777 (Canada)

Project Overview

The 777 mine is an underground copper, zinc, gold, and silver mine located within the Flin Flon Greenstone Belt (“FFGB”), immediately adjacent to Hudbay’s principal concentrator in Flin Flon, Manitoba. Development of the 777 mine commenced in 1999 and commercial production began in 2004. The anticipated mine life is until 2020.

Ore produced at the 777 mine is transported to Hudbay’s Flin Flon concentrator for processing into copper and zinc concentrates. Copper concentrate is sold to third party purchasers and zinc concentrate is sent to Hudbay’s Flin Flon zinc plant where it is further processed into special high grade zinc before being sold to third party purchasers.

777 is located within the FFGB in the Canadian Shield. Within the Canadian Shield are large, deformed remnants of ancient volcanic-sedimentary terrain known as greenstone belts, which historically have been proven locations of base and precious metals. The orebodies of the FFGB occur in an early Proterozoic island-arc assemblage that stretches for an exposed length of 250 kilometres east-west and 75 kilometres north-south. The deposits are copper-zinc volcanogenic massive sulfide (VMS) type, rich in gold and silver, and hosted in both felsic and mafic volcanic rocks, with the felsic type hosting the largest deposits.

Precious Metal Purchase Agreement

On August 7, 2012, Silver Wheaton entered into an agreement with Hudbay to acquire 100% of the life of mine silver production and 100% of the life of mine gold production from Hudbay’s 777 mine until the later of the end of 2016 or until Hudbay’s Constancia mine satisfies a completion test, after which the gold stream will be reduced to 50% for the remainder of the mine life.

Silver Wheaton paid Hudbay cash consideration of US$455 million. In addition, Silver Wheaton will make ongoing payments of the lesser of US$5.90 per ounce of silver and US$400 per ounce of gold (both subject to an inflationary adjustment of 1% beginning in the fourth year) or the prevailing market price per ounce of silver and gold delivered. Silver Wheaton will not share in any ongoing capital or exploration expenditures at the various mines.

Aljustrel (Portugal)

Project Overview

The Aljustrel copper-zinc-lead-silver mine is located in Portugal and is 100% owned by I’M SGPS, a private company who purchased the mine from Lundin Mining Corporation in early 2009. The mine was on care and maintenance for fourteen years prior to being restarted by Lundin in December 2007. In November 2008, Aljustrel was placed back on care and maintenance following a decline in metal prices.

Aljustrel has been operated sporadically by I’M SGPS since 2008. As part of an agreement with I'M SGPS dated July 16, 2014, Silver Wheaton agreed to waive its rights to silver contained in copper concentrate at the Aljustrel mine but retains a stream on future silver that may be produced from the zinc and lead ores.

Precious Metal Purchase Agreement

Silver Wheaton acquired Silverstone Resources Corp. in May 2009, giving Silver Wheaton the right to purchase 100% of the life of mine silver production from the Aljustrel mine site for the lesser of US$3.90 per ounce of silver (subject to an annual inflationary adjustment) or the prevailing market price per ounce of silver delivered.

Barrick Mines (Lagunas Norte, Pierina, and Veladero)

The Lagunas Norte mine, Pierina mine, and Veladero mine are owned and operated by Barrick Gold Corp. (“Barrick”). The Lagunas Norte gold-silver mine is located in north-central Peru, 175 kilometres north of Barrick’s Pierina mine. The Lagunas Norte mineralization occurs on the 185 square kilometre Alto Chicama property. The mineralization is of the high sulfidation type. It is disseminated and hosted in variably brecciated sedimentary rocks as well as in volcanic breccias and tuffs. The orebody is mined as an open pit, truck-and-shovel operation, at an average mining rate of 80,000 tonnes per day. Ore is crushed and then transported via truck to the leach pad, while run-of-mine ore is trucked directly to the leach pad. Gold and silver recovered from the leached ore is smelted into doré on-site and shipped to an outside refinery for processing into bullion.

The Pierina mine is located in the Andean Cordillera in the Department of Ancash in north-central Peru, approximately 10 kilometres northwest of the city of Huaraz, at an altitude of approximately 4,100 metres. Closure activities were initiated at Pierina as of August 2013. The mine continues to produce residual gold and silver from the existing heap leach.

