THE STATE OF ZACATECAS, MEXICO

THE STATE OF ZACATECAS, MEXICO

ZACATECAS Zacatecas is a state with much to offer. Its capital city is one of the most beautiful colonial cities in Mexico. Thanks to itshistory and architecture, the UNESCO declared it a World Heritage Site. Countless historical cultural buildings can be found along the city s European style urban layout along narrow streets, alleys and squares. Its main economic activities are: mining, manufacturing industry, agriculture, and tourism. The state is known for its large deposits of silver and other minerals, such as: gold, cooper and zinc. The state of Zacatecas is located in central Mexico, bordering eight states: Coahuila, Durango, Nayarit; San Luis Potosí, Nuevo León, Jalisco, Aguascalientes and Guanajuato. It has a road infrastructure of 11,842 km.; a railway network of 674.89Km and one international airport.

Zacatecas, Capital City: World Cultural Heritage site

GENERAL INFORMATION Zacatecas has a surface of 75,539 km 2, equivalent to the 3.8% of the total surface of the country, occupying the 8th national place in territorial extension. Neighboring States: 1- Aguascalientes, 2- Jalisco, 3- Nuevo León, 4- San Luis Potosí, 5- Nayarit, 6- Guanajuato, 7- Coahuila, 8- Durango UNITED STATES OF AMERICA GENERAL INFORMATION MUNICIPALITIES 58 5 8 2 7 1 4 6 3 Mexico Zacatecas ALTITUDE ABOVE SEA LEVEL (for Zacatecas city) TIME 8,189 ft UTC-6, in Summer UTC-5, Central Time Pacific Ocean WEATHER Mainly dry TEMPERATURE 17 º C average (annually) Due to Zacatecas privileged location in Central Mexico, is among the few States which has no existing records for any earthquake. In addition, there is no probability that a tsunami or cyclone would happen. SOURCE: Compilation from own elaboration of the State Ministry of Economy, based on the figures provided by INEGI.

Economic Data POPULATION TOTAL POPULATION OF THE STATE 1 EAP (ECONOMICALLY ACTIVE POPULATION) 2 AVERAGE AGE 3 1,579,209 inhab. 640,085 inhab. 26 YEARS STATE GROSS DOMESTIC PRODUCT (GDP) 4 : FOREIGN DIRECT INVESTMENT (FDI) IN THE STATE 5 : $184,248.00 billion MXP (1.7% of the National GDP) $10.877 billion USD SOURCE: 1 Compiled from own elaboration of the State Ministry of Economy, based on the figures provided by INEGI from Intercensus Survey from INEGI 2015. 2, 3 Compiled from own elaboration of the State Ministry of Economy, based on the data provided by the National Survey of Occupancy and Employment 3 rd Trimester 2017 INEGI 4 Compiled from data of the System of National Records, millions of MXP pesos in current prices in July 2017 from INEGI 2013 current prices 5 Compiled by own elaboration of State Ministry of Economy database of FDI: Foreign Direct Investment as of (date) September 2017

Economic Data 20 DYNAMICS OF THE ECONOMIC SECTORES OF THE STATE, YEAR 2016, GDP % 18 16 14 12 17.9 15.7 10.7 10 9.4 9.3 9.1 8 7.1 6 5.8 5.5 4 3.6 2.7 2.4 2 0.7 0 Source: Compiled from own elaboration of the State Ministry of Economy, based on the figures and date provided by the National Accounts System, at current process of base year 2013, INEGI Mining Services for for Companies, population general population and House and haul households Manufacturing Industries Retail trade Agriculture, Livestock, Forestry, Fishing and Hunting Construction Wholesale Educational services² Legislative, governmental, law enforcement activities and international and extraterritorial organizations² Social and community services² Transport and Communications Health and social assistance services² Electricity Industry and drinking water collection and supply

Competitive Advantages

Privileged location and modern infrastructure Stable labor force Pro business environment Government commitment to maintain favorable conditions for the competitiveness of companies. Easy access to national and international markets Economic Incentives for productive investment, on behalf of Zacatecas State Government. High quality of life in a region with low costs Competitive Advantages

