WPM.TO · 2016-05-09

Silver Wheaton Announces Solid Start to 2016

Production Results Financials

FOR IMMEDIATE RELEASE TSX: SLW May 9, 2016 NYSE: SLW

SILVER WHEATON ANNOUNCES SOLID START TO 2016

Vancouver, British Columbia – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX:SLW) (NYSE:SLW) is pleased to announce its results for the first quarter ended March 31, 2016. All figures are presented in United States dollars unless otherwise noted.

Silver Wheaton realized the second best quarter ever in terms of production and sales volumes in the first quarter of 2016. Of note, Salobo once again reported record production, and, for the first time, Silver Wheaton sold over 65,000 ounces of gold in a quarter. Furthermore, operating cash flows increased 28% and revenues increased 44%, compared with Q1 2015.

FIRST QUARTER HIGHLIGHTS

Attributable silver equivalent production in Q1 2016 of 12.7 million ounces (7.6 million ounces of silver and 64,900 ounces of gold), compared with 10.3 million ounces in Q1 2015, representing an increase of 24%.
Attributable silver equivalent sales volume in Q1 2016 of 12.8 million ounces (7.6 million ounces of silver and 65,300 ounces of gold), compared with 7.7 million ounces in Q1 2015, representing an increase of 65%.
During the three month period ended March 31, 2016, payable silver equivalent ounces attributable to the Company produced but not yet delivered² decreased by 0.9 million ounces to approximately 6.1 million ounces.
Revenues of $188 million in Q1 2016 compared with $131 million in Q1 2015, representing an increase of 44%.
Average realized sale price per silver equivalent ounce sold in Q1 2016 of $14.70 ($14.68 per ounce of silver and $1,175 per ounce of gold), compared with $16.90 in Q1 2015, representing a decrease of 13%.
Net earnings of $41 million ($0.10 per share) in Q1 2016 compared with $49 million ($0.13 per share) in Q1 2015, representing a decrease of 17%.1
Operating cash flows of $114 million ($0.28 per share¹) in Q1 2016 compared with $89 million ($0.24 per share¹) in Q1 2015, representing an increase of 28%.
Cash operating margin¹ in Q1 2016 of $10.26 per silver equivalent ounce compared with $12.44 in Q1 2015, representing a decrease of 18%.
Average cash costs¹ in Q1 2016 were $4.14 and $389 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs¹ decreased to $4.44 compared with $4.46 in Q1 2015.
- 2 -
Declared quarterly dividend of $0.05 per common share.
On January 8, 2016, Silver Wheaton commenced an appeal in the Tax Court of Canada in relation to the Notices of Reassessment (the “Reassessments”) issued by the Canada Revenue Agency (the “CRA”). In order to commence the appeal, Silver Wheaton was required to make a deposit of 50% of the reassessed amounts of tax, interest and penalties. Upon approval from the CRA, Silver Wheaton posted security on March 15, 2016, in the form of a letter of guarantee in the amount of Cdn$192 million rather than making a deposit in cash.
Asset Highlights
- On March 21, 2016, the Company announced that it had entered into a definitive Early Deposit Precious Metals Purchase Agreement with Panoro Minerals Ltd. in respect to the Cotabambas project located in Peru.
Events Subsequent To The Quarter
- On April 14, 2016, the Company completed a bought-deal common share financing, whereby a total of 38,105,250 common shares (inclusive of the underwriters' over-allotment option) of Silver Wheaton were sold at a price of $16.60 per share, for aggregate gross proceeds to Silver Wheaton of approximately $633 million. After deducting underwriter commissions, the Company raised total net proceeds of approximately $607 million, which was used to repay debt that was outstanding under the Company's $2 billion revolving credit facility.

