1  

COBRE DEL MAYO Investor Presentation November, 2014 (all amounts in USD unless otherwise noted)

2  

Disclaimer and Forward Looking Statements

COBRE DEL MAYO 2  

The information contained herein has been prepared to assist interested parties in making their own evaluation of the Company and does not purport to be all inclusive or to contain all of the information that a prospective purchaser may desire. You should refer to the information in the Preliminary Offering Circular before making any investment decision to purchase the offered Notes. Forward Looking Statements This Investor Presentation and other communication with investors include forward-looking statements. These forward- looking statements include, without limitation, statements regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we participate or are seeking to participate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some cases, forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should” or “will” or the negative of such terms or other comparable terminology.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution potential investors that forward-looking statements are not guarantees of future performance and are based on numerous assumptions and that our actual results of operations, financial condition and liquidity may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in this Offering Memorandum. In addition, even if our results of operations, financial condition and liquidity and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this Management Discussion and Analysis Report, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: In light of these risks, uncertainties and assumptions, the forward-looking events described in this Management Discussion and Analysis Report may not occur. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information or future events or developments.

•  risks related to our competitive position; •  risks related to our strategy and expectations about growth in demand for

copper and business operations, financial condition and results of operations;

•  risks related to the revocation, expropriation or termination of our mining concessions or our water concessions or of the agreements pursuant to which we explore or exploit mining concessions belonging to third parties;

•  the inability to be compensated fairly in the event of termination of our mining concessions or our water concessions;

•  the impact of fluctuations in the market price for copper; •  the impact of changes in the prices of raw materials, labor and our products; •  our relationship with unions and our ability to negotiate collective bargaining

agreements;

•  the availability of materials and equipment; •  our access to funding sources, and the cost of the funding; •  changes in regulatory, administrative or economic conditions affecting the

mining industry, including government interpretations and policies; •  the application and enforcement of environmental laws and regulations; •  risks related to Mexico’s social, political or economic environment; •  the impact of changes in the end uses of our products; •  fluctuations in the value of the U.S. dollar against the Mexican peso; •  risks associated with market demand for and liquidity of the notes; and •  changes in the taxation of our business.

3  

COBRE DEL MAYO

Index

I.   Company Overview

II.   Industry and Commodity Overview

III.   Operational Environment

IV.   Historical Financial Performance V.   Conclusion

4

16

20

22

25

3  

I. Company Overview

5  

Cobre del Mayo Snapshot

§  Cobre del Mayo is a Mexican mining company that operates the Piedras Verdes (PV) open-pit copper mine in Sonora, Mexico

§  PV is the third largest copper mine in Mexico as measured by production §  It began commercial production in 2006 §  Purchased by Invecture in mid 2009 §  During 2012 a flotation circuit operated by Kupari Metals with capacity of 5,500 tons per day (“tpd”) was built and in

April 2013 copper concentrate production began §  Produces LME Grade A copper cathode and sells refractory and vein type ore for processing into concentrate §  Current annual capacity of 34,500 t of cathode from SX-EW §  Mineral Reserves of 1.13 million tons of copper and 15+ year mine life

COBRE DEL MAYO 5   13

Piedras Verdes Advantaged Location and Access:

Huatabampo

Chihuahua

Sinaloa

PiedrasVerdes Alamos

Navojoa

Sonora

CiudadObregon

Guaymas

BajaCalifornia

P

C

Deep Water Port

Commercial Airport

Railway

Rail Station

Major Highway

Private Airport

C

P

§  All infrastructure is in place

§  Easily accessible by air, road, rail and ports

§  Extremely competitive transportation costs for off-takers given PV’s location and nearby infrastructure

§  Power: Connected to CFE grid to the mine owned and maintained substation with continuous capacity of 25 MW; CDM is CFE’s single largest customer in the area

§  Water: CDM holds 7 titled water concessions for ~3.9 Mm³/yr while the requirement for the operation of the PV Mine is ~2.0 Mm³/yr

6  

Cobre del Mayo Highlights

COBRE DEL MAYO 6   10

Capex invested has enabled the implementation of processes that maximize the value of the project and minimize operational risk Cash cost and production enhancement program initiated 2Q14 with six low capex initiatives to be completed 1H15 Objective: LOM C1 cash cost of $1.65/lb

Reserve of 1.13 million tons of copper and 15+ year mine life supported by independent 43-101 released in October 2014. The deposit is open and exploration indicates the potential to meaningfully expand the reserve.

