As filed with the Securities and Exchange Commission on April 28, 2022

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-35401

CEMENTOS PACASMAYO S.A.A.

(Exact name of Registrant as specified in its charter)

PACASMAYO CEMENT CORPORATION

(Translation of Registrant’s name into English)

Republic of Peru
(Jurisdiction of incorporation or organization)

Calle La Colonia 150, Urbanización El Vivero

Surco, Lima
Peru
(Address of principal executive offices)

Javier Durand, Esq., General Counsel

Tel. +51-1-317-6000
Calle La Colonia 150
Urb. El Vivero - Lima, Peru
(Name, telephone, email and/or facsimile number and address of company contact person)

Securities registered pursuant to Section 12(b) of the Act.

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares, par value S/1.00 per share, in the CPAC New York Stock Exchange
form of American Depositary Shares, each
representing five Common Shares

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

At December 31, 2021 423,868,449 common shares

4,238,397 investment shares*

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934. Yes ☐ No ☒

Note- Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their
obligations under those Sections.

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T (§ 203.405 of this chapter) during the preceding 12 months (or for such other period that the registrant was required to submit and post
such files). Yes ☐ No ☒ Note: Not required for Registrant.

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of “large
accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐

Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification
after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark which basis of accounting the Registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Other ☐
Standards Board ☒

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the Registrant has elected to follow. Item 17 ☐ Item 18
☐

If this is an annual report, indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

* Excluding 36,040,497 investment shares held in treasury.

 PART I
INTRODUCTION

Certain Definitions

All references to “we,” “us,” “our,” “our company,” “Pacasmayo,” and “Cementos Pacasmayo” in this annual report are to Cementos Pacasmayo S.A.A., a publicly-held
corporation (sociedad anónima abierta) organized under the laws of Peru, and, unless the context requires otherwise, its consolidated subsidiaries. The term “U.S. dollar” and the symbol
“US$” refer to the legal currency of the United States; and the term “sol” and the symbol “S/” refer to the legal currency of Peru.

Financial Information

Our consolidated financial statements included in this annual report have been prepared in soles and in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board (“IASB”) and audited in accordance with the standards of the Public Company Accounting Oversight Board (United States).

In this annual report, we present EBITDA,which is a financial measure that is not recognized under IFRS. We refer to such financial measures as “non-IFRS” financial
measures. A non-IFRS financial measure is generally defined as one that purports to measure financial performance; financial position or cash flows of the subject reporting company
but excludes or includes amounts that would not be so adjusted in the most comparable IFRS measure. We present EBITDA because we believe it provides the reader with a
supplemental measure of the financial performance of our core operations that facilitates period-to-period comparisons on a consistent basis. EBITDA should not be construed as an
alternative to profit or operating profit, as an indicator of operating performance, as an alternative to cash flow provided by operating activities or as a measure of liquidity (in each case,
as determined in accordance with IFRS). EBITDA, as calculated by us, may not be comparable to similarly titled measures reported by other companies, including those in the cement
industry. For a calculation of EBITDA and a reconciliation of EBITDA to the most directly comparable IFRS financial measure, see “Item 4. Information on the Company—B. Business
Overview—Overview.”

We have translated some of the soles amounts appearing in this annual report into U.S. dollars for convenience purposes only. Unless the context otherwise requires, the rate
used to translate soles amounts to U.S. dollars was S/3.9865 to US$1.00, which was the average accounting exchange rate (tipo de cambio contable) reported on December 31, 2021, by
the Peruvian Superintendence of Banks, Insurance and Private Pension Fund Administrators (Superintendencia de Banca, Seguros y AFPs, or “SBS”). The Federal Reserve Bank of New
York does not report a noon buying rate for soles. The U.S. dollar equivalent information presented in this annual report is provided solely for convenience of the reader and should not
be construed as implying that the soles amounts represent, or could have been or could be converted into, U.S. dollars at such rates or at any other rate.

Certain figures included in this annual report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic
aggregations of the figures that precede them.

Market Information

We make estimates in this annual report regarding our competitive position and market share, as well as the market size and expected growth of the construction sector and
cement industry in Peru. We have made these estimates on the basis of our management’s knowledge and statistics and other information available from the following sources:

● the Central Bank of Peru (Banco Central de Reserva del Perú, or the “BCRP”);

● the National Statistical Institute of Peru (Instituto Nacional de Estadística e Informática, or “INEI”);

● the Association of Cement Producers of Peru (Asociación de Productores de Cemento, or “ASOCEM”);

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 ● the Ministry of Housing, Construction and Sanitation (Ministerio de Vivienda, Construcción y Saneamiento);;

● ADUANET, a website administered by the Peruvian Tax Superintendence (Superintendencia Nacional de Administración Tributaria, or “SUNAT”);

● the Peruvian Chamber of Construction (Cámara Peruana de la Construcción); and

● the Global Competitiveness Index prepared by the World Economic Forum.

We believe these estimates to be accurate as of the date of this annual report on Form 20-F.

Forward-Looking Statements

This annual report contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve
known and unknown risks, uncertainties and other factors, including those listed under “Item 3. Key Information – D. Risk Factors,” which may cause our actual results, performance or
achievements to differ materially from the forward-looking statements that we make.

Forward-looking statements typically are identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “project,” “plan,” “believe,”
“potential,” “continue,” “is/are likely to,” or other similar expressions. Any or all of our forward- looking statements in this annual report may turn out to be inaccurate. Our actual
results could differ materially from those contained in forward-looking statements due to a number of factors, including:

● political, economic and social risk inherent to conducting business in Peru including as a result of public health crises in Peru, and the Peruvian government’s responses
thereto;

● exchange rates, inflation and interest rates;

● the entry of new competitors into the market we serve;

● construction activity levels, particularly in the northern region of Peru;

● private investment and public spending in construction projects;

● unpredictable natural disasters, such as floods and earthquakes affecting the northern region of Peru, and global events, such as public health crises and
epidemics/pandemics and the worldwide effects thereof and responses thereto;

● availability and prices of energy, admixtures and raw materials;

● changes in the regulatory framework, including tax, environmental and other laws;

● the successful expansion of our production capacity;

● our ability to compete with potential substitutes of cement products that may be introduced in the Peruvian construction industry;

● our ability to maintain and expand our distribution network;

● the impact of global or local public health events, including pandemics and the severity and duration of the COVID-19 pandemic, including the availability of vaccines in
Peru and governments’ related responses to the outbreak which could cause business disruptions and continued declines in production of or demand for cement;

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 ● international conflicts, such as the current one between Russia and Ukraine, and the worldwide effects and responses thereto

● our ability to retain and attract skilled employees; and

● other factors discussed under “Item 3. Key Information—D. Risk Factors.”

The forward-looking statements in this annual report represent our expectations and forecasts as of the date of this annual report. Except as required by law, we undertake no
obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this annual report.

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

A. [Reserved]

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

Global Risks

The extent to which the coronavirus (COVID-19) pandemic and measures taken in response thereto impact our business, results of operations and financial condition will
depend on future developments, which are highly uncertain and cannot be predicted.

Global health concerns related to the COVID-19 pandemic have been weighing on the macroeconomic environment and the outbreak has significantly increased economic
uncertainty. Although during 2021 government-imposed restrictions were much less than in 2020, the Peruvian economy has not yet recovered to pre-pandemic levels. To the extent that
new strains of the virus continue to emerge, these and other measures may remain in place for a significant period of time and are likely to continue to affect financial condition and
prospects.

The spread of COVID-19 has caused us to modify our business practices (including employee travel, employee work locations, and the cancellation of physical participation in
meetings, events, and conferences), and we may take additional steps as required by current circumstances, by government authorities or that we determine are in the best interest of our
employees, customers and business partners. There is no certainty that such measures are sufficient to mitigate the risks posed by COVID-19 or are satisfactory to government
authorities. The extent to which the COVID-19 pandemic impacts our business, results of operations and financial condition will depend on future developments, which are highly
uncertain and cannot be predicted, including, but not limited to, the duration and spread of COVID-19, its severity, the actions to contain the virus or treat its impact, and how quickly
and to what extent normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, we may continue to experience materially adverse impacts
to our business as a result of its global economic impact, including the recession that has already occurred and may continue or intensify in the future.

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 Global macroeconomic conditions may have an adverse effect on our business, financial condition and results of operations.

Our operations and customers are located in Peru. As a result, our business, financial condition and results of operations, like those of most companies in Peru, could be
adversely affected by the level of economic activity in the country. Therefore, variations in economic indicators such as inflation, gross domestic product (“GDP”), the balance of
payments, the appreciation and depreciation of the currency, access to credit, interest rates, investment and savings, consumption, spending and fiscal income, employment, among other
variables, over which we have no control, could affect the development of the Peruvian economy and, therefore, could generate adverse consequences for our business, financial
condition and results of operation.

Peru’s economy experienced a relatively greater contraction than the economies of other countries in the region as a result of the COVID-19 pandemic, mainly due to the more
severe virus containment measures implemented in Peru: a greater number of activities were mandated to be shut down and a strict national stay-at-home order and quarantine lasted
more than 100 days. The application of these severe measures aimed at containing the expansion of COVID-19 in the country caused the Peruvian economy to contract 11.1% in 2020.
With the progressive reopening of the economy and the application of monetary and fiscal stimuli, GDP bounced back in 2021, reaching 13.2% growth. In addition, in 2021 the annual
inflation rate was 6.2% compared to 1.5% in 2020, mainly due to external factors, such as the increased cost of oil and transportation, as well as the depreciation of the sol. Domestic
demand also recovered after the 9.4% decrease in 2020, reaching 13.9% growth in 2021.

The extent to which the economy continues its recovery depends on the extent the country is able to combat the adverse impacts of the inflationary pressure, the continuation of
the vaccination process and the ability to decrease the current political uncertainty and its negative impact on future economic expectations.

The cement sector is closely related to the following main macroeconomic variables: (i) the expansion or contraction of the economy as measured by GDP, (ii) domestic
demand, (iii) private investment and (iv) public spending. In this regard, prolonged conditions that adversely affect the economic growth of Peru would negatively affect the cement
sector, in such a way that the economic situation and our results of operations may not coincide with those presented at the date of this annual report.

International conflicts, such as the current conflict between Russia and Ukraine have adversely affected international prices, increasing inflation and therefore our
business, financial condition and results of operations

Global markets are currently operating in a period of economic uncertainty, volatility and disruption following Russia’s full-scale invasion of Ukraine on February 24, 2022.
Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine and any other geopolitical tensions could have an adverse effect on the
economy and business activity globally and lead to (i) credit and capital market disruptions, (ii) increase in interest rates and inflation in the markets in which we operate, (iii) lower or
negative global growth, among others. These developments have caused interruptions in the trade flows of goods produced by Russia and Ukraine (mainly energy and grains) which
have generated upward pressure on international prices. Additionally, Russia’s prior annexation of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk
regions of Ukraine and subsequent military interventions in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries
against Russia, Belarus, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic, and the so-called Luhansk People’s Republic, As a result of these commercial and
financial sanctions pressure on international prices may continue, even after the conflict has ended.

Similar pressures have been observed in the price of energy. Russia is a major producer of natural gas, oil and coal. Production and commercial activities have been affected by
direct and indirect sanctions. Peru is a net importer of oil, and as such it has been affected by the significant increase in price, generating high levels of inflation. The inflation rate in
March 2022 was the highest since 1996. The increase in the price of coal directly affects our business since it is one of the raw materials used in our process and in 2021 accounted for
11.6% of our cement production cost. Indirectly, the increase in the price of oil and gas also affects our business, as in generates inflationary pressure throughout, and increases freight
prices, which in turn increase import costs.

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 Geopolitical and economic risks have also increased over the past few years as a result of trade tensions between the United States and China, Brexit, and the rise of populism
and tensions in South America and Middle East. Growing tensions may lead, among others, to a deglobalization of the world economy, an increase in protectionism or barriers to
immigration, a general reduction of international trade in goods and services and a reduction in the integration of financial markets, any of which could materially and adversely affect
our business, financial condition and results of operations.

Global freight costs increases have adversely affected international prices, increasing inflation and therefore our business, financial condition and results of operations

The current increase in freight prices is due both to demand and supply side issues. On the one hand, there was a surge in demand for goods, as consumers spent their money on
goods rather than services during pandemic lockdowns and restrictions. On the other, there was capacity constraints, including container ship carrying capacity, container shortages,
labor shortages, continued on and off COVID-19 restrictions across port regions and congestion at ports. This mismatch between surging demand and reduced supply capacity then led
to record container freight rates during 2021. According to UNCTAD, this will have a profound impact on trade and undermine socioeconomic recovery, especially in developing
countries, until maritime shipping operations return to normal. In Peru, this has already resulted in higher levels of inflation, reaching 6.2% in 2021 compared to 1.5% in 2020. Increase
freight costs directly affect our business and results of operation since imported materials represent approximately 39.7% of our production costs.

Risks Relating to Peru

Public health crises and epidemics/pandemics, such as COVID-19 have adversely affected Peru’s economy and therefore our business, financial condition and results of
operations.

The COVID-19 pandemic had a material adverse impact on the Peruvian economy resulting in, volatility in the financial markets, reduced international trade and lower activity
in certain of the key drivers of the local economy. In addition, social distancing and stay-at-home quarantine measures imposed to minimize pressure on the healthcare system and
contain social costs, adversely affected dynamism of various productive sectors of the economy. Reduced activity in these economic sectors has resulted in reduced employment and less
income for families and companies. Poverty levels increased 9.9 percentage points in 2020.

In 2021, there was a substantial recovery and the most dynamic sectors were construction, non-primary manufacturing, commerce and some branches of the service sector,
including telecommunications and finance and insurance. However, there are sectors that are still lagging behind in their recovery, especially those with a greater degree of physical
interaction such as services related to transportation, accommodations and restaurants.

Over the long-term, we cannot assure you that the measures adopted by the Peruvian government to counteract the effects of the COVID-19 pandemic will be sufficient to
restore public confidence or to restore economic growth.

Economic, social and political developments in Peru including political instability, rates of inflation and unemployment could have a material adverse effect on our
business, financial condition and results of operations.

All of our operations and customers are located in Peru. Accordingly, our business, financial condition and results of operation depend on the level of economic activity in Peru.
Our business, financial condition and results of operations could be affected by changes in economic and other policies of the Peruvian government (which has exercised and continues
to exercise substantial influence over many aspects of the private sector), and by other economic and political developments in Peru, including devaluation or depreciation, currency
exchange controls, inflation, economic downturns, political instability, corruption scandals, social unrest and terrorism.

