Primero csr 2013

SuStainability RepoRt 2013

Committed to

SuStainability

contents

about primero 1

about this Report 2

letter from the president and Ceo 6

ethical, transparent Governance 9

materiality and our Key Stakeholders 13

building primero Value 15

Committed to our people 18

Committed to our Communities 28

protecting the environment 34

in Closing 44

GRi index 46

Corporate directory ibC

Committed to

SuStainability

All currency is in United States dollars (USD) unless otherwise noted.

Front Cover Photo: Bianey Alvarado (Environmental Coordinator) and Emmanuel Santana (Environmental Supervisor) conducting quarterly water sampling along the Piaxtla River.

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P r i m e r o s u s ta i n a b i l i t y r e P o r t 2 0 1 3

Primero is a Canadian-based mining company that

recently took its place among the mid-tier ranks

of precious metals producers. As of early 2014, the

company has two producing mines, the San Dimas

mine in Mexico and the Black Fox mine in northern

Ontario. The company also has a development

project, Cerro del Gallo in Mexico, and an advanced

exploration project, Grey Fox, which is adjacent to the

Black Fox property. A third property in Mexico, the

Ventanas project, is in the exploration phase.

This growth follows a record-breaking year

of production growth, reserve expansion and the

announcement of the Brigus acquisition. This report

only discusses results at the San Dimas mine, which,

in 2013, was the company’s only operating mine.

Last year’s production at San Dimas exceeded

143,000 gold equivalent ounces.

As a multi-mine company, with operations in two

countries, we are in the process of establishing

corporate-wide policies and procedures for Corporate

Social Responsibility to ensure consistency in our

goals and measurement as we move into the future.

About PRiMERO

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W e are proud to present our third annual

Sustainability Report, which highlights our

achievements and challenges in 2013.

As we grow, we will not lose sight of our objectives of

continuous improvement to workplace health and safety,

environmental performance, and of sharing the benefits

of mining throughout our host communities. We remain

committed to transparency and accountability in sustain-

ability reporting. We have appointed a new Vice President

of Corporate Responsibility, whose many responsibilities

include working to improve data collection and reporting,

and encouraging the engagement of employees, communi-

ties and other stakeholders in our sustainability initiatives.

This report covers the period of January 1 through

December 31, 2013. its content is guided by common prin-

ciples in sustainability reporting in our industry and by the

findings of an extensive internal materiality assessment

process, which is described later in this report. in the

future we will broaden these materiality discussions to

include various external stakeholder groups.

Economic performance is not emphasized in this report: as

a public company, our financial results are audited annually

and reported on a regular basis, and our Annual Reports,

Financial Reports and Regulatory Filings are posted on our

website. Nonetheless, key economic drivers are discussed

in the Delivering Primero Values section of this report.

This report is primarily based on data collected at

and around our San Dimas mine in Mexico. Our other

properties are not discussed: the acquisition of the Cerro

Del Gallo property was completed in May 2013, and

the acquisition of Brigus Gold (the Black Fox mine and

Grey Fox advanced exploration project) was completed

in early 2014. All of our assets will be included in the

2014 Sustainability Report. The environmental and

broader sustainability impact of our offices in Toronto,

Vancouver and Mexico City had little effect on our overall

impact, and the offices’ energy consumption data are not

included in the environmental data.

This report is based on data collected in 2013, with

comparative data from previous years. Our previous

Sustainability Reports contained errors in water

consumption data, which is discussed later in this report;

but there are no significant changes from previous

reporting periods in the scope, boundary or measurement

methods applied.

For any questions regarding this report or its contents,

please contact us at [email protected].

GRi deClaRation

This report is based on the standards of the Global

Reporting initiative (GRi), and represents Primero’s second

Sustainability Report to attain a GRi level C standard

of sustainability reporting. The GRi is an independent

institution that has developed voluntary guidelines for

sustainability reporting. The mining and metals sector

supplement of the GRi reporting guidelines have also

been considered and available data is included in this

report. We believe that the GRi reporting guidelines help

us to maintain a high standard of transparency, clarity

and comparability, and that applying GRi standards

demonstrates our commitment to transparent reporting,

especially in those categories that are most important to

our stakeholders. A GRi index can be found at the back

of this report.

About THiS REPORT

Our ongoing assessments of materiality will, in the future, increase the breadth of engagement in our sustainability reporting. We will be engaging in formal exercises to refine our definition of stakeholders and to survey their reporting needs.

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At Primero, we believe that sustainability is

fundamental to our success. At the corporate

level and in our relationships with our host

communities, our prosperity depends on

good corporate governance and building a

solid framework for economic, community

and environmental sustainability.

Our four-step approach to sustainability begins

with creating and nurturing a corporate culture

based on a vision of environmental stewardship,

social progress, economic achievement, and

ethical, transparent governance. That vision

translates into values that inform decision-

making and that, ultimately, guide our

behaviours, as a company and as individuals.

The second step is to apply that vision and those

values to developing policies and procedures that

support sustainability with consistency and rigour,

through standardized company-wide systems.

Third, our sustainability practices must

focus on materiality: on those aspects of our

corporate behaviours that most concern our

stakeholders. if we engage our stakeholders

and ascertain their priorities—and then focus

our efforts on those concerns—we are better

positioned to manage risk. Later in this report,

our approach to materiality is discussed at

length. in 2014, we will enhance our stakeholder

engagement and use the results to review and

refine our Corporate Responsibility Strategy.

The fourth step is ongoing engagement. Only by

engaging with our stakeholders, including our host

communities, can we build strong relationships,

develop alliances and maintain a long-term,

balanced approach to sustainability. As Primero

has become a mid-tier mining company with two

producing mines, we are undergoing a thorough

sustainability policy renewal process. Visit our

website for more: www.primeromining.com.

manaGement’S appRoaCh to SuStainability

“ Our philosophy is focused on

generating economic, social

and environmental value in

the places where

we operate.”homero Valenzuela Social Responsibility Manager, Mexico

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eConomiC aChieVement

By maximizing earnings and reducing operating costs,

we produce results for our shareholders while also

contributing to the economic and social development

of our host communities. Only by creating value for our

shareholders and host communities, can we sustain our

company over the long term.

Community enGaGement

We actively engage in meaningful dialogue with local

residents, community leaders and organizations to

identify opportunities and priorities for economic

improvement, better training and social development.

We support schools, health care and local infrastructure,

and we continually seek development opportunities

that will contribute to a self-sustaining economy in the

communities surrounding our operations.

in February 2014, for the third consecutive year, Primero’s

CSR framework and commitments were assessed and the

company was again awarded the “Empresa Socialmente

Responsable” (ESR) or “Socially Responsible Company”

designation by CEMEFi, the Mexican Center for

Philanthropy. This is a prestigious award that has been

given to fewer than 950 companies in 2013. it recognizes

companies that are committed to sustainable economic,

social and environmental operations in all areas of

corporate life, including business ethics, employee

health and safety, involvement with the community,

and preservation of the environment.

enViRonmental SteWaRdShip

At all times, we seek to operate in a responsible manner

and to mitigate the impact our operations may cause to the

environment. We operate with an awareness of the mine’s

life cycle and practice the progressive rehabilitation of areas

affected by our activities.

ouR StaKeholdeRS

This report is written for Primero stakeholders, including:

employees and their families

our host communities

legislators and government officials

shareholders, investors and financial analysts

civic, special-interest and non-governmental advocacy organizations (NGOs)

These groups are generally accepted as key stakeholders

for sustainability reporting, and we engage with them

through our AGM, community meetings, website

and a dedicated email address.

