Fresnillo presentation-denver-gold-forum-2015-v3

Denver Gold ForumSeptember 21, 2015

Octavio Alvídrez, CEO

LSE:Fres BMV:Fres www.fresnilloplc.com

“Well placed to address cyclical uncertainties”

221/09/2015

This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include, but are not limited to, statements regarding the Fresnillo Group’s intentions, beliefs or current expectations concerning, among other things, the Fresnillo Group’s results of operations, financial position, liquidity, prospects, growth, strategies and the silver and gold industries.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results of the Fresnillo Group’s operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group operates, may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. In addition, even if the results of operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations (including the US dollar and Mexican Peso exchange rates), the Fresnillo Group’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, changes in its business strategy, political and economic uncertainty.

Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document speak only as of the date of this document, reflect the Fresnillo Group’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Fresnillo Group’s operations, results of operations, growth strategy and liquidity. Investors should specifically consider the factors identified in this document which could cause actual results to differ before making an investment decision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or applicable law, the Fresnillo Group explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this document that may occur due to any change in the Company’s expectations or to reflect events or circumstances after the date of this document.

Disclaimer

321/09/2015

Location Key Highlights

World’s largest silver producer (45 moz in 2014) and Mexico’s second largest gold producer (596 koz in 2014)

Market cap of US$6.8 billion*

Silver resources of 2 billion ounces and gold resources of 34 million

Mining concessions of 2 million hectares in Mexico and 370 thousand hectares in Peru

Cash costs and AISC amongst the lowest in the industry

Substantial, high quality project pipeline and strong commitment to disciplined and sustainable growth: production target of 65 moz of silver and 750 koz of gold by 2018

Focus on projects that can be developed into low-cost, world-class mines

• As at 17 September 2015• ** Operations at Soledad-Dipolos are currently suspended

Fresnillo plc mines (6 and a satellite mine)** Development projects (2)

Advanced exploration projects (4)

Prospects in drilling

Prospects at an early stage

SOUTH PERU

HERRADURA DISTRICT

CIÉNEGADISTRICT

FRESNILLO DISTRICT

ORISYVO

SAN JULIÁN

Fresnillo at a Glance

4

Our Business Model and Strategy

Our Business Model…

1. Maximise potential of existing operations• Operate at 100% capacity• Low-cost producer• Optimise mining method and metallurgy to maintain

high recovery rates

2. Deliver growth through development projects• Track record of delivery on time and on budget• Focus on CAPEX control • Specialised Engineering and Construction team

3. Extend the growth pipeline• Evaluate early-state acquisitions• Maintain reserves for 10 years• Ensure organic growth and assess key acquisition

opportunities

4. Advance sustainable development• Improve general health• Reinforce safety • Minimise the environmental impact• Maintain sound relations with communities

…supported by four strategic pillars to create value

521/09/2015

• Silver production of 45 moz and gold production of 596 koz

• Revenues: US$1.4 billion

• Continued focus on cost control

• Operating profit: US$245.6 million

• EBITDA: US$567.3 million; EBITDA margin of 40.1%

• Capex of US$425.6 million and total investment in exploration of US$184.5 million (including US$15.7 million capitalised)

• Total workforce: 7,090 (49.4% unionised employees and 50.6% contractors)

• Total assets: US$3.8 billion (as at 30 June 2015)

• Cash and investments: US$475.7 million (as at 30 June 2015)

2014 Highlights

621/09/2015

Operations Review

Fresnillo

Stabilise and then improve ore grades and production to provide solid base for potential expansionOre grades expected to move towards reserve grade once operating stope flexibility regained

Key operating statistics 1H15

Silver production – moz 7.8 Cost per tonne – US$/t 48.5

Gold production – koz 15.1 Cash cost - US$/oz 5.8

Silver ore grade - g/t 220 AISC - US$/oz 11.1

Gold ore grade - g/t 0.50 AISC (LoM) (2023) – US$/oz 6.20

1H15 silver production decreased:

Lower silver ore grade reflecting limited access to high ore grade areas

Lower volumes processed due to development delays and stope instability

Actions taken:

Enhanced contractor supervision

Additional contractors

Measures to manage stope instability

Should allow development rates of c.4,000m / month to be maintained

Advancing declines in order to reach higher grade veins & regain operating stope flexibility

721/09/2015

Operations Review (Cont’d)

Saucito Ciénega

Efficiency improvements at Saucito II planned for 1H16: installation of vibrating screens

