OPERATING COST

OPEX

AERIS MINING COMPANY

PROJECT DESIGN FOR ROSARIO MINERAL PROCESSING

PLANT

OPEX

PROJECT N° 20192ME525R

REVIEWE
REV. BY ISSUED FOR DATE CHK’D
D

E. Chavez / M. Gómez /
A H. Parra Internal Review 9/17/2019 ✓
A. Mejía C. Sovero

E. Chavez / M. Gómez /
B H. Parra Internal Review 10/19/2019 ✓
A. Mejía C. Sovero

E. Chavez / M. Gómez /
0 H. Parra Internal Review 11/21/2019 ✓
A. Mejía C. Sovero
 OPERATING COST
OPEX
Section 0.1.0 CONTENT Sheet 1 of 1

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

0.1.0 CONTENT

COMMENT
SECTION WBS N° DESCRIPTION DATE
S
0.1.0 CONTENT
0.2.0 INTRODUCTION
0.3.0 CALCULATION
0.4.0 SUMMARY
 OPERATING COST
OPEX
Section 0.2.0 INTRODUCTION Sheet 1 of 2

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

0.1.0 INTRODUCTION

The cost of operation is that which is incurred once a project is working; It is related to a period of time ($ per
month or year). Preferably, the estimate is annual.

ESTIMATES BASES

In the cost of this project, the salaries of people directly and indirectly involved with the production process of
the concentrate (engineers, technicians, operators, etc.) have been considered acording to the current market in
Peru.

Direct and indirect materials have been considered within the supply group, such as reagents, spare parts and
maintenance materials. Spare parts and maintenance were considered as 1% of the cost of equipment. Within the
service group, the energy consumption of each equipment was mainly considered.

The cost of energy is 0.065 kw - hr.

 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 1 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

Client AERIS MINING COMPANY

Project PROJECT DESIGN FOR ROSARIO MINERAL PROCESSING PLANT

Stage SCOPING STUDY

Date 11/21/2019 US $ 1 = 3.34 N.S.
Checking H. Parra

WORK FORCE
Mineral production 4418.9 TMD
Mineral production 132567.4 TM-month
TECHNICAL INDEX
TASK MONTHLY
DAILY DAY SOCIAL TOTAL
DESCRIPTION PER SALARY
N. SOLES LAWS MONTH US$ Task/TM US $/TM
MONTH US$ US$

Employees
1 COO 30 120 1,077.84 538.92 1,616.77 0.0122
1 Mill Superintendent 30 100 898.20 449.10 1,347.31 0.0102
1 Superintendent of maintenance 30 100 898.20 449.10 1,347.31 0.0102
2 Mill Supervisor 30 80 718.56 359.28 1,077.84 0.0081
1 Mechanical Maintenance Supervisor 30 70 628.74 314.37 943.11 0.0071
1 Electrical Maintenance Supervisor 30 70 628.74 314.37 943.11

Sub Total 1 180 4,850.30 2,425.15 7,275.45 0.0549

Workers
2 Crushing Operator 30 40 718.56 359.28 2,155.69 0.0002 0.0163
2 Milling Operator 30 40 718.56 359.28 2,155.69 0.0002 0.0163
2 Flotation Operator 30 40 718.56 359.28 2,155.69 0.0002 0.0163

Sub Total 2 90 2,155.69 1,077.84 6,467.07 0.0007 0.0488

Total 1+2 270 7,005.99 3,502.99 13,742.51 0.0020 0.1037
Otros (5% 1+2) 350.30 175.15 687.13 0.0052
TOTAL WORKFORCE 7,356.29 3,678.14 14,429.64 0.1088

SUPPLIES
MONTHLY UNITY TOTAL UNITY COST
Ratio
MILLS COMSUMP. UNITY COST MONTH Consump.
US$/TM
g/t (kg/month) (USD/kg) (USD/Month) / TM
Steel
Grinding media 800.00 106053.910738 (USD/kg) 1.10 116,659.30 0.8 0.8800
Primary mill - liners 250.00 33141.8471056 (USD/kg) 0.15 4,971.28 0.25 0.0375
Secundary mill - liners 250.00 33141.8471056 (USD/kg) 0.15 4,971.28 0.25 0.0375
Re - grinding mill - liners 110.00 14582.4127265 (USD/kg) 0.15 2,187.36 0.11 0.0165
Maintenance 1 % Equipment cost 28,865.37 0.2177

Sub total 157,654.59 1.1892

Others ( 5 %) 7882.73 0.0595
TOTAL SUPPLIES 165,537.32 1.2487
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 2 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

SERVICES
TECHNICAL INDEX
MONTHLY UNIT COST TOTAL
DESCRIPTION UNITY Consump./
CONSUMP. MONTH US$ US $/TM
US $/Unity TM

Electric Power
Crushing 334,491.19 Kw-hr 0.065 21,741.93 2.5232 0.1640
Grinding 2,506,554.22 Kw-hr 0.065 162,926.02 18.9078 1.2290
Rougher - Scavenger stage 1,378,053.60 Kw-hr 0.065 89,573.48 10.3951 0.6757
Regrinding 876,943.20 Kw-hr 0.065 57,001.31 6.6151 0.4300
Cleaning Flotation stage 192,676.95 Kw-hr 0.065 12,524.00 1.4534 0.0945
Condiciotioner 40,088.83 Kw-hr 0.065 2,605.77 0.3024 0.0197

