Hochschild Mining plc Sell Side Roundtable Ignacio Bustamante, CEO Ramon Barúa, CFO Isabel Lutgendorf, Head of IR Disclaimer Some statements contained in this presentation or in documents referred to in it are or may be forward‐ looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Past performance of the Company or its shares cannot be relied on as a guide to future performance. Any forward‐looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary. 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This presentation has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation. 1 Focus on value creation • Leading precious metals producer Lake Shore Gold (35%) • Owner of 3 of the 12 largest primary silver mines in the world • Specialising in high margin, precious metal assets in the Americas • Production: 66% Ag, 34% Au Mercurio • Operations in Peru, Argentina and Mexico Gold Resource Corp (30%) Moris (100%) • Mine operators for over 40 years Astana Farallon • Flagship mine Arcata in production since 1964 Josnitoro • 2010 production: 26.3 moz Ag Eq Crespo Ares (100%) Azuca • Mine life of 7.9 years and growing Inmaculada Arcata (100%) • FTSE 250 with market cap over US$1.9bn Cerro Blanco Pallancata (60%) Sabina • Financial net debt of $168m as of June 2010 Victoria Current operations • Project pipeline Strategic investments • $50 million exploration budget in 2010 Exploration projects • Actively drilling projects in Peru, Mexico and Chile Offices Mosquito San José (51%) Los Pinos 2 Mission & Vision MISSION “We are a precious metals mining company focused on the Americas , working with excellence, social responsibility and the highest environmental and safety standards, achieving high profitability , sustained growth and creating shareholder value ” VISION “Become the market leader in shareholder returns, work environment and safety” 3 HOC social commitment Environment: • ISO 14001 Arcata certified. San Jose and Pallancata to achieve certification by 1Q11 • Environmental Management Plan in operations and projects • Constant monitoring through Critical Performance Indicators Safety: • DNV certification started in 2008, in process to achieve Level 5 at Arcata, Pallancata and San Jose • Frequency Index currently at 3.7 Community relations: • Programmes focused on health, education and infant nutrition with an annual US$10m budget – Mobile Hospital – Over 20 schools and 1,000 students supported – Alpaca genetic improvement program 4 Strategy ‐ pillars for growth • Optimise life of mine at main operations ‐ Arcata ‐ San José 1 Core Assets • Increase productivity ‐ Pallancata • Cost control • Fund exploration through largest ever budget ‐ Company Exploration • Maximise economies of scale by targeting makers 2 opportunities within clusters ‐ Company • Strategic project pipeline maintainers • Focus on early stage projects with high geological ‐ Strategic 3 Corporate Development potential and clear path to control Investments 5 1 Current operations ARCATA, Peru PALLANCATA, Peru SAN JOSÉ, Argentina Main operations 11.3 MOZ AG EQ 10.3 MOZ AG EQ 9.6 MOZ AG EQ ARES, Peru MORIS, Mexico Smaller, ageing mines 3.5 MOZ AG EQ 1.8 MOZ AG EQ GRC, Mexico LAKE SHORE GOLD, Canada Strategic investments 70 KOZ AU ‐ Target 150 KOZ AU ‐ Target •Production figures relate to full year 2009 and are based on 100% production 6 • Lakeshore and GRC’s production targets are based on public data and refer to 2011 (LSG) and the first 12 months of production (GRC) 1 More than doubled capacity since the IPO Throughput capacity (tonnes per day) 157% 7,190 7,190 4,890 2,800 2006 2007 2008 2009 tpd 2006 2007 2008 2009 Ares 800 940 940 940 Arcata 1,000 1,200 1,750 1,750 Pallancata 1,000 2,000 3,000 3,000 San José ‐ 750 1,500 1,500 7 1 Focus on increasing resource life 1 Arcata 8.3 7.4 6.4 • LOM expected to 34% increase further by the end of the year FY08 FY09 H110 • Reserve cut‐off grades Pallancata 7.9 applied to resources 7.0 6.2 7.1 5.2 5.9 • High conversion rate from resources to reserves FY08 FY09 H110 San Jose 8.9 8.4 FY08 FY09 H110 6.2 FY08 FY09 H110 1 Arcata, San Jose, Pallancata. 