NI 43-101 TECHNICAL REPORT for the PUNITAQUI PROJECT located near OVALLE, CHILE

Prepared by: Prepared for: JDS ENERGY & MINING INC. Xiana Mining Inc. Suite 900, 999 W Hastings St. #507 - 837 W Hastings St. Vancouver, BC V6C 2W2 Vancouver, BC V6C 3N6

Effective Date: July 31, 2018 Qualified Persons Company Report Date: November 20, 2018 Richard Goodwin, P. Eng. JDS Energy & Mining Inc. Ross Corben, FAusIMM GeoWiZ Len Holland, FIMM and MES Holland & Holland Consultants

PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

NOTICE JDS Energy & Mining, Inc. prepared this National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for Xiana Mining Inc. The quality of information, conclusions and estimates contained herein is based on: (i) information available at the time of preparation; (ii) data supplied by outside sources, and (iii) the assumptions, conditions, and qualifications set forth in this report. Xiana Mining Inc. filed this Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any other use of this report by any third party is at that party’s sole risk.

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Table of Contents 1 Summary ...... 1-1 2 Introduction ...... 2-1 2.1 Purpose ...... 2-1 2.2 QP Responsibility Matrix ...... 2-1 2.3 Site Visits by QPs ...... 2-3 2.4 Sources of Information ...... 2-3 3 Reliance on Other Experts ...... 3-1 4 Property Description and Location ...... 4-1 4.1 Location and Area ...... 4-1 4.2 Ownership History...... 4-1 4.3 Concessions ...... 4-2 4.3.1 Cinabrio ...... 4-3 4.3.2 Los Mantos including Milagros ...... 4-7 4.3.3 Dalmacia...... 4-10 4.3.4 Esperanza ...... 4-13 4.4 Project Agreements ...... 4-15 4.5 Royalties ...... 4-16 4.6 Environmental ...... 4-17 4.7 Permitting ...... 4-17 4.8 Social ...... 4-17 4.9 Mineral Tenure and Mining Rights ...... 4-17 4.10 Environmental Liabilities and Considerations ...... 4-18 4.11 Property Risks ...... 4-18 4.12 Geologic Risk ...... 4-18 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ...... 5-1 5.1 Accessibility ...... 5-1 5.2 Climate ...... 5-1 5.3 Physiography ...... 5-1 5.4 Flora and Fauna...... 5-1 5.5 Local Resources and Infrastructure ...... 5-2

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

6 History ...... 6-1 6.1 Exploitation ...... 6-1 6.2 Exploration ...... 6-3 6.2.1 Cinabrio ...... 6-3 6.2.2 San Andreas ...... 6-5 6.2.3 Los Mantos and Milagros ...... 6-6 6.2.4 Dalmacia...... 6-6 7 Geological Setting and Mineralization ...... 7-1 7.1 Cinabrio ...... 7-1 7.2 Dalmacia ...... 7-1 7.3 Milagros and Los Mantos ...... 7-1 7.4 Summary ...... 7-2 8 Deposit Types ...... 8-1 9 Exploration ...... 9-1 9.1 Cinabrio ...... 9-1 9.2 San Andres ...... 9-1 9.3 Los Mantos and Milagros ...... 9-2 9.4 Dalmacia ...... 9-6 10 Drilling ...... 10-1 10.1 Cinabrio ...... 10-1 10.1.1 Diamond Drilling ...... 10-1 10.1.2 Channel Sampling ...... 10-5 10.2 Dalmacia ...... 10-5 11 Sample Preparation, Analyses and Security ...... 11-1 11.1 Quality Assurance and Quality Control Programs ...... 11-2 11.1.1 MAP Laboratory ...... 11-3 11.1.2 Channel Samples ...... 11-4 11.1.3 ALS Chemex Laboratory ...... 11-21 11.1.4 MAP - ALS Chemex Laboratory Comparison ...... 11-28 12 Data Verification ...... 12-1 12.1 Resource Estimation ...... 12-1

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

12.2 Metallurgy ...... 12-1 13 Mineral Processing and Metallurgical Testing ...... 13-2 14 Mineral Resource Estimate ...... 14-1 14.1 Cinabrio ...... 14-1 14.1.1 Drillhole Database ...... 14-1 14.1.2 Geological Modelling ...... 14-3 14.1.3 Assay Statistics ...... 14-4 14.1.4 Variography ...... 14-7 14.1.5 Block Model ...... 14-8 14.1.6 Resource Classification ...... 14-10 14.1.7 Validation ...... 14-10 14.1.8 Reporting Model ...... 14-10 14.1.9 Discussion ...... 14-13 14.2 Dalmacia ...... 14-14 14.2.1 Drillhole Database ...... 14-14 14.2.2 Geological Modelling ...... 14-14 14.2.3 Assay Statistics ...... 14-16 14.2.4 Variography ...... 14-17 14.2.5 Block Model ...... 14-18 14.2.6 Density...... 14-18 14.2.7 Grade Estimation ...... 14-19 14.2.8 Resource Classification ...... 14-20 14.2.9 Validation ...... 14-22 14.2.10 Reporting Model ...... 14-22 15 Mineral Reserve Estimate ...... 15-1 16 Mining Methods ...... 16-1 17 Process Description / Recovery Methods ...... 17-2 18 Project Infrastructure and Services ...... 18-1 19 Market Studies and Contracts ...... 19-1 20 Environmental Studies, Permitting and Social or Community Impacts ...... 20-1 21 Capital and Operating Cost Estimate ...... 21-1 22 Economic Analysis ...... 22-1 23 Adjacent Properties ...... 23-1 24 Other Relevant Data and Information ...... 24-1

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

24.1 Mining Methods ...... 24-1 24.1.1 Production ...... 24-1 24.1.2 Equipment ...... 24-2 24.1.3 Geotechnical Considerations ...... 24-3 24.1.4 Cinabrio Underground Mine ...... 24-4 24.1.5 Dalmacia Underground Mine...... 24-8 24.1.6 Dalmacia Surface Mine ...... 24-10 24.1.7 Milagros Underground Mine ...... 24-11 24.1.8 Los Mantos Mine Area ...... 24-12 24.2 Process Description / Recovery Methods ...... 24-13 24.2.1 Plant Description ...... 24-13 24.2.2 Process Recovery ...... 24-23 24.2.3 Plant Recommendations ...... 24-34 24.2.4 Operating Costs ...... 24-38 24.3 Project Infrastructure and Services ...... 24-39 24.3.1 Water Supply ...... 24-40 24.3.2 Tailings Disposal ...... 24-41 24.4 Market Studies and Contracts ...... 24-42 24.4.1 Smelter Contract ...... 24-43 24.4.2 Royalties ...... 24-43 24.4.3 Contracts ...... 24-43 24.5 Environmental Studies, Permitting and Social or Community Impacts ...... 24-43 24.5.1 Permitting and Compliance ...... 24-43 24.5.2 Environmental Management Measure and Voluntary Commitments ...... 24-45 24.5.3 Closure Plans ...... 24-46 24.5.4 Community Relations ...... 24-46 25 Interpretations and Conclusions ...... 25-1 25.1 Summary Statement ...... 25-1 25.2 Risks ...... 25-1 26 Recommendations ...... 26-1 26.1 Permits ...... 26-1

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

26.2 Planned Drilling Program ...... 26-1 26.2.1 Cinabrio ...... 26-2 26.2.2 San Andres ...... 26-5 26.2.3 Dalmacia...... 26-6 26.2.4 Los Mantos/Milagros ...... 26-7 26.3 Community Engagement ...... 26-9 26.4 Environmental Management Team and Plan ...... 26-9 26.5 Comprehensive Operations Plan ...... 26-10 26.5.1 Processing Plant Recovery ...... 26-11 26.5.2 Selling the Oxide Copper Mineralized Product ...... 26-12 26.5.3 Metallurgical Testwork ...... 26-12 26.5.4 Underground Mine Contract ...... 26-13 26.5.5 Tailings Disposal ...... 26-13 26.5.6 Mining Reserve ...... 26-13 26.5.7 Cost of Recommendations ...... 26-13 27 References ...... 27-1 28 Units of Measure, Abbreviations and Acronyms ...... 28-1 29 Certificates of Qualified Persons (QPs) ...... 29-1

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

List of Tables and Figures Table 1-1: Payment by MAP for Exploration and Exploitation Concessions (2018 ...... 1-2 Table 1-2: Cinabrio Mineral Resource Estimate at 0.8% CuT Cut-off (2017) ...... 1-3 Table 1-3: Dalmacia Mineral Resources at 0.6% CuT% Cut-off (2017) ...... 1-3 Table 1-4: 31 December 2017 Reserve Statement by Glencore Plc. (Historic) ...... 1-4 Table 1-5: Production by Year from MAP Operations ...... 1-4 Table 2-1: Responsibility Matrix for this Report ...... 2-1 Table 4-1: List of Exploration Concessions at Cinabrio ...... 4-6 Table 4-2: List of Exploitation Concessions at Cinabrio ...... 4-6 Table 4-3: List of Exploration Concessions at Los Mantos ...... 4-10 Table 4-4: List of Leased Exploitation Concessions at Los Mantos ...... 4-10 Table 4-5: List of Dalmacia Exploration Concessions ...... 4-13 Table 4-6: List of Dalmacia Exploitation Concessions ...... 4-13 Table 4-7: List of Exploration and Exploitation Concessions at Esperanza ...... 4-15 Table 4-8: Payment by MAP for Exploration and Exploitation Concessions (2018) ...... 4-18 Table 6-1: Historic Reserve Statement by Glencore Plc. (31 December 2017) ...... 6-1 Table 6-2: Production by Year from MAP Operations ...... 6-3 Table 9-1: San Andres Drilling Summary ...... 9-1 Table 9-2: San Andres 2017 Drill Intersections ...... 9-2 Table 9-3: Los Mantos Drilling Intersections ...... 9-6 Table 10-1: Cinabrio Drilling Summary ...... 10-1 Table 10-2: Dalmacia Drillhole Database Summary by Year ...... 10-6 Table 11-1: Sample Preparation and Analytical Procedures used by ALS Chemex ...... 11-2 Table 11-2: Summary of Sampling by Minera Altos de Punitaqui ...... 11-3 Table 11-3: MAP Laboratory Samples Summary ...... 11-4 Table 11-4: Summary of Coarse Reject Duplicate Data for Channel Samples ...... 11-4 Table 11-5: Summary of Fine Duplicate Data for Channel Samples ...... 11-5 Table 11-6: Summary of Blank Samples Inserted with Channel Samples ...... 11-10 Table 11-7: Summary of Coarse Duplicate Data for Drilling ...... 11-12 Table 11-8: Summary of Blank Sample Results Inserted with Drillhole Samples ...... 11-17 Table 11-9: List of Standard Samples Analyzed by the MAP Laboratory ...... 11-19

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Table 11-10: Summary of Samples Sent to ALS Chemex Laboratory ...... 11-21 Table 11-11: Summary of Drillhole Coarse Duplicates Sent to ALS Chemex ...... 11-22 Table 11-12: Summary of Blank Sample Results Sent to ALS Chemex ...... 11-26 Table 11-13: Standard Sample Analysis (GBM910-6) ...... 11-28 Table 11-14: Summary of Laboratory Analysis by MAP & ALS Chemex of Drill Sample Pulps ...... 11-29 Table 13-1: Dalmacia Testwork Results ...... 13-3 Table 14-1: Punitaqui Mineral Resources ...... 14-1 Table 14-2: Cinabrio Drillhole Database Summary...... 14-2 Table 14-3: Comparison of Drillhole Assays and Channel Sample Assays ...... 14-2 Table 14-4: Composite Sample Statistics for Block 0 and Block 4 ...... 14-4 Table 14-5: Composite Sample Statistics for Block 0 and Block 4 After Capping ...... 14-7 Table 14-6: Cinabrio Estimation Search Strategy ...... 14-9 Table 14-7: Cinabrio Cut-off Grade Determination ...... 14-12 Table 14-8: Cinabrio Mineral Resource Estimate at 0.8% CuT Cut-off ...... 14-12 Table 14-9: Dalmacia Drillhole Database Summary by Hole Type...... 14-14 Table 14-10: Composite Sample Statistics ...... 14-16 Table 14-11: Composite Sample Statistics After Capping ...... 14-17 Table 14-12: Dalmacia Estimation Search Pass Strategy ...... 14-19 Table 14-13: CuS / CuT Ratio's Used to Determine Oxide Category ...... 14-21 Table 14-14: Input Parameters for Dalmacia Pit Optimization ...... 14-22 Table 14-15: Dalmacia Cut-off Grade Determination ...... 14-24 Table 14-16: Dalmacia Mineral Resource Estimate at 0.6% CuT Cut-off ...... 14-25 Table 24-1: Production Sources for 2017 ...... 24-1 Table 24-2: Punitaqui Production in 2018 ...... 24-2 Table 24-3: Old Mill Grinding Units Power ...... 24-14 Table 24-4: Calculations for Punitaqui Crushing Circuit ...... 24-18 Table 24-5: Crushing Equipment Sizes and Capacities ...... 24-19 Table 24-6: Calculations for Mill Power Draw, Physical and Sub-station Data ...... 24-21 Table 24-7: Flotation Residence Time Summary ...... 24-22 Table 24-8: Variation in 3 Hour Samples taken on the Plant throughout December 2017 ...... 24-25 Table 24-9: Concentrate Grade vs. Recovery Correlation for 3 hr Samples during December 2017 ... 24-28

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Table 24-10: Monthly Metallurgical Data for 2010 – 2017 ...... 24-30 Table 24-11: Processing Rates and Recoveries for 2018 ...... 24-33 Table 24-12: Recovery by Size Fraction Calculations ...... 24-37 Table 24-13: Budgeted Plant Costs for 2018 ...... 24-39 Table 24-14: Existing Permits and Applications...... 24-44 Table 26-1 - Punitaqui Planned Drilling – Phase 1 ...... 26-1 Table 26-2 - Punitaqui Planned Drilling - Phase 2 ...... 26-2 Table 26-3: Production Source for 2017, Stated as Percentages ...... 26-11

Figure 4-1: Location of Punitaqui Mining Complex ...... 4-1 Figure 4-2: Concession Location Map for the Punitaqui Mining Project ...... 4-3 Figure 4-3: The Exploration Concessions of the Cinabrio Mine and Surrounds Including San Andres .... 4-4 Figure 4-4: The Exploitation Concessions at the Cinabrio Project Including San Andres ...... 4-5 Figure 4-5: The Los Mantos Exploration Concessions including Milagros ...... 4-8 Figure 4-6: The Los Mantos Exploitation Concessions ...... 4-9 Figure 4-7: The Dalmacia Exploration Concessions ...... 4-11 Figure 4-8: The Dalmacia Exploitation Concessions ...... 4-12 Figure 4-9: The Esperanza Exploration and Exploitation Concessions ...... 4-14 Figure 6-1: Map of Surface Geology, Cinabrio Region ...... 6-4 Figure 6-2: San Andres IP Chargeability Anomaly ...... 6-5 Figure 6-3: Dalmacia Ground Magnetics ...... 6-6 Figure 9-1: San Andres Drilling Locations ...... 9-2 Figure 9-2: Los Mantos Cross Section 6583850N ...... 9-4 Figure 9-3: Los Mantos 3D View ...... 9-5 Figure 10-1: Cinabrio Drillhole Collar Locations ...... 10-2 Figure 10-2: Drillhole Collar Survey Certificate ...... 10-3 Figure 10-3: Downhole Survey Report ...... 10-4 Figure 10-4: Channel Sample Checkbook Record ...... 10-5 Figure 10-5: Dalmacia Drillhole Locations ...... 10-7 Figure 11-1: Photo of MAP Core Logging Facility ...... 11-1 Figure 11-2: Scatterplot of CuT% for Channel Sample Pulp Duplicates ...... 11-5

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Figure 11-3: Scatterplot of Ag (ppm) for Channel Sample Pulp Duplicates ...... 11-6 Figure 11-4: Q-Q Plot of CuT% for Channel Sample Pulp Duplicates ...... 11-7 Figure 11-5: Q-Q Plot of Ag (ppm) for Channel Sample Pulp Duplicates ...... 11-7 Figure 11-6: Graph Relative Difference vs. CuT% Grade Averages ...... 11-8 Figure 11-7: Graph Relative Difference vs. Ag (ppm) Grade Averages ...... 11-9 Figure 11-8: CuT% Blank Sample vs. Previous Sample ...... 11-11 Figure 11-9: Ag (ppm) Blank Sample vs Previous Sample ...... 11-11 Figure 11-10: Scatterplot of CuT% for Drilling Sample Coarse Duplicates ...... 11-13 Figure 11-11: Scatterplot of Ag (ppm) for Channel Sample Pulp Duplicates ...... 11-13 Figure 11-12: Q-Q Plot of CuT% for Drilling Sample Coarse Duplicates ...... 11-14 Figure 11-13: Q-Q Plot of Ag (ppm) for Drilling Sample Coarse Duplicates ...... 11-14 Figure 11-14: Relative Difference Graph of Average CuT% for Drilling Sample Coarse Duplicates .... 11-15 Figure 11-15: Relative Difference Graph of Average Ag (ppm) for Drilling Sample Coarse Duplicates 11-15 Figure 11-16: Graph of Blank Sample Cu% vs. Previous Sample CuT% ...... 11-18 Figure 11-17: Graph of Blank Sample Ag (ppm) vs. Previous Sample Ag (ppm)...... 11-18 Figure 11-18: Standards CuT% Analysis vs. Reference Value ...... 11-19 Figure 11-19: Control Chart for Standard Sample GMB910-7 Analyzed by MAP ...... 11-20 Figure 11-20: Control Chart for Standard Sample GMB910-6 Analyzed by MAP ...... 11-20 Figure 11-21: Control Chart for Standard Sample GMB311-10 Analyzed by MAP ...... 11-21 Figure 11-22: Scatterplot of CuT% for Drillhole Coarse Duplicates Sent to ALS Chemex ...... 11-23 Figure 11-23: Scatterplot of Ag (ppm) for Drillhole Coarse Duplicates Sent to ALS Chemex ...... 11-23 Figure 11-24: Q-Q Plot of CuT% for Drillhole Coarse Duplicates Sent to ALS Chemex ...... 11-24 Figure 11-25: Q-Q Plot of Ag (ppm) for Drillhole Coarse Duplicates Sent to ALS Chemex ...... 11-24 Figure 11-26: Ave CuT% Relative Difference of Drillhole Coarse Duplicates Sent to ALS Chemex .... 11-25 Figure 11-27: Ave Ag (ppm) Relative Difference of Drillhole Coarse Duplicates Sent to ALS Chemex 11-25 Figure 11-28: Graph of ALS Chemex Blank Sample Cu% vs. Previous Sample CuT% ...... 11-27 Figure 11-29: Graph of ALS Chemex Blank Sample Ag (ppm) vs. Previous Sample Ag (ppm) ...... 11-27 Figure 11-30: Control Chart for Standard Sample GMB910-6 Analyzed by ALS Chemex ...... 11-28 Figure 11-31: Dispersion Graph of CuT for the Analysis of MAP vs ALS Chemex ...... 11-29 Figure 11-32: Q-Q Plot of CuT% for MAP vs. ALS Chemex Analysis ...... 11-30 Figure 11-33: Graph of Relative Difference vs. CuT% Grade Averages ...... 11-31

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Figure 14-1: Example of Cinabrio Interpreted Cross Section ...... 14-3 Figure 14-2: 3D View of Block 0 in Red and Block 4 in Blue ...... 14-4 Figure 14-3: Block 0 Probability Plot of CuT% ...... 14-5 Figure 14-4: Block 4 Probability Plot of CuT% ...... 14-6 Figure 14-5: Block 0 Variogram Models ...... 14-7 Figure 14-6: Block 4 Variogram Models ...... 14-8 Figure 14-7: Cinabrio Grade (CuT%) * Thickness (m) Plot ...... 14-9 Figure 14-8: Cinabrio Long Section Grid ...... 14-11 Figure 14-9: Cross Section Showing Material Left in Mined Stopes ...... 14-13 Figure 14-10: Example of Interpreted Mineralization Cross Section ...... 14-15 Figure 14-11: Dalmacia Mineralization Wireframes at 0.2% CuT ...... 14-16 Figure 14-12: Probability Plot of CuT% ...... 14-17 Figure 14-13: Dalmacia Variogram Models ...... 14-18 Figure 14-14: Dalmacia Grade (CuT%) * Thickness (m) Plot ...... 14-19 Figure 14-15: Dalmacia Cross Section Highlighting Discontinuous Mineralization ...... 14-20 Figure 14-16: Graph of CuS / CuT along Drillhole Traces ...... 14-21 Figure 14-17: Dalmacia Cross Section Showing Open Pit Outline ...... 14-23 Figure 23-1: Mining Projects and Operations in Northern Chile ...... 23-1 Figure 24-1: Design Criteria for the Dalmacia Pit ...... 24-4 Figure 24-2: Design Criteria for Waste Dumps ...... 24-4 Figure 24-3: Isometric of Cinabrio Mine ...... 24-5 Figure 24-4: Typical Stope and Pillar Configurations at Cinabrio Mine ...... 24-6 Figure 24-5: Estimation of Recovery and Dilution Factors ...... 24-7 Figure 24-6: San Andreas Exploration Target ...... 24-8 Figure 24-7: Section through the Dalmacia Deposit ...... 24-9 Figure 24-8: Level 315 of the Dalmacia Underground Mine ...... 24-10 Figure 24-9: Dalmacia Open Pit Mine ...... 24-11 Figure 24-10: Milagros Underground Mine ...... 24-12 Figure 24-11: Process Plant Flowsheet and Equipment Listing ...... 24-17 Figure 24-12: Daily Plant Feed Variation for December 2017 ...... 24-24 Figure 24-13: Variation in 3 hr. Control Samples for Plant Feed - December 2017 ...... 24-25

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Figure 24-14: % Daily Variation in Recovery 3 hr. Samples for December 2017 ...... 24-26 Figure 24-15: % Daily Variation Cu Insoluble Recovery 3 hr. Samples for December 2017 ...... 24-27 Figure 24-16: Summarized Feed Grade vs. Recovery 1 December 2018 ...... 24-29 Figure 24-17: Summarized Conc. Grade vs. Recovery 1 December 2018 ...... 24-29 Figure 24-18: Summarized Monthly Feed Grade vs. Recovery 2010 – 2017 ...... 24-31 Figure 24-19: Summarized Monthly Conc. Grade vs. Recovery 2010 – 2017 ...... 24-31 Figure 24-20: Summarized Gold Feed vs. Recovery for Avance 1 in December 2017 ...... 24-32 Figure 24-21: Summarized Gold Concentrate Grade vs. Recovery for Avance 1 in December 2017 .. 24-32 Figure 24-22: Operating Costs for Punitaqui Concentrator ...... 24-38 Figure 24-23: Tailings Disposal Sites ...... 24-42 Figure 26-1 - Block 4 Mineralization in Footwall Andesite ...... 26-3 Figure 26-2: Block 0 Depth Extension Planned Drilling Long Section ...... 26-4 Figure 26-3 - Block 0 Depth Extension Planned Drilling Section ...... 26-5 Figure 26-4 - San Andres Planned Drilling ...... 26-6 Figure 26-5 - Dalmacia Planned Infill Drilling - Section 10350N ...... 26-7 Figure 26-6 - Los Mantos/Milagros Planned Drilling - Section 6583825N ...... 26-8 Figure 26-7 - Los Mantos/Milagros Long Section with Planned Drilling Pierce Points ...... 26-9

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

1 Summary

The Punitaqui Project is a producing copper-gold mine in Chile, located near the town of the town of Punitaqui, near Ovalle in the Fourth Region of the Republic of Chile. Minera Altos de Punitaqui Ltda (MAP) has operated for several years under the ownership and direction of Glencore Plc. prior to its acquisition by Xiana Mining Inc. on 22 May 2018. Xiana and Xiana Chile SPA (a wholly owned subsidiary of Xiana) signed the MAP agreement on May 18, 2018, to acquire a 100% interest in MAP pursuant to an arm’s length transaction with Glencore. The terms of the purchase were subsequently modified as announced in a 24 October 2018 News Release. The modified terms of the sale are summarized as follows:  US$2.5 million payable on the date of closing of the MAP Acquisition (“Closing”);  US$2.5 million payable on the first anniversary of the date of Closing (“First Deferred Consideration”);  US$10 million plus the amount of any Contingent Deferred Consideration Adjustment (as defined below) payable on the second anniversary of Closing (“Second Deferred Consideration Date”); and  US$10 million (less any Contingent Deferred Consideration Adjustment already paid) payable on the third anniversary of Closing.  A 1.5% net smelter royalty payable in excess of 9 million tonnes of ore being processed at MAP, following the closing of the MAP Acquisition. The property contains a mill that is permitted to operate at 3,000 t/d, fed by various sources near the property including: the Cinabrio mine; Dalamacia open pit mine (in development); the Dalmacia underground mine (in development); the Los Mantos open pit mine; and the Milagros underground mine. There is also a minor component of custom milling from nearby properties. The Cinabrio mine is located approximately 25 km north of the processing plant; the Dalmacia mines are approximately 12 km to the south; and the Los Mantos and Milagros mines are within 1 km to the south. Surface haulage from the outlying properties is accomplished using 20 to 25 tonne (t) highway trucks. The authorities allow a 20% increase in operational throughput over permit and so the mine can nominally run up to a mill throughput of 3,600 t/d. All mining is performed by a contractor. Site management, technical services, and the operation of the processing plant is by MAP. Of the approximately 741 on-site employees, 158 are company employees and 583 are contractors, most belonging to the mining contractor, Ingenería Y Construcciones Mas Errazuriz Limitada (Errazuriz). Approximately 90% of the workforce lives locally in the nearby towns of Punitaqui or Ovalle. Busing for site workers is provided by MAP. The mine is connected to grid power supplied by local producers. Stratification consists of a sequence of volcanic rocks (lavas, conglomerates and andesitic breccias) with marine sediment collations (shales, fossiliferous limestones and thin layers of sandstones). This sequence is known as “Estratos El Reloj” or the Clock Strata, of lower Cretaceous age.

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

This sequence is affected by granitic intrusives (Diorites, Granodiorites) of Upper Cretaceous age. The structural traits affecting the district are represented by stress and compression forces; this is reflected in north-south, northwest, and east-west orientation tectonics. The structural fabric of regional and district character control the location of copper mineralization. Mineralization occurs as impregnations and/or disseminations in all strata, affected by pre-existing fractures and minor faults. The economic mineralization is controlled by feeders and includes chalcopyrite, bornite and the gangue includes pyrite, calcite and quartz. In the oxide and transition zones (nominally 40 to 60 metres but quite variable) malachite, azurite and chrysocolla and native copper are common. It is emphasized that the dominant mineralogy in the enrichment zone consists mainly of bornite and chalcopyrite. In greater depth, mineralization is estimated to contain primary sulphides (pyrite, chalcopyrite and bornite). Special attention should be paid to registering this mineralogical transition in order to evaluate the change in both copper minerals and their behaviour in the metallurgical process. At present there is no active exploration on the property apart from definition drilling to support ongoing mining operations. Mineral Tenure and Mining Rights Legal guarantees assuring ownership of mineral holdings (both exploration and mining concessions) are provided for, and are derived from, the Constitution of Chile, by Basic Constitutional Laws, and Codes & Regulations, which apply specifically to the mining industry. Chilean Mining Legislation and its application are derived from the Mining Code and Regulations. This Code basically establishes that to explore for, or to mine, whatever type of mineral species, it is necessary to obtain the rights to pursue said activity from the State, i.e., all minerals are property of the State (Article 1 of the Mining Code (MC) states that: “The State has absolute, exclusive, unalienable and imprescriptible dominion of all mines....”). For these rights to be obtained, the State has defined legal procedures which, when properly completed, provide exclusive mining rights (Article 34 MC: “The mining concessions are constituted by judicial resolution which is dictated by a process which is not contentious and without intervention by anyone or authority which requires decision making”). To hold and maintain mining concessions in Chile it is essential to keep the latter in force; this is achieved by paying the annual mining licenses. In March 2018, Minera Alto Punitaqui paid USD$40,191.10 for the concession fees for the year, as shown in Table 1-1. This equates to an average of USD$1.48 per hectare for Exploration concessions and USD$7.40 for Exploitation concessions.

