM- 674-022018 from the Chilean Comisión Calificadora de Competencias en Recursos y Reservas Mineras).

The estimate of copper recovery is based on historical plant performance between 2010 and October 31, 2017, on column tests reported by SGS Minerals Services as an independent laboratory, and on column and heap tests operated by MTV at the mine site.

13.1.1 Plant Operation

The MTV plant was commissioned in late 2010 and since then crushing, heap leaching, solvent extraction, and electrowinning were operated with variable cathode production rates due to operational considerations such as ramp up, lower feed grades than design, curtailed production due to low prices, etc. To date, the company has treated mixed copper ore from Papomono and Don Gabriel, as well as external and ENAMI copper oxide ore. External sources refer to small scale, local, miners from which the company purchases material for processing. ENAMI is Empresa Nacional de Mineria, a state minerals company that purchases and processes ore and refines copper from Chile’s small and medium-scale miners.

Table 13-1 shows an annual summary for the total dry metric tons (DMT) of ore crushed and stacked, indicating as well the sequential chemical analysis related to total copper (TCu), and the constituent components comprising acid soluble copper (ASCu), cyanide soluble copper (CNCu), and insoluble or residual copper (RCu). The total historical amount of ore treated until October 31, 2017 corresponds to 6,139,043 dry metric tons, containing 1.22% total copper.

Crushed & Copper grade Year stacked ore Total Acid soluble Cyanide soluble Residual DMT % TCu % ASCu % CNCu % RCu 2010 46,682 1.24 0.51 0.67 0.07 2011 992,179 1.20 0.80 0.28 0.11 2012 1,737,696 1.02 0.67 0.25 0.11 2013 1,569,583 1.06 0.73 0.23 0.10 2014 556,898 2.00 1.84 0.07 0.09 2015 281,602 1.84 1.62 0.12 0.10 2016 436,677 1.30 0.78 0.38 0.14 2017* 517,726 1.17 0.69 0.33 0.14 Total 6,139,043 1.22 0.87 0.25 0.11 Table 13-1. Copper Ore Crushed and Stacked in the MTV Plant since Startup. * Until October 31, 2017.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 47 Salamanca, Coquimbo Region, Chile March 29, 2018 The material by source and its sequential copper analysis is shown on Table 13-2.

Copper grade Crushed & Acid Cyanide Source stacked ore Total Residual soluble soluble DMT % TCu % RCu % ASCu % CNCu Papomono* 3,018,231 0.97 0.46 0.37 0.13 Don Gabriel 1,197,363 0.73 0.49 0.15 0.10 External 959,301 1.70 1.55 0.10 0.05 ENAMI 964,147 2.14 1.92 0.11 0.11 Total 6,139,043 1.22 0.87 0.25 0.11 Table 13-2. Origin of Treated Copper Ore between 2010 and October 31, 2017. * Mixture of Papomono (~1.7% TCu) with Cumbre (~0.6% TCu).

The determination of historical accumulated copper recovery until October 31, 2017 is achieved by comparing the cathode production with copper fines contained in the crushed and stacked ore. The leaching cycle of recently stacked ore has not yet been concluded. Also, there is copper present in process solutions and in cathodes not yet harvested. Therefore the copper pending to be recovered by October 31, 2017, i.e., the recoverable copper being leached plus the recoverable copper in solutions plus the hanging copper in electro-winning tanks, has to be added to the overall historical cathode copper production in order to determine the accurate copper recovery of the plant.

Table 13-3 outlines the annual and accumulated copper recovery based exclusively on cathode production, without including recoverable copper available in the plant by October 31, 2017.

Copper Accumulated Copper fines in Annual copper cathode copper Year treated ore recovery production recovery tCuf % tCuf % 2010 581 247 42.56 42.56 2011 11,862 8,839 74.51 73.02 2012 17,721 14,029 79.17 76.63 2013 16,628 12,490 75.11 76.09 2014 11,144 8,238 73.92 75.67 2015 5,185 5,771 111.29 78.60 2016 5,672 5,412 95.41 79.99 2017* 6,037 4,966 82.26 80.17 Total 74,830 59,991 80.17 80.17 Table 13-3. Copper Recovery Based on Copper Cathode Production. * Until October 31, 2017. In 2015 the annual copper recovery exceeded 100%. This is because in 2014 the Papomono and Don Gabriel mining operations were shut down and inventory on the leach pads and process solutions was drawn down during 2015.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 48 Salamanca, Coquimbo Region, Chile March 29, 2018 The Papomono mine was reopened in September 2015 to provide plant feed to compensate for a lack of third party material due to low prices.

The estimated recoverable copper fines available in the plant by October 31, 2017 are shown on Table 13-4.

Copper stock Item tCuf Copper cathodes hanging in EW cells 42.4 Copper in ore to be leached on heaps 1,259.4 Copper in leach solutions, SX organic, and electrolyte 114.0 Total 1,415.8 Table 13-4. Estimated Recoverable Copper in the Plant on October 31, 2017.

By adding the recoverable copper available on October 31, 2017 to the historical copper cathode production, the copper recovery reaches 82.06%, presented on Table 13-5 as corrected copper recovery. The copper recovery considers the global amount of Papomono, Don Gabriel, external, and ENAMI materials, all of them crushed at approximately P80 below 1/2” and P50 below 1/4”.

In April 2017, the quaternary crusher was added after the tertiary crusher and since then crushing improved gradually to P95 below 1/2” and P~71-74 below 1/4”, until October, 2017. Currently the plant is coordinating some final adjustments for achieving in an overall particle size distribution of P95 below 1/2” and P80 below 1/4” to improve overall recovery.

Item Amount Copper cathodes produced (tCuf) 59,991 Recoverable copper stock (tCuf) 1,416 Expected copper production (tCuf) 61,407 Copper fines in treated ore (tCuf) 74,830 Corrected copper recovery (%) 82.06 Table 13-5. Corrected Copper Recovery as of October 31, 2017.

13.1.2 Metallurgical Test Work

13.1.2.1 SGS Column Tests

To evaluate copper recovery, column tests were performed at SGS Minerals Services in 2011 with samples from Papomono and Don Gabriel. In addition column and heap tests were operated by MTV at the mine site in 2016 and 2017 for fresh samples of Papomono and Don Gabriel material, taken after improved access to both deposits.

After plant startup in 2010, twelve leaching columns of 0.19 m diameter (6 columns of 6 m and 6 units of 3 m) were set up at SGS Minerals Services, being operated between February 3rd and October 18th, 2011 during 267 and 273 days. The 6m columns (Columns 1-6) were loaded first

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 49 Salamanca, Coquimbo Region, Chile March 29, 2018 with 3m of heap leach tailings at the lower part and 3m of acid agglomerated fresh ore on the top. The 3m columns (Columns 7-12) were loaded only with acid agglomerated fresh ore. Consequently, all twelve columns generated comparable copper recovery results for the 3m of acid agglomerated ore.

The SGS column tests considered four columns of high grade (HG) copper-bearing material from Papomono (3.72% and 4.06% total copper), four columns of low grade (LG) copper- bearing material from Papomono (1.02% and 1.17% total copper), and four columns of copper- bearing material from Don Gabriel (1.21% and 1.23% total copper). Six columns were loaded with P95 below 1/2” and P50 below 1/4” material and six columns were loaded with P95 below 1/2” and P80 below 1/4” material. On Table 13-6 the sequential analysis is shown for fresh agglomerated material in the 6 m and 3 m columns.

Source Papomono (HG) Papomono (LG) Don Gabriel Columns 1 & 7 4 & 10 2 & 8 5 & 11 3 & 9 6 & 12 P <½” P <½” & 95 P <½” & P <½” & P <½” & P <½” & Size 95 & 95 95 95 95 P50<¼" P50<¼" P80<¼" P50<¼" P80<¼" P80<¼" Total Cu (%TCu) 3.720 4.060 1.023 1.170 1.210 1.230 Acid sol. Cu (%ASCu) 1.240 1.000 0.603 0.690 0.940 0.950 Cyanide sol. Cu 2.410 3.020 0.383 0.390 0.190 0.180 (%CNCu) Residual Cu (%RCu) 0.070 0.040 0.037 0.090 0.080 0.100 Table 13-6. Copper Head Grades for SGS Column Tests.

All columns operated the first 91 days under chemical leaching and the remaining days, until completing a total leach cycle of 267 and 273 days, under bacterial leaching conditions. It has to be pointed out that the MTV plant has been operating with primary (“Oxide”) and secondary (“Sulfide”) leaching under chemical leaching conditions during the whole leaching cycle, taking advantage of the ferric ion generated during leaching of the oxides and sulfides. Besides, the SGS column tests used synthetic solutions with 0.5 g/l Cu, 8 g/l sulfuric acid, and 5 g/l Fe in the chemical leaching period, followed by 0.1 g/l Cu, 5 g/l sulfuric acid, and 5 g/l Fe in the bacterial leaching period. There are differences between the SGS column tests and the definitive plant operation related to ferric versus bacterial leaching, as well as synthetic solutions versus presence of impurities, as shown on Table 13-7 for primary (“Oxide”) and secondary (“Sulfide”) PLS. The high concentration of total sulfate in the MTV plant caused inconveniences to achieve the desired bacterial leaching effect, and was replaced by chemical ferric leaching of cyanide soluble sulfide mineral.

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Element Units Oxide PLS Sulfide PLS Total iron g/l TFe 12.2 11.7 Ferrous ion g/l Fe2+ 8.8 9.3 Manganese g/l Mn 2.96 2.99 Magnesium g/l Mg 18.8 19.0 Aluminum g/l Al 18.9 18.1 2- Total sulfate g/l SO4 207 224 pH - 2.2 2.2 Total suspended solids ppm TSS 16 13 Viscosity cP 5.0 4.8 Table 13-7. Analysis of Impurities in PLS (September 2017 Composite).

On Table 13-8 and Table 13-9 the copper recovery of the SGS column tests are shown for the 3m of fresh agglomerated material, once the leaching cycle was completed. The copper recovery results, as shown, are based on head/tailings analysis. It is remarkable that the lower grade copper material from Papomono showed excellent copper recovery results, even exceeding the higher grade copper material from Papomono.

Source Papomono (HG) Papomono (LG) Don Gabriel Column 1 4 2 5 3 6 TCu recovery (%) 91.2 93.9 91.2 94.8 81.8 87.6 ASCu recovery (%) 93.1 92.6 94.7 97.6 84.1 91.4 CNCu recovery (%) 91.3 95.6 90.3 94.1 74.9 77.6 RCu recovery (%) 56.2 0.8 45.0 76.7 71.7 69.3 Table 13-8. Copper Recovery for the First 3m of the 6m SGS Column Tests (Columns 1-6).

Source Papomono (HG) Papomono (LG) Don Gabriel Column 7 10 8 11 9 12 TCu recovery (%) 86.9 92.1 90.3 92.9 77.8 85.9 ASCu recovery (%) 90.1 90.0 94.7 96.4 83.2 89.3 CNCu recovery (%) 88.6 94.2 88.5 91.7 67.9 77.4 RCu recovery (%) - - 36.0 70.7 37.9 69.0 Table 13-9. Copper Recovery for the 3m SGS Column Tests (Columns 7-12).

An interesting aspect of the SGS column tests is that samples were taken for each meter of loaded agglomerated ore in the twelve columns, as well for each equivalent meter of tailings. On Table 13-10 and Table 13-11 the copper recovery is shown for the top meter of each column.

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Source Papomono (HG) Papomono (LG) Don Gabriel Columns 1 4 2 5 3 6 TCu recovery (%) 96.5 97.6 91.7 95.6 84.2 90.9 ASCu recovery (%) 96.4 98.0 94.7 98.3 87.9 94.0 CNCu recovery (%) 97.3 98.7 90.9 94.6 74.2 80.6 RCu recovery (%) 72.9 7.5 51.4 80.0 65.0 80.0 Table 13-10. Copper Recovery in the Top Meter of the 6m SGS Column Tests (Cols 1-6).

Source Papomono (HG) Papomono (LG) Don Gabriel Columns 7 10 8 11 9 12 TCu recovery (%) 93.4 95.0 93.5 95.9 80.5 92.4 ASCu recovery (%) 96.9 96.3 97.7 98.6 85.3 94.7 CNCu recovery (%) 93.3 95.7 91.4 94.4 72.1 85.0 RCu recovery (%) 37.1 15.0 45.9 82.2 43.8 83.0 Table 13-11. Copper Recovery in the Top Meter of the 3m SGS Column Tests (Cols 7-12).

The SGS column test results are used as convenient reference information, as an acceptable copper recovery was obtained with leaching cycles around 270 days. The comparison factors between P80 below 1/4” against P50 below 1/4” (with P95 below 1/2” in both cases) are of great interest as well. The copper recovery control per column meter represents an important tool for leaching optimization, such as sulfuric acid addition to the agglomeration drum and specification of the heap height.

It is also noted that the finer crush size, P80 < ¼”, Columns 4, 5, 6, 10, 11, and 12, demonstrate a higher increase in recovery for Don Gabriel than Papomono.

13.1.2.2 MTV Heap and Column Tests

As part of the chloride media leach project described in Section 13.2, MTV performed control test columns and heaps during 2016 and 2017 at the mine site with fresh samples of Papomono and Don Gabriel material. The tests were performed for different leaching conditions for about 120 to 140 days in order to achieve high copper recovery in comparison to current leaching conditions for an equivalent leaching cycle. The present statement takes into consideration, in particular, the tests for Heap 26A and Heap 26B, as well as the tests for Column 1 and Column 7, which were performed under leaching conditions currently being applied in the plant.

The tests were performed under equivalent conditions to the plant, considering the same leaching solutions, heap height (3m for test heaps and columns), irrigation rates, and leaching cycle (two steps). The only differences were particle size (P93.5<1/2” and P63.0<1/4” for Don Gabriel as well as P96.1<1/2” and P59.9<1/4” for Papomono) and the number of operation days. The heaps and columns were loaded with acid agglomerated fresh material (agglomerated at 10kg H2SO4/DMT) and the irrigation rate was around 6 to 9 L/h/m2. The copper grades for the heap and column tests are shown respectively on Table 13-12 and Table 13-13.

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Heap Heap 26A Heap 26B Source Don Gabriel Papomono

Particle size P93.5<½” & P63.0<¼” P96.1<½” & P59.9<¼” Dry Material (kg) 626,755 630,781 Head Total Cu (%TCu) 0.95 1.59 Acid sol. Cu (%ASCu) 0.27 0.52 Cyanide sol. Cu (%CNCu) 0.60 0.82 Residual Cu (%RCu) 0.08 0.25 Tailings Total Cu (%TCu) 0.40 0.51 Acid sol. Cu (%ASCu) 0.05 0.09 Cyanide sol. Cu (%CNCu) 0.13 0.17 Residual Cu (%RCu) 0.22 0.25 Table 13-12. Head and Tailings Copper Grades for MTV Heap Tests.

Column Column 1 Column 7 Source Don Gabriel Papomono

Particle Size P93.5<½” & P63.0<¼” P96.1<½” & P59.9<¼” Dry Material (kg) 245 219 Head Total Cu (%TCu) 0.95 1.59 Acid sol. Cu (%ASCu) 0.27 0.52 Cyanide sol. Cu (%CNCu) 0.60 0.82 Residual Cu (%RCu) 0.08 0.25 Table 13-13. Head Copper Grades for MTV Column Tests.

The copper recovery for the heap tests is given in Table 13-14 and the copper recovery for the column tests in Table 13-15.

Heap Heap 26A Heap 26B Source Don Gabriel Papomono Days of Operation 132.9 133.3 Head/solution TCu recovery (%) 58.2 68.2 Head/tailings TCu recovery (%) 57.9 67.9 ASCu recovery (%) 81.5 82.7 CNCu recovery (%) 78.3 79.3 RCu recovery (%) - 0.0 Table 13-14. Copper Recovery for Heap Tests at ~130 Days of Operation.

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Column Column 1 Column 7 Source Don Gabriel Papomono Days of operation 141.3 120.3 Head/solution TCu recovery (%) 56.7 63.5 Table 13-15. Copper Recovery for Column Tests at ~130 Days Average Operation.

The copper recovery curves associated with the heap and column tests as well as their extrapolation to 300 days of leaching operation are further discussed in Section 13.1.4.

13.1.3 Recovery Model

The overall copper recovery model is based on material from Papomono and Don Gabriel in the relative proportions and average grades shown on Table 13-16. The Papomono deposit has higher copper grade in comparison to Don Gabriel in reference to total copper, acid soluble copper, and cyanide soluble copper. The insoluble or residual copper is similar in both deposits.

The mineralogy of both mining properties is similar, except that Don Gabriel requires P80 below 1/4”, instead of P50 below 1/4”, in order to achieve acceptable copper recovery. Therefore, when the mining operation of Don Gabriel was reopened in early 2017, the available quaternary crushing equipment was commissioned shortly thereafter.

Copper grade % of Acid Cyanide Source Mineralized Total Residual soluble soluble Material % TCu % RCu % ASCu % CNCu Papomono 42% 1.32 0.31 0.90 0.09 Don Gabriel 58% 0.91 0.11 0.68 0.11 Total 100% 1.08 0.19 0.77 0.10 Table 13-16. Estimated Material Distribution and Grades for Recovery Model.

By comparing the copper grades on Table 13-16 with grades from both deposits with the historical material treated in the MTV plant, excluding the material from Cumbre, the total copper grade increased by 20% with 59% less acid soluble copper and 150% more cyanide soluble copper. The cyanide soluble copper component has encouraging results in the plant, SGS column tests, and MTV heap and column test work.

Based on available information by October 31, 2017, mineral characteristics and sequential copper grades, the copper recovery statement for Papomono and Don Gabriel mineralized material is presented on Table 13-17. This copper recovery considers 300 days of a double leaching cycle, treating crushed material of P95 below 1/2” and P73 below 1/4”.

The total copper recovery expected for Papomono mineralized material is 81.9% and the total copper recovery expected for Don Gabriel mineral reserves is 78.5%. INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 54 Salamanca, Coquimbo Region, Chile March 29, 2018

Copper recovery Source % Papomono Total copper (TCu) 81.9 Acid soluble copper (ASCu) 90.0 Cyanide soluble copper (CNCu) 85.0 Residual copper (RCu) 35.0 Don Gabriel Total copper (TCu) 78.5 Acid soluble copper (ASCu) 88.0 Cyanide soluble copper (CNCu) 85.0 Residual copper (RCu) 35.0 Table 13-17. Estimated Copper Recovery for Papomono and Don Gabriel at 300 Days Leaching Cycle with P95 < 1/2” and P80 < 1/4”.

The combination of both mineralized material, Papomono and Don Gabriel, allows establishing a combined copper recovery of 80.2%, as shown on Table 13-18.

% of Total copper Copper Source Mineralized grade recovery Material % TCu % Papomono 42% 1.32 81.9 Don Gabriel 58% 0.91 78.5 Total 100% 1.08 80.2 Table 13-18. Estimated Combined Copper Recovery for Papomono and Don Gabriel at 300 Days Leaching Cycle with P95 < 1/2” and P80 < 1/4”.

13.1.4 Recovery Curves

Based on historical plant operation and test work performed at the MTV plant during the years 2016 and 2017, leaching kinetics were obtained for calculation purpose under different leaching cycles and changing mineralized material characteristics for every year during the project life. These curves are shown on Figure 13-1 for Papomono and on Figure 13-2 for Don Gabriel.

The column test for Papomono (Column 7) had the same mineral characteristics in comparison to the test with Heap 26B. An amount of 219 kg of dry material was used in the 3m column test and 630,781 kg of dry material under acid agglomerated conditions was placed on Heap 26B. The material was crushed to P96.1 below 1/2” and P59.9 below 1/4”.

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Figure 13-1. Copper Recovery for Heap and Column Tests for Papomono (Heap 26B and Column 7), Extrapolated to a 300 Day Leaching Cycle.

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Figure 13-2. Copper Recovery for Heap and Column Tests for Don Gabriel (Heap 26A and Column 1), Extrapolated to a 300 Day Leaching Cycle.

In addition, the column test for Don Gabriel (Column 1) had the same mineral characteristics in comparison to the test with Heap 26A. An amount of 245 kg of dry material was used in the 3m column test and 626,755 kg of dry material under acid agglomerated conditions was placed on Heap 26A. The material was crushed to P93.5 below 1/2” and P63.0 below 1/4”.

On Table 13-19 the extrapolated copper recoveries for 300 days of leaching are indicated for the test conditions.

Cu recovery for test Cu recovery extrapolated Source conditions to 300 days % % Papomono 78.8 81.9 Don Gabriel 81.6 78.5 Table 13-19. Comparison of Copper Recovery between Test Conditions and Extrapolated to 300 Days. The estimated leaching kinetics for copper recovery is shown on Figure 13-3 for Papomono and Don Gabriel. The leaching kinetics is determined for calculation purpose specifically for acid soluble copper, cyanide soluble copper, and residual copper.

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Figure 13-3. Copper Recovery for Don Gabriel and Papomono Based on the Copper Recovery Models. 13.1.5 Acid Leach Recovery Summary

A copper recovery model was developed to estimate leaching kinetics for the Papomono and Don Gabriel mineralized material, based on individual copper recovery curves related to acid soluble copper, cyanide soluble copper, and residual copper. This model may be used as well for calculation purpose, in case the leaching cycle is diminished to less than 300 days or the composition of the mineralized material and operational parameters of the plant change during project life.

In view of high impurities content in the Sulfide PLS, bacterial leaching of cyanide soluble copper and insoluble copper, as analyzed, has been replaced by ferric leaching, virtually since plant startup in 2010. The copper recovery statement is based on a ferric concentration of at least 3 g/l Fe3+ in sulfide PLS.

Both Papomono and Don Gabriel mineralized material are very sensitive to acid consumption. The sulfuric acid addition to agglomeration and the sulfuric acid concentration in both raffinate flows to heaps should be reviewed and optimized frequently as a function of ore characteristics, getting metallurgical test work support. Such support should be available, as well, for testing several ferric concentrations and ferric/ferrous ratios in leaching.

Insufficient acid additions to agglomeration and/or to raffinates for heap irrigation may cause a copper recovery drop, whereas excessive acid additions promote the dissolution of unwanted impurities. The heap height of 3 meters should be reduced, if necessary.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 58 Salamanca, Coquimbo Region, Chile March 29, 2018 Based on the performed test work, there is no indication that crushing the ore at P80 below 1/4” may cause permeability problems at an irrigation rate of 8 to 10 L/h-m2.

Acid leach recovery estimates for Don Gabriel and Papomono have been developed based on historic plant performance between 2010 and October 31, 2017, on column tests reported by SGS Minerals Services as an independent laboratory, and on column and heap tests operated by MTV at mine site. The estimated copper recovery for Papomono is 82% and the estimated copper recovery for Don Gabriel is 78.5%, for mineralized material as stated in Table 13-16.

The main assumptions for these copper recovery estimates include:

 Plant feed crushed to P95 below 12.7 mm (1/2”) and P80 below 6.4 mm (1/4”),  Minimum ferric concentration of 3 g/l Fe3+ in sulfide PLS,  Leaching cycle of 300 days, and  Heap height of 3m.

The current crushing plant is capable of the stated size distribution, and the ferric concentration, leach cycle and heap height assumptions are consistent with current practice in the plant.

GV does not know of any deleterious elements that could have a significant effect on potential economic extraction. Recoveries, in particular for the Don Gabriel Manto, are dependent on the particle size distribution discussed above. Failure to meet that will impact recovery and hence economics.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 59 Salamanca, Coquimbo Region, Chile March 29, 2018

13.2 Chloride Leach Process

Processes studies and columns tests conducted by MTV indicated an opportunity to improve sulfide copper recovery results by using a chloride media leaching. This was verified by industrial tests, with material from the Papomono and Don Gabriel deposits, that it is possible to obtain an increment close to 10% on copper recovery, a significant reduction of leaching cycle time and also a reduction in sulfuric acid consumption at the leaching stage.

Based on these studies, MTV retained Propipe S.A. to carry out a prefeasibility study to define the infrastructure required to implement leaching using salt (NaCl), in order to benefit from the expected increase in the recovery and reduced leaching cycle, for sulfide copper treatment.

The objective of this section is to provide an estimate of the achievable copper recovery for Papomono and Don Gabriel ore under chloride leach conditions, based on the report ORYXEIO- MTV-2018-R02-0 from February 2018 (Certificate of Qualified Competency CM-682-032018 from the Chilean Comisión Calificadora de Competencias en Recursos y Reservas Mineras).

13.2.1 Chloride Leach Test Program

Based on exploratory column tests of only one meter, the decision was taken to operate six three meter columns and two heaps of three meter height for Don Gabriel and six three meter columns and two heaps of three meter height for Papomono.

Don Gabriel columns were labeled as Column 1 (C1) to Column 6 (C6) and Don Gabriel heaps as Heap 25A and Heap 26A. Papomono columns were labeled as Column 7 (C7) to Column 12 (C12) and the Papomono heaps as Heap 25B and Heap 26B.

The test program scheduled to operate the columns and the heaps in parallel. For Columns 1 and 7, as well as for Heaps 26A and 26B there was no sodium chloride salt addition in agglomeration and no additional chloride concentration increase in the irrigation flow during leaching. The chloride concentration in leach solutions was around 0.005 to 0.010 g/l Cl.

Heaps 25A and 25B operated with sodium chloride additions in agglomeration, nevertheless without additional chloride concentration increase in the irrigation flow. Columns 2 and 8 operated under equivalent conditions.

All remaining columns had respectively the same sodium chloride additions in agglomeration as Heaps 25A (Don Gabriel) and 25B (Papomono), and miscellaneous chloride concentrations were applied on irrigation flows during leaching. The chloride concentrations scheduled in these column tests were 15 g/l in Column 3 and Column 9, 30 g/l in Column 4 and Column 10, 60 g/l in Column 5 and Column 11, and 90 g/l in Column 6 and Column 12.

13.2.1.1 Column Leach Test Conditions

The leach conditions of the twelve 3 meter columns are described on Table 13-20 and Table 13- 21, respectively for Don Gabriel (C1-C6) and Papomono (C7-C12) column leach test conditions. INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 60 Salamanca, Coquimbo Region, Chile March 29, 2018 The Don Gabriel columns began their effective leaching on October 9, 2016 and the Papomono columns began their effective leaching on October 23, 2016, both right after agglomeration and a rest period of approximately 30 days.

