AREQUIPA M

Compañía Minera Caudalosa S.A. got an increased net utility of 19.1% regards to last year, as a result of output consolidation at Arequipa M Unit - Huaraz; and rise of production capacity at Huachocolpa Uno Unit - Huancavelica in 33% more than last year. During 2009 the exploration and development programs go on with encouraging results, which allowed an increase in reserves with 31.1% regards to last year.

LP Holding announced that consolidated profits for Compañia Minera Caudalosa S.A. and subsidiaries in the 2008 year rose Pen$ 98 million. (Pen$ 100 millions). The drop on metal prices explains the reduction of profits and utility registered in the 2008. Net utility of the period was Pen$ 8 million (compared to Pen$ 26 million in 2007). During 2008, total production was 219,000 mt of extracted and processed mineral, compared to 187,000 mt in 2007. The increase in production is explained by the increase of the production capacity on the Huachocolpa – Huancavelica unit, and by the operations of the recently commissioned unit Arequipa M on the Carhuaz Province, Ancash. In addition, in 2008 the exploration program and development continued with positive results, which have allowed increasing proven reserves to 629,000 mt and probable reserves to 2,090,000 mt.

Pre-operations started at the mining concession.