Low sustaining capex estimated at $13.0 million annually LOM  

Located in a low risk, mining friendly jurisdiction; high quality infrastructure; excellent environmental safety, exceptional community relations, and an outstanding labor record

7  

COBRE DEL MAYO 7   16

Copper Cathode Monthly Production Evolution (t)

539$

$%$$$$

$1,000$$

$2,000$$

$3,000$$

$4,000$$

$5,000$$

$6,000$$

Jan$

Feb$

Mar$

Apr$

May$

Jun$ Jul$

Aug$

Sep$

Oct$

Nov$

Dec$

Jan$

Feb$

Mar$

Apr$

May$

Jun$ Jul$

Aug$

Sep$

Oct$

Nov$

Dec$

Jan$

Feb$

Mar$

Apr$

May$

Jun$ Jul$

Aug$

Sep$

Oct$

Nov$

Dec$

Jan$

Feb$

Mar$

Apr$

May$

Jun$ Jul$

Aug$

Sep$

Oct$

Nov$

Dec$

Jan$

Feb$

Mar$

Apr$

May$

Jun$ Jul$

Aug$

Sep$

Oct$

Nov$

Dec$

Jan$

Feb$

Mar$

Apr$

May$

Jun$

Jul$$

Aug$$

Sep$$

Tons$

2009$ 2013$2012$2011$2010$ 2014$

2,034$

Acquisi'on*by*Invecture*

Key Initiatives Implemented Since Invecture Acquisition

§  In 2009, changed from contract mining to owner operation and purchased the former contractor’s equipment fleet. Purchased, re-engineered and installed a crushing, screening, conveying and stacking system

§  Diversification of processes:

— Crush for Leach, Run of Mine (ROM) leach, and SX/EW produce copper cathode

•  Installed capacity of 87 tpd, increasing to 97 tpd in 2H15, with additional cells expanding to 105 tpd

— Sales of refractory and vein type ore for concentrate production

•  Flotation plant installed capacity of 5.8 ktpd and upgrades to process 7.6 ktpd are planned for completion by 1H15

8  

COBRE DEL MAYO

Stable Low Risk Operations and Processes

§  $288.0 M in capex has been invested since 2009 with limited sustaining capex going forward, estimated at $13.0 M/yr LOM

§  Ore processing method is chosen according to grade, mineralization, and leaching and flotation characteristics to provide the best overall economics using: (i) ROM heap leach (ii) crushed ore heap leach (iii) ore for concentration

8   16

Ore for Flotation

9  

Cobre del Mayo Today

§  The PV Mine has been transformed into a high quality copper producing asset with strong operating metrics and competitive Cash Cost —  Since January 2012, PV cathode production has averaged 83 tpd —  LTM 3Q14 sales totaled $228.6 M

•  Copper cathode production of 28,211 t generating $199.3 M of sales •  Copper contained in ore totaled 15,750 t generating $29.2 M of sales

—  LTM 3Q14 EBITDA of $68.6M —  Strong credit metrics1:

•  Leverage is 3.44x Net Debt / LTM EBITDA (3Q14)

•  Capitalization is 55.3% (Debt / Total Capitalization) (3Q14) —  Strip Ratio has declined from 3.2x in FY 2012 to 2.2x during 3Q14

COBRE DEL MAYO 9   13

1.  Considering total debt of $249.6 M (weighted average interest rate of 10.14%) and $13.7 M of Cash and Equivalents 2.  Does not include copper contained in ore sold for concentrate

Cu Cathode Production2 and Total Sales EBITDA and EBITDA Margin

$78.2 $197.7 $238.2 $225.2 $199.3

$26.79 $29.21

10.9

22.8

30.7 30.4 28.2

$0

$50

$100

$150

$200

$250

$300

0

6

12

18

24

30

36

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

$M

kt

Cathode Sales ($M) Sales of Ore ($M) Cathode Production (kt)

$26.0 $65.6 $105.7 $92.0 $68.6

33% 33%

44%

37%

30%

0%

10%

20%

30%

40%

50%

$0

$25

$50

$75

$100

$125

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

%

$M

EBITDA ($M) EBITDA Margin (%)

