PEñASQUITO

The Peñasquito mine is located in the mining state of Zacatecas, Mexico.  It possesses flat topography and excellent proximity to roads, power, rail, skilled labor and smelters.  It is a 100% owned operation composed of two open pits - Peñasco and Chile Colorado containing gold, silver, lead and zinc.  Peñasquito will be Mexico's largest open pit mine once built.

At December 31, 2009, proven and probable gold reserves totalled 17.8 million ounces.  Silver reserves totalled 1,070.1 million ounces while proven and probable lead and zinc reserves total 7.2 million pounds and 15.9 million pounds respectively.  Measured and indicated gold resources stood at 4.45 million ounces and measured and indicated silver resources stood at 391.0 million ounces. 

In October 2009, the first lead and zinc concentrates were produced and concentrate shipment to smelters commenced with first sales recorded in November 2009.

All components of Line 1 are working as planned and Line 2 construction remains on schedule for mechanical completion at the end of the second quarter of 2010.

Annual production over the life of mine (estimated 22 years) is expected to ramp up to approximately 500,000 ounces of gold, 28 million ounces of silver and over 450 million pounds of zinc.