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COBRE DEL MAYO Corporate Presentation October 2013

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Agenda

I.   Introduction

II.   Company Overview

III.   Operational Environment

IV.   Industry and Commodity Overview V.   Conclusion

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COBRE DEL MAYO 2  

I. Introduction

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n  Cobre del Mayo, S.A. de C.V. (“Cobre del Mayo”, “CDM” or the “Company”) is a Mexican mining company that operates the Piedras Verdes open-pit copper mine (“Piedras Verdes” or the “PV Mine”)

—  Third largest copper mine in Mexico as measured by production with LTM sales of 30,718 t of Cu

—  Began commercial production in 2006, purchased by Invecture in mid 2009

—  Produces LME Grade A copper cathode and sells refractory and vein type ore for processing into concentrate

n  Since January 2012, Piedras Verdes has been operating on a sustained basis at close to or just above its design capacity of 87 metric tons per day (“tpd”) of copper cathode with strong EBITDA and cash flow generation

—  Mineral resources of 1.7 million metric tons with estimated remaining mine life of 17+ years

—  LTM EBITDA as of June 30, 2013 of US$102.6 million

—  Strip Ratio has declined from 3.2x in FY 2012 to 1.8x during 3Q’13

—  Life of mine strip ratio is scheduled at 0.9x

Introduction

COBRE DEL MAYO 4  

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Company Highlights

COBRE DEL MAYO 5   10

Strong cash flow generation with modest leverage, low capital expenditure commitments and ample liquidity

Proven methods of operation in which selective mining and grade control maximize recovery rates and minimize cash costs

Declining cash costs driven by progressively lower strip ratios and continuous incremental operational improvements

C1 cash costs in the 65th percentile of global industry

Long life mine of over 17 years in favorable location with fully developed infrastructure in attractive mining jurisdiction

Stable operation enabled by experienced management and operational team with a proven industry track record

II. Company Overview

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Conversion of Piedras Verdes Mine to Stable Operation n  Changed from contract mining to owner operation

n  Purchased the former contractor’s equipment fleet and installed a crushing, screening, conveying and stacking system

n  Conversion from Truck Dump Run of Mine to a primarily crush-conveyor stacked heap leach

n  Undertook the successful recharacterization and modeling of alternative styles of mineralization

n  Developed new mining and processing plans and implemented an effective ore quality and grade control system

n  Completed an agreement with Kupari Metals, S.A. (“Kupari Metals” or ”KM”) to supply crushed ore

COBRE DEL MAYO 7   16

Monthly Production Evolution (kt)

0.5

2.6

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Acquisition by Invecture

2009 2010 2011 2012 2013

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Declining Cash Cost Driven By Low Risk Operations and Processes n  Operations are based on modern and proven technologies in common use

n  Ore is processed selectively according to grade, rock type and other characteristics by the most efficient of three processes: —  ROM heap leach —  Crushed ore heap leach —  Sale of ore for concentration to Kupari Metals since April 2013

n  Result is an increase in both production per unit mined and significant reduction in cash costs

n  During 1H’13, cash costs of US$1.90/lb —  Ore sales to Kupari Metals, which started in April 2013, have enabled a reduction in cash costs to the

$1.62/lb range in 3Q’13

COBRE DEL MAYO 8   16

Historical Cash Cost (US$/lb)

3.63 2.69

2.08 2.06 1.90 1.80

-1.00

1.00

3.00

5.00

2010 2011 2012 LTM 1H'13 9M'13

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Fully Developed Infrastructure and Favorable Location

COBRE DEL MAYO 9  

n  All infrastructure is in place

n  Extremely competitive transportation costs for off-takers given Piedras Verdes’ location and nearby infrastructure

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

Easily Accessible by: n  Air:

—  Ciudad Obregón Airport (~90 minute drive - 111 km)

—  Álamos-5,000 foot paved runway (22 km) n  Road:

—  14 km access road to secondary road that reaches (i) the State Highway 162, (ii) the Álamos/Navojoa Highway or (iii) the Pan-American Highway that passes through Navojoa

n  Rail: —  ~50 km to Sonora’s mainline north-south railway

n  Port: —  250 km to deep-water port of Guaymas (from

which copper concentrate is blended and exported by both trading and mining companies)

 

n  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 —  Cost of electricity is ~0.10/kWh, which is ~17% cheaper than Chile, largest copper producing country

n  Water: CDM holds 16 titled water concessions with a combined tested industrial water totaling ~8.1 Mm³/y while the requirement for the operation of the PV Mine and flotation plant is ~5.5 Mm³/y