Privileged Location PORTS MAZATLAN, SIN 598 KM MANZANILLO, COL 640 KM ALTAMIRA, TAMPS 618 KM VERACRUZ, VER 1,033 KM LÁZARO CÁRDENAS, MICH 750 KM SAN JOSÉ 3040 KM. - DALLAS 1361 KM. FRONTIERS BORDERS REYNOSA, TAMPS 662 KM REYNOSA, TAMPS 662 KM NVO. LAREDO, TAMPS 657KM NVO. LAREDO, TAMPS 657KM CD. JUAREZ, CHIH. 1,205 KM CD. JUAREZ, CHIH. 1,205 KM TIJUANA, B. C. 2,249 KM TIJUANA, B. C. 2,249 KM MATAMOROS, TAMPS. 750 KM S.L.P 170 KM. LÁZARO CÁRDENAS, MICH. 650 KM. ALTAMIRA ALTAMIRA 618 618 Km Km Very competitive distribution cost DISTANCES TO: CD. MEXICO MÉXICO CITY 626 KM GUADALAJARA 327 KM AGUASCALIENTES 125 KM MONTERREY MONTERREY 455 455 KM KM SAN LUIS POTOSÍ 170 KM CONNECTIVITY LOS ANGELES, CA 2,542 KM CHICAGO, IL 2,588 KM CD. MEXICO (DF) 626 KM CD. MEXICO (DF) 626 KM TIJUANA, B. C. 2,249 KM TIJUANA, B. C. 2,249 KM SAN JOSÉ, CALIF. 170 KM DALLAS, TEXAS. 170 KM

ZACATECAS International Airport Zacatecas has an International Airport located 23 km. from the capital city. 29 km. from Guadalupe and 36 km. from Fresnillo. INTERNATIONAL AND DOMESTIC FLIGHTS Direct domestic flights to Mexico City and Tijuana (AeroMexico/ Volaris). International non stop flights To Dallas, Texas (American Airlines); Los Angeles, California, San José, California and Chicago, Illinois (Volaris).

Privileged Location

Human Capital

Human Capital WORLD CLASS EDUCATION: Zacatecas State Government is highly committed to its local talent and the growth of their skills and abilities. 50,864 ENROLLED STUDENTS IN PROFESSIONAL LEVEL 49 UNIVERSITIES, TECHNICAL AND HIGHER EDUCATION SYSTEMS UNIVERSIDAD AUTÓNOMA DE ZACATECAS (UAZ) INSTITUTO TECNOLOGICO DE ZACATECAS (ITZ) I TESM TEC DE MONTERREY CAMPUS ZACATECAS UNIVERSIDAD DE LA VERA-CRUZ (UNIVER) UNIVERSIDAD INTERAMERICANA PARAEL DESARROLLO (UNID) UNIVERSIDAD POLITECNICA DE ZACATECAS (UPZ) UNIVERSIDAD DEL DESARROLLO PROFESIONAL (UNIDEP) UNIVERSIDAD AUTONOMA DE DURANGO (UAD) INSTITUTO POLITECNICO NACIONAL (IPN) UNIVERSIDAD TECNOLOGICA DEL ESTADODE ZACATECAS (UTEZ) COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA (CONALEP)

Investment Opportunities STRATEGIC SECTORS METAL MECHANICAL: AUTOPARTS AND AEROSPACE RENEWABLE ENERGIES INFORMATION TECHNOLOGIES MINING AND METALLURGICAL INDUSTRY AGRIBUSINESS TOURISM AND RELATED SERVICES

Industrial Corridor MUNICIPALITY POPULATION TRANCOSO 19,413 1 GUADALUPE 187,918 6 EDUCATION INSTITUTIONS OF TECHNICAL AND SUPERIOR LEVEL INDUSTRIAL PARKS OSIRIS INDUSTRIAL PARK GUADALUPE INDUSTRIAL PARK LA ZACATECANA INDUSTRIAL AREA ZACATECAS 146,147 7 QUANTUM CITY OF KNOWLEDGE MORELOS 12,354 2 PYME 100 INDUSTRIAL PARK AIRPORT INDUSTRIAL PARKS I and CALERA 45,204 2 II CALERA INDUSTRIAL PARK GRAL. ENRIQUE ESTRADA 6,325 3 FRESNILLO 230,865 4 FRESNILLO INDUSTRIAL PARK AGRIBUSINESS PARK TOTAL 648,226₁ 25 10 ₁ Source: 1 Compiled from data of State Ministry of Economy, based on Intercensus Survey from INEGI 2015.

