Primero csr

Primero sustainability report 20121

BUILDINGsustainable value

Sustainability Report 2012


We at Primero are proud to present our second annual Sustainability Report1, which highlights our achievements

and challenges in 2012, our second full year operating the San Dimas mine.

contents

Cover Photo: Jaiden, daughter of Rosenda and Enrique, Miner at San Dimas Mine celebrating Christmas 2012

1 The 2010 Sustainability Report reported on the five months in 2010 that followed Primero’s acquisition of the San Dimas property. All currency is in United States dollars (USD) unless otherwise noted.

Building our Communities 20

Protecting the Environment 26

In Closing 33

GRI INDEX 34

CORPORATE DIRECTORY 37

About This Report 1

Letter from the President and CEO 5

Ethical, Transparent Governance 6

Building Primero Value 9

Building our People 12

Primero sustainability report 2012 1

w e at Primero are proud to present our

second annual Sustainability Report,

which highlights our achievements

and challenges in 2012. This was our second full year

operating the San Dimas mine in Mexico, since acquiring

it in August of 2010 from Goldcorp Inc., a company with

established and respected sustainability practices.

After a record year in 2012, in terms of financial and

operational performance, Primero is on track toward our

goal of building sustainable value: becoming a multi-mine,

intermediate precious metals producer, while always

supporting sustainable policies and practices in mine

exploration, development and operations. Corporate

responsibility is embedded into our daily activities. Our

goal is to continuously improve workplace health and

safety and environmental performance, while sharing the

benefits of mining with our local communities.

A key component of our commitment is transparent,

accountable sustainability reporting. Our Board of

Directors and senior management team are committed

to the sustainability reporting process and are working

to improve data collection and encourage employee

engagement in all of our sustainability initiatives.

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.

This report covers the period of January 1 through

December 31, 2012. Its content is guided by common

principles in sustainability reporting in our industry,

and the best available data, as reported by the San

Dimas mine. In 2013, the Company will begin internal

assessments of materiality, and over the medium term

we will broaden these discussions to include various

stakeholder groups. The 2011 Sustainability Report was

published in May of 2012, and we will continue to report

on an annual basis.

about this report


This report primarily discusses the Company’s operations

at the San Dimas mine in Mexico. The Cerro del Gallo

property is not discussed, as the acquisition of the project

is still in progress. To serve the Company’s growth, the

Toronto office moved in 2012. The environmental and

broader sustainability impact of this office, along with

those of Primero’s Vancouver and Mexico City offices,

had little effect on Primero’s overall impacts as they are

business offices, not mining or exploration properties.

As such, the offices’ energy consumption data are not

included in the environmental data. This report is based on

data collected in 2012, and does not re-state information

provided in earlier reports. 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 first

Sustainability Report to attain a GRI G3.1 level C standard

of sustainability reporting. The GRI is an independent

institution that has developed voluntary guidelines

for sustainability reporting. 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 on page 34-35.

MANAGEMENT APPROACH TO SUSTAINABILITY

At Primero, we believe that sustainability is

fundamental to our success. Our prosperity depends


on our performance – at the corporate level and in our

relation to our host communities – in the three pillars

of sustainability: economic achievement, community

engagement and environmental stewardship.

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 and sharing

it among 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 organisations 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.

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

organisations (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. In the future, as we improve our processes for

materiality in sustainability reporting, we will be engaging in

formal exercises to refine our definition of stakeholders and

survey their reporting needs.

We invite sustainability-related comments and

suggestions at our dedicated email address:

[email protected].

4 Primero sustainability report 2012

Our share price at the end of 2012 was 97% higher than at the end of 2011. Backed by this success, we are

entering a phase of expansion in size, diversity and production.


or Primero, 2012 was a record year for revenues, cash flow and reserve growth. This was reflected in our share price, which finished the year 97%

higher than at 2011 year end. Backed by this success, we are entering a phase of expansion in size, asset diversity and production.

At the San Dimas mine, newly discovered reserves helped support the mill expansion, which is well underway. In addition, we are also headed to becoming a two-mine company: we have nearly completed the acquisition of a new, potentially game-changing property, the Cerro del Gallo project.

Along with this growth comes the obligation to maintain, and continuously improve, our track record of sustainability. 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.

Last year I stated two safety objectives: first, to continue our year-on-year decline in accident frequency – which we accomplished. The second is still underway: I want San Dimas to become a “triple-zero” operation by 2014: zero fatalities, zero lost-time accidents and zero staff on modified duties. However, despite the emphasis we place on safe work practices and training, a tragic accident resulted in a fatality at the San Dimas mine. In response, we commissioned a complete overhaul of our safety procedures, followed by a safety retraining program for the entire workforce.

Investors are increasingly concerned with the sustainability practices of mining companies. A lack of dedicated commitment to sustainability is seen as a proxy for increased risk. Throughout the mining industry, climate change and water availability present significant challenges. We continually seek new strategies for minimizing our use of water and improving our overall environmental performance. Last year, I stated that I

expected San Dimas to achieve the Mexican government’s “Clean Industry” Certification every year starting in 2012. The certification audit took place this year, and every one of the auditor’s comments was addressed. Recently Primero was granted the “Clean Industry” Certification. I would like to take this opportunity to thank Primero’s employees for the hard work and dedication that made this possible. I’m also proud to recognize our well-trained, professional mine rescue team, who took home first place in this year’s Rescue Brigade Competition held in Durango City.

