DRCO AUMN CoNote 2010-10-01

EQUITY RESEARCH
INITIATING COVERAGE
Metals & Mining: Emerging Miners
GOLDEN MINERALS COMPANY (AMEX:AUMN)
October 1, 2010
Adam P. Graf, CFA, Director
agraf@dahlmanrose.com 212.702.4504 Unlocking Value Through
Exploration & Development
Golden Minerals offers investors exposure to a deep portfolio
Recommendation
Rating: Buy of exploration and development assets, rapidly moving
Price Target: $104.00 forward toward asset definition and production. We are
Expected Return: 569.7%
Dividend: $0.00 initiating with a BUY rating based on valuation and the
Enterprise Value (MM):
Yield:
$104.2
NM positive impact of near-term catalysts.
Expected Total Return: 569.7%
Cash Flow per Share
Attractive & Deep Portfolio of High-Grade Assets
2010E 2011E 2012E
Inherited from Apex Silver, the company has a deep portfolio of early stage development
FY $(0.36) $(0.27) $1.72 and exploration assets. These assets are generally low capital intensive projects located
P/CF (43.1)x (57.5)x 9.0x
in mining friendly regions characterized by rapid permitting and construction, sufficient
Stock Statistics as of 09/30/2010 pool for labor, and low energy/infrastructure requirements. With advanced assets located
Price: $15.53
52W Range: $16-$5
in northern Argentina, central Mexico, and Peru, we expect management to aggressively
Shares Out (MM): 9.3 develop assets to construction. Golden benefits from nearly a decade of project accumulation
Market Cap (MM): $144.0
Net Debt: $(39.8) by its predecessor company at much lower metal prices. The flagship asset, El Quevar silver
project, is rapidly progressing to development and construction.
Fundamentals
Earnings Per Share ('10E) $(0.46)
Experienced and Proven Management Team
Earnings Per Share ('11E) $(0.53)
Earnings Per Share ('12E) $0.67 Senior management consists of former exploration and operation executives from Cyprus,
P/E ('10) NM Homestake, Phelps Dodge, Kinross, Meridian Gold, Pan American Silver, and Apex Silver.
P/E ('11) NM
The team successfully operated major copper and gold mines, as well as built and operated
P/E ('12) 23.2x
Net Asset Value: $103.97 the 40,000 tpd San Cristóbal zinc-silver mine now owned by Sumitomo. In the current
P/NAV: 0.15x
Gold: NA environment of junior miners looking to develop precious metal assets, it is unusual to find a
$100 Au Leverage / Share: $2.35 pre-producer with such experience.
$5 Ag Leverage / Share: $36.02
Deeply undervalued
Due to its evolution, the name remains under-covered and under-exposed. Similarly, we
believe the asset potential is poorly understood by the market and yet highly prospective.
Ironically, the company’s limited liquidity and shares outstanding, while providing leverage
to the underlying assets, also limits the attraction to large institutional investors. Even after
recent price performance, shares appear to be trading at 0.15x P/NAV, a deep discount to its
peer group. Golden also provides significant silver leverage.
Please read Required Disclosures & Analyst Certification on the last pages of this report.
MEMBER: FINRA/SIPC www.dahlmanrose.com

DAHLMAN ROSE & CO. EQUITY RESEARCH
Investment Thesis We believe that AUMN shares offer investors the opportunity to participate in an exciting
exploration and development story. The company is in the process of completing a feasibility
study at its El Quevar high-grade silver project in northern Argentina and has a deep portfolio
of projects in Argentina, Mexico, and Peru. With a seasoned management team at the helm,
we expect El Quevar to quickly progress to production. We view Golden as an early stage
multi-asset vehicle, with exposure both to silver price and to market re-valuation with greater
investor exposure and interest.
Key Drivers Exploration Success & Resource Definition. With $40MM in cash to spend on
exploration and development in 2010, we expect Golden to demonstrate significant results
from both the advanced El Quevar project and its other exploration project being drilled this
year. We expect results from El Quevar to produce a larger resource as well as an initial
mine plan for the asset. At the other assets in Mexico and Peru, we expect positive drill
results to start to attract further investor interest.
Asset Development. As the company’s assets start to take shape and move into
production, we expect the market to re-value the equity and start to recognize the intrinsic
value, which we believe has flown largely under the radar of even the most dedicated
resource investors.
Metal Prices, Market Exposure, and M&A Speculation. The recent acquisitions have
at once interested the market and fueled investor speculation. High metal prices and
increased exposure for earlier stage stories continue to feed this fire as investors search
for new vehicles to gain exposure to both precious metals and potential acquisition stories.
Generally, this allows for early-staged stories to more easily raise capital to spend on either
exploration or development. Golden Minerals holds a unique position as they already
possess a deep portfolio of precious metal projects; thus they only have to focus capital on
defining assets and building mines.
Risks Permitting and Execution. The company is building underground infrastructure for
exploration (which will then likely turn into production infrastructure) and early surface
infrastructure for the initial 650 tpd operation at El Quevar. Building a mine is no easy task,
even for experienced mine builders. While companies extensively plan for construction and
meticulously estimate costs and time lines, more often than not, construction does not go
exactly as planned. In addition, depending on the country and jurisdiction, various permits
are required for both exploration and construction. The timing and certainty of receiving
permits always presents risk, regardless of compliance with laws and protocol.
Exploration Risk. Much of the company’s project pipeline is still in early stages of
exploration, and not only have these projects not yet been fully drilled, neither economic
studies nor mine plans been constructed. Given the location, geology, and early testing of
these assets, we expect more detailed investigations will prove them to be viable assets.
However, there remains uncertainty until further money is spent on detailed investigation
MEMBER: FINRA/SIPC 2 www.dahlmanrose.com

to provide statistical certainty regarding grades, recoveries, ore body morphologies, and
economic viability.
Liquidity/Dilution. While the company successfully raised equity earlier this year, we
expect it will need to come back to the market to move the flagship asset into production.
For companies without operating assets, capital raising is the lifeblood of development:
capital allows raw assets to evolve into mines. Equity is often the preferred route to reach
production status. Additional equity offerings should generate additional trading volume,
which allows larger institutional shareholders to enter – a particularly troublesome issue for
Golden.
Company Overview Golden Minerals is an exploration and development company led by an experienced
management team who have successful advanced projects from early stage exploration
sites to operating mines. Additionally, the company also provides mine management services
that range from feasibility studies all the way through to operational management. Currently,
Golden Minerals owns and controls several exploration properties, which includes the
feasibility stage El Quevar project in Argentina – a high-grade silver asset. In addition,
a deep exploration portfolio provides them additional silver leverage and opportunity for
revaluation as these assets are explored, defined, and de-risked. The company continues to
pursue growth through strategic opportunities including acquisitions, joint ventures and asset
consolidations. Golden Minerals is headquartered in Golden, Colorado, USA.
Company History Incorporated in Delaware, Golden Minerals is the successor to Apex Silver, which filed
for bankruptcy and liquidated in December 2009. Related to the bankruptcy, Apex sold
its San Cristobal mine to Sumitomo and the remaining exploration portfolio was assigned
to Golden Minerals, led by Apex' former management. The subordinated debt holders of
Apex received a distribution of Golden Minerals common stock and cash, thus becoming its
shareholder base. Earlier this year, the company ran a road show, successfully raising capital
and expanding its shareholder base.

Exhibit 1: Location Map Of Golden's Principle Assets
Source: Company Website
El Quevar – Argentina
Golden Minerals, or its predecessor company Apex Silver Mines Corp. (“Apex”), has been
exploring at the El Quevar property since 2004. The property is located in the Salta province
in Argentina and is comprised of a total of 20 mineral concession zones, 16 of which are held
by a wholly-owned subsidiary of Golden Minerals; the remaining four have been optioned by
Golden. Furthermore, the property is located at an elevation ranging from 13,000 to 18,000-
ft above sea level. The area is a dry, tundra-like Altiplano region of the central Andes. While
this elevation may seem extreme, other mines, notably both Freeport McMoRan’s Grasberg
mine in Indonesia and Newmont’s Peruvian Yanacocha mine, are at elevations in excess

of 14,000-ft above sea level; Barrick’s Pascua Lama project, which straddles the Chilean
– Argentinean border, is at an elevation 16,400-ft. However, unlike these other mines, El
Quevar should not suffer the negative effects of precipitation, nor the difficulties of operating
large vehicles at high altitudes.
The property is accessed by 160 miles of highway roads from the city of Salta, the capital of
the province. Roads are generally considered to be in good condition, and driving time by
SUV is estimated at 4-5 hours. The camp itself is six miles from the highway on a grade road.
Railroad service is also available to the gravel road to within six miles of the site from Salta.
Power is considered sufficient for exploration work; however, it would need to be improved
to support mining activity. Camp power is provided by two diesel generators, operated 24
hours/day. Water is supplied by a nearby well. A satellite dish provides phone and internet
communications. Grid electricity is 19 miles from the El Quevar site.
The area is sparsely populated where the closest town is approximately 12 miles from the
site. The next largest town is 56 miles away, and can provide modest supplies and services,
including a hospital. Salta, the capital, has about 500,000 people and can provide all major
services.
Historical small-scale mining and prospecting has been rumored to have been done on the
property intermittently since the 1800s. Mining activity picked up in the 1930s and a number
of companies explored and drilled the properties beginning in the 1970s.

