Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile Report Prepared for Lundin Mining Corporation

Transcription

1 Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile Report Prepared for Lundin Mining Corporation Report Prepared by SRK Consulting (Canada) Inc. 3CL September 4, 2015

2 Technical Report for the Candelaria Copper Mining Complex, Chile Page i Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile Lundin Mining Corporation Suite 1500, 150 King Street West Toronto, Ontario, Canada M5H 1J9 info@lundinmining.com Website: Tel: Fax: SRK Consulting (Canada) Inc. Suite 1300, 151 Yonge Street Toronto, Ontario, Canada M5C 2W7 toronto@srk.com Website: Tel: Fax: SRK Project Number 3CL Effective date: June 30, 2015 Signature date: September 4, 2015 Authored by: [Signed and sealed] Jean-François Couture, PGeo Corporate Consultant (Geology) [Signed and sealed] John Nilsson, PEng Independent Consultant (Mining Engineering) Reviewed by: Several co-authors [Signed and sealed] Glen Cole, PGeo Principal Consultant (Resource Geology) [Signed and sealed] Adrian Dance, PEng Principal Consultant (Mineral Processing) [Signed and sealed] Gary Poxleitner, PEng Principal Consultant (Mining Engineering) [Signed and sealed] Cameron C. Scott, PEng Principal Consultant (Environment) Cover: Haul truck loading in the Candelaria open pit, 2015

3 Technical Report for the Candelaria Copper Mining Complex, Chile Page ii IMPORTANT NOTICE This report was prepared as a National Instrument Standards of Disclosure for Mineral Projects Technical Report for Lundin Mining Corporation (Lundin) by SRK Consulting (Canada) Inc. (SRK). The quality of information, conclusions, and estimates contained herein are consistent with the quality of effort involved in SRK s services. The information, conclusions, and estimates contained herein are based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Lundin subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits Lundin to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party s sole risk. The responsibility for this disclosure remains with Lundin. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued SRK Consulting (Canada) Inc. This document, as a collective work of content and the coordination, arrangement and any enhancement of said content, is protected by copyright vested in SRK Consulting (Canada) Inc. (SRK). Outside the purposes legislated under provincial securities laws and stipulated in SRK s client contract, this document shall not be reproduced in full or in any edited, abridged or otherwise amended form unless expressly agreed in writing by SRK.

4 Technical Report for the Candelaria Copper Mining Complex, Chile Page iii Executive Summary The Candelaria Copper Mining Complex comprises two adjacent copper mining operations that produce copper concentrates from open pit and underground mines located near Copiapó in the Atacama Province, Region III of Chile. Compañía Contractual Minera Candelaria (Minera Candelaria) is an open pit and underground mine providing copper ore to an on-site concentrator with a capacity of 75,000 tonnes per day, and Compañía Contractual Minera Ojos del Salado (Minera Ojos del Salado) comprises two underground mines: Santos and Alcaparrosa. The Santos mine provides copper ore to an on-site concentrator with a capacity of 3,800 tonnes per day, while ore from the Alcaparrosa mine is treated at the Minera Candelaria processing plant. In 2014, the operations collectively produced 155 kilotonnes of copper, 87,000 ounces of gold, and 1.4 million ounces of silver. The Candelaria Copper Mining Complex is indirectly owned by Lundin Mining Corporation (Lundin; 80 percent) and Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (collectively, Sumitomo; 20 percent). Lundin is a diversified base metals mining company with operations and projects in Chile, the USA, Portugal, Sweden, and Spain producing copper, nickel, zinc, and lead. Lundin is a Canadian public company with offices in Toronto, Canada. Its common shares are listed on the Toronto Stock Exchange (symbol LUN) and the NASDAQ OMX market (symbol LUMI). In May 2015, Lundin retained the services of SRK Consulting (Canada) Inc. (SRK) to visit the Candelaria Copper Mining Complex and compile a technical report pursuant to National Instrument Standards of Disclosure for Mineral Projects and Form F1. This report updates the October 6, 2014 Compañía Technical Report entitled Technical Report for the Compañía Minera Candelaria and Minera Ojos del Salado Copper Projects, Atacama Province, Region III, Chile by the same authors. It summarizes the technical information that is relevant to support the disclosure of revised Mineral Resources and Mineral Reserves estimates prepared using revised economic parameters and the positive results of recent exploration programs. The revised mine plan supporting the Mineral Resources and Mineral Reserves estimates was disclosed by Lundin on July 29, Property Description and Ownership The Candelaria Copper Mining Complex is located in Chile s Atacama Province, Region III, approximately 20 kilometres south of the city of Copiapó and approximately 650 kilometres north of Santiago (Figure i and Figure ii). The properties are easily accessed using the public road system. Copiapó is a modern city with all the regular services and a population of approximately 160,000. Personnel employed by the Candelaria Copper Mining Complex come primarily from the Copiapó region. The Candelaria and Ojos del Salado mines receive electrical power through long-term contracts with AES Gener S.A., a local energy company. The main water supply comes from a desalination plant, which was commissioned in 2013 and is located at the Punta Padrones port facility at the nearby sea port of Caldera. Both the desalination plant and the Punta Padrones port are owned by Minera Candelaria. Local treated sewage water is also used by the mines. The copper concentrate is trucked from site and shipped from Punta Padrones to world markets. Copiapó has a desert climate with mild temperatures year round. Winters are mild with warm temperatures. Annual precipitation averages approximately 17 millimetres, the majority of which falls in the winter months. The climate allows for year round mining and exploration activities. The Minera Candelaria property comprises 276 mining exploitation concessions (approximately 5,849 hectares) and 59 mining exploration concessions (approximately 6,280 hectares). The Ojos del Salado property comprises 195 mining exploitation concessions (approximately 9,286 hectares) and 29 mining exploration concessions (approximately 3,400 hectares). The tenements are free of mortgages, encumbrances, prohibitions, injunctions, and litigation. The tenements containing the active and future mining activities are not affected by royalties. The Candelaria Copper Mining Complex owns certain underground water use rights and certain surface water use rights.

5 Technical Report for the Candelaria Copper Mining Complex, Chile Page iv Figure i: Location of the Mines Comprising the Candelaria Copper Mining Complex

6 Technical Report for the Candelaria Copper Mining Complex, Chile Page v Figure ii: The Infrastructures of the Candelaria Copper Mining Complex

7 Technical Report for the Candelaria Copper Mining Complex, Chile Page vi History The Candelaria sulphide deposit was discovered by the Phelps Dodge Corporation (Phelps Dodge) in A feasibility study was completed in 1990, and, following approval by the Chilean government, construction started in October of Sumitomo acquired a 20 percent stake in the property in Production commenced in early In 2007, property ownership changed when Freeport-McMoRan Inc. (Freeport) acquired Phelps Dodge. During 2011, a pipeline was completed to bring water from a nearby sewage treatment facility to the Candelaria mine. A desalination plant at the port of Caldera was built and commissioned in 2013 at a capacity of 500 litres per second. The Santos underground mine has been in production since 1929, with processing taking place at what is now called the Pedro Aguirre Cerde (PAC) plant. Phelps Dodge became sole owner of Minera Ojos del Salado and the Santos mine and PAC plant in The PAC plant has been expanded several times to its current capacity of 3,800 tonnes per day. Sumitomo acquired its 20 percent interest in Minera Ojos del Salado in In early 1996, production from the Alcaparrosa underground mine commenced. In November 2014, Lundin acquired Freeport s interest in the Candelaria Copper Mining Complex. The Candelaria Copper Mining Complex has been a significant producer of copper since the mid-1990s. In the last four years, annual payable copper and gold metal in concentrates sold varied between 147 and 191 kilotonnes and 83,000 and 101,000 ounces, respectively. Geology, Mineralization, and Deposit Types The Candelaria sulphide deposit is located at the boundary between the Coastal Cordillera and the Copiapó Precordillera. The Coastal Cordillera of Chañaral and Copiapó is composed of Permian to Lower Cretaceous intrusions within a basement of metasedimentary rocks of Devonian to Carboniferous age. Volcanic, volcaniclastic, and marine carbonate rocks represent intra- and back-arc sequences that were deposited during Early to Mid-Cretaceous. The Candelaria, Santos, and Alcaparrosa mines are located in the district of Punta del Cobre. The polymetallic sulphide deposits are hosted in volcanic rocks of the Punta del Cobre Formation. Polymetallic sulphide deposits in the Punta del Cobre district are located to the east of the main branches of the Atacama fault zone, a subduction-linked, strike-slip fault system stretching over 1,000 kilometres along the Chilean coast and active at least since the Jurassic. The dominant structural elements of the Punta del Cobre area are the northeasttrending Tierra Amarilla Anticlinorium, a southeast-verging fold-and-thrust system and a series of northnorthwest- to northwest-trending high-angle faults. The copper-gold sulphide mineralization found at the Candelaria Copper Mining Complex is generally referred to as iron oxide copper gold (IOCG) mineralization. The sulphide mineralization occurs in breccias, stockwork veinlets, disseminations in andesite, and as an internal tuff unit. There are also some localized controls to mineralization in the form of faults, breccias, veins, and foliation. Candelaria has become an exploration model for Andean-type IOCG deposits that display close relationships to the plutonic complexes and broadly coeval fault systems. Depending on lithology and the structural setting, the polymetallic sulphide mineralization can occur as veins, hydrothermal breccias, replacement mantos, and calcic skarns. The Candelaria IOCG system lies within the thermal aureole of the Lower Cretaceous magmatic arc plutonic suite in the Candelaria-Punta del Cobre district. Exploration Status Ongoing exploration is conducted by the Candelaria Copper Mining Complex with the primary purpose of supporting mining and increasing the Mineral Resources and Mineral Reserves available for mining. Exploration is focused on the known mantos, veins, and breccia masses in proximity to existing underground

8 Technical Report for the Candelaria Copper Mining Complex, Chile Page vii infrastructure. Historically, this strategy has proven very effective in defining new Mineral Resources available for underground mining. Much of the exploration is conducted from underground, requiring significant underground development to provide adequate drilling stations. Regional exploration is also undertaken on the large properties surrounding the mines to identify targets and define new Mineral Resource areas. From 2010 to 2014, the Minera Candelaria and Minera Ojos del Salado have together invested more than US$117 million in exploration primarily below the Candelaria open pit, to the north and south, and at the three underground mines. During the first half of 2015, eight new Mineral Resource models were prepared (two at Minera Candelaria and six at Minera Ojos del Salado), resulting in a significant expansion of the Mineral Resources of the underground mines, and contributing to the extension of their life. Building on this exploration success, ongoing aggressive exploration targets the lateral extensions of the areas investigated since The planned exploration program for the period includes approximately 7,240 metres of underground development and 347,000 metres of core drilling at an estimated cost of approximately US$119 million. The exploration potential of the Candelaria Copper Mining Complex remains excellent. SRK is of the opinion that aggressive exploration programs will continue to expand the underground Mineral Resources. Drilling, Sample Preparation, Analyses, and Security Mineral Resources are informed from information obtained from surface and underground boreholes. From 1990 to 2014, 2,618 core and percussion boreholes have been drilled in and around the Candelaria open pit mine. In the Santos mine, approximately 1,097 core boreholes were drilled from 1993 to For the Alcaparrosa mine, the borehole database contains information from 972 core boreholes drilled from 1990 to The drilling and sampling procedures are consistent with generally recognized industry best practices. SRK concludes that the samples are representative of the source materials and there is no evidence that the sampling process introduced a bias. Analytical samples informing the Candelaria Mineral Resource were prepared and assayed at the Candelaria mine laboratory that is accredited to ISO17025 for the analyses of copper, iron, zinc, and silver. Analytical samples informing the Ojos del Salado Mineral Resources were prepared and assayed by Intertek (formerly Vigalab). Conventional preparation and assaying procedures were used. Copper is analyzed by multi acid digestion and atomic absorption spectroscopy. Gold is assayed using a fire assay procedure. Specific gravity is systematically measured on core samples. The Candelaria Copper Mining Complex implements analytical quality control measures consistent with generally accepted industry best practices. The analytical quality control program includes the use of control samples inserted with all samples submitted and check assaying by umpire laboratories. The analytical quality control data are routinely monitored and were audited by AMEC (now Amec Foster Wheeler) in In the opinion of SRK, the analytical results delivered by the primary laboratories used are free of apparent bias. The sampling preparation, security, and analytical procedures used are consistent with generally accepted industry best practices and are therefore adequate to support Mineral Resource estimation. Mineral Processing and Metallurgical Testing The Candelaria Copper Mining Complex maintains regular metallurgical testing programs that are incorporated with historical testing results and mill performance into a statistical model to predict and improve the complex s processing performance in terms of mill throughput, metal recovery to concentrate, and final concentrate grade. Metallurgical tests are executed in a number of specialized in-house and commercial facilities. Testing includes rock hardness classification, mineralogy using QEMSCAN technology and bench scale, and flotation testing that is correlated with industrial scale performance in order to predict mill throughput and metallurgical performance.

9 Technical Report for the Candelaria Copper Mining Complex, Chile Page viii Mineral Resource and Mineral Reserve Estimates The Mineral Resources discussed herein are informed from core drilling information stored in a secured central database, and were evaluated using a geostatistical block modelling approach. Separate models were prepared for the Candelaria open pit mine and the three underground mines (Candelaria Norte, Santos, and Alcaparrosa) using slightly different methodologies and assumptions. Each underground mine was sub-divided into sectors and evaluated using separate block models. In total, 19 distinct block models were created to model the zones of sulphide mineralization of the Candelaria Copper Mining Complex, including 8 new models since the acquisition by Lundin. SRK reviewed and audited the Mineral Resource models prepared by Minera Candelaria and Minera Ojos del Salado personnel. In the opinion of SRK, the resource evaluation reported herein is a reasonable representation of the Mineral Resources found at the Candelaria Copper Mining Complex at the current level of sampling. The Mineral Resources have been estimated in conformity with generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines and are reported in accordance with Canadian Securities Administrators National Instrument The consolidated audited Mineral Resource Statement for the Candelaria Copper Mining Complex is presented in Table i. Mineral Resources include Mineral Reserves. Monthly reconciliation completed at the Candelaria open pit mine between the Mineral Resource model and grade control models show excellent reconciliation. For the period July 2014 to June 2015, the reconciliation on grade and produced copper between the long- and short-term models, and between the long-term model and the mill were approximately 5 percent and 8 percent, respectively. Table i: Consolidated Audited Mineral Resource Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Contained Metal Classification Quantity Grade Copper Gold Silver Tonnes Copper Gold Silver Tonnes Ounces Ounces ( 000) (%) (g/t) (g/t) ( 000) ( 000) ( 000) Open Pit Measured 400, ,225 1,637 24,707 Indicated 31, ,787 Measured and Indicated 432, ,379 1,766 26,494 Inferred 15, Underground Measured 65, ,194 Indicated 51, ,682 Measured and Indicated 117, , ,876 Inferred 66, ,932 WIP** Measured 93, ,487 Indicated Measured and Indicated 93, ,487 Inferred Combined Measured 560, ,305 2,450 39,387 Indicated 83, ,469 Measured and Indicated 643, ,033 3,007 49,857 Inferred 82, ,589 * Reported within the boundaries of the Compañía Contractual Minera Candelaria and Compañía Contractual Ojos del Salado properties. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. Mineral Resources include Mineral Reserves. Open pit Mineral Resources are reported at a cut-off grade of 0.2 percent copper within a conceptual pit shell based on metal prices of US$3.16 per pound of copper and US$1,000 per ounce of gold, and current topography. Underground Mineral Resources are reported at a cut-off grade of 0.6 percent copper. Parts of the open pit Mineral Resources have been converted into underground Mineral Reserves. ** Work-in-progress (WIP) stockpiles

10 Technical Report for the Candelaria Copper Mining Complex, Chile Page ix Mineral Reserves are derived from Measured and Indicated Mineral Resources after applying economic parameters. The Mineral Reserves have been derived and classified according to the following criteria: Proven Mineral Reserves are the economically mineable part of the Measured Mineral Resources where development work for mining and information on processing/metallurgy and other relevant factors demonstrate that economic extraction is achievable. Probable Mineral Reserves are those Measured and Indicated Mineral Resources where development work for mining and information on processing/metallurgy and other relevant factors demonstrate that economic extraction is achievable. The consolidated audited Mineral Reserve Statement for the Candelaria Copper Mining Complex is presented in Table ii. Mineral Reserves are included in Mineral Resources. Table ii: Consolidated Audited Mineral Reserve Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Grade Contained Metal Classification Quantity Copper Gold Silver Copper Gold Silver ( 000 t) (%) (g/t) (g/t) ( 000 t) ( 000 oz) ( 000 oz) Open Pit Proven 298, ,699 1,246 19,137 Probable 16, Total 314, ,784 1,317 20,160 WIP** Proven 93, ,487 Probable Total 93, ,487 Underground Proven 33, ,284 Probable 13, ,271 Total 46, ,555 Combined Proven 425, ,359 1,749 27,908 Probable 30, ,294 Total 455, ,571 1,915 31,202 * Mineral Reserves are included in Mineral Resources. Mineral Reserves have been prepared using metal prices of US$2.75 per pound of copper, US$1,000 per ounce of gold, and US$15.00 per ounce of silver. All figures have been rounded to reflect the relative accuracy of the estimates. Minera Candelaria Mineral Reserves for open pit and underground are reported at cut-off grades of 0.23 and 0.70 percent copper, respectively. Underground Mineral Reserves for Alcaparrosa and Santos are reported at cut-off grades of 0.76 and 0.73 percent copper, respectively. Parts of underground Mineral Reserves have been converted from open pit Mineral Resources. ** Work-in-progress (WIP) stockpiles Mining Methods The Candelaria open pit mine operates with an overall mining rate of approximately 235,000 tonnes per day including 66,000 tonnes per day of ore sent to the Candelaria processing plant. The average grade of the ore that will be mined from the open pit over the remaining life of mine is estimated at 0.57 percent copper, while stockpiled work-in-progress (WIP) material is estimated to have an average grade of 0.36 percent copper. The mine operates seven electric shovels, 46 haulage trucks, eight production drills, and a fleet of support equipment. The Candelaria Norte underground mine currently produces 6,000 tonnes per day of ore but is planned to ramp up to 7,250 tonnes per day by year 2019 with an average grade of 0.96 percent copper estimated in the life of mine plan. The Alcaparrosa underground mine produces 4,000 tonnes per day of ore with an average grade of 0.94 percent copper. The Santos underground mine produces 3,750 tonnes per day of ore with an average grade of 1.04 percent copper estimated over the remaining life of mine.

11 Technical Report for the Candelaria Copper Mining Complex, Chile Page x The life of mine plan for the Candelaria Copper Mining Complex is largely driven by supplying ore to the Candelaria processing plant from the open pit mine and surface stockpiles once the open pit Mineral Reserves have been depleted. The open pit and stockpile Proven and Probable Mineral Reserves are estimated at million tonnes at an average grade of 0.52 percent copper, 0.12 gram of gold per tonne (g/t gold), and 1.88 g/t silver. The open pit was designed to be mined in several phases of development. As of June 2015, five phases of development remain in the life of mine plan (Phases 9 to 13). The overall strip ratio is 2.8:1 excluding stockpiles. The total in-pit waste is million tonnes. The overall life of the open pit mine is 17 years. The three underground mines (Candelaria Norte, Santos, and Alcaparrosa) utilize a sublevel stoping mining method for ore extraction. This method is ideal for relatively large, vertical, as well as thick deposits with favourable and stable host rock. Stopes can typically be up to 100 metres high with sublevels at 25 to 50 metre intervals. The length of the stopes is generally 80 metres with widths varying between 20 to 30 metres. Stopes are drilled down from the sublevel drilling drifts as benches using 4.5 inch diameter down-the-hole (DTH) holes. The holes are loaded and blasted in vertical slices towards an open face. The blasted ore gravitates to the bottom of the stope and is collected through drawpoints at the production level below. Ore is mucked from the drawpoints using surface-type front-end loaders and LHDs (load haul dump). The mucked ore is dumped into 30-ton highway type trucks and hauled up the ramp to a surface stockpile for subsequent re-handling and processing. The current mine lives of the Candelaria Norte, Alcaparrosa, and Santos mines are 13, 7, and 7 years, respectively. For 2016, the Candelaria Copper Mining Complex expects to produce 154 kilotonnes of copper, 90 kilo ounces of gold and 1.8 million ounces of silver. Over the remaining life of mine plan (to 2032), the average annual production is estimated to be 138 kilotonnes of copper, 84 kilo ounces of gold and 1.5 million ounces of silver. Recovery Methods The Candelaria processing plant receives ore from the Candelaria open pit and the Candelaria Norte and Alcaparrosa underground mines. It has a nameplate capacity of 75,000 tonnes per day. The PAC processing plant receives ore from the Santos underground mine and has a design capacity of 3,800 tonnes per day. Historical performance of the Candelaria processing plant from 2000 to 2014 has averaged 25 million tonnes per year, equivalent to approximately 68,600 tonnes per day with utilization of 93 percent. During this period, metallurgical recovery averaged 94 percent for copper, 75 percent for gold, and 85 percent for silver. The Candelaria processing plant flowsheet is conventional, comprising two parallel process lines for grinding and flotation, reclaimed process water from a conventional tailings dam, final concentrate filtration, and shipping of bulk copper concentrates. Run of mine ore is trucked to a primary gyratory crusher. Grinding takes place in a multi-stage closed circuit using semi-autogenous grinding (SAG) mills, ball mills, and pebble crushing. A multi-stage flotation circuit using an arrangement of mechanical cells, regrind mills, and column cells produces copper concentrate. Final flotation copper concentrate with gold and silver by-product metals is thickened, filtered, and stored on site. Final flotation tails are conventionally thickened and disposed of in a rockfill embankment tailings storage facility. Process water is reclaimed from the tailings dam for reuse in the processing plant. Overall the fresh make-up water ratio is exceptionally low (0.34 cubic metre per tonne of fresh ore in 2012). The PAC processing plant has been in operation since The plant processes 3,800 tonnes per day of fresh feed from the Santos underground mine with an average historical head grade of 0.85 percent copper and a copper recovery of 94 percent. The gold and silver recoveries are 72 percent. The PAC processing plant flowsheet comprises a closed-circuit crushing plant including a primary jaw crusher, a secondary cone crusher, and two tertiary cone crushers. The grinding circuit has three ball mills operating in parallel and in direct closed-circuit with hydro-cyclone classification. The flotation plant uses conventional multi-stage, mechanical, self-aspired and forced-air flotation cells, regrind milling, and column cells for the final concentrate cleaning stage. The final concentrate is thickened and filtered using a ceramic disc filter. Final flotation tailings from the PAC plant are pumped to the main Candelaria tailings storage facility.

12 Technical Report for the Candelaria Copper Mining Complex, Chile Page xi Copper concentrates containing precious metals are trucked to the Punta Padrones port, near Caldera. In 2016, the typical Candelaria copper concentrate is expected to average 29.9 percent copper, 5.4 g/t gold, and 112 g/t silver with a moisture content of 7.6 percent after filtration. The copper concentrate of the PAC plant is expected to average 29.5 percent copper, 5.1 g/t gold, and 82 g/t silver. Minera Candelaria has an agreement with a third party company to process Candelaria s flotation tailings to produce a magnetite concentrate and this produces an additional source of by-product revenue. The current Candelaria tailings storage facility receives the flotation tails from the Candelaria and PAC processing plants. The Candelaria flotation tails are thickened and then pumped to the tailings storage facility at an average solids concentration of 50.1 percent. The PAC flotation tails are pumped unthickened at an average concentration of 35.3 percent. The remaining tailings storage capacity is estimated at 36 million cubic metres, sufficient to receive tailings until the end of 2017 at the current production throughput. A new tailings storage facility, known as Los Diques, has been designed to replace the Candelaria tailings storage facility. The Los Diques facility will be located to the southwest of the open pit and plant sites and will have an approximate designed capacity of 600 million tonnes, more than what is required by the current projected mine life. The Los Diques tailings management facility is a key part of the Candelaria Project Operational Continuity (Candelaria 2030) environmental impact assessment that was submitted to the environmental authorities in September 2013 and was approved on July 23, To mitigate the risk that permitting and construction of Los Diques is not completed before reaching the capacity of the existing tailings facility, Minera Candelaria is implementing a plan to reduce the permitted freeboard of the existing facility, thereby gaining approximately 14 months of additional storage capacity. The application for the permit modifications was submitted on July 29, Additionally, alternatives are being developed to maximize the available capacity in the existing tailings facility, including but not limited to cell deposition techniques. Project Infrastructure The Minera Candelaria infrastructure includes: Candelaria open pit mine with a capacity of approximately 270,000 tonnes of rock per day Surface waste dumps located to the north and southwest of the Candelaria open pit Candelaria processing plant with a nameplate capacity of 75,000 tonnes per day Candelaria Norte underground mine with an ore capacity of 6,000 tonnes per day (ramping up to 7,250 tonnes per day in 2019) Candelaria tailings facility located northwest of the Candelaria open pit Ancillary mine services and administrative buildings and road accesses Off-site Punta Padrones port located at Caldera with a 45,000 wet metric tonne designed storage capacity and 1,000 wet metric tonnes per hour loading capacity Desalination plant adjacent to the port facility commissioned in January 2013 with a capacity of 500 litres per second and the related aqueduct to connect to the Bodega pump station (80 kilometres) Pipeline from the Bodega pump station to the Candelaria plant site (40 kilometres) The Minera Ojos del Salado infrastructure includes: Alcaparrosa underground mine with an ore capacity of 4,000 tonnes per day Santos underground mine with an ore capacity of 3,800 tonnes per day PAC processing plant with a capacity of 3,800 tonnes per day Ancillary surface service buildings and road accesses

13 Technical Report for the Candelaria Copper Mining Complex, Chile Page xii Market Studies The quality of the copper concentrates produced by the Candelaria Copper Mining Complex is excellent. They are considered to be clean and have very low contents of deleterious elements. The copper concentrates have significant by-product credits of gold and silver. From a technical specification standpoint, the copper concentrates have no limitations and can be treated at all copper smelters worldwide. The Candelaria copper concentrate is sold under four long-term contracts expiring from 2016 to The concentrate is shipped from the Punta Padrones port facility to destinations in Europe, China, Japan, Korea, India, and Brazil. The Ojos del Salado copper concentrates are currently sold under two long-term contracts based on standard annual contract terms, expiring in 2017 and 2018, for delivery to Chile and Japan. Environmental Studies, Permitting, and Social or Community Impact The Candelaria Copper Mining Complex currently operates with all applicable permits in place and its environmental management system is accredited to ISO and its health and safety management system under OSHAS standards. Comprehensive social programs have been developed. The original Minera Candelaria project underwent a voluntary process of environmental assessment. The project was approved under ORD. N 817 on June 9, 1992 and began operations on March 9, Since that time, the operations have undergone a series of environmental assessment processes to support the evolving development plans for this project. The most recent environmental assessment process was initiated in September 2013 with the submittal of an Environmental Impact Study (Estudio de Impacto Ambiental, EIA) to extend the operating life of the facilities until 2030 and to permit the Los Diques tailings storage facility. The Candelaria 2030 EIA received approval with conditions on 23 July, None of the conditions of approval represent risks to the technical or economic feasibility of the operation. At Minera Ojos del Salado, the Santos mine and the PAC plant began operating before 1994, at a time when Chile did not have rigorous environmental laws in place. The Alcaparrosa mine received its original environmental approval in 1996 with subsequent amendments in 1999 and The PAC processing plant receives ore from the Santos mine, and the tailings are deposited in the Candelaria tailings facility according to a resolution granted to Minera Candelaria (RCA No. 004/1997). Ore from the Alcaparrosa mine is shipped to the Candelaria processing plant as approved by a resolution granted to Minera Candelaria (RCA No. 012/2005). The Alcaparrosa mine s environmental permit expires at the end of Minera Ojos del Salado has applied to extend the existing environmental approval for an additional two years, to the end of The authorities have not yet responded to the extension request. If a new environmental assessment is required for beyond 2015, it is possible that the Alcaparrosa mine may be faced with temporary closure. In such case stockpiled ore from Candelaria will be used to make up the plant feed difference until a new environmental permit is granted. In May 2015, Minera Candelaria received from the Superintendent of Environment an Extent Resolution N 1/ROL D pointing to 16 environmental non-compliances, eight of which were classified as serious. There is a risk that Minera Candelaria could receive significant fines for some of the non-compliances. However, SRK is of the opinion that none of the non-compliances have caused serious environmental impacts, and most of them can be managed through the activities required as part of the Candelaria 2030 project. Candelaria is addressing these non-compliances with the authorities. The process is ongoing but it is possible that fines may be charged to Minera Candelaria. SRK is of the opinion that the fines, if any, will be significantly below the maximum allowable fine limits, and will not be material. Since acquiring the operations, Lundin has committed new social investments including continued support and further development of the new community office in Tierra Amarilla with infrastructure to support the relationship with stakeholders, including housing projects, employment programs, donation of land for a drug prevention centre, secondary education and sporting programs, the creation of a fund to support artisanal fisheries in Caldera, the repair of the technical secondary school in Tierra Amarilla, and the implementation of grievance mechanisms and a stakeholder engagement process.

14 Technical Report for the Candelaria Copper Mining Complex, Chile Page xiii The updated Minera Candelaria closure plan was approved by Servicio Nacional de Geología y Minería (SERNAGEOMIN) through Resolution No of July The updated closure plan for Ojos del Salado, including closure cost estimates, was approved by SERNAGEOMIN on May 16, The legacy facilities (old tailings and slag deposit) have already been closed and remediated. Capital and Operating Costs The average open pit mining cost over the next four years ( ), excluding the impact of capitalized waste stripping, is estimated to be US$2.80 per tonne of material moved, with annual fluctuations. Total mining costs include ore and waste stripping, with the quantities of waste to be moved over the next four years being particularly high. The biggest portion of the open pit mining cost is supplies (explosives, drill tools, tires, maintenance supplies) at approximately 40 percent and energy (diesel fuel and electricity) at 28 percent. The average underground mining cost over the next four years at Candelaria Norte is expected to be US$20.90 per tonne, with overall costs falling as production decreases in the last year of operations. Contractor costs make up some 80 percent of the total mining costs. The forecast average Ojos del Salado unit underground mining cost over the next four years is approximately US$20.60 per tonne. Total underground mining costs are currently forecast to decrease as production diminishes from Candelaria Norte, Alcaparrosa, and then Santos. There is a strong likelihood that exploration success will lead to an extension of the lives of the underground mines. The forecast average unit processing cost of the Candelaria processing plant over the next four years is US$8.00 per tonne, slightly lower in 2016 and 2017 because of higher throughput and the treatment of surface stockpile material. Electrical energy, at approximately 42 percent, and operating supplies (grinding media, reagents, maintenance spares), at approximately 35 percent, are the biggest cost items. The average processing cost for Minera Ojos del Salado over the next four years is expected to be US$10.20 per tonne. This is a combination of the costs for treating the Santos ore at the PAC plant and the Alcaparrosa ore at the Candelaria plant. Minera Candelaria unit general and administrative cost (G&A) over the next four years is expected to be US$1.80 per tonne. For Minera Ojos del Salado, the average unit G&A cost over the next four years is expected to be US$2.10 per tonne. For 2016, the forecast combined Candelaria Copper Mining Complex C1 cash operating cost is US$1.58 per pound of copper net of by-product credits and the effect of the Franco-Nevada gold and silver streaming agreement. Life of mine C1 cash costs are forecast to be approximately US$1.54 per pound of copper net of by-product credits and the Franco-Nevada gold and silver streaming agreement. Fluctuations in the cash cost are largely driven by the changes in the copper head grade in the open pit, and hence copper metal production, over the life of mine. At Minera Candelaria, total capital expenditures over the period 2016 to 2019, excluding capitalized waste stripping, are forecast at US$459.5 million and from 2020 to 2024 at US$298.2 million. The main capital project is the construction of the new Los Diques tailings storage facility, expected to start in 2015 and be ready to receive its first tailings in early From 2018, the capital cost includes conventional raises to the dam and extensions to the distribution systems. Mill capital costs include sustaining items to upgrade control systems and equipment replacements in the Candelaria processing plant. G&A capital costs include the final lift to the existing tailings dam as well as a number of environmental and local community initiatives. The forecast capital expenditure for Minera Ojos del Salado over the same period is US$2.6 million, with no expenditures expected from 2017 onward. During the production phase of the Candelaria open pit mine, waste stripping costs which provide probable future economic benefits and improved access to the orebody are capitalized to mineral properties. Lundin capitalizes waste stripping costs when experienced strip ratios are above the average planned strip ratio for each open pit phase under development. Capitalized waste stripping from the open pit is forecast to be US$436 million for the period 2016 to 2019, and US$470 million between 2020 and 2024.

15 Technical Report for the Candelaria Copper Mining Complex, Chile Page xiv Economic Analysis Producing issuers may exclude the information required under Economic Analysis (Item 22 of Form F1) for technical reports on properties currently in production unless the technical report includes a material expansion of current production. Conclusion and Recommendations The Candelaria Copper Mining Complex is a world class long life copper mining operation with potential to further extend the operating life. In 2014, the operations combined production was 155 kilotonnes of copper, 87,000 ounces of gold, and 1.4 million ounces of silver. The technical information about the Candelaria Copper Mining Complex is extensive and attests to the high overall quality of the exploration, mine planning, design work and operational reporting completed by site personnel, as is expected from a world class asset. SRK examined the exploration, geology and Mineral Resource modelling, mine designs, Mineral Reserve estimates, processing, and environmental aspects of the Candelaria Copper Mining Complex. On the basis of the results from the audit samples, SRK concludes that the Mineral Resource and Mineral Reserve Statements for the Candelaria Copper Mining Complex as of June 30, 2015 are appropriately categorized and free of material errors. Financial information examined by SRK confirms that the Mineral Reserves are economic under the assumptions considered. The Candelaria Copper Mining Complex has a life of mine projected to 2032 with the depletion of the Mineral Reserves disclosed herein. Since 2010, aggressive exploration has defined several new sulphide mineralization zones amenable to underground mining that offer a very good opportunity to expand the Mineral Reserves and extend the lives of the underground mines. In this context, SRK strongly recommends that, if market conditions allow for discretionary expenditures on exploration, Lundin continues and, if possible, accelerates the implementation of the aggressive exploration program proposed to Furthermore, rapid modelling of the Mineral Resources discovered by exploration should continue to allow the conversion to underground Mineral Reserves and updating of the life of mine plan and thus enable timely permitting. The regional exploration potential of the large exploration properties remains excellent. Regional exploration targeting should continue, including the use of high resolution geophysical data to enhance exploration targeting. Presently, the three underground mines are not interconnected. Conceptual plans envision connecting the Ojos del Salado underground mines with Candelaria Norte with access to the new Susana and Damiana sulphide zones. This interconnection would greatly facilitate material movement and provide additional access for deep exploration. SRK is of the opinion that this proposed interconnection has merit and should be studied further. The environmental permit for the Alcaparrosa mine expires at the end of Minera Ojos del Salado has applied for an extension of the existing permits to continue to operate Alcaparrosa. If by the end of 2015, a new permit or extension is not in place, the Alcaparrosa mine may be faced with temporary closure and in which case stockpiled ore from Candelaria will be used to make up the plant feed difference until a new environmental permit is granted. In May 2015, Minera Candelaria received from the Superintendent of Environment notification of 16 environmental non-compliance charges, eight of which were classified as serious. There is a risk that Minera Candelaria could receive fines for some of the non-compliances. SRK is of the opinion, however, that none of the non-compliances have caused serious environmental impacts, and that most can be managed through the activities required as part of the Candelaria 2030 project. SRK believes that the fines, if any, will not be material to the company.