Our sustainability policies continue the high standards that were originally established by the mine’s previous owner, Goldcorp. These standards have earned us the coveted “ESR” designation (in English, “Socially Responsible Enterprise”), for the second consecutive year. As we move forward, as a two-mine company, we intend to expand our sustainability team, and work toward defining a company-wide sustainability framework.

In measuring and reporting on our performance, we strive to follow generally accepted international standards - in financial reporting, health and safety reporting, and in this report itself, which is the first Primero Sustainability Report to meet the standards of the GRI 3.1 level C. This was a target that was established last year, and I am pleased to say that this report meets those criteria. This report is guided by common principles in sustainability reporting in our industry, and the best available data as reported by the San Dimas mine. In 2013 we will begin implementing a materiality process with an internal assessment of materiality (or determining what is important to our stakeholders). Over the medium term we will broaden the discussions to include various external stakeholder groups. This is a long-term goal, aimed at building a culture of continual improvement in sustainability throughout a growing Primero.

Letter from the President and CEO

Joseph F. Conway, President and CEO

F


Sustainability is an integral component of our

company-wide strategy. Our established

sustainability program guides us in policy and

decisions regarding environmental protection, the

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

development of our host communities. We are committed

to embedding sustainability in all our daily actions. Our

goal is to continuously improve workplace health and

safety and environmental performance, and to share the

benefits of mining with local communities.

In 2013, as we become a two-mine company, we will

be expanding our sustainability team and program, and

working toward defining a company-wide sustainability

framework that will guide us in standardizing sustainability

practices across all operations.

We strive to maintain our well-established safety-focused

culture among our employees, contractors and visitors.

This includes continually improving working conditions

and conserving the health and physical safety of all our

employees. It extends to preserving the environment

and safeguarding the health of the inhabitants of the

communities in which we operate, who in the future could

become our employees.

CODE OF BUSINESS CONDUCT AND ETHICS

Our operating practices are governed by the principles set

out in our Health and Safety Policy and 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).

HEALTH, SAFETY AND ENVIRONMENT COMMITTEE

Sustainability practices are the responsibility of the Board

of Directors and the Health, Safety and Environment

Committee (HSEC). The purpose of the HSEC is to

review and recommend corporate policies and programs

and monitor activities as they relate to health, safety,

environment and social matters affecting communities

where the Company conducts operations. The HSEC

reports to the Board. Two out of the three gentlemen on

the HSEC are independent members of our Board, the third

is Joseph Conway, President and CEO, two HSEC members

are over 50 years of age and two are Canadian nationals

while the third is a Mexican national.

Our internal weekly and quarterly reporting tracks key

HSEC performance indicators, including human resources,

health and safety performance, environmental monitoring,

compliance with permits, materials inputs and outputs,

and community relations activities. The complete

HSEC guidelines are available on the Primero website

(www.primeromining.com).

We invite HSEC-related recommendations or direction

from shareholders, employees or other stakeholders at

our dedicated email address:

[email protected]. In the future, we

hope to develop a process for shareholder resolutions, or

other mechanisms, to give minor shareholders a way to

offer their opinions. We also hope to develop a process

for informing and consulting employees about working

relationships, with formal representation bodies such

as organisation-level ‘work councils’, and employee

representation in the HSEC.

HUMAN RIGHTS

Primero respects internationally proclaimed human rights,

and strives to ensure that we are not complicit in human

rights abuses.

Ethical, Transparent Governance


COLLECTIVE BARGAINING AND FREEDOM OF ASSOCIATION

All Primero workers enjoy the right to freedom of association as provided by applicable labour law. The San Dimas mine has a trade union, and at the end of 2012, approximately 11.5% of San Dimas employees were covered by a joint committee, and 45.6% of San Dimas Employees were unionized. 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) as “work by children that is economically or likely to be hazardous or to interfere with the child’s education, or to be harmful to the child’s health or physical, mental, spiritual, moral, or social development”. 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 2012, nor were any operations considered to have significant risk for incidents of child labour.

COMPLIANCE WITH LAWS AND REGULATIONS

In 2012, 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.

Two fines were filed against the Company in 2012, both relating to a tailings spill that occurred, due to a broken

pipe in the Cupias tailings dam (see the Environment-Tailings section of this report for details). As a result, PROFEPA (the Mexican environmental authority, the Procuraduria Federal de Proteccions al Ambiente) issued recommendations and Primero took a number of corrective actions. CNA (the water authority, Comisión Nacional del Agua) fined Primero $93,500 pesos, which the Company promptly paid. PROFEPA also notified the Company of a $31,200 peso fine, which Primero has filed a motion seeking to void. At the time of printing, this issue had not been resolved.