Exhibit 2: Location of El Quevar and Other Major Mines and Projects within Argentina
Source: Company Presentation — June 2010
Regionally, the El Quevar property is located within the greater Andean Cordillera, which
runs along the western edge of South America at a width ranging from 120-430 miles and
stretches over 4,300 miles from north to south. The project area is within the Tertiary age El
Quevar volcanic complex, which covers more than 1,000 square kilometers. The El Quevar
volcanic complex formed during Miocene to early Quaternary time, with main volcanic events
dated at 19-17Ma, 13-12Ma, 10Ma, 7-6Ma and 1-0.5Ma. The dominant volcanic products
were extensive pyroclastic flows (including ignimbrites of lithic and crystal-lithic tuffs), overlain
by rhyolite flows, followed by intermediate volcanic rocks including andesitic flows and
resurgent domes of dacitic composition. Doming is associated with multiple intrusions of
different phases and mineralizing events.
The silver-base-metal mineralization at El Quevar is of epithermal origin (like many deposits

in Mexico’s Sierra Madre and Argentina’s Deseado Massif. The cross-cutting nature of

the mineralization, the assemblage of sulfide and alteration minerals, and the presence
of mineralized voids, indicate an origin at shallow to moderate depths from hydrothermal
solutions. Mineralization is hosted in volcanic rocks and minor associated intrusive and
sedimentary rocks. Epithermal deposits are common in the Andes and in other cordilleran
environments, especially in proximity to Tertiary volcanic rocks.
The El Quevar property is 100% owned/controlled by Golden Minerals and contains 13

mineralization targets that are subdivided into three zones, the Viejo Campo, the Quevar
Norte and the Quevar Sur. The primary mineralization, advanced exploration, and feasibility
zone is within the Quevar Sur area, known as the Yaxtché zone. This zone is tabular,
exposed or near the surface, is around 6,000-ft in length along strike and 130 – 480-ft in
width. The Yaxtché Zone contains silver mineralization, as well as lead and zinc, and lesser
amounts of gold, copper, bismuth, and antimony. The principal minerals of economic interest
are argentiferous sulfosalts and galena, with many other metallic minerals also present.
Exhibit 3: Major Exploration Targets within the El Quevar Concession
Upper parts of the Yaxtché mineralization have been oxidized and leached by meteoric
waters, forming an oxidized (supergene) zone with distinctive mineralogy. Beneath the oxide
zone is a mixed zone, containing secondary minerals (both oxides and sulfides) deposited on
primary sulfides. This is the zone of secondary enrichment, which on average has the highest
silver grades. At depth is the primary (hypogene) zone of original sulfide minerals.

Yaxtché has been interpreted by Golden Minerals as being of intermediate sulfidation

epithermal type, which in general are higher in base-metal content than high-sulfidation
epithermal deposits. Mineralization at Yaxtché, and at El Quevar in general, occurs in
strongly-altered, structurally-controlled zones within the older volcanic (and locally intrusive)
rocks. Sulfide minerals occur variously as open space filling and in massive veinlets or clots,
and less commonly as disseminations.
Preliminary metallurgical work shows that ore from the Yaxtché deposit would be amenable
to both flotation and cyanide leaching. Due to the high-grade, narrow-veined nature of
the deposit delineated hitherto indicates a possible underground mining method may be
necessary to exploit this deposit. Consequently, the company has developed an underground
mine plan and have built an underground portal for underground exploration/development
activities. The portal has recently extended into the known ore zone. Only by completing
detailed drilling and mapping can the detailed character and morphology of the ore body be
known – a necessity for mine planning.
Like other epithermal deposits of this type, the width of the ore body at Yaxtché pinches and
swells in size. Underground mining costs vary by mining method used, but also by the width
of mining stopes. At Yaxtché, the average width of the ore body appears to be between 3
to 20 meters. This appears to be a much larger range than similar deposits in Mexico and
Southern Argentina, suggesting that larger “ballrooms”, like those indicated by drill hole
QVD-211, may be harvested at a lower cost per ton.

Exhibit 4: Generalized Geology of The Yaxtche Zone
3418000mE
3419000mE
3420000mE
3421000mE
Andrea Br eccia
Sect ion
Line
7307000mN U
East er n Zone
Mineralised
St r uct ure
Ya x t ch e
D
I nt erpret ed
Mineralised
St ruct ure
Mu n i
7306000mN
Argentina Posgar Co p a n
WGS84 Zone 3
Breccia
Dacite porphyry
Fault structure
Mineralised Zone
0
N
500m
EL Qu e v a r - Argentina
Diamond Drill Hole Interpretive Geology
SEX 1-3-09
Source: Company website
Golden Minerals expects a preliminary economic assessment which has conceptualized

exploitation of Yaxtché using underground cut & fill or shrinkage stoping mining methods,
with sulfide flotation followed by subsequent cyanide leaching of flotation tailings. The most
recent Resource estimate at the Yaxtché deposit was completed in August and reported
nearly 9.0 million ounces of Indicated Resource and an additional 51.5 million ounces of
Inferred Resource. Over 245 diamond drill holes have been completed at El Quevar, including
185 holes drilled on the Yaxtché deposit. Continued drilling indicates that mineralization at
Yaxtché continues both to the west (under post-mineral cover) and to the east (offset by a
fault). There also appears to be a parallel structure to the south of Yaxtché that contains
mineralization. While early resource estimates indicate a 650 tpd mill complex, more recent
drilling success and extension of mineralization could justify a larger operation with multiple
portals, in our view. Additional target zones north of Yaxtché at El Quevar, especially the

Sharon and Claudia targets, also appear quite prospective and may yield additional stand
alone mining operations.
Exhibit 5: El Quevar Conceptual Plan
Source: Company Presentation — September 2010
To extend and delineate the ore body, the company is preparing a feasibility study and has
initiated the tax stability process. Baseline environmental studies have been completed and
permitting at El Quevar is in process. The company intends to use its exploration decline and
developing infrastructure ultimately for production. A preliminary mine plan has been created
for Yaxtché, along with a plant layout and site plan.
Early-Stage Drilling Target Projects – Mexico & Peru
In addition to the company’s El Quevar project, Golden Minerals also has a well developed
pipeline of early-stage exploration sites. These projects are located in established silver-gold
districts in Mexico and Peru and are all at the drilling stage of exploration. These projects
include the La Pinta, Matehuapil, and Zacatecas projects, located in Mexico, and the Palca
project, located in Peru.

Exhibit 6: Location Of Major Projects In Mexico
Source: Company website
The “Zacatecas Project”
An advanced drilling stage property, the Zacatecas project is located in the state of
Zacatecas, which also hosts Goldcorp’s Peñasquito mine and Fresnillo Plc’s Fresnillo
mine, as well as many others. The district is within the state of Zacatecas, which hosts well
established paved roads and an extensive railroad network. The Zacatecas project consists
of five key target areas, the Panuco, Muleros, El Cristo and San Manuel-San Gil and San
Pedro de Hercules-San Jorge. Golden Minerals controls 187 concessions, where all but
six are 100% owned by the company. The remaining six are held under purchase options
with private owners. Drilling and sampling were underway as of June 2010. To date, Golden
Minerals has spent approximately $8.5MM on exploration and property acquisition in the
Zacatecas district.

Exhibit 7: The "Zacatecas Project" and Principle Target Areas
Source - Company Presentation — June 2010
The Panuco, Muleros, and El Cristo structures are narrow with high-grade silver
mineralization, with similarities to high levels at Fresnillo. We would envision these assets
being processed through a central mill and infrastructure. The San Manuel - San Gil
assets are immediately north of Capstone’s Cozamin copper-zinc mine and show similar
mineralization. Finally, the San Pedro de Hercules – San Jorge shows narrow structures with
high grade silver-gold with lesser base metal values.
The La Pinta Project
The La Pinta project is also located in the state of Zacatecas, adjacent to Goldcorp’s
Peñasquito mine (see below) and is 100% owned by Golden Minerals. The project
has undergone a magnetic survey which indicated potential significant zinc and silver
mineralization. The company expects to drill approximately 12 drill holes in 2010. Early
samples of intrusive float have returned promising gold, silver, and zinc. The main surface
rock types are the Cretaceous Cuesta del Cura and Indidura limestones, known to be a good
host to other CRD type deposits in central Mexico.

Exhibit 8: La Pinta Property Location.
The Matehuapil Project
Golden Mineral’s third drill-stage project in Mexico is the Matehuapil project, also in the state
of Zacatecas. Golden Minerals is currently earning a 60% interest in the project through
a joint venture with Almaden Minerals. Matehuapil has seven gold targets, for which the
company is planning on drilling throughout 2010. The property is located in the same belt
as Concepcion del Oro Mining District, Peñasquito, and the Camino Rojo project. Currently,
the company has high expectations for the Rabioso target within the Matehuapil property.
Geologic mapping and sampling indicates a large area of oxidized altered intrusive rocks and
sedimentary rocks with significant gold values. Bulk sampling of this area indicates a large
area of gold mineralization, amenable to open-pit mining and possibly low cost, heap-leach
processing. Other targets on the Matehuapil property are prospective for discovery of silver
and base metal-rich veins and replacement deposits.

