PLANO DE OPERACIONES YAULI| YAULI OPERATIONS MAP

| Volcan Mine or its subsidiaries

| Mines of third parties
| Volcans prospect
| Concentrator plant
| Town

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COMPAIA MINERA S.A.A.

MINA SAN CRISTOBAL

SAN CRISTOBAL MINE

La produccin en la mina estuvo basada en la

explotacin de las vetas 722, 658, split 658 y cuerpo
658. A finales de ao se inici la preparacin
de accesos y subniveles, para realizar un piloto
de explotacin mediante taladros largos, en la
zona del nivel 1020, veta 658 y veta 722, lo cual
nos permitir reducir costos de preparacin
y explotacin. Se realiz un total de 18,460
m de perforacin diamantina. El avance en
exploraciones y desarrollos fue de 3,564 m el mejor
avance en este rubro en los ltimos cuatro aos.
En la profundizacin mina, destaca el crucero 810
en el nivel 820, que va a permitir unir la mina San
Cristbal y Toldorrumi. En preparaciones se tuvo
un avance de 14,216 m.

Mine production was mainly focused in the

exploitation of the 722, 658, Split 658 veins and the
Cuerpo 658. At the end of the year the preparation of
access and sub-levels was started in order to carry out
a production plan using longhole drills at the level
1020 on the 658 and 722 veins, which will allow us to
reduce costs relating to preparation and extraction.
A total of 18,460 m. of diamond-drilling was carried
out. The advance in exploration and development
was 3,564 m. which was the best advance for the last
four years. In the mine deepening, the most relevant
was the crosscut 810 at the level 820 that will link the
San Cristbal and Toldorrumi mines. There was an
advance of 14,216 in mine preparation.

En la zona de Chumpe se perfor 8,950 m de

perforacin diamantina para explorar las vetas 658,
Split 658, 722, Venus y Ramal Venus, junto con las
labores que realizaron al Este en los niveles 500 y
630. Los resultados han permitido estimar reservas
de 365 mil toneladas con 0.12% Cu, 0.80% Pb, 13%
Zn y 3.5 oz. Ag/t y recursos de 1.08m de toneladas
con 0.24% Cu, 0.96% Pb, 8.2% Zn y 5 oz. Ag/t. La
exploracin se hizo en una longitud de 400 m
obtenindose resultados positivos en 250 m, se
estima que ms al Este la mineralizacin debe estar
a mayor profundidad.

In the Chumpe area, 8,950 m of diamond-drilling was

completed to explore the 658, Split 658, 722, Venus
and Ramal Venus veins together with galleries which
were completed to the East on levels 500 and 630. This
resulted in proving up 365 thousand MT of reserves
with 0.12% Cu, 0.80% Pb, 13% Zn and 3.5 oz. Ag/
MT and, resources of 1.08 million MT with 0.24% Cu,
0.96% Pb, 8.2% Zn and 5 oz.Ag/ MT. The exploration
was carried out for a strike length of 400 m. obtaining
positive results for 250m. It is estimated that further
to the East the mineralization is at greater depth.

Para mejorar la ventilacin en la mina, se ejecut

645 m de chimeneas, en circuitos secundarios
y principales. As mismo se concluy con el
proyecto de ventilacin principal, instalndose dos
ventiladores de 300,000 cfm en el nivel 580 y dos
ventiladores de 400,000 cfm en el nivel 730. Con
el funcionamiento de los ventiladores principales
se logr cobertura al 100% en el balance global,
anterior a esto se tuvo cobertura de 85%.

To improve the mine ventilation, 645 m. of

development was completed on raises, in secondary
and primary circuits. Likewise, the main ventilation
project was completed with the installation of two
ventilation fans of 300,000 cfm on level 580 and two
ventilation fans of 400,000 cfm on level 730. With the
principal ventilation fans now working, 100% of the
global balance was covered. Prior to this the coverage
was 85%.

MINA CARAHUACRA

CARAHUACRA MINE

En el 2008 se realiz en avances de exploracin y

desarrollo 3,083 m, en preparaciones se tuvo un
avance de 7,244 m y se realiz un total de 4,300 m de
perforacin diamantina, lo cual permite consolidar
y continuar el incremento de la explotacin de la
mina para el ao 2009.

In 2008, 3,083 m. was completed in exploration and

development advances; in preparations the advance
was 7,244 m. A total amount of 4,300 m. of diamonddrilling was completed, which will permit us to
consolidate and to continue increasing exploitation
through 2009.

Durante el ao 2008 se prepar el cuerpo

Huaripampa en el nivel 1020, el cual entr en

During the year 2008 the Cuerpo Huaripampa was

prepared at the level 1020, and operations began

34

operacin a partir de octubre aportando un nivel

de produccin de 10,000 t/mes con ley de 6% zinc.

in October contributing 10,000 MT per month with

grades of 6% zinc.