Sub total 5,328,807.99 Kw-hr 0.065 346,372.52 40.1970 2.6128

Others (5% sub total) 17,318.63 0.1306
TOTAL SERVICES 363,691.15 2.7434

TOTAL GENERAL MONTHLY 543,658.11 4.1010

TOTAL GENERAL ANUALLY 6,523,897.30
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 3 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

Client AERIS MINING COMPANY

SAMPLING CONTROL IN THE MINERAL CONCENTRATION PROCESS
Project
OF THE ROSARIO PLANT OF THE AERIS MINING COMPANY
Stage SCOOPING STUDY
Date 11/21/2019 US $ 1 = 3.34 N.S.
Checking H. Parra

WORKFORCE
Mineral production 4418.9 TMD
Mineral production 132567.4 TM-Month
TECHNICAL INDEX
TASK MONTHLY
DAILY DAY SOCIAL TOTAL
DESCRIPTION PER SALARY
N. SOLES LAWS MONTH US$ Task/TM US $/TM
MONTH US$ US$

Employees
1 Chemical Laboratory Supervisor 30 70 628.74 314.37 943.11 0.007

Sub Total 1 628.74 314.37 943.11 0.007

Technicians
1 Chemical Laboratory technician 30 45 404.19 202.10 606.29 0.005

Sub Total 2 404.19 202.10 606.29 0.005

Workers
1 Distribution operator 30 40 359.28 179.64 538.92 2.26E-04 0.004
1 Filter operator 30 40 359.28 179.64 538.92 2.26E-04 0.004

Sub Total 3 60 718.56 359.28 1,077.84 4.53E-04 0.008

Total 1+2+3 60 1,751.50 875.75 2,627.25 4.53E-04 0.020
Other (5% de 1+2+3) 87.57 43.79 131.36 0.001
Total workforce 1,839.07 919.54 2,758.61 0.021
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 4of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

SERVICES
TECHNICAL INDEX
MONTHLY UNIT COST TOTAL
DESCRIPTION UNITY Consump./
CONSUMP. MONTH US$ US $/TM
US $/Unity M

Electric Power
Symens 250.56 Kw-hr 0.065 16.29 0.0019 0.0001
PSI 300 805.79 Kw-hr 0.065 52.38 0.0061 0.0004
Courier 5i 805.79 Kw-hr 0.065 52.38 0.0061 0.0004
Slurry sampler (3) 2,217.41 Kw-hr 0.065 144.13 0.0167 0.0011
Thinckener concentrate 1,002.22 Kw-hr 0.065 65.14 0.0076 0.0005
Holding tank 501.11 Kw-hr 0.065 32.57 0.0038 0.0002
Filter concentrate 50,400.18 Kw-hr 0.065 3,276.01 0.3802 0.0247
Weighbridge 67.20 Kw-hr 0.065 4.37 0.0005 0.0000
Thinckener 2,014.46 Kw-hr 0.065 130.94 0.0152 0.0010

Sub total 58,064.72 Kw-hr 0.065 3,774.21 0.4380 0.0285

Others (5% sub total) 188.71 0.0014
TOTAL SERVICES 3,962.92 0.0299

TOTAL GENERAL MONTHLY 6,721.52 0.0507

TOTAL GENERAL ANUALLY 80,658.30
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 5 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

Client AERIS MINING COMPANY

Project DESIGN OF AN EVIROMENTAL PLANT

Satge SCOPING STUDY

Date 11/21/2019 US $ 1 = 3.34 N.S.
Checking H. Parra

WORKFORCE
Producc. De Mineral 4418.9 TMD
Producc. De Mineral 132567.4 TM-month
MONTHLY TOTAL TECHNICAL INDEX
TASK PER DAILY DAY N. SOCIAL
DESCRIPTION SALARY MONTH
MONTH SOLES LAWS Task/TM US $/TM
US$ US$ US$

2 Metallurgical Operator 30 45 404.19 202.10 1,212.57 0.0002 0.0003

2 Tailling Operator 30 45 404.19 202.10 1,212.57 0.0002 0.0003

Total 60 808.38 404.19 2,425.15 0.0005 0.0183

Others (5% 1+2) 40.42 20.21 121.26 0.0009
TOTAL WORKFORCE 848.80 424.40 2,546.41 0.0192

SERVICES
TECHNICAL INDEX
MONTHLY UNIT COST TOTAL
UNITY
CONSUMP. MONTH US$ Consump./ US $/TM
US $/Unity TM

Electric Power
Cone Thickener 1,002.22 Kw-hr 0.07 65.14 0.0076 0.0005
Mixers 8,719.32 Kw-hr 0.07 566.76 0.0658 0.0043