Exhibit 9: Geology, Alteration, and Gold at the Rabioso Project
Source: Company Presentation — September 2010
Target Delineation Projects – Mexico, Chile & Peru
Golden Minerals currently maintains a portfolio of five projects that are currently at the target
delineation stage where two are located in Mexico, two in Peru and one in Chile.
Royalty & Joint Venture Options
Golden Minerals has a number of projects from which it will receive a royalty or in which it
participates via a joint venture agreement. The company noted that it will sell or farm-out with
a retained interest (royalty) if a property does not meet certain economic criteria. Currently,
the company has a joint venture on the Bolivian Paca-Pulacayo project from which Apogee
Minerals may earn a 60% interest should Apogee complete a feasibility study; however,
this project was recently subject to a non-binding agreement where Golden would sell the
subsidiary for 5MM shares of Apogee and a subsequent $500K and 3MM shares after 18-
months.

The company also recently sold its 49% interest in its Platosa project, located in Mexico to
Excellon Resources Inc. Golden in return received $2MM cash and a 1% royalty.
Golden Minerals also sold three minerals claims to Capstone for an upfront payment of $1MM
plus a sliding scale royalty, which varies from 1.5% to 3%, depending on the tonnage mined
from the property.
The company also previously owned the Otuzco silver-lead-zinc project located in Peru;
however, because the company determined that the project did not meet its economic criteria,
it entered into an agreement to sell the Otuzco land concessions to Apoquindo Minerals Inc.,
a Canadian junior exploration company, for a total of $3MM, payable in installments over four
years.
Finally, the company noted its Palla Palla project is composed of a very large mineralized
system and initial drilling has intersected significant silver in narrow veins. Golden Minerals
has elected to enter into a joint venture agreement with Electrum Resources. Under the
agreement, Electrum Resources can earn 80% interest on the project by spending $4MM
in three years. Electrum Resources is committed to a 10,000-ft drilling program, costing
$800,000 in the first year.
Mining Services – San Cristóbal - Bolivia
In addition to exploring and developing the aforementioned projects, Golden Minerals was,
until recently, providing mine management services where it managed the operations of
the San Cristóbal mine in Bolivia on behalf of Sumitomo. Golden’s management had a
$500MM per year budget with accountability for all aspects of operations. Golden was paid
an annual fee ~$6MM and eligible to receive an annual incentive fee of $1.5MM based upon
achievement of certain performance targets.
The San Cristóbal mine consists of an open pit mine and concentrator where ore is extracted
from the open pit by conventional truck and shovel operation and transported by truck from
the pit to the primary crusher. The ore is then processed by flotation and concentrates are
then filtered, loaded into containers and transported by rail to the port in Mejillones, Chile, and
then by ocean vessel to smelters and refineries.

Model Overview & Valuation Valuation of early stage exploration and development assets presents certain challenges.
Without a detailed economic study, one has to fall back on our estimates of key variables
such as: head grades, recoveries, through-put design, operating costs, capital costs, and
ultimate resource potential. We continue to resist falling back on overly simplistic metrics such
as EV/Resource as these metrics, while widely noted by analysts and companies alike, often
exclude critical economic variables. Our NAV valuation methodology which uses detailed
mine modeling, current forward curves, and a market derived discount rate is described
below.
NAV Methodology While simple reference ratios can be used to determine relative value and leverage, we
believe such generic methods are incomplete and do not take into account all pertinent
project-specific variables. We determine value and leverage by using Net Asset Value (NAV)
methodology at current commodity prices to create a snapshot of intrinsic share value, while
remaining agnostic to expectations of future commodity price movements. Investors can then
objectively compare market price to intrinsic NAV/share to determine relative value across
miners.
By applying multiple price scenarios (creating a data table), we can determine NAV/
share sensitivity (leverage) to commodity price changes. One can then compare the NAV/
share sensitivities to commodity price changes. Thus, by separating value and leverage,
investors have a more complete method for choosing stocks that offer leverage (and to what
commodity price), those that offer value, and those that offer some of each and how much.
Our NAV methodology uses discounted cash flows at the asset level, then combines this
with the capital structure on the corporate level to reach an aggregate value per share. This
method allows for the inclusion of all significant economic variables absent in more simplistic
valuations (and measures of leverage), resulting in a proper comparison of value or leverage
between assets and companies without having to make ad hoc adjustments to account
for differences in these variables. In our view, full costing to finished traded commodity is
important to keep comparisons fair. Non-core and early stage development projects may
cause some difficulty for NAV methodology as fewer important variables are known. In this
case, falling back on more simplistic methodology may be necessary and acceptable as long
as those assets make up a minority of the gross NAV.

Individual Project Analysis Due to the continued growth of the resource base and further positive exploration results, we
believe that El Quevar will be a fairly large underground operation, accessed from multiple
portals. We think early production can begin by late next year, ramping up over a four year
period to 1,500 tpd.
Exhibit 10: Key Assumptions El Quevar Project
El Quevar Units Assumption

Steady state throughput tpd 1500
Average Silver Grade g/t 390
Average Recovery % 85%
Average Silver Production Oz/year 5.2MM
LOM Cash Cost $/oz $7.90
LOM Total Cash Cost $/oz $14.30
Up Front Capital $ $100MM
Start Date Year Late 2011
Mine Life Years 22
Source: Dahlman Rose & Co. estimates
The company’s 60% Matehuapil property in Mexico, and specifically the Rabioso prospect,
has moved up on the project priority list due to the potential for open-pit gold production and
low up-front capital requirements. While it is still in the early stages, we have attempted a
preliminary model based on benchmarking other open-pit gold operations in northern Mexico.
We believe our assumptions are conservative, especially regarding gold grades.
Exhibit 11: Key Assumptions Matehuapil Project

Matehuapil Units Assumption
Average Gold Grade g/t 0.6
Average Gold Production Oz/year 54K
LOM Cash Cost $/oz $640
LOM Total Cash Cost $/oz $750
Start Date Year 2013
Mine Life Years 17
At the “Zacatecas Project”, we assume that the Panuco, Muleros, and El Cristo assets will
be mined in sequence, from highest to lowest grade. Ore from these mines would then be

processed through a central mill. A separate lead and zinc concentrate will then be sold to
third parties for processing.
Exhibit 12: Key Assumptions Zacatecas Project

Zacatecas Project Units Assumption
Average Silver Grade g/t 462
Average Zinc Production Lb/year 7.8MM
Average Lead Production Lb/year 6.6MM
LOM Cash Cost $/oz $2.62
LOM Total Cash Cost $/oz $4.07
Start Date Year Late 2015
Mine Life Years 20
The San Manuel-San Gil project, located just north of Capstone’s Cozamin mine is easily
benchmarked by its neighboring operation. We currently expect this high-grade copper-
zinc operation to come online in 2016 under Golden’s pipeline, due to its base metal focus.
However, should this asset move to another owner (and Capstone is the logical buyer in our
view), we would certainly expect production to commence sooner.
Exhibit 13: Key Assumptions San Manuel - San Gil Project

San Manuel-San Gil Units Assumption
Average Copper Production Lb/year 21.7MM
Average Silver Production Oz/year 625K
Average Lead Production Lb/year 517K
LOM Cash Cost $/lb Cu $0.93
LOM Total Cash Cost $/lb Cu $1.69
Mine Life Years 14
Finally, we assume the Palca asset in Peru is toward the bottom of the company’s priority list,
given the additional infrastructure needed and the company's more subdued body language
around the project. Therefore, we assume this polymetallic deposit does not come on line
until 2017.

Exhibit 14: Key Assumptions Palca Asset

Palca Units Assumption
Average Gold Production Oz/year 9K
Average Lead Production Lb/year 11.8MM
LOM Cash Cost $/oz Ag ($3.45)
LOM Total Cash Cost $/ oz Ag ($0.29)
Mine Life Years 11
While the company’s La Pinta property in Mexico looks to be prospective given the proximity
to Goldcorp’s Peñasquito mine and apparent favorable geology, we are unable to attribute
value to the asset until results are released from the current drill program. However, because
of its location, we think that positive results from drilling at La Pinta could be a significant
driver of value as well as speculation.
Based on our modeling of the company’s more advanced exploration and development
assets, shares appear to be trading near 0.15x P/NAV, a discount to its peer group and its
intrinsic value. As the company is able to bring its El Quevar project into production, we would
expect a valuation similar to Silver Standard closer to 0.3x NAV. Silver Standard also has
a deep pipeline of project and has just recently brought its first asset into production. The
consolidated NAV shows greatest sensitivity to silver price, due principally to the underlying
value and contribution of the El Quevar and Zacatecas projects to cash flows.

