Tahoe Resources 6-K Condensed Interim Consolidated Financial Statements

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

For the three months ended March 31, 2018 and 2017

CONDENSED INTERIM CONSOLIDATED STATEMENTS

OF FINANCIAL POSITION

(Expressed in thousands of United States dollars) - Unaudited

	Notes	March 31 2018			December 31, 2017
ASSETS
Current
Cash and cash equivalents	6	$	53,632		$	125,665
Trade and other receivables	7	49,176			39,617
Inventories	8	122,593			128,381
Other		3,319			5,412
		228,720			299,075
Non-current
Mineral interests, plant and equipment, net	9	2,641,789			2,616,789
Sales tax and other receivables		48,293			47,196
Restricted cash		5,062			5,124
Deferred tax asset		369			369
Goodwill	9a	112,085			112,085
		2,807,598			2,781,563
Total Assets		$	3,036,318		$	3,080,638
LIABILITIES
Current
Accounts payable and accrued liabilities	10	$	114,331		$	110,084
Lease obligations	12	5,228			6,146
Debt	11a	—			35,000
Income tax payable		2,423			2,277
Reclamation provision	13	106			487
Other		1,836			1,836
		123,924			155,830
Non-current
Lease obligations	12	386			1,608
Reclamation provision	13	63,469			62,569
Deferred tax liability		224,832			230,184
Other		4,554			5,559
Total Liabilities		417,165			455,750
SHAREHOLDERS' EQUITY
Share capital	18e	2,788,234			2,788,234
Share-based payment reserve	18	21,216			20,090
Deficit		(190,297		)	(183,436		)
Total Shareholders' Equity		2,619,153			2,624,888
Total Liabilities and Shareholders' Equity		$	3,036,318		$	3,080,638

Contingencies (note 26)

APPROVED BY THE DIRECTORS
"Ron Clayton"	"Dan Rovig"
Ron Clayton	Dan Rovig
PRESIDENT AND CEO	LEAD INDEPENDENT DIRECTOR

See accompanying notes to the condensed interim consolidated financial statements	1
Tahoe Resources Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS

OF OPERATIONS AND TOTAL COMPREHENSIVE (LOSS) INCOME

(Expressed in thousands of United States dollars, except per share and share information) - Unaudited

		Three Months Ended March 31,
	Notes	2018			2017
Revenues	14, 22	$	139,942		$	251,046
Operating costs
Production costs	15, 22	77,680			97,390
Royalties	22	895			7,647
Care and maintenance	16, 22	10,351			—
Depreciation and depletion	22	37,020			41,841
Total operating costs		125,946			146,878
Mine operating earnings		13,996			104,168
Other operating expenses
Exploration		2,705			4,194
General and administrative	17	11,841			11,691
Total other operating expenses		14,546			15,885
(Loss) earnings from operations		(550		)	88,283
Other (income) expense
Interest income		(139		)	(114		)
Interest expense		1,428			1,066
Foreign exchange (gain) loss		(351		)	550
Other expense		546			882
Total other expense		1,484			2,384
Earnings before income taxes		(2,034		)	85,899
Tax expense
Current income tax expense	19	10,181			15,472
Deferred income tax recovery	19	(5,353		)	(4,270		)
(Loss) Earnings and total comprehensiveincome		$	(6,862	)	$	74,697
(Loss) Earnings per share
Basic	20	$	(0.02	)	$	0.24
Diluted	20	$	(0.02	)	$	0.24
Weighted average sharesoutstanding
Basic	20	313,192,761			311,948,022
Diluted	20	313,192,761			312,025,097

See accompanying notes to the condensed interim consolidated financial statements	2
Tahoe Resources Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of United States dollars) - Unaudited

		Three Months Ended March 31,
	Notes	2018			2017
OPERATING ACTIVITIES
(Loss) earnings for the period		$	(6,862	)	$	74,697
Adjustments for:
Interest expense		1,428			1,066
Income tax expense	19	4,828			11,202
Items not involving cash:
Depreciation and depletion		37,658			42,980
Loss on disposition of plant and equipment		105			332
Share-based payments	18	1,135			1,533
Unrealized foreign exchange (gain) loss		(346		)	372
Accretion	13	563			669
Cash provided by operating activities before changes in working capital		38,509			132,851
Changes in working capital	21	(7,983		)	(35,676		)
Cash provided by operating activities		30,526			97,175
Income taxes paid		(8,379		)	(18,600		)
Net cash provided by operating activities		22,147			78,575
INVESTING ACTIVITIES
Mineral interests, plant and equipment additions		(56,165		)	(48,128		)
Net cash used in investing activities		(56,165		)	(48,128		)
FINANCING ACTIVITIES
Proceeds from issuance of common shares on exercise of share options		—			747
Dividends paid to shareholders		—			(14,773		)
Loan origination fees and other		(235		)	(115		)
Interest paid		(1,193		)	(952		)
Payments on finance leases	12	(2,034		)	(2,660		)
Repayments of loan	11a	(35,000		)	—
Net cash used in financing activities		(38,462		)	(17,753		)
Effect of exchange rates on cash and cash equivalents		447			(665		)
(Decrease) Increase in cash and cash equivalents		(72,033		)	12,029
Cash and cash equivalents,beginning of period		125,665			163,368
Cash and cash equivalents,end of period	6	$	53,632		$	175,397

Supplemental cash flow information (note 21)

See accompanying notes to the condensed interim consolidated financial statements	3
Tahoe Resources Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS

OF CHANGES IN EQUITY

(Expressed in thousands of United States dollars, except share information) - Unaudited

