INFORMATION MEMORANDUM

JALAOCAMINING PROJECT

ProjectDescription

Location:Province of Aymaraes and Antabamba, Apurimac region, Peru. Inside the porphyry belt.

Area:6400 ha

Status:Carried out prospection, geophysics and geochemistry

Expected contained mineral: Cu/Mo/Au

Property:Peruvian Government

Lima

Cusco

Jalaoca

Significant growth potential and solid macroeconomic environment

Recovering metal prices and favorable global economic conditions

Peru is one of the countries with the greatest expected GDP growth among Latin American peers, mainly driven by the mining industry backed by the track record of private and public investment.

Expected inflation is the lowest among Latin American peers which is supported by one of the most recognized Central Banks.

Rising copper price with long term favorable view.

China and USA are increasing demand and reduction of inventories could boost long term prices.

Investmenthighlights

Jalaoca is a reserved area of the Government with an extension of 6400 ha in the Apurimac region, where exists a cluster of copper porphyry deposits.

The Geological, Mining and Metallurgical Institute (INGEMMET) is the Government entity that is allowed to perform prospection labors. Detailed geochemistry, geology and geophysics allowed to identify four anomalies.

Stable and known mining regulatory framework

Immediate access to infrastructure

Regulatory framework governing mining activities has been in force since 1992, which allowed the successful development of large scale projects such as Las Bambas, Magistral and Toromocho.

70% of the mining projects tendered by the Peruvian Government in the past years have started commercial operations or are in construction phase.

Proximity to other large scale mining projects offer potential shared infrastructure benefits.

Southern Peru counts with transmission grids, paved roads, large highways, railway and port.

Large available areas for exploration and located in proved mining jurisdiction near large-scale mining projects

Located within the porphyry belt with an extension of 6400 ha.

Laid between several of the largest mining projects in Peru, such as Cotabambas and Antilla (Panoro Minerals), Las Bambas (MMG), Los Chancas (Southern Copper), Trapiche (Buenaventura), Haquira (First Quantum) and Constancia (Hudbay).

PROSPECTION ACTIVITIES CARRIED OUT IN THE PROJECT

In Jalaoca, the INGEMMET has carried out regional and local studies, including sediment geochemistry, geological mapping, dating, rock sampling, IP geophysics and magnetometry. The appropriate QA/QC has been performed with control samples and certifications that certify the accuracy and quality of the data.

In the sector, the rocks are intrusive that cut the sedimentary sequence of the Ferrobamba, and correspond to the metallogenic province denominated Franja XV, of porphyries and skarns of Cu-Au-Mo. Four geochemical anomalies are defined, of which, Pucasalla and Llamoja stand out. Pucasalla zone (1 048 ha)

1. Pucasalla zone (1 048 ha)It presents consistent geochemical anomalies (62 samples) of gold, copper and molybdenum and IP geophysical anomaly >28.5 mV/V and magnetic anomaly > 24 380 nT, <24 565 nT. Hydrotermal and veinlets in skarn and porphyry rocks.

2. Llamoja zone (1 900 ha)It presents a large number of mineralized veins. Copper anomalies, over 162 samples, have values between 50 to 2630 ppb with molybdenum anomaly of 362 to 842 ppm. There arepotassic alteration in intrusive rocks, chacopirite disseminated and copper oxides on surface.

Main zones defined in Jalaoca

Source: INGEMMET

Details of nearby projects

Jalaoca has 4 sectors with alterations of Cu-Mo-Au in altered rocks, including Pucasalla and Llamoja associated with geophysical IP anomalies and magnetometry.

5 communities have been identified that are located within the area of the project.

Communities identified in Jalaoca

Source: INGEMMET

Source: INGEMMET

MAIN INFORMATION INCLUDED IN THE DATAROOM

Social studies. Technical study, including:

Geology results and analysis: Litology, alteration, mineralization. Geochemistry results and analysis: Sediment samples (49 samples),

rocks (333 samples), QA/QC. Geophysics results and analysis: IP (39 km) and Magnetometry (152 km) Relevant maps of the technical studies carried out in Jalaoca and the

targets identified.

HUÁNUCO

Lurín

ANCASH

Main companieslocated near the project

Las BambasIn production

250 000 MT/year

Los Chancas 2021US$ 1.6 billion

80 000 MT/year

Haquira 2019US$ 2.8 billion

193 000 MT/year

Cotabambas 2020US$ 1.9 billion

60 000 MT/year

Trapiche 2021US$ 1.0 billion COPPER

Infrastructure Access

ACCESS TO ELECTRICITY

The Peruvian Electrical System is composed mainly of a main grid (National Electric Power Grid – SEIN by its initials in Spanish) that consists of several interconnected transmission lines that allow the transmission of energy to almost all the departments of Peru.