Sub total 9,721.54 Kw-hr 0.07 631.90 0.0733 0.0048

Others (5% sub total) 31.60 0.0002
TOTAL SERVICES 663.50 0.0050

TOTAL GENERAL MONTHLY 3,209.90 0.0242

TOTAL GENERAL ANUALLY 38,518.83
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 6 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

Client AERIS MINING COMPANY

Project DESIGN OF A DISALINATION PLANT

Stage SCOPING STUDY

Date 11/21/2019 US $ 1 = 3.34 N.S.
Checking H.Parra

WORKFORCE
Water production 9300.0 m3/D
Water produccion 279000.0 m3/month
TECHNICAL INDEX
MONTHLY TOTAL
TASK PER DAILY DAY N. SOCIAL
DESCRIPTION SALARY MONTH
MONTH SOLES LAWS Task/TM US $/TM
US$ US$ US$

Employees
1 Desalination Process - - 598.802395 299.4011976 898.20 0.007
Supervisor
- -

Sub Total 1 598.802395 299.4011976 898.20 0.003

Technicians
2 Pickup operator 30 45 404.191617 202.09580838 1,212.57 0.0001 0.0043
2 Chemical and physical process 30 45 404.191617 202.09580838 1,212.57 0.0001 0.0043
operator
2 R.O. process operator 30 45 404.191617 202.09580838 1,212.57 0.0001 0.0043
Sub Total 2 90 1213 606 3,637.72 0.0007 0.0130

Workers
2 Operator pumping stations 30 40 359 180 1,077.84 2.26E-04 0.008
2 Desalination plant operator 30 40 359 180 1,077.84 2.26E-04 0.008

Sub Total 3 60 719 359 2,155.69 4.53E-04 0.008

Total 1+2+3 150 2530 1265 3,794.91 1.13E-03 0.014
Others (5% de 1+2+3) 126 63 189.75 0.001
TOTAL WORKFORCE 2656 1328 3,984.66 0.014
US$/TM 0.02

SUPPLIES

MONTHLY UNIT COST TOTAL TECHNICAL INDEX

DESCRIPTION UNITY
CONSUMPT. MONTH US$
Consump./
US $/Unity US $/TM
TM
FeCl3 1929.44 Kg 0.3 578.83 0.0044
NaClO 40196.57 Kg 0.4 16,078.63 0.1213
H2SO4 3937.62 Kg 0.25 984.41 0.0074
NaHSO3 6577.62 Kg 0.4 2,631.05 0.0198

Sub Total 20,272.91 0.07

Others (5% sub total) 1,013.65 0.004
TOTAL SUPPLIES 21,286.56 0.08
US$/TM 0.08
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 7 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

SERVICES
TECHNICAL INDEX
MONTHLY UNIT COST TOTAL
UNITY Consump./
CONSUMPTION MONTH US$ US $/TM
TM
US $/Unity
ELECTRIC POWER

Sub total 1395000 Kw-hr 0.065 90675

Others (5% de sub total) 4534

Total Electric power 0.065 95,208.75 0.34

pipe transport
pumps and pipes 418500.0

Total Pipe transport 418500.0 1.50

TOTAL SERVICES 513,708.75 1.8413

US$/TM 1.99

TOTAL GENERAL MONTHLY 538,979.97 1.93

TOTAL GENERAL ANUALLY 6,467,759.58

US$/TM 2.09
 OPERATING COST
OPEX
Section 0.3.0 CALCULATION Sheet 8 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

Client AERIS MINING COMPANY

Project REAGENT PLANT
Stage SCOPING STUDY
Date 11/21/2019 US $ 1 = 3.34 N.S.
Checking H. Parra

SUPPLIES
TECHNICAL INDEX
MONTHLY UNIT COST TOTAL
DESCRIPTION UNITY Consump./
CONSUMPTION MONTH US$ US $/TM
TM
US $/Unity
Reagents
Lime 37649.14 Kg -month 0.14 5,331.12 0.2840 0.0402
Potassium amil xantate 9279.72 Kg -month 2.832 26,280.16 0.0700 0.1982
Aerofloat 238 9279.72 Kg -month 4.72 43,800.27 0.0700 0.3304
Aeropromoter 3501 6628.37 Kg -month 5.192 34,414.49 0.0500 0.2596
Carboxymethyl cellulose 6628.37 Kg -month 0.59 3,910.74 0.0500 0.0295
Sodium sulphite 19885.11 Kg -month 1.062 21,117.98 0.1500 0.1593
Sodium silicate 92797.17 Kg -month 0.354 32,850.20 0.7000 0.2478
Methyl isobutyl carbonyl 6628.37 Kg -month 2.714 17,989.39 0.0500 0.1357
Sub Total 4 185,694.35 1.4008
Others (5% sub total 4) 9,284.72 0.0700
TOTAL SUPPLIES 194,979.07 1.4708