Conclude analysis of alternatives for potential expansion to either 5,000 or 6,000 TPD post good exploration results


Gold production – koz 45.7

Silver production – moz 2.1

Gold ore grade - g/t 2.25

Silver ore grade - g/t 117

Cost per tonne – US$/t 66.7

Cash cost - US$/oz 297.0

AISC - US$/oz 650.0

AISC (LoM) (2026) – US$/oz 803.1


Silver production – moz 11.4


Silver ore grade - g/t 341




AISC - US$/oz 6.0

AISC (LoM) (2021) – US$/oz 6.0

821/09/2015

Operations Review (Cont’d)

Herradura Noche Buena

Expect to reach steady state production by 4Q15 after ramp-up and resolution of solution processing issues



Gold ore grade – g/t 0.74

Ore processed – mt 10.9

Total volume hauled – mt 57.7


Cash cost – US$/oz 490.2

AISC - US$/oz 873.2

AISC (LoM) (2019) – US$/oz 717.0

Continue to focus on containing costs and maximising efficiency of production




Ore processed – mt 8.7

Total volume hauled – mt 42.3



AISC - US$/oz 940.9

AISC (LoM) (2019) – US$/oz 1,124.5

9

YEAR

PROJECT2018 2019Investment

(US$ million)

Expected Avg. Annual

Production20202015 2016 2017

515 10.3 mill Oz Ag & 44 thds Oz

AuSAN JULIÁN

CONSTRUCTION LEACHING PLANT PRODUCTION

CONSTRUCTION FLOTATION PLANT

30 3 mill Oz Ag FRESNILLO 9,000 TPD (Optimization project)

MINE DEVELOPMENT & PLANT ADEQUATIONPRODUCTION

DETAILED ENGINEERING

155 3.5 mill Oz Ag & 13 thds Oz Au

PYRITES PLANT (Optimization project)

DETAILED ENGINEERING

LEACHING PLANT CONSTRUCTIONPRODUCTION

CONSTRUCTION TAILINGS FLOTATION

55 15 thds Oz Au & 1.3 mill Oz Ag

CIENEGA 5,000 TPD (Optimization project)

MINE DEVELOPMENTPRODUCTION

DETAILED ENGINEERING PLANT CONSTRUCTION

350 136 thds Oz Au ORISYVO


BASIC ENGINEERING DETAILED ENGINEERING

PLANT CONSTRUCTION

300 10 mill Oz Ag & 30 thds Oz Au JUANICIPIO



PLANT CONSTRUCTION

155 200 thds Oz Au

CENTAURO EXTENSION

365 225 thds Oz Au CENTAURO DEEP

DEVELOPMENTPRODUCTION


PLANT CONSTRUCTION

DEVELOPMENTPRODUCTION2ND DYNAMIC LEACHING PLANT

CONSTRUCTION

Expected Delivery of Growth

(1) (2)

(1) Estimated. (2) Total average annual production. (3) Approved

(3)

(3)

1021/09/2015

Approved ProjectsSan Julián

Mining works at the main ramp concluded & further progress made on plant infrastructure

However, delays in permitting, weather-related issues and high rotation of contractor personnel due to project’s remote location together resulted in execution delays

Key metric estimates

Avg. annual silver production 10.3 moz

Avg. annual gold production 43.9 koz

Pre-operative capex $515 m

Cash cost (average LoM) $7.77 /oz

All-in sustaining costs (average LoM) $9.33 /oz

Phase 1 capacity (DLP to treat ore from veins) 3,000TPD

Phase 2 capacity (flotation plant to process ore from disseminated ore body) 6,000TPD

Life of mine 13 years

Phase 1 now expected to be commissioned 1H16 (vs. previous expectation of 4Q15);

phase 2 remains on track (4Q16)

1121/09/2015

Approved ProjectsSan Julián: Commissioning 1H16

1221/09/2015

Detailed engineering continues

Approved ProjectsPyrites Plant

Key metric estimatesAvg. annual silver production 3.5 moz

Avg. annual gold production 12.8 koz


Cash cost (average LoM) $2.51 /oz

Saucito I Saucito II

Fe Plant

FiltrationPlant

Leaching PlantHauling(Truck)