16 Technical Report for the Candelaria Copper Mining Complex, Chile Page xv Table of Contents IMPORTANT NOTICE... ii Executive Summary... iii Property Description and Ownership... iii History... vi Geology, Mineralization, and Deposit Types... vi Exploration Status... vi Drilling, Sample Preparation, Analyses, and Security... vii Mineral Processing and Metallurgical Testing... vii Mineral Resource and Mineral Reserve Estimates... viii Mining Methods... ix Recovery Methods... x Project Infrastructure... xi Market Studies... xii Environmental Studies, Permitting, and Social or Community Impact... xii Capital and Operating Costs... xiii Economic Analysis... xiv Conclusion and Recommendations... xiv Table of Contents... xv List of Tables... xix List of Figures... xxi 1 Introduction and Terms of Reference Terms of Reference Qualification of SRK Basis of Technical Report Declaration Reliance on Other Experts Property Description and Location Mineral Tenure Minera Candelaria Minera Ojos del Salado Water Use Rights Mineral Rights in Chile Exploration Concessions Exploitation Concessions Accessibility, Climate, Local Resources, Infrastructure, and Physiography Accessibility Local Resources and Infrastructure Climate Physiography History Geological Setting and Mineralization Regional Geology Local Geology... 16

17 Technical Report for the Candelaria Copper Mining Complex, Chile Page xvi 6.3 Property Geology Geology of the Candelaria Mine Geology of the Santos Mine Geology of the Alcaparrosa Mine Mineralization Mineralization at the Candelaria Mine Mineralization at the Santos Mine Mineralization at the Alcaparrosa Mine Deposit Types Exploration SRK Comments Drilling Drilling at Candelaria Drilling at Ojos del Salado Santos Mine Alcaparrosa Mine Sampling Method and Approach SRK Comments Sample Preparation, Analyses, and Security Historical Samples Core Samples (1985 to Present) Mineral Candelaria Specific Gravity Data Quality Assurance and Quality Control Programs Historical Analytical Quality Control at Alcaparrosa Analytical Quality Control (1985 to Present) Sample Security SRK Comments Data Verification Verifications by the Candelaria Copper Mining Complex Verifications by SRK Site Visit Review of Exploration Data and Mineral Resource Models Mineral Processing and Metallurgical Testing Metallurgical Testing at the Candelaria Processing Plant Mineralogy Mineral Resource Estimates Introduction Resource Estimation Procedures Introduction Open Pit Underground SRK Comments Mineral Resource Statement Reconciliation Mineral Reserve Estimates Minera Candelaria Candelaria Open Pit Mineral Reserves Candelaria Norte Underground Mineral Reserves... 53

18 Technical Report for the Candelaria Copper Mining Complex, Chile Page xvii 14.2 Minera Ojos del Salado Mineral Reserve Statement Mining Methods Introduction Open Pit Mine Design and Production Schedule Underground Mine Design and Production Schedule Underground Mine Plan Waste Dumps Mine Equipment Open Pit Mine Equipment Underground Mine Equipment Recovery Methods Minera Candelaria Plant Processing Flowsheet Reagents Magnetite Recovery Ojos del Salado PAC Plant Candelaria Tailings Storage Facility Los Diques Tailings Facility (Proposed) Project Infrastructure Candelaria Copper Mining Complex Power Supply Punta Padrones Port Facilities Fresh Water Supply Market Studies and Contracts Environmental Studies, Permitting, and Social or Community Impact Environmental Studies and Background Information Permitting and Compliance Environmental Approvals Sectorial Permits Compliance Management Environment Management Key Environmental Issues Environmental Management System Closure Social and Communities Capital and Operating Costs Operating Costs Mining Operating Costs Processing Operating Costs General and Administrative Costs C1 Cash Costs Capital Costs Economic Analysis Adjacent Properties Other Relevant Data and Information Interpretation and Conclusions

19 Technical Report for the Candelaria Copper Mining Complex, Chile Page xviii 25 Recommendations References APPENDIX A APPENDIX B APPENDIX C Signature Page

20 Technical Report for the Candelaria Copper Mining Complex, Chile Page xix List of Tables Table i: Consolidated Audited Mineral Resource Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis)... viii Table ii: Consolidated Audited Mineral Reserve Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis)... ix Table 1: Responsibility of Feasibility Technical Report Sections... 2 Table 2: Qualified Persons... 3 Table 3: Royalty Characteristics for Candelaria Tenements... 8 Table 4: Payable Metal in Concentrate (100% Basis) Table 5: Summary Development History of the Candelaria Copper Mining Complex Table 6: Summary of 2015 to 2018 Exploration Program Table 7: Summary of Drilling Activities at Candelaria Mine (Open Pit and Underground) Table 8: Summary of Drilling Activities Completed at the Santos Mine Table 9: Summary of Drilling Activities Completed at the Alcaparrosa Mine Table 10: Rock Hardness Classification Table 11: Classification Parameters (Open Pit and Underground) Table 12: Underground Interpolation Data and Parameters for Candelaria Table 13: Underground Interpolation Data and Parameters for Candelaria Norte Table 14: Underground Interpolation Data and Parameters for Alcaparrosa Table 15: Underground Interpolation Data and Parameters for Santos Table 16: Audited Mineral Resource Statement*, Compañía Contractual Minera Candelaria, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Table 17: Audited Mineral Resource Statement*, Compañía Contractual Minera Ojos del Salado, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Table 18: Consolidated Audited Mineral Resource Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Table 19: Monthly Reconciliation between Long Short Term Models and the Mill for the Candelaria Open Pit, Compañía Contractual Minera Candelaria (July 2014 to June 2015) Table 20: Summary of Pit Optimization Parameters Table 21: Summary of Candelaria Norte Mineral Reserve Parameters Table 22: Summary of Santos and Alcaparrosa Mineral Reserve Parameters Table 23: Audited Mineral Reserve Statement*, Compañía Contractual Minera Candelaria, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Table 24: Audited Mineral Reserve Statement*, Compañía Contractual Minera Ojos del Salado,SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Table 25: Consolidated Audited Mineral Reserve Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Table 26: Candelaria Copper Mining Complex Mine Production Schedule (100% Basis) Table 27: Summary of Stope Setting... 70

21 Technical Report for the Candelaria Copper Mining Complex, Chile Page xx Table 28: Underground Mineral Reserve Schedule Table 29: Waste Dump Capacity Table 30: Underground Mining Equipment Table 31: Major Processing Equipment and Systems at Minera Candelaria Table 32: List of Processing Plant Reagents and Consumptions Table 33: Candelaria Fresh Water Supply Wells Table 34: Minera Candelaria Environmental Approvals (RCAs*) Table 35: Changes of Candelaria Approved Under Pertinencia Table 36: Summary of Minera Ojos del Salado Approvals (RCAs*) Table 37: Minera Ojos del Salado Changes Approved Under Pertinencia Table 38: Charges to Minera Candelaria from the Superintendence of Environment Table 39: Environmental Monitoring Program Table 40: Actual and Forecast Unit Operating Costs Table 41: Forecast of Candelaria Open Pit Mining Costs Table 43: Forecast of Operating Cost for Candelaria Underground Operations Table 44: Forecast of Operating Cost for Ojos del Salado Underground Operations Table 45: Forecast of Candelaria Processing Cost Table 46: Forecast of Ojos del Salado Processing Cost Table 47: Forecast of Candelaria General and Administration Cost Table 48: Forecast of Ojos del Salado General and Administration Cost Table 48: C1 Copper Cash Costs (Net of By-Projects) Table 49: Forecast Capital Investment Plan for Minera Candelaria Table 50: Forecast Capital Investment Plan for Minera Ojos del Salado

22 Technical Report for the Candelaria Copper Mining Complex, Chile Page xxi List of Figures Figure i: Location of the Mines Comprising the Candelaria Copper Mining Complex... iv Figure ii: The Infrastructures of the Candelaria Copper Mining Complex... v Figure 1: Location of the Mines of the Candelaria Copper Mining Complex... 6 Figure 2: Candelaria and Ojos del Salado Land Tenure Map... 7 Figure 3: Infrastructure and Landscape in the Project Area Figure 4: Candelaria Copper Mining Complex and Related Infrastructure Figure 5: Regional Geology Setting Around the Candelaria, Alcaparrosa, and Santos Mines Figure 6: Schematic Vertical Section Showing the Location of the Candelaria and Santos Mines (see Figure 4 for section location) Figure 7: Local Geology Setting of the Candelaria Mine Figure 8: Local Geology Setting of the Santos Mine Figure 9: Local Geology Setting of the Alcaparrosa Mine Figure 10: Schematic Section Through IOCG and Magmatic Systems Figure 11: Exploration Areas at the Candelaria Underground Mine Figure 12: Exploration Areas at the Alcaparrosa Mine Figure 13: Exploration Areas at the Santos Mine Figure 14: Location of the Collars of the Boreholes Drilled on the Candelaria Copper Mining Complex Figure 15: Structure of Throughput Forecasting Model Figure 16: Typical Mill Feed Mineralogy (QEMSCAN Analysis) Figure 17: Candelaria Open Pit Sectors Geotechnical Design Recommendations Figure 18: Candelaria Mining Phases Figure 19: Summary of Candelaria Open Pit Mine Development Figure 20: Slope Sectors Rock Quality Designation for Phase 9 (Left) and Phase 11 (right) Figure 21: Candelaria Life of Mine Plan Development Process Figure 22: Candelaria Open Pit Production Schedule Figure 23: Annual Development Plan for 2016 (top) and 2017 (bottom) Figure 24: Annual Development Plan for 2024 (top) and 2026 (bottom) Figure 25: Annual Development Plan for 2029 (top) and 2031 (bottom) Figure 26: Candelaria Norte Mine Layout and Sectors Figure 27: Candelaria Norte Mine Showing the Layout of the Damiana and Susana Sectors Figure 28: Santos Mine Layout and Sectors Figure 29: Alcaparrosa Mine Layout and Sectors Figure 30: Candelaria Life of Mine Plan Development Process Figure 31: Typical Sublevel Open Stope Figure 32: Historical Performance Candelaria Processing Capacity... 75

23 Technical Report for the Candelaria Copper Mining Complex, Chile Page xxii Figure 33: Historical Performance Candelaria Metallurgical Performance Figure 34: Minera Candelaria Flowsheet Figure 35: Ojos del Salado Flowsheet Crushing Plant Figure 36: Ojos del Salado Flowsheet Grinding Plant Figure 37: Ojos del Salado Flowsheet Flotation Plant Figure 38: Desalination Plant Location and Pipeline to Candelaria Site... 85

24 Technical Report for the Candelaria Copper Mining Complex, Chile Page 1 1 Introduction and Terms of Reference The Candelaria Copper Mining Complex comprises two adjacent copper operations producing copper concentrates from open pit and underground mines located near Copiapó in the Atacama Province, Region III of Chile: Compañía Contractual Minera Candelaria (Minera Candelaria) and Compañía Contractual Minera Ojos del Salado (Minera Ojos del Salado). Minera Candelaria is an open pit mine and an underground mine providing copper ore to an on-site concentrator with a capacity of 75,000 tonnes per day. Minera Ojos del Salado comprises two underground mines, Santos and Alcaparrosa. The Santos mine provides copper ore to an on-site concentrator with a capacity of 3,800 tonnes per day, while ore from the Alcaparrosa mine is treated at the Minera Candelaria mill. In 2014, both operations produced a combined 155 kilotonnes of copper, 87,000 ounces of gold, and 1.4 million ounces of silver. The Candelaria Copper Mining Complex is indirectly owned by Lundin (80 percent) and Sumitomo Metals Mining Co., Ltd. and Sumitomo Corporation (collectively, Sumitomo; 20 percent). Lundin is a diversified base metals mining company with operations and projects in Chile, the USA, Portugal, Sweden, and Spain and it produces copper, nickel, zinc, and lead. Lundin is a Canadian public company with offices in Toronto, Canada and its common shares are listed on the Toronto Stock Exchange (symbol LUN) and the NASDAQ OMX market (symbol LUMI). In May 2015, Lundin retained the services of SRK Consulting (Canada) Inc. (SRK) to visit the Candelaria Copper Mining Complex and compile a technical report pursuant to National Instrument Standards of Disclosure for Mineral Projects and Form F1. This report updates the October 6, 2014 Technical Report entitled Technical Report for the Compañía Minera Candelaria and Compañía Minera Ojos del Salado Copper Projects, Atacama Province, Region III, Chile by the same authors. It summarizes the technical information that is relevant to support the disclosure of revised Mineral Resources and Mineral Reserves estimates prepared using revised economic parameters and the positive results of recent exploration programs. The revised mine plan supporting the Mineral Resources and Mineral Reserves estimates was disclosed by Lundin on July 29, This technical report is based on an inspection of the properties by a team of qualified persons, as this term is defined in National Instrument , conducted from July 6 to 10, 2015, a review of technical information made available by Lundin, Minera Candelaria, and Minera Ojos del Salado, and discussions with Lundin technical personnel. The qualified persons have reviewed such technical information and determined it to be adequate for the purposes of this report. The authors do not disclaim any responsibility for this information. 1.1 Terms of Reference The scope of work was defined in an engagement letter executed between Lundin and SRK on May 20, The scope involves mobilizing a team of qualified persons to visit the subject mineral assets to review the technical information relevant to supporting Mineral Resources and Mineral Reserves estimates prepared by Minera Candelaria and Minera Ojos del Salado personnel. The objective of this review is to provide an independent opinion about the Mineral Resources and Mineral Reserves of the Candelaria Copper Mining Complex as of June 30, 2015, and to compile a technical report pursuant to National Instrument to support the disclosure of Mineral Resource and Mineral Reserve Statements for the complex. The responsibilities for each report section are listed in Table 1.

25 Technical Report for the Candelaria Copper Mining Complex, Chile Page 2 Table 1: Responsibility For Technical Report Sections Section Title Responsible - Executive Summary SRK / NMS 1 Introduction SRK 2 Reliance on Other Experts SRK 3 Property Description and Location SRK / Lundin 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography SRK 5 History SRK 6 Geological Setting and Mineralization SRK 7 Deposit Types SRK 8 Exploration SRK 9 Drilling SRK 10 Sample Preparation, Analysis, and Security SRK 11 Data Verification SRK 12 Mineral Processing and Metallurgical Testing SRK 13 Mineral Resource Estimates SRK 14 Mineral Reserve Estimates SRK / NMS 15 Mining Methods SRK / NMS 16 Recovery Methods SRK 17 Project Infrastructure SRK / NMS 18 Market Studies and Contracts SRK / Lundin 19 Environmental Studies, Permitting, and Social or Community Impact SRK 20 Capital Cost and Operating Costs SRK / NMS 21 Economic Analysis SRK 22 Adjacent Properties SRK 23 Other Relevant Data and Information SRK 24 Interpretation and Conclusions SRK / NMS 25 Recommendations SRK / NMS 26 References SRK / NMS 1.2 Qualification of SRK The SRK Group comprises more than 1,600 professionals, offering expertise in a wide range of resource engineering disciplines. The independence of the SRK Group is ensured by the fact that it holds no equity in any project it investigates and that its ownership rests solely with its staff. These facts permit SRK to provide its clients with conflict-free and objective recommendations. SRK has a proven track record in undertaking independent assessments of Mineral Resources and Mineral Reserves, project evaluations and audits, technical reports and independent feasibility evaluations to bankable standards on behalf of exploration and mining companies, and financial institutions worldwide. Through its work with a large number of major international mining companies, the SRK Group has established a reputation for providing valuable consultancy services to the global mining industry. The technical report was compiled by a group of independent qualified persons from SRK with the assistance of John Nilsson, PEng of Nilsson Mine Services Ltd. (NMS). In accordance with National Instrument guidelines, three of the qualified persons visited the Candelaria Copper Mining Complex during July 2015 as shown in Table 2. The review of the geology and Mineral Resources aspects was completed by Dr. Jean-Francois Couture, PGeo and Glen Cole, PGeo, both full time employees of SRK.

26 Technical Report for the Candelaria Copper Mining Complex, Chile Page 3 The review of the underground mining aspect was completed by Gary Poxleitner, PEng, a full time employee of SRK. The review of the open pit mining aspect was completed by John Nilsson, PEng, an independent consultant. The review of the mineral processing and metallurgical testing and recovery methods aspects was completed by Adrian Dance, PEng, a full time employee of SRK. The review of the environmental, social, and permitting aspects was completed by Maria Ines Vidal, MAusIMM an employee of SRK Consulting (Chile) S.A., under the supervision of Cameron C. Scott, PEng, a full time employee of SRK. Table 2: Qualified Persons Company Qualified Person Site Visit Responsibility SRK SRK SRK SRK Independent SRK Jean-François Couture, PGeo (APGO#0197) Glen Cole, PGeo (APGO #1416) Adrian Dance, PEng (APEGBC#37151) Gary Poxleitner, PEng (PEO # ) John Nilsson, PEng (APEGBC#20697) Cameron C. Scott, PEng (APEGBC#11523) July 6 to 10, 2015 June 16 to 18, 2014 No Visit June 10 to 12, 2014 June 16 to 18, 2014 July 6 to 10, 2015 June 10 to 12, 2014 June 16 to 18, 2014 July 6 to 10, 2015 No Visit Overall responsibility on behalf of SRK Project Management (Executive Summary, Sections 1 to 11, 18, 21, 22, 23, 26, and parts of 24 and 25) Geology and Mineral Resources (Section 13, parts of 24 and 25) Review of Processing and Recovery Method (Sections 12, 16, 17, parts of 20, 24, and 25) Underground Mining and Mineral Reserves (Parts of Sections 14, 15, 20, 24, and 25) Open Pit Mining and Mineral Reserves (Parts of Sections 14, 15, 17, 20, 24, 25, and 26) Environmental and Social and Permitting (Section 19) 1.3 Basis of Technical Report This technical report is based on information made available to SRK by Lundin, Minera Candelaria, and Minera Ojos del Salado in an electronic data room, and on information collected during the site visits. The authors have no reason to doubt the reliability of the information provided by Lundin. Other information was obtained from the public domain. This report is based on the following sources of information: Information provided by Lundin, Minera Candelaria, and Minera Ojos del Salado A site visit conducted from July 6 to 10, 2015 Discussions with Lundin, Minera Candelaria, and Minera Ojos del Salado personnel Additional information from public domain sources The qualified persons have reviewed such technical information and have no reasons to doubt the reliability of the information provided by Lundin, Minera Candelaria, and Minera Ojos del Salado. The authors do not disclaim any responsibility for the information provided and reviewed.

27 Technical Report for the Candelaria Copper Mining Complex, Chile Page Declaration SRK s opinion contained herein and effective September 4, 2015 is based on information collected by SRK throughout the course of SRK s investigations. The information in turn reflects various technical and economic conditions at the time of writing the report. Given the nature of the mining business, these conditions can change significantly over relatively short periods of time. Consequently, actual results may be significantly more or less favourable. This report may include technical information that requires subsequent calculations to derive subtotals, totals, and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material. SRK is not an insider, associate or an affiliate of Lundin, Minera Candelaria, or Minera Ojos del Salado. The results of the technical review by SRK are not dependent on any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings.

28 Technical Report for the Candelaria Copper Mining Complex, Chile Page 5 2 Reliance on Other Experts SRK has not performed an independent verification of the land titles and tenures as summarized in Section 3 of this report. SRK did not verify the legality of any underlying agreements that may exist concerning the permits or other agreements between third parties. SRK has relied on the information provided by the legal advisors of Lundin, Bofill Mir & Alvarez Jana, Abogados, Santiago, Chile, in an opinion letter sent to SRK on July 30, 2015, which is attached as Appendix A regarding the ownership status of the Candelaria and Ojos del Salado properties. The reliance applies solely to the legal status of the rights disclosed in Section 3.

29 Technical Report for the Candelaria Copper Mining Complex, Chile Page 6 3 Property Description and Location The Candelaria and Ojos del Salado mines and surrounding tenements are located in Chile s Atacama Province, Region III, approximately 20 kilometres south of the city of Copiapó and approximately 650 kilometres north of Santiago. The properties are connected to the well-maintained Chilean road system (Figure 1). The properties are located at approximately 27 degrees 30 minutes latitude south and 70 degrees, 15 minutes longitude west. Figure 1: Location of the Mines of the Candelaria Copper Mining Complex 3.1 Mineral Tenure Minera Candelaria The Candelaria property comprises 276 mining exploitation concessions (approximately 5,849 hectares) and 59 mining exploration concessions (approximately 6,280 hectares) (Figure 2).

30 Technical Report for the Candelaria Copper Mining Complex, Chile Page 7 Figure 2: Candelaria and Ojos del Salado Land Tenure Map

31 Technical Report for the Candelaria Copper Mining Complex, Chile Page 8 The concessions either have been granted or are in the process of being granted. A complete list of tenements is provided in Appendix B. Detailed land tenure map and surface rights maps are shown in Appendix C. The tenements are free of mortgages, encumbrances, prohibitions, injunctions, and litigation. The tenements are not affected by royalties except for those listed in Table 3. No mining is currently taking place on these tenements nor are they contemplated in the current life of mine plan. Other than disclosed herein, there are no other known factors or risks that may affect access, title, or the right or ability to perform work on the property. Table 3: Royalty Characteristics for Candelaria Tenements Tenement Name Tenement Type Royalty Description Santa Gemita II Uno al Veite Mining Exploitation Concession US$0.01 per pound of fine copper produced from Santa Gemita III Uno al Veinte Mining Exploitation Concession minerals extracted from these mining concessions. Santa Gemita IV Una al Cinco Mining Exploitation Concession Royalty payment obligation starts once Minera Santa Gemita V Una al Diez Mining Exploitation Concession Candelaria has extracted from these concessions Brisa 41 a Brisa 45 Mining Exploitation Concession ore equivalent to an amount greater than 300 pounds of fine copper. Roro 1/6 Mining Exploitation Concession US$3.00 per tonne of extracted ore Minera Ojos del Salado The Ojos del Salado property comprises 195 mining exploitation concessions (approximately 9,286 hectares) and 29 mining exploration concessions (approximately 3,400 hectares) (Figure 2). The concessions either have been granted or are in the process of being granted. A complete list of tenements is provided in Appendix B. Detailed land tenure map and surface rights maps are shown in Appendix C. The tenements are free of mortgages, encumbrances, prohibitions, injunctions, and litigation. There are no other known factors or risks that may affect access, title, or the right or ability to perform work on the property. 3.2 Water Use Rights Minera Candelaria is the owner of underground water use rights of consumptive and permanent use for approximately 1,196 litres per second. The underground water use rights are legally registered in the name of Minera Candelaria, free of mortgages, encumbrances, prohibitions, injunctions, and litigation. Minera Candelaria is the property owner of superficial water use rights that are equivalent to approximately 62 litres per second. The superficial water use rights are legally registered in the name of Minera Candelaria, free of mortgages, encumbrances, prohibitions, injunctions and litigation. Minera Ojos del Salado is the property owner of underground water use rights of consumptive and permanent use for a total of 50 litres per second. The underground water use rights are legally registered in the name of Minera Ojos del Salado, free of mortgages, encumbrances, prohibitions, injunctions, and litigation. Minera Ojos del Salado is the property owner of superficial water use rights in the Las Rojas Channel that are equivalent to approximately 21 litres per second. The superficial water use rights are legally registered in the name of Minera Ojos del Salado, free of mortgages, encumbrances, prohibitions, injunctions, and litigation.

32 Technical Report for the Candelaria Copper Mining Complex, Chile Page 9 With the commissioning of a desalination plant located at the Punta Padrone port site in early 2013, the Candelaria Copper Mining Complex ceased extracting process water from underground water sources in November The underground water rights remain active and are used for potable and emergency purposes. 3.3 Mineral Rights in Chile There are two types of mining concessions in Chile: exploration concessions and exploitation concessions. According to the Chilean mining legislation, the following minerals and substances are not subject to a mining concession: (i) liquid or gaseous hydrocarbons; and (ii) lithium. This means that the holder of a mining concession will not be able to exploit the lithium of its concession, where lithium exploitation is reserved exclusively for the state. Nevertheless, Article 8 of the Chilean Mining Code permits the state to allow particulars to exploit lithium reserves by granting an administrative concession or by entering into a special operation agreement. Excluding liquid or gaseous hydrocarbons and lithium, the mining concessioner can exploit and benefit from all other minerals within the boundaries of the relevant concessions, without additional administrative concessions or operation agreements. In accordance with that set forth in the Chilean Mining Code, every titleholder of a mining concession, whether exploitation or exploration, has the right to establish an occupation easement over the surface properties required for the comfortable exploration or exploitation of its concession. In the event that the surface property owner does not voluntarily agree to the granting of the easement, the titleholder of the mining concession may request such easement before the Courts of Justice, which shall grant the same upon determination of due compensation for losses. The main characteristics of exploration and exploitation concessions are described in the following subsections Exploration Concessions The titleholder of an exploration concession has the right to carry out all types of mining exploration activities within the area of the concession. Exploration concessions can overlap or be granted over the same area of land, however, the rights granted by an exploration concession can only be exercised by the titleholder with the earliest dated exploration concession over a particular area. For each exploration concession the titleholder must pay an annual fee of approximately US$1.60 per hectare to the Chilean Treasury. Exploration concessions have a duration of two years. At the end of this period, they may: (i) be renewed as an exploration concession for two additional years in which case at least 50 percent of the surface area must be renounced, or (ii) be converted, totally or partially, into exploitation concessions. A titleholder with the earliest dated exploration concession has a preferential right to an exploitation concession in the area covered by the exploration concession, over any third parties with a later dated exploration concession for that area or without an exploration concession at all and must oppose any applications made by third parties for exploitation concessions within the area for the exploration concession to remain valid.

33 Technical Report for the Candelaria Copper Mining Complex, Chile Page Exploitation Concessions The titleholder of an exploitation concession is granted the right to explore and exploit the minerals located within the area of the concession and to take ownership of the minerals that are extracted. Exploitation concessions can overlap or be granted over the same area of land, however, the rights granted by an exploitation concession can only be exercised by the titleholder with the earliest dated exploitation concession over a particular area. Exploitation concessions are of indefinite duration and an annual fee is payable to the Chilean Treasury of approximately US$8 per hectare. Where a titleholder of an exploration concession has applied to convert the exploration concession into an exploitation concession, the application for the exploitation concession and the exploitation concession itself are back-dated to the date of the exploration concession. A titleholder to an exploitation concession must apply to annul or cancel any exploitation concessions that overlap with the area covered by its exploitation concession within a certain time period in order for the exploitation concession to remain valid.

34 Technical Report for the Candelaria Copper Mining Complex, Chile Page 11 4 Accessibility, Climate, Local Resources, Infrastructure, and Physiography The properties are located in the Atacama Province, Region III of northern Chile, at an elevation of approximately 650 metres above sea level and approximately 20 kilometres south of the city of Copiapó and 5 kilometres west of the town of Tierra Amarilla. 4.1 Accessibility The properties are accessible by two maintained dirt roads, one coming through the Tierra Amarilla community and the other branching off of Route 5, the Pan-American Highway, a well-maintained multi-lane highway. Copiapó regional airport is serviced by regional flights from Santiago and other destinations on a daily basis. The regional airport is located approximately midway between Copiapó in the south and Caldera in the north. Copiapó itself is strategically located on the Pan-American Highway. 4.2 Local Resources and Infrastructure Copiapó is a modern city with all regular services and a population of approximately 160,000. Numerous mining-related businesses are located in the city. Personnel employed by the Candelaria Copper Mining Complex come from the Copiapó region. The Candelaria and Ojos del Salado mines receive electrical power through long-term contracts with AES Gener S.A., a local energy company. The main line to the Candelaria mine is rated at 220 kilovolts at 745 amperes. Ojos del Salado is serviced by a 23 kilovolt line with 235 amperes. The current contract with AES Gener S.A. expires in The mines water supply comes from a desalination plant (Figure 3A) owned by Minera Candelaria via a pipeline that were both completed in 2013, as well as from a nearby wastewater treatment facility. The commissioning of the desalination plant has enabled the mines to cease drawing ground water from the Copiapó aquifer, the historic source of water, except in emergency situations and for potable water supply. Concentrate is being shipped from the company-owned Punta Padrones port facility at the port of Caldera (Figure 3C).The facility has a storage capacity of 45,000 wet metric tonnes and can handle ships with a capacity of up to 58,000 tonnes and a draft of 12.4 metres. The port has a total annual capacity of some 3.5 million wet metric tonnes, well in excess of current and planned production. Key mine infrastructure is shown in Figure Climate Copiapó has a desert climate with mild temperatures year round. Winters are mild with warm temperatures; mid-winter maximums in July reach approximately 20 degrees Celsius. Winter nighttime temperatures average approximately 7 degrees Celsius. Summers are warm with a January average of 22 degrees Celsius. Annual precipitation is approximately 17 millimetres, of which the majority falls in the winter months. Exploration and mining can occur year round.

35 Technical Report for the Candelaria Copper Mining Complex, Chile Page Physiography The project area is mountainous with a relief varying between 200 and 1,000 metres above sea level (Figure 3A-D). Vegetation is minimal outside of inhabited valleys where irrigation is used to support vegetation that is capable of withstanding the desert environment. The mines are located in an active seismic zone. A B C D Figure 3: Infrastructure and Landscape in the Project Area A. Minera Candelaria mine and processing plant B. Minera Ojos del Salado Pedro Aguirre Cerde processing plant C. Desalination plant at Puntos Patrones D. Port storage and loading facility

36 Technical Report for the Candelaria Copper Mining Complex, Chile Page 13 Figure 4: Candelaria Copper Mining Complex and Related Infrastructure

37 Technical Report for the Candelaria Copper Mining Complex, Chile Page 14 5 History Information about the exploration history of the Candelaria and Ojos del Salado mines is scarce. Information presented in this section has been extracted from public databases. The Candelaria deposit was discovered by the Phelps Dodge Corporation (Phelps Dodge) in A feasibility study was completed in 1990, and construction started in October Production commenced in early In 1996, Phelps Dodge announced plans to expand the concentrator throughput with the installation of a second semi-autogenous grinding (SAG) mill. The expansion also included additional mining facilities and new and expanded concentrator facilities. This upgrade was completed in Sumitomo acquired a 20 percent stake in the property in Mine site and district exploration programs have been active since the Candelaria deposit discovery. This work resulted in the discovery of the Alcaparrosa and Candelaria Norte deposits, both of which are now producing mines. In 2007, property ownership changed when Freeport acquired Phelps Dodge. Operations at Candelaria continued uninterrupted. During 2011, a pipeline was completed to bring water from a nearby wastewater treatment facility to the Candelaria mine. A desalination plant at the port of Caldera was commissioned in 2013 at a capacity of 500 litres per second. The Santos mine has been in production since At that time the operation was known as Planta Punta de Cobre and was owned by Caja de Crédito Minero (CACREMI). The plant started with an initial throughput capacity of 250 tonnes per day. It was later renamed the Pedro Aguirre Cerde (PAC) plant. In 1978, the PAC plant was acquired by private individuals from Empresa Nacional de Minería (ENAMI), legal successor to CACREMI. The Santos mine and Resguardo claims were also acquired, which together formed Compañía Minera Ojos del Salado S.A., MINOSAL. The processing capacity was increased to 650 tonnes per day. Phelps Dodge acquired 10 percent of Ojos del Salado in 1983 and became sole owner of the property in The PAC plant was expanded for a second time in 1988, increasing capacity to 1,700 tonnes per day. Subsequent upgrades have increased the plant capacity to the current 3,800 tonnes per day. Sumitomo acquired its 20 percent interest in Minera Ojos del Salado in In 1995, construction of a second underground operation at Alcaparrosa commenced, with production starting in early In November 2014, Lundin acquired Freeport s 80 percent interest in the Candelaria Copper Mining Complex. The Candelaria Copper Mining Complex has been a significant producer of copper since the mid- 1990s. Table 4 shows the payable copper and gold metal in concentrates produced since 2011.

38 Technical Report for the Candelaria Copper Mining Complex, Chile Page 15 Table 4: Payable Metal in Concentrate (100% Basis) Metal Unit * Copper kt Cu Gold koz Au * Payable metal sales volume for the first half of 2015 Source: Freeport ( ) and Lundin (2014 and 2015) A summary of the development history of the Candelaria Copper Mining Complex is presented in Table 5. Table 5: Summary Development History of the Candelaria Copper Mining Complex Date Event or Milestone 1927 Minera Ojos del Salado is built under the name Planta Punta de Cobre, and owned by Caja de Crédito Minero (CACREMI). Production started in 1929 with an initial throughput capacity of 250 tonnes per day. It was later renamed the PAC plant PAC plant was acquired by private individuals from Empresa Nacional de Minería (ENAMI), legal continuer of CACREMI. The Santos mine and Resguardo claims were also acquired, which together formed Compañía Minera Ojos del Salado S.A., MINOSAL. The creation of the new mining company generated an expansion, increasing its processing capacity to 650 tonnes per day North American company Phelps Dodge acquired 10 percent of the shares of MINOSAL Phelps Dodge acquired total control of Compañía Minera Ojos del Salado S.A., MINOSAL 1987 Phelps Dodge discovered the Candelaria deposit Phelps Dodge tunnelled 396 metres into the Candelaria sulphide deposit The PAC plant was expanded for the second time to 1,700 tonnes per day Candelaria feasibility study started. By August, Phelps Dodge had spent US$8 million on the project Candelaria feasibility work was completed The Chilean government approved a request by Minera Candelaria to invest US$1.5 billion in the project over a 12-year period Sumitomo acquired a 20 percent interest in Minera Candelaria for US$40 million, plus Sumitomo s share of the total equity capital required to finance construction and development Minera Candelaria began stripping Phase 1 of the open pit at 35 kilotonnes per day The Candelaria processing plant start-up, three months ahead of schedule Minera Candelaria first shipment loaded at port facility The Export-Import Bank (Exim) of Japan agreed to provide a US$150 million loan to assist in financing the expansion at Minera Candelaria. Phelps Dodge completed the expansion project eight months ahead of schedule and at a cost of US$320 million, 10 percent below budget. The expansion included additional mining facilities, the construction of a second SAG mill, and new and expanded concentrator facilities to 70 kilotonnes per day Minera Candelaria mill expansion completed to 70 kilotonnes per day The PAC processing plant operations were stopped due to a low copper price The PAC processing plant operations were resumed due to the improved copper price outlook. Sumitomo acquired 20 percent interest in Minera Ojos del Salado The Candelaria Norte underground mine started production Freeport acquired Phelps Dodge gaining ownership of both Minera Candelaria and Minera Ojos del Salado Construction of the desalination plant commenced at Punta Padrones Completion and full operation of desalination plant October 6, Lundin announced an agreement to acquire Freeport s 80 percent interest in Minera Candelaria and Minera Ojos del Salado. The transaction closed on November 3, 2015.

39 Technical Report for the Candelaria Copper Mining Complex, Chile Page 16 6 Geological Setting and Mineralization 6.1 Regional Geology The Candelaria deposit is located in the Atacama Province, Region III in northern Chile, at the boundary between the Coastal Cordillera and the Copiapó Precordillera. The Coastal Cordillera of Chañaral and Copiapó is composed of Permian to Lower Cretaceous intrusions within a basement of metasedimentary rocks of Devonian to Carboniferous age (Dallmeyer et al., 1996). Volcanic, volcaniclastic, and marine carbonate rocks represent intra- and back-arc sequences that were deposited during Early to Mid-Cretaceous (Arévalo et al., 2006). In the Copiapó Precordillera the oldest exposed rocks are Early Carboniferous in age and correlate with metasedimentary basement rocks in the Coastal Cordillera. They are overlain by Permian to Jurassic sedimentary and volcanic rocks. Permian granitic plutonic complexes in the Precordillera are associated with extensive crustal melting and rifting. Volcanic and sedimentary rocks of the Punta del Cobre Formation, the Bandurrias Formation, and marine carbonate rocks of the Chañarcillo Group are prominently exposed as a belt of calcareous, volcanic, and volcaniclastic rocks in the western Precordillera. They are overlain by the Cerrillos Formation of epiclastic to volcaniclastic rocks. At the base, the Cerrillos Formation contains fluviatile sandstone and conglomerate, as well as freshwater limestone. Volcanic breccias and lava flows become more dominant higher in the sequence. The Candelaria-Punta del Cobre polymetallic sulphide deposits are located to the east of the Atacama fault zone, which extends over 1,000 kilometres along the Chilean coast. The Atacama fault zone is a subduction-linked arc-parallel strike-slip fault system that has been active at least since Jurassic (Marschik and Fontboté, 2001). 6.2 Local Geology The Candelaria, Santos, and Alcaparrosa mines are located in the district of Punta del Cobre. The polymetallic sulphide deposits are hosted in the volcanic rocks of the Punta del Cobre Formation (Figure 5). The Punta del Cobre Formation is overlain by Cretaceous marine calcareous rocks of the Lower Cretaceous Chañarcillo Group. The Chañarcillo Group comprises, from the bottom up, the Abundancia, Nantoco, Totoralillo, and Pabellón formations. In the north and northwest, the rocks of the Chañarcillo Group are interlayered with continental volcanosedimentary rock of the Bandurrias Formation, also of Lower Cretaceous age. The rocks of the Chañarcillo group were deposited in the back-arc facies of a volcanic arc, which is represented by the rocks of the Bandurrias and Punta del Cobre formations. Intrusive rocks of the Coastal Batholith are located mainly to the west of the Punta del Cobre district (Figure 5) and are dated at 123 and 111 million years. The contact aureole of this batholith affects, with decreasing intensity to the east, all the Lower Cretaceous rocks in the Punta del Cobre district. At the latitude of Candelaria mine, the Coastal Batholith forms a tabular multi-phase plutonic complex formed, from oldest to youngest, by the La Brea diorite, the San Gregorio monzodiorite, the tonalitic to granodioritic Los Lirios pluton, and the Ojancos and El Granate microgranite (Figure 5). The largest area is covered by the La Brea pluton.

