Reserves & Resources

2015 Corani Reserve and Resource Estimates

Mineral Reserves
Contained Metal Equivalent Ounces
Category Ktonnes Silver
g/t
Lead
%
Zinc
%
Silver
Million oz
Lead
Million lb
Zinc
Million lb
Eq. Silver
M oz
Eq. Silver
g/t
Proven 19,855 69.1 1.09 0.72 44.1 478.7 313.4 82.5 129.2
Probable 117,843 48.6 0.88 0.57 184.3 2,289.2 1,470.7 366.5 96.8
Proven + Probable 137,698 51.6 0.91 0.59 228 2,768 1,784 449 101.4

Note: see regulatory footnotes below for calculation methods and assumptions used to estimate the Mineral Reserves presented above.

Mineral Resources in Addition to Reserves
Contained Metal
Category Ktonnes Silver
g/t
Lead
%
Zinc
%
Silver
Million oz
Lead
Million lb
Zinc
Million lb
Measured 14,360 32.01 0.34 0.19 14.8 108.4 61.6
Indicated 83,749 25.37 0.37 0.28 68.3 682.2 512.8
Measured & Indicated 98,109 26.34 0.37 0.17 83.1 790.6 574.4
Inferred 39,953 37.20 0.58 0.40 47.8 510.6 352.4

Note: see regulatory footnotes below for calculation methods and assumptions used to estimate the Mineral Resources presented above.

Note: See regulatory footnotes for calculation methods used for the reserve and resource and the silver equivalency calculation.

The 2015 Corani Feasibility Study re-calculated an estimate of Mineral Reserves and Mineral Resources contained within the Corani deposit based on the optimized mine plan and utilizing updated metal prices. No new drill data (beyond that which was used in the 2011 Corani Feasibility Study) were incorporated into the Mineral Reserve and Mineral Resource estimates above. As a result of the metal price updates and mine plan revisions included in the 2015 Corani Feasibility Study, primarily the elimination of 2 years' production of low-grade transitional materials (mixed oxide and sulfide), Proven and Probable silver reserves decreased 15.5% (from 279 Moz to 228 Moz) in comparison to the 2011 Corani Feasibility Study. As discussed above in "Optimized Mine Sequence and Improvements in Recoveries - Metallurgy and Recoveries" however, improvements in the recovery of silver offset the majority of this reduction in silver reserves, such that the payable silver was reduced only 5.6% from 160 Moz in the 2011 Corani Feasibility Study to 151 Moz in the 2015 Corani Feasibility Study

National Instrument 43-101 ("NI 43-101") Disclosure

Regulatory footnotes:

All of Bear Creek's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of Andrew Swarthout, P.Geo., President and CEO, a Qualified Person ("QP") as defined in NI 43-101.

The 2015 Corani Feasibility Study was prepared by a team of independent engineering consultants. Daniel Neff, PE, of M3 acted as the Independent QP as defined by NI 43-101 and additionally is the QP responsible for the market studies, infrastructure, process plant capital and operating costs, economic analysis, conclusions and recommendations portions of the study. Tom Shouldice, PEng, independent consultant, is the QP for the metal recoveries and metallurgical testing sections. Rick Moritz of GRE is the QP for portions of the metallurgical analysis. Terre Lane, MMSA, Principal Mining Engineer, of GRE is the QP for the resource and reserve estimation and mining methods and mine capital and operating cost portions of the study. Laurie Tahija, PE, of M3 is the QP for the plant process engineering portion of the study. Chris Chapman, PE of GRE is the QP for the geotechnical, environmental, infrastructure, waste stockpile and tailings designs were prepared by. Each of these individuals has read and approves the respective scientific and technical disclosure contained in this news release.

The methods used in determining and reporting the mineral reserves and resources presented herein are consistent with the CIM Best Practices Guidelines. Numbers may not total due to rounding.