Table 1-1: Payment by MAP for Exploration and Exploitation Concessions (2018

Concession Area Annual Payment Type (Ha) CLP US$ Exploration 2,600 $ 2.459.652 $3,843.20 Exploitation 4,918 $ 23.262.655 $36,347.90 Total 7,518 $ 25.722.307 $40,191.10 The mineral resource estimates are shown in Table 1-2 for Cinabrio and Table 1-3 for Dalmacia.

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT

Table 1-2: Cinabrio Mineral Resource Estimate at 0.8% CuT Cut-off (2017) Tonnes CuT CuS Ag Au Hg Project Category (Mt) (%) (%) (g/t) (g/t) (g/t) Measured 2.67 1.54 0.11 8.73 0.03 0.82 Indicated 1.36 1.33 0.19 7.09 0.03 1.92 Cinabrio Total M+I 4.03 1.47 0.13 8.18 0.03 1.19 Inferred 0.33 1.14 0.23 5.31 0.03 0.90 Total 4.36 1.45 0.14 7.96 0.03 1.17 Source: MAP

Table 1-3: Dalmacia Mineral Resources at 0.6% CuT% Cut-off (2017) Tonnes CuT CuS Ag Au Hg Project Category (Mt) (%) (%) (g/t) (g/t) (g/t) Measured 0.23 0.91 0.37 0.77 0.02 0.22 Indicated 0.27 0.83 0.37 0.91 0.02 0.19 Dalmacia Total M+I 0.50 0.87 0.37 0.85 0.02 0.21 South Inferred 0.03 0.80 0.44 0.87 0.02 0.14 Total 0.53 0.86 0.37 0.85 0.02 0.20

Tonnes CuT CuS Ag Au Hg Project Category (Mt) (%) (%) (g/t) (g/t) (g/t) Measured 1.00 0.97 0.40 1.66 0.18 0.11 Indicated 0.94 0.77 0.31 1.54 0.18 0.06 Dalmacia Total M+I 1.95 0.88 0.35 1.60 0.18 0.08 North Inferred 0.13 1.11 1.16 0.57 0.04 0.00 Total 2.08 0.89 0.41 1.54 0.17 0.08

Tonnes CuT CuS Ag Au Hg Project Category (Mt) (%) (%) (g/t) (g/t) (g/t) Measured 1.23 0.96 0.39 1.49 0.15 0.13 Indicated 1.21 0.79 0.32 1.40 0.15 0.09 Dalmacia Total M+I 2.44 0.87 0.36 1.45 0.15 0.11 Total Inferred 0.17 1.05 1.01 0.63 0.03 0.03 Total 2.61 0.88 0.40 1.40 0.14 0.10 Source: MAP

Despite the maturity of operations, the sizeable resource, and the fact that it is currently operating, Xiana has not declared any reserves for this property. Xiana understands that a considerable effort will be required for mine planning and metallurgical analysis to prepare a sound and comprehensive operating plan before any reserves can be declared.

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The most recent reserve for the property was published by Glencore Plc in the report “Glencore Resources & Reserves Report as at 31 December 2017”, as shown on Table 1-4. This is no longer considered to be valid or relied upon. The issuer is not treating this historical estimate as a current mineral reserve.

Table 1-4: 31 December 2017 Reserve Statement by Glencore Plc. (Historic) Proved Ore Probable Ore Total Ore Name of Attributable Mining Commodity Reserves Reserves Reserves Operation Interest Method 17.12.31 16.12.31 17.12.31 16.12.31 17.12.31 16.12.31 Punitaqui 100% UG/OC Ore (Mt) 1.12 0.32 0.89 0.08 2.01 0.40 Copper (%) 1.19 1.63 0.97 1.69 1.10 1.64 Silver (g/t) 3.42 4.40 3.01 4.71 3.24 4.46 Source: Glencore Resources & Reserves Report as at 31 December 2017

A detailed plan has been included in Section 26 for the preparation of a current reserve. MAP has operated the property continuously from October 2010. The production over this period is shown in Table 1-5.

Table 1-5: Production by Year from MAP Operations Year Tonnes %CuT Ag ppm Au ppm 2010 175,548 1.25 2011 960,497 1.34 10.44 2012 1,075,922 1.43 8.61 2013 1,076,932 1.36 5.07 2014 1,119,529 1.30 3.73 2015 785,528 1.27 5.98 0.00 2016 1,028,709 0.95 3.50 0.45 2017 1,054,880 0.71 2.48 0.75 2018 (Q1) 65,327 0.91 3.63 0.26 Total 7,342,872 1.19 5.46 0.17 Source: MAP

Each of the operation’s facilities require both mining and environmental permits, issued by SERNAGEOMIN and SEA respectively. Mining permits in connection with the key mining deposits namely, Cinabrio, Dalmacia South, Milagros and Los Mantos are either currently in place or have been submitted for renewal, as detailed in Section 20. All environmental permits are in the process of being renewed. Xiana believes that there are limited risks associate with the non-renewal of all permits. Thus, the property is not fully permitted for all aspects of operations. It also has operated outside of its permits over the past year as it worked with the two main regulating agencies SERNAGEOMIN and SEA to update, extend, or replace various permits. The regulators are aware of this situation and have allowed operations to continue as MAP works on establishing the required permits. Details regarding the status of all permits and applications is presented in Section 20.

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The conclusions of the Qualified Persons (QPs) are as follows:  The various mines and all infrastructure including the mill are fully operational.  There is every expectation that the necessary permits will be granted in due course for continued operations.  A significant quantity of work will be required to realize the full economic potential of the property and to declare a new reserve. This includes permitting, community engagement, environmental management, metallurgical testwork, diamond drilling, detailed mine planning and scheduling, contract negotiation, and a commitment to continuous improvement for all processes.

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2 Introduction

2.1 Purpose On 22 May 2018 Xiana Mining Inc. announced that it was acquiring 100% of the Minera Altos de Punitaqui (MAP), a wholly-owned subsidiary of Glencore Plc., producing copper-gold property in Chile. This report has been prepared for Xiana Mining Inc. at its request for submission to the BCSC in support of this filing with the Canadian Venture Exchange (CDNX) as per the National Instrument 43-101. It contains a detailed description of the mining and milling operations and resources of predominantly copper-silver and gold that Xiana is acquiring in the transaction. Although operations are ongoing, this report does not declare any reserve for the property, nor does it present any economics associated with current or future operating plans, as these are in development at the time of this report.

2.2 QP Responsibility Matrix Table 2-1 shows the responsibility matrix for this report, detailing the contributions of the QPs by section.

Table 2-1: Responsibility Matrix for this Report

Section Section Heading QP SIGN-OFF Contributors

1 Executive Summary JDS All QPs and GAC 1.1 Introduction 1.2 Property Description and Ownership 1.3 Geology and Mineralization 1.4 History, Exploration and Drilling 1.5 Mineral Processing and Metallurgical testing 1.6 Mineral Resource Estimate 1.7 Mining Methods 1.8 Recovery Methods 1.9 Project Infrastructure 1.10 Environment and Permitting 1.11 Capital and Operating Costs 1.12 Economic Analysis 1.13 Conclusions and Recommendations 2 Introduction JDS 3 Reliance on Other Experts JDS 4 Property Description and Location JDS Accessibility, Climate, Local Resources, 5 JDS Infrastructure and Physiography

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Section Section Heading QP SIGN-OFF Contributors

JDS 6 History

7 Geological Setting and Mineralization JDS 8 Deposit Type JDS 9 Exploration JDS 10 Drilling Ross Corben

11 Sample Preparation, Analysis and Security Ross Corben 12 Data Verification 12.1 Resource Estimation Ross Corben 12.2 Metallurgy Len Holland 13 Mineral Processing and Metallurgical Testing Len Holland 14 Mineral Resource Estimate Ross Corben 15 Mineral Reserve Estimate n/a 16 Mining Methods n/a 17 Recovery Methods n/a 18 Project Infrastructure n/a 19 Market Studies and Contracts n/a Environmental Studies, Permitting and Social or 20 n/a Community Impact 21 Capital Costs and Operating Costs n/a 22 Economic Analysis n/a 23 Adjacent Properties MAP Xiana 24 Other Relevant Data and Information JDS Xiana 24.1 Mining JDS Xiana 24.2 Processing Len Holland Xiana 24.3 Project Infrastructure and Services JDS Xiana 24.4 Market studies and Contracts JDS 24.5 Environmental Studies, Permitting and Social JDS GAC or Community Impacts 25 Interpretation and Conclusions JDS All QPs 26 Recommendations JDS All QPs 27 References JDS All QPs Source: JDS (2018)

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2.3 Site Visits by QPs The most recent site visits by the QPs are as follows:  Richard Goodwin, P.Eng February 2018  Len Holland, FIMM February 2018  Ross Corban, FAusIMM March 2018

2.4 Sources of Information The information in this report was collected by JDS directly from MAP technical and supervisory staff as part of a due diligence exercise for this acquisition from 19 to 23 February 2018. This site visit was conducted by Nick Stoneberger, Alan Reeves, P.Geo, and Richard Goodwin, P.Eng (the author of this report). Additional information was obtained from MAP by Xiana Mining Inc. and the QPs listed in this report. JDS does not question the veracity of the data provided from any of these sources. The following facilities were inspected by the JDS team over the course of the site visit:  The Cinabrio Mine;  The Dalmacia open pit mine;  The Dalmacia underground mine;  The Los Mantos open pit mine;  The processing plant; and  The tailings disposal sites. The Milagros underground mine could not be visited, as it was closed by the Chilean government at the time of the site visit. All figures used in this report have all been extracted from various MAP presentations made to the JDS team while at site and provided via a virtual data room. All aspects of permitting, compliance, and community relations, including interpretations and conclusions, have been derived from the report entitled “Due Diligence, Minera Altos de Punitaqui, Region of Coquimbo, Chile” dated 2 April 2018 and prepared by Gestión Ambiental Consultores S.A of Providencia, Chile and from information supplied by Xiana and MAP.

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3 Reliance on Other Experts

The best and most reliable permitting, compliance, and community relations information has been collected in a report entitled “Due Diligence, Minera Altos de Punitaqui, Region of Coquimbo, Chile” dated 2 April 2018 and prepared by Gestión Ambiental Consultores S.A of Providencia, Chile (GAC). All comments interpretations and recommendations regarding permitting, compliance, and community relations in this report rely on the work of GAC. The reader is encouraged to request a copy of this report from the company should additional information be desired with regard to the permitting, environmental, or social relations status of the Project.

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4 Property Description and Location

4.1 Location and Area The Punitaqui mining complex is located within a radius of 30 km of the town of Punitaqui, near Ovalle in the Fourth Region of the Republic of Chile (Figure 4-1).

Figure 4-1: Location of Punitaqui Mining Complex

Source: MAP

4.2 Ownership History The Punitaqui Mining Project was previously owned by Tamaya Resources Limited, an Australian based company. In April 2007, it announced that it would proceed with a Feasibility Study into exploiting oxide copper resources found on the Company’s mining and exploration leases at its Punitaqui mining complex in Region IV, Chile. Later, in 2010 Glencore International Plc acquired the project in brownfield stage, and has developed it since. The company Minera Altos de Punitaqui Limitada (MAP) is headquartered at the City of Ovalle in Chile. On 22 May 2018, Xiana Mining Inc. announced that it was acquiring 100% of the Minera Altos de Punitaqui (MAP). The Punitaqui Project is a producing copper-gold mine in Chile, located near the town of the town of Punitaqui, near Ovalle in the Fourth Region of the Republic of Chile. Minera Altos de Punitaqui Ltda (MAP)

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT has operated for several years under the ownership and direction of Glencore Plc. prior to its acquisition by Xiana Mining Inc. on 22 May 2018. Xiana and Xiana Chile spa (a wholly owned subsidiary of Xiana) signed the MAP agreement on May 18, 2018, to acquire a 100% interest in MAP pursuant to an arm’s length transaction with Glencore. The terms of the purchase were subsequently modified as announced in an October 24, 2018 News Release. The modified terms of the sale are summarized as follows:  US$2.5 million payable on the date of closing of the MAP Acquisition (“Closing”);  US$2.5 million payable on the first anniversary of the date of Closing (“First Deferred Consideration”);  US$10 million plus the amount of any Contingent Deferred Consideration Adjustment (as defined below) payable on the second anniversary of Closing (“Second Deferred Consideration Date”); and  US$10 million (less any Contingent Deferred Consideration Adjustment already paid) payable on the third anniversary of Closing.  A 1.5% net smelter royalty payable in excess of 9 million tonnes of ore being processed at MAP, following the closing of the MAP Acquisition.

4.3 Concessions The Punitaqui mining project contains 11,838 hectares of concessions. Of these 6,900 hectares of these concessions are exploration concessions and 4,938 are exploitation concessions. Only 50 hectares of exploitation concessions are leased from HMC (Haldeman Mining Company). Figure 4-2 shows an overview of these concessions.

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Figure 4-2: Concession Location Map for the Punitaqui Mining Project

Source: GeoWiz

4.3.1 Cinabrio The Cinabrio copper deposit is located in the Cerro La Campana, approximately 12 kilometers in a straight line to the south of the city of Ovalle, Province of El Marí, Coquimbo region (see Figure 4-1). The access from the city of Ovalle is by route D-605, which links the city with Punitaqui. The UTM coordinates of the operating area, is 6,599,735 N and 288,540 E, (South American Datum 1956, transversal Universal Mercator projection).

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The Cinabrio concessions are comprised of 500 hectares of Exploration licenses and 3,916 hectares of Exploitation licenses. The Exploration concessions are shown in Figure 4-3 and listed in Table 4-1. The Exploitation concessions and the Cinabrio resource outline are shown in Figure 4-4 and listed in Table 4-2.

Figure 4-3: The Exploration Concessions of the Cinabrio Mine and Surrounds Including San Andres

Source: GeoWiz

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Figure 4-4: The Exploitation Concessions at the Cinabrio Project Including San Andres

Source: GeoWiz

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Table 4-1: List of Exploration Concessions at Cinabrio Project Type Concession Area (ha) CINABRIO EXPLORACION ALTISIMO II 26 100 CINABRIO EXPLORACION ALTISIMO II 24 100 CINABRIO EXPLORACION ALTISIMO II 17 300 500 Source: MAP

Table 4-2: List of Exploitation Concessions at Cinabrio Project Type Concession Area (ha) CINABRIO EXPLOTACION ALTOS 18 1 AL 8 8 CINABRIO EXPLOTACION ANA LUISA II 1 AL 68 68 CINABRIO EXPLOTACION ALTOS 20 1 AL 100 100 CINABRIO EXPLOTACION ALTOS 21 1 AL 100 100 CINABRIO EXPLOTACION ALTOS 22 1 AL 200 200 CINABRIO EXPLOTACION ALTOS 23 1 AL 200 200 CINABRIO EXPLOTACION ALTOS 19 1 AL 62 62 CINABRIO EXPLOTACION ALTOS 35 1 AL 35 134 CINABRIO EXPLOTACION ALTOS 9 C 1 AL 20 20 CINABRIO EXPLOTACION ALTOS 9A 1 AL 35 35 CINABRIO EXPLOTACION ANA LUISA I 1 AL 140 140 CINABRIO EXPLOTACION ANALUISA 03 1 AL 290 290 CINABRIO EXPLOTACION ALTOS 17 1 AL 172 172 CINABRIO EXPLOTACION ALTISIMO I 18 1 AL 24 24 CINABRIO EXPLOTACION ALTOS 9B 1 AL 24 24 CINABRIO EXPLOTACION ALTOS 12 C 1 AL 10 10 CINABRIO EXPLOTACION ALTISIMO 6 1 AL 16 80 CINABRIO EXPLOTACION ALTISIMO 7 1 AL 16 64 CINABRIO EXPLOTACION ALTISIMO I 15 1 AL 28 140 CINABRIO EXPLOTACION ALTISIMO I 16 1 AL 14 42 CINABRIO EXPLOTACION GABRIEL 04 1 AL 212 212 CINABRIO EXPLOTACION ALTOS 11 B 1 AL 8 8 CINABRIO EXPLOTACION ALTOS 11A 1 AL 6 6 CINABRIO EXPLOTACION ALTOS 16 1 AL 75 75 CINABRIO EXPLOTACION ALTOS 12A 1 AL 78 78 CINABRIO EXPLOTACION ALTOS 12B 1 AL 5 5 CINABRIO EXPLOTACION ALTOS 13A 1 AL 48 48 CINABRIO EXPLOTACION ALTOS 14 A 1 AL 50 50 CINABRIO EXPLOTACION ALTOS 14B 1 AL 7 7

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Project Type Concession Area (ha) CINABRIO EXPLOTACION ALTOS 15 1 AL 86 86 CINABRIO EXPLOTACION ALTOS 10 1 AL 68 68 CINABRIO EXPLOTACION CINABRIO 1 AL 50 (28/50) 109 CINABRIO EXPLOTACION GABRIEL 05 1 AL 212 212 CINABRIO EXPLOTACION GABRIEL 06 1 AL 145 145 CINABRIO EXPLOTACION GABRIEL I 1 AL 200 200 CINABRIO EXPLOTACION GABRIEL II 1 AL 200 200 CINABRIO EXPLOTACION GABRIEL III 1 AL 244 244 CINABRIO EXPLOTACION GABRIEL VII 1 AL 5 5 CINABRIO EXPLOTACION GABRIEL VIII 1 AL 5 5 CINABRIO EXPLOTACION NUEVA CINABRIO 1 AL 42 42 CINABRIO EXPLOTACION SAN ANDRES 1 AL 14 98 CINABRIO EXPLOTACION ELVIRA 1 AL 20 100 Source: MAP

4.3.2 Los Mantos including Milagros The Los Mantos concessions total 850 hectares of which 800 hectares are Exploration concessions and 50 hectares of concessions are leased from Haldeman Mining Company. The exploration concessions are shown in Figure 4-5 and listed in Table 4-3. The exploitation concessions are shown in Figure 4-6 and listed in Table 4-4.

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Figure 4-5: The Los Mantos Exploration Concessions including Milagros

Source: GeoWiz

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Figure 4-6: The Los Mantos Exploitation Concessions

Source: GeoWiz

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Table 4-3: List of Exploration Concessions at Los Mantos Project Type Concession Area (ha) LOS MANTOS EXPLORACION DALMACIA III C 1 AL 26 200 LOS MANTOS EXPLORACION ALTOS II 40 100 LOS MANTOS EXPLORACION ALTOS II 38A 100 LOS MANTOS EXPLORACION ALTOS II 38 200 LOS MANTOS EXPLORACION ALTOS II 37 100 LOS MANTOS EXPLORACION ALTOS 41 200 LOS MANTOS EXPLORACION ALTOS II 39 100 1,000 Source: MAP

Table 4-4: List of Leased Exploitation Concessions at Los Mantos Project Type Concession Area (ha) LOS MANTOS (lease) TRINITARIA 5 LOS MANTOS (lease) ALBA 2 LOS MANTOS (lease) AZUCENA 3 LOS MANTOS (lease) CAPITANA 2 LOS MANTOS (lease) CASUALIDAD 5 LOS MANTOS (lease) CUMBRE 5 LOS MANTOS (lease) ESPERANZA O BUENA ESPERANZA 2 LOS MANTOS (lease) FUSIONADA 5 LOS MANTOS (lease) PORTEZUELO 5 LOS MANTOS (lease) RAMONCITO 2 LOS MANTOS (lease) RESGUARDO 1 AL 5 14 50 Source: MAP

4.3.3 Dalmacia The Dalmacia Project has 1,872 hectares of concessions of which 1,100 are Exploration concessions and 772 hectares are Exploitation concessions. The Exploration concessions are shown in Figure 4-7 and listed in Table 4-5. The Exploitation concessions and the Dalmacia resource outline are shown in Figure 4-8 and listed in Table 4-6. .

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Figure 4-7: The Dalmacia Exploration Concessions

Source: GeoWiz

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Figure 4-8: The Dalmacia Exploitation Concessions

Source: GeoWiz

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Table 4-5: List of Dalmacia Exploration Concessions Project Type Concession Area (ha) DALMACIA EXPLORACION ALTOS I 29 100 DALMACIA EXPLORACION DALMACIA II 4 200 DALMACIA EXPLORACION DALMACIA II 3 200 DALMACIA EXPLORACION DALMACIA II 2 200 DALMACIA EXPLORACION ALTOS I 29A 100 DALMACIA EXPLORACION ALTOS I 28 100 DALMACIA EXPLORACION DALMACIA II 1 200 1,100 Source: MAP

Table 4-6: List of Dalmacia Exploitation Concessions Project Type Concession Area (ha) DALMACIA EXPLOTACION ALTOS 2A 1 AL 89 89 DALMACIA EXPLOTACION DALMACIA III B 1 AL 69 69 DALMACIA EXPLOTACION DALMACIA III A 1 AL 20 20 DALMACIA EXPLOTACION DALMACIA II 1 AL 62 62 DALMACIA EXPLOTACION DALMACIA 1 AL 20 100 DALMACIA EXPLOTACION ARCO IRIS 1 AL 20 100 DALMACIA EXPLOTACION DALMACIA III C 1 AL 26 26 DALMACIA EXPLOTACION ALTOS 3 1 AL 116 116 DALMACIA EXPLOTACION ALTOS 1B 1 AL 14 14 DALMACIA EXPLOTACION ALTOS 1A 1 AL 4 4 DALMACIA EXPLOTACION ALTISIMO 4A 1 AL 9 9 DALMACIA EXPLOTACION ALTISIMO 3 1 AL 19 19 DALMACIA EXPLOTACION ALTISIMO 2 1 AL 89 89 DALMACIA EXPLOTACION ALTISIMO 1 1 AL 19 19 DALMACIA EXPLOTACION ALTOS 4 1 AL 8 8 DALMACIA EXPLOTACION ALTOS 28 1 AL 28 28 772 Source: MAP

4.3.4 Esperanza The Esperanza concessions contain 200 hectares of concessions, all 200 of which are exploitation concessions. The area is located approximately 30 km south east of Los Mantos and is not currently being subject to any formal mining activity. The concessions are shown in Figure 4-9 and listed in Table 4-7.

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Figure 4-9: The Esperanza Exploration and Exploitation Concessions

Source: GeoWiz

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Table 4-7: List of Exploration and Exploitation Concessions at Esperanza Project Type Concession Area (ha) ESPERANZA EXPLOTACION ESPERANZA 1 1 AL 20 100 ESPERANZA EXPLOTACION ESPERANZA 15 1 AL 20 100 200 Source: MAP

4.4 Project Agreements In this section, main agreements and assets are listed. There are the following material contracts in place: 1. Water Supply Agreement (Contrato de Suministro de Agua) entered into by and between the Target Company and Sociedad de Inversiones Elai Limitada on 16 September 2013; and 2. Mining Concessions with Royalty Lease Agreement (Contrato de Arrendamiento de Concesiones mineras con Regalía) entered into by and between the Target Company and Sociedad Contractual Minera HMC Gold on 18 September 2015. Moreover, there are the following easements in favor of Punitaqui Mining Project, in place: 1. Easement identified as "Servidumbre Minera / Planta", of approximately 73.24 hectares; incorporated in favor of Mineral Benefit Plant (Planta de Beneficio de Minerales) owned by Minera Altos del Punitaqui Limitada; 2. Easement of approximately 25 hectares, corresponding to Los Mantos Project; incorporated in favor of Mineral Benefit Plant (Planta de Beneficio de Minerales) owned by Minera Altos del Punitaqui Limitada; 3. Easement of approximately 1,983.2 square meters, corresponding to Los Mantos Project; incorporated in favor of a project of an electric transmission line project by which Transnet S.A. supply electricity to an electrical substation owned by Minera Altos del Punitaqui Limitada; 4. Easement of approximately 50 hectares, corresponding to Dalmacia Project; incorporated in favor of the mining concessions (pertenencias mineras) "Dalmacia Primera a Vigesima" and "Arco Iris Uno al Veinte", owned by Minera Altos del Punitaqui Limitada and located within a property owned by Comunidad Agricola Punitaqui. 5. Easement of approximately 250 hectares, corresponding to Dalmacia Project; incorporated in favor of the mining concessions (pertenencias mineras) "Dalmacia Primera a Vigesima" and "Arco Iris Uno al Veinte", owned by Minera Altos del Punitaqui Limitada and located within a property owned by Comunidad Agricola Punitaqui. 6. Easement of approximately 23.88 hectares, corresponding to Cinabrio Project; Comunidad Agrícola Potrerillo Alto granted an easement in favor of the mining concession (pertenencias minera) "Cinabrio Veintiocho al Cincuenta", owned by Minera Altos del Punitaqui Limitada and located within a property owned by Comunidad Agrícola Potrerillo Alto. 7. Easement of approximately 50 hectares, corresponding to Cinabrio Project; Comunidad Agrícola Potrerillo Alto granted an easement in favor of the mining concession (pertenencias minera)

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"Cinabrio Veintiocho al Cincuenta", owned by Minera Altos del Punitaqui Limitada and located within a property owned by Comunidad Agrícola Potrerillo Alto; 8. Judicial easement of approximately 60 hectares, corresponding to Los Mantos Project; 9. By means of judicial resolution dated 13 September 2017, ruled by the 2° Civil Court of Ovalle, Comunidad Agricola Altos de Punitaqui granted an easement in favor of Minera Altos del Punitaqui Limitada; 10. Judicial easement which extension is approximately 198.6 hectares, corresponding to Cinabrio Project; and 11. By means of judicial resolution dated 29 March 2011, ruled by the 8° Civil Court of Santiago, Comunidad Agrícola Potrerillo Alto granted an easement in favor of the mining concession (pertenencias minera) "Cinabrio Veintiocho al Cincuenta", owned by Minera Altos del Punitaqui Limitada and located within a property owned by Comunidad Agrícola Potrerillo Alto. Thirdly, there are the following realty properties owned by Minera Altos del Punitaqui Limitada: 1. Concerning Cinabrio site: a. Property registered at folio 1576, No. 1005 of the year 2011. 2. Concerning Los Mantos Site: a. Property registered on folio 777 back No. 652 year 2011. b. Property registered on folio 6793 back No. 3016 year 2010. c. Property registered on folio 772 back No. 648 year 2011. d. Property registered on folio 774 No. 649 year 2011. e. Property registered on folio 775 No. 650 year 2011. f. Property registered on folio 776 No. 651 year 2011. g. Property registered on folio 4145 back No. 2976 year 2016.

4.5 Royalties The Punitaqui mining project contains 50 hectares of exploitation concessions located in Coquimbo region, province of Limarí province, county of Punitaqui, Los Mantos sector currently leased from Haldeman Mining Company. MAP also pays a 3% Royalty of the Net Smelter Return (NSR) for all the years in which there is production from those concessions. The Royalty is defined, calculated and paid under the terms contained in said agreement. A 1.5% net smelter royalty payable will be payable to Glencore plc in excess of 9 million tonnes of ore being processed at MAP, following the closing of the MAP Acquisition.

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4.6 Environmental The Minera Altos del Punitaqui (MAP) facilities are located in three separate areas, namely: "Cinabrio Mine", “Los Mantos Work Area" (Los Mantos Plant, Milagros Mine and tailings dams) and “Nova Galicia – Dalmacia Mines". The first area is administratively located in the commune of Ovalle, while the other two are located in Punitaqui, both belonging to the Province of Limarí, IV Region of Coquimbo. MAP's facilities comprise a number of components; some currently in operation and others planned for the future.