	Notes	Number of Shares	Share Capital		Share-Based Payment Reserves			Deficit			Total
At January 1, 2018		312,775,761	$	2,788,234	$	20,090		$	(183,436	)	$	2,624,888
(Loss) and total comprehensiveloss		—	—		—			$	(6,862	)	(6,862		)
Share-based payments	18	—	—		1,126			1			1,127
At March 31, 2018		312,775,761	$	2,788,234	$	21,216		$	(190,297	)	$	2,619,153
	Notes	Number of Shares	Share Capital		Share-Based Payment Reserves			Deficit			Total
At January 1, 2017		311,362,031	$	2,775,068	$	18,629		$	(221,543	)	$	2,572,154
Earnings and total comprehensive income		—	—		—			74,697			74,697
Shares issued under the Share Plan	18	3,750	35		—			—			35
Shares issued on exercise of stock options	18	79,669	996		(249		)	—			747
Share-based payments	18	—	—		1,544			—			1,544
Dividends paid to shareholders		474,377	3,922		—			(18,695		)	(14,773		)
At March 31, 2017		311,919,827	2,780,021		19,924			(165,541		)	2,634,404

See accompanying notes to the condensed interim consolidated financial statements	4
Tahoe Resources Inc.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

(Expressed in thousands of United States dollars, except as otherwise stated) - Unaudited

Three months ended March 31, 2018 and 2017

1. OPERATIONS

Tahoe Resources Inc. ("Tahoe") was incorporated under the Business Corporations Act (British Columbia) on November 10, 2009. These condensed interim consolidated financial statements ("interim financial statements") include the accounts of Tahoe and its subsidiaries (together referred to as the "Company"). The Company's principal business activities are the operation of mineral properties for the mining of precious metals and the exploration, development and acquisition of mineral interests in the Americas. As at March 31, 2018 the Company's Escobal mine has been placed on care and maintenance pending resolution to legal proceedings in Guatemala.

The Company's registered office is located at 1500 Royal Centre, 1055 West Georgia Street, P.O. Box 11117, Vancouver, BC V6E 4N7, Canada.

The Audit Committee of the Company's Board of Directors authorized issuance of these interim financial statements on May 2, 2018.

2. BASIS OF PREPARATION

These interim financial statements have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). As such, certain disclosures required by IFRS have been condensed or omitted. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto as at and for the years ended December 31, 2017 and 2016 ("consolidated financial statements"). The Company's interim results are not necessarily indicative of its results for a full year.

3. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of measurement

These interim financial statements have been prepared using the same accounting policies and methods of application as those disclosed in note 3 to the Company's consolidated financial statements, except as described in note 4.

b) Currency of presentation

These interim financial statements are presented in United States dollars ("USD"), which is the functional and presentation currency of the Company and all of its subsidiaries. Certain values are presented in Canadian dollars and described as CAD.

c) Basis of consolidation

The accounts of the subsidiaries controlled by the Company are included in the interim financial statements from the date that control commenced until the date that control ceases. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Tahoe Resources Inc.	5
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

The principal subsidiaries (operating mine sites and projects) of the Company and their geographic locations at March 31, 2018 are as follows:

Direct Parent Company	Location	Ownership Percentage	Mining Properties and Development Projects Owned
Minera San Rafael, S.A.	Guatemala	100%	Escobal mine
La Arena S.A.	Peru	100%	La Arena mine,
			La Arena Phase II Project
Shahuindo S.A.C.	Peru	100%	Shahuindo mine
Lake Shore Gold Corp.	Canada	100%	Bell Creek mine,
		100%	Timmins West,
		100%	Thunder Creek,
		100%	144 Gap,
		100%	Fenn-Gib Project
		100%	Juby Project,
		79%	Whitney Project

Intercompany assets, liabilities, equity, income, expenses and cash flows arising from intercompany transactions are eliminated in full on consolidation.

4. CHANGES IN ACCOUNTING POLICIES AND STANDARDS

a) Application of new or amended accounting standards effective January 1, 2018

i. New or amended standards adopted in the Company's consolidated financial statements.

The Company has adopted the following new or amended IFRS standards for the annual period beginning on January 1, 2018. The Company has determined there to be no material impact on its interim financial statements:

•IFRS 9 - Financial Instruments; and

•IFRS 15 - Revenue from Contracts with Customers

In July 2014, the IASB issued the final version of IFRS 9 “Financial Instruments” (“IFRS 9”), which replaces IAS 39 “Financial Instruments: Recognition and Measurement” (“IAS 39”). IFRS 9 is effective for annual periods beginning on or after January 1, 2018.

IFRS 9 provides a revised model for classification and measurement of financial assets, including a new “expected credit loss” impairment model. The revised model for classifying financial assets results in classification according to their contractual cash flow characteristics and the business models under which they are held. IFRS 9 introduces a reformed approach to hedge accounting. IFRS 9 also largely retains the existing requirements in IAS 39 for the classification of financial liabilities.

The key requirements of IFRS 9 as they relate to the Company include the following:

•Subsequent to initial measurement at fair value, all recognized financial assets that are within the scope of IFRS 9 are required to be subsequently measured at amortized cost or fair value. Financial assets that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost in subsequent periods. Financial assets that have a business model whose objective is achieved by both collecting the contractual cash flows and selling financial assets are generally measured at fair value through other comprehensive income (“FVTOCI”). All other financial assets are measured at fair value through profit and loss (“FVTPL”) in subsequent accounting periods. In addition, on initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s FVTOCI, with only dividend income generally recognized in profit or loss. Transaction costs for financial assets held at FVTPL are expensed, for all other financial assets, they are recognized at fair value at initial measurement less any directly attributable transaction costs.