Exhibit 15: Calculated NAV Breakdown by Asset
Shares Out 9.7
NAV/Share IRR NAV

OPERATING/ADVANCEDSTAGED PROJECTS
San Cristobal Service Contract 0.00
Royalties 2.83
El Quevar, Argentina (100%) 39% 40.65
Matehuapil Project, Mexico (60%) 31% 6.17
Panuco/Muleros/El Cristo: Zacatecas, Mexico 36% 37.55
San Manuel-San Gil, Zacatecas Mexico 28% 7.04
Palca, Peru 26% 9.68
EARLY STAGEPROJECTS
Elisa de Bordos, Chile 0.00
Antofalla, Argentina 0.00
La Pinta, Mexico 0.00
San Pedro de Hercules - San Jorge, Zacatecas Mexico 0.00
Total Operating NAV 103.92
NAVless Net Debt $103.97
Exhibit 16: Gold and Silver Sensitivity Analysis
Silver
$103.97 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00
800 -$35.77 $0.26 $36.28 $72.30 $108.33 $144.35
900 -$33.41 $2.61 $38.63 $74.66 $110.68 $146.71
1000 -$31.06 $4.96 $40.99 $77.01 $113.03 $149.06
1100 -$28.71 $7.32 $43.34 $79.36 $115.39 $151.41
Gold
1200 -$26.35 $9.67 $45.69 $81.72 $117.74 $153.76

1300 -$24.00 $12.02 $48.05 $84.07 $120.09 $156.12

Exhibit 17: Silver Production Profile
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
.
4,000,000
2,000,000
-
2009 E
2010 E
2011 E
2012 E
2013 E
2014 E
2015 E
2016 E
2017 E
2018 E
2019 E
2020 E
2021 E
2022 E
2023 E
2024 E
2025 E
El Quevar, Argentina (100%) Panuco/Muleros/El Cristo: Zacatecas, Mexico Palca, Peru
Exhibit 18: Revenue Growth Profile by Commodity
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
-
2009 E
2010 E
2011 E
2012 E
2013 E
2014 E
2015 E
2016 E
2017 E
2018 E
2019 E
2020 E
2021 E
2022 E
2023 E
2024 E
2025 E
Lead Reveneus Gold Revenues Zinc Revenues Copper Reveneus Silver Revenues

Management Overview Jeffrey Clevenger, Chairmen and CEO: Mr. Clevenger has over 35 years of experience in
the mining industry where he has held executive roles with Apex Silver Mines Ltd., Cyprus
Amax Minerals Company, and Phelps Dodge Corporation. During his tenure at Apex, he
served as Director, President and CEO during which time the company constructed the
$1Bn San Cristobal mine. Mr. Clevenger was COO and President of Cyprus Amax during
which time the company grew copper production, reduced costs and successfully acquired
properties in both Peru and Chile and led several modernization programs. Mr. Clevenger
began his career at Phelps Dodge in 1973 as an engineer and would later serve as President
and General Manager of Phelps Dodge Morenci Inc. from 1989 to 1992.
Jerry W. Danni, Executive Vice President: Mr. Danni brings a diverse range of skills to
Golden Minerals and has over 30 years in the mining industry. He served as Senior Vice
President of Environment, Health and Safety with Kinross Gold Corporation and is also
a founding Principal and Manager of Strategic Environmental Management, LLC where
he provided strategic environmental management services. He also served as VP of
Environmental Affairs for Cyprus Climax Metals Company and was Director of Corporate
Environmental and Government Affairs with Lac Minerals Ltd. and Regional Manager of
Environmental Affairs with Homestake Mining Company.
Robert B. Blakestad, Senior Vice President, Exploration and Chief Geologist: Mr.
Blakestad has held several management positions within the mining industry which include
President and CEO of International Taurus Resources Inc. and VP of Exploration and Chief
Geologist with Amax Gold Inc. From 1990 to 1996, he was the Exploration Manager for
Cyprus Amax Minerals Corporation. From 1979 to 1990, he held various positions with
Homestake Mining Company.
Robert P. Vogels, Senior Vice President and CFO: Mr. Vogels brings over 20 years of
experience in the mining industry where he has held numerous accounting, finance and tax
positions at the corporate and operations level and has been involved in numerous, large
scale mine development projects. His experience includes previous positions as corporate
controller of Meridian Gold, site controller of Phelps Dodge's El Abra mine in Chile and
Project Controller of Inco's Goro project in New Caledonia.
W. Durand Eppler, Director: Mr. Eppler brings over 30 years of experience in the natural
resource industry where he has served as a corporate officer for both major and junior
mining companies. Most notably, he served as Vice President of Newmont Capital, Ltd. VP
of Corporate Development of Newmont Mining Corp., President of Newmont Indonesia and
VP of Corporate Planning at Newmont. He currently serves on the boards of directors of Vista
Gold Company, Augusta Resource Corp., and Allied Nevada Gold Corp. and is the Chairman
of the board of directors of Northern Energy & Mining Inc.

Ian Masterton-Hume, Director: Mr. Hume has over 30 years of experience in the natural
resource industry, primarily in the investment management and investment banking
capacities. Most recently, he served as the portfolio manager for private equity funds
specializing in global investments in the natural resource sector.
Ownership Profile
Exhibit 19: Golden Minerals Company — Major Shareholders and Insider Holders
Intitutional Owners
Holder Name Amt Held %Out
Sentient Executive GP III Ltd. 1,749,759 18.87%
Gilder Gagnon Howe 1,738,909 18.75%
Sentient GLB FND III 1,591,187 17.16%
Trishield Capital Management 605,167 6.52%
RBC Capital Management Inc. 470,000 5.07%
Hochschild Mining Plc 400,000 4.31%
Conus Partners 296,278 3.19%
Mason Hill Advisors LLC 197,300 2.13%
Mason Hill Advisors LLC 196,000 2.11%
Scarsdale Equities LLC 185,383 2.00%
Clevenger, Jeffrey 180,237 1.94%
SGRF III Parallel I LP 158,572 1.71%
Perennial Investors LLC 115,600 1.25%
GLG Partners Inc. 91,772 0.99%
Wolverine Asset Management 67,278 0.73%
Top 15 Holders 86.73%
Insider Owners
Holder Name Amt Held %Out Latest Change File Date
Clevenger, Jeffrey 180,237 1.94% (32,000) 5/12/2010
Blakestad, Robert 48,539 0.52% 1,000 7/9/2010
Danni, Jerry 47,113 0.51% - 5/18/2010
Vogels, Robert 43,039 0.46% 2,000 5/13/2010
Friedman, Deborah 31,000 0.33% 14,000 4/12/2010
Eppler, William 13,000 0.14% 3,000 5/14/2010
Watkins, David 10,600 0.11% 1,000 5/19/2010
Owen, Terry 8,615 0.09% (16,385) 12/31/2009
Total 4.10% (27,385)
Source: Bloomberg

Exhibit 20: Dahlman Rose & Co. Precious Metals and Emerging Miners Coverage Group - Institutional and Insider Holders
DRCOPrecious Metal Group

Institutional Insider
Company Ticker
Ownership Ownership
Barrick ABX 73.20% 6.63%
Agnico Eagle AEM 72.90% 8.69%
Goldcorp GG 64.70% 8.05%
Kinross KGC 73.10% 14.48%
Newmont NEM 81.10% 10.10%
Yamana AUY 52.00% 0.02%
Gammon Gold GRS 67.30% 5.55%
Capital Gold CGC 32.90% 1.56%
Allied Nevada ANV 42.50% 15.86%
Alamos Gold AGI 47.94% 1.44%
Minefinders MFN 60.30% 7.67%
Ivanhoe IVN 47.80% 21.96%
Northern Dynasty NAK 17.90% 10.00%
Seabridge SEA 29.00% 21.28%
Silver Standard SSRI 51.50% 3.92%
NovaGold NG 50.90% 8.49%
Fronteer Group FRG 42.30% 12.29%
US Gold UXG 29.40% 25.45%
Victoria Gold VIT 43.21% 2.74%
Midway MDW 8.40% 10.37%
Great Basin GBG 56.70% 5.71%
Guyana Goldfields GUY 56.74% 10.28%
Exeter Resource Corp. XRA 37.40% 6.84%
Int'l Tower Hill Mines THM 12.90% 11.42%
Vista Gold Corp. VGZ 16.60% 0.37%
Osisko Mining Corp. OSK 50.22% 1.47%
Detour Gold Corp. DGC 64.37% 1.72%
Terrane Metals Corp. TRX 21.45% 1.60%
Taseko Mines Ltd. TKO 21.80% 0.26%
Centamin Egypt Ltd. CEE 48.75% 0.48%
Extorre Gold Mines Ltd. XG 13.14% 0.11%
Paramount Gold & Silver PZG 36.73% 4.75%
San Gold Corp. SGR 40.06% 4.21%
Golden Minerals AUMN 86.73% 4.10%
DRCOPrecious Metal Group Avg. 45.65% 7.35%
Min 8.40% 0.02%

Max 86.73% 25.45%
Std. Dev 20.73% 6.57%
Source: Yahoo! Finance & Thomson One

Future Development We expect management to aggressively pursue detailed exploration and development
at the Yaxtche zone El Quevar this year, utilizing much of their cash reserves to develop
underground infrastructure, produce a feasibility study, and move to full construction. At
Yaxtche, a conceptual mine plan, process flow sheet, plan layout, and property production
facility design has already been constructed. Further, we expect the company to use a
significant portion of its cash to explore other zones at El Quevar as well as advanced
exploration projects in Mexico.
While still at early staged of exploration, the La Pinta asset in Mexico has a high profile due
to its proximity to Goldcorp's Penasquito, favorable geology, and early sampling. Currently
drilling at La Pinta may ignite investor interest should significant metal values come back from
assays.
El Quevar - Updated Resource – YE2010
El Quevar - Feasibility Study – YE2010
Exploration Results from drilling and assays at multiple projects in Zacatecas Mexico;
including La Pinta 4Q10

