Hochschild Regulatory News (HOC)

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26 May 2010

AGM Statement

At the Company's Annual General Meeting to be held in London at 10am today, Eduardo Hochschild, Executive Chairman of Hochschild Mining plc ("Hochschild") will update on the following:

"I am delighted with the excellent results that Hochschild delivered in 2009, which were underpinned by record production of 28 million attributable silver equivalent ounces, up 8% year on year, and an 11% reduction in unit cost per tonne, exceeding our target of 5%. Our strong financial performance demonstrates the profitability of the business with full year revenue up 24% to $540 million, EBITDA up 76% to $250 million and attributable profit after tax of $98 million.

The Board remains committed to maximising long term shareholder returns whilst ensuring that the business is adequately funded to further its growth strategy. We are therefore recommending a final dividend of two cents per share making a full year dividend of four cents.

Our strategy to deliver growth remains unchanged. We are committed tomaximising life of mine and profitability at existing operations, delivering growth through our extensive exploration programme and adding to production through selective investments and acquisitions. 2010 is progressing well and we remain on track to achieve our full year production target of 26.3 million attributable silver equivalent ounces from current operations with an additional 1.5 - 2.5 million silver equivalent ounces from our stakes in Lake Shore Gold and Gold Resource Corporation ("GRC").

Exploration is an explicit priority for Hochschild and, to support this year's programme, we have increased spending by 75% to $50 million. Our aims are to maximise resource life of mine for our three main operations and to find and develop new profitable projects in the Americas.

In 2009 we made solid progress in this area, extending our resource life of mine by 20% year on year to 7.1 years. Total resource tonnage for all our operations, projects and investments more than doubled from 20.7 to 43.6 million. We have always taken a conservative approach to resource delineation, using the same cut off prices as we apply to reserves. As a result, we have an extremely high rate of conversion from resources to reserves.

We have an extensive pipeline of projects throughout Argentina, Canada, Chile, Mexico and Peru, at all stages of development. We are excited about our advanced 'company maintainer' projects, Azuca and Crespo, which we are targeting as our next potential operating mines. We have reported resources of 44.1 million and 44.7 million silver equivalent ounces at Azuca and Crespo respectively and will fast track both projects to scoping study stage once we have achieved resources of 60 million silver equivalent ounces at each, which we expect to achieve this year. 'Company maintainer' projects have the potential to deliver 6 - 10 million silver equivalent ounces production per year.

Other interesting projects include 'company makers' which have the potential to deliver 20 - 30 million silver equivalent ounces annually, such as Victoria, Josnitoro and Mercurio. At Victoria, a joint venture with Iron Creek Capital located along the highly prospective Domekyo fault zone in northern Chile, drilling has revealed gold-silver mineralisation with significant intercepts of higher grade material. At Josnitoro, a 100% owned project with visible gold mineralisation starting at surface, the 2010 programme is focused on understanding the geology and preparation of drill targets. Mercurio is a 100% owned, 36,388 hectare prospect located between two high grade mines in Mexico, Sombrerete and Fresnillo. We are currently drilling and awaiting assay results. The table below provides a brief summary of our key projects.

We remain positive about the outlook for our strategic investments, Lake Shore Gold and GRC which provide Hochschild with exposure to impressive production potential and long term growth.

Lake Shore Gold expects to commence commercial production in Q4 2010 with a target of 65,000 ounces of gold (3.9 million silver equivalent ounces) and will continue to build production over the following three years with the potential to produce 300,000 ounces (18 million silver equivalent ounces) by 2013. GRC announced the first shipment of concentrate for sale in April 2010 and expects commercial production to commence in the first half of 2010. The company has a production target of 70,000 ounces of gold (4.2 million silver equivalent ounces) in the first 12 months of commercial production.

We are in sound financial health, with $79 million of cash on the balance sheet as at 31 March 2010. This, in conjunction with cash generated from operations, enables us to continue delivering our growth strategy. With our solid asset base, strong project pipeline and experienced management team, we are extremely confident about Hochschild's long term growth prospects."

Summary of project pipeline:

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Enquiries:

Hochschild Mining plc

Isabel Lütgendorf +44 (0)20 7907 2934

Head of Investor Relations

Finsbury

Faeth Birch +44 (0)20 7251 3801

Public Relations

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About Hochschild Mining plc:

Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.