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 In the past, Peru has experienced political instability that included a succession of regimes with disparate economic policies and programs that created uncertainty for domestic
and foreign investors. Pedro Castillo became President of Peru, after a disputed election results. President Castillo has faced political opposition in the Peruvian Congress, which is
highly fragmented, as no political party has achieved a clear majority and at least 10 political parties have minority representation, which has led some groups in the Peruvian Congress
to ask for his resignation. On February 8, 2022, President Castillo appointed Aníbal Torres as the Prime Minister to serve under his government. Mr. Torres had previously served as the
Ministry of Justice and Human Rights. The current Prime Minister was preceded by Héctor Valer, Mirtha Vásquez and Guido Bellido. On March 9, 2022, the Peruvian cabinet (Consejo
de Ministros), headed by Aníbal Torres, received a vote of confidence (voto de confianza) from the Peruvian Congress after obtaining a total of 64 votes in favor, 58 votes against and
two abstentions. This was the fourth cabinet that received a vote of confidence from the Peruvian Congress under President Castillo’s administration. On March 14, 2022, the Peruvian
Congress admitted a motion to impeach (moción de vacancia) President Castillo with a total of 76 votes in favor, 41 votes against and one abstention, claiming alleged permanent moral
incapacity of President Castillo. This was the second motion to impeach against President Castillo presented to the Peruvian Congress since he took office on July 28, 2021. On March
28, 2022, the Peruvian Congress denied the motion to impeach with a total of 55 votes in favor, 54 votes against and 19 abstentions and as a result, President Castillo has remained in
office. However, since the political opposition in the Peruvian Congress remains strong, we cannot assure that additional impeachment motions will not be presented to the Peruvian
Congress against President Castillo during the remainder of his term, which will expire in 2026. In addition, the Peruvian government led by President Castillo may seek to modify and
reform the Peruvian Constitution to expand the role of the government in activities currently undertaken by the private sector in accordance with statements made during his campaign.
The new President is expected to face challenges in aligning certain initiatives with, and obtaining support from, the Peruvian Congress. Although it is expected that a majority
opposition from the Peruvian Congress against certain new policies and reforms to be proposed by the new President will continue, there is a risk of unpredictable policymaking. We
cannot assure you whether President Castillo or any of his successors, should an impeachment motion (moción de vacancia) be approved by the Peruvian Congress, will pursue business-
friendly and open-market economic policies that stimulate economic growth and stability, and that measures negatively impacting private investment, such as higher taxation or
exchange controls, will not be implemented.

In spite of this political turmoil, the Peruvian economy has continued its recovery from the effects of COVID-19. Exports reached record numbers during 2021, which in turn
gave a record on the positive account balance of Peru. However, expectations of private investment are still negative, according to BCR.

During the 1980s and the early 1990s, Peru experienced severe terrorist activity targeted against, among others, the government and the private sector. Since then, terrorist
activity in Peru has been mostly confined to small-scale operations in the Huallaga Valley and the Valleys of the Rivers Apurimac, Ene and Mantaro, or “VRAEM,” areas, both in the
Eastern part of the country. The Huallaga Valley and VRAEM constitute the largest areas of coca cultivation in the country and thus serve as a hub for the illegal drug trade. Terrorist
activity and the illegal drug trade continue to be key challenges for Peruvian authorities. Any violence derived from the drug trade or a resumption of large-scale terrorist activities which
may occur could hurt our operations and, could disrupt the economy of Peru and our business. In addition, Peru has, from time to time, experienced social and political turmoil, including
riots, nationwide protests, strikes and street demonstrations. In March 2022, a nationwide strike by carriers resulted in riots and on April 4, 2022, the Government issued Supreme Decree
034-2022-PCM, imposing a 22-hour lockdown for Metropolitan Lima and the Constitutional Province of Callao for April 5, 2022. This generated massive protests in Lima, leading
President Castillo to cut the lockdown and to further decrease his popularity levels.

Despite Peru’s ongoing economic growth and stabilization, the social and political tensions and high levels of poverty and proper employment continue. Future government
policies to preempt or respond to social unrest could include, among other things, expropriation, nationalization, suspension of the enforcement of creditors’ rights and new taxation
policies. These policies could adversely and materially affect the Peruvian economy and our business.

The foregoing political uncertainty and presidential decisions could further increase interest rates and currency volatility, as well as adversely and materially affect the Peruvian
economy and our business, financial condition and results of operations.

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 A depreciation or devaluation of the sol could have a material adverse effect on our business, financial condition and results of operations.

A significant depreciation or devaluation of the sol may affect us due to the fact that our revenues are denominated in soles while 38.7% of our indebtedness, as of December
31, 2021 is denominated in U.S. dollars. As a result, we are exposed to currency mismatch risks. As of December 31, 2021, we maintain cross currency swap hedging agreements in
aggregate principal amount of 100% of our current U.S. dollar-denominated debt obligations to hedge against the associated foreign exchange risks. Nonetheless, a depreciation or
devaluation of the sol against the U.S. dollar and increased exchange rate volatility would increase the cost of our debt service obligations which could have a material adverse effect on
our business, financial condition and results of operations.

If the Peruvian government were to implement restrictive exchange rate policies and other similar laws, our business, financial condition and results of operations could be
adversely affected.

Since 1991, the Peruvian economy has undergone a major transformation from a highly protected and regulated system to a free market economy. During this period,
protectionist and interventionist laws and policies have been dismantled. As a result the Peruvian economy had been growing consistently, until 2020 due to the COVID-19 pandemic.
Currently, foreign exchange rates are determined by market conditions, with regular open-market operations by the BCRP in the foreign exchange market to reduce volatility in the value
of Peru’s currency against the U.S. dollar.

We cannot assure you that the Peruvian government will not institute restrictive exchange rate policies in the future. Any such restrictive exchange rate policy could have a
material adverse effect on our business, financial condition and results of operations and adversely affect our ability to repay debt or other obligations and restrict our access to
international financing.

In addition, if the Peruvian government were to institute restrictive exchange rate policies in the future, we might be obligated to seek an authorization from the Peruvian
government to make payments on the notes and the guarantees. We cannot assure you that such an authorization would be obtained. Any such exchange rate restrictions or the failure to
obtain such an authorization could materially and adversely affect our ability to make payments under our U.S. dollar-denominated debt and to pay dividends on our ADRs.

Increased rates of inflation in Peru could have an adverse effect on the Peruvian long-term credit market, as well as the Peruvian economy generally and, therefore, on our
business, financial condition and results of operations.

In the past, Peru has suffered through periods of high and hyper-inflation, which has materially undermined the Peruvian economy and the government’s ability to create
conditions that support economic growth. In response to increased inflation, the BCRP, which sets the Peruvian basic interest rate, may increase or decrease the basic interest rate in an
attempt to control inflation or foster economic growth. Increases in the base interest rate could adversely affect our results of operations, increasing the cost of certain funding.
Additionally, a return to a high-inflation environment would also undermine Peru’s foreign competitiveness, with negative effects on the level of economic activity and employment,
while increasing our operating costs and adversely impacting our operating margins if we are unable to pass the increased costs on to our customers. During 2021, inflation reached
6.2%, well above the previous five-year average of 2.32%. Supply shocks, including the recent rise in prices of energy, increased freight costs, and the increase in domestic demand
explains this increase at a global level. The recent conflict between Russia and Ukraine is likely to exacerbate these effects.

Changes in tax laws or their interpretation may increase our tax burden and, as a result, negatively affect our business.

The Peruvian Congress and government regularly implement changes to tax laws that may increase our tax burden, or the tax burden of our subsidiaries. These changes may
include modifications in our taxable base, tax rates and, on occasion, the enactment of temporary taxes that in some cases have become permanent taxes or changes to VAT exemptions
applicable to certain of our operations in the Amazonian region. We are unable to estimate the outcomes that these changes may have on business. In that sense, the Peruvian
government recently introduced several changes related to transfer pricing rules and formal obligations in order to comply with BEPS (base erosion and profit shifting) Guidelines on
transactions performed between related parties or with the intervention of low or no-tax jurisdictions, such as the obligation to file new local-files, master-files and country-by-country
reports with the Peruvian tax authority, and to adjust taxable bases accordingly for income tax purposes.

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 The effects of any tax reforms that could be proposed in the future and any other changes that result from the enactment of additional reforms have not been, and cannot be,
quantified. However, any changes to our tax regime or interpretations thereof (including in connection with the tax rates, tax base (base imponible), deductions rules, payments in
advance regime (regimen de pagos a cuenta), time of payment or the establishment of new taxes thereof) may result in increases in our overall costs and/or our overall compliance costs,
which could negatively affect our results of operation.

Our operations could be adversely affected by an earthquake, flood or other natural disasters.

Severe weather conditions and other natural disasters in areas in which we operate may materially adversely affect our operations. Peru is located in an area that experiences
seismic activity and occasionally is affected by earthquakes. For example, in 2007, an earthquake with a magnitude of 7.9 on the Richter scale struck the central coast of Peru, severely
damaging the region south of Lima. Peru is also affected by El Niño, an oceanic and atmospheric phenomenon that causes a warming of temperatures in the Pacific Ocean, resulting in
heavy rains off the coast of Peru and various other effects in other parts of the world. The effects of El Niño, which typically occurs every two to seven years, include flooding and the
destruction of fish populations and agriculture, and accordingly have a negative impact on Peru’s economy. For example, in early 2017, El Niño adversely affected agricultural
production, transportation and communications services, tourism and commercial activity, caused widespread damage to infrastructure and displaced significant populations. Although
our facilities were not significantly affected, our ability to ship cement was compromised by the destruction of infrastructure. Any of the foregoing conditions, or other natural disasters
or weather conditions, may result in physical damage to our properties, closure of one or more of our production facilities, inadequate work force in our operations, temporary
disruptions in the ability to ship cement, among others. Any of these factors may disrupt and materially adversely affect our business, financial condition and results of operations.

Our operations could be adversely affected by government-mandated plant closures

Public health outbreaks, epidemics or pandemics, as well as other events may result in the government stopping our operations. In March 2020, the Peruvian government
ordered a state of emergency due to the outbreak of COVID-19, therefore our operations were closed from March 16, 2020 until May 18, 2020. This had a materially adverse effect on
our business, financial condition and results of operation, mainly during the state of emergency. Although our dispatches recovered well following the lockdown, we do not yet know if
the government will take further measure that may have an impact on the economy as a whole, the construction sector, our customers’ ability to purchase cement and cement-based
products, and their ability to pay for previously sold products.

The Peruvian economy could be adversely affected by economic developments in regional or global markets.

Financial and securities markets in Peru are influenced by economic and market conditions in regional and global markets. Although economic conditions vary from country to
country, investors’ perceptions of the events occurring in one country may adversely affect cash flows and securities from issuers in other countries, including Peru. For example, the
Peruvian economy was adversely affected by the political and economic events that occurred in several emerging economies in the 1990s, including in Mexico in 1994, which impacted
the fair value of securities issued by companies from markets throughout Latin America. The crisis in the Asian markets beginning in 1997 also negatively affected markets throughout
Latin America. Similar adverse consequences resulted from the economic crisis in Russia in 1998, the Brazilian devaluation in 1999 and the Argentine crisis in 2001. In addition, Peru’s
economy continues to be affected by events in the economies of its major regional partners and in developed economies that are trading partners or that affect the global economy.

The 2008 and 2009 global economic and financial crisis substantially affected the financial system, including Peru’s securities market and economy. Additionally, the debt
crisis in Europe that began with financial crises in Greece, Spain, Italy and Portugal, reduced the confidence of foreign investors, caused volatility in the securities markets and affected
the ability of companies to obtain financing globally. Doubts about the pace of global growth, particularly in the United States, contributed to already weak international growth in 2011,
2012 and 2013. Brexit continues to create volatility and uncertainty in a number of financial markets. The global COVID-19 pandemic has resulted in a worldwide recession that we
cannot yet accurately measure as it is ongoing. Any interruption to the recovery of developed economies, the continued effects of the global crisis in 2008 and 2009, a worsening or
resurgence of the debt crisis in Europe, impacts due to Brexit, the economic impact of COVID-19, or a new economic and/or financial crisis, or a combination of the above, could affect
the Peruvian economy, and consequently, materially adversely affect our business. In particular, the Peruvian economy recently has suffered the effects of fluctuating commodity prices
in the international markets, a decrease in export volumes, a decrease in foreign direct investment inflows and, as a result, a decline in foreign reserves and an increase in its current
account deficit. To date, the United States and China are facing a trade dispute, which has imposed new tariffs that could undermine economic growth and raise costs for manufacturers
around the world. Further, the current global COVID-19 pandemic caused a global recession in 2020, that has in turn affected our business, financial condition and results of operation.
See “—Global Risks.”

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 Additionally, adverse developments in regional or global markets or an increase in the perceived risks associated with investing in emerging markets in the future could
adversely affect the Peruvian economy and, as a result, adversely affect our business, financial condition and results of operations. In March 2020, after its annual review, the FTSE
announced that, since there is only one Peruvian stock in the FTSE Global All Cap index, it does not meet the requirements of the new minimum investable market cap and securities
count requirement criterion. As a result, Peru was reclassified from Secondary Emerging to Frontier market status as of September 2020.

During 2021, with the advance of vaccination at the global level and the contained impact of the COVID-19 pandemic, despite new variants, we have seen a recovery in global
growth levels. Nonetheless, this recovery has weakened due to, among others, the increase in energy prices, general supply shortages, and the increase of COVID-19 cases due to new
variants, such as Delta and Omicron.

A decline in the prices of certain commodities in the international markets could have a material adverse effect on our financial condition and results of operations.

In 2021, traditional exports, in particular mineral products, fishing products, agricultural products and petroleum and its derivatives, represented 73.6% of Peru’s total exports,
according to the figures published by the BCRP. Changes in commodity prices in the international markets, may have an adverse impact on Peruvian government finances, which could
affect both investor confidence and the sustainability of government expenditure and social programs. Thus, a decline in commodity prices could, ultimately, affect the political
environment in Peru, especially as regional and local governments are particularly reliant on tax revenue from mining concerns. By potentially affecting private sector demand and
investor confidence, lower commodity prices could also affect the retail sector, leading to, for example, a decline in purchasing power and consumer spending.

Corruption and ongoing high-profile corruption investigations may hinder the growth of the Peruvian economy and have a negative impact on our business and
operations.

Peruvian authorities are currently conducting several high-profile corruption investigations relating to the activities of certain companies in the construction and infrastructure
sectors, which have resulted in suspension or delay of important infrastructure projects that were otherwise operational and permitted. The overall delay relating to such projects has
resulted in a drop in GDP growth and overall infrastructure investment.

In July 2017, former President Ollanta Humala and his wife were detained in connection with a corruption probe and in February 2018, a Peruvian judge submitted a request to
extradite former president Alejandro Toledo on allegations of bribery, both in connection with Brazilian construction company Odebrecht S.A. Several high-profile politicians are
subject to corruption investigations. Corruption and corruption investigations could directly affect the Peruvian government, divert resources that would otherwise be focused on
developing the economy, create political instability, and result in slower or negative economic growth, such as has recently happened in Brazil. In turn, this could impact our ability to
successfully implement our growth and expansion strategies.

On March 21, 2018, President Kuczynski announced his decision to resign his office as president, due to allegations of corruption he faced. On March 23, 2018, Congress
accepted his resignation and his first vice president, Martín Vizcarra, was sworn in as acting president. On April 2, 2018, President Vizcarra appointed the members of his cabinet.

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 In July 2018, a set of secretly recorded phone conversations involving high-court officials in Peru revealed widespread corruption in the judicial system’s top ranks. In February
2019, preventive prison was ordered of four of the implicated judges while the investigations continue.

