Year: 2019

Payments made by Fresnillo to governments arising from activities involving the exploration, prospection, discovery, development and extraction of minerals (extractive activities) are disclosed in this Report. When payments cover both extractive and processing activities and cannot be split, the payment has been disclosed in full.

Paul Benson, President and CEO, commented, “I am pleased to introduce our inaugural Sustainability Report, which provides a framework for how we manage and measure existing programs as well as aid in our social excellence initiatives. The report enhances how we communicate our sustainability performance and supports our Operational Excellence efforts in all areas of our business. With the initiation of our sustainability reporting, we proactively ensure a transparent and ongoing engagement with our stakeholders.”

The Company is raising up to CA$2 million (approx. US$1.5) in a non-brokered private placement of units of the Company at a price of $0.05 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant of the Company. Each full Warrant entitles the holder to purchase one additional common share of the Company for a period of three years, at an exercise price of CA$0.06 per share. The proceeds of the offering will be used for exploration and development on the Samalayuca property, including diamond drilling, land use permits and associated costs, metallurgical bench testing of the copper mineralization, and proposed pilot mining investigation and evaluation. In addition, the money will used for option payments in Mexico, current accounts payable, general administrative expenses, and working capital.

N. Eric Fier, CPG, P.Eng, and CEO, remarked, “Shareholders continue with their confidence in management with the election of proposed Directors. We are extremely pleased with the election of Ms. Ani Markova to the Board. She is a Senior Executive, with over 25 years of work experience including financial analysis, capital allocation, marketing, and Environmental, Social and Governance (ESG) topics which make her a valuable addition to the SilverCrest team. Ani is an award-winning portfolio manager who managed up to $2 billion of mutual fund assets and spent more than 15 years investing in the global mining sector and commodity markets while at AGF Investments Inc. Ms. Markova holds an MBA from George Washington University in Washington DC and holds Chartered Financial Analyst (CFA), Canadian Investment Management (CIM) and Corporate Board International (CDI.D) designations.”

Igor Gonzales, President, and CEO of Sierra Metals stated, “The acquisition of this royalty agreement is strategically important to Sierra Metals as it enhances the cost structure of our operations at a time when we are significantly expanding our production capacity at our Cusi Mine and Malpaso processing plant.”