3
TECHNICAL INDEX
MONTHLY UNIT COST TOTAL
DESCRIPTION UNITY Consump./
CONSUMPTION MONTH US$ US $/TM
TM
US $/Unity
ELECTRIC POWER
Lime 41.581 Kw-hr 0.065 2.70 0.00031 0.00002
Potassium amil xantate 1.528 Kw-hr 0.065 0.10 0.00001 0.00000
Aerofloat 238 0 Kw-hr 0.065 0.00 0.00000 0.00000
Aeropromoter 3501 0 Kw-hr 0.065 0.00 0.00000 0.00000
Carboxymethyl cellulose 55.008 Kw-hr 0.065 3.58 0.00041 0.00003
Sodium sulphite 1.528 Kw-hr 0.065 0.10 0.00001 0.00000
Sodium silicate 0 Kw-hr 0.065 0.00 0.00000 0.00000
Methyl isobutyl carbonyl 0 Kw-hr 0.065 0.00 0.00000 0.00000

Sub Total 5 6.48 0.00005

Others (5% de sub total 5) 0.32 0.00000
TOTAL SERVICES 6.80 0.00005

TOTAL GENERAL MONTHLY 194,985.87 1.4708

TOTAL GENERAL ANUALLY 2,339,830.45
 OPERATING COST
OPEX
Section 0.4.0 SUMMARY Sheet 9 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

SUMMARY

CAPACITY: 4110 MTPH

UNITY
DESCRIPTION COST
COST DISTRIB.
USD/YEAR USD/ton
Rosario Plant 4110 TMD
Workforce 246498.61 0.164 2.12%
Electric Power 7158700.74 4.772 61.67%
Supplies 4203185.69 2.802 36.21%
SUB - TOTAL 11,608,385.04 7.74 100.00
TOTAL 11,608,385.04 7.74 100.00

Rosario Plant 4110

TMD

Workforce; 2.12%
Supplies;
36.21%

Electric
Power;
61.67%
 CAPITAL COST
CAPEX

AERIS MINING COMPANY

PROJECT DESIGN FOR ROSARIO MINERAL PROCESSING PLANT

CAPEX

PROJECT N° 20192ME525R

REV. BY REVIEWED ISSUED FOR DATE CHK’D

E. Chavez/M. Gómez / A.
A H. Parra Internal Review 9/17/2019 ✓
Mejía / C. Sovero

E. Chavez/M. Gómez / A.
B H. Parra Internal Review 10/19/2019 ✓
Mejía / C. Sovero

E. Chavez/M. Gómez / A.
0 H. Parra Internal Review 11/21/2019 ✓
Mejía / C. Sovero
 CAPITAL COST
CAPEX
Section 0.1.0 CONTENT Sheet 1 of 1

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

0.1.0 CONTENT

SECTION WBS N° DESCRIPTION DATE COMMENTS

0.1.0 CONTENT

0.2.0 INTRODUCTION

0.3.0 SUMMARY

0.4.0 EQUIPMENTS
 CAPITAL COST
CAPEX
Section 0.2.0 INTRODUCTION Sheet 1 of 2

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

0.1.0 INTRODUCTION

The cost of capital is one of the elemnts that defined the bussines, . The cost of capital include the fixed investment and working cost. The fixed
investment is the cost of physical and intangible assets necessary for the project to be real, which are distributed directly or indirectly to productio
and the working cost is the capital necessary to make a plant start its operation immediately after it has been built.

ESTIMATES BASES

All equipment costs were taken from InfoMine USA. (1998). We consider these equipment costs as FOB costs, in order to obtain the CIF cost it
was multiplied with a factor of 1.08 and to obtain them in plant positions a freight of USD 600.00 was considered.

To update the equipment cost values, the M&S Index extracted from Chemical Engineering magazine were used. For the year 2019 the factor is
1716.2 while for the year 2014 is 1566.9. We chosed 2014 like the first year because the edition of the InfoMine USA were in 2014.

The calculation of the energy consumed per month, the value given in HP was multiplied by 0.745 to covert it to kw, the it was multiplied by the
number of hours worked per day.
It was considered 28 days per month to calculate the monthly energy.
 CAPITAL COST
CAPEX
Section 0.3.0 SUMMARY Sheet 1 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

ITEM SECTION % TOTAL (USD)

DIRECT COST

MAIN PLANT (1) 22,626,287.75

1 SECTION-CRUSHING 3,915,401.09
2 SECTION-GRINDING 8,977,224.05
3 SECTION-COPPER ROUGHER - SCAVENGER FLOTATION 5,689,306.33
4 SECTION-REGRINDING 2,863,779.08
5 SECTION-COPPER CLEANER FLOTATION STAGE 1,004,577.20
6 SECTION-THICKENING OF CONCENTRATES 106,000.00
7 SECTION-CONCENTRATE FILTER 70,000.00

AUXILIARY PLANTS 8,863,212.00

8 REAGENTS PLANT 113,512.00
9 CONTROL PLANT 1,044,700.00
10 ENVIROMENTAL 5,705,000.00
11 DISALINATION PLANT 2,000,000.00
12 OTHER EQUIPMENTS 3,148,949.98

