Amendments to Articles 8, 56-A and 90 of the General Mining Law

Reform Articles 8, 56-A and 90 of the GENERAL MINING LAW, contained in Decree No. 238-2012 dated January 23, 2013 and published in the Official Gazette "La Gaceta", dated April 2, 2013, Edition No. 33,088, amended by Decree No. 109-2019 dated September 26, 2019 and published in the Official Gazette "La Gaceta" dated November 25, 2019, which as of this date shall read as follows:

According to their activity, Mining Concessions may be for Exploration, Exploitation and/or Benefit; and in turn, according to the substance of interest, these may be metallic, non-metallic, gemstones or precious stones and stone aggregates. Non-metallic mining activity comprises the activity of extraction of mineral resources that, after special treatment, are transformed into products that due to their physical and/or chemical properties can be applied to industrial and agricultural uses and particularly stone aggregates. Stone aggregates are all those rock materials that, when properly fragmented and classified, are used in the construction industry".

The territorial canon is the periodic monetary consideration that must be paid in full, starting from the year in which the application for the Mining Right was filed and during the validity thereof within the first fifteen (15) days of the month of January of each year, in order to guarantee the reserve of the requested area, payable progressively in accordance with the following Table: EXPLORATION CANON a) The equivalent in national currency of ONE DOLLAR AND FIFTY CENTS OF THE UNITED STATES OF AMERICA (US$ 1.50) for the first year and for each hectare or fraction requested, in the case of metallic, non-metallic concessions, or stone aggregates; b) The equivalent in national currency of THREE DOLLARS AND FIFTY CENTS OF THE UNITED STATES OF AMERICA (US$ 3.50) per year and per hectare or fraction granted or requested, in the case of metallic, non-metallic concessions, or stone aggregates, for exploration in the second year; c) The equivalent in national currency of FIVE DOLLARS AND FIFTY CENTS OF THE UNITED STATES OF AMERICA (US$ 5.50) per year and per hectare or fraction granted or requested, in the case of metallic, non-metallic concessions, or stone aggregates, for exploration in the third year; d) The equivalent in national currency of SEVEN DOLLARS AND FIFTY CENTS OF THE UNITED STATES OF AMERICA (US$ 7.50) per year and per hectare or fraction granted or requested, in the case of metallic, non-metallic concessions, or stone aggregates, for exploration in the fourth year; and, e) The equivalent in national currency of NINE DOLLARS AND FIFTY CENTS OF THE UNITED STATES OF AMERICA (US$ 9.50) per year and per hectare or fraction granted or requested, in the case of metallic, non-metallic concessions, or stone aggregates, for exploration in the fifth year. EXPLOITATION CANON a) The equivalent in national currency of TEN DOLLARS OF THE UNITED STATES OF AMERICA (US$ 10.00) per year and per hectare or fraction

granted or requested, in the case of metallic and non-metallic concessions, or stone aggregates, for exploitation in the first ten (10) years; b) The equivalent in national currency of TWELVE DOLLARS OF THE UNITED STATES OF AMERICA (US$ 12.00) per year and per hectare or fraction granted or requested, in the case of metallic and non-metallic concessions, or stone aggregates, for exploitation in the following ten (10) years; and, c) The equivalent in national currency of FOURTEEN DOLLARS OF THE UNITED STATES OF AMERICA (US$ 14.00) per year and per hectare or fraction granted or requested, in the case of metallic and non-metallic concessions, or stone aggregates, for exploitation in the last ten (10) years of the project. In both cases… In the Small…".

The Mining Authority… The granting… The resolutions issued by municipalities regarding artisanal mining may be subject to challenge before the mining authority".

Add ARTICLE 76-D to the GENERAL MINING LAW, contained in Decree No. 238-2012 dated January 23, 2013 and published in the Official Gazette "La Gaceta", dated April 2, 2013, Edition No. 33,088, amended by Decree No. 109-2019 dated September 26, 2019 and published in the Official Gazette "La Gaceta" dated November 25, 2019, which shall henceforth read as follows:

INCENTIVES FOR THE EXPORTATION OF STONE AGGREGATES.- In order to promote investment and the development of mining exploitation of stone aggregates and as a state measure aimed at promoting the exportation of said resources, natural or legal persons who in accordance with this Law develop and operate quarries for the industrial exploitation of stone aggregates for their exportation shall enjoy the incentive of exemption from the Sales Taxes established in subsection B. of Article 76-A, in the case of the Special Mining Tax (IEM) the exemption shall be fifty percent (50%) of the percentage referred to in Article 76-B of this Law, in such sense, in the case of stone aggregates the breakdown shall be as follows:

• 1)

  Zero point five percent (0.5%)

  for the municipality where the material is extracted;

• 2)

  Zero point five percent (0.5%) in favor of the Mining Authority; and,

• 3)

  Zero point five percent (0.5%) as a Security Fee. In the case of the exemption of the tax contained in subsection B. of Article 76-A, the beneficiary persons must carry out the registration and exemption process before the corresponding state agencies, and must comply with the verification and compliance standards established by the competent authorities".