8 Resources includes reserves 2 Exploration –existing strategy is successful • Historically we have focused on epithermal low World's Leading Primary Silver Mines in 2009 sulphidation veins (millions of ounces) • These deposits contain on average 60% Ag ‐ 40% Au Mine/Country Production in value, characterised by high grade, low tonnage 1 Fresnillo, Mexico 35.4 2 Cannington, Australia 33.8 ore bodies with annual production between 5 –10 3 Dukat, Russia 11.8 million Ag eq oz/year 4 Gümüsköy, Turkey 11.2 5 Uchucchacua, Peru 10.6 • Typically they are mined underground and have 6 Arcata, Peru 9.5 limited formal mine life 7 Pallancata, Peru 8.4 8 San Bartolomé, Bolivia 7.5 • Some exceptions (e.g. Vanguardia: 10m Au eq oz, 9 Greens Creek, U.S. 7.5 Peñon: 12m Au eq oz, Fresnillo: 20m Au eq oz), but 10 Imiter, Morocco 6.8 on average these type of deposits have 2‐3m Au eq 11 Alamo Dorado, Mexico 5.3 12 San José, Argentina 5.0 oz Source: Silver Institute's World Silver Survey 2010 publication HOCHSCHILD OWNS 3 OF THE TOP 12 LARGEST SILVER MINES GLOBALLY 9 2 Exploration – adding potential • We will continue to focus on epithermal low sulphidation veins (company maintainers) • We are also pursuing epithermal high sulphidation disseminated deposits & Copper (Au) Porphyries (company makers) ‐ More frequent geological occurrence especially in Peru, Chile, Mexico ‐ Typically higher EBITDA margins and NPV per ounce ‐ Relatively simple open pit operations when compared to current underground mining activities ‐ Higher gold component & longer mine life = higher market multiples Exploration Typical HOC focus Average EBITDA by Deposit Type operations 350 30 Average EBITDA / yr # of deposits 300 25 250 20 200 15 150 10 100 of# deposits EBITDA (US$ / (US$ yr) EBITDA 50 5 0 0 VMS IOCG Carl in Porphyry Epithermal porphyry) Paleoplacer Intermediate Sulphidation Orogenic BIF Sulphidation Intrusive (non- Sulphidation Orogenic Orogenic Replacement Epithermal Low Epithermal High Epithermal Skarn/Carbonate Epithermal Alkalic Epithermal Turbidite/Black S… Greenstone/Volcanic 10 Source: Metals Economics Group (www.metalseconomicsgroup.com) 2 Looking for deposits with longer LOM 100 75 Reserve LOM Resource LOM LOM for Epithermal Low Sulphidation Veins (ELS) 50 years type deposit 25 Average = 10.7 yrs - La San Mina Ares Pogo Co-O Topia Rossi Silver Cubo- Lucky Martha Julcani Arcata Diablito Huaron Greens Zaruma Bolanos Fresnillo Antapite El Penon El Colombia Caylloma Pimenton San Jose San Troy Mine Ishihuinca Quiruvilca N. Senora Kettle R-B Kettle Pallancata San Dimas San Encantada Martin San Guanacevi Shila-Paula Recuperad La Cienega Morococha Guanajuato Guanajuato 100 75 Reserve LOM Resource LOM LOM for Epithermal High 50 Sulphidation Veins (ELS) years & Au (Cu) Porphyry 25 Average = 17.8 yrs - Ity Voro Morila Siguiri Wharf Sukari Ahafo Choco Pierina Hidden Central Penjom Kumtor Bonikro Reefton Kalsaka Chatree Kemess Angovia Ruby Hill Corrales La Coipa C Creek- Chapada Gedabek Laverton Soledad- Middelvei El Castillo Andacollo Navachab Samira Hill Maricunga Sadiola Hill Sadiola El Chanate El North Mara North Boddington La Libertad Bereznyaki Lega Dembi San AndresSan Bronzewing Sukhaybarat Bogoso/Pres Maikainzoloto La Herradura Berezitovoye Lefa Corridor 11 Source: Metals Economics Group (www.metalseconomicsgroup.com) 2 Greater gold exposure Market Gold Silver Approx. Market Size in Au Eq. (Ag Eq.) 90 Moz Au (5.4 Boz Ag) 700 Moz Ag (12 Moz Au) Market Value in US$ US$ 81 Billion US$ 8 Billion # of Primary Deposits 660 Au mines 59 Ag mines (% of Tot. Prod.) (90% of Tot. Prod.) (35% of Tot. Prod.) Source: Metals Economic Group (MEG), Mar 2009 Note: Prices used for calculations, Gold US$900/Oz and Silver US$12.0/Oz • Gold universe has less ounces, but represents a higher value 12 2 We are in the right location HSE Au Pueblo Viejo (38.9 Moz) Porphyries Lagunas Norte (13.7 Moz) Yanacocha (46.7 Moz) Cerro Corona (4.4 Moz) Pierina (8.7 Moz) Marte-Lobo (6.5 Moz) Pascua Lama (37.4 Moz) Veladero (20.0 Moz) Andacollo (10 Moz) Cerro Casale (33.0 Moz) • These deposit types occur geographically in the Andes of Chile and Peru and “opening up the field” is consistent with our cluster strategy • We have experience with HSE deposits (Sipan) • Our acquisition of SWG has given us exposure to Cu (Au) porphyries in southern Peru in at least 3 early stage targets 13 2 SUMMARY: Company makers and maintainers COMPANY MAKERS • Hochschild produces