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COBRE DEL MAYO Investor Presentation October, 2014 (all amounts in USD unless otherwise noted) Strictly Confidential

2  

Disclaimer and Forward Looking Statements

COBRE DEL MAYO 2  

The information contained herein has been prepared to assist interested parties in making their own evaluation of the Piedras Verdes Project and does not purport to be all inclusive or to contain all of the information that a prospective purchaser may desire. Forward Looking Statements This Investor Presentation and other communication with investors include forward-looking statements. These forward- looking statements include, without limitation, statements regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we participate or are seeking to participate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some cases, forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should” or “will” or the negative of such terms or other comparable terminology.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution potential investors that forward-looking statements are not guarantees of future performance and are based on numerous assumptions and that our actual results of operations, financial condition and liquidity may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in the Offering Memorandum for the Cobre del Mayo Notes. In addition, even if our results of operations, financial condition and liquidity and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this Management Discussion and Analysis Report, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information or future events or developments.

•  risks related to our competitive position; •  risks related to our strategy and expectations about growth in demand for

copper and business operations, financial condition and results of operations;

•  risks related to the revocation, expropriation or termination of our mining concessions or our water concessions or of the agreements pursuant to which we explore or exploit mining concessions belonging to third parties;

•  the inability to be compensated fairly in the event of termination of our mining concessions or our water concessions;

•  the impact of fluctuations in the market price for copper; •  the impact of changes in the prices of raw materials, labor and our products; •  our relationship with unions and our ability to negotiate collective bargaining

agreements;

•  the availability of materials and equipment; •  our access to funding sources, and the cost of the funding; •  changes in regulatory, administrative or economic conditions affecting the

mining industry, including government interpretations and policies; •  the application and enforcement of environmental laws and regulations; •  risks related to Mexico’s social, political or economic environment; •  the impact of changes in the end uses of our products; •  fluctuations in the value of the U.S. dollar against the Mexican peso; •  risks associated with market demand for and liquidity of the notes; and •  changes in the taxation of our business.

3  

COBRE DEL MAYO

Index

I.  Company Overview

II.  Industry and Commodity Overview

III.  Operational Environment

IV.  Historical Financial Performance V.   Conclusion VI. Appendix

4

16

20

22

25

28

3  

I. Company Overview

5  

§  Cobre del Mayo is a Mexican mining company that operates the Piedras Verdes (“PV”) copper mine in the north-western state of Sonora, Mexico

§  PV is the third largest copper mine in Mexico, and it produces LME Grade A copper cathode

§  It began commercial production in 2006

§  Purchased by Invecture in mid 2009

§  During 2012 a flotation circuit owned by Kupari Metals with capacity of 5,500 tons per day (“tpd”) was built and in April 2013 copper concentrate production began

§  In October, 2014, CDM purchased 100% of the common stock of Kupari Holdings the holding company for Kupari Metals (“Kupari Acquisition”) owner of the flotation plant adjacent to Piedras Verdes

§  Current annual capacity of 34,500 t of cathode from SX-EW and 14,000 t of copper contained in concentrate

§  Mineral Reserves of 1.13 million tons of copper and 15+ year mine life

Cobre del Mayo Snapshot

COBRE DEL MAYO 5  

Piedras Verdes Advantaged Location and Access

Huatabampo

Chihuahua

Sinaloa

PiedrasVerdes Alamos

Navojoa

Sonora

CiudadObregon

Guaymas

BajaCalifornia

P

C

Deep Water Port

Commercial Airport

Railway

Rail Station

Major Highway

Private Airport

C

P

§  All infrastructure is in place

§  Easily accessible by air, road, rail and ports

§  Extremely competitive transportation costs for off-takers given PV’s location and nearby infrastructure

§  Power: Connected to CFE grid to the mine owned and maintained substation with continuous capacity of 25 MW; CDM is CFE’s single largest customer in the area

§  Water: CDM holds 7 titled water concessions for ~3.9 Mm³/yr while the requirement for the operation of the PV Mine is ~2.0 Mm³/yr

6  

Cobre del Mayo Highlights

COBRE DEL MAYO 6   10

Strong cash flow generation enables deleveraging in the short term

Reserve of 1.13 million tons of copper and 15+ year mine life supported by independent 43-101 released in October 2014

