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Cozamin Mineral Reserves & Resources

Cozamin Mineral Reserve Estimate as at December 31, 2018

Category

Tonnes

(kt)

Cu

(%)

Ag

(g/t)

Zn

(%)

Pb

(%)

Copper

Metal

(kt)

Silver

Metal

(koz)

Zinc

Metal

(kt)

Lead

Metal

(kt)

Proven

-

-

-

-

-

-

-

-

-

Probable

6,050

1.58

43

0.72

0.14

96

8,293

43

8

Proven + Probable

6,050

1.58

43

0.72

0.14

96

8,293

43

8

NOTE: Tucker Jensen, P.Eng., Senior Mining Engineer 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 2018 MNFW and MNV resource block models completed by Garth Kirkham, P.Geo., FGC, Kirkham Geosystems Ltd. The Reserves are based on a $50/t NSR cut-off. The NSR formula used for the Reserves was based $2.75/lb Cu, $16/lb Ag, $1.10/lb Zn, and metallurgical recoveries of 96.5% Cu, 81% Ag, 44% Zn. The resulting NSR275 formula is ($50.707*%Cu + 0.366*Ag ppm + 7.276*Zn%)*(1-NSRRoyalty%)Note that zero value is attributed to Pb due to low concentrations. Tonnage and grade estimates include dilution and recovery allowances. The NSR royalty rate applied varies between 1% and 3% depending on the mining concession. Contained metals are reported as 100%. Figures may not sum due to rounding.

Cozamin Mineral Resource Estimate as at December 31, 2018

Category

Tonnes

(kt)

Cu

(%)

Ag

(g/t)

Zn

(%)

Pb

(%)

Copper

Metal

(kt)

Silver

Metal

(koz)

Zinc

Metal

(kt)

Lead

Metal

(kt)

Measured (M)

407

1.24

53

1.23

0.40

5

694

5

2

Indicated (I)

16,709

1.50

44

1.25

0.27

250

23,813

208

46

Total M + I

17,116

1.49

45

1.25

0.28

255

24,506

213

47

Inferred

16,922

1.11

44

1.64

0.29

188

23,902

278

49

NOTE: The Cozamin Mineral Resource estimate was completed by Garth Kirkham, P.Geo., FGC, Kirkham Geosystems Ltd., and an independent Qualified Person as defined by NI 43-101. The NSR formula used is based on $3.50/lb Cu, $18/oz Ag, $1.20/lb Zn, $1.00/lb Pb and metallurgical recoveries of 95% Cu, 78% Ag, 58% Zn, 40% Pb. The resulting NSR formula is Cu*65.024 + Ag*0.438 + Zn*10.755 + Pb*6.981. Mineral Resources are reported above $50/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. Contained metals are reported at 100%.