Making a Difference in Our Communities —The Next Great Generation

Since the inception of Minera San Rafael (MSR), Tahoe Resources Inc.’s Guatemalan subsidiary, the company’s social responsibility framework has promoted sustainable development opportunities for its local communities and employees.

In the San Rafael las Flores municipality, home of the Escobal mine, only 25% of students attend middle school and less than 5% attend high school. These low enrollment rates are due to several factors, including the expense associated with receiving a quality education, which often involves attending private schools. “To combat low school enrollment rates, MSR awards educational scholarships to local students. We believe a quality education is a basic right and the foundation for long-term career opportunities,” said MSR Community Relations Manager, Javier Fortín. Scholarships are awarded based on former academic performance and financial need. In 2015, MSR awarded more than 245 scholarships to help pay for tuition, school supplies and uniforms. MSR’s financial assistance is paid directly to the school.

One scholarship recipient, Rony Rocael Zacarías Sandoval, a father and former tomato and chili pepper farmer from the Los Planes community in San Rafael las Flores, used MSR’s higher education support to improve his family’s situation. “I wanted to acquire a good job and knew that completing my high school degree would help attain that goal. Yet, I did not have the financial resources to do so, as money went toward food and other basic household needs,” said Rony. Accordingly, Rony applied for and received a year-long scholarship from MSR to

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First Quarter 2016

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Tahoe Supports GoGua 2k15

Learn how Nevada high school students helped reduce malnutrition in Guatemala.p2Tahoe’s Interns Bring New Ideas to Guatemala

Read about three college students’ internship experiences at the Escobal mine. p3Rio Alto Promotes Higher Education

See how Rio supports local youth through advanced education and training opportunities. p4

complete his degree at the Albert Einstein Technical Industrial Institute in the Mataquescuintla municipality of the Jalapa department. “I was determined to receive good grades in order to apply for a job at the Escobal mine,” said Rony. He attended school five days a week while supporting his family financially as a farmer part time.

As a result of Rony’s dedication, he graduated with honors with a technical degree in administration at the age of 22. Fifteen days after Rony graduated, he applied for and received a job at MSR. Rony currently operates Boltec machines to install netting on the ceiling of the underground Escobal mine to strengthen stope walls and protect workers from falling rock. “I really like my job; I have good friends as coworkers and I’m impressed with how much I have learned about the mining industry. I am so thankful for this opportunity,” said Rony.

The company is proud to have Rony as an MSR employee. MSR will continue to award scholarships to deserving students like Rony and provide economic opportunities to the local communities.

MSR’s Scholarships Help Guatemalans Land Jobs

La Arena demonstrates its compliance with applicable water quality standards through a participatory monitoring program with its local communities.

In 2015, Tahoe conducted in-person corporate governance trainings for all management-level employees to reinforce its high governance standards and expectations.

Last year, Tahoe donated $7,000 to support the GoGua 2k15 program which installed stoves, water filters and solar panels in the homes of 48 women and their families in one of Guatemala’s neediest villages, Santa María Cahabón. The GoGua 2k15 program is intended to help improve families’ well-being and reduce chronic malnutrition. This initiative originated from one high school student’s influential conversation with a Guatemalan peer and her desire to help.

Alexandra Sasse, a 17-year-old from Reno Nevada, visited Guatemala in the summer of 2014 to learn about MSR’s social initiatives in its local communities. The trip was planned by her mother, Tahoe’s VP of Corporate Affairs, to expose Alexandra to the way some children live in the world. Alexandra saw the progress made in San Rafael las Flores through MSR’s social development efforts, including the renovation of two-thirds of all schools in the municipality and an avocado program which teaches local farmers how to grow and sell Haas avocados. MSR’s partnership with a Guatemalan non-profit, Asociación Puente

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(AsoPuente), made the greatest impact on Alexandra. AsoPuente aims to reduce extreme poverty and prevent chronic childhood malnutrition in the most impoverished Guatemalan communities through the development of women’s skills.