Condition Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Agglomerated ore (kg) 256 284 253 263 274 254 Dry ore (kg) 245 262 234 243 260 235 Total copper (%TCu) 0.95 1.06 1.06 1.06 1.06 1.06 Acid soluble copper (%ASCu) 0.27 0.21 0.21 0.21 0.21 0.21 Cyanide sol. copper (%CNCu) 0.60 0.70 0.70 0.70 0.70 0.70 Residual copper (%RCu) 0.08 0.15 0.15 0.15 0.15 0.15 Particle size below 1/2" (%) 93.5 93.5 93.5 93.5 93.5 93.5 Particle size below 1/4" (%) 63.0 63.0 63.0 63.0 63.0 63.0 Agglomerated ore: H2SO4 (kg/DMT) 10.3 11.0 11.0 11.0 11.0 11.0 NaCl (kg/DMT) 0.0 21.0 21.0 21.0 21.0 21.0 H2O (%) 3.6 5.3 4.9 5.2 2.3 4.9 Initial leaching date 09-10-16 09-10-16 09-10-16 09-10-16 09-10-16 09-10-16 Leaching cycle (days) 141.3 121.3 121.3 121.3 121.3 121.3 First 30 irrigation days: Irrigation rate (m3/h-m2) 8.0 8.0 8.0 8.0 8.0 8.0 Average acid (g/L H2SO4) 8.0 8.0 8.1 8.3 8.5 8.7 Average chloride (g/L Cl) 0.0 0.0 15.5 30.5 61.4 91.3 Average total iron (g/L TFe) 10.9 10.9 10.9 11.0 10.6 10.4 Average ferric iron (g/L Fe3+) 2.7 2.7 2.8 3.0 2.7 2.7 Irrigation after 30 days: Irrigation rate (m3/h-m2) 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 Average acid (g/L H2SO4) 2.5 2.5 3.4 3.7 4.0 3.7 Average chloride (g/L Cl) 0.0 0.0 15.5 30.4 56.9 69.5 Average total iron (g/L TFe) 10.8 10.8 12.2 11.5 11.5 12.1 Average ferric iron (g/L Fe3+) 1.9 1.9 3.6 3.1 3.4 3.5 Table 13-20. Don Gabriel Column Leach Test Conditions – Chloride Leach

In order to compare the column leach tests with the heap leach tests, the following was applied:

 The heap material was agglomerated and transferred to the columns alternatively from the material placed on the heaps or from the trucks transporting the aforementioned agglomerated material to the heaps. This procedure was applied on Don Gabriel material for Heap 26A and Column 1 without any salt addition in agglomeration, and on Papomono material for Heap 26B and Column 7 without any salt addition in agglomeration. The procedure was applied as well on Don Gabriel material for Heap 25A and Columns 2 to 6, with salt addition in agglomeration, and on Papomono material for Heap 25B and Columns 8 to 12, with salt addition in agglomeration as well.  The agglomerated material transferred to the columns had variable moisture content. For a suitable column leach mass balance it was necessary to determine the equivalent amount of dry solids loaded into the columns. For this purpose the proportional amounts of salt and sulfuric acid added to agglomeration was discounted, besides of the effective moisture content of the agglomerated material, as analyzed.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 61 Salamanca, Coquimbo Region, Chile March 29, 2018

Condition Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Agglomerated ore (kg) 240 238 242 236 242 243 Dry ore (kg) 219 211 214 209 215 215 Total copper (%TCu) 1.59 1.62 1.62 1.62 1.62 1.62 Acid soluble copper (%ASCu) 0.52 0.50 0.50 0.50 0.50 0.50 Cyanide sol. copper (%CNCu) 0.82 1.01 1.01 1.01 1.01 1.01 Residual copper (%RCu) 0.25 0.11 0.11 0.11 0.11 0.11 Particle size below 1/2" (%) 96.1 96.1 96.1 96.1 96.1 96.1 Particle size below 1/4" (%) 59.9 59.9 59.9 59.9 59.9 59.9 Agglomerated ore: H2SO4 (kg/DMT) 16.0 16.0 16.0 16.0 16.0 16.0 NaCl (kg/DMT) 0.0 32.0 32.0 32.0 32.0 32.0 H2O (%) 7.0 8.0 8.0 8.0 8.0 8.0 Initial leaching date 23-10-16 23-10-16 23-10-16 23-10-16 23-10-16 23-10-16 Leaching cycle (days) 120.3 120.3 120.3 120.3 120.3 120.3 First 30 irrigation days: Irrigation rate (m3/h-m2) 8.0 8.0 8.0 8.0 8.0 8.0 Average acid (g/L H2SO4) 8.0 8.0 8.1 8.3 8.5 8.7 Average chloride (g/L Cl) 0.0 0.0 15.6 29.3 60.6 91.6 Average total iron (g/L TFe) 10.9 10.9 11.2 11.4 10.6 10.9 Average ferric iron (g/L Fe3+) 2.6 2.6 3.6 3.9 3.3 3.9 Irrigation after 30 days: Irrigation rate (m3/h-m2) 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 4.0-6.0 Average acid (g/L H2SO4) 6.9 2.5 3.3 3.5 3.6 3.8 Average chloride (g/L Cl) 0.0 0.0 ~15 ~30 ~60 ~90 Average total iron (g/L TFe) 10.9 10.7 12.8 12.1 11.2 11.8 Average ferric iron (g/L Fe3+) 2.4 1.9 3.9 3.6 2.8 3.2 Table 13-21. Papomono Column Leach Test Conditions – Chloride Leach

 During the column leach tests the daily solution volumes of plant raffinate solutions added to the columns were measured and analyzed. The daily solution volumes drained from the columns were measured and analyzed as well. The daily total copper recoveries and daily acid consumptions were calculated, the daily ferric and total iron concentrations were analyzed, besides of other controls registered during the respective column leach cycles.  The column leach tailings were analyzed for total copper, acid soluble copper, cyanide soluble copper, and residual copper. These chemical analyses allow determining the feed/tailings copper recovery. The feed/solution copper recovery was obtained by controlling and analyzing the daily in and out solution volumes. For both copper recovery determinations the sequential copper analysis of the feed to the respective heaps was taken into account.

13.2.1.2 Heap Leach Test Conditions

The four heap tests considered two heaps with salt-agglomerated material and two heaps without salt-agglomerated material. Two heaps each were stacked with Don Gabriel material and two heaps with Papomono material. The heap leach test conditions are summarized on Table 13-22.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 62 Salamanca, Coquimbo Region, Chile March 29, 2018 For the purpose of comparison with Column 1 (Don Gabriel without salt), Column 2 (Don Gabriel with salt), Column 7 (Papomono without salt) and Column 8 (Papomono with salt), the sampling for the heap leach tests was done with a similar procedure as used for the column leach tests. Once the leach cycles were concluded, 12 to 15 drilling samples were taken and analyzed for each heap, considering then an average value of all obtained sequential copper analyses.

The heaps were irrigated in the flat area on the top of the heap, evaluating the tonnage of stacked material below the top area on each heap test. At the end of the leach cycle the same area was drilled and sampled in depth by using suitable drilling equipment for tailings. Copper recoveries were obtained by feed/solution and by feed/tailings determinations. The average values for Don Gabriel and Papomono total copper recoveries provide a reasonable result for the heap leach tests, as will be shown in the next section.

Don Gabriel Papomono Condition Heap 25A Heap 26A Heap 25B Heap 26B Agglomerated ore (kg) 655,986 656,445 713,878 684,786 Dry ore (kg) 624,154 626,755 632,871 630,781 Total copper (%TCu) 1.06 0.95 1.62 1.59 Acid soluble copper (%ASCu) 0.21 0.27 0.50 0.52 Cyanide sol. copper (%CNCu) 0.70 0.60 1.01 0.82 Residual copper (%RCu) 0.15 0.08 0.11 0.25 Particle size below 1/2" (%) 93.5 93.5 96.1 96.1 Particle size below 1/4" (%) 63.0 63.0 59.9 59.9 Agglomerated ore: H2SO4 (kg/DMT) 11.0 10.0 16.0 16.0 NaCl (kg/DMT) 21.0 0.0 32.0 0.0 H2O (%) 1.9 3.6 8.0 7.0 Leaching start (date) 09-10-16 09-10-16 23-10-16 23-10-16 Leaching cycle (days) 132.9 132.9 133.3 133.3 First 30 days irrigation: Irrigation rate (m3/h-m2) 8.2 8.2 7.9 7.9 Average acid (g/L H2SO4) 7.9 7.8 8.0 7.8 Average chloride (g/L Cl) 0.0 0.0 0.0 0.0 Average total iron (g/L TFe) 11.3 11.3 10.5 10.6 Average ferric iron (g/L Fe3+) 2.9 2.8 2.0 2.0 Irrigation after 30 days: Irrigation rate (m3/h-m2) 6.2 7.5 6.1 7.4 Average acid (g/L H2SO4) 3.3 6.0 2.9 6.3 Average chloride (g/L Cl) 0.0 0.0 0.0 0.0 Average total iron (g/L TFe) 11.7 11.8 11.9 12.0 Average ferric iron (g/L Fe3+) 2.7 3.1 2.7 3.2 Table 13-22. Don Gabriel and Papomono Heap Leach Test Conditions – Chloride Leach

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 63 Salamanca, Coquimbo Region, Chile March 29, 2018

13.2.2 Chloride Leach Test Results

All test heaps were irrigated for 133 days, whereas the test columns were irrigated for 120 to 141 days. Ahead of irrigation, the agglomerated Don Gabriel and Papomono material had a rest period of one day for Column 1, Column 7, Heap 26A, and Heap 26B (tests without salt), and a rest period of 30 days for all other heaps and columns (tests with salt). During the rest period the agglomerated material was wetted frequently in view of water evaporation, without causing solution drainage.

13.2.2.1 Column Leach Test Results

The column leach test results for Don Gabriel are indicated on Table 13-23 and for Papomono on Table 13-24.

Under planned plant operation, the addition of sodium chloride into the agglomeration drum will transfer chloride into the leach solution. The definitive chloride level in leach solutions will depend on several operating factors and for that reason several chloride concentrations like 0, 15, 30, 60, and 90 g/l chloride levels were scheduled for the test work.

Item Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Head grade: Total copper (%TCu) 0.95 1.06 1.06 1.06 1.06 1.06 Acid soluble copper (%ASCu) 0.27 0.21 0.21 0.21 0.21 0.21 Cyanide sol. copper (%CNCu) 0.60 0.70 0.70 0.70 0.70 0.70 Residual copper (%RCu) 0.08 0.15 0.15 0.15 0.15 0.15 Tailings grade: Total copper (%TCu) 0.48 0.24 0.25 0.22 0.23 0.24 Acid soluble copper (%ASCu) n.a. 0.04 0.04 0.04 0.04 0.03 Cyanide sol. copper (%CNCu) n.a. 0.18 0.14 0.13 0.14 0.14 Residual copper (%RCu) n.a. 0.02 0.07 0.05 0.05 0.07 Recovery by solutions: TCu recovery (%) 56.7% 64.6% 70.1% 70.8% 68.0% 76.3% Recovery by tailings: TCu recovery (%) 49.5% 77.4% 76.4% 79.2% 78.3% 77.4% ASCu recovery (%) - 81.0% 81.0% 81.0% 81.0% 85.7% CNCu recovery (%) - 74.3% 80.0% 81.4% 80.0% 80.0% RCu recovery (%) - 86.7% 53.3% 66.7% 66.7% 53.3% Table 13-23. Don Gabriel Column Test Results – Chloride Leach

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 64 Salamanca, Coquimbo Region, Chile March 29, 2018

Column 7 Column 8 Column 9 Column Column Column Item 10 11 12 Head grade: Total copper (%TCu) 1.59 1.62 1.62 1.62 1.62 1.62 Acid soluble copper (%ASCu) 0.52 0.50 0.50 0.50 0.50 0.50 Cyanide sol. copper (%CNCu) 0.82 1.01 1.01 1.01 1.01 1.01 Residual copper (%RCu) 0.25 0.11 0.11 0.11 0.11 0.11 Tailings grade: Total copper (%TCu) 0.48 0.32 0.33 0.26 0.26 0.34 Acid soluble copper (%ASCu) n.a. 0.09 0.09 0.08 0.11 0.11 Cyanide sol. copper (%CNCu) n.a. 0.18 0.20 0.15 0.12 0.19 Residual copper (%RCu) n.a. 0.05 0.04 0.03 0.03 0.04 Recovery by solutions: TCu recovery (%) 63.0% 72.4% 73.8% 75.2% 76.4% 86.6% Recovery by tailings: TCu recovery (%) 69.8% 80.2% 79.6% 84.0% 84.0% 79.0% ASCu recovery (%) - 82.0% 82.0% 84.0% 78.0% 78.0% CNCu recovery (%) - 82.2% 80.2% 85.1% 88.1% 81.2% RCu recovery (%) - 54.5% 63.6% 72.7% 72.7% 63.6% Table 13-24. Papomono Column Test Results – Chloride Leach

Based on test results and observations made in other plants, the leach solutions will increase the chloride concentrations up to a level where chloride loss equilibrates with the chloride input or feed. By reaching a chloride level in the leach solution of approximately 5 to 15 g/l chloride, the impact on total copper recovery of the chloride level above such concentration will be minor. Such observation was noticed in the chloride column tests at MTV for Don Gabriel and Papomono.

As the heaps operated without chloride in leach solutions, only the average copper recoveries of Columns 3 to 6 were considered for Don Gabriel and the average copper recoveries of Columns 9 to 12 were considered for Papomono. The test Columns 2 and 8 were not included in the aforementioned average values, as these columns were irrigated in absence of chloride in the raffinate solutions, being such a situation not representative of future plant operation, whenever sodium chloride salt is added in agglomeration.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 65 Salamanca, Coquimbo Region, Chile March 29, 2018

On Table 13-25 the respective copper recovery is shown for the evaluated chloride column tests, in reference to Don Gabriel and Papomono.

Don Gabriel Papomono Item Average Columns 3-6 Average Columns 9-12 Head grade: Total copper (%TCu) 1.06 1.62 Acid soluble copper (%ASCu) 0.21 0.50 Cyanide sol. copper (%CNCu) 0.70 1.01 Residual copper (%RCu) 0.15 0.11 Tailings grade: Total copper (%TCu) 0.24 0.30 Acid soluble copper (%ASCu) 0.04 0.10 Cyanide sol. copper (%CNCu) 0.14 0.17 Residual copper (%RCu) 0.06 0.04 Recovery by solutions: TCu recovery (%) 71.3% 78.0% Recovery by tailings: TCu recovery (%) 77.8% 81.6% ASCu recovery (%) 82.1% 80.5% CNCu recovery (%) 80.4% 83.7% RCu recovery (%) 60.0% 68.2% Table13-25. Average Don Gabriel and Papomono Column Test Results – Chloride Leach

13.2.2.2 Heap Leach Test Results

As previously discussed, two heaps were operated with Don Gabriel agglomerated material (Heaps 25A and 26A) and two heaps were operated with Papomono agglomerated material (Heaps 25B and 26B). Two of the four heaps were agglomerated with sodium chloride and sulfuric acid, considering a rest period of 30 days and an acid irrigation period of 133 days (Heaps 25A and 25B). The other two heaps were agglomerated without sodium chloride under current conditions, considering a rest period of only one day and the same irrigation period of 133 days (Heaps 26A and 26B).

The heap leach test results are summarized on Table 13-26.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 66 Salamanca, Coquimbo Region, Chile March 29, 2018

Don Gabriel Papomono Item Heap 25A Heap 26A Heap 25B Heap 26B Head grade: Total copper (%TCu) 1.06 0.95 1.62 1.59 Acid soluble copper (%ASCu) 0.21 0.27 0.50 0.52 Cyanide sol. copper (%CNCu) 0.70 0.60 1.01 0.82 Residual copper (%RCu) 0.15 0.08 0.11 0.25 Tailings grade: Total copper (%TCu) 0.32 0.40 0.35 0.51 Acid soluble copper (%ASCu) 0.06 0.05 0.11 0.09 Cyanide sol. copper (%CNCu) 0.11 0.13 0.11 0.17 Residual copper (%RCu) 0.15 0.23 0.12 0.25 Recovery by solutions: TCu recovery (%) 69.9% 58.2% 78.0% 68.2% Recovery by tailings: TCu recovery (%) 70.0% 57.5% 78.5% 68.1% ASCu recovery (%) 73.4% 82.5% 77.3% 83.2% CNCu recovery (%) 84.3% 78.3% 88.8% 79.8% RCu recovery (%) - - - - Table 13-26. Don Gabriel and Papomono Heap Test Results – Chloride Leach

13.2.3 Column and Heap Leach Comparison

For Don Gabriel, the only column leach results with sodium chloride addition only in agglomeration is Column 2, to be compared with Heap 25A, where sodium chloride was added as well in agglomeration. In both cases chloride was not added to leach solutions.

For Papomono, the only column leach results with sodium chloride addition only in agglomeration is Column 8, to be compared with Heap 25B, where sodium chloride was added as well in agglomeration. In both cases chloride was not added to leach solutions.

The copper recovery of the aforementioned columns and heaps are indicated on Table 13-27.

The results do not show a clear recovery trend, besides the observation that the heaps provide less copper recovery difference between feed/solution and feed/tailings.

Concerning Don Gabriel, the average (total) copper recovery of Heap 25A is 70.0% and the average (total) copper recovery of Column 2 is 71.0%. Both copper recoveries are lower than the average (total) copper recovery of Columns 3 to 6 of 74.6%, considering feed/solution and feed/tailings recoveries.

In reference to Papomono, the average (total) copper recovery of Heap 25B is 78.3% and the average (total) copper recovery of Column 8 is 76.3%. Both copper recoveries are lower than the average copper recovery of Columns 9 to 12 of 79.8%, considering the average value of feed/solution and feed/tailings recoveries.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 67 Salamanca, Coquimbo Region, Chile March 29, 2018

Don Gabriel Papomono Item Heap 25A Column 2 Heap 25B Column 8 Head grade: Total copper (%TCu) 1.06 1.06 1.62 1.62 Acid soluble copper (%ASCu) 0.21 0.21 0.50 0.50 Cyanide sol. copper (%CNCu) 0.70 0.70 1.01 1.01 Residual copper (%RCu) 0.15 0.15 0.11 0.11 Tailings grade: Total copper (%TCu) 0.32 0.24 0.35 0.32 Acid soluble copper (%ASCu) 0.06 0.04 0.11 0.09 Cyanide sol. copper (%CNCu) 0.11 0.18 0.11 0.18 Residual copper (%RCu) 0.15 0.02 0.12 0.05 Recovery by solutions: TCu recovery (%) 69.9% 64.6% 78.0% 72.4% Recovery by tailings: TCu recovery (%) 70.0% 77.4% 78.5% 80.2% ASCu recovery (%) 73.4% 81.0% 77.3% 82.0% CNCu recovery (%) 84.3% 74.3% 88.8% 82.2% RCu recovery (%) - 86.7% - 54.5% Table13-27. Don Gabriel and Papomono Heap and Column Test Results Comparison Chloride Leach

Based on the previous two paragraphs, it is possible to observe a copper recovery increase of 2.6 to 4.0% when chloride is added also to leach solutions instead of just in agglomeration. This increase is slightly higher when the average copper recovery of columns C3-C6 and C9-C12 is compared with the copper recovery of Column 2 and Column 8, respectively.

13.2.4 Impact of Salt Addition in Agglomeration

The current operation at MTV considers traditional agglomeration with concentrated sulfuric acid and water. Salt additions during agglomeration generate oxidizing conditions, suitable to improve the copper recovery of copper sulfides.

In order to amplify the oxidizing ambient, a rest period is recommended after agglomeration. Preliminary evaluation tests for 1 day, 15 days, and 30 days showed that 30 days of rest period improved sulfation up to approximately 45%. The meaning of such behavior is that up to 45% of the copper could be dissolved within the first few days just by rinsing the agglomerated material.

Such preliminary sulfation test results are shown on Table 13-28, where total copper sulfation of chalcocite mineral is compared for different mesh sizes (100% below 1/2” or 100% below 1/4”), chloride additions in agglomeration (10, 20, or 30 kg Cl/DMT), and rest periods (15 days or 30 days).

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 68 Salamanca, Coquimbo Region, Chile March 29, 2018

Total Copper Sulfation (%) Chloride Dose Mesh-1/2” Mesh-1/4” kg Cl/DMT 15 days 30 days 15 days 30 days 0 9.2 8.2 11.2 10.2 10 27.6 34.4 40.3 41.3 20 29.5 36.8 42.9 45.4 30 33.9 43.6 45.4 48.0 Table 13-28. Preliminary Sulfation Test Results – Chloride Leach

By comparing both screen sizes and taking into account the average values, a sulfation increase of 41.3% is obtained for 15 days and a sulfation increase of 17.3% for 30 days of rest period, in favor of the 100% below 1/4” screen size.

In summary, the sodium chloride addition accelerates the initial leaching kinetics and such behavior enables reducing the leach cycle.

13.2.5 Chloride Presence in Leach Solutions

All test heaps operated with few parts per million (ppm) chloride in leach solutions. Based on the results from Section 13.2.3, the absence of chloride in leach solution causes a slightly lower copper recovery. Nevertheless, significant copper recovery differences are not observed by comparing levels between 15, 30, 60, and 90 g/l chloride in leach solutions.

Columns 6 and 12 had some interruption in the leach cycle, due to precipitation problems of sulfate salts. High chloride levels like 90 g/l showed test inconveniences due to high salt additions to the leach solution. This kind of salt addition is not practiced in plant operations, as sodium chloride is added to agglomeration and the chloride concentration in leaching will build up gradually until steady chloride concentrations are achieved.

13.2.6 Crushed Ore Screen Size

The SGS Minerals Services column tests performed in 2011 showed a significant copper recovery improvement particularly for the Don Gabriel mineralized material, once a finer particle size is reached after crushing. MTV is planning to operate the whole crushing plant, including tertiary and quaternary crushing. Under such conditions MTV is planning to achieve P95 below 1/2” and P80 below 1/4”. The SGS column tests showed significant recovery improvements at this crush size, particularly for Don Gabriel. At the time of this report the product size is about 75% passing 1/4”.

13.2.7 Recovery Model

The overall copper recovery model is based on material from Papomono and Don Gabriel in the relative proportions and average grades as was shown on Table 13-16. The Papomono deposit has higher copper grade in comparison to Don Gabriel in reference to total copper, acid soluble copper, and cyanide soluble copper. The insoluble or residual copper is similar in both deposits.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 69 Salamanca, Coquimbo Region, Chile March 29, 2018

The mineralogy of both mining properties is similar, except that Don Gabriel requires P80 below 1/4”, instead of P50 below 1/4”, in order to achieve acceptable copper recovery. On this basis, when the mining operation of Don Gabriel was reopened in early 2017, the available quaternary crushing equipment was re-commissioned shortly thereafter.

Based on information made available by February 10, 2018, the range of copper recovery for Papomono and Don Gabriel resources is shown on Table 13-29. The copper recovery considers an effective leach period between 120 and 180 days for material crushed at P95 below 1/2” and P80 below 1/4”.

The estimated copper recovery for Papomono is 87% and the estimated copper recovery for Don Gabriel is 85%, both at 160 days of effective leaching, considering adequate salt additions in agglomeration.

Copper recovery (%) Source Leach cycle Leach cycle Leach cycle Leach cycle 120 days 140 days 160 days 180 days Papomono Total copper 83.3 85.0 86.6 88.0 Acid soluble copper 82.8 84.4 85.9 87.2 Cyanide soluble copper 86.0 87.7 89.2 90.5 Residual copper 70.1 73.0 75.7 78.1 Don Gabriel Total copper 82.8 84.1 85.4 86.6 Acid soluble copper 87.9 89.2 90.4 91.6 Cyanide soluble copper 86.0 87.4 88.6 89.8 Residual copper 64.2 66.0 67.6 69.2 Table 13-29. Estimated Recovery for Papomono and Don Gabriel under Chloride Leach Conditions at 120, 140, 160, and 180 Days Leaching with Feed Crushed at P95 < 1/2” and P80 < 1/4”.

The copper recoveries indicated on Table 13-29 are based on the following conditions:

 The material to be leached is similar to what is shown on Table 13-16.  The material is crushed at P95 < 1/2” and P80 < 1/4”.  The amount of sulfuric acid and sodium chloride are adjusted to requirements determined as convenient in agglomeration.  Rest period for agglomerated material of 30 days.  Heap height of 3 meters.  Irrigation flow of 8 L/h-m2 during 30 to 60 days in primary or oxide leach.  Complete leach cycle of 120 to 180 days.  Minimum of 10 g/l total iron, 10 g/l chloride, 3 g/l ferric and 8 g/l sulfuric acid concentration in primary or oxide leach.  Minimum of 3 g/l ferric and 10 g/l chloride in secondary or sulfide leach.

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13.2.8 Copper Recovery Curves

Based on the test work performed at the MTV plant during the years 2016 and 2017, leaching kinetics curves under chloride leaching conditions were obtained for calculation purpose under different leaching cycles and changing mineral characteristics for every year during the project life. These curves are shown in comparison to the average column test results (scaled to total copper recovery by tailings) under chloride leaching conditions on Figure 13-4 for Don Gabriel and on Figure 13-5 for Papomono, extrapolating the recovery model to a 180 day leaching cycle in each case. The comparison of the copper recovery model with the individual (unscaled) column test results are shown on Figure 13-6 for Papomono and on Figure 13-7 for Don Gabriel.

Figure 13-4. Copper Recovery for Don Gabriel Column Tests (Average of Columns 3 to 6, Scaled to Total Copper Recovery by Tailings), and Extrapolated to a 180 Day Leaching Cycle under Chloride Leaching Condition.

Figure 13-5. Copper Recovery for Papomono Column Tests (Average of Columns 9 to 12, Scaled to Total Copper Recovery by Tailings), and Extrapolated to a 180 Day Leaching Cycle under Chloride Leaching Conditions.