10  

Competitive Cash Cost

COBRE DEL MAYO 10   16

Cobre del Mayo Historical C1 Cash Cost

§  Cobre del Mayo C1 cash costs are currently in the industry’s third quartile

1. Source: Wood Mackenzie

$3.63 $2.69 $2.08 $1.99 $2.23 $0.00

$1.00

$2.00

$3.00

$4.00

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

$/lb

!$1.00&

$0.00&

$1.00&

$2.00&

$3.00&

$4.00&

$5.00&

704&&

1,093&&

1,422&&

1,958&&

2,423&&

3,197&&

3,771&&

5,035&&

5,929&&

6,620&&

6,778&&

7,889&&

8,458&&

9,066&&

10,560&&

10,755&&

12,089&&

13,941&&

14,180&&

15,529&&

16,271&&

17,227&&

17,313&&

17,731&&

18,863&&

20,698&&

20,924&&

21,641&&

22,119&&

22,928&&

23,194&&

23,997&&

24,194&&

24,456&&

24,657&&

25,171&&

25,419&&

26,076&&

26,448&&

29,193&&

29,539&&

29,566&&

29,946&&

30,294&&

30,409&&

30,726&&

31,062&&

31,291&&

31,415&&

31,563&&

31,735&&

32,177&&

32,974&&

33,284&&

33,436&&

33,894&&

33,992&&

34,462&&

34,688&&

34,972&&

35,081&&

35,191&&

35,537&&

35,898&&

36,081&&

36,229&&

($/lbs)(

Cumula-ve(Paid(Metal(((Mlbs)(

C1&Cash&Cost&C1&CC&+&Sustaining&Capex&&

3Q 2014 Estimated Global Copper C1 Cash Cost Curve1

<$1.34/lb <$2.32/lb <$3.30/lb

C1 Cash Cost + Sustaining CDM 3Q14 LTM $2.45

<$1.82/lb

C1 Cash Cost: CDM 3Q14 LTM $2.23

C1 Cash Cost: CDM LOM $1.65

11  

Significant Opportunity for Low Capex to Achieve Significant Cash Cost Reduction

COBRE DEL MAYO 11  

Crusher Fines Classification

(Cathode production increase)

1Q15 $4.7M / $6.0M

2Q15 $2.0M / $1.5M

Project Benefit Timing Capex / EBITDA per yr

Description

2Q15 $0.1M / $1.0M

Flotation of Classifier Slimes

(Sales of ore for concentrate increase)

§  Cu production and recovery improvement projects will reduce unit cost by increasing Cu production and lowering unit opex without major capex commitment

§  We expect cathode production to reach 100 tpd without a significant increase in mining rate. We believe it is reasonable to expect a reduction of C1 cash cost to our LOM target of $1.65/lb

•  Separates screened fines producing coarse leachable sands (2.5 ktpd) and high clay slimes (1.5ktpd) from approximately 4.0 ktpd of screened fines grading 0.40%Tcu. Cu recovery estimated at 80%.

•  Improved recovery from highly altered fines

•  Improved ROM recovery by eliminating fines

•  Increase Cu cathode production by between 5 - 7 tpd

•  Kupari Flotation Plant will recover Cu from classifier slimes

•  Additional sales of ore for concentrate

Intermediate Grade Ore Crushing

(Cathode production increase)

•  Increase crushed ore production by 3- 4 ktpd and reduce p80 to 3/8 inch with estimated 8% recovery improvement

•  Finer crushing of intermediate grade ore and increased tonnage of crush to leach will increase Cu cathode production by 5 tpd by leaching more crushed ore with better kinetics

12  

Significant Opportunity for Low Capex to Achieve Significant Cash Cost Reduction (cont’d)

COBRE DEL MAYO 12  

Reduction of Waste Haul Distance

(Reduce Opex)

Project Benefit Timing Capex / EBITDA per yr

•  Decrease Opex of $3.4M/yr 4Q14 $2.0M / $3.4M

Description

Note: * The engineering, analysis and investment cases for each individual project reflect preliminary estimates which will vary when the respective projects are in stable operation ** Calculations were made considering a copper price of $3.20/lb

Heap Leaching Cleaner Tails

(Cathode production increase & acid production)

