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Minera Frisco

Investor Presentation - 1Q16

El Coronel Unit

1962-1980 1985-2004

In 1962, Minera Frisco

is created. Since this

year, various

operations have

started, like Minera

Lampazos in 1972,

Minera Cumobabi in

1978 and Minera Maria

in 1980. Metals

production during

these years were Cu,

Mo, Ag and Au.

In 1985, Minera

Frisco was acquired

by Grupo Carso

(“Gcarso”). In 1994,

San Felipe begins

operations in Baja

California. In 1998,

Minera Tayahua is

acquiered (51%). In

2004, Minera Maria

reopens and starts

productions of

copper cathodes.

2008-2011

In 2008, Asientos and

El Coronel start

production of

concentrates and dore

bars. On January

2011, GCarso

completes the spin-off

of its mining and real

estate divisions;

Minera Frisco starts

trading in the Mexican

Stock Exchange

(MFRISCO).

Brief History

2012

Major advances on

projects were

achieved, including

completion of

construction at most

of the units. The

acquisition of the

Ocampo mine, and

Los Jarros and Venus

projects was finalized

in December.

2013

El Porvenir and

Concheño units

started operations as

well as El Coronel

and San Felipe

expansions.

2014

MFrisco focused on

the consolidation of

its projects that

started production in

2013 and 2014.

2015

Working on make

more efficient each

unit, developing and

implementing

strategies in order to

minimize economic

impacts.

Overview

3

More than 50 years of experience.

Mainly focus on gold, silver and copper.

9 operating mines

1 project under development

8,105 employees (it includes contractors)

4

Location: Sonora

Stage: Operating

Metals: Cu

Maria

Location: Baja California Norte

Stage: Operating

Metals: Au / Ag

San Felipe

Location: Chihuahua

Stage: Operating

Metals: Au / Ag

Concheño

Location: Chihuahua

Stage: Operating

Metals:Au/ Ag/ Cu/ Pb /Zn

San Francisco del Oro

Location: Zacatecas

Stage: Construction

Metals: : Au/ Ag/ Cu/ Pb/ Zn

Tayahua - Cobre Primario

Location: Zacatecas

Stage: Operating

Metals: Au/ Ag/ Cu/ Pb/ Zn

Tayahua

Location: Zacatecas

Stage: Operating

Metals: Au / Ag

El Coronel

Location: Aguascalientes

Stage: Operating

Metals: Au/ Ag/ Cu/ Pb/ Zn

Asientos


Stage: Operating

Metals: Au / Ag

El Porvenir

Operating Mines Expansion Projects

Geographic Footprint

Location: Chihuahua

Stage: Operating

Metals: Au / Ag

Ocampo

Location: Chihuahua

Deposit Type: Open Pit &

Underground

Process: Dynamic

Leaching

Start of Operations: 2013

Capacity: 13,500 TPD

Main Metals: Au / Ag

Final Product: Dore Bars

5

Operating Mines: open pit & underground

Concheño

Location: Chihuahua

Deposit Type: Underground

Process: Dynamic

Leaching


Capacity: 3,000 TPD

Main Metals: Au / Ag


Ocampo

Location: BCN

Deposit Type: Open Pit &

Underground

Process: Heap and

Dynamic Leaching


Project expansion start-up: 2013


Metals: Au / Ag


San Felipe

6

Operating Mines: open pit

Location: Zacatecas

Deposit Type: Open Pit

Process: Heap Leaching


Project expansion start-up: 2013


Metals: Au / Ag






Capacity: 8,500 TPD

Metals: Au / Ag


El Coronel El Porvenir

Location: Sonora



Start of Operations: 2004 (2nd phase)


Metals: Cu

Final Product: Copper -

Cathodes

Maria

7

Operating Mines: underground

Asientos Tayahua* San Francisco del Oro

Location: Zacatecas


Process: Flotation Circuit


Capacity: 5,500 TPD

Additional capacity: 10,000 TPD

Metals: Au/Ag/Cu/Pb/Zn

Final Product: Concentrates





Capacity: 3,800 TPD



Location: Chihuahua




Capacity: 4,000 TPD



*Expansion project under development

8

Operations & Projects Portfolio

Nominal installed milling/crushing capacity

(tonnes/day)

*Milling/crushing processing capacity (tonnes/day)

