FOR THE THREE MONTHS ENDED 31 MARCH 2020

Octavio Alvídrez, Chief Executive Officer, said:
“The well-being of our workforce and the communities in which we operate is our first priority and we will continue to do all we can to ensure their safety. I would like to thank everyone at Fresnillo for the calm way in which they have adapted to the new measures we have put in place to combat COVID-19 and their professional conduct during this difficult time. We continue to work with both the Federal and local authorities to agree on best practice protocols under which the mining industry can continue to operate. We will continue to keep full year production guidance under constant review.


“Operationally, quarterly silver production was in line with expectations, down slightly against the previous quarte mainly due to lower grades at San Julián DOB. Gold production was also in line with expectations, down against the previous quarter due to lower volumes of ore processed at Herradura. We expect production to be back-endweighted this year. Our development pipeline progressed as expected with good advances in the construction of Juanicipio and the new Pyrites Plant at Fresnillo.”


COVID-19 Situation Overview

The safety of our employees and the local communities in which we operate are the highest priority for Fresnillo. Since the beginning of COVID-19, we have closely monitored the spread of the outbreak and rapidly implemented a range of safety measures across our business, in accordance with the guidelines of the World Health Organization and local Mexican authorities. In conjunction with the Mexican Mining Chamber, other mining companies and union, Fresnillo has engaged in a series
of discussions with government officials at both the Federal and local level to seek ways in which the mining industry can maintain certain limited operations while prioritising the well-being of all workers and local communities. Those discussions are on-going.
In light of the evolving environment, Fresnillo will keep full year production guidance under constant review. Fresnillo is well funded with sufficient cash balance to withstand any temporary disruption.

TOTAL PRODUCTION

HIGHLIGHTS

Silver

• Quarterly silver production of 13.2 moz (including Silverstream), down 4.0% vs. 4Q19 driven by a lower ore grade
at San Julián Disseminated Ore Body (DOB) and a lower volume of ore processed at Saucito.
• Quarterly silver production (including Silverstream), flat (+0.7%) vs. 1Q19 due to a higher ore grade at San Julián
(DOB) and a higher volume of ore processed at Fresnillo, offset by the expected lower ore grade at Saucito.

Gold

• Quarterly gold production of 197.0 koz down 15.7% vs. 4Q19 as expected, due to a lower volume of ore processed
and an increase in stripping at Herradura, in accordance to the mine plan.
• Quarterly gold production decreased 6.7% vs. 1Q19 due to lower volumes of ore processed at both Herradura and Noche Buena, and to a lesser extent, lower ore grade at Herradura and at San Julián (veins).


By-Products

• Quarterly by-product lead and zinc production decreased 7.3% and 8.8% respectively vs. 4Q19 driven primarily by lower ore grades and recovery rates at both Fresnillo and San Julián (DOB), mitigated by higher ore grade and recovery rates at Saucito.
• Quarterly by-product lead production increased 14.7% vs. 1Q19 mainly due to higher ore grades at both Fresnillo
and Ciénega.
• Quarterly by-product zinc production increased 4.2% vs. 1Q19 due to higher ore grades at both Fresnillo and Ciénega, offset by a lower ore grade at San Julián (DOB).

Development Projects

Further progress was achieved at the construction of the Pyrites Plant (Phase II) and the optimisation of the beneficiation plan, both at Fresnillo. Additionally, the Juanicipio project advanced as expected during the quarter, with the first production stope to be fully prepared by the end of 3Q20.
2020 Outlook As stated above, given the evolving situation with regards COVID-19, Fresnillo continues to keep full year production guidance under constant review. The timeline for the commissioning of the development projects will also be monitored closely.

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