4.7 Permitting Each of the operation’s facilities require both mining and environmental permits, issued by SERNAGEOMIN and SEA respectively. Mining permits in connection with the key mining deposits namely, Cinabrio, Dalmacia South, Milagros and Los Mantos are either currently in place or have been submitted for renewal, as detailed in Section 20. All environmental permits are in the process of being renewed. Xiana believes that there are limited risks associate with the non-renewal of all permits.

4.8 Social Currently, MAP does not have any agreement in force with the communities affected by the project. In this sense, MAP states that it has a good relationship with the community and its workers.

4.9 Mineral Tenure and Mining Rights Mineral Tenure and Mining Rights Legal guarantees assuring ownership of mineral holdings (both exploration and mining concessions) are provided for, and are derived from, the Constitution of Chile, by Basic Constitutional Laws, and Codes & Regulations, which apply specifically to the mining industry. Chilean Mining Legislation and its application are derived from the Mining Code and Regulations. This Code basically establishes that to explore for, or to mine, whatever type of mineral species, it is necessary to obtain the rights to pursue said activity from the State, i.e., all minerals are property of the State (Article 1 of the Mining Code (MC) states that: “The State has absolute, exclusive, unalienable and imprescriptible dominion of all mines....”). For these rights to be obtained, the State has defined legal procedures which, when properly completed, provide exclusive mining rights (Article 34 MC: “The mining concessions are constituted by judicial resolution which is dictated by a process which is not contentious and without intervention by anyone or authority which requires decision making”). To hold and maintain mining concessions in Chile it is essential to keep the latter in force; this is achieved by paying the annual mining licenses. In March 2018, Minera Alto Punitaqui paid USD$40,191.10 for the concession fees for the year, as shown in Table 4-8. This works out to USD$1.48 per hectare for Exploration concessions and USD$7.40 for Exploitation concessions.

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Table 4-8: Payment by MAP for Exploration and Exploitation Concessions (2018)

Concession Area Annual Payment Type (Ha) CLP US$ Exploration 2,600 $ 2.459.652 $3,843.20 Exploitation 4,918 $ 23.262.655 $36,347.90 Total 7,518 $ 25.722.307 $40,191.10

4.10 Environmental Liabilities and Considerations Xiana has stated that the level of impact resulting from previous and current operations is moderate in comparison to other Chilean operations. The author noted on his visit that the area of disturbance is moderate and localized to the surface extent of the veins and plant areas. The extent of potential clean-up is significant and will depend on the interpretation of the regulators as to how detailed the rehabilitation required will be. Given the desert climate, the potential for ARD issues is negligent and similarly, water drainage issues are not of any concern.

4.11 Property Risks Apart from the usual requirements of obtaining agreements with surface rights holders, there are no significant factors or risks that may affect the access, title, or rights / ability to perform work on the property. There is a potential of civil unrest, but that has not been an issue at the site to date.

4.12 Geologic Risk The property has historically operated with a high ratio of resources to reserves, approximately 3:1. While the resources are well understood, and the property has a long history of converting resources to reserves, there is always a risk that not all of the geological resources will prove mineable when applied to a mine plan.

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5 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Accessibility Access to Punitaqui is via a sealed and gravel road 30 minutes south of Ovalle. Cinabrio is located just off the road linking both locations, approximately 15 minutes’ drive south of Ovalle. Employees either drive or are bussed to site.

5.2 Climate The area between Punitaqui and Ovalle has a desert climate. There is virtually no rainfall during the year with precipitation registering between 152 and 127 mm annually for both locations respectively. Average annual temperature is between 15.7 and 15.5 degrees Celsius respectively for both locations (Source Climate-Data.org). Climate characteristics in the Region of Coquimbo are defined upon the interaction of three factors:  the wide range of high subtropical pressures, especially the anticyclone of the south-west Pacific;  the presence of the cold Humboldt current in the Pacific Ocean; and  the longitudinal coastal mountain range, the Andean mountain range, and transversal mountainous sectors. All of these factors make the movement of air masses difficult. These elements are present previous to the desertification process, through factors such as degree of aridity, long-term climate changes, and climate fluctuations like drought. According to the classification by de Fuenzalida (1971), the location of the Project is found in a semiarid cold climate with winter precipitation, characterized by the presence of large amounts of precipitation and a decrease in temperature due to altitude. Precipitation reaches approximately 160 mm, with an average temperature high of 20°C, and an average low of 11°C. (Fuente; EIA POCH). There are no restrictions to the operating season imposed by the climate.

5.3 Physiography The local topography consists of wide open valleys bordered by, in some cases, steep ridgelines with moderate to rugged hills, some of which are incised with rivers and creeks that may flow intermittently during the year. The hills or ridgelines are locally up to 800 mASL. The valleys are primarily used for agriculture with increasing areas being taken up by large wine grape growing establishments.

5.4 Flora and Fauna In terms of flora, the project area has a diversity upwards of 60 species, with an estimated 85% being native species, and 15% being introduced species. Hence the level of endemism in the study area corresponds to 57%.

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On the other hand, there were six species in conservation classifications at a national level: Porlieria chilensis (vulnerable), Cordia decandra (near threatened), Trichocereus chiloensis (near threatened), Eulychnia acida (least concern), Eryosyce curvispina (least concern) and Carica chilensis (vulnerable). Lastly, the project area is not located near nor is it associated with any of the protected areas and/or priority sites proposed by the Region’s biodiversity conservation (Muñoz et al. 1996), any protected area of the SNASPE (CONAF), priority sites for conservation of biodiversity (MMA, 2010). With regards to fauna, the majority of species are native, with the exception of the quail, the European hare and the rabbit. Nine of the observed species are endemic to Chilean land. It is important to note the presence of seven species classified in a national conservation rank, all of which have been identified in the section of the project’s direct influence. (Glencore 2014, Dalmacia Pre-Feasibility Study).

5.5 Local Resources and Infrastructure Punitaqui is well serviced with access to water, power, local labour, communications and a very pleasant climate. The majority of the workforce live full-time in the in the adjacent areas.

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6 History

6.1 Exploitation The Punitaqui mining district is located approximately 35 km South of Ovalle in Region IV of Chile (Figure 4-1). It has been one of the major gold and mercury producers in Chile. Los Mantos was the largest gold and mercury producer in the country prior to El Indio coming on stream in 1981. Punitaqui was discovered in 1780 and was exploited by and for the Spanish government. Apparently mining was disrupted by long periods of inactivity. Historical records of Punitaquis total production and activity are poor. In general, mining was concentrated at the Los Mantos deposit, by far the largest occurrence of the district. Major periods of activity were 1935 to 1945, especially due to the large demand for mercury during World War II. Large scale mining halted in 1965 when major floods caused caving of the underground workings. Between 1937 and 1970 Los Mantos produced 350,000 oz Au (470,000 oz Au Eqv.) until 1965. In the surrounding area other veins and mines including Los Mantos, Delirio and Milagros mine (until 1998) reportedly produced 650,000 oz Au Eq. In the late sixties, CORFO (Chilean Corporacion de Fomento dela Produccion) started open pit mining. In 1982 it was sold to Cerro Centinela Holding Company where plans were started for the construction of a cyanidation plant, mainly for gold recovery of gold in the tailings. In 1985 the decision was made to reopen on a small scale the Los Mantos mine. About 600 tonnes per month (t/mo) grading 7 to 8 g/t Au were mined by “Pirquineros” (Chilean term to describe persons who work on a leased mine without restrictions) and processed in the Ovalle plant. From 1987 to 1998 a total of 178,290 equivalent ounces of gold were produced. A total of 45,950 were produced by tailings retreatment using cyanidation and 132,340 oz Au Eq were produced by flotation. (Zucconi 1999). The most recent reserve for the property was published by Glencore Plc in its report entitled “Glencore Resources & Reserves Report as at 31 December 2017”, and are shown on Table 6-1.These are no longer considered to be valid or relied upon. Xiana understands that a considerable effort will be required for mine planning and metallurgical analysis to prepare a sound and comprehensive operating plan before any reserves can be declared. The issuer is not treating this historical estimate as a current mineral reserve.

Table 6-1: Historic Reserve Statement by Glencore Plc. (31 December 2017) Proved Ore Probable Ore Total Ore Name of Attributable Mining Commodity Reserves Reserves Reserves Operation Interest Method 17.12.31 16.12.31 17.12.31 16.12.31 17.12.31 16.12.31 Punitaqui 100% UG/OC Ore (Mt) 1.12 0.32 0.89 0.08 2.01 0.40 Copper (%) 1.19 1.63 0.97 1.69 1.10 1.64 Silver (g/t) 3.42 4.40 3.01 4.71 3.24 4.46 Source: Glencore Resources & Reserves Report 2017

MAP has operated the property continuously from October 2010. The production over this period is shown in Table 6-2.

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Table 6-2: Production by Year from MAP Operations Year Tonnes %CuT Ag ppm Au ppm 2010 175,548 1.25 2011 960,497 1.34 10.44 2012 1,075,922 1.43 8.61 2013 1,076,932 1.36 5.07 2014 1,119,529 1.30 3.73 2015 785,528 1.27 5.98 0.00 2016 1,028,709 0.95 3.50 0.45 2017 1,054,880 0.71 2.48 0.75 2018 (Q1) 65,327 0.91 3.63 0.26 Total 7,342,872 1.19 5.46 0.17 Source: MAP

6.2 Exploration

6.2.1 Cinabrio A series of exploration studies were developed at the site, beginning with the United Nations project called "Ovalle South Mining Survey" (1965), following the studies of Eng. Z. Montalbán A (1969), geologist P. Narváez (1971), geologist L. Pérez O. (1972) and geologist Hugo Itucayasi (2003 to 2005). The site has been worked since 1968 in interrupted periods, exploitation of copper oxides was the main activity. In the campaign of 1965, a geophysical study of induced polarization was conducted and subsequently 141 meters of diamond drilling completed in Block 4, as discussed in Section 10.

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Figure 6-1: Map of Surface Geology, Cinabrio Region

Source: MAP

Between the months of July and November 1972, 19 diamond drillholes were completed, totaling 630 meters, as discussed in Section 10. With the accumulated information, the holder of the concession began the construction of the main tunnel (access to level 410): 130 meters in length, with a section of 4.5 m x 4.0 m. In April 2003, through a lease, Mr. Sergio Santana Sandoval began preparation and recognition work. The mining property was acquired by CMC in July 2004, supported by the study of INGEROC, which defined the application of sublevel stoping as a method of exploitation. (Gensat 2006)

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6.2.2 San Andreas Until 1998, the extraction of high grade copper oxides at the surface of San Andres was accomplished by the work of small miners. In 2000 the Chilean national company “La Empressa Nacional de Mineria (ENAMI) carried out two development drives with the objective of extracting copper sulphides. The results were negative. In 2005 via an option process, San Andres became the property of Compania Minera Punitaqui SCM. An IP survey was conducted during 2007 on 250m to 500m spaced lines across the San Andres-Cinabrio project areas. The results of the IP survey line across the southern end of the San Andres mineralization showed a strong chargeability anomaly (Figure 6-2) confirming the potential for the mineralization to extend at depth and to the south.

Figure 6-2: San Andres IP Chargeability Anomaly

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6.2.3 Los Mantos and Milagros Los Mantos mine was discovered in 1780 and was operated in order to exploit mercury ore, then gold, and finally copper until it was closed in 1956. Delirio, located at the southwest end of Los Mantos, exploited mainly copper ore, during the first half of the 20th century. Milagros was discovered and explored in 1993 by drilling activities, focusing on gold and copper mineralization until its temporary closure in 1998, as a result of falling gold prices. Final activities were completed between 2008 and 2014. Tensional veins, preparation and exploitation works, were conducted in July 2004 by Antofagasta Minerals.

6.2.4 Dalmacia

The early history of the Dalmacia project was not documented. In terms of geophysics, during August 2007 Wellfield Services Ltda (a Chilean contractor) was hired by Compañia Minera Punitaqui (Tamaya) to carry out ground magnetics and Induced Polarization over the project area. Figure 6-3 shows the ground magnetics covering the Dalmacia deposit and highlights the potential to expand the existing resource with further drilling.

Figure 6-3: Dalmacia Ground Magnetics

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7 Geological Setting and Mineralization

The regional geology consists of a sequence of volcanic rocks (lavas, conglomerates and andesitic breccias) with marine sediment collations (shales, fossiliferous limestones and thin layers of sandstones). This sequence was previously assigned the name “Estratos El Reloj” or the Clock Strata locally and renamed the Agua Salada Complex of Jurassic to lower Cretaceous age. This sequence is affected by a granitic intrusive (Diorites, Granodiorites) of Upper Cretaceous age. The structural traits affecting the district are represented by stress and compression forces, this is reflected in a north-south, northwest, and east- west orientation tectonics. The structural fabric of regional and district character control the location of copper mineralization. The significant projects located within the concessions being purchased by Xiana include the Cinabrio, San Andres, Dalmacia and Milagros Los Mantos projects. The Esperanza project has no significant work conducted.

7.1 Cinabrio Cinabrio is an Iron Oxide Copper Gold (IOCG) type manto deposit. Mineralisation has a strike length of approximately 750m and the mineralisation is between 10 and 30 metres thick and is very continuous up to a depth of around 700 metres. The mineralisation of predominantly chalcoyprite and minor bornite and pyrite dips steeply to the east and occasionally faulted. Immediately to the south west is the San Andres property which is the faulted offset of the top of the Cinabrio orebody. San Andres is approximately 10 to 15 metres in thickness and additional exploration is required to define its depth limits.

7.2 Dalmacia Based on existing information Dalmacia is located within a roof pendant of volcanic rocks with minor calcareous intercalations of the Agua Salada Complex. This volcano sedimentary complex is intruded by granites of the Illapel Batholith (105-130 Ma) located in a reverse fault. The mineralisation in this sector is hosted in andesites, andesitic porphyry dykes with both black and white phenocysts. The known strike length of the mineralised zone is at least 1500 metres and up to 300 metres wide with depths greater than 500 metres. At Dalmacia primary mineralisation consists of chalcopyrite and bornite with pyrite. Secondary mineralisation includes chalcocite and bornite. Oxide mineralisation includes chrysocolla, atacamite, neotocite and cuprite.

7.3 Milagros and Los Mantos The geology at Milagros and Los Mantos here contains thin layers of limestone, which appear to be lenticular. Where exposed the limestone layers are mostly about 2 meters thick, but in a few places they bulge out to a much greater thickness. They strike nearly north, and their dips range from 45° W. in the central part of the area, south of the Los Mantos mine, to approximately 90° in the northern part. The limestone has been metamorphosed in widely varying degree, some of it being only a little bleached, whereas some has been altered to a massive garnet rock. Lamprophyre dikes, only 1 or 2 meters thick, are continuous within the Los Mantos vein underground as well as in the granodiorite at the surface. Those seen underground all dip steeply west, but in the granodiorite at the surface some are flat lying and others

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT are vertical. The principal intrusive rock is a typical biotite-hornblende granodiorite containing many dark inclusions. It contains a moderate quantity of quartz, rather abundant hornblende and biotite the latter partly altered to chlorite and epidote along cleavages and accessory sphene, magnetite, and apatite. The outstanding structural feature of the district is a zone of faulting and minor shearing that was traced intermittently from the northern to the southern end of the área (1km distance and up to 50m wide and 450m depth) It is marked by pockets and streaks of a peculiar, fine-grained fault breccia, consisting of ground-up fragments of volcanic and sedimentary rocks, granodiorite, and of vein material. The mineralisation can be considered as a vein shear system with copper as chalcopyrite and chalcocite, gold, silver and mercury as cinnabar and mercurian tetrahedrite. (McAllister,J.F et al. 1949).

7.4 Summary In general mineralization occurs as impregnations and/or disseminations in all strata, affected by pre- existing fractures and minor faults. The economic mineralization is controlled by feeders and includes chalcopyrite, bornite and the gangue includes pyrite, calcite and quartz. In the oxide and transition zones (nominally 40 to 60 metres depth but quite variable) malachite, azurite and chrysocolla and native copper are common. It is emphasized that the dominant mineralogy in the enrichment zones consists mainly of chalcocite, bornite and chalcopyrite. In greater depth, mineralization is estimated to contain primary sulphides (pyrite, chalcopyrite and bornite).

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8 Deposit Types

Mineralization throughout the Punitaqui-Ovalle district is related to hydrothermal activity and are considered broadly as epigenetic Cu+/- Au-Ag-Hg deposits and have been referred to as stratiform and mesothermal. The economic mineralization is controlled by channels of mineralization (feeders) into dilational structures and shear zones and is constituted by pyrite, chalcopyrite and bornite. In many deposits in the district copper and gold mineralization occur with magnetite and hematite which like other deposits in the region confirm them to be related to the Iron Oxide Copper Gold (IOCG) family of deposits.

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9 Exploration

9.1 Cinabrio Compañía Minera Punitaqui S.C.M. (CMP), has been exploring, developing and preparing the Cinabrio mine which is still currently in production. Since 2015, MAP has completed exploration and resource drilling programs in the Cinabrio, San Andres, Los Mantos and Dalmacia areas with the main focus on extending the resource at Cinabrio and proving up the Dalmacia South (Nuevo Galicia) deposit in preparation for mining. Exploration drilling is discussed in this chapter, and resource drilling is discussed in Chapter 10.

9.2 San Andres Since acquiring the project, MAP have completed a number of drilling and trenching programs as summarized in Table 9-1.

Table 9-1: San Andres Drilling Summary

The most recent drilling program consisted of 8 diamond drill holes drilled in 2017 for a total of 1,665metres. These holes were targeted to extend the previously defined mineralization at depth. Four of the drill holes (Figure 9-1) intersected the mineralized zone with the >1% CuT intersections shown in Table 9-2.

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Figure 9-1: San Andres Drilling Locations

Table 9-2: San Andres 2017 Drill Intersections

The mineralization at San Andres is completely open to the south and Xiana intend to test this potential as well as infilling the existing drilling with a planned drill program as discussed in section 26.2.2.

9.3 Los Mantos and Milagros Milagros and Los Mantos mine, which are held or leased by Compania Minera Punitaqui are currently in rehabilitation and preparation process though conventional underground mining, with ramps of 3 m x 3 m aiming to exploit narrow vein and mineralized structures.

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The mining plan and geological information is based on old drillholes and channel samples, while resources were estimated by manual methods. Old non digital information was reviewed during 2010. Due diligence was performed by Glencore and MAP staff (Source: MAP internal presentation Feb 2016 – Milagros Geology). Recent exploration drilling has been carried out at Los Mantos with 24 diamond drill holes (DDH) drilled in 2016 for 4,622m and 10 DDH holes drilled in 2017 for 857m. The majority of the drill holes were targeted at testing the mineralized fault zone at depth below the old workings (Figure 9-2 and Figure 9-3).

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Figure 9-2: Los Mantos Cross Section 6583850N

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Figure 9-3: Los Mantos 3D View

Table 9-3 lists the intercepts greater than 1m at 1g/t Au.

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Table 9-3: Los Mantos Drilling Intersections

9.4 Dalmacia

Drilling in Dalmacia has occurred in two programs. The first program was conducted prior to 2014 and was concentrated mainly in the northern part of the deposit. The second drilling campaign in 2017 was

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT targeted at infilling the existing resource and concentrated mainly in the southern part of deposit referred to by MAP as Nova Galicia in preparation for open pit mining which commenced at the beginning of 2018. The entire Dalmacia exploration drilling has been completed at a grid spacing of 25m x 25m in the north and 15m x 15m in the south. In total, 218 drill holes (99 RC holes and 119 DDH holes) have been drilled for a total of 51,810 meters drilled with 35,201 samples analysed. Figure 10-5 shows the collar locations and a more detailed breakdown of the Dalmacia drilling is shown in Table 10-2.

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10 Drilling

10.1 Cinabrio Drilling on the Cinabrio deposit has been undertaken by Compañía Minera Punitaqui (CMP) and then by Minera Altos De Punitaqui (MAP) after they acquired the Project in 2011. Total drilling consists of 255 diamond drillholes, 173 reverse circulation (RC) holes and seven blast holes (BH) for a total of 467 holes with a combined meterage of 73,893 m and a total of 19,059 samples taken and analysed. In addition, 10,966 underground channel samples have been taken during mining.

10.1.1 Diamond Drilling Total diamond drilling on the Cinabrio deposit to-date is shown in Table 10-1.

Table 10-1: Cinabrio Drilling Summary Company Hole Type Years Amount BHID Depth 2011 70 11,406 2012 54 4,842 2013 46 9,868 2014 60 7,581 MAP DDH 2015 8 1,986 2016 3 964 2017 8 1,796 2018 6 894 Total DDH 255 39,338 BLAST HOLES 2006 7 450 Total DTH 7 450 DDH 2007 3 242 2008 29 5,851 Total DDH 32 6,093 CMP 2004 7 409 2005 34 5,373 RC 2006 58 11,410 2007 12 917 2008 62 9,903 Total RC 173 28,012 Total General 467 73,893 Source: MAP

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Diamond drilling at Cinabrio has been carried out on a nominal 25 m x 25 m grid spacing (Figure 10-1). The main direction of drilling has been designed to intersect the mineralized zone perpendicularly with an azimuth of 240°.

Figure 10-1: Cinabrio Drillhole Collar Locations

Source: GeoWiz

Diamond drillhole (DDH) planning is carried out by the MAP geologists using Datamine, which is the main mining software package used on site. Once a drillhole has been completed, the collar co-ordinates are picked up by the MAP surveyor in PSAD Zone 19S projection, and the collar location is updated in the master spreadsheet database. The surveyor provides a certificate (Figure 10-2) which includes the collar co-ordinates and the azimuth of the collar.

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Figure 10-2: Drillhole Collar Survey Certificate

Source: MAP

The downhole surveys are taken by an independent contractor using a north seeking gyro with measurements taken every 3 to 5 m down the hole. A detailed report (Figure 10-3) is generated by the contractor and the actual survey data is supplied in a digital format that can be imported directly into the spreadsheet database.

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Figure 10-3: Downhole Survey Report

Source: MAP

Once the collar and downhole surveys have been loaded, the actual drillhole trace is compared with the planned hole trace in Datamine. Diamond drilling was generally completed using NQ drill core. The drill core was transported to the main core shed located at Los Mantos where it was logged, and the mineralized intervals were identified and marked up to be cut based on observed mineralogy and alteration. A Swiner electric diamond saw is used to cut the core lengthwise, which is then placed correctly back into the tray. The half-core is then sampled by geological assistants, ensuring that the same side is consistently sampled, and placed into bags with an assigned sample number, then closed and sealed with staples. The

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT samples are then securely transported by truck to the on-site laboratory. Drill core intervals that are not assayed remain in storage at the mine site.

10.1.2 Channel Sampling The underground channel samples are taken perpendicular to the mineralization. A sample reference point is marked on the wall of the development to determine the location of each sample which will be picked up by the MAP surveyor after the channel sample has been taken. The maximum length of each channel sample does not exceed 2 meters, and the start and end of each sample must end precisely at a lithological contact. The approximate weight of each sample will be 3 to 5 kg. Each sample that is taken is given a ticket with a barcode indicating the items to be analyzed. The bags are closed with a plastic seal to that there is no loss of the sample during transport. The sample data are recorded in a checkbook as: level, labor, reference point, channel length and width, elements to be analyzed, sample code, and a geological description of the mineralization (Figure 10-4).

Figure 10-4: Channel Sample Checkbook Record

Source: MAP

10.2 Dalmacia Table 10-2 summarizes the drilling history at the Dalmacia deposit which has been drilled on 25 m spaced cross sections through the main Dalmacia North area, and 15 m sections in the southern area sometimes referred to as Arco Iris or Nova Galicia.

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Total drilling consists of 127 diamond drillholes and 98 reverse circulation (RC) holes for a total of 225 holes with a combined meterage of 52,720 m with over 35,000 samples taken and analyzed, as summarized in Table 10-2.

Table 10-2: Dalmacia Drillhole Database Summary by Year Company Hole Type Years Amount BHID Depth 2011 15 4,397 2012 25 10,751 2013 14 5,620 MAP DDH 2014 20 3,957 2016 5 553 2017 41 5,042 2018 7 910 Total DDH 127 31,230 RC 2007 25 5,035 CMP 2008 24 6,438 Total RC 49 11,473 1993 25 4,848 RC SMP 1994 24 5,169 Total RC 49 10,017 Total General 225 52,720 Source: MAP

Diamond drilling at Dalmacia has been carried out on a nominal 25 m x 25 m grid spacing although this has been closed up to 12.5 m x 12.5 m in the central part of Dalmacia North. The main direction of drilling has been designed to intersect the mineralized zone perpendicularly with an azimuth of 060°. Figure 10-5 shows the drillhole collar locations and the drillhole traces.

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Figure 10-5: Dalmacia Drillhole Locations

Source: GeoWiz

During the MAP drilling campaigns between 2011 and 2014, 11 diamond drillholes (1,192 m) were drilled for geotechnical slope stability studies and five holes were drilled (664 m) for hydrogeological studies.

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11 Sample Preparation, Analyses and Security

MAP have two separate diamond drill core storage facilities located at the Los Mantos plant site and at the Cinabrio mine. The core logging area consists of solid structure metal tables that allow for continuous loading and unloading of core trays for sampling and logging as shown in Figure 11-1.

Figure 11-1: Photo of MAP Core Logging Facility

The core cutting room consists of a Swiner rotary cutter that eliminates any potential contact with the cutting blades. After the core has been logged and cut, the half core samples are placed in plastic bags along with an identification tag with the assigned sample number which are then sent to the MAP laboratory at the Los Mantos plant site. The samples are accompanied by a report indicating the number of samples, method of analysis, date of sampling, the priority and the responsible geologist. The laboratory personnel must verify that the samples being delivered coincide in all aspects with the delivery report before the following procedure is followed:

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 The samples are transferred to stainless steel trays and dried in an oven at 105ºC +/- 5ºC. The drying time will depend on the moisture content of the sample. They are then removed from the oven and allowed to cool.  The entire sample is then passed through the primary jaw crusher which will reduce the size to 80% less than ¼ inch. The equipment is cleaned with compressed air after each sample is processed.  Next, the entire sample is passed through the Rhino secondary crusher. In this operation the sample will be reduced in size to 80% under 10 Tyler mesh (1.7 mm.). The equipment must be cleaned with compressed air for each processed sample.  The sample is then reduced in a riffle splitter to about 300grams. The rejected material is stored in a plastic bag with it’s sample number clearly identified for long term storage.  The 300gm sample is pulverised and then packaged in a paper envelope and sent for chemical analysis where it is analysed using Atomic absorption spectroscopy (AAS) method. For the samples sent to the external independent laboratory ALS Chemex in La Serena, the sample preparation and analytical methods shown in Table 11-1 are used.

Table 11-1: Sample Preparation and Analytical Procedures used by ALS Chemex

11.1 Quality Assurance and Quality Control Programs Quality Assurance (QA) consists of evidence to demonstrate that the assay data has precision and accuracy within generally acceptable limits for the sampling and analytical methods used in order to have confidence in the resource estimate. Quality Control (QC) consists of procedures used to ensure that an adequate level of quality is maintained in the process of collecting, preparing and assaying the channel and

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT drill samples. In general, QA/QC programs are designed to prevent or detect contamination, and allow assaying (analytical), precision (repeatability) and accuracy to be quantified. A detailed QA/QC study was undertaken by MAP in December 2015 to evaluate the quality control procedures carried out at the Cinabrio Mine using channel and drillhole data assay results from 2011 to 2015. The details of the report are summarized in the following section. The study also compared the results from the primary laboratory (MAP laboratory) and the external laboratory (ALS Chemex). The study only looked at samples generated by MAP since they acquired the project in 2011 which amounted to 17,124 samples out of a total of 30,594; only 13,470 samples were generated by the Punitaqui Mining Company prior to 2011. A breakdown of the samples evaluated in the study is shown in Table 11-2.

