CONSOLIDATED EARNINGS

RELEASE

COMPAA MINERA MILPO S.A.A.

2016 SECOND QUARTER

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 This report analyzes the most important operating and financial results related to Compana Minera Milpo S.A.A. and
Subsidiaries, on the basis of accounting data included in the individual and Consolidated Financial Statements for the
Second Quarter 2016 ( "2Q16" ), according to International Financial Reporting Standards (IFRS).

Corporate Strategy Summary

During the 2Q16, Milpo continued implementing its five-pillar corporate strategy:

1. Mining Operations and Brownfields: At Cerro Lindo
studies and activities to increase the Units capacity to
20,000 tpd continue after stabilizing the Units treatment at
18,000 tpd. On the other hand, at El Porvenir and Atacocha,
their operational integration process continues with the
development of the third stage, focused on a new energy
transmission line (138Kv) for both processing plants.
2. Corporate office: The Human Development Program
continues and the feedback and development of personnel
plans stage began.
3. Copper projects: In the case of Magistral, the
feasibility study for a 10,000 tpd capacity was recently
approved by PROINVERSION and the Environmental Impact
Assessment (EIA) of the project is in its final approving phase
for a 30,000 tpd capacity. With regards to Pukaqaqa,
engineering studies continue for the execution of the
projects first stage at a 10,000 tpd capacity, thus taking into
consideration a smaller footprint and reducing the projects
development risk.
For Shalipayco, based on its prefeasibility study to operate
initially at a 3,000 tpd capacity, Milpo continues analyzing
the best alternative for the projects commissioning sooner,
creating synergies with the Pasco operations, including
possible tolling activities.
In the case of Bongar, the road construction continues and
will help reduce logistic costs.
5. M&A: During the 2Q16, a 75% stake in the Shalipayco
project was consolidated as part of the Group's strategy of
acquiring assets in base metals, with advanced exploration
and that could generate synergy with its operations (in this
case, the units of Pasco) .
Regarding the Private Initiative presented by Milpo in 2015
for the option to buy the Michiquillay Copper project located
in Cajamarca, Milpo is waiting for the definition of the next
steps related to this process.

4. Polymetallic projects: For Aripuan, Whorley

Parsons is still undertaking an engineering study for an
operation at a 5,000 tpd capacity.

1 1
 Selected Operational and Financial Data
2Q16 vs. 1S16 vs.
Unit 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Fine Metal in Concentrate Production
Zinc t 66,520 61,851 62,273 -1% 128,371 137,983 -7%
Copper t 10,344 10,558 9,723 9% 20,902 18,615 12%
Lead t 12,492 12,544 11,474 9% 25,036 23,419 7%
Silver Content oz 2,037,421 2,138,085 1,946,303 10% 4,175,507 3,781,907 10%
Cash Cost US$/t 32.4 32.6 33.6 -3% 32.5 33.8 -4%
Cash Cost Zn Eq. US$/t Zn eq 1,198 1,205 1,269 -5% 1,201 1,225 -2%
Revenues US$ MM 154.1 176.3 179.2 -2% 330.5 348.2 -5%
EBITDA US$ MM 54.6 66.0 68.7 -4% 120.6 125.0 -4%
Net Profit US$ MM 15.0 39.9 22.1 80% 54.9 40.2 36%
EBITDA Margin % 35% 37% 38% 36% 36%
CAPEX US$ MM 15.8 28.7 47.0 -39% 44.5 60.0 -26%
FCF US$ MM -5.9 9.8 26.4 -63% 3.9 20.5 -81%
Net Debt / EBITDA x times -0.42 -0.46 -0.37 -0.46 -0.37