WHISTLEBLOWER POLICY

Our corporate Whistleblower Policy 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. We provide a confidential email address ([email protected]) and a toll-free complaint reporting hotline (1-877-508-5716) which is available 24 hours a day, 7 days a week.

8 Primero sustainability report 2012

111,132GOLD EQ OZ PRODUCTION

1,980TONNES/DAY THROUGHPUT

660,000OUNCES OF GOLD RESERVES

$636CASH COST/GOLD EQ OZ


Building Primero Value

P rimero is a Canadian-based company with

headquarters in Toronto and offices in Vancouver

and Mexico City. The company has one operating

mine, the San Dimas Mine, in Mexico’s San Dimas district,

and one exploration property, Ventanas, in Durango State,

Mexico. Most of the data in this Sustainability Report

relates to our Mexican operations, but our corporate

offices are included where relevant. In December 2012,

Primero announced an agreement to acquire all issued

and outstanding common shares of Cerro Resources NL.

At the time of publication, this deal had not closed and

as such, the Cerro del Gallo property is not covered in

this report.

TABLE 1. SAN DIMAS FACTS

Ownership 100% Primero

Location State of Durango (central west Mexico) approximately 150 km west of Durango and 125 km northeast of Mazatlán

DescriptionGold-silver deposit

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

2012 Production Gold equivalent* 111,132 ounces

Gold 87,900 ounces

Silver 5.13 million ounces

2012 Staff Employees 1,274

Contractors 117

% Union members 45.6%

% Mexican 100%

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

During the reporting period, there were no significant changes in the size, structure, or ownership of the mine.


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.

TABLE 2. DIRECT ECONOMIC REVENUE GENERATED IN 2012

Direct economic value generated

a) Revenues $182,939,000

Economic value distributed

b) Operating costs (goods and services) $38,569,645

c) Employee wages and benefits $28,683,336

d) Payments to providers of capital $19,074

e) Payments to governments (Mexico) $591,633

f) Community Investments $826,089

Economic Value retained $114,249,223

Durango

Guanajuato

Durango Province

San Dimas Gold-Silver Mine

Toronto Office

Vancouver Office

Ventanas Exploration Property

Mazatlan

Mexico City Office

Cerro del Gallo Gold-Silver-Copper Development Project

Guanajuato Province


At Primero, we believe that sustainability is fundamental to our success. Our prosperity depends on our performance -

at the corporate level and in our relation to our host communities - in the three pillars of sustainability: economic

achievement, community engagement and environmental stewardship.


O ur people are our most valuable asset, and we

treat people fairly and without discrimination,

with full regard for their human rights. We know

that our success depends on the efforts of skilled, hard-

working people, and in return we provide ongoing safety

and rescue training, and strive to maintain a safety-aware

work culture in which everyone is continually reminded

of the importance of keeping themselves and their

colleagues healthy and injury-free.

HEALTH AND SAFETY

Our commitment to safety, health and welfare includes

our employees, contractors and the visitors to our site,

and extends to everyone in nearby communities. In

2012, tremendous effort was spent on improvements to

the mine’s health and safety management system, and

on improving the safety and security behaviour of our

staff, through education and training, and refinements

to policies and procedures that promote safety.

HEALTH AND SAFETY GOVERNANCE

At the San Dimas mine, we operate a number of

committees and groups whose purpose is to maintain a

safety-first culture and monitor safety performance.

Central Safety & Security Committee is a Formal Health

and Safety Committee that 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 is an 18-member

subcommittee that has joint management/labour

representation and defines safety-related work

procedures and instructions.

Building our People


We know that our success depends on the efforts of skilled, hard-working people, and in return we provide

ongoing safety and rescue training, and strive to maintain a safety-aware work culture in which everyone is continually

reminded of the importance of keeping themselves and their colleagues healthy and injury-free.


Preventive Observations Sub-Committee detects

unsafe acts and conditions and follows up until they

are corrected. In 2012, 4,588 individual “Preventative

Observations” were reported and corrected. There were

also 11 tours of operational areas by multi-functional

groups. Their submitted observations were followed

by 82% verified compliance. This committee is at the

facility level or higher.

Prevention Circles have been formed at San Dimas

to develop accident prevention solutions related to

rock fall. These groups help monitor and advise on

occupational safety programs.

Accident & Incident Investigation Sub-Committee

analyzes and investigates events of potential risk. In 2012,

thirteen incident and accident investigations took place

and several meetings were held to improve processes and

follow-up on recommendations. Seventy eight percent

compliance with recommendations was observed.

COMPLIANCE WITH STANDARDS

Primero participates in a Self-Management Program on Health & Safety in the Workplace, in compliance with the Mexican Secretariat of Labour & Social Welfare (Secretaría del Trabajo y Previsión Social). The results of

the Secretariat’s evaluation in 2012 were:

Health & Safety in the Workplace Management System:

97.3% compliant

Health & Safety in the Workplace Standards:

95.8% compliant

HEALTH AND SAFETY PERFORMANCE

The mining industry recognizes the dangers inherent in

the type of work we do. Accordingly, we place enormous

emphasis on safe work practices and training – efforts

which have resulted in a steady year-on-year decline in

overall accident frequency.


