THE STATE OF ZACATECAS, MEXICO

1

ZACATECASZacatecas is a state with much to offer. Its capital city is one of the most beautiful colonial cities inMexico. Thanks to its history and architecture, the UNESCO declared it aWorld Heritage Site.

Countless historical cultural buildings can be found along the city’s European-style urban layout innarrow streets, alleys and squares.

Its main economic activities are: mining, manufacturing industry, agriculture, and tourism. The stateis known for its large ore 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 highwayinfrastructure of 11,842 km.; a railway network of 674.89Km and one international airport.

2

GENERAL INFORMATION

GENERAL INFORMATION

MUNICIPALITIES 58

8,189 ft

TIMEUTC-6, in Summer

UTC-5, Central Time

WEATHER Mainly dry

TEMPERATURE 17 º C average (annually)

ALTITUDE ABOVE SEA

LEVEL (for Zacatecas city)Mexico

UNITED STATES OF AMERICA

Zacatecas

Pacific Ocean

Zacatecas has a surface of 75,539 km2 , equivalent to the 3.8% of the total surface of thecountry, 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

SOURCE: Compilation from own elaboration of the State Ministry of Economy, based on the figures provided by INEGI.

§ 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.

1

2

3

45

6

8

7

3

STATE GROSS DOMESTIC PRODUCT (GDP) 4:

FOREIGN DIRECT INVESTMENT (FDI) IN THE STATE5:

POPULATIONTOTAL POPULATION OF THE STATE1 1,490,668 inhab.

EAP (ECONOMICALLY ACTIVE POPULATION) 2 644,993 inhab.

AVERAGE AGE3 26 YEARS

$197,171 million MXP(1 % of the National GDP)

$11,288 billion USD

Economic Data

SOURCE: 1Compiled from own elaboration of the State Ministry of Economy, based on the figures provided by INEGI from Intercensus Survey from INEGI 2015.2, 3Compiled from own elaboration of the State Ministry of Economy, based on the data provided by the National Survey of Occupancy and Employment 4th Trimester 2018 INEGI4Compiled from data of the System of National Records, millions of MXP pesos in current prices in Dic 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) Februry 2018

4

Zacatecas Direct Investment Foreign

¹ Source: FDI quart676.7erly by secor, sub-sector, branch, sub-branch and class 21 mining : https://www.gob.mx/se/acciones-y-programas/competitividad-y-normatividad-inversion-extranjera-directa?state=published measured unit in millions of dollars.² Numbers to the third quarter of 2018

The mining production of the state is carried out by 17 mining units which concentrate 11 companies, among the main ones we have the following:

Mining Companies

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Mill

ions

of d

olla

rsYear 1999-2018

México - Zacatecas, Foreign Direct Investment Mining 1999-2018New investments and Reinvesting of utilities

México Zacatecas

Year México Zacatecas %Total 1999-2018 27,823 7,742.4 27.9

1999 228.2 14.8 6.52000 183.1 24.8 13.62001 50.0 1.0 2.02002 274.3 136.8 49.92003 142.2 31.0 21.82004 348.5 113.4 32.52005 350.6 10.3 2.92006 404.9 13.1 3.22007 1,852.4 751.6 40.62008 4,543.0 1,692.2 37.22009 1,508.8 196.1 13.02010 1,386.8 307.5 22.22011 1,090.7 42.0 3.92012 3,075.7 707.9 23.02013 5,588.6 2,561.2 45.82014 2,449.9 533.7 21.82015 1,620.1 121.3 7.52016 1,150.5 163.1 14.22017 1,122.8 252.7 22.52018² 1451.9 76.7 5.3

5

DYNAMICS OF THE ECONOMIC SECTORS OF THE STATE, YEAR 2017,

GDP %

Economic Data

Source: Compiled from own elaboration of theState Ministry of Economy, based on thefigures and data provided by the National Accounts System, at current process of base year 2013, INEGI 6

16.8

14.5

10.2 10.1 9.88.6

Mining Services forcampanies,

generalpopulationhouseholds

ManufacturingIndustries

Agriculture,Livestock,Forestry

&Hunting

Retail Construction

mill

ion

MXP

Mining

Services for campanies, general populationhouseholdsManufacturing Industries

Agriculture, Livestock, Forestry &Hunting

ü State Government support for: - Suppliers’ development- Small miners’ development

ü Privileged location and modern infrastructureü Stable labor forceü Pro-business environmentü Government commitment to maintain

favorable conditions for the competitiveness of companies.