Our ongoing assessments of materiality will, in the future,

increase the breadth of engagement in our sustainability

reporting. We will be engaging in formal exercises to refine

our definition of stakeholders and to survey their reporting

needs. Also see Materiality and Our Key Stakeholders, later

in this report.

We invite sustainability-related comments and

suggestions at our dedicated email address:

[email protected].

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LETTER from the President and CEO

F or Primero, 2013 was a year of growth,

diversification, and record-breaking performance.

At the San Dimas mine, our continued commitment

to achieve zero harm had tangible results: the lost-

time injury frequency rate was approximately half that

of 2012, while annual gold production was up nearly

30%. We completed the acquisition of the Cerro del

Gallo development property and began the acquisition

process—which is now complete—of the Black Fox

mine and the Grey Fox advanced exploration project.

With these acquisitions, our workforce has grown

from 1,300 to over 1,800.

in preparation for our next phase of growth, we renewed

our corporate obligation to sustainability. We crafted

a statement of Primero “Vision and Values”, that puts,

in simple language, the core principles of our culture of

corporate responsibility. We are now in the process of

bringing this vision and these values to every one of our

operations. They will guide our behaviour and decision-

making as we mature as a company.

in recent years, investors and other stakeholders have become increasingly concerned with our industry’s sustainability priorities. Sustainable practices are seen as major risk-mitigating factors. As Primero has grown, we have consciously expanded our sustainability team. Not only is this the best practice for health, safety, the environment, and the welfare of our local communities, but it’s a significant component of corporate risk management. We are committed to responsible, sustainable mining, and we are building the framework for consistent industry-leading performance within a culture of continual improvement.

i am proud to note that, in 2013, the San Dimas mine was certified as “Clean industry” by the Mexican environmental authorities.

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in this light, i would like to note our continued

commitment to sustainability, as demonstrated by the

addition of a new executive to our senior management

team: James Mallory, the Vice President of Corporate

Responsibility. His mandate reflects our proactive stance

on sustainability, responsibility and transparency. Led by

our newest Vice President, we have begun the processes

of policy renewal in health and safety, environmental

monitoring and reporting, and corporate social

responsibility. We have initiated a company-wide process

for materiality: a process that, essentially, identifies the

most important issues to our business and stakeholders

for our sustainability reporting. Early results of that

initiative can be seen in this report. in 2014, and beyond,

our materiality outreach will expand to embrace

external stakeholders.

i am proud to note that, in 2013, the San Dimas mine was

certified a “Clean industry” by the Mexican environmental

authorities. We intend to maintain that designation in the

future. We also earned the coveted ESR designation

Joseph F. Conway

President and CEO

(in English, “Socially Responsible Enterprise”),

for the third consecutive year, for our best practices

and sustainability policies.

i would like to take this opportunity to thank the people

of Primero. Our remarkable progress would not be

possible without everyone’s hard work and dedication.

As we look to the future, our focus is on the long term.

We believe that we can only thrive when we act with

responsibility, transparency and accountability toward

our local communities. We share in the benefits of

mining and expend considerable effort in protecting the

health and welfare of our people, the economies of the

communities in which they live and the environment

that sustains us all.

primero management (from left to right): Gabriel Voicu VP, Geology and Exploration, tamara brown VP, Investor Relations,

James mallory VP, Corporate Responsibility, Joseph F. Conway President & CEO, louis toner VP, Project Development and Construction,

h. maura lendon VP, Chief General Counsel and Corporate Secretary, Renaud adams COO and david blaiklock CFO.

Not pictured: david Sandison VP, Corporate Development

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S ocial responsibility and sustainable development

are integral to our company-wide strategy. Our

corporate sustainability program guides our policy and

decision-making regarding environmental protection, the

health and safety of our people, and the socio-economic

development of our host communities. Our goal is to

continuously improve workplace health and safety and

environmental performance, and to share the benefits

of mining with local communities.

Code oF buSineSS ConduCt and ethiCS

Our operating practices are governed by our corporate

Code of Business Conduct and Ethics. The Code is

applicable to all directors, officers and employees. it

embodies the commitment of Primero and our subsidiaries

to conduct business in accordance with all applicable laws,

rules and regulations and the highest ethical standards.

The complete Code of

Business Conduct and Ethics is available in the

Corporate Governance section of the Primero website

(www.primeromining.com).

CoRpoRate ReSponSibility Committee

Sustainability practices are governed by the principles

set out in our Health and Safety Policy, Environment

and Social Responsibility Policy and Code of Business

Conduct and Ethics. The Board’s Corporate Responsibility

Committee (CRC), formerly the Environmental,

Health and Safety Committee, provides oversight in

occupational health and safety, community relations,

and environmental management.

The purpose of the CRC is to review and

recommend corporate policies

and programs and monitor activities as they relate to

health, safety, environment and social matters. The

CRC reports to the Board. Two of the three members of

the CRC are independent members of the Board.

Reflecting our focus on sustainability, a new Vice

President of Corporate Responsibility was appointed in

March 2014. Reporting directly to the COO, the new

VP is responsible for Occupational Health and Safety,

Environmental Management, Community Relations,

and Risk Management.

Our internal weekly and quarterly reporting tracks key

Corporate Responsibility performance indicators. The

complete CRC guidelines are available on the Primero

website (www.primeromining.com).

For 2014, the CRC will be reviewing Primero’s processes

for materiality in sustainability reporting, and ongoing

policy implementation in Health and

Safety, environmental practices

and corporate social

responsibility.

ETHiCAL, TRANSPARENT Governance

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We invite CRC-related recommendations or direction

from shareholders, employees or other stakeholders at our

dedicated email address: [email protected].

human RiGhtS

Primero respects internationally proclaimed human

rights, and strives to ensure that we are not complicit

in human rights abuses. There have been no incidents

of discrimination, nor have there been any incidents of

violations involving the rights of indigenous peoples,

at any mine or project under Primero’s management.

ColleCtiVe baRGaininG and FReedom oF aSSoCiation

All Primero workers enjoy the right to freedom of

association as provided by applicable labour law. There

are two unions at the San Dimas mine, and approximately

53% of San Dimas employees are unionized. in March

2011, there was a strike at the San Dimas mill that lasted

32 days until the unions and management reached a

mutually satisfactory agreement. There have been no

strikes since that time. We do not believe that the right to

exercise freedom of association and collective bargaining

is at risk at any Primero location.