1S16 - Highlights
US$ 330.5 million revenues and US$ 120.6 million
EBITDA during the 1S16, only 5% and 4% below those
figures obtained in the 1S15, despite lower metal prices
and due to the higher production of copper, lead and
silver during the semester.
36% EBITDA Margin during the 1S16 and 37% during the
2Q16.
Cash cost of US$/t 32.5 in the 1S16 (1,201 US$/t Zn eq),
4% below the cash cost obtained during the 1S15
mainly due to the increase in treated ore at Cerro Lindo
along with cost optimization initiatives in the Unit.
Cash balance above US$ 430 million at the end of June
2016, with a negative leverage ratio (Net debt/EBITDA)
of -0.46x.
Treated ore exceeded 5.4 million tons in the 1S16, 6%
above the amount obtained in 1S15, mainly due to
increased treatment capacity at the Cerro Lindo unit.
Higher lead content in concentrates production (+7%)
when compared to that of 1S15, associated with the
higher production at El Porvenir and Atacocha mainly
due to higher ore grades. Moreover there was higher
copper content in the concentrates production
compared to that of 1S15 and up by 12%, mainly due to
the higher treatment at Cerro Lindo.
Increased silver content by 10%, when compared to
that of the 1S15, reaching 4.2 million ounces in the
1S16, mainly due to the higher production of lead and
the higher grades at El Porvenir and Atacocha.

Consolidated Net income of US$ 54.9 million in 1S16

(US$ 39.9 million in 2Q16), 36% higher than that
obtained in the 1S15.

2 2
 I. GENERAL ASPECTS
MARKET CONTEXT
The 2Q16 market was followed by a scenario of
uncertainty, which holds inauspicious prospects for the
performance of the Chinese economy, and was added with
more volatility due to the referendum held in the United
Kingdom with respect to its permanency in the European
Union, better known as the Brexit effect.
Thus, the international price of zinc in the period did not
exceed the levels of 2015. However, since June this metal
has been showing an important recovery due to its market
fundamentals and the narrowness of its global inventories.
On the other hand, in the case of copper, Peruvian
production growth increased due to the startup of major
new projects such as Las Bambas and the decision to
expand the capacity of existing operations, particularly
Cerro Verde, which have had a strong influence on copper
pricing performance.
In the case of lead, average prices in the 2Q16 remained
lower than those recorded in the same period of 2015, in
line with other industrial metals (1,947 US$/t vs.1,719
US$/t). Although the lead concentrates supply has reduced
along with zinc mine cutbacks, demand for lead in
developed countries has stalled, for example, due to
increased recycled metal usage and lower demand from
electric bicycles in China.
As for precious metals, such as gold and silver, the scenario
of uncertainty caused by the Brexit effect and the decision
of the FED to postpone the increase in the referenced
interest rate, allowed a rise in the prices of those metals to
partially recover its "mineral shelter" characteristic.

Metal Prices

2Q16 vs. 1S16 vs.

Metal * Unit 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Zinc (US$ / t) 1,676 1,915 2,195 -12.7% 1,796 2,138 -16.0%
Copper (US$ / t) 4,669 4,730 6,054 -21.9% 4,699 5,934 -20.8%
Lead (US$ / t) 1,742 1,719 1,947 -11.7% 1,731 1,876 -7.8%
Silver (US$ / oz) 14.8 16.8 16.4 2.3% 15.8 16.6 -4.6%
* Average LME (London Metal Exchange) prices - Settlement price

MACROECONOMIC FACTORS
Exchange Rate Inflation

The average exchange rate during 1S16 was S/. 3.38 per US$
while in the similar period of 2015, it was S/. 3.09, which
represented a 9% depreciation of the Nuevo Sol (Source:
BCRP).
Note that the Company maintains a low exposure to
exchange rates fluctuation since its functional currency is the
US$ Dollar. Additionally, much of its production costs and
revenues are denominated in that currency, maintaining a
proper fit of the currencies in the balance sheet, income
statement and cash flow.
The annualized inflation during 1S16 was 3.34%, lower than
that obtained in the same 2015 period where it reached
3.54% (Source: BCRP)
Oil
At the end of June 2016, Brent oil price was at 47.1
US$/barrel, slightly higher than the 36.0 US$/barrel price
recorded at the end of 2015. (Source: Thomson Reuters).

