Compañía Minera Autlán B de C : Fourth Quarter Audited

2020 Fourth Quarter Report

Compañía Minera Autlán, S.A.B. de C.V.

2020 Fourth Quarter Report

San Pedro Garza García, N.L., Mexico, March 29th, 2021.- Compañía Minera Autlán, S.A.B. de C.V. and Subsidiaries (Autlán o the Company) presents its fourth quarter 2020 (4Q20) audited financial and operating results in accordance with the International Financial Reporting Standards (IFRS). Figures may vary due to rounding.

Results and Relevant Events

• Increase in EBITDA versus 4Q19
• Improved quarterly and cumulative EBITDA/Sales margin
• Ferroalloys and manganese nodules exports reached new record
• 22% diversification in annual sales for non-steel markets
• Issuance of unsecured bonds
• Financial strength and net debt level of 2.2x
• Safety record with the lowest incident rate
• COVID-19Health Security Distinction by the IMSS1
• Later Event: Reopening of the Gómez Palacio Plant in February 2021

Acquisition of Cegasa Portable Energy (Autlán EMD)

As part of the strategic plan, in February 2020 Autlán acquired Cegasa Portable Energy (Cegasa), a company located in the Basque Country, an autonomous community of Spain. With more than 60 years of experience and a stable generation of EBITDA, it is recognized as the second largest producer of Electrolytic Manganese Dioxide (EMD) in the European Union. EMD is a key input in the production of alkaline batteries. This acquisition contributes to our growth in the battery industry and diversification of sources of income towards non-steel related operations. Furthermore, it represents the first step towards the geographical expansion of operations outside of Mexico serving the European Union market. The details of this transaction were duly disclosed in the Press Release dated February 10, 2020.

• Mexican Healthcare System

February 24, 2021

www.autlan.com.mx

1

2020 Fourth Quarter Report

Cegasa, now Autlán EMD, is now a new division within the company's operating structure:

Operating Structure

Autlán

Autlán	Autlán	Autlán	Autlán
Manganese	Energy	Metallorum	EMD

Manganese	Manganese	Precious
Mining	Ferroalloys	Metals

Industry and Operations

Autlán Manganese and EMD

During 2020, the steel and manganese industry were affected by the economic slowdown that began in 2019, a situation intensified by the effects of the COVID-19 pandemic.

Globally, crude steel production has shown a significant recovery in the second half of 2020. After a 6% decrease in the first semester compared to the same period in 2019, it closed the year with an annual contraction of only 1%. In contrast, derived from the importance of the Asian market, the steel production in China showed increases of around 5% in annual terms in 2020. In Mexico, steel production decreased by 9% as a result of the country's economic slowdown.

Prices in China for manganese ore showed an annual decrease of 17%. Despite high inventory levels registered in Chinese ports at the end of the year, the outlook of more demand has driven the gradual recovery of international prices in December 2020. Therefore, prices of ferroalloys registered annual decreases of 10%, 16% and 18% for High Carbon Ferromanganese, Silicomanganese and Medium Carbon Ferromanganese, respectively. The increased demand for these alloys in the US market along with a limited supply in December has caused a rapid rise during the end of 2020 and early 2021.

The EMD market continues to show stability in consumption within the European Union with a positive performance of its price, in line with the latest trends in manganese mineral.

February 24, 2021

www.autlan.com.mx

2

2020 Fourth Quarter Report

Autlán Energy

This quarter highlights as our best in terms of energy generation for 2020. The Atexcaco Hydroelectric Power Plant was able to satisfy 26% of the total electrical energy required by our ferroalloy plants This represented cost savings of $1.6 million dollars.

When compared against 2019, generation decreased by 2% due to the low rainfall in the region. Despite this, savings of $5.9 million dollars were achieved during 2020.

In addition, the Power Purchase Agreements (PPA's) with different private providers represented 15% of energy consumption with savings over $340 thousand dollars during the quarter and $1.3 million dollars in the year.

Autlán Metallorum

Regarding precious metals, in an evident contrast to the global economic crisis caused by the COVID-19 pandemic, 2020 was a year with attractive returns. The monetary policy decision by the FED to maintain interest rates close to 0%, as well as the measures to counteract the effects of COVID-19 including halts and restrictions that have affected the capital market, benefited the demand for gold as a strategic investment asset.

The performance of the gold price was mainly favorable throughout the year with a 25% yield, showing some stability during 4Q20.

