COMPAÑÍA MINERA MILPO S.A.A. 4Q15 CONSOLIDATED EARNINGS RELEASE

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1 Lima. March 18, Compañía Minera Milpo S.A.A. (MILPO), a Peruvian mining company dedicated to the exploration, mining, processing, and marketing of zinc, copper, and lead concentrates with silver and gold content, released its fourth quarter 2015 consolidated earnings release in english. Operational and financial information, except where otherwise stated, is presented based on consolidated figures, in United States Dollars, according to International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB). COMPAÑÍA MINERA MILPO S.A.A. 4Q15 CONSOLIDATED EARNINGS RELEASE I. CORPORATE STRATEGY SUMMARY During 2015, Milpo continued implementing its five-pillar corporate strategy: 1. Mining Operations and Brownfields: At Cerro Lindo, production remained stable at 18,000 tpd becoming Peru s underground mine with the greatest capacity. Moreover, the company acquired innovative technology related to underground loading equipment with the highest capacity available in the market that guarantees higher productivity and safety. In addition, Milpo is in the process of beginning the execution of a project to increase the Unit s capacity to 20,000 tpd. At El Porvenir and Atacocha, as was defined, the second stage of the operational integration process between both mining units was completed, successfully integrating the tailings disposal system. This innovative initiative not only means savings in costs and investments, but also a reduction in the environmental footprint. At the same time, the operational integration process now continues with its third stage focused on a new energy transmission line for both processing plants. 2. Corporate office: This office continues in its role as a strategic service provider, through a leaner organization. It is worth to mention that during the year, the Office has also been focused on its human development program, which has been designed to improve capabilities and the performance of all the workers. 3. Copper projects: In the case of Magistral, Milpo informed to PROINVERSIÓN its decision of exercising its option to acquire the project, submitting a Bankable Feasibility Study elaborated by the firm Golder Associates Perú S.A. considering an operation of 10,000 tpd with incremental production rates with a modular approach, reaching 30,000 tpd. Also, the Environmental Impact Study (EIS at 30,000 tpd) was submitted to the MEM, and the Public Hearing held this year with the rural Community of Conchucos exhibited a high level of agreement and acceptance. With regard to Pukaqaqa, its EIA was approved for a 30,000 tpd capacity; engineering studies continue for an initial stage at 10,000 tpd, considering a smaller footprint and reducing the project s development risk. 4. Polymetallic projects: For Aripuaná, the firm Whorley Parsons was hired to develop an engineering study for an operation at a 5,000 tpd capacity. Also an EIS was presented to the government of Matto Grosso. For Shalipayco, based on its prefeasibility study completed this year considering an operation of 3,000 tpd, Milpo continues to analyze the best alternative for the project s commissioning, creating synergies with its Pasco operations. In the case of Bongará, the road construction continues and will help reduce logistic costs. This construction is expected to be finished in It is worth to mention that during 2015, Milpo implemented a scoring methodology for all its projects that details their maturity degree evaluating qualitative and quantitative aspects. This tool is helping to point out the main topics of each project and define the following steps for the portfolio. 5. Merger & Acquisitions: During 2015, Milpo submitted a Self-Sustainable Private Initiative to PROINVERSIÓN for the option of the Michiquillay Copper Project located in Cajamarca. This initiative is being evaluated based on the procedures established by the corresponding Peruvian regulations. The proposal includes technical, social, environmental and economic aspects which seek to facilitate the project s development and add value to all the entities involved. Milpo is developing projects in Peru with a good assessment of their environmental and social aspects so it has the ability to generate value on the project as soon as possible. Besides, this initiative is aligned with the group s strategy of becoming a major copper producer.