3 3
 II. FINANCIAL PERFORMANCE
Income Statement
2Q16 vs.
US$ Million 1Q16 2Q16 2Q15 1S16 1S15 1S16 vs. 1S15
2Q15
Revenues 154.1 176.3 179.2 -2% 330.5 348.2 -5%
Cost of Sales (90.7) (90.9) (93.0) -2% (181.6) (183.8) -1%
Depreciation (18.4) (18.1) (21.3) -15% (36.5) (44.4) -18%
Gross Profit 45.0 67.4 64.9 4% 112.4 120.0 -6%
Amortization (0.8) (0.8) (2.2) -62% (1.6) (4.4) -63%
Selling Expenses (5.2) (5.0) (5.1) -3% (10.1) (13.1) -23%
Administrative Expenses (6.9) (5.8) (6.4) -10% (12.7) (13.0) -2%
Other Operating Results, net 3.3 (8.7) (5.9) 47% (5.4) (13.2) -59%
Operational Profit 35.4 47.1 45.3 4% 82.5 76.2 8%
Financial Expenses, net (5.3) (4.4) (4.3) 2% (9.7) (8.5) 14%
Income Tax 1 (15.1) (2.8) (18.9) -85% (17.9) (27.5) -35%
Net Profit 15.0 39.9 22.1 80% 54.9 40.2 36%

EBITDA 54.6 66.0 68.7 -4% 120.6 125.0 -4%

EBITDA Margin (%) 35% 37% 38% 36% 36%

REVENUES
Revenues in 1S16 were US$ 330.5 million, 5% lower than
those of the same 2015 period, which is mainly explained
by a negative price effect of US$ 20 million partially
compensated by a positive volume effect associated to the
higher production of lead, copper and silver, and a higher
payable value of the concentrates (mainly due to the
higher content of silver and gold). It is worth mentioning
that during the 2Q16, revenues were US$ 176.3 million,
14% higher compared to those of 1Q16, mainly due to the
recovery of price metals and the higher volume produced.
which allowed the partial offsetting of the lower prices and
zinc produced.
It is worth mentioning that the main customers for Milpos
zinc concentrates are Votorantim Metais Cajamarquilla
S.A. and internationally renowned traders which export to
major refineries in the world, such as Glencore and
Trafigura. As for the production of copper and lead, the
main customers are Glencore, Trafigura, Transamine and
Louis Dreyfus.

During 1S16, the level of fine tonnes sold of lead and
copper increased by 6% and 12%, respectively, compared
to those sold in 1S15 due to the higher production of lead
at El Porvenir and Atacocha and copper at Cerro Lindo,
Like other transactions with related parties, the sale of zinc
concentrates to the zinc refinery of Cajamarquilla is
negotiated under market conditions, which are all subject
to evaluation through a transfer prices study regularly
commissioned to external professionals.

4 4
 Revenues Distribution

Revenues by Mining Unit Revenues by Metal

Gold
Atacocha 4% Silver
13% 17%
Zinc
El Porvenir 44% Lead
22% Cerro 10%
Lindo
65% Copper
25%

Consolidated Sales by Metal (fmt)

2Q16 vs. 1S16 vs.
Metal Unit 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Zinc fmt 67,034 60,867 63,268 -4% 127,901 138,967 -8%
Copper fmt 10,260 10,508 9,760 8% 20,768 18,607 12%
Lead fmt 12,616 12,135 11,574 5% 24,751 23,375 6%
Total Milpo fmt 89,910 83,509 84,602 -1% 173,419 180,949 -4%

OPERATING COSTS
In spite of the higher treated ore during the semester, the
cost of sales was 1% lower than that of the same period of
2015, mainly due to cost optimization initiatives in the three
mining units and the higher treated volume in Cerro Lindo.
Thus, the result was a lower cash cost of 4% compared to
that of 1S15 (US$/t 32.5 vs. US$/t 33.8).
It is worth mentioning the downward trend in the cash cost
evolution, which has been showing a constant reduction
since the end of 2015 due to the benefits of the operational
integration between the Pasco Units and the increased
treatment capacity of Cerro Lindo, which allows the
Company to address the current price environment.

OPERATING EXPENSES
In terms of operating expenses, during 2016 a significant optimization cost plan at the corporate office and the
decrease with respect to 2015 was observed, due to strategy to reach for a more efficient and reduced staff
activities focused on their optimization. organization

As for sales expenses, a 23% reduction with respect to those
of 1S15 was obtained, due to lower transport and storage
costs.
As for the administrative expenses, a 2% reduction with
respect to those of 1S15 was obtained, as the result of the
Also, the expenses related to Greenfields and Prospects
projects were optimized, giving priority to those with more
maturity, which allowed a 59% decrease in Other Expenses
in the 1S16, compared to those of the same period of 2015.