  • Silver Price=$20.00/oz; Lead Price=$0.95/lb; Zinc Price=$1.00/lb.
  • Variable NSR cut-off values from $11/tonne to $23/tonne at different times in the production schedule to manage mill requirements and maximize project economics.
  • Metallurgical testing of the Corani ore started in 2005 and over 500 batch floatation tests were completed since. The previous interpretation of test results was a classification of recovery performance into 4 "metallurgical types" from 9 mineralization ore codes applying an average recovery to each metallurgical type. These groups exhibited a large variation in flotation recovery. Recent analysis of metallurgical test work indicates that recovery is strongly related to the presence and/or absence of oxide minerals. Using advanced statistical methods (including classification cluster analysis and nonparametric regression analysis), zinc grade, mineralogy from geologic logs, and elevation were identified as good indicators of oxidation and as a result, good predictors of recovery. These parameters were used to develop statistical numerical models to much more accurately predict recovery. Validation testing shows the new model projections of recovery closely fit all available metallurgical test work data.
  • The new recovery model was used for pit optimization, mine planning, and production scheduling. The overall result was approximately 8% increase in silver and zinc recovery and an 8% decrease in lead recovery from those cited in the 2011 Feasibility Study.

The Mineral Resource pit shell is a Whittle pit based on the following input assumptions:

  • Silver Price=$30.00/oz; Zinc Price=$1.45/lb; Lead Price=$1.50/lb;
  • Mixed oxide material that was not economic by flotation processing was not included in the Mineral Reserves, however, this material is included in the Mineral Resources.
  • The Mineral Resource cut-off was $9.49/tonne processing cost, plus $1.51 G&A cost which represents the internal process cut-off.
  • The potentially leachable mixed oxide material that fell within the Mineral Resource pit shell was included as a silver resource cut-off grade of 15g/tonne and block elevation above 4900 meters.
  • Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

All diamond drilling at Corani has been performed using HQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Bear Creek geologists. Sampling is done on two-meter intervals and samples are transported by Company staff to Juliaca, Peru for direct shipping to ALS Chemex, Laboratories in Lima, Peru. ALS Chemex is an ISO 9001:2000-registered laboratory and is preparing for ISO 17025 certification. Silver, lead, and zinc assays utilize a multi-acid digestion with atomic absorption ("ore-grade assay method"). The QC/QA program includes the insertion every 20th sample of known standards prepared by SGS Laboratories, Lima. A section in Bear Creek's website is dedicated to sampling, assay and quality control procedures.

Caution Regarding Forward Looking Information

This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to: (i) the amount of mineral reserves and mineral resources; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the proposed mining operation; (iv) capital costs, including start-up, sustaining capital and reclamation/closure costs; (v) operating costs, including credits from the sale of silver, lead and zinc; (vi) strip ratios and and mining rates; (vii) expected grades and payable ounces and pounds of metals and minerals; (viii) expected processing recoveries; (ix) expected time frames; (x) prices of metals and minerals; and (xi) mine life. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "envisages", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on the Company's or its consultants' current beliefs as well as various assumptions made by and information currently available to them. These assumptions include, without limitation: (i) the presence of and continuity of metals at the project at modeled grades; (ii) the capacities of various machinery and equipment; (iii) the availability of personnel, machinery and equipment at estimated prices; (iv) exchange rates; (v) metals and minerals sales prices; (vi) appropriate discount rates; (vii) tax rates and royalty rates applicable to the proposed mining operation; (viii) financing structure and costs; (ix) anticipated mining losses and dilution; (x) metals recovery rates, (xi) reasonable contingency requirements; and (xiii) receipt of regulatory approvals on acceptable terms. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rate of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation, risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals and minerals markets; risks relating to fluctuations in the Canadian dollar relative to other currencies; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to global market conditions and the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors, changes in project parameters as plans continue to be refined; risks relating timing and to receipt of regulatory approvals; adverse changes to government approval processes; the effects of competition in the markets in which the Company operates; operational and infrastructure risks; and the additional risks described in the Company's Annual Information Form, annual financial statements and management's discussion and analysis for the year ended December 31, 2014 and in the feasibility study entitled "Corani Project, Form 43-101F1 Technical Report, Feasibility Study" on December 22, 2011 on SEDAR (www.sedar.com) as well as in the 2015 Corani Feasibility Study Technical Report to be filed by the Company on SEDAR within 45 days following the date of this news release. The foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.