However we regret to report a tragic accident that resulted

in a fatality at the San Dimas mine in 2012. We responded

by commissioning a complete overhaul of our safety

TABLE 3. INJURY FREQUENCY

Injury Type 2011 2012

Lost time injuries 3 6

Total reportable injuries 27 20

Significant potential incidents 65 42

Fatalities 1 1

Lost Time Injury Frequency Rate (LTIFR*) 0.18 0.36

All Injury Frequency Rate (AIFR**) 1.84 1.5

* 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.

procedures, followed by a safety retraining program for

the entire workforce. Our objective is to become a zero

harm operation.

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.


EMERGENCY RESPONSE

The San Dimas mine has a history of strong emergency-

preparedness practices, and maintains a specially-trained

rescue team, that is trained and equipped to handle nearly

any type of emergency that could occur in an underground

mine. Rescue team members receive specialized training

in first aid, mine rescue and rope rescues including

rappelling and vertical rescue.

The San Dimas rescue team won first place in the Mine

Rescue and Bench Test during the Rescue Brigade

Competition held in Durango City. This is the seventh

year in a row in which our team has won recognition

for outstanding performance in national and regional

competitions.

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 & environmental monitoring

Annual medical exams

Anti-doping and alcohol tests for workers

This is the seventh year in a row in which the San Dimas rescue team has won recognition for outstanding

performance in national and regional competitions.


TABLE 4. STAFF BREAKDOWN

Location Full-Time employees Hourly (Union) Contractors Women Men Total

Mexico City Office 10 0 0 4 6 10

San Dimas Mine 576 581 117 115 1,159 1,274

Vancouver Office 3 0 3 4 2 6

Toronto Office 13 0 0 5 8 13

Total 602 581 120 128 1,175 1,303

San Dimas maintains on-site hospital facilities with x-ray,

ultrasound, a surgery room and clinical lab, which are

available for all employees and contractors. To the best

of the Company’s knowledge, there were no workers who

are involved in occupational activities who have a high

incidence or high risk of specific diseases.

A monthly safety campaign focuses on a specific topic.

The campaigns include awareness talks, training courses

and revision of standards. Topics have included among

others: lock out – tag out, defensive driving, safety in work

at heights and safe handling of sodium cyanide.

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.

Nearly half (45.6%) of our mining workforce is unionized.

In this traditional mining region, and 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 5. LOCAL SENIOR MANAGEMENT*

Number of Senior Managers 17%

Percent who are local residents

(Naturalised citizens or permanent visa holders)

99%

* Senior management is defined as Superintendents, Managers, and General Manager.

REGIONAL HIRING

76% Durango state

9% Sinaloa state

6% Zacatecas state8% Guanajuato state

1% Otros state


HEALTH AND SAFETY AGREEMENTS

Many employment positions at the San Dimas mine are

unionized, which includes health and safety agreements.

The following health and safety topics are covered by local

agreements signed by Primero:

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

TABLE 6. EMPLOYEES COVERED BY JOINT HEALTH AND SAFETY COMMITTEES

Number of employees 1,274

Employees covered by joint agreements 147 (11.5%)

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, training can be taken in person or online. Topics include:

Workshops in electrical maintenance, mechanical and hydraulic equipment for mine

Workshops in handling explosives and hazardous substances

Human development workshops

Management workshops

Leadership workshops

Mine rescue crew workshops

“Tools for the job” workshops

Primero carries out an annual performance evaluation

for every employee, which covers personal development

objectives, skills and abilities. The company has standard

policies for providing benefits to employees who study

or teach. For unionized workers, a worker-preparation

scholarship is provided in one of the clauses of the

union’s agreement.

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 San Dimas mine funded the construction

and equipping of the school and provided 50% of teachers’

salaries for the first five years of operation. Its purpose is to

improve the career prospects for local youth, and provide a

source of trained young professionals for the mine.

CONALEP’s first class of 37 students graduated the

Metallurgy and Electromechanical programs in 2007. To

date, approximately 130 students have graduated, 60% of

whom have joined the Primero workforce.

In terms of assistance programs to support employees

who are retiring or who have been terminated, Primero

provides severance pay.

DISTRIBUTION OF EMPLOYEE TRAINING

95% OF ALL 1,216

WORKERS RECEIVED TRAINING

ASSISTANTS 2%SUPERINTENDENTS 1%

AREA HEADS 5%

SUPERVISORS 54%

LABOURERS 38%


CONALEP’s first class of 36 students graduated the Metallurgy and Electromechanical programs in 2007. To

date, approximately 130 students have graduated, 60% of whom have joined the Primero workforce.


W e at Primero are constantly aware that every action we take has an effect on nearby communities. We are grateful

that we are welcome among them and feel the obligation to improve conditions for local communities where possible.

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.

In the larger community, we are helping to create a sustainable local economy through small business

development, and have helped launch many new small businesses including a greenhouse garden, bakery, laundromat, chicken farm and sewing centre. We have contributed to the construction of sports facilities for the community’s benefit. We support local health care facilities and subsidize childcare, to help our working-parent employees and the communities at large. We promote the growth of a self-sustaining local economy by helping to develop new, non-mining businesses.