Alexandra experienced AsoPuente’s positive work first-hand when she visited Santa Apolonia, an indigenous village outside of Guatemala City. In Santa Apolonia she toured the homes of female AsoPuente participants and learned how the organization educates women of reproductive age about proper hygiene practices, the importance of self-esteem, how to prevent chronic childhood malnutrition and how to build micro-businesses. In one home, Alexandra spoke with a 17-year-old AsoPuente mother who had struggled to raise her 2-year-old child because she lacked nutrient-rich foods and proper hygiene. That moment inspired Alexandra to support AsoPuente’s mission for the benefit of other Guatemalan women and their families. “Volunteering in a developing country like Guatemala alters your view of the world. I want more people to understand the conditions in which some people live so we can help create sustainable change. I was very excited to plan a volunteer trip to Guatemala with my high school peers to encourage participation and awareness in a new generation,” said Alexandra.

In the year that followed, Alexandra founded GoGua 2k15, a program designed for northern Nevada high school students to travel to a rural Guatemalan community and install equipment to improve the living conditions of AsoPuente participants and their families. To accomplish this goal, Alexandra recruited her younger sister, Olivia, and 13 high school students. They held 12 fundraising events from September 2014 to June 2015. Fundraising efforts included writing letters to local businesses, holding two garage sales, selling tote bags at a local market and hosting a Christmas recital with program participants performing a talent. The group raised $29,850—$17,000 more than the original goal. The majority of money raised went toward equipment which is designed to improve the welfare and health of AsoPuente participants and their families, including energy-efficient stoves that use less wood and diminish smoke inside homes, water filters that help to prevent waterborne diseases, rain collection systems and solar panels.

In June 2015, the GoGua 2k15 group comprised of 20 students and parent volunteers, traveled to Santa María Cahabón, a village with 78.8% of residents living in poverty and 51.1% classified as chronically malnourished, to install the home equipment. Due to the village’s weak

Tahoe Supports GoGua 2k15

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MSR grows vegetables and flowers at its on-site greenhouses to highlight its commitment to environmental stewardship.

The Shahuindo project seeks to improve local economic development through employment opportunities. Approximately 79% of employees are from the Cajamarca Region where the project is located.

Tahoe’s Interns Bring New Ideas to Guatemala

Tahoe is committed to working to high standards of environmental stewardship, workplace health and safety, and ethical business practices. To impart these ideals in the next mining generation, the Company offers internships for college students pursuing a degree in a mining-related field at MSR. Interns work for eight weeks during the summer—an opportunity that brings innovative ideas to the Company while providing students with valuable mining experience.

Marresa Bovee, a junior at the University of Nevada, Reno (UNR) and third generation mining engineer, found her passion for the mining industry while attending high school in the Upper Peninsula

of Michigan—an area rich with mining history. During a sophomore English course, her class examined the mining industry. “Mining had such a negative connotation for many of my peers that it made me think about the other perspective. So I asked questions and carefully analyzed the facts. My findings eventually led to an incredible passion for the mining industry and my decision to pursue a future in the field,” said Marresa. This also led her to Guatemala where she has interned for MSR the past two summers.

In summer 2015, Marresa interned for the Operations Department to optimize MSR’s haulage cycle. At the underground Escobal mine, blasted material is excavated with load-haul-dump (LHD) machines and loaded into trucks to be transported to the ore stockpile at surface. To analyze the efficiency of this process, Marresa tracked the times for each segment of the haul cycle: load, haul, dump and wait. She found that the wait time was too high and recommended the following strategies to improve the process: stagger truck deployment, implement a rotating driver process throughout lunch, fuel trucks

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“Through this internship, I applied the

technical skills that I learned at school in a

real world setting to solve a problem. This

opportunity was invaluable,” said Marresa.

before shifts and implement driver timesheets to further analyze the cycle. Marresa also worked with mining and geology software and reconciled surveyor calculations. “Through this internship, I applied the technical skills that I learned at school in a real world setting to solve a problem. This opportunity was invaluable,” said Marresa.

Sam Murphy, a junior Mining Engineer major at UNR, also interned at Escobal in summer 2015. Although mining wasn’t always Sam’s top career choice, he chose this path because he wanted an exciting and long-term career. “Honestly, in high school I wanted to be an actor. But when I spoke with a recruiter from UNR’s Mackay School of Earth and Sciences and Engineering, I realized I wanted to work for the mining industry and follow in my dad’s footsteps,” said Sam. This interest, and Tahoe’s scholarship, led him to intern at the Escobal mine.