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Figure 13-6. Copper Recovery for Don Gabriel Column Tests (Columns 3 to 6, Unscaled), and Extrapolated to a 180 Day Leaching Cycle under Chloride Leaching Conditions.

Figure 13-7. Copper Recovery for Papomono Column Tests (Columns 9 to 12, Unscaled), and Extrapolated to a 180 Day Leaching Cycle under chloride leaching conditions.

The estimated total copper recovery kinetics up to 180 days for the Don Gabriel and Papomono mineralized material based on the copper recovery model under chloride conditions is shown on Figure 13-8. The copper recoveries correspond to crushed material at P95 < 1/2” and P80 < 1/4”.

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Figure 13-8. Copper Recovery for Don Gabriel and Papomono under Chloride Leach Conditions.

13.2.9 Summary of Chloride Leach

Chloride leach recovery estimates for Don Gabriel and Papomono have been developed based on column tests and test heaps. The estimates are 88% for Papomono and 87% for Don Gabriel.

The estimates are based on the following assumptions and parameters:

 Particle size distribution of crushed mineral content to P95 < 12.7 mm (1/2 inch) and P80 < 6.4mm (¼ inch),  Leach cycle of 180 days and heap height of 3m,  Minimum chloride concentration of 10 g/l Cl-, ferric above 3 g/l Fe3+, and a minimum total iron concentration of 10 g/l TFe in leach solutions,  The agglomeration process is carried out with NaCl, process water and sulfuric acid,  The agglomerated material needs a rest period of 30 days before leaching, a period in which the material is kept moist,  After the resting period, leaching is carried out.

The acid agglomeration for sulfide copper, allows recoveries close to 60%; when salt is added in agglomeration process, an important increase in recovery is observed in times close to 180 days, considering a rest period of 30 days. Comparing Tables 13-29 with 13-17 indicates a 10.3% increase in recovery for Don Gabriel (86.6% versus 78.5%) and a 7.4% increase for Papomono (88.0% versus 81.9%).

It is observed that the best results are obtained with a dosage of 21 kg NaCl / ton of feed for Don Gabriel material. INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 73 Salamanca, Coquimbo Region, Chile March 29, 2018

The current crushing plant is capable of the stated size distribution, and the ferric and total iron concentration, and the leach cycle and heap height assumptions are consistent with current practice.

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14.0 Mineral Resource Estimates

14.1 Mineral Resource

Table 14-1 presents the mineral resource for the Minera Tres Valles Copper Project.

Table 14-1. Mineral Resource Mining CuT CuT CuS CuCn CuR Copper Resource Class Method Cutoff(%) Ktonnes (%) (%) (%) (%) (klbs) Measured Mineral Resource Don Gabriel Manto OP 0.20 983 0.824 0.128 0.591 0.105 17,857 Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0 PPM Massivo UG 0.34 2,449 1.941 0.466 1.339 0.136 104,796 PPM Cumbre OP 0.19 266 0.485 0.069 0.378 0.037 2,844 PPM Cumbre UG 0.34 0 0.000 0.000 0.000 0.000 0 PPM Mantos Connection UG 0.59 262 1.266 0.414 0.667 0.185 7,312 PPM South UG 0.58 634 1.275 0.244 0.949 0.082 17,821 Epithermal UG 0.65 0 0.000 0.000 0.000 0.000 0 PPM North OP 0.19 102 0.956 0.584 0.222 0.150 2,150 North Manto UG 0.58 834 1.082 0.498 0.522 0.063 19,894 Measured Mineral Resource 5,530 1.416 0.366 0.939 0.111 172,674 Indicated Mineral Resource Don Gabriel Manto OP 0.20 5,476 0.828 0.110 0.625 0.093 99,959 Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0 PPM Massivo UG 0.34 891 1.623 0.428 1.082 0.113 31,881 PPM Cumbre OP 0.19 2,388 0.540 0.096 0.388 0.056 28,429 PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699 PPM Mantos Connection UG 0.59 1,287 1.017 0.325 0.466 0.227 28,856 PPM South UG 0.58 989 0.998 0.319 0.583 0.096 21,760 Epithermal UG 0.65 509 0.980 0.338 0.323 0.320 10,997 PPM North OP 0.19 250 0.999 0.571 0.293 0.135 5,506 North Manto UG 0.58 633 0.967 0.441 0.459 0.067 13,495 Indicated Mineral Resource 12,774 0.868 0.200 0.561 0.108 244,581 Meas/Ind Mineral Resource Don Gabriel Manto OP 0.20 6,459 0.827 0.113 0.620 0.095 117,816 Don Gabriel Veins UG 0.64 0 0.000 0.000 0.000 0.000 0 PPM Massivo UG 0.34 3,340 1.856 0.456 1.270 0.130 136,676 PPM Cumbre OP 0.19 2,654 0.534 0.093 0.387 0.054 31,273 PPM Cumbre UG 0.34 351 0.478 0.040 0.414 0.024 3,699 PPM Mantos Connection UG 0.59 1,549 1.059 0.340 0.500 0.220 36,168 PPM South UG 0.58 1,623 1.106 0.290 0.726 0.091 39,581 Epithermal UG 0.65 509 0.980 0.338 0.323 0.320 10,997 PPM North OP 0.19 352 0.987 0.575 0.272 0.139 7,656 North Manto UG 0.58 1,467 1.032 0.473 0.495 0.065 33,389 Meas/Ind Mineral Resource 18,304 1.034 0.250 0.675 0.109 417,255 Inferred Mineral Resource Don Gabriel Manto OP 0.20 79 0.698 0.501 0.123 0.074 1,216 Don Gabriel Veins UG 0.64 2,020 1.331 0.137 1.043 0.151 59,273 PPM Massivo UG 0.34 22 2.643 0.415 1.977 0.251 1,282 PPM Cumbre OP 0.19 537 0.664 0.167 0.416 0.081 7,861 PPM Cumbre UG 0.34 298 0.530 0.066 0.426 0.038 3,482 PPM Mantos Connection UG 0.59 117 0.792 0.282 0.184 0.325 2,043 PPM South UG 0.58 111 0.947 0.399 0.379 0.168 2,317 Epithermal UG 0.65 223 1.011 0.476 0.207 0.328 4,970 PPM North OP 0.19 13 2.903 0.496 2.227 0.180 832 North Manto UG 0.58 37 1.387 0.702 0.387 0.298 1,131 Inferred Mineral Resource 3,457 1.108 0.188 0.770 0.149 84,408 INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 75 Salamanca, Coquimbo Region, Chile March 29, 2018

The mineral resource estimate is as of January 1, 2018 and is inclusive of the mineral reserves. Measured and indicated mineral resources amount to 18.3 million tonnes at 1.034% total copper (“CuT”) for 417.3 million contained pounds. Inferred mineral resource is an additional 3.46 million tonnes at 1.108% total copper for 84.4 million contained pounds. The table also shows grades for acid soluble copper (“CuS”), cyanide soluble copper (“CuCn”), and residual copper (“CuR”) since these components are used for metal recovery calculations.

To establish “reasonable prospects for eventual economic extraction” as required by NI 43-101, estimated unit costs for mining, processing, G&A, and solvent extraction/electrowinning (“SXEW”), as well as process recoveries have been developed to calculate appropriate cutoff grades for mining. Table 14-3 summaries these parameters. The resources are based on a copper price of US$ 3.30 per pound finished copper.

Process costs and recoveries are based on crushing and heap leaching with sulfuric acid. It is also planned that salt will be added to the leach solutions to add chlorine ions to assist dissolution, particularly of the chalcocite, i.e. chloride leach. The recoveries were incorporated into the model on a block by block basis using the equations on Table 13-29. It can be seen on Table 14-2 that average recoveries vary by deposit due to variations in the acid soluble, cyanide soluble, and residual copper components.

With these parameters, the average copper recovery is estimated at about 87% for the Don Gabriel Manto and Veins. The copper recovery for the various PPM deposits range from 85% for the Epithermal Vein to 90% for Massivo.

The process costs for crushing, agglomeration, leaching, and SX/EW, as well as the cost for G&A and Services were estimated by Propipe and are documented in the report “Compania Minera Tres Valles – Prefeasibility Study – Chloride Media Leaching”.

It is assumed that the Don Gabriel Manto, PPM North and a portion of Cumbre will be mined by open pit methods by a mining contractor. Estimated contract mining costs are $2.35 and $2.15 per tonne for ore and waste respectively. These are based on a quotation from a recognized Chilean contract mining company. This estimate includes the cost for geology, mine engineering, and ore control.

The ore haulage cost is estimated at $2.21 per tonne for Don Gabriel and $1.76 for Papomono, and is based on a contractor quote. The one-way haulage distances are about 17km from Don Gabriel and 12km from Papomono.

The resources for Don Gabriel Manto, PPM North and Cumbre are tabulated inside Lerchs- Grossman (LG) shells run with the economic and recovery parameters. Figure 14-1 through 14- 3 shows these shells. Measured, indicated, and inferred mineral resources were allowed to contribute to the economics to develop the shells.

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Table 14-2. Economic Parameters for Mineral Resource Estimates 2/17/2018 Units DG Manto DG Veins Massivo Cumbre Cumbre Connection PPM South Epithermal PPM North Nth Manto Commodity Prices Copper Price per Pound (US$) 3.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30 3.30 Dilution and Ore Loss Dilution (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Ore Loss (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Mining Cost per Tonne Sub-level Sub-level Proposed Mining Method Open Pit Stoping Block Caving Open Pit Block Caving Front Caving Front Caving Stoping Open Pit Front Caving Mining Cost Per Ore Tonne (US$) 2.35 24.00 8.40 2.35 8.40 22.00 22.00 24.00 2.35 22.00 Mining Cost Per Waste Tonne (US$) 2.15 N.A. N.A. 2.15 0.00 N.A. N.A. N.A. 2.15 N.A. Processing Cost per Ore Tonne Crushing (US$) 1.56 1.56 1.56 1.56 1.56 1.56 1.56 1.56 1.56 1.56 Agglomeration (US$) 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 Leaching (US$) 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 Process Cost (US$) 8.83 8.83 8.83 8.83 8.83 8.83 8.83 8.83 8.83 8.83 Ore Haulage (US$) 2.21 2.21 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76 Total Process and Ore Haulage (US$) 11.04 11.04 10.59 10.59 10.59 10.59 10.59 10.59 10.59 10.59 G&A and Services per Pound General and Administrative (US$) 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 Services (US$) 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 G&A and Services (US$) 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 Average Recovery Total Copper (%) 87% 87% 89% 89% 89% 87% 89% 85% 89% 90% SX/EW Cost per Pound Solvent Extraction (US$) 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Electrowinning (US$) 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 SX/EW Cost (US$) 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 Cutoff Grades (Total Copper) Internal (Mining is Sunk Cost) (%) 0.20 N.A. N.A. 0.19 N.A. N.A. N.A. N.A. 0.19 N.A. Breakeven (%) 0.24 0.64 0.34 0.23 0.34 0.59 0.58 0.65 0.23 0.58

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The estimated internal cutoff grades for the Don Gabriel Manto, PPM North, and Cumbre pits are 0.20%, 0.19% and 0.19% total copper respectively. Internal cutoff grade applies to blocks that have to be removed from the pit, so mining is considered a sunk cost. The blocks only have to pay processing, ore haulage, G&A, SXEW, and the $0.20 differential between ore and waste mining cost. The resources for the open pits on Table 14-1 are based on internal cutoff grade.

For the underground deposits proposed underground mining methods were selected for each deposit and approximate mining costs for the various methods estimated. The proposed methods and costs are:

Block Caving Massivo, Cumbre $8.40 per ore tonne Front Caving PPM South, Connection, North Manto $22.00 per ore tonne Sub-level Stoping DG Veins, Epithermal $24.00 per ore tonne

There is a portion of Cumbre beneath the existing and potential open pit that might be amenable to underground mining. Estimated breakeven cutoff grades for each deposit are shown on Table 14-3. The mineral resources for underground mining for each deposit are tabulated at these cutoff grades.

The mineral resources are in-situ estimates. IMC has not included any dilution or ore loss assumptions in the estimates. This will be done during the evaluation of potential mineral reserves.

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Figure 14-1. Don Gabriel Manto Resource Cone Shell, IMC 2018

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Figure 14-2. PPM North Resource Cone Shell, IMC 2018

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Figure 14-3 Cumbre Resource Cone Shell, IMC 2018

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14.2 Description of the Block Models

The mineral resources are based on block models developed by IMC from October 2017 to February 2018. There are two block models, one for the Don Gabriel Manto and veins, and one for the seven Papomono deposits.

14.2.1 Don Gabriel

14.2.1.1 General

The resource block model was developed by IMC during October and November 2017; it was completed on November 29, 2017. The model is based on 5m by 5m by 5m blocks and includes the Don Gabriel Manto and veins in the same model. The model is rotated 45o to align with the strike of the veins.

14.2.1.2 Geologic Controls

MTV personnel provided the following geologic solids Don Gabriel model:

 The Don Gabriel Manto interpreted at a copper cutoff grade of about 0.2%,  A sandstone volcanic unit that is below the manto,  As intrusive sill unit that is above the manto,  An intrusive unit that is related to the Don Gabriel veins, and  Twenty-two mineralized, near vertical, veins.

IMC reviewed and incorporated the MTV solids for the sandstone, intrusive sill, the intrusive related to the veins, and the Don Gabriel veins into the updated block model.

IMC did, however, develop an updated interpretation for the manto unit. IMC’s interpretation was developed using the Leap Frog implicit modeling software. The interpretation was developed based on the 1m assay intervals and was also based on a 0.2% copper grade. Parameters provided for the interpretation included the approximate strike and dip of the manto unit and factors to elongate the interpretation in the strike and dip directions versus the tertiary direction, i.e. to preserve the general shape of the unit. This interpretation was incorporated into the IMC model.

It is noted that the Don Gabriel Manto interpretation is based on individual assays and it should be considered an in-situ representation of mineralization and minimal mining dilution is incorporated into the model.

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The rock type model for Don Gabriel, model variable “rock”, is defined as follows:

Table 14-3. Don Gabriel Model Rock Codes IMC Code Description 10 Upper Sill 20 Sandstone 30 Intrusion 50 Don Gabriel Manto 60 Don Gabriel Veins 70 Host Rock 90 Waste or Fill

The codes for the Upper Sill, Sandstone, and Intrusion were assigned to the nearest whole block, i.e. the code was assigned if more than 50% of the block was included in the solid. The Don Gabriel Manto and veins, codes 50 and 60, were coded on a partial block basis, i.e. these blocks were coded if any portion of the solid was included in them. Figure 14-4 shows a cross section of the Don Gabriel rock types. Figure 10-3 shows the location of the cross section.

IMC also included geologic variables “vein” and “pct_vein” to code the Don Gabriel Manto and the individual veins and the decimal percent (0 to 1) of the block in the manto or vein. The vein codes were from 1 to 22 and the manto was coded as vein 50. Figure 14-5 shows the approximate locations and identifiers for the Don Gabriel veins. Comparing this figure with Figure 10-3 shows them to be in the northwest portion of the model area. The N45oW strike of the vein system is also evident in the figure.

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Figure 14-4. Don Gabriel Rock Types on Section 10, IMC 2017

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Figure 14-5. Don Gabriel Veins, IMC 2017

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14.2.1.3 Cap Grades and Compositing

Don Gabriel Manto

IMC reviewed the distribution of assays in the manto and capped assays at 3.4% total copper. This was at the 98 percentile so 2% of the assays were impacted. This is 84 assays with a mean value of 4.25% total copper. Figure 14-6 shows a probability plot for original assays (green) and capped assays (red) in the manto. Figure 14-7 shows the probability plot for 5m composites.

For sample intervals with capped total copper assays, IMC reduced the soluble copper assays by the same proportion that the total copper assays were reduced. For example, for a 4% copper assay capped at 3.4% total copper all the soluble copper assays were also factored by 3.4/4.0 or 0.85.

The soluble copper assays were generally not completed when total copper was less than 0.2% and a considerable number of assays in the manto are lower than this threshold. This truncation of the lower end of the distribution could result in a distortion of the soluble copper block grade estimates, unless corrected.

It was also noted that the manto somewhat naturally divides into an upper portion that is oxide dominant, acid soluble copper > cyanide soluble copper, and a lower portion that is sulfide dominant, acid soluble copper < cyanide soluble copper. Figure 14-8 shows assays in the manto that illustrates this. Note that the cyanide soluble assay follows the acid soluble assay, so it only measures mineral that is not acid soluble in character; chalcocite or bornite would be the most common copper minerals species.

IMC filled in the missing soluble copper assays as follows. For oxide dominant material the acid soluble copper was set to 0.70 x total copper and the cyanide soluble copper was set to 0.15 x total copper. For sulfide dominant material the soluble copper was set to 0.15 x total copper and the cyanide soluble copper was set to 0.70 x total copper. These ratios are based on the statistics for the oxide and sulfide dominant populations for the available assays. Note that these filled in missing values are mostly place holders in the lower grade data; some variance in these values won’t have a material impact on final results.

The assay database was then composited to 5m composites, respecting the manto contacts, i.e. only assays in the manto were composited. Single assays down to 1m in length were allowed to form a composite in narrow zones.

Table 14-4 shows summary statistics for assays and 5m composites for: 1) all assays/composites in the manto, 2) capped values, 3) uncapped assays greater than 0.2% copper, and 4) capped assays greater than 0.2% copper. For composites, it can be seen that 802 out of 917 composites are above 0.2% copper, or 87.5% of the composites exceed the nominal design cutoff of 0.2% copper. For assays 3,237 of the 4,316 assays (75.0%) are above the 0.2% threshold. This is a good result with only 25.0% of the assays in the manto below 0.2% copper.

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Figure 14-6. Probability Plot of Assays in Don Gabriel Manto – Total Copper

Figure 14-7. Probability Plot of 5m Composites in Don Gabriel Manto – Total Copper

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Table 14-8. Oxide Versus Sulfide Dominant Assays in Don Gabriel Manto

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Table 14-4. Summary Statistics of Assays and Composites in DG Manto-Total Copper Assays All All >= 0.2% Cu >=0.2% Cu Parameter Uncapped Capped Uncapped Capped Number of Samples 4,316 4,316 3,237 3,237 Mean 0.757 0.740 0.984 0.962 Standard Deviation 0.865 0.799 0.889 0.808 Minimum 0 0 0.2 0.2 Maximum 6.54 3.40 6.54 3.40 5m Composites All All >= 0.2% Cu >=0.2% Cu Parameter Uncapped Capped Uncapped Capped Number of Samples 917 917 802 802 Mean 0.720 0.706 0.805 0.789 Standard Deviation 0.591 0.555 0.584 0.544 Minimum 0.005 0.005 0.20 0.20 Maximum 3.60 2.89 3.60 2.89

Don Gabriel Veins

IMC reviewed the distribution of assays in the veins and capped assays at 4.4% total copper. During the analysis it was noted that hole PPM-DGAB-DH0059 accounted for 28 of 104 vein assays exceeding 4% total copper. This is a near vertical hole that went down vein 15. The cap grade is at the 95 percentile of the assays in the veins, except that DH0059 was excluded for the determination of the percentile ranking. Capped assays amount to 79 assays with a mean value of 6.1% total copper. Figure 14-9 shows a probability plot for original assays (green) and capped assays (red) in the manto. Figure 14-10 shows the probability plot for 5m composites.

As with the Don Gabriel Manto, for sample intervals with capped total copper assays, the soluble copper assays were reduced by the same proportion that the total copper assays were reduced.

Figure 14-11 shows the plot of cyanide soluble versus acid soluble copper assays for 1m assay intervals. This illustrates that the veins are predominantly sulfide dominant mineralization.

As with the Don Gabriel Manto, there are assay intervals in the veins where the soluble copper assays were not done. IMC filled in the missing soluble copper assays as follows. For oxide dominant material the acid soluble copper was set to 0.82 x total copper and the cyanide soluble copper was set to 0.10 x total copper. For sulfide dominant material the soluble copper was set to 0.075 x total copper and the cyanide soluble copper was set to 0.82 x total copper.

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Figure 14-9. Probability Plot of Assays in Don Gabriel Veins – Total Copper

Figure 14-10. Probability Plot of 5m Composites in Don Gabriel Veins – Total Copper INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 90 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-11. Oxide versus Sulfide Dominant Assays in Don Gabriel Veins

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The assay database was then composited to nominal 5m composites, respecting the vein contacts, i.e. only assays in the vein were composited. Single assays down to 1m in length were allowed to form a composite if they were the only assay in the hole to intersect the vein.

Tables 14-5 and 14-6 show summary statistics by vein for assays and 5m composites respectively. Each table shows the number of holes that intersect each vein, the number of samples contained in each vein, and the mean, standard deviation, and maximum value for total copper for uncapped and capped data. It can be seen that veins 5, 6, 10, 11, and 16 are intersected by 2 or less holes. Veins 12, 14, 15, and 17 are intersected by 7 or more holes. Note that only 36 holes intersect the veins. Most of the holes intersect multiple veins, so the summation of the number of holes column for all veins is considerably greater than 36.

Based on the probability plots (Figures 14-9 and 14-10) it can be seen that 80% of the assays in the veins exceed 0.2% total copper; 20% of the assays are less than 0.2% copper. For composites, about 92% of the composites exceed 0.2% total copper.

Table 14-5. Summary Statistics for Assays in Don Gabriel Veins Not Capped Assays Capped at 4.4% CuT No. of No. of Mean Std Dev Max Mean Std Dev Max Vein Holes Samples %Cu %Cu %Cu %Cu %Cu %Cu V1 3 31 0.722 1.002 4.27 0.722 1.002 4.27 V2 3 30 0.482 0.320 1.22 0.482 0.320 1.22 V3 4 84 1.848 1.703 5.55 1.791 1.598 4.40 V4 6 30 1.179 1.508 7.36 1.081 1.143 4.40 V5 2 11 2.015 1.191 4.18 2.015 1.191 4.18 V6 2 30 1.532 1.198 4.91 1.515 1.151 4.40 V7 4 80 1.492 1.494 8.00 1.424 1.279 4.40 V8 5 94 1.451 1.592 6.29 1.380 1.416 4.40 V9 4 33 0.558 0.521 2.10 0.558 0.521 2.10 V10 2 9 0.993 0.824 3.10 0.993 0.824 3.10 V11 1 7 0.451 0.413 1.37 0.451 0.413 1.37 V12 8 74 1.043 1.283 5.95 1.006 1.161 4.40 V13 5 71 1.312 1.427 7.34 1.245 1.204 4.40 V14 8 65 1.449 2.538 12.60 1.049 1.347 4.40 V15 10 209 2.329 2.286 9.15 1.987 1.645 4.40 V16 2 24 0.264 0.379 1.52 0.264 0.379 1.52 V17 7 100 0.696 0.760 3.43 0.696 0.760 3.43 V18 6 101 1.154 1.460 9.28 1.063 1.063 4.40 V19 3 36 1.031 1.320 5.25 0.988 1.189 4.40 V20 6 62 0.834 0.909 4.01 0.834 0.909 4.01 V21 4 40 0.523 0.471 1.71 0.523 0.471 1.71 V22 3 16 0.786 0.708 2.88 0.786 0.708 2.88 TOTAL 36 1237 1.332 1.662 12.60 1.222 1.314 4.40 Note: Most holes intersect more than 1 vein. INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 92 Salamanca, Coquimbo Region, Chile March 29, 2018 Table 14-6. Summary Statistics for Composites in Don Gabriel Veins Not Capped Assays Capped at 4.4% CuT No. of No. of Mean Std Dev Max Mean Std Dev Max Vein Holes Samples %Cu %Cu %Cu %Cu %Cu %Cu V1 3 6 0.699 0.563 1.78 0.699 0.563 1.78 V2 3 7 0.500 0.084 0.60 0.500 0.084 0.60 V3 4 17 1.750 1.535 4.42 1.696 1.443 4.06 V4 6 9 1.067 0.928 3.22 0.992 0.739 2.53 V5 2 3 1.827 0.654 2.56 1.827 0.654 2.56 V6 2 6 1.532 0.824 3.01 1.515 0.788 2.91 V7 4 16 1.475 0.977 3.99 1.407 0.839 3.18 V8 5 15 1.395 1.322 4.76 1.324 1.146 4.10 V9 4 7 0.586 0.147 0.73 0.586 0.147 0.73 V10 2 2 0.923 0.453 1.24 0.923 0.453 1.24 V11 1 2 0.451 0.232 0.62 0.451 0.232 0.62 V12 8 15 1.064 0.979 3.31 1.034 0.937 3.20 V13 5 15 1.222 0.906 3.41 1.163 0.780 2.61 V14 8 15 1.338 1.820 5.60 0.991 1.082 3.27 V15 10 39 2.290 1.867 7.17 1.959 1.329 4.40 V16 2 4 0.268 0.179 0.51 0.268 0.179 0.51 V17 7 21 0.681 0.519 2.01 0.681 0.519 2.01 V18 6 19 1.169 1.095 5.09 1.072 0.764 3.31 V19 3 8 0.944 0.787 2.57 0.908 0.706 2.30 V20 6 13 0.842 0.647 2.24 0.842 0.647 2.24 V21 4 7 0.509 0.233 0.88 0.509 0.233 0.88 V22 3 5 0.808 0.552 1.69 0.808 0.552 1.69 TOTAL 36 251 1.277 1.281 7.17 1.175 1.017 4.40 Note: Most holes intersect more than 1 vein.

14.2.1.4 Block Grade Estimation

Don Gabriel Manto

IMC conducted a variogram analysis of the 5m composites in the Don Gabriel Manto. The manto strikes N70oW with an approximate 30o SW dip. Figure 14-12 shows the variogram in the strike direction, the primary direction. The nugget to sill ratio is relatively high. This is a pairwise relative variograms. This method has some data smoothing built into the calculations. For pairwise relative variograms the sill should theoretically tend to the variance divided by the mean squared of the data and is dimensionless. This would be about 0.67 for this data. The fit sill of 0.54 is lower than this value.

IMC estimated block grades for total copper, acid soluble copper, and cyanide soluble copper using inverse distance with a power weight of 2 (ID2). The search radii are 55m along strike, 45m down dip, and 20m in the tertiary direction, and are consistent with the variogram ranges in the various directions. A maximum of eight composites, a minimum of two composites, and also

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 93 Salamanca, Coquimbo Region, Chile March 29, 2018 a maximum of two composites per hole were used in the estimation. The effect of inverse distance weighting along with a relatively low number of composites should produce relatively unsmoothed estimates of block grades based on the composites, i.e. the estimates should not be overly smeared.