•  Increase Cu cathode production by 0.7 tpd ($1.0M/yr)

•  Additional sulphuric acid generation of 90 tpd ($4.0M/yr)

Completed $1.0M / $3.5M

•  Cu and pyrite in cleaner tails purchased from Kupari flotation plant will be leached

Replace SXEW Lead Anodes with Titanium

Anodes (Increase nameplate

capacity & reduce opex)

4Q14 to 2Q15

$3.0M / $1.8M

•  Replacement of lead anodes with titanium anodes reduces power consumption and increases EW capacity

•  Reduce unit electricity consumption by 12% ($0.9M/yr)

•  Elimination of the use of cobalt sulphate ($0.9M/yr)

•  Increase in effective nameplate capacity to 105 tpd

•  Purchase of 400 Ha of adjacent land east of PV for additional waste dumps

13  

COBRE DEL MAYO

Updated 43 – 101 Reserve and Remodel completed in Q3

13   18

Summary Mineral Reserves and Resources

Ore$(kt) Grade$(%) Total$Cu$(t)!!!Ore!to!ROM 211,817 0.18 388,261!!!Ore!to!Crushing 151,375 0.30 454,283!!!Ore!for!Concentrate 57,148 0.51 292,374Proven$&$Probable 420,340 0.27 1,134,918!!!Waste 548,998!!!Strip!Ratio 1.31x

Ore$(kt) Grade$(%) Total$Cu$(t)!!!!!!Measured 304,970 0.26 792,922!!!!!!Indicated! 210,060 0.25 525,150!!!Total!M+I 515,030 0.26 1,318,072!!!Inferred 52,690 0.24 126,456Total$Resource 567,720 0.25 1,444,528

Estimated$Reserves

Resources

§  Updated 43-101 compliant Reserve Report released in August 2014 (published October 13, 2014)

§  Reserve of 1.13 million tons of copper with a mine life of 15+ years

§  Considers both, copper cathode and the sale of ore for copper concentrate

§  Annual average production of ~30 kt/a of copper cathode and 8.2 ktpd of ore for copper concentrate

§  LOM cash costs are estimated at $1.65/lb copper (excluding royalties).

14  

Relevant Agreements and Risk Management

COBRE DEL MAYO 14   16

Copper Cathode

§  Agreement for sale of 100% of PV cathode production to Trafigura expires Dec14. —  Cathode sold FOB at the mine and paid twice weekly against holding certificates

§  Agreement for sale of 100% of 2015 PV cathode production to two internationally renowned, reliable, credit-worthy commodity traders (50% of cathode production to each trader). Both agreements are valid  from  January  1,  2015  through  and  including  December  31,  2015.    

Mining Concessions

§  We have the exclusive right to explore and exploit 31 mining concessions with an initial term of 50 years which terminate between 2043 and 2062 —  26 mining concessions owned by PV —  5 mining concessions owned by Grupo Rexgo. The right to exploit these concessions

is governed by a contract subject to international arbitration §  Royalties: Grupo Rexgo charges PV a 3% net sales royalty for the copper mined from

their underground resource concessions (beneath PV owned land) §  Land Ownership: PV owns all of the land at the mine in addition to a reserve for leach pad

and waste dump expansion

Cathode Hedging Arrangement

§  12 month forward sale agreement from July 2014 to June 2015 —  600 t per month @ a fixed price of $6,870/t (approx. $3.11/lb) —  Cash settlement, no margin

§  8 month forward sale agreement from August 2014 to March 2015 —  1,800 t per month @ a fixed price of $7,130/t (approx. $3.23/lb) —  Cash settlement, no margin

15  

Relevant Agreements and Risk Containment (cont’d)

COBRE DEL MAYO 15   16

Ore for Concentrate

§  CDM sells copper ore to KM to produce copper concentrate —  Purchase Price of Ore: Purchase of the ore is a function of the copper recovered and

the current LME copper price with certain freight, handling and operating charges —  Term: Initial fixed term of 10 years and provides for renewals —  Volume: Since April, 2013, CDM has sold an average of 5,096 tpd with 47 tpd of

copper contained

Mining Tax

§  Mexican government implemented a special duty on mining concessions roughly equivalent to 7.5% of EBITDA starting January, 2014