SUB-TOTAL 34,638,449.73
12 LAND MANAGEMENT 15% 5,195,767.46
13 INSTRUMENTATION AND CONTROLS 8% 2,771,075.98
14 PIPING 7% 2,424,691.48
15 ELECTRICAL INSTALLATIONS (PLACED) 30% 10,391,534.92
16 CIVIL WORKS (INCLUDING SERVICES) 40% 13,855,379.89
17 SERVICE FACILITIES (ASSEMBLED) 30% 10,391,534.92
SUB-TOTAL DIRECT COST (USD) 79,668,434.38

INDIRECT COST

18 EPCM (2) 8.0% 6,883,352.73

20 INDIRECT CONSTRUCTION COSTS (3) 8.0% 6,373,474.75
23 FIRST FILL AND SPARE PARTS (4) 3.0% 2,581,257.27
25 COMMISSIONING AND START-UP (5) 2.0% 1,720,838.18
26 FREIGHT AND TRANSPORTATION (6) 3.0% 2,581,257.27
SUB-TOTAL INDIRECT COST (USD) 20,140,180.21

TOTAL COST (DC+ IC) 99,808,614.59

CONTINGENCY

19 CONTINGENCY 35% 30,114,668.20

SUB-TOTAL CONTINGENCY (USD) 30,114,668.20

129,923,282.79
TOTAL GENERAL

1 Consider the main areas of the process.

2 Expenses for project management and control, engineering performance, procurement service, construction management,

quality assurance and control are considered.

These are the costs that are not considered by the construction contractor such as large
3

cranes, aggregates plant, concrete plant.

4 They are the costs for the first filling as well as the spare parts for the mechanical equipment and some electrical

equipment in the start-up and the first year of operation.

5 All materials, equipment and labor are considered for the commissioning of the equipment supplied by the supplier

6 All transportation costs of the permanent materials and equipment of the project are considered
 CAPITAL COST
CAPEX
Section 4.00 EQUIPMENTS Sheet 1 of 4

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

N° UND. EQUIPMENT MODEL HP HP KW-hr Size Unitary Cost Total Cost

Unit Total Total (U$$) (U$$)

MAIN PLANT

CRUSHING

1 1 Hopper * 1,325,998.39 1,325,998.39

2 1 Apron Feeder * C60 5 5 44.74 23,285.30 23,285.30

3 1 Jaw Crusher C100- Metso 150 150 1342.26 gape x long 407,169.67 407,169.67

4 1 Sec.Cone Crusher GP 300-Metso 350 350 3131.94 gape x long 483,123.99 483,123.99

5 1 Tert. Cone Crusher HP800-Metso 800 800 7158.72 gape x long 1,528,573.74 1,528,573.74

6 1 Primary Screens* 10 10 89.48 4 ft x 12 ft (1.2 x 3.8 m) 34,150.00 34,150.00

7 1 Secondary Screens* 5 5 44.74 4 ft x 14 ft (1.2 x 4.3 m) 36,500.00 36,500.00

8 1 Tertiary Screens* 15 15 134.23 6 ft x 20 ft (1.8 x 6.1m) 76,600.00 76,600.00

TOTAL 1 1310.00 11946.11 3,915,401.09

GRINDING

9 1 Fine Hopper * 1,325,998.39 1,325,998.39

10 1 Belt Feeder (216 - 432) stph 2.00 2.00 35.7936 36 in x 4 ft 6,308.97 6,308.97

11 1 Primary Ball Mill * 2000 2000 35793.6 14ftx18ft 3,438,835.85 3,438,835.85

12 1 Secondary Ball Mill * 3000 3000 53690.4 14ftx26ft 3,884,484.14 3,884,484.14

13 6 Hidrocyclone Cluster * Diameter:26 inch 53,599.45 321,596.69

TOTAL 2 5002.00 89519.79 8,977,224.05

COPPER ROUGHER - SCAVENGER FLOTATION

14 4 Conditioner Denver Conditioner 20 80 1431.74 16ftx16ft 52,455.28 209,821.13

15 12 Rougher Cell RCS 70-Metso 125 1500 26845.20H(240)xL(823)xW(192)xC(177) 249,067.51 2,988,810.11

16 10 Scavenger Cell RCS 70-Metso 125 1250 22371.00H(240)xL(823)xW(192)xC(177) 249,067.51 2,490,675.09

TOTAL 3 2830.00 50647.94 5,689,306.33

REGRINDING

17 1 Ball Mill Regrinding * 1750.00 1750.00 31319.40 12ftx22ft 2,808,188.31 2,808,188.31

18 4 Hydrocyclone Cluster * Diameter:10 inch 13,897.69 55,590.76

TOTAL 4 1750.00 31319.40 2,863,779.08

COPPER CLEANER FLOTATION STAGE

19 6 Cleaner I Cells RCS 20-Metso 50.00 300.00 5369.04H(181)xL(600)xW(145)xC(128) 115,990.54 695,943.25