•Financial liabilities are designated as either: (i) fair value through profit or loss; or (ii) other financial liabilities. All financial liabilities are classified and subsequently measured at amortized cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the balance

Tahoe Resources Inc.	6
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

sheet subsequent to inception and how changes in value are recorded. Accounts payable and accrued liabilities and long-term debt are classified as other financial liabilities and carried on the balance sheet at amortized cost.

•For the impairment of financial assets, IFRS 9 requires an ‘expected credit loss’ model applies which requires a loss allowance to be recognized based on expected credit losses. This applies to financial assets measured at amortized cost. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in initial recognition. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognized.

Impacts of change in accounting policy

•None of the Company's classification of its financial instruments have changed significantly as a result of the adoption of the new standard under a restrospective basis without the restatement of the comparative period.

•The Company has assessed the impairment of its receivables using the expected credit loss model, and no material difference was noted, and no impairment has been recognized upon transition and at March 31, 2018.

•There are no transitional impacts regarding financial liabilities in regards to classification and measurement.

In May 2014, the IASB issued IFRS 15 “Revenue from Contracts with Customers” (“IFRS 15”). IFRS 15 replaces IAS 11 “Construction Contracts”, IAS 18 “Revenue”, IFRIC 13 “Customer Loyalty Programmes”, IFRIC 15 “Agreements for the Construction of Real Estate”, IFRIC 18 “Transfer of Assets from Customers” and SIC 31 “Revenue - Barter Transactions Involving Advertising Services”, and is effective for annual periods beginning on or after January 1, 2018.

The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract‐based five‐step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized.

Sales of concentrates are recognized and revenue is recorded at market prices following the transfer of control to the customer, provided that the Company has a present right to payment, has transferred physical possession of the asset to the customer, and the customer has the significant risks and rewards of ownership. The Company satisfies its performance obligations upon delivery of the concentrates. The Company’s concentrates are sold under a pricing arrangement where final prices are determined by quoted market prices in a period subsequent to the date of sale. Until prices are final, revenues are recorded based on forward commodity prices of metals for the expected period of final settlement. Also, subsequent variations in the final determination of the metal concentrate weight, assay and price are recognized as revenue adjustments as they occur until finalized.

Impact of change in accounting policy

The Company adopted IFRS 15 on a modified retrospective basis and has determined that there is no impact of the change in the accounting for revenue at the transition date or the three months ended March 31, 2018, specifically as the Company did not have any concentrate revenues receivable as the Escobal mine is on care and maintenance.

Significant judgements in applying accounting policies related to revenue recognition

Each contract with the customer outlines the terms of the sales of concentrates, including the delivery terms, customer acceptance, the timing of the transfer of the substantive risks and rewards of ownership to the customer, transfer of title, which are evaluated to determine when the customer obtains control of the concentrate. Significant judgements also include the determination of transaction price of each contract, which include the forward commodity price, concentrate weight, quantity, and assay.

b) Future accounting standards and interpretations

The following IFRS standards, and amendments to standards and interpretations, are not yet effective for the three months ended March 31, 2018, and have not been applied in preparing these interim financial statements.

The Company is currently evaluating the impact the following standards are expected to have on its consolidated financial statements:

i. New or amended standards effective January 1, 2019 and thereafter.

IFRS 16 - Leases

Tahoe Resources Inc.	7
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

IFRS 16 was issued by the IASB on January 13, 2016, and will replace IAS 17, Leases. The new Standard will bring most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Lessor accounting however, remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019. Earlier application is permitted if IFRS 15, Revenue from Contracts with Customers, has been applied. The Company is currently in process of evaluating the impact of IFRS 16 on its consolidated financial statements.

5. CRITICAL JUDGEMENTS AND ESTIMATES IN APPLYING ACCOUNTING POLICIES

The preparation of interim financial statements in conformity with IFRS requires management to make judgments and estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, contingent liabilities, income and expenses. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and applied prospectively.

Information about critical judgments and estimates in applying accounting policies that have the most significant effect on the amounts recognized in the interim financial statements for the three months ended March 31, 2018 are consistent with those applied and disclosed in note 5 of the consolidated financial statements, except as described in note 4. The Company's interim results are not necessarily indicative of its results for a full year.

6. CASH AND CASH EQUIVALENTS

	March 31, 2018		December 31, 2017
Cash	$	53,632	$	125,134
Cash equivalents	—		531
	$	53,632	$	125,665

7. TRADE AND OTHER RECEIVABLES

	March 31, 2018		December 31, 2017
Trade receivables	$	10,748	$	—
Sales tax receivable	29,549		28,138
Income tax receivable	8,248		10,005
Other	631		1,474
	49,176		39,617

8. INVENTORIES

	March 31, 2018		December 31, 2017
Supplies	$	61,599	$	57,195
Stockpile	21,948		23,029
Work in process	22,960		21,129
Finished goods	16,086		27,028
	$	122,593	$	128,381

The cost of inventories recognized as an expense for the three months ended March 31, 2018 was $114,700 (three months ended March 31, 2017: $139,231) and is included in total operating costs.

