operations

Cozamin Mineral Reserves & Resources

COZAMIN MINE ESTIMATED MINERAL RESERVES AS AT DECEMBER 31, 2019

Category

Tonnes

(kt)

Cu

(%)

Ag

(g/t)

Zn

(%)

Pb

(%)

Copper

Metal

(kt)

Silver

Metal

(koz)

Zinc

Metal

(kt)

Lead

Metal

(kt)

Proven

0

0.00

0

0.00

0.00

0

0

0

0

Probable

5,166

1.50

40

0.64

0.13

78

6,710

33

7

Proven + Probable

5,166

1.50

40

0.64

0.13

78

6,710

33

7

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, 2019 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/oz 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 MINE ESTIMATED MINERAL RESOURCES AS AT APRIL 30, 2020

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

698

5

2

Indicated (I)

26,051

1.63

45

1.08

0.29

425

37,993

280

75

Total M + I

26,458

1.63

45

1.08

0.29

431

38,687

285

77

Inferred

14,594

0.71

38

2.23

0.62

104

17,928

326

91

NOTE: Mineral Resources are classified according to CIM (2014) definitions, estimated following CIM (2019) guidelines and have an effective date of April 30, 2020. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The independent Qualified Person for the estimates is Mr. Garth D. Kirkham, P. Geo., FGC., of Kirkham Geosystems Ltd. Mineral Resources are reported using NSR350 formula: Cu*65.024 + Ag*0.438 + Zn*10.755 + Pb*6.981. Metal price assumptions (in US$) used to calculate the NSR for all deposits are: Cu = $3.50/lb, Ag = $18.00/oz, Zn = $1.20/lb, and Pb = $1.00/lb. An exchange rate of MX$18.50 per US$1 is assumed. The following metal recoveries are used: 95% Cu, 78% Ag, 58% Zn, 40% Pb. Totals may not sum exactly due to rounding. The NSR cut-off of US$50/tonne is based on historical mining and milling costs plus general and administrative costs. The Mineral Resources considers underground mining by long-hole stoping and mineral processing by flotation. No dilution is incorporated in the Mineral Resource. All metals are reported as contained. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Resources.