“Silver Wheaton had a solid start to 2016, and the company is on track to realising its production guidance of 54 million silver equivalence ounces for the year,” said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. “With strong performances from the Salobo and Antamina mines offsetting a shortfall from the San Dimas mine, Silver Wheaton achieved its second best quarter ever of production and sales volumes. Production at the San Dimas mine was below expectations; however, it was related to Primero’s efforts to enhance safety at the mine, an initiative that we fully support. Beyond our existing assets, Silver Wheaton continues to focus on acquiring new accretive streams from high-quality, low-cost mines. Having recently completed an equity offering, we believe that we are well-positioned to benefit from an environment that is ripe with opportunities.”

Financial Review

Revenues

Revenue was $188 million in the first quarter of 2016 on silver equivalent sales of 12.8 million ounces (7.6 million ounces of silver and 65,300 ounces of gold). This represents a 44% increase from the $131 million of revenue generated in the first quarter of 2015 due primarily to a 65% increase in the number of silver equivalent ounces sold, partially offset by a 13% decrease in the average realized silver equivalent price ($14.70 in Q1 2016 compared with $16.90 in Q1 2015).

Costs and Expenses

Average cash costs¹ in the first quarter of 2016 were $4.44 per silver equivalent ounce as compared with $4.46 during the comparable period of 2015. This resulted in a cash operating margin¹ of $10.26 per silver equivalent ounce, a reduction of 18% as compared with Q1 2015. The decrease in the cash operating margin was primarily due to a 13%

decrease in the average realized silver equivalent price in Q1 2016 compared with Q1 2015.

Earnings and Operating Cash Flows

Net earnings and cash flow from operations in the first quarter of 2016 were $41 million ($0.10 per share) and $114 million ($0.28 per share¹), compared with $49 million ($0.13 per share) and $89 million ($0.24 per share¹) for the same period in 2015, a decrease of 17% and an increase of 28%, respectively.

Balance Sheet

At March 31, 2016, the Company had approximately $87 million of cash on hand and $1,371 million outstanding under the Company's $2 billion revolving term loan. On March 18, 2016, the Company’s lenders extended the term of the revolving term loan by an additional year, with the facility now maturing on February 27, 2021.

On April 14, 2016, the Company completed a bought-deal common share financing, whereby a total of 38,105,250 common shares (inclusive of the underwriters' overallotment option) of Silver Wheaton were sold at a price of $16.60 per share, for aggregate gross proceeds to Silver Wheaton of approximately $633 million. After deducting underwriter commissions, the Company raised total net proceeds of approximately $607 million, which was used to repay debt that was outstanding under the Company's $2 billion revolving credit facility.

The Company has repurchased 3,060,454 common shares under the NCIB at an average price of $13.81 per share, including 2,295,665 common shares repurchased during the three months ended March 31, 2016 at an average price of $14.43 per share.

Update on CRA Dispute and Audit of International Transactions

On September 24, 2015, the Company received Reassessments from the CRA totaling Cdn$353 million for federal and provincial tax, transfer pricing penalties, interest and other penalties for the 2005-2010 taxation years. The CRA's position in the Reassessments is that the transfer pricing provisions of the Income Tax Act (Canada) (the “Act”) relating to income earned by the Company’s foreign subsidiaries outside of Canada should apply such that the income of Silver Wheaton subject to tax in Canada should be increased by an amount equal to substantially all of the income earned outside of Canada by the Company’s foreign subsidiaries for the 2005-2010 taxation years. Management believes that the Company has filed its tax returns and paid applicable taxes in compliance with Canadian tax law, and as a result no amounts have been recorded for any potential liability arising from this matter. Silver Wheaton intends to vigorously defend its tax filing positions.

On January 8, 2016, Silver Wheaton commenced an appeal in the Tax Court of Canada. In order to commence the appeal, Silver Wheaton was required to make a deposit of 50% of the reassessed amounts of tax, interest and penalties. Upon approval from the CRA, Silver Wheaton posted security on March 15, 2016 in the form of a letter of guarantee rather than making a deposit in cash. The letter of guarantee is in the amount of Cdn$192 million, which includes interest accrued to-date plus estimated interest for the following year. The timing for the court process is uncertain.