The Autlán Metallorum Division maintained efforts to preserve the health and safety of employees and operations. The order made by the Mexican government which stated that the gold industry was not considered an essential activity at the time, caused a halt in this Division during the second quarter of 2020 that affected the volume deposited in our leaching pads. In addition, there were some operational problems, a lower recovery and geological challenges when finding a greater dilution than estimated. This decreased the production of this mineral in 2020. As a response, efforts on geology and mining planning increased in order to recover some level of production.

The drop in sales volume in the fourth quarter was partially offset by the growth in the average gold price compared to the same period in 2019.

February 24, 2021

www.autlan.com.mx

3

2020 Fourth Quarter Report

Relevant figures

Adoption of the Dollar as Functional and Reporting Currency

According to the International Financial Reporting Standards (IFRS), the functional currency must be determined depending on the currency of the economic environment in which the issuer and its subsidiaries predominantly operate, which in the case of Autlán since 2016 is the US dollar. Due to this situation, the unaudited figures reported here have been prepared in that currency. The consolidated information of 2020 includes Autlán EMD as of February 2020.

Earnings Report for the fourth quarter 2020

Income Statement for the fourth quarter of 2020

(audited figures in thousands of dollars, unless otherwise specified) (according to IFRS)

	Accumulated Figures		Quarterly Figures
	20202	2019	4Q20	3Q20	2Q20	1Q201	4Q19
Net Sales	346,240	420,128	82,452	79,349	84,217	100,221	91,036
Ferroalloys (thousand MT3)	213.9	218.3	53.8	50.8	49.0	59.9	53.1
Manganese Mining (thousand MT)	193.2	124.7	41.3	56.2	69.1	26.6	6.9
Power* (GWh)	201.3	204.3	60.6	53.7	42.2	44.8	67.1
Precious metals (thousand Eq Oz)	30.2	68.8	4.9	5.3	6.3	13.7	13.3
EMD (thousand MT)	11.0	NA	2.9	2.9	3.1	2.0	NA
Cost of sales	-283,884	-341,905	-73,203	-63,453	-62,870	-84,358	-81,168
Gross profit	62,355	78,223	9,249	15,896	21,347	15,864	9,868
Operating expenses	-52,230	-55,429	-14,644	-11,460	-13,143	-12,983	-14,422
Operating income	10,125	22,794	-5,396	4,436	8,204	2,880	-4,555
EBITDA	68,009	79,337	10,342	17,961	20,790	18,917	9,295
Net profit	-15,287	-12,193	-19,437	-10,788	-7,129	22,067	-20,056

* When consolidating results, Autlán Energy sales to our own manganese ferroalloy plants are eliminated.

In the midst of a challenging environment, the company shows its operational flexibility and quick response to adapt to market conditions by maintaining and improving its margins even with the decline in sales, exhibiting stable results and a strong financial structure.

• Consolidated figures include Autlán EMD as of February 2020.

February 24, 2021

www.autlan.com.mx

4

2020 Fourth Quarter Report

Net sales

The economic slowdown magnified by the effects of the COVID-19 in Mexico and the steel industry has had an impact on the demand for manganese ferroalloys within the country. As part of the strategy to counteract this situation, Autlán increased the annual export volume of manganese nodules and ferroalloys by 115% and 46%, respectively, registering export records for both products.

In 4Q20, the company reached a net income of $82.5 million, 9% less compared to that in 4Q19. As for the Autlán EMD Division, operations maintain stable, contributing close to $5.2 million dollars to Autlán's consolidated sales.

For the year, consolidated sales registered $346.2 million dollars, decreasing by 18% compared to that reported in the same period of 2019 mainly due to lower prices and volumes of manganese ferroalloys. It should be noted that our revenues unrelated to the steel industry represented 22% of the annual consolidated net sales because of our recent market diversification efforts.

Cost of Sales

The cost of sales decreased by 10% compared to the same period of the previous year, registering a figure of $73.2 million dollars and representing 88.8% of sales.

For the 2020, the cost of sales totaled $283.9 million dollars compared favorably against the $341.9 million dollars that took place in the same time frame of the previous year, thanks to the use of synthetic raw materials and technologies developed by Autlán that allowed us to have a better operational flexibility.

Operating Expenses

Operating expenses for the quarter totaled $14.6 million, 2% higher than the 4Q19 due to an increase in selling expenses associated with the aforementioned export levels. In the entire year, this item amounts to $52.2 million dollars, 6% less compared to the same period of 2019 as a result of the effort to reduce Administration Expenses.

In the quarter there was an operating loss of $5.4 million dollars, a figure $0.8 million higher than that registered in 4Q19. This loss contrasts with the accumulated operating profit of $10.1 million registered in the year.

February 24, 2021

www.autlan.com.mx

5