Cash cost and production enhancement program initiated 2Q14 with six low capex initiatives to be completed 1H15 Objective: LOM C1 cash cost of $1.65/lb

Low sustaining capex estimated at $14.2 million annually LOM

Located in low risk mining friendly jurisdiction; high quality infrastructure; excellent environmental safety, community relations, and labor record

'"

!! In 2009, changed from contract mining to owner operation and purchased the former contractor’s equipment fleet. In 1H14 acquired 6 CAT 789 trucks and a CAT 6050 hydraulic shovel

!! Purchased, re-engineered and installed a crushing, screening, conveying and stacking system

!! Diversification of processes:

—!Crush for Leach, Run of Mine (ROM) leach, and SX/EW produce copper cathode •! Installed capacity of 87 tpd, increasing to 97 tpd in 2H15, with additional cells expanding to 105 tpd

—!Flotation plant produces 37 tpd of copper contained in concentrate and will expand to approx. 45 tpd. •! Plant is operating at 6,000 tpd, and upgrades to process 8,200 tpd are planned for completion by 1H15 •! The Kupari Acquisition fully integrates the flotation and copper concentrate production into CDM

•! Simplifies and optimizes ore allocation among processes •! Facilitates process improvements that involve both heap leaching and flotation •! Diversifies operational risk across two processes and products

Key Initiatives Implemented Since Invecture Acquisition

COBRE DEL MAYO &"

13

Cathode and Cu Contained in Concentrate Monthly Production Evolution (t)

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COBRE DEL MAYO

Stable Low Risk Operations and Processes

!! $327.1 M in capex has been invested since 2009 with limited sustaining capex going forward, estimated at $14.2 M/yr LOM

!! Ore processing method is chosen according to grade, mineralization, and leaching and flotation characteristics to provide the best overall economics using: (i) ROM heap leach (ii) crushed ore heap leach (iii) ore for concentration

)" 16

! $327.1 M in capex has been invested since 2009 with limited sustaining capex going forward, estimated at $14.2 M/yr LOM

! Ore processing method is chosen according to grade, mineralization, and leaching and flotation characteristics to provide the best overall economics using: (i) ROM heap

)"

Piedras Verdes Project Today1

COBRE DEL MAYO ("

!! The PV Mine has been transformed into a high quality copper producing asset with strong operating metrics and competitive Cash Cost —!LTM 2Q14 sales totaled $288.9 million

•! Copper Cathode: •! Since January 2012, PV cathode production has averaged 83 tpd •! LTM 2Q14 cathode production of 28,834 t generating $207.2 million of sales

•! Copper Concentrate: •! Since April, 2013, copper contained in concentrate produced has averaged 37 tpd •! LTM 2Q14 copper contained in concentrate production of 12,955 t generating $81.7 million of sales

—!LTM 2Q14 EBITDA of 106.1 million —!Strong credit metrics1:

•! Leverage is 3.0x Gross Debt / LTM EBITDA (2Q14)

•! Capitalization is 60.4% Debt / Total Capitalization (2Q14) —!Strip Ratio has declined from 3.2x in FY 2012 to 2.2x during 2Q14

1.! Gives effect to the Kupari Acquisition that has been consummated 2.! Considering total debt of $320.6 M (weighted average interest rate of 10.35%) and $53.4M of Cash and Equivalents

Cathode & Concentrate Sales EBITDA and EBITDA Margin

$78.2 $197.7 $238.2 $225.2 $207.2

$62.4 $81.7

$3.28

$3.91 $3.57

$3.31 $3.22

$0.00

$1.00

$2.00

$3.00

$4.00

$0

$75

$150

$225

$300

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

$/lb

$M

Cathode Sales ($M) Sales of Conc. ($M) Cu Price ($/lb)

$26.0 $65.6 $105.7 $113.0 $106.1

33% 33%

44% 39%

37%

0%

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$75

$100

$125

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

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Consolidated EBITDA ($M) Consolidated EBITDA Margin (%)

!*"

COBRE DEL MAYO *+"

Competitive and Stable Cash Cost

C1 Cash Cost ($/lb)