The CRA has also commenced an audit of the Company’s international transactions covering the 2011-2013 taxation years, which is currently ongoing. The Company has not received any proposal or notices of reassessment for the 2011-2013 taxation years in connection with this audit.

First Quarter Asset Highlights

During the first quarter of 2016, attributable silver equivalent production was 12.7 million ounces (7.6 million ounces of silver and 64,900 ounces of gold), representing an increase of 24% compared with the first quarter of 2015.

Operational highlights for the quarter ended March 31, 2016, are as follows:

Salobo

In the first quarter of 2016, Salobo produced a record 37,871 ounces of attributable gold, an increase of approximately 39% relative to the first quarter of 2015. This growth was primarily due to increased throughput resulting from the expansion to 24 million tonnes per annum, which commenced production in mid-2014. According to the Vale S.A. ("Vale") first quarter 2016 production report, Salobo is expected to continue to improve production throughout 2016 as rainfall decreases. Vale further reports that Salobo achieved the monthly production record for copper concentrate in March 2016, and is expected to reach its full production capacity in the second half of 2016.

Peñasquito

In the first quarter of 2016, Peñasquito produced 1.4 million ounces of attributable silver, a decrease of approximately 7% relative to the first quarter of 2015 due to lower grades being mined as part of mine sequencing. As disclosed in Goldcorp Inc.’s (“Goldcorp”) first quarter of 2016 MD&A, the lower grades will persist through the year and a 10-day maintenance shutdown is scheduled in the second quarter. Goldcorp further reports that construction of the Northern Well Field project continued to progress during the quarter and is on track to be completed in late-2016.

San Dimas

In the first quarter of 2016, San Dimas produced 0.9 million ounces of attributable silver, a decrease of approximately 52% relative to the first quarter of 2015. As per Primero Mining Corp.’s (“Primero”) first quarter production results, production at San Dimas was impacted by changes to the mining sequence which now includes the implementation of Canadian standards for ground support, and the condition that all employees will never work under unsupported ground. As a result, mill throughput was restricted to an average of 1,639 tonnes per day ("tpd") during the quarter. In April, Primero was successful in reestablishing operations above the current 2,500 tpd nameplate capacity. Primero further reported that the addition of ground support has resulted in a modified mine plan for the remainder of 2016, with the Company targeting higher grade stopes at slightly lower tonnes. Primero indicated that the 2016 operating plan does not require completion of the mill expansion to 3,000 tpd and as a result the project has been deferred.

On February 3, 2016, Primero announced that its Mexican subsidiary had received a legal claim from the Mexican tax authorities, Servicio de Administración Tributaria ("SAT"), seeking to nullify the Advance Pricing Agreement (“APA”) issued by SAT in 2012. Primero has indicated in its MD&A for the first quarter of 2016 that it intends to vigorously defend the validity of the APA and that it has filed procedural and substantive responses to the claim.

Antamina

In the first quarter of 2016, Antamina produced 2.0 million ounces of attributable silver as higher grades and recoveries more than offset the impact of planned maintenance in the quarter. As a reminder, Silver Wheaton is guiding for 2016 production at Antamina to be approximately 5.5 million ounces.

Sudbury

In the first quarter of 2016, Vale’s Sudbury mines produced 12,247 ounces of attributable gold, an increase of approximately 41% relative to the first quarter of 2015. This increase was attributable to higher grades (driven by increased production from the Totten mine), mill recoveries and throughput.

Other

Constancia: In the first quarter of 2016, Constancia produced approximately 3,435 ounces of attributable gold and 0.5 million ounces of attributable silver, an increase of 77% and 388%, respectively. These increases were due to the ramp up of the mine after commercial production was declared on April 30, 2015.

