MUX 2019 Sustainability Report For Mexico

2019
Sustainability Report
The Value of Our People COMPAÑÍA MINERA PANGEA � 1

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We seek to create
shared value with
all stakeholders
in the long term
through our
sustainability
strategy.
2 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 1

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The Compañía
Minera Pangea
4 The Value of Our People 40 Employment 74
Team.
Index 5 Presentation
6 About this Report
42
43
Employees
Creating Local Employment
Special Report: Communication and
Development
7 A Message from Rob McEwen 44 Competitive Income 76 Communities
45 Effective Communication 78 Education and Skills
8 Message from Strategic Team 45 Equity and Equality Opportunities 80 Child Care
10 Adrián Blanco / General Manager 45 Zero Child Labor 82 Development Infrastructure
11 Santiago Grande / Operations Manager 84 Family and Community Well-being
12 Alejandro Morales / Controller 46 Training and Development 85 Respect for the Local Culture
13 Miguel Barahona / Project Fenix Manager 48 2019 Training Programs 86 Participation with Social Benefit Organizations
50 CONOCER 87 Donations
14 Company Profile 50 Performance Assessment 88 Environmental Culture
15 McEwen Mining 51 Education 91 Response to Chemical Emergencies
16 Rob McEwen, Chairman & Chief Owner 51 Psychosocial Risk Factors at Work (NOM-035). 91 Promotion of Community Sports
17 Operations
18 Compañía Minera Pangea 52 Health and Safety 92
Awards, Initiatives and Alliances
23 Our Values 54 Health and Safety Model
24 Corporate Governance 56 Health and Safety Communications 94 Socially Responsible Company
56 Health and Safety Compliance 95 United Nations Global Compact
26 Sustainability Business Model 57 Self-Management Program for Health and 95 Safe Company
Safety at Work 96 Clean Industry
28 Materiality Assessment 58 Prevention of Occupational Diseases 97 Women in Mining Mexico
59 Special Handling Products 98 Alliances
32 Business Ethics 60 Accidents and Incidents
33 Code of Business, Conduct and Ethics 102 GRI Index
34 Transparency 62 Environmental Impact 106 SDG Index
35 Ethics Line 64 Energy Consumption 109 Global Compact Index
36 Supply Chain Ethics 66 GHG Emissions 110 Limited Report Verification
37 Respect for Human Rights 67 Water 111 Warning Statement
69 Waste Management
38 Economic Impact 70 Biodiversity
39 Economic Value Generated and Distributed

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Asset Security,
always taking care
of the company’s
resources.
Presentation
The 2019 Sustainability Report contains the challenges that we
faced this year, the commitments that we fulfilled, and the achieve-
ments resulting from the work of those who are part of the Compa-
ny. Therefore, we recognize the value created by our shareholders,
employees, and suppliers to generate benefits for our communities,
protect our environment, and fulfill our responsibilities to the gov-
ernment.
This report, “The Value of Our People,” is a recognition to the in-
dividuals around us, their dedication, resilience, and the work of our
employees. Furthermore, we appreciate our suppliers’ commitment
for their support by continuining activities and the social license to
operate that our communities provide us.
In addition, in this 2019 report, we will share the social respon-
sibility and sustainability achievements, as well as our vision of the
future and our pride of all employees in Compañía Minera Pangea.
The Value of Our People

GRI 102-42

Scope of this Report
This report includes comments on our strategy, management, policies and relevant
information regarding the sustainability of our operations at the El Gallo Complex lo-
cated in El Magistral community, district of Mocorito in Sinaloa, Mexico, from January
1st to December 31st of 2019.
In order to convey transparency and to demonstrate our commitment to our
stakeholders, we created this document voluntarily, striving to provide an objective
analysis of our progress, challenges, and the results of our activities.
This report follows the guidelines and standards contained in:

We seek to create
• The Ten Principles of the UN Global Compact
• The 17 Sustainable Development Goals
shared value with
• Global Reporting Initiative Standards (GRI) Core Option all stakeholders
• Social Responsible Company Distinctive (ESR) by Mexican Center for Philantropy in the long term
(CEMEFI)
through our
sustainability
strategy.
ACKNOWLEDGEMENTS
We would like to acknowledge the work of the entire administrative and operation- We are proud of the performance of our Mexican operations. Through the dedicated
al team who has actively participated in preparing this document, from the initial
assessment of the material matters and throughout the compilation process. We
also acknowledge the strategic team’s contributions in the detailed review of the
Message from work and leadership of our team in Mexico, we achieved our production goals while
maintaining our ethical commitments and prioritizing the health and safety of our em-
ployees, as well as protecting the future of our business.
information presented in this report. Rob McEwen Through our sustainability strategy we seek to share value with all stakeholders
in the long term and to participate in the creation and implementation of economic,
VERIFICATION environmental and social solutions.
This report has been verified on a limited basis following the “International Standard Our actions have contributed to strengthening the region in which we operate by
of Insurance Commissions” (ISAE 3000) published by the International Audit and generating employment in surrounding communities, contracting numerous local ser-
Assurance Standards Council (IAASB). vice providers and fulfilling our obligations to the Mexican government.
An independent opinion has verified the key performance indicators in the 2019 As a result of our activities thousands of community members are benefiting from
Sustainability Report in compliance with the “Ethical Code of Accounting Profes- our construction of infrastructure and communication lines. In addition, we have in-
sionals.” Additionally, the report fulfills the international standards independently vested in education and promoting health and safety within these communities.
published by the International Ethics Standards Board for Accountants (IESBA). As a company, one of our passions is the search for new innovation and technol-
ogies for our projects -– One very good example is our Fenix Project where we have
All the monetary values are reported in United States dollars (USD), at the ex- proposed an innovative water-saving tailings disposal system that has been approved
change rate of 18.8727 pesos per US dollar. Published in “Diario Oficial de la Feder- by the government. This system could well serve as a new environmentally friendly
ación” December 31, 2019. model for dealing with mine tailings in the country.
This 2019 Sustainability Report describes our commitment to creating a positive
impact today and beyond the lifespan of the mine, reflecting our belief that we have
the opportunity to make a difference in all our endeavors
Rob McEwen
Chairman and Chief Owner.
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Message from
Our Strategic Team Our Strategic Team,
leading the operations at
GRI 102-14 GRI 102-18 GRI 102-23
Compañía Minera Pangea.

| Message from Strategic Team |
“
The most significant
challenges have been to
preserve human capital
Adrián Blanco because our people
are a key factor in our
General Manager
Company...
Dear Friends,
“
This 2019 Sustainability Report is entitled “The Value of Our People” due to the many suc-
cess stories we have had in our mining operations. We are deeply thankful for the talent and
dedication of our Mexico operating team, leadership at all levels in el Gallo, and support of Santiago Grande
our corporate team from Toronto. We live by our corporate Operations Manager
Every day we live by our corporate values. During 2019, we have achieved outstanding
goals in priority areas such as environmental protection, innovation, sustainability, as well as
values, in 2019 we
health and safety protocols. Once again, exceeding the annual production guidance. achieved outstanding We maintain a firm commitment to continue our activities at the highest standards of safety,
For several years, we have taken on the responsibility of generating our vision of sustain- goals in health and quality, environmental and corporate social responsibility. During the year 2019 we reached
able management in our company. We have participated in projects that seek the usage of our production goals and maintained profitable operations, based only on residual leaching;
clean energy and we have transitioned away from diesel generators. We have also stopped safety, environmental the commitment and cooperation of everyone on this outstanding teamwork has allowed
the extraction of water by using the benefit of rainwater in our process, and we have es- protection, innovation us to reach production goals.
tablished an agreement to bring cellular communication to our surrounding communities. We acknowledge our management team ‘s efforts in the operational area to over-
At Compañía Minera Pangea, we work together to promote gender equality, to stop and sustainability... come every obstacle and achieve every goal.
violence and to encourage a respectful treatment, relying on the employment of a higher The most significant challenges have been to preserve human capital while main-
proportion of women in comparison to the National Industry Recruitment average. In the taining profitability because our people are a key factor in our Company. Throughout
future, we hope that more successful women wish to become part of our Mexico team in 2019 Project Fenix has been advancing, and we are working to implement the best labor
Compañía Minera Pangea. practices from the outset of this project. In our operations, the priority is to continue
Thus, this report reaffirms our commitment to the United Nations Global Compact and searching for opportunities for the Company and for our employees’ development while
the Sustainable Development Goals. We embrace our responsibility to protect and pre- managing risk, low costs and high efficiency in our activities.
serve our planet through the transparency of actions at present and also in the future.
Therefore, I invite you to learn more about our Company, future projects, the great vision
that unites us and the value of our people to achieve this vision.
GRI 102-14 GRI 102-18 GRI 102-23 GRI 102-14 GRI 102-18 GRI 102-23

| Message from Strategic Team |
“
Our service providers proudly
recognize us as paying on time, in full,
within the limits of credit...
“
We want to be leaders
in environmental
preservation and
continue to promote
community relationships,
which is an essential
aspect of this project.
Alejandro Morales Miguel Barahona

Controller Project Fenix Manager
We know that 2019 was a year of remarkable challenges, and our main objective since its The fundamental goal of Project Fénix is to achieve continuity in operations. Each ounce
beginning was to seek the equitable distribution of our financial resources. Our service pro- produced during the residual leaching process impacts the profitability of our future Project
viders proudly recognize us as paying on time, in full, within the limits of credit. Fenix. Thus, we must optimize the use and management of existing resources during this
Our relationship with governmental authorities continues to generate trust in our Com- transformation process.
pany. In these recent years, we have not received audits, revisions or observations in rela- Our objective is to increase the mine’s lifespan by taking advantage of the existing infra-
tion to tax compliance and employer obligations. We have earned this trust from the au- structure while developing additional facilities, technologies, methods, designs and practic-
thorities because we confront each situation directly and transparently, giving certainty es, and by remaining competitive and productive at global level. We want to be leaders in
that we complied with our internal processes and ethics. environmental preservation and to implement alternative energy sources to improve profits
The coming years will be crucial for the Company, and we will have to confront compli- and project conditions. Moreover, we will continue to promote community relationships,
cated situations. With the enthusiasm and dedication of each of our employees, manage- which is an essential aspect of this project.
ment team and corporation, we will proceed forward to become the company of the region
with most employees and service providers for operations.

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Our main activities are

production from gold and
silver mines, together
with exploration and
development of gold, silver
and copper projects in the
American continents.
ORIGIN McEwen Mining Inc. is a registered com-

pany in the United States with its head-
quarters in Toronto, Canada.
GOAL Our goal is to create a strong and profitable

gold and silver producer focused in the
Americas.
STOCK McEwen Mining Inc. is listed on the New

MARKET York, and Toronto Stock Exchanges un-
der the symbol MUX.
S H A R E S O UTSTAND I NG
402,490,125*
The organization’s economic performance data is available in 2019
Financial Reports and filings attached to the investor relations sec-
tion at mcewenmining.com
Company Profile Sunrise at

Compañía Minera
Pangea.
* Shares outstanding refer to stock held by all its
shareholders, including investors or institutions who own
shares of the Company. Shares outstanding are presented
as of August 7, 2020.
GRI 102-3

4
| Company Profile |
McEwen Mining has a

presence in 4 countries
in the Americas with
Where do operations focused on
the production of gold
we operate? and silver and exploration
BLACK FOX
and development of
gold, silver and copper
projects.
countries
COMPLEX
Rob McEwen Gold
LEXAM Timmins,
Chairman & Chief Owner Rob and his wife, Gold Canada
Cheryl, have
Rob owns 21% of McEwen Mining, his cost base is US$ 165 million,
his salary is US$ 1/yr and he takes no bonus or options. donated in excess Nevada,
Mr. Rob McEwen is currently Chairman and Chief Owner of of US$ 60 million United
McEwen Mining Inc. which has four producing mines, located in
Nevada, Ontario, Mexico and Argentina, and also owns a very to encourage States of
large underdeveloped copper deposit in Argentina. excellence and GOLD BAR America
Rob and his wife, Cheryl, have donated in excess of US$ 60
million to encourage excellence and innovation in healthcare and
innovation in Gold
education. Their donations have led to the establishment of the healthcare and
McEwen Stem Cell Institute at Toronto General Hospital, McEw- education. EL GALLO
en School of Architecture at Laurentian University, the Rob and Gold Sinaloa,
Cheryl McEwen Graduate Study & Research Building at Schulich
School of Business (York University) and the McEwen Leadership
PROJECT FENIX Mexico
Gold and Silver
Program at St. Andrew’s College.
Rob is a passionate innovator, marketer and an avid recreation-
al competitor. He is also a member of the Dean’s Advisory Board,
Schulich School of Business; X Prize Foundation: Vision Circle and
Board of Trustees; Global Advisory Counsel; ISSCR (International
Society of Stem Cell Research); CEO (Chief Executive Organiza-
tion) and WPO (World Presidents’ Organization).
Rob was awarded the Order of Canada in 2007 and the Queen San Juan,
Elizabeth’s Diamond Jubilee Award in 2013. He holds an Honorary LOS AZULES Argentina
Doctor of Laws and an MBA from York University and a BA from Copper
the University of Western Ontario. Also, he received the 2001 PDAC
Developer of the Year Award, was named Canada’s Most Innovative
CEO in 2006 by Canadian Business Magazine and was inducted
into The Canadian Mining Hall of Fame in 2017.
Santa Cruz,
SAN JOSE Argentina
Silver and Gold
Note: Minera Santa Cruz is a Joint Venture between