The grade estimates were reviewed on cross sections and appear to follow the mineral trends evident in the composites well. Figure 14-13 shows a cross section of total copper block grades.

Don Gabriel Veins

The Don Gabriel veins strike N45oW with a near vertical dip. The search radius was 75m along strike, 75m down dip, and 30m in the tertiary direction. A maximum of eight composites, a minimum of one composite, and also a maximum of two composites per hole were used in the estimation. Total copper and the various soluble copper grades were estimated with the same parameters. It is noted that these are longer search radii and a lower minimum number of composites than was used for the manto. This was to fill in most of the vein blocks with a grade estimate. Note however that not all of this potentially mineralized material is classified as potential mineral resource.

After the grade estimates were completed for the manto and veins, a check was made for blocks with acid soluble plus cyanide soluble copper greater than total copper. These amounted to three blocks in the manto and 17 blocks in the veins. The soluble copper grades were factored to equal total copper. Residual copper was then calculated as total copper – acid soluble copper – cyanide soluble copper for all blocks.

14.2.1.5 Oxide versus Sulfide Dominant

Upon completion of the grade estimation, the blocks were segregated into oxide dominant and sulfide dominant domains based on the soluble copper block grades. Blocks with acid soluble copper greater than cyanide soluble copper are deemed to be oxide dominant and blocks with cyanide soluble copper greater than or equal to acid soluble copper are deemed sulfide dominant.

The variable “oxslf” in the block model is set to 1 for oxide dominant and 2 for sulfide dominant. About 20% of the blocks in the manto are oxide dominant and 80% are sulfide dominant. For the veins, about 4% of the blocks are oxide dominant and 96% are sulfide dominant.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 94 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-12. Don Gabriel Manto Variogram – Along Strike

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 95 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-13. Total Copper Grades for Don Gabriel Manto on Section 10, IMC 2017

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14.2.1.6 Resource Classification

Don Gabriel Manto

For the purpose of classifying the mineral resources of the Don Gabriel Manto, an additional block estimate was done. It was based on search radii of 60m along strike, 60m down dip and 25m in the tertiary direction. The estimate was also based on a maximum of four composites, a minimum of four, and a maximum of one composite per hole. This estimate provides the average distance to the nearest four holes to each block and was put into the block model. Figure 14-14 shows the probability plot of the average distances. Blocks with an average distance less than or equal to 20m were assigned as measured mineral resource. These blocks amount to about 14.3% of the blocks. Blocks with an average distance between 20 and 45m were assigned as indicated mineral resource. These blocks amount to about 81.0% of the blocks. Blocks with an average distance to four holes greater than 45m were assigned to inferred mineral resource and were about 4.7% of the blocks. Figure 14-15 shows the resource classification on a cross section.

Don Gabriel Veins

For the purpose of classifying the mineral resources of the Don Gabriel veins, an additional block estimate was done. It was based on the search radii of 75m along strike, 75m down dip and 30m in the tertiary direction, the same as the grade estimates. The estimate was also based on a maximum of two composites, a minimum of two, and a maximum of one composite per hole. This estimate provides the average distance to the nearest two holes to each block and was put into the block model. Blocks with an average distance less than or equal to 60m were assigned as inferred mineral resource. These blocks amount to about 62% of the blocks. Blocks with an average distance to two holes greater than 60m, the remaining 38% of the blocks, are assumed to be additional mineral inventory. Some official reporting guides use the category “Exploration Target” to describe this mineralization.

There are a couple important guidelines in the various reporting codes concerning inferred mineral resource:

 It is expected that the majority, i.e. at least 50%, of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration, and  Extrapolation of mineral resources to distances greater than the nominal drill grid spacing is strongly discouraged.

For this analysis, IMC is assuming an average distance of less than 60m to the nearest two holes defines a reasonable maximum limit of extrapolation of the data. Significant drilling is required to upgrade the Don Gabriel Veins to measured and indicated mineral resources, but it appears to be a significant opportunity for the project.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 97 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-14. Probability Plot of Average Distance to Nearest 4 Holes – Don Gabriel Manto

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 98 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-15. Resource Classification for Don Gabriel Manto on Section 10, IMC 2017

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 99 Salamanca, Coquimbo Region, Chile March 29, 2018

14.2.1.7 Bulk Density

The Don Gabriel drillhole database includes 4368 specific gravity determinations on short pieces of core. The estimates were done by sealing the core in paraffin, weighing the sample in air and submerged in water. The original specific gravity measurements were received by IMC and included the weight as received at the lab, the dry weight, the weight with paraffin, and the submerged weight. IMC checked the calculations to verify that the final result was a dry specific gravity adjusted for the volume and weight of paraffin. IMC also verified the values were correctly loaded in the database. IMC back-loaded the model rock type onto this database to calculate the specific gravity by model rock types. Values greater than 5 and values less than 1.5 were excluded.

Table 14-7. Specific Gravity and Bulk Density for Don Gabriel Units IMC No. of Average Bulk Bulk Density Code Description Samples Sp. Grav. Factor (t/m3) 10 Upper Sill 62 2.819 98.0% 2.763 20 Sandstone 263 2.781 98.0% 2.725 30 Intrusion 176 2.801 98.0% 2.745 50 Don Gabriel Manto 1488 2.711 97.0% 2.630 60 Don Gabriel Veins 459 2.710 98.0% 2.656 70 Host Rock 1878 2.733 98.0% 2.678 90 Fill 2.00

The average specific gravity was reduced 2% for all rock types, except the Don Gabriel Manto, to obtain an estimate of bulk density. This is to allow for voids in the rock mass at a larger scale than what could be captured in the small core samples. A 3% reduction was used for the Don Gabriel Manto; by nature it includes numerous small scale vugs.

14.2.1.8 Topography

Topography in the Don Gabriel model is as of January 1, 2018. There is current mining activity at Don Gabriel. The topography was assembled from several source maps. IMC used the various sources to construct as accurate topography as possible. Fill blocks, where current topography is higher than pre-mine topo (or other available mine topographies), were added to the model as rock code 90.

14.2.1.9 Vein Resources by Individual Vein

Table 14-8 presents the mineral resource for the Don Gabriel veins by individual vein at a total copper cutoff of 0.64%. All the resource is classified as inferred mineral resource. The table also shows the number of drillholes that intersect each vein. The inferred mineral resource amounts to 2,020 ktonnes at 1.331% total copper for 59.3 million pounds of contained copper. This is the largest inferred mineral resource for any of the Don Gabriel or Papomono mineral deposits.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 100 Salamanca, Coquimbo Region, Chile March 29, 2018 Table 14-8. Mineral Resource for Don Gabriel Veins-0.64% CuT Inferred Mineral Resource Additional Mineral Inventory No. of CuT CuS CuCn CuR Copper Vein Holes Ktonnes % % % % (mlbs)

V1 3 56 0.873 0.366 0.454 0.053 1.1 V2 3 0 0.000 0.000 0.000 0.000 0.0 V3 4 187 1.631 0.489 0.965 0.177 6.7 V4 6 54 0.950 0.076 0.738 0.136 1.1 V5 2 13 1.877 0.116 1.663 0.099 0.5 V6 2 39 1.549 0.102 1.376 0.071 1.3 V7 4 177 1.410 0.093 1.203 0.114 5.5 V8 5 164 1.157 0.079 1.020 0.058 4.2 V9 4 8 0.663 0.061 0.235 0.367 0.1 V10 2 0 0.000 0.000 0.000 0.000 0.0 V11 1 0 0.000 0.000 0.000 0.000 0.0 V12 8 94 1.238 0.084 1.115 0.038 2.6 V13 5 138 1.196 0.080 0.917 0.199 3.6 V14 8 116 1.303 0.076 1.147 0.081 3.3 V15 10 380 1.838 0.111 1.527 0.200 15.4 V16 2 0 0.000 0.000 0.000 0.000 0.0 V17 7 27 0.738 0.092 0.463 0.183 0.4 V18 6 307 0.986 0.080 0.731 0.175 6.7 V19 3 73 1.340 0.130 0.974 0.236 2.2 V20 6 160 1.128 0.087 0.850 0.190 4.0 V21 4 23 0.774 0.158 0.528 0.087 0.4 V22 3 3 0.880 0.154 0.678 0.049 0.1 TOTAL 36 2,020 1.331 0.137 1.043 0.151 59.3 Note: Most holes intersect more than 1 vein.

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14.2.2 Papomono

14.2.2.1 General

The resource block model was developed by IMC during December 2017 through February 2018, with completion of the final deposit about February 9, 2018. The model is based on 5m by 5m by 5m blocks and includes all the Papomono deposits in the same model. The model is rotated 40.4o counterclockwise to align with the strike of several of the deposits.

14.2.2.2 Geologic Controls

Recall that Figure 10-4 shows the various Papomono area mineral deposits and the location of the drillholes.

The rock types included in the Papomono block model are as follows:

Table 14-9. Papomono Rock Types Rock Code Unit Description 100 Dio Diorite 110 Grn Granodiorite 210 C Unit C 220 B Unit B 230 A Unit A

Units A, B, and C are various volcanic flows. MTV personnel provided solids for the geologic units and they were incorporated into the model in the variable “rock”.

The main control for grade estimation in each zone is a grade shell designed at a 0.2% total copper cutoff grade. Below this threshold the AA total copper and soluble copper assays were not done. An initial design for each of the shells was provided by MTV personnel. IMC developed an updated interpretation for most of the deposits using the Leap Frog implicit modelling software. IMC’s interpretation was also based on a 0.2% copper grade cutoff and used the MTV interpretation to guide the updated designs. Massivo was interpreted as two solids, one relatively steep, paralleling the Papomono fault zone, and also a flatter dipping solid to model the manto style mineralization. PPM South was also interpreted as two solids, one east of the Papomono Fault Zone and one west of the fault. For Cumbre, PPM North, and Mantos North IMC reviewed and accepted the MTV interpretation of the grade shells.

It is noted that the interpretation for all the grade shells are based on individual assays and should be considered an in-situ representation of mineralization; minimal mining dilution is incorporated into the grade solids for the model.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 102 Salamanca, Coquimbo Region, Chile March 29, 2018

The grade shells for the various Papomono deposits are defined as follows:

Table 14-10. IMC Grade Shells IMC Code Description 10 Massivo Steep Zone 15 Massivo Flat Zone 20 Cumbre 30 Mantos Connection 40 Papomono South – East 45 Papomono South – West 50 Epithermal 60 Papomono North 70 Mantos North

The codes for the grade shells are coded on a partial block basis, i.e. these blocks were coded if any portion of the solid was included in them.

Figure 14-16 shows a more detailed view of the Massivo deposit drilling and also the location of Section 30. Figure 14-17 shows the rock types, Papomono fault zone, and grade shell for Massivo. It can be observed that the grade shell is mostly in Unit A of the volcanic units.

Figures 14-18 and 14-19 show a detailed view of PPM South drilling and also the rock types and grade shell. This is also hosted mostly in Unit A. Though not shown on the section, the Papomono fault divides the grade shell into east and west components; this is evident in the offset visible in Unit B on the figure. These figures are also considered representative of the Mantos Connection and Mantos North deposits.

Figures 14-20 and 14-21 show detailed views of the Cumbre drilling and the rock types and grade shell. The deposit is hosted in a diorite intrusion and Unit C of the volcanic flow sequences. The higher copper grades tend to be in Unit C, and it appears that much of this higher grade material was extracted in the existing Cumbre pit.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 103 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-16. Massivo Deposit and Drilling, IMC 2018

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Figure 14-17. Massivo Deposit - Rock Types and Grade Shell on Section 30, IMC 2018

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Figure 14-18. PPM South Deposit and Drilling, IMC 2018

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Figure 14-19. PPM South Deposit. Rock Types and Grade Shell on Section 18, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 107 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-20. Cumbre Deposit and Drilling, IMC 2018

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Figure 14-21. Cumbre Deposit. Rock Types and Grade Shell on Section 34, IMC 2018

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14.2.2.3 Cap Grades and Compositing

IMC reviewed the distribution of assays in the grade shells by deposit and applied caps as shown in Table 14-11. These generally corresponded to breaks in the grade distribution as evident in probability plots. Figures 14-22 and 14-23 show examples for Massivo and PPM South respectively.

Table 14-11. Cap Grades for Papomono Deposits - Assays Cap Grade Approximate Average Grade Deposit (%CuT) Percentile Number Capped (%CuT) Massivo 13.5% 99.5% 16 15.9% Cumbre 5.9% 99.5% 11 7.94% Connection 6.5% 98.5% 16 10.7% PPM South 6.5% 98.5% 20 8.19% Epithermal 3.5% 98.7% 6 5.19% PPM North 6.5% 98.5% 9 8.90% Mantos North 10.0% 99.0% 44 14.3%

For sample intervals with capped total copper assays, IMC reduced the soluble copper assays by the same proportion that the total copper assays were reduced. For example, for a 15% copper assay in Massivo capped at 13.5% total copper all the soluble copper assays were also factored by 13.5/15 or 0.90.

The assay database was then composited to 5m composites, respecting the grade shell contacts, i.e. only assays in the grade shells were composited. Single assays down to 1m in length were allowed to form a composite in narrow zones. Epithermal was composited to 2.5m composited due to the narrow nature of the veins.

Tables 14-12 and 14-13 show the summary statistics for assays and composites respectively. They show: 1) all assays/composites in the grade shell, 2) uncapped values greater than 0.2% copper, 3) capped values, and 4) capped values greater than 0.2% copper.

The rightmost column of Tables 14-12 and 14-13 show the percentage of the assays or composites in the grade shells that exceed the 0.2% copper design cutoff. This is a measure that indicates the efficiency of the shells. The percentage of composites above 0.2% in the grade shells exceeds 80% for all deposits, except Mantos North. This is a good result for the designs. The Mantos North solid could be improved some with additional interpretation, though much of Mantos North has been exploited by Vale. The percentage of assays in the grade shells above 0.2% copper range from 57.1% in Mantos North to 87.2% in PPM North. These are relatively good results.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 110 Salamanca, Coquimbo Region, Chile March 29, 2018

Table 14-12. Summary Statistics of Assays in Grade Shells All Samples Samples > 0.2% CuT No. of Mean Std Dev Min Max No. of Mean Std Dev Min Max Percent Assays/Not Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT Massivo 3,573 1.691 2.547 0.000 19.60 2,894 2.066 2.695 0.200 19.60 81.0% Cumbre 2,140 0.551 0.843 0.001 9.86 1,409 0.783 0.958 0.200 9.86 65.8% Mantos Connection 1,108 0.852 1.589 0.000 19.77 810 1.136 1.776 0.200 19.77 73.1% PPM South 1,303 1.013 1.422 0.000 11.98 1,010 1.284 1.510 0.201 11.98 77.5% Epithermal 485 0.726 0.856 0.006 8.10 385 0.888 0.891 0.200 8.10 79.4% PPM North 508 1.140 1.602 0.000 13.30 443 1.291 1.663 0.200 13.30 87.2% Mantos North 4,334 0.829 1.894 0.000 25.10 2,475 1.384 2.359 0.200 25.10 57.1% All 13,451 1.041 1.921 0.000 25.10 9,426 1.447 2.171 0.200 25.10 70.1% No. of Mean Std Dev Min Max No. of Mean Std Dev Min Max Percent Assays/Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT Massivo 3,573 1.680 2.488 0.000 13.50 2,894 2.053 2.629 0.200 13.50 81.0% Cumbre 2,140 0.540 0.756 0.001 5.90 1,409 0.767 0.846 0.200 5.90 65.8% Mantos Connection 1,108 0.792 1.180 0.000 6.50 810 1.054 1.283 0.200 6.50 73.1% PPM South 1,303 0.987 1.290 0.000 6.50 1,010 1.250 1.355 0.201 6.50 77.5% Epithermal 485 0.705 0.741 0.006 3.50 385 0.862 0.755 0.200 3.50 79.4% PPM North 508 1.098 1.395 0.000 6.50 443 1.243 1.438 0.200 6.50 87.2% Mantos North 4,334 0.785 1.570 0.000 10.00 2,475 1.307 1.917 0.200 10.00 57.1% All 13,451 1.013 1.754 0.000 13.50 9,426 1.406 1.967 0.200 13.50 70.1%

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 111 Salamanca, Coquimbo Region, Chile March 29, 2018

Table 14-13. Summary Statistics of Composites in Grade Shells All Samples Samples > 0.2% CuT No. of Mean Std Dev Min Max No. of Mean Std Dev Min Max Percent Composites/Not Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT Massivo 764 1.655 1.909 0.011 12.83 731 1.723 1.924 0.201 12.83 95.7% Cumbre 404 0.544 0.599 0.011 6.71 323 0.647 0.629 0.203 6.71 80.0% Mantos Connection 293 0.789 1.051 0.001 8.71 236 0.953 1.110 0.200 8.71 80.5% PPM South 326 0.944 0.891 0.000 5.61 291 1.047 0.889 0.204 5.61 89.3% Epithermal 193 0.703 0.700 0.024 4.97 168 0.789 0.710 0.202 4.97 87.0% PPM North 107 1.084 1.042 0.010 5.28 101 1.143 1.043 0.209 5.28 94.4% Mantos North 853 0.763 1.307 0.000 15.20 633 0.987 1.452 0.200 15.20 74.2% All 2,940 0.995 1.399 0.000 15.20 2,483 1.156 1.465 0.200 15.20 84.5% No. of Mean Std Dev Min Max No. of Mean Std Dev Min Max Percent Composites/Capped Samples (%CuT) (%CuT) (%CuT) (%CuT) Samples (%CuT) (%CuT) (%CuT) (%CuT) > 0.2% CuT Massivo 764 1.645 1.871 0.011 11.40 731 1.712 1.886 0.201 11.40 95.7% Cumbre 404 0.533 0.523 0.011 4.86 323 0.634 0.540 0.203 4.86 80.0% Mantos Connection 293 0.741 0.852 0.001 4.84 236 0.893 0.883 0.200 4.84 80.5% PPM South 326 0.921 0.822 0.000 4.95 291 1.021 0.883 0.204 4.95 89.3% Epithermal 193 0.683 0.619 0.024 3.05 168 0.767 0.621 0.202 3.05 87.0% PPM North 107 1.050 0.985 0.010 5.28 101 1.106 0.984 0.209 5.28 94.4% Mantos North 853 0.726 1.078 0.000 8.76 633 0.936 1.180 0.200 8.76 74.2% All 2,940 0.970 1.301 0.000 11.40 2,483 1.127 1.357 0.200 11.40 84.5%

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 112 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-22. Probability Plot of Assays in Massivo Grade Shell – Total Copper

Figure 14-23. Probability Plot of Assays in PPM South Grade Shell – Total Copper

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 113 Salamanca, Coquimbo Region, Chile March 29, 2018

14.2.2.4 Adjustments for Soluble Copper

As previously discussed, soluble copper assays were generally not done when total copper was less than 0.2% and a considerable number of assays in the grade shells are lower than this threshold. This truncation of the lower end of the distribution could result in a distortion in the soluble copper block grade estimates, unless corrected.

As was done for Don Gabriel, assays were classified as oxide dominant mineralization, acid soluble copper > cyanide soluble copper, or sulfide dominant mineralization, acid soluble copper < cyanide soluble copper. Note that the cyanide soluble assay follows the acid soluble assay, so it only measures mineral that is not acid soluble in character; chalcocite or bornite would be the most common copper minerals species. Figures 14-24 and 14-25 show oxide and sulfide dominant assays for Massivo and PPM South respectively as examples.

IMC filled in the missing soluble copper assays as follows. First, the ratio of acid soluble copper to total copper and the ratio of cyanide soluble copper to total copper were calculated for oxide dominant assays and sulfide dominant assays for each deposit. These values are shown in Table 14-14. These were calculated as the ratio of the means, i.e. average of the soluble copper assays divided by the average of the total copper assays (as opposed to calculating a ratio for each assay and calculating the mean of the ratios). Second, samples without soluble copper assays were assigned as either oxide dominant or sulfide dominant based on nearby samples that were assayed. Third the missing intervals were assigned soluble copper grades based on the total copper grade and the calculated ratios. For Massivo, oxide dominant material the acid soluble copper was set to 0.752 x total copper and the cyanide soluble copper was set to 0.163 x total copper. For sulfide dominant material the soluble copper was set to 0.117 x total copper and the cyanide soluble copper was set to 0.821 x total copper. The ratios shown on the table are reasonable for what they are used for, assigning approximate grades for missing soluble copper assays for the low grade data.

These adjustments were applied to the assays prior to compositing.

Table 14-14. Ratio of Soluble Copper to Total Copper by Oxide versus Sulfide Dominant Oxide Dominant Sulfide Dominant Deposit CuS/CuT CuCn/CuT CuS/CuT CuCn/CuT Massivo 0.752 0.163 0.117 0.821 Cumbre 0.715 0.142 0.109 0.817 Connection 0.763 0.114 0.105 0.649 PPM South 0.752 0.143 0.109 0.810 Epithermal 0.792 0.055 0.078 0.448 PPM North 0.740 0.103 0.244 0.704 Mantos North 0.759 0.171 0.210 0.732

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 114 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-24. Oxide Versus Sulfide Dominant Assays in Massivo

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 115 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-25. Oxide Versus Sulfide Dominant Assays in PPM South

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 116 Salamanca, Coquimbo Region, Chile March 29, 2018

14.2.2.5 Variogram Analysis

Massivo

IMC conducted a variogram analysis of the 5m composites in Massivo. The deposit strikes N40oW. What IMC has termed the “steep” mineralization dips about 67o to the southwest. The flatter mineralization dips about 22o to the southwest. Figures 14-26 and 14-27 present variograms in the strike and dip direction for the steep mineralization. The range is slightly longer along strike than down dip. These are pairwise relative variograms. This method has some data smoothing built into the calculations. For pairwise relative variograms the sill should theoretically tend to the variance divided by the mean squared of the data and is dimensionless. This would be about 1.22 for this data. The fit sill of 0.71 is lower than this value.

Composites in the flatter portion of the deposit only amounted to about 247; variograms in the flat domains were of relatively poor clarity due to this.

Connection and PPM South

Composites for both Mantos Connection and PPM South were used in the variogram analysis because they have similar geology and orientation of mineralization. They are also similar to the Mantos North deposit. This also allows significantly more data for the analysis. The deposit strikes approximately N40oW and dips about 14o to the southwest. Figures 14-28 and 14-29 present variograms in the strike and dip direction respectively. The variograms down dip has better clarity than the one along strike. Again, these are pairwise relative variograms.

Other Deposits

The amount of data available for Epithermal and PPM North was not sufficient for the calculation of reliable variograms. IMC relied on the fact that the orientation of the mineralization is evident for grade estimation. Reasonable variograms were obtained for Cumbre, but they were not consistent with geologic understanding of the deposit and were not used. The estimation for Cumbre was guided by the orientation of known structures such as the Katerina Fault.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 117 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-26. Massivo Copper Variogram – Steep Zone – Along Strike

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Figure 14-27. Massivo Copper Variogram – Steep Zone – Down Dip

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 119 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-28. PPM South/Connection Copper Variogram – Along Strike

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 120 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-29. PPM South/Connection Copper Variogram – Down Dip

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 121 Salamanca, Coquimbo Region, Chile March 29, 2018 14.2.2.6 Grade Estimates

IMC estimated block grades for total copper, acid soluble copper, and cyanide soluble copper using inverse distance with a power weight of 2 (ID2). Table 14-15 shows the orientation of the search ellipse and the search radii along the major, minor, and tertiary axes respectively. Search radii were generally 65m in the major and minor axes directions. The search radii for Massivo, Mantos North and PPM North were shorter than 65m. Due to relatively high data densities in these deposits the shorter searches are adequate to fill in all the block grades. Epithermal had longer search radii at 75m, but not all the blocks were classified as potential mineral resource.

A maximum of eight composites, a minimum of two composites, and also a maximum of two composites per hole were used for the estimations, except Epithermal which has a maximum of 12 composites, a minimum of three composites, and a maximum of three composites per hole. Epithermal was also estimated with 2.5m composites, instead of the 5m composites used for the other deposits.

The effect of inverse distance weighting along with a relatively low number of composites should produce relatively unsmoothed estimates of block grades based on the composites, i.e. the estimates should not be overly smeared.

For Cumbre, it can also be seen on the table that the diorite versus the volcanic rocks were also treated as separate populations.

After the grade estimates were done, a check was made for blocks with acid soluble plus cyanide soluble copper greater than total copper. These tended to be only a few blocks per deposit. For these blocks, the soluble copper grades were factored to equal total copper. Residual copper was then calculated as total copper – acid soluble copper – cyanide soluble copper for all blocks.

Figures 14-30 and 14-31 show cross sections of total copper grades for Massivo and PPM South.

14.2.2.7 Resource Classification

For the purpose of classifying the mineral resources, two additional block estimates were done. The first estimate was based on a maximum of four composites, a minimum of four, and a maximum of one composite per hole. The second estimate was based on a maximum of three composites, a minimum of three, and a maximum of one composite per hole. The estimates provide the average distance to the nearest three and four holes to each block and were put into the block model. Figures 14-32 and 14-33 show probability plots of the average distances for Massivo and PPM South respectively. Blocks with an average distance to four holes less than or equal to 22.5m were assigned as measured mineral resource. Blocks with an average distance to the nearest three holes less than 45m, but greater than 22.5m from the nearest four holes, were assigned as indicated mineral resource. Blocks with an average distance to three holes greater than 45m were assigned to inferred mineral resource. For Epithermal there were some blocks where the average distance to the nearest two holes exceeded 60m; these blocks were not included in the mineral resource estimate. Figure 14-34 and 14-35 shows the resource classification on cross sections for Massivo and PPM South.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 122 Salamanca, Coquimbo Region, Chile March 29, 2018

Table 14-15. Grade Estimation Parameters for Copper Rotation Angles (Note 1) Domain Allowable Theta Phi Psi Search Radii (M) No. of Composites Cap ID Code Domain Domains (Azimuth) (Dip) Major Minor Tertiary Max Min Max/Hole (%CuT) Power Comments 10 Massivo Steep 10,15 320 0 -67 55 45 20 8 2 2 13.5 2 15 Massivo Flat 10,15 320 0 -22 55 45 20 8 2 2 13.5 2 20 Cumbre Diorite 20-Diorite 22 0 -90 65 65 40 8 2 2 5.9 2 20 Cumbre Volcancis 20-Volcancis 45 0 -90 65 65 40 8 2 2 5.9 2 30 Mantos Connection 30 320 0 -14 65 65 20 8 2 2 6.5 2 40 PPM South - East 40 320 0 -14 65 65 20 8 2 2 6.5 2 45 PPM South - West 45 320 0 -14 65 65 20 8 2 2 6.5 2 50 Epithermal 50 320 0 -90 75 75 25 12 3 3 3.5 2 2.5m composites 60 PPM North 60 340 25 50 40 40 20 8 2 2 6.5 2 70 Mantos North 70 320 0 -15 50 50 20 8 2 2 10 2 Note 1 GSLIB convention for angles theta - rotation of y (north) axis clockwise to principal direction in horizontal plane phi - dip of principal axis, negative is down psi - rotation around principal axis, clockwise is negative.