In April 2019, two former presidents were placed in preliminary detention due to their alleged ties to corruption: Pedro Pablo Kuczynski, who is currently detained, and Alan
Garcia, who took his own life when police came to place him under arrest.

During 2020, Peru experienced a new change of President, after Congress voted to impeach Martín Vizcarra on November 10. As there was no Vice-President, Manuel Merino,
the President of Congress assumed the Presidency in the midst of protests against the legitimacy of his Government, and had to resign five days later. On November 16, 2020, Francisco
Sagasti was elected President of Congress and, due to constitutional succession after Mr. Merino’s resignation, President of Peru. On July 28, 2021, Pedro Castillo became President of
Peru, after a disputed election results. During the first six months of President Pedro Castillo’s administration, he, members of his government, and people around him have been
confronted with a series of complaints and accusations of corruption. Some of these cases are under investigation and others, specifically against the President, have been suspended until
the end of his mandate.

Although recent history has shown that the macroeconomic stability of the country remains unaffected by political turmoil, we cannot yet assess the political and economic
impact these developments may have on the political stability of the country. See “—Economic, social and political developments in Peru including political instability, rates of inflation
and unemployment could have a material adverse effect on our business, financial condition and results of operations.”

Risks Relating to our Business and Industry

We are subject to the possible entry of domestic or international competitors into our market, which could decrease our market share and profitability.

The cement market in Peru is competitive and is currently served mainly by three main groups, which together supply most of the cement consumed in the country, although
there are two more smaller producers and some imports. In the cement industry, the location of a production plant tends to limit the market a plant can serve because transportation costs
are high, reducing profit margins. Historically, we have supplied the northern region of Peru while two other groups have supplied the central (which includes the Lima metropolitan
area) and southern regions of Peru, driven principally by the location of production facilities and distribution focus. However, competition could intensify if other manufacturers decide
to enter our market.

We may face increased competition if the other Peruvian cement manufacturers, despite incremental freight costs, expand their distribution of cement to the northern region of
Peru, or if they develop a cement plant in the north, particularly if the cement markets in Lima or other areas of Peru become saturated. In the past, some foreign cement manufacturers
have announced plans to build cement plants in the central region of the country. If competition intensifies in the central region of Peru due to the presence of foreign cement
manufacturers or otherwise, it may have price repercussions in our market.

We also face the possibility of competition from the entry into our market of imported clinker for grinding facilities, cement or other materials or products from foreign
manufacturers, which may have significantly greater financial resources than us, particularly as production capacity continues to exceed depressed demand in other parts of the world
and transportation costs decrease.

We may not be able to maintain our market share if we cannot match our competitors’ prices or keep pace with the development of new products. If any of these events were to
occur, our business, financial condition and results of operations could be adversely affected.

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 Demand for our cement products is highly related to housing construction in northern Peru, which, in turn, is affected by economic conditions in the region.

Cement consumption is highly related to construction levels. Demand for our cement products depends, in large part, on residential construction in the north of Peru, which
consists mostly of low-income families gradually building or improving their own homes without technical assistance, which we refer to as auto-construcción. We estimate that in 2021,
auto-construcción accounted for approximately 70.3% of our cement sales, which proved to be the most resilient sector during the economic crisis generated during 2020 by the
COVID-19 pandemic. Residential construction, in turn, is highly correlated to prevailing economic conditions in Peru. A decline in economic conditions would reduce household
disposable income and cause a significant reduction in residential construction, leading to a decrease in demand for cement. As a result, a deterioration of economic conditions in the
northern region of Peru would have a material adverse effect on our financial performance and results of operations. We cannot assure you that growth in Peru’s GDP, or the
contribution to GDP growth attributable to the northern region of the country, will continue at the recent pace or at all. Despite political uncertainty, cement sales have continued to be
strong during 2021. However, we cannot assure you that strong sales will remain during 2022 and beyond, as the economy continues to be affected by external factors such as
inflationary pressure, and political uncertainty continues.

A reduction in private or public construction projects in the northern region of Peru would have a material adverse effect on our business, financial condition and results
of operations.

We estimate that in 2021, approximately 15.0% of our cement sales were derived from private construction (other than auto-construcción) and 14.7% from public construction
in the north of Peru. Significant interruptions or delays in, or the termination of, private or public construction projects may adversely affect our business, financial condition and results
of operations. Private and public construction levels in our market depend on investments in the region which, in turn, are affected by economic conditions.

The level of public infrastructure construction also depends, to a great extent, on the priorities and financial resources of the national, regional and local governmental
authorities. Although the anticipated increase in Peru’s large infrastructure projects has been delayed, this remains an important growth driver for the country and also a necessity due to
Peru’s significant infrastructure deficit. In the North, significant spending will be directed towards reconstruction works to address the damage caused by Coastal El Niño, based on
Peru’s “Reconstruction with Changes” Plan. This Plan has an approved budget of S/25.7 billion (US$7.6 billion). In June 2020, the Peruvian government signed an agreement with the
government of the United Kingdom, for the execution of a package of S/7 billion to be executed during 2020 and 2021. Through the agreement, the United Kingdom will provide the
structure, strategy and governance processes necessary for the timely delivery of all works, promoting efficiency and avoiding corruption. This model has already been used successfully
for the construction of the necessary infrastructure for the Lima 2019 Pan American Games, therefore favorable results are expected this time as well. Although execution has been
slower than expected, the continuation of this project will continue to boost our sales. However, we cannot assure that public spending for construction projects will continue in the
upcoming years. A reduction in public infrastructure spending in our market would adversely affect our business, financial condition and results of operations.

Our business, financial condition and results of operations may be adversely affected by increases in energy prices or shortages in the supply of energy.

Energy accounts for a significant percentage of our production costs. Our principal energy sources are coal, gas and electricity. In 2021, the cost of energy represented
approximately 25.3% of our cement production costs, compared to 28.8% in 2020 and 31.4% in 2019. We use a substantial amount of coal as a source of fuel in our production process.
Most of the coal we use is anthracite coal which we purchase from domestic suppliers and import a small amount of bituminous coal from suppliers primarily in Colombia, in each case,
at market prices. We do not have long-term coal supply agreements, and we do not engage in hedging transactions in connection with the price of coal. Any shortage or interruption in
the supply of coal could also disrupt our operations. In addition, the price of coal is largely driven by the price of oil, and, as a result, increases in international oil prices are likely to
affect the price of coal and adversely affect our results of operations. The current increase in both coal and oil prices because of the conflict between Russia and Ukraine will have a
negative effect on our margins and hence on our results of operations.

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 We have a long-term electricity supply agreement with Electroperú S.A. (“Electroperú”), a government-owned company, to serve the electricity requirements of our Pacasmayo
and Piura facilities until 2026. We have also entered into a supply agreement with Electro Oriente S.A. (“ELOR”) to supply the Rioja facility until November 2022. Our business,
financial condition and results of operations could be materially and adversely affected by higher costs, interruptions, and unavailability or shortage of electricity. We have no back-up
power system at our plants and cannot assure you that, in case of interruption or failure in Electroperú’s or ELOR’s operations, we will have access to other energy sources at the same
prices and conditions, which could adversely affect our business, financial condition and results of operations. Moreover, electricity to our plants is transmitted through the Peruvian
Electricity Interconnection System (Sistema Eléctrico Interconectado Nacional del Perú, or “SEIN”). Any interruptions or failures in SEIN’s system would also have a material adverse
effect on our business, financial condition and results of operations.

In the recent past, we have experienced electricity rationing, limiting our use of electricity to certain times of the day. In such cases, we were forced to readjust our production
schedules in order to ensure that our production process was not interrupted. In the event of any future rationing of electricity, we may not be able to readjust quickly enough and our
production process may be interrupted. Future shortages or efforts to respond to or prevent shortages, such as rationing, may adversely impact the cost or supply of electricity for our
operations.

A significant increase in the prices of coal, gas or electricity would increase our costs of production. We may not be able to increase the prices of our cement products in the
future if the prices of coal, gas or electricity rises, which would adversely affect our business, financial condition and results of operations

Changes in the cost or availability of admixtures and raw materials supplied by third parties may adversely affect our business, financial condition and results of
operations.

We use certain admixtures and raw materials in the production of cement, such as gypsum, blast furnace slag and iron that we obtain from third parties. In 2021, our cost of
admixtures and raw materials supplied by third parties as a percentage of our cement production costs was approximately 4.3%, similar to 2020. Moreover, during 2021, we had to use
imported clinker, to satisfy the sharp and sudden increase in cement demand, and the cost of this imported clinker as a percentage of our cement production costs was approximately
21.5%, compared to 10.1% in 2020. We do not have long-term contracts for the supply of admixtures or raw materials that we use and if existing suppliers cease operations or reduce or
eliminate production of these products, our costs to procure these materials may increase significantly or we may be obligated to procure alternatives to replace these products. Current
increases in import prices, mainly due to freight increases, have affected the price of our admixtures. We have tried to replace, when possible, imported admixtures with local ones to
decrease the effect on our cost of production. We are also currently investing to optimize the current capacity at our Pacasmayo plant, in order to produce an additional estimated
600,000 metric tons of clinker per year, in order to reduce our clinker imports. We expect to finish this optimization by the second half of 2023. However, we cannot assure that we will
be continue to be able to replace imported admixtures or optimize the current capacity at our Pacasmayo plant in the timing expected or at all.

We may undertake future acquisitions that may not achieve expected benefits.

Our strategic initiatives include pursuing acquisitions that tend to diversify our existing portfolio of products and services and expand our geographic footprint. In the future, we
may decide to expand by acquiring other companies in Peru or abroad. Any future acquisitions will depend on our ability to identify suitable candidates, negotiate acceptable terms, and
obtain financing for the acquisitions. If future acquisitions are significant, they could change the scale of our business and expose us to new geographic, political, operating and financial
risks. In addition, each acquisition involves a number of risks, such as the diversion of our management’s attention from our existing business to integrating the operations and personnel
of the acquired business, possible adverse effects on our results of operations during the integration process, our inability to achieve the intended objectives of the combination and
potential unknown liabilities associated with the acquired assets.

We may not be able to obtain the funding required to implement future strategies.

Our strategies to continue to expand our cement production capacity and distribution network require significant capital expenditures. We cannot assure you that we will
generate sufficient cash flow from operations, or that we will have access to external financing sources, to adequately fund such capital expenditures. Our access to external sources of
financing will depend on many factors, including factors beyond our control, such as conditions in the global capital markets and investors’ risk perception of investing in Peru and in
emerging markets generally. Any equity or debt financing, if available, may not be on terms that are favorable to us. If our access to external financing is limited, we may not be able to
execute our strategy, which could adversely affect our business, financial condition and results of operations.

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 In addition, the indenture pursuant to which we issued our 4.50% Senior Notes due 2023, as well as our local bonds due 2029 and 2034, and the “club deal” loan we entered
into in 2021, contain covenants that limit our ability and that of our restricted subsidiaries to incur additional indebtedness if we do not meet certain financial ratios. If we are unable to
incur additional debt to fund our future strategies, our business could be adversely affected.

We are subject to risks related to litigation and administrative proceedings that could adversely affect our business and financial performance in the event of an
unfavorable ruling.

The nature of our business exposes us to litigation relating to product liability claims, labor, health and safety matters, environmental matters, regulatory, tax and administrative
proceedings, governmental investigations, tort claims and contract disputes, among other matters. In the past, we have been subject to antitrust and tax proceedings or investigations.
While we contest these matters vigorously and make insurance claims when appropriate, litigation is inherently costly and unpredictable, making it difficult to accurately estimate the
outcome of actual or potential litigation. Although we establish provisions as we deem necessary, the amounts that we reserve could vary significantly from any amounts we actually pay
due to the inherent uncertainties in the estimation process. We cannot assure you that these or other legal proceedings will not materially affect our ability to conduct our business,
financial condition and results of operations in the event of an unfavorable ruling.

Our business is subject to a number of operational risks, which may adversely affect our business, financial condition and results of operations.

Our business is subject to several industry-specific operational risks, including accidents, natural disasters, labor disputes and equipment failures. Such occurrences could result
in damage to our production facilities and equipment, and/or the injury or death of our employees and others involved in our production process. Moreover, such accidents or failures
could lead to environmental damage, loss of resources or intermediate goods, delays or the interruption of production activities and monetary losses, as well as damage to our reputation.
Our insurance may not be sufficient to cover losses from these events, which could adversely affect our business, financial condition and results of operations.

In addition, key equipment at our facilities, such as our mills and kilns, may deteriorate sooner than we currently estimate. Such deterioration of our assets may result in
additional maintenance or capital expenditures, and could cause delays or the interruption of our production activities. If these assets do not generate the cash flows we expect, and we
are not able to procure replacement assets in an economically feasible manner, our business, financial condition and results of operations may be materially and adversely affected.

Our business depends on the continued operation of our Pacasmayo and Piura facilities.

Our production facilities in Pacasmayo and Piura are essential to our business. In 2021, approximately 90.7% of our total cement and all of our quicklime was produced at our
Pacasmayo and Piura facilities. These plants are subject to normal hazards of operating any cement production facility, including accidents, natural disasters and unexpected
malfunctioning of the equipment. Any interruption in our operation of our Pacasmayo or Piura facilities or a decrease in the effective capacity of these facilities would adversely affect
our results of operations. In 2020, the production and commercialization of cement was shut down for over two months, as a consequence of the state of emergency declared to prevent
the spread of COVID-19. This halt in production and commercialization for over two months had an adverse effect on our business, financial condition and results of operations, which
we were able to partially offset during the second half of the year due to strong demand. However, we cannot assure you that demand will continue to be strong during 2022, or that there
will not be further shutdowns or closures of significant parts of the economy as a result of the COVID-19 pandemic.

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 The introduction of cement substitutes into the market and the development of new construction techniques could have a material adverse effect on our business, financial
condition and results of operations.

Materials such as plastic, aluminum, ceramics, glass, wood and steel can be used in construction as a substitute for cement. In addition, other construction techniques, such as
the use of drywall, could decrease the demand for cement and concrete. In Peru, drywall has only been introduced into the housing construction market in recent years and it is not
widely used. However, the use of drywall for housing construction could increase significantly in the future as it becomes more popular. In addition, research aimed at developing new
construction techniques and modern materials may introduce new products in the future. The use of substitutes for cement could cause a significant reduction in the demand and prices
for our cement products.

Our success depends on key members of our management.

Our success depends largely on the efforts and strategic vision of our executive management team and board of directors. The loss of the services of some or all of our executive
management team or members of our board of directors could have a material adverse effect on our business, financial condition and results of operations.

The execution of our business plan also depends on our ongoing ability to attract and retain additional qualified employees capable of operating our plants. Due to the limited
pool of skilled workers in the north of Peru or workers from other regions willing to relocate to the north of Peru, we may not be successful in attracting and retaining the personnel we
require. If we are unable to hire, train and retain qualified employees at a reasonable cost, we may be unable to successfully operate our business or reach full planned production levels
in a timely manner and, as a result, our business, financial condition and results of operations could be adversely affected.

Our operations and sales are highly concentrated in the northern region of Peru.

