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Santo Domingo Mineral Reserves & Resources

Santo Domingo Project Estimated Mineral Reserves as at December 31, 2018

Reserve Category Ore Grade  Contained Metal 
 Tonnage Cu  Au Fe Cu  Au Magnetite Conc.
(Mt) (%)  (%)  (g/t)  (kt)  (koz)  (Mt) 
Proven Reserves 65.4 0.61 0.08 30.9 398 169.9 8.2
Probable Reserves 326.9 0.24 0.03 27.6 768 336.8 66.9

Total Reserves

392.3 0.30 0.04 28.2 1167 506.7 75.1

NOTE: The Mineral Reserves estimate have an effective date of November 14, 2018 and were prepared by Mr. Carlos Guzman, CMC, and employee of NCL. Mineral Reserves are reported as constrained within Measured and Indicated pit designs and supported by a mine plan featuring variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of $3.00/lb Cu, $1,290/oz Au and $100/dmt of Fe concentrate; recovery to concentrate assumptions of a maximum of 93.4% for Cu and 60.1% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper concentrate treatment charges of $80/dmt, $0.08/lb of Cu refining charges, $5.0/oz of Au refining charges, $33/wmt and $20/wmt for shipping Cu and Fe concentrates respectively; wasteminingcostof $1.75/t, mining cost of $1.75/t ore, and process and G+A costs of $7.53/t processed; average pit slope angles that range from 37.6° to 43.6°; a 2% royalty rate assumption, and an assumption of 100% mining recovery. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.


Santo Domingo Project Estimated Mineral Resources as at December 31, 2018 

Category Deposit Tonnage
(Mt)
CuEq
(%)
Cu
(%)
Au
(g/t)
Fe
(%)
Co
(ppm)
Measured  Santo Domingo Sur64 0.82 0.62 0.082 31.1 254
     Iris60.420.390.04723.6250
 Total Measured 660.810.610.08130.9254
Indicated Santo Domingo Sur224 0.54 0.31 0.043 26.6 275
     Iris1030.440.190.02725.9166
     Iris Norte890.440.120.01426.7230
 Estrellita55 0.40 0.38 0.039 13.7 125
Total Indicated417 0.48 0.26 0.034 25.0 225
Total Measured and Indicated 537 0.52 0.30 0.039 25.7 229
Inferred Santo Domingo Sur24 0.40 0.22 0.033 22.8 195
    Iris 40.420.180.02426.6125
    Iris Norte 140.450.090.00928.1256
Estrellita5 0.32 0.31 0.030 12.3 108
Total Inferred 48 0.41 0.19 0.025 23.6 197

NOTE: Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are classified according to CIM (2014) guidelines. The Qualified Person for the estimates is Mr. David Rennie, P.Eng., an associate of Roscoe Postle Associates Inc. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellita deposits have an effective date October 31, 2018. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte, and Estrellita deposits are reported using a cut-off grade of 0.125% CuEq. CuEq grades are calculated using average long-term prices of $3.50/lb Cu, $1,300/oz Au, and $99/dmt Fe. The CuEq equation is: % Cu Equivalent = (Cu Metal Value + Au Metal Value + Fe Metal Value) / (Cu Metal Value per percent Cu). The general equation for metal value is: Metal Value = Grade * Cm * R * (Price – TCRC – Freight) * (100 – Royalty) / 100, were Cm is a constant to convert the grade of metal to metal price units, R is metallurgical recovery, and TCRC is smelter treatment charges and penalties. An assessment of Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellita deposits was performedusinga Lerchs–Grossman pit shell that has the following assumptions: pit slopes averaging 45°; mining cost of $1.90/t, processing cost of $7.27/t (including G&A cost); processing recovery of 89% copper and 79% gold; selling price of $3.50/lb copper, $1,300/oz gold and $99/dmt iron concentrate. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.