Mining Resources Annexed 1.

Resources Mining Concessions (Colorada and Mejía)

VEIN
BLOCK MT Au Ag Cu Pb Zn
1 1,366,375 3.065 0.373 0.639 0.683 0.612
2 714,749 2.820 0.358 1.407 0.427 0.372
3 448,475 2.054 0.119 0.176 0.452 0.341

4 422,265 2.553 0.142 0.626 1.564 3.469 SUMMARY

5 353,293 5.536 0.090 0.615 0.303 0.491 TOTAL US $
6 215,486 5.748 0.133 0.575 0.532 0.682 Percentage %
7 152,454 2.331 0.350 0.380 0.321 0.530 2,582,252,408
Total / Weighted 3,673,097 3.200 0.270 0.714 0.646 0.850

BODY
BLOCK MT Au Ag Cu Pb Zn
1 3,150,714 3.853 0.139 0.542 0.730 0.382 Resources M
2 1,646,502 2.347 0.156 0.058 5.001 2.160
3 929,191 2.145 0.255 0.752 2.061 3.406
4 790,471 3.273 0.346 1.603 n/a n/a 25
5 592,235 2.950 0.212 3.378 0.802 4.938 224,759,04
6 356,000 4.286 0.201 2.382 0.189 0.178 5
7 679,862 1.621 0.069 1.280 0.357 0.256
405,228,812
Total / Weighted 8,144,975 3.064 0.178 0.919 1.799 1.507

Summary
ZONA MT Au gr/TM Ag kg/TM Cu % Pb % Zn %
VEIN 3,673,097 3.200 0.270 0.714 0.646 0.850
BODY 8,144,975 3.064 0.178 0.919 1.799 1.507
Total / Weighted 11,818,072 3.106 0.207 0.855 1.441 1.303

GENERAL SUMMARY RESOURCES VEIN AND BODY (ADJUSTED)

ZONE MT Au gr/MT Ag kg/MT Cu % Pb % Zn %
VEIN 3,673,097 2.560 0.216 0.557 0.517 0.680

BODY 8,144,975 2.270 0.142 0.735 1.253 1.086

Total / Weighted 11,818,072 2.360 0.165 0.680 1.024 0.960

Unit MT Gramos Kilos MT MT MT

Gross Fine Content 11,818,072 27,892,222 1,949,975 80,325 121,046 113,431

International Prices US$/Oz US$/Oz US$/Lb US$/MT US$/MT

Date 6-7-2018 1,254.20 15.995 2.8604 2,321.00 2,758.00

Valorization Metallic Content US$/gr US$/kg US$/MT US$/MT US$/MT

Quotation Total US $ 40.32 514.25 6,306.10 2,321.00 2,758.00
US$ 3,227,815,510 1,124,710,219 1,002,776,426 506,536,015 280,948,806 312,844,044

Recovery Aprox. % Au Ag Cu Pb Zn
80 80 80 80 80
Value US$ 2,582,252,408 899,768,175 802,221,141 405,228,812 224,759,045 250,275,235
Percentage 100% 34.84 31.07 15.69 8.70 9.69
Au + Ag + Cu + Zn + Pb = Equivalent Oz Au = 2,058,884
Equivalent Oz Ag = 161,441,226

US$ 2,107,218,127 899,768,175 802,221,141 405,228,812

 Au + Ag + Cu = Equivalent Oz Au = 1,680,129

Au Ag Cu Pb Zn
899,768,175 802,221,141 405,228,812 224,759,045 250,275,235
 Annexed 1.2

SUMMARY of RECOVERIES in US$

Au Ag Cu Pb Zn
34.84 31.07 15.69 8.70 9.69
899,768,175 802,221,141 405,228,812 224,759,045 250,275,235

Resources Mines of San Nicolas (US$)

250,275,235
224,759,04 899,768,175 Au
5
Ag
405,228,812
Cu
Pb
802,221,141
Zn

Data for Calculations

Internacional Prices 6-Jul-18
Au us$/oz Ag us$/oz Cu us$/lb
1,254.20 16.00 2.86
Standard Recoveries %
80 80 80
MT Reserve 18,000,000
 SULPHIDE TAILINGS
Au g/mt Ag g/mt Cu%
Head Grades 3.60 107.25 0.31
Recoveries % 80.00 80.00
Recovered metals 2.88 85.80