40 Technical Report for the Candelaria Copper Mining Complex, Chile Page 17 Section on Figure 6 Figure 5: Regional Geology Setting Around the Candelaria, Alcaparrosa, and Santos Mines Source: Minera Candelaria The dominant structural elements in the Candelaria-Punta del Cobre area are a large northeasttrending antiform (Tierra Amarilla Anticlinorium), a southeast verging fold-and-thrust system and a dense set of north-northwest to northwest-trending high-angle sinistral transcurrent faults (Marschik and Fontbote, 2001). This fold is part of the Paipote fold and thrust system comprising a set of northnortheast-trending folds and thrust sheets (Arévalo et al., 2006). One of the folds in the Candelaria mine area is the northeast-trending Tierra Amarilla Anticline, affecting all Lower Cretaceous sedimentary and volcanic rock. Northeast-striking reverse faults parallel to the Tierra Amarilla Anticline are part of the Paipote fold and thrust belt. Mylonitic shear zones and cataclastic rocks locally form the contact between the intrusive rocks and Early Cretaceous host rocks. Ductile deformation is recorded in the Ojancos, Candelaria, and Florida shear zones. Both the Tierra Amarilla anticline and the Ojancos-Florida shear zone are displaced by north-northwest-trending brittle faults (Figure 5). The Lar, San Gregorio, and Ojancos faults show sinistral strike-slip displacement. The rocks located between the major north-northwest-striking faults also appear displaced by shorter faults of northwest- to northnorthwest-strike orientation. 6.3 Property Geology Geology of the Candelaria Mine Calcareous, sedimentary, and volcaniclastic rock of the Abundancia and Punta del Cobre formations are exposed within the Candelaria open pit. Due to the closer proximity to the Coastal Batholith, rocks in the Candelaria open pit show stronger metasomatism and metamorphism than in other sulphide deposits of the Punta del Cobre district (Figure 6).

41 Technical Report for the Candelaria Copper Mining Complex, Chile Page 18 The lowermost unit in the Candelaria mine is the Lower Andesite, a compact sequence of porphyritic to massive andesite and volcaniclastic breccias with intense biotite-quartz-magnetite-albite alteration (Figure 7). The Lower Andesite is overlain by a sequence of stratified volcaniclastic and tuffs, which are further because of alteration and mineralisation into pink garnet skarn and magnetite breccia. The Upper Andesite of the Punta de Cobre Formation consists of a homogenous sequence of undifferentiated volcaniclastic and andesitic rock. The biotite-bearing andesite exhibits alteration varying from quartz-pyroxene hornfels to pyroxene-scapolite-garnet skarns. W E Candelaria Santos Punta del Cobre Figure 6: Schematic Vertical Section Showing the Location of the Candelaria and Santos Mines (see Figure 5 for section location) SW NE Santos Figure 7: Local Geology Setting of the Candelaria Mine Source: Minera Candelaria Source: Minera Candelaria (2015) The Abundancia Formation of the Chañarcillo Group in the Candelaria mine consists of fine-grained biotite-, silica-, or clinopyroxene-bearing calcareous metasandstone and mudstone. The stratified rocks are cut by dacite and lamprophyre dikes. The hydrothermally-altered dacite porphyry dikes and sills locally contain copper mineralization. The youngest rocks in the Candelaria mine are postmineralization lamprophyre dikes.

42 Technical Report for the Candelaria Copper Mining Complex, Chile Page 19 At the Candelaria mine a low angle shear zone, where ductile to brittle high-angle faults merge, marks synplutonic brittle-to-ductile extensional deformation (Arévalo et al., 2006) Geology of the Santos Mine The rocks of the Santos mine are mainly of the Punta del Cobre and Abundancia formations. A typical section showing the geology of the Santos mine is shown in Figure 8. The lowermost rocks of the Punta del Cobre Formation are porphyritic to aphanitic andesite of the Lower Andesite. The Lower Andesite is conformably overlain by the dacitic domes hydrothermally altered to an albitic-pyritic assemblage that is overlain by a sequence of volcaniclastic breccias with interbedded layers of siltstone and sandstone. The basal portion of this unit (locally termed the albitoforo) hosts manto-type copper mineralization. Conformably overlying the breccias are fine grained clastic rocks and Upper Andesite basaltic andesite flows. Intercalations of lenticular limestone, polymict breccias, volcanic tuffs, sandstone and iron-rich chert also occur within the Upper Andesite. The overlying Abundancia Formation comprises well stratified marine sedimentary rock, mainly calcareous sandstone. The rocks of the Abundancia Formation do not contain significant mineralization. Intrusive rocks in the Santos mine are represented by a hornblende diorite, which intrudes the Punta del Cobre Formation and the lower Abundancia Formation. Dikes cut various stratigraphic levels of the Punta del Cobre Formation and some layers of the Abundancia Formation. Andesitic dikes trend northwest and are up to 4 metres thick. Dacitic dikes occur in variable orientations ranging from northwest to northeast trends and are up to 5 metres thick. Dikes post-date the mineralization. The Santos mine is located in the eastern limb of the north-northeast-trending Tierra Amarilla anticline. The stratigraphic contacts in the eastern limb of the fold dip approximately 25 degrees. SW NE W Candelaria Alluvium - Colluvium Abundancia Formation (Limestone-Sandstone) Upper Andesites and Siltstones Albitophyre Volcano-clastic Breccia Breccia Bodies Mgt-Act-Qz-Py-Cpy Alteration Lower Andesites Mineralized Body 0.4% Cu m Source: AMEC (2013b) Figure 8: Local Geology Setting of the Santos Mine

43 Technical Report for the Candelaria Copper Mining Complex, Chile Page Geology of the Alcaparrosa Mine Alcaparrosa mine is located in the northern part of the Punta del Cobre mining district (Figure 5), in the west flank of Copiapo valley. A typical section of the stratigraphic units present in the mine are shown in Figure 9. Punta del Cobre formation is subdivided in lower andesites, volcanoclastic breccias, albitophyre and pyroxene- scapolite hornfels interbeded with garnetites. The lower andesites consist of aphanitic, porphiric, blastoporphiric and brecciated dark grey andesites. The albitophyre is a light grey porphiric dacite with phenocrysts of plagioclase and occasionally quartz eyes in an aphanitic silica groundmass. The volcanoclastic breccia contains porphyric clasts altered to potasic feldespar in a matrix with high contents of magnetite. Hornfels and garnetites are concordant located over the albitophyre and correspond to the metamorphosed equivalents of the upper part of Punta de Cobre Formation and Abundancia Formation. In the southern central part of the mine a granodiorite stock cuts the whole sequence. The metasedimentary sequence overlying the Punta del Cobre Formation rocks likely corresponds to the Abundancia Formation. Two subunits are identified in the metasediment unit: silicified Metasediment, a quartz hornfels, and pyroxene-scapolite-garnet skarn with metasomatic banding. Intrusive rocks are andesitic, granitic, dioritic and monzodioritic dikes, and a diorite stock. The diorite stock is a post-mineral intrusion with equi-granular plagioclase and hornblende crystals. The diorite stock is cut by dikes. Andesite dikes are porphyritic in texture and do not contain any mineralization. Granitic dikes have aplitic to porphyritic texture and show disseminated traces of pyrite and magnetite, though they do not contain any copper mineralization. Dioritic dikes are finegrained to equi-granular and barren. Monzodioritic dikes contain xenoliths of magnetite and chalcopyrite veinlets. W 650 Section 28 (N 6,962,195) E Copiapo River 480 Rocio Fault Piroxene Scapolite Skarn Granodiorite Intrusive Albitofiro Tuff Gravels/Alluvium Deposits GE 150S Albitofiro Tuff Magnetite Breccia 50 Figure 9: Local Geology Setting of the Alcaparrosa Mine Lower Andesites 200m (Source: Exploration Ojos del Salado, 2015) 50

44 Technical Report for the Candelaria Copper Mining Complex, Chile Page Mineralization Mineralization at the Candelaria Mine The main mineralized body at the Candelaria mine is hosted in rocks of the Punta del Cobre Formation. Specifically, the host rocks are massive andesite and breccias of the lower andesite, and volcanic tuffs and volcaniclastic rocks at the base of the upper andesite. In the metasedimentary rock, the mineralization is confined to a few isolated layers (mantos). The mineralized body is up to 400 metres thick in its central part and thins towards the edges. In east-west sections, the mineralization has a lenticular, downward concave shape with a steep eastern limb and a shallowly dipping western limb. The shape of the mineralized body in north-south section is irregular. In plan view, the extent of the mineralization is approximately 1,400 metres by 2,400 metres. The mineralized body was folded after its formation. The north-northeast-trending fold axis corresponds to the Tierra Amarilla anticline. The mineralization assemblage in the Candelaria mine consists of chalcopyrite, magnetite, pyrite, pyrrhotite, and sphalerite. Biotite, calc-silicate minerals, and potassium feldspar constitute the gangue minerals. Pervasive potassic alteration is associated with the mineralization. Dominant copper mineralization styles are mantos, veins, breccia filling, and veinlets along foliation planes. Gold occurs within chalcopyrite and in fractures in pyrite. Chalcopyrite and pyrite also occur in secondary northwest and north-northwest-striking faults Mineralization at the Santos Mine Chalcopyrite is the only primary copper sulphide present in the Santos mine. Additionally to copper mineralization, there are economic values of gold. Most frequent gangue minerals are pyrite, magnetite, actinolite, k-feldspar, chlorite, biotite and hematite. In the Santos mine, three types of mineralized bodies are observed: veins, mantos, and breccia bodies. An important vein in the Santos mine is the Isabel, which is oriented northwest-striking, and extends over 1 kilometre in length and between 4 and 30 metres in width. Manto-type mineralization occurs as tabular bodies hosted in two sedimentary horizons located in the floor and roof of the albitophyre. The manto mineralization is characterized by variable iron contents with magnetite common in the north and deeper areas, and specular hematite in the south. Mineralization occurs within breccia bodies is typically contained with the albitoforo and lower andesite and is formed by steeply west-dipping and north-northwest- to northwest-striking bodies Mineralization at the Alcaparrosa Mine Mineralized bodies at the Alcaparrosa mine have a manto-type geometry that trend to the northeast and dip to the west. Ore and gangue mineralogy consists of chalcopyrite, pyrite, and magnetite, with trace pyrrhotite, molybdenite, and arsenopyrite. Mineralization styles at the Alcaparrosa mine also occurs as veinlets defining dense stockwork, breccias (hydrothermal potassium feldspar and magnetite), as well as fine dissemination in biotite meta-andesites. High grade bodies are also found in massive veins striking north-northwest, north, and east.

45 Technical Report for the Candelaria Copper Mining Complex, Chile Page 22 7 Deposit Types The copper-gold sulphide mineralization at the Candelaria Copper Mining Complex is generally referred to as iron oxide copper gold (IOCG). Depending on lithology and the structural setting, the polymetallic sulphide mineralization can occur as veins, hydrothermal breccias, replacement mantos, and calcic skarns (Sillitoe, 2003). The Candelaria IOCG deposit lies within the metamorphic aureole of the Lower Cretaceous magmatic arc plutonic suite in the Candelaria-Punta del Cobre district, Atacama Province, northern Chile. IOCG deposits are primarily defined by their elevated magnetite and/or hematite with elevated copper and gold contents (Sillitoe, 2003). The IOCG belt located in the Coastal Cordillera of northern Chile and southern Peru is part of a volcano-plutonic arc of Jurassic to Early Cretaceous age. The arc is characterized by voluminous tholeiitic to calc-alkaline plutonic complexes of gabbro to granodiorite composition and primitive, mantle-derived parentage. Major arc-parallel fault systems developed in response to extension and transtension induced by subduction roll-back at the retreating convergent margin. Most of the sulphide mineralization at Candelaria and Ojos del Salado occurs in breccias, stockwork veinlets, and disseminations in andesite, especially where the rocks are strongly foliated. Highergrade copper mineralization is controlled by stratigraphy in mantos and by faults, trending predominantly northwest. The host rocks are thermally metamorphosed (hornfels and skarn) in the carapace of the Copiapó batholith, within 1 kilometre from the intrusion. The top of the mineralization system consists of magnetite-amphibole skarn in calcareous meta-tuff with pyrrhotite, pyrite and chalcopyrite (Figure 10). Figure 10: Schematic Section Through IOCG and Magmatic Systems Source: Richards and Mumin (2013)

46 Technical Report for the Candelaria Copper Mining Complex, Chile Page 23 8 Exploration Candelaria and Ojos del Salado are active mine operations. Exploration work completed prior to commencement of mining is not relevant to this technical report. Ongoing exploration is conducted by Minera Candelaria and Minera Ojos del Salado with the primary purpose of supporting mining and increasing Mineral Resources available for mining. The exploration strategy is focused on tracing known mantos and vein targets as extensions from current orebodies utilizing host rock and alteration features down dip and along strike from existing underground infrastructure. Historically, this strategy has proven very effective in defining new Mineral Resources available for underground mining. Exploration work is completed by mine personnel. Much of the exploration is conducted from underground, requiring significant underground development to provide adequate drilling stations. Regional exploration is also undertaken on the large properties surrounding the mines to identify targets and define new Mineral Resource areas. From 2010 to 2014, Minera Candelaria and Minera Ojos del Salado have together invested more than US$117 million in exploration to expand the Mineral Resources primarily below the Candelaria open pit, to the north and south, and at the three underground mines. During this period, 1,344 core boreholes (313,907 metres) were drilled requiring 11,114 metres of underground development to provide access for drilling. At Minera Candelaria, new discoveries were made beneath the eastern and southern portions of the open pit (the Susana and Damiana deposits) and as well at the existing Candelaria Norte underground operations (Wendy Norte deposit; Figure 11). During the first half of 2015, new Mineral Resource models were prepared for Susana, Damiana, Wendy Norte, Lila, and Elisa Norte II (Figure 11). New discoveries were also made from surface drilling programs. At Minera Ojos del Salado, new discoveries were made at Alcaparrosa (Southeast, Southwest, Central Este, Viviana; Figure 12) and at Santos (Melendez Central and Helena Sur; Figure 13). New Mineral Resource and Mineral Reserve estimates were prepared in the first half of 2015, extending the life of the Alcaparossa and Santos mines to 2021 (see Section 15.4). The sulphide zones remain open south of the Southwest and Southeast zones of Alcaparrosa (Figure 12) and south of the Helena Sur deposit at Santos (Figure 13). Wide spaced and infill drilling is ongoing and will improve the confidence in the continuity of the sulphide mineralization and investigate its lateral extensions.

47 Technical Report for the Candelaria Copper Mining Complex, Chile Page 24 N Candelaria Property Boundary Models 2013 Model 2015 Models m Figure 11: Exploration Areas at the Candelaria Underground Mine Source: Minera Candelaria

48 Technical Report for the Candelaria Copper Mining Complex, Chile Page 25 N Ojos del Salados Property Boundary Viviana North Models Northwest 2015 Models Caseron 11 Central Central Este Southwest Southeast SECTION m Ojos del Salados Property Boundary Figure 12: Exploration Areas at the Alcaparrosa Mine Source: Minera Ojos del Salado

49 Technical Report for the Candelaria Copper Mining Complex, Chile Page 26 N Ojos del Salados Property Boundary Models 2015 Models m Figure 13: Exploration Areas at the Santos Mine Source: Minera Ojos del Salado

50 Technical Report for the Candelaria Copper Mining Complex, Chile Page 27 Building on this exploration success, an aggressive exploration program is planned by Minera Candelaria and Minera Ojos del Salado for the period 2015 to 2018, targeting the lateral extensions of the areas investigated since The planned exploration program (Table 6) includes approximately 7,240 metres of underground development and 347,000 metres of core drilling at an estimated combined cost of US$119 million. Table 6: Summary of 2015 to 2018 Exploration Program Drifts Drifts Drilling Drilling Location Year (metre) (US$M) (metre) (US$M) Candelaria UG ,100 $5.1 72,632 $ ,500 $6.9 49,000 $ ,500 $6.9 45,000 $ ,000 $4.6 25,000 $7.4 Alcaparrosa $0.6 18,250 $ $2.2 10,000 $ $3.0 5,000 $ ,000 $4.0 Santos ,250 $ $1.7 10,000 $ $1.7 5,000 $ ,000 $4.0 Regional ,030 $ ,100 $ ,700 $5.0 Total 7,240 $ ,962 $86.3 The objective of this aggressive exploration program is to define and upgrade the classification of additional higher grade Mineral Resources in the underground mines to replace the processing of lower grade feed from the open pit or surface stockpiles and improve the life of mine copper production. The aggressive exploration program initiated in 2010 has resulted in significant new discoveries, with a positive impact on the life of the three underground mines. The sulphide zones explored since 2010 remain open laterally and it is expected that the proposed exploration program will continue to expand the Mineral Resources, with the potential to defer further the depletion of Mineral Reserves in the three underground mines. At Candelaria, the 2015 exploration program includes 38,400 metres of core drilling at Lila (Figure 11), and, 1,100 metres of underground development and 26,100 metres of core drilling to explore the southern extensions Susana and Damiana. At the Alcaparrosa mine, the 2015 exploration program includes 140 metres of underground development, and 18,250 metres of core drilling in the Viviana area (Figure 12). At the Santos mine, the 2015 exploration program includes 18,250 metres of core drilling at Helena and at Helena Sur (Figure 13). In addition to the underground exploration programmes, a compilation of regional geological data has been commenced in order to generate a geological model to facilitate district wide target

51 Technical Report for the Candelaria Copper Mining Complex, Chile Page 28 generation. Included in this programme is the generation of a comprehensive 3-dimensional GOCAD model of the region. 8.1 SRK Comments The Candelaria mine is, at present, primarily considered an open pit mine. Aggressive exploration drilling completed at Minera Candelaria and Minera Ojos del Salado since 2010 demonstrates the excellent potential for extending the sulphide zones in the three underground mines and for new discoveries in other areas of the properties amenable for underground mining. At Minera Candelaria, new sulphide zones have been defined below and to the south of the Candelaria open pit (Damiana and Susana; Figure 11) and to the north of the Wendy deposits (Lila; Figure 11). New Mineral Reserves were declared in April 2015 at Damiana and Susana. The known sulphide zones remain open to the north and south of the Candelaria open pit beyond the drilling information and these new targets, including extensions to Lila, Susana and Damiana, remain to be fully investigated. At Alcaparrosa, all sulphide zones remain open laterally and at depth. New Mineral Resource estimates have been prepared for five new deposits (Southwest, Southeast, Central Este, and Viviana; Figure 12). At the Santos mine, new sulphide mineralization has been defined to the southeast and the Malaquita Norte structure (Figure 13) is open at depth with good potential for expansion. New Mineral Resource models were prepared for the Melendez Central and Helena Sur deposits during the first half of The exploration potential of the Candelaria Copper Mining Complex remains excellent. SRK is of the opinion that the aggressive exploration program as envisioned by the company will continue to expand the underground Mineral Resources in all three underground mines, with a positive impact on the life of these assets.

52 Technical Report for the Candelaria Copper Mining Complex, Chile Page 29 9 Drilling 9.1 Drilling at Candelaria From 1990 to 2014, 2,618 core and percussion boreholes (801,500 metres) have been drilled in and around the Candelaria mine. Approximately 93 percent of all drilling comprised core boreholes. Approximately 80 percent of all core boreholes were drilled using NQ equipment, the rest using HQ equipment. Initially, drilling was completed by Geotech Boyles Bros. S.A. After the completion of borehole 325, drilling services were provided by Connors Drilling, LLC. Starting in 2012, Boart Longyear was contracted to complete all drilling. Until 2011, boreholes were surveyed by mine personnel. No information exists on instruments or methodologies used for these surveys. Since 2011, SG Drill Servicios Geol (SG Drill) based in Copiapó, has been contracted to complete down-hole surveys. SG Drill uses a Reflex tools with readings at 3-metre intervals. The majority of the boreholes were drilled with an azimuth of 065 or 245 degrees with inclinations between -90 and +90 degrees. Table 7 summarizes the drilling information for Candelaria. Table 7: Summary of Drilling Activities at Candelaria Mine (Open Pit and Underground) Year Percussion Core Geotechnical Underground Total Number Length (m) Number Length (m) Number Length (m) Number Length (m) Number Length (m) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , * , , ,744 Total 101 8,753 1, , , ,733 2, ,500 * First and second quarter of 2015

53 Technical Report for the Candelaria Copper Mining Complex, Chile Page 30 Figure 14: Location of the Collars of the Boreholes Drilled on the Candelaria Copper Mining Complex

54 Technical Report for the Candelaria Copper Mining Complex, Chile Page 31 Core recovery is routinely measured and typically exceeds 90 percent. Borehole spacing in the Mineral Resource areas is approximately 35 metres and wider along the edges of the Mineral Resource areas and beyond (Figure 14). 9.2 Drilling at Ojos del Salado Santos Mine In the Santos sector, a total 1,097 core boreholes (224,705 metres) were drilled from underground and surface stations since 1988 (sectors of Supernova, Melendez South and Central, and Helena South). The majority of the boreholes were drilled with an azimuth of 065 or 245 degrees with inclinations between -82 and +90 degrees. Borehole lengths vary between 40 and 728 metres. Down-hole deviation is monitored at regular intervals using Reflex tools. Table 8 shows a summary of the drilling completed for each sector. Table 8: Summary of Drilling Activities Completed at the Santos Mine Surface Underground Sector Borehole Total Length Borehole Total Length Count (metres) Count (metres) Years Drilled Supernova , , Melendez South , Melendez Central , Helena South 55 3, , Total 55 3,765 1, ,940 All boreholes are collared with HQ-sized equipment; boreholes size was reduced in long boreholes or in fracture zones. All drilling in the Santos mine was originally completed by the Connors Drilling Group. More recent drilling was completed by Boart-Longyear Alcaparrosa Mine The borehole database for the Alcaparrosa mine contains 972 boreholes (219,200 metres) drilled from surface and underground locations. The database is subdivided into six sectors (Table 9). Table 9: Summary of Drilling Activities Completed at the Alcaparrosa Mine Surface Underground Sector Borehole Total Length Borehole Total Length Year Drilled Count (metres) Count (metres) Main Sector , , , 2003, 2004 Caseron , , 2009 North 3 1, , , 1991, 1997, 2004, 2005, 2008, 2009 Northwest 3 1, , , 1992, 1994, 1997, 2004, 2007, 2009, 2010 Central 6 2, , , 1993, 1994, 2007, 2011 Sur oeste , , 1994, 1997, 2007, 2011, 2012, 2013 SW-SE-CE 59 22, , , 2003, 2004, 2006, 2007, Total , ,638

55 Technical Report for the Candelaria Copper Mining Complex, Chile Page Sampling Method and Approach Logging and sampling procedures at Minera Candelaria and Minera Ojos del Salado follow similar approaches using documented protocols. Geology logging records information about rock type, mineralogy, textures, structures, mineralization, and alteration. Geotechnical logging records information about core recovery, rock quality designation (RQD), hardness, and the number and nature of fractures. In addition, point load tests were performed at selected intervals. Until January 2012, geotechnical logging was performed by mine personnel, after this date that work was contracted. Core photographs were initially taken of uncut core, later core photos were taken from cut core. Until 2006, samples were taken at 1-metre intervals. From 2007 onward, sample intervals for the open pit were increased to 2 metres. Analytical samples were taken from core cut lengthwise using a diamond saw. Half of the core is retained in core boxes for reference. For the Candelaria open pit, core was sampled from two bench heights above known mineralization to the bottom of the borehole. For the underground mines, core is sampled on the basis of visible sulphides. At Candelaria core samples are 2 metres in length. In the underground mines, core samples are 1 metre in length. The top parts of boreholes were not sampled. Sampling is carried out by a contractor under the supervision of mine personnel. Primary information such as collar coordinates, survey data, as well as geological and geotechnical logging data was entered into Microsoft Excel sheets and later aggregated into a final database by authorized personnel from the geology team. Since 2014 logging information is captured digitally and transferred to the main project database automatically. 9.4 SRK Comments SRK is of the opinion that the drilling and sampling procedures adopted by the Candelaria Copper Mining Complex are consistent with generally recognized industry best practices. The resultant drilling pattern is sufficiently dense to interpret the geometry and the boundaries of the copper and gold mineralization with confidence. The core samples were collected by competent personnel using procedures meeting generally accepted industry best practices. The process was undertaken or supervised by suitably qualified geologists. SRK concludes that the samples are representative of the source materials and there is no evidence that the sampling process introduced a bias.

56 Technical Report for the Candelaria Copper Mining Complex, Chile Page Sample Preparation, Analyses, and Security 10.1 Historical Samples The borehole sampling preparation, analyses, and security procedures utilized by ENAMI and its predecessors between 1929 and 1985 are unknown Core Samples (1985 to Present) Mineral Candelaria Analytical samples informing the Candelaria Mineral Resources were prepared and assayed at the Candelaria mine site. In 2014, the laboratory was certified to ISO17025 by the National Institute of Standardization (INN) of Chile for the analyses of copper, iron, zinc, and silver. Compliance to the ISO standard is being verified yearly by the INN. The laboratory is not independent from Minera Candelaria. Analytical samples informing the Ojos del Salado Mineral Resources were prepared and assayed by Intertek (formerly Vigalab) in Tierra Amarilla, Chile. Intertek is a global group operating 13 laboratories in Chile with a management system accredited to ISO9001. Intertek s laboratories are independent from Minera Ojos del Salado. Minera Candelaria uses Intertek in Copiapó as an umpire laboratory. Prior to 2006, Minera Ojos del Salado used Geolab as an umpire laboratory. As far as SRK was able to determine, Geolab is independent from Minera Ojos del Salado. After 2006, Minera Ojos del Salado used ALS Limited (ALS) laboratory in Coquimbo as an umpire laboratory. The management system of the ALS Minerals Group laboratories is accredited to ISO-9001:2000 by QMI Management Systems. ALS is independent from Minera Ojos del Salado. The sample preparation and analytical methodologies used for assaying Candelaria and Ojos del Salado samples are identical. Upon reception, sample details are recorded and insertion points for quality control samples in the sample stream are determined. Sample preparation includes drying at 105 degrees Celsius in a forced air furnace, primary crushing to 100 percent passing 5 millimetres, secondary crushing cycle to 90 percent passing 1.68 millimetres (12 mesh). Grinding tests are conducted on every 40 th sample. From the crushed material two 1-kilogram samples (Sample A and B) are prepared using a rotary splitter. Coarse rejects are retained and kept in storage. Both samples A and B are pulverized separately to 95 percent passing millimetres (140 mesh). Sample A is subdivided into four subsamples: one subsample with approximately 200 grams, and three subsamples weighing approximately 100 grams each. Sample B is subdivided into two subsamples: one weighing approximately 200 grams and the other approximately 100 grams. The two heavier subsamples are kept for future reference or as backup should more sample material be required. Copper, silver, zinc, and iron are analyzed by multi acid digestion and atomic absorption spectroscopy (AAS). Copper assays greater than 6 percent are re-analyzed systematically. Gold is

57 Technical Report for the Candelaria Copper Mining Complex, Chile Page 34 also assayed in 30-gram aliquots by fire assay with AAS finish. Minera Ojos del Salado began assaying for zinc in January Assay data are loaded directly from digital assay result files into the final database in order to minimize entry errors Specific Gravity Data Specific gravity (SG) is measured systematically over the full sample intervals. For each sample interval, all core fragments larger than 5 centimetres in length are collected and used to measure specific gravity using a water displacement method without paraffin coating. Measurements are duplicated every 20 measurements and the scale is checked frequently using a 2-kilogram weight Quality Assurance and Quality Control Programs Quality assurance and quality control programs are typically set in place to ensure the reliability and trustworthiness of the exploration data. They include written field procedures and independent verifications of aspects such as drilling, surveying, sampling and assaying, data management, and database integrity. Appropriate documentation of quality control measures and regular analysis of quality control data are important as a safeguard for the project data and form the basis for the quality assurance program implemented during exploration. Analytical control measures typically involve internal and external laboratory control measures implemented to monitor the precision and accuracy of the sampling, preparation, and assaying. They are also important to prevent sample mix-up and monitor the voluntary or inadvertent contamination of samples. Assaying protocols typically involve regular duplicate and replicate assays and insertion of quality control samples. Check assaying is typically performed as an additional reliability test of assaying results. This typically involves re-assaying a set number of rejects and pulps at a second umpire laboratory Historical Analytical Quality Control at Alcaparrosa No information exists about the analytical quality control procedures at Alcaparrosa between 1929 and Analytical Quality Control (1985 to Present) Candelaria The analytical quality control program implemented at Candelaria includes the use of control samples (coarse and pulp duplicate samples and reference material samples) inserted within all samples submitted for assaying. Pulp duplicate samples are inserted at a rate of one every 20 samples. Preparation duplicate samples from the B samples (see section 10.2) are inserted at a rate of one every 40 samples. Six different reference materials were created from Candelaria samples and certified for copper and gold by round robin testing under the supervision of ALS Minerals in Copiapó. Copper grades of the reference material range from 0.5 to 3.69 percent copper. Reference material samples were inserted at a rate of one every 20 samples.

58 Technical Report for the Candelaria Copper Mining Complex, Chile Page 35 After sample preparation, pulps are relabeled. A duplicate and approximately 5 percent of the samples are sent to the umpire laboratory. Ojos del Salado Prior to 2006, the analytical quality control program at Ojos del Salado consisted of the use of control samples (pulp duplicate samples) and the use of check assaying at an umpire laboratory. No field duplicates, standard reference material, or blank material were submitted prior to Analysis of quality control data during this time by AMEC (2013b) highlighted the poor performance of the pulp duplicate samples, especially for copper. Because the duplicate samples performed better for gold, AMEC (2013b) concluded that the overall performance of the quality control data was satisfactory. Starting in 2006, Minera Ojos del Salado changed the analytical quality control procedures to replicate those in use at Candelaria Sample Security Information about the sample security in the historical exploration period prior to Minera Candelaria and Minera Ojos del Salado s involvement is unavailable. All drilling assay samples are collected by a contractor under the direct supervision of a mine geologist. Samples from Candelaria are processed and analyzed entirely at the mine site. Samples from Ojos del Salado are shipped directly from the property to the Intertek laboratory in Tierra Amarillo. Assay samples are collected by appropriately qualified staff at the laboratories. Sample security involved maintaining the chain of custody of samples to prevent inadvertent contamination or mixing of samples and rendering active tampering as difficult as possible. During the site visit, SRK found no evidence of active tampering or inadvertent contamination of assay samples collected either on the Candelaria or Ojos del Salado properties SRK Comments SRK reviewed the field procedures and analytical quality control measures used by Minera Candelaria and Minera Ojos del Saldo. In the opinion of SRK, company personnel used care in the collection and management of the field and assaying exploration and production data. Based on historical reports and data available, SRK has no reason to doubt the reliability of exploration and production information provided by the Candelaria Copper Mining Complex. The reports and analytical results examined by SRK suggest that the analytical results delivered by the primary laboratories used by the Candelaria Copper Mining Complex are free of apparent bias. In the opinion of SRK, the sampling preparation, security, and analytical procedures used by the Candelaria Copper Mining Complex are consistent with generally accepted industry best practices and are therefore adequate to support Mineral Resource estimation.

59 Technical Report for the Candelaria Copper Mining Complex, Chile Page Data Verification 11.1 Verifications by the Candelaria Copper Mining Complex The exploration and production work completed by the Candelaria Copper Mining Complex was conducted using documented procedures and involved extensive verification and validation of exploration and production data prior to them being considered for geological modelling and Mineral Resource estimation. During drilling, experienced mine geologists implemented industry standard measures designed to ensure the reliability and trustworthiness of the exploration data. The Candelaria Copper Mining Complex monitors the analytical quality control data on a real-time basis. Quality control failures are investigated and appropriate actions are taken when necessary, including requesting re-assaying of certain batches of samples Verifications by SRK Site Visit In accordance with National Instrument guidelines, a team of professionals under the supervision of SRK visited the Candelaria and Ojos del Salado properties from June 10 to 12 and from June 14 to 16, 2014, accompanied by representatives of Lundin. The team included Glen Cole, PGeo, Gary Poxleitner, PEng, and Maria Ines Vidal, MAusIMM, from SRK, and Daniel Sepulveda, and John Nilsson, PEng, both independent consultants. SRK conducted another site visit from July 6 to July 10, The team included Jean-Francois Couture, PGeo, Gary Poxleitner, PEng, and Maria Ines Vidal, MAusIMM, from SRK, and John Nilsson, PEng, an independent consultant. Jean-Francois Couture, Gary Poxleitner, and John Nilsson are qualified persons pursuant to National Instrument Both site visits took place during active drilling and production activities. All aspects that could impact materially the integrity of the data informing the Mineral Resources (core logging, sampling, analytical results, and database management) were reviewed with Minera Candelaria and Minera Ojos del Salado staff. SRK was able to interview mine staff to ascertain exploration and production procedures and protocols. SRK examined core from several boreholes and found that the logging information accurately reflects actual core. The lithology contacts checked by SRK match the information reported in the core logs. SRK toured the Candelaria open pit and the Candelaria Norte underground mine, one of the three underground operations. Areas of the mine observed included mine development, mucking of draw points, and truck haulage roads. Furthermore, SRK observed core and stope drilling. Other infrastructures inspected include the proposed new Los Diques tailings storage facility, the maintenance facility, wash bays, and refuge stations. SRK toured and reviewed the engineering department and aspects of its work including engineering drawings, mine planning, and Mineral Reserve estimates.

60 Technical Report for the Candelaria Copper Mining Complex, Chile Page Review of Exploration Data and Mineral Resource Models SRK reviewed the borehole databases, Mineral Resource models, and planned and existing mine infrastructure. For the preparation of this technical report, SRK was able to reproduce block model estimates for a representative sample of the block models to a satisfactory degree. SRK also completed statistical comparison of the global block models grade against the informing drilling data and visually compared on plans and sections the block models against the informing composites to confirm that the various models are generally an adequate representation of the distribution of the copper, gold, and silver mineralization. The Candelaria open pit Mineral Resource model is routinely compared against the production model derived from blasthole samples and the Mineral Resource estimation parameters are periodically adjusted accordingly. Generally, the Mineral Resource model under evaluates the metal content of a bench by a few percent relative to the blasthole model. After comparing the Candelaria open pit Mineral Resource model against the informing composites and the statistics of the production model, SRK concludes that the Candelaria estimation approach produces a reasonable and reliable model adequate to support open pit mining. The slight difference between the two models can be explained by grade over-smoothing in the resource model.

