About Ecuador

Ecuador is situated along the northwest coast of South America. It straddles part of the Andes mountains and occupies part of the Amazon basin. Situated on the equator, from which its name derives, it borders Colombia to the north, Peru to the east and the south, and the Pacific Ocean to the west.

Ecuador covers an area of 283,561 km². It is somewhat larger than the state of Victoria (227,444km2) in Australia, somewhat smaller than Italy, or slightly smaller than the U.S. state of Nevada.

Ecuador has a population of 17.6 million people (2020). The capital city is Quito and the largest city by population is Guayaquil (2.7 million).

Approximately 63% of the population is urban. The median age is 28. Spoken languages are Spanish and Quechua (both official). The main religion is Roman Catholic (80%).

Ecuador is divided into 24 provinces. Its three largest cities are Guayaquil, Quito, and Cuenca. The national currency is the US dollar.

Ecuador is a republic and maintains a presidential, unicameral representative democracy with the usual three branches of power: executive (government), legislative (national assembly), and judicial (judiciary). The President is both head of state and head of government. The national assembly has the power to pass laws. The supreme court is independent of the executive and legislative branches.

RAPIDLY EMERGING MINING JURISDICTION

Pro-responsible mining government

• President actively encouraging responsible mining
• Single national mining department
• Forms part of the worlds most endowed copper gold belt

Two world class operating mines – Fruta Del Norte, Mirador

All majors are present (BHP, Anglo, Barrick, Codelco)

Significant corporate activity

Investment agreements signed for the most advanced projects including

• Solgold – Cascabel Copper/Gold Project
• Adventus – El Domo Curipamba Copper/Gold Project
• Dundee – Loma Larga Gold Project
• Lumina Gold – Cangrejos Project

FY24 transaction highlights include:

• Solgold US$750m financing for Cascabel Project
• Hancock US$120m 49% JV earn-in with ENAMI
• Silvercorp US$200m merger with Adventus

LOW-COST STRATEGIC ADVANTAGE

Ecuador has two world-class, lowest cost-quartile operating mines

• Fruta Del Norte Gold Mine (Lundin Gold)
• Mirador Copper Mine (Chinese-owned)

Low mining input costs are a competitive advantage

• Energy and Labour both significantly lower than Australia and Canada
• Potential for Sunstones projects to be in the lowest cost quartile
• Complemented by very low stripping ratios

Ecuador’s currency is USD

• Provides protection against inflation