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10  

Modern Operations and Recently Purchased Asset Base

COBRE DEL MAYO 10   21

n  Over US$225 million in capex has been invested since 2009 —  Limited maintenance capex going forward

n  Refurbished ore crushing, screening and stacking system

n  All equipment has been recently purchased and limited remaining capital expenditures are required

—  Mine fleet has over half of its useful life remaining

Mine Equipment Availability (%)

73% 75% 84% 86% 81% 85% 90% 93%

0.0

0.2

0.4

0.6

0.8

1.0

2010 2011 2012 1H'13

Loading Equipment Hauling Equipment

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Agreements that Eliminate Marketing Costs and Reduce Risk

COBRE DEL MAYO 11  

Copper Cathode

n  Trafigura and CDM have entered into a 18-month agreement for 100% of CDM’s cathode production

n  Cu Cathode sold FOB at the mine and is paid twice per week against holding certificates

n  LME quality and brand that is recognized in the market

Ore for Concentrate

n  CDM committed to sell copper ore to KM and KM committed to purchase and process it

—  Purchase Price of Ore: The purchase of the ore is a function of the copper recovered and the current LME copper price with certain freight, handling and operating charges

—  Volume: CDM will sell up to 10,500 tpd of ore, with a minimum copper content of 0.45% and will use commercially reasonable efforts to supply a minimum of 20,000 tpa of contained copper

—  Term: Initial fixed term of 10 years and provides for renewals

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Hedging Arrangement

n  Entered into a 12 month forward sale agreement in June 2013

—  2,400 t per month from July 2013 through June 2014 (approximately 92% of the total copper cathode production)

—  Fixed price of $7,089/t (approximately $3.22/lb)

n  Cash settlement, no margin

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-50

50

150

250

350

C1

Cas

h C

ost c

/lb

Cumulative Production

Competitive Cash Cost Profile n  The cash costs are currently in the industry’s third quartile

n  CDM will look to continue to maintain cash cost below industry average by continuing to benefit from the relationship with Kupari Metals

—  Kupari Metals has committed to expand its flotation plant by early 2015 and increase their ore purchase from us to 10,500 tpd from 5,500 tpd, further reducing cash cost

COBRE DEL MAYO 12   16

Source: Wood Mackenzie

Including By-Product Credits Quartiles

2013 Estimate Global Copper C1 Cash Cost Curve

>$1.23/lb >$1.58/lb >$2.06/lb

CDM 1H 2013 = $1.90

CDM 3Q’ 13 = $1.62

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Extensive Mine Life Supported by High Quality Reserve and Resource Base

COBRE DEL MAYO 13  

n  Since the acquisition of CDM by Invecture, total mineral resources have increased 110% to over 685 million Mt and CDM’s mine life has extended from less than 9 years to over 17 years

n  Management has significantly increased mineral resource estimates based on successful exploration and drilling programs

n  Overall pit shape used to define the minable resources is based on a $2.50/lb copper price

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Mine Plan & Resource Evolution (Total Cu, Mt) Summary of Estimated Mineral Reserves and Resources

1,242

1,713

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Mar. '08 Dec. '09 Dec. '11 Sep. '12 / Current

Reserves Resources

Estimated ReservesOre (kt) Grade (%) Total Copper (t)

Estimated Reserves (provenand probable)……………………………………………………………………………………………………………..477,778 0.260 1,241,708

ResourcesOre (kt) Grade (%) Total Copper (t)

Measured……………………………………210,738 0.264 557,000Indicated…………………………………….326,205 0.243 793,404

Total Measuredand Indicated………………………………………536,943 0.251 1,350,404

Inferred……………………………………147,658 0.246 362,638Total Resources………………………684,601 0.250 1,713,042

III. Operational Environment

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Stable Operating Environment in Mexico

COBRE DEL MAYO 15  

n  Mexico is an economic leader in Latin America and is the world’s 14th largest economy by GDP

—  2013E and 2014E real GDP growth of 1.2% and 3.0%, 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

n  Mexico is recognized as a mining friendly jurisdiction

—  Largest producer of silver globally (18% of global production)

—  2nd largest producer of zinc in Latin America (2012E production of 630kt)

—  3rd largest producer of copper in Latin America (2012E production of 500kt)

n  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 200 mining companies operate in Mexico, of which 60 have producing assets; 53 of those 60 belong to subsidiaries of foreign companies

—  ~40% of mine production and ~70% of investments in exploration are undertaken by foreign investors

Sources: IMF, Brook Hunt, World Bank, U.S. Geological Survey.