Table 11-2: Summary of Sampling by Minera Altos de Punitaqui Type of Samples MAP ALS Chemex Total % Total Samples Originals 6,697 2,503 9,200 Coarse Duplicates 683 247 930 10% Drilling 11,766 Blanks 352 170 522 6% Pulp Duplicates 1,114 1,114 12% Originals 4,154 253 4,407 Coarse Duplicates 360 18 378 9% Channels 5,358 Pulp Duplicates 284 - 284 6% Blanks 275 14 289 7% Standards 24 7 31 1% Total Samples 17,124 Source: MAP

11.1.1 MAP Laboratory The MAP laboratory is an on-site laboratory run by MAP personnel and is not certified or accredited. However, a visit to the laboratory showed it to be clean, well equipped and everything appeared to be working properly. A detailed set of laboratory procedure documents were also reviewed. The QA/QC undertaken at the MAP consisted of using both pulp and coarse reject duplicates, blanks and standard samples as summarized in Table 11-3.

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Table 11-3: MAP Laboratory Samples Summary Type of Samples MAP % Total Samples Originals 6,697 Drilling Coarse Duplicates 683 10% 8,846 Blanks 352 5% Originals 4,154 Coarse Duplicates 360 9% 73 Channels 5,073 Pulp Duplicates 284 7% Blanks 275 7% Standard Samples 24 1% 24 Total Samples 13,943 Source: MAP

11.1.2 Channel Samples A total of 919 QA/QC channel samples were analyzed, of which 360 were coarse reject duplicates, 284 were pulp duplicates and 275 were blanks.

11.1.2.1 Coarse Reject Duplicates Duplicates help to assess the natural local grade variance as well as detecting any laboratory error. The coarse reject duplicates typically have a lower precision than the pulp duplicates, as the pulps have the finest grain size and are the most homogenized. A summary of the statistics for the coarse reject duplicates is shown in Table 11-4.

Table 11-4: Summary of Coarse Reject Duplicate Data for Channel Samples Summary of Data Original Duplicate Difference Statistics CuT Ag CuT Ag CuT Ag Number of Samples 360 360 360 360 360 360 Minimum 0.00 0.50 0.00 0.50 -2.53 -18.73 Maximum 12.52 85.63 5.21 90.25 11.46 58.98 Average 1.02 6.51 0.96 6.02 0.06 0.49 Standard Deviation 1.27 11.50 1.08 10.22 0.82 5.31 Student T Test 1.30 1.74 Average Difference (%) 5.54% 7.48% Source: MAP

The percentage difference between the average of the original samples and duplicate samples is less than 6% for the Cu and less than 8% for the Ag which is acceptable.

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11.1.2.2 Pulp Duplicates A total of 284 channel sample pulp duplicates were analyzed and a summary of the comparison results are shown in Table 11-5.

Table 11-5: Summary of Fine Duplicate Data for Channel Samples Summary of Data Original Duplicate Difference Statistics CuT Ag CuT Ag CuT Ag Number of Samples 284 284 284 284 284 284 Minimum 0.00 0.50 0.00 0.50 -0.16 -19.60 Maximum 5.47 59.70 5.28 61.60 0.54 5.50 Average 0.60 4.11 0.59 4.09 0.00 0.02 Standard Deviation 1.11 9.25 1.10 10.02 0.05 1.78 Student T Test 1.57 0.22 Average Difference (%) 0.81% 0.57% Source: MAP

The average percentage for both CuT and Ag is less than 1% which is acceptable. A scatter plot of the original and pulp duplicate sample results for CuT and Ag are shown in Figure 11-2 and Figure 11-3.

Figure 11-2: Scatterplot of CuT% for Channel Sample Pulp Duplicates

CHANNEL SAMPLE DUPLICATES - CuT% DISPERSION GRAPH 6.00 y = 0.9833x + 0.0052 5.00 R² = 0.998 4.00

3.00

2.00 DUPLICATE

1.00

0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 ORIGINAL

Source: MAP

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Figure 11-3: Scatterplot of Ag (ppm) for Channel Sample Pulp Duplicates

CHANNEL SAMPLE DUPLICATES - Ag (ppm) DISPERSION GRAPH 70.00 y = 1.0677x - 0.3017 60.00 R² = 0.9725 50.00 40.00 30.00

DUPLICATE 20.00 10.00 0.00 0.00 20.00 40.00 60.00 ORIGINAL

Source: MAP

A Q-Q plot of the original and pulp duplicate sample results for CuT and Ag are shown in Figure 11-4 and Figure 11-5.

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Figure 11-4: Q-Q Plot of CuT% for Channel Sample Pulp Duplicates CHANNEL SAMPLE DUPLICATES - CuT% GRAPH QUANTILE-QUANTILE (Dispersion) 6.00 5.00 y = 0.9838x + 0.0048 R² = 0.9991 4.00 3.00 2.00 DUPLICATE 1.00 0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 ORIGINAL

Source: MAP

Figure 11-5: Q-Q Plot of Ag (ppm) for Channel Sample Pulp Duplicates CHANNEL SAMPLE DUPLICATES - Ag (ppm) GRAPH QUANTILE-QUANTILE (Dispersion) 70.00 60.00 y = 1.0754x - 0.3333 R² = 0.9865 50.00 40.00 30.00

DUPLICATE 20.00 10.00 0.00 0.00 20.00 40.00 60.00 ORIGINAL

Source: MAP

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A graph showing the relative difference plotted against the average grades are shown in Figure 11-6 and Figure 11-7.

Figure 11-6: Graph Relative Difference vs. CuT% Grade Averages Channel Sample Duplicates - Cut% Relative Difference 150

100

50

0 0.00 1.00 2.00 3.00 4.00 5.00 -50 Relative Difference % Difference Relative -100

-150 Cut Average Averages Error Limit +/-10% CuT Grade 0.1%

Source: MAP

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Figure 11-7: Graph Relative Difference vs. Ag (ppm) Grade Averages Channel Sample Duplicates - Ag (ppm) Relative Difference 150

100

50

0 0.00 10.00 20.00 30.00 40.00 50.00 60.00 -50

-100 RELATIVE DIFFERENCE % DIFFERENCE RELATIVE

-150 Ag AVERAGE Promedios Limite de error +/-10% Ley de Interes

Source: MAP

11.1.2.3 Blanks The regular submission of blanks is used to assess potential contamination during sample preparation. Blanks have been used since MAP acquired the Project in 2011. The material used as blanks was sourced from rocks in the region which correspond to known low-grade material. The acceptable tolerance has been set as the standard deviation plus twice the average of the entire population. Table 11-6 summarizes the results of the blank samples.

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Table 11-6: Summary of Blank Samples Inserted with Channel Samples Summary CuT Ag # SAMPLES 34 34 Contaminated 2 0 2011 % Contamination 6 0 # Imprecise 0 0 % Imprecise 0 - # SAMPLES 80 80 Contaminated 5 4 2012 % Contamination 6 5 # imprecise 0 0 % imprecise 0 0 # SAMPLES 69 69 Contaminated 4 0 2013 % Contamination 6 0 # Imprecise 0 0 % Imprecise 0 - # SAMPLES 76 76 Contaminated 4 0 2014 % Contamination 5 0 # imprecise 0 0 % imprecise 0 - # SAMPLES 16 16 Contaminated 2 0 2015 % Contamination 13 0 # Imprecise 0 0 % Imprecise 0 - # SAMPLES 275 275 Contaminated 17 4 Total % Contamination 6 1 # Imprecise 0 0 % Imprecise 0 0 Source: MAP

In general, the contamination was below 10% which is considered acceptable. A representation of the blank sample results plotted against the previous sample prepared is shown in Figure 11-8 and Figure 11-9.

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Figure 11-8: CuT% Blank Sample vs. Previous Sample Blanks CuT % - Channels 0.30

0.25

0.20

0.15

0.10 u Blanks % CuT- 0.05

0.00 0.00 1.00 2.00 3.00 4.00 Muestra Previa Blancos LIMITE DE DETECCION Blk Base Tolerancia

Source: MAP

Figure 11-9: Ag (ppm) Blank Sample vs Previous Sample Blanks Ag ppm - Channels 7.00 6.00 5.00 4.00 3.00 2.00 gpm-Blanks ppm Ag - 1.00 0.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 Muestra Previa Blancos LIMITE DE DETECCION Blk Base Tolerancia

Source: MAP

The majority of the samples analyzed are below the acceptable tolerance level.

11.1.2.4 Drilling A total of 1,035 QA/QC samples were analyzed for drillhole samples in the MAP laboratory, of which 683 were coarse duplicates and 352 blanks.

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11.1.2.5 Coarse Duplicates Duplicates help to assess the natural local grad variance as well as detecting any laboratory error. The coarse reject duplicates typically have a lower precision than the pulp duplicates as the pulps have the finest grain size and are the most homogenized. A summary of the statistics for the coarse reject duplicates is shown in Table 11-7.

Table 11-7: Summary of Coarse Duplicate Data for Drilling Summary of Data Original Duplicate Difference Statistics CuT Ag CuT Ag CuT Ag Number of Samples 683 683 683 683 683 683 Minimum 0.00 0.50 0.00 0.50 -0.94 -29.85 Maximum 12.58 87.70 11.67 88.20 2.21 15.05 Average 0.82 4.97 0.81 5.01 0.01 -0.04 Standard Deviation 1.13 7.23 1.11 7.44 0.22 1.78 Student T Test 1.14 -0.62 Average Difference (%) 1.19 -0.85 Source: MAP

The percentage difference between the average of the original samples and duplicate samples is less than 2% for the CuT and less than 1% for the Ag which is acceptable. The dispersion graphs, Quantile-Quantile and Relative Difference versus Average of Grades are shown in Figure 11-10, Figure 11-11, Figure 11-12, Figure 11-13, Figure 11-14 and Figure 11-15.

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Figure 11-10: Scatterplot of CuT% for Drilling Sample Coarse Duplicates

DRILL SAMPLE DUPLICATES - CuT DISPERSION GRAPH 7.00

6.00 y = 0.9659x + 0.0183 R² = 0.9605 5.00

4.00

3.00

DUPLICATE 2.00

1.00

0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 ORIGINAL

Source: MAP

Figure 11-11: Scatterplot of Ag (ppm) for Channel Sample Pulp Duplicates

DRILL SAMPLE DUPLICATES - Ag GRAPH DISPERSION 100.00

80.00 y = 0.9995x + 0.0449 R² = 0.9431

60.00

40.00 DUPLICADO 20.00

0.00 0.00 20.00 40.00 60.00 80.00 100.00 ORIGINAL

Source: MAP

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Figure 11-12: Q-Q Plot of CuT% for Drilling Sample Coarse Duplicates

DRILL SAMPLE DUPLICATES- CuT GRAPH QUANTILE-QUANTILE (Dispersion) 7.00 6.00 y = 0.9846x + 0.0029 R² = 0.998 5.00 4.00 3.00

DUPLICATE 2.00 1.00 0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 ORIGINAL

Source: MAP

Figure 11-13: Q-Q Plot of Ag (ppm) for Drilling Sample Coarse Duplicates

DRILL SAMPLE DUPLICATES - Ag GRAPH QUANTILE-QUANTILE (Dispersion)

80.00 y = 1.0264x - 0.0891 R² = 0.9946

60.00

40.00 DUPLICATE 20.00

0.00 0.00 20.00 40.00 60.00 80.00 ORIGINAL

Source: MAP

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Figure 11-14: Relative Difference Graph of Average CuT% for Drilling Sample Coarse Duplicates

DRILLHOLE SAMPLE DUPLICATES- CuT GRAPH REL. DIF. 200 150 100 50 0 0.00 5.00 10.00 -50 -100 -150 RELATIVE DIFFERENCE % DIFFERENCE RELATIVE -200 CuT AVERAGE Promedios Limite de error +/- 30 Ley de Interes

Source: MAP

Figure 11-15: Relative Difference Graph of Average Ag (ppm) for Drilling Sample Coarse Duplicates

DRILLHOLE SAMPLE DUPLICATES- Ag GRAPH REL. DIF. 150

100

50

0 0.00 20.00 40.00 60.00 80.00 -50

-100 RELATIVE DIFFERENCE% RELATIVE -150 Ag AVERAGE Promedios Limite de error +/- 30 Ley de Interes

Source: MAP

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11.1.2.6 Blanks The regular submission of blanks is used to assess potential contamination during sample preparation. The material used as blanks were sourced from rocks in the region which correspond to known low-grade material. The acceptable tolerance has been set as the standard deviation plus twice the average of the entire population. Table 11-8 summarizes the results of the blank samples inserted with drillhole samples.

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Table 11-8: Summary of Blank Sample Results Inserted with Drillhole Samples Summary CuT Ag # SAMPLES 117 117 Contaminated 6 1 2011 % Contamination 5 1 # Imprecise 0 0 % Imprecise 0 0 # SAMPLES 86 86 Contaminated 9 16 2012 % Contamination 10 19 # Imprecise 0 0 % Imprecise 0 0 # SAMPLES 107 107 Contaminated 0 0 2013 % Contamination 0 0 # Imprecise 0 0 % Imprecise - - # SAMPLES 22 22 Contaminated 1 0 2014 % Contamination 5 0 # Imprecise 0 0 % Imprecise 0 - # SAMPLES 20 20 Contaminated 4 0 2015 % Contamination 20 0 # Imprecise 0 0 % Imprecise 0 - # SAMPLES 352 352 Contaminated 20 17 Total % Contamination 6 5 # Imprecise 0 0 % Imprecise 0 0 Source: MAP

In general, the contamination was below 10%. A representation of the blank sample results plotted against the previous sample prepared is shown in Figure 11-16 and Figure 11-17.

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Figure 11-16: Graph of Blank Sample Cu% vs. Previous Sample CuT%

Blanks CuT % - DDH 0.30 0.25 0.20 0.15 0.10 0.05 u Blanks % CuT- 0.00 0.00 2.00 4.00 6.00 Muestra Previa Blancos LIMITE DE DETECCION

Blk Base Tolerancia

Source: MAP

Figure 11-17: Graph of Blank Sample Ag (ppm) vs. Previous Sample Ag (ppm)

Blanks Ag (ppm) - DDH 12.00 10.00 8.00 6.00 4.00 2.00 gpm-Blanks ppm Ag - 0.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 Muestra Previa

Blancos LIMITE DE DETECCION Blk Base Tolerancia

Source: MAP

11.1.2.7 Reference Material Analysis – Standard Samples Three types of standard samples were used consisting of low, medium and high grade samples which are summarised in Table 11-9.

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Table 11-9: List of Standard Samples Analyzed by the MAP Laboratory Summary of the Data Certified Grade Standard CuT (%) Ag (ppm) As (ppm) Ni (ppm) Zn (ppm) Pb (ppm) Co (ppm) GBM311-10 1.7334 3.8 40 31 841 505 65 GBM910-6 0.5335 7.1 80 117 1249 592 86 GBM910-7 1.0084 3.6 117 44 907 173 131 Source: MAP

The results of the analysis of the standards are shown in Figure 11-18.

Figure 11-18: Standards CuT% Analysis vs. Reference Value

ANALYSIS OF STANDARDS 1.80 1.60 y = 1.0145x R² = 0.9928 1.40 1.20 1.00 0.80

MAP AnalysisMAP 0.60 0.40 0.20 0.00 0.00 0.50 1.00 1.50 STANDARD

Source: MAP

To check the accuracy of the MAP laboratory, control charts were generated showing the confidence limits of 95% and 99% where:  Upper Limit 99% = average grade + 3 standard deviations  Upper Limit 95% = average grade + 1.96 standard deviations  Lower Limit 95% = average grade - 1.96 standard deviations  Lower Limit 99% = average grade - 3 standard deviations

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Figure 11-19: Control Chart for Standard Sample GMB910-7 Analyzed by MAP Quality Control - STANDARD GMB910-7 0.65

0.60

0.55

0.50

CuT Grade (%) Grade CuT 0.45

0.40 1 2 3 4 5 6 7 8 9 1011121314 Batch Number Estandar Lím Sup (3s) Lím Sup (2s) Lím Inf (2s) Lím Inf (3s) Análisis MAP (%)

Source: MAP

Figure 11-20: Control Chart for Standard Sample GMB910-6 Analyzed by MAP Quality Control - Standard GMB910-6 1.15 1.10 1.05 1.00 0.95

CuT CuT Grade (%) 0.90 0.85 1234567 Batch Number

Estandar Lím Sup (3s) Lím Sup (2s) Lím Inf (2s) Lím Inf (3s) Análisis MAP (%)

Source: MAP

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Figure 11-21: Control Chart for Standard Sample GMB311-10 Analyzed by MAP Quality Control - Standard GMB311-10 2.05 1.95 1.85 1.75 1.65

CuT CuT Grade (%) 1.55 1.45 1 2 3 Batch Number

Estandar Lím Sup (3s) Lím Sup (2s) Lím Inf (2s) Lím Inf (3s) Análisis MAP (%)

Source: MAP

The standard sample analyzes in the MAP laboratory were all were within the 95% confidence interval.

11.1.3 ALS Chemex Laboratory All ALS laboratories use the Quality Management System (QMS) framework which is Certified to ISO 9001:2015 and Accredited to ISO 17025:2005 UKAS ref 4028. The same QA/QC procedures applied in the MAP laboratory were replicated for the samples sent to the external independent laboratory, ALS Chemex in La Serena. A combination of coarse reject duplicates, blanks and standards were used and are summarised in Table 11-10.

Table 11-10: Summary of Samples Sent to ALS Chemex Laboratory Type of Samples ALS Chemex % Total Samples Originals 2,503 Drilling Coarse Duplicates 247 10% 2,920 Blanks 170 7% Originals 253 Channels Coarse Duplicates 18 7% 285 Blanks 14 6% Standard Samples 7 1% 7 Total Number of Samples 3,212 3,212 Source: MAP

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As the majority of channel samples are analysed at the MAP laboratory, only the results for the drillhole samples were included in the study.

11.1.3.1 Drilling A total of 417 drillhole samples were evaluated, of which 247 were coarse duplicates and 170 were blanks.

11.1.3.2 Coarse Duplicates

Table 11-11: Summary of Drillhole Coarse Duplicates Sent to ALS Chemex Summary of Data Original Duplicate Difference Statistics CuT Ag CuT Ag CuT Ag Number of Samples 247 247 247 247 247 247 Minimum 0.00 0.50 0.00 0.50 -2.53 -74.90 Maximum 7.89 34.70 8.23 100.00 2.31 11.40 Average 0.85 3.38 0.84 3.67 0.01 -0.29 Standard Deviation 1.22 6.00 1.20 8.37 0.29 4.94 Student T Test 0.45 -0.92 Average Difference (%) 0.97 -8.56 Source: MAP

The percentage difference between the average of the original samples and duplicate samples is less than 1% for the CuT and less than 9% for the Ag which is acceptable. The Dispersion Graphs, Quantile-Quantile and Relative Difference versus Average of Grades are shown in the following figures.

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Figure 11-22: Scatterplot of CuT% for Drillhole Coarse Duplicates Sent to ALS Chemex

DRILLHOLE DUPLICATE SAMPLES- CuT DISPERSION GRAPH 9.00 y = 0.9534x + 0.0313 7.50 R² = 0.9441 6.00

4.50

DUPLICADO 3.00

1.50

0.00 0.00 1.50 3.00 4.50 6.00 7.50 9.00 ORIGINAL

Source: MAP

Figure 11-23: Scatterplot of Ag (ppm) for Drillhole Coarse Duplicates Sent to ALS Chemex

DRILLHOLE DUPLICATE SAMPLES - Ag DISPERSION GRAPH 40.00 y = 1.1335x - 0.1618 R² = 0.6604 30.00

20.00 DUPLICATE 10.00

0.00 0.00 10.00 20.00 30.00 40.00 ORIGINAL

Source: MAP

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Figure 11-24: Q-Q Plot of CuT% for Drillhole Coarse Duplicates Sent to ALS Chemex

DRILLHOLE DUPLICATE SAMPLES- CuT GRAPH QUANTILE-QUANTILE (Dispersion) 9.00 y = 0.9791x + 0.0095 7.50 R² = 0.9958 6.00

4.50

DUPLICATE 3.00

1.50

0.00 0.00 1.50 3.00 4.50 6.00 7.50 9.00 ORIGINAL

Source: MAP

Figure 11-25: Q-Q Plot of Ag (ppm) for Drillhole Coarse Duplicates Sent to ALS Chemex

DRILLHOLE DUPLICATE SAMPLES - Ag GRAPH QUANTILE-QUANTILE (Dispersion) 40.00 y = 1.23x - 0.488 R² = 0.7777 30.00

20.00 DUPLICATE 10.00

0.00 0.00 10.00 20.00 30.00 40.00 ORIGINAL

Source: MAP

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Figure 11-26: Ave CuT% Relative Difference of Drillhole Coarse Duplicates Sent to ALS Chemex

DRILLHOLE SAMPLE DUPLICATES - CuT GRAPH REL. DIF. 200 150 100 50 0 0.00 2.00 4.00 6.00 8.00 -50 -100 -150 RELATIVE DIFFERENCE % DIFFERENCE RELATIVE -200 CuT AVERAGE Promedio Limite de error +/- 30 Ley de interes

Source: MAP

Figure 11-27: Ave Ag (ppm) Relative Difference of Drillhole Coarse Duplicates Sent to ALS Chemex

DRILLHOLE SAMPLE DUPLICATES- Ag GRAPH REL. DIF. 200 150 100 50 0 0.00 20.00 40.00 60.00 -50 -100 -150 RELATIVE DIFFERENCE % DIFFERENCE RELATIVE -200 Ag AVERAGE Promedio Limite de error +/- 30 Ley de interes

Source: MAP

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11.1.3.3 Blanks Table 11-12 summarises the results of the blank samples sent to ALS Chemex.

Table 11-12: Summary of Blank Sample Results Sent to ALS Chemex Summary CuT Ag # SAMPLES 46 46 Contaminated 3 2 2011 % Contamination 7 4 # Imprecise 0 0 % Imprecise 0 0 # SAMPLES 8 8 Contaminated 0 2 2012 % Contamination 0 25 # Imprecise 0 0 % Imprecise - 0 # SAMPLES 10 10 Contamination 0 1 2013 % Contaminated 0 10 # Imprecise 0 0 % Imprecise - 0 # SAMPLES 106 106 Contaminated 6 6 2014 % Contamination 6 6 # Imprecise 0 0 % Imprecise 0 0 # SAMPLES 170 170 Contaminated 9 11 Total % Contamination 5 6 #impreciso 0 0 %impreciso 0 0 Source: MAP

In general, the contamination was below 10%. A representation of the blank sample results plotted against the previous sample prepared is shown in Figure 11-28 and Figure 11-29.

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Figure 11-28: Graph of ALS Chemex Blank Sample Cu% vs. Previous Sample CuT% Blanks CuT % - DDH 0.25

0.20

0.15

0.10

u Blanks % - CuT 0.05

0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Previous Sample

Blancos LIMITE DE DETECCION Blk Base Tolerancia

Source: MAP

Figure 11-29: Graph of ALS Chemex Blank Sample Ag (ppm) vs. Previous Sample Ag (ppm) Blanks Ag ppm - DDH 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 gpm-Blancos - ppm Ag 0.20 0.00 0.00 10.00 20.00 30.00 40.00 Previous Sample

Blancos LIMITE DE DETECCION Blk Base Tolerancia

Source: MAP

11.1.3.4 Standard Samples Only one standard sample was sent to the ALS Chemex laboratory as summarised in Table 11-10. The results of the analysis of the standards sent to ALS Chemex are shown in Figure 11-30.

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Table 11-13: Standard Sample Analysis (GBM910-6) Summary of Details Certified Grade Standard CuT (%) Ag (ppm) As (ppm) Ni (ppm) Zn (ppm) Pb (ppm) Co (ppm) GBM910-6 0.5335 7.1 80 117 1249 592 86 Source: MAP

To check the accuracy of the MAP laboratory, control charts were generated showing the confidence limits of 95% and 99% where:  Upper Limit 99% = average grade + 3 standard deviations.  Upper Limit 95% = average grade + 1.96 standard deviations.  Lower Limit 95% = average grade - 1.96 standard deviations.  Lower Limit 99% = average grade - 3 standard deviations.

Figure 11-30: Control Chart for Standard Sample GMB910-6 Analyzed by ALS Chemex Quality Control - Standard GMB910-6 1.15 1.10 1.05 1.00 0.95

CuT CuT Grade (%) 0.90 0.85 1234567 Batch Number

Estandar Lím Sup (3s) Lím Sup (2s) Lím Inf (2s) Lím Inf (3s) Análisis ALS Chemex (%)

Source: MAP

The standard samples analyzed in the ALS Chemex laboratory were all within the 95% confidence interval.

11.1.4 MAP - ALS Chemex Laboratory Comparison To check the control between the two laboratories, 1,114 sample pulps prepared and analysed in the MAP laboratory were sent to ALS Chemex in La Serena with the comparison results shown in Table 11-14.

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Table 11-14: Summary of Laboratory Analysis by MAP & ALS Chemex of Drill Sample Pulps Summary of Data MAP Laboratory ALS Chemex Difference Statistics CuT CuT CuT Number of Samples 1114 1114 1114 Minimum 0.00 0.00 -1.57 Maximum 12.25 12.00 1.92 Average 0.92 0.92 0.00 Standard Deviation 1.12 1.10 0.14 Student’s T-Test -0.06 Average Differences (%) 0.03 Source: MAP

The percentage difference between the average of the original samples and duplicate samples is less than 1% for both CuT and Ag. A scatterplot showing the CuT% analytical results from the MAP laboratory and ALS Chemex is shown in Figure 11-31.

Figure 11-31: Dispersion Graph of CuT for the Analysis of MAP vs ALS Chemex

MAP x ALS Chemex - CuT GRAPH DISPERSION 6.00 y = 0.9741x + 0.0242 R² = 0.9852 5.00

4.00

3.00

ALS Chemex ALS 2.00

1.00

0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 MAP Laboratory

Source: MAP

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The dispersion graph for CuT shows that there is a good correlation between MAP and ALS Chemex laboratory in La Serena with only a few anomalous values.

Figure 11-32: Q-Q Plot of CuT% for MAP vs. ALS Chemex Analysis MAP x ALS Chemex - CuT QUANTILE-QUANTILE Graph (Dispersion) 6.00 y = 0.9809x + 0.0179 R² = 0.9989 5.00

4.00

3.00

ALS Chemex ALS 2.00

1.00

0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 MAP Laboratory

Source: MAP

The Q-Q plot demonstrates a very close correlation between the two laboratories.

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Figure 11-33: Graph of Relative Difference vs. CuT% Grade Averages

MAP x ALS Chemex - CuT GRAPH REL. DIF. 200

150

100

50

0 0.00 1.00 2.00 3.00 4.00 5.00 6.00 -50

-100

RELATIVE DIFFERENCE % DIFFERENCE RELATIVE -150

-200 CuT AVERAGE Promedio Limite de error +/- 10 Ley de Interes

Source: MAP

Overall conclusions from the QA/QC study are as follows:  Analyses of duplicates show good precision, indicating that protocols used for sample preparation and assaying were adequate.  Analyses of standards used during exploration show good accuracy.  Analyses of blanks show no serious contamination problems between samples.  Analyses of samples sent to the external laboratory showed good correlation and confirmed that the MAP laboratory CuT and Ag assays were reliable with no significant biases evident.  In general, the QA/QC work undertaken is of acceptable standard for the type of sampling conducted and provides adequate confidence in the assay data. In summary, the Qualified Person considers that the samples are representative of the geology and mineralization encountered in the drilling and that the samples have been taken in such a manner as to minimize any sampling bias and have followed the general accepted best practices and outlined by CIM. In general, drilling, sampling, security, and analysis procedures are being conducted in manner that meets industry standard practice. All drill cores and cuttings have been photographed and drill logs have been digitally entered into a drilling database. The split core and cutting trays have been securely stored and are available for review as needed.

