Grupo Mexico B de C : 01.1st Quarter 2022 Report

RESULTS

First Quarter 2022

Mexico City, May 2nd, 2022

Grupo Mexico, S.A.B de C.V. ("Grupo Mexico" "GMexico"- BMV: GMEXICO)

As a result of the intensive capital investment program of the past 20 years, Grupo Mexico is positioned to take advantage of the upward cycles of metal prices. Faced with a complicated local and global macroeconomic environment and inflationary pressures worldwide, Grupo Mexico and its three Divisions showed increases in EBITDA during 1Q22.

Revenues in the first quarter of 2022 reached US$3.76 billion, 9.6% higher than in 1Q21, and remained at similar levels to 4Q21. The Mining Division's revenues totaled US$3.08 billion in 1Q22, 9.8% higher than in 1Q21, due to the increase in the prices of Copper (+17.7% LME), Molybdenum (+69.0%), Zinc (+36.0), and Gold (+4.2%). In the Transportation Division, revenues grew 8.6% during 1Q22 to US$644 million. The Infrastructure Division achieved US$146 million in accrued net revenues, a decrease of 1.1% during 1Q22.

On February 28, a small group of protesters from four communities took control of the Viña Blanca water reservoir in Cuajone, cutting off the water supply to approximately 5,000 inhabitants. Prior to this illegal action, on February 18, the railroad between Cuajone and Ilo was blocked by a group of protesters.

After 54 days and several attempts by the authorities to regain order through dialog, on April 20, the Peruvian government declared a state of emergency in the Moquegua region. On April 21, the protesters returned control of the Viña Blanca water reservoir and the railroad to the company, making it possible to perform the damage assessment and to resume production on April 22, 2022. On April 30th, the Peruvian government issued a Ministerial Resolution to set up a three-party-round-able for dialogue with members of the community, government, and company officials, to better understand all parties' concerns. The company trusts that, through dialog and the willingness of the parties involved, an agreement that benefits both the community and the workers of Cuajone will be reached. The Cuajone complex is now working at full capacity and will continue contributing much-needed revenues to the Peruvian government and the Moquegua region as it helps drive development in Peru.

Consolidated copper production in 1Q22 was 9.9% lower than in 1Q21 totaling 244,378 tons, mainly due to the externalities mentioned above, which caused a 23% drop in Peru's production, and a temporal lower ore grade in our Peruvian mines.

Despite facing a generalized inflationary environment, the Mining Division achieved a significant 8.6% reduction in net operating cash cost, from US$0.88 in 1Q21 to US$0.81 in 1Q22, due mostly to higher prices of other metals; this partially mitigated the increase in the cost of production and in the cost per unit, resulting from lower production. Thus, we reaffirm our cash cost as the world's best of the copper industry.

Consolidated EBITDA for 1Q22 totaled US$2.20 billion, 3.1% higher than in the same quarter last year, and a 58.6% margin. The Mining Division reached a US$1.85 billion EBITDA, 2.2% higher than in 1Q21. The Transportation

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Division posted EBITDA of US$297 million for the quarter, up 12.7% from the previous year. In the Infrastructure Division, the EBITDA was US$64 million in 1Q22, 6.8% higher than in 1Q21.

Consolidated net profit in 1Q22 was US$920 million.

Capital investments during 1Q22 totaled US$314 million. Our investment program for 2022 is US$2.3 billion, in different projects throughout the Three Divisions that will be sources of economic revival and job creation as the pandemic allows.

Dividend. - On April 29, 2022, the Board of Directors decreed the payment of a cash dividend of $1.50 pesos per share outstanding, slightly more cautious due to the intensive investment program, the possible consequences of the Russia-Ukraine conflict, and the possible economic short-term recession in the US. The payment will be made in a single installment as of June 2nd, 2022. This dividend implies an annualized dividend yield of 6.3%.

