Discovery Announces the Submission of its Environmental Impact Assessment for its Cordero Project - Seite 2

The Company has demonstrated a proactive approach to date to its sustainability practices as demonstrated by the recent receipt of the prestigious Socially Responsible Enterprise (Empresa Socialmente Responsable) (ESR) distinction from the Mexican Centre for Philanthropy (Centro Mexicana para la Filantropía) (CEMEFI) and the Great Place to Work Certification, an internationally recognized program awarded to companies that create an outstanding employee experience. The Company looks forward to building on these efforts through expanded social programs during development and operations and to realizing the sustainable benefits that come with a sizeable work force of over 1,000 employees during the construction phase and long-term direct employment of 900 people when the phase two expansion is complete. It is anticipated that a large majority of employees will come from local communities in the Parral municipality given an already significant mining industry presence in the region and the existence of a mining-focused technical university located in the town of Parral.

The development and operation of Cordero will also create significant long-term business opportunities for local, regional and national service providers and suppliers at what will be one of the largest mining projects in Mexico. In total there will be an expected US$4 billion of goods and services purchased locally within Mexico over the life of the mine. This will provide the opportunity to expand supply chains for critical strategic minerals in Mexico with the potential for sizeable volumes of long-term base metals concentrate supplies for Mexican smelters. In addition, the Project is expected to contribute more than US$1.2 billion in direct mining taxes and royalties to the Mexican government. Combined, these benefits create a strong basis for government support of long-term investment for the responsible development of Cordero to the benefit of all stakeholders.

The Company is also committed to employing global best practice standards for the management of its environmental programs over the life of the project. A reflection of this commitment is the recent receipt of the Environmental Quality Certification issued by the Federal Attorneys for Environmental Protection (PROFEPA) in recognition of the Company’s compliance with the National Environmental Audit Program. For Project operations, tailings storage facilities have been designed in adherence with the Global Industry Standard on Tailings Management requirements. Responsible water use has also been a key area of focus with the use of treated wastewater from local municipalities currently under evaluation. This is expected to result in minimal reliance on groundwater sources. A detailed closure and reclamation plan designed by CIMA in conjunction with technical input from Ausenco, Knight Piésold Ltd. and WSP Global Inc. was also included with the submission.