As mismo, se introdujo el sostenimiento

mecanizado (shotcrete y pernos), que permiti el
incremento de produccin de la zona de Lidia. Se
instal un ventilador principal de 60,000 cfm para
dar circuito a labores del cuerpo 119 y veta Diana
en el nivel 730.

At the same time, mechanized support (shotcrete

and rockbolts) was introduced. This has resulted in
increased production from the Lidia zone. A main
ventilator fan of 60,000 cfm was installed to provide
circuits to workings on the Cuerpo 119 and the Diana
vein on the 730 level.

MINA ANDAYCHAGUA

ANDAYCHAGUA MINE

Durante el 2008 se not que el incremento de

aporte en el ltimo semestre fue en base a la
preparacin de nuevos pisos de explotacin. Los
avances en exploracin y desarrollo fueron de
2,130 m y en preparacin se tuvo un avance de
10,424 m.

During 2008 it was noted that the increase of

contribution in the last semester was based on
the preparation of new exploitation levels. The
exploration and development advances 2,130 m.
while the preparations made an advance of 10,424
m.

En el 2008 se realiz 4,484 m de perforacin

diamantina, para confirmar la continuacin en
profundidad de la veta Andaychagua, y cerca de la
superficie las vetas Esther y Puca Urco.

In 2008, 4,484 m.of diamond-drilling was completed

to confirm the continuation in depth of the
Andaychagua vein and, closer to surface, the Esther
and Puca Urco veins.

Se realiz 917 m de chimeneas, con los cuales se

complet el circuito de Extraccin Principal, desde
el nivel 1000 hasta el nivel 500 (superficie). Tambin
se termin el proyecto de ventilacin principal,
instalndose dos ventiladores extractores de
300,000 cfm, logrndose la cobertura al 100%
tenindose anteriormente solo cobertura de 76%.
Se instal un ventilador de 110,000 cfm mejorando
la ventilacin de labores que se minan por
chimenea12 y el extremo Este del nivel 800.

917 m. of raises were carried out, with which the Main

Extraction circuit was completed, from the level 1000
to 500 (surface). Also, the main ventilation project was
completed by installing two 300,000cfm ventilation
fans and attaining 100% coverage (previously the
coverage was 76%). A 110,000 cfm ventilation fan
was also installed to improve the ventilation of
workings at the extreme East of level 800.

MINA TICLIO

TICLIO MINE

La mina Ticlio paraliz sus operaciones en 1963

despus de 22 aos, por el escenario desfavorable
de la Post-guerra de Korea, donde dej mineral en
canchas, pilares y puentes que por ese entonces no
era rentable. En los ltimos aos con el aporte del
mineral producto de rehabilitacin de labores y
tajeos mineros, iniciado el ao 2006, hemos estado
tratando este mineral en las plantas concentradoras
de la Unidad Yauli, que aparece en esta Memoria
como mineral Ticlio.

After 22 years of production Ticlio mine suspended

operations in 1963 at the end of the Korean war
and when mineral was left in stockpiles, pillars and
remnants and was no longer payable. In recent
years with the support of mineral produced from
the rehabilitation of mine workings, started in 2006,
we have treated this mineral in the concentrator
plants of the Yauli mining unit which appears in this
Memoria as Ticlio mineral.

Los avances de perforacin diamantina fueron de

12,630 m lo que representa cinco veces ms que
hace dos aos (2006). Los avances en exploracin
y desarrollo fueron 606 m y en preparaciones el
avance fue de 7,292 m.

Diamond-drilling advances were 12,630 m, which

represents five times that completed two years ago
(2006). Exploration and development advances were
606 m. and preparations were 7,292 m.

| 35

COMPAIA MINERA S.A.A.

A fines de ao la profundizacin de la rampa 714

tiene prioridad para llegar al nivel 09, actualmente
se est desarrollando la veta Ramal Techo con
Taladros Largos, con una ley de 5.7 % de Zinc.

At the end of the year, the 714 ramp was being

advanced with priority to reach the 09 level. Currently
the Ramal Techo vein is being developed with
longholes, with a grade of 5.7% of Zinc.

Se encuentra en operacin la casa de compresora

de San Nicols desde noviembre, con una capacidad
instalada de 2,200 cfm y proporciona 103 psi de
presin, mejorando considerablemente la calidad
de instalacin de shotcrete. Se construy y puso en
funcionamiento la Planta de Tratamiento de Aguas
Mina de San Nicols a la vertiente del ro Rimac.

The San Nicols compressor room has been working

since November, with an installed capacity of
2,200 cfm. and provides 103 psi of pressure that
considerably improves the installation quality of
shotcrete. The water treatment plant at San Ncholas
was constructed and commissioned and discharges
into the Rimac river.