Sam interned for the Ventilation Department to conduct an economic evaluation for automatic gas sensing technology for the underground Escobal mine. “Every time an explosive is detonated underground, employees are prohibited from working in the area until it’s free of toxic gases to ensure a healthy working environment. Currently, the company monitors the gases manually with sensors to evaluate the air quality. I worked to determine if it was economically feasible to place individual sensors throughout the mine in order to give us automatic air quality data,” said Sam. He also analyzed MSR’s underground dust suppression processes and proposed alternative solutions to the company’s sprinkler system, including chemical dust suppression, in order to retain workplace safety. “This internship has been great for my résumé, and I’m now even fluent in Spanish,” added Sam.

Luke Rader, a junior Metallurgical Engineering major at UNR, interned for MSR’s Metallurgy Department for the second time last summer. Luke analyzed the company’s concentrate dewatering processes and provided efficiency improvement recommendations. “The company’s final product, concentrate, is shipped to smelters located all over the world. It’s important to ship concentrate with low moisture content as shipping costs are based on weight. By simply changing a couple of our operating procedures, we could reduce excess water in concentrate and save on shipping costs,” said Luke. He added, “I really felt like I was doing what a metallurgist would do. I’m really grateful for this experience.” Luke plans on working for an international mining company in the future.

Tahoe is proud of its summer 2015 interns and looks forward to bringing more students and fresh ideas to the mine.

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Tahoe’s Peruvian subsidiary, Rio Alto, is committed to increasing human capital investments in the communities in which it operates. Accordingly, it supports education programs for students near the Shahuindo gold mining project and La Arena mine, increasing communities’ opportunities to achieve a higher level of education.

Shahuindo, in combination with the Peruvian education non-profit TECSUP, recently launched a program to support local high school students in improving their academic performance to qualify for

a national scholarship from the Peruvian Ministry of Education. The scholarship, BECA 18, provides financial assistance to students enrolled as undergraduates at a national university or technical college. The program is linked to the country’s social inclusion and education equity efforts and is designed to increase access to jobs and improve economic security. To qualify for the scholarship, Peruvian students must hold a high school degree, and demonstrate financial need and high academic achievement.

To help students qualify for this program, Shahuindo sponsors after school education programs at three local schools in the villages of Moyan Alto, Araqueda and Chuquibamba. Participants receive necessary school supplies, study materials and instruction that complement and reinforce lessons learned during the school day. The program’s first cohort is comprised of 90 students ages 16 to 20 who will complete 160 instruction hours over a three-month period in subjects such as mathematics, physics, chemistry and verbal reasoning. Students also gain insight from BECA 18 representatives to better understand the program’s requirements and application process.

Like Shahuindo, La Arena supports local youth through advanced education and training opportunities. Specifically, La Arena focuses on education in mining-related trades in order to promote careers at the company. With support from Peruvian technical training institutions—SENCICO, TECSUP, SENATI—La Arena trained more than 85 participants in 2015, a $49,600 investment. As a result, former participants now work for local and regional companies and nine participants work at La Arena in departments such as mine maintenance, exploration, operations, welding and cleaning. One former participant and La Arena employee, Lucinda Castillo de la Cruz, 22, works in the Electrical Maintenance Department. “I had a great educational experience at TECSUP and received invaluable support from my teachers. This program gave me a better understanding of my field which led me to work at La Arena. I want to thank the company for providing young people like me with career advancement opportunities,” said Lucinda.

With the determination of students like Lucinda, Rio Alto will continue to promote higher education in its local communities.

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Rio Alto Promotes Higher Education

social indicators, AsoPuente previously worked with 48 indigenous women from Santa María Cahabón to educate them on the program’s methodology and to help build micro-businesses, such as crafting and selling baskets, handbags, purses, bracelets and candles. AsoPuente ensures commitment from participants by requiring them to pay 10% of equipment costs with their micro-business income. Many save for the entire year to achieve that goal. In combination with GoGua 2k15’s funds, the group installed 23 stoves, 22 rain collection systems, 21 water filters and 26 solar panels. In addition to the installation of equipment in Santa María Cahabón, GoGua 2k15 raised enough funds to support the installation of 70 water filters in the homes of other AsoPuente participants in Chichicastenango, Quiché.

Alexandra and fellow GoGua 2k15 founding members built on their momentum and created a GoGua club at Reno High School—GoGua 2k16—which is in full fundraising mode to return to rural Guatemala. Tahoe is proud to have supported a program which helps to raise awareness around poverty issues in Guatemala in the next great generation.

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