20 4 Cleaner II Cells RCS 5-Metso 20.00 80.00 1431.74 H(119)xL(388)xW(88)xC(79) 66,538.48 266,153.93

21 1 Cleaner III Cells Column Cell-METSO 4.50 4.50 80.54 1.3x9.4 42,480.02 42,480.02

TOTAL 5 384.50 6881.32 1,004,577.20

THICKENING OF CONCENTRATES

22 1 Thickener Metso 2 2 35.7936 16 m x 3.6 m 50,000.00 50,000.00

23 1 Holding tank Conventional 1 1 17.8968 9mx9m 56,000.00 56,000.00

TOTAL 6 3 53.6904 106,000.00

CONCENTRATE FILTER

24 1 Filter VPA1030 100.577 100.577 1800.0064536 9100 mm x 2750 mm 70,000.00 70,000.00

TOTAL 7 100.577 1800.0064536 70,000.00

(*) InfoMine USA, there is not equipment brand

TOTAL MEAN PLANT 22,626,287.75

 CAPITAL COST
CAPEX
Section 4.00 EQUIPMENTS Sheet 2 of 4

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

REAGENTS PLANT

LIME PLANT

25 1 Mixing tank - - - - 3.05mx1.68 diameter 9,275.00 9,276.00

26 1 Hoist chain RYU-030A 6.7 6.7 5 13,900.00 13,900.00

28 0.54 0.4 0.00 0.00

29 1 bin feeder - - - - 150.00 151.00

30 1 mechanical stirrer - 2 2 1.492 1,560.00 1,561.00

31 1 vivbratory feeder 1 1 0.746 0.9mx1.5m 15,650.00 15,651.00

32 1 blade / knife - 28.00 29.00

TOTAL 1 10.236 7.638 40,568.00

XANTATHE PLANT

33 1 Preparation tank 2000 2000 35793.6 6,721.00 6,721.00

34 1 storage tank 3000 3000 53690.4 6,721.00 6,721.00

35 1 mechanical stirrer 1,560.00 1,560.00

TOTAL 2 15,002.00

AP 3501

36 1 dosing tank RCS 20-Metso 50 50 894.84 3,850.00 3,850.00

TOTAL 3 3,850.00

CMC PLANT
37 1 tanque agitador RCS 20-Metso 50 50 17,142.00 17,142.00

38 1 feeder RCS 20-Metso 50 50 1,500.00 1,500.00

39 1 agitador mecanico Denver Sub-A N°24 4.5 4.5 1,950.00 1,950.00

TOTAL 4 20,592.00

AF 238
40 1 dosing tank RCS 20-Metso 50 50 3,850.00 3,850.00

TOTAL 5 3,850.00

MIBC
41 1 dosing tank RCS 20-Metso 50 50 3,850.00 3,850.00

TOTAL 6 3,850.00

SODIUM SULPHITE

42 1 mixung tank RCS 20-Metso 50 50 12,900.00 12,900.00

43 1 Storage tank RCS 20-Metso 50 50 12,900.00 12,900.00

44 1 mechanical stirrer Denver Sub-A N°30 9.2 9.2 0.00 0.00

TOTAL 7 25,800.00

SODIUM SILICATE
45 0 no equipment RCS 20-Metso 50 0 0.00 0.00

TOTAL 8

TOTAL REAGENT PLANT 113,512.00

 CAPITAL COST
CAPEX
Section 4.00 EQUIPMENTS Sheet 3 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

CONTROL PLANT

GRINDING
46 1 Particly sampler PSI 300 1.61 1.61 28.78 2100 mm x 920 mm 500,000.00 500,000.00

47 1 Mass flow control Symens 0.50 0.50 8.95 1230 mm x 616 mm 24,000.00 24,000.00

48 1 Slurry sampler 1 Estándar 1.48 1.48 26.40 1000 mm x 500 mm 10,000.00 10,000.00

TOTAL 1 3.583 64.1242344 534,000.00

FLOTATION
49 1 Assays sampler Courier 5i 1.61 1.61 28.78 6000 mm x 6000 mm 500,000.00 500,000.00

50 1 Slurry sampler 2 Estándar 1.48 1.48 26.40 1000 mm x 500 mm 1,000.00 1,000.00

51 1 Slurry sampler 3 Estándar 1.48 1.48 26.40 1001 mm x 500 mm 1,000.00 1,000.00

TOTAL 2 4.558 81.5736144 502,000.00

DISTRIBUTION
52 1 Weighbridge SCS 0.134102 0.134102 2.3999966736 12 m x 3 m 5,500.00 5,500.00

53 1 Thinckener STT-6 4.02 4.02 71.945136 6mx3m 3,200.00 3,200.00

TOTAL 3 4.154102 74.3451326736 8,700.00

TOTAL CONTROL PLANT 3774.20649983 1,044,700.00

ENVIROMENTAL

RESIDUES HANDLING
54 1 Cone Thickener Metso - LTE/C 660-10 2.00 2.00 35.79 10mx15m 480,000.00 480,000.00