ü Easy access to national and international marketsü Mining Cluster of Zacatecasü Quantum, City of Knowledgeü Government State commitment

for labour force developmentü Availability of renewable energiesü Satellite Internet

Competitive Advantages

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VERACRUZ, VER 1,033 KM

MAZATLAN, SIN

MANZANILLO, COL

ALTAMIRA, TAMPS

598 KM

640 KM

618 KM

PORTS

REYNOSA, TAMPS 662 KM

BORDERS

LOS ANGELES, CA 2,542 KM

CHICAGO, IL 2,588 KM

CD. MEXICO (DF) 626 KM

TIJUANA, B. C. 2,249 KM

CONNECTIVITY

MEXICO CITY

GUADALAJARA

626 KM

327 KM

DISTANCES TO:

AGUASCALIENTES 125 KM

MONTERREY 455 KM

TIJUANA, B. C. 2,249 KM

ü Very competitivedistribution service cost.

NVO. LAREDO, TAMPS 657KM

CD. JUAREZ, CHIH. 1,205 KM

LÁZARO CÁRDENAS, MICH 750 KM

LÁZARO CÁRDENAS, MICH.650 KM.

Privileged Location

REYNOSA, TAMPS 662 KM

BORDERS WITH USA

TIJUANA, B. C. 2,249 KM

NVO. LAREDO, TAMPS 657KM

CD. JUAREZ, CHIH. 1,205 KM

MATAMOROS, TAMPS. 750 KM

ALTAMIRA618 Km

VERACRUZ, VER 1,033 KM

MAZATLAN, SIN

MANZANILLO, COL

ALTAMIRA, TAMPS

598 KM

640 KM

618 KM

LOS ANGELES, CA 2,542 KM

CHICAGO, IL 2,588 KM

CD. MEXICO (DF) 626 KM

TIJUANA, B. C. 2,249 KM

CONNECTIVITY

CD. MÉXICO

GUADALAJARA

626 KM

327 KM

DISTANCES TO:

AGUASCALIENTES 125 KM

MONTERREY 455 KM

LÁZARO CÁRDENAS, MICH 750 KM

ALTAMIRA618 KmREYNOSA, TAMPS 662 KM

TIJUANA, B. C. 2,249 KM

NVO. LAREDO, TAMPS 657KM

CD. JUAREZ, CHIH. 1,205 KM

MATAMOROS, TAMPS. 750 KM

SAN LUIS POTOSÍ 170 KM

S.L.P170 KM.

SAN JOSÉ, CALIF. 3,040 KM

DALLAS, TEXAS. 1,361 KM

DALLAS 1361 KM.

-SAN JOSÉ 3040 KM.

SILAO, GTO. 328 KM

QUERETARO 412 KM LAREDO, TEXAS. 678 KM

QUERETARO 412 KM.

SILAO, GTO 328 KM.

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ü Direct domestic flights to Mexico City(AeroMexico/Viva Aerobus); Tijuana(Volaris).

ü International non-stop flights to Dallas, Texas (American Airlines); Los Angeles, California, San José, California and Chicago, Illinois (Volaris).

ZACATECASInternational Airport

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Zacatecas has an International Airport located at 23 km. from the capital city. 29 km. from Guadalupe and 36 km. from Fresnillo.

INTERNATIONAL AND DOMESTIC FLIGHTS

Privileged Location

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WORLD CLASS EDUCATION:Zacatecas State Government is the

development of its local talent and the growth of their skills and abilities.

52,205 ENROLLED STUDENTSIN PROFESSIONAL LEVEL

52 UNIVERSITIES, TECHNICALAND HIGHER

EDUCATION SYSTEMS

Human Capital

UNIVERSIDAD AUTÓNOMA DE ZACATECAS(UAZ)

INSTITUTO TECNOLÓGICO DE ZACATECAS (ITZ)

ITESM – TEC DE MONTERREY CAMPUS ZACATECAS

UNIVERSIDAD DE LA VERA-CRUZ (UNIVER)UNIVERSIDAD INTERAMERICANA PARAEL DESARROLLO (UNID)UNIVERSIDAD POLITÉCNICA DE ZACATECAS (UPZ)UNIVERSIDAD DEL DESARROLLO PROFESIONAL (UNIDEP)UNIVERSIDAD AUTÓNOMA DE DURANGO(UAD)