Tahoe Resources Inc.	8
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

9. MINERAL INTERESTS

	Mineral Interests
	Depletable			Non- Depletable			Plant & Equipment			Total
Cost
Balance at January 1, 2018	$	1,581,941		$	668,863		$	1,032,709		$	3,283,513
Additions	11,431			10,826			38,237			60,494
Disposals	—			—			(2,176		)	(2,176		)
Transfers(1)	8,172			(8,172		)	—			—
Change in reclamation provision	333			—			—			333
Balance at March 31, 2018	$	1,601,877		$	671,517		$	1,068,770		$	3,342,164
Accumulated depreciation anddepletion
Balance at January 1, 2018	$	(482,044	)	$	(2,049	)	$	(182,631	)	$	(666,724	)
Depletion and depreciation	(26,661		)	—			(9,061		)	(35,722		)
Disposals	—			—			2,071			2,071
Balance at March 31, 2018	$	(508,705	)	$	(2,049	)	$	(189,621	)	$	(700,375	)
Carrying amount at
March 31, 2018	$	1,093,172		$	669,468		$	879,149		$	2,641,789

	Mineral Interests
	Depletable			Non- Depletable			Plant & Equipment			Total
Cost
Balance at January 1, 2017	$	1,524,323		$	637,644		$	899,513		$	3,061,480
Additions	47,952			43,184			141,011			232,147
Disposals	—			—			(8,204		)	(8,204		)
Transfers(2)	13,013			(13,402		)	389			—
Change in reclamation provision	(3,347		)	1,437			—			(1,910		)
Balance at December 31, 2017	$	1,581,941		$	668,863		$	1,032,709		$	3,283,513
Accumulated depreciation and depletion
Balance at January 1, 2017	$	(365,248	)	$	—		$	(139,279	)	$	(504,527	)
Depletion and depreciation	(116,796		)	(2,049		)	(50,491		)	(169,336		)
Disposals	—			—			7,139			7,139
Transfers	—			—			—			—
Balance at December 31, 2017	$	(482,044	)	$	(2,049	)	$	(182,631	)	$	(666,724	)
Carrying amount at
December 31, 2017	$	1,099,897		$	666,814		$	850,078		$	2,616,789

(1) The updated resource statements published in January 2018 reflect an increase to the depletable base at the Shahuindo mine of 152,923 ounces. These ounces were transferred from non-depletable to depletable mineral interests.

(2) The updated resource statements published in January 2017 reflect an increase to the depletable base at the Timmins West mine of 72,904 ounces. These ounces were transferred from non-depletable to depletable mineral interests.

Tahoe Resources Inc.	9
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

A summary by segment of the net carrying amount of mineral interests is as follows:

	Mineral Interests
	Depletable		Non-Depletable(1)		Plant & Equipment		March 31, 2018		December 31, 2017
Escobal	$	487,607	$	27,266	$	261,310	$	776,183	$	776,365
La Arena	4,779		217,519		201,961		424,259		433,177
Shahuindo	292,952		50,416		204,727		548,095		527,825
Timmins mines	307,834		374,267		211,151		893,252		879,422
	$	1,093,172	$	669,468	$	879,149	$	2,641,789	$	2,616,789

(1)      Non-depletable mineral interests include exploration and evaluation projects and land.

On July 5, 2017 the Company received notice of a temporary suspension of the Escobal mining license, in response to which the Company immediately commenced legal actions to restore its license. Given the current temporary nature of the suspension, the restoration of the license and the ongoing legal appeals, the Company determined that the Escobal assets are not impaired. During Q1 2018 there were no other events or changes in circumstances that would indicate either an impairment or the reversal of impairments previously taken of the Company's assets. The Company will continue to evaluate whether there has been any impairment to Escobal assets as developments relating to the suspension of the Escobal mining license and mining operations occur.

a) Goodwill

Goodwill typically arises on the Company's business combinations due to: i) the ability of the Company to capture certain synergies through management of the acquired operation within the Company; and ii) the requirement to record a deferred tax liability for the difference between the assigned fair values and the tax bases of assets acquired and liabilities assumed.

The carrying amount of goodwill has been allocated to the following cash generating units ("CGUs") and is included in the respective operating segment assets:

	La Arena Phase II(1)		Timmins Exploration Potential(2)		Total
January 1, 2017	$	57,468	$	54,617	$	112,085
Additions	—		—		—
December 31, 2017	$	57,468	$	54,617	$	112,085
Additions	—		—		—
March 31, 2018	$	57,468	$	54,617	$	112,085

(1) The La Arena Phase II CGU is included in the La Arena operating segment in non-depletable mineral interests.

(2) The allocation of goodwill associated with the acquisition of Lake Shore Gold was finalized during 2016 and was allocated 100% to the Timmins Exploration Potential CGU which is included in the Timmins mines operating segment in non-depletable mineral interests.

10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	March 31, 2018		December 31, 2017
Trade payables	$	58,078	$	49,487
Accrued trade and other payables	26,432		25,685
Royalties	14,257		16,000
Accrued payroll and related benefits	15,564		18,912
	$	114,331	$	110,084

Tahoe Resources Inc.	10
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

11. DEBT

	Note	2018			2017
Balance at January 1,		$	35,000		$	35,000
Borrowings/additions		—			—
Repayments		(35,000		)	—
Ending balance at March 31, 2018 and December 31, 2017		$	—		$	35,000

The Company's debt facilities contain covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional debt, merge, consolidate, transfer, lease or otherwise dispose of all or substantially all of its assets to any other entity.

In Q1 2018 there was a $35 million cash repayment of debt.

a) Revolving credit facility

On February 20, 2018 the Company announced the closing of its Second Amended and Restated Revolving Facility with its bank syndicate. The Company now has access to a $175 million revolving credit facility which includes a $25 million accordion feature, for total access of $200 million in capital. The revised facility matures on July 19, 2021. The Second Amended and Restated Revolving Facility is structured on the strength of Tahoe’s gold business alone, and access to the facility does not rely on the operation of the Escobal mine.