Building our Communities

TABLE 7. PUBLIC INFRASTRUCTURE/COMMUNITY CONTRIBUTIONS*

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

$232,734

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

$593,355

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


Our subsidy benefits a total of 255 students, including 70 preschool students, 120 elementary and 65

secondary students.


COMMUNITY TRAINING

We support education and training, though subsidizing

teachers’ salaries, building classrooms and helping to

pay the tuition for hundreds of students from pre-school

through secondary school. We subsidize technical

colleges and technical training for future miners.

In collaboration with the Mexican government, we

support an Adult Education Program that is available to

employees, their families and other local residents.

In addition to our funding of the CONALEP trade school in

Tayoltita, Primero provides a 75% subsidy to the students

attending the Patronato Pro Escuela Bruno Martínez

school in Tayoltita, whether or not they are children of

mine workers. Our subsidy benefits a total of 255 students,

including 70 preschool students, 120 elementary and 65

secondary students.

TABLE 8. ACADEMIC SCHOLARSHIPS

Number of scholarships Level of study Staff that benefits

21 Technical High School Studies Union workers’ children

12 Computing courses Union workers’ children

7 Technical studies / CONALEP Union workers’ children

8 High School Employees’ children

10 Bachelor’s degree Employees’ children

2 Master’s degree Employees’ children


In response to employee requests for greater career

opportunities and skills development, we teamed up

with the Mexican government and launched an Adult

Education Program for employees, families and residents.

Since 2006, more than 260 students have graduated from

the program.

Primero and the Public Security Secretariat provided a

School for Parents workshop on teen education. This six-

month program (three sessions per month) was attended

by a pilot group of 60 workers.

Over 1,300 students attended workshops and

presentations on addiction and addiction prevention. Over

150 hours of prevention activities were delivered, directed

at primary, secondary and high school levels.

TRAINING WOMEN

We promote the economic status of women by proactively

hiring female workers in all areas, and we support the

training of women for heavy-duty equipment operations.

The “Miner Women” project aims to increase the number

of women employed in all areas of the San Dimas

operation, and to elevate their status and improve their

quality of life. Women have been recruited and trained as

specialized machinery operators, especially large, heavy-

duty equipment and electro-hydraulic jumbos. Graduates

of the program become significant financial contributors,

and in some cases, the family’s sole income earner.

For the third year in a row, we collaborated with

SEMARNAT (the Mexican Secretariat of Environment

and Natural Resources) to deliver a workshop on “Product

manufacturing using solid wastes”. Forty women (wives

of mine workers) from the Las Truchas community

participated, and benefited from a three-week temporary

employment program.

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. One of the factors in this decision

was the low attendance in recent months by children of

the community. The facilities were returned to Primero.

SEDESOL is willing to support the reinstatement of the

daycare program should the Company and community

request it.

ENVIRONMENTAL AWARENESS

In 2012, Primero delivered 122 environmental-education

talks in primary, elementary and secondary schools,

reaching a total of 2,639 students. Another 56 talks were

given to company workers.


Subjects covered included: Piaxtla River Water Quality;

the Tailings Filtering Process; the Piaxtla River Cleaning

Campaign; Hazardous Waste Management, Saving Energy,

Saving Water and Global Warming.

CULTURE AND RECREATION

Recreational, cultural and sporting activities were provided

for employees and their families in the mining camp.

Sports activities ranged from weightlifting, aerobic training

and taekwondo to tennis and swimming. Cultural and

recreational activities included painting, tailoring, and

hair-cutting workshops.

COMMUNITY SURVEY

In 2011, we conducted a community needs assessment

survey, intended to determine the economic, social and

cultural situation and needs of the San Dimas community.

925 surveys were completed, representing 95% of the

local community. The results formed the basis of our 2011 -

2015 community plan and annual surveys will be repeated

until 2015, in order to evaluate the results of the programs

that we implement.

After 2015, we will continue the annual survey to gather

information on general family relationships, health,

community and addiction.

PRIMERO MAGAZINE

In 2012 we launched Primero Magazine, a bimonthly

magazine that serves as a communication channel to the

workers of San Dimas and their community. It promotes

achievements and supports the community’s personal and

socio-cultural growth. The six issues that were produced in

2012 were very well received by readers.

MINER’S DAY OPEN HOUSE

On July 11, Miner’s Day, the Company’s facilities were

devoted to a mini-exposition, in which the community

and workers’ families were invited on a tour to view the

machinery and equipment. The tour allowed children to

see their parents’ workplace.


The “Miner Women” project aims to increase the number of women employed in all areas of the San Dimas operation, and to elevate their status and improve their quality of life.

ESR RECOGNITION

In April 2013, we were once again designated a “Socially

Responsible Enterprise” (ESR) by the Mexican Centre for

Philanthropy (Centro Mexicano para la Filantropia). We

also received ESR designation in 2012.