Fresnillo Plant

Tailings Plant

Old Tailings

1321/09/2015* Assuming a 5,000TPD expansion

Potential Brownfield Expansions

Ciénega Optimisation

Fresnillo Optimisation Centauro Extension Centauro Deep

Description Optimisation project to increase capacity

Optimisation project to increase capacity

Natural evolution of the Centauro pit at

Herradura

Potential underground mine beneath the

Centauro pit at Herradura

Expected avg. annual production

15 koz gold1.3 moz silver* 3 moz silver 200 koz gold 225 koz gold

Estimated pre-operative capex $55 m* $30 m $155 m $365 m

Status

Evaluation of increasing capacity to

either 5,000TPD or 6,000TPD, following

good exploration results

Post evaluation of alternative options,

smaller expansion to 9,000TPD now planned (from

previous expectation of 10,000TPD)

Evaluation of optimal pit design based on

increased reserves as at YE 2014

Additional exploration activities ongoing to accurately de-lineate

the ore bodies

Expected commissioning 2018 2017 2019 2020

1421/09/2015

Advanced Exploration Projects

Juanicipio (JV with MAG Silver. Fresnillo: 56%) Orisyvo

Key metric estimates (100% basis)

Avg. annual production 10 moz silver30 koz gold


Indicated & inferred resources 205 moz silver811 koz gold

First production 2018

Positive drilling results will result in anincrease in inferred resources Preliminary economic assessment in progress

Assessing a 8,000TPD mine with a DLP processing facility; focusing on higher grade zones of the gold resource base

Key metric estimates

Avg. annual production 136 koz gold


Indicated & inferred resources 8.7 moz gold11.4 moz silver

First production 2018

8km from the Fresnillo mine; Juanicipio’s mineral zones are located in silver-gold rich sulphide shoots of the veins.This project will be developed on a stand-alone basis

1521/09/2015Projects in blue are being prioritised

Strong Organic Growth Pipeline

FresnilloSaucito I & II

Herradura (DLP)

Noche BuenaCiénega - San Ramón

Soledad &Dipolos*

San Julián Pyrites Plant

Orisyvo Juanicipio Cluster Cebollitas Centauro Deep

Fresnillo District Rodeo Guanajuato TajitosCandameña Guachichil Pilarica (Perú)

San Nicolás Guazapares Coneto Lucerito Cebadillas La Yesca Cairo Dátil Amata (Perú) Norias

Sonora and Sinaloa : San Javier Nudo Carina Cerritos Dorado Rosario Bellavista Olivos

Chihuahua: S. Brígida Rosetillas SJPinal Lucero Tempisque

Durango: Pereñita La Huerta El CarmenZacatecas: Urite Atotonilco Corredor Concha-Nieves Argentum Villa García

Perú: Huacravilca Sto. Domingo La Pampa

Systematic Project Generation

Mine Operations

Development Projects

Prospects in drilling

Early stage Exploration

Advanced Exploration

* Operations at Soledad & Dipolos are currently suspended.

Pipeline allows us to focus on projects that have the

potential to be developed into low cost,

world-class mines

34%

1%

35%

30%

2015 Budget: c.US$160m

1621/09/2015

Proven Track Record of Delivering on Time and on Budget

2010 2011 2012 2013 2014

Saucito I commissioning($273m / 9 moz Ag)

San Ramón satellite at Ciénega($20m/ 25 koz Au; 2.5 moz Ag)

Commissioning of DLP($116m / 50 koz Au)

Commercial production at Soledad-Dipolos began

($68m / 100 koz Au)

Milling capacity expansion at Ciénega($25m / increase of 180 kTPY)

Saucito II commissioning($235m / 8 moz Ag)

Commercial production at Noche Buena began($63m / 75 koz Au)

(Total invested / expected average annual

production)

17

2014 2015 2016 2017 2018 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Attributable

Juanicipio - 56%

Orysivo

Juanicipio - 44%

Pyrites Plant

San Julián

Saucito II

Soledad&Dipolos

Noche Buena

Herradura

Ciénega Expansion

Fresnillo

Yr

Thousand Oz

Achieving 65moz Silver by 2018

18

2014 2015 2016 2017 2018 -

100

200

300

400

500

600

700

800

900

1,000

AttributableJuanicipio - 44%

Juanicipio - 56%

Pyrites Plant

Ciénega Expansion

Ciénega

Fresnillo

Soledad&Dipolos

Centauro Deep

Nochebuena

2nd Dynamic Leaching

Dynamic Leaching

Centauro Ramp-UpYr

Thousand Oz

Achieving 750koz Gold by 2018

1921/09/2015* Includes sustaining capex for projects yet to be approved

CAPEX & Exploration Spend

Capex for the full year 2015 now expected to be in the region of US$570m (vs. original budget of c.US$700m) Total risk capital invested in exploration in 2015 now expected to be around US$160m (vs. original budget of c.US$170m)