90.2%

Name Location MetalsExploitation

type Process

Milling/crushing

installed capacity*

El Coronel Zac. Au, Ag Open-pit Heap leaching 55,000

San Felipe B.C. Au, Ag Open-pit Heap leaching 37,000

Asientos Ags.Au, Ag,

Pb, Zn, Cu Underground

Milling and

flotation3,800

San

Francisco

del Oro

Chih. Au, Ag,


Milling and

flotation4,000

Maria Son. Cu Open-pit Heap leaching 27,000

El Porvenir Ags. Au, Ag Open-pit Heap leaching 8,500

Ocampo Chih. Au, Ag Underground Dynamic

leaching3,000

Concheño Chih. Au, Ag Open-pit Dynamic

leaching13,500

Units in operation

82,700

157,300

2012 2015

Name Location MetalsExploitation

type Process

Current

milling/crushing

installed capacity*

Description

Additional

installed

capacity*

Expected

installed

capacity*

Status

Tayahua Zac. Au, Ag,


Milling and

flotation5,500

Primary copper: access ramp

of 6 km, crushing, grinding and

flotation plant

10,000 15,500Under

construction

Expansion projects

Key Operating Data

9

growth %

-12%

growth %

0%

growth %

3%

growth %

-4% -

-

-

54% - 11%

28% 12%

-3% - 5%- -

22% - 18% -

growth %

-9% - -19% -19% -

423 412

77 118 103

2014 2015 1Q14 1Q15 1Q16

Gold ('000 Oz)

8,855 9,331

2,033 2,265 2,268

2014 2015 1Q14 1Q15 1Q16

Silver ('000 Oz)

25,823

20,871

6,460 5,256 4,772

2014 2015 1Q14 1Q15 1Q16

Copper (tonnes)

58,913

71,628

13,968 17,903 18,455

2014 2015 1Q14 1Q15 1Q16

Zinc (tonnes)

18,275

21,642

4,715 5,260 5,074

2014 2015 1Q14 1Q15 1Q16

Lead (tonnes)

Key Operating Data

10

It does not include hedging effects.

63% 15%

4%

9%

9%

2016 - Revenues by product

Gold

Silver

Copper

Zinc

Lead

UnitGold

(Oz)

Silver

(Oz)

Lead

(tonnes)

Zinc

(tonnes)

Copper

(tonnes)

El Coronel 28,393 3,379 - - -

San Felipe 26,466 340,887 - - -

Asientos 1,689 273,549 1,661 7,239 148

Tayahua 2,256 351,551 1,142 5,862 3,384

San

Francisco

del Oro

857 337,003 2,272 5,355 388

Porvenir 3,132 46,969 - - -

Ocampo 8,116 208,922 - - -

Concheño 32,519 706,137 - - -

María - - - - 853

Total 103,430 2,268,396 5,074 18,455 4,772

1Q16

14

14

15

15

16

16

17

17

1,160

1,170

1,180

1,190

1,200

1,210

1,220

1,230

1Q14 1Q15 1Q16

Ag-

ave

rage

pri

ce (

usd

/Oz)

Au

- av

erag

e p

rice

(u

sd/O

z)

Gold & Silver Price

Au (Oz) Ag (Oz)

Key Financial Data

11

37%

- 3%

2 %

growth %

10%

growth %

- 58% -65%

margin %

3% 8% -1% - -

- 11%

2% 1,797

746

258

2014 2015 2016

Capex

(million pesos)

2,499 3,423 3,406

12,398

13,611

1Q14 1Q15 1Q16 2014 2015

Revenues (million pesos)

37% -

686

1,259 1,355

4,521 4,648

1Q14 1Q15 1Q16 2014 2015

EBITDA (million pesos)

84% -

Key Financial Data

12

Indebtedness

At March 31st , 2016, the company continued with its metal hedging strategy and it covers most of the

production estimated for the remainder 2016 year. Also, a metal hedging strategy started for 2017.

Derivative Financial Instruments

Indebtedness Variation Variation

(MXN million) 1Q16/1Q15 1Q16/4Q15

Short terms marketable notes - 1,310 -100% - 0.0%

Long term bonds 5,000 5,000 0% 5,000 0.0%

Syndicated loan 19,142 16,670 15% 18,927 1.1%

Debt 24,142 22,980 5% 23,927 0.9%

4Q141Q16 1Q15

Debt (Millions) 1Q16 1Q15 Var. % Var.

Mexican Peso 24,142 22,980 5% 1,162

American Dollar 1,387 1,516 -9% (129)

FxRate. 17.40 15.15

Contact

Investor Relations:

Lizbeth Munguia Samperio

[email protected]

T. +52 (55) 2122.2624

Corporate Office:

Plaza Carso Lago Zurich #245

Presa Falcon Building, 17th Floor

Granada Ampliación

11529 México DF

Trading Symbol:

MSE: MFRISCO

OTC: MSNFY

www.minerafrisco.com

13

Certain statements in this presentation may be related to expectations about future events of Minera Frisco. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Minera Frisco undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this release.

http://www.minerafrisco.com/





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