INSTITUTO POLITÉCNICO NACIONAL (IPN)

UNIVERSIDAD TECNOLÓGICA DEL ESTADODE ZACATECAS (UTEZ)COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA (CONALEP)

11

EDUCATION INSTITUTIONS

12

MUNICIPALITY EDUCATION INSTITUTIONS OF TECHNICAL AND SUPERIOR LEVEL STUDENTSTRANCOSO COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 823

CBTIS - CENTRO DE BACHILLERATO TECNOLOGICO INDUSTRIAL Y DE SERVICIOSITESM - 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-CRUZUTEZAC - UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS

ITSZ - INSTITUTO TECNOLÓGICO SUPERIOR DE ZACATECASUAZ - UNIVERSIDAD AUTÓNOMA DE ZACATECAS

IPN - INSTITUTO POLITÉCNICO NACIONALUAD - UNIVERSIDAD AUTÓNOMA DE DURANGO

CIMAT - CENTRO DE INVESTIGACIÓN EN MATEMÁTICASCOBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS

ITESM – INSTITUTO TECNOLOGICO Y DE ESTUDIOS SUPERIORES DE MONTERREYCONALEP – COLEGIO NACIONAL DE EDUCACIÓN PROFESIONAL TÉCNICA

UNID - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO UNIVER - UNIVERSIDAD DE LA VERA-CRUZ

UTEZAC - UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECASMORELOS COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 391

CALERA CECYTEZ - COLEGIO DE ESTUDIOS CIENTÍFICOS Y TECNOLÓGICOS DEL ESTADO DE ZACATECAS 1756GRAL. ENRIQUE ESTRADA COBAEZ - COLEGIO DE BACHILLERES DEL ESTADO DE ZACATECAS 1,472

ITSF - INSTITUTO TECNOLÓGICO SUPERIOR DE FRESNILLOUPZ - UNIVERSIDAD POLITECNICA DE ZACATECAS UNID-FRESNILLO - UNIVERSIDAD INTERAMERICANA PARA EL DESARROLLO

UAD-FRESNILLO UNIVERSIDAD AUTÓNOMA DE DURANGO SEDE FRESNILLOUAF - UNIVERSIDAD AUTÓNOMA DE FRESNILLO

COLEGIO DE BACHILLERESCOLEGIO DE BACHILLERES PLANTEL CHAPARROSA

CENTRO DE BACHILLERATO TECNOLOGICOS INDUSTRIAL Y DE SERVICIOS NUM. 104INSTITUTO TECNOLOGICO SUPERIOR DE ZACATECAS OCCIDENTE

CENTRO DE BACHILLERATO TECNOLOGICO AGROPECUARIO NUM. 88COLEGIO DE BACHILLERES OJOCALIENTE

PLANTEL CONALEP 326 MAZAPILCENTRO DE SERVICIOS DE EDUCACION MEDIA SUPERIOR A DISTANCIA

TLEBACHILLERATO COMUNITARIO PLANTEL TERMINALPLANTEL CONALEP 326 MAZAPIL

CENTRO DE SERVICIOS DE EDUCACION MEDIA SUPERIOR A DISTANCIATLEBACHILLERATO COMUNITARIO PLANTEL TERMINAL

COLEGIO DE BACHILLERESTELEBACHILLERATO COMUNITARIO DE PLANTEL JOSE MARIA MORELOS

CONCEPCIÓN DEL ORO CENTRO DE BACHILLERATO TECNOLOGICOS INDUSTRIAL Y DE SERVICIOS NUM. 221 473

TOTAL 40 87,928

GUADALUPE 13,898

ZACATECAS 45,552

FRESNILLO 14,489

1,462VILLA DE COS

3,311SOMBRERETE

CHALCHIHUITES 363

OJOCALIENTE 1,810

MIGUEL AUZA 583

626MAZAPIL

ACADEMIC PROGRAMS RELATED TO MINING ACTIVITY – HIGH LEVEL

13SOURCE: Ministry of Education (SEDUZAC), Analysis and Dissemination, Dept. of Statistics at the beginning of the 2017-2018