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12 Data Verification

12.1 Resource Estimation In summary, the QA/QC methods used by MAP meet industry standard practices and no significant discrepancies were identified during the verification process and therefore the assay data complies with the required confidence for resource modeling and estimation.

12.2 Metallurgy Apart from the ongoing onsite flotation testwork performed by the onsite laboratory for grab samples and drill core, no testwork exists that requires verification.

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13 Mineral Processing and Metallurgical Testing

The onsite metallurgical laboratory at Punitaqui carries out laboratory flotation testwork on samples of the various ores delivered to the ROM pad with the intention of establishing the optimum metallurgy. This testwork is being carried out in the plant metallurgical laboratory on ROM ore, and drill core, in order to obtain comparative results on the various mineralizations delivered to the plant. Beyond this ongoing effort, very little metallurgical testwork exists from which to optimize operations. Based upon the results of the plant, it is unlikely that regular meetings are held between mining production staff and the plant metallurgical staff. From January to February 2018, mine feed that was virtually sterile was delivered to the plant when tonnage was in short supply. Testwork has shown that the Dalmacia mined rock delivered to the plant does not respond to flotation, owing to the insoluble copper being non-sulphide. This has not prevented Dalmacia mined rock being delivered to the ROM pad for processing. A list of testwork on Dalmacia samples is provided as Table 13-1 to this report, and clearly shows the demarcation between mineralized material and waste. Unfortunately, neither the geology nor mining departments can determine exactly from where the samples were derived. It is also evident that with the Enami mined rock being purchased by the mine, the grades fluctuate excessively making plant control almost impossible. Setting up and conducting sound metallurgical testwork is one of the primary recommendations of this report, as understanding the metallurgical responses of the various mill feeds could improve profitability substantially. These recommendations are captured in Section 26.5.3. Based on an actual smelter invoice, dated 30 June 2017, deleterious elements are known to exist in the concentrate. A penalty of 1.8% was applied to the invoice for mercury content, 0.9% for insoluble, and 0.2% for fluorite.

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Table 13-1: Dalmacia Testwork Results

Source: MAP

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14 Mineral Resource Estimate

The Mineral Resource Estimates (MRE) for the Cinabrio and Dalmacia deposits were prepared by MAP geologists and then reviewed and signed off by Flavio Montini from Glencore. The effective date of the estimate was 31 December 2017. The Qualified Person has reviewed and audited the MRE for both deposits using a number of industry standard methods including visual and statistical methods. Visual examination of composites and block grades on successive plans and sections was performed on- screen in order to confirm that the block model correctly reflects the distribution of the composite grades. The review of grade estimation parameters included:  Number of composites used for estimation;  Number of drill holes used for estimation;  Number of passes used to estimate grade;  Mean distance to sample used;  Mean value of the composites used. The December 2017 Cinabrio and Dalamcia resource estimates by MAP and audited by the QP are compliant with the current CIM standards and definitions required by NI 43-101 and are, therefore, reportable as a mineral resources by Xiana Mining. At the end of December 2017, the Punitaqui MRE is summarized in Table 14-1.

Table 14-1: Punitaqui Mineral Resources Category Tonnes (Mt) CuT (%) CuS (%) Ag (g/t) Au (g/t) Measured 3.90 1.36 0.40 6.45 0.07 Indicated 2.57 1.07 0.47 4.41 0.09 Total M+I 6.47 1.25 0.43 5.64 0.07 Inferred 0.50 1.11 1.20 3.73 0.03 Total 6.98 1.24 0.48 5.50 0.07 Source: MAP

14.1 Cinabrio

14.1.1 Drillhole Database The Cinabrio drillhole data was supplied in three separate spreadsheet files with one file for each hole type including drillholes, channel samples, and blast holes. Each spreadsheet contained multiple worksheets for “collar”, “survey”, “assay”, “lithology” and ”structures”. The three spreadsheets were combined into a single Microsoft Access database and a query was run showing the breakdown by company and hole type as shown in Table 14-2. A thorough audit was undertaken on the drill hole database with the following tasks completed:

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 a mechanical audit of the database was undertaken in Surpac  the geologic information in the database was compared to scanned paper logs  a selection of assay values contained in the database were checked against the laboratory assay certificates

Table 14-2: Cinabrio Drillhole Database Summary Company Hole Type No. of Holes Metres Drilled Blast Hole 7 450 Channel 1,297 8,086 Compañía Minera Punitaqui Diamond Drillhole 34 6,261 Reverse Circulation 173 28,012 1,511 42,809 Blast Hole 105 2,312 Channel 1,130 12,286 Minera Altos De Punitaqui Diamond Drillhole 252 39,152 1,487 53,751 Blast Hole 112 2,762 Channel 2,427 20,373 Total Diamond Drillhole 286 45,413 Reverse Circulation 173 28,012 2,998 96,559 Source: MAP

The Microsoft Access database was loaded into Surpac and an audit process was run to check for any collar, survey or sampling errors. A small number of problems were found which appeared to be typographical errors and were fixed in the database. The drillhole and channel samples were both used in the MRE and a review of the two data sets indicates that the datasets are similar as shown by the average CuT% grades in Table 14-3.

Table 14-3: Comparison of Drillhole Assays and Channel Sample Assays Drillholes Channels Distance (m) No. of Pairs Mean CuT% Std. Dev. Mean CuT% Std. Dev. 3 215 1.65 1.03 1.60 0.90 5 896 1.62 1.08 1.54 0.93 10 6,471 1.57 0.95 1.63 0.93 Source: MAP

After reviewing and validating the drill hole database, the QP is of the opinion that the data acquisition and database management for the channel samples and drill holes are of sufficient quality to be used for a

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT resource estimate. Data verification, from site visits to subsequent validation, demonstrates the validity of the Cinabrio deposit database.

14.1.2 Geological Modelling The Cinabrio deposit consists of two separate blocks offset by a fault referred to as Block 0 and Block 4. The two blocks were modelled separately using the following process: 1. The geological interpretation was carried out by the team of MAP geologists using 10 meter spaced cross sections oriented at 70°. The cross sections were plotted out on A0 sheets at 1:1000 scale and included detailed lithology, structure and assays. The interpreted geology and mineralized envelopes were hand drawn onto the cross sections (Figure 11-29). As there is a strong lithological control on the mineralization, the contacts defining the hanging wall and footwall are well defined. 2. The cross section plots were scanned and georeferenced in Autocad where the interpreted geological and mineralization envelopes were digitized before importing them into Datamine where they were snapped onto the drillholes in 3D. 3. Wireframes were constructed in Datamine from the digitised outlines and then validated (Figure 14-2).

Figure 14-1: Example of Cinabrio Interpreted Cross Section

Source: MAP

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Figure 14-2: 3D View of Block 0 in Red and Block 4 in Blue

Source: GeoWiz

14.1.3 Assay Statistics The wireframe models were used to select the sample composites from the drillhole database. The majority of the samples in the database are 1 m in length so this was selected as the composite length. The sample statistics for Total Copper (CuT) in Block 0 and Block 4 are shown in Table 14-4 and probability plots are shown in Figure 14-3 and Figure 14-4.

Table 14-4: Composite Sample Statistics for Block 0 and Block 4

Number of Average Standard Percentiles Unit Minimum Maximum Composites (%) Deviation 25th 50th 75th 95th Block 0 7,718 1.563 1.114 0.001 14.254 0.810 1.490 2.080 3.505 Block 4 1,156 1.285 0.970 0.001 6.227 0.451 1.237 1.949 2.943 All 8,874 1.526 1.100 0.001 14.254 0.758 1.459 2.064 3.424 Source: MAP

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Figure 14-3: Block 0 Probability Plot of CuT%

Source: MAP

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Figure 14-4: Block 4 Probability Plot of CuT%

Source: MAP

The copper grades within the mineralized lutites are very consistent with a low variance and range between 1.2 and 1.5%. The contribution of the upper 2% of the sample data to total metal (7% for Block 0 and 6% from Block 4) are lower than observed in typical porphyry copper deposits (~10%) which indicates that outliers are probably not a major issue. Copper grades were capped using the 98th percentile which represented 4.36% for Block 0 and 3.40% for Block 4. The sample statistics for the capped sample composites are shown in Table 14-5.

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Table 14-5: Composite Sample Statistics for Block 0 and Block 4 After Capping

Number of Average Standard Percentiles Unit Minimum Maximum Composites (%) Deviation 25th 50th 75th 95th Block 0 7,718 1.538 1.008 0.001 4.360 0.810 1.490 2.080 3.505 Block 4 1,156 1.270 0.927 0.001 3.403 0.451 1.237 1.949 2.943 All 8,874 1.504 1.002 0.001 4.360 0.758 1.459 2.064 3.403 Source: MAP

14.1.4 Variography Experimental variograms were calculated on the composited sample data for Block 0 and Block 4. The general dip and dip direction of the deposit it 45° to 067.5° and these were used as the variogram direction to model the anisotropy. The modelled variograms for the three principal directions for Block 0 and Block 4 are shown in Figure 14-5 and Figure 14-6.

Figure 14-5: Block 0 Variogram Models

Source: MAP

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Figure 14-6: Block 4 Variogram Models

Source: MAP

The variogram model shows a low nugget effect and reasonable correlation to approximately 20 m distance for Block 0 and 15 metres for Block 4.

14.1.5 Block Model Separate block models were created for Block 0 and Block 4 in Datamine with a parent block size of 5 mX * 5 mY * 5 mZ and sub-blocked to 0.625 mX * 0.625 mY * 1 mZ. The model was rotated by 20° so that it was generally aligned with the dip and strike of the mineralized blocks.

14.1.5.1 Density Approximately half of the samples in the drillhole database have had densities measurements calculated which have been used to estimate the density in the block model using inverse distance squared. The average of the density measurements is 2.64 and this has been used to assign to any unestimated blocks.

14.1.5.2 Grade Estimation The grades of the blocks inside the mineralization wireframe have been estimated in Datamine using ordinary Kriging for copper and inverse distance squared for soluble copper, silver, gold, and mercury.

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The estimation search strategy is done in three passes with different search distances and minimum number of samples used to estimate a block which are then used for the classification of the resource. The search pass strategy for Cinabrio is shown in Table 14-6.

Table 14-6: Cinabrio Estimation Search Strategy Distances by Trend / Plungle Number of Data Pass Block 67.5 / 45 247.5 / 45 157.5 / 0 Min. Max. Block 0 18 15 22 8 20 1 Block 4 10 15 13 8 20 Block 0 36 30 44 6 20 2 Block 4 20 30 26 6 20 Block 0 54 45 66 3 20 3 Block 4 30 45 39 3 20 Source: MAP

A grade thickness plot (CuT% * thickness meters) created from the Datamine block model is shown in Figure 14-7.

Figure 14-7: Cinabrio Grade (CuT%) * Thickness (m) Plot

Source: GeoWiz

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14.1.6 Resource Classification Blocks are classified using the estimation search pass defined by the search strategy shown in Table 14-6. Blocks estimated in the first pass are classified as Measured; in the second pass as Indicated and in the third pass as Inferred. Based on the style of the mineralization at Cinabrio, the most important geologic risk factor is the actual limits of the mineralization as the copper grades within the identified mineralized zones are very consistent. The mineralized bodies, however, are often truncated by faults so the main uncertainty issue is determining the drill spacing necessary to correctly identify the outlines of the mineralized zones. However, based on a visual review of the data density, orebody geometry and assigned resource class, the defined resource classifications appear to be appropriate.

14.1.7 Validation Visual validation comparing assay and composite grades to block grade estimates showed reasonable correlation with no significant overestimation or overextended influence of high grades.

14.1.8 Reporting Model The block model was depleted using the surveyed stope shapes and a new block model created with the remaining resources. A manual check of the remaining resource blocks was then made and any blocks that were deemed inaccessible because of existing stopes were flagged and taken out of the model. To report the block model, MAP geologists apply a grid to the model in long section as shown in Figure 14-8 where each grid cell is used to constrain the blocks inside each cell which are then grouped by the resource classification. There are two cell sizes, 21 m x 10 m which represent the typical stope size and 4 m x 10 m to represent the development. The tonnes and grades reported in each cell are taken into Excel where they are reported above the cut-off grade to arrive at the final MRE total.

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Figure 14-8: Cinabrio Long Section Grid

Source: MAP

The reason for applying the grid to the block model is that it effectively simulates the potential stope tonnes and grades. For example, there may be some blocks within a grid cell that are less than the cut-off but the overall average grade for the grid cell is above the cut-off so all the blocks in this cell will be included in the resource. Conversely, a grid cell may contain some high grade blocks but the rest of the blocks in the cell are low grade so the average grade for the cell will fall below the cut-off and the high grade blocks will not be included. The MRE has been reported at a 0.80% CuT cut-off based on the assumptions and parameters shown in Table 14-7.

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Table 14-7: Cinabrio Cut-off Grade Determination Operating Costs Cinabrio Mining (US$/t): 8.50 Haulage (US$/t): 3.45 Processing (US$/t): 15.66 Indirect Costs (US$/t): 4.64 Concentrate Freight (US$/t): 2.48 Selling Expenses (US$/t): 6.62 Total Production Cost (US$/t): 41.35

Price US$/tmf Cu 6,500 Price US$/Ozs Au 1,250 Price US$/Ozs Ag 18.5 Recovery – Cu % 85.6 Recovery – Ag % 62.3 Recovery – Au % 50 Point Value Cu (USD/1%Cu) 51.13 Point Value Ag (USD/1 gr Ag) 0.33 Point Value Au (USD/1 gr Au) 26.44

Cut-off Grade (Cu %) 0.81 Cut-off Grade (Ag gr/ton) 123.94 Cut-off Grade (Au gr/ton) 1.56 Source: MAP

The Cinabrio MRE reported at a CuT cut off 0.80% is 4.36 Mt with an average grade of 1.45% CuT and 7.96 g/t Silver. Approximately 61% is classified as measured resources, 31% as indicated resources and 7% as inferred resources. A breakdown of the MRE is shown in Table 14-8.

Table 14-8: Cinabrio Mineral Resource Estimate at 0.8% CuT Cut-off Tonnes Project Category CuT (%) CuS (%) Ag (g/t) Au (g/t) Hg (g/t) (Mt) Measured 2.67 1.54 0.11 8.73 0.03 0.82 Indicated 1.36 1.33 0.19 7.09 0.03 1.92 Cinabrio Total M+I 4.03 1.47 0.13 8.18 0.03 1.19 Inferred 0.33 1.14 0.23 5.31 0.03 0.90 Total 4.36 1.45 0.14 7.96 0.03 1.17 Source: MAP

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14.1.9 Discussion The 2017 MRE of 4.36 Mt increased significantly from the previous year where a total of only 1.32 Mt was reported at the end of 2016. The main changes are due to the following factors:  Increase of 2.38 Mt due to model change following stope survey in 2017;  Increase of 0.43 Mt due to new mineralized material found;  Increase of 0.46 Mt due to a change in the cut-off;  Increase of 0.09 Mt due to pit change; and  Decrease of 0.31 Mt due to mining depletion. The big model change increase of 2.38 Mt was identified following a new underground survey of all the mined stopes. Previously, it was assumed that the mining recovery was 100% with some dilution but the new underground survey found that there was a significant amount of material left behind in the exploited stopes. The newly identified material was checked to make sure that it was accessible and could potentially be mined in the future before it was included in the resource (Figure 14-9). However, a detailed study has not been undertaken to determine what percentage of this new material would be worth mining. Under the definition of JORC that a Mineral Resource must have the potential to be mined, therefore it is considered by the QP that this material should be reviewed and only included in a new resource if it has the potential to be mined.

Figure 14-9: Cross Section Showing Material Left in Mined Stopes

Source: GeoWiz

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14.2 Dalmacia

14.2.1 Drillhole Database The Dalmacia drillhole data was supplied in three separate spreadsheet files with one file for each hole type including drillholes, channel sample and blast holes. Each spreadsheet contained multiple worksheets for “collar”, “survey”, “assay”, “lithology” and “structures”. The three spreadsheets were combined into a single Microsoft Access database and a query was run showing the breakdown by company and hole type as shown in Table 14-9.

Table 14-9: Dalmacia Drillhole Database Summary by Hole Type Company Hole Type No. of Holes Metres Drilled Soc. Minera Pudahuel Reverse Circulation 49 10,017 Compañía Minera Punitaqui Reverse Circulation 49 11,473 Blast Hole 116 4,141 Channel 180 2,268 Minera Altos De Punitaqui Diamond Drillhole 120 30,304 416 36,715 Blast Hole 116 4,141 Channel 180 2,268 Total Diamond Drillhole 120 30,304 Reverse Circulation 98 21,490 514 58,202 Source: MAP

A thorough audit was undertaken on the drill hole database with the following tasks completed:  a mechanical audit of the database was undertaken in Surpac  the geologic information in the database was compared to scanned paper logs  a selection of assay values contained in the database were checked against the laboratory assay certificates The Microsoft Access database was loaded into Surpac and an audit process run to check for any collar, survey or sampling errors. A small number of problems were found which appeared to be typographical errors and were fixed in the database. After reviewing and validating the drill hole database, the QP is of the opinion that the data acquisition and database management for the channel samples and drill holes are of sufficient quality to be used for a resource estimate. The QP is of the opinion that data verification, from site visits to subsequent validation, demonstrates the validity of the Dalmacia deposit database.

14.2.2 Geological Modelling The Dalmacia orebody has been interpreted from drillholes on sections spaced at 5 or 10 m depending on data density using the following process:

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1. The geological interpretation was carried out by the team of MAP geologists on 10 meter spaced cross sections oriented at 60°. The cross sections were plotted out on three sets of A0 sheets at 1:1000 scale which were interpreted separately for lithology, alteration and mineralization. The interpreted geology and mineralized envelopes were hand drawn onto the cross sections (Figure 14-5). The mineralization envelope was defined at a 0.2% CuT cut-off.

Figure 14-10: Example of Interpreted Mineralization Cross Section

Source: MAP

2. The cross section plots were scanned and georeferenced in AutoCAD where the interpreted geological, alteration and mineralization envelopes were digitized. 3. Due to the complexity of the mineralization outlines, the digitized envelopes were imported into Leapfrog as polylines and a 0.2% CuT wireframe was generated (Figure 14-11). 4. As the interpretation was not “snapped” to the drillholes, the drill intervals inside the Leapfrog wireframe were checked in Datamine and the geologic codes were “patched” by recoding the intervals to match the codes of the drillhole composites.

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Figure 14-11: Dalmacia Mineralization Wireframes at 0.2% CuT

Source: GeoWiz

14.2.3 Assay Statistics The wireframe models were used to select the sample composites from the drillhole database. The majority of the samples in the database are 1 m in length so this was selected as the composite length. The sample statistics for Total Copper (CuT) are shown in Table 14-10 and probability plots in Figure 14-12.

Table 14-10: Composite Sample Statistics

Number of Average Standard Percentiles Unit Minimum Maximum Composites (%) Deviation 25th 50th 75th 95th Dalmacia 9,086 0.620 0.869 0.000 9.740 0.110 0.295 0.770 2.330 Source: MAP

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Figure 14-12: Probability Plot of CuT%

Source: MAP

Copper grades were capped using the 98th percentile grade of 3.361%. The sample statistics for the sample composites after capping are shown in Table 14-11.

Table 14-11: Composite Sample Statistics After Capping

Number of Average Standard Percentiles Unit Minimum Maximum Composites (%) Deviation 25th 50th 75th 95th Dalmacia 9,086 0.595 0.745 0.000 3.361 0.110 0.295 0.770 2.330 Source: MAP

14.2.4 Variography Experimental variograms were calculated on the composited sample data for both Dalmacia North and South. The general dip and dip direction of the deposit is 045° to 067.5° and these were used as the variogram direction to model the anisotropy. The modelled variograms for the three principal directions are shown in Figure 14-13.

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Figure 14-13: Dalmacia Variogram Models

Source: MAP

The variogram model shows a fairly high nugget effect and reasonable correlation to approximately 20 m distance.

14.2.5 Block Model Separate block models were created for Dalmacia North and Dalmacia South in Datamine with a parent block size of 6 mX * 6 mY * 6 mZ and sub-blocked to 1.5 mX * 1.5 mY * 1.5 mZ. The model was rotated by 30° so that it was generally aligned with the dip and strike of the mineralized zones.

14.2.6 Density Over 15,000 samples have had densities measurements calculated which have been used to estimate the density in the block model. The average of the density measurements is 2.54 and this has been used to assign to any unestimated blocks.

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14.2.7 Grade Estimation The grades of the blocks inside the mineralization wireframe have been estimated in Datamine using ordinary Kriging for copper and inverse distance squared for soluble copper, silver, gold, and mercury. The estimation search strategy is done in three passes with different search distances, and the minimum number of samples used to estimate a block which are then used for the classification of the resource. The search pass strategy for Dalmacia is shown in Table 14-12.

Table 14-12: Dalmacia Estimation Search Pass Strategy Distances by Trend / Plungle Number of Data Pass Block 150 / 0 60 / 60 240 / 30 Min. Max. 1 Dalmacia 15 20 25 8 20 2 Dalmacia 30 40 50 6 20 3 Dalmacia 45 60 75 3 20 Source: MAP

A grade thickness plot (CuT% * thickness meters) is shown in Figure 14-14.

Figure 14-14: Dalmacia Grade (CuT%) * Thickness (m) Plot

Source: GeoWiz

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14.2.8 Resource Classification Blocks have been classified using the estimation search pass defined by the search strategy shown in Table 14-12. Blocks estimated in the first pass are classified as Measured; in the second pass as Indicated and in the third pass as Inferred. The geologic control on mineralization at Dalmacia is considerably weaker than at Cinabrio and the distribution of the mineralization is significantly more complex. The mineralization occurs as disseminated and vein-type chalcopyrite and bornite mineralization within a sequence of partially metamorphosed volcanics which are intruded by dioritic and granitic dikes. The mineralization is quite “poddy” in nature and although there is reasonable continuity down dip, there are instances where high grade drillhole intersections are absent down or up dip as highlighted within the black circle in Figure 14-15.

Figure 14-15: Dalmacia Cross Section Highlighting Discontinuous Mineralization

Source: GeoWiz

Although the majority of the current resource is classified as Measured and Indicated, a significant amount of infill drilling is required to confirm the current geological model. However, as the model has been constrained inside a potential open pit, the majority of the material included in the resource is reasonably well drilled and it is the deeper parts of the deposit that require infill drilling. There is also a lack of understanding regarding the oxide and sulphide material which has not been taken into account when estimating or classifying the resource. MAP have not interpreted an oxide-transition-

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT sulphide surface but have instead used the ratio of CuS to CuT to distinguish between oxide and sulphide material. The ratio that they have used is shown in Table 14-13.

Table 14-13: CuS / CuT Ratio's Used to Determine Oxide Category CuS / CuT Material > 0.75 Oxide 0.25 – 0.75 Transition < 0.25 Sulphide Source: MAP

If the CuS to CuT ratio is plotted against the drillhole trace, there is usually a clear oxide-sulphide boundary as shown in Figure 14-16.

Figure 14-16: Graph of CuS / CuT along Drillhole Traces

Source: GeoWiz

It is recommended that an oxide-sulphide boundary be interpreted and reported separately.

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14.2.9 Validation Visual validation comparing assay and composite grades to block grade estimates showed reasonable correlation with no significant overestimation or overextended influence of high grades.

14.2.10 Reporting Model The block model has been reported inside an optimized pit shell considering a reasonable possibility of being exploited in the future. The pit optimization was run using the input parameters summarized in Table 14-14. The pit optimization considered that the recovered oxide material could be sold to ENAMI. The Glencore future copper price forecast used was $2.90 USD per lb ($6,500 USD per t) and Inferred material was considered in the optimization.

Table 14-14: Input Parameters for Dalmacia Pit Optimization Item Unit Flotation SX-EW Waste Mining Cost USD / t 2.5 2.5 2.5 Mine to Plant Cost USD / t 2 4 Processing Cost USD / t 13.5 ENAMI SX-EW Cost USD / lb 0.3919 ENAMI Lixiviation Cost USD / ton mined 22.9 ENAMI Stock Cost USD / ton mined 1.72 H2S04 Consumption Kg acid / Kg Cu 4.98 H2SO4 Price USD / t acid 50 MAP Indirect Costs USD / t 4.5 % 90 85 Recovery % 60 % 50 Discount Rate % 9.5 9.5 USD / t Cu 6500 6500 Sale Price USD / Oz Ag 18.5 USD / Oz Au 1250 USD / t Cu 1300 Marketing Cost USD / Oz Ag 2.2 USD / Oz Au 131 Slope Angle ° 50 50 50 Mining Dilution % 5 5 Mining Recovery % 97 97 Source: MAP

A cross section through the block model (Figure 14-17) shows the pit outline used to constrain the resource for reporting.

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Figure 14-17: Dalmacia Cross Section Showing Open Pit Outline

Source: GeoWiz

The MRE has been reported at a 0.6% CuT cut-off based on the assumptions and parameters shown in Table 14-15.

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Table 14-15: Dalmacia Cut-off Grade Determination Operating Costs Dalmacia Mining (US$/t): 2.50 Haulage (US$/t): 1.50 Processing (US$/t): 14.66 Indirect Costs (US$/t): 4.64 Concentrate Freight (US$/t): 2.48 Selling Expenses (US$/t): 6.62 Total Production Cost (US$/t): 32.40

Price US$/tmf Cu 6,500 Price US$/Ozs Au 1,250 Price US$/Ozs Ag 18.5 Recovery – Cu % 78.4 Recovery – Ag % 60.0 Recovery – Au % 50 Point Value Cu (USD/1%Cu) 48.67 Point Value Ag (USD/1 gr Ag) 0.35 Point Value Au (USD/1 gr Au) 18.08

Cut-off Grade (Cu %) 0.67 Cut-off Grade (Ag gr/ton) 93.11 Cut-off Grade (Au gr/ton) 1.79 Source: MAP

The Dalmacia MRE reported at a CuT cut off 0.60% is 2.61 Mt with an average grade of 0.88% CuT and 1.4 g/t Silver. Approximately 47% is classified as Measured resources, 46% as Indicated resources and 7% as Inferred resources. A breakdown of the MRE is shown in Table 14-16.

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Table 14-16: Dalmacia Mineral Resource Estimate at 0.6% CuT Cut-off Tonnes Project Category CuT (%) CuS (%) Ag (g/t) Au (g/t) Hg (g/t) (Mt) Measured 0.23 0.91 0.37 0.77 0.02 0.22 Indicated 0.27 0.83 0.37 0.91 0.02 0.19 Dalmacia Total M+I 0.50 0.87 0.37 0.85 0.02 0.21 South Inferred 0.03 0.80 0.44 0.87 0.03 0.14 Total 0.53 0.86 0.37 0.85 0.02 0.20

Tonnes Project Category CuT (%) CuS (%) Ag (g/t) Au (g/t) Hg (g/t) (Mt) Measured 1.00 0.97 0.40 1.66 0.18 0.11 Indicated 0.94 0.77 0.31 1.54 0.18 0.06 Dalmacia Total M+I 1.95 0.88 0.35 1.60 0.18 0.08 North Inferred 0.13 1.11 1.16 0.57 0.04 0.00 Total 2.08 0.89 0.41 1.54 0.17 0.08

Tonnes Project Category CuT (%) CuS (%) Ag (g/t) Au (g/t) Hg (g/t) (Mt) Measured 1.23 0.96 0.39 1.49 0.15 0.13 Indicated 1.21 0.79 0.32 1.40 0.15 0.09 Dalmacia Total M+I 2.44 0.87 0.36 1.45 0.15 0.11 Total Inferred 0.17 1.05 1.01 0.63 0.03 0.03 Total 2.61 0.88 0.40 1.40 0.14 0.10 Source: MAP

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15 Mineral Reserve Estimate

Despite the maturity of operations, the sizeable resource, and the fact that it is currently operating, Xiana has not declared any reserves for this property. Xiana understands that a considerable effort will be required for mine planning and metallurgical analysis to prepare a sound and comprehensive operating plan before any reserves can be declared.