CAPEX Expectations US$ Million

2015

Sustaining New Prior

• Sustaining $145 $185

• Mining Works (Underground) $105 $87

• Mining Works (Stripping) $89 $89

New Projects • San Julián $130 $133

• Pyrites Plant $1 $60

• Saucito II $53 $53

• Merrill Crowe at DLP $25 $25

• Ciénega’s exp $4 $30

• Others $18 $32 2015 2016 2017 2018 2019 20200

100

200

300

400

500

600

700

800

900

Million Usd

Sustaining Projects Approved Projects for Approval*

2021/09/2015

Advancing our Sustainable Development

Zero fatalities since May 2014

Zero new cases of occupational diseases in 1H15

Fresnillo included in the new “Euronext‐Vigeo EM 70” Environment, Social and Governance (ESG) Index

Maintaining sound relations with personnel and unions

Focusing on effectively engaging with local communities

Minimising the environmental impact of our activities

Conclusions &Outlook


2221/09/2015

Conclusions and Outlook

• Pricing environment continues to be challenging

• However our strategic objectives remain unchanged

– Invest through the cycle, delivering growth and returns for our shareholders

– Low cost operating mines to continue to provide a solid platform for growth

– Development projects to deliver significant growth

– Investment in exploration to further extend growth pipeline

• Financial and operational flexibility allows us to adapt to market dynamics

• Robust contingency plan if prices continue to decline and remain at lower levels for a prolonged period

Remain on track to reach our production targets:45-47 moz of silver and 715-730 koz of gold in 2015

65 moz of silver and 750 koz of gold in 2018

2321/09/2015

Investment Case

World-class assets

Strong organic growth pipeline

Operational excellence

Competitive cash cost performance

Financial strength and flexibility

Strong community support

Appendix


2521/09/2015

2014 Production Overview

*All figures include 100% of production from the Penmont mines (Herradura, Soledad-Dipolos and Noche Buena)

2014 PRODUCTION* 2013 PRODUCTION*

SILVER(Koz)

GOLD(Oz)

SILVER(Koz)

GOLD(Oz)

Fresnillo mine Silver underground mine 20,098 35,676 22,764 33,079

Saucito mine Silver underground mine 15,397 57,227 11,581 45,177

Ciénega mine(including San Ramón satellite mine)

Gold-Silver underground mines 4,075 108,211 4,240 112,053

Herradura mine Gold open pit mine 679 265,564 299 264,562

Noche Buena mine Gold open pit mine 102 129,242 49 108,729

Soledad-Dipolos mine Gold open pit mine - - 31 47,285

Subtotal 40,352 595,920 38,965 610,884

Silverstream Sabinas polymetallic underground mine (operated by Peñoles)

4,648 N/A 3,945 N/A

Total 45,000 595,920 42,910 610,884

2621/09/2015

Income Statement (IFRS) C O N C E P T 1H 2015 % 1H 2014 % $ %

ADJUSTED REVENUES 822.4 750.4 72.0 9.6 HEDGING (METALS) 0.8 0.0 0.8 8,971.1 TREATMENT AND REFINING CHARGES (70.9) (73.3) 2.4 (3.2) REVENUES 752.3 100.0 677.1 100.0 75.2 11.1

ADJUSTED PRODUCTION COST (316.2) (42.0) (291.3) (43.0) (24.8) 8.5 PROFIT SHARING (6.0) (0.8) (8.6) (1.3) 2.7 (31.0) DEPRECIATION (159.7) (21.2) (133.3) (19.7) (26.4) 19.8 HEDGING (MXP/USD EXCHANGE RATE) (10.2) (1.4) (0.2) (0.0) (9.9) 4,153.3 CHANGE IN INVENTORIES 13.1 1.7 60.8 9.0 (47.6) (78.4) UNPRODUCTIVE COST 0.2 0.0 (9.2) (1.4) 9.5 N/A COST OF SALES (478.7) (63.6) (382.0) (56.4) (96.7) 25.3

GROSS PROFIT 273.6 36.4 295.1 43.6 (21.5) (7.3)

ADMINISTRATIVE EXPENSES (17.5) (2.3) (15.4) (2.3) (2.2) 14.1 CORPORATE EXPENSES (15.9) (2.1) (14.5) (2.1) (1.4) 9.9 EXPLORATION EXPENSES (75.4) (10.0) (69.0) (10.2) (6.4) 9.3 OTHER INCOME (EXPENSE) (5.3) (0.7) (7.8) (1.1) 2.5 (32.2) SELLING EXPENSES (6.7) (0.9) (5.1) (0.7) (1.6) 31.9