2014 Estimated Global Copper C1 Cash Cost Curve

!! PV C1 cash costs are currently in the industry’s third quartile

Source: Wood Mackenzie

$3.63

$2.69 $2.08 $1.99 $2.08 $1.97 $2.03 $2.15 $1.99

$0.00

$1.00

$2.00

$3.00

$4.00

2010 2011 2012 2013 1Q'14 2Q'14 CDM Cash Cost Blended Cash Cost

Including By-Product Credits Quartiles

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<$1.82/lb

CDM 2Q’14 = $1.97

LOM Blended = $1.65

11  

Opportunity for Low Capex to Achieve Significant Cash Cost Reduction

COBRE DEL MAYO 11  

Crusher Fines Classification

(Cathode production increase)

•  Improved recovery from highly altered fines

•  Improved ROM recovery by eliminating fines

•  Increase Cu cathode production by between 5 - 7 tpd

4Q14 $2.5M / $6.0M

Intermediate Grade Ore Crushing

(Cathode production increase)

•  Finer crushing of intermediate grade ore and increased tonnage of crush to leach will increase Cu cathode production by 5 tpd by leaching more crushed ore with better kinetics

4Q14 $3.0M / $5.0M

Project Benefit Timing Capex / EBITDA per yr

•  Separates screened fines producing coarse leachable sands (2.5 ktpd) and high clay slimes (1.5ktpd) from approximately 4.0 ktpd of screened fines grading 0.40%Tcu. Cu recovery estimated at 80%.

•  Increase crushed ore production by 3- 4 ktpd and reduce p80 to 3/8 inch with estimated 8% recovery improvement

Description

4Q14 •  Increase concentrate Cu production by approx. 4 tpd

$4.0M / $4.5M

Flotation of Classifier Slimes

(Concentrate production increase)

•  Additional flotation cells will recover Cu from classifier slimes

•  A 75% recovery is expected on approx. 1.5 ktpd ore at 0.50% TCu

•  The minus 60 mesh slimes will produce 4 tpd of additional Cu in concentrate

•  This flotation concentrate will be upgraded in the existing cleaner circuit

§  Cu production and recovery improvement projects will reduce unit cost by increasing Cu production and lowering unit opex without major capex commitment

§  We expect cathode production to reach 100 tpd and copper in concentrate production to reach 40 tpd without a significant increase in mining rate. We believe it is reasonable to expect a reduction of C1 cash cost to $1.65/lb

12  

Opportunity for Low Capex to Achieve Significant Cash Cost Reduction (cont’d)

COBRE DEL MAYO 12  

Reduction of Waste Haul Distance

(Reduce Opex)

Project Benefit Timing Capex / EBITDA per yr

•  Decrease Opex of $3.4M/yr 4Q14 $2.0M / $3.4M

Description

•  Purchase of 400 Ha of adjacent land east of PV for additional waste dumps

Note: * The engineering, analysis and investment cases for each individual project reflect preliminary estimates which will vary when the respective projects are in stable operation ** Calculations were made considering a copper price of $3.20/lb

Heap Leaching Cleaner Tails

(Cathode production increase & acid production)

•  Increase Cu cathode production by 0.7 tpd ($1.0M/yr)

•  Additional sulphuric acid generation of 90 tpd ($4.0M/yr)

4Q14 $1.5M / $5.0M

•  Cu and pyrite in cleaner tails will be recovered from flotation plant and leached to recover residual Cu and generate acid.

Replace SXEW Lead Anodes with Titanium

Anodes (Increase nameplate

capacity & reduce opex)

•  Reduce unit electricity consumption by 12% ($0.9M/yr)

•  Elimination of the use of cobalt sulphate ($0.9M/yr)

•  Increase in effective nameplate capacity to 105 tpd

4Q14 to 2Q15

$3.0M / $1.8M

•  Replacement of lead anodes with titanium anodes reduces power consumption and increases EW capacity

13  

COBRE DEL MAYO

Updated 43 – 101 Reserve and Resource Report

13  

§  Updated 43-101 compliant Reserve Report released in August 2014 (published October 13, 2014)

§  Reserve of 1.13 million tons of copper with a life of mine of 15+

§  Gives effect to the Kupari Acquisition, incorporating heap leaching and flotation to process copper ore

§  Average production of ~47 kt/a (~103 Mlbs) of copper annually over a remaining 15+ year mine life.

§  Total production of ~790 kt (~1.7 Bn lbs) of copper over the current life of mine.

§  LOM cash costs are estimated at $1.65/lb copper (excluding royalties).

