Resource World Magazine

MI N I N G Tahoe Resources' Escobal Mine development on schedule A NOVEMBER 2010 PRELIMINARY ECONOMIC ASSESSMENT (PEA) OUTLINED THE FOLLOWING RESOURCES: ResourceTonnes Silver Classification(M) (g/t) Indicated 27.1 422 Inferred 4.6 254 Gold (g/t) 0.43 0.59 Lead (%) 0.71 0.34 Zinc (%) 1.28 0.66 Silver (Moz) 367.5 36.7 Gold Lead (koz) (kt) 373 192 85 15 Zinc (kt) 347 30 by Kathrine Moore Tahoe Resources Inc. [THO-TSX; TAHO-NYSE] is in the advanced stages of construction at its high-grade silver, Guatemalan Escobal Project. On October 21, 2011, the project environmental impact study (EIS) was approved and construction commenced in November. The company reports that, "Surface plant construction and underground development of the Escobal Project is continuing on-schedule. As of June 30, 2013, engineering, procurement and construction management (EPCM) was 85% complete." Tahoe has completed 8,831 metres underground development necessary for production which is expected to commence in early 2014. Full operating permits were received in April 2013. "Mill commissioning is proceeding on schedule with recent completion of the power generation and crushing plants. Preliminary commissioning of the grinding circuit is now underway and the next step will be commissioning of the flotation components, expected to lead the way to first production in September," said Tahoe Resources President and CEO, Kevin McArthur. "We continue to meet our deadlines and are fully funded. Escobal is anticipated to be one of the largest and lowest cost primary silver producers in the world," he added. The PEA indicated that a 3,500 TPD, underground mine producing lead and zinc concentrates over a production life of 18 years is economically viable. Tahoe Resources announced on July 24, 2013, that their amended NI 43-101 Preliminary Economic Assessment (PEA) confirms the economics for the Escobal Mine Project. The PEA for the Escobal Project "demonstrates that increasing the throughput to 4,500 TPD and/or 5,500 TPD will enhance the economic results over the previous plan and provide employment for ~650 employees in Guatemala." The mine will contribute significantly SEPTEMBER 2013 to the Guatemalan economy: over 95% of Escobal employees are Guatemalan, annual wages and salaries will average $17.1 million, royalties and taxes will exceed $50 million per year, goods and services exceed $25 million annually, and $35 of every $100 in Escobal revenue will remain in Guatemala. Escobal is expected to produce 20 million silver equivalent ounces per year, over the first 10 years, at a total cash cost of less than $5.00 per ounce (net of by-products). Capital cost for the 3,500 tpd underground mine and milling operation amounts to $326.6 million. Tahoe states that "the 4,500 tpd scenario includes an additional capital cost of $46.2 million and presents an NPV of $2.94 billion at a silver price per ounce of $25.00, a 20-year mine life and an IRR of 68%." Ongoing exploration drilling continues to expand known mineralization. In August, Tahoe Resources announced that, " Access to 18 primary transverse and 18 secondary transverse stopes from the 1290 and 1265 footwall laterals was achieved at the end of the second quarter. Final development has been completed in the first five stopes and production drilling is advancing in the first three stopes as expected." The project continues on schedule and on budget with full production anticipated to commence in the first quarter of 2014. Tahoe Resources has the funds to complete construction and commence production."The company expects that approximately 60,000 tonnes of mill feed will be stockpiled by mill start-up. n PROJECT & CONSTRUCTION MANAGEMENT FOR MINING PROJECTS IN MEXICO • • • • Cost savings approach to all aspects of project Proven success meeting tight schedules & budgets Experience with local suppliers, fabricators and construction companies All Spanish-speaking teams Smith Foster & Associates Inc. Suite 250 – 750 West Pender Street, Vancouver, BC V6C 2T7 Phone: 604 336 8555 Fax: 604 336 8562 Email: info@smithfosterassociates.com Web: smithfosterassociates.com www.resourceworld.com 39

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