The ESR designation has been earned by fewer than

774 companies across Mexico. It recognizes companies

operating in Mexican territory that make a voluntary

and public commitment to manage their activities

in a socially responsible way, as part of their culture

and business strategy. It indicates that a company is

committed to sustainability in four key areas:

1. Business ethics

2. Care and preservation of the environment

3. Quality of life in the Company

4. Bonds with the community


O ur environmental focus is to act with

responsibility and transparency in developing

mining projects and to proactively seek to

minimize the footprint of our operations. 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.

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.

At all times, we manage the San Dimas mine

in compliance with, or in excess of, all relevant

environmental standards. The Environmental

Protecting the Environment

Management System (EMS) in place at San Dimas

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. Our aim at San

Dimas is to match the environmental standards of the

leading gold and silver producers.

Recently, Primero was granted the “Clean Industry”

Certification by the Procuraduria Federal de Proteccion

al Ambiente (Mexican EPA).

ENERGY CONSUMPTION AND GREENHOUSE GAS EMISSIONS

In the past, all of the energy consumed in the District

of San Dimas was provided by the Federal Commission

of Electricity (Comisión Federal de Electricidad y

Generadores) with the exception of back-up diesel


Our Environmental Management System (EMS) is widely respected for its effectiveness in identifying

and avoiding, reducing or eliminating the environmental impacts of mining and processing.


In 2012, a Phase II expansion was approved, that will

increase capacity from its current 50 MW/h to

approximately 70 MW/h. This would support mine

expansion and allow excess power to be sold into the

Mexican national energy grid.

Primero uses both direct (e.g. primary energy sources

such as diesel and gasoline) and indirect (energy that

is produced by converting primary energy into other

forms (e.g. electricity)) energy. The tables below

outline the different sources that are used at

San Dimas.

generators. In 2008, the Las Truchas hydroelectric

plant began operation. Today, our San Dimas mine

energy use and GHG emissions are significantly

decreased by our use of hydroelectric power from the

Las Truchas hydroelectric plant, which is owned and

operated by Primero.

The Las Truchas dam and power plant harness the

power potential of the Las Truchas basin to provide the

mine with economical, reliable and clean power. The 34

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

Dimas mine. In 2010 a Phase I expansion was

connected to the Federal Commission of Electricity’s

supply system.

TABLE 9. ENERGY CONSUMPTION

Direct 2011 2012

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

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

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

Indirect

Electricity purchased 5,029.20 GJ (diesel generators)

142,365.60 GJ (las Truchas)

66,438.00 GJ (Mexican Federal

Power Commission)

12,517.20 GJ (diesel generators)

123,847.20 GJ (las Truchas)

98,481.60 GJ (Mexican Federal

Power Commission

Electricity generated on site 17,940.96 GJ 22,382.73 GJ

Increased production in 2012 is largely responsible for the higher energy use and Greenhouse Gas emissions.


The drought of 2011 led to the use of diesel generators in 2012 due to the short supply of water that affected operations of the Las Truchas hydroelectric dam. To determine greenhouse gas emissions at San Dimas, energy consumption information for the different areas of the mine is taken from an internal register. These

numbers are subsequently multiplied by the National Greenhouse Accounts Factors to convert fuel amounts into atmospheric emissions (in CO

2e). These CO

2

conversion factors are the same factors that were used when the mine was owned by Goldcorp.

TABLE 10. GREENHOUSE GAS EMISSIONS (AS TONNES OF CO2e)

Direct 2011 2012

Diesel (stationary) 1,323 1,651.60

Diesel (transport) 6,823 6,714.20

Gasoline 272 146.80

Indirect

Electricity 8,396 15,236.50

Total 16,516 23,749.10

CLEAN INDUSTRY CERTIFICATION

For years, San Dimas has been “Clean Industry”

certified by PROFEPA. In 2012 the Clean Industry

certification audit was completed and we passed with

100%. The report was submitted to PROFEPA and

certification was granted in early 2013.

The San Dimas operation has also been engaged in a

voluntary self-evaluation program for many years, with

the aim of improving performance by identifying

deficiencies, measuring performance and implementing

improvement programs to remain in compliance with all

of the relevant regulations. As Mexican laws and

regulations evolve and become more closely aligned

with world standards, we at Primero are committed to

remaining in compliance.

AIR QUALITY MEASUREMENT

In 2012, 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.

The study confirmed that:

Particulates from mining processes were in compliance

with regulations (NOM-043-SEMARNAT-1993)

Emissions from the plant’s burners were in compliance

with regulations (NOM-085 - SEMARNAT-1994, for

burners with heating capacity of less than 5250 Mj/h).

WATER

Water management is a prime concern at Primero.

Rainwater is scarce in the San Dimas region and our

objective at all times is to minimize water use through

recycling, re-use and treatment. In 2012, 501,300 m3 of

water were recycled (e.g. returned from the tailings

dam), up from 281,000 m3 in 2011.


In 2012, we submitted two waste management plans to SEMARNAT:

The Hazardous Waste Management Plan was developed with the aim of planning, reducing, collecting, storing, transporting, and performing final disposal of hazardous residues generated by service,

exploration, mining, and extraction of gold and silver minerals from the mine site.