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 123 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-30. Total Copper on Massivo Cross Section 30, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 124 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-31. Total Copper on PPM South Cross Section 18, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 125 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-32. Probability Plot of Average Distance to Nearest 3 and 4 Holes - Massivo

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 126 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-33. Probability Plot of Average Distance to Nearest 3 and 4 Holes – PPM South

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 127 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-34. Resource Classification on Massivo Section 36, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 128 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-35. Resource Classification on PPM South Section 18, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 129 Salamanca, Coquimbo Region, Chile March 29, 2018 14.2.2.8 Oxide versus Sulfide

Figure 14-36 and 14-37 show example cross sections for the Massivo and Mantos Connection respectively.

14.2.2.9 Bulk Density

The Papomono drillhole database includes 2,148 specific gravity determinations on short pieces of core. The estimates were done by sealing the core in paraffin, weighing the sample in air and submerged in water. The upper portion of Table 14-16 shows the number of samples and average specific gravity for each of the major rock type units. The lower portion of the table shows the results for the measurements by deposit, i.e. samples inside the grade shell solids for each deposit. Values greater than 3.1 and values less than 1.5 were excluded from the calculations. The average specific gravity was reduced 2% for to obtain an estimate of bulk density. This is to allow for voids in the rock mass at a larger scale than what could be captured in the small core samples.

There were about 145 measurements for samples in the Massivo grade shell. The measurements average about 2.623 for the steep zone and 2.671 for the flat zone. IMC estimated the specific gravity values on a block by block basis for Massivo and used background values for blocks that were not estimated. The specific gravity estimates for PPM North were also done on a block by block basis. For Cumbre, Mantos Connection, and Epithermal, the averages shown on the table were assigned to all blocks in the grade shell; it was the opinion of IMC there was not enough data to assign these on a block by block basis. There were no samples for PPM South. The Mantos Connection values were used; the geology is similar in the two zones.

Table 14-16. Specific Gravity and Bulk Density for Papomono Units Rock Grade No. of Average Bulk Bulk Density Code Shell Description Samples Sp. Grav. Factor (t/m3) 100 Diorite 18 2.882 98.0% 2.824 210 Unit C 622 2.741 98.0% 2.686 220 Unit B 113 2.768 98.0% 2.713 230 Unit A 1364 2.649 98.0% 2.596 10 Massivo Vertical 87 2.623 98.0% 2.571 15 Massivo Horizontal 58 2.671 98.0% 2.618 20 Cumbre 42 2.609 98.0% 2.557 30 Connection 46 2.595 98.0% 2.543 40,45 PPM South 2.595 98.0% 2.543 50 Epithermal 20 2.357 98.0% 2.310 60 PPM North 135 2.567 98.0% 2.516 70 Manto North 250 2.641 98.0% 2.588

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 130 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-36. Oxide versus Sulfide Dominant Blocks for Massivo Section 36, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 131 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 14-37. Oxide versus Sulfide Dominant Blocks for Mantos Connection Section 36, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 132 Salamanca, Coquimbo Region, Chile March 29, 2018

14.2.2.10 Historic Mining

During the Vale tenure there was significant open pit mining in the Cumbre pit. IMC was provided with topography to show the current status of Cumbre.

Also, there was significant underground mining in Mantos North, as well as additional underground development to explore and prepare for development of Massivo, Connection, and PPM South. IMC was provided with solids to represent historic Vale underground mine development and mining and also MTV 2017 mining. These were incorporated into model to show the percentage of the blocks extracted by underground development and mining.

There was also some open pit mining activity in PPM North during 2016. IMC received a topography update for this and it is incorporated into the model. Based on the current IMC model, IMC would estimate this as about 67,000 tonnes at 1.391% total copper. In terms of tonnes this is about 13.5% of the current grade shell. Also, one of the existing main declines into the Papomono underground is established in the wall of this small pit.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 133 Salamanca, Coquimbo Region, Chile March 29, 2018

15.0 Mineral Reserves Estimates

Table 15-1 presents the mineral reserve for the Don Gabriel Manto only. The proven and probable mineral reserve amounts to 5.2 million tonnes at 0.814% total copper for 92.7 million contained copper pounds. Recoverable copper is estimated at 80.5 million pounds based on an average recovery of 86.9%. The effective date of this mineral reserve estimate is January 1, 2018.

Table 15-1. Don Gabriel Mineral Reserve Cont. Payable CuT CuS CuCn CuR Copper Copper Ktonnes (%) (%) (%) (%) (klbs) (klbs) Mineral Reserve Proven Mineral Reserve 898 0.800 0.127 0.572 0.100 15,827 13,749 Probable Mineral Reserve 4,270 0.817 0.110 0.615 0.092 76,871 66,782 Prov/Prob Mineral Reserve 5,168 0.814 0.113 0.607 0.094 92,698 80,531

The mineral reserve is based on an open pit mine plan and mine production schedule developed by IMC at a cutoff grade of 0.25% total copper. Table 16-1, in the next section, shows the parameters used for these cutoff grade calculations. The mineral reserve is based on a copper price of US$ 2.75 per pound. Measured mineral resource in the mine production schedule was converted to proven mineral reserve, and indicated mineral resource was converted to probable mineral reserve. Ore loss and dilution assumptions are also incorporated into the estimate. This is also discussed in Section 16.1.1.

IMC does not believe that there are significant risks to the mineral reserve estimate based on environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors. The project is in a jurisdiction friendly to mining and has operated in the past and is currently operating at a low level of production. The most significant risks to the mineral resource are related to economic parameters such as prices lower than forecast, recoveries lower than forecast, or costs higher than the current estimates. The Don Gabriel Manto mineral reserve also assumes a positive preliminary feasibility study and production decision for the Papomono Massivo deposit. Some of the key economic parameters depend on higher production rates than the Don Gabriel pit will provide by itself.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 134 Salamanca, Coquimbo Region, Chile March 29, 2018

16.0 Mining Methods

16.1 Don Gabriel

16.1.1 Dilution and Ore Loss

The manto interpretation was based on 1m assays and was incorporated into the resource model to partial blocks. This means only minimal dilution and ore loss are incorporated into the block model. For mine planning and mineral reserve estimation a diluted model was constructed. Blocks with less than 30% manto solid contained in them were excluded as lost ore. Blocks with between 30% and 99.9% manto solid contained in them were diluted to full blocks with a dilution grade of 0.1% total copper. Compared to the undiluted model, this calculation resulted in 4.2% more tonnes at a 6.4% lower copper grade. IMC considers this a reasonable estimate of dilution effects.

16.1.2 Slope Angles

The slope angle design for the Don Gabriel pit is based on two reports by E-Mining. The first is “Informe Extendido – Estimacion de Parametros de Diseno y Analisis de Estabilidad Rajo Don Gabriel” dated May 2011, and the second is an addendum dated April 2012. The two reports specified the same design. The interramp slope angle was specified as 52o. Furthermore, it was specified that the height of continuous slope could not exceed 150m without the inclusion of an additional 20m catch bench. This would limit the overall angle to about 50o. It is also noted that the E-Mining analyses looked at possible large scale slope failures (low probability) and bench scale failures. The bench scale issues, maintenance of catch benches and retention of most failures on the catch benches, are the main considerations for the interramp slope angle recommendations.

16.1.3 Economic Parameters

Table 16-1 shows the economic parameters for open pit design for the salt leach process case. The base case design price is $2.75 per pound copper. Note that the purpose of the design is to set final walls, so this is based on long range forecast prices.

The base mining costs for ore and waste are based on contract mining and are estimated at $2.15 and $1.95 per tonne respectively. IMC estimated mine engineering, geology, and ore control at an additional $0.20 per total tonne based on labor rates for supervisory personnel provided by MTV. The mining costs are the same as was used for the mineral resource estimate.

The process cost is estimated at $9.73 per ore tonne for Don Gabriel. This is slightly higher than the $8.83 average cost used for mineral resources. In particular, Don Gabriel will benefit from finer crushing than will be required for the other deposits. The haulage distance from Don Gabriel to the crusher is about 12km and is not included in the ore mining cost discussed above. The $2.21 estimate for ore haulage is based on a contractor quote, and is the same as the cost used for the mineral resource estimate.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 135 Salamanca, Coquimbo Region, Chile March 29, 2018

General and Administrative cost (G&A) will be prorated over several Don Gabriel and Papomono mineral deposits based on potential copper production. The Don Gabriel portion is estimated at about $3.09 per ore tonne. This was assumed at $0.24 per pound finished copper for the mineral resource estimate.

The estimated recoverable copper grade is incorporated into the block model on a block by block based on the acid soluble, cyanide soluble, and residual copper grades for the block and the parameters shown in Table 13-29. The average recovery is anticipated at 87% for the salt leach process, based on these recovery parameters.

The SX/EW plus cathode transport is estimated at $0.19 per pound finished copper.

Table 16-1. Don Gabriel Economic Parameters for Pit Design 1/29/2018 Units Salt Lch Waste Commodity Prices Copper Price per Pound (US$) 2.75 Mining Cost per Tonne Contract Mining Cost (US$) 2.15 1.95 Engineering, Geology, Ore Control (US$) 0.20 0.20 Total Mining Cost (US$) 2.35 2.15 Processing Cost per Ore Tonne Crushing, Agglomerating, and Leaching (US$) 9.73 Ore Haulage (US$) 2.21 Total Ore Haulage and Process Cost (US$) 11.94 G&A per Ore Tonne G&A (US$) 3.09 Average Recovery Total Copper (%) 87.0% SX/EW and Cathode Transport per Pound SX/EW Cost (US$) 0.19 Cutoff Grades (Total Copper) Internal (%) 0.31 Breakeven (%) 0.35 Low Grade (Does Not Pay G&A Cost) (%) 0.25

Based on average recovery the internal total copper cutoff grade is estimated at 0.31% total copper. Internal cutoff grade applies to blocks that have to be removed from the pit, so only the mining costs in addition to the $2.15 waste mining cost are included in the calculation. The breakeven cutoff of 0.35% total copper considers the entire $2.35 per tonne mining cost. The marginal cutoff grade of 0.25% total copper excludes the G&A cost from the cutoff grade calculation. This cutoff grade is appropriate if the plant is not operating at full capacity, i.e. blocks above this grade do not pay full G&A cost, but contribute to it.

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The Don Gabriel phase designs are based on analysis performed by Tetra Tech and summarized in the PowerPoint presentation “Optimizacion y Diseno – Rajo Don Gabriel Minera Tres Valles”, dated December 22, 2017. IMC also ran independent analyses to verify the final pit design.

The Tetra Tech analysis proposed dividing Don Gabriel into five mining phases. Figure 16-1 shows the relative locations of the phases. It is noted that the designs are conceptual in nature; in particular access roads were not included. IMC updated the designs to make the phases operational. It is assumed that most of the Don Gabriel ore and waste will exit the pit on contour since the pit is cut into a hill, so internal roads are expected to be less than in more typical open pits.

The final mining phases are a combination of MTV, Tetra Tech, and IMC designs. There are six phases though they are numbered 2 through 7.

 Phases 2 and 3 are MTV designs for short term planning in the north part of Don Gabriel. These phases replace the Tetra Tech phase 1. The MTV phase 1 has been completed.  Phases 4, 5, 6, and 7 are the IMC/Tetra Tech phases 2, 3, 4, and 5.

Table 16-2 summarizes the results of the mining phases. Only measured and indicated mineral resources are included in the tabulations. The mining phases amount to 5.17 million tonnes at 0.813% total copper and 0.711% recoverable copper for 92.7 million contained copper pounds and 81.1 million recoverable copper pounds. The recovery averages about 87.4%. Total material in the pit is 27.2 million tonnes for a waste ratio of 4.3 to 1. Note that indicated recovery and payable copper is slightly higher than the mineral reserve in Table 15-1. The mineral reserve is based on acid leaching for 2018, thus the difference.

The biggest operational challenge is phase 6. First, at about the 1560 bench the phase 6 wall will catch up to the phase 5 wall. All the material between the 1560 bench and the 1470 flat will have to exit the pit to the north. This means waste will exit to the north and go around the pit to get to the south waste storage area. The second issue is the bottom several benches of the phase are in the narrow wedge between phase 3 and phase 4. Road access into this narrow area is difficult. It can be seen that two access roads were required.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 137 Salamanca, Coquimbo Region, Chile March 29, 2018

Table 16-2. Summary of Mining Phases - Salt Leach Case High Grade - 0.31% CuT Low Grade - 0.25% CuT All Resources Cont. Payable Mining CuT Rec Cu CuT Rec Cu CuT Rec Cu Recov. Copper Copper Waste Total Waste Phase Tonnes (%) (%) Tonnes (%) (%) Tonnes (%) (%) (%) (klbs) (klbs) Tonnes Tonnes Ratio

Phase 2 30,829 1.068 0.948 0 0.000 0.000 30,829 1.068 0.948 88.8% 726 644 73,395 104,224 2.38

Phase 3 207,673 0.949 0.842 11,820 0.285 0.249 219,493 0.913 0.810 88.7% 4,419 3,920 309,380 528,873 1.41

Phase 4 642,599 0.816 0.710 57,861 0.278 0.237 700,460 0.772 0.671 87.0% 11,915 10,361 2,869,481 3,569,941 4.10

Phase 5 1,171,767 0.837 0.732 59,721 0.280 0.243 1,231,488 0.810 0.708 87.4% 21,991 19,230 6,217,368 7,448,856 5.05

Phase 6 1,046,265 0.752 0.660 72,252 0.282 0.245 1,118,517 0.722 0.633 87.7% 17,795 15,614 4,736,868 5,855,385 4.23

Phase 7 1,792,953 0.895 0.781 73,880 0.280 0.241 1,866,833 0.871 0.760 87.2% 35,833 31,263 7,799,003 9,665,836 4.18

TOTAL 4,892,086 0.844 0.738 275,534 0.280 0.242 5,167,620 0.813 0.711 87.4% 92,678 81,032 22,005,495 27,173,115 4.26

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 138 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-1. Location of the Tetra Tech Mining Phases, Tetra Tech 2017

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 139 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-2. Mining Phase 2, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 140 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-3. Mining Phase 3, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 141 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-4. Mining Phase 4, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 142 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-5. Mining Phase 5, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 143 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-6. Mining Phase 6, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 144 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-7. Mining Phase 7 – Final Pit, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 145 Salamanca, Coquimbo Region, Chile March 29, 2018

16.1.5 Mine Production Schedule

A mine production schedule was developed for the Don Gabriel pit. The schedule incorporates the following parameters and assumptions:

 Topography has been updated to December 31, 2017.  The schedule was developed to incorporate current mining activity and short range plans in the north part of the pit.  It is assumed the new contractor, with larger equipment, will start operations during April 2018.  The acid leach process case is assumed for 2018; it is assumed the salt leach process will be in place for 2019 and thereafter.  Only measured and indicated mineral resources are included in the production schedule; inferred mineral resource is considered waste. This is, however, a negligible amount of material; Table 14-1 shows Don Gabriel inferred mineral resources as only 79 ktonnes.

The ore production rate for the schedule is 852,000 tonnes per year. This is 2,400 tonnes per day for 355 days per year. This rate should be achieved during the first quarter of 2019.

Table 16-3 shows the mine production schedule. 2018 is shown by month and the rest of the schedule is by quarter year periods. During April, May, and June of 2018 total production ramps up to 550,000 tonnes per month. It can also be seen that total production peaks at 1.7 million tonnes per quarter (6.8 million tonnes per year) during 2019 to achieve full production for three of the four quarters of the year. Total production is 1.6 million tonnes per quarter for the first three quarters of 2020 after which it can be reduced.

Total mineral reserve amounts to 5.17 million tonnes at 0.814% total copper and 0.707% recoverable copper. This amounts to 92.7 million contained and 80.5 million payable copper pounds. Average recovery of total copper is 86.9%. Total material mined is 27.1 million tonnes for a 4.26 to 1 waste ratio. Note that payable copper and the average recovery is slightly lower than was shown on Table 16-2 for the phases. The schedule has lower recovery during 2018 due to the assumption of acid leach process.

This schedule is based on a total copper cutoff grade of 0.31% total copper, internal cutoff for the salt leach case at average recovery. Low grade is material between 0.25% and 0.31% total copper. Low grade does not pay for full G&A cost allocated to Don Gabriel, but it has to be mined and if the plant is not running at full capacity it will contribute to fixed costs.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 146 Salamanca, Coquimbo Region, Chile March 29, 2018 Table 16-3. - Mine Production Schedule Copper Ore Low Grade All Resources Cont. Payable Mining Cutoff CuT Rec Cu CuT Rec Cu CuT Rec Cu Recov. Copper Copper Waste Total Waste Period (%) Tonnes (%) (%) Tonnes (%) (%) Tonnes (%) (%) (%) (klbs) (klbs) Tonnes Tonnes Ratio

Jan-18 0.31 18,650 1.083 0.909 18,650 1.083 0.909 83.9% 445 374 81,350 100,000 4.36 Feb-18 0.31 14,291 0.939 0.786 2,630 0.285 0.230 16,921 0.837 0.700 83.5% 312 261 83,079 100,000 4.91 Mar-18 0.31 29,151 0.524 0.434 6,122 0.284 0.230 35,273 0.482 0.399 82.6% 375 310 83,880 119,153 2.38 Apr-18 0.31 30,000 1.052 0.887 2,228 0.293 0.243 32,228 1.000 0.842 84.3% 710 599 167,772 200,000 5.21 May-18 0.31 30,000 1.213 1.020 108 0.263 0.193 30,108 1.210 1.017 84.1% 803 675 319,892 350,000 10.62 Jun-18 0.31 50,000 0.983 0.821 367 0.277 0.211 50,367 0.978 0.817 83.5% 1,086 907 499,632 549,999 9.92 Jul-18 0.31 43,496 0.929 0.781 37 0.277 0.229 43,533 0.928 0.781 84.1% 891 749 506,467 550,000 11.63 Aug-18 0.31 33,639 0.893 0.746 1,168 0.274 0.217 34,807 0.872 0.728 83.5% 669 559 515,193 550,000 14.80 Sep-18 0.31 46,434 0.845 0.684 74 0.258 0.207 46,508 0.844 0.683 80.9% 865 701 503,492 550,000 10.83 Oct-18 0.31 50,000 0.811 0.659 1,073 0.274 0.219 51,073 0.800 0.650 81.2% 900 732 498,927 550,000 9.77 Nov-18 0.31 50,000 0.768 0.619 2,265 0.276 0.220 52,265 0.747 0.602 80.6% 860 693 497,736 550,001 9.52 Dec-18 0.31 50,000 0.728 0.590 2,545 0.276 0.220 52,545 0.706 0.572 81.0% 818 663 497,454 549,999 9.47 Q1 2019 0.31 213,000 0.676 0.590 33,504 0.280 0.241 246,504 0.622 0.543 87.2% 3,381 2,949 1,453,498 1,700,002 5.90 Q2 2019 0.31 213,000 0.755 0.653 27,153 0.277 0.236 240,153 0.701 0.606 86.4% 3,711 3,208 1,459,846 1,699,999 6.08 Q3 2019 0.31 194,671 0.769 0.669 29,233 0.281 0.244 223,904 0.705 0.614 87.0% 3,481 3,028 1,476,097 1,700,001 6.59 Q4 2019 0.31 213,000 0.837 0.733 12,313 0.280 0.242 225,313 0.807 0.706 87.6% 4,006 3,508 1,474,687 1,700,000 6.55 Q1 2020 0.31 213,000 0.869 0.763 1,951 0.284 0.245 214,951 0.864 0.758 87.8% 4,093 3,593 1,385,048 1,599,999 6.44 Q2 2020 0.31 213,000 0.894 0.783 8,802 0.277 0.241 221,802 0.870 0.761 87.6% 4,252 3,724 1,378,199 1,600,001 6.21 Q3 2020 0.31 213,000 0.969 0.847 17,988 0.282 0.245 230,988 0.916 0.800 87.4% 4,662 4,074 1,369,012 1,600,000 5.93 Q4 2020 0.31 213,000 0.738 0.643 10,778 0.280 0.242 223,778 0.716 0.624 87.1% 3,532 3,077 1,259,502 1,483,280 5.63 Q1 2021 0.31 212,999 0.759 0.668 10,128 0.278 0.243 223,127 0.737 0.649 88.0% 3,626 3,191 1,052,106 1,275,233 4.72 Q2 2021 0.31 213,000 0.716 0.631 14,375 0.277 0.243 227,375 0.688 0.606 88.1% 3,450 3,040 617,225 844,600 2.71 Q3 2021 0.31 213,000 0.727 0.638 14,049 0.283 0.247 227,049 0.700 0.614 87.7% 3,501 3,072 599,988 827,037 2.64 Q4 2021 0.31 213,000 0.828 0.721 11,779 0.276 0.234 224,779 0.799 0.695 87.0% 3,960 3,446 448,331 673,110 1.99 Q1 2022 0.31 213,000 0.864 0.755 10,137 0.284 0.243 223,137 0.838 0.732 87.4% 4,121 3,600 336,643 559,780 1.51 Q2 2022 0.31 213,000 0.761 0.668 7,763 0.281 0.241 220,763 0.744 0.653 87.8% 3,622 3,178 572,382 793,145 2.59 Q3 2022 0.31 213,000 0.776 0.670 7,643 0.291 0.253 220,643 0.759 0.656 86.3% 3,693 3,189 576,217 796,860 2.61 Q4 2022 0.31 213,000 0.916 0.797 3,670 0.283 0.244 216,670 0.905 0.788 87.0% 4,324 3,762 366,884 583,554 1.69 Q1 2023 0.31 212,999 1.031 0.903 2,902 0.282 0.246 215,901 1.021 0.894 87.6% 4,859 4,256 392,558 608,459 1.82 Q2 2023 0.31 213,000 1.055 0.918 5,121 0.280 0.240 218,121 1.037 0.902 87.0% 4,986 4,338 417,065 635,186 1.91 Q3 2023 0.31 213,000 0.969 0.845 9,158 0.276 0.235 222,158 0.940 0.820 87.2% 4,606 4,015 367,450 589,608 1.65 Q4 2023 0.31 213,000 0.947 0.829 5,497 0.287 0.246 218,497 0.930 0.814 87.5% 4,482 3,923 251,940 470,437 1.15 Q1 2024 0.31 204,754 0.783 0.680 12,974 0.277 0.240 217,728 0.753 0.654 86.8% 3,614 3,138 495,944 713,672 2.28

TOTAL 4,892,084 0.844 0.733 275,535 0.280 0.241 5,167,619 0.814 0.707 86.9% 92,698 80,531 22,005,496 27,173,115 4.26

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 147 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-8. End of 2018, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 148 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-9. End of 2019, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 149 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-10. End of 2020, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 150 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-11. End of 2021, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 151 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-12. End of 2022, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 152 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-13. End of 2023, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 153 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-14. End of 2024, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 154 Salamanca, Coquimbo Region, Chile March 29, 2018

16.1.6 Waste Storage Facilities

A waste rock storage facility for the Don Gabriel open pit was designed. Based on the mine production schedule total waste is anticipated to be about 22 million tonnes. It was reported to IMC that the following parameters were specified in the EIS regarding the facility:

 Maximum lift height of 30m  Lifts at 38o angle of repose  Setbacks between lifts to achieve final overall slope of 28o

Figure 16-15 shows the design. Figure 16-16 shows the facility along with an approximate final pit design. Currently there is a bit of a discontinuity in the topography where two different topographies were joined.

The filling curve for the facility is as follows:

Table 16-4. Filling Curve for Don Gabriel Waste Storage From To Cumulative Elev Elev Ktonnes Ktonnes 1125 1165 833 833 1165 1195 2,104 2,937 1195 1225 3,599 6,536 1225 1255 4,633 11,169 1255 1285 5,487 16,656 1285 1315 6,337 22,993 1315 1345 5,670 28,663

The design has the capacity of about 28.7 million tonnes, more than is currently required. The facility would only be stacked to the 1285 lift to accommodate the 22 million tonnes of waste.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 155 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-15. Don Gabriel Waste Storage Facility, IMC 2018

Technical Report / Form 43-101F1 Minera Tres Valles Copper Project 156 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 16-16. Final Don Gabriel Pit and Waste Storage Facility, IMC 2018

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 157 Salamanca, Coquimbo Region, Chile March 29, 2018

16.1.7 Mining Equipment

Contract mining is planned for Don Gabriel. The following is an list of major mining equipment that IMC would consider typical for this size project.

 Two blast hole drills capable of drilling 8.9 to 12.7cm holes (3.5 to 5 inches)  Two shovels/excavators of approximate 4 cubic meter capacity.  12 to 15 trucks of approximate 32 tonne capacity  Two wheel dozers – Caterpillar D9 class  Two motor graders – Caterpillar 14H class  One wheel dozer – Caterpillar 824 class  One backhoe of approximate 1 cubic meter capacity  One water truck of 50,000 liter capacity

There is also the possibility of a mixed fleet size with larger equipment for waste mining.

16.2 Papomono and Don Gabriel Veins

Detailed mine planning work for the Papomono deposits has not yet been conducted. However, some assumptions about mining methods have been made for the purpose of estimating mineral resources.