WoRKplaCe diVeRSity, non-diSCRimination and eQuity

At Primero, we do not discriminate on the basis of race,

religion, ethnicity, national origin, colour, gender, age,

sexual orientation, citizenship, veteran status, marital

status or disability. Harassment, including sexual, physical

and verbal, is prohibited. We do not allow forced or

compulsory labour.

We do not allow child labour as defined by the

international Finance Corporation (iFC) and Primero will

not knowingly employ a person who is under the legal

age of employment or where that employment would

contravene the iFC definition of child labour. There were

no incidents of child labour reported to the company

in 2013, nor were any operations considered to have

significant risk for incidents of child labour.

ComplianCe With laWS and ReGulationS

in 2013, there were no legal actions taken against the

company for anti-competitive behaviour. There was no

form of non-monetary sanction taken against the site

during the reporting period.

in 2012, the Federal Attorney for Environmental Protection

(PROFEPA) notified the Company of a 31,200 peso fine

related to a tailing spill in 2012. The resolution notification

referred to non-compliance to a “hazardous waste”

regulation. in March 2013, the Company and PROFEPA

came to terms that the tailings are not considered

“hazardous waste”, at which point the Company agreed

to pay the nominal fine, which was paid in the first quarter

of 2013. Following the corrective actions implemented by

the Company, an external consulting firm completed an

on-site inspection and concluded that the actions taken

by the Company were sufficient and that no long-term

damage to the aquatic life had resulted.

“ It’s an inclusive process, where we can’t do it alone. We value the contributions of our employees and our community. And I think the community feels that

they’re being heard.”Jim mallory VP Corporate Responsibility

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WhiStlebloWeR poliCy

in 2013, our corporate Whistleblower Policy was

updated to reflect leading ethical practices. it allows

any employee to communicate a concern or complaint

confidentially and anonymously, with the expectation

of a timely response and the assurance that there will

be no retribution or negative consequences. Employees

have three options to communicate concerns securely

and anonymously. All employees are informed of these

channels, which are also posted on our website.

ConFliCt-FRee Gold

The Conflict-Free Gold Standard is an industry-led

approach to combat the potential misuse of mined gold

to fund armed conflict (www.gold.org). Primero supports

the World Gold Council in its efforts to eliminate unethical

gold production and to increase transparency of gold

mining companies. The gold that we produce is in

conformance with the Conflict-Free Gold Standard:

it has been extracted in a manner that does not cause,

support or benefit unlawful armed conflict, nor does

it contribute to serious human rights abuses or breaches

of international humanitarian law.

in 2013, we conducted an assessment and process

review to ensure our compliance with the Conflict-Free

Gold Standard. Our internal assessment and processes

were then reviewed by Ernst and Young LLP (EY), who

carried out a limited assurance engagement on Primero’s

Conflict-Free Gold Report for the San Dimas mine’s

operations in 2013. The complete report, Conflict-Free Gold

Report for Primero Mining Corp, along with EY’s limited

assurance statement, are available on the Primero website

(www.primeromining.com).

We’re Listening ! Speak Up with Confidence through ClearView Connects™

3 Easy Options: 1. Online: www.clearviewconnects.com 2. Phone: 0 1 800 253 3222 (Mexico) 1 866 840 8719 (Canada) 3. Mail: P.O. Box 11017 Toronto, ON M1E 1N0 Canada

We’re Listening ! Speak Up with Confidence through ClearView Connects™

3 Easy Options: 1. Online: www.clearviewconnects.com 2. Phone: 0 1 800 253 3222 (Mexico) 1 866 840 8719 (Canada) 3. Mail: P.O. Box 11017 Toronto, ON M1E 1N0 Canada

TABLE 1 the Complete liSt oF mateRial iSSueS ConSideRed in 2013’S inteRnal aSSeSSment

environmental stewardship

Stakeholder engagement and social progress economic achievement Governance

Energy useCommunity trust and social license to operate

Local procurement Ethical business practices

GHG emissions Community wellness Resource nationalism Regulatory compliance

Tailing management Diversity and inclusiveness Tax reform and legal risk

Water management Education and training Value creation

Employee training and career development

Wealth distribution and economic contributions

Health and safety

infrastructure and services

Land access

Security

Supplier development

“ We really want to understand our stakeholders’ sustainability concerns and what role we play in working

together with them.”Jim mallory VP Corporate Responsibility

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I n a Sustainability and Strategy Report, it is essential

to identify the material topics—those economic,

environmental, social and governance topics of greatest

importance to our stakeholders and to the company—

and the threshold at which aspects become sufficiently

important that they should be managed and reported.

in 2013, we committed to a process of internal

assessments of materiality and during the year we began

the process. We utilized independent guidelines and

standards, described in Global Reporting initiative (GRi)

guidance and best practices used to define materiality

for Sustainability reporting.

We explored many potentially material issues, which were

identified through industry benchmarking, international

standards, emerging issues and internal discussions.

We discussed their importance to Primero’s vision for

sustainable development. Through this exercise, we

developed an initial ranking of material issues and their

importance to the business. The list was further refined

using the Primero Enterprise Risk Management (ERM)

process to plot the issues and assess the possible

risks they may pose.

The material issues and priorities identified in the internal

assessment will drive our sustainability reporting and our

medium to long-term strategy. Our reporting will improve

as we focus on performance measures and other key

performance indicators (KPis) that reflect and address

our stakeholders’ concerns.

The internal assessment determined these material

issues and priorities: 1) Health and Safety, 2) Community

Trust and Social License to Operate, 3) Value Creation

and Wealth Distribution, 4) Regulatory Compliance and

5) Water Management. The complete list of issues

considered is in the table on page 12.

While we understand that all the issues are important,

it is valuable to establish priorities in order to take a long-

term, focused, balanced view of the most material issues

to our business and our stakeholders.

in 2014, we will continue to improve our process for

reporting materiality through a validation process with

our key external stakeholders and refine our Corporate

Responsibility strategy.

MATERiALiTY and Our Key Stakeholders

Community tRuSt and SoCial liCenSe

to opeRate

PAGE 29

Value CReation and Wealth diStRibution

PAGE 15

ReGulatoRy ComplianCe

PAGE 10

WateR manaGement

PAGE 36

1

2

3

4

5

health and SaFety

PAGE 19

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$111MStRonG CaSh balanCe

29%pRoduCtion inCReaSe

32%ReSeRVeS inCReaSe

$200MReVenue GRoWth

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P rimero is a Canadian-based company with

headquarters in Toronto and offices in Vancouver

and Mexico City. in May 2013, Primero Mining acquired the

Cerro del Gallo development project and in late 2013, the

acquisition of Brigus Gold was announced. in March 2014,

that deal was finalized, transforming Primero into a multi-

mine company with the addition of the Black Fox mine.

in 2013, we operated one mine, the San Dimas mine

in Mexico’s San Dimas district, as well as the Ventanas

exploration project in Durango State. Most of the data in this

Sustainability Report relates to San Dimas, but our corporate

offices are included where relevant.

