PERU: UNDOUBTEDLY A MINING COUNTRY

PERU: UNDOUBTEDLY A MINING COUNTRY EMBASSY OF PERU 1

Located right in the middle of South America and the World, Peru has an strategic location that allows easy access to Southeast Asian markets and the United States. Also, as a member of the Asia-Pacific Economic Cooperation (APEC) and the Andean Community enjoys the advantages of being integrated to these markets. ASIA * FTA OCEANIA Australia China * Korea Malaysia Singapore * Thailand Japan PACIFIC OCEAN A STRATEGIC LOCATION Canada * United States * Cuba El Salvador PERU ATLANTIC OCEAN Argentina Bolivia Chile * Colombia Germany Begium & Luxembourg Denmark Spain Finland France Netherlands Italy Norway Portugal United Kingdom Czech Republic Romania Sweden Switzerland Ecuador Paraguay Venezuela Peru has signed Bilateral Investment Treaties and Free Trade Agreements, which consolidate our policy of openness. Moreover, Peru has signed Double Taxation Agreements with Brasil, Chile and Canada.

MACROECONOMIC INDICATORS Economic discipline has allowed Peru to experience sustained growth over the last 10 years. INDICATORS Annual 2006 2007 2008 2009 2010* GDP (real % var.) 7.7% 8.9% 9.8% 0.9% 8.8% Mining GDP (real % var.) 1.1% 1.7% 7.3% -1.4% -4.9% Inflation (Consumer Price Index) 1.1% 3.9% 6.7% 0.2% 0.2% Average Exchange Rate (S/. Per US$) 3.27 3.13 2.92 3.01 2.83 Exports (US$MM) 23,830 27,882 31,529 26,885 35,565 Mining Exports (US$MM) 14,735 17,238 18,657 16,361 21,723 Imports (US$MM) 14,844 19,595 28,439 21,011 28,815

GRADO DE INVERSIÓN INVESTOR S PERCEPTION Peru occupies the second place in the region in the Ease of Doing Business ranking, published by the World Bank. Doing Bussiness 2011 Rank Country Investment Grade País S&P Fitch Moody s Chile A+ A A1 México BBB BBB Baa1 Perú BBB- BBB- Baa3 Brasil BBB- BBB- Baa3 Panamá BBB- BBB- Baa3 Colombia BB+ BB+ Ba1 Venezuela BB- BB+ B2 Argentina B RD B3 Bolivia B- B B2 Ecuador CCC+ CCC Caa3 1 Mexico 2 Peru 3 Colombia 4 Chile 5 Puerto Rico Source: Doing Bussiness 2011 Peru has obtained the Investment Grade from the three main credit risk agencies: Standard & Poor s, Moody s and Fitch.

LEGAL STABILITY FOR INVESTORS Legal Stability Contracts signed by the Peruvian State and guaranteed by the National Political Constitution. Stability of the free availability and remittance of foreign currency regime. Stability in the general tax regime (Income Tax, Customs Duty, Sales Tax). No discrimination between national and foreign investors. Guarantee of private property. Freedom to purchase stocks from locals. Freedom of access to internal and external credit. Freedom to remit royalties and profits. Free access to mining property for nationals and foreigners alike. By exception, foreigners require a government permission granted through a Supreme Decree to operate within 50 km from the national borders Information transparency. Irrevocability of the concession (except for non-compliance with obligations, as stipulated in the General Law on Mining.

MINING IN PERU

PERU IN WORLD MINERAL PRODUCTION RANKINGS Peru: rank in Mineral Production 2010 Mineral World Latin America Silver 1 1 Zinc 2 1 Tin 3 1 Lead 4 1 Gold 6 1 Mercury 4 2 Copper 2 2 Molybdenum 4 2 Selenium 9 2 Cadmium 12 2 Iron 17 5 Peru is the first silver and second copper producer worldwide. In Latin America Peru is the first gold, silver, zinc, tin and lead producer. Source: U.S.Geological Survey-USGS-, The Silver Institute; Gold Fields Minerals Services-GFMS- International Copper Study Group -ICSG-; International Lead and Zinc Study Group-ILZSG- International Tin Research Institute - ITRI-; International Molybdenum Association-IMOA- Instituto Latinoamericano del Hierro y el Acero - ILAFA-