§  The project NPV (8%) is estimated at $1,196 M based on assumptions described therein.

18

Summary Mineral Reserves and Resources

Ore$(kt) Grade$(%) Total$Cu$(t)!!!Ore!to!ROM 211,817 0.18 388,261!!!Ore!to!Crushing 151,375 0.30 454,283!!!Ore!for!Concentrate 57,148 0.51 292,374Proven$&$Probable 420,340 0.27 1,134,918!!!Waste 548,998!!!Strip!Ratio 1.31x

Ore$(kt) Grade$(%) Total$Cu$(t)!!!!!!Measured 304,970 0.26 792,922!!!!!!Indicated! 210,060 0.25 525,150!!!Total!M+I 515,030 0.26 1,318,072!!!Inferred 52,690 0.24 126,456Total$Resource 567,720 0.25 1,444,528

Estimated$Reserves

Resources

14  

Relevant Agreements and Risk Management

COBRE DEL MAYO 14   16

Copper Cathode

§  Agreement for sale of 100% of PV cathode production to Trafigura expires Dec14. —  Cathode sold FOB at the mine and paid twice weekly against holding certificates

§  Agreement for sale of 100% of 2015 PV cathode production to two internationally renowned, reliable, credit-worthy commodity traders (50% of cathode production to each trader). Both agreements are valid  from  January  1,  2015  through  and  including  December  31,  2015.    

Mining Concessions

§  We have the exclusive right to explore and exploit 31 mining concessions with an initial term of 50 years which terminate between 2043 and 2062 —  26 mining concessions owned by PV —  5 mining concessions owned by Grupo Rexgo. The right to exploit these concessions

is governed by a contract subject to international arbitration

§  Royalties: Grupo Rexgo charges PV a 3% net sales royalty for the copper mined from their underground resource concessions (beneath PV owned land)

§  Land Ownership: PV owns all of the land at the mine in addition to a reserve for leach pad and waste dump expansion

Notes: 1. Minerales Frontera Cobre del Mayo SA de CV is a Restricted Company for purposes of the Cobre del Mayo Indenture according to the Supplemental Indenture dated February 6, 2014.

Cathode Hedging Arrangement

§  12 month forward sale agreement from July 2014 to June 2015 —  600 t per month @ a fixed price of $6,870/t (approx. $3.11/lb) —  Cash settlement, no margin

§  8 month forward sale agreement from August 2014 to March 2015 —  1,800 t per month @ a fixed price of $7,130/t (approx. $3.23/lb) —  Cash settlement, no margin

15  

Relevant Agreements and Risk Containment (cont’d)

COBRE DEL MAYO 15   16

Insurance Policy §  Insurance policy coverage for commercial loss/operational stoppage

—  Policy underwritten by Zurich and Royal & SunAlliance with general coverage of $306.6 for certain risks that are typical in the mining industry

Mining Tax

§  Mexican government implemented a special duty on mining concessions roughly equivalent to 7.5% of EBITDA starting January, 2014

§  As currently roughly 95% of CDM ore is derived from Grupo Rexgo mining concessions, tax is payable by the concession holder in respect to its EBITDA

Labor / Environmental

§  Safety, environmental compliance and labor relations are key areas of focus of PV

§  Since Invecture’s acquisition, Piedras Verdes has had a solid safety track record —  Lowest premium for “Riesgo de Trabajo” (worker risk) as classified by IMSS,

demonstrating the safety standards at CDM

§  Approx. 427 of our 1,040 employees (including Kupari) are represented by the Confederación de Trabajadores de Mexico (“CTM”) —  No work stoppages in the history of the Piedras Verdes Mine

§  Certified as a Socially Responsible company by the Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) and certified as a Clean Industry by the Mexican Federal Attorney for Environmental Protection (Procuraduría Federal de Protección al Ambiente), the enforcement arm of the Mexican environmental ministry

Copper Concentrate

§  PV sells copper concentrate to internationally recognized trading companies §  Current a contract with Louis Dreyfus for the delivery of 10 kt beginning on October 13th,

2014 until December 15th, 2014 §  Concentrate delivered FOB port of Guaymas (229 km from mine)

II. Industry and Commodity Overview

!'"