All of our operations are located in the northern region of Peru, including our production facilities and the quarries from where we obtain limestone to produce cement. In
addition, substantially all of our cement products are sold to consumers in this market. As a result, any adverse economic, political or social conditions affecting the northern region of
Peru, as well as natural disasters and weather conditions, such as the El Niño climate pattern, among other factors that may affect this region, could have a material adverse effect on our
business, financial condition and results of operations. In 2017, the north of Peru experienced severe rain, landslides and flooding, which affected the demand for cement, and the ability
to ship it, as well as the provision of raw materials since some roads were destroyed. Our plants did not suffer any significant damage as we halted operations to mitigate physical
damage.

We are subject to environmental regulations and may be exposed to liability and political cost as a result of our handling of hazardous materials and potential costs for
environmental compliance.

We are subject to various environmental protection and health and safety laws and regulations that regulate, among other things, the generation, storage, handling, use and
transportation of hazardous materials; emissions and discharge of hazardous materials; and the health and safety of our employees. Pursuant to Peruvian law, in order to conduct mining
and industrial activities, we are required, among other things, to (i) submit an environmental impact assessment to the Ministry of Production (Ministerio de la Producción) and a mining
closure plan to the Ministry of Energy and Mines (Ministerio de Energía y Minas, or “MINEM”) prior to initiating mining activities, (ii) comply with certain air emission and
wastewater discharge standards, (iii) obtain approval from the water management authority to discharge wastewater into natural water sources or soil, (iv) dispose solid waste generated
by us in special landfills exclusively through companies registered with the environmental agency, and (v) store fuel in compliance with environmental and safety standards. In addition,
we are required to have a health and safety committee and develop an internal health and safety code. Although we believe we are in compliance with all these regulations in all material
respects, we cannot assure you that we have been or will be at all times in full compliance with these laws and regulations. Any violation of such laws or regulations could result in
substantial fines, criminal sanctions, revocations of operating permits and shutdowns of our facilities. In addition, current or future governments may also impose stricter regulations
which may require us to incur higher compliance costs.

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 Pursuant to certain applicable environmental laws, we could be held liable for all or substantially all of the damages caused by pollution at our current or former facilities or
those of our predecessors or at disposal sites. We could also be held liable for all incidental damages due to the health effects of exposure of individuals to hazardous substances or other
environmental damage.

We cannot assure you that our costs of complying with current and future environmental and health and safety laws and regulations, and any liabilities arising from past or
future releases of, or exposure to, hazardous substances will not adversely affect our business, financial condition and results of operations.

Social unrest by local communities may have an adverse effect on our business and results of operation

In recent years, Peru has experienced protests against mining projects in several regions around the country. Mining is an important part of the Peruvian economy, with mining
and oil and gas as of December 31, 2021, accounted for approximately 12.3% of the country’s GDP according to the BCRP. On several occasions, local communities have opposed these
operations and accused them of polluting the environment and hurting agricultural and other traditional economic activities. Since 2019, there have been on-and-off conflicts in Las
Bambas between local communities and China Minmetals Corp, resulting in road blockages and halt in operations repeatedly throughout this period, and is still ongoing. We conduct
some extraction activities in our quarries and operate in areas close to local communities. Although we have always had very good relationship with our communities, we cannot assure
this will continue to be the case in the future. During 2021 and the first months of 2022, there have been social demands by different groups such as agriculture, transportation, mining,
which have temporarily caused instability. Further social demands and conflicts may have an effect on the Peruvian economy, and on our business and results of operation.

International agreements related to climate change may result in an increase in our costs.

There are ongoing international efforts to address greenhouse emissions. The United Nations and certain international organizations have taken action against activities that may
increase the atmospheric concentration of greenhouse gases. Regulatory measures, such as the Kyoto Protocol, aimed at addressing greenhouse gas emissions and climate changes, are in
various stages of negotiation and implementation. Such measures may result in increased costs to us for installation of new controls aimed at reducing greenhouse gas emissions,
purchase of credits or licenses for atmospheric emissions, and monitoring and registration of greenhouse gas emissions from our operations. These measures, if adopted in Peru, could
adversely affect our business, financial condition and results of operations.

Changes in regulations or in the interpretation of regulations may adversely affect our business, financial condition and results of operations.

Our business is subject to extensive regulation in Peru, including, among others, relating to tax, environmental, labor, health and safety, and mining matters. We believe that our
facilities are currently operating in all material respects in accordance with all applicable concessions, laws and regulations. Future regulatory changes, changes in the interpretation of
such regulations or stricter enforcement of such regulations, including changes to our concession agreements, may increase our compliance costs and could potentially require us to alter
our operations. We cannot assure you that regulatory changes in the future will not adversely affect our business, financial condition and results of operations.

Any dispute with the labor unions that represent our employees could have an adverse effect on our business, financial condition and results of operations.

As of December 31, 2021, 19.7% approximately of our employees were members of employee unions. Although we consider our relations with our employees are currently
positive, we cannot assure you that we will not experience work slowdowns, work stoppages, strikes or other labor disputes in the future, which could adversely affect our business,
financial condition and results of operations.

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 New projects may require the prior approval of local indigenous communities.

On September 7, 2011, Peru enacted Law No. 29785, regarding the Prior Consultation Right of Local Indigenous Communities, in accordance with the International Labor
Organization Convention No. 169 (Ley del Derecho a la Consulta Previa a los Pueblos Indígenas y Originarios, Reconocido en el Convenio 169 de la Organización Internacional del
Trabajo). This law, which became effective on December 6, 2011, establishes a prior consultation procedure (procedimiento de consulta previa) that the Peruvian government must
carry out with local indigenous communities, whose rights may be directly affected by new legislative or administrative measures, including the granting of new mining concessions.
Local indigenous communities do not have a veto right; upon completion of this prior consultation procedure, the Peruvian government retains the discretion to approve or reject the
applicable legislative or administrative measure. However, to the extent that in the future our new projects may require implementation of legislative or administrative measures that
impact local indigenous communities, we may not be able to undertake such projects, unless the Peruvian government first conducts the foregoing consultation procedure. We cannot
assure you that this law will not adversely affect our new projects and have an adverse effect on our business, financial condition and results of operations.

The instruments pursuant to which our principal indebtedness was issued contain financial and other covenants, and any default under any of these instruments may have
a material adverse effect on our financial condition and cash flows.

The indenture pursuant to which we issued our 4.50% Senior Notes due 2023 contains restrictions and covenants, including restrictions on our and our guarantor subsidiaries’
ability to incur further indebtedness or issue disqualified stock and preferred stock, unless certain conditions are met.

Additionally, in January 2019, two issuances were completed under a local bond program in a total principal amount of S/570 million: One in the aggregate principal amount of
S/260 million bearing interest a rate of 6.68750% with a term of 10 years, and another in an aggregate principal amount of S/310 million bearing interest at a rate of 6.84375% with a
term of 15 years. These issuances contain the same restrictions and covenants as our Senior Notes due 2023. And, in 2021, we entered into a “club deal” loan, which also contains
restrictive covenants, as well as financial covenants requiring us to meet certain financial ratios tests. Failure to meet or satisfy any of these covenants could result in an event of default
under the indenture, the agreements governing our local bonds or our “club deal” loan.

Risks Relating to our Common Shares and ADSs

The market price of our ADSs may fluctuate significantly, and you could lose all or part of your investment.

Volatility in the market price of our ADSs may prevent you from being able to sell your ADSs at or above the price you paid for them. The market price and liquidity of the
market for our ADSs may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These
factors include, among others:

● actual or anticipated changes in our results of operations, or failure to meet expectations of financial market analysts and investors;

● investor perceptions of our prospects or our industry;

● operating performance of companies comparable to us and increased competition in our industry;

● new laws or regulations or new interpretations of laws and regulations applicable to our business;

● general economic trends in Peru;

● catastrophic events, such as earthquakes and other natural disasters; and

● developments and perceptions of risks in Peru and in other countries.

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 Our controlling shareholder has significant influence over us and his interests could conflict with the interests of other shareholders.

As of March 31, 2022, our controlling shareholder beneficially owned 50.01% of our outstanding common shares. As a result, our controlling shareholder has the ability to
determine the outcome of substantially all matters submitted for a vote to our shareholders and thus exercise control over our business policies and affairs, including, among others, the
following:

● the composition of our board of directors and, consequently, any determinations of our board with respect to our business direction and policy, including the appointment
and removal of our executive officers;

● determinations with respect to mergers, other business combinations and other transactions, including those that may result in a change of control;

● whether dividends are paid or other distributions are made and the amount of any such dividends or distributions;

● whether we offer preemptive and accretion rights to holders of our common shares in the event of a capital increase;

● sales and dispositions of our assets; and

● the amount of debt financing we incur.

Our controlling shareholder may direct us to take actions that could be contrary to the interests of our other shareholders and may be able to prevent other shareholders from
blocking these actions or from causing different actions to be taken. Also, our controlling shareholder may prevent change of control transactions that might otherwise provide the
shareholders with an opportunity to dispose of or realize a premium on their investment in our common shares and ADSs. We cannot assure you that our controlling shareholder will act
in a manner consistent with our other shareholders’ best interests.

Holders of ADSs may be unable to exercise voting rights with respect to our common shares underlying the ADSs at our shareholders’ meetings.

Holders of ADSs may exercise voting rights with respect to the common shares represented by the ADSs only in accordance with the deposit agreement relating to the ADSs.
Holders of our common shares will receive notice of shareholders’ meetings through publication of a notice 25 days in advance, pursuant to Peruvian law, in the official gazette in Peru,
a Peruvian newspaper of general circulation, the bulletin of the Lima Stock Exchange and the website of the Superintendencia del Mercado de Valores (the “Peruvian Securities
Commission”), and will be able to exercise their voting rights by either attending the meeting in person or voting by proxy. ADS holders will not receive notice directly from us. Instead,
pursuant to the deposit agreement, we will notify the depositary, which will mail to holders of ADSs the notice of the meeting and a statement as to the manner in which voting
instructions may be given. To exercise their voting rights, ADS holders must instruct the depositary how to exercise the voting rights for the common shares which underlie their ADSs.
Due to these additional procedural steps involving the depositary, the process for exercising voting rights may take longer for ADS holders than for holders of our common shares.

Holders of ADSs also may not receive voting materials in time to instruct the depositary to vote the common shares underlying their ADSs. In addition, the depositary and its
agents are not responsible for failing to carry out voting instructions of the holders of ADS or for the manner of carrying out such instructions, unless such failure can be attributable to
gross negligence, bad faith or willful misconduct on the part of the depositary or its agents. Accordingly, holders of ADSs may not be able to exercise voting rights, and they will have
little, if any, recourse if the underlying common shares are not voted as requested.

17
 The ability of holders of our ADSs to receive payments of cash dividends may be limited.

Our shareholders’ ability to receive cash dividends may be limited by the ability of the depositary to convert cash dividends paid in soles into U.S. dollars. Under the terms of
our deposit agreement with the depositary for the ADSs, the depositary will convert any cash dividend or other cash distribution we pay on the common shares underlying the ADSs into
U.S. dollars, if it can do so on a reasonable basis and can transfer the U.S. dollars to the United States. If this conversion is not possible or if any government approval is needed and
cannot be obtained, the deposit agreement allows the depositary to distribute the foreign currency only to those ADS holders to whom it is possible to do so. If the exchange rate
fluctuates significantly during a time when the depositary cannot convert the foreign currency, holders of ADSs may lose some or all of the value of the dividend distribution.

Holders of ADSs may be unable to exercise pre-emptive or accretion rights with respect to the common shares underlying their ADSs.

Under Peruvian corporate law, if we issue new common shares as part of a capital increase, unless otherwise agreed to by holders of 40% of our outstanding common shares,
our shareholders will generally have the right to subscribe to a proportional number of common shares of the class held by them to maintain their existing ownership percentage, which
is known as preemptive rights. In addition, shareholders are entitled to the right to subscribe for the unsubscribed common shares of either the class held by them or other classes which
remain unsubscribed at the end of a preemptive rights offering, on a pro rata basis, which is known as accretion rights. Holders of ADSs may not be able to exercise the preemptive or
accretion rights relating to common shares underlying the ADSs unless a registration statement under the U.S. Securities Act of 1933, as amended (the “Securities Act”), is effective with
respect to those rights or an exemption from the registration requirements of the Securities Act is available. We are not obligated to file a registration statement with respect to the
common shares relating to these preemptive and accretion rights and we cannot assure you that we will file any such registration statement. Unless we file a registration statement or an
exemption from registration is available, holders of ADSs may receive only the net proceeds from the sale of their preemptive and accretion rights by the depositary or, if the preemptive
and accretion rights cannot be sold, they will be allowed to lapse. As a result, U.S. holders of our ADSs may suffer dilution of their interest in our company upon future capital increases.

We are entitled to amend the deposit agreement under which our ADSs were issued, and to change the rights of ADS holders under the terms of such agreement, without
the prior consent of the ADS holders.

We are entitled to amend the deposit agreement and to change the rights of the ADS holders under the terms of such agreement, without the prior consent of the ADS holders.
Any change related to an increase in deposits or charges for book-entry securities services or any modification that might hinder the rights of the ADS holders will be effective within 30
days after the ADS holders have received notice of such change or modification and such holders will have no right to any compensation whatsoever.

Our status as a foreign private issuer allows us to follow alternate standards to the corporate governance standards of the New York Stock Exchange, which may limit the
protections afforded to investors.

We are a “foreign private issuer” within the meaning of the New York Stock Exchange corporate governance standards. Under New York Stock Exchange rules, a foreign
private issuer may elect to comply with the practices of its home country and not to comply with certain corporate governance requirements applicable to U.S. companies with securities
listed on the exchange. We currently follow certain Peruvian practices concerning corporate governance and intend to continue to do so. Accordingly, holders of our ADSs will not have
the same protections afforded to shareholders of companies that are subject to all New York Stock Exchange corporate governance requirements.

For example, the New York Stock Exchange listing standards provide that the board of directors of a U.S. listed company must have a majority of independent directors at the
time the company ceases to be a “controlled company.” Under Peruvian corporate governance practices, a Peruvian company is not required to have a majority of independent members
on its board of directors.

The listing standards for the New York Stock Exchange also require that U.S. listed companies; at the time they cease to be “controlled companies,” have a
nominating/corporate governance committee and a compensation committee (in addition to an audit committee). Each of these committees must consist solely of independent directors
and must have a written charter that addresses certain matters specified in the listing standards. Under Peruvian law, a Peruvian company may, but is not required to, form special
governance committees, which may be composed partially or entirely of non-independent directors.

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 In addition, New York Stock Exchange rules require the independent non-executive directors of U.S. listed companies to meet on a regular basis without management being
present. There is no similar requirement under Peruvian law.

The New York Stock Exchange’s listing standards also require U.S. listed companies to adopt and disclose corporate governance guidelines. In November 2013, the Peruvian
Securities Commission and a committee comprised of regulatory agencies and associations prepared and published a list of suggested non-mandatory corporate governance guidelines
called the “Good Corporate Governance Code for Peruvian Companies.” Although we have implemented a number of these measures, we are not required to comply with the corporate
governance guidelines by law or regulation, only to disclose whether or not we are in compliance.

