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Cozamin Mineral Reserves & Resources

Cozamin Mine Estimated Mineral Reserves as at December 31, 2017

 ClassificationTonnes  Cu Ag Zn Pb Contained
Copper 
Contained
Silver
Contained
Zinc 
Contained
Lead
 (kt)(%) (g/t) (%) (%) (kt) (koz) (kt) (kt) 
Copper Zone - San Roberto
Proven122 1.42570.830.33     222310
Probable1,1390.95451.440.40111,659165
Total1,2611.00461.380.40131,882175
Copper Zone - Mala Noche Footwall
Proven1251.81330.630.032133     10
Probable 1,8912.15450.280.02412,75950
Total2,0162.13450.300.02432,89260
Total - Copper Zones
Proven2471.62450.730.18435620
Probable3,0301.70450.710.17524,418225

Total Mineral Reserves

3,277

1.69450.720.17564,774235


NOTES: Pooya Mohseni, P.Eng., Director of Technical Services at Capstone Mining Corp., is the Qualified Person for the Cozamin Mineral Reserve. Disclosure of the Cozamin Mine Mineral Reserves as of December 31, 2017 was completed using fully diluted mineable stope shapes generated by the Maptek Vulcan Mine Stope Optimizer software and estimated using the 2016 MNFW and 2017 MNV resource block models created by J. Vincent, P.Geo., of Capstone Mining Corp. The Reserves are based on a US$ 42/t NSR cut-off. The NSR formula used for the Reserves was based US$ 2.50/lb Cu, US$ 20/lb Ag, US$ 1.0/lb Zn, MEX 18.5 to USD 1.0, and metallurgical recoveries of 94.5% Cu, 72% Ag, 70% Zn. The resulting NSR formula is $42.425*%Cu + 0.364*Agppm + 8.123*Zn%. Note that zero value is attributed to Pb because the circuit is expected to be used minimally due to low Pb concentrations. 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, 2017 – Inclusive of Mineral Reserves

Classification

Tonnes
(kt)
Grade Contained Metal 
Cu  Ag Zn Pb Cu  Ag  Zn  Pb 
(%)  (g/t) (%) (%) (kt)  (koz)  (kt)  (kt) 
Copper Zone - San Roberto
Measured4041.24541.230.40569552

Indicated

3,0711.03441.640.39324,3895012

Measured + Indicated

3,4751.05461.590.39375,0845514

Inferred

3,9310.69371.560.14274,705616
Copper Zone - Mala Noche Footwall

Measured

1682.40420.740.04422810

Indicated

2,4442.56530.430.03634,176111

Measured + Indicated

2,6122.55520.450.03674,404121

Inferred

5,0111.71360.530.03865,876272
Total - Copper Zones

Measured

5721.58501.090.29992362

Indicated

5,5151.71481.100.23948,5646113

Measured + Indicated

6,0871.70481.100.241039,4886714

Inferred

8,9421.26370.980.0811310,581887
Zinc Zone - San Roberto Zinc

Measured

---------
Indicated 356 0.18293.760.701334132
Measured + Indicated 356 0.18293.760.701334132
Inferred 751 0.10233.380.391562253
Zinc Zone - San Rafael

Measured

---------

Indicated

2,2090.28463.590.5463,2347912

Measured + Indicated

2,2090.28463.590.5463,2347912

Inferred

3,4760.23363.160.3383,973110

11

Total - Zinc Zones
Measured --------
Indicated 2,565 0.27433.610.5673,5679314
Measured + Indicated 2,565 0.27433.610.5673,5679314
Inferred 4,227 0.21333.200.3494,53513514
Total Mineral Resources (Copper + Zinc Zones)
Measured 572 1.58501.090.29992362
Indicated8,080 1.25471.900.3410112,13115427
Measured + Indicated8,652 1.27471.850.3311013,05516029
Inferred 13,169 0.92361.690.1612215,11622321


NOTES: The Cozamin Mineral Resource estimate was completed by Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, and a Qualified Person as defined by NI 43-101. The NSR formula used for reporting the San Roberto and MNFW zone Mineral Resources is based on US$ 2.50/lb Cu, US$ 20/lb Ag, US$ 1.00/lb Zn, MEX 18.5 to USD 1.0, and metallurgical recoveries of 94.5% Cu, 72% Ag, 70% Zn. The resulting NSR formula is $42.426*%Cu + 0.364*Agppm + 8.123*Zn%. Note that zero value is attributed to Pb because the circuit is expected to be used minimally due to low Pb concentrations. The NSR formula used for reporting the San Rafael and San Roberto Zinc zone Mineral Resources is based on US$ 2.50/lb Cu, US$ 20.00/oz Ag, US$ 1.00/lb Zn, US$ 0.90/lb Pb with recoveries of 90% Cu, 74% Ag, 79% Zn, and 76% Pb. It also assumes a 3:1 blending ratio of ore from San Roberto and MNFW zones with ore from the San Roberto Zinc and San Rafael zones. Mineral Resources are reported above US$ 35/t NSR cut-off. Mineral Resources are presented inclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Figures may not sum due to rounding.