International Prices US$/oz US$/oz US$/lb

7/6/2018 1,254.20 16.00 2.86
Valuation at 100% Metal Content US$ 116.13 44.12

Sales Value at XX% of Metal Content 80.00 80.00

Sales Value in US$ 92.91 35.30

Total Sales Value in US$ 128.20
Expected Costs
Mine 0.00
Plant 25.00
Other Direct Variable Expenses 20.00
Total Variable Costs US$ 45.00

Gross Profit US$ per MT 83.20

Other Direct Fixed Costs: Includes Personal, Services, internal

and external transport, etc.
Annual Fixed Costs / Income Tax
Estimated investment US$ 2,000,000.00
Fixed Monthly Costs US$ 100,000.00
Annual Fixed Cost US$ 1,200,000.00
Income Tax% 27.00
 Year 1
Thick figures Operation Sulphide Tailings Treatment
Plant Capacity MT 400
Monthly Treatment (25-day month) 10,000.00
Annual Treatment 120,000.00
Annual Sale in US$ 15,384,404.71
Direct Variable Cost in US$ 5,400,000.00
Gross Profits Tailings Operation 9,984,404.71

Year 2
Thick figures Operation Sulphide Tailings Treatment
Plant Capacity MT 400
Monthly Treatment (25-day month) 10,000.00
Annual Treatment 120,000.00
Annual Sale in US$ 15,384,404.71
Direct Variable Cost in US$ 5,400,000.00
Gross Profits Tailings Operation 9,984,404.71

Gross Profits Operation Sulphide Tailings Treatment US$

19,968,809.43

Cash Flow
Year 0
Balance
Sales Income
Expences
Investment Equipment + Working Capital 2,000,000.00
Variable Cost
Fix Cost
Gross Profit
Income Tax
Net Profit

-2,000,000.00
IRR % 300.66
Cash Flow
Year 1 Year 2 Year 3
0.00 6,412,615.44 12,825,230.88
15,384,404.71 15,384,404.71

5,400,000.00 5,400,000.00
1,200,000.00 1,200,000.00
8,784,404.71 8,784,404.71
2,371,789.27 2,371,789.27
6,412,615.44 6,412,615.44

6,412,615.44 6,412,615.44
 Ore Mine
Au g/tm Ag g/tm Cu%
Head Grades 2.36 165.00 0.68
Recoveries % 80.00 80.00 80.00
Recovered metals (x MT) 1.89 132.00 0.54

International Prices US$/oz US$/oz US$/lb

06/07/2018 1,254.20 16.00 2.86

Valuation at 100% Metal Content US$ 76.13 67.88 34.29

Sales Value at XX% of Metal Content 80.00 80.00 70.00

Sales Value in US$ 60.91 54.30 24.00

Total Sales Value in US$ 139.21

Expected Costs
Mine 15.00
Plant 25.00
Other Direct Variable Expenses 20.00
Total Variable Costs US$ 60.00

Gross Profit US$ per MT 79.21

Annual Fixed Costs / Income Tax

Estimated Investment US$ 20,000,000.00
Fixed Monthly Costs US$ 250,000.00
Annual Fixed Cost US$ 3,000,000.00
Income Tax % 27.00
 Annual Result
Thick Figures Treatment Operation Ore Mine
Plant Capacity MT 3,000.00
Monthly Treatment (25-day month) 75,000.00
Annual Treatment 900,000.00
Annual Sale in US$ 125,293,403.07
Direct Variable Cost in US$ 54,000,000.00
Gross Profits Ore Mine Operation 71,293,403.07
Result x 20 years
Sales x 20 Years US$ 2,505,868,061.32
Direct Variable Cost in US$ 1,080,000,000.00
Gross Profit x 20 years US$ 1,425,868,061.32

Cash Flow
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Balance 0 49,854,184 99,708,368 149,562,553 199,416,737