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16 Mining Methods

These sections do not apply due to the Property not being an Advanced Property under NI 43-101. However, the authors and QPs of this report consider the information regarding the current mining methods to be extremely relevant to the reader and have included detailed descriptions of these aspects of the Project in Section 24.1.

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17 Process Description / Recovery Methods

These sections do not apply due to the Property not being an Advanced Property under NI 43-101. However, the authors and QPs of this report consider the information regarding the current processing methods to be extremely relevant to the reader and have included detailed descriptions of these aspects of the Project in Section 24.2.

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18 Project Infrastructure and Services

These sections do not apply due to the Property not being an Advanced Property under NI 43-101. However, the authors and QPs of this report consider the information regarding the current project infrastructure and services to be extremely relevant to the reader and have included detailed descriptions of these aspects of the Project in Section 24.3.

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19 Market Studies and Contracts

These sections do not apply due to the Property not being an Advanced Property under NI 43-101. However, the authors and QPs of this report consider the information regarding the marketing of the Property’s concentrate to be extremely relevant to the reader and have included detailed descriptions of these aspects of the Project in Section 24.4.

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20 Environmental Studies, Permitting and Social or Community Impacts

These sections do not apply due to the Property not being an Advanced Property under NI 43-101. However, the authors and QPs of this report consider the information regarding the environmental, permitting, and socio-economic aspects of the Property to be extremely relevant to the reader and have included detailed descriptions of these aspects of the Project in Section 24.5.

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21 Capital and Operating Cost Estimate

This section is not appropriate for this Report.

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22 Economic Analysis

This section is not appropriate for this Report.

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23 Adjacent Properties

There are currently many projects in Northern Chile that either were or are operating mines, as shown on Figure 23-1. The large red circle indicates the region near Punitaqui.

Figure 23-1: Mining Projects and Operations in Northern Chile

Source: MAP

There are many concessions that surround the Project. These are held by individuals rather than companies, with no information on websites and no public information disclosed. No references to any adjacent properties other than general regional geology comments are used in this report. The mineral resource estimation and exploration targets described in this report are based solely on

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT work done on the Punitaqui Property and are not influenced in any way by any potential mineralization on adjacent properties.

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24 Other Relevant Data and Information

24.1 Mining Methods

24.1.1 Production The total production in 2017 was 1,055 Kt, mined from three sources, as shown in Table 24-1.

Table 24-1: Production Sources for 2017 Mine Tonnes %CuT %CuS %CuI Ag ppm Hg ppm Au ppm Cinabrio 462,588 1.08 0.14 0.84 4.50 387 0.06 Los Mantos 408,838 0.45 0.21 0.24 0.94 12.34 1.24 Milagros 183,454 0.35 0.04 0.27 0.85 14.38 1.43 Total 1,054,880 0.71 0.15 0.51 2.48 8.98 0.75 Source: MAP

More recent facility production, in the first three months of 2018, is shown in Table 24-2. Currently the Cinabrio underground mine and the Dalmacia open pit mine are operating. The Milagros underground mine and the Los Mantos open pit mine are closed due to a recent fatality. The Dalmacia underground mine is idle. The Cinabrio and Dalmacia mines are 100% owned by MAP. The Los Mantos and Milagros mines are “leased”, meaning that they are subject to a 3% royalty payment based on NSR.

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Table 24-2: Punitaqui Production in 2018 2018 Source Description Units January February March Cinabrio Tonnes Treated dmt 42,135 44,117 41,155 Cinabrio Copper Grade % 1.00 1.05 1.07 Cinabrio Silver Grade gr/dmt 4.27 3.38 5.30 Cinabrio Gold Grade gr/dmt 0.02 0.02 0.01 Milagros Tonnes Treated 6,778 - - Milagros Copper Grade % 0.27 - - Milagros Silver Grade gr/dmt 0.49 - - Milagros Gold Grade gr/dmt 1.29 - - Los Mantos Tonnes Treated t 14,129 1,982 5,616 Los Mantos Copper Grade % 0.41 0.30 0.40 Los Mantos Silver Grade gr/dmt 0.70 0.92 0.61 Los Mantos Gold Grade gr/dmt 1.40 1.71 1.23 Tolling Tonnes Treated dmt 16,121 15,816 17,372 Tolling Insoluble Copper Grade % 1.75 1.83 1.62 Tolling Silver Grade gr/dmt 6.91 8.48 7.91 Tolling Gold Grade gr/dmt 0.12 0.12 0.13 Third Party Tonnes Treated dmt 2,285 6,643 936 Third Party Copper Grade % 0.13 0.13 1.29 Third Party Silver Grade gr/dmt 0.50 0.57 7.22 Third Party Gold Grade gr/dmt 1.50 1.56 0.01 TOTAL PRODUCTION dmt 65,327 52,742 47,707 Total Copper dmt 363 371 344

Total Silver Oz 4,640 3,783 5,365 Total Gold Oz 876 403 172 TOTAL PRODUCTION (incl. Tolling) dmt 81,448 68,558 65,079 Total Copper dmt 600 605 566

Total Silver Oz 7,219 6,948 8,659 Total Gold Oz 914 440 215 Source: MAP

24.1.2 Equipment All mining equipment is owned and provided by a single contractor: Ingenería Y Construcciones Mas Errazuriz Limitada (Errazuriz). The equipment is reasonably new and appears to be well maintained and in good condition. For the most part it is appropriately sized. In some cases, larger units may be appropriate. For example, larger 8 yd³ scooptrams rather than the existing 6 yd³.

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As the Cinabrio deposit deepens, the first real test for the equipment will be the haulage time from the bottom of the mine. This may prompt the evaluation of larger haulage trucks; the width of the ramp, at approximately 5.5 m, should be able to accommodate trucks as large as 50 t and still provide 2.0 m free space. However, as all of the equipment is contractor-owned, such efficiencies are only relevant if the contract is structured to provide a lower cost to MAP. Replacing the existing model with owner’s equipment and crews would be very costly and inefficient at this point of the mine’s life. If a trade-off evaluation was administered, a significant loss of efficiency (around 30 to 50%) of the current mine yield over the first year of operations, must be incorporated into the analysis.

24.1.3 Geotechnical Considerations MAP has a resident geotechnical technician on site. A monthly report is generated and provided to Glencore for oversight of geotechnical practices.

24.1.3.1 Underground Each mine has its own bolting standards which are based on the Bieniawski Rock Mass Rating (RMR), a typical industry standard. The RMR varies from 40 to 80, which corresponds to “poor” to “very good” ratings. Splitsets are used throughout the mines in lengths of 1.8 m, 2.4 m and 3.0 m with mesh. A 1 to 2-inch layer of shotcrete is applied to fault zones. Reliance on splitsets is unusual in Canadian mines as they are considered a short term bolt due to corrosion (~ 3-year reliable life). They are generally not used in vertical orientations in Canadian mines because they are not effective at holding gravitational dead loads caused by wedges. Most Canadian mines used resin- grouted rebar or swellex for back support and splitsets or swellex bolts in the walls. Many of the headings underground are not bolted. In these zones the back was typically completely covered with half-barrels of the drillholes, a reliable indication of good ground conditions. The possibility of wedges should still be considered. As advised by the ground control engineer, stope stability is determined in typical industry fashion, using the hydraulic radius (area divided by perimeter) and rock quality determination on a stability graph, such as the Mathews analysis.

24.1.3.2 Surface The Dalmacia open pit mine is designed for 6.9 m wide x 12 m high benches with face angles of 70° and an overall slope angle of 49°, as shown in Figure 24-1. Waste dumps are designed for 9.6 m wide x 8 m high benches and assume repose angles of between 36° and 39°, resulting in overall slope angles of 23°, as shown in Figure 24-2. These appear to be reasonable compared to industry standards, but a thorough review was not carried out by JDS for this report. It appears that the potential for cirque failures was assessed for both the open pit walls and waste dumps. With the presence of faults in the rock, a wedge failure is more likely, and close attention should be paid to plotting and assessing the geometry of these failure planes and their intersections. Careful consideration

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT should also be paid to the structure at the toe of a potential cirque failure, as a minor wedge failure could undermine a slope wall, causing a much larger cirque failure.

Figure 24-1: Design Criteria for the Dalmacia Pit

Source: MAP

Figure 24-2: Design Criteria for Waste Dumps

Source: MAP

24.1.4 Cinabrio Underground Mine Operating since 2011, the Cinabrio Mine has been the largest producer at MAP. In 2017 it had produced at a rate of approximately 1,300 Mt/d, representing 44% of the mill feed for the year.

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Approximately 6.3 Mt of mineralized rock has been extracted to-date at a milled head grade of 0.81% % CuI and 6.24 g/t Ag. The orebody dips at approximately 50° with thicknesses of between 20 m and 100 m extending from the top at 1,000 mASL to the current bottom at about 400 mASL as shown in Figure 24-3. Most of the mining levels are unbolted and the ground is solid and competent, with the exception of some fault zones, which are supported with splitsets and shotcrete. Sublevel open stoping is employed with a 30 m vertical distance between levels. The stopes are mined using uphole drilling. A slot is developed from hangingwall to footwall across the width of the stope then parallel rings are blasted into the open void. All stopes are non-entry to personnel. Remote scooptrams are employed regularly for complete extraction. Haulage from the mine is accomplished using 30 t diesel haulage trucks. Mining is completed without cemented, self-supporting backfill, and massive pillars are left for support that are continuous from hangingwall to footwall, as shown in Figure 24-4. All development waste is placed in completed stopes, offering confining support to the hangingwall through most, though not all, of the mined areas.

Figure 24-3: Isometric of Cinabrio Mine

Source: MAP

The Cinabrio mine has resources remaining throughout the existing mine. Although current planning does not extend beyond 2019, there is potential for expansion beyond the current mining in the following areas:  Block 4, in the upper south portion of the orebody (shown above in blue);  To depth;

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 Throughout the mine through the re-evaluation of stope limits (incomplete mining); and  Throughout the mine in the form of pillar shaving or pillar robbing on retreat.

Figure 24-4: Typical Stope and Pillar Configurations at Cinabrio Mine

Source: MAP

The MAP technical team has a good understanding of its dilution and recovery factors, as every stope is surveyed on the completion of mining using a cavity monitoring system. Comparing the final void to the planned shape yields accurate factors, as shown in Figure 24-5.

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Figure 24-5: Estimation of Recovery and Dilution Factors

Source: MAP

These surveys and reconciliations have led the MAP technical team to develop an assumed mining recovery of 90% and dilution factor of 10% for the Cinabrio stopes. Although not officially part of the Cinabrio Mine, there is also a subparallel lens near the surface being explored called the San Andreas deposit, located approximately 500 m west of the Cinabrio deposit (Figure 24-6). Should it be proven viable, developing this orebody would require a new portal and ventilation system, but would have a much shorter haulage distance than the Cinabrio extension to depth.

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Figure 24-6: San Andreas Exploration Target

Source: MAP

24.1.5 Dalmacia Underground Mine The Dalmacia deposit is modeled as numerous discrete and discontinuous pods of mineralization, as shown in Figure 24-7. The Dalmacia underground mine has one level completely developed at 315 mASL. It is currently laid out for sublevel open stoping using a 20 m sublevel spacing without backfill in a similar fashion to the Cinabrio mine. Plans exist both for underground mining and surface mining of the deposit. As the topography is fairly hilly, an open pit plan would only recover the upper portion of the orebody and, if viable, continued extraction would be done using underground methods. There are considerable gaps in the current drilling and the potential exists to expand the mining operation beyond the current estimates.

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Figure 24-7: Section through the Dalmacia Deposit

Source: MAP

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Figure 24-8: Level 315 of the Dalmacia Underground Mine

Source: MAP

24.1.6 Dalmacia Surface Mine As stated, plans exist for a “super pit” for the main Dalmacia deposit, which is currently developed on one level as an underground mine. However, there is a second discrete zone to the East of the underground mine, which is also called the Dalmacia open pit mine, but has the historical names Nova Galicia and Arco Iris (see Figure 24-9). At the time of the site visit, the pit was being pre-stripped for open pit mining using excavators to load surface highway trucks. The mine is currently operating under an exploration permit that allows for 3,000 Mt/d of total mining. The mine in the process of applying for a full mining permit that would allow 20,000 Mt/d. It is being excavated with 12 m high benches. The strip ratio is currently estimated to be 3:1. More drilling is required to determine the extent of the numerous planned pits and which will merge into much larger pits. The pit will start with a heavier-than- average ratio of CuS to CuI.

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Three waste dumps are planned for the pit, all within 1.5 km haulage distance.

Figure 24-9: Dalmacia Open Pit Mine

Source: MAP

24.1.7 Milagros Underground Mine The Milagros mine is a historic gold mine in which the high grade core has been mined out, but the low grade fringe which housed the core remains, as demonstrated in Figure 24-10. The mined-out high grade core is represented in yellow and generally averages 3 m thickness. The lower grade (1 g/t cut-off) matrix is shown in orange and averages a much wider 18 m thickness. Extraction from the Milagros mine began in January 2016 and by December 2017, a total of 307 kt had been mined at a milled head grade of 0.32% Cu, 1.43 g/t Au and 0.59 g/t Ag. The MAP technical team’s unofficial view of the orebody is that the combination of the high grade core and the low grade matrix totals 15 Mt. A total of 3 Mt has already been mined, leaving 12 Mt for future exploitation, of which perhaps 25% could be converted to a reserve. Thus, the operators believe that a 3 Mt orebody is possible from the Milagros Mine. This has not been confirmed. The mine comprises numerous lenses including the Diabla, Sucia, Daniela, Divina and Dura. The MAP technical team believes that there is a good opportunity to drill and find additional resources in some of these lenses that include an unmined high grade core. The exposed Milagros shaft reportedly collapsed during an earthquake.

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Figure 24-10: Milagros Underground Mine

Source: MAP

24.1.8 Los Mantos Mine Area The Los Mantos open pit is directly above and north of the Milagros mine. It too has been active since January 2016, and has produced a total of 700 kt at a milled head grade of 0.25% CuI, 0.84 g/t Ag and 1.13 g/t Au. The Los Mantos pit abuts both the processing plant and the tailings impoundments. A LOM plan will be impacted by these facilities, as it is unlikely to warrant relocating either. A tour of the Los Mantos pit and the adjacent Tamayo tailings pond allowed the JDS team to see the surface traces of some of the narrower transverse tension veins (Sucia, etc). Some of that Au-bearing material will be recovered with the proposed pushback of the Los Mantos pit. The transverse veins are narrower but have a good gold grade. A different mining method may need to be considered, perhaps long-hole open stopes. There was no visible evidence of any final wall pre-shear holes, or less shattered rock commonly seen with cushion or buffer blasts. There may be some upside available in the reduction of the strip ratio, especially if permitted triple-benches are used near the pit bottom.

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24.2 Process Description / Recovery Methods The plant is a conventional three stage crushing with single stage ball milling and bulk flotation to generate a concentrate of combined copper-gold with silver as a byproduct. It is then dewatered on site and trucked to either Glencore’s Chilean Altonorte smelter, or to the port, for dispatch to the market.

24.2.1 Plant Description A flowsheet with a list of major equipment is provided as Figure 24-11 in this report.

24.2.1.1 Permitted Rate The property contains a mill that is permitted to operate at 3000 Mt/d, with an allowance to exceed the permitted capacity by an additional 20%, suggesting a maximum allowable milling rate of approximately 3,600 Mt/d. Although the production is theoretically regulated on a daily basis, it seems that in practice, this maximum rate is averaged over an operating month.

24.2.1.2 Crushing Run-of-mine (ROM) mineralized rock is delivered to the coarse stockpile as separate material for evaluation and assaying prior to being blended through the plant. ROM mineralized rock is control discharged from the 50 t ROM bin by a grizzly feeder ahead of a 56” x 48” Nordberg C140 Jaw crusher. ROM fines at nominally minus 150 mm by-pass the jaw crusher and are conveyed with jaw product at nominal 200 mm to the secondary crusher. The primary crushed product is screened on a 5 ft by 17 ft double deck rubber mesh screen with 75 mm gaps on the top deck and 32 mm gaps on the bottom deck. Undersize by-passes the Trio 66 standard cone crusher while the oversize passes to the Standard cone crusher with a closed-side setting (css) of nominal 25 mm. The standard crusher discharge combines with the by-pass fines and is conveyed to the tertiary crushing circuit storage bin of nominal 300 t capacity for control discharge to the tertiary circuit. Vibratory feeders control the feed to three 5 ft x 17 ft tertiary double deck screens with 20 mm top deck aperture and 14 mm bottom deck aperture for control of the final product to nominal 9 mm. Oversize from the tertiary screens feeds directly to three Trio 51 shorthead cone crushers prior to recycling in closed circuit back to the 300 t surge bin. Fines from the tertiary screens at nominal 8 to 9 mm are conveyed to a 14,000 t fine mineralized rock stockpile.

24.2.1.3 Milling The grinding circuit consists of two modules each consisting of a single stage 14 ft x 20 ft ball mill. Each mill is in closed circuit with a D26 cyclone system maintaining a closed circuit with the mill. Mill circuit product is sized at a P80 of 110 μm. Mineralized rock is delivered by a mechanical gate discharge to the ball mill over a weightometer to monitor the weight to the mill for metallurgical accounting. The discharge from each of the 14 ft by 20 ft ball mills is pumped by an 8/6 unit to a two cyclone battery with 26” cyclones for classification of the mill product. Overflow gravitates to flotation, while the underflow as coarse oversize recycles back to the ball mill for further grinding.

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Mill circuit number 1 contains steel liners in the grinding mill, while Mill No. 2 is equipped with polymet liners. Three “old” (not used) ball mills also exist which are assumed to be the original plant. The mills are: 10.5 ft by 13 ft ball mill with discharge pumps and 15” cyclone classification. A 10 ft x 10 ft ball mill with discharge pumps and 15” cyclone classifier. There is also an 8 ft x 12 ft Denver rod mill with discharge pumps. A mill support for a fourth mill (removed) exists between the two ball mills. Power available for these mills is shown in Table 24-3.

Table 24-3: Old Mill Grinding Units Power

Source: MAP

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24.2.1.4 Flotation The flotation circuit consists of a rougher-scavenger circuit, with a three stage cleaner circuit to upgrade the copper to nominally 23% copper in the final concentrate. The gold content of the copper concentrate is totally dependent upon the mineralized rock mix utilized on the ROM pad.

24.2.1.4.1 Rougher Scavenger Flotation The grinding circuit product is conditioned in two stages utilizing a 10 ft x 10 ft primary and an 11 ft x 11 ft secondary unit for reagent conditioning. The lead rougher-scavenger cells consist of nine rougher cells with each cell being a Dorr Oliver 1000 ft3 capacity. All nine cells contribute to produce a rougher concentrate which passes to the primary cleaner while the scavenger circuit consists of a three cell Wemco 1000 ft3 cell bank followed by a five cell Dorr Oliver 1000 ft3 cell bank arranged as a two to three cell unit. Scavenger concentrate is pumped back to the head of the rougher circuit. Scavenger tailing is pumped to the high density dewatering facility.

24.2.1.4.2 Cleaner Flotation The primary cleaner consists of a rougher and a scavenger stage with the rougher consisting of a four cell bank of Wemco 300 ft3 cells. The scavenger bank consists of a four cell unit with each cell being a Dorr Oliver 500 ft3 capacity. The rougher concentrate is pumped to a secondary cleaner circuit consisting of two separate Wemco 300 ft3 units and one Wemco 500 ft3 unit. The scavenger concentrate is pumped to a 6 ft by 33 ft column cell as a secondary cleaner unit. The conventional cell secondary cleaner concentrate is final concentrate while the tailing recycles to the primary scavenger feed. The column concentrate combines with the final concentrate while the column tailing recycles back to the feed of the primary cleaner scavenger circuit. The final copper concentrate is sampled by an automatic Tecpromin cutter and pumped to the thickener.

24.2.1.5 Thickening A 45 ft diameter conventional thickener is used to dewater the copper concentrate. The tailing thickener sizing is a 22 m diameter high density paste thickener. Water from the tailing thickener, and the concentrate thickener, is recycled back to the circuit process water system. The concentrate thickener underflow passes to holding tanks as a feed supply to the filter units.

24.2.1.6 Filtering The concentrate is presently filtered in two PF1.6 Larox horizontal eight plate filters to a typical 8% to 10 % moisture by weight and discharges by gravity to the 7,000 t capacity holding shed where it is allowed to dry, if necessary, prior to trucking to the port or the smelter.

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24.2.1.7 Tailing Disposal The tailing is pumped to the tailing facility where it is discharged into a retained facility. The retention facility provides for sedimentation and evaporation, with no facility for recycling any water back to the process water recirculation system. This high density paste disposal facility maximizes the recirculation of process water within the operating plant.

24.2.1.8 Plant Equipment Discussion In general, the plant has a capacity to process in excess of the design 3,200 t/d if all the equipment, and process flowsheet, are used to their full capacity. Minor additions will be required to the process plant and capital expenditure will be required to maximize the metallurgical efficiency.

24.2.1.8.1 Crushing A flowsheet with equipment operating specifications is provided as Figure 24-11. The calculations for the crushing circuit equipment throughputs and capacities is shown in Table 24-4 with a summary table provided in Table 24-5.

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Figure 24-11: Process Plant Flowsheet and Equipment Listing

Source: Holland & Holland

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Table 24-4: Calculations for Punitaqui Crushing Circuit

Source: Holland & Holland

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The following equipment sizes with their respective capacities are shown in the following table:

Table 24-5: Crushing Equipment Sizes and Capacities Description Size Set TPH Grizzley 32*24” 50 T Bin Primary Crusher C140 100 mm 255 - 300 150 mm 360 - 450 Screen 7-15 75-32 mm 450 Secondary Crusher 5 ½ ft 20 mm 415 25 mm 498 Screen 7*15 20-14 mm 625 Tertiary Crusher 4 ¼ ft 10 mm 642 Recycle Load on Tertiary Crusher Stated to be 97% Source: Holland & Holland

As is evident, the equipment appears to have more than adequate capacity to process 3,200 t/d in a 16- hour day with adequate provision (15%) for start-up close-down and surge. However, it is known that the crushing plant has an operating time of typically 20 h/d. This is attributed to the extremely small ROM bin of 50 t and the surge capacity through the primary crusher, limiting the ability to choke feed the individual crusher circuits. The basic design of the plant would require modifying in order to maximize the individual crusher throughputs.

24.2.1.8.2 Primary Jaw The Jaw crusher has a nominal capacity of 255 t/h to 300 t/h at 100 mm open side setting. This is more than adequate to produce the 3,200 t/d required.

24.2.1.8.3 Secondary Screen The screen could handle a plant feed of 400 t/h based upon a coarse rock feed.

24.2.1.8.4 Secondary Cone The TC66 Trio secondary cone crusher has a nominal capacity of 415 t/h to 500 t/h plant feed throughput at 20 mm to 25 mm CSS respectively, which is more than adequate to accommodate the 3,200 t/d required.

24.2.1.8.5 Tertiary Screen The three tertiary screens could handle a plant feed of typically 500 t/h, based upon optimum operations.

24.2.1.8.6 Tertiary Cone The three TC51 Trio cone crushers have a nominal throughput of 640 t/h plant feed. These crushers are operating independently of the primary and secondary crushers and can be choke fed. The units have adequate capacity to achieve 3,200 t/d throughput.

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It is evident therefore that the crushing circuit has ample capacity to process the 3,200 t/d required to maintain mill production. Based upon an assumed ROM mineralized rock feed distribution, the maximum tonnage which could be processed through the crushing plant in a 16-hour day would be nominally 400 t/h (6,000 t/d) at 10 mm product, if correctly designed.

24.2.1.9 Milling The milling circuit comprises two single stage 14 ft diameter by 20 ft long ball mill with a 1650 kW drive, operating on 8 mm to 9 mm feed to generate a nominal 105 μm to 110 μm product. The mill is operating with a single stage 26” classification cyclone with the product reporting to flotation at typically 35% solids by weight. The mills are operating at nominally 72% to 73% critical speed, depending upon the liner type. This relatively high RPM is assumed to have been introduced to the expansion design to maximize power from the mill. This strategy minimized the capital required at the expense of operating cost (high wear to shell liners, and media). The mills were stated to be operating with full ball charges, however this could not be verified as the mills could not be closed down for inspection. The mill operating data was used to calculate the power draw from the mill. This calculation is shown in Table 24-6 and indicates that the mills are drawing nominally 1610 kW at the motor. This is in agreement with the motor sizing.

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Table 24-6: Calculations for Mill Power Draw, Physical and Sub-station Data

Source: Holland & Holland

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The mill motor operating data was checked in the Motor Control Centre (MCC) and the power draw determined from the electrical signal. This calculation is also shown in Table 24-6 and indicated a full power draw on Mill 2 while Mill 1 was operating at 30% below maximum power. This lower power draw is attributed to a low ball charge but could not be confirmed. The figures confirm that the mills are operating at relatively full power with only 15% average spare power available. It is considered that the lack of power draw on Mill 1 was due to a lower ball charge which should be topped-up at the next charging. The smaller mills available from the original plant have a potential to increase primary mill throughput by approximately 25% based on mill pinion power draw. This is based upon using the two larger ball mills (10 ft and 10.5 ft diameter) as primary mills and the 8ft diameter mill as a regrind facility.

24.2.1.10 Flotation The flotation circuit capacities have been calculated based upon the existing copper flowsheet with industry practice applied to the circuit for operating pulp densities. The residence times for the separate circuits are summarized in the following table and indicate that the plant may originally have been designed as an oxide float plant. This is the only explanation for the extremely large residence times available in Punitaqui.

Table 24-7: Flotation Residence Time Summary TPH %Sol TPH Slurry CMPH Slurry Cell Vol. m3 Mins Res Time Conditioner 1 140 33 424.2 336.1 24.2 4.3 Conditioner 2 140 33 424.2 336.1 32.2 5.7 Cu Ro 226 33 684.4 542.2 170.0 18.8 Cu Sc 195 33 590.5 467.8 311.6 40.0 Clnr 1 31 38 81.6 62.1 34.0 32.9 Clnr Sc 27.75 25 79.3 61.8 56.7 55.5 Clnr 2 5.55 30 18.5 15.0 31.2 124.7 Clnr 2 Column 1.9 20 9.5 8.3 26.5 191.6 Source: Holland & Holland

24.2.1.10.1 Residence Time  Rougher Scavenger Circuit o The flotation feed density is 35% solids by weight. Based upon the existing cells and the float feed volume the rougher-scavenger residence time is calculated to be 59 minutes. This appears to be excessive for a design basis. However, it is likely that the plant was originally designed as an oxide flotation plant which requires almost double the residence time for a sulphide plant. The visual appearance of the final scavenger would suggest that there is an excess of residence time.  Cleaner Circuit

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o As with the rougher-scavenger circuit, the cleaner circuit appears to be over-designed with excessive flotation time in all cleaners, including a stand-by column cell.

24.2.1.10.2 Reagent Addition Reagents used in the plant are controlled by dosing pumps. The reagents added and their effects on flotation are relatively simple. However, it is likely that they are not fully optimized owing to the lack of knowledge of the feed grade entering the plant, and the lack of a strong collector in the scavenger circuits.

24.2.1.11 Dewatering

24.2.1.11.1 Thickening The copper tailing is thickened (22 m) and the thickener overflow recycles back to the milling process water system. Thickener underflow is pumped as a paste at typically 70% solids to the tailing facility. This system reduces water loss, at the expense of the capital cost of the thickener. It was assumed that the paste thickener was installed as a feed system for a mine back-fill program. There is no back-fill operation in the mine plan. The concentrate dewatering consists of a 45 ft diameter thickener suitable for nominally 250 t/d or a nominal plant throughput of 7,500 t/d to the mill. It is evident that the concentrate thickener is suitable for the tonnage. However, the stability of the froth is a problem and this is evident from a visual inspection where thick stable froth covers the entire thickener, and the overflow launders.