The Veladero gold-silver mine is located in the highly prospective Frontera District in the San Juan Province of Argentina, approximately 10 kilometres south of Barrick’s Pascua-Lama project. The Veladero deposit is situated at the north end of the El Indio Gold Belt, a 120 kilometre by 25 kilometre north-trending corridor of Permian to late Miocene volcanic and intrusive rocks. The Veladero deposit is an oxidized, high sulfidation gold-silver deposit hosted by volcaniclastic sediments, tuffs, and volcanic breccias related to a Miocene diatreme-dome complex. Disseminated precious metals mineralization forms a broad, 3 kilometre long by 400 metre to 700 metre wide tabular blanket localized between the 4,000 and 4,350 metre elevations. At Veladero, a conventional open-pit operation, ore is crushed by a two-stage crushing process and then transported via trucks to the leach pad area. Run-of-mine ore is trucked directly to the valley-fill leach pad.

Precious Metal Purchase Agreement

In connection with the Pascua-Lama precious metal purchase agreement, Silver Wheaton has the right to purchase 100% of the payable silver production from the Lagunas Norte mine, Pierina mine (now in closure), and Veladero mine until April 1, 2018 for a production payment of the lesser of US$3.90 and the prevailing market price for each ounce of silver delivered under the agreement. Silver Wheaton's attributable silver production is subject to a maximum of 8% of the silver contained in the ore mined at Veladero during the period.

Cotabambas (Peru)

Project Overview

The Cotabambas copper-gold-silver deposit is located in Peru, South America, and has been systematically explored since 1995. Cotabambas is located in the mountainous terrain of the high Andean Cordillera. Elevations on the property vary between approximately 3,000 and 4,000 metres. The region is characterized by deeply incised river valleys and canyons such as the Apurimac River valley that is 2,000 metres below the Cotabambas Project area.

The Ccalla and Azulccacca zones of the Cotabambas deposit are considered to be examples of porphyry copper deposits. The two host porphyries cover an area about 2.5 kilometres long and 1.5 kilometres wide. Mineralization occurs in hypogene, supergene enrichment and oxide zones within the host porphyries and surrounding diorites. A well-developed leached cap hosts the oxide mineralization. Mineralization occurs as disseminated chalcopyrite and pyrite, pyrite-chalcopyrite stringers or veinlets, and quartz–chalcopyrite–pyrite veinlets. Sulphide mineralization consists of chalcopyrite and pyrite, and gold grades are strongly correlated to copper grades in the hypogene zone. Silver grades are not as strongly correlated to copper grades as they are to gold grades, but are generally elevated where copper–gold mineralization is present. Cotabambas retains exploration potential and Panoro has a number of geophysical, geochemical, structural and principal component analysis targets that could support further work. Panoro considers nine targets to have exploration potential for porphyry and skarn style mineralization.

Early Deposit Precious Metal Purchase Agreement

On March 21, 2016, Silver Wheaton entered into a definitive Early Deposit precious metal purchase agreement with Panoro Minerals Ltd. in respect of the Cotabambas project. Silver Wheaton 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 Silver Wheaton 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, Silver Wheaton will pay a total cash consideration of US$140 million plus an ongoing production payment of the lesser of: i) US$5.90 for each silver ounce and US$450 for each gold ounce (both subject to a 1% annual inflation adjustment starting in the fourth year after the completion test is satisfied) and ii) the prevailing market price. Once certain conditions have been met, Silver Wheaton will advance US$14 million of the total cash upfront consideration, spread over up to nine years.

Cozamin (Mexico)

Project Overview

The underground Cozamin copper-silver-lead-zinc mine is located in the mineral-rich state of Zacatecas, Mexico. Since its commissioning in 2006, the mine has undergone two successful expansions, tripling production levels to the current rate of 3,100 tonnes per day. The underground area of the mine is accessed by either a shaft from the surface or one of two ramps. The mill produces copper, zinc, and lead concentrates that are shipped to the port of Manzanillo for export to world markets.

Production is primarily from the Mala Noche Main Zone, supplemented by ore from the Mala Noche Footwall Zone, which is higher in grade, but narrower widths than the Main Zone. Pyrite is the dominant vein sulphide and occurs as fine disseminations and veinlets, coarse crystalline replacements, and pseudomorphs of epithermal textured carbonate minerals and possible barite. Exploration success has led to significant resource increases and excellent potential exists to continue this expansion.

Precious Metal Purchase Agreement

Silver Wheaton acquired Silverstone Resources Corp. in May 2009 giving Silver Wheaton the right to purchase 100% of the silver production from the Cozamin mine until April 2017 for the lesser of US$4.00 per ounce of silver (subject to an annual inflationary adjustment) or the prevailing market price per ounce of silver delivered.