5 5
 PERFORMANCE
As a result of the described operational performance and
costs control, the EBITDA generated during the 2Q16 was
US$ 66 million, similar to that generated in the 2Q15 period,
despite lower prices (negative price effect of US$ 7 million in
the quarter), and 21% above that of the 1Q16.
Also, during the 1S16 an EBITDA of US$ 120.6 million was
reached, 4% lower when compared to that of the same
period of 2015 given the negative price effect of US$ 20
million already mentioned. However, it is worth mentioning
that the EBITDA margin remained at similar levels to those of
June 2015 (36%).
In terms of consolidated net income, it reached US$ 54.9
million in the 1S16, an increase of 36% over the same period
last year. The similar level of EBITDA along with lower
deferred income tax (given the increase in deferred tax
assets of the Group associated with the anticipation of
further recoveries of temporary tax differences in the future)
explains this result.

INVESTMENTS
Regarding Capex, investments in sustaining projects and
others was US$ 28.1 million in the 1S16, which
corresponded mainly to the tailings dam elevation at El
Porvenir, investments related to the new transmission line
for the Pasco Units and the deepening of the shaft at El
Porvenir, all related to the operational integration process
that began in 2014 and continues in 2016 as planned.
Additionally, the sustaining Capex included the acquisition of
new equipment for loading and hauling inside the mine for
all operating units; and the modernization of the
desalination plant infrastructure in Cerro Lindo.
Additionally, within the framework of its strategy to acquire
assets in base metals, with advanced exploration and that
could generate synergy with its operations (in this case
Pasco Units), Milpo consolidated a 75% share in the
Shalipayco zinc project.

Capex
2Q16 vs. 1S16 vs.
US$ (million) 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Expansion* 1.2 15.2 35.9 -58% 16.4 36.3 -55%
Sustaining and Others 14.6 13.5 11.1 21% 28.1 23.7 18%
Total Milpo 15.8 28.7 47.0 -39% 44.5 60.0 -26%
(*) Incl udes acqui s i ti on of Shal i payco

Capex distribution Capex

60
-26%

44
Expansion
37%

Sustaining and
63%
others

1S15 1S16

6 6
 LIQUIDITY AND INDEBTEDNESS
During 1S16, the company generated a free cash flow of US$
4 million acumulating a cash balance of US$ 432.3 million at
the end of June 2016.
It is worth mentioning that the investment in working capital
during the 1S16 is a result of the increase in metal prices,
1S16 Free Cash Flow Generation
At the end of the first half of 2016, the level of Net Cash was
positive and totaled US$ 85.5 million maintaining a solid
financial position to deal with the current position.
In terms of leverage, the ratio net debt / EBITDA remained
negative at -0.46x as of June 2016 (-0.50x at the end of
December 2015), and the average maturity term of the
financial debt is 6.8 years, having no relevant debt maturity
in the short term.
As for credit ratings, on March 31, 2016, Fitch Ratings
downgraded the credit rating granted to Milpo from BBB to
BBB-, with a negative outlook. On the other hand, on
February 19, 2016, Standard & Poor's changed MILPOs
credit rating from BB+ to BB with a stable outlook. In both
7 7
mainly zinc, in relation to December 2015, thereby raising
the amount of accounts receivable, effect that will be offset
during the year.
cases, changes in rating were the result of the Votorantim
downgrade, also due to Brazils sovereign debt ratings
reduction.
However, in both cases, the aforementioned risk rating
agencies mentioned the robust financial and liquidity
position of Milpo, which allow the Company to develop its
future plans and address adequately the environment of
volatile metal prices.
Finally, as part of the shares repurchase program, approved
by the General Meeting of Shareholders on July 23, 2015, at
the end of June 2016, the Company acquired 15'406,048
shares for an amount of US $ 8 million.
 Liquidity and Indebtedness Position

Net Debt/EBITDA (US$ million)