Minto: In the first quarter of 2016, Minto produced 3,114 ounces of attributable gold, a decrease of approximately 18% relative to the first quarter of 2015, primarily due to lower grades and recoveries more than offsetting higher throughput. According to Capstone Mining Corp.’s (“Capstone”) first quarter production results, mining rates and access to Minto North ore remained on schedule.

777: In the first quarter of 2016, 777 produced 8,275 ounces of attributable gold, a decrease of approximately 32% relative to the first quarter of 2015 primarily due to lower grades.

Cotabambas: As per Silver Wheaton’s news release dated March 21, 2016, the Company announced that its wholly-owned subsidiary, Silver Wheaton (Caymans) Ltd. (“SWC”), has entered into a definitive Early Deposit Precious Metals Purchase Agreement (the “Cotabambas Early Deposit Agreement”) with Panoro Minerals Ltd. and its wholly owned subsidiary Panoro Trading (Cayman) Ltd. (“Panoro”) in respect of the Cotabambas project located in Peru. SWC will be entitled to purchase 100% of the silver production and 25% of the gold production from the Cotabambas project until 90 million silver equivalent ounces attributable to SWC have been delivered, at which point the stream would drop to 66.67% of silver production and 16.67% of gold production for the life of mine. Under the Cotabambas Early Deposit Agreement, SWC will pay a total cash consideration of US$140 million plus an ongoing production payment. Once certain conditions have been met, SWC will advance US$14 million to Panoro, spread over up to nine years. Following the delivery of a bankable definitive feasibility study, environmental study and impact assessment, and other related documents (collectively, the “Feasibility Documentation”), and receipt of permits and construction commencing, SWC may then advance the remaining deposit or elect to terminate the Cotabambas Early Deposit Agreement.

Produced But Not Yet Delivered ²

As at March 31, 2016, payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners decreased by 0.9 million ounces to approximately 6.1 million silver equivalent payable ounces, as decreases at Constancia, Minto, San Dimas, Zinkgruvan, and Yauliyacu more than offset increases at Sudbury, Peñasquito, and Salobo. Payable ounces produced but not yet delivered to Silver Wheaton companies are expected to average approximately two months of annualized production but may vary

from quarter to quarter due to a number of mining operation factors including mine rampup and timing of shipments.

Detailed mine by mine production and sales figures can be found in the Appendix to this press release and in Silver Wheaton’s consolidated MD&A in the ‘Results of Operations and Operational Review’ section.

Webcast and Conference Call Details

A conference call will be held Monday, May 9, 2016, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call, please use one of the following methods:

Dial toll free from Canada or the US: 888-231-8191 Dial from outside Canada or the US: 647-427-7450 Pass code: 85631140 Live audio webcast: www.silverwheaton.com

Participants should dial in five to ten minutes before the call.

The conference call will be recorded and available until May 16, 2016. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:

Dial toll free from Canada or the US: 855-859-2056 Dial from outside Canada or the US: 416-849-0833 Pass code: 85631140 Archived audio webcast: www.silverwheaton.com

This earnings release should be read in conjunction with Silver Wheaton’s MD&A and Financial Statements, which are available on the Company’s website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.

Mr. Neil Burns, Vice President, Technical Services for Silver Wheaton, is a “qualified person” as such term is defined under National Instrument 43-101, and has reviewed and approved the technical information including information on mineral reserves and mineral resources disclosed in this news release.

Silver Wheaton believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Silver Wheaton website at http://www.silverwheaton.com/company/corporate-governance/default.aspx.

About Silver Wheaton

Silver Wheaton is the largest pure precious metals streaming company in the world. The Company has streams on some of the largest and lowest cost mines in the world. Silver Wheaton’s production and growth are founded on cornerstone assets including the Salobo mine in Brazil, the Peñasquito and San Dimas mines in Mexico, and the Antamina mine in Peru. Based upon its current agreements, forecast 2016 estimated annual attributable production is approximately 54 million silver equivalent ounces³, including 265,000 ounces of gold. Silver Wheaton’s estimated average annual attributable production over the next five

years is anticipated to be approximately 52 million silver equivalent ounces³ per year, including 260,000 ounces of gold.