PERU: POLYMETALLIC COUNTRY COPPER PRODUCTION (Thousands of Fine Metric Tons) SILVER PRODUCTION (Thousand Fine Kilograms) ZINC PRODUCTION (Thousands of Fine Metric Tons) GOLD PRODUCTION (Millions of Fine Grams) LEAD PRODUCTION (Thousands of Fine Metric Tons) IRON PRODUCTION (Thousands of LFT) MOLYBDENUM PRODUCTION (Thousands of Fine Metric Tons) TIN PRODUCTION (Thousands of Fine Metric Tons)

MINING AND PERUVIAN EXPORTS Metallic and nonmetallic minerals represent almost 62% of total Peruvian exports. US$ Millions Metallic Mining 21,723 61.25% Nonmetallic Mining 251 0.71% Basic metal industries and jewelry 902 2.54% Fabricated metal products and machinery 387 1.09% Fishing (traditional) 1,883 5.31% Agricultural 972 2.74% Petroleum and derivatives 3,049 8.60% Agriculture and livestock 2,171 6.12% Fishing (non traditional) 641 1.81% Textiles 1,553 4.38% Timbers and Papers and its manufactures 350 0.99% Chemical 1,220 3.44% Other 364 1.03% TOTAL EXPORTS 35,464 100% NON METALLIC MINING 0.71% METALLIC MINING Source: BCRP

TOTAL MINING EXPORTS (US$ MILLIONS) Over the last 10 years, national mining exports have increased their value 7 times. Copper and Gold are the main mining exports. US$ Millions Copper 8,870 Gold 7,756 Zinc 1,691 Silver 118 Lead 1,579 Tin 663 Iron 523 Molybdenum 492 Others 29 TOTAL 21,723 2.41% 2.27% 3.05% COPPER GOLD

PERUVIAN MINING EXPORTS DESTINATION OTHER CHINA Cu, Fe, Pb, Zn SOUTH KOREA Cu, Au, Zn SPAIN Cu, Zn CHILE Cu, Mo, Zn, Pb ITALY Cu, Au, Zn SWITZERLAND Au, Pb, Ag GERMANY Cu, Ag, Pb, Zn, Au JAPAN Cu, Zn, Pb, Fe USA Au, Cu, Zn, Fe CANADA Au, Pb, Ag Cu, Zn Source: Peruvian Central Bank

INCOME TAX FROM THE ECONOMIC SECTORS The Peruvian State collects 33% of the total Income Tax thanks to Mining Activities, which is then distributed as an economic contribution for the development of the Peruvian Regions. Mining is the leading contributor, accounting for 39% of total transfers to the Regions the year 2010. OTROS MINING ECONOMIC CONTRIBUTIONS TO PERUVIANS REGIONS 2010 S/. 3,243 Millones 39% 30% 12.5% ELECTRICIDAD Y AGUA 6.5% 3.7% COMERCIO HIDROCARB. MANUF. PRIMARIA. 3.4% 3.0% 1.5% 0.6% 0.04% CONSTRUCCIÓN MANUF. NO PRIMARIA. Source: Sunat Source: MEF

MINING INVESTMENT Total Mining Exports US$ Millions PLANTA DE BENEFICIO INFRAESTRUCTURA OTROS PREPARACIÓN EXPLOTACIÓN EQUIPAMIENTO EXPLORACIÓN MINING INVESTMENTBY ITEM US$ Millions The notable increase in mining investment in Peru has lead to an historical record the year 2010: more than US$ 4,000 Millions, most of which was invested in infrastructure, production and exploration. Source: Ministry of Energy and Mines Peru ITEM TOTAL US$ Millions Infrastructure 809.24 Production 736.55 Exploration 614.56 Mining Equipment 517.03 Prospect 509.91 Others 424.26 Mineral Processing Plant Equipment 413.57 4,025.12

MINING INVESTMENT FLOW SHOWS UPWARD TENDENCY. 4,500 4,000 3,500 Annual Mining Investment (US$ million) 4,200 3,000 2,821 2,500 2,000 1,500 1,000 1,086 1,610 1,249 1,708 500 305 396 0 2003 2004 2005 2006 2007 2008 2009 2010* Source: MEF

PERU: EXPLORATION INVESTMENTS Peru occupies the third place in global exploration spending (2010); investments have grown during recent years as a result of the increased confidence of investors and the mining potential of the country. Investments in Mining Exploration (US$ Millions) Exploration investments worldwide destination (US$ Millions) (*) ESTAMIN preliminary data (2010) Source: MEG Metal Economic Group