Primero is developing a good relationship with the com-

munities around the Cerro del Gallo property and is planning

a more comprehensive stakeholder mapping and community

engagement program for 2014. Because of the limited field-

work on the Cerro del Gallo property, which was acquired in

May 2013, its performance data is not covered in this report.

BUiLDiNG Primero Value

TABLE 2 San dimaS FaCtS

ownership 100% Primero

locationState of Durango (central west Mexico), approximately 150 km west of Durango,

125 km northeast of Mazatlán

descriptionGold-silver deposit

Underground mine, using mechanized cut-and-fill mining methods and longhole

2012 2013

production Gold equivalent* ounces 111,132 143,114

Gold ounces 87,900 111,983

Silver million ounces 5.13 6.05

Staff Employees 1,148 1,247

Contractors 117 73

% Union members 45.6% 52.6%

% Mexican 100% 99.9%

* Gold equivalent ounces include silver produced and converted to a gold equivalent, based on average commodity prices received in the period.

Our products are sold to refineries or smelters, and then into worldwide precious metals markets. We do not sell directly to the public.

Vancouver Corporate Office

Toronto Corporate Office

Black Fox Mine

San Dimas MineCerro del Gallo Project

Mexico City Office

Grey Fox Exploration Project

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TABLE 3 diReCt eConomiC ReVenue GeneRated in 2012 and 2013

direct economic value generated (in uS dollars)

2012 2013

a) Revenues 182,939,000 200,326,000

economic value distributed

b) Operating costs (goods and services) 38,569,645 47,353,724

c) Employee wages and benefits 28,683,336 37,549,034

d) Payments to providers of capital 19,074 14,843,000

e) Payments to governments (Mexico) 591,633 728,565

f) Community investments 826,089 836,242

economic value retained 114,249,223 99,015,435

Greater detail on the company’s and mine’s revenues,

production, customers and markets is included in the

Annual Report, which is available on Primero’s website:

www.primeromining.com.

loCal pRoCuRement

Primero is committed to helping create a sustainable

local economy through local purchasing and small

business development. At the San Dimas Mine a local

supplier is providing uniforms for our employees and

a number of new entrepreneurs are providing trucking

services to mine operations.

in 2014 we will explore environment and social

performance requirements for suppliers and

contractors at all our operations and continue

to promote local entrepreneurship.

diStRibution oF GoodS and SeRViCeS puRChaSed in 2013

Local (Tayoltita)

Regional (Durango state)

National (rest of Mexico)

international

67%

16%

16%

1%

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Committed to ouR

PEOPlE

“ It’s not that one individual is going to work towards sustainability, it’s something the whole organization needs to work on together.”Jim mallory VP Corporate Responsibility

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ouR ViSionTo be the most respected precious metals producer in the Americas, admired for the excellence of its people, its values and its delivery on commitments.

ouR ValueS

ReSpeCt We value the diversity of our employees and other stakeholders and treat each other with dignity and honesty.

inteGRity We are uncompromising and consistent in our commitment to transparent, responsible actions.

FoCuSed We have the courage to take bold steps to excel and we apply a disciplined approach to deliver on our objectives.

teamWoRK We work together and recognize that each person contributes and makes a difference.

health and SaFety

At every Primero mine and project, we strive to protect the health, safety and

welfare of our people and their communities. We focus on safety leadership

and fostering a safety-first work culture through programs like our Zero Harm

program and our Circles of Prevention. The Zero Harm program focuses on

10 critical tasks, such as rock scaling, driver accreditation, and explosives

handling, and ensures that employees performing those tasks have the prior

training and, if appropriate, the accreditation. in 2013, our injury statistics

continued to improve: accident frequency declined by 25% and the

All Accident Frequency index dropped for the sixth consecutive year.

COMMiTTED to Our People

As we grow from a one-mine operator to a multi-mine

company, we are very focused on our core asset—our

people. Our first priority is our people, and their safety

and well-being on the job, their human rights, and their

professional development.

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health and SaFety GoVeRnanCe

At the San Dimas mine, there are a number of committees

and groups whose purpose is to maintain a safety-first

culture and monitor safety performance. in total, more

than 130 employees or 10% of the workforce participated

in the different committees and continuous improvement

working groups.

Central Safety and Security Committee, a Formal Health and Safety Committee, guides our Health and Safety Administration system. The committee is chaired by the mine’s General Manager and includes operations and services superintendents (permanent members) and area heads, supervisors and employees (temporary members). The committee meets on a monthly basis to discuss potential risks and preventive measures, and to choose a safety “employee of the month”.

documentary System Subcommittee, an 18-member subcommittee, has joint management/labour representation and defines safety-related work procedures and instructions.

preventive observations Subcommittee detects unsafe acts and conditions and follows up until they are corrected. in 2013, there were more than 3,000 of these preventive observations conducted (approximately eight per day).

accident and incident investigation Subcommittee analyzes and investigates lost-time accidents and near-miss incidents. in 2013, three lost-time accidents and six near-miss incidents were investigated.

Circles of prevention at San Dimas enhance a safety-first work culture through developing improvement opportunities and helping monitor and advise on occupational safety programs. in 2013, there were five different working groups, on subjects including assessing rock fall incidents, improving underground workplace conditions, reducing risk in the processing plant, and maintaining an orderly workplace.

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TABLE 4 SaFety SyStem Key peRFoRmanCe indiCatoRS

2013 Key performance indicators % Completion

Health and Safety Committee Meetings

82%

Supervisor Safety Meetings 68%

Scheduled inspections 75%

Planned Hazard Observations 33%

Corrective Actions Closed 75%

Key peRFoRmanCe indiCatoRS FoR impRoVed health and SaFety

Our ongoing Health and Safety governance processes are

generating leading Key Performance indicators (KPis) for

health and safety. These are proving valuable in helping us

adjust our focus to the factors that represent higher risks,

and helping us focus on early corrective measures, which is

already resulting in improved safety performance.

We are committed to generating, and acting on, more

KPis as we continually review and refresh our safety

management system.

ComplianCe With StandaRdS

The mine was inspected three times by the regulators

and no examples of non-compliance were observed.

in addition, a new Standard for Underground Mines

was implemented in October of 2013.

health and SaFety peRFoRmanCe

Primero recognizes the dangers inherent in the type of

work we do. Accordingly, we place enormous emphasis

on safe work practices and training—efforts that have

resulted in a steady year-on-year decline in overall

accident frequency.

Our ultimate objective is to become a zero harm

operation. For 2014, our goal is an overall reduction

of 15% in our All injury Frequency rate at operations

in Canada and Mexico.

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“ We know that mining is a high-risk activity; however, we are taking every possible measure to identify those risks, give our workers the tools to

control them and, this way, have a safer work environment.”miguel mares Safety and Environmental Manager

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1.85

1.10.95

1.5

2011 2012 2013 2014

* LTIFR is the number of lost-time injuries per 200,000 hours worked. (Lost-time injuries x 200,000 hours) ÷ Total Hours Worked.

** AIFR is the number of all injuries per 200,000 hours worked. Includes employees and contractors at all sites and corporate offices as well as the corporate exploration team.