61 Technical Report for the Candelaria Copper Mining Complex, Chile Page Mineral Processing and Metallurgical Testing The Candelaria Copper Mining Complex is a mature mining operation. Mineral processing and metallurgical testwork completed prior to the commissioning of the Candelaria and Pedro Aguirre Cerda (PAC) processing plants are not relevant to this technical report. Both processing plants have been in operation for many years and produce copper concentrates that are sold to customers worldwide (see Section 18). A summary of the performance of the processing plants is provided in Section 16 of this technical report. Metal recovery assumptions are derived by ore type from historical performance of the processing plants. Other than those stated in Sections 16 and 18, there are no other processing factors or deleterious elements that could have a significant impact on economic extraction. As part of the ongoing operations, both processing plants undertake ongoing testing programs. This section describes the testing programs undertaken and updated during normal operations Metallurgical Testing at the Candelaria Processing Plant Minera Candelaria maintains regular metallurgical testing programs that are incorporated into statistical models to predict historical metallurgical performance and improve its processing performance in terms of mill throughput, metal recovery to concentrate, and final concentrate grade. Metallurgical tests are executed in a number of specialized facilities such as Universidad de Atacama and at commercial third party laboratories in Chile and North America, including SGS Mineral Services, Dawson Metallurgical Laboratories Inc., and JKTech. Regular testing by Geological Unit (Unidad Geológica, UG) includes rock hardness classification (see Table 10) and bench scale flotation testing correlated with industrial scale performance to predict mill throughput and metallurgical performance. Table 10: Rock Hardness Classification Hardness Category UCS MPa Extra Hard 180 to 240 Hard 140 to 180 Intermediate 100 to 140 Soft 20 to 100 Figure 15 shows the structure of the throughput forecasting model that is updated and maintained by Candelaria personnel. Relationships between ore type UG and specific energy (kwh/t) and pebble rate are used to predict grinding circuit power requirements and therefore, plant capacity based on mill availabilities. In addition, copper recovery to final concentrate is modelled by UG, including factors for grind size (and its effect on tailings grade), zinc head grade and stockpile oxidation. Currently, no effect of secondary copper minerals (e.g., acid soluble copper) is included in the copper recovery model.

62 Technical Report for the Candelaria Copper Mining Complex, Chile Page 39 WORK INDEX LABORATORY SCALE ARD CHARACTERIZATION SAG MINE SAMPLES UG/RQ PILOT SCALE SAG MILL RAMP UP SAG MILL TEST UCS TEST CEE (Kwh/Tonne) PRODUCTION MODEL CONVENTIONAL MILL TEST % PEBBLES EXTRACTION Figure 15: Structure of Throughput Forecasting Model Source: Minera Candelaria Precious metal recovery is not related to UG, but is relatively constant for both gold and silver depending on the open pit or underground source Mineralogy The sulphide mineralization at Candelaria and Ojos del Salado is classified as an IOCG deposit where minerals of interest occur in breccia, stockwork, and veinlets, disseminated in andesite rock. Copper and magnetite minerals coexist or appear independent from each other in the host rock. Largely dominant minerals are potassium feldspar, biotite, quartz, and plagioclase. The sulphide mineralization is dominated by pyrite while copper is present as chalcopyrite representing approximately four percent of the mineralization (Figure 16). Iron Oxides 4.0% Plagioclase 5.4% Muscovite 4.6% Amphibole/Pyroxene 6.6% Biotite 21.0% Chlorite 4.0% Epidote 2.8% Chalcopyrite 3.8% Pyrite 7.0% K Feldspar 23.3% Quartz 11.3% Figure 16: Typical Mill Feed Mineralogy (QEMSCAN Analysis)

63 Technical Report for the Candelaria Copper Mining Complex, Chile Page 40 Chalcopyrite is present across all size fractions with approximately 70 percent contained in the +38 micrometres range. Similarly, the dominant mineralogy species (including iron oxides) maintain their presence across all grind sizes. Gold and silver are associated with sulphide minerals, primarily chalcopyrite but also pyrite. Varying gold content in the pyrite is associated with gold losses to flotation tailings.

64 Technical Report for the Candelaria Copper Mining Complex, Chile Page Mineral Resource Estimates 13.1 Introduction The Mineral Resources for Minera Candelaria comprise primarily of the operational Candelaria deposit, which is mined by open pit mining methods and a secondary component located in the northeast and south of the Candelaria pit that is mined by underground mining methods (Candelaria Norte, Damiana, and Susana). The Mineral Resources for Minera Ojos del Salado comprise two deposits, Alcaparrosa and Santos, mined by underground mining methods. The Candelaria open pit and the Damiana and Susana Mineral Resource models were generated by the Technical Services Department at Minera Candelaria, whereas the underground Mineral Resource models (Candelaria Norte, Alcaparrosa, and Santos) were generated by the Exploration Department at Minera Ojos del Salado. SRK reviewed and audited the Mineral Resource models generated by Minera Candelaria and Minera Ojos del Salado personnel. This section outlines the Mineral Resource estimation methodology and summarizes the key assumptions considered for the preparation of the open pit and underground Mineral Resource models. In the opinion of SRK, the Mineral Resource evaluation reported herein is a reasonable representation of the Mineral Resources found at the Candelaria Copper Mining Complex at the current level of sampling. The Mineral Resources have been estimated in conformity with generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines and are reported in accordance with Canadian Securities Administrators National Instrument Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves Resource Estimation Procedures Introduction The Mineral Resource estimation methodology and procedures adopted for the open pit and underground Mineral Resource models are outlined in this section. The methodology used for the Candelaria open pit is discussed separately from that collectively used for the various underground deposits at Minera Candelaria (Candelaria Norte, Damiana, and Susana) and Minera Ojos del Salado (Alcaparrosa and Santos) Open Pit The database informing the Mineral Resources comprises 2,618 core and percussion boreholes (801,500 metres) which include 43 new boreholes (23,293 metres) drilled in 2013 from surface in the open pit. All exploration data are securely managed within an acquire database. Drilling data are used to generate 35-metre spaced geology sections and 16-metre spaced geology plans, which are modelled within MineSight software as polyline files. Combined section and plan lithology polyline files are used to code Mineral Resource blocks with a rock type code. Copper grade shells (0.2 percent and 1.5 percent copper) are also modelled.

65 Technical Report for the Candelaria Copper Mining Complex, Chile Page 42 The individual assays are composited to a 16-metre length, which corresponds to the open pit bench height. Experimental covariance was utilized to assess the spatial correlation of the copper, gold, silver, and specific gravity values using composited data. The anisotropy directions were verified against blast hole grade data and modelled geological units. A 10 by 10 by 16 metres block model was generated. A nearest neighbour kriging method was used. Grade capping was applied to the 97.8 percentile of the composite population, which was evaluated for all three metals as well as for each geological unit independently. During estimation, a further search restriction (15 metres) was applied to high grade outliers. A hard boundary was applied for each geological unit constrained with the 0.2 percent and the 1.5 percent copper grade shells, using a search ellipse of 100 by 100 by 50 metres, oriented according to the covariance model. The nearest neighbour kriging algorithm was informed by a minimum of one composite and a maximum of 16 restricted to three composites per borehole. This algorithm was chosen to exercise control of the local smoothing effect by assigning more weight to the nearest composites. Specific gravity for each rock type was also estimated by a nearest neighbour kriging algorithm, using a spherical estimation search informed by a minimum of two composites and a maximum of 12 with a maximum of three composites per borehole. Mineral Resource classification was based on the distance to the nearest composite and the minimum number of boreholes used to estimate a block. The majority of the Mineral Resources are classified as Measured (Table 11). Table 11: Classification Parameters (Open Pit and Underground) Classification Minimum Number of Informing Boreholes Distance (metres) Measured 3 Less than 35 Indicated 3 35 to 70 2 Less than 35 Inferred 2 35 to to 70 and above Open pit Mineral Resources include those classified blocks above a cut-off grade of 0.2 percent copper within a conceptual pit shell (based on metal prices of US$3.16 per pound of copper and US$1,000 per ounce of gold) Underground Data and interpolation parameters considered for the preparation of the Mineral Resource models for the underground mines are summarized in Table 12 to Table 15. There are eight models for Minera Candelaria, including two new models: Damiana/Susana, Wendy Norte/Elisa Norte II/Lila South. There are 11 models for Minera Ojos del Salado, seven at Alcaparrosa and four at Santos, including six new models, Southwest, Southeast, Central Este, and Viviana, at Alcaparrosa; and Helena Sur and Melendez Central, at Santos. The interpolation methodology applied for the underground Mineral Resource models is similar to that outlined for the Candelaria open pit Mineral Resource model. Notable differences include: Twenty-five-metre or 35-metre spaced geology sections and 4-metre spaced geology plans modelled as polyline files applied to code the models with lithology Composite lengths vary from 2 to 4 metres Interpolation restricted to within 0.4 percent copper grade shells

66 Technical Report for the Candelaria Copper Mining Complex, Chile Page 43 Smaller block sizes Interpolation method is ordinary kriging for copper and specific gravity and an inverse distance algorithm for gold and silver Parameter Table 12: Underground Interpolation Data and Parameters for Candelaria Candelaria Parameter Susana Damiana Drilling Type Core drilling Number (1) Metres 21,708 15,522 Data Samples (2) 22,897 37,137 Compositing 16 m 16m No. Composites 1,509 3,684 Capping Restricted search capping used (97.8 percentile of data) Wireframe Geological units and grade shells Interpolation Domaining Geological units (hard) and grade shells (soft) Variables Cu, Au, Ag, SG Block Model Extent (m) 2,300x 4,100x 1,168 Block size (m) 10 x 10 x 16 Method Nearest Neighbour Kriging Classification Measured, Indicated, Inferred (see Table 11) (1) Only the boreholes effectively used in the model are counted (2) Only samples with copper grades and domain assignation counted Table 13: Underground Interpolation Data and Parameters for Candelaria Norte Candelaria Norte Candelaria North Elisa North Sector Wendy Sur Wendy Central Elisa North Wendy North, Elisa North 2, Lila South Drilling Type Core drilling Number(1) Metres 72,823 18,503 13,233 24,738 29,604 25,412 98,709 Data Samples (2) 57,653 17,502 9,187 17,275 23,152 21,040 77,727 Compositing 2 m 4 m 2 m 2 m 4 m 4m 4 m No. Composites 30,182 5,220 4,736 9,179 6,491 5,802 21,299 Capping Wireframe Interpolation Domaining Variables Block Model Extent (m) Restricted search capping used (97.8 percentile of data) Lithological and mineralization wireframes created Estimation domains for grades built combining lithology and mineralization. Hard boundaries used. SG estimated using lithological domains. Cu, Au, Ag, SG Cu, Au, A, Fe, Magnetite, SG Cu, Au, Ag, SG 900x 300x 500x 550x 600x 500x 2,200x 600x 400x 350x 400x 400x 400x 1,800x ,240 Block size (m) 2 x 2 x 2 5 x 5 x 4 2 x 2 x 2 2 x 2 x 2 5 x 5 x 4 5 x 5 x 4 5 x 5 x 4 Method Inverse distance Inverse distance (ordinary kriging and Ordinary kriging for Cu and SG Nearest neighbour for Au, Ag, Fe, nearest neighbour Inverse distance for Au and Ag kriging magnetite used for checking) Classification Measured, Indicated, Inferred (see Table 11) (1) Only the boreholes effectively used in the model are counted (2) Only samples with copper grades and domain assignation counted

67 Technical Report for the Candelaria Copper Mining Complex, Chile Page 44 Parameter Table 14: Underground Interpolation Data and Parameters for Alcaparrosa Alcaparrosa Caseron 11 North Sector Alcaparrosa North West Central Southwest, Southeast, Central Este Viviana Drilling Type Core drilling Number (1) Metres 75,062 4,125 14,681 15,180 20,180 76,828 40,401 Data Samples (2) 40,162 3,818 9,494 12,440 14,033 61,069 28,967 Compositing 2 m 4 m 2 m 2 m 4 m 4 m 4 m No. Composites 21,263 1,114 4,915 6,452 3,885 16,705 8,328 Capping Restricted search capping used (97.8 percentile of data) Wireframe Lithological and mineralization wireframes created Geological units and grade shells Interpolation Estimation domains for grades built combining lithology and mineralization. Lithological units and grade Domaining Hard boundaries used. SG estimated using lithological domains. shells. Hard boundaries used. Variables Cu, Au, Ag, SG 800x 350x 350x 450x 500x 1,100x 1,500x Block Model 800x 200x 200x 150x 200x 500x 500x Extent (m) , Block size (m) 2 x 2 x 2 5 x 5 x 4 2 x 2 x 2 2 x 2 x 2 5 x 5 x 4 5 x 5 x 4 5 x 5 x 4 Method Inverse distance (ordinary kriging and nearest neighbour used for checking) Ordinary kriging for Cu and SG Inverse distance for Au and Ag Classification Measured, Indicated, Inferred (see Table 11) (1) Only drillholes effectively used in the model are counted (2) Only samples with copper grades and domain assignation counted Nearest neighbour kriging for Cu, Au, Ag Ordinary kriging for SG Table 15: Underground Interpolation Data and Parameters for Santos Parameter Santos Supernova Melendez Sur Melendez Central Helena Sur Drilling Type Core drilling Number(1) Metres 38,389 37,432 28,079 28,057 Data Samples (2) 30,468 35,226 27,640 21,664 Compositing 4 m 4 m 4 m 4 m No. Composites 8,490 9,257 7,241 5,477 Capping Restricted search capping used (97.8 percentile of data) Wireframe Lithological and mineralization wireframes created Interpolation Domaining Estimation domains for grades built combining lithology and mineralization. Hard boundaries Variables used. SG estimated using lithological domains. Cu, Au, Ag, SG 600x 750x 400x 450x ,000x 1,000x Block Model Extent (m) 500x 800x Block size (m) 5 x 5 x 4 5 x 5 x 4 5 x 5 x 4 5 x 5 x 4 Method Ordinary kriging for Cu and SG Inverse distance for Au and Ag Nearest neighbor kriging Classification Measured, Indicated, Inferred (see Table 11) (1) Only drillholes effectively used in the model are counted (2) Only samples with copper grades and domain assignation counted Nearest neighbor kriging for Cu Ordinary kriging for Au, Ag, and SG

68 Technical Report for the Candelaria Copper Mining Complex, Chile Page SRK Comments Since acquiring the Candelaria Copper Mining Complex in November 2014, Lundin has put a greater emphasis on accelerating the interpretation and modelling of the exploration data to increase the Mineral Resources. These efforts paid off because during the first half of 2015, eight new Mineral Resource models were prepared (two at Minera Candelaria and six at Minera Ojos del Salado), resulting in a significant expansion of the Mineral Resources of the underground mines, contributing to the extension of their life. SRK is of the opinion that the exploration program proposed for the period has the potential to expand further the Mineral Resources of the underground mines, with a positive impact on their life Mineral Resource Statement CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014) defines a Mineral Resource as: A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. The reasonable prospects for eventual economic extraction requirement generally implies that the quantity and grade estimates meet certain economic thresholds and that the Mineral Resources are reported at an appropriate cut-off grade that takes into account extraction scenarios and processing recoveries. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserves. The audited Mineral Resource Statement for Minera Candelaria is presented in Table 16. Open pit Mineral Resources are reported within a conceptual Lerchs-Grossman pit shell based on metal prices of US$3.16 per pound of copper and US$1,000 per ounce of gold and at a cut-off grade of 0.2 percent copper. Underground Mineral Resources from Candelaria Norte are reported at a cut-off grade of 0.6 percent copper. Table 16 also includes a contribution from various operational work-inprogress (WIP) stockpiles. The Mineral Resources include Mineral Reserves. The audited Mineral Resource Statement for Minera Ojos del Salado is presented in Table 17. The Mineral Resources for the underground Santos and Alcaparrosa mines are reported at a cut-off grade of 0.6 percent copper. The audited combined Mineral Resource Statement for the Candelaria Copper Mining Complex is presented in Table 18.

69 Technical Report for the Candelaria Copper Mining Complex, Chile Page 46 Table 16: Audited Mineral Resource Statement*, Compañía Contractual Minera Candelaria, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Contained Metal Classification Quantity Grade Copper Gold Silver Tonnes Copper Gold Silver Tonnes Ounces Ounces ( 000) (%) (g/t) (g/t) ( 000) ( 000) ( 000) Candelaria Open Pit Measured 400, ,225 1,637 24,707 Indicated 31, ,787 Measured and Indicated 432, ,379 1,766 26,494 Inferred 15, Candelaria Norte Underground Measured 36, ,417 Indicated 26, ,674 Measured and Indicated 62, ,091 Inferred 58, ,052 WIP** Measured 93, ,487 Indicated Measured and Indicated 93, ,487 Inferred Combined Measured 530, ,956 2,204 35,610 Indicated 58, ,461 Measured and Indicated 589, ,423 2,577 43,072 Inferred 74, ,710 * Reported within the boundaries of the Compañía Contractual Minera Candelaria property. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. Mineral Resources include Mineral Reserves. Open pit Mineral Resources reported at a cut-off grade of 0.2 percent copper within a conceptual pit shell based on metal price of US$3.16 per pound of copper and US$1,000 per ounce of gold and current topography. Underground Mineral Resources are reported at a cut-off grade of 0.6 percent copper. Parts of the open pit Mineral Resources have been converted into underground Mineral Reserves. ** Work-in-progress (WIP) stockpiles Table 17: Audited Mineral Resource Statement*, Compañía Contractual Minera Ojos del Salado, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Contained Metal Classification Quantity Grade Copper Gold Silver Tonnes Copper Gold Silver Tonnes Ounces Ounces ( 000) (%) (g/t) (g/t) ( 000) ( 000) ( 000) Santos Measured 12, ,894 Indicated 5, Measured and Indicated 18, ,818 Inferred 1, Alcaparrosa Measured 17, ,882 Indicated 18, ,085 Measured and Indicated 35, ,967 Inferred 7, Combined Measured 29, ,777 Indicated 24, ,008 Measured and Indicated 54, ,785 Inferred 8, * Reported within the boundaries of the Compañía Contractual Minera Ojos del Salado property. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. Mineral Resources include Mineral Reserves. All figures are rounded to reflect the relative accuracy of the estimates. Reported at a cut-off grade of 0.6 percent copper, based on metal price of US$3.16 per pound of copper and US$1,000 per ounce of gold.

70 Technical Report for the Candelaria Copper Mining Complex, Chile Page 47 Table 18: Consolidated Audited Mineral Resource Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Contained Metal Classification Quantity Grade Copper Gold Silver Tonnes Copper Gold Silver Tonnes Ounces Ounces ( 000) (%) (g/t) (g/t) ( 000) ( 000) ( 000) Open Pit Measured 400, ,225 1,637 24,707 Indicated 31, ,787 Measured and Indicated 432, ,379 1,766 26,494 Inferred 15, Underground Measured 65, ,194 Indicated 51, ,682 Measured and Indicated 117, , ,876 Inferred 66, ,932 WIP** Measured 93, ,487 Indicated Measured and Indicated 93, ,487 Inferred Combined Measured 560, ,305 2,450 39,387 Indicated 83, ,469 Measured and Indicated 643, ,033 3,007 49,857 Inferred 82, ,589 * Reported within the boundaries of the Compañía Contractual Minera Candelaria and Compañía Contractual Ojos del Salado properties. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. Mineral Resources include Mineral Reserves. Open pit Mineral Resources are reported at a cut-off grade of 0.2 percent copper within a conceptual pit shell based on metal prices of US$3.16 per pound of copper and US$1,000 per ounce of gold and current topography. Underground Mineral Resources are reported at a cut-off grade of 0.6 percent copper. Parts of the open pit Mineral Resources have been converted into underground Mineral Reserves. ** Work-in-progress (WIP) stockpiles

71 Technical Report for the Candelaria Copper Mining Complex, Chile Page Reconciliation The Candelaria open pit Mineral Resource model (locally termed long term model) is compared to grade control models (short term models) on a monthly basis. Grade control models are generated from closely spaced blast hole data, whereas Mineral Resource models are derived from exploration core drilling data. A monthly reconciliation between the Mineral Resource and grade control models for the Candelaria open pit for the period of July 2014 to June 2015 is presented in Table 19. The reconciliation between the short and long term models is reasonable. This demonstrates that the Mineral Resource model adequately predicts quantities and grades achieved during mining. Table 19: Monthly Reconciliation between Long Short Term Models and the Mill for the Candelaria Open Pit, Compañía Contractual Minera Candelaria (July 2014 to June 2015) Long Term 2014 Short Term Mill Period Quantity Grade Metal Quantity Grade Metal Quantity Grade Metal 000 (t) Cu (%) Cu (t) 000 (t) Cu (%) Cu (t) 000 (t) Cu (%) Cu (t) Jul ' , , ,285 Aug '14 1, ,485 1, ,262 1, ,929 Sept '14 1, ,834 2, ,846 1, ,793 Oct '14 1, ,058 1, ,037 2, ,532 Nov '14 1, ,737 1, ,157 1, ,166 Dec '14 1, ,937 1, ,260 1, ,967 Jan '15 1, ,265 2, ,058 1, ,050 Feb '15 1, ,543 1, ,251 1, ,789 Mar '15 1, ,305 2, ,497 2, ,083 Apr '15 1, ,856 2, ,714 1, ,639 May '15 1, ,807 2, ,203 2, ,560 Jun '15 2, ,656 2, ,489 1, ,340 Total 19, ,819 21, ,664 19, ,132 Variance* -10.3% 5.4% -5.7% -2.1% 7.7% 8.1% * Long term vs short term and mill

72 Technical Report for the Candelaria Copper Mining Complex, Chile Page Mineral Reserve Estimates 14.1 Minera Candelaria Candelaria Open Pit Mineral Reserves The Candelaria open pit Mineral Reserves estimates were prepared by Minera Candelaria personnel based upon the Measured and Indicated Mineral Resources defined for the open pit mine. The Mineral Reserve estimates are based on a mine plan and open pit designs developed using modifying parameters including metal prices, metal recovery based on performance of the processing plant, actual operating cost estimates, and sustaining capital cost estimates based on the production schedule and equipment requirements. The Mineral Reserve estimation process involved the following tasks: Selection of optimization parameters Pit optimization to define optimum pit limit using a Lerchs-Grossman algorithm Selection of mining cut-off grade Preparation of a pit design, including pit phases Preparation of a production schedule Tabulation of Mineral Reserve Statement Table 20 summarizes the optimization parameters used in 2015 relative to those considered in 2013 and used for the disclosure of the December 31, 2014 Mineral Reserves. For the December 31, 2014 Mineral Reserves, site operating costs used for the pit optimization were pro-rated for the metal prices used for the pit limit definition. Adjustments were made to factor consumables to reflect a US$2.00 per pound of copper price environment. In addition, adjustments were been made to General and Administration costs to reflect a reduction in overheads during mining of the final incremental pit shells. For the June 30, 2015 Mineral Reserves, site operating costs used for the pit optimization were based upon actual average operating costs for the three years 2012 through Base mining costs excluding haulage are estimated at US$1.65 per tonne mined for an overall mining rate of 221,000 tonnes per day. Stockpile re-handle costs excluding haulage are estimated at US$0.97 per tonne. The haulage increment per 16 metre bench is estimated at US$0.029 per tonne per bench to depth. The fixed milling ore and waste haulage costs are estimated at US$0.05 and US$0.21 per tonne, respectively. An equipment annuity of US$0.10 per tonne mined was applied to account for equipment replacement. Discounting has been applied to all block values in the model for the purposes of pit optimization. The discount rate applied was 12.0 percent and the sinking rate assumed was 6.32 benches per year resulting in an effective discount factor of 1.90 percent per bench. Processing cost estimates include US$0.33 per tonne for crushing and US$8.36 per tonne for milling. A mill sustaining capital allowance of US$0.76 per tonne was included. The general and administration costs of US$2.16 per tonne have been assigned to the ore milled. The total processing costs are estimated at US$11.60 per tonne milled.

73 Technical Report for the Candelaria Copper Mining Complex, Chile Page 50 Table 20: Summary of Pit Optimization Parameters Basic Design Parameters Units Dec June 2015 Copper US$/lb-Cu Gold US$/oz-Au 1,000 1,000 Silver US$/oz-Ag Discount Rate % 12.0% 12.0% Average vertical advance rate bench/yr/pb Long term power cost assumption US$/kWh Long term diesel cost assumption (delivered) US$/US Gal Mining Rate KMTPD Mining costs (no haulage) US$/dmt-Mined Stockpile re-handling costs (no haulage) US$/dmt-Mined Haulage increment/dmt/bench US$/dmt-Mined Fixed mill ore haulage cost US$/dmt-Mined Fixed waste haulage cost US$/dmt-Mined Mine equipment capital annuity US$/dmt-Mined Milling Rate KMTPD Crushing cost US$/dmt-Milled Milling cost US$/dmt-Milled Mill sustaining capital allowance US$/dmt-Milled G&A assigned to mill US$/dmt-Milled Total Cost US$/dmt-Milled Downstream Costs Concentrate moisture % 8.5% 8.5% Concentrate copper grade %-Cu 31.0% 29.6% Freight cost US$/wmt Freight cost (concentrate) US$/dmt-Concentrate Smelting US$/dmt- Concentrate Refining US$/lb-Cu Transportation loss allowance %-loss 0.20% 0.20% Net smelter payment incl. trans loss %-payable 96.31% 96.31% By-product credits Au, Ag, Fe US$/lb-Cu (0.458) (0.492) Costs /lb W/ By-product Credits US$/lb-Cu (0.095) (0.116) w/o Credits US$/lb-Cu Royalty US$/lb-Cu 0.01 n/a By Product Credits Au content in Cu concentrate oz/dmt Au payable term % 96.0% 96.0% Au refining cost US$/oz Ag content in Cu concentrate oz/dmt Ag payable term % 90.0% 90.0% Ag refining cost US$/oz Payable Au US$/lb-Cu Payable Ag US$/lb-Cu Other credits US$/lb-Cu By-Product Credits US$/lb-Cu Downstream Costs US$/lb-Cu Concentrate freight US$/lb-Cu Smelting US$/lb-Cu Refining US$/lb-Cu Freight to market & sales costs US$/lb-Cu Total Before By-Product Credits US$/lb-Cu Total mine costs US$/dmt-Mined Total mine costs-fragmentation costs US$/dmt-Mined Mining CAF ratio Total cost/tonne-milled US$/dmt-Milled

74 Technical Report for the Candelaria Copper Mining Complex, Chile Page 51 Copper recovery estimates were based on a model developed by the metallurgical group at Candelaria. This model takes input data for geological, mineralogical and process throughput and grind size, oxidation and zinc to concentrate as part of the process that provides estimates of final tailings and concentrate grades and resultant overall copper recovery. The average life of mine copper recovery is estimated 92.8 percent. Gold and silver recoveries were fixed at 75 and 85 percent, respectively, based upon historical data. The copper concentrate was assumed to have a fixed copper grade of 29.6 percent with a moisture content of 8.5 percent. For the pit optimization, the concentrate is assumed to be clean with no applicable smelter penalties. Transportation costs for the concentrate were estimated at US$65.00 per wet metric tonne or US$71.04 per dry metric tonne. Smelting and refining charges were estimated to be US$ per dry metric tonne and US$0.10 per payable pound of copper, respectively. Based upon a 29.6 percent concentrate grade, the copper pay factor is estimated at percent. A transportation loss allowance of 0.20 percent was included. The payable gold in concentrate was assigned at 96.0 percent with a refining charge of US$4.00 per ounce. The payable silver in concentrate was assigned at 90.0 percent with a silver refining charge of US$0.35 per ounce. The pit optimization was conducted using the resource block model expanded in all directions to cover the maximum extent of the ultimate pit. A mining block model was populated in Minesight and Datamine NPV Scheduler. Additional block model items were added for slope coding, concentrate grades, metallurgical recovery, rock hardness, mining restriction near the tailings impoundment, and south backfill area of the open pit. No additional mining dilution or losses were applied to the resource model for the purposes of mine planning. A 100-metre offset pit limit restriction was applied at the toe of the tailings dam. A boundary restriction was applied at the topographic divide on the east side of the open pit. Open pit wall slope recommendations have been provided by Call Nicolas International Company (CNI), based on comprehensive geo-mechanical studies to support the current operating pit Phases 8 through 10. Similar studies are being conducted for the next planned Phase 11. Inter-ramp slopes angles range from 45 to 57 degrees. Eight slope sectors were defined with different inter-ramp slopes, bench face angles, berm intervals, and berm widths (Figure 17). A hardrock surface was used to control the slope angle in overburden and fill areas in the upper part of the deposit. The unsmoothed US$2.75 per pound of copper Lerchs-Grossman pit was used as a guide to develop the ultimate pit design. Design parameters include: Sixteen-metre bench with double bench between catchment berms Planned mining widths in the design phases exceeding 100 metres, but pinching down to 40 to 60 metres locally where ramps and phase interfaces come together Haulage allowances of 33 metres; in practice the ramp width provides adequate room for berms and two-way traffic with the 240-ton class trucks used at Candelaria Mining Phases 9 through 13

75 Technical Report for the Candelaria Copper Mining Complex, Chile Page 52 Figure 17: Candelaria Open Pit Sectors Geotechnical Design Recommendations ISA: Inter-ramp slope angle, BFA: bench face angle Source: Call Nicolas International Company

76 Technical Report for the Candelaria Copper Mining Complex, Chile Page 53 The final pit design was used to report the open pit Mineral Reserves, using a topographic profile as of June 30, The final pit design mining phases are shown in Figure 18. For the open pit life of mine plan that supports the open pit Mineral Reserves direct mill feed is scheduled at a variable cutoff grade averaging approximately 0.26 percent copper. The material below that cut-off grade but above a grade of 0.23 percent copper is stockpiled. Figure 18: Candelaria Mining Phases Candelaria Norte Underground Mineral Reserves The Mineral Reserves for the Candelaria Norte underground mine were prepared by Minera Candelaria personnel and are based on the Measured and Indicated Mineral Resources defined for the underground mine. The Candelaria Norte underground mine includes a number of sectors. During 2015, the Damiana and Susana sectors were added to the south of the open pit mine. The Mineral Reserve estimates for Candelaria Norte are based on mine plans and designs developed using modifying parameters including metal prices, metal recovery (based on performance of the

77 Technical Report for the Candelaria Copper Mining Complex, Chile Page 54 processing plant), and operating and sustaining capital cost estimates. The operating costs used are based on actual average operating costs for the three years 2012 through The parameters used for the Mineral Reserves are summarized in Table 21. Table 21: Summary of Candelaria Norte Mineral Reserve Parameters Candelaria Norte Parameter Units Dec June 2015 Copper US$/lb-Cu Gold US$/oz-Au 1,000 1,000 Silver US$/oz-Ag Discount rate % 12% 12% Mining cost including G&A US$/ton Milling cost including G&A US$/ton Credits US$/lb Cu concentrate Downstream costs US$/lb Cu concentrate Cut-off grade % 0.81% 0.70% Mining ore recovery by stope setting Vertical % 95% 95% Inclined % 85% 85% Rib % 85% 85% Pillar % 80% 80% Structural pillar % 75% 75% Mining ore dilution by stope setting Vertical % 10% 10% Inclined % 30% 30% Rib % 30% 30% Pillar % 40% 40% Structural pillar % 50% 50% Dilutant material Cu % Au g/t Ag g/t Conversion of Mineral Resources to Mineral Reserves is initiated following the formal transference of the resource block models to the mine planning group s MineSight design software package and then integrated into the global mine layouts where they are then reviewed. All Inferred material in the model is assigned a grade of zero and thus eliminated from the model. Preliminary stope layouts are generated by first utilizing Datamine MSO (Mine Stope Optimizer) software with predetermined stope design parameters. These initial stope designs are reviewed and modified manually to derive practical and efficient stope geometries, and any geotechnical input is considered. Planned development in ore is also estimated. The final stope shapes are interrogated and the grades and tonnages generated. Stope data is exported into a spreadsheet where dilution (with background metal grades) and mining recovery are then applied. A unique cut-off grade was generated for the underground mine and is based on a copper price of US$2.75 per pound. The cut-off grade calculation includes inputs such as: Copper, gold, and silver metal prices Mine, surface, and mill operating costs G & A costs Sustaining capital Smelting, refining, freight, and other downstream costs Metal recoveries

78 Technical Report for the Candelaria Copper Mining Complex, Chile Page 55 Stopes that are below the cut-off are not included in the Mineral Reserves. The dilution and recovery parameters vary depending on each individual stopes geotechnical condition, geometry, and sequence. All economical stopes and related development are included in the Mineral Reserves and life of mine plan Minera Ojos del Salado The Mineral Reserves for Santos and Alcaparrosa underground mines were prepared by Minera Ojos del Salado personnel and are based on the Measured and Indicated Mineral Resources defined for the underground mines. The Mineral Reserve estimates for the Minera Ojos del Salado are based on mine plans and designs developed using modifying parameters including, metal prices, metal recovery (based on performance of the processing plant), and operating and sustaining capital cost estimates. Operating costs used are based on actual average operating costs for the three years 2012 through The parameters used for the Mineral Reserves are summarized in Table 22. Table 22: Summary of Santos and Alcaparrosa Mineral Reserve Parameters Parameter Units Santos Alcaparrosa Dec June 2015 Dec June 2015 Copper US$/lb-Cu Gold US$/oz-Au 1,000 1,000 1,000 1,000 Silver US$/oz-Ag Discount rate % 12% 12% 12% 12% Mining cost including G&A US$/ton Milling cost including G&A US$/ton Credits US$/lb Cu concentrate Downstream costs US$/lb Cu concentrate Cut-off grade % Cu 0.84% 0.76% 0.75% 0.73% Mining ore recovery by stope setting Vertical % 95% 95% 95% 95% Inclined % 85% 85% 85% 85% Rib % 85% 85% 85% 85% Pillar % 80% 80% 80% 80% Structural pillar % 75% 75% 75% 75% Mining ore dilution by stope setting Vertical % 10% 10% 10% 10% Inclined % 30% 30% 30% 30% Rib % 30% 30% 30% 30% Pillar % 40% 40% 40% 40% Structural pillar % 50% 50% 50% 50% Dilutant Material Cu % % Au g/t g/t Ag g/t g/t The conversion of Mineral Resources into Mineral Reserves at the Santos and Alcaparrosa underground mines follows the same process applied for the Candelaria Norte underground mine. A unique cut-off grade was generated for each of the underground mines and is based on a copper price of US$2.75 per pound. The cut-off grade calculation includes inputs such as: Copper, gold, and silver metal prices

79 Technical Report for the Candelaria Copper Mining Complex, Chile Page 56 Mine, surface, and mill operating costs G & A costs Sustaining capital Smelting, refining, freight, and other downstream costs Metal recoveries Stopes that are below the cut-off are not included in the Mineral Reserves. The dilution and recovery parameters vary depending on each individual stopes geotechnical condition, geometry and sequence. All economical stopes and related development are included in the Mineral Reserves and life of mine plan Mineral Reserve Statement Mineral Reserves are derived from Measured or Indicated Mineral Resources after applying economic parameters. The reserves have been derived and classified according to the following criteria: Proven Mineral Reserves are the economically mineable part of the Measured Mineral Resources where development work for mining and information on processing/metallurgy and other relevant factors demonstrate that economic extraction is achievable. Probable Mineral Reserves are those Measured and Indicated Mineral Resources where development work for mining and information on processing/metallurgy and other relevant factors demonstrate that economic extraction is achievable. The audited Mineral Reserve Statements for Minera Candelaria and Minera Ojos del Salado are presented in Table 16 and Table 17, respectively. The consolidated Mineral Reserve Statement for the Candelaria Copper Mining Complex is presented in Table 18. Table 23: Audited Mineral Reserve Statement*, Compañía Contractual Minera Candelaria, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Grade Contained Metal Classification Quantity Copper Gold Silver Copper Gold Silver ( 000 t) (%) (g/t) (g/t) ( 000 t) ( 000 oz) ( 000 oz) Candelaria Open Pit Proven 298, ,699 1,246 19,137 Probable 16, ,023 Total 314, ,784 1,317 20,160 Candelaria WIP** Proven 93, ,487 Probable Total 93, ,487 Candelaria Norte Underground Proven 22, ,874 Probable 7, ,407 Total 29, ,281 Combined Proven 414, ,252 1,673 26,498 Probable 23, ,430 Total 438, ,405 1,800 28,928 * Mineral Reserves included in Mineral Resources. Mineral Reserves have been prepared using metal prices of US$2.75 per pound of copper, US$1,000 per ounce of gold, and US$15.00 per ounce of silver. All figures have been rounded to reflect the relative accuracy of the estimates. Mineral Reserves for open pit and underground are reported at cut-off grades of 0.23 and 0.70 percent copper, respectively. Parts of the underground Mineral Reserves have been converted from open pit Mineral Resources. ** Work-in-progress (WIP) stockpiles

80 Technical Report for the Candelaria Copper Mining Complex, Chile Page 57 Table 24: Audited Mineral Reserve Statement*, Compañía Contractual Minera Ojos del Salado,SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Grade Contained Metal Classification Quantity Copper Gold Silver Copper Gold Silver ( 000 t) (%) (g/t) (g/t) ( 000 t) ( 000 oz) ( 000 oz) Santos Proven 5, Probable 2, Total 7, ,145 Alcaparrosa Proven 4, Probable 4, Total 9, ,129 Combined Proven 10, ,410 Probable 6, Total 16, ,274 * Mineral Reserves included in Mineral Resources. Mineral Reserves have been prepared using metal prices of US$2.75 per pound of copper, US$1,000 per ounce of gold, and US$15.00 per ounce of silver. All figures have been rounded to reflect the relative accuracy of the estimates. Underground Mineral Reserves for Alcaparrosa and Santos are reported at cut-off grades of 0.76 and 0.73 percent copper, respectively. Table 25: Consolidated Audited Mineral Reserve Statement*, Candelaria Copper Mining Complex, SRK Consulting (Canada) Inc., June 30, 2015 (100% Basis) Grade Contained Metal Classification Quantity Copper Gold Silver Copper Gold Silver ( 000 t) (%) (g/t) (g/t) ( 000 t) ( 000 oz) ( 000 oz) Open Pit Proven 298, ,699 1,246 19,137 Probable 16, Total 314, ,784 1,317 20,160 WIP** Proven 93, ,487 Probable Total 93, ,487 Underground Proven 33, ,284 Probable 13, ,271 Total 46, ,555 Combined Proven 425, ,359 1,749 27,908 Probable 30, ,294 Total 455, ,571 1,915 31,202 * Mineral Reserves included in Mineral Resources. Mineral Reserves have been prepared using metal prices of US$2.75 per pound of copper, US$1,000 per ounce of gold, and US$15.00 per ounce of silver. All figures have been rounded to reflect the relative accuracy of the estimates. Minera Candelaria Mineral Reserves for open pit and underground are reported at cut-off grades of 0.23 and 0.70 percent copper, respectively. Underground Mineral Reserves for Alcaparrosa and Santos are reported at cut-off grades of 0.73 and 0.76 percent copper, respectively. Parts of the underground Mineral Reserves have been converted from open pit Mineral Resources. ** Work-in-progress (WIP) stockpiles

81 Technical Report for the Candelaria Copper Mining Complex, Chile Page Mining Methods 15.1 Introduction Minera Candelaria consists of the Candelaria open pit and the Candelaria Norte underground mine. In 2015, two new sectors were added to the Candeleria Norte mine: Susana and Damiana, located to the south of the open pit mine. Minera Ojos del Salado consists of the Santos and Alcaparrosa underground mines. The Candelaria and the Minera Ojos del Salado facilities are close to each other. As a result both facilities share a number of surface infrastructures such as the concentrator, tailings dam as well as a shared management structure. The ore from the Candelaria open pit, Candelaria Norte, and Alcaparrosa underground mines is processed at the Candelaria concentrator. Ore from the Santos underground mine is processed at the Pedro Aguirre Cerda (PAC) plant located on the Ojos del Salado property. This section describes the open pit and underground mining methods used at the Candelaria Copper Mining Complex. The Candelaria open pit mine operates with an overall mining rate of approximately 235,000 tonnes per day including 66,000 tonnes per day of ore sent to the Candelaria concentrator. The average grade of the ore mined from the open pit over the remaining life of mine is estimated at 0.57 percent copper while stockpiled work-in-progress (WIP) material at an average of 0.36 percent copper. The mine operates seven electric shovels, 46 haulage trucks, eight production drills, and a fleet of support equipment. The location of the underground mines relative to the Candelaria open pit is shown in Figure 4. The Candelaria Norte mine is expected to produce 6,000 tonnes per day of ore for year 2015, ramping up to a steady state of 7,250 tonnes per day by 2019 as per the life of mine plan. The average life of mine grade is 0.96 percent copper. The Alcaparrosa mine currently produces 4,000 tonnes per day of ore and is expected to ramp up to a steady state of 4,300 tonnes per day by year The life of mine average grade is 0.94 percent copper. The Santos mine will continue to produce at its current rate of production of 3,750 tonnes per day of ore with an average life of mine grade of 1.04 percent copper. The mining method in all three underground mines is sublevel open stoping. The underground mines currently operate in total 13 LHDs (load haul dump vehicles), 10 front end-loaders, 14 jumbos, 10 DTH (down-the-hole) drills, ton trucks, 14 man lifts, and a fleet of support equipment.