The Bank of Nova Scotia and HSBC Securities (USA) Inc. are the co-leads for the Second Amended and Restated Revolving Facility, with The Bank of Nova Scotia acting as the administrative agent. The facility bears interest on a sliding scale of LIBOR plus between 2.25% to 3.25% or a base rate plus 1.25% to 2.25%, which is determined based upon the Company's consolidated net leverage ratio. Standby fees for the undrawn portion of the facility are also on a similar sliding scale basis of between 0.5063% and 0.7313%.

As at March 31, 2018, the Company had not drawn on the Second Amended and Restated Revolving Facility. The Company was in compliance with all covenants at March 31, 2018.

12. LEASE OBLIGATIONS

	2018			2017
Balance at January 1, 2018 and 2017	$	7,754		$	15,946
Additions	—			—
Payments	(2,034		)	(9,456		)
Accrued interest	65			451
Foreign exchange (gain) loss	(171		)	813
Ending balance at March 31, 2018 and December 31, 2017	$	5,614		$	7,754

	March 31, 2018		December 31, 2017
Current portion	$	5,228	$	6,146
Non-current portion	386		1,608
	$	5,614	$	7,754

Tahoe Resources Inc.	11
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

13. RECLAMATION PROVISION

	2018			2017
Balance at January 1, 2018 and 2017	$	63,056		$	64,219
Accretion expense	563			2,640
Revisions in estimates and obligations	(44		)	(3,803		)
Ending balance at March 31, 2018 and December 31, 2017	$	63,575		$	63,056

	March 31, 2018		December 31, 2017
Current portion(1)	$	106	$	487
Non-current portion	63,469		62,569
	$	63,575	$	63,056

(1) As at the period ended March 31, 2018, the Company estimates that it will incur reclamation costs on the Whitney Project in the following twelve months. As a result, a portion of the reclamation provision has been reclassified to current liabilities.

The Company's environmental permits require that it reclaim any land it disturbs during mine development, construction and operations. Although the timing and the amount of the actual expenditures are uncertain, the Company has estimated the undiscounted cash flows related to the future reclamation obligations arising from its activities to March 31, 2018 to be $93,338 which is unchanged from December 31, 2017.

In determining the discount rate to be used in the calculations of the present value of the future reclamation obligations, the Company combines risk and inflation rates specific to the country in which the reclamation will take place. The discount rates used in the calculations were between 4.00% and 6.00%.

There were no changes in the three months ended March 31, 2018 to the partial guarantees for the closure obligations of the Shahuindo and Timmins mines. The letter of credit remained at $13,297 for La Arena and $10,390 for Shahuindo and the bond remained at $9,495 for the Timmins mines.

14. REVENUES

	Three Months Ended March 31,
	2018			2017
Silver	$	656		$	101,281
Gold	139,293			139,752
Lead	(7		)	3,759
Zinc	—			6,254
	$	139,942		$	251,046

a) Concentrate revenues

The Company has contracts with a number of customers for its concentrate sales. Revenues reflect final settlements which can be positive or negative. For the three months ended March 31, 2018, the Company had no concentrate revenue (2017: $113,106).

The concentrate revenues by customer for the three months ended March 31, 2018 and 2017 are as follows:

	Three Months Ended March 31,
	2018		2017
Customer 1	—	%	41	%
Customer 2	—	%	26	%
Customer 3	—	%	18	%
Customer 4	—	%	13	%
Other customers	—	%	2	%
Total concentrate revenues	—	%	100	%

Tahoe Resources Inc.	12
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

b) Doré revenues

The Company has contracts with customers for its doré sales. The Company's top three doré customers account for 76% of doré revenues for the three months ended March 31, 2018 (three months ended March 31, 2017: three customers accounted for 93% of doré revenues). For the three months ended March 31, 2018, doré sales comprised 100% of total gold sales (three months ended March 31, 2017: 98%). The doré revenues by customer for the three months ended March 31, 2018 and 2017 are as follows:

	Three Months Ended March 31,
	2018		2017
Customer 1	46	%	43	%
Customer 2	15	%	35	%
Customer 3	15	%	15	%
Other customers	24	%	7	%
Total doré revenues	100	%	100	%

The Company has determined that the loss of any single customer or curtailment of purchases by any one customer would not have a material adverse effect on the Company's financial performance, financial condition and cash flows due to the nature of the refined metals market.

15. PRODUCTION COSTS

	Three Months Ended March 31,
	2018		2017
Raw materials and consumables	$	27,057	$	46,641
Salaries and benefits	22,950		24,623
Contractors and outside services	19,714		24,281
Other expenses	1,801		3,007
Changes in inventory	6,158		(1,162		)
	$	77,680	$	97,390

16. CARE AND MAINTENANCE

	Three Months Ended March 31,
	2018		2017
Raw materials and consumables	$	610	$	—
Salaries and benefits	5,322		—
Contractors and outside services	4,039		—
Other expenses	380		—
	$	10,351	$	—

17. GENERAL AND ADMINISTRATIVE EXPENSES

		Three Months Ended March 31,
	Notes	2018		2017
Salaries and benefits		$	6,582	$	4,686
Share-based payments	18	1,126		1,571
Consulting and professional fees		2,343		1,347
Administrative and other		1,790		4,087
		$	11,841	$	11,691

18. SHARE-BASED PAYMENTS AND OTHER RELATED INFORMATION

The Company's equity compensation plans are designed to attract and retain individuals and to reward them for current and expected future performance. The Company's share-based compensation arrangements are denominated in CAD and include Tahoe Share Plan Options, the Rio Alto replacement options issued on April 1, 2015 upon completion of the

Tahoe Resources Inc.	13
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

acquisition of Rio Alto and the Lake Shore Gold replacement options issued on April 1, 2016 upon completion of the acquisition of Lake Shore Gold (collectively, the "Share Options"), as well as Deferred Share Awards ("DSAs"), Restricted Share Awards ("RSAs"), and Share Appreciation Rights ("SARs")(collectively with the Share Options, referred to as the "Share Plan").