Sales Income 125,293,403 125,293,403 125,293,403 125,293,403 125,293,403

Expences
Investment Equipment + Working Capital 20,000,000

Variable Cost 54,000,000 54,000,000 54,000,000 54,000,000 54,000,000

Fix Cost 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000

Gross Profit 68,293,403 68,293,403 68,293,403 68,293,403 68,293,403

Income Tax 18,439,219 18,439,219 18,439,219 18,439,219 18,439,219

Net Profit 49,854,184 49,854,184 49,854,184 49,854,184 49,854,184

Investment -20,000,000 49,854,184 49,854,184 49,854,184 49,854,184 49,854,184

IRR % 249
Cash Flow
Year 6 Year 7 Year 8 Year 9 Year 10

249,270,921 299,125,105 348,979,290 398,833,474 448,687,658

125,293,403 125,293,403 125,293,403 125,293,403 125,293,403

54,000,000 54,000,000 54,000,000 54,000,000 54,000,000

3,000,000 3,000,000 3,000,000 3,000,000 3,000,000

68,293,403 68,293,403 68,293,403 68,293,403 68,293,403

18,439,219 18,439,219 18,439,219 18,439,219 18,439,219

49,854,184 49,854,184 49,854,184 49,854,184 49,854,184

49,854,184 49,854,184 49,854,184 49,854,184 49,854,184

 Oxides
Head Grades
Au g/mt Ag g/mt
Head Grades 2.36 165.00
Recovery 1984 to 1996 1.38 27.00
Recovery 1996 to 2011 0.48 38.00
Balance to be Recovered 0.50 100.00

Tonnage Treated
2,000,000
Recovery in Metallic Au kgs Ag kgs
Recovery 1984 to 1996 2,760.00 54,000.00
Recovery 1996 to 2011 960.00 76,000.00
Balance to be Recovered 1,000.27 199,998.90

Valorization Updated in US$

International Prices US$/oz 1,254.20 16.00
Recovery 1984 to 1996 111,292,684.10 27,769,543.62
Recovery 1996 to 2011 38,710,498.82 39,083,061.39
Balance to be Recovered 40,334,161.26 102,849,597.79

Valuation with Commercial Factor (payments on

metallic content at current prices)
Au Ag
Commercial Factor in % 80
Recovery 1984 to 1996 89,034,147.28 22,215,634.90
Recovery 1996 to 2011 30,968,399.05 31,266,449.11
Balance to be Recovered 32,267,329.00 82,279,678.23

Commercial Value in US$

Recovered from 1984 to 2011 Balance to be recovered in US$
173,484,630.35 114,547,007.24
 Sulphides (Courts)
Head Grades
Cu %
Head Grades 2.00
Recovery 2011 to 2015 % 85
Balance to be Recovered 0.31

Tonnage Treated
250,000
Recovery in Metallic Cu tm
Recovery 2011 to 2015 % 4,250
Balance to be Recovered 750

Valorization Updated in US$

International Prices US$/oz 2.86
Recovery 2011 to 2015 (Concentrates) 26,820,393

Balance to be Recovered

Valuation with Commercial Factor (payments on metalli

current prices)
Cu
Commercial Factor in % 50
Recovery 2011 to 2015 (Concentrates) 13,410,196.42

Balance to be Recovered / Commercial Factor 80

Commercial Value in US$

Recovered by Sale of Cu Concentrates
18,565,774.26
 (Courts)
Head Grades
Au g/mt Ag g/mt
4.00 165.00
10.00 35.00
3.60 107.25

Treated
00
Au kgs Ag kgs
100.00 14,437.50
900.00 26,812.50

pdated in US$
1,254.20 16.00
4,032,343.63 7,424,496.04

36,291,092.64 13,788,349.78

(payments on metallic content at

prices)
Ag Au
45 45
1,814,554.63 3,341,023.22

29,032,874.11 11,030,679.83

Value in US$
Balance to Recover as Precipitates
40,063,553.94
 Cuadro de Producción Anual
Ag g/t Au g/t Cu % - tm
Leyes de Cabeza Promedio 165.00 2.36 0.68
Producción Diaria TM 3,000
Recuperación % 100
Producción en Metálico día 494,998 7,080 20
Producción en Metálico mes (25 días) 12,374,959 177,010 510
Producción en Metálico Año 148,499,507 2,124,120 6,117
Producción en Metálico en Onzas 4,774,366 68,292 6,117
Precios Internacionales (Ag y Au US$/oz y Cu US$/tm) 16.00 1,254.20 6,306.16
Producción en oz Ag Equivalente Anual 12,540,992
7/6/2018