24.2.1.11.2 Filtering Filtering of the concentrates is carried out on two Larox PF 16 sq metre horizontal belt filters with resultant moistures of nominal 10% water. Concentrates are stockpiled and dried if required prior to truck transportation to either the smelter, or the port facility, for exportation.

24.2.1.12 Services It is understood through discussions with operational staff that there is no limit to the power supply to the plant. Adequate water supplies are available which would contradict the requirements for a tailing paste thickener. The plant is operating at a reasonably high utilization based upon the operating hours of the ball mills, which dictates plant availability. However, there are several aspects of the plant which require attention, or further investigation.

24.2.2 Process Recovery The flotation circuit appears to have a residence time designed for oxide flotation. The rougher-scavenger bank has a residence time of almost 60 minutes while the cleaners have residence times of 33 to 190 minutes.

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24.2.2.1 Feed Grade In order to assess the plant metallurgy, the whole year data for 2017 was requested along with the daily data for December 2017 selected at random. An analysis of the feed grade variations indicates that the variation on a daily basis is not conducive to obtaining good plant metallurgy. Despite the anticipated mixing through the crushing circuit stockpiles which would tend to blend any variations there still exists huge swings in plant feed as shown in the following daily figures:

Figure 24-12: Daily Plant Feed Variation for December 2017

Source: Holland & Holland

As may be seen above, the 24-hour daily feed grade varies nominally 250% during December 2017. This type of variation is virtually impossible to control without any on-stream analyzer to indicate the immediate fluctuations received at the plant. The plant control is based upon three hourly grab samples which are submitted for quick turn-around analysis. The December data for these samples shows the following variation, with full details shown in Table 24-8.

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Table 24-8: Variation in 3 Hour Samples taken on the Plant throughout December 2017

Source: MAP

Figure 24-13: Variation in 3 hr. Control Samples for Plant Feed - December 2017

Source: MAP

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The daily average variation for the month of December 2017 was 195%. This type of variation within an operating day is virtually impossible to control.

24.2.2.2 Copper Metallurgy A review of the metallurgical recoveries on a daily basis would suggest the plant is operating at a relatively variable recovery with improvements available at the present grind size, by stabilizing the recovery. The following figures show the percentage variation of recovery as determined by the three hour assays on a daily basis.

Figure 24-14: % Daily Variation in Recovery 3 hr. Samples for December 2017

Source: MAP

The above represents a daily variation in recovery of total copper of 133% fluctuation.

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Figure 24-15: % Daily Variation Cu Insoluble Recovery 3 hr. Samples for December 2017

Source: Holland & Holland

The average daily fluctuation of “insoluble” copper recovery is also 133%. In other words, the recovery varies from 70% down to 60%, and up to 80%. The grade of feed and concentrate with respect to recovery appears to have no correlation whatsoever, as shown in the figures below, and shown in detail in Table 24-9.

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Table 24-9: Concentrate Grade vs. Recovery Correlation for 3 hr Samples during December 2017

Source: MAP

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Figure 24-16: Summarized Feed Grade vs. Recovery 1 December 2018

Source: Holland & Holland

Figure 24-17: Summarized Conc. Grade vs. Recovery 1 December 2018

Source: Holland & Holland

Again there is no correlation between concentrate grade and recovery. The above two figures would suggest that the plant is not being controlled, using either feed grade or concentrate grade.

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Table 24-10: Monthly Metallurgical Data for 2010 – 2017

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However if we plot the same relationships for the monthly metallurgy from 2010 to 2017, as shown in Table 24-10, the following is evident:

Figure 24-18: Summarized Monthly Feed Grade vs. Recovery 2010 – 2017

Source: Holland & Holland

Figure 24-19: Summarized Monthly Conc. Grade vs. Recovery 2010 – 2017

Source: Holland & Holland

The above figures show a relationship with a relatively wide band of recovery. The concentrate grade – recovery relationship is also inverted if the plant had a relatively constant feed grade. This is due to the mineralization in general dictating the metallurgy, and not the operators, with differing mineralization having relatively higher, or lower, sulphide content within the ore, and a relatively constant sulphide tailing grade.

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24.2.2.3 Gold Metallurgy The gold mineralization is predominantly associated with the Milagros underground mineralized rock and the Los Mantos open-pit mineralized rock, both of which contain relatively low copper content.

Figure 24-20: Summarized Gold Feed vs. Recovery for Avance 1 in December 2017

Source: Holland & Holland

Figure 24-21: Summarized Gold Concentrate Grade vs. Recovery for Avance 1 in December 2017

Source: Holland & Holland

The above figures indicate a wide gold recovery band over both feed grades and concentrate grades. This is due to the gold feed grade and gold concentrate grade being dictated by the amount of non-Milagros / Manto mineralized rock mixed into the plant feed. The gold mineralization from both Milagros and Los Mantos show reasonably consistent recoveries of 80% and 70% respectively.

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Table 24-11: Processing Rates and Recoveries for 2018 2018 Source Description Units January February March Cinabrio Tonnes Treated dmt 42,135 44,117 41,155 Cinabrio Copper Grade % 1.00 1.05 1.07 Cinabrio Silver Grade gr/dmt 4.27 3.38 5.30 Cinabrio Gold Grade gr/dmt 0.02 0.02 0.01 Cinabrio Concentrate dmt 1,797 2,101 1.727 Cinabrio Concentrate Grade Cu % 18.35 17.42 19.10 Cinabrio Concentrate Grade Ag gr/dmt 74,83 54.13 92.54 Cinabrio Concentrate Grade Au gr/dmt 0.38 0.24 0.18 Cinabrio Met Recovery Cu % 78.3 79.2 75.2 Cinabrio Met Recovery Ag % 74.8 76.4 73.2 Cinabrio Met Recovery Au % 65.0 65.0 65.0 Milagros Tonnes Treated 6,778 - - Milagros Copper Grade % 0.27 - - Milagros Silver Grade gr/dmt 0.49 - - Milagros Gold Grade gr/dmt 1.29 - - Milagros Concentrate dmt 107 - - Milagros Concentrate Grade Cu % 12.50 - - Milagros Concentrate Grade Ag gr/dmt 22.73 Milagros Concentrate Grade Au gr/dmt 57.36 Milagros Met Recovery Cu % 73.08 - - Milagros Met Recovery Ag % 70.12 - - Milagros Met Recovery Au % 85.50 - - Los Mantos Tonnes Treated t 14,129 1,982 5,616 Los Mantos Copper Grade % 0.41 0.30 0.40 Los Mantos Silver Grade gr/dmt 0.70 0.92 0.61 Los Mantos Gold Grade gr/dmt 1.40 1.71 1.23 Los Mantos Concentrate dmt 170 19 65 Los Mantos Concentrate Grade Cu % 10.87 9.72 8.78 Los Mantos Concentrate Grade Ag gr/dmt 39.56 68.44 33.65 Los Mantos Concentrate Grade Au gr/dmt 96.18 149.39 77.94 Los Mantos Met Recovery Cu % 32.15 30.30 25.08 Los Mantos Met Recovery Ag % 68.00 70.00 63.72 Los Mantos Met Recovery Au % 82.45 82.45 73.22 Tolling Tonnes Treated dmt 16,121 15,816 17,372 Tolling Insoluble Copper Grade % 1.75 1.83 1.62 Tolling Silver Grade gr/dmt 6.91 8.48 7.91

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2018 Source Description Units January February March Tolling Gold Grade gr/dmt 0.12 0.12 0.13 Tolling Concentrate dmt 1,074 1,115 1,049 Tolling Concentrate Grade Cu % 22.08 21.01 21.16 Tolling Met Recovery Cu % 84.0 81 79 Tolling Met Recovery Ag % 72.0 73 75 Tolling Met Recovery Au % 60.0 60 60 Third Party Tonnes Treated dmt 2,285 6,643 936 Third Party Copper Grade % 0.13 0.13 1.29 Third Party Silver Grade gr/dmt 0.50 0.57 7.22 Third Party Gold Grade gr/dmt 1.50 1.56 0.01 Third Party Concentrate dmt 20 48 51 Third Party Concentrate Grade Cu % 4.70 5.67 16.51 Third Party Concentrate Grade Ag gr/dmt 39.04 55.50 96.44 Third Party Concentrate Grade Au gr/dmt 139.26 194.76 0.09 Third Party Met Recovery Cu % 31.0 30.5 70.1 Third Party Met Recovery Ag % 68.0 70.0 73.0 Third Party Met Recovery Au % 81.0 89.4 46.6 TOTAL PRODUCTION dmt 65,327 52,742 47,707 Total Copper dmt 363 371 344

Total Silver Oz 4,640 3,783 5,365 Total Gold Oz 876 403 172 TOTAL PRODUCTION (incl. Tolling) dmt 81,448 68,558 65,079 Total Copper dmt 600 605 566

Total Silver Oz 7,219 6,948 8,659 Total Gold Oz 914 440 215 Source: MAP

24.2.3 Plant Recommendations The following are regarded as potential plant improvement projects for the future of Punitaqui. They include the recommendations of the QP (Len Holland) and his discussion and analysis of options for improvement that are currently being considered by site staff.

24.2.3.1 On-Stream Analysis The plant operates under vastly varying feed grade and mineralization. It is strongly recommended that an on-stream analyzer is purchased and installed as soon as possible to stabilize the metallurgy. It is estimated from the variation in recovery on the three hour samples that an on-stream analyzer correctly used would allow the optimization of recovery into the 75% quartile and increase copper recovery by nominally 5%.

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The staff would also be allowed to control the reagent dosage based upon feed grade and potentially reduce the reagent consumption.

24.2.3.2 Finer Primary Grind The existing two 14 ft x 20 ft ball mills could be supplemented by the two ball mills from the old plant. These additional two ball mills would add 25% additional power to the primary grind thus reducing the flotation feed size from typically 110 μm down to 72 μm. This would improve copper recovery by approximately 5%. The gold recovery would increase only marginally by 1% based upon the monthly granulometry data for April 2017.

24.2.3.3 Concentrate Regrind The 8 ft by 12 ft mill available in the old plant could be used as a regrind mill for the copper rougher concentrate. This would reduce the copper rougher concentrate sizing from typically 110 μm down to 51 μm thus improving the concentrate grade by nominally 2%.

24.2.3.4 Slag Treatment A proposal to process copper smelter slag in the plant is regarded as introducing one additional variation to the plant feed. Slag is also extremely hard, abrasive, and power intensive, and is not recommended unless it becomes the only source of feed material to fill the plant.

24.2.3.5 Increasing the Speed of the Primary Mill A proposal to increase the primary mill speed from 72% critical to 80% critical is not recommended as the mill motors are at present are on maximum loading and it is unlikely that the motor can supply the additional power from the increased speed. It is more likely that the motors will trip on over-load, and it is recommended not to change the pinion drive without a detailed discussion with the motor manufacturer. It should be noted that the additional speed will also lead to a direct proportional increase in ball and liner wear.

24.2.3.6 Hydrodynamic Reactor This unit is an unknown variable as it is a Russian design and is currently being presented by a Chilean vender. Details of the process and the “chemistry” are required for evaluation prior to any decisions made.

24.2.3.7 Finer Crushing An optional proposal discussed during the visit was to produce a finer crushed product thus increasing the tonnage to the grinding circuit. As the existing crushing plant has restrictions with respect to throughput – installing additional fine crushers is regarded as merely compounding the problem and is not recommended. The economics (Capital costs) are also regarded as unfavourable.

24.2.3.8 Crushing The present crushing plant is suitable for nominally 3,500 t/d throughput. In order to maximize the crushing circuit throughput, surge capacity is required at the secondary crusher, to control the feed to the secondary cone.

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One additional tertiary crusher is also required to allow improved utilization of the fine crushing section. The crushing circuit is adequate to produce approximately 4,000 t/d of ball mill feed at acceptable crushing plant utilizations. However, the restriction within the circuit is that the individual crushing circuits do not have a controlled feed, and as such are either running empty, or are over-loaded. Three modifications would improve tonnage throughput considerably:

24.2.3.8.1 ROM Bin To prevent the primary crusher running empty a larger ROM bin is required. The existing bin at 50 t capacity is suitable for only 15 minutes throughput.

24.2.3.8.2 TC66 Feed Bin A surge bin and a control feeder are required ahead of the secondary crusher to maximize throughput.

24.2.3.8.3 Shorthead Crushers One additional tertiary crusher will be required to allow maximum utilization if the tonnage is to be increased.

24.2.3.9 Milling

24.2.3.9.1 Primary Grinding The ball mills are operating at nominally full ball loading (37% Fill) and a relatively fast critical speed (Cs) rotation at 72% Cs. This speed will cause high mill liner and ball wear. It has been proposed that a future pinion change will produce a higher critical speed, and as such additional power will be delivered to the pinion. As the mills are operating close to their maximum power draw, the proposed change of pinion is NOT recommended. The operating costs for the mill steel consumption (balls and liners) would also increase in direct proportion to the mill speed. Calculations indicate that the mill motors and the physical mills are matched and that the motor can supply the full power available from the mills. These calculations are shown in Table 24-6, and show that Mill No.1 is operating at full load as determined from the MCC data, whilst Mill No. 2 is operating nominally 30% below its maximum power draw. This would allow a nominal 15% increase in mill tonnage based upon the operating tonnage at the time of nominal 130 t/h and a potential increase from 3,120 t/d to 3,600 t/d. Mill No. 2 is operating with a polymet liner which reduces the diameter of the mill and reduces the power available. This is normally off-set by the longer life of the polymet liner compared to steel liners. However, in Punitaqui the polymet liner life is lower than the steel liners. This is attributed to the extremely sharp breakage cleavage of the Cinabrio ore, which is cutting the rubber backing. It is logical therefore to revert back to steel liners on the next change-out.

24.2.3.9.2 Primary Grind Expansion Assuming more tonnage is required through the mills, or a finer primary grind, then it is strongly recommended to recommission the two large ball mills existing in the old milling circuit. A finer grind would generate close to an additional 5% copper recovery, while the mills could if preferred process an additional 25% tonnage.

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Based upon calculations as shown in Table 24-3, the additional power from the smaller ball mills would add an additional 27% capacity to the Punitaqui plant thus increasing the nominal tonnage from 3,200 t/d to 4,000 t/d. Optionally a finer grind of 72 μm would be achieved at the same tonnage thus improving copper recovery by nominal 5%.

24.2.3.9.3 Regrind Ball Mill The 8 ft by 12 ft “rod” mill existing in the old mill, would be ideally suited as a regrind on the copper rougher concentrate ahead of cleaning. This regrind would improve grade of the concentrate by nominally 2% copper, for a given recovery. The 8 ft x 12 ft “rod” mill has a power rating of 272 kW at the pinion. Based upon a rougher concentrate weight of 30 t/h and assuming a Work Index of 20 (similar to primary ore) then at 110 μm feed a product of nominal 51 μm would be produced. This would improve both grade, and recovery, to the concentrate. Based upon the grade-recovery by size fraction, the increase in grade for the copper would be 2%. Calculations for these estimates are provided in Table 24-12.

Table 24-12: Recovery by Size Fraction Calculations

Source: MAP

24.2.3.10 Flotation The reagent scheme is basic with specialist reagents being added as collectors. Testwork is required to investigate the use of alternate (cheaper and more powerful) reagents and to optimize the reagent scheme for the flowsheet. Feed to the flotation contains a mixture of various ores derived from various mines and locations. This culminates in a feed to the plant which is virtually unknown. Control is basic to non-existent with 3-hour

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT grab samples being assayed for float control purposes. As is evident from the plant results the grade of concentrate and the recovery to concentrate varies wildly, and results in inefficient metallurgy.

24.2.3.11 Thickening The thickening areas available for copper concentrate and tailing are suitable for the existing tonnages, but will increase substantially if a regrind is introduced to the plant. This will increase the load on the copper thickener and an assessment of the additional area requirements will be necessary through testwork. The concentrate thickener requires either a froth buster installation ahead of the thickener, or adequate sprays above the thickener surface to depress the froth on the concentrate thickener surface. This is causing solids to overflow the thickener and can cause metallurgical accounting problems if recycled in the process water ahead of the float circuit. It is difficult to understand the reason for the use of a paste thickener if not being used for back-fill in the old mine workings. This should be considered and option prior to the construction of a new tailings dam.

24.2.3.12 Filtering The Larox horizontal plate filters are more than capable of producing a low moisture content on the existing copper concentrate tonnage. The capacity available is virtually double the requirement. Concentrate storage facilities are adequate for nominally two months’ production allowing sufficient capacity if required for additional drying. With the introduction of a regrind mill into the flotation circuit the duty on the filters would be increased. However, with approximately 100% standby filter capacity a regrind circuit will not overload the filters.

24.2.4 Operating Costs The quoted operating cost for the concentrator including all power, maintenance personnel, and spares is summarized in Figure 24-22 shown below:

Figure 24-22: Operating Costs for Punitaqui Concentrator

Source: Holland & Holland

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The costs have steadily reduced from nominally US$33 per tonne milled in 2012, down to nominal US$15 per tonne milled as of February 2018 as shown in Figure 24-22.

Table 24-13: Budgeted Plant Costs for 2018 Plant (Unit Cost per Area) US$/mt Crushing 2.14 Milling 4.08 Flotation 2.89 Filtering 0.81 Tailings Dam 0.53 Laboratory 0.60 Auxiliary Services 2.29 Plant Supervision 1.64 Mechanical / Electrical Workshop Plant - Total Cost 14.97

Plant (Unit Cost per Concept) US$/mt Labour 2.51 Supplies 4.45 Services 3.13 Energy 4.88 Total Cost 14.97 Source: Holland & Holland

This reduction from $33 to $15 has been mainly due to the reduction in the unit cost of energy, coupled with a reduction in staff associated with the operations, and increased throughput. The plant operational staff was stated to be approximately 60, working on a two 12-hour shift system with a four-on, and four-off, rotation. This indicates a staff of nominally 15 people per shift to operate the total plant. This number is regarded as acceptable, if a fraction over-manned. The maintenance staff and sub-contractors working on the plant were stated to be approximately 80 people. This number is regarded as excessive for such a small operation and should be reviewed. Owing to the “general” lack of knowledge and understanding of the process plant amongst the metallurgical staff, it is likely that a reagent optimisation testwork program may define potential cost savings in the future if coupled with the introduction of an on-stream analysis system to optimise the float.

24.3 Project Infrastructure and Services The surface infrastructure supporting the operation appears to be adequate, including the following:  Administration and technical personnel offices;  Warehouses;

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 Drill core shack;  Dining room;  Maintenance facilities;  Electrical supply and distribution system;  Interior roads;  Industrial water supply;  Powder magazines for explosives storage;  A sewage system and sewage treatment plant; and  Fuel storage and dispensing. The project contains adequate office space, a sizeable core storage facility, and a comprehensive security program to restrict unlawful access to site. Power is supplied by grid from local providers. While power cost has been an ongoing concern, power supply has never been an issue. The site is accessed by paved roads that connect to the significant neighboring communities of Punitaqui (population 10,400) and Ovalle (population 113,000) and to a loading facility on the ocean. The roads connecting the operating mines are in good condition and also paved for the most of their distances.

24.3.1 Water Supply The site is always conscious of its water consumption and favours thickened tails to slurry placement partially because of the reclaim water. Mining the Milagros underground is also partly justified by the groundwater it supplies. However, the property has never run dry, so the water supply can be considered to be reliable. At present MAP is supplied by a network of four wells in the vicinity of Los Mantos Plant, authorized by the DGA for a total of 20 L/s, and distributed as follows:  Estero Well: 1 L/s  Rancho Tamaya N°1, 3 and 5 wells: 19 L/s MAP has an additional 25 L/s from another well, called "Los Mantos", dug inside the old galleries of the Milagros mine, from where "emerged water" or "miner's water" is extracted. This water, according to the Water Code and the Mining Code, belongs to the mining concessionaires, so the usage rights are beneficial to MAP. Between 2010 and 2016, the Region suffered an extreme drought, where approved wells dried up. MAP managed to overcome this difficulty by buying water from a third party (wells located at "El Ciénago" area, 9 km north of Los Mantos Plant) and building an underground aqueduct of 7.5 km leading to existing accumulation ponds. The aqueduct has sectorial permit from the DGA, but has never been reported to or permitted by the environmental authority (SEA Region of Coquimbo), which is necessary, since it is a change in the

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT approved project’s form of water supply. In the event of a new drought, MAP could use this aqueduct again, so it is essential to report this facility.

24.3.2 Tailings Disposal MAP disposes of thickened tailings, as the regulations in Chile are less stringent when permitting a thickened tailings pond versus a traditional tailings facility. Tailings are pumped in slurry form to a tailings thickener located between Tranque III and Tranque IV (see Figure 24-23). Recovered water is reclaimed from the thickener to the mill as process water. At present the operation has limited tailings capacity. The operation is currently placing tailings in Tranque IV, which recently received a permitting exemption (resolution No. 0994/2018 issued by the National Geology and Mining Service (SERNAGEOMIN) authorizing the project “Modification of the Thickened tailings dam, Minera Altos de Punitaqui” (10 April 2018). After an extensive period of SERNAGEOMIN's assessment to the modification project, and the respective responses to the observations submitted by MAP, the Service concluded that the modification project complies with the applicable mining and environmental regulations. In this sense, the project aims to modify and relocate the wall of the thickened tailings dam, which was originally approved through Exempt Resolution. No. 2243 of the SERNAGEOMIN, dated 4 September 2015. What led to the modification of the thickened tailings dam, was the earthquake that struck the project area in September 2015. The deposit sector was damaged, affecting the stability of the deposit's wall. Compared to the original design of the thickened tailing dam, the storage capacity after the modification will be lower. Consequently, the final capacity of the deposit will be 1,037,500 m3 or 1,826,000 t. The maximum accumulation rate will now be 90,000 t/mo and the useful life of the project will be 20 months. As this disposal rate is less than the mill’s capacity and permitted rate, the disposal of tailings limits production for the property until a more robust disposal facility is prepared. Tranque IV is expected to be expanded to accumulate a further 3,200,000 t providing a total useful life for Tranque IV of 50 months. The long range plan for tailings disposal is to build Tranque V. This will have capacity for ten years’ storage. The permitting process for this facility is expected to commence in October 2018. It should be noted that the first tailings facility was designed by SNC Lavalin, but subsequently all facilities have been designed by MAP. The designs are then reviewed and stamped by Chilean engineers.

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Figure 24-23: Tailings Disposal Sites

Source: MAP

24.4 Market Studies and Contracts The commodities of Punitaqui are copper, gold, and silver, all of which have universally understood and very fluid markets. An extensive marketing study is not necessary at this time, as there are no economic predictions provided in this report that must be supported by such research.

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24.4.1 Smelter Contract MAP does not have any smelting contract in place. Most concentrate is sold to Glencore’s Altonorte smelter near Antofagasta, Chile but it is able to load to ships locally and transport to any Pacific market on the spot market.

24.4.2 Royalties The Punitaqui mining project contains 50 hectares of exploitation concessions located in Coquimbo region, province of Limarí province, county of Punitaqui, Los Mantos sector currently leased from Haldeman Mining Company. A variable portion of the rent's income consist of a 3% Royalty of the Net Smelter Return (NSR) for all the years in which there is NSR in respect of the minerals produced in those concessions. The Royalty is defined, calculated and paid under the terms contained in said agreement.

24.4.3 Contracts MAP maintains contracts for underground mining, surface mining, water supply, and surface haulage. Management believes that it can improve its rates, particularly of the underground mining contract, by dividing the underground mining contractor’s contract into smaller segments for multiple operators. A review of these contracts was not conducted but none are anticipated to be outside of normal rates or conditions for such work in Chile.

24.5 Environmental Studies, Permitting and Social or Community Impacts The information relied upon for this section is extracted from “Due Diligence, Minera Altos de Punitaqui, Region of Coquimbo, Chile” dated 2 April 2018 and prepared by Gestión Ambiental Consultores S.A of Providencia, Chile (GAC) and other information provided by Xiana and MAP. JDS believes that the findings of the report are accurately reflected in this Section.

24.5.1 Permitting and Compliance The permits applicable to MAP's facilities, are those that are commonly required to develop a mining project. There are specific permits and regulatory obligations for different works, facilities and activities present in a mining project. The major permits are granted by the Environmental Evaluation Service (SEA) and the National Geologic and Mining Service (SERNAGEOMIN). MAP holds a complete list of permits duly processed and obtained before the different competent authorities, as detailed in Table 24-14.

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Table 24-14: Existing Permits and Applications Facility Environmental Permits Mining Permit

Expired in March 2017. Renewal Valid mining permit at 45,000 t/mo, but Cinabrio Mine process ongoing for a 4-year subject to environmental permit extension (extending permit to 2023) approval

Not required if production is less than Valid mining permit at 5,000 t/mo, Nova Galicia 5,000 t/mo expires 18 January 2021. Dalmacia Mine (integrated Not required if production is less than Permit for 5,000 t/mo expired on 11 with Neuvo Garcia) 5,000 t/mo July 2017. Environmental permit granted in April Milagros Mine Permit in progress at 20,000 t/mo 2018 Not required if production is less than Los Mantos Mine (Fusionada) Valid mining permit at 5,000 t/mo 5,000 t/mo Expired in May 2018. Renewal Permitted to operate at up to 3,000 Los Mantos Plant process ongoing with extension t/mo, valid until 5 February 2019. expected until 2023 Relevant permits in place for Tailngs Dam IV providing 1.8 Mt of storage capacity Tailings Dam Process ongoing for extension of permits providing additional 3.2 Mt of storage capacity Source: Xiana / GAC

24.5.1.1 Permitting Applications

24.5.1.1.1 Mining MAP intends to extend its useful life to all its facilities, (Cinabrio, Nova Galicia - Dalmacia and Milagros mines; Los Mantos Plant and also tailings dams), but this depends on environmental and sectoral permits (mining, sanitation, water, etc.). From a strictly legal point of view, and especially considering the current change of government, there is a risk that the authority could argue against "splitting" when MAP enters the DIA’s of each project separately, forcing it to present everything as a single project, with a risk that an EIA being required. Processing times would be longer than if they were submitted as parallel DIA's (at least one additional year). MAP does not believe this risk is high, due to its good relations with the local authorities and because an EIA was not triggered when processing the DIA for Milagros Mine for 20,000 t/mo operations.

24.5.1.1.2 Tailings Disposal Current environmental permits provide capacity of up to 1.8 Mt at Tailings Dam IV. MAP is in the process of expanding Tailings Dam IV by another 3,200,000 tons providing a total storage capacity of 5.0 Mt and useful life of 50 months. The process for expansion of this facility has commenced with permit submissions made in 2018.

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24.5.1.2 Sectorial Environmental Permits There is no record of any request or granting of sectorial permits from the authority for works carried out before 2010, i.e.-. by the previous owner (Cinabrio Mine - 2007, Tamaya tailings dam reinforcement - 2006 and Tailings Dam III - 2007):  PAS 136 (former 88) “Dumping of tailings or accumulation of ore”.  PAS 139 (former 90) “Works for the disposal, treatment or final disposal of industrial or mining waste”.  PAS 138 (former 91) “Drainage, treatment or final disposal of sewage and waste water”.  PAS 136 (former 88) “Dumping of tailings or accumulation of ore”.  PAS 139 (former 90) “Works for the disposal, treatment or final disposal of industrial or mining waste”. Work done by MAP after 2010 have several sectorial environmental permits approved and some of them in process, which are (“Cinabrio Mine Regularisation”, “Thickened tailings dam” and “Superelevation of Tailings dam III”):  PAS 132 (former 76) “Archaeological excavations”.  PAS 135 (former 84) “Construction and operation of tailings dams”.  PAS 139 (former 90) “Works for the disposal, treatment or final disposal of industrial or mining waste”.  PAS 138 (former 91) “Drainage, treatment or final disposal of sewage and waste water”.  PAS 161 (former 94) “Industrial qualification”.  PAS 160 (former 96) “Change of land use”.  PAS 146 (former 99) “Hunting or trapping of animals of protected species”.  PAS 155 (former 101) “Construction of certain hydraulic works”.  PAS 157 (former 106) “Works to regulate or defend natural watercourses”. There are some permits processed by MAP on which there is still no approval resolution from the DGA (hydraulic works). MAP has built those works before obtaining the approval, which has been the origin of some of the sanctions received, although it has not resulted in the suspension of work.