At March 31, 2018, the Company has the following share-based payment arrangements:

a)     Share Options

The Share Plan entitles key management personnel, senior employees, and consultants to the option to purchase shares in the Company. Under the terms of this program, Share Options are exercisable at the market close price of the Company's shares on the day prior to the grant date. The Share Options vest based on vesting terms set by the Compensation Committee of the Board of Directors and vest in three equal tranches with the first tranche vesting on the first anniversary, the second on the second anniversary, and the third on the third anniversary of the grant date.

The number and weighted average exercise price in CAD of Share Options outstanding at March 31, 2018 and December 31, 2017 are as follows:

	Weighted average exercise price		Number of Share Options
Outstanding at January 1, 2017	$	14.55	3,211,745
Granted	9.91		1,407,000
Exercised	10.82		(112,136	)
Forfeited	13.68		(307,000	)
Expired	17.37		(332,584	)
Outstanding at December 31, 2017	$	12.79	3,867,025
Forfeited	14.20		(52,000	)
Expired	16.34		(417,000	)
Outstanding at March 31, 2018	$	12.33	3,398,025

The following table summarizes information about Share Options outstanding and exercisable at March 31, 2018 (exercise range and prices in CAD):

Exercise price range	Outstanding	Weighted average exercise price		Weighted average remaining life (years)	Exercisable	Weighted average exercise price		Weighted average remaining life (years)
2.80-9.67	235,970	$	7.68	1.90	163,970	$	7.99	0.81
9.68-10.59	1,115,000	$	10.00	3.95	375,000	$	10.00	3.95
10.60-12.56	997,000	$	12.35	2.98	644,667	$	12.38	2.94
12.57-15.44	171,055	$	13.03	2.27	123,055	$	12.92	1.88
15.45-23.37	879,000	$	16.39	2.04	557,000	$	16.34	1.89
2.80-23.37	3,398,025	$	12.33	2.95	1,863,692	$	12.73	2.57

During the three months ended March 31, 2018, the Company recorded $651 of share based compensation expense relating to Share Options in general and administrative expenses (three months ended March 31, 2017: $787).

b)     DSAs and RSAs

The Share Plan permits DSAs and RSAs (collectively referred to as "Share Awards") to be issued to directors, key management personnel and senior employees. Upon vesting, shares in the Company are issued at no exercise price. Compensation cost for DSAs and RSAs is measured based on the closing price of the stock one day prior to the grant date.

Tahoe Resources Inc.	14
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

i.     DSAs

The DSAs vest based on service-related vesting terms set by the Compensation Committee of the Board of Directors and can therefore vary grant to grant. In general, however, DSAs vest in three equal tranches with the first tranche vesting on the first anniversary, the second on the second anniversary, and the third on the third anniversary of the grant date (the "general DSA vesting terms"). During the three months ended March 31, 2018, the Company recorded $475 of share based compensation expense relating to DSAs in general and administrative expenses (three months ended March 31, 2017: $748).

The number of DSAs outstanding at March 31, 2018 and December 31, 2017 is as follows:

Outstanding at January 1, 2017	463,000
Granted	195,000
Shares issued	(215,000	)
Cancelled/forfeited	(26,000	)
Outstanding at December 31, 2017	417,000
Outstanding at March 31, 2018	417,000

ii.     RSAs

The RSAs vest immediately on the grant date and are issued at that time. Consequently, there are no RSAs outstanding at March 31, 2018 and December 31, 2017.

The Company granted nil RSAs during the three months ended March 31, 2018 for total share based compensation expense of nil (three months ended March 31, 2017: 3,750 RSAs were granted and $35 expense recorded).

c)     Inputs for measurement of fair values

The grant date fair values (CAD) of Share Options are measured based on the Black-Scholes Model and are denominated in CAD.

There were nil Share Options granted during the three months ended March 31, 2018 (three months ended March 31, 2017: 1,305,000).

The weighted average inputs used and grant date fair values (CAD) of Share Options granted during the three months ended March 31, 2018 and 2017 are as follows:

	Three Months Ended March 31,
	2018			2017
Share price	$	—		$	9.63
Exercise price	$	—		$	9.93
Expected volatility(1)	—		%	51		%
Expected life (years)	—			3.50
Expected dividend yield	—		%	3.32		%
Risk-free interest rate	—		%	1.06		%
Pre-vest forfeiture rate	—		%	7.10		%
Fair value	$	—		$	2.84

(1) The expected volatility assumption is based on the historical volatility of the Company's Canadian dollar common shares on the Toronto Stock Exchange.

d)     Authorized share capital

The Company's authorized share structure is as follows:

• Unlimited number of authorized common shares without par value;

Tahoe Resources Inc.	15
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

• Common shares are without special rights or restrictions attached;

• Common shares have voting rights;

• Common shareholders are entitled to receive dividend payments; and

• Common shareholders are entitled to elect to reinvest their dividend payments through the Company's dividend reinvestment program.

At March 31, 2018, there were 312,775,761 common shares of the Company issued and outstanding (December 31, 2017: 312,775,761).