First Quarter

Variance

(Thousand US Dollars)	2022	2021	US$000
Sales	3,764,062	3,434,916	329,146	9.6
Cost of Sales	1,475,501	1,322,081	153,419	11.6
Operating Income	1,868,815	1,700,007	168,808	9.9
EBITDA	2,204,828	2,139,387	65,441	3.1
EBITDA Margin (%)	58.6%	62.3%
Net Income (Whitout equity
securities)	1,052,769	1,177,177	(124,408)	(10.6)
Net Income	920,122	1,030,948	(110,826)	(10.7)
Profit Margin (%)	24.4%	30.0%
Investments / Capex	313,890	336,747	(22,857)	(6.8)

%

All figures are stated in dollars ("US$"), currency of the United States of America, under U.S. GAAP, except where otherwise noted.

In order to showcase the performance of our operations, we are including the concept of profit before shareholding. Net profit includes the capital gain/loss of the shares, as well as their effect on deferred taxes.

Relevant Events Grupo México

Grupo México is the third largest company in the country in terms of market capitalization and securitization, as well as the main company in tax payments in Mexico. In addition, it is number one in profit sharing in Mexico and Peru.

To date, Grupo México has 29,900 direct employees and more than 110 thousand highly skilled and well-paid indirect employees. Grupo México is the fifth largest copper producer in the world with the lowest cash cost in the industry worldwide.

ESG. - Sustainability is a key pillar of Grupo México's business model.

In line with our sustainability strategy, we have had a performance that confirms the trend of continuous improvement in our main sustainability indicators over the past three years. In terms of safety, we reduced accident rates by 16%, and regarding the environmental level, we increased water recirculation by almost 5 million m3. In social matters, the population served through our community programs has tripled, while we continue to strengthen the mechanisms for listening and addressing concerns.

Regarding our climate change management, in 2021, Grupo Mexico rose two levels in the Carbon Disclosure Project (CDP) Climate assessment, going from a C-level to a B-level, positioning the company above the average for the sector and the region.

To provide our investors and stakeholders with certainty, we presented our progress in the 1er quarter of 2022 of the third-party validation of our environmental and social practices in the Mining Division. We continue the process of certifying our safety and health management systems under international standard ISO 45001 and our environmental management systems under ISO 14001 in all our mining units. In the first quarter of 2022, the Santa Barbara and San Martin mines obtained their ISO 45001 certification, and La Caridad Mine and Lime Plant in Sonora obtained their ISO 14001 certification.

Dr. Vagon's visit to Ciudad Juarez, Chihuahua. The Grupo Mexico Foundation initiative, which began operations in 2014 with the aim of bringing free medical services to vulnerable and difficult-to-access areas in the country, visited the municipality of Cd. Juarez in the state of Chihuahua for the first time in 8 years. The Health Train has visited 23 states and traveled about 88 thousand kilometers. In that time, its team of 64 health professionals, who work and live in Dr. Vagon, have treated nearly 400 thousand patients, and provided more than one million 500 thousand free medical care services.

Relevant Events Mining Division

Projects

Over the years, Grupo Mexico has proven the ability to have an organic growth portfolio through various stages of the copper price cycle. It continues to focus on being a global industry cost leader and operating with efficiency and financial discipline. Grupo Mexico's projects are a source of employment and wellbeing in the communities and countries where it operates.

Projects in Mexico

The next stage of investment projects, including the large-scale projects of El Arco and Empalme, are part of an investment plan worth over US$7.70 billion over the next 10 years.

Buenavista Zinc, Sonora. - This project is located within the Buenavista deposit in Sonora and consists of the construction of a concentrator with a production capacity of 100,000 tons of zinc and an additional 20,000 tons of copper per year. The engineering study has been completed. To continue with the project, greater preventive measures against COVID-19 have been implemented. The progress of equipment purchases has reached 99%, and the main equipment is already on site. In addition, site construction work is in progress. The project has all the necessary permits, and this investment has a budget of US$413 million. Up to March 31, 2022, we have invested $240.5 million in this project. It is expected to become operational in the second half of 2023. At the completion of this new concentrator, zinc production capacity will be doubled, and it is estimated that it will generate 490 direct and 1,470 indirect jobs.

Pilares, Sonora. - This project is in Sonora, 6 km away from the La Caridad mine, and consists of an open pit mine with an annual production capacity of 35,000 tons of copper in concentrates. A 25-meter-wide road was built for mining trucks that will transport the ore between the Pilares pit and the primary crushing plants of La Caridad. This project will significantly improve the total ore grade (combining the expected 0.78% from Pilares with the 0.34% from La Caridad). The investment budget is US$159 million, of which we have invested US$79 million so far, and the project is expected to become operational in the last quarter of 2022.