JUNIOR MINING COMPANIES IN LIMA STOCK EXCHANGE (BVL) At present there are 39 Mining Companies and 12 Junior Mining Companies listing on the Lima Stock Exchange (BVL), which is the only Stock Exchange in Latin America with a Risk Capital Segment where Junior Mining Companies are listed. Segunda Colocación Privada de Acciones Colocación Privada de Acciones Colocación Privada de Acciones Tercera Colocación Privada de Acciones Colocación Privada de Acciones US$ 7,269,957 US$ 2,809,799 US$ 4,040,711 US$ 16,999,879 US$ 260,865 Lead Manager Lead Manager Lead Manager Lead Manager Mayo 2010 Agosto 2010 Noviembre 2010 Noviembre 2010 Marzo 2010

MINING POTENTIAL AND INVESTMENT PERSPECTIVES

ARQUEOLÓGICAS (INC) NATURAL RESOURCES AND MINING ACTIVITY OTRAS ÁREAS RESTRINGIDAS ZONAS URBANAS (área urbana y expansión) 38 137 3,673,125 ha 488,900 ha 2.86% 0.38% PERUVIAN MINING NATURAL RESOURCES PUERTOS Y AEROPUERTOS 20 4,188 ha 0.0% ECOLOGÍA, PREDIOS, PATRIMONIO Y MINERÍA EN EL PERÚ TOTAL TOTAL 3,304 128 196,208 61,516,971 ha 47.87% 100 % COUNTRY AREA SUBSOIL SUPERFICIE OF DEL THE TERRITORIO NATIONAL TERRITORY NACIONAL Areas ÁREAS granted NATURALES to mining activities PROTEGIDAS 34,513 198 14,767,834 37,740,898 ha 29.34% 11.54% Mineral PROYECTOS Production Areas ESPECIALES 430 13 13,871,240 998,078 ha 10.79% 0.78% Mineral ZONAS Exploration Areas ARQUEOLÓGICAS (INC) Source: (MEM-ESTAMIN/INGEMMET-SIDEMCAT) Dec 2010 OTRAS ÁREAS 38 3,673,125 ha 2.86% RESTRINGIDAS The ZONAS Andean URBANAS Mountain Range, 137 along 488,900 the ha country, 0.38% is (área urbana y expansión) the main source of mineral resources in Peru. There PUERTOS is Y a huge and diverse 20 geological 4,188 ha wealth 0.0% recognized AEROPUERTOS by the international community, most of which is yet to be explored and exploited. TOTAL This SUBSOIL potential OF THE is NATIONAL reflected TERRITORY in the production of gold, silver, Areas granted lead, to zinc, mining molybdenum, 34,513 tin 14,767,834 and new ha iron 11.54% and uranium activities deposits. Mineral Production Areas However, mining activity only occurs in 1.05 % of the Peruvian territory Mineral Exploration Areas 2,898 475 3,304 5,738,616 342,748 ha 61,516,971 ha 0.27% 4.47% 47.87% On the other hand, 11.54% of the territory has been granted to the mining activity. 430 475 998,078 ha 342,748 ha 0.78% 0.27%

LEADING MINING COMPANIES OPERATING IN PERU Source: MEM Exploration: More than 100 mining companies mostly from Canada, Australia, United Kingdom, China and the United States. More than 400 prospects and projects under exploration. Production: 398 producing mining units Aluminium Corp. of China-Chinalco Anglo American Plc Barrick Gold BHP-Billiton Freeport-McMoRan Copper & Gold Inc Grupo Buenaventura Grupo Hochschild Grupo México Grupo Milpo Iamgold Jiangxi Copper Minmetals Corp. Mitsubishi Mitsui Mining Corp. Nanjinzhao Group Co. Ltd. Newmont Peñoles Rio Tinto Shougang Group Sumitomo Teck Resources Limited Vale Votorantim Metais Xstrata Plc Zijin Mining Group

ONCOMING MINING PROJECTS - SUMMARY Stage Mlls US$ % Total Extensions 5,447 13.0 EIA approoved 11,525 27.5 EIA presented 5,231 12.5 Exploring 19,764 47.1 Total 41,967 100.0 Mineral Mlls US$ % Total Copper 28,313 67.5 Iron 6,580 15.7 Gold 4,736 11.3 Others 2,338 5.6 Total 41,967 100.0 Region Mlls US$ % Total Apurímac 8,001 19.1 Cajamarca 7,746 18.5 Moquegua 6,850 16.3 Arequipa 5,260 12.5 Ancash 1,802 4.3 Others 12,308 29.3 Total 41,967 100.0

