Wheaton Precious Metals and Vale Base Metals Announce Achievement of First Phase Completion Test at Salobo

22 November 2023

Wheaton Precious Metals™ Corp.Wheaton Precious Metals International Ltd. and Vale Base Metals Limited ("VBM") (NYSE:VALE) are pleased to announce the successful completion of the throughput test for the first phase of the Salobo III expansion project, a significant milestone that demonstrates increased reliability and continued strong performance at VBM's flagship copper project in Brazil. The test required VBM's Salobo complex to run at an average annualized throughput of 32 million tonnes per annum ("Mtpa") for a period of 90 days. VBM confirmed completion of the test on November 17, 2023, with an average throughput of 32.3 Mtpa.

"As a cornerstone asset in Wheaton's portfolio, Salobo is once again proving itself to be a top-tier operation. The ramp-up of the expansion at the Salobo Mine has not only met but surpassed our expectations, and we extend our sincere congratulations to the Vale Base Metals team in achieving this significant milestone," said Randy Smallwood, President and Chief Executive Officer of Wheaton. "An accomplishment of this magnitude is made possible by the dedication of the on-site team and their commitment to operational excellence. These efforts have resulted in significant enhancements to both Salobo's reliability and operational performance, and we continue to forecast meaningful production from Salobo over the next several years. As the expansion project advances, we look forward to our continued partnership with Vale Base Metals as they embark on this exciting next phase of growth."

"This is a great accomplishment for the Salobo teams and our entire organization," said VBM Chief Executive Officer Deshnee Naidoo. "The consistent performance at Salobo shows we are taking the right actions to unlock value across the portfolio with a focus on driving efficiency and operational excellence. Salobo III is a US$1.1 billion investment in our future that leverages our unique exposure to a Tier 1 copper hub in the Carajás region – a distinct competitive advantage and growth engine as we look to accelerate copper production and deliver critical minerals the world needs."

Salobo – Mill Throughput Expansion
The Salobo mine historically had a mill throughput capacity of 24 Mtpa, and having now exceeded throughput capacity of 32 Mtpa, is currently ramping up to full capacity of 36 Mtpa, expected in the fourth quarter of 2024. Under the terms of the Salobo precious metals purchase agreement ("PMPA"), Wheaton International will make a payment to Vale Base Metals totalling $370 million for completion of the first phase of the Salobo III expansion project. The remaining balance of the expansion payment is dependent on the timing of completion and will be triggered once Vale Base Metals expands actual throughput above 35 Mtpa for a period of 90 days. In addition, Wheaton International will be required to make annual payments of between $5.1 million to $8.5 million for a 10-year period following payment of the expansion payments if the Salobo mine implements a high-grade mine plan.

Financing the Expansion Payment
As at 23, the Company had approximately $834 million of cash on hand, which when combined with the September 30, 20liquidity provided by the available credit under the $2 billion revolving term loan and the strength of our ongoing operating cash flows, positions the Company well to fund the Salobo expansion payment in addition to the recently announced acquisition of the Platreef, Kudz Ze Kayah and Curraghinalt streams, as well as all outstanding commitments and known contingencies, and provides flexibility to acquire additional accretive mineral stream interests.