Minority shareholders in Peru are not afforded equivalent protections as minority shareholders in other jurisdictions and investors may face difficulties in commencing
judicial and arbitration proceedings against our company or the controlling shareholder.

Our company is organized and existing under the laws of Peru, and our controlling shareholder is resident in Peru. Accordingly, investors may face difficulties in serving
process on our company, our officers and directors or the controlling shareholder in other jurisdictions, and in enforcing decisions granted by courts located in other jurisdictions against
our company, our officers and directors or the controlling shareholder that are based on securities laws of jurisdictions other than Peru.

In Peru, there are no proceedings to file class action suits or shareholder derivative actions with respect to issues arising between minority shareholders and an issuer, its
controlling shareholders or directors and officers. Furthermore, the procedural requirements to file actions by shareholders differ from those of other jurisdictions, such as in the United
States. As a result, it may be more difficult for our minority shareholders to enforce their rights against us, our directors, officers or controlling shareholder as compared to the
shareholders of a U.S. company. The deposit agreement provides that the depositary has no obligation to commence or become involved in any judicial proceedings and any other legal
actions relating to the ADSs or the deposit agreement, either on behalf of the ADS holders or on behalf of any other person.

The ability of investors to enforce civil liabilities under U.S. securities laws may be limited.

Most of our directors or executive officers are not residents of the United States. All or a substantial portion of our assets and those of our directors and executive officers are
located outside of the United States. As a result, it may not be possible for investors in our securities to affect service of process within the United States upon such persons or to enforce
in U.S. courts or outside of the United States judgments obtained against such persons outside of the United States.

We are a company organized and existing under the laws of Peru, and there is no existing treaty between the United States and Peru for the reciprocal enforcement of foreign
judgments. It is not clear whether a Peruvian court would accept jurisdiction and impose civil liability if proceedings were commenced in a foreign jurisdiction predicated solely upon
U.S. federal securities laws.

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

Our History

Cementos Pacasmayo S.A.A. was incorporated in Lima, Peru in 1949, by a group of private investors that founded the company to serve the cement market in the northern
region of Peru. Cementos Pacasmayo began its operations in 1957 and is a publicly-held corporation (sociedad anónima abierta) organized under the laws of Peru. Our executive offices
are located at Calle La Colonia 150, Urbanización El Vivero, Surco, Lima, Peru. Our telephone number at this location is + (511) 317-6000. Our website address is
www.cementospacasmayo.com.pe. Information on or accessible through our website is not a part of, nor incorporated by reference in, this annual report.

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 Cementos Pacasmayo S.A.A. and Hochschild Mining plc together constitute the two businesses of the Hochschild Group, which has operated in Latin America for more than
100 years. Hochschild Mining plc is incorporated in the United Kingdom and its shares have been listed on the London Stock Exchange since 2006. Cementos Pacasmayo has been
listed on the Lima Stock Exchange since 1995. As of March 31, 2022, Eduardo Hochschild, directly and indirectly, owned and controlled 38.32% of the shares of Hochschild Mining
plc. Through Inversiones ASPI S.A. (“ASPI”), as of that same date, Eduardo Hochschild, directly and indirectly, owned and controlled 50.01% of the outstanding common shares of
Cementos Pacasmayo. S.A.A.

The Hochschild Group traces its origins to 1911, when Mauricio Hochschild, a German mining engineer, founded a group of companies in South America that came to be
known as the Hochschild Group. Following World War I, the Hochschild Group expanded into Bolivia where it developed significant interests in tin. The Hochschild Group commenced
operations in Peru in 1925 and in 1945 Luis Hochschild, the nephew of Mauricio Hochschild (and the father of Eduardo Hochschild), joined the Hochschild Group’s Peruvian
operations.

During the first decades of its operations, the Hochschild Group focused on the commercialization of minerals, although it later began operating its own mines and other
industrial companies. During World War II, the Hochschild Group was a key supplier of tin and other metals to the allied forces.

The Hochschild Group acquired its initial ownership interest in us in 1956. Set forth below are key developments in our company’s history.

● In 1957, we began our operations with the installation of our first clinker line with an installed production capacity of approximately 110,000 metric tons per year. In 1966
and 1977, we added a second and third clinker line, respectively, increasing our installed clinker production capacity to approximately 830,000 metric tons per year.

● In November 1984, the South American mining and industrial operations of the Hochschild Group were sold to the Anglo American Corporation of South Africa which, in
the same month, sold the Peruvian operations of the Hochschild Group, including its interest in Cementos Pacasmayo and predecessors of Hochschild Mining plc, to a
group of companies controlled by Luis Hochschild.

● In 1995, we launched our distribution network to commercialize and distribute our products throughout the northern region of Peru. In that same year, we also listed our
common shares for trading on the Lima Stock Exchange, currently under the ticker symbol “CPACASC1.”

● In 1998, we acquired from the Peruvian government our Rioja facility, located in the northeast of Peru. At the time, the Rioja facility had one clinker line with an installed
cement production capacity of approximately 35,000 metric tons per year.

● In 2003, we acquired Zemex Corporation, a U.S. company engaged in non-metallic mining and industrial activities in the United States and Canada, which we sold in 2007
in a series of transactions.

● In 2009, we created Fosfatos del Pacífico in order to explore phosphate rock deposits from our concession at Bayóvar in the north of Peru.

● In 2010, we reached an aggregate total installed cement production capacity of 3.1 million in our Pacasmayo and Rioja facilities and completed the conversion of our
Waelz kiln, retrofitting it to produce quicklime or calcine zinc interchangeably. That same year, we also sold our copper mining concessions in the central region of Peru
known as “Mina Raul,” which were previously leased to a third party, for US$28.0 million.

● In December 2011, we sold a minority equity interest in Fosfatos to an affiliate of Mitsubishi to develop our phosphate deposits in the Bayóvar fields, in the northwest of
Peru.

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● In March 2012, we completed our initial equity offering of 22,296,800 ADSs in the United States and listed our ADSs on the New York Stock Exchange.

● In February 2013, we issued US$300 million in our inaugural international bond offering. A portion of the proceeds from this offering were used to prepay amounts
outstanding on our secured loan agreement with BBVA Banco Continental, and the remaining proceeds were used to fund a portion of the capital expenditures related to
the construction and operation of our new Piura plant and our cement business.

● In September 2015, we began producing cement at our new plant in Piura. This was a very important milestone for us, since we have been investing in this project since
2012 and we have begun to reap the benefits of this investment.

● In January 2016, we began producing clinker at our new plant in Piura, finishing the start-up of the plant, adding one million metric tons of annual clinker production
capacity.

● In March 2017, Cementos Pacasmayo consummated the spin-off of Fostatos del Pacífico.

● In December 2017, our board of directors resolved to focus our strategy on our core business of developing cement and building solutions. In furtherance of this strategy,
we have focused on disposing our non-core investments. In the fourth quarter of 2017, we discontinued our brine project.

● In March 2018, Cementos Pacasmayo launched its new brand image and updated its vision: to further enhance our position as a leader in developing building solutions and
innovations that anticipate the needs of our clients and that contributes to the progress of our country.

● During 2018, Cementos Pacasmayo implemented the ISO 37001 anti-bribery management systems, obtaining certification in January 2019. This certification confirms that
our management systems are designed to help prevent, detect and respond to bribery and comply with anti-bribery laws and voluntary commitments applicable to its
activities. This certification and related initiatives reiterates our commitment to global anti-bribery best practices and high standards of transparency and good corporate
governance.

● In November 2018, Cementos Pacasmayo launched an offer to purchase for cash a portion of the US$300 million principal amount of international bonds outstanding. The
offer expired on December 7, 2018 with a total of US$168,388,000, or approximately 56.13% of the total outstanding amount, tendered and repurchased by Cementos
Pacasmayo.

● On January 8, 2019, the General Shareholders’ Meeting approved the issuance of a local bond program in an aggregate principal amount up to S/1,000 million. On January
31, 2019, two issuances were completed under the program for a total principal amount of S/570 million: One for S/260 million accruing interest at a rate of 6.68750% per
annum with term to maturity of 10 years, and another for S/310 million accruing interest at a rate of 6.84375% per annum with a term to maturity of 15 years. The proceeds
were used to purchase part of our outstanding 4.50% Senior Notes due 2023. The rates and terms obtained reduce our financial cost structure, with lower cost of capital, an
extended maturity and less exposure to exchange rate fluctuations.

● In 2020, we were included on the Dow Jones MILA Sustainability Index for the second consecutive year. This Index is made up of those companies that demonstrate
superior performance among their peers based on social, environmental and economic criteria.

● In February 2021, we were chosen to be part of The Sustainability Yearbook 2021. To appear in the Yearbook, companies must score within the top 15% of their industry
globally and have a gap of less than 30% from the leader’s Global ESG score. Moreover, we were awarded with the Industry Mover distinction, since we showed the
strongest year on year score improvement in our industry.

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 ● In October 2021, due to the exponential growth in cement demand, our Board of Directors approved the optimization of our Pacasmayo plant, to produce an additional
estimated 600,000 metric tons of clinker per year, in order to reduce the use of imported clinker.

● During 2021, we were included in the Dow Jones MILA Sustainability Index for the third consecutive year, and as part of The Sustainability Yearbook for the second
consecutive year.

Capital Expenditures

We expect to spend approximately US$25 million per year over the next three years on recurring capital expenditures necessary to maintain our plants and equipment. We
expect to finance these investments with our current and future cash flows.

The table below sets forth our total capital expenditures incurred in 2021, 2020 and 2019.

Year ended December 31,

(in millions of S/) 2021 2020 2019

Concrete and aggregates equipment 27.9 24.9 44.6

Piura plant projects 15.1 17.0 12.3
Pacasmayo plant projects 45.4 16.9 25.0
Rioja plant projects 8.9 3.4 5.2
Other investing activities - 0.5 -
Total 97.3 62.7 87.1

B. Business Overview

Overview

We are a leading Peruvian cement company, and the only cement manufacturer in the northern region of Peru. With more than 64 years of operating history, we produce,
distribute and sell cement and cement-related materials, such as precast products and ready-mix concrete. Our products are primarily used in construction, which has been one of the
fastest growing segments of the Peruvian economy in recent years. We also produce and sell quicklime for use in mining operations, although it represents a very small percentage of our
overall revenues.

In 2021 our cement shipments were approximately 3.6 million metric tons, representing an estimated 26.8% share of Peru’s total cement shipments. Cement volumes in 2021
increased by 40.4% compared to 2020, setting a new historical record. It is important to note that in 2020, despite the halt in our operations for more than two months, volumes only
decreased slightly. Even when compared to 2019, which was already a record year, volumes increased 39.6% in 2021. We believe the construction sector has significant potential to
grow with the continued deficit in infrastructure and the persistent housing deficit in the country, as well as the reconstruction of northern Peru following the impact of El Niño weather
conditions in the first four months of 2017. However, we are aware that the exponential growth experienced this year will be difficult to replicate and consider that maintaining current
volumes will be a challenging objective for 2022.

We own three cement production facilities, our flagship Pacasmayo facility located in the northwest region of Peru, our Piura facility located around 300 kilometers north of
Pacasmayo, and our smaller Rioja facility located in the northeast. Our facilities have total installed annual cement production capacity of approximately 4.9 million metric tons. We also
have installed annual production capacity of 240,000 metric tons of quicklime. We own concession rights to several quarries with reserves of limestone and other raw materials located
near our facilities.

We completed an expansion of our Rioja plant in April 2013. We more than doubled the cement production capacity of our Rioja facility by installing a new production line
with 240,000 metric tons of installed annual cement production capacity. We finished construction of our plant in Piura in 2015. This facility has annual production capacity of 1.6
million metric tons of cement. In September 2015, we began cement production, and clinker production began in January 2016. During 2021, we decided to optimize our capacity at our
Pacasmayo plant, in order to add an estimated 600,000 metric tons of clinker capacity per year. This should be completed during 2023.

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 We provide consumers with high-quality and value-added cement products and, as a result, we believe we have developed strong brand recognition and customer loyalty in our
market. We have developed one of the largest independent retail distribution networks for construction materials in Peru. Through our network of 240 independent retailers and 379
hardware stores as of March 31, 2022, we distribute our cement products as well as other construction materials manufactured by third parties, such as steel rebar, cables and pipes, in
the northern region of Peru. We also sell our cement products directly to other retailers that are not part of our distribution network and to private construction companies and
government entities.

The following table sets forth certain macroeconomic data for Peru and operating and financial data for our company for the periods indicated.

As of and for the year ended December 31,

2021 2020 2019
Economic data(1):
Change in GDP 13.2% (11.1)% 2.2%
Change in construction sector in Peru 34.7% (15.6)% 1.5%
Operating data:
Capacity (thousands metric tons per year):
Installed cement capacity 4,940 4,940 4,940
Installed clinker capacity 2,780 2,780 2,780
Production (thousands metric tons):
Cement production 3,632 2,590 2,623
Clinker production 2,036 1,477 1,853
Utilization rate at Pacasmayo plant(2):
Cement 67.9% 45.1% 47.2%
Clinker 58.6% 47.5% 57.6%
Utilization rate at Rioja plant(2):
Cement 76.8% 59.8% 68.4%
Clinker 94.4% 70.9% 82.5%
Utilization rate at Piura plant(2):
Cement 82.7% 63.7% 59.7%
Clinker 89.3% 56.6% 75.8%

Gross profit (S/ million) 559.4 375.3 486.9

Gross profit margin 28.9% 29.0% 35.0%
EBITDA (S/ million) 453.9 315.3 400.3
EBITDA margin 23.4% 24.3% 28.7%
Profit (S/ million) 153.2 57.9 132.0
Profit margin 7.9% 4.5% 9.5%

(1) Source: BCRP.

(2) Utilization rate is calculated by dividing production for the specified period by installed capacity.

Non-IFRS Financial Measure and Reconciliation

We define EBITDA as profit minus finance income and plus finance costs, income tax expenses, and depreciation and amortization, and plus or minus gain from exchange
difference, net.

EBITDA should not be construed as an alternative to profit or operating profit, as an indicator of operating performance, as an alternative to cash flow provided by operating
activities or as a measure of liquidity (in each case, as determined in accordance with IFRS). EBITDA, as calculated by us, may not be comparable to similarly titled measures reported
by other companies, including those in the cement industry.

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 The following table sets forth the reconciliation of our profit to EBITDA:

Year ended December 31,

2021 2021 2020 2019
(in millions of
US$)(1) (in millions of S/)
Profit 38.4 153.2 57.9 132.0
Income tax expense 17.8 70.9 28.0 62.3
Finance income (0.7) (2.9) (3.0) (2.6)
Finance costs 22.3 89.0 88.7 78.0
Gain (loss) on the valuation of trading derivative financial instruments at fair value through
profit or loss (0.2) (0.6) (5.3) 1.5
Liquidation of financial instruments — — —
Accumulated net loss due to settlement of derivative financial instruments at fair value through
profit or loss 0.4 1.6 — —
Loss from exchange difference, net 1.8 7.1 9.8 (0.7)
Depreciation and amortization 34.0 135.6 139.2 129.8
EBITDA 113.9 453.9 315.3 400.3

(1) Calculated based on an exchange rate of S/3.9865 to US$1.00 which was the average accounting exchange rate reported on December 31, 2021, by the SBS.