2010 E 2011 E 2012 E 2013 E 2014 E 2015 E 2016 E 2017 E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E
USD/MXN (USDMXN) Exchange Rate 12.6 13.0 13.5 14.3 14.7 15.1 15.1 15.1 15.1 15.1 15.1 15.1 15.1 15.1 15.1 15.1
USD/PEN (USDPEN) Exchange Rate 3.2 3.3 3.4 3.5 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6
Brent 80.9 82.7 85.0 86.6 87.9 89.3 91.2 92.7 92.7 92.7 92.7 92.7 92.7 92.7 92.7 92.7
El Quevar, Argentina (100%) 250 650 800 1,200 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Silver Production (ounces) 440,113 3,242,162 3,755,627 5,633,441 7,041,801 6,689,711 6,355,225 6,037,464 5,735,591 5,448,811 5,176,371 4,917,552 4,917,552 4,917,552 4,917,552
silver grade g/t 250.0 500.0 500.0 500.0 500.0 475.0 451.3 428.7 407.3 386.9 367.5 349.2 349.2 349.2 349.2
silver recovery % 60% 60% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85%
Gold Produciton (oz) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
gold grade g/t 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
gold recovery % (assumed) 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Lead Produciton (lbs) 0 0 1,255,299 1,544,984 2,317,476 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844 2,896,844
lead grade % 0 0 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
lead recovery % (assumed) 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Total Cost Per Ton Ore $95 $95 $95 $85 $75 $76 $76 $76 $76 $76 $76 $76 $76 $76 $76
Royalty 3% NSR $291,042 $2,157,432 $2,519,782 $3,804,093 $4,755,117 $4,517,361 $4,291,493 $4,076,918 $3,873,072 $3,679,419 $3,495,448 $3,320,675 $3,320,675 $3,320,675 $3,320,675
Total Cash Cost/oz $0 $20.36 $7.21 $7.61 $6.85 $6.08 $6.40 $6.74 $7.06 $7.40 $7.75 $8.12 $8.52 $8.52 $8.52 $8.52
Total Cost/oz $0 $26.77 $13.63 $14.02 $13.27 $12.49 $12.82 $13.16 $13.48 $13.81 $14.17 $14.54 $14.93 $14.93 $14.93 $14.93
P&P Silver Reserves (ozs) 0 -733,521 -4,547,830 -8,966,214 -15,593,791 -23,878,263 -31,748,510 -39,225,246 -46,328,145 -53,075,898 -59,486,264 -65,576,112 -71,361,467 -77,146,823 -82,932,178 -88,717,533
Gross Silver Resource (ozs) 43,400,000 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418 77,170,418
Capital Expenditures 40 65 9 29 7 6 6 6 6 6 6 6 6 6 6 6
Matehuapil Project, Mexico (60%) 8,324 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
Stripping Ratio 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Gold Produciton (oz) 44,891 44,891 44,891 44,891 44,891 44,891 44,891 44,891 44,891 44,891 44,891 44,891 44,891
gold grade g/t 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
gold recovery % (assumed) 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85%
Mining Cost Per Ton Material 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25
Mining Cost Per Ton Ore 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Crush/Leach/Lab Cost Per Ton Ore 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Minesite SG&A Per Ton Ore 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Refining, Shipping, I/C Mgmt fee Per Ounce 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Total Cost Per Ton Ore 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50
Total Cash Cost/oz $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768 $768
Total Cost/oz $880 $880 $880 $880 $880 $880 $880 $880 $880 $880 $880 $880 $880
P&P Gold Reserves (ozs) -52,814 -105,627 -158,441 -211,254 -264,068 -316,881 -369,695 -422,508 -475,322 -528,135 -580,949 -633,762 -686,576
Gross Gold Resource (ozs) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Capital Expenditures 10 40 3 3 3 3 3 3 3 3 3 3 3 3 3
Panuco Panuco Panuco Panuco Panuco Muleros Muleros Muleros Muleros Muleros Muleros
Panuco/Muleros/El Cristo: Zacatecas, Mexic 0 0 0 0 0 250 500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Aggregate Tonnage 0 0 0 0 91,250 273,750 638,750 1,003,750 1,368,750 1,733,750 2,098,750 2,463,750 2,828,750 3,193,750 3,558,750
Silver Production (ounces) 0 0 0 0 0 1,566,801 3,133,601 6,267,203 6,267,203 6,267,203 4,178,135 4,178,135 4,178,135 4,178,135 4,178,135 4,178,135
silver grade g/t 1,154.0 879.0 879.0 879.0 879.0 600.0 600.0 600.0 600.0 600.0 400.0 400.0 400.0 400.0 400.0 400.0
silver recovery % 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89%
Zinc Produciton (lbs) 0 0 0 0 0 2,615,207 5,230,414 10,460,827 10,460,827 10,460,827 7,845,620 7,845,620 7,845,620 7,845,620 7,845,620 7,845,620
zinc grade % 4.00% 4.00% 4.00% 4.00% 4.00% 2.00% 2.00% 2.00% 2.00% 2.00% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
zinc recovery % 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65%
Lead Produciton (lbs) 0 0 0 0 0 1,790,411 3,580,822 7,161,643 7,161,643 7,161,643 7,161,643 7,161,643 7,161,643 7,161,643 7,161,643 7,161,643
lead grade % 3.31% 2.39% 2.39% 2.39% 2.39% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
lead recovery % 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89% 89%
Gold Produciton (oz) 0 0 0 0 0 2,054 4,108 8,215 8,215 8,215 4,108 4,108 4,108 4,108 4,108 4,108
gold grade g/t 2.5 1.5 1.5 1.5 1.5 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5
gold recovery % 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70%
Tonnes of Conc Shipped 0 0 0 0 0 5,530 11,060 22,119 22,119 22,119 19,838 19,838 19,838 19,838 19,838 19,838
Mining Cost per Tonne 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00
Milling Cost per Tonne 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66 16.66
G & A Cost per Tonne 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84
Site Services Cost per Tonne 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31
Operating Cost per tonne milled 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81 71.81
Payable Silver 0 0 0 0 1,468,092 2,936,184 5,872,369 5,872,369 5,872,369 3,914,913 3,914,913 3,914,913 3,914,913 3,914,913 3,914,913
Payable Zinc 0 0 0 0 1,961,405 3,922,810 7,845,620 7,845,620 7,845,620 5,884,215 5,884,215 5,884,215 5,884,215 5,884,215 5,884,215
Payable Lead 0 0 0 0 1,342,808 2,685,616 5,371,232 5,371,232 5,371,232 5,371,232 5,371,232 5,371,232 5,371,232 5,371,232 5,371,232
Payable Gold 0 0 0 0 1,540 3,081 6,162 6,162 6,162 3,081 3,081 3,081 3,081 3,081 3,081
Total Cash Cost/oz $0.00 $0.00 $0.00 $0.00 $0.00 $1.17 $1.17 $1.17 $1.17 $1.17 $3.29 $3.29 $3.29 $3.29 $3.29 $3.29
Total Cost/oz $0.00 $0.00 $0.00 $0.00 $0.00 $2.62 $2.62 $2.62 $2.62 $2.62 $4.73 $4.73 $4.73 $4.73 $4.73 $4.73
P&P Silver Reserves (ozs) 0 0 0 0 0 -1,760,450 -5,281,350 -12,323,151 -19,364,952 -26,406,752 -31,101,286 -35,795,820 -40,490,354 -45,184,887 -49,879,421 -54,573,955
M&I Silver Resource (ozs) 83,000,000 189,000,000 295,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000 401,000,000
Capital Expenditures 5 10 10 10 100 1.0 2.0 3.9 3.9 33.9 3.9 3.9 3.9 3.9 3.9 33.9