PPM North and Cumbre are amenable to continued open pit mining. There is also a portion of Cumbre below the resource cone shell that might be amenable to underground mining. It would need to be a fairly low cost method such as block caving, or maybe sub-level caving.

The geometry of the Massivo deposit is also amenable to bulk mining methods such as block caving or sub-level caving. Block caving is currently the method of choice for MTV personnel.

The Epithermal Vein and also the Don Gabriel Veins are narrow, steeply dipping structures. They are amenable to a method such as sub-level stoping.

The relatively flat lying nature of PPM South, Mantos Connection, and North Mantos makes them amenable to methods such as room and pillar (or post pillar), cut and fill, or front caving. However, the post pillar and cut and fill methods are relatively expensive. Front caving is a less expensive method, though it will probably result in higher dilution.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 158 Salamanca, Coquimbo Region, Chile March 29, 2018

17.0 Recovery Methods

17.1 Current Process Description

MTV currently produces high grade copper cathodes using a heap-leach and SX-EW process. Ore is stockpiled above the crusher, and is loaded into a primary jaw crusher, secondary cone crusher, tertiary and quaternary crushers; reducing the rock to fragments to a final granularity of the mineralized material with a target size is 80% < 6.4mm (1/4”). Figure 17-1 shows the crusher flowsheet.

Figure 17-1. Crusher Flowsheet

The crushed material is agglomerated and water and acid is added to commence the leaching process. The agglomerated material is trucked to the heap leach area and stacked by front-end loaders. A grid of hoses with drippers is placed over the heaped material and the first phase of intensive leaching to recover the oxide ore during the first 3-month period by constant and high acid-concentration irrigation. The product of this first leaching stage is the “oxide-pregnant leach solution” (oxide-PLS), which has high copper content and is accumulated in a pond at the bottom of the leach pads. For the subsequent 6 months the material is leached in an on-off basis, with lower acid concentration to extract the copper from sulphides (chalcocite, covelite and some bornite). The resulting PLS (sulphide-PLS) is stored in another pond. Figure 17-2 shows the flowsheet for the agglomerator and leaching process.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 159 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 17-2. Flowsheet for Agglomerator and Heap Leaching

The oxide and sulfide PLS are pumped to the solvent extraction plant (SX) where organic resins are used to capture the copper ions in the solution, over the course of several stages. After the stripping stage the highly concentrated solution (electrolyte) is sent to the electro-winning plant (EW) where an electrolysis process is responsible for the deposition of metallic copper over steel plates. The plates are then sent to the stripping machine, where pure copper sheets (cathodes) are separated from the steel plates in a semi-automatic stripping machine. The cathodes are then stored in a finished goods inventory. Figure 17-3 shows the flowsheet for the SXEW plant.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 160 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 17-3. Flowsheet for SXEW Plant

17.2 Historic Plant Performance

After passing through a series of improvements and adjustments during 2011 until the first half of 2012, the crushing plant at MTV reached its maximum nameplate capacity in September 2012. It then surpassed it for the next 8 months, demonstrating that it could easily keep a permanent production over 5,500 tpd. The maximum performance was reached in April 2013 with an average of 6,164 tpd. This production was performed with only three crushing stages; it was before the inauguration of the quaternary crusher.

The installation of the quaternary crusher was planned since the beginning of the project and, it was authorized in the original environmental license (RCA), with the following rationale:

1) To decrease the granulometry of the stacked mineral to 80% < 6.4mm (¼”) as all the metallurgical tests pointed to an increase in recovery from 2 to 11% at this size. The higher recovery would mainly be obtained from fine-disseminated chalcocitic mineral from deeper parts of the Don Gabriel open pit, but also in Papomono some significant gains would be achieved.

2) To increase the nameplate capacity in order to compensate for lower than planned grade from the Papomono mine, mainly due to the Cumbre open pit low grade. The selected equipment has a capacity of 400 t/h.

Commissioning of the quaternary crusher took place in August 2013, producing 3,505 tonnes in one single shift, which demonstrated the new installed capacity at full operation would be higher

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 161 Salamanca, Coquimbo Region, Chile March 29, 2018 than 7,000 tpd. Operating at this rate may also require a revision to existing operating permits. Table 17-1 shows crusher plant production by year for 2010 through October 31, 2017.

Table 17-1. Historic Summary of Crushing Plant Throughput

The cathode production reflects the crushing and heap stacking performance, with some delay. In November 2012, 1,331 tonnes of cathodes were produced, reaching 89% of the EW plant capacity. The total cathode capacity has not yet been achieved because 2012, the last year of full production, had the lowest average copper grade at MTV, 1.0% total copper. Notwithstanding, the results show that the MTV plant is capable of operating at maximum capacity in all its stages: crushing, agglomeration, leaching, PLS pumping, extraction and electro-winning. Table 17-2 summarizes cathode production by year for 2010 through October 31, 2017. It does not account for additional recoverable copper available in that plant as of that date.

Table 17-2. Historic Cathode Production

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 162 Salamanca, Coquimbo Region, Chile March 29, 2018 17.3 Chloride Leach Process Description

In 2015 MTV undertook a pilot project on site, which was used to perform several tests and simulations with MTV resource, looking for best-possible operational parameters. The pilot plant has been expanded since then and now includes 12 3m-high columns, 12 mini-columns (1m high) and four 20 x 20m pads for heap leaching. After some initial tests, the following campaigns were driven mainly by the potential use of different salt oxidant agents (chloride- medium leaching). The use of salts as oxidant agents in copper leaching is not new in Chile. Since the beginning of this century several mines have been adopting the use of salt water in heap leaching or different types of salts in agglomeration (e.g. AMSA´s Michilla and Antucoya, Mantos de la Luna and BHP´s Spence).

MTV engaged ProPipe S.A. (“Propipe”) of Santiago to undertake a Preliminary Feasibility Study of the chloride leaching process. The following is a description of the flowsheet developed for the project.

There are no changes to the crushing plant; the feed is processed in four stages to reduce its size to an 80% < 6.4mm (¼").

The feed, once crushed, is fed by belt to an agglomeration system where water, sulfuric acid and salt are added in the solid state (dosage 18 kg / t NaCl) for the case of sulfides in the proportions that the project requires for stabilize the fine particles and generate the sulfation of mineralogical species that contain copper. Subsequently, the agglomerated material is transported and deposited in leach pads. The heaps are kept at rest for 30 days, during which, they are kept wet, to prevent the upper layers from losing moisture, damaging the leaching process. After 30 days, the pads are irrigated with raffinate solutions (acid solutions), in order to extract the contained copper (with recoveries around 90%). The leaching process includes chemical leaching stages for a period of 30-90 days for the oxidized feed and in the case of the sulphide feed with salt, cycles will be 120 to 150 days in order to fully benefit the mixed ore resource; for these two circuits independent solutions are considered.

The leaching is carried out by first applying an irrigation solution called raffinate-oxide and subsequently for the leaching stage of sulfides an irrigation solution called raffinate-sulphide is applied. Next, the copper-rich solutions (oxide PLS and sulfide PLS) generated in the leach circuit are concentrated and cleaned using a solvent extraction process. In this operation, a high concentration copper solution (rich electrolyte) is obtained, which is finally processed by electrowinning to obtain high quality copper cathodes.

The design considers to treat a maximum flow rate of 400 m3/h of rich solution generated in the leaching of oxidized copper (PLS-oxide), with average concentration between 2.2-3.7 g/L Cu 3 and 0.4-0.5 g/L H2SO4; a maximum flow rate of 800 m /h of rich solution generated in the leaching of sulfide copper (PLS-sulfide), with an estimated average concentration between 1.8 - 3.5 g/L Cu and 0.5 g/L of H2SO4.

To separate the circuits of solutions in the leaching of oxides and sulfides it has been considered necessary to operate in parallel with mixer-decanter equipment, with a total design flow of 400

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 163 Salamanca, Coquimbo Region, Chile March 29, 2018 m3/h each. The initial configuration of the plant considered four extraction stages (E1-oxide, E2- sulfur, E3-sulfur and E4-oxide), and a re-extraction stage (S). As the operations progressed, it was decided to modify an extraction stage and transform it into washing. On the other hand, due to the increase in chlorine associated with the addition of salt, an additional washing step (L) has been considered, i.e. 1 E0x + 2Sulf + 1S + 2L. This achieves chlorine control, regardless of the efficiency of the coalescer system. Additionally, facilities configuration was also provided to implement a layout with a single washing stage, 2EOx + 2Esulf + 1S + 1L, which will allow to increase the flow rate to SX, if in the future it is required to increase the production beyond the current nominal capacity of 18,500 tonnes of copper per year. This design aims to make the system flexible and allow modify the SX configuration, as the performance of coalescer are verified and the operation is stabilized with the addition of salt.

The pipe system associated with this plant will be flexible, allowing a configuration with 1 or 2 trains of the PLS from leaching, and with extraction stages operating in series and / or parallel.

The solvent extraction plant will use conventional mixer settlers. In the mixers the mixture of the aqueous and organic phases is produced by a dispersion of one phase in the other, thus allowing the chemical transfer of the copper. Controlled drop size agitators will be used to avoid ultra-fine drops.

Since the organic reagent has the characteristic of being highly selective to copper, the impurities in the leaching solution return to the circuit until equilibrium is reached for each of them. In this way, the reagent is practically charged with copper. To control the level of impurities (chlorine product of salt addition) that are transferred to the organic, product of the longtime of reuse of this reagent in the plant, three (3) organic coelescers will be considered, two operating and one stand by.

The loaded organic passes to a coalescer to remove the contents of aqueous entrained (raffinate solution). Then, the loaded organic is sent to the washing stage and then goes to the second coalescer. Finally, it is sent to the copper discharge or re-extraction stage, where, due to a marked change in acidity (pH of the solution), the organic reagent delivers the copper to an aqueous solution with a high content of acid and copper, generating in this way what is known as "advance" rich electrolyte, which is transferred to the electrowinning stage.

The concentration of reagent in the calculated organic phase less than or equal to 20% v/v allows to efficiently extract 90% of the copper from the rich solutions (PLS-oxide and PLS-sulfide) from the leaching area.

The SX plant also has a system to clean the entrainment of organic phase through electrolyte filters and thus avoid passing the residual organic to the electrowining plant.

There is also a recovery system for organic trapped from the waste (crud), through a mechanical rupture plant. The recovery of organic content in the crud is done by tricanter centrifuge to separating the three phases (organic, aqueous and solid). Once the organic is recovered, it is cleaned continuously by applying clay in a stirred tank and subsequent separation of the phases through a filter press.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 164 Salamanca, Coquimbo Region, Chile March 29, 2018

The plant has a series of tanks that are located in an intermediate area between the solvent extraction and the electrowining. This area is known as the tank farm, and in general it is at a lower level with respect to the SX plant and the EW to facilitate the drainage to it of all the solutions by gravity, in case of a power shut down or sudden stop of the plant. In this sector there is a rich electrolyte recirculation tank and operational backup, coalescers, electrolyte filters, waste recovery system, heat exchangers and all centrifugal circulation pumps for electrolytes and organic.

For the control of the impurities presented in the organic, coalescers are used for the loaded organic and washing stages. Due to the use of NaCl in the process it is necessary to use coalescers for the reduction of the drag of aqueous in the organic.

The process consists of entering the organic phase loaded upwards by a coalescer bed constituted by a material of high porosity and specific surface, as it is a hydrophobic material is wet by the organic but not by the water, due to this, it induces the coalescence and water droplets begin to collect producing the growth of microdroplets. Finally these drops decant and fall to the bottom of the coalescer from where they are removed. The clean organic leaves at the top of the coalescer tank.

The coalescers were sized to cover, with ease, the flows and chlorine abatement requirements, defined in the balance sheet. It has been considered to leave equipment in reserve to cover the periods of maintenance and cleaning of the filling.

In order to verify the orders of magnitude, a benchmarking was verified, in mining sites where there are high levels of chlorine in leaching; although mining sites as Michilla, Antucoya, Cenizas and Pampa Camarones, which are leached with sea water, do not have coalescers, several operations have high chlorine levels due to the characteristics of the mineral.

17.4 Upgrades to Existing Plant

Upgrades to the existing plant to accommodate the chloride leach process are modest.

A salt metering and transportation system was designed for the addition of salt in the existing agglomerating drum.

The dosing system consists of a volumetric screw type dosser, fed from a hopper that is mounted below the floor level of the projected storage building. The feeder discharges on a high slope conveyor belt (36 °), which transports the salt to the existing ore feed box, in the agglomeration drum.

In Solvent Extraction (SX) a new mixer-settler will be required to operate as washing stage, for which a new decanter with primary and secondary mixers with identical characteristics to existing equipment was designed. In addition, all piping related with the mixer and connections to existing lines is considered in the design.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 165 Salamanca, Coquimbo Region, Chile March 29, 2018

In the Tank Farm area, three coalescers will be incorporated, one primary, one secondary and a third one as stand by, thus all the piping elements and pumping systems required for the operation are also designed. All equipment will be installed within spill containment and its location was designed in an available area between the existing Tank Farm facilities and the cathode storage.

Additionally, for the proper operation of the coalescers, the water supply for backwash and an air supply line will be required designed.

17.5 Power and Water Requirements

Based on historic consumptions and projecting a situation of plant operating close to maximum capacity, MTV water consumption should be around 34,600 m3 per month, which represents a flow between 13 and 17 liters per second. This is far below the existing water rights and pumping water capacity of MTV.

Sulfuric acid consumption is estimated to be in the order of 39,000 tons, which represents an important saving (up to 40%) in relation to the current acid-leach process.

The consumption of salt is projected to a range between 15,000 and 41,000 tonnes per year averaging 30,000 tonnes/year.

MTV is connected to the Chilean power grid, and operates under a take-or-pay contract under a specific minimum consumption, with KDM Energia, a local bio-gas power producer.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 166 Salamanca, Coquimbo Region, Chile March 29, 2018 18.0 Project Infrastructure

18.1 Water, Power, Roads and Land

MTV has 22 km of private roads composed of 5km of high-quality dirt road connecting the D-81 paved road to the plant, other 12km connecting the plant to the Papomono mine and another 5 km connecting the Don Gabriel mine to the Papomono road. All these roads include access easements with the owners of the surface property. Another 5 km of internal roads run inside MTV private land in Quilmenco Valley.

The company is the owner of 400 ha of surface land in the Quilmenco Valley, one of the few flat surfaces in the main agricultural valleys available in the Province. Most of this property is steel mesh-fenced. Other owned properties are the Bermudez property (30ha) in the Manquehua valley, used for planting of seedlings for reforestation programs, the Escudero property (15 ha), where the fresh water catchment and storage pool and main pump are located, and the Garcia and Peralillo properties (around 6.5ha) which are remnants of original properties bought for its water rights and then used to voluntarily relocate six families that were part time residents of Quilmenco.

MTV is also the owner of a 4.6km 23 KV power line from the El Tebal Sub-Station (Conafe Power Company) to the plant. Parallel to this line is the water pipeline, which brings water from the Escudero pool to the plant.

Figure 18-1. Main Infrastructure in MTV Mine/Plant Complex, MTV 2018

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 167 Salamanca, Coquimbo Region, Chile March 29, 2018

18.2 Plant Infrastructure

The MTV processing plant is a modern and high-quality facility, with almost new equipment and infrastructure.

The plant is composed of three main areas: the Crushing-Agglomeration Plant, the Leach-SX- EW Plant and the Support and Administrative area, with offices, laboratories, warehouses and workshops.

The description of all the process facilities can be found in Item 17.1, Process Description. In the figure below all buildings and facilities located in the Quilmenco area can be seen.

Figure18-2. Satellite image showing main infrastructure in the Quilmenco property. Left: overall Quilmenco plant. Left- top: Administrative and support facilities; right-top: Crushing-agglomeration plant; Right-bottom: TF-SX-EW plant. MTV 2007

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 168 Salamanca, Coquimbo Region, Chile March 29, 2018

18.3 Mine Infrastructure

Mine infrastructure is mainly concentrated in the “Portal North” facilities. At this point, around the northern adit of the transportation tunnel, there is a camp originally installed by a contractor, El Dial Consortium, which exploited the mine between 2010 and 2012. In this camp are located the offices for geology, mine engineering, surveying, and mine management, the first-aid post, canteens and lockers room for employees. Additionally, there is a workshop, prepared to conduct all the mine equipment maintenance, a warehouse containing all material used in the mine, and the fuel station. The offices are connected to the national power grid and include internet and telephone.

As part of the environmental commitments, there is a water treatment plant for the water coming out of the mine. It is formed by two decantation concrete cells and a 55 x 30m fine material decantation pool and an automatic neutralization plant, which brings the water to neutral pH before discharging it into the creek.

The underground mine is composed of a main transportation tunnel of 1,830m length, which crosses the hill from one side to the other. It starts in the north portal, at 1,470 m.a.s.l and finishes in the south portal, at 1,315 m.a.s.l. The main tunnel is fully lit. The underground mine includes ventilation infrastructure or a ventilation shaft in the northern part, with an exhaust fan, compressed air, power stations and transmission system, pump stations, and internal radio wire- antenna. More than 3,000m of developments to the north, central and south part of the deposit are already done.

There is also an area permitted for the Don Gabriel waste storage facility. This was shown in Figures 16-15 and 16-16. There is currently a small amount of waste from previous operation in the facility.

MTV is the owner of the underground equipment necessary for the present, small scale, exploitation. Table 18-1 shows this equipment. Other support equipment are leased or provided by contractors.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 169 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure18-3. Infrastructure of Papomono Mine. Top: Long cross-section showing the main tunnels and shafts, related to topography; Bottom, left: Satelite image showing the main facilities at Portal North. Right: plan view showing all underground workings. MTV 2017

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 170 Salamanca, Coquimbo Region, Chile March 29, 2018

Table 18-1. Mining Equipment Owned by MTV

19.0 Market Studies and Contracts

The MTV project produces finished copper cathode at the property. This is readily marketable on world markets.

MTV has a contract with the Kalkos Mineria y Metales for services associated with the marketing of copper cathodes and sulfuric acid supplies. This company performs annual negotiations with the shipping lines and other logistics operators, verifying the coordination with the parties that are necessary to carry out the shipments on behalf of the seller, such as: shipping lines, warehouses, port terminals and container deposit terminals. Likewise, they coordinate matters related to approvals with the Chilean government agencies involved in export operations and perform post-sale logistics service. Kalkos issues and sends to MTV, monthly report of the physical shipments made with the most relevant details and an annual report on the relevant target markets such as Hamburg, Rotterdam, Livorno and Salerno. It is reported to IMC that this contract cost averages about US$ 13,000 per month. Based on 2017 production this amounts to about $0.01 per pound copper. This is a reasonable rate.

At the end of 2016 MTV entered into an off-take contract with WERCO Trading AG for a minimum delivery of 500 tonnes of copper cathode per month. The contract is expected to end on 2019 and has been made on benchmark commercial terms and on standard business basis for this kind of agreement. This contract establishes that the price will be the monthly average of the LME price plus CIF (cost, insurance, and freight) Rotterdam. This is typical for the industry.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 171 Salamanca, Coquimbo Region, Chile March 29, 2018 MTV is connected to the Chilean power grid, and operates under a take-or-pay contract with a specific minimum consumption, with KDM Energia, a local bio-gas power producer. The current contract is through May 31, 2024. It is reported to IMC this contract costs US$ 210,000 per month and minimum consumption is 65 MWh/day. Based on minimum consumption this amounts to about $0.11 per kwh, a reasonable rate. As of this writing, MTV is not consuming the minimum requirement.

The Don Gabriel pit expansion will require a new mining contract, probably with a larger company than the current contractor. It is also likely there will be a contractor for ore haulage from Don Gabriel and Papomono to the plant. This distance is about 13km for Papomono and 17km for Don Gabriel. As of this writing, these contracts are being negotiated.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 172 Salamanca, Coquimbo Region, Chile March 29, 2018

20.0 Environmental Studies, Permitting and Social or Community Impact

Sustainable Development Policy at MTV is concentrated in three different areas: Environmental Protection, Community Relations and Safety. In order to produce efficiently and carry out sustainable development goals, MTV works closely with the project’s stakeholders (community members, employees, and shareholders) demonstrating mutual respect and careful management.

The MTV project is fully permitted with all necessary government and environmental licenses.

20.1 Permits and Environmental Licenses

During each stage of the MTV project, from the discovery of copper resources to the closing of the mines, environmental permits and licenses are necessary to operate. Since the discovery of the deposit, MTV has complied with all environmental laws and obtained all necessary licenses and permissions to explore and operate.

These licenses, known as “Resoluciones de Calificación Ambiental” (RCA) or Environmental Qualification Resolutions, result from an environmental evaluation process after the Company submits either an Environmental Impact Declaration (DIA) or an Environmental Impact Study (EIA).

The MTV project, throughout its history, has obtained three RCAs.

20.1.1 RCA 012 Manquehua Prospection Tunnel

RCA 012, which was granted in January of 2007, is the result of an Environmental Impact Declaration submitted in October 2006. This declaration was submitted after initial surface level drillings showed the existence of a copper deposit. The Manquehua Tunnel was necessary in order to determine the actual size of the mineral deposits and to perform a technical evaluation. These prospection studies were economically driven in order to determine the feasibility of an eventual exploitation of the resources. The tunnel was 1,140 meters long with a 4-meter x 4- meter entrance.

20.1.2 RCA 283 Manquehua Prospection Tunnel Modification

RCA 283 was granted in September of 2008 in order to modify the Manquehua Prospection Tunnel, extending it to the south and joining the Cárcamo-Manquehua valleys. RCA 283 granted Vale, owners of the project at the time, permission to create a second, southern entrance to the tunnel. This new entrance increased accessibility, ventilation and elongated the tunnel to 1,800 meters long. This tunnel was further used as the main transportation level for the Papomono underground mine.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 173 Salamanca, Coquimbo Region, Chile March 29, 2018

20.1.3 RCA 265 MTV Project

RCA 265 is MTV’s most comprehensive environmental license. This permit, which was approved in November of 2009, mandates the environmental, safety and social requirements for the project in the stages of Construction, Operation and Closing. RCA 265 is the result of an Environmental Impact Study that was presented by Vale in October of 2008 and reviewed by all relative public service agencies. This license dictates all processes carried out on the project site.

20.2 Land Easements

The MTV property spans across 250 hectares, yet the Company has 48,838 hectares of mineral rights. In order to capitalize on these rights, the Company has negotiated different land easements and rental contracts allowing operations and exploration to be located on property not owned by the Company.

Table 20-1 describes in more detail which areas of the MTV project are located on MTV property, and which areas of operation can be found on land owned by a third party.

The Company has negotiated other land easements concerning the property where different reforestation projects are located. With 250 hectares of trees to plant, MTV has negotiated with its neighbors in order to plant trees on their property.

Table 20-1. Land Ownership and Easements

20.3 Water Rights and Use

MTV has rights to both superficial and underground water sources. Water is transported throughout the property through irrigation canals from two different watersheds, the Chalinga watershed and the Choapa watershed. The Choapa watershed, in particular, is a reliable water source even during the dry months in Salamanca. INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 174 Salamanca, Coquimbo Region, Chile March 29, 2018 In addition to these watersheds, the rights to underground water reserves are available for use by MTV as well as the possibility to use underground water from the Papomono mine, which flows at a rate of approximately 2 to 5 liters/second.

At full capacity, the MTV project requires up to 20 liters/sec of water, less than a third of the available water rights. Figure 20-1 shows the water rights at MTV.

Figure 20-1. Water Rights in MTV, MTV 2017

The MTV processing plant operates with exceptionally low water consumption, and the Company has won awards recognizing this achievement. Water flows through a closed-circuit system throughout the different processes of the plant and all water that is used is recycled besides that which is lost through evaporation.

In order to minimize evaporation, the irrigation system in the leach pads was designed so that liquid solution goes directly into the material rather than being sprayed in the air on top of the material. This process significantly reduces evaporation and keeps the project’s water consumption at low levels. Total water consumption (including non-operational use) is around 0.11m³/t, which is among the lowest in industry. See Figure 20-2.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 175 Salamanca, Coquimbo Region, Chile March 29, 2018

Figure 20-2. MTV historic average water consumption per tonne of ore (observation: 2014 does not consider the re-handling of spent ore, which produced the higher consumption)

20.4 Community Relations and Social Licenses

MTV’s channel for social investment and community relations is the MTV Foundation, a non- profit charitable organization dedicated to improving the quality of life in the communities that are in the areas of direct and indirect impact of the project.

A board of directors made up of five members manages the Foundation. Two members are representatives from MTV, and the other three directors come from each of the three valleys that are in the area of impact of the project, the Chalinga Valley, the Cárcamo Valley and the Chuchiñí Valley.

The Foundation operates under a participation based management model in which community organizations, with help from the Foundation, create project proposals and present them to the board. By requiring community participation, MTV is able to ensure that the projects that are funded are of the utmost concern for the people and that these projects have the greatest positive impact on the largest group of community members.

Between 2015 and 2017, 70 projects funded by Foundation MTV were realized in different communities throughout the three valleys around the project.

Number os Projects Year Valley of Valley of Valley of Total Chuchiñi Chalinga Carcamo 2015 9 8 4 21 2016 8 9 4 21 2017 11 11 6 28

Figure 20-3. Foundation MTV Projects 2015-2017

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 176 Salamanca, Coquimbo Region, Chile March 29, 2018

20.5 Health and Safety Performance

MTV works with a goal of zero accidents in all areas of operation, and in March of 2016, the Company celebrated 1 consecutive year without any Lost Time accidents. In order to achieve this high level of safety, MTV takes different precautionary actions. For example, all people that work on-site go through extensive training prior to entering their specific roles. Regular safety workshops are also held in order to make sure all employees are up to date on safety procedures and requirements.

The Company has a Joint Committee on Hygiene and Safety that works to bring different safety initiatives to the Company and guarantees that all aspects of operation are up to date on safety and health standards. The Joint Committee at MTV has earned the Company Gold level standing with “Mutual de Seguridad” for the work that they do in risk prevention.