PROFIT FROM CONTINUING OPERATIONS 152.9 20.3 183.4 27.1 (30.6) (16.7)

SILVERSTREAM REVALUATION 1.8 0.2 47.3 7.0 (45.5) (96.3) FINANCE INCOME / (EXPENSE) (2.9) (0.4) (24.5) (3.6) 21.6 (88.2) FOREIGN EXCHANGE GAIN / (LOSS) (15.6) (2.1) 2.0 0.3 (17.6) (875.4)

PROFIT BEFORE INCOME TAX 136.1 18.1 208.2 30.8 (72.1) (34.6)

MINING RIGHT (11.2) (1.5) (13.1) (1.9) 1.9 (14.5) INCOME TAX EXPENSE (48.6) (6.5) (58.1) (8.6) 9.5 (16.3)

PROFIT FOR THE PERIOD 76.4 10.2 137.1 20.2 (60.7) (44.3)

ATTRIBUTABLE TO:

EQUITY SHAREHOLDERS OF THE GROUP 76.5 10.2 130.1 19.2 (53.6) (41.2)

MINORITY INTEREST (0.1) (0.0) 7.0 1.0 (7.1) (101.9)

76.4 10.2 137.1 20.2 (60.7) (44.3)

EBITDA 317.9 42.3 324.5 47.9 (6.7) (2.1)

ACCUM JUNE CHANGE

N/A

2721/09/2015

Cash Flow (IFRS)

(Million USD)C O N C E P T 1H 2015 1H 2014 $ %CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 314.9 336.7 (21.8) (6.5) WORKING CAPITAL (18.0) (71.5) 53.5 (74.8) INCOME TAX AND PROFIT SHARING PAID (33.5) (110.5) 77.0 (69.7) NET CASH FROM OPERATING ACTIVITIES 263.4 154.7 108.8 70.3

OTHER PROCEEDS SILVERSTREAM CONTRACT 22.7 31.4 (8.7) (27.6) OTHERS 0.8 2.6 (1.8) (70.3) PROCEEDS FROM THE SALE OF PROPERTY, PLANT AND EQUIPMENT 4.3 5.3 (1.0) (18.1)

CAPITAL CONTRIBUTION 3.1 1.6 1.5 89.2 TOTAL OTHER PROCEEDS 30.9 40.9 (10.0) (24.5)

PURCHASE OF PROPERTY, PLANT AND EQUIPMENT (229.1) (212.0) (17.2) 8.1 DIVIDENDS PAID (22.1) (50.1) 28.1 (56.0) NET INTEREST RECEIVED (PAID) (17.1) (19.4) 2.2 (11.6)

USES OF CASH (268.3) (281.4) 13.1 (4.7)

NET INCREASE / (DECREASE) IN CASH DURING THE PERIOD 26.0 (85.9) 111.9 (130.2)

EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS 0.4 (1.5) 1.9 N/A

CASH AND CASH EQUIVALENTS AT 01 JANUARY 449.3 1,251.7 (802.4) (64.1) CASH AND CASH EQUIVALENTS AND SHORT TERM INVESTMENTS AT 30 JUNE 475.7 1,164.3 (688.5) (59.1) - -

CHANGE

2821/09/2015

Balance Sheet (IFRS)

(Million USD)Concept 30-JUNE-15 31-DIC-14 %

AssetsCash and Investments 475.7 449.3 5.9 Trade and Other Receivables 430.7 456.1 (5.6) Inventories 321.7 305.6 5.3 Prepaid Expenses 1.7 3.4 (50.0) Silverstream 373.6 392.3 (4.8) Derivative Financial Instruments 27.9 14.6 91.8 Property, Plant and Equipment 2,047.8 1,969.4 4.0 Other Assets (Long term) 144.4 151.5 (4.7)

Total Assets 3,823.6 3,742.2 2.2

Liabilities

Profit Sharing 6.2 11.6 (46.1) Other Liabilities (Short term) 125.3 128.2 (2.3) Retirement and Pension Plan Reserves 13.9 13.8 0.7 Deferred Taxes 353.5 336.8 5.0 Senior Notes 800.0 796.2 0.5 Other Liabilities ( Long term) 165.8 153.8 7.8