End Notes

1 Please refer to non-IFRS measures at the end of this press release.

2 Payable silver equivalent ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.

3 Silver equivalent production forecast assumes a gold/silver ratio of 80:1. Please see "Cautionary Note Regarding Forward-Looking Statements" for material risks, assumptions and important disclosure associated with this information.

Condensed Interim Consolidated Statement of Earnings

Three Months Ended March 31

(US dollars and shares in thousands, except per share amounts - unaudited)				2015
		2016
Sales				$ 130,504
		$	187,511
Cost of sales Cost of sales, excluding depletion Depletion				$ 34,464 32,045
		$	56,636
			71,344
Total cost of sales				$ 66,509
		$	127,980
Gross margin				$ 63,995
		$	59,531
Expenses and other income General and administrative 1 Interest expense Other expense				$ 8,170 1,500 1,924
		$	10,844
			6,932
			1,160
				$ 11,594
		$	18,936
Earnings before income taxes Income tax recovery (expense)				$ 52,401 (2,982)
		$	40,595
			384
Net earnings				$ 49,419
		$	40,979
Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted				$ 0.13 $ 0.13 370,844 371,115
		$	0.10
		$	0.10
			402,952
			403,125
1) Equity settled stock based compensation (a non-cash item) included in general a administrative expenses.	n		1,397		1,922
		$		$

Condensed Interim Consolidated Balance Sheets

(US dollars in thousands - unaudited)	March 31		December 31 2015
	2016
Assets Current assets Cash and cash equivalents Accounts receivable Other			$ 103,297 1,124 1,455
	$	86,776
		1,648
		1,878
Total current assets			$ 105,876
	$	90,302
Non-current assets Silver and gold interests Early deposit - silver and gold interest Royalty interest Long-term investments Other			$ 5,469,412 15,725 9,107 19,776 12,315
	$	5,398,111
		15,725
		9,107
		36,648
		13,251
Total non-current assets			$ 5,526,335
	$	5,472,842
Total assets			$ 5,632,211
	$	5,563,144
Liabilities Current liabilities Accounts payable and accrued liabilities Dividends payable Current portion of performance share units			$ 10,664 - 1,904
	$	8,248
		20,088
		5,924
Total current liabilities			$ 12,568
	$	34,260
Non-current liabilities Bank debt Deferred income taxes Performance share units			$ 1,466,000 176 2,732
	$	1,371,000
		187
		1,310
Total non-current liabilities			$ 1,468,908
	$	1,372,497
Total liabilities			$ 1,481,476
	$	1,406,757
Shareholders' equity Issued capital Reserves Retained earnings			$ 2,815,569 (23,197) 1,358,363
	$	2,799,548
		(5,306)
		1,362,145
Total shareholders' equity			$ 4,150,735
	$	4,156,387
Total liabilities and shareholders' equity			$ 5,632,211
	$	5,563,144