TABLE 5 inJuRy FReQuenCy

injury type 2011 2012 2013

Lost-time injuries 3 6 3

Total reportable injuries 27 20 17

Significant potential incidents 65 42 29

Fatalities 1 1 0

LTiFR (lost-time injury frequency rate)

0.18 0.36 0.17

AiFR (all injury frequency rate) 1.84 1.50 1.12

For 2014, our goal is an overall reduction of 15% in our All Injury Frequency rate at operations in Canada and Mexico.

24


health pRoteCtion and tRaininG

in addition to injury prevention, the San Dimas mine’s

integral Safety System is intended to improve the

health and welfare of our workers, their families and the

surrounding communities.

The system seeks to identify and prevent sickness through

ongoing monitoring and check-ups, including:

Preventive programs for disease detection

Epidemiological disease-detection programs for all employees exposed to noise, dust, hazardous chemical substances, etc.

Biological and environmental monitoring

Annual medical exams

Anti-doping and alcohol tests for workers

The San Dimas mine maintains on-site hospital facilities,

with x-ray, ultrasound, a surgery room and clinical lab,

which are available for all employees and contractors.

The management is assessing the results of the programs.

A new major injury-prevention program began in

November 2013. As well, an ongoing, monthly safety

campaign focuses on a specific topic. The campaigns

include awareness talks, training courses and revision

of standards. Topics have included among others: energy

isolation (lock out – tag out), defensive driving, safety in

work at heights, and safe handling of sodium cyanide.

“ At Primero, Community and Social Responsibility isn’t just about developing programs, it’s about making a real difference in the lives of people—at work and

in their communities.”Renaud adams Chief Operating Officer

25


TABLE 6 StaFF bReaKdoWn

locationFull-time

employeeshourly

(union) Contractors Women men total

Mexico City Office 10 0 0 4 6 10

San Dimas Mine 553 694 73 119 1,201 1,320

Vancouver Office 5 0 1 3 3 6

Toronto Office 19 0 1 6 14 20

total 587 694 75 132 1,224 1,356

manaGement appRoaCh to labouR pRaCtiCeS

Throughout Primero, we foster a culture of inclusivity

and acceptance of gender, race, cultural background,

age, religion and disability. We are committed to fair

and equitable labour practices in every operation and

office. More than half of our mining workforce

(52.6%) is unionized.

Everywhere we operate, we seek to be recognized as

an employer of choice by offering competitive wages,

above-average benefits, as well as by preferentially

hiring locally and recognizing and rewarding

employee performance.

TABLE 7 GendeR diStRibution (San dimaS)

Female 119 (9%)

Male 1,201 (91%)

total 1,320

ReGional hiRinG 2013 employee turnover: 8.4%

Durango State

Sinaloa State

Zacatecas State

Guanajuato State

Other

78%

8%

3%

3%

8%

26


27

health and SaFety aGReementS

More than half the mining workforce at the San Dimas

mine is unionized, with health and safety agreements

that include:

Personal protective equipment

Joint management-employee health and safety committees

Participation of worker representatives in health and safety inspections, audits, and accident investigations

Training and education

Right to refuse unsafe work

Periodic inspections

WoRKeR and manaGement tRaininG

Primero runs an annual training program for

superintendents, area managers, supervisors and workers.

The training is developed based on the needs of each

department and depending on the area.

in 2013, more than 20,600 man-hours were dedicated

to theoretical and practical training, with topics including:

Safety leadership

Underground heavy-equipment operations

Explosives handling

First aid and mine rescue training

Rock mechanics

Environmental awareness in the workplace

Computer training

Project management

English classes

diStRibution oF employee tRaininG

Management

Superintendents

Area foreman

Supervisors

Assistants

Operators and labour workforce

45%

5% 10%

12%

18%

10%

28


Committed to ouR

COmmunitiES

“ It (Primero) cares about its people, their sources of em-ployment and the communities that we live in… The truth is, my family is happy living here with me and it’s a privilege to

work for Primero.”Gustavo berrios Process Plant Superintendent

29


COMMiTTED to Our Communities

Community deVelopment

We are committed to maintaining a vibrant,

economically diverse local community.

The San Dimas mine has brought significant

infrastructure upgrades to the community, in the

form of improvements to roads, electrical and

communication systems and medical facilities.

Although these were developed to serve the

mining operations, they are shared by the entire

community. in addition to these benefits, we

actively contribute to a broad range of social and

community initiatives, often in collaboration with

local and regional authorities.

TABLE 8 publiC inFRaStRuCtuRe/Community ContRibutionS*

2012 2013

Community infrastructure facilities (water supply, roads, schools, hospitals, etc.)

$232,734 $235,594

Community services (through funding of costs and/or staffing with Primero employees)

$593,355 $600,647

* Donations for infrastructure and provision of services, provided primarily as a public service, from which Primero does not seek to gain direct economic benefit.

30


“ When I was 11 years old, we had to leave this community and I came back five

years ago to work in this company that gave me this chance. And the truth is, I’m

very happy to return to my community and give something back, especially in

environmental issues, which are so important nowadays.”bianey alvarado Environmental Coordinator

31


Child CaRe

With the change of administration of the Federal

Government, the daycare facilities program that operated

in Tayoltita through the Secretariat of Social Development

(SEDESOL) was closed. We are still in discussions with

the SEDESOL in search of a solution to reopen the

daycare facilities.

enViRonmental aWaReneSS

Raising environmental awareness in the community

is always a priority. in 2013, we continued our annual

environmental awareness campaign, reaching

approximately 1,000 students from 10 different educational

institutions. Students from preschool through to high

school participated in discussions relating to environmental

education, energy and water conservation, waste

classification, and regional flora and wildlife.

CultuRe and ReCReation

Recreational, cultural and sporting activities were provided

for employees and their families in the 2013 Primero

“Grandes Familias” program. Monthly activities included

recreational sporting activities and training sessions

for spouses and other family members. in 2014, the

recreational program “The Community is Primero” will

continue these sporting and cultural activities and extend

them to the entire Tayoltita community.

“ Primero Grandes Familias

is a program that focuses

on housewives and the

workers’ children, looking for

a sense of belonging within

the company.”José luis Ramírez díaz Human Resources Superintendent

32


“ By taking an internship in the company, the students have the opportunity to access the lab facilities, workshops, mine, topography maps when needed and the installations inside and outside the mine.”octavio prado pacheco

Director CONALEP, Tayoltita Campus

the ColleGe oF pRoFeSSional teChniCal eduCation (Conalep)

Community tRaininG

The College of Professional Technical Education (CONALEP) trade school in Tayoltita was established in 2004 by the San Dimas mine in cooperation with the state government. The mine funded the construction and equipping of the school, where students participate in classroom activities as well as hands-on practical experience in Primero’s laboratories and workshops. We continue to provide logistical support for classroom operations and lodging for rural students.

in 2013, our support for CONALEP won us First Place Distinction for Practices in Education and Employment from the Mexican Ministries of Education and Labour.

Since the program began, there have been seven years of graduating classes and more than 60% of the 156 graduates have been hired to work for primero.