UNIVERSITY MUNICIPALITY ACADEMIC PROGRAM GRADUATES 2017-2018

NEW COME STUDENTS 2018-2019

REGISTRED STUDENTS 2018-2019

UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS GUADALUPE

MINNING ENGINEERING 98 0 170SUPERIOR TECHNICIAN IN MINING 50 60 110

INSTITUTO TECNOLÓGICO SUPERIOR DE ZACATECAS OCCIDENTE SOMBRERETE UNIVERSITY SUPERIOR TECHNIQUE 22 42 140

INSTITUTO TECNOLÓGICO SUPERIOR DE FRESNILLO FRESNILLO ENVIRONMENTAL ENGINEERING 11 19 87

MINNING ENGINEERING 58 95 393UNIVERSIDAD AUTONOMA DE

ZACATECAS UNIDAD ACADEMICA DE CIENCIAS DE

LA TIERRAZACATECAS

GEOLOGIST 30 24 160MINNING – METALURGICAL ENGINEERING 61 62 336

ENVIRONMENTAL SCIENCES 32 33 131UNIDAD PROFESIONAL

INTERDISCIPLINARIA DE INGENIERIA CAMPUS ZACATECAS DEL INSTITUTO

POLITECNICO NACIONALZACATECAS ENVIRONMENTAL ENGINEERING 30 67 218

METALURGICAL ENGINEERING 15 38 111

UNIVERSIDAD AUTONOMA DE ZACATECAS

INSTITUTO DE INVESTIGACION PARA LAS CIENCIAS AMBIENTALES

ZACATECAS

ENVIRONMENTAL ENGINEERING 1 0 2ENGINEERING ENVIRONMENTAL ARCHITECTURE 0 0 2

ENGINEERING BIOECOLOGY 0 0 2FORESTRY AND SOIL ENGINEERING 0 1 2

INSTITUTO UNIVERSITARIO DE POSGRADOS EN ALTA DIRECCION ZACATECAS VALUATION AND ENVIRONMENTAL

IMPACT DIPLOMA 11 8 8

UNIVERSIDAD AUTONOMA DE FRESNILLO FRESNILLO ADMINISTRATION AND MINING

ECONOMY MASTER DEGREE 3 10 19

TOTAL 422 459 1,891

ACADEMIC PROGRAMS RELATED TO MINING ACTIVITY – TECHNICAL LEVEL

14

SOURCE: Ministry of Education (SEDUZAC), Analysis and Dissemination, Dept. of Statistics at the beginning of the 2017-2018

UNIVERSITY MUNICIPALITY ACADEMIC PROGRAM GRADUATES 2017-2018

NEW COME STUDENTS 2018-2019

REGISTRED STUDENTS 2018-2019

UNIVERSIDAD TECNOLÓGICA DEL ESTADO DE ZACATECAS GUADALUPE SUPERIOR TECHNICIAN IN MINING 77 57 136

INSTITUTO TECNOLÓGICO SUPERIOR DE ZACATECAS OCCIDENTE SOMBRERETE SUPERIOR TECHNICIAN IN MINING 36 41 140

CENTRO DE BACHILLERATO TECNOLOGICOS INDUSTRIAL Y DE

SERVICIOS NUM. 1FRESNILLO SUPERIOR TECHNICIAN IN MINING 52 0 96

TOTAL 165 98 372

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: FEB, 2019₃ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the National Survey of Occupancy and Employment (ENOE-ITER) INEGI, FEB, 201₄ Source: Compiled from own elaboration of State Ministry of Economy, based on data of the IMSS total registered insured employees by municipality, Junuary 2019

MINING CORRIDOR

MUNICIPALITY INHABITANTS ₁ ECONOMICALLY ACTIVE POPULATION ₂

WORKES REGISTERED BEFORE IMSS

(MEXICAN SOCIAL SECURITY SYSTEM) ₄

1 VETAGRANDE 9,353 3,192 4692 OJOCALIENTE 40,740 13,069 4,4343 MIGUEL AUZA 22,296 7,729 2,3854 CONCEPCION DEL ORO 12,803 4,680 1,120

5 GENERAL PANFILO NATERA

22,346 6,721 616

6 ZACATECAS 138,176 57,621 50,4857 MORELOS 11,493 4,153 4,5578 MAZAPIL 17,813 6,014 8,1199 SOMBRERETE 61,188 21,113 4,736

10 FRESNILLO 213,139 77,688 37,90911 CHALCHIHUITES 10,565 3,372 1,904

TOTAL 559,912 186,222 116,734

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Investment Opportunities

STRATEGIC SECTORS

METAL-MECHANICAL: AUTOPARTS AND AEROSPACE

RENEWABLE ENERGIES

INFORMATION TECHNOLOGIES

MINING AND METALLURGICAL INDUSTRY

AGRIBUSINESS

TOURISM AND RELATED SERVICES

16

Quantum City of Knowledge is a space for promoting the scientific and technological development of theregion, under a paradigm of continuous innovation, in which research centers, laboratories, technology transferoffices, governmental and private institutions are set up to enhance the economic growth of the State. Theobjective is to make concur, in a determined territory for that purpose, instances that promote an economy ofknowledge under a model known as the triple helix (Government, academy and companies).

