http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTMxMjUxfENoaWxkSUQ9LTF8VHlwZT0z&t=1

Financial highlights¹

·  Record revenue and profit

o Revenue of $987.7 million, up 31%

o Adjusted EBITDA of $563.4 million, up 42%

o Attributable profit after tax of $165.9 million, up 75%

o EPS of $0.49, up 75%

·  Strong financial position with a year end cash balance of $627.5 million

·  Minority investments valued at $353 million²

·  Proposed final dividend of $0.03 per share, bringing the total dividend for 2011 to $0.06 per share, up 20%

Operational highlights

·  Full year production of 22.6 million attributable silver equivalent ounces in line with target

·  Exploration strategy delivering positive results:

o Resource life of main operations up 11% to 9.7 years

o Total resources up 17% to 535 million silver equivalent ounces³

o Positive feasibility studies delivered on Inmaculada and Crespo; potential to add production of 10 million attributable silver equivalent ounces per year

o Further expansion of project pipeline: 13 'Company Maker' and 13 'Medium Scale' prospects spread across Peru, Argentina, Chile and Mexico⁴

·  2012 production target of 20.0 million attributable silver equivalent ounces

·  Record $90 million exploration budget for 2012

* Revenue presented in the financial statements is disclosed as net revenue (in the Financial Review it is calculated as gross revenue less commercial discounts).

** Adjusted EBITDA is calculated as profit from continuing operations before net finance income/(cost), foreign exchange loss and income tax plus depreciation and exploration expenses other than personnel and other exploration related fixed expenses.

Commenting on the results, Ignacio Bustamante, CEO, said:

"I am pleased to report another year of strong financial and operational results in 2011. Not only did we meet our full year production target, but we also continued to make good progress on our organic growth strategy. Our successful drilling programme in 2011 resulted in an 11% increase in the resource life of our main operations to almost 10 years, as well as a further expansion of our project pipeline which now includes thirteen Company Makers. We also made excellent progress at our Advanced Projects and recently announced the results of the feasibility studies on Inmaculada and Crespo which have the potential to increase our annual production by 50%, with the commissioning of both projects set for the end of 2013. We also reported significant geological upside at both projects and are continuing work to expand their mineable resource base.

We have delivered record financial results with EBITDA at $563.4 million, an increase of 42% compared to 2010, and pre-exceptional earnings per share at $0.49, up 75%. The Board has significantly increased the exploration budget for 2012 and proposed a final dividend of $0.03 per share, bringing the total dividend for the year to $0.06 per share an increase of 20% and reflecting our confidence in the Group's consistent operational performance, comprehensive exploration programme as well as our strong cash position."

1On a pre-exceptional basis

2 Market value (as at 31 December 2011) of investments accounted under equity method and available for sale financial assets.

3 Total resources here exclude base metal resources

4 For full definition of the terms 'Company Maker' and 'Medium Scale' please refer to the Exploration Review