We continue to work in concert with the Durango Adult Education institute and more than 260 participants from Tayoltita have been part of the program.

33


TABLE 9 aCademiC SCholaRShipS

level of study Staff that benefits number of scholarships

2012 2013

Technical high school studies Union employees’ children 21 23

Computing courses Union employees’ children 12 21

Technical studies/CONALEP Union employees’ children 7 7

High school Employees’ children 8 7

Bachelor’s degree Employees’ children 10 10

Master’s degree Employees’ children 2 1

total 60 69

employee Scholarships

Primero offers post-secondary educational scholarships and student loans. in 2013, there were 10 employees completing their post-secondary education either in

person or online.

Community Scholarships

Primero offers a scholarship program for local Ejido land-

owners and their communities. in 2013, 15 scholarships

were presented to students at the post-secondary (6)

and preparatory or high school level (9).

“ It’s a company that honestly puts its workers before everything else.”adriana alvarado Sanchez Assistant Mine Planner

Adriana was a CONALEP student when the San Dimas mine began the Women Miners program. She was employed while she completed her training as a metallurgical technician, and on graduation was hired full time at San Dimas as a heavy equipment operator.

She then received a scholarship to take an Engineering degree in Mining at the University of Guanajuato. Adriana is employed as an Assistant Mine Planner while completing her University degree.

34


pRoteCtinG the

EnvirOnmEnt

“ We strive at all times to act with responsibility and transparency in our actions

and in our reporting practices.”Jim mallory VP Corporate Responsibility

35


PROTECTiNG the Environment

As our company grows, and our production increases, it is inevitable that

our water consumption and waste numbers will rise. We are nonetheless

committed to minimizing our environmental footprint through improving

process efficiency, recycling water and optimizing our operations

wherever possible. We strive at all times to act with responsibility and

transparency in our actions and in our reporting practices. in order to

provide accurate comparisons of year-on-year environmental performance,

we are including measurements of the intensity of our activity—in other

words, our environmental impact per tonne of ore processed.

manaGement appRoaCh to enViRonmental ReSponSibility

Our mining, exploration and development activities are subject to the applicable

environmental laws and regulations, which include planning for the eventual

closure of the mine and reclaiming the mining properties after mining and

processing has ceased. Our aim is to match the environmental standards

of leading gold and silver producers.

At all times, we manage our operations in compliance with, or in excess of,

all relevant environmental standards. Precautionary measures are taken to

avoid damage to ecosystems wherever possible. When adverse impacts occur,

integrated programs are implemented to promote the recovery of the affected

ecosystems.

At San Dimas, the Environmental Management System (EMS) helps reduce or

eliminate environmental impacts through precautionary measures that mitigate

damage and promote recovery and reclamation. Our system is widely respected

for its effectiveness in identifying and avoiding, reducing or eliminating the

environmental impacts of mining and processing.

We are committed to minimizing our environmental

footprint through improving process efficiency,

recycling water and optimizing our operations

wherever possible.

36


* Water use for 2011 is not reported, as we believe previous statistics to be inaccurate. Since 2012, the plant has been maintaining a more detailed water balance, which was not available in 2011.

TABLE 10 WateR uSe*

total Water Withdrawal by Source 2012 2013

Self-extracted water—water drawn from the environment via a facility or equipment controlled by the operation (e.g., bores, rivers, dams. etc.)

328,000 m3 344,000 m3

Surface water—including water from wetlands, rivers, lakes, and oceans

0 0

Recycled water 282,000 m3 479,000 m3

total water used 610,000 m3 824,000 m3

% Recycled water 46.1 % 58.2.7%

“Clean induStRy” CeRtiFiCation

in 2013, the San Dimas mine was certified a “Clean

industry” by PROFEPA, Mexico’s Federal Environmental

Protection authority. The Clean industry initiative

is a voluntary program that assesses regulatory

compliance and best practices in environmental

performance. The mine’s audit process was completed

in 2012 and the two-year certification was granted

in May 2013. We intend to continue to improve our

environmental standards and performance.

0.4550.449

2012 2013

WateR uSe intenSity (m3 FReSh WateR peR tonne oF oRe pRoCeSSed)

WateR manaGement

Water management is a prime concern in the San Dimas

region. While production at the mine grew significantly

in 2013, overall water use increased only slightly, due to

significant improvements in the amount of water recycled

back to the process plant. We plan to continue to improve

water efficiency through recycling, reuse and treatment.

37


38


Most of the electrical power for the San Dimas mine is

provided by our own hydroelectric generation system,

the Las Truchas dam and power plant. The Las Truchas

hydroelectric power plant provides economical,

reliable and clean power that supplied approximately

63% of the mine’s requirements in 2013. A 34 kVA

power line runs 42 km from the dam to the San Dimas

mine. The remainder of the mine’s requirements are

supplied by the Federal Power Commission Supply

System (FPCSS), and hydroelectric and back-up diesel

generators, which are interconnected with the FPCSS.

in 2012, a Phase ii expansion was approved, that will

increase capacity from its current 43 GW to approximately

67 GW per year. This will support mine and mill expansion.

The Phase ii expansion is due for completion in the second

half of 2014.

As shown in the tables below, the San Dimas mine uses

both direct energy (primary sources such as diesel and

gasoline) and indirect energy (produced by converting

primary energy into other forms, such as electricity).

TABLE 11 eneRGy ConSumption

direct 2011 2012 2013

Diesel (stationary) 17,940.96 GJ 22,382.73 GJ 19,416.2 GJ

Diesel (transport) 90,592.52 GJ 89,134.29 GJ 84,116.9 GJ

Gasoline (000s litres) 3,764.45 GJ 2,047.33 GJ 3,780.9 GJ

indirect

Electricity purchased: Las Truchas

142,365.6 GJ 123,847.2 GJ 154,929.6 GJ

Electricity purchased:Mexican Federal Power Commission

66,438 GJ 98,481.6 GJ 85,626.0 GJ

eneRGy ConSumption and GReenhouSe GaS emiSSionS

39


The National Greenhouse Accounts Factors have been

used to convert energy consumption into atmospheric

emissions (in CO2e). The same CO

2 conversion factors

were used for the last three years.

in 2014, we will be reporting atmospheric emissions for

multiple mine sites and will adjust conversion factors

consistent with their respective jurisdictions.

TABLE 12 GReenhouSe GaS emiSSionS (aS tonneS oF Co2e)

direct 2011 2012 2013

Diesel (stationary) 1,323 1,652 1,433

Diesel (transport) 6,525 6,714 6,336

Gasoline 272 147 271

indirect

Electricity 8,396 15,236 13,680

total 16,516 23,749 21,720

0.0329

0.0249 0.0283

2011 2012 2013

aVeRaGe GhG emiSSion intenSity (tonneS oF Co2e peR tonne oF oRe pRoCeSSed)

40


41


aiR Quality meaSuRement

in 2013, we engaged a third-party contractor

(On-Site Analítica de México, S. A de C.V.) to carry out

an atmospheric study of the San Dimas operation.