2 It is important to note that, in the event that this private initiative is ultimately accepted, it will be declared of public interest. As such, third parties interested in the project will be able to make offers, leading to a competitive acquisition process. Finally, it should be mentioned that based on the Shareholders Meeting held on July 23, 2015, the Company s Board of Directors approved in August 2015 the repurchase of Company shares for a total of up to US$ 10 million; also the board decided to buy Atacocha B shares, through the Company s subsidiary Milpo Andina Perú S.A.C., for a total of up to US$ 2 million. II. SELECTED OPERATIONAL AND FINANCIAL DATA Highlights Unit 3Q15 4Q15 4Q14 4Q15 vs 4Q vs Fine Metal in Concentrate Production Zinc t 67,914 63,060 69,899-10% 268, ,948 0% Copper t 10,677 11,082 10,276 8% 40,375 41,521-3% Lead t 10,358 11,392 10,469 9% 45,169 41,648 8% Silver content oz 1,838,040 2,023,793 1,716,102 18% 7,643,740 6,777,540 13% Price (USD/t) Zinc US$/t 1,844 1,611 2,235-28% 1,933 2,162-11% Copper US$/t 5,251 4,887 6,621-26% 5,502 6,860-20% Lead US$/t 1,712 1,681 1,999-16% 1,786 2,096-15% Silver US$/oz % % Cash Cost US$/t % % Cash Cost Zn eq. US$/t Zn eq. 1,073 1,051 1,152-9% 1,136 1,091 4% Revenues US$ MM % % EBITDA US$ MM % % Net Profit US$ MM n.a % EBITDA Margin % 21% 23% 30% 29% 35% Net debt / EBITDA x times n.a n.a. FCF US$ MM n.a % CAPEX US$ MM % % Treated ore production was over 10 million tonnes during the 2015, an 8% increase, due to the stabilization of Cerro Lindo s treatment capacity at 18,000 tpd. Fine metal content in concentrates production reached 355 thousand tonnes during 2015, slightly higher than the one obtained in Silver contents rose by 13% during 2015, reaching 7.6 million ounces. Consolidated revenues of US$ 626 million and EBITDA of US$ 179 million, ending the year with a 29% EBITDA margin in spite of the negative price effect of more than US$ 128 million during 2015 and US$ 39 million during the last quarter of 2015, in both cases partially compensated by higher production and lower costs and expenses. Consolidated cash cost decreased by 6% during 2015, from US$/t 35.5 to US$/t 33.3, registering its lowest level during the last quarter of 2015 (US$/t 32.5). Positive Free Cash Flow of US$ 28 million in 2015, in spite of the lower metal prices and the capex executed (US$ 107 million). Milpo maintained its net cash position, with a cash balance above US$ 440 million, and a negative leverage ratio (Net Debt/EBITDA) of -0.50x.

3 Consolidated net profit reached US$ 36 million during 2015, in spite of the loss incurred in the last quarter of US$ 5 million, mainly due to the loss registered in Atacocha in spite of having shown better operating results in comparison to those of 3Q15. III. FINANCIAL PERFORMANCE Milpo s revenues were US$ 626 million during 2015, a 17% decrease year-on-year, due to lower metal prices and in spite of higher fine metal content in concentrates production. This result is explained by the negative price effect of more than US$ 128 million, due to the lower metal prices. In spite of the higher treated ore mainly at Cerro Lindo, cost of sales decreased by 2% year-on-year due to 2015 lower consolidated cash cost (-6%) as a result of the increased productivity and the Pasco s operational integration benefits. Regarding administrative expenses, the restructuring process of the corporate office was focused on achieving a more efficient organization providing strategic services to the mining units, allowing a 15% decrease year-on-year. As for other operating expenses, for 2015, expenditures related to Greenfields and Prospects were optimized, prioritizing investing in projects with greater maturity. This, added to smaller royalties and special mining taxes, allowed Other Expenses to decrease in 49%, in comparison to those of The administrative and operational improvements achieved in 2015 are aligned with the execution of the strategic pillars, which constantly encourage the search for innovative and integrated solutions, focused on cost savings. These improvements helped to generate an EBITDA of US$ 179 million in spite of having a negative price effect of US$ 128 million. Finally, the Company totaled a consolidated net profit of US$ 36 million during the 2015, a 65% decrease yearon-year. US$ 000 3Q15 4Q15 4Q14 Var (%) Var (%) Revenues 143, , ,833-26% 625, ,117-17% Cost of Sales (89,181) (91,147) (94,800) -4% (364,211) (371,020) -2% Depreciation (19,722) (19,504) (21,348) -9% (83,607) (88,078) -5% Gross Profit 34,281 23,495 64,685-64% 177, ,019-41% Amortization (1,075) (1,646) (2,278) -28% (7,093) (8,416) -16% Selling Expenses (5,071) (4,842) (8,902) -46% (23,053) (27,617) -17% Administrative Expenses (7,728) (7,079) (8,750) -19% (27,775) (32,822) -15% Other Operating Results, net (10,870) 201 (13,856) n.a. (31,109) (60,942) -49% Operational Profit 9,537 10,130 30,899-67% 88, ,222-48% Financial Expenses, net (3,559) (2,882) (4,201) -31% (14,817) (16,665) -11% Income Tax 1 (4,788) (12,476) (9,086) 37% (37,724) (48,305) -22% Net Profit 1,190 (5,228) 17,612 n.a. 36, ,252-65% EBITDA 30,335 31,339 54,526-43% 179, ,857-33% EBITDA Margin (%) 21% 23% 30% 29% 35% (1) For purpose of this report, the Special Mining Tax which appears in the financial statements as part of Income Tax, was reclassified in the Other Operating Results account.