TOTAL PERU TOTAL WORLD COPPER GOLD FMT MOQUEGUA 19,621,963 TACNA 12,976,633 AREQUIPA 12,712,219 ANCASH 7,750,383 CAJAMARCA 5,302,587 CUSCO 2,781,981 LA LIBERTAD 1,156,562 PASCO 423,213 LIMA 279,974 ICA 267,253 JUNIN 264,449 HUANCAVELICA 236,952 PUNO 62,045 HUANUCO 23,437 AYACUCHO 16,656 PIURA 8,918 APURIMAC 1,105 63,886,330 630,000,000 10.1% OF THE WORLD RESERVES FGr CAJAMARCA 945,641,714 LA LIBERTAD 608,242,546 AREQUIPA 263,037,112 ANCASH 157,580,787 AYACUCHO 66,121,546 PUNO 47,155,139 CUSCO 45,954,904 MOQUEGUA 25,751,006 PASCO 22,027,344 JUNIN 9,934,736 LIMA 5,886,659 HUANCAVELICA 4,400,461 MADRE DE DIOS 2,805,026 APURIMAC 1,060,800 ICA 375,894 TACNA 66 LAMBAYEQUE 0.08 TOTAL PERU 2,205,975,740 TOTAL WORLD 51,000,000,000 4.3% OF THE WORLD RESERVES PERU: MINERAL RESERVES (2009) Cu : 63 886,330 FMT Cu Cu ECUADOR Ag Au Cu Zn Cu Zn Ag Au Ag Zn PACIFIC OCEAN Au : 2,206 FMT Ag Au Zn Cu Ag Cu Zn Ag Au Cu Zn Ag Au Ag Au Ag Au Cu Zn Cu Zn Cu Zn Ag Au Cu Zn Ag Au Zn Ag Au Cu Zn COLOMBIA Ag : 67,760 FMT Ag Au Ag Au Cu Zn Cu Zn Reservas Probables y probadas / Fuente DAC 2009 / MEM-DGM Reservas Mundiales: Fuente US Geological Survey, January 2010 Ag Au Cu BRAZIL Au Au Cu Zn Cu Au Zn : 19 983,876 FMT CHILE BOLIVIA SILVER 13.3% OF THE WORLD RESERVES ZINC FKg ANCASH 15,187,347 PASCO 13,142,325 PUNO 8,876,412 JUNIN 8,524,780 LIMA 4,853,270 CAJAMARCA 4,605,269 AREQUIPA 4,179,517 CUSCO 2,388,838 HUANCAVELICA 2,125,507 AYACUCHO 1,860,347 ICA 1,007,098 HUANUCO 361,378 AMAZONAS 342,853 LA LIBERTAD 305,900 MOQUEGUA 0.206 LAMBAYEQUE 0.004 TOTAL PERU 67,760,840 TOTAL WORLD 510,000,000 FMT PASCO 6,445,388 ANCASH 5,895,065 JUNIN 2,914,858 LIMA 1,992,981 ICA 934,122 PUNO 657,004 HUANCAVELICA 317,724 AYACUCHO 241,246 AREQUIPA 220,437 AMAZONAS 200,000 HUANUCO 128,626 LA LIBERTAD 36,329 CUSCO 93 TOTAL PERU 19,983,876 TOTAL WORLD 250,000,000 8% OF THE WORLD RESERVES

ESTIMATED INVESTMENT PORTFOLIO: TOP MINING PROJECTS EXPANSION ESTIMATED PORTFOLIO OF INVESTMENT PROJECTS: US$ 41,951 Millions UNDER EXPLORATION WITH APPROVED ENVIRONMENTAL IMPACT ASSESSMENT WITH EIA SUBMITTED EXPANSION 5,097 12.15% O EN WITH CONSTRUCCION APPROVED EIA 11,889 28.34% O O EN WITH EVALUACION EIA SUBMITTED 5,201 12.40% UNDER EXPLORATION 19,764 47.11% 41,951 100.00% The estimated portfolio includes important Expansions and New Projects, mainly copper, gold, zinc, and others.