Keno Hill (Canada)

Project Overview

Alexco Resource Corp. (“Alexco”) commenced production of its silver-lead-zinc Bellekeno mine, located within the Keno Hill District (“District”) in Yukon, Canada, in the third quarter of 2010. The District is historically one of the highest-grade and most prolific silver producing areas in the world. According to the Yukon Government's published Minfile database, from 1913 to 1989, the 240 square kilometre area, which comprises more than 30 historic mines, produced more than 217 million ounces of silver with average grades in excess of 40 ounces per tonne silver, 5% lead, and 3% zinc. The Bellekeno mine, one of the world's highest-grade silver mines with a production grade of up to 1,000 grams per tonne, was Canada's only operating primary silver mine from 2011 to 2013. The conventional flotation mill has a planned production rate of 250 tonnes per day and the mine employs primarily cut and fill mining methods.

Alexco is currently in interim suspension of operations at Bellekeno in order to decrease costs and reposition the District for long-term, sustainable operations. Alexco is rapidly exploring other promising high-grade silver prospects on its other District properties, and has discovered two important new deposits - the Flame & Moth and Bermingham. The continuing discoveries of some of the largest deposits ever in the District point to the prolific and prospective nature of Keno Hill.

Precious Metal Purchase Agreement

On October 2, 2008, Silver Wheaton entered into a silver purchase agreement with Alexco to purchase 25% of the life of mine payable silver produced from the Keno Hill district for an upfront cash payment of US$50 million plus a payment equal to the lesser of US$3.90 (subject to an inflationary adjustment starting in year four after the achievement of specific operating targets) and the prevailing market price per ounce of delivered silver.

On June 6, 2014, the Company amended the Alexco silver purchase agreement to increase the production payment to be a function of the silver price at the time of delivery. In addition, the area of interest was expanded to include properties currently owned by Alexco and properties acquired by Alexco in the future which fall within a one kilometre radius of existing Alexco holdings in the Keno Hill Silver District. The amended silver purchase agreement is conditional on Alexco paying Silver Wheaton US$20 million by December 31, 2015, or at Alexco’s option up to end of December 31, 2016. On December 17, 2015, Silver Wheaton agreed to amend the agreement to extend the outside completion date under the silver purchase agreement to December 31, 2017.

Los Filos (Mexico)

Project Overview

The Los Filos gold-silver mine is located in the Nukay mining district of central Guerrero State in southern Mexico. The Los Filos operation consists of two open pit mines (Los Filos and El Bermejal) and one underground mine, with common heap leach, wet plant and ancillary facilities to produce a final gold doré product on site. The open pit operation began commercial production in January 2008.

The ore bodies at Los Filos consist of iron-gold skarn with minor amounts of copper and silver at the intrusive-limestone contact. Ore bodies also occur with endoskarn and are disseminated within the hydrothermally altered intrusive rocks. The mineralogy of the contact ore bodies is predominantly iron oxides with gold, in associations with lesser quantities of copper, lead, zinc, and arsenic occurring in carbonates and oxides as well as sulfides. Primary minerals are hematite, magnetite, and jasper with lesser amounts of pyrite, chalcopyrite, and arsenopyrite.

Precious Metal Purchase Agreement

On October 15, 2004, Silver Wheaton entered into a silver purchase agreement with Goldcorp to purchase 100% of the payable silver production from the Los Filos mine until the end of 2029 for a production payment of the lesser of US$3.90 (subject to an annual inflationary adjustment) and the prevailing market price for each ounce of silver delivered under the agreement.

Stratoni (Greece)

Project Overview

The Stratoni mine is an underground lead-zinc-silver mine located approximately 4 kilometres from the coastal town of Stratoni in northern Greece. The mine is 100% owned by Hellas Gold S.A., which is 95% owned by Eldorado Gold Corporation and 5% owned by Aktor S.A., Greece's largest construction company. The deposit is a lead-zinc-silver carbonate replacement deposit that is hosted within marble of the Kerdilya Formation. The deposit is localized along the south dipping Stratoni Fault, a major structural feature and important mineralizing corridor in the centre of the Stratoni region. Stratoni has been in operation since September 2005 and produces high quality lead-silver and zinc concentrates. The mine has a capacity of 1,200 tonnes per day and utilizes conventional drift-and-fill mining methods.

Precious Metal Purchase Agreement

On April 23, 2007, Silver Wheaton entered into a silver purchase agreement with European Goldfields Limited, which was acquired by Eldorado Gold Corporation on February 24, 2012, to purchase 100% of the life of mine payable silver produced from the Stratoni mine for an upfront cash payment of US$57.5 million, plus a payment equal to the lesser of US$3.90 per ounce of silver (subject to an annual inflationary adjustment) and the then prevailing market price per ounce of silver delivered. During the term of the silver purchase agreement, Silver Wheaton has a right of first refusal on any future sales of silver streams from any other mine owned by European Goldfields or Hellas Gold, or any of their affiliates.