Hochschild Mining (51%) and McEwen Mining (49%).
“Central” Pit

| Company Profile |
Panoramic view of
Leaching Pads
48 km
Northeast Guamúchil
1,700 km2
of mining concessions
Sinaloa
Compañía Minera
El Gallo
Pangea S.A. de C.V. is a Complex
subsidiary of McEwen
The El Gallo Complex is located in the Sierra Madre Occi-
Mining that operates in dental, just 48 kilometers northeast of Guamúchil in the El
Mexico. Magistral community of Mexico’s Sinaloa state, and has an
area of over 1,700 square kilometers of mining concessions.
It is incorporated as a Public Limited McEwen Mining purchased El Gallo in 2007, initiating a
Company, with Variable Capital accord- significant exploration investment, which was followed by the
ing to Mexican laws. Its administrative discovery of silver and gold deposits in 2009. The complex
offices are located in Guamúchil, Sinaloa. has gold, silver and copper deposits within a 15 km (9 miles)
Compañía Minera Pangea contains radius, including El Gallo Silver, Palmarito and El Magistral.
the El Gallo Complex that includes El The El Gallo Gold mine achieved the first gold pour in
Gallo Gold mining operation, Project September 2012 and began commercial production in Jan-
Fenix, and several other mining deposits uary 2013. It operated as an open pit with crushing and heap
in the exploration stage. leach processing at a capacity of 4,500 tonnes of ore per day.
DAI LY CRUSH I NG
CAPACI T Y
4,500
tons
GRI 102-1 GRI 102-2 GRI 102-5
GRI 102-7 GRI 304-1

| Company Profile |
In 2019 the
processing plant
underwent
expansions
2019 Production
that improved From its beginnings in 2012 until 2017, the El Gallo mine
efficiency and operated as an open pit with crushing and heap leach
processing. It produced 240,000 gold and 125,000 sil-
enabled faster ver ounces, or 281,000 ounces of gold equivalent.
gold recovery. During the second quarter of 2018, mining and
crushing activities ceased with onsite operations con-
tinuing through residual heap leaching. El Gallo pro-
duced 39,000 ounces of gold and 9,000 ounces of sil-
ver from mining and residual heap leaching in 2018.
In 2019 the process plant underwent expansions that
improved efficiency and enabled faster gold recovery. El
Gallo’s 2019 residual heap leaching exceeded expecta-
tions by reaching 16,233 ounces of gold and 8,398 silver, a
We stored rainwater
total of 16,333 equivalent gold ounces. Residual leaching
at Samaniego pit.
costs in 2019 were US$ 11.6 million, or US$ 688 per gold
16,233
equivalent ounce sold, which is 9% less than the previous
year’s all-in sustaining costs.
During 2020 El Gallo will continue to produce gold
Project Fenix
+10
through residual leaching while environmental resto-
ounces of gold ration activities are in process. Project Fenix represents Project Fenix represents the prospective future for the El Gallo
Complex. A 2018 Preliminary Economic Assessment (PEA) evalu-
the prospective future ates the extension of production from the complex.
for the El Gallo Complex. In 2019 we continued to advance the development of the Fenix year life
A 2018 Preliminary Project, revising the mineral processing, mine sequencing, material
RESIDUAL transportation and tailings storage options. We also continued to
LEACHING COSTS Economic Assessment update cost models and additional metallurgical test work. We are
(PEA) evaluates the refining the current plans with a feasibility study, which we expect
9%
to be completed and published in 2020.
extension of production
8,398 from the complex.
Project Fenix involves a two-phase development process. The
process plant would use conventional and proven mineral process-
ounces of silver ing and precious metals recovery technologies. Tailings produced
during the operation would be stored in a mined-out open pit at the
El Gallo Gold Mine. The deposition would include a delivery system
designed to maximize tailings consolidation and water recovery.
The project envisions constructing a mill at the existing mine site
that will initially reprocess the current heap leach material, and fur-
ther transition to processing ore from different gold and silver de-
9% less than posits. We expect an average annual production of 47,000 equiv-

alent ounces of gold: a low-initial capital cost and a 10-year life of
2018 mine extension.
16,333
equivalent gold ounces
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| Company Profile |
Our business is guided

by our business
values, which are
the foundation of our
ethical, responsible and
committed conduct
towards society.
Our Values
MISSION
To be a company acting in safety and VALUES
respect for our stakeholders through
continuous improvement, and by Safety: We are committed to build a safe environment
developing mining projects with re- by reducing risks to a minimum through preventive ac-
sponsibility and sustainability. tions within our operations.
VISION Ethics: We act honestly, reliably, and transparently as

To be a profitable gold and silver individuals and with our stakeholders.
company with an ethical contribution
to the economic and social develop- Environment: We manage production processes
ment in our area of operation. with a sustainable vision that respects the environment.
Respectful Treatment: We create a harmoni-

ous work environment where people feel motivated, en-
gaged, and committed.
Social Responsibility: We foster initiatives

meant to create a positive impact on our employees and
community.
Innovation: We value innovation in our daily pro-

Engineer Nayeli cesses and activities.
Beltrán, laboratory area
and ICP Operator.
GRI 102-16

| Company Profile |
Corporate
Our strategic team is committed to achieving the company’s goals
related to ethical behavior, health and safety management, environ-
mental performance, regulation compliance, risk, and opportunities.
Governance We maintain an ethical, fair, and transparent framework in consid-
eration of our stakeholders.
We know the challenges that we have overcome this year, and
we value the experience of our strategic team in the development Santiago Grande Fonseca,
of plans, the creation of policies and the regular assessment of
indicators that have guided the entire company. Operations Manager
Santiago understands all the operations of the mine. He is re-
sponsible for compliance with all applicable regulations, adequate
operational guidelines that improve performance and increase
profitability without compromising the health and safety of our em-
ployees, and the protection of the environment. His years of expe-
rience in operations are fundamental to our projects.
Alejandro Morales Mora,

Controller
Alejandro has more than 15 years of experience in financial resource
management and audit practice. His skills include the development
of budgets, the management of suppliers and the application of
regulations under the strictest accounting standards. His financial,
accounting, and tax knowledge optimize the company’s resources.
He is currently a member of the Mexican Institute of Public Accoun-
tants, the Financial Reporting Standards Commission and the Audit
and Witnessing Commission of the College of Public Accountants
of Culiacan.
Adrián Blanco Sáenz,

General Manager Miguel Barahona Gutiérrez,
Adrián Blanco Sáenz has a wide international experience in various Project Fenix Manager
industrial sectors, holding executive positions in Mexico, the United Miguel has more than 30 years experience in the mining industry;
States, Peru and Argentina. At Compañía Minera Pangea he has developing projects and managing production and processing in
been responsible for leading a successful business transformation underground and open-pit mines. His expertise will allow the op-
towards operational discipline, best business practices and finan- timal development of Project Fenix from exploration to production
cial profitability. He promotes the highest standards of industrial through business development, feasibility study, mine plan and pro-
safety, as well as innovation and competitiveness. Additionally, he duction schedule. He has focused on the use and management of
is responsible for defining the growth strategies to expand McEwen each of the resources necessary for the success of Project Fenix.
Mining’s presence in Mexico.
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| Sección |
Panoramic view
from the El Magistral
community.
Our business strategy is based in consideration of our employees’

work and our daily commitment to our core values. Furthermore, we
consider every aspect of exploration and mining operations from
short-term, mid-term and long-term perspectives, identifying the
risks we face and the opportunities to solve them.
Sustainability is at the center of our business strategy. Our man-
agement model includes policies and procedures, such as training,
health and safety, respect for human rights and social responsibility.
Through this vision, we recognize the importance of our efforts in
influencing social, economic and environmental issues.
Our sustainable Quality of life of our employees, TRAINING AND

PROFESSIONAL DEVELOPMENT
approach incorporates
the most relevant HEALTH AND SAFETY
matters:
Engagement with THE COMMUNITIES
Preservation of energy, water and

ENVIRONMENTAL RESTORATION
Our collaborators’ work has individual and team objectives, based on

a business perspective and, at the same time, on human values. By
connecting our strategic business plan with our vision of sustainabil-
ity, we can measure our performance. We are monitoring the neces-
sary metrics to fulfill the company’s objectives and to achieve con-
stant improvement.
From our initial report, we have included in our sustainability strat-
egy the 17 Sustainable Development Goals from the United Nations,
addressing the global challenges that we face and that we can collec-
tively solve. Moreover, we made a public commitment to incorporate
the most important social responsibility and sustainability initiatives by
supporting the United Nations Global Compact, the Social Responsi-
ble Company model from the Mexican Center for Philanthropy (CEME-
FI), and reporting under Global Reporting Initiative Standards.
We extend formal recognition of the fact that our business activity,
investment, and productivity directly affect the society, economy, and
environment. We acknowledge our obligation to minimize negative im-
pacts and the privilege to contribute to positive impact and shared value.
Sustainability
Business Model GRI 102-11

| Sección |
Armando Contreras,
Exploration Geologist in
Technical Services and
Geology.
The reporting model from the Global Reporting Initiative (GRI) helps companies identify an
organization’s most relevant matters within an economic, social and environmental frame-
work that influence decisions regarding sustainability and its relationship with stakeholders.
In January 2019, we completed the first materiality assessment within a broader
sustainability context that contains the GRI standards and allows us to identify the
most material matters.
ECONOMIC IMPACT: economic performance, anti-

As a result
corruption, legal compliance, business ethics.
of this analysis, we
identified the ENVIRONMENTAL IMPACT: Effluent and residuals, dispos-
following topics as al of residuals, environmental preservation, water usage,
most important: energy and biodiversity.
SOCIAL IMPACT: employer-employee relationships, em-

ployment, formation and teaching, and human rights.
Materiality Assessment
D EC E M BE R 2018 / JA NUA RY-2019
4 Economic
Ethics
Impacts
Legal Compliance
3 Human Rights Environmental Compliance
Energy Water and Effluents
Labor/Management Relations Training and education
I NF LU E N C E
2
GRI 102-11 PM-1 PM-2 ODS-3 ODS-5 ODS-7 ODS-8 ODS-12

0 1 2 3 4
Materiality Assessment
I M PAC T
GRI 102-15 GRI 102-21 GRI 102-31 GRI 102-33 GRI 102-34 GRI 102-40 GRI 102-42 GRI 102-43 GRI 102-44 GRI 102-46 GRI 102-47 GRI 103-1
GRI 103-2 GRI 103-3

| Materiality Assessment |
Sample Preparation
in Technical Services
and Geology
In this 2019 Sustainability Report, we have included additional
topics from the United Nations Global Compact and we intend to
present and fulfill our 2020 Communication on Progress. Thus, we
integrated elements that allow us to measure our contribution to
the Sustainable Development Goals.
This 2019 Sustainability Report also includes information based
on the management model from the Mexican Center of Philanthro-
py (CEMEFI) that focuses on four fields (Business Ethics, Quali-
ty of Life in the Company, Environmental Preservation, and
Community Relationships) and respond to the Socially Respon-
sible Company standards
Through this 2019 Sustainability Report of Compañía Minera
Pangea, we communicate:
• Messages from the Strategic Team.

• Company Profile.
• Business Ethics.
• Economic Impacts.
• Employment.
• Training and Development.
• Health and Safety.
• Environmental Impacts.
• Social Impact.
• Awards, Initiatives and Alliances.
In this evaluation of our operations’ material matters, we decid-

ed to take a gradual approach. We first consider local employees
throughout the various levels of the organization, since they are our
leading source of information, and secondly our strategic team. We
believe this analysis provides essential information in understanding
relevant topics and indicates our commitment to extend our scope
throughout our value chain. As we broaden our vision, we will improve
our sustainability performance.
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| Sección |
Finance team in
administrative offices.
Code of Business,
Conduct and Ethics
We believe that we are responsible for acting in an honest, fair,
respectful and exemplary manner. The Code of Business, Conduct
and Ethics requires the highest behavioral standards for all those
who are a part of McEwen Mining, and we consider it to be the
backbone of our compliance system.
McEwen Mining’s Code of Business, Conduct and Ethics was
approved and signed on January 7th, 2011 and is applicable with
all subsidiaries, including Minera Pangea in Mexico. Its policies
and procedures demand proper behavior and condemn miscon-
duct. Moreover, it offers strategies to avoid misbehaviors and
transgressions.
This Code is available for all employees and stakeholders, and
it forms an essential part of commercial agreements, government
operations and supplier contracts. It holds everyone with whom
we do business to a high ethical standard. Moreover, we shared
our values, criteria and culture with our stakeholders to guarantee
compliance, transparency and accountability.
The Code of Business Conduct and Ethics is publicly available
through our Corporate Guidance web page, https://www.mce-
wenmining.com/investor-relations/corporate-governance/.
Business Ethics
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| Ethics |
Oralia Veliz and

Lucía Rivera at
Guamuchil Office.
Transparency Ethics Line

The Ethics Line is an essential part of our Ethics and Corporate Com-
We recognize the importance of transparency in our industry, pliance Program. This line serves as a method to report unethical and
as we face ethical and commercial risks. Therefore, we have illegal conduct, and it provides the necessary tools for the company to
taken measures against corruption, to maintain our sustainable solve issues internally.
approach, reputation and protection of our stakeholders, under- The Ethics Line is entirely anonymous and confidential, providing
standing that negative consequences could affect our position a reliable method for employees, contractors and suppliers to inform
and the company’s performance irreversibly. any misconduct without fear of reprisal.
We comply with every law in the locations where we operate, The Code of Business Conduct and Ethics states that any miscon-
including all anti-corruption initiatives. Our Code of Business, Con- duct, violation, or controversial ethical behavior must be communi-
duct and Ethics is explicit about this: we do not accept any gift, tip cated immediately via phone at Ethics Line 001-800-840-7907 or
Alejandro Morales,
or bribery, moreover, we do not provide any asset of value, either Controller and
via the web page mcewenmining.ethicspoint.com.
direct or indirect, to political parties or any government official. Gerardo Inzunza, In 2019, we received no reports or complaints at Ethics Point,
Payable Accounts. which is monitored directly from the corporate office of McEwen
Mining, in compliance with the United States’ SOX law requirements.
Preventive
As part of our recruitment process, all employees and suppliers are Due to our strict enforcement of the Code
informed about the Code of Business, Conduct and Ethics and the of Business, Conduct and Ethics in 2019, we
International Commercial and Anti-Corruption Policies. received no observations, fine or sanction re-
garding our operations according to the For-
According to the United eign Investment Law or all applicable rules.
Nations Global Compact, Evaluative Our fight against corruption is included in our
All of our employees must participate in performance evaluations United Nations Global Compact Communi-
all of our operations abide regarding their level of knowledge of the Code of Business, Con- cation on Progress Report.
by the highest standards duct and Ethics, and the International Commercial and Anti-Cor-
ruption Policies.
of transparency and anti- E TH I CS LI NE
corruption. Punitive
Compliance with the Code of Business, Conduct and Ethics is an
001-800-840-7907
employment requirement. Failure to comply with the Code may re-
sult in the conclusion of the working relationship. Failure to comply
with the International Commercial and Anti-Corruption Policies may
result in the termination of contracts with employees, agents, man-
agers, consultants and other business partners.
GRI 102-29 GRI 102-29

| Ethics |
Supply
Chain Ethics
We consider contractors and suppliers to
be strategic partners in our operations; we
act ethically and expect the same behav-
ior from them. We believe reciprocal trust
creates long-lasting business partnerships.
Our suppliers are a fundamental part of
our value chain through the materials, equip-
ment and services they provide.
Ensuring our partners’ •

WE HIRE our suppliers with transparent policies ac- Oscar Moreno,
cording to our business’s goals. Purchasing and
sustainability is vital Warehouse
to achieving our • WE PREFER to work with local suppliers who meet our
company’s goals: quality, competition and experience standards.
• WE PROTECT the information that we receive from

our suppliers and contractors.
• WE FAVOR institutions that have received distinctions