In the last two years, MTV achieved significant decreases in the occurrences of accidents. There was only one Lost Time (LT) accident in 2015 and 2016, compared to 4 in 2014 and 7 in 2013. The following table shows how MTV compares to national averages for medium size mining companies in Chile in terms of accidents. The different figures are calculated considering the number of workers (both from MTV and contracted companies) and the number of hours worked during 2016.

Table 20-2. 2016 Accident Index. Data from 12/2015 to 12/2016. SONAMI Website

20.6 Mine Closure

The law number 20.551 of October 28th of 2011, established the obligation of all mining facilities of more than 10 ktonnes/month processing in Chile to develop a closure plan. Notwithstanding, MTV had been presenting several partial plans and commitments for environmental and sectorial authorities during previous licensing stages, which were considered as the basis for the formal mine closure plan, under the new law. This plan was prepared by Arcadis in 2014.

Table 20-3 presents all the commitments for site closure, consolidated in the Arcadis report, together with the respective previous authorization resolution from the government authorities.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 177 Salamanca, Coquimbo Region, Chile March 29, 2018 COMMITMENTS FOR CLOSURE AND RESPECTIVE RESOLUTIONS AREA COMMITMENT RESOLUTION Slope Stabilization Res 0800/2010 PCFM Acess closure Res 0800/2010 PCFM Signals instalation Res 0800/2010 PCFM

Mines Adapt peripheral rain water chanel Res 0800/2010 PCFM Portals, adits and shafts closure RCA 283/2008 DIA Revegetation of slopes (Cumbre and PPM_N) Res 0800/2010 PCFM Crushing Dismantling of instalations/facilities RCA 265/2009 EIA plant Transport of hazard/other waste Res 0906/2010 PCFM Peripheral channel around heap pads Res 0008/2011 PCFM Heaps slopes stabilization Res 0008/2011 PCFM Flatness and compaction of heap top level Res 0008/2011 PCFM Coverage of heap slope with stored top soil Res 0008/2011 PCFM Heap spent ore rinsing (neutralization) for 1 year Res 0008/2011 PCFM Heap toe wall construction Res 0008/2011 PCFM Signals instalations Res 0008/2011 PCFM

SX-EW-Lix Plant SX-EW-Lix Dismantling of equipement and instalations RCA 265/2009 EIA Transportation of hazard/other wastes Res 0906/2010 PCFM Pools closure with waste rock and leveling RCA 265/2009 EIA Economic assessment for reprocessing spent ore Res 0008/2011 PCFM Adapt peripheral rain water channels Res 0800/2010 Slope stabilization (stability study) Res 0800/2010 Leveling and compaction of top platform RCA 265/2009 EIA Revegetation of altered surfaces RCA 265/2009 EIA

Accesses closure Res 0800/2010 Waste dumps Waste Safety Berm construction RCA 265/2009 EIA Dismantling of instalations, deenergizing and surfaceRCA leveling 265/2009 EIA Transportation of hazard/other wastes RCA 265/2009 EIA Pools closure with waste rock and surface leveling RCA 265/2009 EIA

Access closure with barriers RCA 265/2009 EIA ofservices

infrastructure infrastructure Signals instalations RCA 265/2009 EIA

Table 20-3. Commitments for Closure and Respective Resolutions

Arcadis calculated the unit costs for each activity, considering the direct costs for the necessary materials, equipment and man-hours, adding general expenses and contractor profit margins. Also calculated are administration costs such as owners team, engineering and studies needed for execution, and also a contingency. The plan also counts for the post-closure activities such as water monitoring during the year after closure and site inspections and maintenance for the next three years after closure.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 178 Salamanca, Coquimbo Region, Chile March 29, 2018 The costs were established in UF (“Unidad de Fomento”), an index which is adjusted daily by the Chilean inflation rate. The following table shows the calculated costs for the closure and post-closure stages and an approximate conversion to US dollar at the time of this report.

COST ITEM COST (UF) (KUSD) on 03/2018

Total Direct Costs 103,351 4,584

Total Indirect Costs 8,773 389 Direct+Indirect Costs 112,124 4,973 Contingencies (17.7%) 19,846 880

Closure costs 131,969 5,853 CLOSURE CLOSURE STAGE VAT (19%) 25,074 1,112 TOTAL CLOSURE COST 157,043 6,965

Total Direct+Indirect costs 1,945 86

Contingencies (15%) 292 13 post closure cost 2,237 99 VAT (19%) 425 19

STAGE POST-CLOSURE TOTAL POST CLOSURE COST 2,661 118 Table 20-4. Closure Costs

The closure cost is based on 26,966 pesos per UF, and 608 pesos to the US$ and are current as of March 25, 2018. The closure cost in US$ is 157,043 x 26,966 / 608 = US$ 6,965,000.

An eleven years period was preliminarily considered for mine closure projections. Based on this projection a schedule for presentation of incremental Bank Guarantee Bonds was proposed, from 2016 to 2026. It is important to note that the effective yearly cost for MTV, before the mine closure, is the financial cost of the bank guarantee.

The mine closure plan was submitted to Sernageomin and approved in November 30th of 2016.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 179 Salamanca, Coquimbo Region, Chile March 29, 2018

21.0 Capital and Operating Costs

21.1 Capital Costs

The capital and operating cost estimates presented in the section are specific to the expansion of the Don Gabriel Manto open pit.

The plant, and all necessary infrastructure, for the Don Gabriel pit expansion are in place. Mining will be done by a contractor, eliminating significant equipment purchase costs. The only capital cost is related to estimated pre-stripping of 2.67 million tonnes during 2018 at a unit cost of US$ 2.15 per tonne. This amounts to US$ 5.74 million. As discussed in Section 16, this is based on a quotation by Vecchiola S.A.

The capital cost to convert the plant to chloride leach process is estimated at US$ 6.9 million, but that capital will be carried by all the deposits, and is not specific to Don Gabriel.

21.2 Operating Costs

Unit costs for this study were presented in Section 16.3 and are summarized as follows:

 Ore mining per tonne $ 2.35  Waste mining per tonne $ 2.15  Process cost per ore tonne $ 9.73  Ore haulage per ore tonne $ 2.21  G&A cost per ore tonne $ 3.09  SXEW cost per pound $ 0.19

Ore mining, waste mining, and ore haulage are based on contractor quotes.

22.0 Economic Analysis

22.1 Economic Results

The economic results for the exploitation of the Don Gabriel Manto deposit are based on the following parameters and assumptions:

 The mine production schedule presented in Table 16-3.  A base case copper price of US$ 2.75 per pound.  The unit costs presented in Section 21.2.  Processing recovery is based on the salt leach process as described in Section 13.2, except for 2018 which is based on acid leaching.

It is the opinion of IMC that these parameters are justified based on the work completed for this study.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 180 Salamanca, Coquimbo Region, Chile March 29, 2018 Table 22-1 presents the analysis for the Don Gabriel Manto open pit based on the production schedule. Year 2018 is presented by months and the remaining periods by quarter year periods. The table shows payable copper pounds and gross revenue. Costs for ore mining (including transport), waste mining, processing, G&A, and SXEW are shown and are based on the unit costs presented in the previous section.

G&A and SXEW costs for 2018 are $9.04 per tonne and $0.20 per pound respectively for the acid leach process.

The pre-stripping costs discussed in the previous section are being carried as operating costs for this analysis, i.e. they are included in the mining costs. For the year as a whole, the project will probably generate enough cash to cover this cost, especially including the tolling business and some production from Papomono. Some working capital will probably be required; that is not included in this analysis.

The analysis indicates an undiscounted cash flow of US$ 70.1 million and an operating cost of $1.88 per pound finished copper. At an 8% discount rate, the Net Present Value (“NPV”) is $50.6 million. Note that with no significant capital costs the financial measures of internal rate of return (“IRR”) and payback period cannot be calculated.

Note that this analysis does not include royalties or taxes. These are discussed in Sections 22.3 and 22.4.

The economic analysis only includes proven and probable mineral reserves from the Don Gabriel Manto production schedule (Table 16-3). Inferred mineral resource is assumed to be waste. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

22.2 Sensitivity Analysis

Table 22-2 presents a sensitivity study for the economic analysis for the exploitation of the Don Gabriel Manto deposit. Cases 1 through 5 show NPV at various discount rates. 8% is considered the base rate. The NPV ranges from US$ 56.9 million at 5% to US$ 39.1 million at 15%. MUSD is million US$.

Case 6 and 7 shows the impact of copper prices of $3.00 and $2.50 per pound, approximate +10% changes. Note that plus/minus 10% changes to grade and/or recovery would have approximately the same response.

Case 8 and 9 shows the impact to +10% changes in the operating costs. There is significant impact, but not as high as the price sensitivity.

Case 10 shows the impact of acid leach recoveries for the project life, i.e. the result if the salt leach process is not implemented. Copper recovery reduces to about 80% over the project life versus 87% for the base case.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 181 Salamanca, Coquimbo Region, Chile March 29, 2018

22.3 Royalties

22.4 Tax Considerations

With the construction costs and operating losses sustained by Vale and the former owners, MTV has approximately $390 million of tax losses available to apply to operating profits. On this basis, income tax has not been considered in our economic analysis.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 182 Salamanca, Coquimbo Region, Chile March 29, 2018 Table 22-1. Economic Results - US Dollars - Copper Price of $2.75/lb Copper Payable Ore Waste Total Process G&A SX/EW Total Free Cost/ NPV Mining Cutoff Copper Revenue Mining Mining Mining Cost Cost Cost Costs Cash Pound 8% Year (%) (klbs) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) ($x1000) (US$) ($x1000)

Jan-18 0.31 374 1,028 85 175 260 169 58 75 561 467 1.50 464 Feb-18 0.31 261 718 77 179 256 153 44 52 505 213 1.94 210 Mar-18 0.31 310 852 161 180 341 319 90 62 812 40 2.62 40 Apr-18 0.31 599 1,646 147 361 508 291 93 120 1,011 635 1.69 619 May-18 0.31 675 1,856 137 688 825 272 93 135 1,325 531 1.96 515 Jun-18 0.31 907 2,493 230 1,074 1,304 455 155 181 2,095 398 2.31 383 Jul-18 0.31 749 2,060 199 1,089 1,287 394 134 150 1,965 95 2.62 91 Aug-18 0.31 559 1,537 159 1,108 1,266 315 104 112 1,797 -260 3.22 -247 Sep-18 0.31 701 1,926 212 1,083 1,295 420 143 140 1,999 -72 2.85 -68 Oct-18 0.31 732 2,012 233 1,073 1,306 462 155 146 2,068 -56 2.83 -53 Nov-18 0.31 693 1,907 238 1,070 1,308 472 155 139 2,074 -167 2.99 -156 Dec-18 0.31 663 1,822 240 1,070 1,309 475 155 133 2,071 -249 3.13 -230 Q1 2019 0.31 2,949 8,108 1,124 3,125 4,249 2,398 658 560 7,866 243 2.67 220 Q2 2019 0.31 3,208 8,821 1,095 3,139 4,234 2,337 658 609 7,838 983 2.44 876 Q3 2019 0.31 3,028 8,328 1,021 3,174 4,195 2,179 602 575 7,550 778 2.49 680 Q4 2019 0.31 3,508 9,646 1,027 3,171 4,198 2,192 658 666 7,715 1,931 2.20 1,656 Q1 2020 0.31 3,593 9,882 980 2,978 3,958 2,091 658 683 7,390 2,492 2.06 2,095 Q2 2020 0.31 3,724 10,240 1,011 2,963 3,975 2,158 658 707 7,498 2,742 2.01 2,262 Q3 2020 0.31 4,074 11,205 1,053 2,943 3,997 2,248 658 774 7,677 3,528 1.88 2,855 Q4 2020 0.31 3,077 8,461 1,020 2,708 3,728 2,177 658 585 7,148 1,313 2.32 1,042 Q1 2021 0.31 3,191 8,775 1,017 2,262 3,279 2,171 658 606 6,715 2,060 2.10 1,604 Q2 2021 0.31 3,040 8,360 1,037 1,327 2,364 2,212 658 578 5,812 2,548 1.91 1,946 Q3 2021 0.31 3,072 8,449 1,035 1,290 2,325 2,209 658 584 5,776 2,673 1.88 2,003 Q4 2021 0.31 3,446 9,478 1,025 964 1,989 2,187 658 655 5,489 3,989 1.59 2,932 Q1 2022 0.31 3,600 9,899 1,018 724 1,741 2,171 658 684 5,255 4,644 1.46 3,349 Q2 2022 0.31 3,178 8,740 1,007 1,231 2,237 2,148 658 604 5,647 3,092 1.78 2,187 Q3 2022 0.31 3,189 8,769 1,006 1,239 2,245 2,147 658 606 5,656 3,113 1.77 2,160 Q4 2022 0.31 3,762 10,346 988 789 1,777 2,108 658 715 5,258 5,088 1.40 3,463 Q1 2023 0.31 4,256 11,704 985 844 1,829 2,101 658 809 5,396 6,308 1.27 4,211 Q2 2023 0.31 4,338 11,929 995 897 1,891 2,122 658 824 5,496 6,433 1.27 4,213 Q3 2023 0.31 4,015 11,042 1,013 790 1,803 2,162 658 763 5,386 5,657 1.34 3,634 Q4 2023 0.31 3,923 10,787 996 542 1,538 2,126 658 745 5,067 5,720 1.29 3,604 Q1 2024 0.31 3,138 8,630 993 1,066 2,059 2,118 633 596 5,407 3,223 1.72 1,993

TOTAL 80,531 221,459 23,564 47,312 70,876 49,961 15,117 15,373 151,326 70,133 1.88 50,553

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 183 Salamanca, Coquimbo Region, Chile March 29, 2018 Table 22-2. Sensitivity Analysis Discount Payable Free Cost/ Rate Copper Cash NPV Pound Case Description (%) (mlbs) (MUSD) (MUSD) (US$)

1 Base Case - $2.75 Copper @ 5.0% 80.5 70.1 56.9 1.88

2 Base Case - $2.75 Copper @ 8.0% 80.5 70.1 50.6 1.88

3 Base Case - $2.75 Copper @ 10.0% 80.5 70.1 46.8 1.88

4 Base Case - $2.75 Copper @ 12.0% 80.5 70.1 43.5 1.88

5 Base Case - $2.75 Copper @ 15.0% 80.5 70.1 39.1 1.88

6 Copper Price of $3.00/lb 8.0% 80.5 90.3 66.0 1.88

7 Copper Price of $2.50/lb 8.0% 80.5 50.0 35.1 1.88

8 Operating Costs +10% 8.0% 80.5 55.0 38.6 2.07

9 Operting Costs -10% 8.0% 80.5 85.3 62.5 1.69

10 Acid Leach Recovery 8.0% 73.9 53.1 37.8 2.03

23.0 Adjacent Properties

There are no important mineral properties adjacent to the MTV property.

24.0 Other Relevant Data and Information

MTV sold 2.7 million pounds of copper in the last quarter of 2017. Cash costs per recoverable pound placed on the heap leach pad were US$2.37. In the fourth quarter of 2017, MTV crushed and processed 2.3 thousand tonnes per day, a 29% increase over the average of the prior three quarters. Total material crushed in 2017 was 682 thousand tonnes, delivering 12.9 million pounds of recoverable contained copper to the heap leach pad. Recent increases in sulfide material production have increased inventory build-up in the heap leach, and we expect to see the benefit of increased mining production in the latter part of 2017 in the coming months. In addition to the Don Gabriel and Papomono mineral resources and mineral reserves, MTV has considerable business related to custom toll processing and ore purchase from ENAMI and

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 184 Salamanca, Coquimbo Region, Chile March 29, 2018 nearby artisanal miners. The amount of mineral resource delivered from these third parties is highly correlated to copper price. Mineralized material supply from third party miner activity is increasing with the higher copper price, reaching 23 thousand tonnes in December 2017, and total deliveries of third-party material of 51 thousand tonnes in the fourth quarter. It is reported to IMC that MTV expects this increase in third party supply to continue in 2018, although budgets for deliveries of 15 thousand tonnes per month. Deliveries from ENAMI were 13 thousand tonnes of mineralized material in the fourth quarter of 2017.

IMC does not know of any additional information or explanation that is necessary to make this technical report understandable and not misleading.

25.0 Interpretation and Conclusions

The goal of this Technical Report was to present an NI 43-101 compliant Mineral Resource estimate for all the Don Gabriel and Papomono mineral deposits, a Preliminary Feasibility Study for the implementation of chloride media leaching, and a Feasibility Study for the expansion of the Don Gabriel Manto open pit, for its 70%-owned MTV property located near Salamanca, Chile. The highlights for these items are summarized as follows:

Updated Mineral Resource Estimate

Salt Leach Preliminary Feasibility Study

 Potential to increase copper recoveries by 10%, up to a 40% reduction in the leaching cycle time, and up to 40% reduction in sulfuric acid consumption.  Estimated capital cost of US$6.9 million, which includes the activities from detailed engineering to the end of construction.  Approximately 11 months to implement.  Less than two year payback.

Don Gabriel Manto Feasibility Study

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 185 Salamanca, Coquimbo Region, Chile March 29, 2018 The Mineral Reserves and Mineral Resource estimates for the MTV property are effective as of January 1, 2018.

IMC does not believe that there are significant risks to the mineral resource or mineral reserve estimate based on environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors. The project is in a jurisdiction friendly to mining and has operated in the past and is currently operating at a low level of production. The most significant risks to the mineral resource are related to economic parameters such as prices lower than forecast, recoveries lower than forecast, or costs higher than the current estimates. These could cause significant impairment to expected results and even result in termination of operations.

The operation is probably particularly sensitive to low copper prices because in addition to loss of revenue from operations there will also likely be less third party plant feed which will impact the tolling business.

The Don Gabriel mineral reserve also anticipates a positive preliminary feasibility study and production decision for the Papomono Massivo deposit. Some of the key economic parameters, particularly unit costs, depend on higher production rates than the Don Gabriel pit will provide by itself.

26.0 Recommendations

IMC recommends the following work to advance the MTV project:

Table 26-1 shows the estimated costs for these items, which amounts to US$ 13.1 million.

Table 26-1. Recommendations for Ongoing Work Cost (US$x1000) Papomono Massivo Preliminary Feasibility Study $292 Preliminary Economic Analysis – Additional Deposits $135 Don Gabriel Pit Expansion – Waste Stripping $5,740 Upgrade Plant to Chloride Leach Process $6,898 TOTAL $13,065

The recommendation to commence the expansion of the Don Gabriel pit is based on the economic analysis presented in Section 22. The cost is based on an estimate of 2.67 million

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 186 Salamanca, Coquimbo Region, Chile March 29, 2018 tonnes of pre-strip waste during 2018 at the unit cost of $2.15 per tonne. Phase 5 stripping is expected to commence very soon after the start of phase 4 stripping, so it is not contingent on it.

The economic analysis also indicates the plant upgrade to the chloride leach process can be justified based on Don Gabriel recovery results alone.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 187 Salamanca, Coquimbo Region, Chile March 29, 2018

27.0 References

Arcadis, 2014 Compañía Minera Tres Valles - Plan de Cierre Regimen Transitorio

Boric, R., Holmgren, C., Wilson, N.S.F., Zentilli, M. (2002) The geology of the El Soldado manto type Cu (Ag) deposit, Central Chile. In Porter, T.M. (Ed), - Hydrothermal Iron Oxide Copper-Gold & Related Deposits... Vol. 2, PGC Publ., Adelaide, 163-184.

D.D. Munro, TWP Projects (Ply) Lld, “Inclined Caving as a Massive Mining Method”, 2010.

D.H. LAUBSCHER, “A Geomechanics Classification System for the Rating of Rock Mass in Mine Design”, Oct. 1990.

E-Mining Technology S.A., “Informe Extendido – Estimacion de Parametros de Diseno y Analisis de Estabilidad Rajo Don Gabriel”, Mayo 2011.

E-Mining Technology S.A., “Anexo a. Resultados Análisis de Estabilidad Pseudo-Estático Addendum Análisis Estabilidad Pseudo-Estático Diseño Rajo Don Gabriel”, May 2011.

E-Mining Technology S.A., “Análisis Estabilidad Condición Pseudo-Estática Diseño Rajo Don Gabriel”, April, 2012.

Geoinvestment Limitada, “Analisis, Evaluacion y Redefincion Angulo Global Pit Don Gabriel – Sociedad Contractual Minera Tres Valles – Salamanca IV Region de Coquimbo, Chile – Informe Final”, Julio 2015

Gilberto Schubert, Quiroga, Enrique, Luis Merino, “Mining Method for Tres Valles Copper Deposit - Selection and Design”, 2016, Proceedings of the International Conference “Innovations in mine enterprises engineering”, Saint Petersburg Mining University, Russia. p.18

Ingenieria de Rocas Ltda. (Ingeroc), “Informe de Estabilidad Rajo Don Gabriel - P-IDR-196- 150-12-2-0”, Marzo 2013

Ingeroc SpA, “ Mining Method, Selection and Design – Presentacion final_BC.pdf”, 2015

Maksaev V. (Coordinator), Townley B, Palacios C. and Camus F.(2007) Metallic ore deposits. In: Moreno T. and Gibbons W.(Ed.), - Geology of Chile, Geological Society of London, Geology of Series

MTV, ”Tres Valles Mining Technical Report Ver-006_04-09-17 - Draft” , September, 2017

Minera Tres Valles, “Tres Valles Consolidating and Updating Report - The dawn of a new stage of operation”, Ver-005_20-01-17, 2017.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 188 Salamanca, Coquimbo Region, Chile March 29, 2018 Minera Tres Valles, “Scoping Study for Underground Exploitation of High Grade Orebodies in Don Gabriel-Veins Mineral Deposit”, December 2015

Minera Tres Valles, “ TresValles Property and Infrastructure”, 2017

Minera Tres Valles, “TresValles Geology, Resources and LT Reserves”, 2017

Oryxeio Ingeniería Limitada, “Copper Recovery Statement on Mineral Reserves - Sociedad Contractual Minera Tres Valles - ORYXEIO-MTV-2018-R01-0”, January 2018.

Propipe S.A., “Compania Minera Tres Valles – Prefeasibility Study – Chloride Media Leaching – Final Report”, February 2018.

Q&Q Ltda, “Proyecto Explotacion Vetas de Alta Ley – MTV”, June 2015.

Q&Q Ltda, “Reopening of Don Gabriel Pit”, November 2015.

Q&Q Ltda, “Plan de Produccion y Evaluaction Economica Preliminar Mina Papomono con Nueva Modelo Geologico”, March 2016.

Snowden, “Soc. Contractual Minera Tres Valles: Resource/Reserve Practices – Standard Procedures”, March 2013.

Snowden, “Cia. Contratual Tres Valles: Resource and Reserve Statement”, May 2013.

Terradap Chile, “Resguardo Mensual Concesiones Mineras Proyecto Sociedad Contractual Minera Tres Valles”, March 3, 2018.

Terradap Chile, “Resguardo Mensual Concesiones Mineras Proyecto Sociedad Contractual Minera Tres Valles”, December 30, 2017.

Vale, “Technical Report - Visit to Tres Valles Project”, November 2008

Vale,”Reporte QA/QC SCM Tres Valles - Campaña Sondajes 2012”, Diciembre 2012

Vale, “Reporte QA/QC Proyecto Tres Valles”, Octubre 2009

Vale, “Reporte QA/QC Proyecto Tres Valles”, Octubre 2010

Vale, “Reporte QA/QC Proyecto Tres Valles”, Diciembre 2011

Vale, ”Reporte final Control de Duplicados de Testigos de Sondajes”, Abril 2009

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 189 Salamanca, Coquimbo Region, Chile March 29, 2018

Appendix A. Certificates of Qualified Persons

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 190 Salamanca, Coquimbo Region, Chile March 29, 2018 CERTIFICATE OF QUALIFIED PERSON

I, Michael G. Hester, do hereby certify that:

1. I am currently employed as Vice President and Principal Mining Engineer by Independent Mining Consultants, Inc. (“IMC”) of 3560 East Gas Road, Tucson, Arizona, 85714, USA, phone number (520) 294-9861.

2. I hold the following academic qualifications: B.S. (Mining Engineering) University of Arizona 1979 M.S. (Mining Engineering) University of Arizona 1982

3. I am a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM #221108), a professional association as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). As well, I am a member in good standing of the following technical associations and societies:

Society for Mining, Metallurgy, and Exploration, Inc. (SME Member # 1423200)

Member of Resources and Reserves Committee of the Society of Mining, Metallurgy, and Exploration.

The Canadian Institute of Mining, Metallurgy and Petroleum (CIM Member #100809)

4. I have worked in the minerals industry as an engineer continuously since 1979, a period of 39 years. I am a founding partner, Vice President, and Principal Mining Engineer for Independent Mining Consultants, Inc. (“IMC”), a position I have held since 1983. I have been employed as an Adjunct Lecturer at the University of Arizona (1997-1998) where I taught classes in open pit mine planning and mine economic analysis. I am also a member of the Resources and Reserves Committee of the Society of Mining, Metallurgy, and Exploration since March 2012. I was employed as a staff engineer for Pincock, Allen & Holt, Inc. from 1979 to 1983. During my career I have had extensive experience reviewing and auditing deposit sampling methods, analytical procedures, and QA/QC analysis. I also have many years of experience developing mineral resource models, developing open pit mine plans and production schedules, calculating equipment requirements for open pit mining operations, developing mine capital and operating cost estimates, performing economic analysis of mining operations and managing various PEA, Pre-Feasibility, and Feasibility Studies.

5. I have read the definition of “Qualified Person” (“QP”) set out in 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 am the responsible for the overall report, with the exception of Sections 13 and 17, of the technical report titled “Minera Tres Valles Copper Project – Salamanca, Coquimbo Region,

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 191 Salamanca, Coquimbo Region, Chile March 29, 2018 Chile - NI 43-101F1 Technical Report – Mineral Resource Estimate, Chloride Leach Processing, and Don Gabriel Manto Pit Expansion” (the “Technical Report”), dated March 29, 2018, prepared for Sprott Resource Holdings Inc.

7. My prior involvement with the property includes work during May and June 2017 for a due diligence review of the project conducted for another party.

8. I last visited the MTV site on September 20-21, 2017. I also visited the site on May 17-18, 2017.

9. As of the date of the this certificate, to the best of my knowledge, information and belief, the portions of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

10. I am independent of the issuer applying all of the tests in Section 1.5 of National Instrument 43-101.

11. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

12. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their website accessible by the public, of the Technical Report.

