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Cozamin Mineral Reserves & Resources

Cozamin Mine Estimated Mineral Reserves as at December 31, 2015

 Classification Tonnes    Cu  Ag  Zn  Pb  Contained
Copper 
Contained
Silver
Contained
Zinc 
Contained
Lead
 (kt) (%)  (g/t)  (%)  (%)  (kt)  (koz)  (kt)  (kt) 
Copper Zones - San Roberto and Mala Noche Footwall
Proven 363 1.45 26 0.32 0.02 5 307 1 0
Probable  6,850 1.51 43 0.74 0.18 103 9,459 50 12
San Rafael - Zinc Zone
Probable  -      - - - - - - -
Stockpiles
Proven 3   1.50 47 0.77 0.11 0 4 0 0

Total Mineral Reserves

7,216

1.50 42 0.71 0.17 109 9,769 52 12

NOTES: Allan Schappert, SME-RM, of Stantec Consulting LLC, is the Qualified Person for the Cozamin mineral reserve estimates. Disclosure of the Cozamin Mine mineral reserves as at December 31, 2015 above a US$ 42.00/t NSR cut-off was completed under the supervision of Jeremy Vincent, P.Geo., Manager, Production and Development Geology at Capstone, and a Qualified Person. Metal prices used in the mineral reserve estimate for copper, silver, zinc, and lead, respectively are US$2.50/lb, US$20/oz, US$0.80/lb and US$0.85/lb. Stockpiles are treated as Proven mineral reserves. The exchange rate used is MEX12.50 to US$1.00. Tonnage and grade estimates include dilution and recovery allowances. Figures may not sum due to rounding.

Cozamin Mine Estimated Mineral Resources as at December 31, 2015

Classification

Tonnes
(kt)
Grade  Contained Metal 
Cu    Ag  Zn  Pb  Cu    Ag    Zn    Pb 
(%)    (g/t)  (%)  (%)  (kt)    (koz)    (kt)    (kt) 
Copper Zones (San Roberto and Mala Noche Footwall)
Measured 402 2.50 43 0.51 0.03 10 562 2 0

Indicated

8,358 1.93 56 1.06 0.23 161 15,167 89 19

Measured + Indicated

8,760 1.95 56 1.04 0.22 171 15,729 91 19

Inferred

7,558 1.55 38 0.58 0.06 117 9,214 44 5
Zinc Zone (San Rafael)

Indicated

2,072 0.28 42 3.33 0.45 6 2,818 69 9

Inferred

1,327 0.15 33 3.28 0.69 2 1,425 44 9
Stockpiles

Measured

3 1.50 47 0.77 0.11 0 4 0 0
Total Mineral Resources

Measured

405 2.49 44 0.51 0.03 10 566 2 0

Indicated

10,430 1.60 54 1.51 0.27 167 17,985 158 29

Total Measured + Indicated Resources

10,834 1.63 53 1.47 0.27 177 18,551 160 29

Total Inferred Resources

8,885 1.34 37 0.99 0.16 119 10,639 88 14


NOTES:
Ali Shahkar, P.Eng., of Lions Gate Geological Consulting Inc. is the Qualified Person responsible for the San Roberto zone mineral resources estimate. Robert Sim, P.Geo., of SIM Geological Inc., is the Qualified Person for the San Rafael zone mineral resources estimate. Jeremy Vincent, P.Geo., Manager, Production and Development Geology at Capstone, is the Qualified Person responsible for the Mala Noche Footwall zone mineral resources estimate and for the disclosure of the Cozamin Mine mineral resources reported as at December 31, 2015. The mineral resources are reported above a NSR of US$ 35/tonne using respective metal prices for copper, silver, zinc, and lead of US$ 2.50/lb, US$ 20.00/oz, US$ 0.80/lb, and US$ 0.85/lb. Processing recoveries used to calculate the NSR cut-off for the San Roberto zone Mineral Resources are based on historical site operating experience reflecting recoveries of: Cu=92%, Ag=72%, Zn=69%, and Pb=64%. The MNFW zone Mineral Resources model uses recoveries of: Cu=94%, Ag=58%, Zn=72%, and Pb=0% (lead concentrate not scheduled to be produced in 2016)Processing recoveries used to calculate the NSR COG for the San Rafael Mineral Resources are based on laboratory results reflecting recoveries of: Cu=41%, Ag=32%, Zn=84% and Pb=65%. Stockpiles are treated as Measured mineral resources. Mineral resources are presented inclusive of mineral reserves. Exchange used is MEX 12.50 to US$ 1.00. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Figures may not sum due to rounding. Mineral resources are reported inclusive of mineral reserves.