Peruvian Cement Market

Peru had experienced sustained economic growth over the past decade, but the effects of the COVID-19 pandemic in 2020 resulted in the greatest annual economic contraction
of the last 100 years. However, the recovery during 2021 was substantial, reaching 13.2% growth. From 2017 to 2021, GDP grew at a compound annual growth rate, or “CAGR”, of
1.7%. Growth during this period was accompanied by low inflation, which averaged 2.88% per year. In addition, as of December 31, 2021, the government had accumulated foreign
exchange reserves of approximately US$78.7 billion, and the sovereign long-term debt rating was investment grade from each of the three major international credit rating agencies.
Although this economic growth had resulted, among other key trends, in significant poverty reduction, with a decrease in the percentage of the country’s population living below the
poverty line from approximately 48.6% in 2004 to approximately 20.2% in 2019, the COVID-19 pandemic took a toll on it. Poverty levels for 2020 increased 9.9 percentage points,
reaching 30.1%.

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 We sell substantially all our cement in the northern region of Peru, which in 2021 accounted for approximately 32.5% of the country’s population and 16.0% of national GDP.
Two other groups sold most of the cement consumed in each of the central and southern regions of Peru, with 5.7% of all the cement consumed in the country coming from imports, and
approximately 3.7% coming from a small domestic producer. From 2017 to 2021, total cement consumption in Peru increased 5.9% according to the INEI. Peru continues to have a
significant housing deficit, estimated by the INEI at 1.9 million homes nationwide. In Peru, cement is mainly sold to a highly fragmented consumer base, consisting primarily of
households that buy cement in bags to gradually build or improve their own homes without professional technical assistance, a segment known in our industry as auto-construcción. We
estimate that in 2021 sales to the auto-construcción segment accounted for approximately 70.3% of our total sales of cement, private construction projects accounted for 15.0%, and
public construction projects accounted for the remaining 14.7%. Approximately 89.6% of our total cement sales in 2021 were in the form of bagged cement, substantially all of which
was sold through retailers.

Even though our ready mix sales are still a small proportion of our sales, we expect this trend to change as infrastructure becomes a bigger driver of demand in the upcoming
years, and we continue to implement our strategy to become a building solutions company.

Brine Project Impairment

In 2017, our board of directors resolved to prioritize investments in the development of products related to the manufacture and sale of cement and building solutions. In
furtherance of this strategy, we have pursued the sale or other disposition of investments that are not central to our core cement production business. As a result of this decision, during
the fourth quarter of 2017 we discontinued the brine project.

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Competitive Strengths

Our principal competitive strengths include the following:

Strong corporate governance standards and international recognition

Our common shares are listed on the Lima Stock Exchange and our ADSs are listed on the New York Stock Exchange. We are subject to the disclosure requirements of the U.S.
Securities and Exchange Commission (the “SEC”) and the Peruvian Securities Commission and we must comply with and adopt internal compliance standards to increase transparency
and improve corporate governance standards including an audit committee and appointment of independent directors. Since 2009, every year we have been selected as part of the Good
Corporate Governance Index of the Lima Stock Exchange. Furthermore, in 2021, we received the Top Social Responsibility Award (Distintivo de Empresa Socialmente Responsable)
for the ninth consecutive year, in recognition of our achievement of corporate goals in a socially responsible manner, principle that is ingrained in our corporate culture and business
strategy. Also, we were included for the third consecutive year as part of the 2021 Dow Jones MILA Sustainability Index. This Index is made up of those companies that demonstrate
superior performance among their peers under social, environmental and economic criteria. This achievement comes as a result of Pacasmayo’s effort to improve in all of these criteria
and to work towards ambitious goals in terms of long-term sustainability. We are committed not only to remain in the Index but to improve our performance, as we are convinced that
the focus on sustainability is key to our business and our stakeholders.

In February 2022, we were selected to be part of The Sustainability Yearbook 2022, for the second consecutive year.To appear in the Yearbook, companies must score within
the top 15% of their industry globally and have a gap of less than 30% from the leader’s Global ESG score. With around 7,000 companies evaluated around the world, an inclusion in the
yearbook is a true statement of excellence in corporate sustainability.

Track record of cash flow generation and strong results through multiple business cycles

We have historically generated strong cash flow and high profit margins mainly due to the following key factors:

● our leadership position in the northern region of Peru; and

● our extensive distribution network, operational flexibility and efficiency, and focus on innovation.

Despite the difficulties encountered globally due to the COVID-19 pandemic, we were able to recover strongly and generate a record S/453.9 million in EBITDA during 2021,
the highest in company history.

This solid financial position and our ability to consistently generate operating cash flow also allows us to obtain relatively low interest rates.

Leader in attractive and expanding market with solid macroeconomic fundamentals

We are currently the only cement manufacturer in the northern region of Peru and we produce and sell substantially all of our cement in the region. In 2020, the northern region
accounted for approximately 32.5% of the country’s population and 16.0% of its GDP. From 2017 to 2021, GDP in the northern region increased at a CAGR of 4.5%. During the same
period, our cement sales volume grew at a CAGR of 12.4%, above northern region GDP mainly due to increased public spending resulting from the government’s reconstruction plan
after El Niño in 2017, and the resilience of the auto-construcción segment, mainly driven by high employment levels in agriculture which is prominent in the North.

Best-in-class operating efficiencies with vertical integration and strong brand recognition

Our quarries are located in close proximity to our plants, enabling us to minimize transportation costs. We strive to enhance our operational efficiency by focusing on lowering
costs and improving profitability. We also benefit from our vertically integrated operations, participating in the entire chain of production from the quarries, which we own directly, to
the related products such as quicklime, ready–mix, precast and our large distribution network. We have developed one of the largest independent retail distribution networks for
construction materials in Peru, known as “DINO,” consisting of 240 independent retailers and 379 hardware stores as of December 31, 2021, primarily small, local stores in the northern
region, through which we distribute our cement products, as well as construction materials manufactured by third parties. We use our distribution network, together with our strategically
located commercial offices, to promote our products and stay abreast of market developments. We have developed this network through years of fostering relationships with retailers in
the region, which we believe would be difficult for a competitor to replicate. Our distribution network has enabled us to build strong recognition for our Pacasmayo brand among
retailers and end-consumers in our market, which we believe is important to our business, particularly because our cement is principally sold in bags to retail consumers.

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 Disciplined capital expenditure plan with attractive risk / return profile

We seek to minimize risk while securing an adequate return on our development projects. In 2015, we completed construction of our new plant in Piura, the third largest city in
northern Peru, which has an annual production capacity of 1.6 million metric tons of cement. The first ton of cement from the Piura plant was produced and shipped on September 17,
2015. The Piura plant improves our competitive position in the northern region of Peru. With production from three plants, we are able to serve our market more efficiently. This state-
of-the-art plant is one of the most modern in Latin America. It also reduces transportation costs by enabling the dispatching of cement from plants within closer proximity to the point of
sale.

During 2021, we decided to invest approximately US$70 million to optimize our current capacity at our Pacasmayo plant, in order to produce an additional estimated 600,000
metric tons of clinker per year. Due to the sudden and sharp increase in demand since the second half of 2020, we have had to import clinker, which negatively affects our margin due to
higher cost of production. This optimization, when completed during the second half of 2023, will allow us to stop importing clinker, if demand remains around current levels, as we
curently expect.

Emphasis on innovation

We place significant emphasis on research and development to ensure our products meet the needs of consumers in our market and to improve the efficiency of our operations.
For example, we have developed cement products suitable to coastal construction that tend to be more exposed to erosion from sulfate. We believe that, by educating retailers and end
consumers of these attributes of our products, we have been successful in building demand and realizing higher margins for our differentiated product offering.

In July 2016, we created the Innovation Department with the main objective of systematizing the continuous transformation process of the business in order to ensure a
sustainable growth for Cementos Pacasmayo and the improvement of its margins. To achieve this objective it is necessary to:

● Put the customer at the center of all our processes.

● Design a management innovation model.

● Promote an organizational culture that encourages entrepreneurship and innovation.

Given that customers, and consumption patterns can change quickly and unexpectedly we must quickly adapt in order to retain our customers.

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 In 2019 we worked hard to develop new value propositions, that will enable us to offer our clients the best experiences. We designed Journey Maps together with the
commercial and Marketing areas wherein we detailed the experience of our various clients to identify our strengths and those aspects that we need to improve. Under this approach, in
2021 we began to develop (and in some cases) to consolidate our digital platforms:

Name of the
project Description
Digital platform aimed at delivering value to Construction companies. Through this digital application, our clients will be able to check the status of their dispatches,
PACASPRO
re-schedule them and display the GPS location of their shipments in real time.
APOLO It will be our new commercial digital platform that will support our Mundo Experto digital strategy. It is in the research and design stage.
Digitization of the request, approval and issuance processes for the discount on plans and promotions, negotiation, tenders and sale, giving visibility to our clients and
SISPLAN
sales force.
Digital catalogue of company products, aimed at facilitating the transition from traditional construction processes to the implementation of building information
BIM
modeling. The initiative includes team training and use of BIM as a virtual design tool in the Engineering Department.
Cellular Project development in conjunction with the R&D and Marketing Departments that involves the design of a new type of concrete with innovative properties such as
Concrete lighter weight and high thermal and acoustic performance.
AYU The project focuses on getting to know Peruvian families to design a value proposition that enhances the fulfillment of their plans through financial inclusion.
The project is aimed at the commercial management carried out by the sales force (CRM), in which we cover all the activities of its roadmap to be able to fulfill its
ISICOM
commercial management of sales, registration of construction projects and contact with customers.
DAKAR Digital platform aimed at medium and small carriers seeking greater utilization of their units by offering them an easy and fast way to find reliable cargo.
DEDALO Design and guide the implementation of a process automation model, accelerating the digital transformation of the company.
EVA Digital platform aimed at hardware stores that want to generate sales with digital receipts and that seek to improve the management of their business.

Strong relationship with local communities

Since we began operations 64 years ago, we have been committed to improving the quality of life of the communities surrounding our plants, whose members we regularly
employ. We have developed close and cooperative relationships with the local communities, which are supported by several social responsibility initiatives we have undertaken. For
example, the family of our controlling shareholder founded, Asociación Tecsup, a leading non-profit institute in Peru that provides technical education to students as well as UTEC, a
leading technical university. We provide scholarships and financial aid to local qualified students interested in studying at Tecsup. Through its three campuses in Peru, as of December
31, 2021, Tecsup had graduated over 12,484 students in various technical fields, some of whom currently work for us and our affiliates.

Highly experienced and professional management and board of directors

Our management team, with an average of 14 years of experience in the cement industry in Peru, has extensive technical and local market expertise and has led our company
through our recent growth. We have developed a strong professional business culture and a team of highly qualified executives. We also have a well-regarded and experienced board of
directors that includes some of Peru’s business leaders and former senior government officials. Since 2009, we have been selected to form part of the Best Corporate Governance
Practices Index of the Lima Stock Exchange, and since 2019 we have been selected as part of the Dow Jones MILA Sustainability Index, for three consecutive years.

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Our Strategies

Our objective is to maximize shareholder value, while honoring our commitment to the environment and abiding by our social responsibility goals. We aim to be a leading
company that provides building solutions anticipating the needs of our clients and that contributes to the continued development of our country. We intend to achieve our objective
through the following principal strategies:

Continue to focus on our core business of supplying the rising demand for cement

We plan to continue to meet the increasing demand for cement in our market, while controlling production costs. We intend to increase our production capacity while we
continue to serve the current cement market, as well as increasing cement demand through the production of new cement-based products. Our principal goal is to maintain our market
share in the northern region of Peru without reducing the profitability of our business.

Deepen our commercial relationship with retailers and end-consumers

We plan to enhance our commercial relationships with retailers and end-consumers in our market, both to maintain brand loyalty and to foster demand for our cement products.
We will continue to support retailers in our DINO distribution network by providing product education, training sessions, rewards programs, and assistance in financing purchases of our
products. In addition, we continue with our door-to-door commercial strategy for cement sales. We believe that these initiatives have been successful in strengthening our relationship
with retailers and end-consumers.

Continue to focus on being the preferred provider of building solutions

We strive to be the supplier of choice for cement consumers in the northern region of Peru, whether its individuals building their homes or private construction companies or
governmental entities undertaking projects of any size. We continue to focus on providing consumers with efficient and customized building solutions for their construction needs. Over
the past several years, we have evolved from being a single type cement manufacturer to offering five different types of cement products, under 2 brands, and other building solutions,
such as assembly gravity walls, sheet piles, precast beams, among others. Moreover, in 2018 we launched a new corporate image and future vision, transforming ourselves from a
cement producer to a building solutions company. We focus on innovation and are constantly searching for ways to improve building practices, inspired by our culture based on
sustainability. For example, we offer cement that contains special properties that protect against sulfate erosion, as well as other products designed to meet the needs of consumers in the
northern region of Peru. For the industrial segment and under our Pacasmayo professional brand, we continue with the digitalization of the purchasing process and of the use of our
products and services. For our mass channel and self-builders we have Mundo Experto, an ecosystem that integrates physical and digital solutions, improves the purchasing experience
and contributes to the professionalization and formalization of the construction market. Our mission is to provide a comprehensive solution for all project types and thus respond to the
unique needs of each client, generating savings and efficiencies in the construction processes. During 2021,we received a Silver Effie award, in the brand experience category, for
“construyexperto.pe”, an online platform created to redesign the foreman´s experience, with training and tools that help them be more efficient. The Effie Awards honor the world’s
most effective companies and brands.

Selectively pursue acquisitions

We will continue to evaluate and may selectively pursue strategic acquisitions of cement and complementary businesses that expand our geographic footprint and diversify our
portfolio of products. Our management team has significant operating experience and industry knowledge in the production and commercialization of cement and cement-related
materials, and we believe this experience will enable us to identify and pursue attractive acquisitions that will maximize shareholder value.

Continue to strengthen our enterprise risk management

We continue to strengthen our enterprise risk management methods and processes that allow us to identify, assess and monitor the legal, commercial, operational, financial and
reputational risks, as well as fraud, corruption, bribery and money laundering and financing of terrorism risks, determining the existing controls and establishing a plan along with other
areas in order to mitigate existing risks. Along these lines, since 2018, we have implemented the ISO 37001 Anti-bribery management systems obtaining the certification every year
since 2019. This certification confirms that our management system are designed to help prevent, detect and respond to bribery and comply with anti-bribery laws and voluntary
commitments applicable to its activities. We believe this certification reiterates our commitment to global anti-bribery best practices and high standards of transparency and good
corporate governance.

