ANNUAL INFORMATION FORM FOR THE YEAR ENDED MAY 31, 2016 AUGUST 31, 2016 TABLE OF CONTENTS ITEM 1 PRELIMINARY NOTES .............................................................................................................. 3 ITEM 2 CORPORATE STRUCTURE ...................................................................................................... 5 2.1 Name, Address and Incorporation ................................................................................. 6 2.2 Intercorporate Relationships ......................................................................................... 6 ITEM 3 GENERAL DEVELOPMENT OF BUSINESS ............................................................................... 7 3.1 Business Overview ....................................................................................................... 7 3.2 Summary of the Business ............................................................................................. 7 3.3 Three Year History........................................................................................................ 8 3.4 Significant Acquisition ................................................................................................. 11 3.5 Significant Dispositions ............................................................................................... 12 ITEM 4 DESCRIPTION OF THE BUSINESS ......................................................................................... 12 4.1 General ...................................................................................................................... 12 4.2 Competitive Conditions ............................................................................................... 13 4.3 Environmental and Regulatory .................................................................................... 13 4.3.1 Uruguay ...................................................................................................................... 13 4.3.2 Chile ........................................................................................................................... 15 4.3.3 Colombia .................................................................................................................... 16 4.4 Employees.................................................................................................................. 20 4.5 Risk Factors ............................................................................................................... 20 ITEM 5 PRINCIPAL PROPERTIES ....................................................................................................... 24 5.1.0 San Gregorio Gold Project .......................................................................................... 24 5.1.1 Project Description and Location ................................................................................. 25 5.1.2 Location of Ore Sources and Facilities at the SGGP ................................................... 28 5.1.3 Royalties and Agreements .......................................................................................... 28 5.1.4 Environmental Liabilities ............................................................................................. 28 5.1.5 Permitting Status ........................................................................................................ 30 5.1.6 Accessibility, Climate, Local Resources, Infrastructure and Physiography ................... 32 5.1.7 History of San Gregorio .............................................................................................. 34 5.1.8 Geological Setting....................................................................................................... 34 5.1.9 Exploration ................................................................................................................. 36 5.1.10 Mineralization ............................................................................................................. 37 5.1.11 Drilling ........................................................................................................................ 37 5.1.12 Mineral Resource and Mineral Reserve Estimates ...................................................... 40 5.1.13 Mining Operations....................................................................................................... 44 5.1.14 Underground Mining – Arenal Deeps .......................................................................... 45 5.1.15 Underground Mining – San Gregorio Deeps ................................................................ 47 5.1.16 Exploration and Development ..................................................................................... 49 5.2.0 Exploration in Chile ..................................................................................................... 53 5.2.1 Property Title in Chile.................................................................................................. 53 5.2.2 Mineral Royalty Law in Chile ....................................................................................... 53 5.3.0 Anillo Property, II Region, Chile .................................................................................. 53 5.3.1 Anillo Project Description and Location ....................................................................... 53 5.3.2 History ........................................................................................................................ 55 5.3.3 Geology ...................................................................................................................... 56 5.3.4 Exploration ................................................................................................................. 57 5.4.0 Talca .......................................................................................................................... 58 5.5.0 Anzá Project, Colombia .............................................................................................. 58 ITEM 6 DIVIDENDS ............................................................................................................................. 64 ITEM 7 DESCRIPTION OF CAPITAL STRUCTURE ............................................................................. 64 ITEM 8 MARKET FOR SECURITIES .................................................................................................... 64 8.1 Trading Price and Volume........................................................................................... 64 8.2 Prior Sales .................................................................................................................. 65 ITEM 9 DIRECTORS AND OFFICERS ................................................................................................. 65 9.1 Name, Occupation and Security Holding ..................................................................... 65 9.2 Cease Trade Order, Bankruptcies, Penalties or Sanctions .......................................... 68 9.3 Conflicts of Interest ..................................................................................................... 68 ITEM 10 LEGAL PROCEEDINGS .......................................................................................................... 69 10.1 Legal Proceedings ...................................................................................................... 69 10.2 Regulatory Actions...................................................................................................... 69 Page i of 92 ITEM 11 INTEREST OF MANAGEMENT AND OTHER IN MATERIAL TRANSACTIONS......................... 69 ITEM 12 TRANSFER AGENT AND REGISTRAR.................................................................................... 69 ITEM 13 MATERIAL CONTRACTS ........................................................................................................ 69 ITEM 14 INTEREST OF EXPERTS ........................................................................................................ 71 14.1 Name of Experts ......................................................................................................... 71 14.2 Interest of Experts....................................................................................................... 72 ITEM 15 INFORMATION CONCERNING THE CORPORATION’S AUDIT COMMITTEE AND EXTERNAL AUDITOR 72 15.1 The Audit Committee Charter...................................................................................... 72 15.2 Composition of the Audit Committee ........................................................................... 72 15.3 Relevant Education and Experience............................................................................ 72 15.4 Pre-Approval Policies and Procedures ........................................................................ 72 15.5 External Auditor Service Fees ..................................................................................... 73 ITEM 16 ADDITIONAL INFORMATION .................................................................................................. 73 ANNEXURE 1 – AUDIT COMMITTEE CHARTER ............................................................................................ 74 Page ii of 92 ITEM 1 PRELIMINARY NOTES Caution Regarding Forward-Looking Statements Certain of the statements about Orosur Mining Inc. (“OMI”, “Orosur” or the “Corporation” or the “Company”) that are not historical facts contained in this