San Manuel-San Gil, Zacatecas Mexico 0 0 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Aggregate Tonnage 0 0 547,500 1,095,000 1,642,500 2,190,000 2,737,500 3,285,000 3,832,500 4,380,000 4,927,500 5,475,000
Silver Production (ounces) 0 0 624,960 624,960 624,960 624,960 624,960 624,960 624,960 624,960 624,960 624,960
silver grade g/t 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
silver recovery % 71% 71% 71% 71% 71% 71% 71% 71% 71% 71% 71% 71%
Zinc Produciton (lbs) 0 0 6,638,602 6,638,602 6,638,602 6,638,602 6,638,602 6,638,602 6,638,602 6,638,602 6,638,602 6,638,602
zinc grade % 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
zinc recovery % 55% 55% 55% 55% 55% 55% 55% 55% 55% 55% 55% 55%
Lead Produciton (lbs) 0 0 267,556 535,112 535,112 535,112 535,112 535,112 535,112 535,112 535,112 535,112
lead grade % 0.00% 0.00% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
lead recovery % 67% 67% 67% 67% 67% 67% 67% 67% 67% 67% 67% 67%
Copper Produciton (lbs) 0 0 21,726,333 21,726,333 21,726,333 21,726,333 21,726,333 21,726,333 21,726,333 21,726,333 21,726,333 21,726,333
copper grade % 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
copper recovery % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
Gold Produciton (oz) 0 0 1,408 1,408 1,408 1,408 1,408 1,408 1,408 1,408 1,408 1,408
gold grade g/t 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
gold recovery % 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Mining Cost per Tonne 18.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00
Milling Cost per Tonne 13.00 19.50 19.50 19.50 19.50 19.50 19.50 19.50 19.50 19.50 19.50 19.50
G & A Cost per Tonne 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50
Site Services Cost per Tonne 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Cost per tonne milled 35.50 51.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00
Cu Conc 39,420 39,420 39,420 39,420 39,420 39,420 39,420 39,420 39,420 39,420
Zn Conc 5,791 5,791 5,791 5,791 5,791 5,791 5,791 5,791 5,791 5,791
Pb Conc 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456
Total Tonnes of Conc Shipped 0 0 46,667 46,667 46,667 46,667 46,667 46,667 46,667 46,667 46,667 46,667
Smelting/Refining Costs 4,106,378 4,106,378 4,106,378 4,106,378 4,106,378 4,106,378 4,106,378 4,106,378 4,106,378 4,106,378
Payable Silver 0 0 593,712 593,712 593,712 593,712 593,712 593,712 593,712 593,712 593,712 593,712
Payable Zinc 0 0 3,319,301 3,319,301 3,319,301 3,319,301 3,319,301 3,319,301 3,319,301 3,319,301 3,319,301 3,319,301
Payable Lead 0 0 254,178 508,356 508,356 508,356 508,356 508,356 508,356 508,356 508,356 508,356
Payable Copper 0 0 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911
Payable Gold 0 0 1,197 1,197 1,197 1,197 1,197 1,197 1,197 1,197 1,197 1,197
Total Cash Cost/lb Cu $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.93 $0.92 $0.92 $0.92 $0.92 $0.92 $0.92 $0.92 $0.92 $0.92
Total Cost/lb Cu $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1.40 $1.69 $1.69 $1.69 $1.69 $1.69 $1.69 $1.69 $1.69 $1.69
P&P Copper Reserves (ozs) 0 0 0 0 0 0 -24,140,370 -48,280,740 -72,421,110 -96,561,480 -120,701,850 -144,842,220 -168,982,590 -193,122,960 -217,263,330 -241,403,700
M&I Copper Resource (ozs) 0 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000 352,736,000
Capital Expenditures 1 3 5 5 6.0 85.0 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2
Palca, Peru 0 0 0 0 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Payable Silver (ounces) 0 0 0 0 1,795,659 1,795,659 1,795,659 1,795,659 1,795,659 1,795,659 1,795,659 1,795,659 1,795,659
payable rate % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
Silver Production (ounces) 0 0 0 0 1,995,177 1,995,177 1,995,177 1,995,177 1,995,177 1,995,177 1,995,177 1,995,177 1,995,177
silver grade g/t 400.0 400.0 400.0 400.0 200.0 200.0 200.0 200.0 200.0 200.0 200.0 200.0 200.0
silver recovery % 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85%
Zinc Produciton (lbs) 0 0 0 0 12,070,185 12,070,185 12,070,185 12,070,185 12,070,185 12,070,185 12,070,185 12,070,185 12,070,185
zinc grade % 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
zinc recovery % 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75%
Lead Produciton (lbs) 0 0 0 0 12,874,864 12,874,864 12,874,864 12,874,864 12,874,864 12,874,864 12,874,864 12,874,864 12,874,864
lead grade % 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
lead recovery % (assumed) 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Gold Produciton (oz) 0 0 0 0 9,389 9,389 9,389 9,389 9,389 9,389 9,389 9,389 9,389
gold grade g/t 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
gold recovery % (assumed) 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Total Cost Per Ton Ore $85 $85 $85 $86 $86 $86 $86 $86 $86 $86 $86 $86 $86
Total Cash Cost/oz $0.00 $0.00 $0.00 $0.00 $0.00 ($3.76) ($3.76) ($3.76) ($3.76) ($3.76) ($3.76) ($3.76) ($3.76) ($3.76)
Total Cost/oz $0.00 $0.00 $0.00 $0.00 $0.00 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32
P&P Silver Reserves (ozs) 0 0 0 0 -2,347,267 -4,694,534 -7,041,801 -9,389,068 -11,736,334 -14,083,601 -16,430,868 -18,778,135 -21,125,402
M&I Silver Resource (ozs) 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209 38,585,209
Capital Expenditures 1 1 1 1 125 3 3 3 3 3 3 3 3 3

Payable Production of Ag (oz) 0 440,113 3,242,162 3,755,627 5,633,441 8,509,893 10,219,607 14,616,965 14,299,204 13,997,331 11,753,095 11,480,654 11,221,836 11,221,836 11,221,836 11,221,836
Total Sales of Ag (oz) 0 440,113 3,242,162 3,755,627 5,633,441 8,509,893 10,219,607 14,616,965 14,299,204 13,997,331 11,753,095 11,480,654 11,221,836 11,221,836 11,221,836 11,221,836
Payable Production of Zn (lb) 0 0 0 0 0 1,961,405 7,242,111 23,235,106 23,235,106 23,235,106 21,273,701 21,273,701 21,273,701 21,273,701 21,273,701 21,273,701
Total Sales of Zn (oz) 0 0 0 0 0 1,961,405 7,242,111 23,235,106 23,235,106 23,235,106 21,273,701 21,273,701 21,273,701 21,273,701 21,273,701 21,273,701
Payable Production of Pb (lb) 0 0 1,255,299 1,544,984 2,317,476 4,239,652 5,836,639 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297
Total Sales of Pb (oz) 0 0 1,255,299 1,544,984 2,317,476 4,239,652 5,836,639 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297 21,651,297
Payable Production of Cu (lb) 0 0 0 0 0 0 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911
Total Sales of Cu (oz) 0 0 0 0 0 0 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911 20,965,911
Payable Production of Au (oz) 0 0 0 44,891 44,891 46,432 50,578 63,048 63,048 63,048 59,967 59,967 59,967 59,967 59,967 59,967
Total Sales of Au (oz) 0 0 0 44,891 44,891 46,432 50,578 63,048 63,048 63,048 59,967 59,967 59,967 59,967 59,967 59,967
Spot Silver Price $21.82 $22.04 $22.18 $22.36 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51
Realized Silver Price $21.82 $22.04 $22.18 $22.36 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51 $22.51
Silver Revenues $0 $9,701,401 $71,914,404 $83,992,720 $126,803,113 $191,549,179 $230,033,131 $329,013,265 $321,860,777 $315,065,913 $264,550,408 $258,418,044 $252,592,298 $252,592,298 $252,592,298 $252,592,298
Spot Zinc Price $1.00 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03
Realized Zinc Price $1.00 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03 $1.03
Zinc Revenues $0 $0 $0 $0 $0 $2,028,710 $7,490,621 $24,032,410 $24,032,410 $24,032,410 $22,003,700 $22,003,700 $22,003,700 $22,003,700 $22,003,700 $22,003,700
Spot Lead Price $1.04 $1.05 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04
Realized Lead Price $1.04 $1.05 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04 $1.04
Lead Reveneus $0 $0 $1,311,115 $1,613,680 $2,420,519 $4,428,164 $6,096,158 $22,613,997 $22,613,997 $22,613,997 $22,613,997 $22,613,997 $22,613,997 $22,613,997 $22,613,997 $22,613,997
Spot Copper Price $3.66 $3.64 $3.56 $3.43 $3.30 $3.17 $3.05 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96
Realized Copper Price $3.66 $3.64 $3.56 $3.43 $3.30 $3.17 $3.05 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96 $2.96
Copper Reveneus $0 $0 $0 $0 $0 $0 $63,983,785 $62,049,435 $62,049,435 $62,049,435 $62,049,435 $62,049,435 $62,049,435 $62,049,435 $62,049,435 $62,049,435
Spot Gold Price $1,309.75 $1,316.47 $1,327.05 $1,352.85 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50
Realized Gold Price $1,309.75 $1,316.47 $1,327.05 $1,352.85 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50 $1,386.50
Gold Revenues $0 $0 $0 $60,731,438 $62,242,036 $64,377,792 $70,126,027 $87,415,481 $87,415,481 $87,415,481 $83,143,969 $83,143,969 $83,143,969 $83,143,969 $83,143,969 $83,143,969
Total Capital Expenditures 46 88 64 48 117 97 141 21 21 51 21 21 21 21 21 51

INCOME STATEMENT ($MM)

