P AN AMERIC AN SIL VER 41 I n f ra s t r uc t u r e an d Se r vi c e s I n v e s t m e n t s S ome o f our oper ations ar e ne ar c ommunitie s that ha v e b asic s er vic e s and amenitie s wher e as other s ar e in r emot e sp ar s ely populat ed r egions with little or no infr as tructur e W e r egularly mak e in v e s tment s in and upgr ade s t o loc al infr as tructur e and s ocial s er vic e s in the c ommunitie s ne ar our oper ations In 2 01 9 our infr as tructur e initiativ e s included C ons truction o f a bridg e in Chuquib amb a in Shahuindo C ons truction o f one He alth Unit in L a Ar ena c ommunit y R ehabilit ation o f s chool f acilitie s in O rion L as T apia and L a C olor ada R ehabilit ation o f s chool f acilitie s in Mo y an Alt o Mo y an B ajo L a Fila Huajo Chor ob amb a and Malc as ne ar our Shahuindo mine C ons truction o f riv er food de f enc e w ork s f or six c ommunitie s ne ar our Shahuindo mine L o c al Hi r i n g a n d P ro c u r e m e nt Giv en the r emot e loc ation o f s ome o f our sit e s our oper ations ma y pr o vide one o f the f e w opportunitie s f or long t erm s t able emplo yment in the ar e a C ons equently c ommunit y member s look t o us t o pr o vide job s thr ough dir ect emplo yment or as s er vic e pr o vider s f or our mine sit e s In 2 01 9 99 o f our emplo y ee s w er e nationals o f the c ountr y wher e the mine is loc at ed O ur pr ocur ement pr actic e s als o cr e at e opportunitie s f or loc al busine s s e s W e pur chas e a sub s t antial amount o f nec e s s ar y g oods and s er vic e s fr om within national ec onomie s W e als o help c ommunit y member s launch and or sus t ain small busine s s e s b y mat ching a sit e s busine s s needs t o the int er e s t s o f c ommunit y member s This appr o ach support s our abilit y t o oper at e pr o ft ably o v er the long t erm b y deepening our sit e s r elationship s with loc al supplier s pr o viding a higher le v el o f s er vic e and helping us build a mor e r e silient supply chain In 2 01 9 4 8 o f g oods and s er vic e s w er e pr o vided b y loc al or r egional supplier s O ur mine s curr ently pr o vide support f or 558 small busine s s e s K e y g oods and s er vic e s s our c ed loc ally include Mat erials f or r o ad c ons truction Machiner y and small p art s F ood and c at ering s er vic e s Maint enanc e s er vic e s E arthmo ving equipment f or r o ad maint enanc e and smaller c ons truction pr oject s Wher e loc al supplier s c annot meet our needs or busine s s s t andar ds w e in v e s t in their c ap acit y b y of ering pr ogr ams and support f ocus ed on Busine s s skills such as ac c ounting and bookk eeping Bidding pr oc e s s e s P an Americ an Silv er s busine s s s t andar ds and e xpect ations He alth and s af et y tr aining f or c ontr act or s He alth and addiction w ork shop s G R I 2 0 1 1 2 0 3 2 2 0 4 1 Ne xt St ep s C ontinue t o impr o v e e xis ting pr oc e s s e s such as our C OI mapping s y s t ems and r e spons e mechanisms at all our oper ations and align with the T o w ar ds Sus t ainable Mining T SM guiding principle s Updat e indic at or s t o me asur e the s ocial imp act o f our pr ogr ams b as ed on p articip at or y b as eline as s e s sment s C ontinue t o c onduct s ocial audit s t o e v aluat e the ef ectiv ene s s o f our s ocial manag ement s y s t ems and the implement ation o f our C SR and Glob al Human Right s policie s