4 IV. BUSINESS AND OPERATIONAL PERFORMANCE Cerro Lindo Unit Unit 3Q15 4Q15 4Q14 4Q15 vs 4Q vs Fine Metal in Concentrate Production Zinc t 45,833 40,295 43,766-8% 176, ,150 6% Copper t 10,233 10,774 9,785 10% 38,584 39,026-1% Lead t 3,815 3,079 3,689-17% 15,191 14,360 6% Silver oz 846, , ,540 2% 3,331,796 2,771,906 20% Cash Cost US$ / t % % Revenues US$ MM % % EBITDA US$ MM % % EBITDA Margin % 47% 43% 47% 48% 51% Cerro Lindo s revenues amounted to US$ 425 million, 16% down year-on-year due to a negative price effect of more than US$ 85 million and in spite of the higher fine metal content in the concentrates production. In terms of production, the Unit increased its fine metal content mainly in zinc (+6%), lead (+6%) and silver (+20%) due to better grades and processing plant recoveries. Once treatment levels were stabilized, after the last capacity expansion, Cerro Lindo s cash cost decreased significantly reaching levels even lower than the ones seen in the previous enlargement stage. This reduction was achieved due to economies of scale obtained by the larger treatment capacity and productivity. The result was a unit s cash cost of US$ 28.2/t, 13% lower year-on-year. In terms of EBITDA, Cerro Lindo s totaled US$ 202 million during 2015, 21% decrease year-on-year mainly due to the lower revenues and in spite of the lower costs. With regard to exploration activities executed at Cerro Lindo, the year closed with 47,319 meters diamond drilling. For 2016, the unit will perform 52,000 meters of drilling, focused on high copper grades areas in the north and west of the operation. PASCO MINING COMPLEX El Porvenir Unit Unit 3Q15 4Q15 4Q14 4Q15 vs 4Q vs Fine Metal in Concentrate Production Zinc t 15,415 15,778 16,619-5% 61,664 65,031-5% Copper t % 1,208 1,342-10% Lead t 4,098 4,726 3,734 27% 16,342 15,575 5% Silver oz 655, , ,875 38% 2,629,073 2,270,041 16% Cash Cost US$ / t % % Revenues US$ MM % % EBITDA US$ MM % % EBITDA Margin % 10% 13% 25% 18% 30%