Industrial Corridor MUNICIPALITY EDUCATION INSTITUTIONS OF TECHNICAL AND SUPERIOR LEVEL STUDENTS TRANCOSO COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 433 CBTIS - CENTRO DE BACHILLERATO TECNOLOGICO INDUSTRIAL Y DE SERVICIOS ITESM - INSTITUTO TECNOLOGICO Y DE ESTUDIOS SUPERIORES DE MONTERREY CONALEP - COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA GUADALUPE UNID - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO UNIVER - UNIVERSIDAD DE LA VERA-CRUZ 6,556 UTEZAC - UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS ITSZ - INSTITUTO TECNOLÓGICO SUPERIOR DE ZACATECAS UAZ - UNIVERSIDAD AUTÓNOMA DE ZACATECAS IPN - INSTITUTO POLITÉCNICO NACIONAL UAD - UNIVERSIDAD AUTÓNOMA DE DURANGO CIMAT - CENTRO DE INVESTIGACIÓN EN MATEMÁTICAS ZACATECAS COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 58,175 ITESM INSTITUTO TECNOLOGICO Y DE ESTUDIOS SUPERIORES DE MONTERREY CONALEP COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA UNID - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO UNIVER - UNIVERSIDAD DE LA VERA-CRUZ UTEZAC - UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS MORELOS COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 388 CALERA CECYTEZ - COLEGIO DE ESTUDIOS CIENTÍFICOS Y TECNOLÓGICOS DEL ESTADO DE ZACATECAS 633 GRAL. ENRIQUE ESTRADA COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 502 ITSF - INSTITUTO TECNOLÓGICO SUPERIOR DE FRESNILLO UPZ - UNIVERSIDAD POLITECNICA DE ZACATECAS UNID FRESNILLO - UNIVERSIDAD FRESNILLO INTERAMERICANA PARA EL DESARROLLO UAD FRESNILLO UNIVERSIDAD AUTÓNOMA DE DURANGO SEDE FRESNILLO 3,181 UAF - UNIVERSIDAD AUTÓNOMA DE FRESNILLO TOTAL 21 69,735

Industrial Corridor MUNICIPALITY INHABITANTS ₁ ECONOMICALLY ACTIVE POPULATION₂ WORKERS REGISTERED BEFORE IMSS (MEXICAN SOCIAL SECURITY SYSTEM)₄ TRANCOSO 19,413 5,370 191 GUADALUPE 187,918 65,601 28,958 ZACATECAS 146,147 57,621 49,684 MORELOS 12,354 4,153 4,395 CALERA 45,204 15,021 9,568 GRAL. ENRIQUE ESTRADA 6,325 2039 421 FRESNILLO 230,226 77,688 34,705 TOTAL 648,226 227,493 127,922 1 Source: Compiled from own elaboration of State Ministry of Economy, based on Intercensus Survey from INEGI 2015. ₂ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the National Survey of Occupation and Employment (ENOE-ITER) by INEGI, date consulted: November, 2017 ₃ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the National Survey of Occupancy and Employment (ENOE-ITER) INEGI, November 2017 ₄ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the IMSS total registered insured employees by municipality, November 2017

Industrial Corridor TOTAL POPULATION IN URBAN INDUSTRIAL CORRIDOR: 648,226 INHABITANTS, REPRESENTING 41.04% OF THE TOTAL STATE POPULATION Work Force in Industrial Corridor: 227,493 inhabitants

QUANTUM QUANTUM CITY OF KNOWLEDGE, settled on 38 hectares in the city of Zacatecas. - Research and Technological Development Centers, public and private, such as: Research Center of Minera Frisco Mathematics Center of Investigation (CIMAT) Others to be established