Respect for
and awards in social responsibility and sustainability.
Industrial
and Electrical
Human Rights
Maintenance We share the principles established in the United Nations Glob-
Workshop Team. al Compact. Consequently, we demand that our collaborators
All supplier relationships must comply with the Code of Business, respect human rights in the company. Our policies are explicit:
Conduct and Ethics and the Commercial Policies and Acquisition we do not tolerate any situation related to corruption practices,
Procedures, so that no action related to fraud, bribery or corrup- extortion, discrimination, forced work, child labor or any violation
tion can be tolerated. We also require that our suppliers be re- against human rights.
spectful towards human and labor rights and towards preserving
the environment.
GRI 102-29

| Sección |
Sample Foundry in
Laboratory Area.
One of the most critical components of sustainability is economic development. Profit-

ability and fiscal compliance guarantee the continuity of our company to maintain our 111
We ensure direct employees, to support over 30 communities around us, to invest in infrastructure projects
and to generate indirect benefits for our suppliers and contractors.
economic benefits to We provide direct economic benefits to the communities in which we operate. Even
the communities in though we reduced our operations, we continued investing in these regions to provide ben-
which we operate. efits. Every year, we distribute part of our budget to support social development, health,
education, and environmental initiatives, which we are addressing later in the Community
Engagement chapter. To date, we still have not measured the indirect benefits of these
investments.
We are an important source of employment in the region, either directly or indirectly;
we hire as many local suppliers and contractors as possible, and we pay them punctually.
We assess the legal compliance of our suppliers and contractors on an annual basis.
If an inconsistency appears, we record the deviation based on our procedures, and we
evaluate it again during the next quarter. Failure to achieve compliance may result in the
termination of the commercial agreement.
To ensure our business’s sustainability, we are stricter each year in all fiscal and account-
ing matters. Our operations are tax-deductible, which allows us to recover the value-added
taxes paid to our suppliers.
We believe that transparency in our financial operations is critical to business expan-
sion, furthermore now that we are in the development phase of the new Fenix Project. Our
auditors at Ernst & Young (EY) assess the financial results of the operation according to
the regulations and the requirement of McEwen Mining Inc. In 2019 we obtained only minor
observations as a result of the internal control audit, which we resolved successfully.
Economic We report the financial results of our operations based

on the GRI Standards.
Value We consider the economic value generated as the
difference between income and operational cost, sal-
Generated and aries, employee benefits, supplier payments, govern-

ment payments and community investment.
Distributed
GENERATED ECONOMIC VALUE
US$ 22,964,009.31.
DISTRIBUTED ECONOMIC VALUE
US$ 18,586,377.00.
RETAINED ECONOMIC VALUE
US$ 4,377,632.31.
Economic Impact NOTE: This information does not include depreciation and amortization.
GRI 102-15 GRI 102-29 GRI 201-1 * Reported in US dollars, at the exchange rate of 18.8727 pesos per US dollar.
Published in “Diario Oficial de la Federación” December 31, 2019

| Sección |
Cristina Beltrán and
Antemio López at
ADR Plant.
We are proud of our collaborators, and we are confident in their tal-

ent, skills and daily commitment. We share the vision of the Sustain-
able Development Goals, supporting decent work and economic
growth, and the commitment to create employment opportunities
that provide benefits exceeding legal requirements.
We are confident that generating employment will create long
term opportunities so that our employees, our value chain and our
communities can have access to better opportunities and a pros-
perous life beyond the mine’s closing.
After we concluded the ore extraction and grinding process at
El Gallo Gold in 2018, we reduced the number of employees and
contractors. Downsizing is always our last option to maintain oper-
ations, but under these circumstances we encourage individuals to
voluntarily resign in order to pursue their best interest.
Employment
GRI 102-15 GRI 103-2

| Employment |
42
Creating Local
Contractors
Employment
Employees 153 All open positions are posted internally and regionally first. We only
recruit people outside the company if candidates with proper train- Employees by state
Employees ing are not available. Our policies and procedures give hiring prefer-
At the end of 2019, we had 111 direct ence to locals when searching for talent. For example, we recruit all
91 Sinaloa
employees and 42 contractors as part unskilled or temporary labor locally. 82% of our employees in 2019 7 Sonora
of our operation. During this period, we are from Sinaloa, compared to 79% at the end of 2018. 1 Guanajuato
reduced our direct workforce by 19%,
since at the end of 2018 we had 135 em- 1 Zacatecas
ployees. This decrease in personnel oc- 1 Nuevo León
curred due to the scheduled closing of
origin 1 Baja California Sur
mining activities at El Gallo.
111
All of our employees are working un-
der a full-time contract. PANGEA 82% 1
1
Jalisco
Chihuahua
During the year, we had two voluntary Sinaloa
attritions whose positions were filled: a 2 CDMX
turnover rate of 1.8%. 1 Estado de México
102 9 3 Coahuila
1 Aguascalientes
Men Women
AVERAGE
AGE
18-30 16 3
40
years age
31-40 39 2
Employees from
41-50 28 3
Sinaloa State by
AGE RANGE 51-60 16 0 municipality
18 a 70 61-70 3 1
years
Los Mochis 3 4 Sinaloa De Leyva

46% Guasave 1
34 Salvador Alvarado
We highlight the positive relationship we
Angostura 1
created with the Union thanks to the ben-
efits and working conditions that we offer
NON UNIONIZED 41% 5% 45 Mocorito
2 Culiacán
51% 3%
to its members. 60 of our 111 employees
are unionized; they represent 54% of our UNIONIZED
We recruit all unskilled or
91
staff and are in constant communication
temporary labor locally.
54%
with their representatives.
EMPLOYEES
FROM SINALOA Mazatlán 1
GRI 102-41 GRI 401-1 GRI 407-1

GRI 102-8

| Employment |
MI NI MU M WAGE AT
CO MPA ÑÍ A MI NER A PA N GE A NOTIPANGEA
Año 2019 Boletín mensual MAYO 2019
Competitive Income $ 253.44 Effective

mxn
Communication
146%
above
JUNTOS POR LA EDUCACIÓN
Como empresa socialmente responsable, en Compañía Minera Pangea estamos com-

prometidos con el desarrollo de nuestras comunidades y el apoyo a la niñez.
Gracias al apoyo de Compromiso en Tácticas de Seguridad Privada SA de CV

(COTASEPRISA) quien donó 200 mochilas para los niños de las comunidades cercanas a
We inform our employees regularly. In fact, we have downward hierarchical level commu-
nication tools, including informative publications and e-mails, through which we inform
employees about the current situation of the mine. As a result, these communication tech-
nuestras operaciones de la mina El Gallo Gold; en coordinación con CMP se pudo realizar
minimum wage
un evento para las familias, los maestros y los niños que habitan cerca de nuestra mina.
niques have reduced the effects of staff reduction.

El evento se llevó a cabo el pasado 8 de mayo en las instalaciones de nuestra mina El
Gallo Gold, donde más de 200 personas de las comunidades de Bacamopa, Las Tahonas,
Lo de Gabriel, El Manchón, El Tule, El Potrero de las Perdices y El Magistral pudieron disfrutar
MI NI MUM
de una plática de “Educación en Valores”, comida y recibieron una mochila para los
alumnos que cursan el nivel de primaria.
G ENER A L WAGE Con las estas acciones contribuimos con los Objetivos de Desarrollo de Desarrollo Soste-
nible con la adopción de medidas para poner fin a la pobreza, proteger el planeta y ga-
rantizar que todas las personas gocen de paz y prosperidad; específicamente, en esta
ocasión, con el Objetivo 4: Garantizar una educación inclusiva, equitativa y de calidad y
$ 102.68
promover oportunidades de aprendizaje durante toda la vida para todos.
La educación es la base para mejorar nuestra vida y ser parte del desarrollo sostenible.
Además de mejorar la calidad de vida de las personas, el acceso a la educación inclusiva
mxn
y equitativa puede ayudar abastecer a la población local con las herramientas necesa-
rias para desarrollar soluciones innovadoras a los problemas más grandes del mundo.
Agradecemos el esfuerzo de COTASEPRISA por la donación de estas mochilas para

nuestras comunidades y a nuestros compañeros de Compañía Minera Pangea que hicie-
ron posible el éxito de este evento. Sabemos que uniendo esfuerzos podemos realizar
grandes cambios en nuestra empresa, nuestras familias, comunidades y la sociedad en
donde vivimos.
Equity and Equality

* Valid until 31/12/2019 Opportunities
Human Resources
and Information We based recruitment, promotion and income policies on candi-
Technologies. dates’ knowledge, skills and achievements. We believe all people
should have the same privileges and obligations regardless of race,
ethnic, cultural or national origin, gender (or gender identity), social
The average income of We believe in training our people for long-term development; thus, we must compensate condition, belief, religion, political conviction, marital, family or pa-
our employees appropriately. Therefore, we exceed the benefits established in the “Ley rental status.
our employees was 6.9
Federal del Trabajo” (Federal Labor Law). 8% of our collaborators are women, comparable to the indus-
times above the current Each year, we examine our collaborator’s salaries considering internal and external fac- try average, although we maintain our commitment to promot-
General Minimum Wage. tors. We based this evaluation on industry comparison studies, which allows us to know and ing diversity and inclusion in our business. Additionally, in cases
understand salary rates, benefits and other forms of compensation, so that we can offer sala- where men and women have the same responsibilities, they re- Patricio Camacho,
ries above average. In 2019 the compensation ratio between management and operating em- ceive equal salaries. Yessica Angulo and Edna
ployees was 7.47, and the average income of our employees was 6.9 times above the current Covarrubias. Supply Chain.
General Minimum Wage. Our commitment is to generate income for families. The minimum
wage in our company exceeds the official wage published in “El Diario Oficial de la Federación”
(Federation Official Gazette) by 146% in 2019.
The region where we are located is predominantly agricultural, with income levels lower
than those of the mining industry. However, the level of income we offer is found in the average
salary of the mining industry in Mexico.
Zero Child Labor
100%
The compensation plan we offer to our employees integrates their salary and benefits
above legal requirements. We grant additional benefits at all levels of the company by sup-
porting our employees’ education through discounts on tuition at “Instituto Tecnológico y de 100% of our employees are adults. We acknowledge child labor as a violation of fundamen-
Estudios Superiores de Monterrey”, “Tec Milenio” University and the “Instituto de Capacitación tal human rights because it deprives children of school attendance and limits their physical
para el Trabajo de Sinaloa” (ICATSIN). Moreover, we provide access to private health services of our employees and mental development.
at a reduced cost, including lab work, optical and dental services. are adults Our hiring and recruitment policies comply with the United Nations Global Compact
We know that welcoming a baby into the world generates considerable expenses. Therefore, principles and the “Ley Federal del Trabajo” (Federal Labor Law), article 343/C, fraction IX.
we provide financial assistance to the mother or father employee in the form of a US$ 317.96 bo- Therefore, we forbid the hiring of minors under 18 years of age at any of our operations.
nus per birth. National health services fully cover all hospital expenses associated with the birth of
the baby. In 2019, 4 men utilized the leave of absence benefit and supported their families during
their child’s birth. 100 % of them returned to their positions at the end of their permit.
GRI 102-38 GRI 202-1 GRI 401-3 GRI 402-2 GRI 403-6 GRI 404-2 GRI 405-2 GRI 202-1 GRI 402-1 GRI 405-2 GRI 408-1

| Sección |
Pledge from
CONOCER certified
employees.
Training creates value for the company and all participating col-
laborators. Training is important as a strategy to attract and retain
the best employees, as well as to strengthen their skills for future
development.
Since the reduction of activities in 2018, we have implemented
a new training strategy through which we can assess the risks as-
sociated with the closing of the mine. The training and certification
model was transformed to promote our employees’ performance as
professionals, technicians and as human beings.
Training opportunities include technical skills according to po-
sitions and knowledge transference, enhancements beyond em-
ployee responsibilities and safety compliance according to official
Mexican norms. These courses are taught by certified personnel
contracted internally or externally.
As part of executive development, we also have a leadership
training program partnering with the “Instituto Tecnológico y de Es-
tudios Superiores de Monterrey” and with the Management Skills
Workshop from “Ibero Coaching”..
Training and Development

GRI 103-2 GRI 404-2

| Training and Development |
2019 Training
Programs
By the end of 2019, our team had complet-
ed 5,618 hours of training, which represents
a 67% decrease in time per employee com-
pared to 2018. The reason is mainly due to
a decrease in time of language lessons and
personal development, yet this new strate-
gy increased specialized skills by more than
30% and industrial safety by 14%.
Our training strategy focuses on improv-
ing the sustainability of business practices.
Moreover, we have increased training hours
in Corporate Social Responsibility, including
training in ecoefficiency completed by our
Training is an
management team. essential component
in the development
of each of our
employees. GRI 102-27 GRI 403-5 GRI 404-1
WOMEN‘S
MEN’S TRAINING TOTAL
MEN WOMEN TRAINING
HOURS HOURS
HOURS
Environmental 38 38 1 1 39
Safety and Industrial

111 2,577 9 562 3,139
Hygiene
Specialized Training 57 885 8 152 1,037
Administrative
48 166 50 130 296
Training
Vicente López,
Personal Safety 9 56 56 Perkin Elmer
Operator
Social Responsibility 51 159 4 8 167
Personal Growth
Languages
7
5
20
540 3 324
20
864 +30% +14%

Total 326 4,441 75 1,177 5,618 Specialized Industrial Safety
Training Training
Every year we have increased the training program through specific workshops and certifications
coordinated by the Industrial Safety area. Also, in the year of 2019 we provided 2,547 additional hours
of training. For more details, please see the section dedicated to this topic.

| Training and Development |
Technical Services
and Geology.
CONOCER
In 2019, we received the accreditation as Competency Certification and Evaluation En-
tity from CONOCER (National Council for the Standardization and Certification of Labor
Competencies). As a result, we are able to assess and certify our employees’ technical
Guillermo Corona,
Training Coordinator
Education EDUCATION LEVELS
Illiterate
EMPLOYEES
2
receiving his
skills based on the competency standards registered in the National Registry of Compe- Certificate. We have provided a basic educational program and ensured its- Elementary School 14
tence Standards. continuation. We are happy to report that in 2019, 9 of our em-
Since we adopted the CONOCER model, we can emphasize that 19 of our employees ployees have completed their elementary school education. We Middle School 20
have achieved certifications in technical skills, personal growth, communication skills, and acknowledge that there is still work to be done, as 33% of our High School 19
industrial maintenance, with 50% of participants having received two or more certifications. employees have not completed their middle school education.
College 56
Total 111
In 2019 we received
the accreditation
Performance
as Competency Assessment NOM/035.
Certification and
Psychosocial Risk Factors at Work
FECHA DE ENTRADA ▶ La norma no cuenta con instrumentos para
EN VIGOR identificar o evaluar enfermedades mentales, lo
Annually, employees and immediate supervisors work together to

cual está fuera de su alcance.
Evaluation Entity
La NOM-035-STPS-2018, entra en vigor en dos
etapas: ▶ Las disposiciones de la norma aplican de acuer-
do con la cantidad de trabajadores que laboran en
1ª.
cada centro de trabajo.
fulfill the Performance and Competencies Assessment, in which we

La política; las medidas de prevención;
la identificación de los trabajadores
expuestos a acontecimeintos traumá-
ticos severos, y la difusión de la
from CONOCER
información, entrarán en vigor este
año, el 23 de octubre de 2019.
assess their accomplishments along with their skills improvements. In 2019 we began implementing the Official Standard 35 (NOM- 2ª.
La identificación y análisis de los facto-
res de riesgo psicosocial; la evaluación
del entorno organizacional; las medi-
Our objective is to align the Company’s goals to the areas of each 035): Psychosocial Risk Factors in the Workplace. We completed
das y acciones de control; la práctica de
exámenes médicos; y los registros
entrarán en vigor el 23 de octubre de
2020.
NOM-035-STPS-2018
of our collaborators. the 1st stage by surveying 100% of our employees according to the ASPECTOS IMPORTANTES
▶ La norma considera la evaluación de las condi-
ciones en la que se desarrollan las actividades
FACTORES DE RIESGO
PSICOSOCIAL EN EL
We periodically establish performance indicators structured to Federal Work Department’s standards. We also used this opportu- TRABAJO
(ambiente y condiciones de la organización), en
ningún caso se evalúa el estrés en el trabajador
o su perfil psicológico.
MAYORES INFORMES
▶ No existe la obligación de ningún tipo de Identificación, análisis
detect training and development needs. Moreover, we recognize nity to assess the work environment. certificación.
▶ Las unidades de verificación no son obligato-

rias, son una opción potestativa que tiene el
y prevención
collaborators that exceed their daily work expectations. In 2019 all The results revealed low-risk levels for our employees. Due to
patrón.
▶ La STPS no valida, certifica, aprueba o autoriza

a ningún consultor para la aplicación de la Dirección General
NOM-035-STPS-2018. En este sentido, no existe
de Previsión Social
of our collaborators participated in the performance assessment. these results, we will be able to provide more benefits and create
obligación para la participación o contratación
de consultores, asesores o gestores, es deciión Félix Cuevas 301, Col del Valle Centro, 03200
del patrón. Se recomienda que el centro de trabajo Alcaldía Benito Juárez, Ciudad de México
realice las actividades con personal propio, capaci- Piso 6 y 8
tado, ya que éste conoce las condiciones existen-
new training projects in 2020. tes del centro de trabajo.
▶ Los centros de trabajo de hasta quince trabaja-

dores están exentos de aplicar las evaluaciones.
Correo electrónico: dgsst@stps.gob.mx
Tel. 2000 5100 ext.63427
GRI 203-2 GRI 404-2 GRI 404-3

| Sección |
The Community
Relations and Social
Responsibility
Team fosters health
initiatives.
We strengthened our
safety performance,
identifying 400
possible unsafe
conditions.
Health is currently one of the main concerns around the world.