First stage 49,500.00 m2

1.- Lotification of 13 properties 30,971.82 m2

2.- Main square ( 42 bedding y 81 benches)3.- 76 Parking boxes 1,310.62 m2

4.- Accesses 6,300.54m2

5.- Green areas 1,149.42m2

6.- Roads 9,385.22m2

7.- Vehicular lower bridge8.- Reforestation of 5,000 trees9.- 3 Gabion walls in river to retain soilSecond stage 149,938.07 m2

1.- Lotification of 32 properties 119,997.20 m2

2.- Main square( 60 bedding y 110 benches)

3.- 72 Parking boxes 1,155.93 m2

4.- Accesses 10,931.64m2

5.- Green areas 981.10m2

6.- Roads 16,872.20m2

7.- Bridge connection to the first stage8.- Reforestation of 3,000 trees

Third stage 56,144.28 m2

1.- Lotification of 8 properties 40,819.13 m2

2.- Main square ( 40 bedding y 70 benches)

3.- 50 Parking boxes 1,155.93 m2

4.- Accesses 5,699.54m2

5.- Green areas 3207.70m2

6.- Roads 5,472.23m2

7.- Bridge connection to the second stage

8.- Reforestation of 3,000 trees

1 First stageSurface:

49,500.00 m2

2 Second stageSurface:

149,938.07 m2

3 Third stageSurface:

56,144.28 m2

QUANTUM

Building of Research Centers, First Stage

Advances as of December 31

FriscoMetallurgyResearchCenter

100%

6215

CIMAT 98% 3000

Lasec 65% 5231

Compulogic 70% 2875

Servimolina 10% 935Maya Productions 55% 1353

IMSS 0% 2321Coworking Space (1st Stage)

95% 2536Mexican SpaceAgency

0% 2461

MetallurgyLaboratories IPN

0%1423

LandAream

2

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MINING IN ZACATECAS

18

Zacatecas is the 2ndmining producer in Mexico,and the 1st silver producer in the world.

19

MINING IN ZACATECAS

Source: Own compilation based on administrative records of the Mining Department of the Ministry of Economy, updated February 2018

COMPANY MINING UNIT MUNICIPALITY PRINCIPAL PRODUCTS

18 BESMER GUALTERIO

20

RANK COMPANY DEALERS No. OF CONCESSIONS AREA GRANTED (Has) SUM BY GROUP

1 GRUPO MEXICO INDUSTRIAL MINERA MEXICO S.A DE C.V. 255 28958.79 28958.792 PEÑOLES COMPAÑÍA MINERA LA PARREÑA S.A. DE C. 67 127978.39

PEÑOLES MET-MEX PEÑOLES S.A DE C.V. 17 718.88PEÑOLES CIA MINERA SABINAS 16 4740.64 133437.91

3 FRESNILLO COMPAÑÍA FRESNILLO S.A. DE C.V. 53 162307.65 162307.654 FRISCO MINERA TAYAHUA S.A. DE C.V. 65 29468.5

FRISCO MINERA REAL DE ANGELES S.A. DE C.V. 37 21830.41 51298.91

5PANAMERICAN

SILVERPLATA PANAMERICANA S.A. DE C.V. 40 4311.49 4311.49

6 GOLDCORP MINERA PEÑASQUITO 17 34292.71 34292.717 CAPSTONE GOLD COZAMIN S.A. DE C.V. 10 368.39

CAPSTONE GOLD CAPSTONE GOLD S.A DE C.V 6 47.42 415.81

MINING CONCESSIONS IN ZACATECAS

Year Area (Has) Number of Concessions % of área available2017 1,679,458.78 2263 22.31

Surface claimed

Surface available

22.31

77.69

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EXPLORATION MINING PROJECTS IN ZACATECAS

In 18 municipalities : Zacatecas, Mazapil, Morelos, Sombrerete, Chalchihuites, Concepción del Oro, Jiménez del Teúl, Villa de Cos, Pánfilo Natera, Fresnillo, Melchor Ocampo, El Salvador, Noria de Angeles , Vetagrande, Cañitas, Villa Gárcia, Ojocaliente, Pinos, Villa Hidalgo, General F. Murguia, Rio Grande, Miguel Auza, Trancoso, Sain Alto, Jerez, Calera, Jalpa y Tabasco.

