Cobre del Mayo, S.A. de C.V. Announces the Completion of an Updated NI 43-101 Compliant Technical Report

MEXICO CITY, Dec. 15, 2015 /PRNewswire/ -- Cobre del Mayo, S.A. de C.V. ("CDM") announced the completion of an updated NI 43-101 compliant mineral reserve and resource report for the Piedras Verdes copper operation (the "Technical Report") dated December 12, 2015. This Technical Report, prepared by MICON International and AGP Mining Consultants, considers both the CDM leaching operations and the copper concentrate operations run by Kupari Metals (jointly, "PV Operations").

NI 43-101 PV Operations Highlights:

• Estimated Reserves of 291.8 Mt of ore at an average grade of 0.29% TCu equivalent to 846 kt of copper contained in ore

• Estimated Resources of 457.9 Mt of ore at an average grade of 0.28% TCu equivalent to 1,280 kt of copper contained in ore

• Estimated Life Of Mine ("LOM") of 14 years
• Cut-offs and cut-over grades between processes are as follows:

• Average production from 2016 to 2026 of 38.7 kt/yr (of copper cathode and copper contained in concentrate), declining gradually as mining ends in 2030 and until leach out period is completed in 2034
• LOM C1 cash costs for the PV Operations of $1.78/lb (excluding royalties)
• Sustaining LOM Capital Costs for the PV Operations of $212 M
• Unleveraged Net Present Value at a 12% discount rate of $183 M for PV Operations

43-101 CDM Highlights:

Based on the Technical Report and without giving effect to Kupari Metals we have estimated the following summary data for CDM:

• Average copper cathode production from 2016 to 2026 of 28.5 kt/yr declining gradually throughout 2034
• Average ore for concentrate sold to Kupari from 2016 to 2026 of 2,055 kt/yr at an average grade of 0.52%
• LOM C1 cash cost (including by-product credits from the sale of ore to Kupari Metals) of $1.77/lb
• Unleveraged Net Present Vale at a 12% discount rate of $110 M

Qualified Persons:

The primary authors of this Technical Report are:

• William J. Lewis, B.Sc., P.Geo. a Senior Geologist with Micon based out of Toronto, Canada.
• Lyn Jones, P.Eng, Senior Process Engineer, AGP Mining Consultants, Inc.
• Jay Melnyk, P.Eng, Principal Mining Engineer, AGP Mining Consultants, Inc.

The complete document is available in the Investors section of Cobre del Mayo's website. Access to this section will require a username and password that can be requested from the following email address: ir@cobredelmayo.com.mx.