Perfomance Highlights - 2Q18

• Quarterly silver production decreased 15.5% and 12.5% vs. 2Q17 and 1Q18 respectively mainly due to the lower than expected ore grades in certain areas and the temporary limited access to higher ore grade areas at San Alberto, Candelaria and Santa Elena.
• The temporary restricted access to higher grade areas of the mine was a result of the delays in development and mine preparation following lower than expected productivity from contractors. This was due to a high turnover of contractor personnel which has a knock-on effect of delaying the maintanance programme thereby resulting in lower equipment availability. To mitigate this, the Company is looking to: i) add a new contractor; ii) review, adapt and improve the maintanance programme; and iii) purchase additional equipment, to be operated by our own team alongside our contractors, in order to provide us with higher degree of control to increase development rates and mine preparation.
• Silver production at the Fresnillo mine has shown a positive trend increasing from 7,579 koz in the 2H16 to 8,129 in the 1H18, a +7.2% increase. However, we have been below our production targets which we are confident will be achieved in the near future once we overcome the contractors productivity shortcomings.
• The silver grade for the full year is expected to be 215-225 g/t (previously 235 g/t) whilst going forward, the long term grade is expected to remain approximately 260 g/t.
• First half silver production decreased vs. 1H17 as a result of the lower ore grade and, to a lesser extent, lower recovery rate.
• Quarterly by product gold production increased vs. 2Q17 and 1Q18 due to the higher ore grades which compensated for the lower volumes of ore processed. Similarly, year to date by-product gold production increased 3.2% vs. 1H17 mainly due to higher ore grade.
• Quarterly and first half by-product lead production increased vs. 2Q17 and 1H17 as a result of higher ore grades.
• Quarterly by-product lead and zinc production decreased 12.6% and 10.0% vs. 1Q18 respectively, due to the lower ore grade and volume of ore processed.
• Quarterly by-product zinc production remained at a similar level vs. 2Q17. First half byproduct zinc production increased 15.1% vs. 1H17 as a result of higher ore grade and to a lesser extent, improved recovery rate.

Performance Highlights: 1H18

• 1H18 silver grade of 222 g/t. Full year 2018 silver grade expected to be: 215-225 g/t
• US$44.8 million invested in development, infrastructure and sustaining capex
• Development rate of 3,130 m/m
• Continued deepening of the San Carlos shaft
• Reduced costs as a result of vertical conveyor belt

Performance Targets - 2H18

• Continue stabilising ore grades and ore throughput
• Maintain development rates short term, whilst increasing them long term
• Carry out intensive in-fill deep drilling to increase certainty in operational planning
• Expand flotation area at the beneficiation plant
• Continue deepening the San Carlos shaft