§  As roughly 95% of CDM ore is derived from Grupo Rexgo mining concessions, tax is payable by the concession holder in respect to its EBITDA

Labor / Environmental

§  Safety, environmental compliance and labor relations are key areas of focus §  Since Invecture’s acquisition, CDM has had a solid safety track record

—  Lowest premium for “Riesgo de Trabajo” (worker risk) as classified by IMSS, demonstrating high safety standards

§  Approx. 414 of our 913 employees are represented by the Confederación de Trabajadores de Mexico (“CTM”) —  No work stoppages in the history of CDM

§  Certified as a Socially Responsible company by the Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) and certified as a Clean Industry by the Mexican Federal Attorney for Environmental Protection (Procuraduría Federal de Protección al Ambiente), the enforcement arm of the Mexican environmental ministry

Insurance Policy

§  Insurance policy coverage for commercial loss/operational stoppage —  Policy underwritten by Royal & SunAlliance with general coverage up to $200 M

II. Industry and Commodity Overview

Jefferies LLC August 2013 /

17

Copper Price Forecasts Over Time

COBRE DEL MAYO 17

§  The market has consistently underestimated the copper price when forecasting long term prices

§  Actual copper prices have been much higher due to continuing shortfalls in supply. Delays in new projects, supply interruption and declining production from existing mines have been the main drivers

18

Copper Historical Price vs. Forecasts

Source: Broker Research 1. With the exception of 2014’s forecast which is as of 13 August 2014

--

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2010

2009

2008

Actual

2010 LT 2009 LT

2008 LT 2007 LT

2006 LT

2005 LT

2004 LT

2003 LT

2002 LT

2001 LT

2000 LT

2011 LT

2011

2012

2014 LT: $2.98 / lb

2012 LT

2014

2013 LT

2013

Long Term Price (as forecast during Q4 of year indicated) (1)

Actual Copper Price Broker Consensus (as forecast during Q4 of year indicated)

Jefferies LLC August 2013 /

18

Incentive Price Drives the Floor Value of Copper

COBRE DEL MAYO 18

n  Investment in large projects is very capital intensive and in increasingly so as head grade declines n  The incentive price required to justify investments in the expansion of existing mines and the construction of new ones

is estimated at $3.50/lb ($7,716/t) —  Incentive price considers required Cu price to achieve specified rate of return on expansion capex(1)

n  Although short term copper prices are unpredictable, we believe that long term prices must be driven by the increase over time of the incentive price (necessary to justify the investment in new production to maintain global output)

18

Incentive Prices for Major Projects

Source: Wood Mackenzie 1.  Analysis based on long term price required to give a 12.0% risk adjusted IRR on a pre-tax 100% equity basis.

c / l

b

Paid Metal (M lbs)

Jefferies LLC August 2013 /

19

Cu Pricing Considerations

COBRE DEL MAYO 19

§  Copper has traded in the market at a premium to the 90th percentile of the C1 cash cost curve

—  C1 cash cost as estimated by Wood Mackenzie

Source: Wood Mackenzie, LME 1. 90th percentile as estimated by Wood Mackenzie. LME prices for 2013 4Q. May, 2014.

C1 90th Percentile Costs1 vs. Cu Price

$1.11 $1.62 $2.57 $2.55 $2.39 $2.64

$1.67

$3.42

$4.00

$3.61 $3.32

$3.17

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

2005 2010 2011 2012 2013 3Q14 LTM

$/lb

C1 Cash Cost 90th Percentile ($/lb) Average Cu Price ($/lb)

III. Operational Environment

21  

Sonora,'79%'

Zacatecas,'10%'

San'Luis'Potosí,'5%'

Others,'6%'

Stable Operating Environment in Mexico1

COBRE DEL MAYO 21  

§  Mexico is an economic leader in Latin America and is the world’s 14th largest economy by GDP (2014E and 2015E real GDP growth of 3.4% and 3.8%, respectively —  High degree of political stability —  OECD/WTO country and member of 12 free trade agreements, including NAFTA —  Mexican Peso has long history of one of the ten most traded global currencies

§  As a result of mining-supportive governmental policies, stability, OECD tax regime and abundance of resources, Mexico has attracted extensive investment from international mining companies —  Over 850 mining companies operate in Mexico; 287 of which have foreign investment, and currently operate