REVENUES 5.43 12.13 76.05 149.35 193.37 264.27 379.61 527.36 520.21 513.41 456.60 450.47 444.64 444.64 444.64 444.64
OPERATING EXPENSES 1.00 9.67 23.53 28.66 38.23 48.62 83.38 128.18 128.18 128.18 128.18 128.18 128.18 128.18 128.18 128.18
GROSS PROFIT 4.43 2.47 52.52 120.69 155.14 215.66 296.23 399.19 392.03 385.24 328.42 322.29 316.46 316.46 316.46 316.46
SGA 5.00 5.20 5.41 5.62 5.85 6.08 6.33 6.58 6.84 7.12 7.40 7.70 8.01 8.33 8.66 9.00
EXPLORATION EXPENSE 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
STOCK OPTIONS 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
DDA 0.00 2.82 20.80 24.10 36.14 47.44 57.69 74.78 72.74 70.81 65.95 64.20 62.54 62.54 62.54 62.54
ASSET RETIREMENT & RECLAIMATION 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
WRITE DOWNS
OPERATING INCOME -6.57 -11.56 20.31 84.97 107.15 156.13 226.21 311.82 306.45 301.31 249.07 244.39 239.92 239.60 239.26 238.92
INTEREST INCOME 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
INTEREST AND FINANCING COST 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EARLY RETIREMENT OF DEBT
GAIN ON SALE OF ASSETS
OTHER EXPENSES
FOREIGN EXCHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TAX & MINING ROYALTIES EXPENSE -2.10 -3.70 6.50 27.19 34.29 49.96 72.39 99.78 98.06 96.42 79.70 78.21 76.77 76.67 76.56 76.45
MINORITY INTERESTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) -4.46 -7.86 13.81 57.78 72.86 106.17 153.82 212.04 208.38 204.89 169.37 166.19 163.14 162.93 162.70 162.46
OTHER INCOME 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
COMPREHENSIVE INCOME (LOSS) -4.46 -7.86 13.81 57.78 72.86 106.17 153.82 212.04 208.38 204.89 169.37 166.19 163.14 162.93 162.70 162.46
EPS -0.46 -0.49 0.71 2.98 3.76 5.48 7.95 10.95 10.76 10.58 8.75 8.58 8.43 8.42 8.40 8.39
WEIGHTED AVE SHARES OUT 9.70 16.14 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36 19.36
AGGREGATE DEFICIT -17.78 -25.64 -11.83 45.95 118.81 224.98 378.81 590.85 799.23 1004.12 1173.49 1339.68 1502.82 1665.75 1828.45 1990.91
EBITDA -8.67 -12.43 47.61 136.26 177.57 253.54 356.29 486.39 477.25 468.54 394.72 386.80 379.23 378.81 378.37 377.91
CF/Share -0.36 -0.25 1.84 4.28 5.68 7.99 10.98 14.87 14.57 14.29 12.21 11.95 11.71 11.70 11.69 11.67

CASH FLOW STATEMENT

EARNINGS (LOSS) -4.46 -7.86 13.81 57.78 72.86 106.17 153.82 212.04 208.38 204.89 169.37 166.19 163.14 162.93 162.70 162.46
DDA 0.00 2.82 20.80 24.10 36.14 47.44 57.69 74.78 72.74 70.81 65.95 64.20 62.54 62.54 62.54 62.54
STOCK OPTION COMPENSATION 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
LOSS ON DERIVATIVES
DEFERRED SHARE UNITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OTHER 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CASH FLOWS FROM OPERATIONS -3.46 -4.04 35.61 82.87 110.00 154.61 212.51 287.82 282.13 276.70 236.32 231.39 226.69 226.47 226.24 226.01
NET CHANGE IN NON-CASH WORKING CAP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(INC)/DEC IN SHORT-TERM INVESTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EXPLORATOIN AND DEVELOPMENT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ISSUE OF LOANS RECEIVABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PURCHASE OF CAPITAL ASSETS -46.00 -87.50 -64.28 -47.95 -117.45 -96.59 -140.81 -20.95 -20.95 -50.95 -20.95 -20.95 -20.95 -20.95 -20.95 -50.95
OTHER
NET CHANGES IN NON-CASH WORKING CA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CASH FLOWS FROM INVESTING ACTIVITIE -46.00 -87.50 -64.28 -47.95 -117.45 -96.59 -140.81 -20.95 -20.95 -50.95 -20.95 -20.95 -20.95 -20.95 -20.95 -50.95
PROCEEDS FROM LOANS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
REPAYMENTS OF LOANS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PROCEEDS FROM STOCK ISSUANCE, NET 50.00 100.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OTHER 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CASH FLOWS FROM FINANCING ACTIVITIE 50.00 100.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
INC (DEC) IN CASH AND EQUIV 0.54 8.46 21.33 34.93 -7.45 58.02 71.71 266.87 261.17 225.75 215.37 210.44 205.73 205.52 205.29 175.05
CASH AT BEGINNING OF YEAR 0.00 0.54 9.00 30.33 65.26 57.81 115.83 187.54 454.41 715.59 941.33 1156.70 1367.14 1572.87 1778.38 1983.67
CASH AT END OF THE YEAR 0.54 9.00 30.33 65.26 57.81 115.83 187.54 454.41 715.59 941.33 1156.70 1367.14 1572.87 1778.38 1983.67 2158.73

BALANCE SHEET
CASH AND EQUIVALENTS 0.54 9.00 30.33 65.26 57.81 115.83 187.54 454.41 715.59 941.33 1156.70 1367.14 1572.87 1778.38 1983.67 2158.73
SHORT-TERM INVESTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ACCOUNTS RECIEVABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ORE INVENTORIES 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
UNREALIZED GAINS ON DERIVATIVES 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
FUTURE INCOME TAXES
PREPAID EXPENSES & OTHER CURRENT A 0.77 1.11 4.30 7.97 10.17 13.71 19.48 26.87 26.51 26.17 23.33 23.02 22.73 22.73 22.73 22.73
PROPERTY PLANT & EQUIPMENT 72.20 162.52 247.60 319.65 473.24 617.28 815.77 911.51 1005.20 1126.96 1213.87 1299.02 1382.52 1466.01 1549.50 1663.00
CONSTRUCTION IN PROGRESS
INVESTMENT IN NON-PRODUCTING PROPE 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
DIRECT SMELTING ORE
FUTURE INCOME TAXES
OTHER ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL ASSETS 79.01 178.13 287.74 398.38 546.72 752.32 1028.29 1398.29 1752.80 2099.97 2399.40 2694.68 2983.62 3272.63 3561.41 3849.96
ACCOUNTS PAYABLE & ACCRUED LIABILIT 5.10 5.97 7.35 7.87 8.82 9.86 13.34 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82
ACCRUED INTEREST PAYABLE
INCOME TAXES PAYABLE
DERIVATIVES
CURRENT PORTION OF LT DEBT
LONG-TERM DEBT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ASSET RETIREMENT OBLIGATION 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FURTURE INCOME TAXES 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OTHER LIABILITIES AND PROVISIONS
OTHER LIABILITIES 53.65 59.76 104.18 156.52 231.05 329.44 448.11 601.59 747.72 889.99 1020.05 1149.15 1274.94 1401.02 1527.11 1653.19
TOTAL LIABILITIES 58.75 65.73 111.53 164.39 239.87 339.30 461.45 619.40 765.53 907.81 1037.87 1166.97 1292.76 1418.84 1544.92 1671.01
MINORITY INTEREST IN SUBSIDIARIES
ORDINARY SHARES 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
ADDITIONAL PAID IN CAPITAL 37.45 137.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45 187.45
ACCUMULATED SURPLUS (DEFICIT) -17.78 -25.64 -11.83 45.95 118.81 224.98 378.81 590.85 799.23 1004.12 1173.49 1339.68 1502.82 1665.75 1828.45 1990.91
TOTAL EQUITY 20.26 112.40 176.21 233.99 306.85 413.02 566.84 778.88 987.27 1192.16 1361.53 1527.71 1690.86 1853.79 2016.49 2178.95
EQUITY + LIABILITIES 79.01 178.13 287.74 398.38 546.72 752.32 1028.29 1398.29 1752.80 2099.97 2399.40 2694.68 2983.62 3272.63 3561.41 3849.96
NET DEBT -0.54 -9.00 -30.33 -65.26 -57.81 -115.83 -187.54 -454.41 -715.59 -941.33 -1156.70 -1367.14 -1572.87 -1778.38 -1983.67 -2158.73
BOOK VALUE $2.09 $6.96 $9.10 $12.09 $15.85 $21.34 $29.28 $40.23 $51.00 $61.58 $70.33 $78.92 $87.34 $95.76 $104.16 $112.56

Valuation Methodology & Investment Risks

Valuation Methodology
In the Precious Metals and Emerging Miners space, we utilize NAV methodology to value developing and operational mining plays as this method
encompasses key variables such as: price, operating costs, up-front capital, mine life, time-value of money, and the corporate balance sheet. This
method allows for these variables to change over time.
Our individual asset values use Reserves and Resources to determine project life. Early-stage exploration properties may be accounted for using 3%
of current in-situ value. Where possible, forward commodity and exchange rate price strips are used to generate revenues and modify costs. Costs
are built from historic results, modifications of existing studies, or from independent studies of like deposits. Full costing (on-site & off-site), stripping
ratios, oil price, and currency rates are used to determine costs per ton. Relatively recent contract smelting and refining terms, payable rates, and
shipping rates are used. Estimates of capital expenditures for new projects or brownfield expansions rely on recent detailed costing studies and
various rules of thumb regarding both upfront and sustaining capital costs.
For precious metal dominated development projects, we derive an average “precious metal discount rate” from the market price of the largest
precious metal equities we have modeled. Currently, we calculate a discount rate near 6%. Similarly, we determine a “base metal discount rate” by
utilizing the 3 large copper producers we have modeled. Our calculated base metal discount rate is approximately 10%.
Gold companies usually trade at higher financial multiples and lower discount rates due to the expected low beta to market of the underlying
commodity, which frequently leads to the aggressive practice of evaluating gold projects on a zero discount rate. Back calculation of discount rates
for large, multi-asset miners supports our view of discount rates, however. Most importantly, 1) we remain agnostic to price forecasting, 2) utilize
consistent discount rates between projects and companies and 3) present investors with an asset by asset breakdown of NAV. By following this
methodology we avoid personal biases regarding commodity price expectations and relative risk perceptions, thus providing a framework for the
investor to apply their own commodity price views and risk handicaps.
Our ratings and price targets are based upon a combination of value and leverage relative to a companies peer group.
Investment Risks
Political Risk: With worldwide assets, miners are subject to significant political risk. Despite compliance with national laws, provincial or local
opposition (legal or otherwise) may impact operations. Changing federal laws and regulations may negatively impact project economics, regardless
of prior agreements. Environmental groups and other non-governmental organizations may actively pursue tactics (legal or otherwise) that can
negatively impact miners.
Operational and Technical Risk: The mining industry contends with risks associated with large-scale equipment, earth moving operations, and
heavily strained processing equipment. These operations are subject to uncertainties that must be recognized and managed to avoid major, and
often catastrophic, negative events. All mines are fundamentally unique, and thus dangers must constantly be investigated and managed. Similarly,
new projects are subject to technical risks, and design flaws may result from applying an existing process to a new ore body.
Commodity Price Risk: Nearly all commodity-related equities are exposed to changes in the underlying commodity. Investors may seek this
exposure for the upside potential, but must recognize that leverage cuts both ways. Lower commodity prices could undoubtedly make attractive
projects less economically viable.