Main minerals: Gold, Silver, Copper, Lead, Zinc, Barite, Manganese, Litium, and Antimony.

22

PROJECTS116

Promoted by the Ministry of Economy of Zacatecas

AVAILABLE MINING PROJECTS

39PROJECTS

In 18 municipalities: Juchipila, Pinos, Panuco, Valparaiso, Villa de Coss, Genaro Codina, T. García de la Cadena, Rio Grande, Sombrerete, Fresnillo, Ojocaliente, El Salvador, Mazapil, Francisco R. Murguia, Villanueva, Jerez, Tepechitlan y Trancoso.

Main minerals: Gold, Silver, Copper, Lead, Zinc, Manganese, and Iron.

23

SUPPLIERS DEVELOPMENT

Zacatecas has the support of specialized supplier companies for the mining sector, some ofthe mining suppliers are located in the Airport Industrial Park and the Industrial Park inFresnillo.

24

MINING CLUSTER OF ZACATECAS

The Mining Cluster of Zacatecas, is a non-profit civil association formed by miningindustrial and supplier companies fromZacatecas and Central Mexico, academicinstitutions and governmental institutions.

Its purpose is to strengthen the miningindustry through joint work for thedevelopment of its supply chain, innovationin its processes, an increase in industrialsafety, the development of its human capitalas well as the attraction of suppliers toZacatecas and Central Mexico.

Date of establishment: September 12, 2012.1st Mining Cluster in Mexico

General Objective of the MiningCluster:

• The strengthening of the metal-mining industry in Zacatecas andcentral Mexico, through jointwork between mining companies,suppliers, State Government ofZacatecas and academicinstitutions.

25

7 Mining groups:

2 Government:

2 Academic institutions:

3 Supply companies:

MINING CLUSTER OF ZACATECAS

The Cluster's Board of Directors is made up of fourteen members:

26

COMPATIBLE MINING CENTER

Its main objective is: To design,build, equip and set into operationsthe Research and DevelopmentCenter of Technology andCompatibility of the mining sector,focsued mainly on the health áreas,including security for the workers,environmental care, and miningoperations in the State of Zacatecas.

● This proposal was integrated with the objective that the 46 organizations that form partof this cluster, collaborate jointly in this project, along with 17 experts in this field.

This is a proposal from the Mining Cluster of Zacatecas, as a response to the growing demand ofservices and suppliers, supported by the “Consejo Zacatecano de Ciencias y Tecnologias”Zacatecas Council of Science and Technology (COZCYT) as well as the “CONACYT”, National Councilof Science and Technology.

COMPATIBLE MINING CENTER

28

• Sustainable Mining Center will increase the competitiveadvantages, promoting an open dialogue with thecommunities, which must take place since the initialstages of exploration and development, this will reducethe risk of the projects, as well as provide value to theassets.

• With the support of the involved communities in the careof the environment, this brings along the riskminimization of operations stoppage; also, operationalcontinuity is assured, along with labor stability and thegeneration of profit.

IMMEDIATE GOALS

COMPATIBLE MINING CENTER

29

StarGo is a company from Zacatecas and the only supplier in Mexico that offers high-speedsatellite Internet through the last generation of technology for residential customers,Mining Industries, SMEs, Corporations and Government Entities.