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 Maintain high environmental, social and governance standards

We are committed to maintaining high environment, social and corporate governance standards. We are focused on developing and strengthening a favorable social
environment for the continuity and growth of our operations, prioritizing our social investment in innovative education, health and local development programs in coordination with
other stakeholders to contribute to sustainable development. Since 2009, we have been selected as part of the Good Corporate Governance Index of the Lima Stock Exchange.
Furthermore, in 2021, we received the Top Social Responsibility Award (Distintivo de Empresa Socialmente Responsable) for the ninth consecutive year, in recognition of our
achievement corporate goals in a socially responsible manner, a principle that is ingrained in our corporate culture and business strategy. Furthermore, in 2021 we obtain a special
distinction in the Ethics and Integrity category. Also, we were included for the third consecutive year as part of the Dow Jones MILA Sustainability Index. This Index is made up of
those companies that demonstrate superior performance among their peers under social, environmental and economic criteria.

In February 2022, we were chosen to be part of The Sustainability Yearbook for the second consecutive year. To appear in the Yearbook, companies must score within the top
15% of their industry globally and have a gap of less than 30% from the leader’s Global ESG score.2021 was the first year that Peruvian companies were included as part of the
Yearbook, and we are the only Peruvian cement company to be included for two consecutive years. With around 7,000 companies evaluated around the world, an inclusion in the
yearbook is a true statement of excellence in corporate sustainability. This achievement is a recognition of our extraordinary efforts to improve in all of these criteria and to work
towards ambitious goals in terms of long-term sustainability. We are committed not only to remain in the Index but to improve our performance, as we are convinced that the focus on
sustainability is key to our business and our stakeholders.

Likewise, in 2021 we were recognized with first place in the category “Leading Company in Corporate Governance Peru” and second place in the category “Leading Company
in Investor Relations Peru” in the “ALAS 20-Agenda Sustainable Leaders” award, organized by GOVERNART in Peru and other countries in the region.

Our Products

Our core products are cement and other cement-related materials. We also produce quicklime. In 2021, cement, concrete and precast accounted for 92.1% of our net sales and
quicklime accounted for 2.0%. We also sell and distribute construction materials, such as steel rebar, cables and pipes, manufactured by large third-party manufacturing companies, and
others which in 2020 represented 5.8% of our net sales.

The following table sets forth a breakdown of our shipments by type of product for the periods indicated:

Year ended December 31,

(in thousands of metric tons) 2021 2020 2019
Cement, concrete and precast 3,625 2,581 2,614
Quicklime 66 59 66

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 The following table sets forth a breakdown of our total net sales by product for the periods indicated:

Year ended December 31,

(in millions of S/) 2021 2020 2019
Cement, concrete, mortar and precast 1,784.5 1,185.2 1,292.2
Quicklime 113.9 32.5 36.1
Construction supplies(1) 39.1 78.2 64.1
Others 0.3 0.4 0.3
Total 1,937.8 1,296.3 1,392.7

(1) Refers to construction materials manufactured by third parties that we distribute. Construction supplies include the following products: steel rebar, wires, nails, corrugated iron,
electric conductors, plastic tubes and accessories, among others.

Cement

Cement is a powdered mixture of ground minerals that, when mixed with water, adheres to other materials and hardens to form a rock-like substance. Cement is generally
mixed with other materials, such as gravel and sand, forming concrete with a high degree of compressive strength that is able to withstand substantial pressure.

Cement types are generally classified as either Portland cement or blended hydraulic cement. Portland cement is a hydraulic cement produced by pulverizing clinker, consisting
essentially of crystalline hydraulic calcium silicates and calcium sulfate. Blended hydraulic cement consists of a mixture of Portland cement clinker and mineral admixtures, such as blast
furnace slag, pozzolanic materials and limestone.

We produce predominantly blended cement, which represented 82.3% of our cement sales in 2021. This type of cement requires less clinker and reduces carbon dioxide
emissions of our operations and production. Our global clinker/cement ratio is estimated at 72%, below the average value for similar producers globally of approximately 76%

We produce a range of cement products suitable for various uses, such as residential and commercial construction and civil engineering. We currently offer the following six
types of cement products designed for specific uses:

● Type ICo. This type of cement is used for general purposes and is similar to Portland Type I cement. It is widely used in our market due to its effectiveness and low
hydration heat.

● Type MS/MH/R (called Fortimax3). This is the new formula for the type of cement that is used to protect against moderate sulfate action, such as drainage structures, with
higher-than-normal, but not unusually severe, sulfate concentrations in ground water. It is designed for sites and structures in humid areas that are exposed to sulfates and
sea water. It also prevents thermal contraction cracking due to moderate heat hydration, and is resistant to contact with alkaline reagents.

● Type I. This type of cement is for general purposes and suitable if special properties are not needed. It is generally used for constructing pavements, floors, reinforced
concrete buildings, bridges, reservoirs, pipes, masonry units and precast concrete products.

● Type V. Type V cement is used in concrete exposed to severe sulfate action, principally in places where soil or ground water has high sulfate content. It is generally used in
hydraulic construction, such as irrigation canals, tunnels, water conduits and drains.

● Type HS. Type HS cement is used in concrete that is exposed to severe sulfate action, principally where soil or ground water has high sulfate content. It is recommended for
port construction, industrial plants and construction of sewage sites. Our Portland Type HS cement has low reactivity with alkali-reactive aggregates, making it more
durable than other types of cement.

● Type IL. Type IL cement is a blended Portland limestone cement. These cements are more environmentally friendly than Portland cements and have very similar
performance to Portland Type I/II cements

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 We believe that our Type V, Fortimax and HS cement products are particularly suitable for construction in the northern coastal region of Peru, where sulfate and chloride
concentrations from soil, ground water and sea water affect the durability of construction structures. By educating retailers about the different cement characteristics and conducting
marketing campaigns, we believe we have been successful in building demand for our cement products. Our research and development department is also equipped to produce custom-
tailored cement products on demand. In addition, through our dedicated team of geologists and scientists, we have significantly reduced the amount of clinker required for cement
production minimizing our capital expenditures and significantly reducing our carbon dioxide emissions (CO2).

We market and distribute our cement primarily in 42.5 kilogram bags. Most of our bagged cement is sold to the retail sector consisting primarily of households that buy bags of
cement to build or expand their own homes over time with little or no formal technical assistance (commonly referred to as auto-construcción). The bags are made of Kraft paper to
preserve the quality of the cement. Our bags include information relating to the composition of our cement, handling instructions, production dates and storage instructions. Our cement
bags have different colors to easily identify the different types of cement. Once bagged at our Pacasmayo, Rioja and Piura facilities, our cement is loaded onto trucks operated by third
parties. Cement in bulk is sold to large industrial consumers.

Concrete Products

We also produce and sell concrete products principally in the form of ready-mix concrete used in large construction sites, as well as precast, bricks, pavers and other precast
materials.

● Ready-mix concrete. Ready-mix is a blend of cement, aggregates (sand and stone), admixtures and water. It is manufactured and delivered to construction sites in a form
that is ready to use. This mixture hardens to form a building material, ranging from sidewalks to skyscrapers. We have 19 fixed and mobile ready-mix plants.

● Concrete precast. We produce and sell concrete precast, such as paving units, or paver stones for pedestrian walkways, as well as other bricks for partition walls and
concrete precast for structural and non-structural uses.

● New cement based products. We have developed, and are in the process of developing more cement-based products that are innovative and easy building solutions. Some
of these products are:

 Mortar for brick laying: Pre-dosed and bagged dry masonry mortar for block and brick laying.

 Mortar for plaster: Pre-dosed mortar to plaster interiors and exteriors, walls and ceilings. Allows smooth finishes and thin applications

 Caravista Concrete: Concrete designed to be exposed without any additional coating or paint.

 Tremie Concrete: Concrete designed to be placed under water at depths greater than 1.5 meters.

 New Jersey Walls: safety barriers used to separate traffic flows

 Mortar for brick laying: Pre-dosed and bagged dry masonry mortar for block and brick laying.

 Viaforte Type MH: Cement of moderate heat of special hydration for stabilization of soils and road bases. The cement provides greater workability and less risk of
cracking on site, also ensuring greater durability to the structure

 Bagged Dry Concrete: Pre-dosed mixture of cement, aggregates (Stone and Sand) and additives, that only requires the addition of water indicated on the package and
mixing (manual or mechanical) to be used immediately

 Corner block: Product that complements the structures built with our precast, giving better functionality to any corner.

 Beam block: Product that is used to confine the upper part of walls built with our precast.

 Concrete driving pipes: precast reinforced concrete pipes that are installed without the need to open pit ditches or dredging of maritime floors. The main use of the
driving pipe is to collect seawater (inlet pipe) and to bring brackish water back out to sea (outfall pipe). We are building a 1.5 kilometer long underwater outfall project
for the Talara Refinery, where it is necessary to build a water collection system for its fire and cooling system.

 Sheet piles presented and assembled: concrete piles that can be pre-stressed or reinforced (they are two different types of manufacturing) that sink one alongside the
other, forming a containment structure, used as riparian defenses. We are manufacturing 40,000 ml pre-stressed and reinforced sheet piles that will form a coastal
defense for the Piura River, ensuring the containment of water during rainy events, reducing the vulnerability of the city to floods.

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Quicklime

We produce and distribute quicklime, which has several industrial uses. Quicklime serves as a neutralizer, lubricant, drying and absorbing material, disinfectant, and as a raw
material. Quicklime has various applications, including in the steel, food, fishing and chemical industries. It is also used in mining operations to treat water and industrial residues, in
agriculture as a fertilizer enhancer and, to a lesser extent, in other industries. In Peru, quicklime is mainly used in the mining industry, as an additive to treat water residues. We produce
quicklime in finely and coarsely ground varieties and sell it either in bags of one metric ton or in bulk, according to clients’ requirement.

Production Process

Cement Production Process

The diagram below depicts the standard cement production process, which consists of the following main stages:

● extraction and transportation of limestone or seashells from the quarry;

● grinding and homogenization to make the raw material of consistent quality;

● clinkerization;

● cement grinding;

● storage in silos; and

● packaging, loading and distribution.

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 Extraction of raw materials. To produce cement, limestone/seashells are extracted from our quarries. We use explosives to loosen the limestone and deploy bulldozers to
remove dirt and the overburden covering the limestone. We crush the limestone in our primary and secondary cone crusher and the resulting limestone is loaded into trucks and hauled to
our Pacasmayo or Rioja facilities from the adjacent quarry where it is stored. In the case of Piura, our surface miner drills out our seashell quarry and then it is also loaded into trucks and
hauled to the Piura plant.

Grinding and homogenization. Limestone/seashells, clay and sand are mixed with iron that is acquired from third parties. The quality of the resulting raw meal is monitored by
examining samples of each batch and processing them through our quality control x-ray software that automatically measures the mix of materials to confirm the blend is in compliance
with our quality standards. Subsequently, the raw meal is sent to a blending silo and then to a storage silo from where it is fed into the pre-heater.

Clinkerization. The raw meal is heated at a temperature of approximately 1,450 degrees Celsius in our kilns. The intense heat causes the limestone and other materials in the
mixture to react inside the kiln, turning the mixture into clinker. Clinker is then cooled to a temperature of approximately 200 degrees Celsius and stored in a silo or in an outdoor yard.

Cement grinding. After being cooled, clinker, together with gypsum and some admixtures, is fed into a ball mill or into a vertical roller mill where it is ground into a fine
powder to produce cement. In this form, cement reacts as a binding agent that, when mixed with water, sand, stone and other aggregates, is transformed into concrete or mortar.

Storage in silos. After passing through the ball mills, the cement is transferred on conveyor belts and stored in concrete silos in order to preserve its quality until distribution.

Packaging, loading and transport. Cement is transferred through another conveyor belt from the silo to be packaged in 42.5 kilogram bags and then loaded into trucks operated
by third parties to be transported for distribution. Bulk cement may be transported (unpackaged) on especially designed trucks that deliver large amounts of cement directly to the work
site.

Quicklime Production Process

Quicklime is produced by crushing limestone with a calcium carbonate content of at least 95% by calcinating it in a rotary kiln. The limestone for quicklime comes from our
quarries. The crushing of the limestone is done at the quarry and the calcination process takes place only at our Pacasmayo facility. We produce quicklime in finely and coarsely ground
varieties and sell both varieties in bags of 40 kilograms and up to one metric ton, as well as in bulk.

Raw Materials and Energy Sources

Limestone and Other Calcareous Resources

We obtain limestone required to produce clinker and quicklime principally from land where we have concession rights. For our Pacasmayo plant, we extract limestone from our
Acumulación Tembladera quarry located approximately 60 kilometers from the plant, and for our Rioja plant, we extract limestone from our Calizas Tioyacu quarry which is adjacent to
our Rioja plant. For our Piura plant, we extract seashells from Virrilá quarry, located approximately 120 kilometers from the plant.

Acumulación Tembladera. We have a concession with an indefinite term to extract limestone and other minerals from our Acumulación Tembladera quarry, a 3,390 hectare
open-pit mine located in the district of Yonan, in the department of Cajamarca. We acquired this concession in November 2002.

Calizas Tioyacu. For our Rioja production, we have a concession with an indefinite term to extract limestone and other minerals from a 400 hectare open-pit mine near our
Rioja facility in the district of Elias Soplin Vargas, in the department of San Martín. We acquired this concession in February 1998.

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 Virrilá. For our Piura production, we also have a group of concessions with an indefinite term to extract seashells and other minerals from our Virrilá quarry, a 931 hectare
open-pit mine located in the district of Sechura, in the department of Piura. We acquired these concessions between 2000 and 2008.

In addition to our Acumulación Tembladera, Calizas Tioyacu, Bayovar 4 and Virrilá quarries, we also own concession rights to various other calcareous material quarries
consisting, in total, of approximately 40,767 hectares located in the northern region of Peru. None of these quarries are in operation as of the date of this annual report.

Clay, Sand and Other Raw Materials and Admixtures

The other raw materials that we use to produce clinker are clay, sand, iron and diatomite.

Clay

For cement production in our Pacasmayo facility, we extract clay from our Cerro Pintura quarry, a 400 hectare open-pit concession located in the district and province of
Pacasmayo, department of La Libertad. We were granted this concession by the MEM in 1996. The term of the concession is indefinite, provided we pay an annual concession fee and
meet minimum annual production requirements.

For cement production in our Rioja facility, we extract clay from our Pajonal quarry, a 400 hectares open-pit concession located in the district and province of Rioja, department
of San Martin. This concession was granted to us by the MEM in 1998. The term of the concession is indefinite, provided we pay an annual concession fee and meet minimum annual
production requirements.

We have not calculated our clay reserves, as we believe there is an abundant supply of clay in our concessions and more broadly in the northern region where we operate.

Sand

For cement production in our Pacasmayo facility, we use sand extracted from our Cerro Pintura quarry. Our Rioja facility does not utilize sand as a raw material given the type
of cement it produces.

We have not calculated our sand reserves, as we believe there is an abundant supply of sand in our concessions and more broadly in the northern region where we operate.

Iron

We use small quantities of iron in our cement production, which we purchase from third parties at market prices.

Pozzolanic Materials and Other Admixtures

Our cement production also requires small amounts of other admixtures, such as pozzolanic materials, gypsum and blast furnace slag.

For cement production in our Pacasmayo facility, we use pozzolanic materials obtained from our Cunyac quarry, a 200 hectare open-pit concession located in the district of
Sexi, province of Santa Cruz, department of Cajamarca. The concession was granted to us by the MEM in 2008. The term of the concession is indefinite, provided we pay an annual
concession fee and meet minimum annual production requirements.