10 -

Condensed Interim Consolidated Statement of Cash Flows

Three Months Ended March 31

(US dollars in thousands - unaudited)			2015
	2016
Operating activities Net earnings Adjustments for Depreciation and depletion Amortization of credit facility origination fees: Interest expense Amortization of credit facility origination fees - undrawn facilities Write off of credit facility origination fees upon repayment of NRT Loan Interest expense Equity settled stock based compensation Performance share units Deferred income tax (recovery) expense Investment income recognized in net earnings Other Change in non-cash working capital			$ 49,419 32,142 113 248 1,315 1,387 1,922 782 2,936 (132) (38) 150
	$	40,979
		71,575
		257
		107
		-
		6,675
		1,397
		2,321
		(371)
		(31)
		30
		(3,091)
Cash generated from operations Interest paid - expensed Interest received	$	119,848	$ 90,244 (1,188) 75
		(6,119)
		25
Cash generated from operating activities			$ 89,131
	$	113,754
Financing activities Bank debt repaid Bank debt drawn Credit facility origination fees Shares issued Share issue costs Redemption of share capital Share purchase options exercised			$ (1,000,000) 800,000 (4,112) 800,000 (30,344) - 2,887
	$	(95,000)
		-
		(1,300)
		-
		-
		(33,126)
		-
Cash generated from (applied to) financing activities			$ 568,431
	$	(129,426)
Investing activities Silver and gold interests Interest paid - capitalized to silver interests Silver and gold interests - early deposit Proceeds on disposal of silver interest Dividend income received Other			$ (900,003) (1,824) (13) 25,000 57 (612)
	$	(273)
		(615)
		(1)
		-
		6
		(47)
Cash applied to investing activities			$ (877,395)
	$	(930)
Effect of exchange rate changes on cash and cash equivalents			$ (257)
	$	81
Decrease in cash and cash equivalents Cash and cash equivalents, beginning of period			$ (220,090) 308,098
	$	(16,521)
		103,297
Cash and cash equivalents, end of period			$ 88,008
	$	86,776

11 -

Summary of Ounces Produced and Sold

2016 2015 2014

		Q4 Q3 Q2 Q1 Q4 Q3 Q2
	Q1
Silver ounces produced 2 San Dimas 3 Yauliyacu Peñasquito Antamina Other 4		2,317 1,418 1,786 1,928 1,744 1,290 1,118 749 696 696 576 687 875 658 1,766 2,092 1,932 1,447 1,582 1,630 2,054 2,403 - - - - - - 3,049 2,684 2,787 2,391 2,391 2,300 2,481
	923
	657
	1,352
	2,021
	2,617
Total silver ounces produced		10,284 6,890 7,201 6,342 6,404 6,095 6,311
	7,570
Gold ounces produced ² Sudbury 5 Salobo Other 6		13,678 7,300 8,195 8,666 9,924 12,196 7,473 37,680 32,954 27,805 27,185 12,253 10,415 8,486 19,293 15,592 14,082 17,809 13,925 19,064 16,796
	12,247
	37,871
	14,824
Total gold ounces produced		70,651 55,846 50,082 53,660 36,102 41,675 32,755
	64,942
Silver equivalent ounces of gold produced 7		5,289 4,203 3,672 3,926 2,675 2,786 2,144
	5,163
Silver equivalent ounces produced 7		15,573 11,093 10,873 10,268 9,079 8,881 8,455
	12,733
Silver equivalent ounces produced - as originally reported 2, 7		15,463 10,993 10,904 10,371 8,964 8,447 8,365
	n.a.
Increase (Decrease) 2		110 100 (31) (103) 115 434 90
	n.a.
Silver ounces sold San Dimas 3 Yauliyacu Peñasquito Antamina Other 4		2,097 2,014 1,265 1,901 1,555 1,295 1,194 987 428 809 320 761 1,373 111 2,086 2,053 1,420 1,573 1,640 1,662 1,958 1,340 - - - - - - 2,241 2,080 2,081 1,871 1,777 1,969 1,964
	1,345
	603
	949
	1,879
	2,776
Total silver ounces sold		8,751 6,575 5,575 5,665 5,733 6,299 5,227
	7,552
Gold ounces sold Sudbury 5 Salobo Other 6		6,256 6,674 12,518 8,033 11,251 5,566 6,718 44,491 21,957 32,156 9,794 14,270 7,180 11,902 14,152 19,446 16,300 10,572 12,383 23,972 16,158
	9,007
	35,366
	20,885
Total gold ounces sold		64,899 48,077 60,974 28,399 37,904 36,718 34,778
	65,258
Silver equivalent ounces of gold sold 7		4,863 3,619 4,468 2,058 2,808 2,441 2,267
	5,207
Silver equivalent ounces sold 7		13,614 10,194 10,043 7,723 8,541 8,740 7,494
	12,759
Gold / silver ratio 7		74.9 75.3 73.3 72.5 74.1 66.5 65.2
	79.8
Cumulative payable silver equivalent ounces produced but not yet delivered 8		6,995 6,380 6,398 6,445 4,952 5,147 5,996
	6,085

1) All figures in thousands except gold ounces produced and sold.

2) Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

3) The ounces produced and sold include ounces received from Goldcorp in connection with Goldcorp’s four year commitment commencing on August 6, 2010 to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero.

4) Comprised of the Los Filos, Zinkgruvan, Stratoni, Keno Hill, Cozamin, Neves-Corvo, Minto, Aljustrel, Lagunas Norte, Pierina, Veladero, 777 and Constancia silver interests in addition to the previously owned Mineral Park and Campo Morado silver interests.

5) Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests.

6) Comprised of the Minto, 777 and Constancia gold interests.

7) Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) the ratio of the average silver price received to the average gold price received during the period from the assets that produce both gold and silver; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.

8) Payable silver equivalent ounces produced but not yet delivered are based on management estimates. These figures may be updated in future periods as additional information is received.

12 -

Results of Operations

The Company currently has eight reportable operating segments: the silver produced by the San Dimas, Yauliyacu, Peñasquito and Antamina mines, the gold produced by the Sudbury and Salobo mines, the silver and gold produced by the Other mines and corporate operations.

Three Months Ended March 31, 2016 Average Average Realized Cash Average Price Cost Depletion Cash Flow Ounces Ounces ($'s Per ($'s Per ($'s Per Net From Produced² Sold Sales Ounce) Ounce)³ Ounce) Earnings Operations Total Assets

Silver

San Dimas	923	1,345 $	19,972 $	14.85 $	4.24 $	1.11 $	12,781 $	14,269 $	145,067
Yauliyacu	657	603	9,037	14.98	5.38	5.78	2,305	5,792	161,795
Peñasquito	1,352	949	13,632	14.37	4.09	3.05	6,855	9,751	427,951
Antamina	2,021	1,879	27,194	14.47	2.98	9.94	2,927	21,603	868,348
Other4	2,617	2,776	41,012	14.77	4.62	4.36	16,063	27,743	944,884
	7,570	7,552 $ 110,847 $		14.68 $	4.14 $	5.12 $	40,931 $	79,158 $ 2,548,045

Gold

Sudbury5	12,247 9,007 $	10,573 $	1,174 $	400 $	787 $	(119) $	7,074 $	499,161
Salobo	37,871 35,366	41,018	1,160	400	423	11,902	26,871	2,141,788
Other6	14,824 20,885	25,073	1,201	366	509	6,817	18,060	209,117
	64,942 65,258 $	76,664 $	1,175 $	389 $	501 $	18,600 $	52,005 $ 2,850,066

Silver

equivalent ⁷ 12,733 12,759 $ 187,511 $ 14.70 $ 4.44 $ 5.59 $ 59,531 $ 131,163 $ 5,398,111

Corporate General and administrative $ (10,844)

Other (7,708)

Total corporate $ (18,552) $ (17,409) $ 165,033

12,733 12,759 $ 187,511 $ 14.70 $ 4.44 $ 5.59 $ 40,979 $ 113,754 $ 5,563,144

1) All figures in thousands except gold ounces produced and sold and per ounce amounts.

3) Refer to discussion on non-IFRS measures at the end of this press release.

4) Comprised of the operating Los Filos, Zinkgruvan, Stratoni, Cozamin, Neves-Corvo, Minto, Lagunas Norte, Pierina, Veladero, 777 and Constancia silver interests in addition to the non-operating Keno Hill, Aljustrel, Loma de La Plata, Pascua-Lama and Rosemont silver interests.

5) Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests in addition to the non-operating Victor gold interest.

6) Comprised of the operating Minto, 777 and Constancia gold interests in addition to the non-operating Rosemont gold interest.

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