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Pinto Valley Mineral Reserves & Resources

Pinto Valley Mine Estimated Mineral Reserves as at January 1, 2017

Classification Tonnes Cu Molybdenum Contained
Copper
Contained
Molybdenum
(kt) % % (kt) (kt)
Proven 332,489 0.33 0.009 1,090 31
Probable 122,759 0.25 0.008 312 9
Total Mineral Reserves 455,248 0.31 0.009 1,402 41

NOTES: John Marek, PE, SME-RM, of Independent Mining Consultants, Inc., is an independent Qualified Person responsible for the preparation of the Mineral Reserves estimate disclosed in the Pinto Valley Mine Life Extension - Phase 3 (PV3) Pre-Feasibility Study NI 43-101 Technical Report, with an effective date of January 1, 2016. Economic inputs to the block model were USD$2.75/lb per pound copper, USD$12.75/lb Molybdenum. For the purposes of reporting mineral reserves going forward from January 1, 2017, an average cut-off grade of 0.175% Cu has been used, as it closely approximates the variable 0.17-0.18% Cu cut-off presented in the PV3 Pre-Feasibility NI 43-101 Technical Report. Proven mineral reserves include 282 kt of stockpiled material. Calculation of mine depletion during 2016 was overseen by Patricia Maloney, SME-RM, Superintendent of Mine Engineering at Pinto Valley, and a Qualified Person as defined by NI 43-101.


Pinto Valley Mine Estimated Mineral Resources as at January 1, 2017 –
Inclusive of Mineral Reserves

Classification Tonnes Copper Molybdenum Contained Copper Contained Molybdenum
(kt) % % (kt) (kt)
Measured 627,288 0.34 0.008 2,120 50
Indicated 773,652 0.26 0.006 1,994 46
Total Measured + Indicated Resources 1,400,940 0.29 0.007 4,114 97
Total Inferred Resources 126,250 0.25 0.005 312 6

NOTES: Garth Kirkham, P.Geo., FGC, of Kirkham Geosystems Ltd., is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate disclosed in the Pinto Valley Mine Life Extension - Phase 3 (PV3) Pre-Feasibility Study NI 43-101 Technical Report, with an effective date of January 1, 2016. Mineral resources are presented above a 0.17% Cu cut-off. Calculation of mine depletion during 2016 was overseen by Jeremy Vincent, P.Geo. Small increases in Indicated and Inferred tonnage as at December 31, 2016 in comparison to the resources stated as at January 1, 2016 are due to subtle reporting differences in the modelling software packages used at Pinto Valley and by Kirkham Geosystems Ltd. This difference is not material. Measured Mineral Reserves include 282 kt of stockpiled material.