The World Health Organization and the International Labor Or-
ganization have established global guiding principles to protect
workers in all fields.
Mining is an essential activity in the industry; particularly be-
cause it requires the most supervision. Professional hazards, health
risks that may result in respiratory and cardiovascular diseases, and
exposure to dangerous substances require constant observation, in
order to protect everyone working on mining sites.
Governments, institutions and associations have established
strict norms and regulations for the adoption of best practices in
health and safety, which appear in the Mexican Official Norms, the
Occupational Safety and Health Administration (OSHA) standards
and local regulations.
A central element of our daily operations is guaranteeing safe
conditions for all our employees. We recognize the risks that any
safety incident could represent and the possible long-term conse-
quences for employees, their families, and their communities. We
are also aware of the associated costs in terms of productivity loss,
injuries, and fees. Therefore, we have formulated and implemented
a strategy for Health and Safety that focuses on prevention.
During 2019 we have strengthened our safety performance. In
fact, the safety conditions analysis, according to the Bird Pyramid,
allowed us to identify 400 possibly unsafe conditions. Moreover,
we conducted this evaluation to anticipate risk situations that may
arise not only in our facilities, but in the industry at large.
GRI 102-15 GRI 102-21 GRI 103-2 GRI 403-1 GRI 403-7
Health and Safety

| Health and Safety |
Personal Protective Equipment
Health and Safety Model In addition to our strict protection measures, we acquired new per-
sonal protection equipment that exceeds OSHA’s standards. We im-
proved existing facemasks to protect collaborators from vapors and
made their use mandatory in our facilities. The active carbon filter car-
tridge CC/ABEK2 counteracts the fumes produced during different
processes. We have also incorporated chemical products detectors
that comply with European regulations, which detect different gas
categories and concentration levels:
TR A INING FOR SAFE T Y TOOLS CO R R EC T I V E • A / Gases from organic compounds with boiling point > 65 °C.
PR EVENT IO N AC T I O N S • B / Inorganic gases such as chlorine, hydrogen sulfide and
hydrocyanic acid.
• E / Sulfur dioxide and hydrochloric acid.
• K / Ammonia and compounds derived from organic ammonia..
1. Training for Prevention

We foster a culture We foster a culture of prevention in terms of health and safety. Our goal is in particular to
of prevention in eliminate any unsafe action or condition in the work environment. We believe training is the Industrial Safety Training 3. Corrective Actions
first measure to keep every employee and contractor safe in our facilities. The introductory (Hours by topic) We evaluate every incident and review all conditions that could
terms of health and courses of our training sessions include safety policies, protocols and procedures. represent any hazard to our employees, even those beyond the
TRAINING HOURS
safety. Starting in 2018, we begin each day with a 5-minute conversation with our employees mine’s daily activities, including incidents of commuting, inherent to
and contractors to increase awareness of the possible hazardous situations in our daily Mexican Official Norms 331 public health and local diseases. This allows us to implement pre-
activities and how they may affect our team; 91% of employees participate in these con- ventive measures and corrective actions that to improve our safety
Safety Stop 54
versations every day. performance by revising or creating new procedures and specific
By the end of 2019, each of our employees received 22 hours of training in industrial Occupational Safety and Health 1,207 skill training while purchasing or updating protection equipment to
safety: a total of 2,547 training hours. prevent future incidents.
First Aids 440 We also evaluate our contractors, by reviewing their safe work
Safety Drills 104 policies and permits and by demanding compliance with all health
and safety requirements. They must follow the same standards as
Industrial Safety Training 2019 (By Participant) Total 2,136 our collaborators.
PARTICIPANT DURATION PARTICIPANTS HOURS
Visitor 30 min 69 35
Contractor 4 hours 182 728

2. Health and Safety Tools
New employee 8 hours 9 72 We provide our employees with tools to prevent any incidents, safe-
Reinduction 8 hours 116 928 guarding the safety of all the visitors and employees in our facilities
by providing equipment and conducting regular preventive lab tests.
5-minute conversation 5 min 9,407 784 Due to high risk areas identified, we provided personal protective
Total 9,783 2,547
equipment, devices and signaling to minimize any possibility of inci-
dents, following OSHA’s (Occupational Safety and Health Adminis-
tration), which is among the strictest international regulations.
The topics on industrial safety training included updated protocols on occupational safety,
routine training on health and safety and on first aids, and certifications in compliance with-
in the Mexican Official Norms.
Starting in 2019, we incorporated the STOP security tool into the study and laboratory tests
GRI 404-1 GRI 404-2 GRI 404-3 monitoring processes. The STOP system acknowledges the importance of leadership as part
GRI 403-1 GRI 403-5 GRI 403-7 of the safety program for all collaborators. GRI 403-1 GRI 403-5 GRI 403-7

Health and
Safety Com-
munications
Beyond our facilities and daily work, the
health of our collaborators is fundamentally
important. We have integrated messages
in our internal communications to prevent
diseases related to the region’s temporary
and associated risks.
We periodically give out manuals that
address immediate risks or we mitigate
recent incidents. For instance, in the year
2019 we published three informative bro-
chures: Defensive Driving Outside the Mine,
A Christmas without Incidents and Winter
Season Health Care.
We added the United Nations com-
memorative dates and recommendations
contained in the Sustainable Development
Miguel Caro
and Juan Carlos
Self-Management Program for
Goals, aligning ourselves with global health
initiatives.
Hernández.
First Aid Training Health and Safety at Work
Safety and
Beyond our facilities and

Health and Safety Industrial
Hygiene Team.
We voluntarily participate in the “Self-Management Program for Health and Safety at the
Workplace” promoted by the Secretariat of Labor and Social Welfare, based on the Article
130 of the Federal Regulation on Safety, Hygiene and the Work Environment and by Mexican
daily work, the health Compliance Official Norm NOM-030-STPS-2006.
This program contains occupational standards on safety and health to protect our em-
of our collaborators We abide by the health and safety Mexican laws ac- ployees by adopting guidelines to:
is fundamentally cording to current legislation:
• Mexican Official Norm NOM-019-STPS-2011: • CONTINUOUSLY improve safety prevention standards.
important. Regarding the constitution, integration, orga-
nization and function of the safety and hygiene •
PROMOTE compliance with self-evaluation outlines.
commissions in the workplace to prevent, over-
see and investigate accidents and occupational
• STRENGTHEN the prevention of accidents and occupational diseases.
diseases.
• Mexican Official Norm NOM-019-STPS-2011: Re-
garding underground and open-pit mines occu- •
REDUCE accidents and illnesses related to production activities.
pational health and safety conditions.
•
REINFORCE the promotion of the “Self-Management Program of Health
and Safety.”
GRI 103-2 GRI 403-1 GRI 403-4 GRI 403-7

GRI 403-1 GRI 403-7 GRI 404-2

Prevention of Occupa-
tional Diseases
We continue carrying out laboratory tests, in order to prevent occu-
pational diseases and improve the efficiency of every project. The
standards that we adopted exceed those established in the NOM-
030-STPS-2012 and OSHA.
We implemented new prevention strategies, such as through
measuring concentrations of mercury-lead in blood. The NOM
standards require annual testing, but our internal practices state
that once the ten micrograms per deciliter limit have been detected
(a third less than NOM standards), testing must be done quarterly.
Due to residual leaching activities continuing throughout 2019,
we resumed spirometry and audiometry studies.
Jose Marino Camacho,

Nucleus Transfer.
Technical Services and
Geology.
Laboratory Tests for Employees PRODUCT AMOUNT USED UNIT
LAB TEST FREQUENCY EMPLOYEES TESTS 1 Acetylene 463.50 Kg
Stress and X-rays Annual 39 exposed 39 Special Handling 2 Hydrochloric acid 9 Kg
Products
Mercury and lead testing Biannual 33 exposed 66 3 Nitric acid 168,307 L
Blood pressure and glucose Biannual 132 exposed 264 4 Sulfuric acid 2 Kg
Audiometry Annual 39 exposed 39

We are concerned about the safety of our employees. Therefore, we 5 Sodium Cyanide 1,760,746 Kg
understand the risks associated with exposure to hazardous sub-
Spirometry Annual 39 exposed 39 stances in their daily activities, including handling diesel, chemicals 6 Diesel 987,120 Kg
used in leaching processes and in the lab. We are ensuring that our 7 Liquefied petroleum gas 357,398.3 Kg
Lead in Blood Biannual 33 exposed 66
employees are certified and in strict compliance with the official
Total 513 norm regarding safety and hygiene in the workplace for the han- 9 Sodium sulfide 106,200 Kg
dling, transportation and storage of hazardous chemical substances 10 Calcium oxide 667,000 Kg
(NOM-005-STPS-1998).
11 Ammonium nitrate 328,810 Kg

Accidents ACCIDENTS AT COMPAÑÍA MINERA PANGEA

(EMPLOYEES AND CONTRACTORS INCLUDED)
and Incidents 2017 2018 2019

The safety of our collaborators, con-
tractors and visitors is of priority.
12 2 1 Jesús López y
Alain Díaz. Heavy
Training, prevention, and provision of and Light Equipment
Maintenance.
personal protection equipment have
become part of our culture of preven-
tion and safety.
For the last three years, we have Accidents at Compañía Minera Pangea Incidents Outside the Facilities
worked to improve our safety perfor- We registered 32 contingencies between
mance, and our employees have re- DATE TYPE OF INJURY accidents and incidents. According to es- DATE TYPE OF CONTINGENCY
sponded to these efforts. In 2019, we 12/07/2019 Dehydration tablished procedures, each one was ana-
completed 362 days without disabling lyzed by the Health and Safety Committee, 02/20/2019 Community motorcycle collision against the rear of a utility vehicle
accidents (including collaborators and who performed a root cause assessment 03/13/2019 Worker sprained ankle on the way to his car
contractors) or 500,000 person-hours. Incidents at Facilities and evaluated the risks, implementing cor-
rective and informative actions that may 05/16/2019 Community truck collision against utility vehicle
DATE TYPE OF CONTINGENCY prevent future recurrences.
06/13/2019 Community member took down a drone
We are convinced that we must con-
01/30/2019 Ingot mold fell into slag cone
tinue working to improve the prevention of 06/22/2019 Diesel subtraction from well water extraction pump
DAYS WITHOUT
ACCIDENTS 01/30/2019 CPU short circuit in site incidents. Consequently, we report for the
07/05/2019 Utility vehicle collision at the office parking lot
IN 2019 first time incidents outside our facilities,
02/13/2019 Utility vehicle 686 collision at the parking lot (mirror damaged)
362 04/29/2019 Utility vehicle collision against the outer fence

including commuting to the worksites and
third-party incidents.
07/08/2019
08/16/2019
Worker’s motorcycle collision against community vehicle
Community vehicle collision against utility vehicle

EQUIVALENT TO
07/02/2019 Motor grader collision against tree branch (windshield damage)
500,000 08/23/2019 Utility vehicle impacted with an animal on the road
Person-hours. 07/07/2019 Excavator damaged SFCI signal cable

09/23/2019 A person fell ground level distance at Community project opening event
08/02/2019 Telehandler damaged Cyanide storage door’s lower rail
11/11/2019 Cattle hit worker riding motorcycle
08/03/2019 Utility vehicle collision between units 688 and 689 (parked)
11/12/2019 Worker sprained ankle before getting on transport vehicle outside the mine
08/14/2019 Back window damaged by equipment not properly secured
12/21/2019 Tire damaged on the way back from running a paperwork errand in a different city
08/30/2019 A worker fell when sitting on the perimeter chain
09/09/2019 Utility vehicle collision against trailer at the patio 37 area

Contractors’ Incidents
09/11/2019 Cyanide solutions spill on a drilling staff member while running tests
09/27/2019 Welder fell with the safety harness on, into cyanide solution container DATE TYPE OF CONTINGENCY
10/20/2019 Utility vehicle collision against the perimeter fence 02/31/2019 A person fell from a scaffold in the absence of ADR plant personnel
11/25/2019 Solution spill on a worker at the filter press area 08/14/2019 Back window damaged by imporperly secured equipment
12/02/2019 Slag spill on worker retrieving sample from furnace

* Accidents: Consequence of the physical
conditions of the environment.
Incidents: Consequence of human
action or omission. GRI 403-1 GRI 403-2 GRI 403-7 GRI 403-9 GRI 403-1 GRI 403-2 GRI 403-3 GRI 403-4 GRI 403-7 GRI 403-9

| Sección |
Hernán Beltrán,
Jorge López and Noé
Chávez, Ecology and
Environment.
Mining activities have environmental consequences: they alter the

land, consume natural resources, emit dust, and deposit an assort-
ment of hazardous residue. We are responsible for mitigating our
environmental impacts. Decisions made regarding environmental
matters have a direct influence on the future sustainability frame-
work of the business.
Our environmental approach is fundamental to our sustainabil-
ity strategy. Our commitment continues beyond complying with
applicable laws and regulations. We establish stricter standards
by incorporating the ten principles of the Global Compact and the
Sustainable Development Goals into our business practices.
We want to minimize possible environmental damage; therefore,
our environmental management procedure is to take a precaution-
ary approach. We monitor our performance through environmental
controls, and we are prepared for any potential emergency caused
by an environmental incident.
We have established controls to protect the environment and
maintain sustainable mining. We continuously monitor energy co
sumption, responsible water usage, proper handling of chemical
residuals, and the correct disposal of end residuals.
We fulfill current environmental authorizations and licenses. Our
prevention measures have been verified and approved by the Sec-
retariat of Environment and Natural Resources (SEMARNAT); they
include the mitigation and compensation of the potential environ-
mental footprint, oriented towards the correct impact management
for soil, air, water, flora, and fauna. In 2019 we received no obser-
vation, fine or sanction related to our environmental performance.
Environmental Impact GRI 102-29 GRI 103-2 GRI 307-1

| Environmental Impact |
TOTAL ENERGY CONSUMPTION IN

COMPAÑÍA MINERA PANGEA
9,551,760
x 106 Jules
Energy Consumption
TYPE AMOUNT UNIT
Gasoline 91,147 L
Industrial
and Electrical Diesel 784,125 L
Maintenance Team
Natural gas 357,398 L
Energy Electricity Generated 1,522,684.80 KW/H
Electricity Acquired from CFE 584,219 KW/H