QUANTUM Quantum City of Knowledge is a space to promote the scientific and technological development of the region, under a paradigm of continuous innovation, where research centers, laboratories, technology transfer offices, governmental and private institutions are set up to promote the economic growth of the entity. The objective is to make concur, in a determined territory for that purpose, instances that promote an economy of knowledge under a model known as the triple helix (Government, academy and company). First stage 49,500.00 m 2 1.- Lotification of 13 properties 30,971.82 m 2 2.- Main square ( 42 bedding y 81 benches) 3.- 76 Parking boxes 1,310.62 m 2 4.- Walkers 6,300.54 m 2 5.- Green areas 1,149.42 m 2 6.- Roads 9,385.22 m 2 7.- Vehicular lower bridge 8.- Reforestation of 5,000 trees 9.- 3 Gabion walls in river to retain soil Second stage 149,938.07 m 2 1.- Lotification of 32 properties 119,997.20 m 2 2.- Main square( 60 bedding y 110 benches) 3.- 72 Parking boxes 1,155.93 m 2 4.- Walkers 10,931.64 m 2 5.- Green áreas 981.10 m 2 6.- Roads 16,872.20 m 2 7.- Bridge connection to the first stage 8.- Reforestation of 3,000 trees Third stage 56,144.28 m 2 1.- Lotification of 8 properties 40,819.13 m 2 2.- Main square ( 40 bedding y 70 benches) 3.- 50 Parking boxes 1,155.93 m 2 4.- Walkers 5,699.54 m 2 5.- Green áreas 3207.70 m 2 6.- Roads 5,472.23 m 2 7.- Bridge connection to the second stage 8.- Reforestation of 3,000 trees 1 First stage Surface: 49,500.00 m 2 2 Second stage Surface: 149,938.07 m 2 3 Third stage Surface: 56,144.28 m 2

QUANTUM Building of Research Centers, First Stage Advances as of December 31 Land Area m 2 1 Frisco Metallurgy Research Center 100% 6215 CIMAT 98% 3000 Lasec 65% 5231 Compulogic 70% 2875 Servimolina 10% 935 Maya Productions 55% 1353 IMSS 0% 2321 Coworking Space (1st Stage) Mexican Space Agency Metallurgy Laboratories IPN 95% 0% 0% 2536 2461 1423 LABORATORIO DE METALURGIA IPN

MINING IN ZACATECAS COMPANY UNITY MUNICIPALITY PRINCIPAL PRODUCTS Source: Own preparation based on administrative records of the Mining Department of the Ministry of Economy, consultation date February 2018

MINING CLUSTER Date of establishment: September 12, 2017. 1 st Mining Cluster in Mexico The Mining Cluster of Zacatecas, is a nonprofit civil association formed by mining industrial and suppliers companies Zacatecas and Central Mexico, academic institutions and government institutions. Its purpose is to strengthen the mining industry through joint work for the development of its supply chain, innovation in its processes, increase in industrial safety, the development of its human capital as well as the attraction of suppliers to Zacatecas and Central Mexico General Objective of the Mining Cluster: The strengthening of the metal mining industry in Zacatecas and Central Mexico, through joint work between mining companies, suppliers, State Government of Zacatecas and academic institutions.

MINING CLUSTER The Cluster's board of directors is made up of thirteen members: 7 Mining groups: 2 Government: 2 Academic institutions: 3 Supply companies:

Quality of Life

Quality of Life ANNUAL SURVEY OF LIVING COST 2015 2016 Cost of living expenses: Zacatecas has one of the lowest living expenses average cost nationwide, according to the Annual Survey of Living Cost 2015 2016 published by the firm MERCER; Zacatecas had a ranking of 77% placing between the five cities with the lowest average cost of living, among 47 cities that were considered.

Quality oflife In general, Zacatecas has a good quality of life. The prices of utilities, rental costs, restaurants and services in general, are less in comparison to other cities in the country; at the same time, people have access to a good lifestyle because of the lower cost of goods and services within the State, compared to surrounding states in the country.

Zacatecas, Your Strategic Partner

CARLOS BÁRCENA POUS MINISTRY OF ECONOMY OF THE STATE OF ZACATECAS carlos.barcena@zacatecas.gob.mx