2Q15 3Q15 4Q15 1Q16 2Q16
December
US$ million June 2016 -20.0 2.30
2015
-70.0 1.30
Total Cash 432.3 440.2 -88.1
-120.0 -87.6 -78.9 -85.5 0.30
Financial Debt 346.8 352.1 -119.6
-170.0 -0.70
-0.37 x -0.59 x -0.50 x -0.42 x -0.46 x

Financial Debt

Financial Sources Debt Maturity

1% 2%

99% 98%
Bonds LT Debt
Financial Leases LT Debt (Current Portion)

Milpo's financial debt mainly consists of the issued corporate On the other hand, financial leases, which only represent 2%
bonds, which represent 99% of total debt and have a 2023 of the debt, are related to the acquisition of machinery and
maturity. equipment, with a July 2017 maturity.

III. BUSINESS AND OPERATIONAL PERFORMANCE

CERRO LINDO UNIT

Production by Metal and Cash Cost
2Q16 vs. 1S16 vs.
Metal Unit 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Fine Metal in Concentrate Production
Zinc t 43,980 39,931 40,084 0% 83,911 90,863 -8%
Copper t 10,093 10,359 9,210 12% 20,452 17,577 16%
Lead t 3,901 3,440 4,038 -15% 7,341 8,297 -12%
Silver Content oz 814,616 900,444 906,117 -1% 1,715,061 1,703,833 1%
Cash Cost US$/t 27.1 27.5 28.4 -3% 27.3 29.4 -7%
Revenues US$ MM 102.3 112.2 121.1 -7% 214.4 235.2 -9%
EBITDA US$ MM 47.7 53.9 66.4 -19% 101.6 123.0 -17%
EBITDA Margin % 47% 48% 55% 47% 52%

8 8
 During the 2Q16 and 1S16, copper production increased by
12% and 16%, respectively, over the same period of 2015,
due to the greater treated ore and the higher ore grades.
These results helped offset the lower production of zinc and
lead.
On the other hand, the volume of treated ore increased by
8% and 9% compared to that of 2Q15 and 1S15, respectively,
which allowed for diminishing cash costs through economies
of scale achieved by the largest treatment capacity.
This has resulted in a reduction in the average cash cost of
3% compared to that of 2Q15 (US$/t 27.5 vs. US$/t 28.4)
and 7% compared to that 1S15 (US$/t 27.3 vs. US$/t 29.4).
With regard to the exploration activities performed at Cerro
Lindo, continuing with those accomplished in 2015, during
1S16 around 39,500 meters of diamond drilling was
executed, focused on explorations to identify new bodies on
the surface, re-categorization and validation of resources,
geomechanics and services.

PASCO MINING COMPLEX

El Porvenir Unit
Production by Metal and Cash Cost
2Q16 vs. 1S16 vs.
Metal Unit 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Fine Metal in Concentrate Production
Zinc t 15,794 16,273 14,870 9% 32,067 30,472 5%
Copper t 182 155 351 -56% 337 674 -50%
Lead t 4,284 4,767 3,965 20% 9,051 7,519 20%
Silver Content oz 681,442 736,135 642,566 15% 1,417,577 1,203,452 18%
Cash Cost US$/t 39.3 41.0 40.7 1% 40.2 39.5 2%
Revenues US$ MM 31.6 39.9 35.1 14% 71.5 64.4 11%
EBITDA US$ MM 8.8 15.3 9.9 55% 24.1 16.0 51%
EBITDA Margin % 28% 38% 28% 34% 25%

At El Porvenir Mining Unit, the fine metal content in
concentrates production increased by 10% and 7%
compared to that of the 2Q15 and 1S15, respectively, due to
the higher production of zinc and lead due to the higher
treated ore and the higher ore grades.
Regarding strategic exploration activities at El Porvenir,
continuing with those carried out in 2015, during the 1S16
the unit performed around 37,700 meters of diamond
drilling to re-categorize resources and explore new
mineralized ore bodies.

In terms of the cash cost, it remained in line compared to

that of 1S15 (US$/t 40.2 vs. US$/t 39.5).