Due to the mining industry’s intensive energy needs, the management of energy consump-
tion has become even more relevant. The environmental standards and global trends in Solar 1,112 KW/H
energy have focused on efficiency, emission reduction alternatives, environmental impact
assessment and cost reduction as part of a sustainability strategy.
While it’s true that diesel generators have met our energy needs, the reduction in the Energy Intensity
extraction and crushing activities has also allowed us to reduce the consumption of fossil In conjunction with our total energy consumption, energy intensity allows
fuels. It has allowed us to explore more cost-efficient alternatives with fewer legal restric- us to analyze our energy efficiency. Energy intensity ratios define energy
tions and better environmental performance. consumption within the context of an organization-specific metrics.
We completed the connectivity process and began using electricity from Federal Elec- For 2019 we established that our current denominator consid-
tricity Commission (CFE) at the end of 2019. Although we have internal electricity meters, ers energy consumed among the ounces produced. It is imperative
CFE meters help us gather data to compare consumption efficiency and cost in times of to clarify that our operation is in a residual leaching phase, with no
high and low demand, providing a more precise performance measure. extraction or crushing activities. Therefore, the metrics comparison
We are continuing to evaluate projects that would allow to make our energy consump- During 2019 we replaced Energy Consumption may vary.
tion more efficient. In 2019, we completed the energy supply assessment for Project Fenix We report our energy consumption, including self-generated ener- To become more cost and energy-efficient, we migrated from a
with the National Center of Energy Control (CENACE); with the results obtained, we decided
diesel generators with diesel-based to an electricity-based production model. Using elec-
gy and acquired energy used in our administrative and mining fa-
to suspend the project because it is not flexible enough for future developments. electrical generators with cilities. The total energy consumption at Compañía Minera Pangea tricity from CFE (Federal Electricity Commission) and reducing diesel
During 2019 we replaced diesel generators with electrical generators with an estimated an estimated benefit of was 9,551,760 x 106 Jules. consumption and emissions, we report positive outcomes for the
benefit of US$ 63,500 monthly and a complete return on investment within the current From January to November 2019, the total electricity consump- environment and our organization.
fiscal year. Another bonus was the noise reduction in our facilities, improving occupational US$ 63,500 per month. tion was self-generated, allowing an energy measurement based
health conditions. on monthly usage and costs. Therefore:
In 2019 we began evaluating alternatives based on gas generation and turbines, which Regarding fuel consumption, we can observe a 55% reduction Energy usage 9,551.73 GJ / production 16,393 equivalent
seem promising. Previous studies estimate a 30% increase in efficiency compared to our in diesel compared to last year, mainly attributed to the cessation oz = 0.58 GJ/Oz.
current technology. In the future, we will establish new systems to audit energy use, which of extraction activities and the installation of gas-based generators.
will contribute to the success of Project Fenix. We are reporting this standard for the first time. While this is the first time that we have reported this standard,
In terms of renewable energy, we are maintaining the eight we seek to establish a precedent for a future report. We also plan
photovoltaic modules destined for communications and internet to review and refine the process and to further improve the analy-
access, which provide less than 0.05% of our annual energy re- sis by reporting a metric that reflects our activities and efficiency
quirements. more accurately.
GRI 302-4 GRI 302-1 GRI 302-3 GRI 302-4

We protect the
natural bodies of
water in the region.
GHG
Emissions
Mining operations present significant chal-
lenges to achieving sustainability. Their fa-
cilities are far from the cities, and physical
movements demand substantial amounts
of fuel for self-generation, which in addition
to the one provided by national networks,
contributes significantly to GHG emissions.
In 2019 our greenhouse effect gas emis-
sions decreased by 22% compared to last
year. We attribute this change to three
main factors: first, that the extraction and
crushing activities ceased in 2018, second,
the installation of gas generators, and fi-
nally, the interconnection with the Federal
Electric Commission networks. This analysis Our plant nursery
allows us to identify more precisely the ori- grows more than 50
gin of our GHG emissions: different species.
•
D IRECT SCOPE: Self-generated
energy in our operations, including
gasoline, diesel, and propane.
GHG Emissions
• INDIRECT SCOPE: Energy supplied
REACH NUMBER UNIT CO2 EQUIVALENT (T)
by the Federal Electricity Commission.
Direct 1,435,755 L 3,442.00
Indirect 1,130,573 KW/H 517.80
Total 3,959.80
22%
less emissions
Emissions Intensity
In 2019, we reported the Emissions Intensity records for the first time and the Energy Intensity.
This report demonstrates our denominator’s calculations by dividing the GHG (Direct
Water
scope + Indirect scope) by the total number of ounces produced. Since we are in a transi- Mining requires considerable amounts of water in its daily operations, including for pro-
than in the tion phase, metrics for Energy Intensity may vary in future reports. duction processes, suppressing dust on roads, reforestation, cleaning the sites and for
the proper functioning in terms of hygiene in administrative offices.
previous year
Therefore: We believe that we must reduce the impact of our operations through the respon-
GHG Emissions are: 3,959.80 T CO2 Equivalent / production 16,393 equivalent sible use of natural resources. We have established processes for safe water discharge
ounces = 0.24 T CO2 Equivalent / Oz. and preventive measures that protect underground water.
We measure water volume based on the daily pumping data to the heap leaching
We have not yet established a specific project for GHG reduction because our opera- and other areas of the process and the water invoices from the National Water Com-
tional priority is to identify opportunities to improve energy efficiency. mission (CONAGUA).
GRI 303-1 GRI 303-2 GRI 303-3 GRI 306-1

GRI 305-1 GRI 305-5 GRI 306-5

Waste
Management
We strive to reduce residuals from our
operations. Therefore, we must guarantee
legal compliance of waste disposal to mini-
mize our environmental footprint.
In 2019, we ensured the correct handling
and disposal of 55,561 kg of hazardous re-
siduals stored in our facilities and that will
be transported by a certified collection
and disposal company in compliance with
applicable laws. For cyanide disposals, we
work with certified companies registered
by the National Cyanide Management
Code, which guarantee that they operate
under safety and environmental protection
Water quality protocols, as well as contingency plans.
review process. We discharge non-hazardous residuals,
such as paper and electronics, through so-
Water Management Wastewater Transfer cial initiatives that we describe in the social
During the last two years, we have improved water management We have zero discharges to natural water bodies, protecting aqui- impact section. ADR plant
by migrating from water well extraction to stored rainwater at Sa- fers, lakes and rivers. Therefore, in 2019 no natural body of water operation.
maniego and Lupita pits, which in 2019 stored 291,412 m3 of water. was affected by our operations. All discharges originated from our
We currently have the concession from CONAGUA for the use of activities were transferred to suppliers with environmental man-
150,000 m3 of water from the Sinaloa river basin to meet our operative agement certifications.
needs. However, in 2019 we invested in equipment, so all the water Discharges from our administrative offices go to the local san-
used to continue operations at El Gallo comes from rainwater. itary sewers. Waste Disposal 2019
As a preventive measure, we will maintain all the equipment and
licenses to resolve any contingency or in case it is required by the TYPE SUPPLIER DISPOSAL METHOD KG
future Fenix Project.
Used Automotive Oil Bao Ingeniería y Servicios S.A de C.V. Confinement 5,120
Only water from the well can be used for consumption, so we esti- Transferred Water
mate our water footprint at 2% of our closed water circulation circuit, Acids and Reagents Bao Ingeniería y Servicios S.A de C.V. Confinement 2,987
which in 2019 reached 4,970,363 m3. SERVICE SUPPLIER M3
Bao Ingeniería y Servicios S.A de C. V.
We extracted 8% more water in 2019 compared to 2018 because Discharge of septic
Accumulators Used
Battery Plus S.A. de C.V.
Confinement 1,399
we provided it to the communities, as explained in the Community En- Drenax S.A. de C.V. 50.00
tanks
gagement section. Aerosol Sprays Bao Ingeniería y Servicios S.A de C. V. Confinement 160
Ecología, Vida y
Portable Toilets 40.63 Hydrocarbon Contaminated Water Bao Ingeniería y Servicios S.A de C. V. Confinement 5,920
Salud. S.A. de C.V.
Water Consumption Total 90.63

Paint Cans Bao Ingeniería y Servicios S.A de C. V. Confinement 72
Used Ink Cartridges Bao Ingeniería y Servicios S.A de C. V. Confinement 100

ORIGIN USE M3
Fluorescent Lamps Bao Ingeniería y Servicios S.A de C. V. Confinement 90
Water Consumption Process 99,930
Alkaline Batteries Bao Ingeniería y Servicios S.A de C. V. Confinement 15
0%
Water From Pits Road Irrigation 8,400
Bao Ingeniería y Servicios S.A de C.V.
Total 108,330 Solids Contaminated with Cyanide Confinement 28,088
Corporativo King, S.A. de C.V.
Automotive Maintenance Solids Bao Ingeniería y Servicios S.A de C. V. Confinement 9,810

discharges into
natural water bodies. Contaminated Soil Bao Ingeniería y Servicios S.A de C. V. Confinement 1,800
GRI 303-1 GRI 303-3 GRI 306-1 GRI 306-2 GRI 306-5 GRI 306-2 GRI 306-4

Species Restored 2019
NO. COMMON NAME SCIENTIFIC NAME SPECIMENS

1 Acacia Acacia Sp. 240
2 Agustina Cryptostegia grandiflora 250
3 Amapa Tabebuia penthapylla 287

4 Amole Agave vilmoriniana 80
5 Ayale Crescentia alata 115
6 Bainoro Negro Pisonia capitata 195
7 Berraco Stemmadenia palmeri 75
8 Bainoro Celtis pallida 50
9 Brazil Hematoxilum bracileto 141
10 Binolo Acacia cymbispina 162
11 Binorama Acacia farnesiana 355
12 Cacachila Karwinskia humboldtiana 155
13 Cardón Pachycereus pecten/aboriginum 60
14 Ceiba Ceiba pentandra 13
REPLACED 15 Cedro Cedrela oderata 128
TOPSOIL 16 Copal Bursera penicillatum 12
26,746 m 3
17
18
19
Copalquin
Cuilon
Dais
Coutarea pterosperma
Mimosa purpurancens
Acacia spp
20
115
82
20 Ebano Caesalpinia sclerocarpa 60
Biodiversity Our plant nursery has monitored the

growth of more than 20,000 plants of
21
22
Guamuchil
Guasima
Pithecellobium dulce
Guazuma ulmifolia
203
135
Restoration 50 different species. During the year, 23 Guayacan Guiacum coulteri 10
Our activities can have a significant effect on biodiversity and can impact the ecosystems, we planted over 5,200 species (25% 24 Huaje Leucaena leucocephala 130
plants and wildlife. The restoration program requires considerable financial investment and of our nursery’s capacity) to restore 25 Huanacaxtle Enterolobium cyclocarpum 65
strict control in mitigating the consequences of our operations. Our comprehensive plan areas covering 5 hectares at the San 26 Huizache Caeselpinia cacalao 71
Our comprehensive goes beyond transplanting and sowing; it also considers replacing topsoil. Rafael pit and 3 hectares at the Lupita 27 Junco /Retama Parkinsonia aculeata 140
In 2019, we advanced our restoration work as planned, beginning the rehabilitation works, pit. All the species planted are native
plan goes beyond smoothing the slopes at the San Rafael and Samaniego waste dumps, removing more than to the region and they are transplant-
28 Manzanilla Perityle microglossa 20
transplanting and 367,866 m3 of waste. This plan will be completed in 2020 by adding another 191,801 m3. ed only once they achieve a 90% sur-
29 Mauto Lysiloma divaricata 269
30 Mezquite Prosopis juliflora 110
sowing; it also The restoration works covered a 15.1-hectare area, placing 26,746 m3 of fertile soil and vival rate.
31 Mora Maclura tinctoria 1
accomplishing the commitments established in 2018.
considers replacing 32 Palo blanco Ipomoea arborecens 112
topsoil. 33 Palo chino Havardia mexicana 60
34 Palo colorado Caesalpinia platyloba 340
35 Palo fierro Pithecellobium mangense 162
36 Palo pinto Pithecellobium tortum 212
TOTAL PROJECT
VOLUME MOVED IN 2019 2020 PLAN 37 Palo zorrillo Thounidium decandrum 135
VOLUME
AREA
PLANTED 38 Papache Randia echinocarpa 43
M³ M³ M³ SPECIES 39 Papachio Randia mitis 20
San Rafael
Samaniego
484,612
75,066
354,903
12,974
129,709
62,092
5,204 40
41
42
Papasoltli
Pionia
Pochote
Erytroxylum mexicanum
Erythrina lanata
Ceiba aesculifolia
35
195
14
Total 559,678 367,877 191,801 43 San Juan Jacquinia pungens 14
44 Siviri Cylindropuntia alamosensis 2
45 Tepeguaje Lysiloma acapulcensis 1
46 Venadillo Swietenia humilis 110
GRI 102-15 GRI 103-2 GRI 304-3 GRI 304-2 GRI 304-3 Total 5,204

| Sección |
We also continue to monitor endangered species in compliance with NOM-059-SEMAR-

NAT-2019. Since 2019, we decided to restrict activities that could modify the behavior of
some species, consequently, we removed the water troughs used during drought seasons
that will not be available after the mine closure. We have also taken measures to eradicate
non-native species, capturing and transporting 50 dogs to specialized shelters.
SPECIES FAMILY COMMON NAME STATUS NOM-059 ENDEMISM CITES*
Subject to special
Aratinga Canicularis Psittacidae Orange Front Parrot Non Endemic Yes
protection
Ctenosaura Pectinata Iguanidae Iguana prieta Endangered Endemic Yes
Masticophis Flagellum Colubridae Chirrionera Endangered Endemic Yes
* Convention on International Trade in Endangered Species of Wild Fauna and Flora.