Total Liabilities 1,464.7 1,440.3 1.7

Share Capital and Share Premium 1,153.8 1,522.4 (24.2) Share Capital Subscribed 368.5 0.0 N/ARetained earnings 1,320.2 1,265.8 4.3 Other Accounts (513.2) (512.9) 0.1

Stockholder's Equity 2,329.4 2,275.3 2.4 Minority Interest 29.5 26.5 11.1

Total Stockholder´s Equity 2,358.9 2,301.8 2.5

Total Liabilities and Stockholder's Equity 3,823.6 3,742.2 2.2

Change

2921/09/2015

1H 2015 1H 2014 % CHANGECOST PER TONNE *MINE UNIT

Fresnillo US$/TONNE 48.53 45.02 7.8%

Saucito US$/TONNE 42.65 62.09 -31.3%

Ciénega US$/TONNE 66.66 67.61 -1.4%

Herradura US$/TONNE 8.71 8.03 8.5%

Noche Buena US$/TONNE 8.16 8.89 -8.2%

Cost Per Tonne (IFRS)

* Cost per tonne is calculated as total production costs less depreciation, profit sharing and the exchange rate hedging effects.** Cost per tonne excluding unproductive costs

**

**

**

**

3021/09/2015

1H 2015 1H 2014 % CHANGECASH COST *

MINE UNIT

Fresnillo PER OZ. SILVER 5.75 6.13 -6.2%

Saucito PER OZ. SILVER 0.64 3.36 -81.1%

Ciénega PER OZ. GOLD (By-prod.) 296.99 180.64 64.4%

PER OZ. GOLD (Equiv.) 702.08 649.50 8.1%

PER OZ. GOLD (Co-prod.) 643.83 586.86 9.7%

PER OZ. SILVER (Co-prod.) 8.79 9.09 -3.3%

Herradura PER OZ. GOLD 490.18 403.74 21.4%

Noche Buena PER OZ. GOLD 897.91 737.27 21.8%

Cash Cost (IFRS)

* Cash cost per ounce is calculated as total cash cost (cost of sales plus treatment and refining charges less depreciation) less revenues from by-products divided by the silver or gold ounces sold.

**

****

** For Ciénega we have also shown the calculation on a co-product basis, and an equivalent ounces basis. The two co- product lines should be considered together.

3121/09/2015

All In Sustaining Cost (US$/Oz)*

* All in sustaining cost is calculated as traditional cash cost plus on-site general, corporate and administrative costs, community costs related to current operations, capitalised stripping & underground mine development, sustaining capital expenditures and remediation expenses. Life of mine weighted average basis is shown from 2015 onwards for each mine

LIFE OF MINE

1H 2015 1H 2014 % CHANGE WEIGHTED AVERAGECASH COST *

MINE UNIT

Fresnillo PER OZ. SILVER 11.05 9.93 11.3% 6.20 (2023)

Saucito PER OZ. SILVER 5.95 7.66 -22.3% 6.00 (2021)

Ciénega PER OZ. GOLD 649.97 594.58 9.3% 803.12 (2026)

Herradura PER OZ. GOLD 873.23 839.51 4.0% 716.95 (2019)

Noche Buena PER OZ. GOLD 940.87 969.02 -2.9% 1,124.49(2019)

32

Consolidated Cost Inflation(1H15 vs. 1H14, USD Based)

Unit Price WeightedIncrease % Weight (*) Average

Labour Unionized Personnel -8.3% 7.4% -0.6%Employees -9.3% 2.7% -0.3%Weighted -8.5%

Operating Materials -2.1% 21.3% -0.4%

Energy Electric Energy -31.3% 7.4% -2.3%Diesel -5.9% 9.4% -0.6%Gasoline -5.7% 1.4% -0.1%Weighted -16.1%

Contractors -5.7% 29.4% -1.7%

Maintenance -4.8% 14.4% -0.7%

Freights -0.8% 1.1% 0.0%

Insurance -5.0% 0.8% 0.0%

Others -3.0% 4.7% -0.1%-3.3%

TOTAL 1.00 -6.79%

(*) Not including Depreciation and Profit Sharing

33

Breakdown of Adjusted Production Costs (1H15)

Adj Prod Cost: US$316.2m

Op MatMainten

Energy & DieselContracPerson Others

1

1 Contractors are hired to execute specific tasks. Fees paid include labour, operating materials, equipment, diesel and any other items required to fulfill such tasks.