Various medium and low voltage transmission lines cross the Apurímac department.

Map of the National Electric Power Grid

Source: MINEM

Transportation Access

GROUND

The access to Jalaoca is made through asphalted, affirmed and trail roads. The main path is as follows:

- Use the asphalted/affirmed road Cusco–Abancay – Chalhuanca – Caraybamba detour. Estimated time 6 hours.- Take the detour Caraybama – Jalaoca through a trail road until reaching the Project. Estimated time 2 hours.

Due to the Las Bambas mining project, several roads are being improved, including the road linking Antapaccay and Las Bambas, that allows the transportation of heavy machinery.

The section Antapaccay-Imata (location of a railway station), which has an asphalted road, has a length of 130km.

RAILWAY

Major nearby mining projects such as Las Bambas and Antapaccay use the Transandino Railway to transport ore concentrate to the port of Matarani.

PORT Matarani Port was awarded for 30 years to TISUR (Grupo Romero). During 2015, the movement of

cargo reached 3.8 million tons.

Antapacay

Imata

Transandino railway

Current access roads

Access road under upgrade

Matarani port/Arequipa

Jalaoca project/Apurimac

Regulatory Framework

FOREIGN INVESTMENT

The Peruvian government has established certain rules and special regimes to provide economic stability to new private investors. These stability rules will protect the private investor from any arbitrary change in the legal framework and conditions, reducing the interference of the government in the market.

It is important to highlight that no Peruvian law or regulation distinguishes between national and foreign investors. As a result, foreign investors receive exactly the same treatment as national investors, except for what is indicated in article 71 of the Political Constitution of Peru, which states that foreigners cannot acquire or possess by any title mines, lands, forests, waters, energy sources, among others, within 50 km of the Peruvian borders.

USE OF LAND SURFACE

ENVIRONMENTAL CERTIFICATION

It is important to consider that the concession holders are not the owners of the surface of the land.

The holder of the concession has the right to request an easement over the land of third parties, with prior compensation, so as to be able to carry out any other necessary activity.

Mining Concession holders must present and obtain the approval of an Environmental Certification that could be an Environmental Impact Declaration - DIA, a Semi-detailed Environmental Impact Assessment - EIA-sd, or a Detailed Environmental Impact Assessment - EIA-d depending on the amount of drilling platforms, the size of the interrupted area and the construction of tunnels, and/or if the mining activity is exploration or exploitation.

Depending of which Environmental Certification is required to develop mining activities, the authority in charge of the approval shall be the Ministry of Energy and Mines - MINEM or the National Environmental Certification Service for Sustainable Investment – SENACE by is initials in Spanish.

The OEFA is in charge of monitoring all the commitments.

The water rights are independent from the concession rights and are granted by the ANA.

To be able to use the water for mining activities, the Peruvian legal framework determines that the company must have an authorization for the use of the water.

USE OF WATER

The use of explosives in Peru is regulated, controlled and supervised by the National Superintendence of Control of Safety Services, Weapons, Ammunitions and Explosives for Civil Use – SUCAMEC by its initials in Spanish.

The Explosives Regulation establishes that companies which use explosives in their mining activities must observe specific rules during the placement and transport of these goods.

USE DE EXPLOSIVES

CONTRACTUAL STRUCTURE

USD 2mm % Capex PEA

USD 1mm

% Capex BFS

EXPLORATION FEASIBILITY CONSTRUCTION PRODUCTION

Contract

signing date

End of period

without guarantees

CMI

Termination if the CMI is not

accredited in the defined term

+2 years +4 years +4 years

Termination if the milestones are not completed within

the permitted timeframe plus extensions

Investment

Commitment-IC

PEA

43-101

Bankable

Feasibility

Study - BFS

Start of

production

TER

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NSI

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S

GU

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C

OM

MIT

MEN

TS

Start 24m 48m Year 7 Year 11 Year 14

To access: Accredit USD 10mm

To access: Accredit USD 10mm

USD 2mm5000 meters

USD 8mm20 000 meters

Proinversión Perú

Proinversión Perú

Proinversión Perú

Proinversión Perú

www.proinversion.gob.pe