Since 2019, we decided
to restrict activities
that could modify
the behavior of some
species.
Celedonio Heraldez,
executing reforestation
activities.
Protected Species
We acknowledge our responsibility to preserve protected species. By taking the appropri-
ate measures, we believe that we can maintain sustainable biodiversity.
In 2019, we continued to comply with established protocols by official norms (NOM-059-
SEMARNAT-2010). In our restoration program, we seeded 415 specimens from 3 different
protected plant species.
NOM-059-
SPECIES SCIENTIFIC NAME SPECIMENS
SEMARNAT-2010
Handroanthus Impe-
Trumpet Tree tiginosus / Tabebuia Endangered 287
Crysantha
Cedro Cedrela Odorata Special protection 128
GRI 304-3
GRI 102-11 GRI 304-3

| Sección |
Construction of paved
road from El Chinal to El
Valle de Leyva Solano.
“Information is fundamental to social and economic activities

that build the development process. Telecommunications, as
a way of communication, is not just a connection between
people, but another link in the development process itself.”
Heather Hudson, 1995, World Bank
Despite the significant progress in tech-

nology and telecommunications services,
rural areas do not have the infrastructure
for telecommunications. As an example,
thousands of people still live without ba-
sic cell phone services. By improving tele-
communications infrastructure, we meet
health, safety, educational and techno-
logical development needs.
For this reason, in recent years we
started to look for alternatives that al-
low communication in our communi-
ties, stretching beyond the life of mine,
as there are currently internet services
which depend entirely on our operations.
Nevertheless, technical obstacles have
limited our efforts.
In 2019, in partnership with Telcel,
we concluded the necessary arrange-
ments to install the first cell phone tow-
er within the El Gallo area. This initiative
provides telephone and internet access
independent of our operations. The ben-
efited communities include Bacamopa,
Nacimiento, El Rincón, El Ranchito, Ma-
gistral, Potrero de las Perdices and Lo de
Gabriel. The range of usage is between 5
Special Report:
to 20 km, depending on the landscape of
the area.
With this project, we promote social
and educational development conditions
Communication and and generate long-term benefits, which

extend beyond the mine closure. Maintenance
to Transmission
Antennas.
Development
| Sección |
Abel Montoya,
Community Relations
and Israel Muñoz,
Comissariat from
El Valle de Leyva
Solano.
Mining can generate benefits for the communities in which we op-

erate. It creates employment opportunities, develops skills, diversifies
the economy, and develops communities. We are committed to build
relationships in communities and contribute positively to their life quality.
Understanding the needs of our employees, forging alliances, and
participating are essential for our operations’ success. Therefore, we are
looking forward to creating shared value with the community through
the promotion of human rights, education, health, investment in com-
munity projects, respect for local culture and traditions, while always
maintaining open communication.
In the past few years, we have established community relations pro-
grams using the following strategy:
1. Education and Skill Training

2. Child Care
3. Infrastructure Development
4. Well-being for Family and
Community
5. Respect for Local Culture
6. Participation with Social Benefit
Organizations
7. Donations
8. Environmental Culture
9. Response to Chemical Emergencies
10. Sport Promotion
We understand that to transform our communities, basic needs like
PEOPLE health, safety, and transportation must be satisfied. To achieve this, we
BENEFITED must foster alliances with the local government and civil organizations.
73,748 In 2019, we invested a total of US$ 101,711 in community engage-

ment programs, generating benefits for 73,748 people.
TOTAL INVESTED
US$
Communities 101,711

| Communities |
Promoting Sustainable
Development in Youth
To promote the “Decade of Action” established by the United Na-
tions Organization, Jesus Morgan, our Social Responsibility Coordi-
nator, presented a lecture within the Sinaloa’s Day of Knowledge cel-
ebration: “Well-Being and Ethical Values for Social Change”. The goal
was to achieve the 2030 Agenda for Sustainable Development and
its actions regarding contributions from the youth, civil society, and
our Company. This event was held on October 29 and organized by
Sinaloa Bachelors’ College (COBAES), at the El Valle de Leyva Solano
facilities, with over 40 high school students in attendance. Moreover,
we believe that in the future we will maintain this participation in-
volvement with a view to promoting sustainable development.
Sustainable
Development Goals
ACTIVITIES COMMUNITIES BENEFICIARIES INVESTMENT Lecture at COBAES.
Sustainable Development
1 40 N/A.
Goals Lecture
Economic Diversification 3 30 US$ 768.30
Education and Skills

Local development is directly related to education. It is essential to foster learning of new
skills, reinforce acquired knowledge, and facilitate adequate spaces to share knowledge in
equal and inclusive conditions. We base our social strategy particularly on education and Internet for the Communities Communities benefited with internet service
skill development. Most notably, we create opportunities to increase the number of stu- The digital gap can generate social inequality, the lack of informa-
dents who complete their education, support local schools’ equipment, and promote skill tion can delay improvements in education, health, and economic YEAR COMMUNITIES INHABITANTS INVESTMENT
learning that leads to decent employment and entrepreneurship. conditions. On the educational front, access to the internet en-
2019 10 2,439 US$ 2,436.11
Keeping an open dialog with the communities has contributed to the positive impact courages renewed learning methods, creative thinking (when used
of our social efforts and resulted in a number of alliances with organizations to enhance correctly), and social communication. To reduce inequality, since 2018 10 2,593 US$ 2,805
the results. 2016, we donated internet services to ten communities: El Magis-
tral, El Potrero, El Valle de Leyva Solano, Lo de Gabriel, Bacamo- 2017 10 2,593 US$ 2,500
pa, El Rincón de Los Santos, El Nacimiento, El Gallo, El Tule and 2016 9 1,600 US$ 1,600
El Mezquite. Throughout 2019, we invested a total of US$ 2,436.11,
Economic Diversification including US$ 1,037.26, for facilities maintenance.
In alliance with the Sinaloa Work Training Institute (ICATSIN), we
contributed with technical training education of 15 people. We of-
fered a scholarship paying 50% of the enrollment fee for “Industrial
Clothing Manufacturing” studies. In addition, we provided the ma- Alliance for Education
terial required for each level of the workshop. Women who have In alliance with the company “Compromiso en Tácticas de Seguri-
benefited from this scholarship are residents of the communities: dad Privada SA de CV” (COTASEPRISA), we offered a conference
El Tule, El Gallo, and El Palmar de Los Sepúlveda, populations with on the subject of “Value in Education” and donated 200 backpacks,
whom we have worked closely. We are proud to report that during promoting education for 200 children from the communities of Ba-
May 2019, they completed Level 4. In view of the participants’ camopa, Las Tahonas, Lo de Gabriel, El Manchón, El Tule, El Potrero
200
commitment, we have granted 15 additional scholarships to the El de las Perdices and El Magistral.
Industrial Clothing Palmar de Los Sepúlveda community, investing US$ 768.30. This
Manufacturing program is a model for creating new economic development op-
Workshop at El Tule portunities in the region and promoting women’s entrepreneurship
community.
in small communities. Mochilas entregadas
GRI 203-2 GRI 413-1 GRI 203-1 GRI 413-1

| Communities |
Abel Montoya
Students from and students
Lo de Gabriel from Bacamopa
community. community.
Child
Care
Edumina Program
includes kids of our
Smiles Pangea
employees. Healthy recreation is fundamental for social development by allowing a child to become an
emotionally and physically healthy adult. As an opportunity to celebrate children and with
GRI 413-1
the understanding of their living conditions, we support different schools by contributing on
Children’s Day and Christmas celebrations.
Edumina
A large part of the social projects reported have been maintained for many years, yet
Edumina has distinguished itself as our star project. It promotes knowledge about the min-
ing industry in preschool and elementary school children, through visits to schools and an
annual contest that encourages creativity by capturing their learning through drawing. 35
In addition to promoting the activities and the impact of the industry, the project is also im- Communities
12
portant because many participating children are our employees’ children. We estimate that
70
since 2014 Edumina has reached more than 800 children from the different communities where
we operate.
During the first quarter of the year, we celebrated the award ceremony for EDUMINA 2018
Award-winning drawing contest. Each of the 12 winners from different communities surrounding the El Gallo Schools
project received an electronic tablet, a visit to mine facilities, and their drawings included in our
children
US$ 4,291.90
annual calendar. We invested a total of US$ 2,021.96.
Investment
EDUMINA AND THE PROMOTION CHILDREN’S DAY CHRISTMAS “POSADAS”

MONTH COMMUNITY BENEFICIARIES
OF WOMEN IN THE INDUSTRY In addition to promoting the well-being of Generation after generation, the piñatas,
March Lo de Gabriel 15 In 2019 we fostered talks about gender in- children in Mexico, the celebration of Chil- Christmas carols, food, and traditional songs,
clusion and equality, as well as the impor- dren’s Day becomes a great party that pro- represent the celebration of Christmas
March El Potrero de las Perdices 6
tance of women in productive activities, vides fun and gifts. Through our department “Posadas,” a cultural heritage that expresses
October El Valle de Leyva Solano 51 particularly the mining industry. We visited of social responsibility and community rela- Mexican culture. To support our communi-
four schools in the communities of El Valle tions, 1,550 children received bags of candy ties, we delivered bags of sweets to 1,550
October Bacamopa 5
de Leyva Solano, Bacamopa, Lo de Gabri- for the festivities organized by around 70 children. We appreciate the voluntary and
el, and El Potrero de las Perdices. Seven- preschool and elementary schools repre- joyful participation of our finance team.
77
ty-seven children attended and participat- senting more than 35 communities and an
Participants in 2019 ed in the EDUMINA 2019 drawing contest. investment of US$ 2,145.95.
Edumina Contest GRI 203-1 GRI 413-1

| Communities |
Road Construction
There is an essential link between urbanization and develop-
ment. Access to urban areas provides access to health care and
education services. Infrastructure donation has been a constant
among our company since the beginning of operations. As firm
believers in maintaining a constructive and sustainable rela-
tionship with the community, we invested US$ 14,928.75 for the
paving of roads in El Magistral.
Seats in the
Santa Cruz Chapel
We believe facilitating spaces for healthy recreation promotes
fundamental values, reflecting a more inclusive, peaceful, and
Road pavement
united society. Therefore, we donated ten benches for the at El Magistral
Chapel of the Holy Cross in the El Magistral community. community.
Pedestrian Bridge
The climatic conditions affect inhabitants with limited access
to urban equipment. Every year, the community of El Valle de
Leyva Solano in Mocorito is affected by the rain, making tran-
sit impossible when an emergency occurrs, so we have built a
pedestrian bridge that serves more than 900 people. The open-
ing ceremony was attended by municipal authorities, benefiting
students from “COBAES” 083, students from Secundaria Tecni-
ca 33, people from the community, and our employees.
Infrastructure Development Pantheon Las Tahonas

In Mexico, and particularly in rural areas, there is great respect
Our social commitment is reflected in the continuous donation for infrastructure. We for family members who have departed, that is why The Day
Opening event of
know that this is an essential contribution that the mining industry can provide to com- the pedestrian bridge
of the Dead celebration has gained importance locally and in-
munities. In 2019 we managed to increase the number of direct beneficiaries in this at El Valle de Leyva ternationally. Recognizing its value, we donated US$ 264.93 in
area because our communities’ development significantly improves the quality of life Solano. material for the construction of an appropriate access door for
of inhabitants, including our employees. In the next years, we expect to broaden our the pantheon facilities.
impact by forming strategic alliances that help us reduce inequalities and create sus-
tainable communities. Donation of
furniture in The
Santa Cruz Chapel at
GRI 203-1 GRI 413-1 the community of El
Magistral.
Maintenance of
172
Infrastructure 2019
Neighborhood Roads COMMUNITIES INFRASTRUCTURE BENEFICIARIES INVESTMENT
Road The constant dialogue with our communities helps us detect Road repair and maintenance US$ 10,487.27
their immediate needs such as the maintenance of neighbor-
maintenance hood roads. In 2019, we allocated resources equivalent to US$
El Magistral Road paving 37 inhabitants US$ 14,928.75
kilometers 10,487.27 to maintain 172 kilometers of road.

El Magistral
Construction of benches in the chapel of
37 inhabitants US$ 2,418.89
La Santa Cruz
El Valle de Leyva Solano Construction of the pedestrian bridge 955 inhabitants US$ 32,032.93
Las Tahonas Donation of material for the pantheon 229 inhabitants US$ 264.93
GRI 203-1 GRI 413-1 Total US$ 60,132.77
ODS 3
COMPAÑÍA MINERA
MINERA PANGEA � 83
PANGEA �
82 � 2019 SUSTAINABILITY REPORT COMPAÑÍA 83
| Communities |
Family and
Community
Well-Being
We believe that our resources can contrib-
ute to social development; therefore, we
invest in activities that contribute to the
well-being of our communities, including
medical services and the water supply.
Health day at mine
facilities.
Respect for
the Local
Culture
Medical Day Respect for human rights and the promo-
Within the framework of the Health Promoting Communities Certification activities, we tion of universal values are relevant actions
organize the Medical Day in the El Valle de Leyva Solano Community, offering more than within our relationship with communities, so
20 health services for free. This Medical Day was possible thanks to the Sanitary Jurisdic- it is important to promote projects associ-
tion of Guamúchil, the Center for Superior Studies of Guamúchil (CESGAC), the Sinaloas’ ated with the preservation of local culture.
Training Institute for Work (ICATSIN) and Mocorito’s City Council.
Day of Santa Cruz
Water Supply At just over 100 years of continuous celebration, this commemoration is highly important to
Celebration of The
In recent years, Sinaloa has been affected by drought, mainly from April to August, which construction workers. It is a Mexican religious holiday associated with the pre-Hispanic custom “Santa Cruz”.
puts some of our communities in a vulnerable situation. In 2019, we invested US$ 23,073.24 to request good yearly harvests. Over time, these farmers transitioned to construction workers
for the daily supply of water, filling water tanks and containers for El Potrero, El Magistral, and preserved the tradition. Our company supported the El Gallo community with US$ 105.97
Ranchito de San Miguel and El Nacimiento communities. for the organization of this festivity. Moreover, we assisted the El Magistral and Corral Quema-
do communities by providing the machine to prepare the scene for the celebrations.
Public Health Day
Facilitating health services to our communities is one of our main concerns. For this rea-
son, we promoted initiatives such as the “1st National Public Health Day”. In 2019, we trans- 2019 “Arroyada”
ported the staff of Sinaloas’ Health Services to difficult access communities, where they The Bacamopa community, with little more than 115 inhabitants, carries out the “Arroyada”
+20
provided health information to mothers, distributed vaccines and serum to avoid dehy- celebration, which has become a tradition in the region every year, and to celebrate it, we
dration, and applied vaccines. The communities benefited were El Magistral, El Rincón de support the scraping and leveling of the creek.
Los Santos, Potrero de las Perdices, Ranchito de San Miguel, El Tule de Arriba, El Tule de
Abajo and El Gallo.
Health Altars Contest
Services The day of the Dead is one of the best-
known traditions in Mexico and has the
UNESCO recognition as Intangible Cultural
Heritage of Humanity. Since the altar is one
of the most representative elements of the
FAMILY AND COMMUNITY WELL-BEING COMMUNITIES BENEFICIARIES INVESTMENT celebration, we consider it essential to pro-
mote knowledge of this ritual. To encour-
Medical Day 1 955 US$ 748.22
age the participation of new generations,
Water Supply 4 180 US$ 23,017.37 we organize the 2019 Altar contest, inviting
schools from Lo de Gabriel, Cerro Agudo,
Public Health Day 7 764 US$ 12.29 and Palmarito Mineral to participate. Altar from Lo de
1,899 US$ 23,813.88 Gabriel school.
GRI 203-1 GRI 413-1

GRI 203-1 GRI 413-1

| Communities
Sección | |
Participation In 2019 we supported civil

society initiatives related
with Civil Society to education, health,
Organizations environmental issues. We
acknowledge the energy
The sustainable development agenda promotes the creation
of alliances between government, the private sector, and civil of volunteers to support
society. From our sphere of influence, we can help civil society Christmas pantry
organizations through financial support, knowledge transfer,
Donation to these initiatives. donation to the
Red Cross from institution DIF at
and sponsorships, viewed from a perspective of transparency Guamuchil. Salvador Alvarado.
and social support.
Participation with civil society
INSTITUTION PURPOSE US$ DONATIONS Donations