24.5.2 Environmental Management Measure and Voluntary Commitments Several voluntary measures and commitments have been carried out by MAP in the environmentally approved projects since 2010. These include the following:  Emissions control measures.  Bischophyte folder on alternative road to Punitaqui and access to Cinabrio mine.  Monitoring of surface water and groundwater

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 Rescue plan and cactus relocation.  Reptile rescue and relocation plan.  Annual environmental training program for workers. MAP lacks an environmental management system at its facilities and it is recommended that such a system be set up as soon as possible.

24.5.3 Closure Plans On November 2014, MAP submitted to approval into SERNAGEOMIN a closure plan for Cinabrio Mine and Los Mantos Work Area (Los Mantos plant and tailings dams), which was definitively rejected after three years of processing in October 2017. MAP hopes to re-enter it again for processing as soon as possible. Dalmacia and Milagros mines have previously been granted their respective "simplified closure plans" by the authorities (as they are operations of less than 5,000 t/mo), however, they are currently expired, although both mines are currently inactive, awaiting permits to increase their production to 45,000 t/mo and 20,000 t/mo, respectively. Nova Galicia does have a 'simplified closure plan' currently in force, but is currently in operation. As this closure plan has not been approved, the associated closing guarantees to SERNAGEOMIN have not been provided. From a strictly legal point of view, there is a risk of fines due to the lack of a closure plan, which is currently in operation. According to the provisions of Title X of Law 20.551/2015 “Regulates the closure of mining operations and facilities”, of the Ministry of Mining, MAP risks the following sanctions, according to the following paragraphs of Art. 41 of the law:  Fines of 10 UTM (US$775) for each day of infraction, with a maximum total of 10,000 UTM (US$775,475).  Temporary suspensions of operation of mining operations and facilities. Notwithstanding the foregoing, to date MAP continues to try to regularize this permit.

24.5.4 Community Relations Currently, MAP does not have any agreement in force with the communities affected by the project. In this sense, MAP states that it has good relationship with the community and its workers. The construction of Tailings Dam V will require the purchase of land that is currently privately owned. It is very likely that community engagement and citizen participation will be have to be sought as part of the permitting applications for both of these facilities. At present, there are no communities or indigenous development areas established in the surroundings of MAP facilities. However, in the development of the planned operations, territorial conflicts and negotiations may emerge.

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25 Interpretations and Conclusions

25.1 Summary Statement All the required elements for successful and profitable operations exist at Punitaqui, including:  Multiple orebodies that are well understood geologically;  Multiple mineralized targets for future exploration;  Adequate and suitable facilities and infrastructure to support ongoing operations, including a short term tailings disposal site (permitted for up to 90 kt/m with a capacity sufficient for 20 months of operations) and plans for future disposal sites;  A 3200 t/d processing plant;  A trained workforce, as well as technical and supervisory staff that are housed locally; and  Access to an adequate smelter in Chile or to an ocean loading facility for overseas shipment. The JDS team met with and discussed various aspects of the project will essentially all members of the MAP management and technical teams. All staff were cooperative and knowledgeable of the areas under their responsibilities and no immediate concerns were noted with regard to the quality of staff or their ability to execute their duties. There are several aspects of the operation that require improvement, which are enumerated throughout the report and summarized in Section 26. With the adoption of these recommendations and a commitment to continuous improvement, it is the expectation of JDS that the operation could be profitable.

25.2 Risks The most significant risk to the project is that it does not have all operating permits, and has in some instances continued to operate without permits and is regularizing all expired or incomplete permits. GAC discusses this risk as follows: It is unlikely that authorities would close the operation while the PC are in progress, or it would already have done so. As long as MAP is regularizing its applications it is unlikely that authorities would decree closure of operations. Continuing to work with its expired mining permits has been a constant situation for MAP, and the authority has never decreed closure because of this situation. In accordance with the above, MAP is regularizing its situation, which is appreciated by the authority. Apart from the usual requirements of obtaining agreements with surface rights holders, there are no significant factors or risks that may affect the access, title, or rights / ability to perform work on the property. There is a potential of civil unrest, but that has not been an issue at the site to date. The property has historically operated with a high ratio of resources to reserves, approximately 3:1. While the resources are well understood, and the property has a long history of converting resources to reserves,

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT there is always a risk that not all of the geological resources will prove mineable when applied to a mine plan.

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26 Recommendations

26.1 Permits It must be the first priority of Xiana to get all permits required of SERNAGEOMIN and SEA in place for operations at full capacity. Xiana and MAP clearly understand this and are working diligently with both authorities to accomplish a fully permitted situation and to ensure future operations are conducted under valid and current permits.

26.2 Planned Drilling Program The planned drilling for the Punitaqui project is summarized in Table 26-1and Table 26-2. All drilling costs are shown in $USD.

Table 26-1 - Punitaqui Planned Drilling – Phase 1 Project Purpose Number Hole DDH RC Total Hole of Holes Type (m) (m) Cost ($USD) Location Cinabrio Deep Extension Dev 200 265,000 Underground Cinabrio Deep Extension 5 DDH 1,500 193,500 Underground Cinabrio Footwall 20 DDH 1,500 202,500 Underground 3,200 661,000

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Table 26-2 - Punitaqui Planned Drilling - Phase 2 Project Purpose Number Hole DDH RC Total Hole of Holes Type (m) (m) Cost ($USD) Location San Andres Infill 8 DDH 2,500 317,500 Surface San Andres Extension 3 DDH 1,300 165,100 Surface San Andres Exploration DDH 2,500 355,000 Surface Dalmacia North Phase 2 18 RC 3,500 451,500 Surface Dalmacia South Phase 2 29 RC 2,300 363,400 Surface Dalmacia North Metallurgical 5 DDH 1,000 240,000 Surface Dalmacia North Geotechnical 6 DDH 1,200 192,000 Surface Milagros Resource 15 DDH 2,000 262,000 Underground Cinabrio Block 4 13 DDH 3,000 387,000 Surface Cinabrio Deep Followup DDH 2,000 288,000 Underground Cinabrio Ongoing DDH 4,000 576,000 Underground San Andres Metallurgical 4 DDH 2,000 284,000 Surface San Andres Followup DDH 8,000 1,136,000 Surface Dalmacia North Phase 2 15 RC 3,000 387,000 Surface Dalmacia North Phase 2 RC 5,000 645,000 Surface Milagros Resource DDH 11,000 1,562,000 Surface 40,500 13,800 7,611,500

26.2.1 Cinabrio The Phase 1 planned drilling at Cinabrio is focused on expanding resources available for mining. Recent sampling of the footwall Andesites in Block 4 have revealed high grade bornite mineralization which was previously unrecognised (Figure 26-1). It is difficult to quantify the potential tonnage associated with this material as only some holes have been re-assayed which have shown the mineralized interval could extend an additional 10% into the footwall. A planned drilling program of 20 holes (1,500m) has been designed to test the footwall in order to define a potential resource.

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Figure 26-1 - Block 4 Mineralization in Footwall Andesite

Table 26-2, Figure 26-2, and Figure 26-3 show the five planned diamond drill holes (1,500m) designed to test the down dip extension of the Block 0 mineralization. Drill hole CM-0-18-02 was drilled in June 2018 and it intersected 47m at .81% CuT (true width of 7.5m) below the currently defined resource and this indicates that the mineralization continues at depth. For the five planned holes, an exploration drive needs to be developed approximately 200m into the hangingwall (Figure 26-3) in order for the drill holes to be able to properly test the zone.

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Figure 26-2: Block 0 Depth Extension Planned Drilling Long Section

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Figure 26-3 - Block 0 Depth Extension Planned Drilling Section

26.2.2 San Andres The San Andres mineralization has currently been defined on 100m spaced cross sections and these need to be infilled to 50m in order to define a mineral resource. Eight surface diamond drill holes (2,500m) have been planned to infill the upper zone and potentially define a resource of 650kt (Figure 26-4). Three deeper holes (1,300m) have also been planned to extend the mineralization to the south and to test the IP chargeability anomaly which has a similar signature to the IP anomaly defined over the deeper part of Cinabrio Block 0. All drilling for San Andreas will be done as part of the Phase 2.

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Figure 26-4 - San Andres Planned Drilling

26.2.3 Dalmacia Diamond drilling at Dalmacia has been carried out on a nominal 25 m x 25 m grid spacing although this has been closed up to 12.5 m x 12.5 m in the central part of Dalmacia North. However, the mineralization is quite “poddy” in nature and although there is reasonable continuity down dip, there are instances where high grade drill holes intersections are absent in adjacent drill holes down or up dip and this highlights the need for some infill drilling as shown on cross section 10350N in Figure 26-5. The current planned program has been designed for Reverse Circulation (RC) drilling but maybe changed to diamond drilling after a structural study has been completed on the existing drill holes.

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Figure 26-5 - Dalmacia Planned Infill Drilling - Section 10350N

In preparation for the commencement of open pit mining, five metallurgical and six geotechnical diamond drill holes have also been planned at Dalmacia North. All drilling for Dalmacia is planned for Phase 2.

26.2.4 Los Mantos/Milagros Planned drilling at Los Mantos/Milagros is designed to test for depth extensions immediately below the current mining levels of the Los Mantos fault zone. Fifteen underground diamond drill holes (2,000m) have been planned on 25m spaced cross sections as shown in Figure 26-6.

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Figure 26-6 - Los Mantos/Milagros Planned Drilling - Section 6583825N

The Los Mantos/Milagros underground mineralization is completely open at depth with a single drill hole (DDH-25) intersecting the zone 200m deeper than has currently been defined. A total of 11,000m of surface diamond drilling has been planned to test the down dip extension of the mineralization on 50m spaced cross sections (see Figure 26-7). All drilling for Los Mantos/Milagros has been planned for Phase 2.

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Figure 26-7 - Los Mantos/Milagros Long Section with Planned Drilling Pierce Points

26.3 Community Engagement MAP should effort to improve its relationship with the local community, as there are several aspects of future operations that will require acceptance. This includes:  the considerable increase in traffic on the road connecting the Dalmacia Mine to the Los Mantos mill that will result from a nine-fold increase in production. This road is in close proximity to several residences that will be affected.  the displacement or relocation of a shepherd to locate a future tailings pond (Tranque VI). MAP has in general been lax towards its responsibility to keep the local population informed of its activities. Legislation passed in 2013 makes it very easy for the community to demand engagement. It would be best for MAP to be proactive in this regard rather than forced into engagement.

26.4 Environmental Management Team and Plan MAP should hire an environmental team as an integral component of operations. This team must be tasked with the following:  Evaluate and prioritize remediation requirements of site;  Understand and ensure site-wide compliance with all active permits;  Communicate permitting requirements to operations and technical staff;

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 Work with the technical team and government agencies to regularize all new permits, permit extensions, and modifications to existing permits; and  Communicate all environmental concerns with the local communities.

26.5 Comprehensive Operations Plan The company needs to prepare a business plan to direct its activities over the next three years. Currently every aspect of day-to-day operations is driven by the wrong metric: total copper content, or %CuT. This figure includes quantities of payable copper and unpayable copper which, until a recovery plan is in place, is worthless. It is also mining two gold deposits without really knowing if that is a profitable undertaking, as the economics of the copper and gold mining are blended in the same manner as the mill feed. Decisions must be made based on the NSR for each block of mining, and to be accurate, the NSR has to incorporate accurate data. As stated in Section 4.7, it is likely that even %Cui is an incorrect marker, as it likely contains additional copper mineralization that cannot be floated and therefore produces no revenue. It is likely that sulphur has to be assayed such that decisions can be based on the percentage of copper sulphides instead of the current practice. As previously discussed in Section 4.7, the current cut-off grade determinations are also “blended” with too many average rates applied, such as indirect costs. Each operation should be assessed on a stand-alone basis such that proper economic decisions can be made. As stated in Section 10.2.3, a critical part of this plan is to understand the milling process and prepare proper financial models and NSR determinations for each mine independently. The most probable outcome of the business plan is to revert the operation back to a copper sulphide operation by focusing on Cinabrio mine as the key producer. Prioritize other targets for expansion at Cinabrio by expected profit on a comparison of operating costs and NSR. The likely order is:  missed stopes at areas that are already accessed;  Block 4;  Block 4 to depth;  San Andreas;  Cinabrio to depth;  Pillar recovery on a retreat basis from the bottom of the mine;  Begin underground mining in the Dalmacia mine, which has one complete mining level already developed. Three mining levels should be capable of producing approximately 800,000 t of mill feed;  Supplement this feed with mineralized rock from surface mining at Dalmacia;  While operating as a copper sulphide miner, evaluate how to maximize economic recovery from the gold deposits. This will include metallurgical analyses and potentially modifications to the existing processing plant; and

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 Evaluate all other opportunities, such as purchasing neighboring properties or selling oxide ore, on the basis of how they fit into this business model. The following sections discuss aspects of the operation that would be expected to be addressed in this Plan.

26.5.1 Processing Plant Recovery There are several recommendation put forth for enhancing processing operations in Section 24.2.1.9, which will not be repeated here. The plant is currently being operated with the minimum of information required to process a complex varying feed, from various different sources. The current metallurgical practice is to blend the various feeds from the various mines and observe how the mill responds. Revenue is then generated from copper and from gold, but not optimally. The dichotomous nature of the operation is clearly defined by considering the production sources from 2017, the last year of operations, as shown in Table 26-3.

Table 26-3: Production Source for 2017, Stated as Percentages Mine Tonnes CuI Ag Au Cinabrio 44% 72% 79% 3% Los Mantos 39% 18% 15% 64% Milagros 17% 9% 6% 33% Source: JDS

Fully 72% of the recoverable (CuI) copper and 79% of the silver is produced by the Cinabrio mine. Alternatively, 97% of the gold is produced by the Los Mantos and Milagros operations. Tests should be conducted on the two feeds in isolation. Intuitively, specific processes could be developed such that both products could have improved recoveries with grind sizes and flotation reagents customized to the feed. This could result in increasing profits by batch milling the feeds independent of each other, running parallel circuits concurrently in the same mill, or even constructing a new mill that is specific to the gold bearing ores mill’s throughput, which would require permitting. However, there are probably more gains to be realized by increasing recoveries from the existing mill feed than by simply increasing throughput. Batching mineralized feed by mixed or sulphide could improve recoveries, particularly if the oxide mineralization could be sold separately, as discussed in Section 26.5.2. As a general statement, it is obvious that the metallurgical staff are either not communicating with the mining department or that the mining department are over-ruling the metallurgical staff in order to fill the mill with tonnes to process. This non-operation of the Milagros mine has caused a shortage of mill feed, putting pressure onto the mining mineralized rock supply, and is the likely cause of sterile material being delivered to the ROM pad. Recent Dalmacia production has resulted in virtually no copper recovery in the process plant. This is due to the total copper, less the soluble copper being assumed to be SULPHIDE copper. This assumption is not correct with the upper parts of Dalmacia containing non-flotable and non-soluble minerals, typically

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PUNITAQUI PROJECT NI 43-101 TECHNICAL REPORT chalcanthite, chrysocolla, cuprite, brochantite. diginite. Grade control in Dalmacia requires a visual assessment of mineralization and should not be solely carried out by assaying.

26.5.2 Selling the Oxide Copper Mineralized Product There is possibility of selling the copper oxide mineralized product to Enami’s SX/EW plant in Vallenar, a one-way distance of approximately five hours. The economics of this possibility have been worked out on a very preliminary basis, suggesting that it might be viable at 0.9% copper. It is unlikely that a stockpile of high grade and pure copper oxide could be created. A relatively low level of copper sulfide mixed through the pile would make it more economic to ship the material to the MAP concentrator as low grade feed instead of hauling it the vast distance to the SX/EW plant. However, this possibility should be evaluated. It is possible that the trucks used to haul the oxide mineralized product could back-haul custom sulphide mineralized product from other operations, making the venture more profitable.

26.5.3 Metallurgical Testwork

26.5.3.1 Dalmacia The available drill core samples from the Dalmacia open-pit should be tested in the metallurgical laboratory to define the outline of the “Oxide”, “Mixed”, and “Sulphide” levels of the resource, and the response to flotation.

26.5.3.2 Reagents The reagent scheme is basic with specialist reagents being added as collectors. Testwork is required to investigate the use of alternate (cheaper and more powerful) reagents and to optimize the reagent scheme for the flowsheet with specific attention being applied to the collector types, and additions.

26.5.3.3 Frothers. Various different frothers should be tested to assess the stability of the concentrate on the thickener. A more fragile frother would be recommended.

26.5.3.4 Tailing Treatment The re-treatment of old tailing is a potential source of additional feed with low treatment costs. The grade of the tailing and the economics of replacing plant feed with tailing must be evaluated economically, based upon metallurgical laboratory testwork.

26.5.3.5 Mineralogy Mineralogy work should be done to determine precisely which copper minerals are contained in the MAP deposits. The flotation assumptions used for metallurgical recoveries are suspect, which could be due to the assumption that total copper is equal to sulphide copper plus oxide copper. The reality is that there are other copper minerals that do not float and that the true formula might be:

%CuT = %CuSu + %CuOx+ %Cu NF, where NF represents other copper minerals that do not float.

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26.5.4 Underground Mine Contract Onsite management has indicated that they felt that the existing contract with Errazuriz was too costly due to the contractor’s wide provision of services, and that division into various smaller contracts might be more cost effective. This could be the case, as preliminary analysis and quotation provided by Cerro Alto, another mining contractor, have been more favorable. A thorough review of the mining contracts was not conducted. A larger concern is that the contracts are quantity based, not quality. Development drifts are paid on $/m basis and mined tonnage is paid on a $/t basis. The usual risk for mine development is adherence to bolting standards, which is not as critical for MAP, as vast sections are driven without bolting. However, when mined tonnage is paid to a contractor, dilution has a tendency to increase. No evidence was witnessed that this is happening, but this is a strong generic concern that should be evaluated for the all the company’s mines.

26.5.5 Tailings Disposal While the property has a permitted tailings disposal site, it is not permitted for full capacity operations, nor does it have sufficient capacity to support full-capacity operations for more than 50 months. Several initiatives are in place to extend the tailings storage capacity at site, as discussed in Section 24.3.2. The ongoing work to permit and construct new sites is critical to avoid disruption of ongoing mining operations and to allow for any possible mill expansion.

26.5.6 Mining Reserve With the completion of the comprehensive mine plan and additional definition drilling, the operation should prepare a reserve based on the preparation of detailed mine plans and the application of known economic data, including:  Dilution and recovery factors  Mining, processing, and general administration costs  Metallurgical recoveries  Concentrate marketability.

26.5.7 Cost of Recommendations The cost associated with the recommended drilling program is detailed in Section 26.2. All other recommendations contained in this section are expected to be executed by on-site staff using existing resources and therefore do not represent additional costs to the operating mine.

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PUNITAQUI PROJECT NI 43-101 TECHNICA REPORT

27 References

Carols Ballon (22 May 2018) “Xiana to Acquire Producing Copper Operation in Chile and Announces Financing for up to C$20 Million”, a press release issued by Xiana Mining Inc. Gensat Consultores Ambientales (May 2006), Report in support of an EIA application Cinabrio Mine. Glencore Resources & Reserves, as at 31 December 2017, downloaded from www.glencore.com JDS Mining and Energy Inc. (2018), Xiana Minas Altos de Punitaqui Due Diligence (Phase 1) Site Visit 20 to 23 February 2018 Zucconi, Alvia (1999) Compania Minera Tamaya SA Anaconda Chile Executive Summary. The following Powerpoint presentations prepared by MAP:  Minera Altos de Punitaqui Geology, December 2016  Glencore Punitaqui 2017 Budget October 2017  Minera Altos de Punitaqui Tailing Manager 2017-2032, September 2017  Minera Altos de Punitaqui Superintendencia de Mina & Planificacion, February 2018  Organizational Structure Draft, February 2018  Minera Altos de Punitaqui Plant & Maintenance, October 2017 Sernageomin, Government of Chile,”Aprueba proyecto modificación depósito de espesados, minera altos de punitaqui” de la faena minera mantos de punitaqui, ubicada en la comuna de punitaqui, provincia de limarí, región de Coquimbo, Santiago, 10 de abril 2018, Resolución exenta n° 0994/2018” (Approval of Draft Amendment for thickened tailings deposition for Punitqui Mining Site, located in the commune of Punitaqui, Limari Province, Coquimbo Region, April 10, 2018, Exempt Resolution #0994/2018 ). Gestión Ambiental Consultores S.A of Providencia, Chile (GAC) “Due Diligence, Minera Altos de Punitaqui, Region of Coquimbo, Chile” dated April 2, 2018.

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28 Units of Measure, Abbreviations and Acronyms

Symbol / Abbreviation Description ” inches Au gold CONAF National Forestry Corporation COREMA Regional Environment Commission CEA Coquimbo Region Assessment Commission Cu copper

CuI insoluble copper – which can be recovered by flotation CuT total copper – including recoverable and non-recoverable DGA National Water Authority DGMN National Mobilization Authority DIA Environmental Impact Declaration EIA Environmental Impact Study Eqv Equivalent value, converting other metals to the primary ha hectare (10,000 m2) JDS JDS Energy & Mining Inc. k kilo (thousand) kg kilogram kg/h kilograms per hour kg/m3 kilograms per cubic metre km kilometre km2 square kilometre kt kilotonne kV kilovolt kVA kilovolt-ampere kW kilowatt kWh kilowatt hour L litre L/s litres per second LG low grade LOM life of mine m metre mm millimetre

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Symbol / Abbreviation Description M million m/min metres per minute m/s metres per second m2 square metre m3 cubic metre m3/h cubic metres per hour MAP Minera Altes de Punitaqui mASL metres above mean sea level mo month MPa megapascal Mt million metric tonnes MVA megavolt-ampere MW megawatt NI 43-101 national instrument 43-101 OSA on stream analyzer oz troy ounce P.Eng professional engineer PAS Sectorial Environmental Permit PC Pertinence Consult psi pounds per square inch QA/QC quality assurance/quality control QP qualified person RCA Environmental Qualification Resolution ROM run of mine S.G. specific gravity SEC Superintendant of Electricity and Fuel SEIA Environmental Assessment System SERNAGEOMIN National Geology and Mining Service SEREMI Regional Delegation of the Ministry of Health SMA Superintendant of Environment T Imperial ton t tonne (1,000 kg) (metric ton) t/a tonnes per year t/d tonnes per day t/mo tonnes per month

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Symbol / Abbreviation Description Tranque tailings management facility US$ dollar (American) UTM universal transverse mercator V volt μm microns

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PUNITAQUI PROJECT NI 43-101 TECHNICA REPORT

29 Certificates of Qualified Persons (QPs)

CERTIFICATE OF AUTHOR

I, Richard Goodwin, P. Eng., do hereby certify that:

1. I am a Principal of JDS Energy & Mining Inc. with an office at Suite 900 – 999 West Hastings St., Vancouver, B.C. V6C 2W2, Canada. 2. This certificate applies to the technical report (Report) entitled “NI 43-101 TECHNICAL REPORT for the PUNITAQUI PROJECT located near OVALLE, CHILE” with effective date 31 July 2018. 3. I am a Registered Professional Mining Engineer in good standing in BC and Yukon. I am a graduate of the University of B.C. with a Bachelor of Applied Science degree in Mining Engineering, 1984. I have practiced my profession continuously since 1984. Relevant experience includes mine design, project engineering, study management, operations management, and executive management for mineral related properties, mines and companies. 4. I completed a personal inspection of the Punitaqui project site in February 2018. 5. I am responsible for all sections of this technical report entitled ““NI 43-101 TECHNICAL REPORT for the PUNITAQUI PROJECT located near OVALLE, CHILE”, except sections 10 through 14 and 24.2, with effective date 31 July 2018. 6. I have not had any prior involvement with the property that is the subject of this Technical Report. 7. I am independent of the issuer, Xiana Mining Inc., as defined in Section 1.5 of NI 43-101. 8. 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, and past relevant experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 9. I have read the NI 43-101 and confirm that the sections of the Report for which I am responsible, have been prepared in compliance of NI 43-101. 10. As of the effective date of the Report, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Dated this 20th day of November, 2018

[original signed by Richard Goodwin, P.Eng]

Richard Goodwin, P. Eng. Principal, JDS Energy & Mining Inc.

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CERTIFICATE OF AUTHOR I, Leonard Holland do hereby certify that: 1) I am a Principal of Holland and Holland, with an office at 9 Nevis Close, Linslade, Leighton Buzzard, Bedfordshire, United Kingdom LU7 2XD. 2) This certificate applies to the technical report (Report) entitled “NI 43-101 TECHNICAL REPORT for the PUNITAQUI PROJECT located near OVALLE, CHILE” with effective date 31 July 2018. 3) I am a Chartered Engineer with a Bachelor of Science (Hons) Extraction Metallurgy, Fellow of the Institution of Materials Mining and Metallurgy and a Fellow of the Minerals Engineering Society. 4) I have completed personal inspections of the Punitaqui project site on one occasion, the most recent of which was February 2018. 5) I am responsible for sections 12.2, 13 and 24.2 of this technical report entitled “NI 43-101 TECHNICAL REPORT for the PUNITAQUI PROJECT located near OVALLE, CHILE” with effective date 31 July 2018. 6) I have not had any prior involvement with the property that is the subject of this Technical Report. 7) I am independent of the issuer, Xiana Mining, as defined in Section 1.5 of NI 43-101. 8) 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, and past relevant experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 9) I have read NI 43-101 and confirm that the sections of the Report for which I am responsible, have been prepared in compliance of NI 43-101. 10) As of the effective date of the Report, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Dated this 20th day of November, 2018

[Original signed and sealed) “Len Holland, B.Sc., Chartered Engineer”]

Leonard Holland, B.Sc. Chartered Engineer Principal, Holland & Holland.

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CERTIFICATE OF AUTHOR

I, Ross Corben do hereby certify that:

1) I am a Principal of GEOWiZ Consulting with an office at 9 Brissenden Ave, Collaroy NSW 2097, Australia. 2) This certificate applies to the technical report (Report) entitled “Punitaqui Mine; NI 43-101 Technical Report,” with effective date 31 July 2018. 3) I am a Fellow of the AUSIMM (#110964). I am a graduate of Macquarie University with a Bachelor of Science degree in Geology, 1982. I have a Graduate Diploma in Education from Kuring-gai C.A.E in 1983 and a Graduate Diploma in Computing from Curtin University in 1988. I have practiced my profession continuously since 1984. Relevant experience includes greenfields and advanced exploration, mineral resource estimation, mine geology and production, mine design and executive management. 4) I have completed personal inspections of the Punitaqui project site on two occasions, the most recent of which was March 2018. 5) I am responsible for sections 10, 11, 12.1 and 14 of this technical report entitled “NI 43-101 TECHNICAL REPORT for the PUNITAQUI PROJECT located near OVALLE, CHILE”, with effective date of 31 July 2018. 6) I have not had any prior involvement with the property that is the subject of this Technical Report. 7) I am independent of the issuer, Xiana Mining, as defined in Section 1.5 of NI 43-101. 8) 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, and past relevant experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 9) I have read NI 43-101 and confirm that the sections of the Report for which I am responsible, have been prepared in compliance of NI 43-101. 10) As of the effective date of the Report, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Dated this 20th day of November 2018

[Original signed and sealed) “Ross Corben, B.Sc.,FAUSIMM”]

Ross Corben, B.Sc. FAUSIMM Principal, GEOWiZ Consulting.

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