82 Technical Report for the Candelaria Copper Mining Complex, Chile Page Open Pit Mine Design and Production Schedule A life of mine plan for Minera Candelaria is based on the Mineral Reserves reported in Section 14. The plan is largely driven by supplying ore to the Candelaria processing plant from the open pit mine and surface stockpiles once the open pit Mineral Reserves have been depleted. The current combined open pit and WIP stockpile Mineral Reserves are estimated at million tonnes at an average grade of 0.52 percent copper, 0.12 g/t gold, and 1.88 g/t silver. The open pit and WIP stockpile Mineral Reserves are reported at variable cut-off grades. The open pit was designed to be mined in several phases of development. As of June 2015, five phases of development remain in the life of mine plan (Phases 9 to 13). The overall strip ratio is expected to be 2.8:1 including ore that is initially delivered to stockpiles. The total in-pit waste is million tonnes and the overall life of the open pit mine is 17 years. The final pit design and overall Mineral Reserves including stockpiles are shown in Figure metres Total Ore to Crusher/Milled (kt) Mill Grade (%Cu) Mill Grade (g/t Au) Mill Grade (g/t Ag) FEM (%) Stripping Ratio (excluding stockpiles) Cu Concentrate (kt) Cu Concentrate Grade (%) Contained Copper Production (kt) From Mine From Stockpile Total Contained Au (koz) Contained Ag (koz) 408, , , , ,188 21,010 Figure 19: Summary of Candelaria Open Pit Mine Development Source: Minera Candelaria The open pit design is based upon the following key considerations: Phase development to smooth ore and waste scheduling with stockpile material available to supplement direct mill feed from the mine Overall and inter-ramp slope recommendations provided by Call Nicolas International Company (CNI) including use of pre-shear drilling and blasting Operating constraints of the equipment available for mining

83 Technical Report for the Candelaria Copper Mining Complex, Chile Page 60 Minimum mining width defined by double side loading of trucks with allowance for an access ramp Bench height achievable and within the safe operating reach of the primary loading units Minimum haulage road operating width and maximum effective grade within the operating limitations of the primary haulage units The primary components for the open pit slope design include bench geometry, inter-ramp, and overall slope angles (Figure 20). The current pit dimensions are 2,200 metres by 1,400 metres with a depth of 700 metres. Current inter-ramp slope angles range from 45 to 52 degrees in the west wall and from 52 to 57 degrees in the east wall. Bench face angles range from 65 to 72 degrees. Figure 20: Slope Sectors Rock Quality Designation for Phase 9 (Left) and Phase 11 (right) Source: Minera Candelaria The rock at Candelaria has a typical uniaxial compressive strength of over 140 Mpa and is considered hard rock. In the east, any wall instabilities are structurally controlled with north and northwest being the most critical directions. The failure mechanism in this wall is mainly planar failure. In the west and north walls the stability is controlled by rock mass conditions. The failure mechanisms in these walls are wedge and circular type failures. The intersection between the Lar fault and the Mistral Mirador fault generates a zone of rock weakness. Open wall slope recommendations have been provided by CNI (see Section 14). Slope monitoring is carried out in the mine on a continuous basis using robotized monitoring systems, including two robotic prism monitoring stations, five SlideMinder extensometers, four GroundProbe SS radar units, nine vibrating wire piezometers, and two web cameras. The Candelaria open pit is relatively dry owing to its location in an arid region. The northeast wall appears to be receiving some seepage from the toe of the tailings dam. Horizontal drain holes have been drilled up to 200 metres into the wall to reduce pore pressures in the area of the Lar fault. The pit designs include allowances for 32 to 33 metres wide roads including ditches and berms. Haulage roads within the pit limits have a maximum gradient of 10 percent. The final pit design is

84 Technical Report for the Candelaria Copper Mining Complex, Chile Page 61 shown in Figure 19. The flowsheet for the design and scheduling of the Minera Candelaria life of mine plan is shown in Figure 21. Figure 21: Candelaria Life of Mine Plan Development Process Source: Minera Candelaria The life of mine plan was developed using MineSight and Datamine NPVS software packages. The resource model and standard mining block model were developed in MineSight. This standard mining model was then imported to NPVS to calculate economic value items and to develop Lerchs- Grossman pit limits. A final pit design was then developed in MineSight. NPVS was then used to develop potential pushback limits. Detailed phase designs were then completed in MineSight and schedule optimization was undertaken in NPVS. Once a cut-off grade was chosen and a stockpile strategy was completed, MineSight Strategic Planner was used to create the final detailed schedule and estimation of the haulage truck requirements. The mine production schedule for Minera Candelaria and Ojos del Salado for the period 2015 to 2032 is shown in Table 26, which shows the material sent to the Candelaria and PAC plants, and the forecast processing plant recoveries together with the concentrate and contained copper, gold, and silver metal. Low grade material from the open pit is initially transferred to WIP stockpiles and later withdrawn as WIP re-handle feed for the plant. The current mine production forecast is shown graphically in Figure 22. Examples of annual development plans are shown in Figure 23 to Figure 25. For 2016, the Candelaria Copper Mining Complex expects to produce 154 kilotonnes of copper, 90 kilo ounces of gold and 1.8 million ounces of silver. Over the remaining life of mine plan (to 2032), the average annual production is estimated to be 138 kilotonnes of copper, 84 kilo ounces of gold and 1.5 million ounces of silver.

85 Technical Report for the Candelaria Copper Mining Complex, Chile Page 62 Table 26: Candelaria Copper Mining Complex Mine Production Schedule (100% Basis) Mine Production Plan 2015* Total Open pit Ore fed to mill Tonnes (kt) 10,110 19,502 14,890 14,331 14,520 13,052 13,976 8,914 9,692 10,958 14,060 11,088 25,170 26,475 19,990 16,338 22, ,533 Cu (%) Au (gpt) Ag (gpt) Open pit Low grade to WIP Tonnes (kt) 3,705 4, ,081 2, ,021 1,267 4,240 6, ,107 5, ,648 4,594 49,049 Cu (%) Au (gpt) Ag (gpt) WIP** Rehandle Tonnes (kt) 905 1,860 6,574 4,755 6,084 7,443 8,275 13,623 13,000 13,000 9,998 12,369 1,002 1,000 6,462 7,658 4,141 24, ,898 Cu (%) Au (gpt) Ag (gpt) From Candelaria u/g Tonnes (kt) 1,104 2,288 2,373 2,555 2,646 2,654 2,646 2,646 2,646 2,654 2,646 2, ,834 Cu (%) Au (gpt) Ag (gpt) From Alcaparrosa Tonnes (kt) 736 1,574 1,570 1,570 1,570 1, ,038 Cu (%) Au (gpt) Ag (gpt) Total Ore to Candelaria Plant Tonnes (kt) 12,854 25,224 25,406 23,211 24,820 24,723 25,343 25,183 25,339 26,611 26,704 26,104 26,502 27,475 26,452 23,996 26,608 24, ,303 Cu (%) Au (gpt) Ag (gpt) Open pit Waste Tonnes (kt) 26,875 60,119 60,877 53,633 58,181 62,868 48,801 66,352 52,163 63,382 63,500 67,273 51,651 43,449 50,176 38,467 15, ,921 Strip Ratio exc Stockpiles Total Ore from Santos Mine Tonnes (kt) 690 1,373 1,369 1,369 1,369 1, ,881 to PAC plant Cu (%) Au (gpt) Ag (gpt) Plant Production Plan Candelaria Plant Recoveries % Cu 92.9% 92.9% 93.2% 90.6% 91.1% 88.5% 92.4% 90.7% 93.4% 91.9% 87.8% 92.1% 93.5% 94.5% 91.3% 91.6% 93.7% 84.9% % Au 74.8% 74.7% 74.8% 74.8% 74.8% 74.7% 74.9% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% % Ag 83.8% 83.8% 83.5% 83.7% 83.5% 83.7% 84.7% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% Candelaria Plant Concentrate Tonnes (kt) ,549 Candelaria Contained Metal Cu (kt) ,281 Au (koz) ,386 Ag (moz) PAC Plant Recoveries % Cu 94.0% 94.0% 94.0% 94.0% 94.0% 94.0% 94.0% % Au 72.0% 72.0% 72.0% 72.0% 72.0% 72.0% 72.0% % Ag 72.0% 72.0% 72.0% 72.0% 72.0% 72.0% 72.0% PAC Plant Concentrate Tonnes (kt) PAC Contained Metal Cu (kt) Au (koz) Ag (moz) Total Concentrate Production Tonnes (kt) ,809 Total Contained Metal Cu (kt) ,358 Au (koz) ,429 Ag (moz) * Second half of 2015 ** Work in Progress (WIP) stockpiles

86 Technical Report for the Candelaria Copper Mining Complex, Chile Page 63 LOM 2015 Total Ore to Candelaria and PAC Plants (kt) 30,000 25,000 20,000 KTonnes ORE 15,000 10,000 5, Santos (kt) 690 1,373 1,369 1,369 1,369 1, Alcaparrosa (kt) 736 1,574 1,570 1,570 1,570 1, Candelaria UG 1,104 2,288 2,373 2,555 2,646 2,654 2,646 2,646 2,646 2,654 2,646 2, StockPiles (kt) 905 1,860 6,574 4,755 6,084 7,443 8,275 13,623 13,000 13,000 9,998 12,369 1,002 1,000 6,462 7,658 4,141 24,749 Open Pit (Kt) 10,110 19,502 14,890 14,331 14,520 13,052 13,976 8,914 9,692 10,958 14,060 11,088 25,170 26,475 19,990 16,338 22,468 LOM 2015 Combined Mill Grade %Cu 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Mill Grade %Cu LOM 2015 Contained Copper Production (tonnes) 180, , ,000 Cu Production (tonnes) 120, ,000 80,000 60,000 40,000 20, Santos 6,289 13,934 14,291 13,814 13,053 12,612 2,732 Alcaparrosa 6,392 13,425 14,077 12,897 13,261 13,673 5,902 Candelaria UG 12,593 20,256 20,137 20,191 21,869 25,319 26,914 25,192 22,557 24,070 25,332 21,998 2,217 StockPiles 4,410 8,043 22,662 16,425 21,017 25,657 27,225 43,835 37,890 31,984 24,435 30,186 2,442 2,407 15,465 18,280 9,816 60,018 Open Pit 53,486 98,580 85,197 80,842 91,778 68,497 83,420 53,932 65,017 59,288 60,570 45, ,37 162,68 109,92 93, ,56 Figure 22: Candelaria Open Pit Production Schedule Top: Total ore to Candelaria and PAC plant; Middle: Average mill feed copper grade; and Bottom: Contained copper production

87 Technical Report for the Candelaria Copper Mining Complex, Chile Page 64 N Year Pushback 9 Pushback 10 Pushback 11 Ore Ktons 20,367 19,502 Ore Ktons Ore Ktons Ore Grade %Cu 0.624% 0.543% Ore Grade %Cu Ore Grade %Cu Waste KTons 14,040 8,793 Waste KTons 44,990 46,079 Waste KTons Total KTons 36,102 37,599 Total KTons 44,990 46,079 Total KTons 1 N 624 Year Pushback 9 Pushback 10 Pushback 11 Ore Ktons 19,646 14,422 Ore Ktons Ore Ktons Ore Grade %Cu 0.543% 0.608% Ore Grade %Cu 0.592% Ore Grade %Cu Waste KTons 13, Waste KTons 48,079 49,350 Waste KTons 8,767 Total KTons 38,500 17,733 Total KTons 48,079 49,923 Total KTons 8,767 2 Figure 23: Annual Development Plan for 2016 (top) and 2017 (bottom) Source: Minera Candelaria Note: Green = waste; Blue = WIP stockpile; Red = ore

88 Technical Report for the Candelaria Copper Mining Complex, Chile Page 65 N Year Pushback 11 Pushback 12 Pushback 13 Ore Ktons 5,085 Ore Ktons 5,873 Ore Ktons Ore Grade %Cu 0.54 Ore Grade %Cu 0.59 Ore Grade %Cu Waste KTons 4,759 Waste KTons 8,097 Waste KTons 50, Total KTons 12,351 Total KTons 17,480 Total KTons 50,022 1 N Year Pushback 11 Pushback 12 Pushback 13 Ore Ktons Ore Ktons 8,566 Ore Ktons 2, Ore Grade %Cu Ore Grade %Cu 0.41 Ore Grade %Cu 0.46 Waste KTons Waste KTons 16,923 Waste KTons 50,327 Total KTons Total KTons 25,597 Total KTons 53,000 3 Figure 24: Annual Development Plan for 2024 (top) and 2026 (bottom) Source: Minera Candelaria Note: Green = waste; Blue = WIP stockpile; Red = ore

89 Technical Report for the Candelaria Copper Mining Complex, Chile Page 66 N Year Pushback 11 Pushback 12 Pushback 13 Ore Ktons Ore Ktons 11,434 Ore Ktons 8,556 Ore Grade %Cu Ore Grade %Cu 0.52 Ore Grade %Cu 0.70 Waste KTons Waste KTons 5,006 Waste KTons 45,170 Total KTons Total KTons 16,894 Total KTons 54,000 3 N Year Pushback 11 Pushback 12 Pushback 13 Ore Ktons Ore Ktons Ore Ktons 22,468 Ore Grade %Cu Ore Grade %Cu Ore Grade %Cu 0.78 Waste KTons Waste KTons Waste KTons 15,152 Total KTons Total KTons Total KTons 42,143 1 Figure 25: Annual Development Plan for 2029 (top) and 2031 (bottom) Source: Minera Candelaria Note: Green = waste; Blue = WIP stockpile; Red = ore

90 Technical Report for the Candelaria Copper Mining Complex, Chile Page Underground Mine Design and Production Schedule Each of the three underground mines and its associated facilities is accessed by a surface portal and ramp. Figure 26, Figure 27, Figure 28, and Figure 29 show the basic layout of Candelaria Norte, the Damiana-Susana area deposits, Santos mine, and Alcaparrosa mine, respectively. Figure 26: Candelaria Norte Mine Layout and Sectors Source: Minera Candelaria Figure 27: Candelaria Norte Mine Showing the Layout of the Damiana and Susana Sectors Source: Minera Candelaria

91 Technical Report for the Candelaria Copper Mining Complex, Chile Page 68 Meléndez Central Meléndez Sur Supernova Helena Sur Figure 28: Santos Mine Layout and Sectors Source: Minera Ojos del Salado Figure 29: Alcaparrosa Mine Layout and Sectors Source: Minera Ojos del Salado The underground mines employ geology, planning, and surveying personnel. The mines operate using detailed production, development plans, and schedules and all of the mining activities are conducted under the guidance and oversight of the general mine manager. The operational activities at all of the mines are performed by contractors with oversight by Candelaria and Ojos del Salado management. The contractors employ and manage the mines labour personnel and they own and maintain the mining equipment.

92 Technical Report for the Candelaria Copper Mining Complex, Chile Page 69 The underground mines are all relatively dry owing to their location in an arid region. Geotechnical rock mass characterization is completed from core logging, detailed mapping of geological structures, testing of intact material properties, and measuring in situ stresses. Empirical open stope design methodologies have been used to determine roof and wall stability and the size of pillars. Numerical analysis simulation tools for mine sequencing analysis are also applied. External consultants undertook global stability analysis of the planned open stoping operations for all three underground mines in 2013 and 2014, and produced the following reports: Análisis de Estabilidad Global Complejo Super Nova Mina Santos, prepared by E-Mining Technology S.A. for Minera Candelaria Análisis de Estabilidad Global Mina Alcaparrosa, prepared by E-Mining Technology S.A. for Minera Candelaria Analisis Nueva Secuencia De Explotacion Sector Mantos Elisa Mina Candelaria Norte, prepared by E-Mining Technology S.A. for Minera Candelaria SRK is of the opinion that the stopes that support the proposed life of mine plan for Candelaria Norte, Alcaparrosa, and Santos can be mined as expected. The flowsheet for the design and scheduling of the underground Mineral Reserves in the mine plan is shown in Figure 30. The three underground mines utilize a sublevel open stoping mining method for ore extraction. This method is ideal for relatively large, vertical, as well as thick deposits with favourable and stable host rock. See Figure 31. Figure 30: Candelaria Life of Mine Plan Development Process Source: Minera Candelaria

93 Technical Report for the Candelaria Copper Mining Complex, Chile Page 70 Figure 31: Typical Sublevel Open Stope Stopes can typically be up to 100 metres high with sublevels at 25- to 50-metre intervals. The length of the stopes is generally 80 metres with widths varying between 20 to 30 metres. Stopes are drilled down from the sublevel drilling drifts as benches using 4.5 to 5.5 inch diameter DTH holes. The holes are loaded and blasted in vertical slices towards an open face. The blasted ore gravitates to the bottom of the stope and is collected through drawpoints at the production level below. This lower level also consists of the haulage drift. The drawpoints are 7 metres high and inclined at 50 to 60 degrees to allow the blasted ore to flow. Conventionally drilled 2.5 inch upholes within the drawpoints are loaded and blasted along with the down-holes. Once the stope is mined, a remaining rib pillar, which can be another 20 to 30 metres wide, may be blasted into the stope providing higher extraction. A 20-metre structural pillar remains between each stope and no backfill is used at these operations. Ore is mucked from the drawpoints using surface-type front-end loaders and LHDs. The mucked ore is dumped into 30-ton, highway-type trucks and hauled up the ramp to a surface stockpile for subsequent re-handling and processing. Some ore may be irrecoverable at stope completion, while other ore is left in-stope as support pillars, lowering the overall mining recovery. The mining recovery varies depending on the type of stope and its geometry. The amount of dilution also varies depending on the stope setting. Dilution typically contains mineralized material with low metal grades. Typical mining recovery and dilution factors are summarized in Table 27. Table 27: Summary of Stope Setting Stope Type Dilution Recovery (%) (%) Vertical Inclined Rib Pillar Structural pillar

94 Technical Report for the Candelaria Copper Mining Complex, Chile Page Underground Mine Plan Mine The current scheduled annual production for Candelaria Norte, Santos, and Alcaparrosa is summarized in Table 28. Table 28: Underground Mineral Reserve Schedule Candelaria Norte Production Plan 2015-H Tonnes (kt) 1,104 2,288 2,373 2,555 2,646 2,654 2,646 2,646 2,646 2,654 2,646 2, Cu (%) Au (g/t) Ag (g/t) Santos Tonnes (kt) 690 1,373 1,369 1,369 1,369 1, Cu (%) Au (g/t) Ag (g/t) Alcaparrosa Tonnes (kt) 736 1,574 1,570 1,570 1,570 1, Cu (%) Au (g/t) Ag (g/t) Candeleria Norte has a significant increase in its production rate beginning in Three new sectors will be introduced into the life of mine plan: Lila, Wendy Norte, and Elisa Norte. The increase in the life of mine itself is achieved by a later inclusion of the Susana and Damiana sectors to the South. The schedule and ramp-up periods are summarized below: 2016 Candelaria Norte ramp ups tonnage from 6,000 to 6,500 tonnes per day 2018 Candelaria Norte ramp ups tonnage from 6,500 to 7,000 tonnes per day and then to 7,250 tonnes per day in Candelaria Norte production ends and replaced with production from Susana and Damiana sectors to maintain throughput to 7,250 tonnes per day by year end 2027 Susana and Damiana tonnage begins to ramp down In order to meet these targets, the following development rates are planned for Candeleria Norte: 2015 to metres per month metres per month 2018 to metres per month metres per month for Damiana and Susana The Santos mine will maintain its current production rate of 3,750 tonnes per day until the end of it life of mine in This will be achieved by developing 150 metres per month until the second quarter of 2017 when the development rate will increase to 250 metres per month. Beginning in 2017, two new sectors will be included, Melendez Central and Helena South. The Alcaparrosa mine will ramp up from its current production rate of 4,000 to 4,300 tonnes per day. This is supported by developing 430 metres per month beginning in year In 2016, two new sectors, Viviana and Alcaparrosa South, are expected to be included in the life of mine plan.

95 Technical Report for the Candelaria Copper Mining Complex, Chile Page Waste Dumps The capacity of each of the waste dumps is summarized in Table 29. The waste dump surface area will be increased by approximately 347 hectares with an expanded capacity of approximately 750 million tonnes. The dumps will be constructed in 20-metre lifts and 30-metre wide access ramps. Table 29: Waste Dump Capacity Waste Rock Dump Currently Approved (Mt) Additional Project (Mt) Currently Approved Elevation (m.a.s.l.) Projected Elevation (m.a.s.l.) Final Projected Surface Area (hectare) Total (Mt) Norte 1, , Nantoco Source: Minera Candelaria 15.6 Mine Equipment Open Pit Mine Equipment The open pit mine is a conventional truck and shovel operation. The unit operations are drilling, blasting, grade control, loading, and hauling. The primary loading units are electric cable shovels. The primary drills are rotary electric and diesel powered units. Support equipment provides development access, road maintenance, and equipment servicing capability. The open pit mine operates 24 hours per day, 365 days per year. Shift employees work 8-hour shifts. The overall mining rate is currently 235,000 tonnes per day. Total primary crusher throughput is typically 70,000 tonnes per day. The primary production blasthole drills are rotary machines capable of single pass drilling on a 16-metre bench. The current drill fleet consists of two Bucyrus BE-49R electric drills, one Atlas Copco Pit Viper PV-271, and five PV-351 diesel units. Drill mechanical availability for the fleet averages 83 percent and utilization averages 60 percent. Drill penetration rates are currently 20 metres per hour in Phase 8 and 27 metres per hour in Phase 9. The rock at Candelaria is hard and fine fragmentation is required in most areas of the pit to maximize throughput to the concentrator. As a result, drill patterns are relatively tight resulting in powder factors ranging from 0.50 to 0.75 kilogram per tonne. The wall control blasting includes line holes drilled for presplitting. There are two Atlas Copco Roc L8 drills dedicated to line hole drilling. The line holes are normally drilled on 2-metre centres at the recommended bench face angle on a double bench. Blasting is carried out with heavy ammonium nitrate / fuel oil. Blasthole cuttings are sampled and assayed for copper only for grade control. The primary loading fleet currently consists of three P&H 4100 (43 cubic metres), three P&H 2800 (28 cubic metres) electric cable shovels and one P&H 2100 (13 cubic metres) electric cable shovel. Support units include one Cat 994 (16 cubic metres) and one Cat 992 (9 cubic metres) wheel loader. The P&H 4100 and P&H 2800 shovels mine stockpiles, ore, and waste. The P&H 2100 re-handles ore from the Candelaria Norte underground mine to large haulage trucks for transportation to the

96 Technical Report for the Candelaria Copper Mining Complex, Chile Page 73 primary crusher. The shovel fleet has an average availability of 84 percent and utilization of 82 percent. Candelaria implemented a rebuild program on shovels, completing major rebuilds on five shovels between 2009 and The Candelaria haulage fleet currently consists of 46 Cat 793 mechanical drive trucks. These trucks use light boxes and typically carry loads of between 232 and 237 tonnes. Road conditions in the mine are very good and tire life is 90,000 kilometres. A truck rebuild program is also in place at Candelaria and trucks are overhauled at 100,000 hours with an extended life expectancy of 75,000 hours. The truck fleet availability is 90 percent and utilization is 87 percent. Loading times for the trucks range from 5.0 minutes with a P&H 2100 to 1.6 minutes with a P&H The truck fleet requirement in the life of mine plan is expected to peak at 45 units. The mine has an extensive fleet of support equipment. The track dozer fleet includes six Cat D10 and two Cat D11 models, which are used on dumps, stockpiles, and in the pit for bench maintenance. There are five Cat 824 wheel dozers for road and bench maintenance. The grader fleet includes three Cat 16M and one Cat 24M models. The mine support equipment fleet includes five Cat 773 and one Cat 777 water trucks for watering roads and working faces prior to loading to control dust. The excavator fleet includes two Cat 385 models that are used for wall scaling and ditching as required. A dispatch system is used in the mine. High precision GPS locators are used on the shovels and the drills. Lower precision systems are used on the trucks and the auxiliary equipment Underground Mine Equipment All three underground mines utilizes conventional surface and underground equipment designed for a hard-rock operational mine. LHDs units and front-end loaders are used for mucking ore from the drawpoints and development headings. Currently, these units are not fitted with any remote control capability. Therefore, any muck past the brow would remain in the stope as unrecovered loss. Blasted ore is mucked into 30-ton, highway-type trucks. For production ore, typically three to four trucks are assigned to one loader depending on the haul distance. For drilling, down-the-hole (DTH) drills with a 4.5 inch diameter holes are used in the sublevels. Twin-boom jumbos drill off the development headings and also drill holes for bolting. Man lifts are used for services and installation of bolts. The overall mining rate is currently 6,000 tonnes per day for Candelaria Norte (ramping up to 7,250 tonnes per day by 2020), 3,800 tonnes per day for Santos and 4,000 tonnes per day for Alcaparrosa (ramping up to 4,300 tonnes per day in 2016). The mining equipment currently used at Candeleria Norte, Alcaparrosa and Santos mines is summarized in Table 30. All underground mining equipment is owned and operated by contractors and it is expected that the number of units they employ will increase modestly as the production rate increases.

97 Technical Report for the Candelaria Copper Mining Complex, Chile Page 74 Table 30: Underground Mining Equipment Equipment Candeleria Norte Alcaparrosa and Santos LHDS 6 4 Front-end Loaders 3 9 Jumbos 5 4 DTH Drills 4 5 Trucks (30 tonnes) Trucks (20 tonnes) 0 19 Trucks (50 tonnes) 0 14 Simba Drills 1 2 Man Lifts 7 4

98 Technical Report for the Candelaria Copper Mining Complex, Chile Page Recovery Methods The Candelaria Copper Mining Complex operates its own processing plants. The Candelaria processing plant receives ore from the Candelaria open pit and Candelaria Norte and Alcaparrosa underground mines. It has a nominal capacity of 75,000 tonnes per day. The Pedro Aguirre Cerda (PAC) processing plant receives ore from the Santos underground mine and has a design capacity of 3,800 tonnes per day. The Candelaria and PAC processing plants have been operating for several years. Other than discussed herein, both processing plants operate with adequate energy, water, and process materials. Over the projected life of mine plan, a new tailings storage facility will be required Minera Candelaria Plant Minera Candelaria is a mature operation that started producing in Its processing plant has a nominal capacity of 75,000 tonnes per day of fresh feed and produces a copper concentrate with gold and silver metal as credits. Additionally, Minera Candelaria has an agreement with a third party company to process Candelaria s flotation tails to recover a magnetite concentrate as an additional by-product credit. The historical processing performance of Minera Candelaria from 2000 to 2014 has averaged 25 million tonnes per year, equivalent to approximately 68,600 tonnes per day with a utilization of 93 percent, see Figure 32. Production for 2015 is sustained and the production plan continues at this capacity until 2032 with the last year being predominately stockpiled material. Crushed, Milled ore (Million dry tonnes /year) Minera Candelaria - Historical Processing Capacity Crushed ore tonnes/year Milled ore tonnes/year Milled ore tonnes/day Milled ore, (kilo-tonnes/day) Operating year Figure 32: Historical Performance Candelaria Processing Capacity

99 Technical Report for the Candelaria Copper Mining Complex, Chile Page 76 Over the same period, between 2000 and June 2015, metallurgical recovery averaged 94 percent for copper, 75 percent for gold, and 85 percent for silver (Figure 33). Typical Candelaria copper concentrate averages 30 percent copper, 5 grams of gold per tonne (g/t gold), and 90 g/t silver with a moisture content of 8 percent after filtration. Mill recovery Minera Candelaria - Historical Processing Performance Mill recovery %Cu Mill recovery %Au Mill recovery %Ag Mill feed grade %Cu Mill feed grade, %Cu Operating year Figure 33: Historical Performance Candelaria Metallurgical Performance Processing Flowsheet Minera Candelaria operates a conventional process plant flowsheet that incorporates crushing, two parallel process lines for grinding and flotation, reclaimed process water from the tailings storage facility comprised of conventionally thickened and rockfill embankment dams, final concentrate filtration, and shipping of bulk copper concentrates. Run of mine ore is trucked to a primary gyratory crusher. The crushed product is conveyed using an overland conveyor belt system to a coarse ore stockpile with a combined live and dead capacity of 500,000 tonnes. Grinding takes place in a multi-stage closed circuit using semi-autogenous grinding (SAG) mill, ball mill, and pebble crushing. A multi-stage flotation circuit using an arrangement of mechanical cells, regrind mill, and column cells produces copper concentrate. Final copper flotation concentrate with gold and silver by-product metals is thickened, filtered, and stored on site before being trucked to Candelaria s shipping port located in Punta Padrones, near Caldera. Final flotation tails are conventionally thickened and disposed of in a rockfill embankment tailings storage facility. Process water is reclaimed from the tailings reclaim pond and seepage collection system for reuse in the processing plant. Figure 34 shows the complete Candelaria process flowsheet while Table 31 lists details of the major equipment. Recent changes not shown in the flowsheet include redeployment of the regrind ball mill (14 by 22 feet) for use in processing crushed pebbles. It has been replaced with a new, 1,250 horsepower vertical regrind mill for Phase 1 concentrate regrinding duty.