The institution that operates the Student House and provides a space
Albergue Estudiantil de Annually, we support causes that promote education, health and safety. In 2019, we made
with housing, protection and food so that low-income students with US$ 635.93
Mocorito, IAP
excellent school performance can attend college in Culiacán, Sinaloa. donations to strengthen health and safety, and to drive initiatives to reduce inequalities
while raising awareness.
The Food Bank gathers donations to feed low-income populations. In
Guamuchil Food Bank 2019, they aided 1,294 families in the municipality of Salvador Alvarado US$ 635.93
in a vulnerable situation.
INSTITUTION PURPOSE DONATION
Every year we contribute to the Red Cross in its Guamúchil and
Red Cross US$ 1,854.79 Secretariat of National Defense (SEDENA) Strengthening security, civic actions and social
Mocorito branches during the Annual Collection period. US$ 887.52
42 Infantry Battalion works.
The Mocorito Firefighters Department is one of the voluntary
Mocorito Fire institutions with the most extended history in the region and, at the Lo de Gabriel Community Medical supplies US$ 836.92
US$ 1,059.88
Department same time, with the most needs. Our contribution in 2019 was intended
Municipality of Mocorito and National College Hydrating drink and t-shirts for participants of the
to repair the engine of one of its vehicles. US$ 23.84
of Technical Professional Education Green Tour.
Casa Valentina provides care to low-income families with children with
Casa Valentina for Total US$ 1,748.28
cancer. We are proud of the joint participation of employees and the US$ 52.99
children with cancer
company to collect plastic lids donated for this cause.
We participate in an initiative called “Green Schools”, which is promoted

by the Secretariat for Sustainable Development.
Green Schools Project
Through this initiative, we deliver sanitary equipment for nine toilets, US$ 985.26
(Escuelas Verdes)
three urinals, two sinks, two mixing faucets and tile adhesive for the reha-
bilitation and improvement of the hygienic facilities of said institution.
Grupo Chávez Radio annually organizes this race to raise awareness

2019 Pink Race about Breast Cancer. In 2019, we supported the enrollment of 8 US$ 98.35
collaborators to run for this cause.
us$
Christmas Celebration
Dinners
Annually, we donate 200 dinners to support DIF of Mocorito and
Salvador Alvarado institutions, so that they can provide Christmas
dinners to low-income families. This year’s theme was: “Let’s Bring Love
US$ 1,589.82 1,748.28
donations
to Each Table” and “For a Different Christmas.”
TOTAL US$ 6,881.61
Donation to 42
Infantry Battalion
GRI 203-1 GRI 413-1 GRI 203-1 GRI 413-1

| Communities |
Environmental Culture
Environmental contamination is one of the main obstacles that we
face as a society. However, in many rural populations, it is not con-
sidered a severe problem. For this reason, every year, we participate
in various initiatives dedicated to the care and preservation of the
environment, through which we can make people in our community
more conscious about environmental challenges.
World Environment Day Road cleaning from

El Chinal to Arroyo
World Environment Day was created by the United Nations to in- Seco.
crease consciousness for the environment and biodiversity. Our
volunteers gather to clean the roadway connecting El Chimal and
Arroyo Seco. A total of 14 m3 or 500 kg of trash was collected, and
our team demonstrated the value of protecting our planet.
2nd Electronics Recycle Campaign

As in the previous year, in 2019, we collaborated with CEMEFI’s
regional ally, AccionaRSE, in various social responsibility initiatives.
In alliance with Centro de Desarrollo Ambiental (CDA) from Los
Mochis, Sinaloa, we organized an event to promote the collection
and recycling of electronic devices. In 2019, we received 14 tons of
electronic waste, preventing this material from polluting the envi-
ronment through traditional disposal.
Materials Recycling: Friends of

Ecology Civil Association
Delivery of materials in
recycling campaigns.
We believe that alliances are crucial to generate consciousness Community Participation in
about sustainability. In participation with Friends of Ecology Civil As-
sociation, we recovered and recycled 945 kg of cardboard and 145 River Cleaning
kg of plastic wrap. They will dispose of these collected materials The Socially Responsible Companies Community in Guamúchil or-
through various recycling processes. ganized and participated in the cleaning of an important river in the
town of Guamúchil. We recruited a volunteer team for this project
and provided them with bags, gloves, and masks to safely perform
these activities.
GRI 413-1 GRI 413-1

| Communities |
Response to Chemical
Emergencies
Training and operational practices have focused on security and
prevention themes. Moreover, we constantly work to ensure that
we are prepared in case any emergency occurs at our facilities.
Over time, we have helped surrounding communities with incidenc-
21,292 es and emergencies. This has proven the importance of donating

specialized training to the civil society and government agencies
in the region. In 2018, we incorporated into our community rela-
Kilograms of tions program a Chemical Emergencies Training for the Red Cross,
Firefighters and Civil Protection teams from Salvador Alvarado and
Recycled Materials Guamúchil municipalities. This year, we sponsored the “Response
to Chemical Emergencies” training to 37 members of these teams.
Recycling of Materials with CDA Response to Chemical

Emergencies Training
Our efforts to separate materials have fostered a culture of reuse
and recycling among our employees. In 2019, the Environmental De-
velopment Center (CDA) received 903.60 Kg of paper, 1,491 Kg of
cardboard, 330 Kg of plastic and 3,745 Kg of plastic wrap for proper
disposal.
The 4th Recycleathon

Every year we respond to Grupo Anjor invitation to promote recy-
GRI 413-1
cling. This is one of the leading environmental initiatives in Culia-
can and also one of the most visible. In addition to supporting the
awareness program, we delivered 1,030.50 Kg of old archives. Alto-
Promotion of
“Reforesting my
School” Environment
Project Support.
gether, more than 9,800 Kg of waste were collected. Community Sports
Recreational and healthy leisure activities, such as sports are
essential to strengthen social relations and to promote healthy
exercise. Furthermore, we created awareness about the importan-
ce of physical activity for the proper functioning of the body and
the well-being of people. For this reason, we supported this activity
Environmental Initiatives during 2019.
ENVIRONMENTAL INITIATIVES PARTICIPATION RECYCLED MATERIALS

Opening Little
World Environment Day Pangea Volunteers 500 kg League Baseball
Sports Events Donations
in Mocorito.
2nd Electronic Recycling AccionaRSE and Environmental Development Center AC 15,000 kg
BENEFITED ORGANIZATION SPORTS EVENTS INVESTMENT PROFIT CONTRIBUTION
Friends of Ecology Recycling Friends of Ecology AC and Environmental Development Center AC 4,359 kg
Voleyball Friendship
Lions Club Centro AC US$ 63.58 Referee fee
River Cleaning Niños Heroes Colony Tournament
Recycling of Materials Environmental Development Center AC 402.60 kg Compañía Minera Pangea Voleyball Friendship
US$ 213.80 15 uniforms
Employees Tournament
The 4th Recycleathon Grupo Anjor 1,030.50 kg
Municipal Baseball
Reforesting my School Environment Agustina Ramírez Educational Institute Mocorito Municipality Little League of US$ 798.40 Uniforms for 3 teams
Mocorito
Total of Recycled Material 21,292 kg GRI 413-1

| Sección |
As a company, we
must incorporate
social, economic,
and environmental
perspectives to
guide our business
strategy.
As a society, we have a shared commitment to achieve sustain-

ability on the planet. As a company, we must incorporate social,
economic, and environmental perspectives to guide our business
strategy. Incorporating these agents into our management mod-
el helps us measure our contribution to achieving the Sustainable
Development Goals. We are also committed to transparent partic-
ipation in social audits that assess our ethical, social, and environ-
mental behavior.
Awards, Initiatives and

Alliances
| Awards, Initiatives and Alliances |
Jesús Morgan,
Social Responsibility
Socially Coordinator
United Nations
Responsible Global Compact
Company The United Nations Global Compact is the world’s largest corpo-
In 2018 we
requested to join
rate sustainability initiative that promulgates organizational princi-
Centro Mexicano para ples and values with the primary purpose to generate solutions that the United Nations
la Filantropia, CEMEFI.
address global challenges. Global Compact,
The United Nations Global Compact invites companies to incor-
and in 2019 we
(Mexican Centre for porate in their business strategies ten universal principles related to
human rights, labor rights, environmental care, and anti-corruption. continued with
Philantropy) It focuses on their social purposes in the pursuit of the SDGs. In
the process.
addition, it involves thousands of companies worldwide who have
CEMEFI’s mission is to promote philanthropic publicly committed to include sustainability in their strategies for
participation among socially responsible and business and social benefit.
committed citizens, among social organiza- .
tions and enterprises in order to create a fair-
er and more prosperous society.
Through the Socially Responsible Company Distinction, CEMEFI accredits and recognizes
companies for their commitment to creating shared value to their stakeholders, who pub-
Safe Company
licly demonstrate: The Self-Management Program for Health and Safety at Work en-
courages companies to establish and operate health and safety
•
A COMMITMENT to implement and continuously improve socially respon- systems. These standards are based on national and international
sible management as part of its business culture and strategy. precedents that support safe working centers.
The Secretariat of Labor and Social Welfare (STPS) has estab-
• HAVING policies, procedures, and programs that share a socially responsible lished participation policies that dictate the following:
vision throughout each level of organization.
• GUIDING the company towards a sustainable and socially responsible 1. All participation is voluntary and will not be subject to
management model. federal inspections.
•
IDENTIFYING improvement opportunities in the business’ integral management. 2. The program is open to any workplace, prioritizing high-
• STRENGTHENING their stakeholders’ trust, which will generate added val- risk activities.
ue to the institutional image and competitiveness. 3. The evaluation processes, audits, and acknowledgment
Applying for the Socially Responsible Company distinctive is voluntary, yet it is obtained grants are transparent.
through a diagnostic process based on indicators and documented evidence that includes
the different areas of social responsibility: By adopting and complying with the Self-Management Program
2019 marked the 4th for Health and Safety at Work, we have received the “Safe Compa-
• SOCIAL RESPONSIBILITY management. ny” recognition since 2016.
consecutive year when
we received the Socially • Business ETHICS.
Responsible Company • QUALITY OF LIFE in the Company.
distinction. • Environmental CARE AND PRESERVATION.
• Community ENGAGEMENT.
Florencia Sánchez,
Health and Safety.
GRI 102-12 GRI 102-12
By participating for this distinction, we are committed to create a positive impact on soci-
ety, environment and community, beyond our corporate obligations.

Women in
Mining Mexico
Mujeres WIM Mexico is a non-profit orga- WIM projects include:
nization created to endorse initiatives that
promote equal opportunities and working • TRAINING and coaching programs
conditions for women in the mining industry
in Mexico.
• PROMOTION of inclusive actions
• INCREASING the number of women working in the mining industry
• FOSTERING female leadership in the mining industry
They are the local
In 2019 we supported the initiatives of Mujeres WIM Mexico by participating in conferences
chapter of Women in
and events hosted by Eurídice González, who acted as Social Responsibility and Sustain-
Mining, the world’s ability Manager of our company until November 2019.
leading network in
this matter.
WIM Mexico City district facility “1st National Congress of Women Leaders”
Conference “Gender Equity in Mexican Mining” Panel “Women Leaders, the challenge of
January 17, 2020 transcending”
CAMIMEX offices in Mexico City June 1st, 2019
Oaxaca Cultural Convention Center
Launch of the national reading strategy
January 27, 2020 Association of Mining Engineers,
Mocorito, Sinaloa Metallurgists and Geologists of Mexico,
Sinaloa District Pledge
WIM presentation June 2019
WIM meeting to promote participation in gender Mazatlan, Sinaloa
Clean Industry equality issues

February 2020 Sinaloa District of the Association of Mining
Engineers, Metallurgists and Geologists of
The National Program of Environmental Audit is a voluntary evalu- Since 2012, Guamuchil, Sinaloa
Mexico
ation that assesses the organizations’ environmental performance
and detects areas that need improvement. This audit verifies the
PROFEPA has International Prospectors & Developers June 1, 2019
fulfillment of federal laws, local laws, and the Official Mexican Nor- recognized Association of Canada Convention (PDAC) Mazatlan, Sinaloa
“El Gallo Project: Perspectives from exploration
mativity established by SEMARNAT. El Magistral’s and mining in Mexico”. XXXII International Convention on Mining
This program assists companies to improve their environmen-
tal performance, and SEMARNAT checks every detail of their pro- operational March 6, 2019 Signing of the Collaboration Agreement between
Metro Toronto Convention Center, Toronto, Canada the Mexican Mining Chamber and Mujeres WIM
cesses, the full compliance of normativity, and the establishment area with the Mexico.
of environmental best practices. Upon the outcome of this audit,
PROFEPA grants the Clean Industry certificate.
Clean Industry Mujeres WIM Mexico - Discoveries Mining October 21-25, 2020
Certification. GRI 102-12 Conference “Women in Mining: A new Imperial World, Acapulco
perspective”
April 2-4, 2019
GRI 102-12 GRI 102-13 Mazatlan, Sinaloa

MEXICAN MINING CHAMBER

The Mexican Mining Chamber represents the general interests of the country’s mining-met-
Security Plan
Training along
allurgical industry, strengthening its development and proper performance; it also publishes
Sinaloa State information about the industry’s activities and impacts and promotes the coordination of
Government. chambers and local or regional associations.
We believe that collaboration and contribution based on experiences and acquired knowl-
edge facilitate the growth and development of the industry and its stakeholders. In 2019, our
company participated in the CAMIMEX Board of Directors, collaborating in developing a com-
pendium of good practices within the mining industry. We also provided statistical data about
the company.
SINALOA MINING CLUSTER

This civil society, in which we took part as a founding Company, is a new entity was established
in coordination with the Sinaloa State Government. The Sinaloa Mining Cluster was founded
to collaborate in the creation of shared value, boosting the economy by associating with local
suppliers, speeding up procedures, training for work safety, and strengthening social respon-
sibility principles.
COUNCIL OF ECONOMIC DEVELOPMENT OF SINALOA

