10 4 2 01 9 S U S T AINABILITY REPOR T B u s i n e s s E t h i cs a n d An t i C orr u p t i on Wh y ar e busine s s ethic s and anti c orruption import ant The mining indus tr y oper at e s in a c omple x and demanding leg al and r egulat or y en vir onment under c y clic al mark et c onditions Mining oper ations c an be loc at ed in politic ally uns t able c ountrie s This ins t abilit y c an cr e at e ec onomic and r egulat or y unc ert aint y which ma y pr o vide opportunitie s f or c orruption Glob ally the indus tr y is e xperiencing incr e as ed public and g o v ernment pr e s sur e t o c omb at briber y and c orruption b y impr o ving g ood g o v ernanc e and tr ansp ar enc y o f p a yment s made t o g o v ernment s A s a Canadian c omp an y lis t ed on the T S X and NA SD A Q s t ock e x chang e s P an Americ an Silv er mus t c omply with s ecuritie s r egulations and e x chang e rule s as w ell as r equir ement s de signed t o pr ot ect in v e s t or s and the int egrit y o f fnancial mark et s W e als o mus t adher e t o applic able legislation in the juris dictions wher e w e oper at e C onducting our activitie s ethic ally and applying indus tr y be s t pr actic e s at home and abr o ad ar e a c or e c omponent f or building and trus t with our c ommunitie s o f int er e s t and maint aining our s ocial lic enc e P O TE NT I A L R I SK S A N D IM P A C TS R E L A TE D SD G S M a t e r ia l T o p ic Busine s s ethic s and antic orruption S u b T o p ic T ax tr ansp ar enc y D e fni t i o n E nsuring g ood c orpor at e g o v ernanc e thr ough ethic al busine s s pr actic e s and antic orruption me asur e s F e e d b ack Fr o m C O I s The public and g o v ernment s w ant incr e as ed tr ansp ar enc y on is sue s r elat ed t o c orpor at e g o v ernanc e Analy s t s and in v e s t or s ar e int er e s t ed in our appr o ach t o supplier s cr eening and s election H o w W e r e R e sp o n d i ng W e ha v e a s et o f policie s and guideline s that c ombined pr o vide the fundament al t enet s o f ethic al busine s s pr actic e s W e appr o v ed a Supplier C ode o f C onduct and ar e enhancing our supplier due dilig enc e pr oc e s s e s Unanticip at ed chang e s t o la w s or r egulations C orruption inside our busine s s or b y thir d p artie s