Peruvian Mining

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PERUMining Sector

Febrary, 2013

STRATEGIC STRATEGIC LOCATIONLOCATION

PERUPERU

ASIA

OCEANIA

PACIFICOCEAN

ATLANTICOCEAN• Australia

• China *• South Korea *• Malaysia• Singapore *• Thailand• Japan

• Canada *• United States *• Mexico*

• Cuba• El Salvador

• Argentina• Bolivia• Chile **• Colombia

• Ecuador• Paraguay• Venezuela

• Germany• Begium & Luxembourg• Denmark• Spain• Finland• France• Netherlands• Italy• Norway• Portugal• United Kingdom• Czech Republic• Romania • Sweden• Switzerland

Peru has signed Peru has signed Bilateral Investment Bilateral Investment Treaties and Free Treaties and Free Trade Agreements, Trade Agreements, which consolidate which consolidate our policy of our policy of openness. Moreover, openness. Moreover, Peru has signed Peru has signed Double Taxation Double Taxation Agreements with Agreements with Brasil, Chile and Brasil, Chile and Canada. Canada.

Located right in the middle of South America and the World, Peru has an strategic 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. 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 Also, as a member of the Asia-Pacific Economic Cooperation (APEC) and the Andean Community enjoys the advantages of being integrated to these markets.Andean Community enjoys the advantages of being integrated to these markets.

* FTA

MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS

LEGAL STABILITYLEGAL STABILITYFOR INVESTORS FOR INVESTORS

INVESTMENTINVESTMENTGRADEGRADE

PERU IN WORLD MINERAL PERU IN WORLD MINERAL PRODUCTION RANKINGSPRODUCTION RANKINGS

Peru is the largest Peru is the largest producer of gold, zinc, tin producer of gold, zinc, tin and lead in Latin America.and lead in Latin America.

Worldwide is the third Worldwide is the third largest producer of copper, largest producer of copper, silver, zinc and tin.silver, zinc and tin.

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-

MINING AND MINING AND PERUVIAN EXPORTSPERUVIAN EXPORTS

Metallic and nonmetallic Metallic and nonmetallic minerals represent almost minerals represent almost

65% of total Peruvian exports.65% of total Peruvian exports.

In the last years, Peruvian mining exports In the last years, Peruvian mining exports have increased eight times its value, and have increased eight times its value, and together represent over 65% of its total together represent over 65% of its total

exports.exports.

In its wide polymetallic and non metallic In its wide polymetallic and non metallic range, copper and gold are products that range, copper and gold are products that

lead peruvian exports.lead peruvian exports.

COPPERCOPPER

GOLDGOLD

LEADLEAD

ZINCZINC

IRONIRONTINTIN

MINING MINING INVESTMENTINVESTMENT

Source: Ministry of Energy and Mines Peru

The notable increase in mining investment in The notable increase in mining investment in Peru has lead to an historical record the year Peru has lead to an historical record the year 2012: more than US$ 8,500 millions, most of 2012: more than US$ 8,500 millions, most of

which was invested in infrastructure, which was invested in infrastructure, production and exploration.production and exploration.

MINING MINING INVESTMENTINVESTMENT

Source: Ministry of Energy and Mines Peru

MINING EXPLORATIONS INVESTMENTS (US$ MILLION)

/1

There are about 400 mining units under There are about 400 mining units under exploration and some more in early exploration and some more in early

prospecting. Exploration investments in Peru prospecting. Exploration investments in Peru have sustained its growth for over six years have sustained its growth for over six years

and the last four year it has shown significant and the last four year it has shown significant development.development.

Peru remains among the first investment Peru remains among the first investment destinations for exploration budgets destinations for exploration budgets

worldwide.worldwide.

ESTIMATED INVESTMENT PORTFOLIO: ESTIMATED INVESTMENT PORTFOLIO: TOP MINING PROJECTSTOP MINING PROJECTS

ESTIMATED ESTIMATED PORTFOLIO OF PORTFOLIO OF INVESTMENT INVESTMENT PROJECTSPROJECTS::

US$ 54,680 MillionsUS$ 54,680 Millions

The estimated The estimated portfolio portfolio includes includes important important

Expansions Expansions and New and New Projects, Projects,

mainly copper, mainly copper, gold, zinc, and gold, zinc, and

others.others.

The estimated portfolio The estimated portfolio includes important includes important

Expansions and New Expansions and New Projects, mainly copper, gold, Projects, mainly copper, gold,

zinc, and others.zinc, and others.

US$ Millions

EXPANSION 9,058

WITH APPROVED EIA 17,963

UNDER EXPLORATION 23,713

TOTAL 54,680

63.9% estimated portfolio correspond to copper projects

US$ 34,937 million

The operation of these projects next triple domestic production Current copper

Peru is the third largest producer of copper and second in reserves

worldwide

MEGAPROJECTS COPPERWITH AN INVESTMENT OF:

COPPER PROJECTSCOPPER PROJECTS

13.35% estimated portfolio correspond to gold projects

US$ 7,302 million

Peru is the largest gold producer in LATIN AMERICA

MEGAPROJECTS GOLDWITH AN INVESTMENT OF:

GOLD PROJECTSGOLD PROJECTS

SAN LUIS Ancash

RONDONI

PALLANCA

CORANICATANGA ESTEINMACULADA

CHAQUELLE

Huánuco

Junín

Cusco

Arequipa

Ayacucho

Puno

1.88% estimated portfolio correspond to silver projects

US$ 1,026 million MEGAPROJECTS SILVER

WITH AN INVESTMENT OF:

SILVER PROJECTSSILVER PROJECTS

12.40% estimated portfolio correspond to iron projects

US$ 6,780 million MEGAPROJECTS IRON,

WITH AN INVESTMENT OF:

IRON PROJECTSIRON PROJECTS

MODERN MINING IN PERUMODERN MINING IN PERU

INVESTOR

COMMUNITY STATE

WAT

ERAGRICULTURE

MINING

SUSTAINABLE DEVELOPMENT

PROJECT SUSTAINABLEDEVELOPMENT

The state came from the beginning

Derecho de Vigencia y PenalidadRegalía Minera

Aranceles e ISC

Fideicomisos Sociales

Canon Minero Impuestos y Tributos

Fondo Empleo

Empleo Directo Local, regional y nacional

Compras Locales y nacionalesApoyo a la Producción

Empleo IndirectoPrograma de Desarrollo Sostenible

MODERN MINING WITH SOCIAL MODERN MINING WITH SOCIAL ENVIRONMENTAL RESPONSIBILITYENVIRONMENTAL RESPONSIBILITY

Aporte Voluntario

Estándares Nacionales

Legislación minera - ambiental

Sistemas de Gestión AmbientalEstándares Internacionales

Respeto al ambienteEstudios ambientales Rigurosos

AMBIENTAL

Innovación tecnológica

Aporte Voluntario

SOCIAL

ECONÓMICA

We promote a sustainable mining We promote a sustainable mining development in three areas: development in three areas:

economic, social and economic, social and environmental.environmental.

We promote a continuous dialogue We promote a continuous dialogue with the communities with the aim with the communities with the aim of achieving socio-environmental of achieving socio-environmental agreements and licenses and the agreements and licenses and the strict accomplishment of all the strict accomplishment of all the international standards in force.international standards in force.

from the Mining Investor?What do we expect

• Productive investment, non-speculative

• Environmental excellence

• Social Responsibility excellence•We expect modern businessmen, integrated to the community and

compromised with its development.

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Peruvian Mining

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