SUSTAINABILITY REPORT 2010 TRANSPARENCY INTEGRITY ACCOUNTABILITY

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1 SUSTAINABILITY REPORT 2010 TRANSPARENCY INTEGRITY ACCOUNTABILITY

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3 TRANSPARENCY INTEGRITY ACCOUNTABILITY We are committed to embedding corporate responsibility into our daily activities and to holding ourselves to the highest standards of TRANSPARENCY, INTEGRITY and ACCOUNTABILITY. Our goal is to continuously improve workplace health and safety, as well as our environmental performance, and to share the benefits of mining with our local communities. 01 Sustainability Report 2010

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5 TRANSPARENCY INTEGRITY ACCOUNTABILITY Our People Our Future We are proud of our 100% national workforce at San Dimas, proof of our commitment to hiring locally. Our workforce is young with 40% of our employees under the age of 30 representing both the present and the future of our organization. In 2010, San Dimas maintained a full-time workforce of 1088, including contractors. The workforce is comprised of 586 employees and labor union workers, and 502 contractors carrying out surface as well as underground activities. Pioneering gender equality, the Miner Women project at San Dimas aims to employ more female workers in all areas of the operation. Of the eighty-one women employed at the mine, nine are engaged in underground activities. National Workforce Supporting Diversity Durango 78% Sinaloa 9% Zacatecas 4% Guanajuato 2% Other 7% Other 575 Youth 432 Female Sustainability Report 2010

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7 We are proud of our 100% national workforce at San Dimas, proof of our commitment to hiring locally.

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9 TRANSPARENCY INTEGRITY ACCOUNTABILITY Health & Safety Safety is more than a policy at Primero; it is core to our culture. In 2010, there were seven lost time accidents at Sim Dimas - a remarkably low ratio to the over two million man hours of exposure that year. 1.6 million hours with no lost time injuries Over 6,000 safety talks were delivered In September 2010 San Dimas was a finalist in the Mexican Mining Chamber s National Mine Safety Contest All Incidents Primero is committed to delivering an illness-free & injury-free workplace. Best Practices San Dimas achieved another outstanding safety performance in 2010, reducing the all-accident injury index for the fifth consecutive year. Monthly Campaigns Safety System Government Compliance Our safety program focusses on 4 key areas 1. Best Practices in underground mining 2. Training 3. Government Compliance Behaviour Training 4. Monthly Campaigns 07 Sustainability Report 2010

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11 TRANSPARENCY INTEGRITY ACCOUNTABILITY San Dimas s emergency response teams achieved first place in the First Aid and self-contained breathing machine tests at the 2010 National Mining Rescue Contest organized by the Mexican mining chamber. EMERGENCY PREPAREDNESS Specialized safety courses conducted on-site focus on required job skills, safety and emergency response. Primero has trained and qualified emergency response personnel in case of accidents who are well equipped to deal with emergencies in both surface and underground situations. The team works closely with the government authorities to provide assistance to local communities when needed. OCCUPATIONAL HEALTH & WELLNESS The occupational health of workers is monitored through preventive programs and regular medical examinations. In 2010, a variety of responsive treatments were offered - from vaccinations against influenza, tetanus and HPV, to advice on nutrition and family planning. 09 Sustainability Report 2010

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13 TRANSPARENCY INTEGRITY ACCOUNTABILITY Our Environment Primero strives to be a responsible steward of the environment and to continually reduce our overall environmental footprint. To achieve this, we remain focused on minimizing the environmental impact of our operations and to progressively rehabilitating areas impacted by our mining activities. 4 Certified Clean Industry by the Procuraduria Federal de Proteccion al Ambiente (Mexican EPA) 4 Bioremediation work carried out on 300 tons of soil 4 62% of the water supply used in the processing plant recirculates into the system 11 Sustainability Report 2010

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15 TRANSPARENCY INTEGRITY ACCOUNTABILITY MATERIAL AND WASTE MANAGEMENT In 2010 expenditures at the mine focused on capital improvement programs which included a new state of the art dry tailings plant. Approximately $1.5 million was spent installing a third tailings filter. The full project, which is expected to million, was 65% complete at December 31, Waste rock impoundment engineering work was completed in WATER MANAGEMENT Water for the mining operations is obtained from wells and from the Piaxtla River. Water is also supplied to the town of Tayoltita from an underground thermal spring at the Santa Rita mine. Water is recycled several times at the operations, with 62% of the water used in the processing plant recirculated into the system. RESCUE THE PIAXTLA RIVER CLEAN-UP CAMPAIGN San Dimas holds annual clean-up campaigns along the Piaxtla River and within the Tayoltita community to coincide with global milestones such as World Earth Day and World Environment Day, held on April 22 and June 5, respectively. RENEWABLE ENERGY In December 2010, Las Truchas Hydroelectric Plant, owned and managed by Primero, was connected to the Federal Power Commission s supply system. This 34 kva power line from Las Truchas Dam, 42 km north of the San Dimas Mine, has expanded the available power from 1.4 MW to 7.0 MW and reduced power costs from 11 cents/kwj to 1.5 cents/kwh. 13 Sustainability Report 2010

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17 TRANSPARENCY INTEGRITY ACCOUNTABILITY Community We actively engage with our local communities in order to understand and contribute to their economic, social and development priorities. Primero supports innovative community initiatives at San Dimas, generating new jobs, incomes, technical skills and local capacity. Primero partnered with the Ministry of Social Development (SEDESOL) to launch a child daycare program. 227 local students at San Dimas attending school as a result of Primero scholarships 40 women received skills development training on handicraft production in partnership with the Ministry of Environment and Natural Resources (SEMARNAT) PROMOTING EDUCATION The Company supports various educational institutions attended by employees and their children. The Company has partnered with the Municipality of San Dimas, to support the Duranguense Institute in Adult Education (IDEA) provide better education to the community of Tayoltita. In collaboration with the National Association of Professional Technical Education (CONALEP), Primero provides training programs to update employees skills. In 2010 the company sponsored 47 high-school graduates interested in pursuing a career in mining. 15 Sustainability Report 2010

18 TRANSPARENCY INTEGRITY ACCOUNTABILITY ENCOURAGING YOUTH The Center for Juvenile Integration at San Dimas provides advice on public health issues and addiction awareness programs. In 2010, talks on prevention addiction were taught in local schools and a variety of cultural, sporting and social events were held. SUPPORTING LOCAL ECOMONIC DEVELOPMENT By encouraging the development of alternate sources of income, we support strategic local business initiatives that strengthen local supply chains and increase entrepreneurial opportunities. EMPOWERING WOMEN In October 2010, Primero partnered with the Ministry of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales) to deliver skills development training to 40 women entrepreneurs to create eco-friendly handicrafts using recycled plastic bottles and bags. 16 Sustainability Report 2010

19 CONTACT US Eduardo Luna Executive Vice President Martin Aguilar Mine General Manager Marco Navarro Safety Superintendent of the Mine

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