100 3CL Lundin Mining Corporation Technical Report for the Candelaria Copper Mining Complex, Chile Page 77 WATER SUPPLY AND RECOVERY OF Intermediate Ore Stockpile Capacity ~500,000 ton. Buster Pump (4) DRESSER 21 Primary Crusher 60x89 in. Gyratory P H P H Pond DR ES H AU LPAK 6 85 E SE R DRES SER 21 Feeders (3) 21 Feeders (3) Alcaparrosa Wells (5) Dispatch Tower Bin PHASE I PHASE II Cyclone Classifiers (2 sets of 10) Cyclone Classifiers (2 sets of 10) SAG Mill (1) 36x15 ft. Rougher flotation cells (14) ft 3 Ball Mills (2) 20x30 ft. SAG Mill (1) 36x15 ft. Pebbles Crushers (3) 700 HP Classification Screen (2) (stand by 1) Cyclone Classifiers (1 sets of 14) Classification Screen (2) (stand by 1) Metals Detector Column Cells (4) Fresh Water Storage Tank Magnets Scavenger Flotation Cells (8) ft3 Magnetite Reject To Osmosis Plant To Plant Regrind Mills (1) 14x22 ft. Cyclone Classifiers (1 sets of 14) Metals Detector Fire Line Magnets Magnetite Reject Rougher flotation cells (10) 4,500 ft Ball Mills (2) 20x30 ft. Column Cells (4) Vertimill (1) 800 hp Scavenger Flotation Cells3 (6) 4,500 ft To Plant Process Water Storage Tank Concentrate Thickener (3) 100 ft. Tailing Thickener (2) 400 ft. Evaporation Tailing Dam Ceramic Disc Concentrate Filters (8) O Flow Pumps Cut off Wall Reclaim Water Pumps Cut off Wall Shaft Concentrate Storage Building 5,000 tons. MECHANIZED CLEAN PORT FACILITIES Concentrate Storage Building 45,000 tons. To Punta Padrones Port Dual Linear Ships Loader Truck Scale Figure 34: Minera Candelaria Flowsheet Source: Minera Candelaria SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

101 Technical Report for the Candelaria Copper Mining Complex, Chile Page 78 Table 31: Major Processing Equipment and Systems at Minera Candelaria Area Unit process Equipment Crushing Primary crusher Gyratory 60 in x 89 in Mill Coarse ore stockpile 500,000 tonnes total Mill processing line 1 Grinding SAG mill 36 ft x 15 ft 3 x pebble crusher 2 x ball mill 20 ft x 30 ft 2 x 10 x hydrocyclone 1 x regrind mill 14 ft x 22 ft (for pebbles) Flotation 14 x rougher cells 3000 ft 3 1 x vertical regrind mill 1250 HP 4 x column cell 3 x flotation cells 3000 ft 3 Mill processing line 2 Grinding SAG mill 36 ft x 15 ft 3 x pebble crusher 2 x ball mill 20 ft x 30 ft 2 x 10 x hydrocyclone Flotation 10 x rougher cells 4500 ft 3 1 x vertical regrind mill 800 HP 4 x column cell 6 x flotation cells 4500 ft 3 Final tails Tailings thickener 2 x 400 ft diameter Final concentrate Concentrate thickener 3 x 100 ft diameter Filtration 8 x ceramic filters Storage 5,000 tonnes total Port Storage 45,000 tonnes total Water supply Fresh water wells 5 x wells at Alcaparrosa Water supply Ocean water Desalination plant at Punta Padrones Reagents Minera Candelaria applies a suite of surface modifiers in flotation to maximize recovery of copper and by-product credit metals and for the dewatering of its flotation product. See Table 32 for the list of reagents and range of consumption levels (in grams per tonne). Table 32: List of Processing Plant Reagents and Consumptions Reagent Commercial Name Manufacturer Consumption (g/t) minimum maximum Primary collector AP3894 Cytec 6 12 Secondary collector Hostaflot-Lib K Sansil-Clariant 3 8 Frother Nalflote 9837 Nalco 3 10 Lime Lime Inacal Flocculant concentrate Optimer 9876 Nalco 2 5 Flocculant tailings SNF 228 SNF Magnetite Recovery Since 2008, tailings from the Minera Candelaria processing plant have been treated under an agreement with Compañía Minera del Pacifico S.A. (Minera del Pacifico) to produce a magnetite concentrate. The Minera del Pacifico magnetite extraction plant is located to the west of the plant site area and to the south of the tailings storage facility (see Figure 4). The magnetite concentrate

102 Technical Report for the Candelaria Copper Mining Complex, Chile Page 79 from the plant is transferred via pipeline to Minera del Pacifico s port near Caldera and the remaining non-magnetic material is deposited in the Candelaria tailings storage facility. The magnetite concentrate produces an additional source of by-product revenue to Minera Candelaria reported in 2014 as US$32 million. The mine production plan shows 0.9 to 3.4 million tonnes of magnetite being produced annually until 2032 from tailings with a magnetic content of 5 to 14 percent iron. The revenue from the magnetite production is linked to global iron ore prices and therefore, similar levels of revenue may not be achieved in the future Ojos del Salado PAC Plant The PAC concentrator of Minera Ojos del Salado has been in operation since The concentrator processes 3,800 tonnes per day of fresh feed from the Santos underground mine with an historical average head grade of 0.85 percent copper and a copper recovery of 94 percent. The copper concentrate produced has averaged 30 percent copper, 5 g/t gold, and 67 g/t silver since Gold and silver recoveries are slightly lower than Candelaria at 72 percent each. The current mine plan shows the PAC plant will continue to operate at this capacity until 2021, when it will halt production. The concentrator flowsheet comprises a close-circuit crushing plant (Figure 35) including a primary jaw crusher (48 x 60 inch), a secondary cone crusher (Symons 7-foot standard) and two tertiary cone crushers (Symons 7-foot short head). Figure 35: Ojos del Salado Flowsheet Crushing Plant Source: Minera Ojos del Salado

103 Technical Report for the Candelaria Copper Mining Complex, Chile Page 80 The grinding plant (Figure 36) has three ball mills (one 9 x 9 feet and two 10.5 x 13 feet) operating in parallel and in closed-circuit with hydro-cyclone classifiers. Figure 36: Ojos del Salado Flowsheet Grinding Plant Source: Minera Ojos del Salado The flotation plant (Figure 37) uses conventional multi-stage, mechanical, self-aspirated, and forcedair flotation cells (1,500, 300, and 100 cubic feet), regrind milling and column cells for the final concentrate cleaning stage. Final concentrate is thickened and filtered with a 30 cubic metre ceramic disc filter. Final flotation tailings from the PAC plant are pumped to the main Candelaria tailings storage facility but are not processed through the magnetite recovery plant. Figure 37: Ojos del Salado Flowsheet Flotation Plant Source: Minera Ojos del Salado

104 Technical Report for the Candelaria Copper Mining Complex, Chile Page Candelaria Tailings Storage Facility The Candelaria tailings storage facility, located to the northwest of the open pit (Figure 4), currently receives flotation tails from the Candelaria and Ojos del Salado processing plants. The Candelaria flotation tails are thickened and pumped to the tailings storage facility at an average solids concentration of 50 percent. The Ojos del Salado flotation tails are pumped unthickened at an average solids concentration of 35 percent. The remaining storage capacity is estimated at 36 million cubic metres. This is sufficient to receive tailings until the end of 2017 at the current production throughput, when the tailings level will reach 795 metres above sea level with the embankment at 800 metres above sea level. The Candelaria tailings storage facility currently has three embankment dams, Main dam, North dam, and South dam, built with mine waste material with a final designed height of 800 metres above sea level. Construction of the final dam configuration is currently underway and is expected to be completed in A small containment dike (Decidida) is built from borrow material on the western edge of the facility. The dams have a filter system comprised of varying combinations of granular material, geotextile and/or HDPE liner on the upstream slope. The downstream slope of the dams is 1.6(H):1.0(V) and the upstream slope is 1.8(H):1.0(V), except for the Decidida dam where both slopes are 1.8(H):1.0(V). To facilitate construction, the upstream slope uses benches and slightly steeper interbench slopes resulting in a net slope of 1.8:1(H):1.0(V). All of the dams are constructed with the downstream method. The currently proposed closure plan for the Candelaria tailings storage facility includes a cover of granular material with channels to direct surface run-off towards a spillway located at the south west end of the South dam Los Diques Tailings Facility (Proposed) A new tailings storage facility, known as Los Diques, to the southwest of the open pit and plant sites (see Figure 4), has been designed to replace the Candelaria tailings storage facility. The Los Diques facility will have an approximate designed capacity of 600 million tonnes, to a final crest elevation of 873 metres above sea level, which is more than that required by the current projected mine life. The Los Diques tailings storage facility is a key part of the Candelaria Operational Continuity Project environmental impact assessment that was submitted to the environmental authorities in September 2013 and approved on July 23, Refer to Section 19 for further details about the Candelaria 2030 approval process. The proposed Los Diques tailings storage facility requires relocating four power lines and one segment of the C-397 public road. A new water pipeline, parallel to the current one, is included in the permit application, but is not included in the project plan or required for Los Diques operations. The new tailings facility is designed with three embankments, all of them built from mine waste material, with transition and filter zones built from engineered fill borrowed from inside the containment area. The main embankment will have underdrains to facilitate water recovery. The design includes a geomembrane on the upstream slope and a grout curtain for the north and south embankments only. In addition, a cut-off wall and drain wall are proposed, along with extraction wells to collect seepage water for recirculation to the processing plant. The currently proposed Los Diques closure plan includes a cover and a spillway on the north embankment that will direct surface run-off to a drainage canal located on the west boundary of the embankment. Water which is collected in the drainage canal will be routed to the pit.

105 Technical Report for the Candelaria Copper Mining Complex, Chile Page 82 Ongoing engineering and construction are underway to maintain adequate tailings storage capacity at the Candelaria facility. To mitigate the risk that permitting and construction of Los Diques is not completed before reaching the capacity of the existing tailings facility, Minera Candelaria is implementing a plan to reduce the permitted freeboard of the existing facility, thereby gaining approximately 14 months of additional storage capacity. Permit modifications have been submitted to reduce freeboard between tailings and dam crest from 5.0 metres to 1.5 metres, which complies with Chilean law. Additionally, engineering was completed on a possible dam crest raise from 800 to 804 metres above sea level. However, due to schedule issues associated with construction and permitting, this project was put on hold. Finally, alternatives are being developed to further maximize the available capacity in the existing tailings facility, including but not limited to cell deposition techniques.

106 Technical Report for the Candelaria Copper Mining Complex, Chile Page Project Infrastructure This section provides a summary of the major infrastructure of the Candelaria Copper Mining Complex. This section is compiled from information collected during the site visit when all major infrastructure was visited by SRK. The major infrastructure is shown in Figure Candelaria Copper Mining Complex The Minera Candelaria infrastructure includes: The Candelaria open pit mine with a capacity of approximately 270,000 tonnes of rock per day Surface waste dumps located to the north and southwest of the Candelaria open pit The Candelaria processing plant with a capacity of 75,000 tonnes per day The Candelaria Norte underground mine with a current ore capacity of 6,000 tonnes per day (which will be ramped up to 7,250 tonnes per day later in its mine life) and access from a portal located within the Candelaria open pit The Candelaria tailings facility located northwest of the Candelaria open pit Ancillary mine services and administrative buildings and road accesses The off-site Punta Padrones port located at Caldera with a 45,000 wet metric tonne designed storage capacity and 1,000 wet metric tonnes per hour loading capacity A desalination plant adjacent to the port facility commissioned in January 2013 with a capacity of 500 litres per second and related aqueduct to connect to the Bodega pump station (80 kilometres) A pipeline from the Bodega pump station to the Candelaria plant site (40 kilometres) The Minera Ojos del Salado infrastructure includes: The Alcaparrosa underground mine with an ore capacity of 4,000 tonnes per day and access by a portal The Santos underground mine with an ore capacity of 3,800 tonnes per day (which will be ramped up to 4,000 tonnes per day later in its mine life) and access by a separate portal The PAC processing plant with a capacity of 3,800 tonnes per day Ancillary surface service buildings and road accesses 17.2 Power Supply Power supply for the Candelaria Copper Mining Complex, as well as the port and desalination facilities, is supplied under a contract with GENER (AES Gener S.A.) since July The contract is in place for 10 years. The contract has a number of maximum and minimum power supply limits with a maximum capacity of approximately 135 megawatts and under all foreseen future operating circumstances these are likely to be met. Typical combined maximum demands for the mines, port, and desalination plant are approximately 110 megawatts. Minera Candelaria and Minera Ojos del Salado are listed in GENER s list of customers for the year 2013 as consuming 749 and 61 gigawatt hours, respectively.

107 Technical Report for the Candelaria Copper Mining Complex, Chile Page 84 The combined consumption of both companies totals 810 gigawatt hours per year representing the third largest contract in terms of consumption for the utility company. Reported power costs in 2014 were US$0.105 per kilowatt hour Punta Padrones Port Facilities Minera Candelaria infrastructure includes the Punta Padrones port facilities located at Caldera on the Pacific Ocean seaboard (Figure 1 and Figure 3). It has been in operation since The facility comprises a covered concentrate warehouse with a capacity of 45,000 wet metric tonnes and a telescopic ship loader that has a capacity of 1,000 wet metric tonnes per hour. The facility is equipped with dust collection systems and all concentrate truck discharge and warehouse loader activities take place inside covered buildings. The telescopic ship loader is PLC controlled and conveyor discharge to the ship hold is via an elephant s trunk. The port is able to accommodate ships of up to 58,000 metric tonnes with drafts of up to 12.4 metres. Typically, three vessels are loaded per month. The total capacity of the port is approximately 3.5 million wet metric tonnes per annum. The maximum annual concentrate production over the remaining life of mine is approximately 600,000 wet metric tonnes per annum. Overall utilization of the port is therefore low and the excess capacity is potentially available for cost savings and sharing with other concentrate exporters Fresh Water Supply Historically, the Candelaria Copper Mining Complex sourced fresh water from deep wells in the nearby Copiapó aquifer (see Table 33) for which the mines held and continue to hold water rights. During the 2000s, water levels in many of these wells dropped significantly and some went dry. Following an extensive examination of alternative water supplies, including more distant ground water wells, Minera Candelaria opted to construct a desalination plant at the Punta Padrones port site and pump the water 110 kilometres to the mine site via a dedicated pipeline and booster pump station (Figure 38). The desalination plant was originally designed at 300 litres per second and was later expanded to 500 litres per second. The desalination plant itself consists of three, nominal 150 litres per second lines comprising prefiltration, ultra-filtration, micro-filtration ahead of conventional reverse osmosis. The reverse osmosis plant includes 468 pressure vessels with 3,276 membranes operating at a pressure exceeding 1,000 pounds per square inch. The desalination plant was commissioned in early 2013 and has since reached nameplate capacity. In November 2013, extraction from groundwater sources in the Copiapó aquifer was stopped with the exception of water for potable supply and emergencies. In addition to the desalination plant, the mines also source water from Agua Chanar, a private company that treats the sewage from Copiapó and Tierra Amarilla. The Agua Chanar water is supplied under a 10-year contract to mid-2020 to Minera Candelaria and Minera del Pacifico, who operates the magnetite recovery from the tailings plant. The agreement established with Aguas Chañar requires that it supplies a minimum of 175 litres per second with 70 percent of the water supplied to Minera Candelaria and 30 percent to Minera del Pacifico. The environmental approval of the Candelaria 2030 project requires the gradual reduction in the utilization of treated water from Aguas Chañar (175 litres per second), and increased utilization of water from the desalination plant. The reduction must be in the following stages: a 25 percent reduction through Year 3 of operations; a 50 percent reduction from Year 4 to 6; a 75 percent

108 Technical Report for the Candelaria Copper Mining Complex, Chile Page 85 reduction from Year 7 to 9; and a 100 percent from year 10 to the end of the mine life. The excess treated water, must be discharged into the Copiapó River. Table 33: Candelaria Fresh Water Supply Wells Area Source Location L/s Year Alcaparrosa Well 8 Alcaparrosa Alcaparrosa Well 12 Alcaparrosa Alcaparrosa Well 14 Alcaparrosa Paipote Well 10 Paipote Paipote Well 11 Paipote Paipote Well 15 Punta Negra, Paipote Paipote Well 16 Callejón Toro Lorca Palermo Well 9 Palermo Palermo Well 13 Palermo Toledo - Piedra Colgada Well 1 Piedra Colgada 5, Toledo - Piedra Colgada Well Parcela 26 B, Toledo 3, Toledo - Piedra Colgada Well PC 28 Parcela 28, Piedra Colgada 6, Toledo - Piedra Colgada Well 29 Parcela 15, Lote A, PC Toledo - Piedra Colgada Well 8 Parcela 34, Chamonate 4, Toledo - Piedra Colgada Well 31 Lote 224, of PC 32, Piedra Colgada Toledo - Piedra Colgada Well 1 PC 5, Campo Lindo Toledo - Piedra Colgada Well 2 PC 5, Campo Lindo Toledo - Piedra Colgada Well 3 PC 5, Campo Lindo Toledo - Piedra Colgada Well Parcela 24, Chamonate San Pedro Well 1 San Pedro 9, San Pedro Well 1 San Pedro 10, San Pedro Well 2 San Pedro San Pedro Well 2 San Pedro San Pedro Well 1 San Pedro Nantoco Well Parcela 8, Nantoco 7, Toledo - Piedra Colgada Community Well Parcela 28, Piedra Colgada 6, Toledo - Piedra Colgada Community Well Parcela 28, Piedra Colgada 6, Toledo - Piedra Colgada Community Well Parcela 28, Piedra Colgada 6, Toledo - Piedra Colgada Well 6 Piedra Colgada, Econssa Toledo - Piedra Colgada Well 6 Piedra Colgada, Econssa Toledo - Piedra Colgada Well 6 Piedra Colgada, Econssa Source: Candelaria Copper Mining Complex Desal Plant (300 l/s) 24 Lined Pipeline with 500 i/s capacity (~80 km) 110 kv & 23 kv Power lines (~110 km) Bodega Candelaria 24 Lined Pipeline with 500 i/s capacity (~35 km) Figure 38: Desalination Plant Location and Pipeline to Candelaria Site Source: Minera Candelaria

109 Technical Report for the Candelaria Copper Mining Complex, Chile Page Market Studies and Contracts The Candelaria Copper Mining Complex has been selling copper sulphide concentrates to customers worldwide according to established contracts. Market studies are therefore not relevant to the purpose of this technical report. This section summarizes the key contracts regarding the Candelaria Copper Mining Complex. The quality of the copper concentrates produced by the Candelaria Copper Mining Complex is excellent. The concentrates are clean and have very low content of critical elements such as lead (Pb), arsenic (As), antimony (Sb), bismuth (Bi), and mercury (Hg). The range of the zinc (Zn) content in the Candelaria copper concentrates is very wide (0.1 percent to 3.75 percent) and may result in modest penalties from some copper smelters. Both copper concentrates have significant by-product credits of gold and silver. Technically, the copper concentrates have no limitations and can be treated at all copper smelters worldwide. The Candelaria concentrate is primarily sold under four long-term contracts. Two of these expire at the end of 2016, a third in 2017 while the fourth, for 30,000 50,000 tonnes per year, runs until All contracts are based on standard copper smelter annual contract treatment terms. The concentrate is shipped from the Punta Padrones port facility to destinations in Europe, China, Japan, Korea, India, and Brazil. As necessary, and to adjust for production variability, a small portion of concentrate production is sold into the spot market at then-current market terms for destinations similar to the above. The Ojos de Salado copper concentrate is currently sold under two long-term contracts: one for domestic delivery in Chile and one for delivery to Japan. The contracts run to 2017 and 2018, respectively, and both are based on standard annual contract terms. The sales contracts for both products are a mix of block and brick contracts. Under a block contract, 100 percent of the terms are based on the current year s annual terms, while under a brick contract, the terms for each year are being based on 50 percent at the prior year s annual terms and 50 percent at the current year s annual terms. Minera Candelaria and Minera Ojos del Salados have entered into two Contracts of Affreightments (COA) with two different shipping companies. These COAs are valid through 2016 with an option in one of the COAs for one additional year, The existing COAs cover all present sales destinations. In addition to copper concentrate sales, Minera Candelaria has an agreement with Minera del Pacifico to process Candelaria s flotation tailings to produce a magnetite concentrate and this produces an additional source of by-product revenue.

110 Technical Report for the Candelaria Copper Mining Complex, Chile Page Environmental Studies, Permitting, and Social or Community Impact This section documents a review of the environmental and social aspects of the Candelaria and Ojos del Salado operations. The information in this section was compiled from information collected during a site visit carried out on July 7, 2015, or made available by the Candelaria Copper Mining Complex Environmental Studies and Background Information Minera Candelaria officially began operations on March 9, The original project was submitted to a voluntary environmental assessment process, and was approved by resolution ORD. N 817 of June 9, Since 1992, Minera Candelaria has been through a series of environmental assessment processes submitted through Environmental Impact Studies (Estudios de Impacto Ambiental; EIA) and Environmental Impact Declarations (Declaraciones de Impacto Ambiental; DIA). Most recently, in September 2013 an EIA entitled Candelaria Project Operational Continuity (Candelaria 2030) was submitted to Chilean regulatory authorities. The EIA was approved with conditions on July 23, 2015 by the Environmental Evaluation Service (Servicio de Evaluación Ambiental; SEA). At Minera Ojos del Salado, the Alcaparrosa mine obtained its initial environmental approval in 1996, and there have been subsequent amendments. The current permit for the Alcaparrosa mine expires at the end of A query regarding the specific requirements related to acquiring a permit to extend the mine life was submitted to the regulatory authorities in May 2015 and their assessment is ongoing. The Santos mine and the PAC plant began operating before 1994, prior to the development of Chile s modern environmental evaluation system Permitting and Compliance Environmental Approvals Minera Candelaria Since receiving its original environmental permit in 1992, several modifications have been made. The majority of the facilities required for the Candelaria 2030 project were approved on July 23, The main active environmental approvals are presented in Table 34. Other minor changes have been granted by the authorities under a Pertinencia. A Pertinencia is a document submitted to the environmental authorities about whether certain activities do or do not need to be submitted to the Environmental Impact Assessment System (Sistema de Evaluación de Impacto Ambiental; SEIA). In the Pertinencias submitted by the Candelaria Copper Mining Complex, the authorities accepted that the changes do not need to be submitted to the SEIA. The changes and their legal reference are presented in Table 35.

111 Technical Report for the Candelaria Copper Mining Complex, Chile Page 88 Table 34: Minera Candelaria Environmental Approvals (RCAs*) Project Legal Reference* EIA Candelaria project Phase I N 817/1992 EIA Port facilities Punta Padrones N 001/1994 EIA Candelaria project Phase II N 1/1997 DIA Reception and storage of tailings from Compañía Minera Ojos del N 044/1977 Salado DIA Auxiliary fuel tank Candelaria mine N 006/1998 DIA Mixing plan of diesel and used oil N 104/1998 DIA Copper concentrate transport to new destinations N 26/2000 DIA Exploration ramp Candelaria Norte N 084/2001 DIA Candelaria Norte underground project N 094/2003 DIA Modification of the feeding system of tailing dam N 116/2005 DIA Reception and processing mineral from Alcaparrosa mine N 012/2005 DIA Exploration ramp Candelaria Sur N 04/2005 DIA Candelaria Norte underground mine expansion N 175/2007 DIA Optimization pebbles circuit N 106/2007 DIA Water pipeline Chamonate - Candelaria N 273/2008 EIA Candelaria desalination plant N 129/2011 DIA Growth of height La Candelaria tailing dam wall N 74/2012 EIA Candelaria Project operational continuity N 133/2015 * Environmental Approval Resolution (RCA) Table 35: Changes of Candelaria Approved Under Pertinencia Project /Activity Legal Reference Modification of concentrate route Letter N 1088/2011, SEA Atacama Modification of the path of the power line between the mine and the desalinization plant Letter N 1424/2011, SEA Atacama Extension of life of mine Expansion Candelaria Norte underground mine Letter N 911/2012, SEA Atacama In September 2013, an EIA in support of the Candelaria 2030 project was submitted to the SEIA and was approved on July 23, 2015, through the RCA N 133/2015. The review process took 676 calendar days and required four Consolidated Reports of Request for Clarifications, Corrections and Additions (ICSARA), and four Addendas responses by Minera Candelaria. The project was approved with a number of conditions related to additional monitoring activities, and mitigation or compensation measures, mainly for air, water, and biological resources. None of the requested additional measures put at risk the technical or economic feasibility of the operation. One of the most relevant conditions imposed is the gradual reduction of the use of treated water from the Copiapó wastewater treatment plant (175 litres per second), and increase of the utilization of water from the desalination plant. The reduction must be in three stages: a 25% reduction through Year 3 from the start of the Los Diques operation; a 50% reduction from Year 4 to 6; a 75% reduction from Year 7 to 9; and discontinued use of treated wastewater from Year 10 to the end of the mine life. The excess treated water must be discharged into the Copiapó River. The reduction in the use of treated wastewater will be compensated by the planned increased use of the installed capacity of the desalination plant.

112 Technical Report for the Candelaria Copper Mining Complex, Chile Page 89 Ojos del Salado Operation The Minera Ojos del Salado operations include the Santos underground mine, Alcaparrosa underground mine, PAC processing plant, and a tailings pipeline. The PAC processing plant and Santos mine operate according to the former Chilean environmental regulations. They do not have an environmental permit and these facilities have not been changed sufficiently to require a new environmental permit under the current environmental regulations. The Alcaparrosa mine received its original environmental approval in 1996 with subsequent amendments in 1999 and A Pertinencia submitted in 2012 to the environmental authorities to extend the life of the mine to 2015 was approved. A new Pertinencia was submitted in May 5, 2015, for the extension of the life of mine until On May 20, 2015 the authorities requested additional information mainly related to the project s air emissions, extraction rates, and modifications to waste dump N 1. In the event that the authorities do not approve the mine life extension to 2017 via the Pertinencia, the project will need to be submitted to the SEIA for environmental assessment. The permitting documentation (either a DIA or an EIA) can be assembled rapidly but it would not be feasible to obtain environmental approval by the end of If at that time, a new permit is not in place or the extension to the existing permit approved, the Alcaparrosa mine may be faced with temporary closure, in which case stockpiled ore from Candelaria will be used to make up the plant feed difference until a new environmental permit is granted. Ore from the Alcaparrosa mine is shipped to the Candelaria processing plant as approved by resolution granted to Minera Candelaria (RCA No. 012/2005). The PAC processing plant receives ore from the Santos mine, and the tailings are deposited in the Candelaria tailings storage facility. This situation is approved by a resolution granted to Minera Candelaria (RCA No. 048/1997), and the lifetime was extended to 2017 through a Pertinencia granted by Letter N 001/2013. A new environmental approval will be required prior to the end of 2017 to permit the continued delivery of PAC mill tailings to Candelaria through Minera Ojos del Salado, which has been active since 1929, includes a number of old tailings management facilities and smelter slag piles from the old Edwards smelter. These closed facilities were capped or removed and extensively rehabilitated by Minera Ojos del Salado during the 2000s. The environmental permits obtained directly by Minera Ojos del Salado for its facilities are summarized in Table 36.

113 Technical Report for the Candelaria Copper Mining Complex, Chile Page 90 Table 36: Summary of Minera Ojos del Salado Approvals (RCAs*) Project /Facility Description Approval Reference* EIA Alcaparrosa mine 2,500 tonnes per day process in Aguirre Cerda plant N 2/1996 DIA Tailings transport to Candelaria Transport of tailing N 8 to Candelaria N 048/1997 EIA Modification to Alcaparrosa mine Process in Aguirre Cerda plant 725,000 tonnes per year between ,000 1,450,000 tonnes per year between N 6/ ,000 tonnes per year in 2010 DIA Cerro Negro mine exploration 12 boreholes N 002/ 2000 Transport of 4,000 tonnes per day to Candelaria plant (new DIA Modification II Alcaparrosa project road) N 003/2005 DIA Tortolitas mine exploration 10 boreholes N 089/2005 DIA Slag removal/tunnel remediation Environmental management and closure of two abandoned of Edwards smelter facilities (slag deposit and tunnel) from old Edwards smelter N 118/2005 DIA Environmental improvement of six Environmental remediation of six old abandoned tailings N 228/ 2007 tailings dams DIA Mineral transportation between Santos mine and Alcaparrosa mine * Environmental Approval Resolution (RCA) dams Transportation of approximatively 1,400 tonnes per day of ore from Santos to Alcaparrosa N 204/2008 Minera Ojos del Salado obtained other approvals for changes through a Pertinencia. The changes are presented in Table 37. Table 37: Minera Ojos del Salado Changes Approved Under Pertinencia Project/Activity Description Legal Reference Extension until 2017 to the tailing N 8 transport to Tailing transport to Candelaria Letter N 552/2012 Candelaria tailing dam Alcaparrosa mine life extension Extension of mine life for three years, to end of 2015 Letter N 001/ Sectorial Permits In addition to the environmental permits, other mining associated activities require permits that are not covered by environmental regulations, or that include some technical aspects requiring other permits. These additional permits can be required both for construction and operational phases and must be obtained from various public agencies (potentially more than 10 agencies). Currently, Minera Candelaria has all applicable permits in place and, through its environmental management system, keeps a detailed record of the status of each permit and its compliance status. Since 1992, approximately 850 specific permits have been obtained. The proposed Candelaria 2030 project has set in place a program for the preparation and processing of several other sectorial permits. This process has identified about 158 permits that are required. One of the critical permits is the permit from the General Directorate of Water (DGA) for the tailings dam, which is considered a major hydraulic structure. Typically, a new application can take between one and two years to process. Minera Candelaria submitted the application for this permit in November 2014, and it is still under review. Under a conservative scenario, an approval can be expected prior to the end of Meanwhile, construction activities are scheduled to start with works not related to the tailing dam (roads, pre-construction facilities, and studies and activities dealing with environmental commitments).

114 Technical Report for the Candelaria Copper Mining Complex, Chile Page 91 Another relevant DGA permit deals with the modification of the current Candelaria tailings storage facility. The application was submitted on July 29, Others relevant permits are the mining permits, related to the mine exploitation, waste disposal, and the tailings dam. The application for tailings dam permits to the Servicio Nacional de Geología y Minería (SERNAGEOMIN) was submitted in November 2014, and the application for the exploitation method and waste disposal is expected to be submitted by September The updated closure plan for the current operation (with a life of mine through 2017) was submitted in November 2014 and was approved in July A new closure plan needs to be prepared and submitted for the Candelaria 2030 project. This plan is currently in development and approval is required before the start of the project. Minera Ojos del Salado operates with all other applicable permits in place and through its environmental management system keeps a detailed record of each permit and its compliance status. Throughout its life, Minera Ojos del Salado has had to arrange for about 150 specific permits. Any project modifications (such as extending the life of the underground mines) will require obtaining or updating a number of specific sectorial permits Compliance Management Minera Candelaria has received 25 Environmental Approval Resolutions, which set a number of conditions that need to be met. Internal and external audits are monitoring the compliance with respect to all commitments. In addition, the Superintendent of Environment (Supertintendencia de Medio Ambiente; SMA), created in 2011, oversees environmental compliance and has the authority to assign orders or fines if non-compliance issues are identified. In May 2015, Minera Candelaria received from the Superintendent of Environment the Extent Resolution N 1/ROL D , which identified 16 charges against the company for alleged noncompliance with certain conditions set forth in the Environmental Approval Resolutions issued to Minera Candelaria. Eight of the charges were classified as serious and eight as minor. In June 2015, Minera Candelaria submitted to the Superintendent of Environment a Compliance Program, which includes specific actions for some of the charges and challenges certain aspects of others. The charges and their severity, as well as Minera Candelaria s comments and proposed actions, are summarized in Table 38. The SMA rejected the Compliance Program on August 17, In response, on September 1, 2015 Minera Candelaria submitted a descargos, a legal document responding to the charges and presenting evidence that Minera Candelaria is not in violation of its environmental approvals nor of the law with respect to the original 16 charges.. Subject to the outcome of the review of the descargos, the SMA may apply fines, such as the following: Minor infringements: a written warning or fines up to 1,000 annual tax units (UTA), which amounts to approximately US$800,000 Serious infringements: fines up to 5,000 UTA (approximately US$4 million), provisional or definitive closure of facilities, and RCA revocation Extremely serious infringements: fines up to 10,000 UTA (approximately US$8 million), provisional or definitive closure of facilities, and RCA revocation

115 Technical Report for the Candelaria Copper Mining Complex, Chile Page 92 In spite of the serious classification assigned by the SMA to eight of the charges, it is SRK s opinion that none of the non-compliances have caused serious environmental impacts, and most of them can be managed through the activities required as part of the Candelaria 2030 project. Minera Candelaria is addressing these non-compliances with the authorities and it is possible that fines, if any, will be significantly below the maximum allowable fine limits. SRK believes that the fines, if any, will not be material to the company. Table 38: Charges to Minera Candelaria from the Superintendent of Environment N Charge Severity Minera Candelaria Minera Candelaria Comments* Action Plan 1 Disposal of liquid effluent in a non-authorized beach from the desalinization plant. Serious This was a specific situation during the start-up phase of the plant, which coincided with the inspection by the SMA. This situation has already been resolved. Inform SMA of the canalization and venting works developed. Cleaning any waste left in the beach Installation of a flow meter for the water impulsion between the Bodega area and the mine area in a place different from the authorized. Unauthorized deposition of tailings from Minera Ojos del Salado, considering that the operation does not have a mechanism to quantify the tailings deposited in the facility. Insufficient use of irrigation measures to prevent dust emissions in the discharge area of the waste dumps and on public roads used for concentrate transportation. In the blasting activities, there are dry explosions and not wet as committed. Non application of bischofite on the tailings freeboard and on roads. Has not performed conservation activities on the C-397 route, as committed. Disposal of waste tires in a non-authorized place (in the waste dumps). Minor Minor Serious Serious Serious Serious Minor The flow meter was not in the specified point (before TK-30 tank) because that point does not comply with the objective of measuring the flow at the output of Aguas Chañar and the input to Candelaria so potential leaks can be detected. There are two flow meters in the tailing pipeline from Ojos del Salado, one at the output of the pumping station and one before the discharge to the Candelaria tailing facility. The flow rate is 4,000 tonnes per day, as authorized. The system is controlled in the Ojos del Salado control room. There are dust control measures. However, currently there is no comprehensive wetting plan, but one has been included in the 2030 Candelaria project. During the fragmentation, the stage before blasting, water is added. So, water is added at the stage where it is technically possible to do so. At the date of the SMA inspection, the raising to elevation 800 m was not completed. Candelaria does maintenance activities on Route C-397 and Route 5 in the 12- kilometre access to the complex. An updated plan will be delivered. The Candelaria 2030 project included a specific plan for the disposal of the waste tires. Install a flow meter at the inlet to tank TK-30. Candelaria will implement a register system in the Candelaria Copper Mining Complex. The system will be controlled also in the Candelaria control room. To implement a wetting plan (included in the Candelaria 2030 project). Use water in fragmentation and report and record water used. Send tailing construction program to SMA. Put bischofite in the tailing construction phase. Put bischofite in the tailing freeboard, according to the construction program. Develop a maintenance plan of Route C-397 during the Candelaria mine life. Generate a record of the waste tires disposed of already. Do not dispose more waste tires in the places authorized by SERNAGEOMIN until the health sectorial approval.