* Particulates from mining processes were in compliance with regulations.

TABLE 13 total SuSpended paRtiCulateS (nom-043-SemaRnat-1993)

process limits (mg/m3) 2011 2012 2013*

Refinery 480 3.8 4.9 22.8

Sample Preparation 600 8.0 1.5 2.8

Laboratory 750 4.9 0.0 4.6

Laboratory (refinery) 570 9.8 3.4 2.5

Crushing Dust Collector (1) 410 80.8 15.9 36.1

Crushing Dust Collector (2) 400 13.7 5.2 140.3

Emissions from the plant’s hot oil heater at the refinery

were in compliance with regulations (NOM-085-

SEMARNAT-1994, for burners with heating capacity of less

than 5250 Mj/h).

WaSte manaGement

in any mining operation, waste materials are generated.

These wastes are categorized as:

Non-hazardous process waste (mining waste), which includes waste rock and materials that are removed in order to access the mineralized ore and the tailings.

Non-hazardous general waste, which includes scrap steel, packaging and other non-hazardous discarded materials and domestic waste.

Hazardous wastes: materials that can pose a threat to health unless safely managed, such as used oil or grease, contaminated soil, chemical packaging, batteries, etc.

The following table presents the results of three

years of measurement.

At San Dimas, the Hazardous Waste Management Plan

establishes procedures for planning, reducing, collecting,

storing, transporting, and performing final disposal of

hazardous residues. The Mining Waste Management

Plan ensures that the areas where wastes will be stored

comply with safety measures that ensure the stability

of the deposit and prevent acid drainage, leachate and

runoffs into the environment, including monitoring. in

2013, permitting was received, and construction began,

on a new waste rock storage area. Construction is

nearing completion.

Hazardous wastes increased, compared to 2012, because

the operation’s chemical supplier stopped allowing the

return of the contaminated packaging for reagents.

Additionally, the volume of materials recovered from

sump maintenance increased. All hazardous materials

are collected, stored, transported and finally disposed

in a manner consistent with the hazardous waste

management plan for final disposal.

42


TABLE 14 mininG WaSte

process Waste 2011 2012 2013

Waste rock (000s tonnes)

Backfill % Waste rock storage %

1,038

76% 24%

950 43% 57%

831.1

32% 68%

Tailings (000s tonnes) 663.0 721.3 766.9

TABLE 15 haZaRdouS and non-haZaRdouS WaSte

Waste type 2012 2013

Non-hazardous waste 268 tonnes 250 tonnes

Hazardous wastes 165 tonnes 198 tonnes

tailinGS

Tailings management at San Dimas is challenged by the

district’s rugged terrain and steep canyons. San Dimas

operates a dry stack tailing deposition facility producing a

filtered “cake” that is deposited and compacted inside the

tailing storage area. in 2013, the company purchased a third

tailing pump and made improvements to the containment

system for the tailing pipeline.

in January 2012, a broken pipeline between the plant

and the Cupías tailings storage facility (TSF) caused a

spill of tailings containing 5 ppm cyanide into the Piaxtla

River, affecting an area of 2.5 kilometres. The fault was

corrected and both PROFEPA and CNA were notified.

The municipality of San Dimas considered the incident to

be localized and controlled, stating that the damage was

limited to the death of small concentrations of fish.

All of PROFEPA’s recommendations were implemented,

including a new containment structure for the tailings

pipe. in September 2012, CNA fined Primero 93,500

pesos, which we promptly paid. PROFEPA later notified

43


Va-03

Va-06

Va-04

VA-05

VA-10

VA-032 Km

VA-06

VA-04

tayoltita

tailing Storage Facility

Piaxtla River

Piax

tla R

iver

process plant

the company of a 31,200 peso fine for non-compliance to

a “hazardous waste” regulation; Primero and PROFEPA

later came to terms that the tailings were not considered

“hazardous waste”, and in early 2013, a nominal fine was

paid. An external consulting firm inspected the site and

concluded that the corrective actions were sufficient and

there had been no long-term damage to aquatic life.

biodiVeRSity and aQuatiC monitoRinG

Since 2010, a third-party consultant (Environmental

Consulting and Technology inc. de CV) has monitored

water quality and aquatic life in the Piaxtla River. in 2013,

they monitored three sampling stations:

Located upstream of the area of influence of Tayoltita village activities (station VA-04)

Located within the areas of influence of the village of Tayoltita/San Dimas (station VA-06)

Located further downstream of Tayoltita/San Dimas (station VA-03)

Habitats are classified as Optimum, Sub-optimal, Marginal

and Poor. The EPA characterizes “Sub-optimal” as adequate

to maintain the populations of the epifauna and fish areas,

while “Marginal” is less than desirable for their viability

(EPA, 2002a).

in 2013, the habitat quality at station VA-04 was

categorized as Sub-optimal (unchanged from 2012), while

the habitat quality at VA-03 and VA-06 stations declined

from Sub-optimal to Marginal.

General pH values from all stations and sampling from

2010 and 2013, ranged around 7.3. The historical average

concentration of dissolved oxygen (DO) is 7.47 mg/L, and

the average flow values at all stations is 6.07 m3/sec.

Notwithstanding the decline in habitat quality over 2013,

station VA-03 recorded the highest values of richness and

abundance. During 2013’s sampling, 8,575 organisms were

collected. insects represented more than 90% of the macro

invertebrates. The abundance of fish was lower than in

previous surveys (2010 through 2013), which may be due

to climatic conditions, as the study was conducted after the

rainy season had ended.

mine CloSuRe and ReClamation

Every mine has a finite life. As mining proceeds at

San Dimas, we continue to update our plans for the

mine’s eventual closure. The Company has accrued a

decommissioning liability consisting of reclamation and

closure costs for the San Dimas mine and is reported in

our financial statements.

There was no progressive closure activity in 2013 at

San Dimas and we expect to resume remediation

of the historical San Antonio tailings in 2015.

44


As one of the industry’s newest mid-tier gold

producers, we intend to demonstrate an unyielding

commitment to sustainability at each of our

operations. Through 2014 and beyond, we will

establish and maintain company-wide standards for

recording and reporting sustainability information,

and we will continue to meet stringent Global

Reporting initiative guidelines. Primero did not

seek assurance for this report, but consulted

Ernst and Young for input and advice.