Freights

Fresnillo Ciénega Herradura Sol & Dip Saucito Noche Buena Other Consol

Personnel 11.46 19.6% 5.84 13.4% 9.85 10.3% 0.00 0.0% 1.27 2.6% 3.46 4.9% 0.04 31.93 10.1% Maintenance and repairs 8.47 14.5% 4.00 9.2% 18.33 19.3% 0.00 0.0% 5.96 12.1% 8.68 12.2% 0.01 45.45 14.4% Operating materials 12.03 20.5% 9.88 22.7% 26.02 27.3% 0.00 0.0% 8.74 17.7% 14.96 21.1% 0.42 72.05 22.8% Diesel 1.46 2.5% 0.58 1.3% 19.17 20.1% 0.00 0.0% 0.33 0.7% 8.28 11.7% 0.00 29.82 9.4% Electricity 7.76 13.2% 3.30 7.6% 4.78 5.0% 0.00 0.0% 6.46 13.1% 0.76 1.1% 0.22 23.28 7.4% Total Energy 9.22 15.7% 3.88 8.9% 23.95 25.1% 0.00 0.0% 6.79 13.7% 9.04 12.7% 0.22 53.10 16.8% Contractors 13.65 23.3% 16.39 37.6% 10.85 11.4% 0.00 0.0% 21.04 42.6% 31.59 44.5% (0.28) 93.23 29.5% Freight 0.72 1.2% 1.08 2.5% 1.97 2.1% 0.00 0.0% 0.42 0.9% 0.88 1.2% 0.00 5.08 1.6% Others 3.00 5.1% 2.49 5.7% 4.27 4.5% (3.59) 0.0% 5.21 10.5% 2.32 3.3% 1.64 15.34 4.9%

Production Costs 58.55 100.0% 43.57 100.0% 95.23 100.0% (3.59) 0.0% 49.42 100.0% 70.93 100.0% 2.05 316.16 100.0%

3421/09/2015

Contribution by mine to Gross Profit

Gross Profit from operating units: US$278.8

1H 15 1H 14 US$ %

Fresnillo 50.2 18.0% 117.4 37.5% (67.2) (57.2) Herradura 93.6 33.6% 59.9 19.1% 33.7 56.3 Ciénega 10.3 3.7% 28.6 9.1% (18.3) (64.0) Saucito 127.2 45.6% 85.0 27.2% 42.2 49.6 Sol & Dipolos (3.6) -1.3% (5.0) -1.6% 1.4 N/A Noche Buena 1.1 0.4% 26.9 8.6% (25.8) (95.9) Total for operating mines 278.8 100.0% 312.7 100.0% (33.9) (10.8)

MXP/USD exchange rate hedging gains (10.2) (0.2) (9.9) N/A

Other subsidiaries 5.0 (17.4) 22.4 N/A

Total Fresnillo plc 273.6 295.1 (21.5) (7.3)

CHANGE

3521/09/2015

Margins by mine (Metal price – AISC*)(1H15 vs. 1H14)

Stoppage of operations continued at Soledad-Dipolos*All in Sustaining Cost

(USD/Oz)

Fresnillo Ciénega HerraduraSaucito NB

Ounces Sold

10.2moz 7.4moz 6.1moz 10.6moz 48.6koz 39.8koz 103.8koz 188.3koz 63.8koz 68.4koz Chg. + -27.4% Chg. +73.3% Chg. -18.3% Chg. +81.9% Chg. +7.2%

3621/09/2015

1H 15 1H 14 %

Ore processed k t 1,206 1,382 (12.7)

Production

Silver m oz 7.8 10.5 (25.8)

Gold k oz 15.1 15.9 (5.0)

Ore grade

Silver g/t 220 258 (14.9)

Gold g/t 0.50 0.46 10.0

Cash cost $/ silver oz 5.75 6.13 (6.2)

AISC $/ silver oz 11.05 9.93 11.3

OperationsFresnillo Mine

H1 Performance

H1 Summary

1H15 silver production decreased due to:

Lower silver ore grade reflecting limited access to high ore grade areas

Lower volumes processed due to development delays and stope instability

Actions taken:

Enhanced contractor supervision

Additional contractors

Measures to manage stope instability

Development rates of 4,150m / month reached in June

Looking Forward Actions taken should allow development rates of c.4,000m / month to

be maintained

Advancing declines in order to reach higher grade veins & regain operating stope flexibility

This will create a platform to stabilise ore grades & volumes processed in 3Q15 and begin to see improvement in grades & production volumes in 4Q15