Atacocha Unit
Production by Metal and Cash Cost
2Q16 vs. 1S16 vs.
Metal Unit 1Q16 2Q16 2Q15 1S16 1S15
2Q15 1S15
Fine Metal in Concentrate Production
Zinc t 6,746 5,647 7,320 -23% 12,393 16,648 -26%
Copper t 69 44 163 -73% 113 364 -69%
Lead t 4,308 4,337 3,471 25% 8,645 7,602 14%
Silver Content oz 541,363 501,506 397,620 26% 1,042,869 874,622 19%
Gold Content oz 2,158 3,625 1,486 144% 5,783 3,516 64%
Cash Cost US$ / t 48.4 46.3 47.3 -2% 47.4 44.9 6%
Revenues US$ MM 20.3 24.3 20.8 17% 44.6 44.2 1%
EBITDA US$ MM -0.6 5.5 1.4 304% 4.9 5.2 -5%
EBITDA Margin % -3% 23% 7% 11% 12%

9 9
 During 1S16, the implementation of the small open pit San
Gerardo continued, which allowed access to mineral with
higher content of lead-silver and lower mining costs.
Therefore, during the semester an increase in the
production volume of lead and silver content of 14% and
19% was obtained, respectively, compared to that of the
same period of 2015. These results helped offset the lower
zinc production.
It is worth mentioning, that while the 1S16 fine metal
production was lower than that of 1S15, the volume effect
was positive due to the higher lead value when compared to
that of the other metals due to the silver content in the
concentrate and the gold content, which showed a 64%
increase during the semester, which made more valuable
the lead concentrate in the unit.
10
In terms of cash cost, an increase of 6% with respect to the
1S15 (US$/t 47.4 vs US$/t 44.9) was obtained. However,
during the 2Q16 a reduction of 2% was achieved compared
to that of 2Q15 (US$/t 46.3 vs US$/t 47.3) and of 4%
compared to that of 1Q16 (US$/t 48.4) confirming a trend of
lower costs during the last months.
The 2Q16 results already show the effects of rescheduling
the operations in 2015 with access to the open pit San
Gerardo showing better results in production and cost when
compared to that of 1Q16.
In relation to exploration activities, during 1S16, 38,200
meters of diamond drilling were executed to improve the
surface knowledge of geological and intermediate site zones,
in the lateral extension of intermediate and depth areas of
mineralized bodies, as well as to increase inventory levels of
reserves and resources.
10
 About Milpo
Compaa Minera Milpo S.A.A. (Milpo) is a Peruvian mining company dedicated to the exploration, extraction, processing and
marketing of zinc, copper and lead concentrates, with silver and gold content; it is currently one of the main polymetallic
producers in Peru. Milpo develops its operations with a clear social responsibility and environmental commitment.

Since 2010, Milpo is part of Votorantim Metais Holding (VMH), the metal and mining company of the Votorantim Group, a
strong global industrial diversified conglomerate that has over 90 years of history and a presence in key sectors of the economy,
in more than 20 countries.

Currently, Milpo maintains three polymetallic underground mining units in operation, Cerro Lindo (Ica), El Porvenir (Pasco) and
Atacocha (Pasco). It also has a portfolio of copper and polymetallic Greenfield projects with advanced exploration.

For further information:

Visit our website at: www.milpo.com or ri.milpo.com or contact: investorrelations@milpo.com

11 11
 2Q16 Global Conference Call
2Q16 Results Global Conference Call will be held on Wednesday, August 11, 2016 at 9 a.m. (Lima) / 10 a.m. (New York) / 3
p.m. (London).

To access the call, please dial:

Participants calling from USA : +1 (844) 846-8982

International Participants : +1 (412) 317-5463
Conference ID Code : Minera Milpo

The Global Conference Call will be broadcast live on our Investor Relations website (ir.milpo.com). A slideshow will also be
available on the same website.