We are proud of the recognition and awards that

we have received for social, health and safety, and

environmental performance. They are proof of our

ability to deliver on our commitments. As Primero

proceeds along its growth trajectory, we will maintain

our culture of continual improvement in sustainability.

iN Closing

“ As we look to the future, our focus is on the long term. We believe that we can only

thrive when we act with responsibility, transparency and accountability toward our

local communities. We share in the benefits of mining and expend considerable effort

in protecting the health and welfare of our people, the economies of the communities

in which they live, and the environment that sustains us all.”Joseph F. Conway President and CEO

45


46


1. StRateGy and analySiS Source Page

1.1 Statement from the most senior decision maker of the organization about the relevance of sustainability to the organization and its strategy 6

1.2 Description of key impacts, risks and opportunities 6

2. oRGaniZational pRoFile Source Page

2.1 Name of the organization 1

2.2 Primary brands, products, and/or services 1, 15

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures 1, 15

2.4 Location of organization's headquarters 15

2.5 Number and name of countries where the organization operates, with either major operations or that are specifically relevant to sustainability 15

2.7 Markets served including geographic, sectors and customers 15

2.8 Scale of the organization 15, AR, Q Reports

2.9 Significant changes during the reporting period regarding size, structure, or ownership 2

2.10 Awards received in the reporting period 33, 36, BC

3. RepoRt paRameteRS Source Page

3.1 Reporting period (e.g., fiscal/calendar year) for information provided 2

3.2 Date of most recent report 2

3.3 Reporting cycle 2

3.4 Contact point for questions regarding the report or its contents 2

3.5 Process for defining report content 2, 4, 13

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) 2

3.7 Any specific limitations on the scope or boundary of the report 2

3.10Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods)

2

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report 2

3.12 Location of the Standard Disclosures in the report 2

3.13 Policy and practice relating to seeking external assurance 11

4. GoVeRnanCe, CommitmentS, and enGaGement Source Page

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks AR, Website

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body 10

GRi iNDEx

47


4.8internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

7, 19, 21, 35

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses 2, 11, 4, 21

4.14 Stakeholder engagement 4, 13

4.15 Basis for identification and selection of stakeholders with whom to engage, 4, 13

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and stakeholder group 13

4.17Key topics and concerns that have been raised through stakeholder engagement, and how the organization has reported to those key topics and concerns, including through this report

12

eConomiC indiCatoRS Source Page

EC1Direct economic value generated and distributed, including revenues, operating costs, employee compensation, community investments and payments to capital providers and governments

17

EC6Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

17

enViRonmental peRFoRmanCe indiCatoRS Source Page

EN1 Materials used by weight or volume 42, 43

EN3 Direct energy consumption by primary energy source 38

EN4 indirect energy consumption by primary energy source 38

EN6initiatives to provide energy efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

17, 38

EN7 initiatives to reduce indirect energy consumption and reductions achieved 38

EN8 Total water withdrawal by source 36

EN10 Percentage and total volume of water recycled and reused 36

EN12Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

42

EN13 Habitat protected or restored 43

EN16 Total direct and indirect greenhouse gas emissions 39

EN22 Total weight of waste by type and disposal method 42

EN24Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex i, ii, iii, and Viii, and percentage of transported waste shipped internationally

42

EN26initiatives to mitigate environmental impacts of products and services, and extent of impact

35, 36, 38

EN27initiatives to mitigate environmental impacts of products and services, and extent of impact

35, 41

EN28Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

42

48


labouR pRaCtiCeS and deCent WoRK peRFoRmanCe indiCatoRS Source Page

LA1 Total workforce by employment type, employment contract, and region 15, 25

LA4 Percentage of employees covered by collective bargaining agreements 10, 29

LA6Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs

19

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender 23

LA8Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

20, 24

LA9 Health and safety topics covered in formal agreements with trade unions 20, 27

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings 27, 29

human RiGhtS indiCatoRS Source Page

HR4 Total number of incidents of discrimination and actions taken 10

HR9Total number of incidents of violations involving rights of indigenous peoples and actions taken

10

SoCiety peRFoRmanCe indiCatoRS Source Page

SO7 Total number of legal actions for anticompetitive behaviour, anti-trust, and monopoly practices and their outcomes 10

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations 42

mininG SeCtoR indiCatoRS Source Page

MM2The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place

43

MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks. 42

MM4 Number of strikes and lock-outs exceeding one week’s duration, by country 10

CautionaRy Statement

This report may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. in certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com.

CORPORATE Directory

diReCtoRS

Wade nesmithChairman Vancouver, BC

Joseph F. ConwayPresident & Chief Executive Officer Primero Mining Corp. Toronto, ON

david demers 2, 3, 4, 5

Chief Executive Officer Westport innovations inc. Vancouver, BC

Grant edey 3, 5

Corporate Director Mississauga, ON

Rohan hazelton 1, 5

Vice President Strategy Goldcorp inc. Vancouver, BC

timo Jauristo 2

Executive Vice President Corporate Development Goldcorp inc. Vancouver, BC

eduardo luna 1

Corporate Director Mexico City, Mexico

brad marchant 1

Corporate Director Vancouver, BC

Robert a. Quartermain 2, 3

President & Chief Executive Officer Pretium Resources inc. Vancouver, BC

michael Riley 5

Corporate Director Vancouver, BC

boaRd CommitteeS1 Member of the Corporate Responsibility

Committee

2 Member of the Human Resources Committee

3 Member of the Governance and Nominating Committee

4 Lead Director

5 Member of the Audit Committee

oFFiCeRS

Joseph F. ConwayPresident & Chief Executive Officer

Renaud adamsChief Operating Officer

david blaiklockChief Financial Officer

tamara brownVice President, investor Relations

h. maura lendonVice President, Chief General Counsel and Corporate Secretary

James malloryVice President, Corporate Responsibility

david SandisonVice President, Corporate Development

louis tonerVice President, Project Development and Construction

Gabriel VoicuVice President, Geology and Exploration

CoRpoRate oFFiCeS

VancouverOne Bentall Centre, Suite 1640 505 Burrard Street, Box 24 Vancouver, BC, Canada V7x 1M6

t 604 669 0040 F 604 669 0014

toronto20 Queen Street West, Suite 2301 Toronto, ON, Canada M5H 3R3

t 416 814 3160 F 416 814 3170 tF 1 877 619 3160

opeRation oFFiCeS

mexico CityArquimedes 33, 2nd Floor Colonia Polanco 11560 Mexico, D. F. Mexico

t +52 55 52 80 6083

inVeStoR inQuiRieS

tamara brownVice President, investor Relations

t 416 814 3168

tania ShawManager, investor Relations

t 416 814 3179 F 416 814 3170 e [email protected]

WebSite

www.primeromining.com

We welcome feedback on this report or on any other aspect of sustainability at Primero. Please contact us at [email protected].

FSC Logo

Primero Mining is a proud member of the World Gold Council.

production notes

Design and Production: Macrae CreativeLocation Photography: Salvador Casares Bonastre/Diseña - Creatividad a... Tiempo!Printing: RRDPrinted in Canada

This paper has been certified to meet the environmental and social standards of the Forest Stewardship Council® (FSC®) and comes from responsibly managed forests and/or verified recycled sources.

www.primeromining.com

in February 2014, for the third consecutive year, Primero’s CSR

framework and commitments were assessed and the company was

again awarded the “Empresa Socialmente Responsable” (ESR) or

“Socially Responsible Company” designation by CEMEFi, the Mexican

Center for Philanthropy. This is a prestigious award that has been

given to fewer than 950 companies in 2013. it recognizes companies

that are committed to sustainable economic, social and environmental

operations in all areas of corporate life, including business ethics,

employee health and safety, involvement with the community,

and preservation of the environment.