Copper Price Forecasts Over Time

COBRE DEL MAYO *&"

"! The market has consistently underestimated the copper price when forecasting long term prices

"! Actual copper prices have been much higher due to continuing shortfalls in supply. Delays in new projects, supply interruption and declining production from existing mines have been the main drivers

18

Copper Historical Price vs. Forecasts

Source: Broker Research 1. With the exception of 2014’s forecast which is as of 13 August 2014

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18  

Incentive Price Drives the Floor Value of Copper

COBRE DEL MAYO 18  

n  Investment in large projects is very capital intensive and in increasingly so as head grade declines n  The incentive price required to justify investments in the expansion of existing mines and the construction

of new ones is estimated at $3.50/lb ($7,716/t)

—  Incentive price considers required Cu price to achieve specified rate of return on expansion capex(1)

n  Although short term copper prices are unpredictable, we believe that long term prices must be driven by the increase over time of the incentive price (necessary to justify the investment in new production to maintain global output)

18

Incentive Prices for Major Projects

Source: Wood Mackenzie 1.  Analysis based on long term price required to give a 12.0% risk adjusted IRR on a pre-tax 100% equity basis.

c / l

b

Paid Metal (M lbs)

!)"

Cu Pricing Considerations

COBRE DEL MAYO *("

"! Copper has traded in the market at a premium to the 90th percentile of the C1 cash cost curve —! C1 cash cost as estimated by Wood Mackenzie

18

Source: Wood Mackenzie, LME 1. 90th percentile as estimated by Wood Mackenzie. LME prices for 2013 4Q. May, 2014.

C1 90th Percentile Costs vs. Cu Price1

$1.11 $1.62 $2.57 $2.55 $2.39 $2.65

$1.67

$3.42

$4.00

$3.61 $3.32

$3.18

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

2005 2010 2011 2012 2013 2Q14 LTM

$/lb

C1 Cash Cost 90th Percentile ($/lb) Average Cu Price ($/lb)

III. Operational Environment

#!"

Stable Operating Environment in Mexico1

COBRE DEL MAYO !*"

!! Mexico is an economic leader in Latin America and is the world’s 14th largest economy by GDP (2014E and 2015E real GDP growth of 2.4% and 3.5%, respectively) —! High degree of political stability —! OECD/WTO country and member of 12 free trade agreements, including NAFTA —! Mexican Peso has long history of one of the ten most traded global currencies

!! As a result of mining-supportive governmental policies, stability, OECD tax regime and abundance of resources, Mexico has attracted extensive investment from international mining companies —! Over 850 mining companies operate in Mexico; 287 of which have foreign investment, and currently operate

82 producing projects within Mexico —! ~40% of mine production and ~70% of investments in exploration are undertaken by foreign investors

!! Mexico is recognized as a mining friendly jurisdiction —! Largest producer of silver globally (18% of global production) —! 3rd largest producer of copper in Latin America

!! Sonora is among the most prolific mining areas and one of the safest states in Mexico

26

Total Mining Production in Mexico2

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2014 Copper Production in Mexico3

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Sources: 1 IMF, Brook Hunt, World Bank, U.S. Geological Survey 2 Secretariat of the Economy, 2012 3 National Institute of Statistics & Geography

IV. Historical Financial Performance

#$"

COBRE DEL MAYO

Summary Historical Financials

!#" 34

Total Sales and Realized Cu Price Cathode & Cu Contained in Concentrate Produced

Total Operating Costs1 C1 Cash Cost (incl. Cathode & Cu cont. in Conc.)

1. Operating cost exclude: Depreciation & amortization, change in Cu process inventory, ARO amortization, and royalties

$78.2 $197.7 $238.2 $225.2 $207.2

$62.4 $81.7

$3.28

$3.91 $3.57

$3.31 $3.22

$0.00

$1.00

$2.00

$3.00

$4.00

$0

$75

$150

$225

$300

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

$/lb

$M

Cathode Sales ($M) Sales of Conc. ($M) Cu Price ($/lb)

$67.5 $169.0 $163.7 $175.6 $183.7 $0

$50

$100

$150

$200

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

$M

29.8

62.6

84.1 84.5 79.0

29.8 35.5

0

20

40

60

80

100

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

tpd

Cathode Production (tpd) Concentrate Production (tpd)