The Mining Waste Management Plan implements a comprehensive management system for mining waste materials, such as waste rock and tailings, and implementing operational techniques for reusing and

TABLE 11. WATER USE

Water Source 2012

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

Surface water, (including water from wetlands, rivers, lakes, and oceans)

0

Ground water 316,000 m3

Rainwater collected directly and stored by the reporting organisation;

12,000 m3

Waste water from another organisation 0

Municipal water supplier or other water utilities (drawn directly from a public facility)

0

Total water used 610,000 m3

WASTE MANAGEMENT

At San Dimas, waste materials are generated. Non-hazardous process waste includes the rock and materials that are removed in order to access the mineralized ore, and the tailings and waste rock that are left after the valuable gold and silver mineral

TABLE 12. HAZARDOUS AND NON-HAZARDOUS WASTE

Waste Type 2012

Non-hazardous waste 268 tonnes

Hazardous wastes 131 tonnes

concentrate has been extracted. Hazardous wastes are materials that can pose a threat to health unless safely managed (e.g. used oil or grease, contaminated soil, batteries, etc).


reducing them. It also ensures that areas destined for final disposal comply with safety measures to ensure the stability of the deposit, preventing the dispersion of acid drainage, leachate and runoffs to the environment – including monitoring.

In 2012 we also submitted a plan for Special Waste management (electronics, scrap metals and tires) to the State of Durango’s Ministry of Natural Resources. This plan should significantly reduce the generation of special waste and ensure appropriate disposal, thus preventing environmental damage.

TAILINGS

Tailings management at San Dimas is challenged by the district’s rugged terrain and steep canyons. Following a number of improvements relating to the stability of the dams and the management of our tailings over a number of years, our tailings sites fully comply with international guidelines.

At the Tayoltita tailings operation, significant capital improvements have been made in recent years. Pumps and pumping systems have been upgraded. Spill containment systems have been improved and a spill recovery trough installed. The tailings dam area was fenced to prevent access by people and animals and further improvements to the dam and operating practices are planned.

In the Piaxtla River, downstream of the Tayoltita tailings deposits, water quality monitoring has not shown any environmental impact, although in periods of heavy rain, the suspended solids in the water increase an average of 43,000 tonnes of solution per month, which was recycled into the leaching process.

In January 2012, a tailings spill occurred, due to a broken pipe in the Cupias tailings dam. Tailings containing 5 ppm cyanide were spilled into the Piaxtla River, affecting a total area of 2.5 kilometres. The fault

Following a number of improvements relating to the stability of the dams and the management of our tailings, our tailings

sites fully comply with international guidelines.


Biodiversity and Aquatic Monitoring

In 2012 we continued to engage a third-party consultant (Environmental Consulting and Technology Inc. de CV) to monitor water quality and the abundance and diversity of aquatic life in the Piaxtla River, at five monitoring stations upstream and downstream from the San Dimas mine. At all monitoring stations, the aquatic habitat was sub-optimal, but its characteristics were suitable to support the epifauna and fish populations.

Through these studies of aquatic life, the consultants have identified and reported fish species that were not thought to be in the Piaxtla River, and Primero has provided scientific data to the CONABIO database, of the National Commission for the Knowledge and Use of Biodiversity.

Mine Closure and Reclamation

Every mine has a finite life and as mining progresses at San Dimas, we continue to update our plans for the mine’s eventual closure. In our financial statements we have accounted for the reclamation and closure costs for the mine, which ensure that the lands and water will be returned to a safe and environmentally sound state on termination of mining.

While operations continue, we practice progressive reclamation of any lands that are no longer used for mining activities. In 2011 we reclaimed three of the older tailings dams near the Tayoltita mill, and used the land as a soccer field, a softball field, and a garden nursery. In 2012, reclamation was completed on the tailings facilities of the San Antonio Mill, which was closed in 2003.

TABLE 13. MINING WASTE

Process Waste 2011 2012

Waste Rock (000s tonnes)

1,038

76% within the mine, 24% outside the mine

950

Tailings (000s tonnes)

663 800

was corrected and the relevant water management and environmental authorities, CNA and PROFEPA, were notified. The municipality of San Dimas considered the incident to be localized and under control and stated that the efficiency of Primero’s emergency response limited the damages to the death of small concentrations of fish, without any impact on other animals.

PROFEPA issued recommendations, and all their requests were implemented. Primero’s corrective actions included the design and construction of a containment structure for the tailings pipe, which will be fully operational by June 2013 once installation of a second new tailing pump is complete.

In September, CNA fined Primero $93,500 pesos, which the Company promptly paid. Following the final CNA resolution, PROFEPA notified the Company of a $31,200 peso fine for non-compliance to a “hazardous waste” regulation. Primero filed a motion with the H. Tribunal De Justicia Fiscal and Administrativa in November to void PROFEPA’s resolution. At the time of printing, this issue had not been resolved.


in closing

In this, our second annual Sustainability Report, we at Primero are demonstrating our commitment to improving the quality and thoroughness of our reporting standards and practices. These efforts have resulted in the first Primero Sustainability Report to meet the Global Reporting Initiative 3.1 Guidelines, Level C.