55 1 Sedimentation pond - - - - 37m^2 75,000.00 75,000.00

56 1 Mixers Aran - Flexiclean610L 17.40 17.40 311.40 - 150,000.00 150,000.00

TOTAL 1 19.40 347.20 705,000.00

BACKFILL PLANT

57 1 Passing Tank

58 1 Pump

59 1 Special Pump

59 1 Hydraulic BackFill

TOTAL 2 5,000,000.00

TOTAL ENVIROMENTAL 5,705,000.00

 CAPITAL COST
CAPEX
Section 4.00 EQUIPMENTS Sheet 4 of 3

Initial Review: H. Parra Date 9/17/2019 Rev.: C

Last Review: H.Parra Date 11/21/2019 Rev.: 0

DISALINATION PLANT

COLLECTION

60 1 Intake Tower PSI 300 - - 2100 mm x 920 mm

61 1 Sea Water Tank Symens - - 1230 mm x 616 mm

62 1 Tank Agitation

63 1 Clarifier
64 7 Rings Filter 9x3C-SFT 1.6 11.3 201.45 6000 mm x 6000 mm

65 4 Ultrafiltration SFX-2860-DOW 1.5 1.5 26.40 1000 mm x 500 mm

66 5 Cartridge Filter FLYGT 1.5 1.5 26.40 1001 mm x 500 mm

67 140 Racks(8 menbanas each) SW30XHR-440I 16 m x 3.6 m

68 8 Calcite Bed VPA1030 100.6 100.6 9100 mm x 2750 mm

TOTAL 8

TOTAL DISALINATION PLANT 2,000,000.00

SUB TOTAL 31,489,499.75

OTRHER EQUIPMENTS 10% 3,148,949.98

TOTAL 34,638,449.73

INSTALATION COST Total Cost

(U$$)

Mechanical assembly (30% Direct cost) 10,391,534.92

Platform and access (15% Direct cost) 5,195,767.46

Pipping (7% Direct cost) 2,424,691.48

Instrumentation (8% Direct cost) 2,771,075.98

Structural and concrete (20% Direct cost) 6,927,689.95

Electric (30% Direct cost) 10,391,534.92

Civil and earthmoving (20% Direct cost) 6,927,689.95

(2) Construction direct cost 45,029,984.65

(3) Total direct project costs 79,668,434.38

Overhead & profit (5% Total construction direct cost) 3,983,421.72

Administration, supervision and insurance (3% Total coonstruction direct cost) 2,390,053.03

(4) Total indirect project costs 6,373,474.75

(5) Total indirect costs Project ((3)+(4)) 86,041,909.13

EPCM (8% Total direct project cost) 6,883,352.73

Replacemnet (3% Total direct project cost ) 2,581,257.27

Transport (3% Total direct project cost) 2,581,257.27

Commissioning and startup (2%Total direct project cost) 1,720,838.18

(6)Total indirect project cost 13,766,705.46

(7)Contigency (20%((3)+(4)) 30,114,668.20

TOTAL CAPITAL COST $ 129,923,282.79

 ECONOMIC
ESTIMATE

AERIS MINING COMPANY

PROJECT DESIGN FOR ROSARIO MINERAL

PROCESSING PLANT

ECONOMIC ESTIMATE

PROJECT N° 20192ME525R

REVIEWE
REV. BY ISSUED FOR DATE CHK’D
D
E. Chavez/M.
A Gómez / A. H. Parra Internal Review 9/17/2019 ✓
Mejía
E. C. Sovero
Chavez/M.
B Gómez / A. H. Parra Internal Review 10/19/2019 ✓
Mejía C. Sovero
E. Chavez/M.
0 Gómez / A. H. Parra Internal Review 11/21/2019 ✓
Mejía C. Sovero
 ECONOMIC
ESTIMATE

I. VALUATION OF MINERAL

T/h %Wt Cu % CM (Ton/hr) Rec Cu

Concentrate 12.25 7.15% 25.06 3.07 91.91%
Tails 158.99 92.85% 0.17 0.27 8.09%
Feed 171.23 100.00% 1.95 3.34 100.00%

PUBLIC INTERNATIONAL 2019 6.04

UNITY KUSD/TM

SECCTION OF PAYMENT 96.5% / 1.1 DM

REFINING SPENDING 0.18
UNITY kUSD/ton
PAYABLE ASSAY 23.96

Punishment

% TOLERANCE USD per 0.1%

As 0.40% 0.30% 1.36
Sb 0.40% 0.30% 1.36

Concentrate value per ton

Cooper kUSD/ton
1.45

As kUSD/ton
0.00000136

Sb kUSD/ton
0.00000136

Maquila kUSD/ton
0.18

ANUALLY CONCENTRATE VALUE 126,081.399 kUSD

ANUALLY ORE VALUE 9,016.669 kUSD

kUSD/YEAR EQUIPMENT (*)

