operations

Pinto Valley Mineral Reserves & Resources

Pinto Valley Mine Estimated Mineral Reserves as at January 1, 2016

Classification Tonnes Cu Molybdenum Contained
Copper
Contained
Molybdenum
(kt) % % (kt) (kt)
Proven 350,445 0.33 0.009 1,156 33
Probable 123,720 0.25 0.008 313 9
Total Mineral Reserves 474,165 0.31 0.009 1,469 42

NOTES: John Marek, PE, President of Independent Mining Consultants, is the Qualified Person responsible for the Pinto Valley mineral reserves estimate. Economic inputs to the block model were USD$2.75/lb Cu and USD$12.50 Moly. Summation errors due to rounding.


Pinto Valley Mine Estimated Mineral Resources as at January 1, 2016

Classification Tonnes Copper Molybdenum Contained Copper Contained Molybdenum
(kt) % % (kt) (kt)
Measured 648,238 0.34 0.008 2,198 54
Indicated 772,333 0.26 0.006 1,990 48
Total Measured + Indicated Resources 1,420,571 0.30 0.007 4,188 102
Total Inferred Resources 125,961 0.25 0.005 312 6

NOTES: Garth Kirkham, P.Geo., FGC, of Kirkham Geosystems Ltd., is the Qualified Person responsible for the Pinto Valley mineral resources estimate. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources are presented inclusive of mineral reserves. Mineral resources are reported as at December 31, 2015. Mineral resources are reported above a 0.17% TCu cut-off grade. The economic assumptions for the reasonable prospects pit include: US$ 3.30/lb Cu, US$ 10.00/lb Mo, 88% Cu recovery, 50% Mo recovery, US$ 1.50/ton mining costs, US$ 1.50/ton G&A costs, US$ 5.00/ton milling costs, and a pit slope of 45°. Totals may not tally due to rounding.