ADVANTAGE

ü Quickü Accessible costü 24/7 Technical Supportü Latest technologyü Satellite equipment at no cost

Satellite Internet

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Renewable Energy Projects

NO. COMPANY PROJECT MUNICIPALITYTYPE OF ENERGY

PRODUCTION

PRODUCTION CAPACITY

1 BlackRock México La Bufa Wind (In operation)Zacatecas y Guadalupe

Eolic 130 MW

2Vientos del Altiplano (In

operation)Mazapil y Villa

de Cos Eolic 100 MW

3Parque Solar Palma Loca (In

project).Mazapil SPV 399.7 MW

4 Aldesa Industrial Parque Eólico Pinos (In project). Pinos Eolic 30 MW

5Parque Eólico Mazapil (In

project)Mazapil Eolic 304 MW

6 Eólica Cerritos Pinos (In project) Pinos Eolic 75 MW

7 Reden SolarAldebaran Solar Project (In

construction)Villa de Cos SPV 15 MW

8 Helios Generación (In project) Mazapil SPV 150 MW9 Tuli Energía (In project) Mazapil SPV 150 MW

10Mitsui & Co

(MPA)Parque Solar Fotovoltaico Calera

(In project)Calera SPV 80.3 MW

11Recursos Solares

PV de MéxicoParque Solar Pinos (In proyect) Pinos SPV 297 MW

Enel Green Power

Eoliatec / Vestas

Cemex Energía

31

Zacatecas has a privileged location that allows an optimal development of Eolic and SPV Parks.

Gas Pipeline - La Laguna Aguascalientes

Municipalities of the State of ZacatecasLength

(kilometers)

Juan Aldama 26.07Gral. Francisco R. Murgia 44.98

Río Grande 35.53Cañitas de Felipe 11.54

Fresnillo 49.89Panuco 25.47

Veta Grande 6.28Guadalupe 10.89Trancoso 7.57

Ojocaliente 14.48Cuauhtemoc 5.89

Luis Moya 9.78TOTAL 248.37

The gas pipeline originates in Texas and willhelp meet the natural gas requirements ofthe states of Durango, Zacatecas andAguascalientes.

The diameter of the pipeline is 42 inches,transporting 1,150 million cubic feet per day.

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Mexico´s Mining Industry• 2.9% of the National GDP to year 2016

• $29,222 million pesos of contributions to income tax to

year 2016.

• $15,601 million dollars in exports to year 2016.

• 354,702 direct jobs and 1,773,500 indirect jobs by 2016

• 23 States with mining activity.

• 5 States with the highest mining activity in Mexico:

Source: Based on data from the statistical project called "GDP - Activity of Goods and Services, annual since 2003 (detailed)", activity 212 - Mining of metallic and non-metallic minerals, except oil and gas, INEGI.

System of National Accounts of Mexico. Account of Goods and Services. Base Year 2013. Series (detailed) 2003-2016. 2016 preliminary, consultation date February 20, 2018

http://www.inegi.org.mx/est/contenidos/proyectos/cn/bs/tabulados.aspx

Source: Mining Public Policy Report, section I. Financial Situation, page 5 clause c) third, author Christopher Ávila Mier, CAMIMEX, consultation date February 20, 2018

Source: Based on data from the Economic Information Bank (BIE), External Sector> Merchandise exports by state, sector and subsector of SCIAN activity> 212 Mining of metallic and non-metallic minerals, except

oil and gas (Periodicity: Annual), http : //www.inegi.org.mx/sistemas/bie/BuildAllItemsList.aspx? idNodo = 11000470 & schema = & w = 1755 & h = 810, query date February 20, 2018 Mining Public Policy Report,

section I. Financial Situation, page 5 subsection c) second, author Christopher Ávila Mier, CAMIMEX, consultation date February 20, 2018

New Tematic Agenda (considerations):• Management of the Mining Industry

• Reconciling the Mining Activity with the 2030 Agenda

• Mining as a Strategic Sector

• Collaboration between the actors that are involved in the Mining Industry

• Presence of Mining in the National Panorama

Zacatecas state Governor Alejandro Tello Cristerna is the head of the Governor´s National Conference

Mining Comission (since: February 12, 2018)

Sonora 33.27% Coahuila 7.61%Durango 7.94%Chihuahua 9.90%Zacatecas19.31%

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New Tematic Agenda

Focus 1 Main actions

EconomicDevelopment

Facilitating government incentives for explorationFinancing FundsMining / Technology clusterSupplier chains / Schemes for equipmentPromote the partnership between companies

Focus 2 Main actions

Social InclusionCommunity needs analysis spacesBetter orientation and application of money from the Mining FundGreater linkage between higher education and communities

Focus 3 Main actions

Environmentalsustainability

Adoption of avant-garde sustainable practicesFacilitate academic research with environmental needs in mining localities

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Zacatecas, YourStrategic Partner

CARLOS BÁRCENA POUSMINISTRY OF ECONOMY OF THE STATE OF

ZACATECAScarlos.barcena@zacatecas.gob.mx