VM HOLDING S.A. TECHNICAL REPORT ON THE PUKAQAQA PROJECT, HUANCAVELICA REGION, PERU NI 43-101 Report Qualified Persons: José Texidor Carlsson, P Geo. Katharine Masun, P.Geo. David M. Robson, P.Eng., M.B.A. Kathleen Ann Altman, Ph.D., P.E. Stephan Theben, Dipl-Ing., SLR Consulting (Canada) Ltd. August 4, 2017 RPA 55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 IT + 1 (416) 947 0907 www.rpacan.com www.rpacan.com Report Control Form Document Title Technical Report on the Pukaqaqa Project, Huancavelica Region, Peru Client Name & Address VM Holding S.A. rd 43 ave John Fitzgerald Kennedy, 3 Floor L-1855 LUXEMBOURG Document Reference Status & FINAL Project #2783 Issue No. Version Issue Date August 4, 2017 Lead Author José Texidor Carlsson (Signed) Katharine Masun (Signed) David M. Robson (Signed) Kathleen Ann Altman (Signed) Stephan Theben (Signed) Peer Reviewer David Smith (Signed) Project Manager Approval Luke Evans (Signed) Project Director Approval Deborah McCombe (Signed) Report Distribution Name No. of Copies Client RPA Filing 1 (project box) Roscoe Postle Associates Inc. 55 University Avenue, Suite 501 Toronto, ON M5J 2H7 Canada Tel: +1 416 947 0907 Fax: +1 416 947 0395 [email protected] VM Holding S.A. – Pukaqaqa Project, Project #2783 Technical Report NI 43-101 – August 4, 2017 Page i www.rpacan.com TABLE OF CONTENTS PAGE 1 SUMMARY ........................................................................................................................ 1-1 Executive Summary ......................................................................................................... 1-1 Technical Summary ......................................................................................................... 1-5 2 INTRODUCTION ............................................................................................................... 2-1 3 RELIANCE ON OTHER EXPERTS ................................................................................... 3-1 4 PROPERTY DESCRIPTION AND LOCATION ................................................................. 4-1 Land Tenure .................................................................................................................... 4-1 Mining Rights ................................................................................................................... 4-5 Surface Rights ................................................................................................................. 4-7 Royalties and Other Encumbrances ................................................................................ 4-8 Permitting ........................................................................................................................ 4-8 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................................................................................................. 5-1 Accessibility ..................................................................................................................... 5-1 Climate ............................................................................................................................ 5-1 Local Resources .............................................................................................................. 5-2 Infrastructure ................................................................................................................... 5-2 Physiography ................................................................................................................... 5-2 6 HISTORY ........................................................................................................................... 6-1 Exploration and Development History ............................................................................. 6-1 Historical Resource Estimates ......................................................................................... 6-3 Past Production ............................................................................................................... 6-4 7 GEOLOGICAL SETTING AND MINERALIZATION ........................................................... 7-1 Regional Geology ............................................................................................................ 7-1 Local Geology .................................................................................................................. 7-5 Property Geology ............................................................................................................. 7-7 Mineralization ................................................................................................................ 7-10 8 DEPOSIT TYPES .............................................................................................................. 8-1 9 EXPLORATION ................................................................................................................. 9-1 Historical Exploration ....................................................................................................... 9-1 Exploration Potential ........................................................................................................ 9-2 Exploration Budget .......................................................................................................... 9-5 10 DRILLING ...................................................................................................................... 10-1 Rio Tinto and Rio Tinto – Buenaventura 1997-2000 ..................................................... 10-3 Milpo/Tiomin 2004-2007 ................................................................................................ 10-3 Milpo 2011-2014 ............................................................................................................ 10-4 11 SAMPLE PREPARATION, ANALYSES AND SECURITY ............................................ 11-1 Sampling Method and Approach ................................................................................... 11-1 VM Holding S.A. – Pukaqaqa Project, Project #2783 Technical Report NI 43-101 – August 4, 2017 Page i www.rpacan.com Milpo 2011-2014 ............................................................................................................ 11-2 Density Measurements .................................................................................................. 11-3 Sample Preparation ....................................................................................................... 11-4 Milpo 2011-2014 ............................................................................................................ 11-5 Sample Analysis ............................................................................................................ 11-6 Milpo/Tiomin 2004-2007 ................................................................................................ 11-6 Milpo 2011-2014 ............................................................................................................ 11-7 Database Management ................................................................................................. 11-8 Sample Chain of Custody and Storage ......................................................................... 11-8 Quality Assurance/Quality Control ................................................................................. 11-8 12 DATA VERIFICATION ................................................................................................... 12-1 Site Visit ......................................................................................................................... 12-1 Software Validation ........................................................................................................ 12-1 RPA Audit of Drill Hole Database .................................................................................. 12-2 Historical Twin Hole Programs ...................................................................................... 12-2 13 MINERAL PROCESSING AND METALLURGICAL TESTING ..................................... 13-1 14 MINERAL RESOURCE ESTIMATE .............................................................................. 14-1 Resource Database ....................................................................................................... 14-2 Topography ................................................................................................................... 14-3 Geological Interpretation ............................................................................................... 14-3 Statistical Analysis ......................................................................................................... 14-7 Capping High Grade Values .......................................................................................... 14-8 Density ........................................................................................................................... 14-8 Compositing ................................................................................................................... 14-9 Variography and Interpolation Values ......................................................................... 14-10 Cut-off Grade ............................................................................................................... 14-13 Block Model ................................................................................................................