The Council of Economic Development of Sinaloa was established in 1996 in collaboration
with public and private sectors to increase competitiveness and economic growth, creating
conditions to attract and retain employment-generating investments.
As part of the Advisory Group for developing the human capital strategy, we partici-
pated in working groups that generate the appropriate conditions in promoting a person’s
growth.
Alliances
CENTER FOR INVESTMENT AND COMMERCE OF SINALOA.
The Centre for Investment and Commerce of Sinaloa is a specialized organization created
by CODESIN in coordination with the Department of Economy to attract and develop the
CANACO SERVYTUR DEL ÉVORA proper conditions for national and foreign investment.
The National Chamber of Commerce (CANACO) is an organization shaped by companies Relying on our experience in the mining industry, we have participated in several meet-
dedicated to commerce, services, and tourism. CANACO helps the commercial sector to ings that promote the use of natural gas in Sinaloa. Moreover, the CIT has been a promoter
satisfy society’s needs for proper goods and services. It also works as a representative for of the use of gas, providing specialized conferences with experts and gas-supplying com-
its members. panies, preparing its introduction to all the productive sectors of the region.
We are part of the Board of Directors of CANACO and therefore we contribute to the insti-
tution’s work on corporate social responsibility issues and participate in the organization of
conferences and events, such as the ESR Graduation.
MEXICAN SOCIAL SECURITY INSTITUTE
Since its foundation in 1943, the Mexican Social Security Institute is a government institution
that has the largest presence in the health and social protection area in Mexico. It combines
ACCIONARSE healthcare services, and resource management for its retired members.
The Mexican Centre for Philanthropy promotes the Socially Responsible Company distinc- During 2019, we participated as members of IMSS’ Citizen Participation Committee in
tion through its regional allies. AccionaRSE is their regional representation in the Sinaloa the Évora region, encouraging the building of a responsible and effective bond between
province. As the first mining company in the region with the ESR distinction, we collaborate the public and private sectors regarding public health topics.
with AccionaRSE to promote social responsibility.
During the year of 2019 we participated in the 2nd Electronic Recyclathon, coordinated by
AccionaRSE and the Environmental Centre of Development. Along with AccionaRSE, we were
part of the organizing committee of the conference “Equipos de éxito” in alliance with CANACO. STRATEGIC SUPPLIERS
We also supported the formation of the regional ESR group. Our 2019 sustainability commitment included all of our stakeholders. Therefore we have
made alliances with world-class consulting firms, such as GR Engineering Services and
INTERA Inc. Combining their expertise, our team seeks to optimize the financial and envi-
GRI 102-13 ronmental viability that will lay the foundations for Project Fenix.
GRI 102-13

| Sección |
GRI, SDG’s and Global

Compact Indexes
GRI Index
Our 2019 Sustainability Report uses selected GRI Standards, or parts of its
content, to report specific information.
STANDARD DESCRIPTION PAGE STANDARD DESCRIPTION PAGE
102-24 Nominating and selecting the highest governance body 16

GENERAL DISCLOSURES
102-25 Conflicts of interest N/A
Organizational profile
102-26 Role of highest governance body in setting purpose, values, and strategy 16,24,25
102-1 Name of the organization 18 102-27 Collective knowledge of highest governance body 30,48
102-2 Activities, brands, products, and services 17, 18 102-29 Identifying and managing economic, environmental, and social impacts 30,33-36,39,63
102-3 Location of headquarters 15, 111 102-30 Effectiveness of risk management processes 24,25
102-4 Location of operations 6, 17, 111 102-31 Review of economic, environmental, and social topics 29
102-5 Ownership and legal form 18 102-32 Highest governance body’s role in sustainability reporting 6,24
102-7 Scale of the organization 17, 19, 21 102-33 Communicating critical concerns 29
102-8 Information on employees and other workers 43 102-34 Nature and total number of critical concerns 29
102-10 Significant changes to the organization and its supply chain 20,21 102-37 Stakeholders’ involvement in remuneration
102-11 Precautionary Principle or approach 27,72 102-38 Annual total compensation ratio 44
102-12 External initiative 94 -97

Stakeholder Engagement
102-13 Membership of associations 97-99
102-40 List of stakeholder groups 29
Strategy
102-41 Collective bargaining agreements 42
102-14 Statement from senior decision-maker 7 -13
102-42 Identifying and selecting stakeholders 29,5
102-15 Key impacts, risks, and opportunities 21,29,39,41, 53, 70
102-43 Approach to stakeholder engagement 29
Ethics an Integrity 102-44 Key topics and concerns raised 29
102-16 Values, principles, standards, and norms of behavior 23, 33 Reporting Practice
102-17 Mechanisms for advice and concerns about ethics 6, 33 102-46 Defining report content and topic Boundaries 29
Governance 102-47 List of material topics 29
102-18 Governance structure 6-13,24,25 102-48 Restatements of information N/A
102-19 Delegating authority 24,25 102-49 Changes in reporting N/A
102-20 Executive-level responsibility for economic, environmental, and social topics 24,25 102-50 Reporting period 6
102-21 Consulting stakeholders on economic, environmental, and social topics 29,30,53 102-51 Date of most recent report 2018
102-22 Composition of the highest governance body and its committees 24,25 102-52 Reporting cycle Anual
102-23 Chair of the highest governance body 7,9-13
GRI 102-54 GRI 102-55

* Our production is sold by McEwen Mining.

| GRI Index |
STANDARD DESCRIPTION PAGE STANDARD DESCRIPTION PAGE
102-53 Contact point for questions regarding the report Jesús Eduardo 306-3 Significant spills N/A
Morgan Parra
306-4 Transport of hazardous waste 69
102-54 Claims of reporting in accordance with the GRI Standards 102
306-5 Water bodies affected by water discharges and/or runoff 67, 68
102-55 GRI content index 102
307-1 Non-compliance with environmental laws and regulations 63
102-56 External assurance 6,110
SOCIAL STANDARDS (400)
Management Approach
401-1 New employee hires and employee turnover 42
103-1 Explanation of the material topic and its Boundary 29
401-3 Parental leave 44
103-2 The management approach and its components 29, 33,41,47,53,57,63,70,77
402-1 Minimum periods regarding operational changes 45
103-3 Evaluation of the management approach 29,30 402-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 44
403-1 Occupational health and safety management system 53-61

ECONOMIC STANDARDS (200)
403-2 Hazard identification, risk assessment, and incident investigation 58, 60,61
201-1 Direct economic value generated and distributed 39
403-3 Occupational health services 58,61
202-1 Defined benefit plan obligations and other retirement plans 44,45
403-4 Worker participation, consultation, and communication on occupational health and safety 57,61
203-1 Infrastructure investments and services supported 77,79 ,81-87
403-5 Worker training on occupational health and safety 48,54,55
203-2 Significant indirect economic impacts 50,78
403-6 Promotion of worker health 44
205-2 Communication and training about anti-corruption policies and procedures N/A
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by bussiness 53-61
205-3 Confirmed incidents of corruption and actions taken N/A relationships
403-9 Work-related injuries 60,61

ENVIROMENTAL STANDARDS (300)
403-10 Work-related ill health N/A
302-1 Energy consumption within the organization 65 404-1 Average hours of training per year per employee 48,54
302-3 Energy intensity 65
404-2 Programs for upgrading employee skills and transition assistance programs 44,47,50,54,56
302-4 Reduction of energy consumption 64,65
404-3 Percentage of employees receiving regular performance and career development reviews 50,54
303-1 Interactions with water as a shared resource 67,68 405-1 Diversity of governance bodies and employees N/A
303-2 Water sources significantly affected by withdrawal of water 67
405-2 Ratio of basic salary and remuneration of women to men 44,45
303-3 Water withdrawal 67,68 406-1 Incidents of discrimination and corrective actions taken N/A
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity 17,19 407-1 Operations and suppliers in which the right freedom of association and collective bargaining may be at risk 42
value outside protected areas
408-1 Operations and suppliers at significant risk for incidents of child labor 45
304-2 Significant impacts of activities, products, and services on biodiversity 71
410-1 Security personnel trained in human rights policies or procedures N/A
304-3 Habitats protected or restored 70-73
412-1 Employee training on human rights policies or procedures N/A
305-1 Direct (Scope 1) GHG emissions 66
413-1 Operations with local community engagement, impact assessments, and development programs 77-91
305-5 Reduction of GHG emissions 66
415-1 Political contributions N/A
306-1 Water discharge by quality and destination 67, 68
419-1 Non-compliance with laws and regulations in the social and economic area N/A
306-2 Waste by type and disposal method 68,69

SDG Index
At Compañía Minera Pangea we understand that our planet is facing great economic, social
and environmental challenges and for this reason we join the United Nations’ initiative and
mandate the Sustainable Development Goals (SDG) to be our guide in placing the world in a
sustainable path.
This is our contribution:
SDG PRINCIPLE PAGE SDG PRINCIPLE PAGE
SDG SDG
Ensure availabiltiy and sustainable management of water

End poverty in all its forms everywhere. 42-45, 77 and sanitation for all. 29, 67-69,84
SGD SDG
End hunger, achieve food security and improved nutrition Ensure access to affordable, reliable, sustainable and
and promote sustainable agriculture. 44,86 modern energy for all. 64,65
SDG SDG
Ensure healthy lives and promote well-being for all Promote sustained, inclusive and sustainable economic
at all ages. 53 - 61, 84 growth, employment and decent work for all. 27,29,42-44
SDG SDG
Ensure inclusive and equitable quality education and Build resilient infrastructure, promote inclusive and
promote lifelong learning opportunities for all. 47-51, 78 - 80 sustainable industrialization and foster innovation. 79,82
SDG SDG
Achieve gender equality and empower all women and girls. 42,45,97 Reduce inequality within and among countries. 42-45,97

| SDG Index |
SDG PRINCIPLE PAGE
SDG
Global Compact Index
Make cities and human settlements inclusive, safe, resilient At Compañía Minera Pangea we have voluntarily adopted the 10 Principles
and sustainable. 36,43,44,77
of the Global Compact. The principles revolve around four pillars: protection
of labor rights, promotion of human rights; anti-corruption practices; and
SDG protection of the environment. Through adhering to this alliance promoted
by the United Nations, we commit ourselves to make progress in these areas,
Ensure sustainable consumption and production patterns. and make them public through this report:
SDG
Take urgent action to combat climate change and its GC PRINCIPLE PAGE
impacts. 66
HUMAN RIGHTS
SDG GC-1 Businesses should support and respect the protection of internationally proclaimed human rights; and 29, 42, 48, 51,53, 56,
57, 75, 78
Conserve and sustainably use the oceans, seas and marine GC-2 Make sure that they are not complicit in human rights abuses. 29, 35-37
resources for sustainable development.
LABOUR
GC-3 Businesses should uphold the freedom of association and the effective recognition of the right to 29,42
SDG collective bargaining;
Protect, restore and promote sustainable use of terrestrial GC-4 The elimination of all forms of forced and compulsory labour; 29, 33, 35, 42
ecosystems, sustainably manage forests, combat desertification,
63, 70-73 GC-5 The effective abolition of child labour; and 29,45
and halt and reverse land degradation and halt biodiversity loss.
GC-6 The elimination of discrimination in respect of employment and occupation. 42, 43, 44, 97
SDG ENVIRONMENT
Promote peaceful and inclusive societies for sustainable
GC-7 Businesses should support a precautionary approach to environmental challenges; 27, 29, 63, 68 - 72
development, provide access to justice for all and build
effective, accountable and inclusive institutions at all levels. 35, 86 GC-8 Undertake initiatives to promote greater environmental responsibility; and 27, 29, 48
GC-9 Encourage the development and diffusion of environmentally friendly technologies. 65
SDG ANTICORRUPCIÓN
GC-10 Businesses should work against corruption in all its forms, including extortion and bribery. 33-37
Strengthen the means of implementation and revitalize the
global partnership for sustainable development. 75-79, 84, 86, 88, 90,
97-99

| Limited Report Verification |
Limited Warning Statement

Report This report contains certain forward-looking statements and information, including
Verification forecasts, projections, expectations or beliefs about events and future outcomes of
Compañía Minera Pangea S.A. de C.V. Forward-looking statements and information
are necessarily based on several estimates and assumptions that, while considered
reasonable by management, are inherently subject to business uncertainties, risks
and contingencies, and it cannot be guaranteed that such statements and informa-
tion will prove to be accurate. Therefore, actual results and future events may differ
materially from those anticipated in such statements and information. Risks and un-
certainties that could cause future results or events that differ materially from cur-
rent expectations expressed or implied in forward-looking statements and informa-
tion include, but are not limited to, factors associated with fluctuations in the market
price of precious metals, mining industry risks, political, economic, social and security
risks associated with overseas operations, the ability of the corporation to receive
promptly permits or other approvals required in connection with activities, risks relat-
ed to the construction of mining operations and start-up of production and projected
costs thereof, risks associated with litigation, the state of the markets environmental
risks and hazards, uncertainty regarding the calculation of mineral resources and
reserves and the risk of exclusion from a public exchange and other threats.
This warning statement qualifies all forward-looking statements and information
made in this filing. All currency presented in this report is quoted in U.S. Dollars.
McEwen Mining Inc. Compañía Minera Pangea

150 King Street. Blvd. Antonio Rosales 855 Altos 12
West Suite 2800 Col. Morelos, CP. 81460
Toronto, Canada Guamúchil, Sinaloa.
Tel. +52 (673) 734 1990
GRI 102-56
GRI 102-3 GRI 102-4 GRI 102-53

| Sección |
We value
innovation in our
daily processes
and actions
to increase
the company’s
competitiveness.

| Sección |
McEwen Mining Inc.

150 King Street.
West Suite 2800
Toronto, Canada
www.mcewenmining.com
Compañía Minera Pangea

Blvd. Antonio Rosales 855 Altos 12
Col. Morelos, CP. 81460
Guamúchil, Sinaloa.
Tel. +52 (673) 734 1990
114 � 2019 SUSTAINABILITY REPORT

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2019

The Value of Our People COMPAÑÍA MINERA PANGEA � 1

2 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 1

2 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 3

The Value of Our People

4 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 5

This report follows the guidelines and standards contained in:

6 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 7

8 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 9

10 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 11

Alejandro Morales Miguel Barahona

12 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 13

Our main activities are

ORIGIN McEwen Mining Inc. is a registered com-

GOAL Our goal is to create a strong and profitable

STOCK McEwen Mining Inc. is listed on the New

Company Profile Sunrise at

14 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 15

McEwen Mining has a

Note: Minera Santa Cruz is a Joint Venture between

16 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 17

18 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 19

9% less than posits. We expect an average annual production of 47,000 equiv-

20 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 21

Our business is guided

VISION Ethics: We act honestly, reliably, and transparently as

Respectful Treatment: We create a harmoni-

Social Responsibility: We foster initiatives

Innovation: We value innovation in our daily pro-

22 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 23

Alejandro Morales Mora,

Adrián Blanco Sáenz,

24 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 25

Our business strategy is based in consideration of our employees’

Our sustainable Quality of life of our employees, TRAINING AND

Preservation of energy, water and

Our collaborators’ work has individual and team objectives, based on

26 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 27

ECONOMIC IMPACT: economic performance, anti-

SOCIAL IMPACT: employer-employee relationships, em-

GRI 102-11 PM-1 PM-2 ODS-3 ODS-5 ODS-7 ODS-8 ODS-12

GRI 103-2 GRI 103-3

28 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 29

• Messages from the Strategic Team.

In this evaluation of our operations’ material matters, we decid-

GRI 102-21 GRI 102-27 GRI 102-29 GRI 103-3

30 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 31

32 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 33

Oralia Veliz and

Transparency Ethics Line

GRI 102-29 GRI 102-29

34 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 35

Ensuring our partners’ • 

• WE PROTECT the information that we receive from

• WE FAVOR institutions that have received distinctions

36 � 2019 SUSTAINABILITY REPORT COMPAÑÍA MINERA PANGEA � 37

One of the most critical components of sustainability is economic development. Profit-

Economic We report the financial results of our operations based

Generated and aries, employee benefits, supplier payments, govern-

Ensuring our partners’ •

• WE PROTECT the information that we receive from

• WE FAVOR institutions that have received distinctions