If for some reason you cant access the website, please use the following address:
http://webcast.neo1.net/Cover.aspx?PlatformId=TApJ7pfCGNPoB77EK2zS7g%3D%3D

To access the replay of the 2Q16 Global Conference Call audio, please dial:
Participants calling from USA : +1 (877) 344-7529
International Participants : +1 (412) 317-0088
Passcode : 10090693

12 12
 EXHIBIT I: COMPAIA MINERA MILPO S.A.A. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six-month period

ended June 30,
2016 2015
US$ 000 US$ 000
Unaudited Unaudited

Revenue 330,467 348,171

Cost of Sales (218,117) (228,207)
Gross Profit 112,350 119,964

Selling expenses (10,142) (13,141)

Administrative expenses (12,666) (12,968)
Other Income (expenses),net (7,044) (17,611)
Operating Profit 82,498 76,244

Finance income 2,119 1,478

Finance expenses (9,565) (9,854)
Exchange differences, net (2,259) -113
Profit before income tax 72,793 67,755

Income tax (17,930) (27,549)

Profit for the period 54,863 40,206

Profit Attributable to:

Owners of the Company 55,523 41,613
Non-controlling interest (660) (1,407)
54,836 40,206

13 13
 EXHIBIT II: COMPAIA MINERA MILPO S.A.A. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

ASSETS At June 30, At December 31, LIABILITIES AND EQUITY At June 30, At December 31,
2016 2015 2016 2015
US$ 000 US$ 000 US$ 000 US$ 000
Unaudited Audited Unaudited Audited

CURRENT ASSETS CURRENT LIABILITIES

Cash and cash equivalents 432,289 440,204 Borrowings 5,828 7,622
Trade and other receivables 116,869 93,434 Trade payables 111,743 126,561
Derivative financial instruments - 4,821 Derivative financial Instruments 1497 -
Inventories 48,356 50,791 Income and mining taxes 2,396 1,719
Other non-financial assets 8,833 10,129 Other provisions 18,141 18,558
Total current assets 606,347 599,379 Other payables 20,058 17,745
Total current liabilities 159,663 172,205

NON-CURRENT ASSETS
Other receivables 3,544 3,544 NON CURRENT LIABILITIES
Deferred income tax 17,658 16,688 Borrowings 340,923 344,478
Investments 18,018 58,018 Deferred income tax 365 1,878
Property, plant and equipment 408,389 418,722 Other provisions 103,876 99,749
Intangible assets 232,008 174,288 Total non-current liabilities 445,164 446,105
Total non-current assets 679,617 671,260
TOTAL LIABILITIES 604,827 618,310

EQUITY
Capital 423,830 423,830
Treasury shares (4,600) (4,543)
Investment shares 4,551 4,551
Other capital reserves 86,022 79,347
Other equity reserves (1,197) 4,769
Retained earnings 153,566 122,249
Total equity attributable to owners of the Company 662,172 630,203
Non-controlling interest 18,965 22,126
TOTAL EQUITY 681,137 652,329

TOTAL ASSETS 1,285,964 1,270,639 TOTAL LIABILITIES AND EQUITY 1,285,964 1,270,639

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 EXHIBIT III: COMPAIA MINERA MILPO S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED CASH FLOW

For the six-month period

ended June 30,
2016 2015
US$ 000 US$ 000
Unaudited Unaudited

OPERATING ACTIVITIES
Collections from inventory sale 356,014 431,552
Payments to suppliers of goods and services (221,512) (228,649)
Payment and on behalf of employees (33,506) (41,190)
Income tax paid (13,316) (27,245)
Other taxes paid (23,068) (32,036)
Recovery of taxes - 1,938
Other 1,018 2,909
Net cash generated from operating activities 65,630 107,279

INVESTING ACTIVITIES
Selling of property, plant and equipment - 114
Purchase of property, plant and equipment and investments (26,989) (57,595)
Purchase of intagible assets (17,029) -
Net cash used in investing activities (44,018) (57,481)

FINANCING ACTIVITIES
Payment of borrowings (5,307) (3,345)
Interests paid of borrowings (8,041) (8,228)
Payment of dividends (16,750) (27,137)
Net cash used in financing activities (30,098) (38,710)
Net (decrease) increase in cash and cash equivalents (8,486) 11,088
Cash and cash equivalents of cash at the beginning of the period 440,204 436,693
Exchange difference on cash and cash equivalents 571 (1,511)
Cash and equivalents of cash at the final of the period 432,289 446,270

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