5 El Porvenir s revenues were US$ 120 million during 2015, 19% below those obtained during 2014, mainly due to a negative price effect of US$ 24 million. It is worth to mention that there was a 5% and 16% increase in the lead and silver contents in comparison to those of 2014, which helped partially mitigate the lower prices. Regardless of this, specifically analyzing the last quarter s performance, total production of fine metals recovered in 5% during 4Q15 in comparison to that of 3Q15, mainly due to the exploitation of areas with better zinc and lead/silver grades. (US$ 38.0/t), mainly as a result of the increase in preparation and development activities inside the mine, related to deepening activities underway at El Porvenir mine. In terms of EBITDA, it decreased by 51% year-on-year due to the lower revenues, amounting US$ 22 million. With regard to exploration activities executed at El Porvenir, the year closed with 50,301 meters of diamond drilling. For 2016, the unit will perform 58,000 meters of drilling, focused on increasing resources in the current exploration levels. The Unit s cash cost was US$ 40.0/t during 2015, a 5% increase in comparison to that obtained during 2014 Atacocha Unit Unit 3Q15 4Q15 4Q14 4Q15 vs 4Q vs Fine Metal in Concentrate Production Zinc t 6,666 6,987 9,514-27% 30,301 37,768-20% Copper t % 583 1,153-49% Lead t 2,446 3,588 3,046 18% 13,636 11,713 16% Silver oz 335, , ,686 21% 1,682,872 1,735,593-3% Cash Cost US$ / t % % Revenues US$ MM % % EBITDA US$ MM n.a n.a. EBITDA Margin % -54% -42% 11% -13% 23% Atacocha s revenues were US$ 74 million during 2015, a 25% decrease mainly due to a negative price effect of around US$ 19 million. During 2015, the operation in the underground mine was reprogrammed in order to access zones with positive operating margins either through higher grades, lower costs or both. This development required reprogramming the operations in the underground mine, mainly during the third quarter of 2015, which in the annual aggregate impacted the treated volume and the unit s cash cost. However, after performing the referred reprogramming, during the last quarter of 2015 Atacocha s treatment level returned to normal amounts, having focused in high content lead areas, because lead was the metal with a better performance in terms of price in recent months which partially compensated the greater decrease in other metal prices. Thus, compared to 3Q15, the unit produced 47% and 41% more fine lead and silver in 4Q15. As mentioned, this situation also had an impact on 2015 cash cost which was US$/t 47.7, 9% higher compared to that of However, the return to normal treatment levels in 4Q15 decreased the cash cost by 10% compared to the one obtained in 3Q15. EBITDA decreased to - US$9.8 million dollars during 2015, due to the lower revenues and the higher variable costs just explained. With regard to the operational integration process taking place between El Porvenir and Atacocha, the second phase of the process related to the tailings disposal system integration between both units was completed during the last quarter of In parallel, continuing with this process, the third phase is the development of a new 138Kv energy

6 transmission line, which is being executed, benefiting both processing plants. This line will replace the 50Kv old one. This project began during 2015 and its completion is expected for In relation to Atacocha s 2015 exploration activities, 45,770 meters of diamond drilling were executed to improve surface knowledge of geological and intermediate site zones, in the lateral extension of intermediate and depth areas of mineralized bodies, as well as increasing inventory levels of reserves and resources. V. FREE CASH FLOW GENERATION US$ million During 2015, in spite of the lower metal prices and CAPEX, the Company generated a positive free cash flow of US$ 28 million, accumulating a final total cash balance of $440 million by the end of December. Efforts were focused in optimizing working capital, such as increased collections and a higher inventory control for replacing materials. Total CAPEX was US$ 107 million during 2015, where the main sustaining project was the tailing dam elevation at El Porvenir, which is part of the integration of the tailings disposal system with Atacocha. In addition, sustaining Capex included the acquisition of new loading and hauling equipment to be used within CAPEX the operations, highlighting Cerro Lindo s acquisition of last generation scoops, which have the greatest existing capacity in the market for underground mines. In addition, during the year the company acquired a right to a stake in the Shalipayco zinc mining project (50% plus the right to acquire an additional 25%) for US$ 35 million. This acquisition, as well as those of Aripuana and Bongara in 2014, is aligned with the group strategy of acquiring high quality assets, with a focus on base metals, advance exploration, and the generation of synergies with current operations, such as in the case of Shalipayco, which has an important potential of generating synergies with Pasco s operations. US$ (MM) 3Q15 4Q15 4Q14 Var (%) Var (%) Expansion % % Sustaining and Others % % TOTAL MILPO % %

7 LIQUIDITY AND INDEBTEDNESS Due to the positive free cash flow generated in 2015, the Company ended the year with US$440 million in cash. In terms of gross debt, as of December 2015, its level was of US$352 million, resulting in a negative leverage ratio of 0.50x EBITDA, maintaining a high liquidity/low indebtedness position. It is worth to mention that, following the decision made in September 2015, in February 2016 the international credit rating agency Standard & Poor s (S&P) changed Milpo s rating from (BB+) to (BB), following Votorantim s downgrade from (BBB-) to (BB+), which was also consequence of Brasil s sovereign credit rating downgrade. Net Debt / EBITDA