$3.63 $2.69 $2.08 $2.00 $2.08

30

63

84 83 79

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10

20

30

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50

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$2.50

$3.00

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FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

tpd

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Blended C1 Cash Cost ($/lb) Cathode Production (tpd)

#+"

COBRE DEL MAYO

Summary Historical Financials (cont’d)

!," 35

Consolidated EBITDA and EBITDA Margin Capital Expenditures(1)

EBITDA less Capex

$75.2 $16.4 $31.6 $42.9 $48.3

$39.0 $14.4 $2.2

$0

$20

$40

$60

$80

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

$M

Cathode Capex ($M) Concentrate Capex ($M)

$26.0 $65.6 $105.7 $113.0 $106.1

33% 33%

44%

39% 37%

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30%

40%

50%

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$50

$75

$100

$125

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

%

$M

Consolidated EBITDA ($M) Consolidated EBITDA Margin (%)

-$49.2

$49.3 $35.1 $55.7 $55.6

-$80

-$40

$0

$40

$80

FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM

$M

V. Conclusion

26  

Conclusion

COBRE DEL MAYO 26   16

Source:  Bloomberg  1.  As  of  October  22,  2014    

§  Operating mine without new project development risk §  Favorable logistics and infrastructure

§  Good labour relations

§  Long life of mine of 15+ years

§  Implementing low capex program to achieve a significant reduction in C1 cash costs

§  Reasonable leverage, very strong credit metrics by comparison with other B/B3 rated companies

Comparable Issuers:

Hudbay HBMCN 9½ (1Oct20) B3/B 8.6%

Taseko Mines TKOCN 7¾ (15Apr19) B3/B 8.6%

Thompson Creek TCMCN 9¾ (1Dec17) B1/B 6.9%

Company Ticker Rating YTM1

Cobre del Mayo COBREM 10¾ (15Nov18) B3/B 10.3%

Thompson Creek TCMCN 7⅜ (1Jun18) Caa2/CCC- 9.1%

Thompson Creek TCMCN 12½ (1May19) Caa2/CCC- 9.9%

Attractive Yield/Risk Profile vs. Peers: COBREM bonds yield substantially wide of any reasonable comparable

27  

Conclusion

Low risk mining friendly jurisdiction;

high quality infrastructure;

premier track record COBRE DEL MAYO

15+ year mine life supported by

independent 43-101 completed in August 2014

Cash cost and production

enhancement program initiated

2Q’14

Low sustaining capex estimated at

$14.2 million annually LOM

COBRE DEL MAYO 27  

Very strong cash flow generation

enables deleveraging

46

http://www.cobredelmayo.com/

VI. Appendix

29  

Kupari Acquisition Summary

COBRE DEL MAYO 29   6

Two of our three shareholders (“Parent Companies”), Frontera Copper Corporation (“Frontera”) and Frontera Cobre del Mayo Mexico (“Frontera Mexico”), have acquired all of the common shares of Kupari Holdings, S.A. On October 3, 2014 they contributed them to Cobre del Mayo S.A. de C.V. (“Cobre del Mayo”) as fresh equity. Frontera and Frontera Mexico acquired these common shares for cash. Frontera and Frontera Mexico have also committed to acquire all of the preferred shares of Kupari Holdings subject to the prior approval of the Mexican Federal Economic Competition Commission (Comisión Federal de Competencia Económica or “COFECE”). Upon receipt of the COFECE Authorization, Frontera will (i) cause approximately $42.5 million of the preferred stock of Kupari Holdings to be conveyed in payment of debts of this same amount owed to Cobre del Mayo and (ii) pursuant to an agreement among the Parent Companies and Cobre del Mayo, the remaining preferred stock will be contributed as additional equity to Cobre del Mayo no later than February 1, 2016. The preferred shares convey the right to a nominal dividend, are perpetual and do not generally have the right to vote. Our third shareholder, Lawrie Associates LLP, has committed to subscribe for $15.5 million of additional equity of Cobre de Mayo by October 17, 2014. Through its wholly owned subsidiaries, Kupari Holdings owns and operates a flotation plant adjacent to the Piedras Verdes Mine that processes refractory and vein type copper ore that it purchases from Cobre del Mayo. As a consequence of these transactions, Cobre del Mayo will own and operate the floatation plant and will be able to directly process its copper ore both by leaching and by flotation.

$*"

Corporate Structure Chart

COBRE DEL MAYO #+" 8