Coal, Mining & Metals and Ores

This project consists of an equity investment in Tinka Resources, Ltd. ("Tinka" or the "Company"), a TSX Venture (TSX-V) listed junior mining company which owns a silver (Colquipucro) and zinc (Ayawilca) resource in the departments of Cerro de Pasco in the central Andes of Peru. IFC is considering an equity investment of up to US$10 million in Tinka to be used to carry out additional drilling activities in order to complete the Preliminary Economic Assessments (PEAs) for both projects. Colquipucro and Ayawilca are adjacent deposits (with drilling about 1,400 meters apart) located within the same concession package. Both projects are located at elevations ranging from 3,500 to 4,600 meters above sea level (masl) and approximately 60 km from the city of Cerro de Pasco in the central Andes of Peru. The closest mining project to Tinka is Uchucchacua, located about 35 km from the Project site. Colquipucro is a silver oxide deposit where the company has already drilled 6,500 meters and certified an inferred resource of 12.1 million tons of ore at an average grade of 82.3 gram per ton Ag. Ayawilca is a zinc sulphides deposit which is at pre-resource stage where 12,400 meters have been drilled to date. Colquipucro was mined periodically since colonial Spanish times and then explored and/or mined by several companies including Compania Minera Colquipucro, the Cerro de Pasco Corporation and Minas de Buenaventura S.A. In addition, Tinka owns a portfolio of early stage exploration projects which are currently under care and maintenance with little activity happening on the ground. In September 2014, Tinka resumed drilling activities at both sites and is planning on completing the PEAs for both projects within the next 24 months. The current workforce for Tinka includes approximately 80 people (including 30 permanent workers and 50 positions occupied by local workforce). In addition, there are approximately 20 workers hired by the contractor (S&C) undertaking the drilling activities. In addition, Tinka has 4 staff working in the Lima office. The Company`s exploration camp has been established adjacent to the exploration areas and include office facilities, a mess area, maintenance shop and a parking area. Accommodation at the camp is also available for 30 people. Tinka has expressed its objective to follow good international industry practice (GIIP) in environmental, safety, health and community issues. In this sense, IFC will assist Tinka in preparing a comprehensive Health, Safety, Environment & Community (HSEC) Policy which will contain elements of a continuous improvement process and management plans and procedures to address risks and impacts for the exploration stage with commitments for any future mine development.

Peru