TOP MINING PROJECTS ACCORDING TO THE INVESTOR S ORIGIN Source: MEM US$ Millions % CHINA 10,420 24.84% SWITZERLAND 5,700 13.59% CANADA 5,499 13.11% USA 5,103 12.16% UK 4,700 11.20% AUSTRALIA 4,500 10.73% MEXICO 2,750 6.56% PERU 1,989 4.74% BRAZIL 800 1.91% JAPAN 490 1.17% 41,951 100.0%

MAIN COPPER PROJECTS PROJECT INVESTMENT START OF ANNUAL AMOUNT OPERATIONS PRODUCTION US$ Millions (FMT ) Toromocho 2,200 2012 275,000 Expansion Antamina 1,100 2011 175,000 Antapaccay 1,500 2012 160,000 Las Bambas 4,200 2014 400,000 Quellaveco 3,000 2014 225,000 Tía Maria 950 2012 120,000 Justa Mine, Constancia, Quechua 2,080 2013 210,000 Galeno, Michiquillay, La Granja, Others Other expansions (Cerro Verde, SPCC) 11,602 varios 945,000 1,600 2012 418,000 TOROMOCHO JUSTA MINE RIO BLANCO CAÑARIACO LA GRANJA MICHIQUILLAY GALENO ANTAMINA EXPANSION LOS CHANCAS LAS BAMBAS ANTAPACCAY QUECHUA QUELLAVECO TOTAL US$ 28,238 2,928,000 CERRO VERDE EXPANSION TIA MARIA National copper production (Thousand FMT) forecast until the year 2021. 6,232 PERÚ FMT thousands 2000 554 2001 722 2002 845 2003 843 2004 1,036 2005 1,010 2006 1,048 2007 1,190 2008 1,268 2009 1/ 1,276 2010 1/ 1,247 2011 1,435 2012 2,976 2013 3,361 2014 4,665 2015 4,980 2016 5,930 2017 5,989 2018 6,049 2019 6,110 2020 6,171 2021 6,232 CHILE TMF TOQUEPALA Y CUAJONE EXPANSION The production forecast reveals a significant increase due to the new cooper projects. Source : MEM

MAIN GOLD PROJECTS PROJECT INVESTMENT AMOUNT US$ Millions START OF OPERATIONS ANNUAL PRODUCTION (Thousands of fine oz.) TANTAHUATAY MINAS CONGA Tantahuatay 56 2012 100 Pucamarca 90 2011 70 Minas Conga 3,000 2014 750 Chucapaca 700 2016 341 Otros 950 2014 205 CHAQUICOCHA LA ARENA SHAHUINDO LAGUNAS NORTE EXPANSION TOTAL US$ 4,796 1,466 19.07% National Gold production forecast up to the year 2020 (Thousands of fine oz.) 8,231 (Thousands of fine oz.) 2005 6,687 2006 6,521 2007 5,473 2008 5,783 2009 5,916 2010 5,253 2011 6,371 2012 6,704 2013 6,838 2014 6,975 2015 7,455 2016 7,604 2017 7,756 2018 7,911 2019 8,070 2020 8,231 CHUCAPACA PUCAMARCA The Gold production forecasts from the year 2011 until 2020 are based on the variable production of the Investment Portfolio published on January 2011, assuming a 2% increase. Source : MEM

CURRENT (AND FUTURE) PROJECTS IN PERU

CURRENT (AND FUTURE) PROJECTS IN PERU

CURRENT (AND FUTURE) PROJECTS IN PERU

CURRENT (AND FUTURE) PROJECTS IN PERU

CURRENT (AND FUTURE) PROJECTS IN PERU

MODERN MINING WITH SOCIAL ENVIRONMENTAL RESPONSIBILITY AMBIENTAL Legislación minera - ambiental Respeto al ambiente Estudios ambientales Rigurosos Estándares Nacionales Estándares Internacionales Sistemas de Gestión Ambiental Innovación tecnológica SOCIAL Empleo Directo Local, regional y nacional Empleo Indirecto Programa de Desarrollo Sostenible Fideicomisos Sociales Apoyo a la Producción Compras Locales y nacionales Aporte Voluntario ECONÓMICA Impuestos y Tributos Canon Minero Regalía Minera Derecho de Vigencia y Penalidad Aporte Voluntario Aranceles e ISC Fondo Empleo We promote a sustainable mining development in three areas: economic, social and environmental. We promote a continuous dialogue with the communities with the aim of achieving socio-environmental agreements and licenses and the strict accomplishment of all the international standards in force. What do we expect from the Mining Investor? Productive investment, non-speculative Environmental excellence Social Responsibility excellence We expect modern businessmen, integrated to the community and compromised with its development.

100 YEARS Thank You Ministry of Energy and Mining www.mem.gob.pe Mining Geological and Metallurgical Institute - INGEMMET www.ingemmet.gob.pe Luis Quesada Ambassador of Peru lquesada@embaperu.org.au embassy@embaperu.org.au www.embaperu.org.au National Society of Mining, Petroleum and Energy - SNMEP www.snmpe.org.pe

FURTHER INFORMATION