BOA ESPERANCA

The “turn key” Boa Esperanҫa Project, 100% owned by MCSA, is located in the Carajás Mineral Province, host to some of the most significant Fe and Cu-Au deposits in Brazil^[1]. A Feasibility Study was recently completed with effective date of June 1, 2017. The project has the potential to add approximately 163 thousand tonnes of recovered copper over an initial mine life of 9 years, including stockpile reprocessing. June 2017 Feasibility Study^[2] highlights:

• Upfront Capital Costs of approximately R$600 million
• 19.5 million tonnes of ore mined at average LOM grade of 0.95% Cu
• C1 average cash cost of R$3.31 per pound of copper
• Post-tax NPV_8% of US$195 million
• Post-tax IRR of 32.7%
• Post-tax payback period of 3.6 years

LOCATION

The Boa Esperanҫa copper project is located within the municipality of Tucumã, southeastern Pará State, Brazil, approximately 40km southwest of the town of Tucumã.

Notes:

1. The existence of high-grade significant deposits elsewhere in the region provides no assurance regarding the size, extent, grade or value of any deposits or prospective deposits at the Boa Esperanҫa Project.
2. Please refer to the Boa Esperanҫa Technical Report with effective date of June 1, 2017 for additional information related to the Feasibility Study economic results.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

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MINERAL RESERVES & RESOURCES | BOA ESPERANҪA

Mineral Reserves Notes:

1. Effective Date of June 1, 2017.
2. Mineral Reserves included within stated Mineral Resources.
3. Open pit reserves assume full mine recovery.
4. Open pit reserves are diluted along lithological boundaries and assume selective mining unit of 2.5 m x 2.5 m x 5 m.
5. The strip ratio was calculated to be 1.93 (waste to ore).
6. Reserves are based on a price of US$7,000/t LME Cu throughout the life of the mine.
7. Reserves are based on a cut-off grade of 0.28% Cu.
8. Mineral Reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate. As a result of this rounding, the numbers may not add up.
9. Contained copper is reported as in-situ and does not include process recovery.
10. The Mineral Reserves estimate was calculated by Rubens Mendonça, BSc, MBA, Chartered Professional Member of the AusIMM, Mining Manager of SRK Consultores do Brasil, an independent qualified person, in accordance with the standards set out in CSA, NI 43-101 and generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines.

Mineral Resources Notes:

1. Effective Date of June 1, 2017.
2. Presented Mineral Resources inclusive of Mineral Reserves.
3. Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate. As a result of this rounding, the numbers may not add up.
4. Resources are stated at a cut-off grade of 0.2% Cu and are fully contained within an optimized pit shell.
5. Resources are based on a copper price of US$4.00/lb.
6. The Mineral Resources estimate was calculated by Rafael Russo Sposito, Senior Geologist of SRK Consultores do Brasil, supervised by SRK Principal Resource Geologist Carlos César Barbosa, an independent qualified person, in accordance with the standards set out in CSA, NI 43-101 and generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines.

Please refer to the Boa Esperança Technical Report, dated September 7, 2017, with an effective date of June 1, 2017 for additional technical information related to the Mineral Reserve and Mineral Resource estimates.