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Sonora is Among the Most Prolific Mining Areas in Mexico

COBRE DEL MAYO 16  

n  Sonora represents Mexico’s most important state in terms of mining production

n  Sonora is one of Mexico’s safest states and the only U.S. border state that has not been significantly affected by recent violence associated with the war on drugs

Sources: Statistical Yearbook of The Mexican Mining, 2012 (2013 Edition).

2012 Total Mining Production in Mexico 2012E Copper Production in Mexico

Sonora 28%

Zacatecas 24%

Chihuahua 13%

Coahuila 8%

Others 27%

Sonora 78%

Zacatecas 10%

San Luis Potosi

5%

Others 7%

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17  

Strong Track Record of Safety, Environmental and Labor Relations

COBRE DEL MAYO 17  

n  Safety, Environmental compliance and Labor relations are key areas of focus of CDM

n  Since current management took control of the operation, Piedras Verdes has had a solid safety track record —  CDM pays the lowest premium for “Riesgo de Trabajo” (worker risk) as classified by IMSS, demonstrating

the safety standards at CDM

n  CDM has obtained all necessary permits for the construction and operation of the mine

n  Piedras Verdes complies with all applicable environmental standards that are among the world’s most advanced

n  Labor relations: —  Large pool of nearby qualified labor from Navojoa and Alamos —  Approx. 342 of our 853 employees are represented by the Confederación de Trabajadores de Mexico

(“CTM”) which is one of Mexico’s largest unions characterized by constructive and open approach towards labor relations

—  No work stoppages in the history of the Piedras Verdes Mine

n  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

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IV. Industry and Commodity Overview

Jefferies LLC August 2013 /

--

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

2010

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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 2013 LT

Copper Price (US$ / lb Cu)

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

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

2012 LT

Source: Broker Research, Bloomberg. (1)  Except 2013, where forecasts are as of 24 October 2013.

(1)  Except 2013, where forecasts are as of 19 August 2013

i COBRE DEL MAYO 32

Copper Price Forecasts Over Time

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

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Jefferies LLC August 2013 /

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Incentive Price Drives the Value of Copper

COBRE DEL MAYO 20

n  The incentive price required to justify investments in the expansion of existing mines and the construction of new ones is estimated at US$3.23/lb (US$7,117/t)

  Incentive price considers required Cu price to achieve specified rate of return on expansion capex

n  Although short term copper prices are unpredictable, according to the chart below, copper must ultimately trade above US$3.23/lb for global mine copper supply to be maintained

Source: Wood Mackenzie, Goldman Sachs Global Investment Research , LME.

Incentive Prices for Major Projects S

entin

el

Bue

navi

sta

SX

/EW

Res

olut

ion

Peb

ble

Sie

rra

Gor

da

Chu

quic

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Los

Bro

nces

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aqui

ra

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Tol

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Waf

i Gol

pu

Que

llave

co

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ro V

erde

To

rom

ocho

Rad

omiro

Tom

ic

Esc

ondi

da

Con

stan

cia

Cas

eron

es

Esp

eran

za S

ur

Enc

uent

ro

Cob

re P

anam

a

Ayna

k

And

ina

Gal

eno

Rel

inch

o

Que

brad

a B

lanc

a

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Ince

ntiv

e P

rice

for 1

5% R

isk

Adj

sute

d IR

R (U

S$/

t)

Cumulative Production (kt/a)

50th Percentile: = $7,117/t (US$3.23/lb) 25th Percentile: = $6,317/t

(US$2.87/lb)

75th Percentile: = $8,242/t (US$3.74/lb)

Jefferies LLC August 2013 /

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Cu Pricing Considerations

COBRE DEL MAYO 21

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

  C1 cash cost (direct cash cost) as estimated by Wood Mackenzie

Source: Wood Mackenzie, LME. (1) 90th percentile as estimated by Wood Mackenzie. LME prices for 2013 YTD through October 10, 2013.

C1 90th Percentile Costs vs. Cu Price (1)

1.11

1.62

2.57 2.55 2.39

1.67

3.42

4.00

3.61

3.17

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2005 2010 2011 2012 2013YTD

C1 90th Percentile Average LME Cu Price (High, Low)

V. Conclusion

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Conclusion

Stable operation led by experienced management team

with proven industry track

record COBRE DEL MAYO

C1 cash costs in the 65th percentile of global industry

Proven operating methods to

maximize recovery rates and minimize

cash costs

Declining cash costs driven by

lower strip ratios and continuous

operational improvements

Long life asset in favorable

jurisdiction and fully developed infrastructure

COBRE DEL MAYO 23  

Strong cash flow, modest leverage,

low capex commitments and

ample liquidity

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http://www.cobredelmayo.com/