Silver ore grades are expected to move towards reserve grade once operating stope flexibility has been regained

3721/09/2015

1H 15 1H 14 %

Ore processed k t 1,159 662 75.1

Production

Silver m oz 11.4 6.3 80.3

Gold k oz 44.7 26.8 66.5

Ore grade

Silver g/t 341 321 6.3

Gold g/t 1.50 1.49 0.6

Cash cost $/ silver oz 0.64 3.36 (81.1)

AISC $/ silver oz 5.95 7.66 (22.3)

OperationsSaucito Mine

H1 Performance

H1 Summary

1H15 silver production increased due to:

Increase in volume processed due to Saucito II start up

Higher silver ore grade resulting from increased ore throughput from higher ore grade veins

Improved control of dilution

Milling efficiencies at Saucito I plant (vibrating screens)

Saucito II now ramped up

Significantly ahead of the three year timeframe initially anticipated

Saucito I and II now operating at full capacity

In 1H16 plan to optimise the capacity of Saucito II

Install vibrating screens similar to those installed at Saucito I

Total nominal capacity of Saucito expected to increase to 7,200 TPD as a result (vs. originally planned capacity of 6,000TPD)

Ore grade and volumes processed were unusually high in 1H15 and are not expected to remain at these levels going forward

We will continue to process ore from development and production stopes in 2H15 and expect silver ore grade to average between 270-300 g/t

Looking Forward

3821/09/2015

1H 15 1H 14 %

Ore processed k t 653.6 663.4 (1.5)

Production

Gold k oz 45.7 54.0 (15.3)

Silver m oz 2.15 2.07 3.7

Ore grade

Gold g/t 2.25 2.62 (14.0)

Silver g/t 117 111 5.2

Cash cost $/ gold oz 297 181 64.4

AISC $/ gold oz 650 595 9.3

OperationsCiénega Mine

H1 Performance

H1 Summary

1H15 gold production decreased due to:

Expected lower ore grade due to depletion of high gold ore grade areas with wider veins at Ciénega main mine

Maintenance delays (mill engine replacement) in June had a smaller impact

1H15 silver production increased due to:

Higher silver ore in veins at San Ramón satellite mine

Slightly offset by decrease in volume of ore processed

Evaluation of increasing capacity to either 5,000TPD or 6,000TPD, following good exploration results

Intensifying exploration efforts at areas of influence around Ciénega such as the Cebollitas cluster, which are expected to contribute to Ciénega’s future production as satellite mines

2H15 expected average gold ore grade of c.2 g/t and average silver ore grade of c.120 g/t

Looking Forward

3921/09/2015

1H 15 1H 14 %

Ore processed m t 10.9 9.1 20.5

Total volume hauled m t 57.7 53.2 8.3

Production

Gold k oz 188 105 79.9

Ore grade

Gold g/t 0.74 0.71 3.2


AISC $/ gold oz 873 840 4.0

OperationsHerradura Mine

H1 Performance

H1 Summary

1H15 gold production increased due to:

Increase in ore processed with mine being fully operational post suspension in 1H14

DLP operational for full half post start-up in March 2014, resulting in increase in ore processed & higher ore grades

Higher overall average speed of recovery

Increase in ore grade

On track to reach steady state production in 4Q15 after ramp-up post suspension and resolution of solution processing issues

Controlling planned inventory increase at pads appropriately given temporary solution processing constraints

Gold inventory levels of c.170koz (vs. 200koz expected previously) should allow optimal balance between efficiency of leaching process and production costs

Inventory levels to move towards this level in H2 once steady state reached

2H15 expected average gold ore grade of around 0.7 g/t

Looking Forward

4021/09/2015

1H 15 1H 14 %

Ore processed m t 8.7 7.5 16.5

Total volume hauled m t 42.3 45.1 (6.3)

Production

Gold k oz 70.5 64.5 9.3

Ore grade

Gold g/t 0.48 0.54 (11.0)


AISC $/ gold oz 941 969 (2.9)

OperationsNoche Buena Mine

H1 Performance

H1 Summary

1H15 gold production increased due to:

Higher volume of gold recovered, driven by increased irrigation area

Higher volumes of ore deposited on the leaching pads resulting from lower than expected stripping ratio at mined areas

Partly offset by lower ore grade as ore deposited from higher benches to reduce haulage costs, rather than deeper higher ore grade areas

Continue to focus on containing costs

2H15 expected average gold ore grade of around 0.45 g/t

Looking Forward