Dated this 29th day of March, 2018

“signed” Michael G. Hester__ Signature of Qualified Person

Michael G. Hester, FAusIMM_ Print Name of Qualified Person

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 192 Salamanca, Coquimbo Region, Chile March 29, 2018 CERTIFICATE OF QUALIFIED PERSON

I, Enrique D. Quiroga Vega, graduated as a Mining Engineer, with a post-graduate degree in Metallurgy, do hereby certify that:

1. I am a Mining Engineer, independent consultant located at 7292 Quillapi Street, Huechuraba, Santiago, Chile.

2. My Degree is a Mining Engineer from the University of Chile, obtained in 1984 with postgraduate studies in Hydrometallurgy and Electrochemistry at the same university in 1995.

3. I am a registered member of the Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission) with registration No. 0039.

4 I belong to the Institute of Mine Engineers of Chile (IMCH) with License No. 570 and in the College of Engineers of Chile, License No. 17971-0

5. I have practiced my profession since 1979.

6. I have signed as a competent person, in projects abroad, such as San Jorge, Argentina; Petaquilla Gold, Panama and in Chile: Berta Project; Talcuna; Dayton and others.

7. I have read the definition of "Qualified Person" set out in 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 of “Qualified Person” for the purposes of NI 43-101.

13. I am the qualified person responsible for Section 17 of the technical report titled “Minera Tres Valles Copper Project – Salamanca, Coquimbo Region, Chile - NI 43-101F1 Technical Report – Mineral Resource Estimate, Chloride Leach Processing, and Don Gabriel Manto Pit Expansion” (the “Technical Report”), dated March 29, 2018, prepared for Sprott Resource Holdings Inc.

9. I participated in the Scoping Study of the; “Re opening of the Open Pit Don Gabriel” and the “Block Caving of Papo Mono Masivo”.

10. As of the date of this certificate, to the best of my knowledge, information and belief, the portions of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

11. I am independent of the issuer applying all of the tests in Section 1.5 of NI 43-101.

12. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 193 Salamanca, Coquimbo Region, Chile March 29, 2018

13. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their website accessible by the public, of the Technical Report.

Dated this 29 day of March, 2018

“signed” Enrique D. Quiroga Vega _ Signature of Qualified Person

Enrique D. Quiroga Vega Print Name of Qualified Person

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 194 Salamanca, Coquimbo Region, Chile March 29, 2018 CERTIFICATE OF QUALIFIED PERSON

I, Gabriel E. Vera do hereby certify that:

1. I am currently employed as Metallurgical Process Consultant by GVMetallurgy of Camino Lo Pinto s/n Parcela #182, Las Garzas II, Colina, Santiago, Chile

2. I hold the following academic qualifications: Extractive Metallurgical Engineer Universidad Arturo Prat IQQ, 1989

3. I am a Qualify Person in Extractive Metallurgy Specialist of the Chilean “Comisión Cerificadora en Recursos y Reservas Mineras", registered in the Public Registry of Competent Persons from April 2015 under Nr. 0280 from the Chilean Mining Commissioning.

4. I have worked in the minerals industry as an engineer continuously since 1986, a period of 32 years. I am a owner of EIRL GVMetallurgy, Process Consultant & Pilot Plant Manufacturing since 2013, I have worked for Codelco Chile División Chuqicamata as a Metallurgist of Leaching, Solvent Extraction & Electro Winning and Low Grade Sulfide plants of Copper (1987-1994), I was employed for Compañia Minera Cerro Colorado ( Rio Algom- BHPBilliton) as a senior Metallurgical Engineer leaching, SX, EW of copper (1994- 2002), I have worked for Cognis as a Technical Consultant of solvent Extraction (2002- 2005) for Codelco Chuquicamata, Minera El Tesoro, Minera El Abra clients, I have worked for Altonorte Smelter & Lomas Bayas Leach, SX EW operation as a Senior Metallurgist in Copper , Rhenium and Molybdenum hydrometallurgical process (Noranda Falconbridge- Xstrata) ( 2005-2008), I was Hydrometallurgical Process Superintendent, Xstrata Copper North of Chile Division and then Joint Venture Division Chile Argentina & Peru, (2008- 2013)

6. I am the qualified person responsible for Sections 13 of the technical report titled “Minera Tres Valles Copper Project – Salamanca, Coquimbo Region, Chile - NI 43-101F1 Technical Report –Mineral Resource Estimate, Chloride Leach Processing, and Don Gabriel Manto Pit Expansion” (the “Technical Report”), dated March 29, 2018, prepared for Sprott Resource Holdings Inc.

7. My prior involvement with the property includes work with a Oryxieo Consultants for studies about acid leaching and chlorine media leaching of ore from Papomono & Don Gabriel mines January 2017.

8. I last visited the MTV site on March 23, 2018.

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 195 Salamanca, Coquimbo Region, Chile March 29, 2018 9. As of the date of this certificate, to the best of my knowledge, information and belief, the portions of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

10. I am independent of the issuer applying all of the tests in Section 1.5 of NI 43-101.

11. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

Dated this 29day of March, 2018

“signed” Gabriel E. Vera______Signature of Qualified Person

Gabriel E. Vera ______Print Name of Qualified Person

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 196 Salamanca, Coquimbo Region, Chile March 29, 2018

Appendix B. Mining Claims

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 197 Salamanca, Coquimbo Region, Chile March 29, 2018 MINERAL CONCESSIONS - FULLY CONSTITUED AND REGISTERED

ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 1 043011021-7 ACUERDO 1/10 EXPLOTACIÓN CONSTITUIDA 50 2 043021325-3 ALEJANDRA 1 AL 11 EXPLOTACIÓN CONSTITUIDA 53.00007 3 043021031-9 BARTOLOME 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 4 043020997-3 BERTA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 276.0001 5 04302-1363-6 BLANQUITA 1 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 6 04302-1370-9 BLANQUITA 10 DEL 1 94 EXPLOTACIÓN CONSTITUIDA 94.0001 7 04302-1371-7 BLANQUITA 11 DEL 1 AL 70 EXPLOTACIÓN CONSTITUIDA 70 8 04302-1372-5 BLANQUITA 12 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 9 04302-1361-k BLANQUITA 2 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 10 04302-1362-8 BLANQUITA 3 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 250 11 04302-1364-4 BLANQUITA 4 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 275 12 043021365-2 BLANQUITA 6 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 100 13 04302-1367-9 BLANQUITA 7 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 14 04302-1368-7 BLANQUITA 8 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 285 15 04302-1369-5 BLANQUITA 9 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 16 043020155-7 CALIFORNIA 1/30 EXPLOTACIÓN CONSTITUIDA 40 17 043020998-1 CANDELARIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 18 04301-1713-0 CANELA 21 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 19 04301-1715-7 CANELA 31 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 20 04301-1718-1 CANELA 34 DEL 1 AL 294 EXPLOTACIÓN CONSTITUIDA 294.0001 21 04301-1719-K CANELA 35 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 22 04301-1720-3 CANELA 36 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 23 04302-1375-K CANELA 37 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100 24 04302-1340-7 CANELA 38 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 25 04302-1341-5 CANELA 39 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 26 04302-1346-6 CANELA 44 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 27 04302-1352-0 CANELA 50 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 28 04302-1356-3 CANELA 54 DEL 1 AL 58 EXPLOTACIÓN CONSTITUIDA 58.00019 29 04302-1357-1 CANELA 55 DEL 1 AL 161 EXPLOTACIÓN CONSTITUIDA 161 30 04302-1358-K CANELA 56 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 31 04302-1360-1 CANELA 58 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 32 04301-2060-3 CANELA B 11 DEL 1 AL 27 EXPLOTACIÓN CONSTITUIDA 204.0001 33 04301-2061-1 CANELA B 12 DEL 1 AL 22 EXPLOTACIÓN CONSTITUIDA 191 34 04301-2062-K CANELA B 13 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 100 35 04301-2052-2 CANELA B 2 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 198 Salamanca, Coquimbo Region, Chile March 29, 2018 ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 36 04301-2070-0 CANELA B 24 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 100 37 04301-2071-9 CANELA B 25 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 84.0001 38 04301-2072-7 CANELA B 26 DEL 1 AL 22 EXPLOTACIÓN CONSTITUIDA 194.0001 39 04301-2073-5 CANELA B 27 DEL 1 AL 20 EXPLOTACIÓN CONSTITUIDA 200 40 04301-2074-3 CANELA B 28 DEL 1 AL 20 EXPLOTACIÓN CONSTITUIDA 200 41 043012075-1 CANELA B 29 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300 42 04301-2053-0 CANELA B 3 DEL 1 AL 18 EXPLOTACIÓN CONSTITUIDA 170 43 043012076-K CANELA B 30 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300 44 04301-2054-9 CANELA B 4 DEL 1 AL 20 EXPLOTACIÓN CONSTITUIDA 120 45 04301-2055-7 CANELA B 5 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 277.0002 46 04301-2056-5 CANELA B 6 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300 47 04301-2057-3 CANELA B 7 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300 48 04301-2058-1 CANELA B 8 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 100 49 04301-1722-K CAREN 11 DEL 1 AL 236 EXPLOTACIÓN CONSTITUIDA 236.0001 50 04301-1723-8 CAREN 12 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100 51 04301-1724-6 CAREN 13 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 52 04301-1725-4 CAREN 14 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 53 04301-1727-0 CAREN 16 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 54 043012010-7 CARENCITA 5 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 55 04302-0110-7 CARIDAD EXPLOTACIÓN CONSTITUIDA 5.000121 56 043020999-K CARLOS 1 AL 34 EXPLOTACIÓN CONSTITUIDA 96.00014 57 043021001-7 CHRISTHOFER 1 AL 40 EXPLOTACIÓN CONSTITUIDA 200 58 043021034-3 CHRISTIANE DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 59 043021035-1 CHRISTIANE TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 60 043021033-5 CHRISTIANE UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 290 61 043020953-1 CLEMENCIA 1/13 EXPLOTACIÓN CONSTITUIDA 13.00007 62 043021037-8 CLEMENTE DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 63 043021038-6 CLEMENTE TRES 1 AL 50 EXPLOTACIÓN CONSTITUIDA 248.0002 64 043021036-K CLEMENTE UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 65 043021552-3 COCHI LEUFU 24 DEL 1 AL 6 EXPLOTACIÓN CONSTITUIDA 6.000145 66 043020107-7 CONSUELO EXPLOTACIÓN CONSTITUIDA 5.000121 67 043021003-3 CRISTOBAL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 285.0001 68 043020986-8 CRUZ DEL SUR 1 AL 60 EXPLOTACIÓN CONSTITUIDA 280 69 043021199-4 CYPRUS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 70 043021004-1 DAVID 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 199 Salamanca, Coquimbo Region, Chile March 29, 2018 ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 71 04302-0889-6 DON CHURRUS 1, 1/30 EXPLOTACIÓN CONSTITUIDA 260 72 04302-0898-5 DON CHURRUS 10, 1/30 EXPLOTACIÓN CONSTITUIDA 199.0002 73 04302-0899-3 DON CHURRUS 11, 1/10 EXPLOTACIÓN CONSTITUIDA 57.00017 74 04302-0900-0 DON CHURRUS 12, 1/14 EXPLOTACIÓN CONSTITUIDA 102 75 04302-0901-9 DON CHURRUS 13, 1/30 EXPLOTACIÓN CONSTITUIDA 279.0002 76 04302-0902-7 DON CHURRUS 14, 1/30 EXPLOTACIÓN CONSTITUIDA 300 77 04302-0890-K DON CHURRUS 2, 1/30 EXPLOTACIÓN CONSTITUIDA 272 78 04302-0891-8 DON CHURRUS 3, 1/30 EXPLOTACIÓN CONSTITUIDA 279.0002 79 04302-0892-6 DON CHURRUS 4, 1/30 EXPLOTACIÓN CONSTITUIDA 300 80 04302-0893-4 DON CHURRUS 5, 1/30 EXPLOTACIÓN CONSTITUIDA 234.0001 81 04302-0894-2 DON CHURRUS 6, 1/30 EXPLOTACIÓN CONSTITUIDA 260 82 04302-0895-0 DON CHURRUS 7, 1/30 EXPLOTACIÓN CONSTITUIDA 300 83 04302-0896-9 DON CHURRUS 8, 1/30 EXPLOTACIÓN CONSTITUIDA 288.0002 84 04302-0897-7 DON CHURRUS 9, 1/28 EXPLOTACIÓN CONSTITUIDA 101 85 043020197-2 DON GABRIEL 1/20 (1/5) EXPLOTACIÓN CONSTITUIDA 25.00012 86 043020533-1 EL ROSARIO 1/16 (1/7) EXPLOTACIÓN CONSTITUIDA 35.00012 87 043020113-1 EL ROSARIO 1/16 (8/16) EXPLOTACIÓN CONSTITUIDA 45.00012 88 043020987-6 EL SEÑOR DE LA TIERRA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 89 043021531-0 ELIAS 1 AL 300 EXPLOTACIÓN CONSTITUIDA 146 90 043021201-K ELISEO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 91 043010273-7 EMMANUEL 1/50 (16,17,24 al 27 y 34 al 37) EXPLOTACIÓN CONSTITUIDA 50 92 043020109-3 ESPERANZA EXPLOTACIÓN CONSTITUIDA 5.000121 93 043021005-K EUGENIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 94 043020108-5 FE EXPLOTACIÓN CONSTITUIDA 5.000121 95 043020988-4 FERNANDA 1 AL 57 EXPLOTACIÓN CONSTITUIDA 267.0002 96 04302-1007-6 GABRIEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 97 043021040-8 GLADYS DOS 1 AL 40 EXPLOTACIÓN CONSTITUIDA 200 98 043021041-6 GLADYS TRES A 1 AL 10 EXPLOTACIÓN CONSTITUIDA 50 99 043021084-K GLADYS UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 270 100 043020990-6 GUADALUPE DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 294.0001 101 043020989-2 GUADALUPE UNO 1 AL 39 EXPLOTACIÓN CONSTITUIDA 168.0002 102 043021202-8 HONORIO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 174.0001 103 043021009-2 IGNACIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 104 043021010-6 IGNACIO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 200 Salamanca, Coquimbo Region, Chile March 29, 2018 ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 105 043021011-4 ISABEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 106 043021012-2 ISIDRO 1 AL 59 EXPLOTACIÓN CONSTITUIDA 287.0002 107 043021013-0 JACINTA 1 AL 6 EXPLOTACIÓN CONSTITUIDA 18.00019 108 043021105-6 JACINTA DOS 1 AL 4 EXPLOTACIÓN CONSTITUIDA 8.000193 109 043021043-2 JAVIER 1 AL 53 EXPLOTACIÓN CONSTITUIDA 265.0001 110 043021014-9 JERONIMO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 111 04302-1015-7 JORGE 1 AL 60 EXPLOTACIÓN CONSTITUIDA 267.0002 112 043021016-5 JOSE 1 AL 60 EXPLOTACIÓN CONSTITUIDA 270 113 043020991-4 JUAN DIEGO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 114 043021046-7 JUAN DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 294.0001 115 043021047-5 JUAN TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 116 043021044-0 JUAN UNO A, 1 AL 20 EXPLOTACIÓN CONSTITUIDA 81.00002 117 043021045-9 JUAN UNO B, 1 AL 35 EXPLOTACIÓN CONSTITUIDA 156.0001 118 043021017-3 JUANA 1 AL 57 EXPLOTACIÓN CONSTITUIDA 270 119 043020208-1 LA DESPRECIADA 1 al 4 EXPLOTACIÓN CONSTITUIDA 20 120 043020239-1 LA PALOMA 1/10 EXPLOTACIÓN CONSTITUIDA 48.00019 121 04302-1253-2 LEUFU COCHI 11 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100 122 04302-1254-0 LEUFU COCHI 18 DEL 1 AL 270 EXPLOTACIÓN CONSTITUIDA 270 123 04302-1255-9 LEUFU COCHI 19 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 124 04302-1256-7 LEUFU COCHI 20 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 125 04302-1257-5 LEUFU COCHI 21 DEL 1 AL 179 EXPLOTACIÓN CONSTITUIDA 179.0002 126 04302-1258-3 LEUFU COCHI 22 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100 127 04301-1573-1 LOS MAQUIS 18 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 128 04301-1574-K LOS MAQUIS 20 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 129 04301-1575-8 LOS MAQUIS 21 DEL 1 AL 282 EXPLOTACIÓN CONSTITUIDA 282 130 04301-1576-6 LOS MAQUIS 23 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 131 04301-1577-4 LOS MAQUIS 32 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100 132 04301-1578-2 LOS MAQUIS 33 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 133 04301-1579-0 LOS MAQUIS 34 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 134 04301-1580-4 LOS MAQUIS 35 DEL 1 AL 210 EXPLOTACIÓN CONSTITUIDA 210 135 04301-1581-2 LOS MAQUIS 36 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 136 04301-1582-0 LOS MAQUIS 37 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 137 04301-1583-9 LOS MAQUIS 38 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 138 04301-1584-7 LOS MAQUIS 39 DEL 1 AL 300 EXPLOTACIÓN CONSTITUIDA 300 139 04301-1585-5 LOS MAQUIS 40 DEL 1 AL 100 EXPLOTACIÓN CONSTITUIDA 100

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 201 Salamanca, Coquimbo Region, Chile March 29, 2018 ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 140 043021018-1 LUIS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 278.0002 141 043021019-K LUISA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 142 04302-1205-2 MALLACUN 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 143 043021048-3 MANUEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 144 04302-1405-5 MARCE CIENTO DIECISEIS 1 AL 40 EXPLOTACIÓN CONSTITUIDA 200 145 04302-1406-3 MARCE CIENTO DIECISIETE 1 AL 40 EXPLOTACIÓN CONSTITUIDA 194.0001 146 043021339-3 MARCE TREINTA Y CUATRO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 147 04302-1334-2 MARCE TREINTA Y DOS 1 AL 40 EXPLOTACIÓN CONSTITUIDA 189.0002 148 04302-1335-0 MARCE TREINTA Y TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 149 043021284-2 MARGARITA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 150 043021050-5 MARGARITA NIETA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 151 043021022-K MARIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 152 043021023-8 MARTA 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100 153 043021024-6 MAURO 1 AL 59 EXPLOTACIÓN CONSTITUIDA 295.0001 154 043021051-3 MIGUEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 155 043020992-2 NATALIA 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 156 043020381-9 NATALYA 1 AL 10 EXPLOTACIÓN CONSTITUIDA 50 157 04302-1533-7 ORÉGANO B 2 DEL 1 AL 30 EXPLOTACIÓN CONSTITUIDA 300 158 04302-1534-5 ORÉGANO B 3 DEL 1 AL 10 EXPLOTACIÓN CONSTITUIDA 19 159 04302-1535-3 ORÉGANO B 4 DEL 1 AL 30(29) EXPLOTACIÓN CONSTITUIDA 222 160 04302-1536-1 ORÉGANO B 5 DEL 1 AL 30(25) EXPLOTACIÓN CONSTITUIDA 207 161 04302-1537-k ORÉGANO B 6 DEL 1 AL 20(3) EXPLOTACIÓN CONSTITUIDA 18 162 043021437-3 OREGANO 91 DEL 1 AL 167 EXPLOTACIÓN CONSTITUIDA 167.0002 163 04302-1206-0 OSEAS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 164 043021025-4 PEDRO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 165 04302-1207-9 POLICARPO 1 AL 40 EXPLOTACIÓN CONSTITUIDA 197.0002 166 043020460-2 PRISCILA 2/4 EXPLOTACIÓN CONSTITUIDA 12.00005 167 04302-1470-5 QUILMENCO 1 DEL 1 AL 150 EXPLOTACIÓN CONSTITUIDA 150 168 04302-1474-8 QUILMENCO 2 DEL 1 AL 86 EXPLOTACIÓN CONSTITUIDA 86.00014 169 04302-1472-1 QUILMENCO 3 DEL 1 AL 200 EXPLOTACIÓN CONSTITUIDA 200 170 043021054-8 RAFAEL 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 171 043021055-6 ROSA 1, 1 AL 30 EXPLOTACIÓN CONSTITUIDA 127.0002 172 043021026-2 SANTIAGO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 173 043021057-2 SEBASTIAN 1, 1 AL 60 EXPLOTACIÓN CONSTITUIDA 240

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 202 Salamanca, Coquimbo Region, Chile March 29, 2018 ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 174 043021058-0 SEBASTIAN 2, 1 AL 18 EXPLOTACIÓN CONSTITUIDA 74.0001 175 043021059-9 SEBASTIAN TRES, 1 AL 60 EXPLOTACIÓN CONSTITUIDA 265.0001 176 043021027-0 SEGISMUNDO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 292 177 043020993-0 SEÑOR DE LOS CIELOS 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100 178 043020516-1 TABITA UNO AL TRES EXPLOTACIÓN CONSTITUIDA 12.00005 179 043021061-0 TALHUEN DOS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 298.0002 180 043021062-9 TALHUEN TRES 1 AL 60 EXPLOTACIÓN CONSTITUIDA 280 181 043021060-2 TALHUEN UNO 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 182 043021028-9 VICENTE 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 183 04302-1208-7 ZACARIAS 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 184 043011800-5 SALAMANCA 1 1/12 EXPLOTACIÓN CONSTITUIDA 52 185 043011801-3 SALAMANCA 2 1/100 EXPLOTACIÓN CONSTITUIDA 100 186 043011802-1 SALAMANCA 3 1/10 EXPLOTACIÓN CONSTITUIDA 50 187 043021412-8 SALAMANCA 9 1/182 EXPLOTACIÓN CONSTITUIDA 182 188 043011806-4 SALAMANCA 10A 1/100 EXPLOTACIÓN CONSTITUIDA 100 189 043011807-2 SALAMANCA 10B 1/135 EXPLOTACIÓN CONSTITUIDA 135 190 043021414-4 SALAMANCA 13B 1/135 EXPLOTACIÓN CONSTITUIDA 135 191 043021415-2 SALAMANCA 14 1/180 EXPLOTACIÓN CONSTITUIDA 180 192 043021418-7 SALAMANCA 17 1/50 EXPLOTACIÓN CONSTITUIDA 246 193 043021420-9 SALAMANCA 19B 1/108 EXPLOTACIÓN CONSTITUIDA 108 194 043011810-2 SALAMANCA 24A 1/80 EXPLOTACIÓN CONSTITUIDA 80 195 043011813-7 SALAMANCA 29 1/90 EXPLOTACIÓN CONSTITUIDA 90 196 043021458-6 SALAMANCA 30 1/220 EXPLOTACIÓN CONSTITUIDA 220 197 043021459-4 SALAMANCA 31 1/300 EXPLOTACIÓN CONSTITUIDA 300 198 043021460-8 SALAMANCA 32 1/280 EXPLOTACIÓN CONSTITUIDA 280 199 043021461-6 SALAMANCA 33 1/158 EXPLOTACIÓN CONSTITUIDA 158 200 043021462-4 SALAMANCA 34 1/15 EXPLOTACIÓN CONSTITUIDA 15 201 043011544-8 HERMINIA 1/14 EXPLOTACIÓN CONSTITUIDA 93 202 043011257-0 LA POR LLEGAR 1/10 EXPLOTACIÓN CONSTITUIDA 50 203 S/R LAS BANDURRIAS 4 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 204 S/R LAS BANDURRIAS 6 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 205 S/R LAS BANDURRIAS 7 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 206 S/R LAS BANDURRIAS 10 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 207 S/R LAS BANDURRIAS 8 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 208 S/R LAS BANDURRIAS 9 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 209 S/R CANELA C1 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 210 S/R CANELA C8 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100 211 S/R CANELA C17 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100 212 S/R CANELA C12 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100 213 S/R CANELA C13 1 AL 20 EXPLOTACIÓN CONSTITUIDA 100 214 S/R CANELA C16 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300 215 S/R CANELA C18 1 AL 60 EXPLOTACIÓN CONSTITUIDA 300

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC. Minera Tres Valles Copper Project 203 Salamanca, Coquimbo Region, Chile March 29, 2018 MINERAL CONCESSIONS IN ADMINISTRATIVE PROCESS

ID CONCESSION SIZE NUMBER CONCESSION NAME CONCESSION TYPE CONCESSION STATUS HAS. 1 043021424-1 OREGANO 90 DEL 1 AL 300 EXPLOTACIÓN DESARCHIVAR Y REVISAR 10 2 04302-1532-9 ORÉGANO B 1 DEL 1 AL 30 (31) EXPLOTACIÓN CONSTITUIDA 283 3 043011912-5 OREGANO B 68 DEL 1/11 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 11 4 043011911-7 OREGANO B 69 DEL 1/21 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 21 5 043011910-9 OREGANO B 70 DEL 1/147 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 147 6 043021456-K OREGANO B 71 DEL 1/98 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 98 7 043021455-1 OREGANO B 88 DEL 1/39 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 39 8 043021454-3 OREGANO B 89 DEL 1/100 EXPLOTACIÓN RENUNCIA RECURSO SUPERPOSICIÓN 100 9 S/R LAS BANDURRIAS 1 1 AL 60 EXPLOTACIÓN APROBADA, ESPERA SENTENCIA 300 10 S/R LAS BANDURRIAS 2 1 AL 60 EXPLOTACIÓN APROBADA, ESPERA SENTENCIA 300 11 S/R LAS BANDURRIAS 3 1 AL 60 EXPLOTACIÓN APROBADA, ESPERA SENTENCIA 300 12 S/R CANELA C11 1 AL 20 EXPLOTACIÓN APROBADA, ESPERA SENTENCIA 100 13 S/R MARGARA EXPLORACIÓN APROBACIÓN SERNAGEOMIN 300 14 S/R DON CHURRUS 10A 1/210 EXPLOTACIÓN EJECUTAR MENSURA 210

Explanation of Concession Status:

Constituida - Fully constituted and registered. Aprobada, Espera Sentencia – Approved, awaiting judgement Ejecutar Mensura – Awaiting survey Renuncia Recurso Superposicion – Waver resource of overlay Aprobacion Sernageomin – Sernageomin approval Desarchivar y Revisar – Unarchive and Review

INDEPENDENT Technical Report / Form 43-101F1 MINING CONSULTANTS, INC.