19. INCOME TAX EXPENSE

The reconciliation of income taxes at statutory rates with the reported taxes is as follows:

	Three Months Ended March 31,
	2018			2017
(Loss) Earnings before income taxes	$	(2,034	)	$	85,899
Statutory tax rate	27.00		%	26.00		%
Income tax (recovery) expense	$	(549	)	$	22,334
Reconciling items:
Difference between statutory and foreign tax rates	4,471			(4,819		)
Non-deductible share-based payments	472			235
Impact of foreign exchange on deferred income tax assets and liabilities	(736		)	(6,969		)
Non-deductible expenses	236			441
Change in unrecognized deferred tax assets	934			(20		)
Income tax expense	$	4,828		$	11,202

20. EARNINGS (LOSS) PER SHARE

	Three Months Ended March 31, 2018							Three Months Ended March 31, 2017
	(Loss)			Weighted average shares outstanding	(Loss) per share			Earnings		Weighted average shares outstanding	Earnings per share
Basic EPS(1)	$	(6,862	)	313,192,761	$	(0.02	)	$	74,697	311,948,022	$	0.24
Dilutive securities:
Share options	—			—	—			—		77,075	—
Diluted EPS	$	(6,862	)	313,192,761	$	(0.02	)	$	74,697	312,025,097	$	0.24

(1) The weighted average shares outstanding used in the basic earnings per share calculation includes the dilutive impact of 417,000 DSAs (three months ended March 31, 2017: 478,000 DSAs).

For the three months ended March 31, 2018, 3,973,895 Shares Options and 417,000 DSAs were outstanding of which 3,949,209 and nil, respectively were anti-dilutive (three months ended March 31, 2017: 4,284,643 Share Options and 463,000 DSAs outstanding, of which 2,754,336 and nil, respectively were anti-dilutive) because the underlying exercise prices exceeded the average market price for the three months ended March 31, 2018 of CAD$6.84 (three months ended March 31, 2017: CAD$11.41).

Tahoe Resources Inc.	16
Condensed Interim Consolidated Financial Statements

21. SUPPLEMENTAL CASH FLOW INFORMATION

	Three Months Ended March 31,
	2018			2017
Trade and other receivables	$	(11,313	)	$	(261	)
Inventories	(540		)	1,992
Other current assets	2,097			(1,590		)
Other non-current assets	(1,035		)	(5,270		)
Accounts payable and accrued liabilities, and other non- current liabilities	2,808			(30,547		)
Changes in working capital	$	(7,983	)	$	(35,676	)

22. SEGMENTED INFORMATION

All of the Company's operations are within the mining sector. The Company produces silver, gold, lead and zinc from mines located in Guatemala, Peru and Canada. Due to the geographic and political diversity of the countries in which the Company operates, each operating segment is responsible for achieving specified business results within a framework of global corporate policies and standards. Regional management in each country provides support to the operating segments, including but not limited to financial, human resources, and exploration assistance. Each operating segment has a budgeting process which it uses to measure the results of operation and exploration activities.

The operating, exploration and financial results of individual operating segments are reviewed by the Company's executive management. As a group, the executive management of the Company is considered to be the chief operating decision maker ("CODM") in order to make decisions about the allocation of resources and to assess their performance. The CODM determined that for review, an operating segment must be one whose principal business activities are the operation of mineral properties for the mining of precious metals and the exploration, development and acquisition of mineral interests.

There has been no change to the Company's reportable operating segments during the three months ended March 31, 2018.

Escobal care and maintenance costs, which comprise the cost of maintaining the Escobal mine during the temporary shut down and include environmental costs, salaries and legal fees form a component of total operating costs.

Significant information relating to the Company's operating segments as at March 31, 2018 and for the three months ended March 31, 2018 is summarized as follows:

	March 31, 2018(1)
	Escobal(2)		La Arena		Shahuindo			Timmins mines			Total
Mineral interests and plantand equipment	$	776,187	$	424,259	$	548,094		$	893,249		$	2,641,789
Goodwill	—		57,468		—			54,617			112,085
Total assets	870,805		545,793		634,440			985,280			3,036,318
Total liabilities(3)	$	101,308	$	56,532	$	(407,301	)	$	(167,704	)	$	(417,165	)

	Three Months Ended March 31, 2018(1)
	Escobal			La Arena		Shahuindo		Timmins mines			Total
Revenues	$	(7	)	$	64,466	$	25,124	$	50,359		$	139,942
Production costs	—			29,165		14,595		33,920			77,680
Royalties	17			—		—		878			895
Care and Maintenance(4)	10,351			—		—		—			10,351
Depreciation and depletion	760			14,406		5,858		15,996			37,020
Mine operating earnings	(11,135		)	20,895		4,671		(435		)	13,996
Capital expenditures	$	1,464		$	6,201	$	25,335	$	27,492		$	60,492

(1) Balances presented are before intercompany transaction eliminations.

(2) Escobal segment includes corporate and other.

(3) Includes intercompany payables and receivables to reconcile to the total liabilities on the statement of financial position.

See accompanying notes to the condensed interim consolidated financial statements	17
Tahoe Resources Inc.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

(4) Due to the suspension of mining operations following the suspension of the Escobal mining license in the beginning of the third quarter of 2017 care and maintenance costs, which comprise the cost of maintaining the Escobal mine and include environmental costs, salaries and legal fees have been incurred.