8 ADDITIONAL INFORMATION 4Q15 Results Global Conference Call will be held on Friday, March 18, 2016 at 11 a.m. (Lima) / 12 p.m. (New York) / 4 p.m. (London). To access the call, please dial: Participants calling from USA : +1 (844) International Participants : +1 (412) Conference ID Code : Minera Milpo The Global Conference Call will be broadcast live on our Investor Relations website (ir.milpo.com). A slideshow will also be available on the same website. If for some reason you can t access the website, please use the following address: To access the replay of the 4Q15 Global Conference Call audio, please dial: Participants calling from USA : +1 (877) International Participants : +1 (412) Passcode : For further information please contact investorrelations@milpo.com or visit ir.milpo.com.

9 EXHIBIT I: COMPAÑIA MINERA MILPO S.A.A. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT For the year ended December 31, US$ 000 US$ 000 Revenue 625, ,117 Cost of Sales (447,818) (459,098) Gross Profit 177, ,019 Selling expenses (23,053) (27,617) Administrative expenses (27,775) (32,822) Other Income (expenses),net (27,960) (53,529) Operating Profit 98, ,051 Finance income 3,499 2,850 Finance expenses (18,316) (19,515) Profit before income tax 84, ,386 Income tax (47,966) (64,134) Profit for the year 36, ,252 Profit Attributable to: Owners of the Company 45, ,198 Non-controlling interest (9,364) (946) 36, ,252

10 EXHIBIT II: COMPAÑIA MINERA MILPO S.A.A. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION ASSETS At December 31, LIABILITIES AND EQUITY At December 31, US$ 000 US$ 000 US$ 000 US$ 000 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents 440, ,693 Financial liabilities 7,622 9,686 Trade and other receivables 95, ,201 Trade payables 125, ,784 Derivative financial instruments 4,821 4,504 Derivative financial instruments - 1,595 Inventories 50,791 63,252 Income and mining taxes 1,719 10,675 Other non-financial assets 10,129 8,683 Other provisions 18,558 31,530 Total current assets 601, ,333 Other payables 20,742 45,601 Total current liabilities 173, ,871 NON-CURRENT ASSETS NON CURRENT LIABILITIES Other receivable long term 3,544 - Financial liabilities 344, ,859 Deferred tax assets 16,688 23,853 Deferred tax liabilities 1,878 - Investments 58,018 53,019 Other provisions 99, ,160 Property, plant and equipment 418, ,826 Total non-current liabilities 446, ,019 Intangible assets 174, ,555 Total non-current assets 671, ,253 TOTAL LIABILITIES 619, ,890 EQUITY Capital 423, ,830 Treasury shares (4,543) - Investment shares 4,551 4,551 Other capital reserves 79,347 71,838 Other equity reserves 4,769 1,892 Retained earnings 122, ,878 Total equity attributable to the parent 630, ,989 Non-controlling interest 22,126 34,707 TOTAL EQUITY 652, ,696 TOTAL ASSETS 1,272,328 1,310,586 TOTAL LIABILITIES AND EQUITY 1,272,328 1,310,586

11 EXHIBIT III: COMPAÑIA MINERA MILPO S.A.A. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOW For the year ended December 31, US$ 000 US$ 000 OPERATING ACTIVITIES Collections from sale of inventories 774, ,682 Payments to suppliers of goods and services (446,377) (475,123) Payment for employees (66,409) (57,515) Income tax paid (45,309) (47,127) Payments of other taxes (55,316) (87,272) Tax recovery 4,113 1,500 Other 3,216 - Net cash generated from operating activities 168, ,145 INVESTING ACTIVITIES Disposal of property, plant and equipment Purchase of property, plant and equipment and investments (105,130) (99,683) Purchase of intagible assets (2,000) - Net cash applied to investing activities (106,894) (99,683) FINANCING ACTIVITIES Payment of borrowings (9,705) (17,502) Interests paid (12,355) (15,582) Dividends paid (27,137) (16,370) Other (payments) collections (9,279) 2,279 Net cash applied to financing activities (58,476) (47,175) Net increase in cash and cash equivalents 3,511 94,287 Cash and equivalent of cash at the beginning of the year 436, ,406 Cash and equivalent of cash at the end of the year 440, ,693