Market Risk: While the market sentiment toward the group is often tied closely with commodity prices (and risk), it may also be impacted by
business cycle expectations and general opinion as to the legitimacy of the sector.
Financing and Dilution Risk: The cost of financing changes beyond the control of any company, and the availability of capital can appear or
disappear rapidly. If a miner does not access the capital markets when conditions are favorable (either when the stock price is strong or debt is
inexpensive), then management might find themselves short of capital and forced to take very expensive debt financing or issue equity at very low
prices or risk going bankrupt altogether, both to the detriment of existing shareholders.
Royalty Risk in the US and Abroad: Mining companies in the US and abroad may be subject to a changing royalty regime which can negatively
impact profitability and/or the economic viability of developing projects. Currently in the U.S. Congress there are two bills. One would impose gross
revenue royalties while the other would impose a net revenue royalty. Passage of either bill would prove detrimental to exploration and mining
investment in the US.
Company Specific Risks
Our Buy rating reflects our view that Golden Minerals offers investors exposure to a company with a deep portfolio of early stage, high return assets
located in Latin America. Risks to our price target include 1)Permitting and Execution. Building a mine is no easy task, even for experienced mine
builders. While companies extensively plan for construction and meticulously estimate costs and timelines, more often than not, construction does
not go exactly as planned. In addition, depending on the country and jurisdiction, various permits are required for both exploration and construction.
The timing and certainty of receiving permits always presents risk, regardless of compliance with laws and protocol. 2) Exploration Risk. Much of the
Company’s project pipeline is still in early stages of exploration and these project have not yet been fully drill, nor have economic studies or mine
plans been constructed. There remains uncertainty until further moneys are spent on detailed investigation to provide statistical certainty regarding
grades, recoveries, ore body morphologies, and economic viability. 3)Liquidity/Dilution. We expect future equity raises to move the flagship asset
into production. For companies without operating assets, capital raising is the lifeblood of development – allowing raw assets to evolve into mines.
Equity is often the preferred route to reach production status. Additional equity offerings should generate additional trading volume, which allows
larger institutional shareholders to enter.

Disclosures
Disclaimer:
The information presented in this report is for informational purposes only. It was prepared based on information and sources that we believe to be
reliable, but we make no representations or guarantees as to the accuracy or completeness of the information contained herein. This report is not to
be construed as an offer to sell or a solicitation of an offer to buy any security. The opinions expressed in this report may change without notice.
Certification:
Each analyst identified in this report certifies in accordance with SEC Regulation AC, with respect to any company and securities discussed in this
report, that the recommendations and opinions expressed accurately reflect the analyst's personal views and no part of the analyst's compensation
was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed herein.
Required Disclosures:
No analyst who participated in the creation of this report owns securities issued by the subject company.
Dahlman Rose & Company, LLC, and/or its affiliates may have positions in the securities discussed in this report. However, none of those positions
equal or exceed 1% of the equity securities outstanding for the subject company.
Dahlman Rose & Company, LLC, and/or any of its analysts, officers or employees, or any household members do not serve as an officer, director or
advisory board member of any of the companies discussed in this report.
Dahlman Rose & Company, LLC may seek to be a financial advisor or engage in investment banking services with Golden Minerals Company, and
as such, may receive compensation for such services over the next three to twelve months. As a result, investors should be aware that the firm might
have a conflict of interest that could affect the objectivity of this report. During the past 12 months Dahlman Rose & Company acted as joint lead
manager for Golden Minerals Company's initial public offering of common stock.
Dahlman Rose & Company, LLC is not a tax or legal advisor and provides no legal or tax advice or opinions with respect to the securities
recommended in this report.
Dahlman Rose & Company, LLC does not make a market in the securities of this issuer.
Stock Ratings:
Dahlman Rose & Company, LLC assigns the following ratings to the securities of its subject companies:
Buy – The fundamentals/valuations of the subject company are improving and the investment return is expected to be 5 to 15 percentage points
higher than the general market return.
Sell – The fundamentals/valuations of the subject company are deteriorating and the investment return is expected to be 5 to 15 percentage points
lower than the general market return.
Hold – The fundamentals/valuations of the subject company are neither improving nor deteriorating and the investment return is expected to be in
line with the general market return.

Ratings Distribution:
Ratings Distribution & Investment Banking Disclosure

Rating Count Ratings Distribution* Count Investment Banking**
Buy -rated 101 59.10 33 32.67
Hold -rated 67 39.20 22 32.84
Sell -rated 3 1.80 1 33.33

DRCO AUMN CoNote 2010-10-01

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EQUITY RESEARCH

MEMBER: FINRA/SIPC www.dahlmanrose.com

MEMBER: FINRA/SIPC 2 www.dahlmanrose.com

MEMBER: FINRA/SIPC 3 www.dahlmanrose.com

Exhibit 1: Location Map Of Golden's Principle Assets

Source: Company Website

MEMBER: FINRA/SIPC 4 www.dahlmanrose.com

MEMBER: FINRA/SIPC 5 www.dahlmanrose.com

Source: Company Presentation — June 2010

The silver-base-metal mineralization at El Quevar is of epithermal origin (like many deposits

MEMBER: FINRA/SIPC 6 www.dahlmanrose.com

The El Quevar property is 100% owned/controlled by Golden Minerals and contains 13

Exhibit 3: Major Exploration Targets within the El Quevar Concession

Source: Company Presentation — June 2010

MEMBER: FINRA/SIPC 7 www.dahlmanrose.com

Yaxtché has been interpreted by Golden Minerals as being of intermediate sulfidation

MEMBER: FINRA/SIPC 8 www.dahlmanrose.com

Exhibit 4: Generalized Geology of The Yaxtche Zone

Source: Company website

Golden Minerals expects a preliminary economic assessment which has conceptualized

MEMBER: FINRA/SIPC 9 www.dahlmanrose.com

Exhibit 5: El Quevar Conceptual Plan

Source: Company Presentation — September 2010

Early-Stage Drilling Target Projects – Mexico & Peru

MEMBER: FINRA/SIPC 10 www.dahlmanrose.com

Exhibit 6: Location Of Major Projects In Mexico

Source: Company website

The “Zacatecas Project”

MEMBER: FINRA/SIPC 11 www.dahlmanrose.com

Exhibit 7: The "Zacatecas Project" and Principle Target Areas

Source - Company Presentation — June 2010

The La Pinta Project

MEMBER: FINRA/SIPC 12 www.dahlmanrose.com

Exhibit 8: La Pinta Property Location.

Source: Company Presentation — June 2010

The Matehuapil Project

MEMBER: FINRA/SIPC 13 www.dahlmanrose.com

Exhibit 9: Geology, Alteration, and Gold at the Rabioso Project

Source: Company Presentation — September 2010

Target Delineation Projects – Mexico, Chile & Peru

Royalty & Joint Venture Options

MEMBER: FINRA/SIPC 14 www.dahlmanrose.com

Mining Services – San Cristóbal - Bolivia

MEMBER: FINRA/SIPC 15 www.dahlmanrose.com

MEMBER: FINRA/SIPC 16 www.dahlmanrose.com

Exhibit 10: Key Assumptions El Quevar Project

El Quevar Units Assumption

Source: Dahlman Rose & Co. estimates

Exhibit 11: Key Assumptions Matehuapil Project

Source: Dahlman Rose & Co. estimates

MEMBER: FINRA/SIPC 17 www.dahlmanrose.com

Exhibit 12: Key Assumptions Zacatecas Project

Source: Dahlman Rose & Co. estimates

Exhibit 13: Key Assumptions San Manuel - San Gil Project

Source: Dahlman Rose & Co. estimates

MEMBER: FINRA/SIPC 18 www.dahlmanrose.com

Exhibit 14: Key Assumptions Palca Asset

Source: Dahlman Rose & Co. estimates

MEMBER: FINRA/SIPC 19 www.dahlmanrose.com

Exhibit 15: Calculated NAV Breakdown by Asset

Shares Out 9.7

NAV/Share IRR NAV

Total Operating NAV 103.92