82 producing projects within Mexico —  ~40% of mine production and ~70% of investments in exploration are undertaken by foreign investors

§  Mexico is recognized as a mining friendly jurisdiction —  Largest producer of silver globally (18% of global production) —  3rd largest producer of copper in Latin America (2013E production of 480kt)

§  Sonora is among the most prolific mining areas and one of the safest states in Mexico

26

Total Mining Production in Mexico2

Sonora,'27%'

Zacatecas,'24%'

Chihuahua,'13%'

Coahuila,'8%'

Others,'27%'

2014 Copper Production in Mexico3

Sources: 1 IMF, Brook Hunt, World Bank, U.S. Geological Survey 2 Secretariat of the Economy, 2012 3 National Institute of Statistics & Geography

IV. Historical Financial Performance

23  

Summary Historical Financials

COBRE DEL MAYO 23   34

Total Sales and Realized Cu Price Cathode Produced & Copper Contained in Ore Sold

Operating Costs1 C1 Cash Costs

1. Operating cost exclude: Depreciation & amortization, change in Cu process inventory, ARO amortization, and royalties

29.8

62.6

84.1 83.3 77.3

36.7 43.1

0

20

40

60

80

100

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

tpd

Cathode Production (tpd) Copper contained in ore sold (tpd)

$78.2 $197.7 $238.2 $225.2 $199.3

$26.8 $29.2

$3.28 $3.91 $3.57

$3.31 $3.22

$0.00

$1.00

$2.00

$3.00

$4.00

$0

$75

$150

$225

$300

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

$/lb

$M

Cathode Sales ($M) Sales of Ore ($M) Cu Price ($/lb)

$3.63 $2.69 $2.08 $1.99 $2.23

30

63

84 83 77

0

10

20

30

40

50

60

70

80

90

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

tpd

$/lb

C1 Cash Cost ($/lb) Cathode Production (tpd)

$87.3 $135.6 $141.1 $160.0 $168.2 $0

$20

$40

$60

$80

$100

$120

$140

$160

$180

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

$M

24  

Summary Historical Financials (cont’d)

COBRE DEL MAYO 24   35

Capital Expenditures(1)

EBITDA minus Capex

EBITDA and EBITDA Margin

(1) Capital expenditures encompass the acquisition of property, land and equipment. The acquisition of six CAT 789 trucks in 1Q14 and a  CAT  6050  hydraulic  mining  shovel  in  3Q14  did not have any significant impact on the cash flow.

$26.0 $65.6 $105.7 $92.0 $68.6

33% 33%

44%

37%

30%

0%

10%

20%

30%

40%

50%

$0

$25

$50

$75

$100

$125

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

%

$M

EBITDA ($M) EBITDA Margin (%)

$75.7 $16.1 $31.4 $41.6 $50.1 $0

$10

$20

$30

$40

$50

$60

$70

$80

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

$M

-$49.7

$49.5 $74.3 $50.4 $18.5

-$60

-$40

-$20

$0

$20

$40

$60

$80

$100

FY 2010 FY 2011 FY 2012 FY 2013 3Q14 LTM

$M

V. Conclusion

26  

Conclusion

COBRE DEL MAYO 26   16

Company Ticker Rating YTM1

Source:  Bloomberg  1.  November  28,  2014  

Attractive Yield/Risk Profile vs. Peers: COBREM bonds yield substantially wide of any reasonable comparable

§  Operating mine without new project development risk

§  Favorable logistics and infrastructure

§  Good labour relations

§  Long life of mine of 15+ years

§  Implementing low capex program to achieve a significant reduction in C1 cash costs

§  Reasonable leverage, very strong credit metrics by comparison with other B/B3 rated companies

Comparable Issuers:

Hudbay HBMCN 9½ (1Oct20) B3/B 8.6%

Taseko Mines TKOCN 7¾ (15Apr19) B3/B 9.4%

Thompson Creek TCMCN 9¾ (1Dec17) B1/B 7.0%

Cobre del Mayo COBREM 10¾ (15Nov18) B3/B 10.6%

Thompson Creek TCMCN 7⅜ (1Jun18) Caa2/CCC- 10.3%

Thompson Creek TCMCN 12½ (1May19) Caa2/CCC- 10.4%