In October 2015, in order to incentivize additional exploration and potentially extend the limited remaining mine life of Stratoni, Silver Wheaton and Eldorado agreed to modify the Stratoni silver purchase agreement. The primary modification was to increase the production price per ounce of silver delivered to Silver Wheaton over the current fixed price by one of the following amounts: (i) US$2.50 per ounce of silver delivered if 10,000 metres of drilling is completed outside of the existing ore body and within Silver Wheaton’s defined area of interest (“Expansion Drilling”); (ii) US$5.00 per ounce of silver delivered if 20,000 metres of Expansion Drilling is completed; and (iii) US$7.00 per ounce of silver delivered if 30,000 metres of Expansion Drilling is completed. Drilling in all three cases must be completed by December 31, 2020, in order for the agreed upon increase in production price to be initiated.

Toroparu (Republic of Guyana)

Project Overview

The Toroparu gold-copper project is located in the Republic of Guyana, South America. Discovered in 2007, the Toroparu Project has Proven and Probable mineral reserves of 4.1 million ounces of gold contained in 127 million tonnes of ore at a grade of 1.00 g/t Au. The Toroparu Project and surrounding gold anomalies lie at the edge of a large bending zone in the Puruni Shear Corridor, a regional feature that can be traced more than 100 kilometres into the prolific Venezuelan Gold District.

The project has its Environmental Authorization, Mineral Agreement and Fiscal Stability Agreement in place. A pre-feasibility study completed for the Toroparu Project in 2013 at US$1400/oz gold outlined the design of an open pit mine producing 228,000 ounces of gold per year over an initial 16-year mine life. Sandspring has signed a Memorandum of Understanding with the Guyana Government giving Sandspring exclusive rights to develop the Kurupung Hydro Project, approximately 50 kilometres south of the Toroparu Project. Optimizing the project’s power supply by building the proposed run-of-river hydroelectric facility could significantly reduce the estimated operating cash cost.

Early Deposit Precious Metal Purchase Agreement

On November 12, 2013, Silver Wheaton entered into an Early Deposit precious metal purchase agreement for 10% of the life of mine gold production from Toroparu for total cash consideration of US$148.5 million plus an ongoing production payment of the lesser of US$400 (subject to a 1% annual inflation adjustment starting in the fourth year after the completion test is satisfied) and the prevailing market price.

In addition, the Early Deposit precious metal purchase agreement was amended in April 2015 to include the acquisition of 50% of the payable silver at Toroparu for up-front cash payments totaling US$5 million. Sandspring was entitled to receive US$2.0 million of the incremental US$5.0 million cash payment in four equal installments over the course of 2015, which have since been paid. In addition Silver Wheaton will make ongoing payments to Sandspring of the lesser of the market price and $3.90 per payable ounce of silver delivered to Silver Wheaton over the life of the Toroparu project (subject to a 1% annual increase starting on the fourth anniversary of production). Silver Wheaton has also extended the due date for the final feasibility study to December 31, 2016. As a result of the addition of the silver stream to the Early Deposit precious metal purchase agreement, Silver Wheaton will now pay Sandspring a total upfront cash consideration of US$153.5 million, of which US$15.5 million of the upfront cash consideration has been paid to date, with the balance of the additional US$138 million payable on an installment basis to partially fund construction of the mine.

Metates (Mexico)

Project Overview

The Metates gold-silver property (“Metates”) is located in Mexico and is owned by Chesapeake Gold Corp. Metates is one of the largest, undeveloped disseminated gold and silver deposits in the world. The pre-feasibility study of Metates envisions a conventional truck and shovel open pit mining operation at a 120,000 tonnes per day throughput. Crushed ore will be fed to a conventional SAG and ball mill circuit followed by a single stage flotation plant to produce a bulk sulphide concentrate. This concentrate would then be transported downhill to the processing site where the sulfides are oxidized in an autoclave circuit prior to cyanidation to recover the gold and silver. Given the high-sulfide nature of the concentrate, the autoclave process will produce large quantities of acid that need to be neutralized. The neutralization process would have been a significant cost for the operation and this drove the decision for Chesapeake to propose to transport the concentrate slurry via a 127 kilometre pipeline to a plant within Chesapeake’s limestone concessions. The concentrate solution also contains dissolved zinc and copper that may be recovered during the course of neutralization.

Royalty Agreement

On August 7, 2014, Chesapeake entered into an agreement whereby Chesapeake assigned its interest in the 1.5% net smelter returns royalty on Metates to Silver Wheaton, for US$9.0 million. As part of the agreement, Chesapeake has the right at any time for a period of five years to repurchase two-thirds of the royalty for US$9.0 million, with Silver Wheaton continuing to hold a 0.5% royalty interest. In addition, Silver Wheaton has a first refusal on any future silver stream or royalty with Chesapeake on Metates.

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