PLANT TOTAL (*) kUSD/YEAR
CAPEX 129,923.28 236,224.15 PLANT TOTAL
OPEX 11,608.39 14,233.22 34,638.45 12,300.00

(*) Mining and Infrestructure (*) Equipment without intalation cost

DISCCOUNT RATE 11%

 ECONOMIC
ESTIMATE

II. COPPER PRICE

HISTORICAL
+ 2014 2015 2016 2017 2018 +
Cu kUSD/Ton 7.42 5.87 4.33 5.50 6.46

PROJECTED
2019 2020 2021 2022 2023 2024 2025 2026
6.04 6.11 6.15 6.15 6.15 6.15 6.15 6.88

III. CASH FLOW

PROJECTED
2019 2020 2021 2022 2023 2024 2025 2026
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
INCOME
REVENUE 124,756.02 126,437.56 127,326.49 127,326.49 127,326.49 127,326.49 127,326.49 144,520.09
OPEX (14,233.22) (14,233.22) (14,233.22) (14,233.22) (14,233.22) (14,233.22) (14,233.22) (14,233.22)
OPERATING 110,522.80 112,204.34 113,093.27 113,093.27 113,093.27 113,093.27 113,093.27 130,286.87
CAPITAL COST ALLOWANCE (30,408.11) (30,408.11) (30,408.11) (30,408.11) (30,408.11) (30,408.11) (30,408.11) (30,408.11)
DEPRECIATION (9,387.69) (2,460.00) 0.00 0.00 0.00 0.00 0.00 0.00
TAXABLE REVENUE 70,727.00 79,336.22 82,685.15 82,685.15 82,685.15 82,685.15 82,685.15 99,878.76
TAXES AT 30% (21,218.10) (23,800.87) (24,805.55) (24,805.55) (24,805.55) (24,805.55) (24,805.55) (29,963.63)
PROFIT (243,264.92) 49,508.90 55,535.36 57,879.61 57,879.61 57,879.61 57,879.61 57,879.61 69,915.13
CAPEX (236,224.15)
WORKING COST (7,040.77)

NPV 50,369.35 kUSD

IRR 16%

PP 4 YEARS, 9 MONTHS AND 4 DAYS

IV. RECUPERACION ECONOMICA

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

NPV -S/. 243,265 S/. 42,552 S/. 41,025 S/. 36,749 S/. 31,585 S/. 27,147 S/. 23,333 S/. 20,054 S/. 20,820
Total -S/. 122,939

Year 0 Year 1 Year 2 Year 3

IRR S/. 49,509 S/. 47,732 S/. 42,757 S/. 36,749
Total S/. 176,746

PP 4.4889 anual
5.87 month
26 days
ECONOMIC
ESTIMATE
 COO

MILL SUPERINTENDENCE

MILL SUPERVISOR

DESALINATION PROCESS CHEMICAL LABORATORY

SUPERVISOR SUPERVISOR

3 TECHNICIAN 1 CHEMICAL
LABORATORY
TECHNICIAN
1 CRUSHING OPERATOR 2 OPERATOR
1 GRINDING OPERATOR
1 FLOTATION OPERATOR
1 FILTER OPERATOR
1 DISTRIBUTION
OPERATOR

CONTROL
 COO

SUPERINTENDECE OF
MAINTENANCE

EMICAL LABORATORY MECHANICAL MAINTENANCE ELECTRICAL MAINTENANCE

SUPERVISOR SUPERVISOR SUPERVISOR

1 CHEMICAL 1 TECHNICIAN 1 TECHNICIAN

LABORATORY
TECHNICIAN
1 OPERATOR 1 OPERATOR
ITEM SECTION
DIRECT COST
MAIN PLANT (1)
AUXILIARY PLANTS
SUB-TOTAL
13 LAND MANAGEMENT
14 INSTRUMENTATION AND CONTROLS
15 PIPING
16 ELECTRICAL INSTALLATIONS (PLACED)
17 CIVIL WORKS (INCLUDING SERVICES)
18 SERVICE FACILITIES (ASSEMBLED)
SUB-TOTAL DIRECT COST (USD)
INDIRECT COST
19 EPCM (2)
20 INDIRECT CONSTRUCTION COSTS (3)
21 FIRST FILL AND SPARE PARTS (4)
22 COMMISSIONING AND START-UP (5)
23 FREIGHT AND TRANSPORTATION (6)
SUB-TOTAL INDIRECT COST (USD)
TOTAL COST (DC+ IC)
CONTINGENCY
24 CONTINGENCY
SUB-TOTAL CONTINGENCY (USD)
TOTAL GENERAL
 % TOTAL (USD)

22,626,287.75
8,863,212.00
34,638,449.73
15% 5,195,767.46
8% 2,771,075.98
7% 2,424,691.48
30% 10,391,534.92
40% 13,855,379.89
30% 10,391,534.92
79,668,434.38

8.0% 6,883,352.73
8.0% 6,373,474.75
3.0% 2,581,257.27
2.0% 1,720,838.18
3.0% 2,581,257.27
20,140,180.21
99,808,614.59

35% 30,114,668.20
SD) 30,114,668.20
129,923,282.79