Se mejor la cobertura de ventilacin de 65 a 83%.

Para lo cual se ejecut 320 m de chimenea y 322
m de piloto para ventilacin principal de superficie
al nivel 5. Se instal 4 ventiladores de alta presin
(80,000 cfm, 60,000 cfm y dos de 30,000 cfm).

The ventilation circuit was improved from 65 to 83%.

320m of raises and 322 m of pilot-holes for principal
ventilation from level 5 to surface. Were installed four
ventilation fans (80,000 cfm, 60,000 cfm and two of
30,000 cfm).

MINA TOLDORRUMI

TOLDORRUMI MINE

A inicios del 2008 se continu con la preparacin

de la nueva mina Toldorrumi principalmente
hacia el cuerpo Roco y se perfor 3,544 m de
sondajes diamantinos. Se realizaron 731 m en
labores de exploracin y desarrollo, y en labores
de preparacin se realiz 1,327 m de avance. La
mina Toldorrumi lleg a aportar mineral con leyes
de 0.10% Pb, 4.48% Zn y 1.32 oz. Ag/t. Se instal
un ventilador de 60,000 cfm de alta presin para
extraccin de aire viciado.

At the beginning of 2008 the preparation of the new

Toldorrumi mine was continued mainly in the area
around Cuerpo Roco and, 3,544 m. of diamonddrilling was carried out. 731 m. of exploration
and development was carried out and, 1,327 m.
in preparation advance. The Toldorrumi mine
contributed mineral with grades of 0.10% Pb, 4.48%
Zn and 1.32 oz.Ag/MT. A ventilation fan of 60,000 cfm
was installed to extract foul air.

TAJO GAVILAN

GAVILAN PIT

Las operaciones en el Tajo Gaviln se dieron con

normalidad hasta el mes de marzo, luego ha
quedado momentneamente suspendida debido
a una reinterpretacin y reevaluacin. En lo que
rest del ao se ha venido tratando el mineral que
se encuentra como stock en las Plantas de Mahr
Tnel y Andaychagua. En el ao 2008 el tajo Gaviln
aport mineral con leyes de 0.45% Pb, 3.21% Zn y
3.27 oz.Ag/t.

The Gavilan Open Pit operations continued as normal

until March, then they were temporally suspended as
a consequence of a reassessment and reevaluation.
During the rest of the year, the mineral treated came
from stockpiles at the Mahr Tnel and Andaychagua
plants. In 2008 the Gaviln Pit contributed mineral
with grades of 0.45% Pb, 3.21% Zn and 3.27 oz.Ag/
MT.

36

UNIDAD MINERA CERRO DE PASCO

CERRO DE PASCO MINING UNIT

En la antigua y principal mina de Cerro, las labores

se desarrollan en dos modalidades: por mina
subterrnea y por tajo abierto. El mineral de ambas
operaciones es tratado simultneamente en la
planta Paragsha.

In the old and main Cerro mine work was carried out
in two different ways: by underground mining and by
open pit mining. The mineral from both operations is
treated simultaneously in the Paragsha plant.

EVOLUCION
DE PRODUCCION Y LEYES 2004-2008| PRODUCTION AND GRADES EVOLUTION 2004-2008
2004

2005

2006

2007

2008

1174,668

1050,557

1059,227

1151,596

1565,289

Mina subterrnea |

TMS/DMT

Underground Mine

Pb%

2.36

2.50

2.49

2.35

2.48

Zn%

9.28

9.00

7.10

5.90

5.58

Ag Oz/TM

3.57

3.98

5.04

4.73

3.93

TMS/DMT

1602,172

2113,340

2280,965

2393,175

2524,137

Pb%

1.73

1.33

1.40

2.12

1.76

Zn%

3.90

3.25

3.51

5.17

3.86

Ag Oz/TM

1.21

1.03

1.38

2.81

2.86

TMS/DMT

2776,840

3163,897

3340,192

3544,771

4089,426

Pb%

2.00

1.72

1.75

2.19

2.03

Zn%

6.18

5.16

4.65

5.41

4.52

Ag Oz/TM

2.21

2.01

2.54

3.43

3.31

Tajo Abierto |
Open Pit

Total Unidad Minera

| Total Mining Unit

EVOLUCION DE PRODUCCION DE CONCENTRADOS 2004-2008|

EVOLUTION OF CONCENTRATE PRODUCTION 2004-2008

2004

2005

2006

2007

2008

Total Cerro

Zn (TMS)

260,803

257,322

247,406

309,043

279,259

| Cerro

Pb (TMS)

79,604

82,562

85,350

112,527

113,964

Cu (TMS)
Ag Oz

113

3913,756

4367,276

5523,645

7677,528

7420,212

Estalactitas de sulfato de cobre, mina Cerro de Pasco | Copper sulfate Stalactites, Cerro de Pasco mine

| 37