On June 10, 2021, Resolution No. 161/2021 issued by the National Mining Ministry (the "Resolution") was published in the Official Gazette, approving the "Guidelines for the mine closure and the financial guarantees in Argentina” (the “Guidelines”).

The purpose of the Resolution is to establish a uniform criterion for the responsible closure of the mines operating in Argentina, and, consequently, the provinces are summoned to adopt the Guidelines.

The mine closure is defined as a complex process, which should consider the environmental, social, economic, financial, and engineering aspects. The closure plan must pursue the rehabilitation of the site in accordance with levels compatible with a healthy environment, the applicable technical standards and the quality guides for air, water and soil, established in the local laws and regulations. The rehabilitation must also guarantee the physical and geochemical stability of the site, the safety conditions of the people involved and the socio-economic transition of the relevant communities.

The mining projects must consider formal closure plans as from the exploration or exploitation activities as well as the necessary funds to implement them. To that end, the Resolution establishes the Guidelines considering each stage of the project. It also foresees the objectives of the closure plan; its content; progressiveness; approval and updates, as well as the relevant consultation that must be carried out.

To ensure the closing activities before mentioned, the Resolution requires the constitution of a financial guarantee and expressly lists those available in the national market, such as, guarantees on first demand, pledged deposits, surety insurance, guarantee trusts, bonds, among others.

Finally, the Directorate of Federal Mining Affairs dependent on the Undersecretariat of Mining Policy of the Mining Ministry is instructed to assist the provinces with the implementation of the Guidelines.