As we move forward, we hope to build a culture of continual improvement in sustainability throughout a growing Primero. In this report we have set numerous performance targets for 2013 and beyond, based on an ongoing initiative for improvement in the scope, depth and transparency of our reporting, to meet the increasing expectations of all of our stakeholders.


gri index

PROFILE DISCLOSURES

1. STRATEGY AND ANALYSIS Source page

1.1 Statement from the most senior decision-maker of the organization 5

2. ORGANIZATIONAL PROFILE

2.1 Name of the organization Cover

2.2 Primary brands, products, and/or services 9, 10

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures 9

2.4 Location of organization's headquarters 9

2.5Number of countries where the organization operates and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

9

2.6 Nature of ownership and legal form 1, 9

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) 10

2.8 Scale of the reporting organization 9, 10

2.9 Significant changes during the reporting period regarding size, structure, or ownership 2, 9

2.10 Awards received in the reporting period 5, 16, 25

3. REPORT PARAMETERS

3.1 Reporting period (e.g., fiscal/calendar year) for information provided 1

3.2 Date of most recent previous report (if any) 1

3.3 Reporting cycle (annual, biennial, etc) 1

3.4 Contact point for questions regarding the report or its contents 2, 37

3.5 Process for defining report content 1

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

2

3.7 State any specific limitations on the scope or boundary of the report 2

3.8Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations

N/A

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

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

2

3.12 Table identifying the location of the Standard Disclosures in the report 2


4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT Source page

4.1Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight

6, 37

4.2Indicate whether the Chair of the highest governance body is also an executive officer

6, 37

4.3For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members

6, 37

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

6

4.14 List of stakeholder groups engaged by the organization 3

4.15 Basis for identification and selection of stakeholders with whom to engage 3

PERFORMANCE INDICATORS

ECONOMIC

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

10

EC7Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operations

17

EC8Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement

20, 24

ENVIRONMENTAL

EN3 Direct energy consumption by primary energy source 28

EN4 Indirect energy consumption by primary energy source 28

EN8 Total water withdrawal by source 30

EN16 Total direct and indirect greenhouse gas emissions by weight 29

SOCIAL

LA1 Total workforce by employment type, employment contract, and region 17

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

12, 14, 18

LA9 Health and safety topics covered in formal agreements with trade unions 18

LA11Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

18

HR5Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights

7

HR6Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

7

SO7Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

7

SO8Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

7, 32


CAUTIONARY STATEMENTThis 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, British Columbia

Joseph F. Conway1

President & Chief Executive Officer, Primero Mining Corp. Toronto, Ontario

David Demers2, 3, 4, 5

Chief Executive Officer, Westport Innovations Inc. Vancouver, British Columbia

Grant Edey3, 5

President & Chief Executive Officer, Khan Resources Inc. Mississauga, Ontario

Rohan Hazelton1, 5

Vice President Strategy, Goldcorp Inc Vancouver, British Columbia

Timo Jauristo2

Executive Vice President Corporate Development, Goldcorp Inc. Vancouver, British Columbia

Eduardo Luna1

Corporate Director Mexico City, Mexico

Robert A. Quartermain2, 3

President & Chief Executive Officer, Pretivm Resources Inc.Vancouver, British Columbia

Michael Riley5

Corporate Director Vancouver, British Columbia

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 & Corporate Secretary

David SandisonVice President, Corporate Development

Gabriel VoicuVice President, Geology & Exploration

CORPORATE OFFICES

VancouverOne Bentall Centre Suite 1640 505 Burrard Street, Box 24 Vancouver, BC V7X 1M6 Canada

T: 604 669 0040 F: 604 669 0014 TF: 1 877 619 3160

TorontoSuite 2301, 20 Queen Street West Toronto, ON M5H 3R3 Canada

T: 416 814 3160 F: 416 814 3170 TF: 1 877 619 3160

Production Notes

Design and Production Macrae Design

Location Photography Salvador Casares Bonastre/ Diseña - Creatividad a... Tiempo!

Printed in Canada

BOARD COMMITTEES1 Member of the Health, Safety and

Environment Committee

2 Member of the Human Resources and Compensation Committee

3 Member of the Governance and Nominating Committee

4 Lead Director

5 Member of the Audit Committee

OPERATION OFFICES

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

T: +52 55 52 80 6083

INQUIRIES

Tamara BrownVice President, Investor Relations

T: 416 814 3168 E: [email protected]

Tania ShawManager, Investor Relations

T: 416 814 3179 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].

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.

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


CORPORATE OFFICE

Suite 2301, 20 Queen Street West

Toronto, Ontario, M5H 3R3

Canada

P 416 814-3160

F 416 814-3170

TF 1 877 619 3160

In this, our second annual Sustainability Report, we at Primero are demonstrating our commitment to improving the quality and thoroughness of our reporting standards

and practices. These efforts have resulted in the first Primero Sustainability Report to meet the

Global Reporting Initiative 3.1 Guidelines, Level C.