Significant information relating to the Company's reportable operating segments as at December 31, 2017 and for the three months ended March 31, 2017 is summarized as follows:

	December 31, 2017(1)
	Escobal		La Arena		Shahuindo			Timmins mines			Total
Mineral interests and plant and equipment	$	776,364	$	433,178	$	527,826		$	879,421		$	2,616,789
Goodwill	—		57,468		—			54,617			112,085
Total assets	906,434		573,566		621,985			978,653			3,080,638
Total liabilities	$	81,208	$	160,979	$	(539,512	)	$	(158,425	)	$	(455,750	)

	Three Months Ended March 31, 2017(1)
	Escobal		La Arena		Shahuindo		Timmins mines		Total
Revenues	$	113,106	$	59,035	$	19,448	$	59,457	$	251,046
Production costs	32,798		25,607		11,291		27,694		97,390
Royalties	6,088		—		—		1,559		7,647
Depreciation and depletion	14,601		5,968		6,104		15,168		41,841
Mine operating earnings	59,619		27,460		2,053		15,036		104,168
Capital expenditures	$	9,916	$	5,905	$	8,319	$	24,415	$	48,555

(1) Balances presented are before intercompany transaction eliminations.

23. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial instruments consist of cash and cash equivalents, restricted cash, trade and other receivables, other financial assets, accounts payable and accrued liabilities, debt and lease obligations, and are categorized as follows:

• Cash and cash equivalents, restricted cash, trade and other receivables, and other financial assets are classified as loans and receivables and are measured at amortized cost;

• Trade and other receivables which are subject to provisional pricing adjustments and investments are measured at fair value through profit and loss; and

• Accounts payable and accrued liabilities, debt and lease obligations are classified as other financial liabilities.

Fair value ("FV") estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The analysis of financial instruments that are measured subsequent to initial recognition at fair value can be categorized into Levels 1 through 3 based upon the degree to which the inputs used in the fair value measurement are observable.

Level 1 - inputs to the valuation methodology are quoted (adjusted) for identical assets or liabilities in active markets.

Level 2 - inputs to valuation methodology include quoted market prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Tahoe Resources Inc.	18
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

At March 31, 2018 and December 31, 2017, the levels in the FV hierarchy into which the Company's financial assets and liabilities are measured and recognized on the statement of financial position at fair value are categorized as follows:

	March 31, 2018						December 31, 2017
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Investments(1)	$	81	$	—	$	—	$	320	$	—	$	—
Trade receivables	—		10,748		—		—		—		—
	$	81	$	10,748	$	—	$	320	$	—	$	—

(1) Investments are included in other current assets.

The carrying value of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, debt and lease obligations approximate their fair value given the short term to maturity.

There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2018.

24. FINANCIAL RISK MANAGEMENT

The Company has exposure to certain risks resulting from its use of financial instruments. These risks include credit risk, liquidity risk and market risk.

a) Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a loss for the Company by failing to meet its obligations. Credit risk for the Company is primarily related to trade and other receivables, sales tax receivable and cash and cash equivalents.

There has been no significant change to the Company's exposure to credit risk since December 31, 2017 and the Company deems this risk to be minimal.

b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, to the extent possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. To further mitigate this risk, the Company has the Second Amended and Restated Revolving Credit Facility in place in the amount of $175 million (note 11a).

The Company's deems exposure to liquidity risk to be minimal and there have not been significant changes compared to the December 31, 2017 commitments, other than the repayment of the Company's $35 million credit facility (Note 11)

c) Market Risk

The market risk of the Company is composed of three main risks: foreign exchange risk, interest rate risk, and price risk.

i. Foreign Exchange Risk

The Company is exposed to foreign exchange or currency risk on balances that are denominated in a currency other than the USD. These include cash and cash equivalents, sales tax receivable, accounts payable and accrued liabilities and taxes payable.

There has been no significant change to the Company's exposure to foreign exchange risk since December 31, 2017 and the Company deems this risk to be at an acceptable level.

ii. Interest Rate Risk

Interest rate risk is the risk that the Company's future cash flows and fair values will fluctuate as a result of changes in market interest rates. At March 31, 2018, the Company's interest-bearing financial instruments are related to cash and cash equivalents, the Second Amended and Restated Revolving Facility and finance

Tahoe Resources Inc.	19
Condensed Interim Consolidated Financial Statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(expressed in 000's of USD, except as otherwise stated) - Unaudited

leases. No amounts were drawn on the Second Amended and Restated Revolving Facility and therefore only standby fees were applicable for the three months ended March 31, 2018 (note 11b).

During the three months ended March 31, 2018 the Company repaid the $35 million credit facility. Thus the interest rate risk has been reduced and the Company deems this risk to be minimal.

iii. Price Risk

Price risk is the risk that the fair value of the Company's financial instruments will fluctuate due to changes in market prices.

The Company has not entered into any hedging contracts. There has been no significant change to the Company's exposure to price risk since December 31, 2017 and the Company deems this risk to be at an acceptable level.

25. CAPITAL MANAGEMENT

The Company's strategy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to support future development of the business. The Company seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by a sound capital position.

The capital structure of the Company consists of common equity, comprising share capital and reserves net of accumulated deficit, and debt, which includes the Second Amended and Restated Revolving Facility and finance leases.

	Notes	March 31, 2018			December 31, 2017
Shareholders' equity		$	2,619,153		$	2,624,888
Debt	11	—			35,000
Lease obligations	12	5,614			7,754
		2,624,767			2,667,642
Cash and cash equivalents	6	(53,632		)	(125,665		)
Restricted cash		(5,062		)	(5,124		)
		$	2,566,073		$	2,536,853

The Company's overall capital management strategy remains unchanged from the year ended December 31, 2017.

26. CONTINGENCIES

Due to the complexity and nature of the Company's operations, various legal, tax, and regulatory matters are outstanding from time to time. In the event that management's estimate of the future resolution of these matters changes, the Company will recognize the effects of the changes in its consolidated financial statements on the date such changes occur. There were no significant changes to the Company's contingencies as disclosed in note 27 of its audited consolidated financial statements for the year ended December 31, 2017.

Tahoe Resources Inc.	20
Condensed Interim Consolidated Financial Statements