El Pilar, Sonora. - This low-capital-intensive copper project is strategically located in Sonora, Mexico, approximately 45 kilometers from our Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tons of ore with an average copper ore grade of 0.249% and 83.4 million tons of measured and estimated mineral resources with an average ore grade of 0.18% and 88.6 million tons of mineral resources inferred with an average ore grade of 0.12%. El Pilar will operate as a conventional open pit mine with an annual production capacity of 36,000 tons of copper cathode using highly cost-efficient and environmentally friendly SX/EW technology. The budget for El Pilar is US$310 million and we expect production to begin during 2024, with a mine life of 13 years. The results on the pads in the leaching process confirm that there are adequate levels of copper recovery. At this time, the Basic Engineering Study has been completed and the company continues to develop the project and environmental activities on site.

El Arco, Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves exceeding 1.20 billion tons with an ore grade of 0.40%; 100 million tons of leaching material with an ore grade of 0.27%. The project also has an estimated 900 million tons of mineral resources with an ore grade of 0.41% and 2.40 billion tons of inferred mineral resources with an average ore grade of 0.37%. This project includes an open pit mine with concentrator operations and a leaching plant. We expect annual production to be close to 190,000 tons of copper and 105,000 ounces of gold with a capital investment of $2.90 billion. The company has completed the base study and is reviewing the basic engineering analysis to request the environmental impact statement. Since years ago, we have had the corresponding mining concessions and, during 2020, we concluded the acquisition of all the necessary land.

Projects in Peru

Grupo Mexico has worked on several projects in Peru with our approved capital investment program of US$2.80 billion, of which we have already invested US$1.60 billion. Considering the new projects of Michiquillay (US$2.50 billion) and Los Chancas (US$2.60 billion), the total investment program in Peru amounts to US$7.90 billion.

Tia Maria - Arequipa - The company has been working constantly to promote the wellbeing of the people of the Islay province. As part of these efforts, we have successfully implemented social programs in education, health, and productive development to improve the quality of life in the region. We have also promoted agricultural and livestock activities in the Tambo Valley and supported manufacturing, fishing, and tourism growth in Islay.

In 2021, we strengthened our relationship with the regional government and overcame their opposition to starting the project. This new consensus was reflected in a "tax works" agreement for projects related to healthcare facilities and roads. Our efforts to ensure the current and future well-being of the population in the area of influence of the Tia Maria project were recognized by several local associations, who sent letters to the National Government requesting the start of the project.

We reiterate our opinion that the start of construction activities in Tia Maria will generate significant economic opportunities for the province of Islay and the Arequipa region. Given the current economic situation in Peru, it is essential to move forward with projects that stimulate a sustainable growth cycle. We will have as a priority the hiring of local labor to cover the 9,000 jobs (3,600 direct and 5,400 indirect) that we hope to generate during the construction of Tia Maria. Once we start up, we expect Tia Maria to directly employ 600 workers and provide 4,200 indirect jobs. In addition, from the beginning of our operations, we will generate significant contributions to the income of the Arequipa region through royalties and taxes.

We hope that the Peruvian government will recognize the important progress that the project has made in the social sphere and the significant contributions that Tia Maria will generate for the economy of Peru and, consequently, take the necessary measures to start construction.

Los Chancas, Apurimac. - This expansion project located in Apurimac, Peru, is a porphyry deposit of copper and molybdenum. Indicated mineral copper resources are currently estimated at 98 million tons of oxides with a copper content of 0.45% and 52 million tons of sulfides with a copper content of 0.59%. Moreover, the project has inferred mineral copper resources of 33 million tons of oxides with a copper content of 0.38% and 1,400 million tons of sulfides with a copper content of 0.45%. The development of an open pit mine with both concentrator and leaching plant operations is proposed to produce 130,000 tons of copper and 7,500 tons of molybdenum per year. The estimated capital investment is US$2.60 billion, and the project is expected to become operational in 2027. In