P AN AMERIC AN SIL VER 1 07 C omplying with applic able la w s C onducting busine s s in an ethic al and en vir onment ally r e sponsible manner R e specting the right s cultur al div er sit y and cus t oms o f loc al c ommunitie s and indig enous people s C omplying with P an Americ an Silv er s Glob al AntiC orruption P olic y and Gift s and Ho spit alit y Guideline s and Glob al Human Right s P olic y Supplier s ar e r e sponsible f or ensuring that their emplo y ee s c ontr act or s subc ontr act or s and an y ag ent s act in a manner c onsis t ent with the Supplier C ode F or c ert ain highrisk c ontr act s w e inc orpor at e specifc anti c orruptions pr o visions int o the c ontr act t erms W e maint ain the right t o t erminat e c ontr act s with supplier s that f ail t o abide b y the Supplier C ode W e ar e in the pr oc e s s o f implementing a due dilig enc e s o ft w ar e pr ogr am t o r e vie w and monit or supplier r elationship s T a x T ran s par e n c y P an Americ an Silv er p a y s t ax e s on t ax able inc ome g ener at ed thr ough oper ations O ur appr o ach t o t ax matt er s is aligned with the principle s s et out in our C ode In all juris dictions in which P an Americ an Silv er oper at e s we C omply with loc al t ax la w s and r egulations including fling appr opriat e t ax r eturns and r elat ed r eport s on a timely b asis W e ensur e that t ax r eturns and other r eport s fled ar e ac cur at e and c omplet e S eek t o maint ain a g ood w orking r elationship with loc al t ax authoritie s W e r e spond t o all r eque s t s f or additional inf ormation in a timely tr ansp ar ent and ac cur at e manner If disput e s aris e w e w ork with the t ax authoritie s t o r e s olv e them in an efcient and f air manner Undert ak e t ax planning t o support the gr o w th and de v elopment o f the busine s s in ac c or danc e with all applic able la w s and r egulations W e ha v e an of shor e fnancial entit y that pr o vide s insur anc e ag ains t c ert ain risk s at our w orldwide mining oper ations The activitie s o f this entit y ar e fully dis clo s ed as r equir ed under the t ax la w s and r egulations o f the juris dictions in which w e oper at e W e eng ag e in numer ous int er c omp an y tr ans actions e x ecuting all such tr ans actions using arm s length tr ans f er pric e s In ac c or danc e with the O r g aniz ation o f E c onomic C ooper ation and D e v elopment OE CD w e mak e e v er y ef ort t o ensur e that the s e arm s length tr ans f er pric e s ar e support ed b y the nec e s s ar y c ont empor aneous document ation P an Americ an Silv er c omplie s with the Canadian E xtr activ e S ect or T r ansp ar enc y Me asur e s A ct E S TMA r equiring public r eporting o f p a yment s made t o g o v ernment s O ur E S TMA r eport s c an be ac c e s s ed fr om our w eb sit e Ne xt St ep s R oll out o f our supplier due dilig enc e pr oc e s s t o ensur e c omplianc e with our Supplier C ode and r elat ed policie s D e v elop an online tr aining platf orm t o inc entiviz e ethic al beha vior and impr o v e emplo y ee under s t anding o f the antic orruption pr ogr am Implement int ernal c ontr ols and que s tionnair e s f or emplo y ee s supplier s and busine s s p artner s in or der t o identif y ethic s risk s or c onfict o f int er e s t s