116 Technical Report for the Candelaria Copper Mining Complex, Chile Page 93 N Charge Severity 9 Has not installed a beacon at the junction of Route C-397 with Route 5. Minor Does not measure sulfates and 10 aluminum in the monitoring of Serious settleable dust, as committed. Does not have the permit to 11 capture protected species Minor (reptiles). The last slope of the North waste dump does not comply with the minimum distance 12 Minor from the cemetery wall, as committed in RCA N 1/1997 (60 metres). The route for the pipeline Chamonante - Candelaria is 13 different than the one Serious authorized under RCA N 273/2008. Has not reduced the consumption of fresh water considering the increasing 14 recirculation of water from the Minor tailings dam and the insertion of desalinated water to the system Constructed the power line in a different path from the authorized one. Project facilities in the pit and Nantoco waste dump areas use an area bigger than the one authorized. Serious Minor Minera Candelaria Comments* The beacon remained for several years. However, because of the crossing improvements made by the road authority, the beacon was not justified. The parameters were identified in relevant documents approved by the various agencies. The capture and rescue of reptiles was not carried out, which was reported to the competent authorities. There is no commitment in the RCA N 1/1997 or in other documents specifying a distance between the North waste dump and the cemetery. The different layout runs inside the industrial area, as described in the documentation contained in the Candelaria 2030 project submission. Candelaria has reduced water consumption from wells. Current extraction from wells is for the supply of the local population (115 l/s). The path of the power line is the one modified through the Addenda N 1 of the evaluation process related to RCA N 129/11. The path was modified as requested by the authority in order to not affect the Bahia Inglesa Paleontological Formation. The current waste dump area is covered under the mining approval, but it is outside the boundaries of the approved environmental area. The pit area is bigger that the environmental approval, but will be authorized under the Candelaria 2030 project. Minera Candelaria Action Plan The beacon will be installed and will operate at the night. Include sulfates and aluminum in the monthly monitoring. A technical report justifying the situation will be delivered. A topographic survey will be developed that will show the distance. If the distance is less that the legal requirements, the waste dump would be modified. Obtain approval of the Candelaria 2030 project. Deliver a technical report containing the historical reductions of fresh water consumption for Candelaria. Deliver a technical report with the real power line layout and the approved layout. Report current conditions of Nantoco waste dump. The pit area will be in regulation with the approval of the Candelaria 2030 project. * Comments related to the explanation provided by Minera Candelaria in the Compliment Program submitted to the Superintendent of Environment. ( Programa de Cumplimiento Minera Candelaria, June 2015)

117 Technical Report for the Candelaria Copper Mining Complex, Chile Page Environment Management The Candelaria Copper Mining Complex is located near the town of Tierra Amarilla and near an agriculture area of the Copiapó valley. In this region mining activities coexist with residential and agricultural uses. The Copiapó River Basin has significant shortages of groundwater resources and aquifer levels have decreased due to water extraction for agricultural, industrial, and domestic uses. The Copiapó valley is characterized by a normal desert climate in its medium section and coastal desert in its lower section. The Tierra Amarilla area has an average annual temperature of 17 degrees Celsius, an average relative humidity of 60 percent, and an annual rainfall of 17 millimetres. In the coastal area, Caldera has an average annual temperature of 15 degrees Celsius, an average relative humidity of 82 percent, and an annual rainfall of 6 millimetres. The mining operations are located in the lower portion of the El Bronce and El Buitre sub-basins. Both sub-basins are oriented east-west, and drain towards the Copiapó River Key Environmental Issues The key environmental management issues facing the Candelaria Copper Mining Complex are related to the specific sensitivities of the region. Water supply Taking in consideration the sensitivities of water resources in the Copiapo basin, the Candelaria Copper Mining Complex has a water resource optimization plan for its operations. Since 2013, the operations have eliminated use of groundwater for process water. The main source of water is now desalinated seawater and water from the Aguas Chañar wastewater treatment plant. Water from groundwater wells remains available in case of emergency and maintenance and for the supply of potable water. As stated previously, one of the commitments of the Candelaria 2030 project (RCA N 133/2015) is the gradual phase out of the use of water from the wastewater treatment plant, in approximately ten years when the operations will depend only on water from the desalinization plant. Water quality Water quality management and control of potential leaks from the mining facilities is an important issue in the environmental management of the operations. The current Candelaria tailings storage facility and the proposed new Los Diques tailings storage facility have been designed to minimize water losses and maximize water reuse in the processing plant. For the proposed Los Diques tailings facility, hydrogeological studies indicate that seepage flows will be low and will flow towards the current open pit mine, which will act as a sink. Preferential infiltration flows occur toward the pit, at depths greater than 500 metres below the surface, deeper than the depth of the Copiapó aquifer in the area, which is located at a depth between 40 and 120 metres. The project is located in a dry arid region. Geochemical studies completed to date indicate a low risk for acid rock drainage. Despite this, during the review of the proposed Candelaria 2030 project, the authorities raised concerns about the potential seepage from the tailings and a potential impact on the

118 Technical Report for the Candelaria Copper Mining Complex, Chile Page 95 Copiapó River Basin. In this regards, one of the commitments from the Candelaria 2030 approval (RCA N 133/2015) is that if water is present in any of the wells of the Los Bronces drainage (P1 and PP2 monitoring wells), Minera Candelaria must proceed immediately with the hydrogeological isolation of the Los Bronces sub-basin from the Copiapó area aquifer system, by a mechanism that will require an agreement from the environmental authorities. Air quality The Candelaria Copper Mining Complex operates close to populated areas where agriculture is a significant land use along with a number of other mining operations. Air quality is a relevant environmental issue. In their comments on the Candelaria 2030 project, the authorities pointed out that the area is technically saturated for breathable particulate matter (PM 10 and PM 2.5), although there is no official statement on this. In this context, the Candelaria Copper Mining Complex utilizes a series of measures to control dust emissions, including a road wetting plan, nebulizers on stockpiles, crusher dust collectors, and internal monitoring of emission control. Dust emissions have also been a major topic of discussion in the Candelaria 2030 environmental approval process. The approval of the Candelaria 2030 project added a number of additional measures. Monitoring Program Since 1993 a monitoring program has been in place to identify any changes or modifications with respect to the environmental baseline data. The results are periodically sent to the responsible government authorities. The monitoring program includes groundwater quality and levels, dust, noise and vibration, and marine parameters, among others. A summary of the current monitoring program is provided in Table Environmental Management System The environmental management system of the Candelaria Copper Mining Complex is certified under ISO and the health and safety management system under OSHAS standards. Since the acquisition by Lundin, the operations have been integrated into Lundin s sustainability practices, the targets and commitments of which address occupational health and safety, environmental performance, sustainability policy and management systems, water management, energy and greenhouse gas management, mineral waste management, mine closure, biodiversity management, and stakeholder engagement. The approval of the Candelaria 2030 project (RCA N 133/2015) has added additional monitoring conditions.

119 Technical Report for the Candelaria Copper Mining Complex, Chile Page 96 Table 39: Environmental Monitoring Program Item Parameter Frequency Area Air Quality / Meteorology Noise and Vibrations Water Marine Area Desalination Plant Marine Area Punta Padrones Port Piedra Colgada Wetland PM 10, and PM 2, 5 (particular matter less than 10 microns) Settleable dust (TDS) and Fe, Cu; As and SiO 2 composition Wind velocity and direction Every three days Monthly Continuous Evaporation from tailing dam (l/s) Continuous Mine Tierra Amarilla Caldera Nantoco Candelaria mine Punta Padrones Nantoco Candelaria mine Caldera Punta Padrones NPS Annual Tierra Amarilla Caldera Vertical acceleration Annual Tierra Amarilla Mine area/el Bronce drainage Phreatic levels Monthly Tierra Amarilla Paipote Underground water quality Biannual and annual, depending on parameter Recirculated water quality Biannual and annual Mine Drinking water quality Monthly Port Fresh water consumption, water from sewage plant, desalinated water, and recirculated water (m 3 ) Oceanographic parameters in sea water column Metals and granulometry in sediments Seawater communities Plankton communities Fish fauna Water quality in brine discharge Metals, temperature, salinity, dissolve oxygen in sea water column; metals and granulometry in sediments Seawater communities Physical, biological, hydro biological characteristics Monthly Biannual Depending on production of desalinated water Biannual Biannual Aquifer 4 area Mine area/el Bronce drainage Tierra Amarilla Paipote Aquifer 4 area Mine Punta Padrones Punta Padrones Copiapó River mouth

120 Technical Report for the Candelaria Copper Mining Complex, Chile Page Closure Closure of mine sites and installations in Chile has been recently regulated by Law /2011 and Supreme Decree N 41/2012. Law No regulates the closure of mining works. It establishes that mining projects must submit for approval to SERNAGEOMIN a mining closure plan prepared in accordance with the corresponding RCA. The objective of the closure plan should be to mitigate the effects caused by the mining activities, according to the environmental regulations. The closure plan has to be approved by SERNAGEOMIN before starting the exploration, exploitation by mining activities or the operation of processing facilities. Additionally, mining projects with an extraction capacity of over 10,000 tonnes per month must provide a financial guarantee, the amount of which will be determined based on the periodic re-evaluation of the closure plan implementation and management costs. The mine closure plan is part of the mine life cycle and, thus, should be implemented gradually during the various stages of the mining operation so that at the end of the mine life, the closure measures have been fully implemented in a way that complies with the law. The implementation of the regulation is different for new and existing operations. For new mining operations, closure plans should be submitted at the start of the project and must be updated continuously (at least once every five years) until the end of operations. For existing operations, the regulation provides transition measures to re-evaluate mine closure plans prepared under the previous Mine Safety Act. The complete re-evaluation had to be submitted to SERNAGEOMIN by November 11, 2014, and the guarantee must be in place six months and one day from the approval of the closure plan. In relation to the Chilean mine closure legislation, the status of the Minera Candelaria closure plan is: The re-evaluation of the closure plan was submitted in November 2014 and approved by SERNAGEOMIN through Resolution No issued in July Estimated closure costs are US$ 42.4 million including direct costs (US$ 24.0 million), indirect cost (US$9.2 million), contingencies (US$8.0 million), and post-closure costs (US$1.2 million). The closure of the processing plant represents 57 percent of the direct costs. Minera Candelaria has one year from July 2015 to provide at least 20 percent of the present value of the closure costs. The approved closure plan does not include the project s modification under the Candelaria 2030 project. An updated closure plan must be submitted. The approval of the closure plan is required for the start of the new project. This plan is currently in development, and includes the old San Esteban tailing facility. The status for the Minera Ojos del Salado closure plan is: The updated closure plan, including closure cost estimates, was approved by SERNAGEOMIN on May 16, 2014 through Resolution No 394 issued in May Estimated closure costs are US$7.9 million including direct costs (US$3.9 million), indirect cost (US$ 1.4 million), contingencies (US$2.0 million), and post-closure costs (US$0.6 million). The closure of the PAC processing plant represents 52 percent of the direct costs.

121 Technical Report for the Candelaria Copper Mining Complex, Chile Page 98 Minera Ojos del Salado should have provisioned 20 percent of the financial guarantee. Any extension to the Alcaparrosa mine s life will require the update of the closure plan. The legacy abandoned facilities (old tailings and slag deposit) have already been closed and remediated Social and Communities The Candelaria Copper Mining Complex is located a short distance from the village of Tierra Amarilla. The proximity of Tierra Amarilla to the mine s major facilities (open pit mine, waste dumps, plant, tailings, roads, etc.) results in potential impacts from noise, dust, visual intrusion, blasting, and vehicular traffic. Also, the town of Caldera is close to the port and desalination plant and the potential impacts are primarily associated with the transport of concentrate. Other smaller towns, among which there are indigenous communities (Collas), are related to the project by the linear paths (for power lines, water pipelines) and concentrate transportation. Within the last two years, the local community of Tierra Amarilla has made claims against the Candelaria Copper Mining Complex expressing a number of social investment and legacy environmental concerns in the town, which has been surrounded by extensive mining activity by multiple different companies for many decades. Minera Candelaria and Minera Ojos del Salado are committed to a long term, multi-staged social investment program, the details of which are being finalized with the community of Tierra Amarilla. This program is part of a larger plan focussed on the communities in Atacama Region III affected by the Candelaria operations, including Nantoco, Tierra Amarilla, Paipote, Copiapo, Chamonate and Caldera. The town of Tierra Amarilla is designated as the Primary Impacted Community. Initially, use of community investment funds will include the March 2015 flood disaster relief initiative, which included housing and infrastructure reconstruction support and land donations. In the medium and longer term, it is anticipated that programs will be funded by the mining operations and managed by a multi-party board that will consider projects for environmental reclamation, small business support, municipal infrastructure and equipment and community services (includes health care, education, and vocational training) Since Lundin acquired the Candelaria Copper Mining Complex in November 2014, Minera Candelaria and Minera Ojos del Salado have implemented a series of improvements to the social and community investments. The most relevant investments are the following: Continued support of the Productive Development Fund for Artisanal Fisheries in Caldera, which aims to respond to the priority needs of the fishermen organizations through the implementation of a sustainable project with a local identity that will improve their quality of life in the long term. The fund offers to these organizations, for a period of three years, funding through projects related to the development of production, housing, healthcare, and education. Repair and improvements of the technical secondary school and workshop in Tierra Amarilla, from which more than 300 students and their teachers will benefit. Continuation and further development of the Candelaria Community Office in Tierra Amarilla to provide a forum for interaction with members of the community. The space also offers the community an information centre, along with ten computers with free internet access, document printing facilities, and technological skills training workshops. Implementation of a grievance mechanism. Implementation of a formal stakeholder engagement process.

122 Technical Report for the Candelaria Copper Mining Complex, Chile Page Capital and Operating Costs 20.1 Operating Costs The forecast operating costs for the next four years at Minera Candelaria and Minera Ojos del Salado are shown in Table 40. Total Candelaria unit costs are expected to remain reasonably static over the next four years. Unit costs have fallen from recent levels as a result of cheaper diesel, energy and consumables prices, efficiency initiatives particularly in the open pit mine, lower overhead costs, and the weaker Chilean peso against the US dollar (1 US Dollar equals US$625 Chilean Pesos). At the Ojos del Salado operations, unit operating costs are forecast to drop for the same reasons, while the extended mine lives now continue to Table 40: Actual and Forecast Unit Operating Costs Candelaria Unit Average Mining cost - OP US$/t mined Mining cost - UG US$/t mined Processing cost US$/t milled G&A cost US$/t milled Total Unit Cost US$/t milled Ojos del Salado Mining cost US$/t mined Processing cost US$/t milled G&A cost US$/t milled Total Unit Cost US$/t milled The following sections present a breakdown of the mining, processing, and general and administrative operating costs Mining Operating Costs Table 41 presents a breakdown of the forecast Candelaria open pit mining costs. The average open pit mining cost over the next four years, including capitalized waste stripping is forecast to be US$2.80 per tonne of material moved, with annual fluctuations as result of changing haul depths and lengths associated with the various mining phases as well as changes in the quantity of material mined. Costs have reduced recently with lower fuel and consumables prices and the effect of the weaker Chilean peso. The biggest elements of the open pit mining cost comprise supplies (explosives, drill tools, tires, maintenance supplies, etc.) with approximately 40 percent and energy (diesel fuel and electricity) at 25 percent. The total costs presented in Table 41 include the costs for both ore production and waste stripping with the latest phasing of the open pit resulting in less waste stripping in the next four years than previous mine plans.

123 Technical Report for the Candelaria Copper Mining Complex, Chile Page 100 Table 41: Forecast of Candelaria Open Pit Mining Costs Candelaria Mining Cost - Open Pit Unit Average Unit Cost Labour US$/t mined Contractors US$/t mined Supplies US$/t mined Energy US$/t mined Other US$/t mined Total Unit Cost US$/t mined Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M Capitalized Waste Stripping US$M Total Cost Excluding Capitalized Waste US$M Total Unit Cost Excluding Waste Stripping US$/t mined Table 41 also shows the effect on the open pit operating cost with the removal of waste stripping costs that are capitalised. Lundin capitalizes waste stripping costs when experienced strip ratios are above the average planned strip ratio for each open pit phase under development. Between 2016 and 2019, the removal of capitalised waste stripping costs reduces the average unit cost of material mined to US$1.40/t. The forecast operating costs of the Candelaria underground mine operations, Candelaria Norte, are presented in Table 42. The average forecast underground mining cost over the next four years at Candelaria Norte is US$20.90 per tonne. The Candelaria Norte underground mine is operated by a contractor on a unit rate contract and costs therefore remain fairly constant on a year by year basis with the significantly increased mine life. Table 42: Forecast of Operating Cost for Candelaria Underground Operations Candelaria Mining Cost - UG Unit Average Unit Cost Labour US$/t Contractors US$/t Supplies US$/t Energy US$/t Other US$/t Total Unit Cost US$/t Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M

124 Technical Report for the Candelaria Copper Mining Complex, Chile Page 101 The forecast costs of the Ojos del Salado underground mine operations, Santos and Alcaparrosa, are shown in Table 43. The forecast average Ojos del Salado unit underground mining cost over the next four years is approximately US$20.60 per tonne. Both the Santos and Alcaparrosa mines are operated by a common contractor on unit rate contracts, and these contract costs make up over 80 percent of the total mining costs. The mine lives for both of these mines has now been extended by exploration success to Table 43: Forecast of Operating Cost for Ojos del Salado Underground Operations Ojos del Salado Average Unit Mining Cost Unit Cost Labour US$/t Contractors US$/t Supplies US$/t Energy US$/t Other US$/t Total Unit Cost US$/t Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M Processing Operating Costs A breakdown of the forecast Candelaria processing costs, which includes primary crushing and conveying, the conventional flotation plant, and water supply, are shown in Table 44. Table 44: Forecast of Candelaria Processing Cost Candelaria Processing Cost Unit Average Unit Cost Labour US$/t Contractors US$/t Supplies US$/t Energy US$/t Other US$/t Total Unit Cost US$/t Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M * The negative values under Other refer to the forecast cost of treating ore from the Alcaparrosa underground mine which is undertaken to the Candelaria plant, while the costs are allocated to Ojos del Salado.

125 Technical Report for the Candelaria Copper Mining Complex, Chile Page 102 The forecast average unit processing cost in Candelaria over the next four years is US$8.00 per tonne, with the varying unit costs year on year largely influenced by changes in throughput (as a result of ore hardness) and the treatment of stockpiled material. The biggest elements of the processing costs comprise electrical energy at approximately 42 percent and operating supplies (grinding media, reagents, maintenance spares etc.) at circa 37 percent. The cost of both energy and key consumables has fallen recently and this coupled with the weaker Chilean peso has resulted in significantly lower processing costs over the next four years. The forecast processing costs for the next four years for Ojos del Salado are presented in Table 45. The average processing cost for Ojos del Salado over the next four years is US$10.20 per tonne. This is a combination of the costs for treating the Santos ore at the PAC plant and the Alcaparrosa ore at the Candelaria plant. The PAC plant is smaller than the main Candelaria plant and has higher operating costs that average approximately US$15.00 per tonne. Energy and supplies again make up the largest cost element, although given the significantly smaller scale of the plant, labour and contractor costs are proportionately larger. Overall, costs at this plant have fallen for the same reason as the main Candelaria plant. Table 45: Forecast of Ojos del Salado Processing Cost Ojos del Salado Processing Cost Unit Average Unit Cost Labour US$/t Contractors US$/t Supplies US$/t Energy US$/t Other US$/t Total Unit Cost US$/t Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M

126 Technical Report for the Candelaria Copper Mining Complex, Chile Page General and Administrative Costs A breakdown of the forecast general and administration (G&A) costs for Candelaria is shown in Table 46. Table 46: Forecast of Candelaria General and Administration Cost Candelaria G&A Cost Unit Average Unit Cost Labour US$/t Contractors US$/t Supplies US$/t Energy US$/t Other US$/t Total Unit Cost US$/t Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M The forecast average unit G&A cost in Candelaria over the next four years is US$1.80 per tonne. G&A costs have fallen from previous costs estimates as a result of cost saving and efficiency initiatives, lower and simplified overheads and the weaker Chilean peso. G&A costs are mainly fixed and therefore the cost per tonne variations reflect changes in throughput. Total costs over the period range between US$40 and US$56 million. The forecast G&A costs at the Ojos del Salado mines are summarized in Table 47. Table 47: Forecast of Ojos del Salado General and Administration Cost Ojos del Salado G&A Cost Unit Average Unit Cost Labour US$/t Contractors US$/t Supplies US$/t Energy US$/t Other US$/t Total Unit Cost US$/t Total Cost Labour US$M Contractors US$M Supplies US$M Energy US$M Other US$M Total Cost US$M The forecast average unit G&A cost at Ojos del Salado over the next four is US$2.10 per tonne.

127 Technical Report for the Candelaria Copper Mining Complex, Chile Page C1 Cash Costs The forecast 2016 C1 cash operating cost for the combined Candelaria Copper Mining Complex is US$1.58 per pound of copper net of by-product credits and the effect of the Franco-Nevada gold and silver streaming agreement and the forecast C1 cash cost for the following three years are shown below in Table 48. Coincident with Lundin s acquisition of the Candelaria Copper Mining Complex, the company entered into a definitive agreement with Franco-Nevada (Barbados) Corporation, a subsidiary of Franco-Nevada to sell to Franco-Nevada a gold and silver stream from Candelaria in exchange for an upfront deposit of US$648 million payable at closing. Under the agreement, Franco-Nevada acquired 68 percent of the gold and silver production from Candelaria until 720 kilo ounces of gold and 12 million ounces of silver have been delivered. Thereafter, Franco-Nevada will be entitled to receive 40 percent of the gold and silver production from Candelaria. In addition to the upfront deposit, for each ounce of gold and silver delivered, Franco-Nevada will make ongoing payments equal to the lesser of (1) the prevailing market prices and (2) US$400 per ounce gold and US$4.00 per ounce silver. The ongoing payments for gold and silver will be subject to a 1 percent inflationary adjustment, beginning three years after the closing of the acquisition. It should be noted that the agreement with Franco-Nevada is with a separate wholly-owned subsidiary of Lundin and it is not an encumbrance or obligation on either Minera Candelaria or Minera Ojos del Salado. The effect of the agreement is reflected in the C1 cash costs below to allow an assessment of the economic impact to Lundin. Life of mine C1 cash costs are forecast to be US$1.54 per pound of copper net of by-product credits and the Franco-Nevada gold and silver streaming agreement. Fluctuations in the cash cost are largely driven by the changes in the copper head grade in the open pit, and hence copper metal production, over the life of mine. Table 48: C1 Copper Cash Costs* Unit LoM 2019 Average Minera Candelaria US$/lb Cu Minera Ojos del Salado US$/lb Cu Candelaria Copper Mining Complex US$/lb Cu * Net of By-Projects and Effect of the Franco-Nevada Stream Agreement. The C1 cash cost represents the cash cost incurred at each processing stage, from mining through to recoverable metal delivered to market, less net by-product credits

128 Technical Report for the Candelaria Copper Mining Complex, Chile Page Capital Costs The forecast Candelaria capital investment plan for the 10-year period from 2016 to 2024 is summarized in Table 49. Table 49: Forecast Capital Investment Plan for Minera Candelaria Candelaria Capital Costs Unit Mine US$M Mill US$M Tailings US$M G&A US$M Total US$M Capitalized Waste US$M Total Cost US$M As shown, total capital expenditures excluding waste stripping over the period 2016 to 2019 are forecast at US$459.5 million and from 2020 to 2024 at US$298.2 million. The main capital project at Candelaria is the construction of the new Los Diques tailings storage facility, which is scheduled to start in 2015 and is expected to be ready to receive its first tailings in early The forecast capital for this project includes the cost of detailed engineering, the construction of the initial starter dam, and the associated tailings distribution, seepage water collection, relocation of site infrastructure (e.g., road and power lines), and return pumping systems. From 2019, when the dam enters regular use, the capital cost includes conventional raises to the dam and extensions to the distribution systems. The mine capital costs comprise typical sustaining capital items for a mature open pit mine the cost of which decreases as the mine approaches the end of its life. These sustaining items include primarily the continuation of a well-established mine equipment rebuild programme on major rope shovels and haul trucks as well as other mine equipment replacement. Capital expenditure in the Candelaria Norte underground mine is also forecast on items such as power distribution and ventilation infrastructure for the extended mine life. Mill capital costs include sustaining items such as upgrades to the control systems and equipment replacements in the Candelaria processing plant. G&A costs include the final lift to the existing tailings dam as well as a number of environmental and local community initiatives. Lundin capitalizes waste stripping costs when experienced strip ratios are above the average planned strip ratio for each open pit phase under development. During the production phase of the Candelaria open pit mine, waste stripping costs, which provide probable future economic benefits and improved access to the orebody are capitalized to mineral properties. Capitalized waste stripping from the open pit is forecast to be US$436 million for the period 2016 to 2019, and US$470 million between 2020 and 2024 (Table 49). The forecast capital expenditure estimate for the two contractor operated Ojos del Salado mines over the next four years totals US$2.6 million, as it can be seen in Table 50.

129 Technical Report for the Candelaria Copper Mining Complex, Chile Page 106 Table 50: Forecast Capital Investment Plan for Minera Ojos del Salado Ojos del Salado Capital Costs Unit Mine US$M Mill US$M Tailings US$M G&A US$M Total Cost US$M

130 Technical Report for the Candelaria Copper Mining Complex, Chile Page Economic Analysis Producing issuers may exclude the information required under Economic Analysis (Item 22 of Form F1) for technical reports on properties currently in production unless the technical report includes a material expansion of current production.

131 Technical Report for the Candelaria Copper Mining Complex, Chile Page Adjacent Properties There are no adjacent properties that are relevant to the purpose of this technical report.

132 Technical Report for the Candelaria Copper Mining Complex, Chile Page Other Relevant Data and Information There is no other relevant data available about the Candelaria Copper Mining Complex.

133 Technical Report for the Candelaria Copper Mining Complex, Chile Page Interpretation and Conclusions The Candelaria Copper Mining Complex is a world class copper mining operation with a long life potential. In 2014 the two operations combined payable metal was 155 kilotonnes of copper and 87,000 ounces of gold. Based on the June 30, 2015 Mineral Reserves, the projects are expected to continue operations until Aggressive ongoing resource expansion exploration, however, has the potential to extend the mine life beyond 2032 and further change the projected copper production profile by replacing low grade open pit and stockpile mill feed with higher grade ore extracted from the expanding underground mines and defer depletion of the low grade stockpiles. In November 2014, Lundin acquired Freeport s 80 percent interest in the Candelaria Copper Mining Complex. As part of the acquisition process, a team of independent consultants under the leadership of SRK prepared an initial technical report pursuant to National Instrument The technical report was filed on October 6, A team of independent consultants returned to the Candelaria Copper Mining Complex from July 6 to 10, 2015 to review changes to the assets since June The technical information about the Candelaria Copper Mining Complex is extensive and attests to the overall high quality of the exploration, mine planning, and design work completed by site personnel, as is expected from such an asset. SRK examined the exploration, geology, Mineral Resource modelling, mine designs, Mineral Reserve estimates, processing, and environmental aspects of the Candelaria Copper Mining Complex. The purpose of the investigation was to confirm that the Mineral Resource and Mineral Reserve estimates prepared by mine personnel were prepared in compliance with generally recognized industry best practices and can be reported according to Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (May 2014). The Mineral Resources and Mineral Reserves are distributed in one open pit mine and three separate underground mines. The resource models include 18 distinct block models and mine designs. SRK audited a representative sample of the various block models and mine designs. For those models, SRK was able to replicate the tabulations prepared by mine personnel within rounding errors. On the basis of the results from the audit sample, SRK concludes that the Mineral Resources and Mineral Reserves Statements for the Candelaria Copper Mining Complex as of June 30, 2015 are appropriately categorized and free of material errors. Financial information examined during the SRK investigations confirm that the Mineral Reserves are economic under the assumptions considered. SRK draws the following conclusions: The Candelaria Copper Mining Complex is world class mining operations with a long life potential. Aggressive exploration conducted since 2010 has increased the Mineral Reserves of the assets and allows extending the life of mine by three years to Mineral Reserves are estimated using a copper price of US$2.75 per pound and a gold price of US$1,000 per ounce. A new tailings storage facility is required to support the current life of mine plan. The environmental impact assessment submitted in 2013 under the name Candelaria

134 Technical Report for the Candelaria Copper Mining Complex, Chile Page 111 Project Operational Continuity, which includes the new Los Diques tailings facility, was approved on July 23, Delay in the construction of the new tailings facility could curtail production. However, contingency plans exist (freeboard reduction and dam raise) to extend the life of the existing tailings facility and mitigate construction delays. The mines have their own state of the art export port facility at Punta Padrones with significant excess capacity. The successful commissioning in 2013 of the desalination plant (capacity of 500 litres per second) at the Punta Padrones port site has greatly increased the water supply security of the mines and has greatly reduced their reliance on sensitive local ground water supplies. Ongoing aggressive exploration has defined new Mineral Resources and Mineral Reserves in the underground mines, significantly extending their lives. Further exploration success has the potential to extend their lives further and potentially allow increasing their throughput. This will improve the copper production profile by replacing low grade open pit and stockpile mill feed with higher grade underground ore and will defer stockpile depletion. The proposed aggressive exploration program (US$119 million to 2018) could result in further Mineral Resource and Mineral Reserve expansions if implemented. Recent exploration in other parts of the large properties has identified several other exploration targets, with good potential for identifying new IOCG sulphide deposits in this exceptional IOCG deposit district. Exploration has been successful in extending the life of the Candelaria Copper Mining Complex to at least This success, coupled with the potential for further discoveries, has the potential to extend the life of the mining complex further, but will require modifications to the existing permits. The environmental permit for the Alcaparrosa mine expires at the end of 2015, unless a permit application to extend the mine life is submitted in There is a risk that the Alcaparrosa mine could be forced to close temporarily at the end of 2015 until the extension is approved. The environmental permit for the Alcaparrosa mine expires at the end of Minera Ojos del Salado has applied for an extension of the existing permits to continue to operate Alcaparrosa. If by the end of 2015, a new permit is not in place, the Alcaparrosa mine may be faced with temporary closure and in which case stockpiled ore from Candelaria will be used to make up the plant feed difference until a new environmental permit is granted. In May 2015, Minera Candelaria received from the Superintendent of Environment notification of 16 environmental non-compliance charges, eight of which were classified as serious. A compliance program submitted in June 2015 was rejected in July There is a risk that Minera Candelaria could receive fines for the non-compliances. SRK is of the opinion, however, that none of the non-compliances have caused serious environmental impacts, and that most can be managed through the activities required as part of the Candelaria 2030 project. SRK believes that the fines, if any, will not be material to the company. Other than disclosed in this technical report, SRK is not aware of any other significant risks and uncertainties that could reasonably be expected to affect the reliability or confidence in the Mineral Resource and Mineral Reserve estimates prepared for the Candelaria Copper Mining Complex.

135 Technical Report for the Candelaria Copper Mining Complex, Chile Page Recommendations The Candelaria Copper Mining Complex comprises several operating copper mines with a combined life of mine projected to 2032 with the depletion of the Mineral Reserves disclosed herein. Since 2010, aggressive exploration has defined several new sulphide mineralization zones amenable to underground mining. These significant discoveries have a positive impact on the life and value of the Candelaria Copper Mining Complex by replacing low grade open pit and stockpile plant feed with higher grade underground ore, thereby deferring processing low grade work-in-progress stockpiles to a later date. The increase in underground Mineral Reserves also allows increasing the throughput of the underground mines. In this context, SRK strongly recommends that if market conditions allow for discretionary expenditures on exploration, Lundin continues the implementation of the exploration program proposed to Furthermore, the rapid modelling of the Mineral Resources discovered by exploration should continue to allow the conversion to underground Mineral Reserves and updating of the life of mine plan to allow timely permitting. The recent exploration discoveries at depth highlight the good exploration potential for the discovery of new sulphide deposits elsewhere on the large exploration properties controlled by the Candelaria Copper Mining Complex. In this context, the work on regional exploration targeting should continue, including the use of high resolution geophysical data. Presently, the three underground mines are not interconnected. Conceptual plans envision connecting the Minera Ojos del Salado underground mines with Candelaria Norte with access to the new Susana and Damiana sulphide zones. This interconnection would greatly facilitate material movement and provide additional access for deep exploration. SRK is of the opinion that this proposed interconnection has merit and should be studied further.

136 Technical Report for the Candelaria Copper Mining Complex, Chile Page References AMEC International Ingeniería y Construcción Limitada (AMEC), 2013a: Estimation of useful life of Minera Candelaria. Nr. M40210-FO-00-RPT-001. Freeport-McMoRan Copper & Gold Inc., Project No. M40210, Compañia Contractual Minera Ojos del Salado. Issued: Dec. 9, AMEC International Ingeniería y Construcción Limitada (AMEC), 2013b: Estimation of useful life of Minera Ojos del Salado. Freeport-McMoRan Copper & Gold Inc., Project No. M40231, Compañia Contractual Minera Ojos del Salado (LOM 2013). Issued: Nov. 27, Arevalo, C., Grocott, J., Martin, W., Pringle, M., Tayler, G., 2006: Structural Setting of the Candelaria Fe Oxide Cu-Au Deposit, Chilean Andes (27 30 S), Economic Geology, 101, p Chlumsky, Armbrust and Meyer, LLC (CAM), 2012: Resource and Reserve Verification, Candelaria Project, Copiapó, Chile. Report prepared for Freeport-McMoRan Inc. on Feb. 3 rd, Dallmeyer, D., Brown, M., Grocott, J., Taylor, G.K., and Treloar, P., 1996: Mesozoic magmatic and tectonic events within the Andean plate boundary zone, 26º-27º 30', North Chile: Constraints from 40Ar/39Ar mineral ages: Journal of Geology, v. 104, p Freeport-McMoRan (FMMR), 2014a: Candelaria & Ojos del Salado Overview, Exploration Review, March 2014 Presentation. Freeport-McMoRan (FMMR), 2014b: Mine Candelaria, Geology Superintendence, June 2014 Presentation. Marschik, R., and Fontbote, L., 2001: The Candelaria-Punta del Cobre Iron Oxide Cu-Au(-Zn-Ag) Deposits, Chile, Economic Geology, 96, p Laznicka, P., 2010: Giant Metallic Deposits: Future Sources of Industrial Minerals, Springer, 2 nd edition, p Richards, J.P., and Mumin, A.H., 2013: Magmatic-hydrothermal processes within an evolving Earth: Iron oxide-copper-gold and porphyry Cu ± Mo ± Au deposits, Geology, 41, p Sillitoe, R., 2003: Iron oxide-copper-gold deposits: an Andean view, Mineralium Deposita, 38, p SRK, 2014: Technical Report for the Compañía Minera Candelaria and Minera Ojos del Salado Copper Projects, Atacama Province, Region III, Chile. Technical Report prepared by SRK Consulting (Canada) Inc. for Lundin Mining Corporation and dated October 6, 2014.

