San Felipe I Mexico

San Felipe is located approximately six kilometres west of San Felipe de Jesús in northern Sonora, Mexico and consists of ten underground mining concessions covering a total of approximately 14,498 hectares.

San Felipe is 100% owned by Hochschild Mining plc and is a significant project for the Group. However, as a result of declining zinc prices in the second half of 2008 and management's commitment to reduce capital expenditure, the development of San Felipe has been delayed. We remain confident about the long term potential of San Felipe and will continue to review the timing of the project.

Verification drilling undertaken in 2008 indicated attributable resources of 1.91 million tonnes, primarily at La Ventana, with 7.32% zinc, 71 g/t silver, 3.19% lead and 0.14% copper.