137 Technical Report for the Candelaria Copper Mining Complex, Chile Page 114 APPENDIX A Mineral Tenure Information SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

138 Technical Report for the Candelaria Copper Mining Complex, Chile Page 115 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

139 Technical Report for the Candelaria Copper Mining Complex, Chile Page 116 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

140 Technical Report for the Candelaria Copper Mining Complex, Chile Page 117 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

141 Technical Report for the Candelaria Copper Mining Complex, Chile Page 118 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

142 Technical Report for the Candelaria Copper Mining Complex, Chile Page 119 APPENDIX B List of Mining and Exploration Concessions SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

143 Technical Report for the Candelaria Copper Mining Complex, Chile Page 120 Schedule A Minera Candelaria Mining Exploitation Concessions National Rol Name Area Registration Information Status (ha) Page Number Year Registry City AFUERINA 1/ /10/1991 Property COPIAPO Granted AGUILA 1/ vta /07/1990 Property COPIAPO Granted AGUILA 31/ /07/1991 Property COPIAPO Granted ALCE 1/ /03/1986 Property COPIAPO Granted ANA /12/1990 Property COPIAPO Granted ANDALUCIA 1/ vta 5 Año 1991 Property COPIAPO Granted ANDREA 10 1/ /11/2012 Discovery CALDERA Granted ANDREA 11 1/ /11/2012 Discovery CALDERA Granted ANDREA 12 1/ /11/2012 Discovery CALDERA Granted ANDREA 13 1/ /11/2012 Discovery CALDERA Granted ANDREA 14 1/ /11/2012 Discovery CALDERA Granted ANDREA 15 1/ /11/2012 Discovery CALDERA Granted ANDREA 16 1/ /11/2012 Discovery CALDERA Granted ANDREA 17 1/ /11/2012 Discovery CALDERA Granted ANDREA 18 1/ /11/2012 Discovery CALDERA Granted ANDREA 7 1/ /11/2012 Discovery CALDERA Granted ANDREA 8 1/ /11/2012 Discovery CALDERA Granted K ANDREA 9 1/ /11/2012 Discovery CALDERA Granted K ANDREA CINCO 1/ /09/2013 Property COPIAPO Granted A368-6 ANDREA CUATRO 1/ /06/2013 Property COPIAPO Granted A369-4 ANDREA CUATRO 11/ vta /11/2013 Property COPIAPO Granted A370-8 ANDREA CUATRO 21/ vta /06/2013 Property COPIAPO Granted A366-K ANDREA DOS vta /11/2013 Property COPIAPO Granted ANDREA SEIS 21/ vta /09/2013 Property COPIAPO Granted A364-3 ANDREA UNO 1/ /06/2013 Property COPIAPO Granted A365-1 ANDREA UNO 11/ vta /11/2013 Property COPIAPO Granted ANGELICA 11/ /05/1991 Property COPIAPO Granted ANTONIA 1/ /10/1993 Property COPIAPO Granted ANTONIA 11/ /10/1993 Property COPIAPO Granted ANTONIA 21/ /10/1993 Property COPIAPO Granted ANTONIA 31/ /10/1993 Property COPIAPO Granted ANTONIA 41/ /10/1993 Property COPIAPO Granted ANTONIA 51/ /10/1993 Property COPIAPO Granted ANTONIA 71/ vta /10/1993 Property COPIAPO Granted ANTONIA 81/ /10/1993 Property COPIAPO Granted ANTONIA I 1/ vta 37 08/02/1994 Property COPIAPO Granted AURORA 150 vta 255 Año 1904 Property COPIAPO Granted BAHIA IV 1/ /09/1999 Property CALDERA Granted BAHIA V 1/ /12/1999 Property CALDERA Granted K BAHIA VI 1/ /12/1999 Property CALDERA Granted BELLAVISTA 1/ vta /12/2009 Property COPIAPO Granted BELLAVISTA 11/ vta 14 13/01/2010 Property COPIAPO Granted BELLAVISTA 15/ /01/2010 Property COPIAPO Granted BELLAVISTA 9/ /12/2009 Property COPIAPO Granted BERTA DOS AL ESTE /08/1939 Property COPIAPO Granted BERTA UNO AL NORTE /08/1939 Property COPIAPO Granted BRISA 1/ vta /09/1990 Property COPIAPO Granted BRISA 21/ vta 3 11/01/1991 Property COPIAPO Granted BRISA 41/ Año 1991 Property COPIAPO Granted BRONCE 1/ /02/1987 Property COPIAPO Granted BRONCE 11/ /01/1987 Property COPIAPO Granted BRONCE 21/ /02/1987 Property COPIAPO Granted BRONCE 31/ vta 24 23/01/1987 Property COPIAPO Granted BRONCE vta /07/1989 Property COPIAPO Granted BRONCE /07/1989 Property COPIAPO Granted BRONCE 41/ /01/1987 Property COPIAPO Granted BRONCE 51/ /09/1987 Property COPIAPO Granted BRONCE 71/ vta /10/1988 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

144 Technical Report for the Candelaria Copper Mining Complex, Chile Page 121 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City BRONCE 91/ /04/1990 Property COPIAPO Granted BRONCE 101/ /04/1990 Property COPIAPO Granted BRONCE CINCO 16/ vta /05/2000 Property COPIAPO Granted BRONCE CUATRO 1/ /05/2000 Property COPIAPO Granted BRONCE TRES 1/ /10/2011 Property COPIAPO Granted BRONCE VEINTE 1/ /11/1999 Property COPIAPO Granted CALEDONIA 1/ vta 6 Año 1991 Property COPIAPO Granted CARLA 10 11/ vta 33 08/02/2005 Property COPIAPO Granted CAROLITA CINCO 1/ /04/1994 Property COPIAPO Granted CAROLITA CUATRO 1/ vta /12/1996 Property COPIAPO Granted CAROLITA DOS 1/ vta /12/1993 Property COPIAPO Granted CAROLITA DOS /12/1993 Property COPIAPO Granted CAROLITA TRES 1/ vta /12/1996 Property COPIAPO Granted CAROLITA UNO 1/ /12/1993 Property COPIAPO Granted CAROLITA UNO 16/ /12/1993 Property COPIAPO Granted CAROLITA UNO 34/ /12/1993 Property COPIAPO Granted CAROLITA VEINTIDOS 1/ vta /10/1996 Property COPIAPO Granted CHIQUITA vta /06/1992 Property COPIAPO Granted CHIQUITA I vta /06/1992 Property COPIAPO Granted CIERVO 1/ /03/1986 Property COPIAPO Granted CONDOR 1/ /07/1990 Property COPIAPO Granted K CORA 1/ vta /10/1991 Property COPIAPO Granted CORA 21/ /12/1991 Property COPIAPO Granted COSTANERA 1/ vta 281 Año 1990 Property COPIAPO Granted CRUCES 1/ /04/1990 Property COPIAPO Granted CRUCES 21/ vta /07/1990 Property COPIAPO Granted CRUCES 41/ vta /08/1990 Property COPIAPO Granted CRUCES DOS 1/ vta /06/2010 Property COPIAPO Granted K CRUCES I 16/ /12/1991 Property COPIAPO Granted CRUCES I 21/ /11/1991 Property COPIAPO Granted DECIDIDA 1/ Año 1956 Property Granted DELIRIO /04/1990 Property COPIAPO Granted DESPRECIADA vta 82 14/09/1948 Property COPIAPO Granted DESPRECIADA 1/ vta Aug-2012 Property COPIAPO Granted DICHOSA vta 99 13/12/1936 Property COPIAPO Granted ELENA 1 1/8 60 COPIAPO In Process ELENA 1 11/12 20 COPIAPO In Process ESPERANZA 1/ vta /11/1991 Property COPIAPO Granted ESTEBAN 1/ vta 70 01/02/1990 Property COPIAPO Granted B587-0 ESTELA 1 1/ vta /12/2014 Property COPIAPO Granted B595-1 ESTELA 10 1/ vta /02/2015 Property COPIAPO Granted B596-K ESTELA 11 1/ vta /12/2014 Property COPIAPO Granted B597-8 ESTELA 12 1/ vta /02/2015 Property COPIAPO Granted B598-6 ESTELA 12 31/ vta /02/2015 Property COPIAPO Granted B599-4 ESTELA 13 1/ /02/2015 Property COPIAPO Granted B600-1 ESTELA 14 1/ /02/2015 Property COPIAPO Granted B601-K ESTELA 15 1/ vta /12/2014 Property COPIAPO Granted ESTELA 16 1/ vta /12/2012 Discovery CALDERA Granted B588-9 ESTELA 3 1/ /12/2014 Property COPIAPO Granted B589-7 ESTELA 4 1/ vta /02/2015 Property COPIAPO Granted B289-8 ESTELA 5 1/ /05/2015 Property COPIAPO Granted B590-0 ESTELA 6 31/ vta /02/2015 Property COPIAPO Granted B591-9 ESTELA 7 1/ /02/2015 Property COPIAPO Granted B592-7 ESTELA 8 1/ vta /12/2014 Property COPIAPO Granted B593-5 ESTELA 8 45/ vta /12/2014 Property COPIAPO Granted B594-3 ESTELA 9 1/ vta /02/2015 Property COPIAPO Granted ESTRELLA Año 1904 Property COPIAPO Granted FLORENCIA 14 1/ vta /07/2012 Property COPIAPO Granted FLORENCIA 15 1/ vta /07/2012 Property COPIAPO Granted FLORENCIA vta /03/2014 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

145 Technical Report for the Candelaria Copper Mining Complex, Chile Page 122 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City FLORENCIA 22 1/ vta /07/2012 Property COPIAPO Granted FLORENCIA 4 1/ /07/2012 Property COPIAPO Granted K FLORENCIA A18 21/ /12/2013 Discovery COPIAPO In Process FLORENCIA A3 1/ /12/2013 Discovery COPIAPO In Process FUNDENTE 1/ vta /06/2012 Property COPIAPO Granted FUNDENTE 1/ /10/1951 Property COPIAPO Granted GRANATE 120/ vta 5 02/01/1990 Property COPIAPO Granted INDEPENDENCIA /04/1990 Property COPIAPO Granted INDEPENDENCIA 1/ vta /12/1958 Property COPIAPO Granted K LA PIRITA 1/ /04/1988 Property COPIAPO Granted LA PITA 1/ vta /12/2009 Property COPIAPO Granted LA POLLITA 1/ /05/1989 Property COPIAPO Granted LA POLO 1/ /12/2009 Property COPIAPO Granted LA SIETE POR CIENTO 1/ /12/1955 Property COPIAPO Granted LAR 1/ vta /08/1983 Property COPIAPO Granted K MACARENA 111/ vta /09/1993 Property COPIAPO Granted K MACARENA 131/ vta /09/1993 Property COPIAPO Granted MACARENA 176/ vta /08/1993 Property COPIAPO Granted MACARENA 181/ vta /09/1993 Property COPIAPO Granted MACARENA 196/ vta /09/1993 Property COPIAPO Granted MACARENA 211/ /08/1993 Property COPIAPO Granted MACARENA 241/ /09/1993 Property COPIAPO Granted MACARENA 261/ vta /09/1993 Property COPIAPO Granted MACARENA 271/ /09/1993 Property COPIAPO Granted MACARENA 274/ vta /09/1993 Property COPIAPO Granted MACARENA /09/1993 Property COPIAPO Granted MACARENA 288/ vta /08/1993 Property COPIAPO Granted MACARENA 298/ /08/1993 Property COPIAPO Granted MACARENA 306/ /08/1993 Property COPIAPO Granted MACARENA 316/ vta /08/1993 Property COPIAPO Granted MACARENA /08/1993 Property COPIAPO Granted MACARENA 346/ vta /05/1993 Property COPIAPO Granted K MACARENA 366/ vta /08/1993 Property COPIAPO Granted MACARENA 386/ vta /08/1993 Property COPIAPO Granted MACARENA 406/ /04/1993 Property COPIAPO Granted MACARENA 426/ vta /08/1993 Property COPIAPO Granted MACARENA 434/ vta /08/1993 Property COPIAPO Granted K MACARENA 442/ /08/1993 Property COPIAPO Granted MACARENA 445/ /08/1993 Property COPIAPO Granted MANTO PEDREGAL 1/ /08/1989 Property COPIAPO Granted MARTITA 1 1/ vta /09/2013 Discovery COPIAPO Granted MARTITA 10 1/ /02/2015 Property COPIAPO Granted MARTITA 6 1/ /03/2014 Property COPIAPO Granted MARTITA vta /09/2013 Discovery COPIAPO Granted MERCEDES 130 vta 227 Año 1905 Property COPIAPO Granted MILANO 41/ vta 77 23/04/1991 Property COPIAPO Granted MILANO 51/ /07/1991 Property COPIAPO Granted NIC CARTER 1/ vta 95 08/09/1942 Property COPIAPO Granted NIC CARTER II 1/ vta /06/1992 Property COPIAPO Granted OCHO POR CIENTO 1/ /08/1989 Property COPIAPO Granted OJANCO 1/ /06/1988 Property COPIAPO Granted OJANCO 61/ vta /10/1990 Property COPIAPO Granted OJANCO 85/ vta /05/1990 Property COPIAPO Granted OJANCO CINCO 14/ vta /04/1998 Property COPIAPO Granted OJANCO CINCO 3/ /04/1998 Property COPIAPO Granted OJANCO CUATRO 4/ vta 27 18/01/1999 Property COPIAPO Granted OJANCO DOS vta /12/2000 Property COPIAPO Granted OJANCO DOS 1/ /06/1998 Property COPIAPO Granted K OJANCO DOS 11/ vta /06/1998 Property COPIAPO Granted OJANCO DOS 6/ vta /06/1998 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

146 Technical Report for the Candelaria Copper Mining Complex, Chile Page 123 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City OJANCO I 41/ /04/1991 Property COPIAPO Granted OJANCO SEIS 1/ vta 69 11/04/2001 Property COPIAPO Granted OJANCO TRES 11/ vta /07/1998 Property COPIAPO Granted OJANCO TRES 24/ vta /04/1998 Property COPIAPO Granted K OJANCO TRES 4/ vta /07/1998 Property COPIAPO Granted K OJANCO VEINTIUNO 1/ vta /04/1998 Property COPIAPO Granted OJANCO VEINTIUNO 12/ vta /04/1998 Property COPIAPO Granted OJANCO VEINTIUNO 5/ vta /07/1998 Property COPIAPO Granted OLI CINCO 1/ vta 99 27/02/2012 Property COPIAPO Granted PAME UNO 24/ vta /08/1998 Property COPIAPO Granted PAME UNO 6/ vta /06/1998 Property COPIAPO Granted PAME DOS 26/ /02/1999 Property COPIAPO Granted PAME DOS 38/ vta /08/1998 Property COPIAPO Granted PELIGROSA 1/ /06/1989 Property COPIAPO Granted PELUSIN 1/ /02/1988 Property COPIAPO Granted POLA 1/ vta /04/1990 Property COPIAPO Granted PROTECTORA 1/ /01/1990 Property COPIAPO Granted PROTECTORA 21/ vta /10/1991 Property COPIAPO Granted PROTECTORA 41/ /10/1991 Property COPIAPO Granted PROTECTORA 55/ /05/1990 Property COPIAPO Granted PUDU 1/ /09/1990 Property COPIAPO Granted PUNTA PADRONES 1/ /06/1997 Property CALDERA Granted RENO 1/ vta 79 25/06/1979 Property COPIAPO Granted RESCATADA 1/ /02/1989 Property COPIAPO Granted K RINCON 1/ /01/1990 Property COPIAPO Granted RINCONADA 1/ /09/1966 Property COPIAPO Granted RORO 1/ vta 94 11/08/1988 Property COPIAPO Granted ROSALIA I /06/1992 Property COPIAPO Granted ROSALIA II /06/1992 Property COPIAPO Granted ROSALIA III vta /10/1992 Property COPIAPO Granted ROSICLER DOS 1/ /10/1994 Property COPIAPO Granted ROSICLER CUATRO 1/ /09/1994 Property COPIAPO Granted K ROSICLER TRES 1/ /10/1994 Property COPIAPO Granted ROSITA vta /07/1991 Property COPIAPO Granted SAN GREGORIO /07/1939 Property COPIAPO Granted SAN JOSE 1/ /06/1989 Property COPIAPO Granted K SAN JOSE Y SOFIA /08/1990 Property COPIAPO Granted SAN LUIS Año 1904 Property COPIAPO Granted SAN PANCRACIO 1/ vta 49 11/07/1972 Property COPIAPO Granted SAN PEDRO I 11/20, 31/34 Y 46/ vta /05/1990 Property COPIAPO Granted SAN PEDRO II 1/ /05/1990 Property COPIAPO Granted SAN RAMON 54 vta 19 Año 1968 Property COPIAPO Granted SANTA GEMITA II 1/ Año 1990 Property COPIAPO Granted SANTA GEMITA III 1/ Año 1989 Property COPIAPO Granted SANTA GEMITA IV 1/ Año 1990 Property COPIAPO Granted SANTA GEMITA V 1/ Año 1990 Property COPIAPO Granted SANTA ROSA 1/ /06/1959 Property COPIAPO Granted SANTA SOFIA 1/ vta /05/1989 Property COPIAPO Granted SANTA TERESA I 1/ vta /10/1992 Property COPIAPO Granted SANTA TERESA II 1/ /10/1992 Property COPIAPO Granted SANTA TERESA III 1/ vta /10/1992 Property COPIAPO Granted SUR 1/ /09/1990 Property COPIAPO Granted TOLITO II 1/ VENADO 1/ /12/1988 Property COPIAPO Granted VENADO 25/ /10/1989 Property COPIAPO Granted VENADO II 1/ /01/1990 Property COPIAPO Granted VENADO II 17/ /02/1990 Property COPIAPO Granted VENTARRON 1/ vta /05/1993 Property COPIAPO Granted K VIENTO 1/ vta 35 13/01/1989 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

147 Technical Report for the Candelaria Copper Mining Complex, Chile Page 124 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City VIENTO 21/ vta 32 09/02/1987 Property COPIAPO Granted VIENTO 41/ vta /07/1989 Property COPIAPO Granted K VIENTO 59/ /04/1989 Property COPIAPO Granted VIENTO 85/ vta /04/1989 Property COPIAPO Granted VIENTO 103/ /01/1989 Property COPIAPO Granted VIENTO II 21/ vta /07/1990 Property COPIAPO Granted GEMA II 1/ vta /06/2014 Discovery COPIAPO In Process GEMA III 1/ /06/2014 Discovery COPIAPO In Process GEMA IV 1/ vta /06/2014 Discovery COPIAPO In Process GEMA V 1/ /06/2014 Discovery COPIAPO In Process N/A ANDREA A7 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A8 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A9 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A10 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A11 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A12 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A13 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A14 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A15 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A16 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A17 1/ /04/2015 Discovery CALDERA In Process N/A ANDREA A18 1/ /04/2015 Discovery CALDERA In Process N/A ESTELA A16 1/ /04/2015 Discovery CALDERA In Process N/A ESTELA A1 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A2 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A3 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A4 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A5 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A6 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A7 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A8 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A9 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A10 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A11 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A12 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A12 31/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A13 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A14 1/ vta /07/2015 Discovery COPIAPO In Process N/A ESTELA A15 1/ vta /07/2015 Discovery COPIAPO In Process Schedule A Minera Candelaria Exploration Concessions National Rol Name Area Registration Information Status Expiration (ha) Page Number Year Registry City Date I114-8 ESTELA A vta /11/2013 Discovery COPIAPO Granted 09/09/ D035-6 MARTITA B /06/2014 Discovery COPIAPO Granted 12/03/ D037-2 FLORENCIA B /06/2014 Discovery COPIAPO Granted 13/03/ D038-0 FLORENCIA B vta /06/2014 Discovery COPIAPO Granted 13/03/ D039-9 FLORENCIA B vta /06/2014 Discovery COPIAPO Granted 13/03/ D024-0 BELLAVISTA A vta /08/2014 Discovery COPIAPO Granted 02/06/ D321-5 MARTITA B vta /01/2015 Discovery COPIAPO Granted 14/10/ D322-3 MARTITA B /01/2015 Discovery COPIAPO Granted 14/10/ D323-1 MARTITA B vta /01/2015 Discovery COPIAPO Granted 14/10/ D324-K MARTITA B /01/2015 Discovery COPIAPO Granted 14/10/ D325-8 MARTITA B vta /01/2015 Discovery COPIAPO Granted 14/10/ D331-2 MARTITA B vta /01/2015 Discovery COPIAPO Granted 14/10/ D332-0 MARTITA B /01/2015 Discovery COPIAPO Granted 14/10/ D333-9 MARTITA B vta /01/2015 Discovery COPIAPO Granted 14/10/2016 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

148 Technical Report for the Candelaria Copper Mining Complex, Chile Page 125 National Rol Name Area Registration Information Status Expiration (ha) Page Number Year Registry City Date D334-7 MARTITA B /01/2015 Discovery COPIAPO Granted 14/10/ D335-5 MARTITA B vta /01/2015 Discovery COPIAPO Granted 14/10/ D336-3 MARTITA B /01/2015 Discovery COPIAPO Granted 14/10/ D302-9 LICHA /12/2014 Discovery COPIAPO Granted 15/10/ D303-7 LICHA vta /12/2014 Discovery COPIAPO Granted 15/10/ D317-7 MARTITA B vta /01/2015 Discovery COPIAPO Granted 15/10/ D318-5 MARTITA B /01/2015 Discovery COPIAPO Granted 15/10/ D319-3 MARTITA B vta /01/2015 Discovery COPIAPO Granted 15/10/ D320-7 MARTITA B /01/2015 Discovery COPIAPO Granted 15/10/ D326-6 MARTITA B /01/2015 Discovery COPIAPO Granted 15/10/ D327-4 MARTITA B vta /01/2015 Discovery COPIAPO Granted 15/10/ D328-2 MARTITA B /01/2015 Discovery COPIAPO Granted 15/10/ D329-0 MARTITA B vta /01/2015 Discovery COPIAPO Granted 15/10/ D330-4 MARTITA B /01/2015 Discovery COPIAPO Granted 15/10/2016 N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ANDREA B /04/2015 Discovery CALDERA In Process N/A N/A ESTELA B /04/2015 Discovery CALDERA In Process N/A N/A JUANITA /05/2015 Discovery COPIAPO In Process N/A N/A JUANITA /05/2015 Discovery COPIAPO In Process N/A N/A JUANITA vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B vta /05/2015 Discovery COPIAPO In Process N/A N/A ESTELA B /05/2015 Discovery COPIAPO In Process N/A SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

149 Technical Report for the Candelaria Copper Mining Complex, Chile Page 126 Schedule B Minera Ojos del Salado Mining Exploitation Concessions National Rol Name Area Registration Information Status (ha) Page Number Year Registry City ALCAPARROSA vta /07/1877 Property COPIAPO Granted K ALCAPARROSA II y IV /09/1939 Property COPIAPO Granted ALTA SIERRA 1/ /03/1965 Property COPIAPO Granted K AURORA /01/1954 Property COPIAPO Granted BLANCA TORRE DE CARRIZALILLO 1/ /10/1992 Property COPIAPO Granted K BONANZA CUARTA 1/ vta 78 22/03/1999 Property COPIAPO Granted BONANZA DOS 1/ vta 29 09/02/1999 Property COPIAPO Granted BONANZA SEXTA vta 79 22/03/1999 Property COPIAPO Granted BONANZA SEXTA 11, 12, 33/ /03/1999 Property COPIAPO Granted BONANZA SEXTA vta 80 22/03/1999 Property COPIAPO Granted BONANZA SEXTA 7/ vta 81 22/03/1999 Property COPIAPO Granted BONANZA TERCERA 1/ vta 77 22/03/1999 Property COPIAPO Granted BONANZA UNO 1/ vta 44 27/02/1997 Property COPIAPO Granted CARMEN /11/1935 Property COPIAPO Granted CARO TRES vta 34 19/02/1996 Property COPIAPO Granted CAROLITA 1/ /09/1991 Property COPIAPO Granted CAROLITA SEIS 1/ /12/1995 Property COPIAPO Granted K CECILIA 1/ /04/1986 Property COPIAPO Granted CHICA 1/ vta /07/1991 Property COPIAPO Granted CHICA 14/ /07/1992 Property COPIAPO Granted K CHICA 22/ vta /07/1991 Property COPIAPO Granted CHICA 26/ vta /07/1991 Property COPIAPO Granted CHICA 32/ /07/1991 Property COPIAPO Granted CHICA vta /07/1991 Property COPIAPO Granted K CHICA 4/ vta /07/1991 Property COPIAPO Granted CLAUDIA 1/ vta 25 18/02/1991 Property COPIAPO Granted COALA DOS 11/ vta 6 05/01/1995 Property COPIAPO Granted COALA TRES 13/ /01/1995 Property COPIAPO Granted COIPA 1/ vta 98 13/06/1957 Property COPIAPO Granted CONDOR 1/ /06/1997 Property COPIAPO Granted COOPERATIVA AGUSTINA / /11/1980 Property COPIAPO Granted COTOPAXI 1/ /11/1962 Property COPIAPO Granted CRUCES NUEVE 1/ vta /11/2000 Property COPIAPO Granted CRUCES OCHO 1/ vta /11/2000 Property COPIAPO Granted CRUCES OCHO 41/ /11/2000 Property COPIAPO Granted CRUCES SIETE 1/20 y 31/ /11/2000 Property COPIAPO Granted CUTANA 1/ /07/1971 Property COPIAPO Granted DESCUBRIDORA 1/ /10/1952 Property COPIAPO Granted DESPRECIADA 1/ /05/1947 Property COPIAPO Granted DICASO 1/ vta 61 16/04/1981 Property COPIAPO Granted ESCAPADA vta /11/1938 Property COPIAPO Granted GLADYS 1/ vta 57 09/04/1981 Property COPIAPO Granted GRANATE 1/ /05/1990 Property COPIAPO Granted GRANATE 22/ vta /05/1990 Property COPIAPO Granted GRANATE 42/ /07/1990 Property COPIAPO Granted GRANATE 64/ /05/1990 Property COPIAPO Granted GRANATE 86/ vta 21 09/01/1990 Property COPIAPO Granted GRANATE 92/ /01/1990 Property COPIAPO Granted GRANATE 105/ vta /07/1990 Property COPIAPO Granted HERCULES 35/ /03/1990 Property COPIAPO Granted HERCULES II 1/ vta 40 12/02/1992 Property COPIAPO Granted JILGUERO DOS 1/ vta 5 03/01/1996 Property COPIAPO Granted K JILGUERO SEGUNDA 21/ vta /11/1999 Property COPIAPO Granted JILGUERO SEGUNDA 41/ /11/1999 Property COPIAPO Granted LA DICHOSA 1/ vta /12/1955 Property COPIAPO Granted LADRILLOSDOS 27/ /12/1993 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

150 Technical Report for the Candelaria Copper Mining Complex, Chile Page 127 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City LADRILLOSTRES 1/ vta /09/1994 Property COPIAPO Granted K LADRILLOSTRES 51/ vta /10/1994 Property COPIAPO Granted LADRILLOSUNO 1/ vta /12/1993 Property COPIAPO Granted LAS ADRIANITAS 1/ vta /06/1970 Property COPIAPO Granted LAS PINTADAS 1/ /01/2001 Property COPIAPO Granted LAS PINTADAS 121/ vta 3 04/01/2001 Property COPIAPO Granted LAS PINTADAS 131/ /01/2001 Property COPIAPO Granted LAS PINTADAS vta 5 04/01/2001 Property COPIAPO Granted LAS PINTADAS 61/ /01/2001 Property COPIAPO Granted LASTENIA Property COPIAPO Granted K LAURA REBECA /12/1938 Property COPIAPO Granted LAURA SEGUNDA /12/1938 Property COPIAPO Granted LEON 1/ /06/1997 Property COPIAPO Granted MACA DOS 61/ vta /06/2000 Property COPIAPO Granted MACARENA 61/ vta /08/1993 Property COPIAPO Granted MACARENA 11/ /08/1993 Property COPIAPO Granted MACARENA 41/ /05/1993 Property COPIAPO Granted MACARENA 469/ /08/1993 Property COPIAPO Granted MACARENA 495/ vta /08/1993 Property COPIAPO Granted MACARENA 101/ vta /08/1993 Property COPIAPO Granted MACARENA 81/ vta /08/1993 Property COPIAPO Granted MAK CUATRO 1/ /06/2000 Property COPIAPO Granted MALAQUITA 1/ /07/1968 Property COPIAPO Granted MALAQUITA /02/1990 Property COPIAPO Granted MALAQUITA 159/ vta /05/1992 Property COPIAPO Granted K MAMIÑA 1/ vta /06/1981 Property COPIAPO Granted MANTO MONSTRUO UNO /10/1948 Property COPIAPO Granted MARCELA DEL CARMEN 1/ /12/1950 Property COPIAPO Granted MARTA 1/30 (27/28) /06/1964 Property COPIAPO Granted MILANO 1/ vta 76 23/04/1991 Property COPIAPO Granted MONUNA 1/ vta /07/1991 Property COPIAPO Granted MONUNA vta /07/1991 Property COPIAPO Granted NEGRA 1/ /04/1992 Property COPIAPO Granted OLGA 1/ vta 24 18/02/1991 Property COPIAPO Granted PANDA CUARTA 1/ /11/1997 Property COPIAPO Granted PANDA CUATRO /11/1997 Property COPIAPO Granted K PANDA CUATRO 2/ vta /11/1997 Property COPIAPO Granted PANDA CUATRO 9/ vta /07/1999 Property COPIAPO Granted K PANDA QUINTA 1/ vta 21 31/01/2000 Property COPIAPO Granted PANDA SEGUNDA 1/ vta /11/1997 Property COPIAPO Granted PANDA TERCERA 1/ vta /11/1997 Property COPIAPO Granted PANDA TERCERA 11/ vta /11/1997 Property COPIAPO Granted PEDRO A. CERDA 1/ vta /12/1962 Property COPIAPO Granted K PINTADAS 21/ vta 79 23/04/1991 Property COPIAPO Granted PINTADAS 66/ vta 7 02/01/1990 Property COPIAPO Granted K PINTADAS 79/ /07/1990 Property COPIAPO Granted PINTADAS /04/1992 Property COPIAPO Granted POR SI ACASO /09/1998 Property COPIAPO Granted QUILIMARI I 1/ /07/1995 Property COPIAPO Granted REBECA SEGUNDA /12/1938 Property COPIAPO Granted RELAVE 1/ /04/1953 Property COPIAPO Granted RENACER 14/ vta /06/1992 Property COPIAPO Granted RENACER 28/ /06/1992 Property COPIAPO Granted RENACER 35/ /10/1994 Property COPIAPO Granted RENACER 4/ vta /07/2000 Property COPIAPO Granted K RENACER 55/ /10/1994 Property COPIAPO Granted RENACER 69/ /02/1994 Property COPIAPO Granted RENACER 84/ vta /05/1994 Property COPIAPO Granted RENACER 105/ vta 35 07/02/1994 Property COPIAPO Granted RESGUARDO /06/1939 Property COPIAPO Granted RESGUARDO 1/ vta 65 31/07/1963 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

151 Technical Report for the Candelaria Copper Mining Complex, Chile Page 128 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City SAN CARLOS 1/2 15 COPIAPO SAN ESTEBAN vta 10 14/01/1958 Property COPIAPO Granted SAN JOSE Y SOFIA /08/1990 Property COPIAPO Granted SAN PEDRO I 1/10,21/30,35/ vta /05/1990 Property COPIAPO Granted SAN PEDRO II 49/ /05/1990 Property COPIAPO Granted SANTA AURORA 1/ vta 49 03/05/1967 Property COPIAPO Granted SANTOS VETA Y STOS MANTOS /08/1937 Property COPIAPO Granted SOFIA 1 85 vta Property COPIAPO Granted SOL SEGUNDA 10/ vta 83 22/03/1999 Property COPIAPO Granted K SOL SEGUNDA 13/ vta 84 22/03/1999 Property COPIAPO Granted SUERTE CINCO 1, 2, 3, 7, 8, , /02/1996 Property COPIAPO Granted TAURO TRES vta /09/1994 Property COPIAPO Granted TAURO TRES vta /05/1994 Property COPIAPO Granted TERESA MARIA 3 57 vta 38 31/07/1943 Property COPIAPO Granted TIRANA vta 56 27/07/1949 Property COPIAPO Granted VERI 1/ vta /09/1967 Property COPIAPO Granted VETA GRUESA 2 7 vta 3 28/03/1918 Property COPIAPO Granted ALBA 17/ vta /04/1990 Property COPIAPO Granted ALBA 37/ vta /09/1989 Property COPIAPO Granted ALBA 57/ /01/1990 Property COPIAPO Granted ALBA 127/ vta /09/1989 Property COPIAPO Granted K ALBA 157/ /01/1990 Property COPIAPO Granted ALBA 163/ vta 67 31/01/1990 Property COPIAPO Granted CORITA 1/ /07/1990 Property COPIAPO Granted K MACARENA 969/ /08/1993 Property COPIAPO Granted TORO 1/ vta /05/1989 Property COPIAPO Granted TORO 21/ vta /05/1989 Property COPIAPO Granted ROCIO 1/ vta 72 Año 1989 Property COPIAPO Granted LECHUZA 1/ /03/2008 Property COPIAPO Granted DESCUIDADA 6 3 COPIAPO DESCUIDADA 11 2 COPIAPO K DESEADA Año 1942 Property COPIAPO Granted NATALIA 1/ vta 144 Año 1996 Property COPIAPO Granted HERCULES 63/ vta /07/1990 Property COPIAPO Granted HERCULES 91/ vta /05/1990 Property COPIAPO Granted MACARENA /08/1993 Property COPIAPO Granted MACARENA 485/ /08/1993 Property COPIAPO Granted MONUNA vta /07/1991 Property COPIAPO Granted MONUNA vta /07/1991 Property COPIAPO Granted ÑA LU 1/ /03/1959 Property COPIAPO Granted PINTADAS 45/ vta /05/1990 Property COPIAPO Granted PINTADAS II 1/ vta /05/1990 Property COPIAPO Granted TORO 101/ /05/1989 Property COPIAPO Granted TORO 121/ /05/1989 Property COPIAPO Granted TORO 41/ vta /05/1989 Property COPIAPO Granted K TORO 61/ /05/1989 Property COPIAPO Granted TORO 81/ /05/1989 Property COPIAPO Granted LECHUZA SUR 1/ vta /07/2012 Property COPIAPO Granted K MARK I 1/ vta /06/2012 Property COPIAPO Granted MARK II 1/ vta /09/2012 Property COPIAPO Granted MARK III 1/ vta /06/2012 Property COPIAPO Granted MARK IV 1/ /09/2012 Property COPIAPO Granted MARK V 1/ /09/2012 Property COPIAPO Granted MARK VI 1/ /01/2013 Property COPIAPO Granted MARK VI 55/ /09/2012 Property COPIAPO Granted MARK VI 59/ /06/2012 Property COPIAPO Granted MARK 1/ /02/2012 Property COPIAPO Granted MARK 41/ vta /06/2011 Property COPIAPO Granted MARK 101/ vta /02/2012 Property COPIAPO Granted SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

152 Technical Report for the Candelaria Copper Mining Complex, Chile Page 129 National Rol Name Area Registration Information Status (ha) Page Number Year Registry City MARK 161/ /06/2011 Property COPIAPO Granted MARK 201/ vta /06/2011 Property COPIAPO Granted MARK 261/ vta /06/2011 Property COPIAPO Granted BRISA TRES 1/ vta /07/2012 Property COPIAPO Granted BRISA CUATRO 1/ vta /02/2013 Property COPIAPO Granted PINTA /07/2012 Property COPIAPO Granted PINTA 2/ vta /07/2012 Property COPIAPO Granted PUNTA NEGRA A 1/ vta /03/2014 Property COPIAPO Granted BRISA SIETE 1/ vta /03/2014 Property COPIAPO Granted BUITRE 2 1/ /03/2014 Property COPIAPO Granted VIENTO A vta /02/2015 Property COPIAPO Granted VIENTO A11 1/ /02/2015 Property COPIAPO Granted DANIELA DIEZ 1/ vta /02/2015 Property COPIAPO Granted CORA A1 1/ vta /12/2012 Discovery COPIAPO In Process K CORA A2 1/ vta /12/2012 Discovery COPIAPO In Process CORA A3 1/ vta /12/2012 Discovery COPIAPO In Process CORA A4 1/ vta /12/2012 Discovery COPIAPO In Process CORA A5 1/ vta /12/2012 Discovery COPIAPO In Process CORA A6 1/ vta /12/2012 Discovery COPIAPO In Process Schedule B Minera Ojos del Salado Exploration Concessions National Rol Name Area Registration Information Status Expiration (ha) Page Number Year Registry City Date A905-5 CAMILA B /01/2015 Discovery COPIAPO Granted 15/10/ A906-3 CAMILA B vta /01/2015 Discovery COPIAPO Granted 15/10/ A907-1 CAMILA B /01/2015 Discovery COPIAPO Granted 15/10/ A908-K BUITRE B /01/2015 Discovery COPIAPO Granted 15/10/ C120-9 VIENTO B1 (renewal) vta /01/2013 Discovery COPIAPO Granted 11/10/ C121-7 VIENTO B2 (renewal) /01/2013 Discovery COPIAPO Granted 11/10/ C122-5 VIENTO B3 (renewal) vta /01/2013 Discovery COPIAPO Granted 11/10/ C123-3 VIENTO B4 (renewal) /01/2013 Discovery COPIAPO Granted 11/10/ C124-1 VIENTO B5 (renewal) vta /01/2013 Discovery COPIAPO Granted 11/10/ C125-K VIENTO B6 (renewal) /01/2013 Discovery COPIAPO Granted 11/10/ C126-8 VIENTO B7 (renewal) vta /01/2013 Discovery COPIAPO Granted 11/10/ C127-6 VIENTO B8 (renewal) /01/2013 Discovery COPIAPO Granted 11/10/ C128-4 VIENTO B9 (renewal) vta /01/2013 Discovery COPIAPO Granted 11/10/ C497-6 CORA B3 (renewal) /10/2013 Discovery COPIAPO Granted 10/07/ D655-9 VIENTO C /10/2014 Discovery COPIAPO Granted 20/03/ D663-K VIENTO C vta /10/2014 Discovery COPIAPO Granted 20/03/ D656-7 VIENTO C /10/2014 Discovery COPIAPO Granted 20/03/ D662-1 VIENTO C vta /10/2014 Discovery COPIAPO Granted 20/03/ D658-3 VIENTO C /10/2014 Discovery COPIAPO Granted 20/03/ D661-3 VIENTO C vta /10/2014 Discovery COPIAPO Granted 20/03/ D657-5 VIENTO C /10/2014 Discovery COPIAPO Granted 20/03/ D660-5 VIENTO C vta /10/2014 Discovery COPIAPO Granted 20/03/ D659-1 VIENTO C /10/2014 Discovery COPIAPO Granted 20/03/2017 N/A CORA C vta /06/2015 Discovery COPIAPO In Process N/A N/A CORA C /06/2015 Discovery COPIAPO In Process N/A N/A CORA C vta /06/2015 Discovery COPIAPO In Process N/A N/A CORA C /06/2015 Discovery COPIAPO In Process N/A N/A CORA C vta /06/2015 Discovery COPIAPO In Process N/A N/A CORA C /06/2015 Discovery COPIAPO In Process N/A SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

153 Technical Report for the Candelaria Copper Mining Complex, Chile Page 130 APPENDIX C Detailed Mining and Surface Rights Maps SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

154 Technical Report for the Candelaria Copper Mining Complex, Chile Page 131 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015

155 Technical Report for the Candelaria Copper Mining Complex, Chile Page 132 SRK Team / ah jfc sg Candelaria_Final_2015_TR_3CL016000_JFC_DEL_JN_GP_ADD_MV_cs_sk_gc_ doc September 4, 2015