For cement production in our Rioja facility, we use pozzolanic materials obtained from our Fila Larga quarry, a 1,000 hectare open-pit concession located in the district of El
Milagro, province of Utcubamba, department of Amazonas. The concession was granted to us by the MEM in 1998.

We also own several other concessions containing pozzolanic material which have not been exploited. In addition, our use of pozzolanic materials may be substituted with
clinker or other admixtures. Other admixtures, such as gypsum and blast furnace slag, are purchased at market prices from third-party suppliers. If we are unable to acquire raw materials
or admixtures from current suppliers, we believe that other sources of raw materials and admixtures would be available without significant interruption to our business.

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Energy Sources

Our main energy sources are fuel in the form of coal and electricity. Our production processes consume significant amounts of energy, because our kilns must reach extreme
temperatures to produce clinker and quicklime. In addition, milling operations, homogenization and transportation of materials consume significant amounts of energy.

Coal

We purchase mostly anthracite coal from local suppliers and import small amounts of bituminous coal from suppliers mainly in Colombia, in each case at spot market prices.
Anthracite coal tends to be less expensive than bituminous coal. We store coal at our premises and in our warehouse facility adjacent to the Salaverry port, located approximately 130
kilometers south of our Pacasmayo facility, where we have sufficient stock of coal to maintain our production levels for the next year.

In December 2009 and February 2010, we entered into option agreements to acquire coal mining concessions as a means to secure a steady and reliable source for our coal
requirements and to reduce the volatility in costs related to coal. In 2011, we exercised certain options under these agreements to acquire coal mining concessions for 908.5 hectares near
our Pacasmayo facility for a total purchase price of US$4.5 million. In 2013, we exercised our remaining options to purchase an additional coal mining concession for 501.2 hectares for
US$1.0 million, thereby completing the acquisition of the related coal mining concessions.

Electricity

As of December 31, 2021, all of the electricity requirements for our Pacasmayo and Piura facilities were supplied by Electroperú and for our Rioja facility by ELOR.

We have a long-term electricity supply contract with Electroperú currently valid until 2026. Electroperú has agreed to provide us with sufficient energy to operate our
Pacasmayo and Piura facilities at pre-determined maximum amounts during the term of the contract. Payments for electricity are based on a formula that takes into consideration our
energy consumption and certain market variables, such as the U.S. purchase price index, the global price of oil, the local price of natural gas and the import price of bituminous coal.

In addition, we have a medium-term electricity supply contract with ELOR to supply the Rioja facility, which was recently extended until November 2022. ELOR supplies the
Rioja facility with six megawatts of electricity at peak hours and eight megawatts at non-peak hours. Payments for electricity are based on a formula that takes into consideration our
energy consumption and certain market variables, such as the U.S. dollar price, the local price of natural gas, the global price of oil and the import price of bituminous coal.

Other Production Materials

We use other materials in the cement production process, including paper bags to package cement, which we purchase principally from local suppliers; plastic bags used to
package quicklime, which we purchase from local suppliers; and water to cool the kiln exhaust gases and for our crushing operations at our Acumulación Tembladera quarry, which we
obtain principally from a well located at our Pacasmayo facility and from the Jequetepeque river. Water used in our production process is maintained in a closed system at our plants and
re-processed for utilization in our production process.

Consumer Base

The retail cement sector in Peru is characterized by households that purchase single bags of cement to gradually build or improve their homes with little or no professional
assistance. This sector is known as auto-construcción. Families in this sector tend to invest a large portion of their savings in building or improving their own homes. Auto-construcción
is often conducted with the help of a foreman (maestro de obra) who generally has experience in construction. Our retail marketing plans typically target the maestro de obra who is
usually the decision maker when buying cement and other related construction materials.

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 We also sell directly to small, medium and large private construction companies working on a variety of construction projects, from housing complexes to commercial
developments. In the public sector, we provide cement for national, regional and local governments carrying out construction projects including housing complexes and public
construction, ranging from local schools and hospitals to large infrastructure.

Sales and Distribution

Distribution

Our market extends from the Ecuadorian border in the north of Peru to the city of Barranca in the south (approximately 180 kilometers north of Lima), to the rainforest in the
east and the Pacific Ocean in the west. Our market covers the provinces of Amazonas, Cajamarca, La Libertad, Lambayeque, Piura and Tumbes in the north; and San Martín and Loreto
in the northeast.

Our Pacasmayo, Piura and Rioja facilities supply the entire northern region of Peru, interchangeably subject to where it is most efficient to ship from at the moment, depending
on the distance and type of cement being produced, among other factors.

In 2021, approximately 88.6% of our total cement shipments were in the form of bagged cement, substantially all of which was sold through retailers both within and outside of
our distribution network. The remaining 11.4% of our cement was sold in bulk or in shipments of precast products or ready-mix concrete directly to large construction companies.

We have developed one of the largest independent retail distribution networks for construction materials in Peru, consisting of more than 379 local hardware stores, with which
we have a distribution agreement. In addition, we also distribute to other independent retailers located throughout the northern region of Peru with whom we do not have contractual
relationships. We have built our distribution network by investing in strengthening our relationship with retailers.

Even though our ready mix sales are still a small proportion of our sales, we expect this trend to change as infrastructure becomes a bigger driver of demand in the upcoming
years. Additionally, we sell and distribute other construction materials manufactured by third parties that are used alongside cement, such as steel rebar, plastic pipes and electrical wires,
among others.

Marketing and Brand Awareness

We use our distribution network, together with our strategically located local commercial offices, to promote our products and brands, as well as to keep us informed of market
developments. We believe our distribution network has enabled us to build strong recognition for our Pacasmayo brand among maestros de obra, retailers and end consumers which we
believe is important to our business, particularly because our cement is principally sold in bags to retail consumers.

Our marketing expenses in 2021 were approximately S/5.6 million, or 0.3% of our sales. Historically, our marketing strategy has been to develop brand loyalty by providing
high-quality products, tailored to the needs of our customers, and customer service accompanied by complimentary training for the maestros de obra, who are typically the decision
makers in the auto-construcción segment.

We develop strong ties with our distributors by promoting income generating opportunities for them. For instance, we give them priority when hiring transportation to distribute
our cement throughout our territory. Also, our large salesforce has the ability to cover most of the construction sites in northern Peru generating business opportunities that are then
channeled through our distributors. Finally, our distributors enjoy various commercial and marketing benefits such as rebates, special promotions, special credit conditions, and loyalty
programs.

We have been working consistently in recent years to focus time and attention on our client’s needs, in an effort to go beyond just selling cement and its byproducts, to
providing solutions and innovating. Consequently, we were well-positioned to leverage these initiatives during the ongoing pandemic period. The self-construction segment has been the
primary driver behind the growth in volume sales during 2021. We have focused on several fronts to enhance the customer experience and to facilitate access to our solutions. We have
developed Mundo Experto, which is a virtual ecosystem made up of digital solutions that serves to join supply and demand and offers a superior purchasing experience leveraged on
intensive use of technology to generate more value for our users. The digital solutions are targeted and customized for the different users, such as foremen, hardware stores, and the self-
builder.

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Quality Control

In Peru, cement production is subject to standardization (normalización) regulations approved by the National Institute for the Protection of Competition and Intellectual
Property (Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual, or “INDECOPI”). Although the standardization regulations are not
mandatory, they are useful in achieving an optimum level of management. As of the date of this annual report, we comply with all standardization regulations applicable to our products.

We have established a quality assurance program in accordance with ISO Standard 9001-2008, certified by SGS del Perú S.A.C., a company that provides inspection,
verification, testing and certification services. We monitor quality at every stage of the cement production process. In our facilities, we periodically test the quality of our raw materials.
These tests include chemical, physical and x-ray tests. We perform similar examinations of the clinker we produce. Additionally, we also perform regular quality tests on our finished
products.

We have a quality control area with computerized systems to access real-time information on the quality of our products. As part of our quality control process, we monitor the
performance of our different cement products, monitor the performance of additives in our cement and review monthly statistical analysis on the resistance of cement, among other
things.

Competitive Position

Peru’s cement production is segmented into three main geographic regions: the northern region, the central region, including Lima’s metropolitan area, and the southern region.
We are the only cement manufacturer in the northern region of Peru. The central region is principally served by UNACEM (formerly known as Cementos Lima and Cemento Andino),
some imports, Caliza Cemento Inca and Mixercon. The south is principally served by Cementos Yura and Cementos Sur. In 2021, our cement shipments were approximately 3.6 million
metric tons, representing an estimated 26.8% share of total cement shipments in Peru.

Regulatory Matters

Overview

Although our core business is the production of cement, we hold a number of mining concessions granted by the Peruvian government for the supply of limestone and other raw
materials required for cement production. As a result, we are subject both to the mining and the general industrial legal framework in Peru. The regulatory framework applicable to our
cement production may be divided into rules and regulations relating to (i) the mining and crushing of limestone and clay, and (ii) the production process.

Mining Regulations

The General Mining Law (Texto Único Ordenado de la Ley General de la Minería) approved by Supreme Decree No. 014-92-EM, published in the Peruvian Official Gazette,
El Peruano, on June 3, 1992, is the primary law governing both metallic and non-metallic mining activities in Peru and is supplemented by implementing guidelines and policies
regarding mining and the processing of minerals enacted by the MEM. Under the General Mining Law, mining activities (except storage, reconnaissance, prospecting and trade) are
carried out exclusively through various forms of concessions. Mining concessions are granted by the Geological, Mining and Metallurgical Institute (Instituto Geológico Minero y
Metalúrgico, or “INGEMMET”), and all other concessions, including our mineral processing concessions, are granted by the Directorate General for Mining of the MEM. Any act,
transfer, termination or agreement related to these concessions must be registered with the Mining Rights Registry, which is part of the National Public Registry System, to be effective
against the Peruvian government and third parties.

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 Holders of concessions or mining claims must comply with several obligations, including the payment of an annual concession fee (derecho de vigencia) of US$3.00 per
applicable hectare. The annual concession fee is due and payable on or prior to June 30 of each year. Failure to pay the annual concession fee for two consecutive years will result in the
termination of the mining concession.

Mining activities require holders to obtain title to the surface land from individual landowners, peasant communities or the Peruvian government. Mining concessions are
granted for an unlimited period, subject to the achievement of minimum annual production levels. Two different regimes apply depending on the date the concession was granted:

Under Legislative Decree 1320 and Supreme Decree No. 011-2017-EM, since January 1, 2019, if the annual minimum production or investment has not been met, the annual
penalty and the causes to terminate a mining concession will be determined by the General Mining Law for all concessions, as described below.

For concessions granted until 2008, the following rules apply:

● the minimum annual production target is equivalent to one tax unit (approximately US$1,187) per year per hectare, in case of metallic mining concessions, and 10% of one
tax unit (approximately US$119) per year per hectare, in the case of non-metallic mining concessions;

● the minimum production level is to be achieved no later than the end of the tenth year from the date of grant;

● if the minimum production level is not achieved within that period, an annual penalty equivalent to 2% of the minimum annual production level is due until such level is
achieved;

● if the minimum production level is not achieved by the end of the fifteenth year, an annual penalty equivalent to 5% of the minimum annual production level is due until
such level is achieved;

● if the minimum production level is not achieved by the end of the twentieth year, an annual penalty equivalent to 10% of the minimum annual production level is due until
such level is achieved; and

● if the minimum production level is not achieved by the end of the thirtieth year, the mining concession expires.

Any penalty must be paid prior to June 30 of each year. Failure to pay the penalty for two consecutive years results in the termination of the mining concession.

Since January 1, 2020, these penalties will be applied for concessions granted in 2009 and thereafter.

The foregoing penalties and fines are not applicable to mining concessions granted by the government through private investment promotion initiatives, which will be subject to
the minimum production and investment levels set forth in such contracts.

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 In addition to the payment of the annual concession fee and the penalty, holders of mining concessions must, pursuant to the Mining Royalty Law, pay a royalty for the
exploitation of metallic and non-metallic resources. Prior to the amendment of the Mining Royalty Law described below, the amount of the royalty was determined on a monthly basis.
For those minerals with an international market price (gold, silver, copper, zinc, lead and tin), the amounts were computed by applying the rates to the value of the concentrate or its
equivalent, according to the applicable international market price. The historic rate scales were established in the Mining Royalty Law’s regulations as shown in the following table:

Annual sales
(in millions of US$) Rate
Up to 60 1%
Between 60 and up to 120 2%
More than 120 3%

In case of minerals without an international reference market price (minerals other than gold, silver, copper, zinc, lead and tin), the mining royalty amounted to 1% of the value
of the final product obtained from the mineral separation process, net of any costs incurred in the mineral separation process (componente minero).

However, the Mining Royalty Law was amended on September 29, 2011 to increase the tax payable on metallic and non-metallic mineral resources. Effective October 1, 2011,
the royalty for the exploitation of metallic and non-metallic resources is payable on a quarterly basis in an amount equal to the greater of (i) an amount determined in accordance with the
following statutory scale of tax rates based on a company’s operating profit margin and applied to the company’s operating profit, as adjusted by certain non-deductible expenses, and
(ii) 1% of a company’s net sales, in each case, during the applicable quarter. The royalty rate applied to the company’s operating profit is based on its operating profit margin according
to the following statutory scale of rates:

Applicable Rate
Operating Margin (%)
0% - 10% 1.00
10% - 15% 1.75
15% - 20% 2.50
20% - 25% 3.25
25% - 30% 4.00
30% - 35% 4.75
35% - 40% 5.50
40% - 45% 6.25
45% - 50% 7.00
50% - 55% 7.75
55% - 60% 8.50
60% - 65% 9.25
65% - 70% 10.00
70% - 75% 10.75
75% - 80% 11.50
More than 80% 12.00

Mining royalty payments will be deductible for income tax purposes in the fiscal year in which such payments are made.

We believed that certain portions of the regulations of the Mining Royalty Law were unconstitutional, because they impose a mining royalty tax on non-mining activities. For
instance, for cement companies, the amended Mining Royalty Law and its regulations established that the mining royalty tax was calculated based on the total operating profit or net
sales, as opposed to operating profit or net sales attributable exclusively to mining products, such as limestone, used to produce cement. Accordingly, in December 2011, we filed a
claim to declare that the mining royalty tax applicable for the exploitation of non-metallic mining resources be calculated based on the value of the final product obtained from the
mineral separation process, net of any costs incurred in the mineral separation process (“componente minero”).

In November 2013, the Peruvian Constitutional Court affirmed the constitutional challenge we filed against the new regulation of the Mining Royalty Law, in a final and
unappealable ruling, on the grounds that the new regulation violates the constitutional right of property, as well as the principles of legal reserve and proportionality. Therefore, the new
regulation is rendered inapplicable to our operation. As a result, we will continue to use as a basis for the calculation of the mining royalty the value of the concentrate or mining
component, and not the value of the product obtained from the industrial or manufacturing process.

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 Finally, holders of mining concessions are required at the beginning of their operations to submit a mining closure plan that must contain a description of the steps to restore the
areas and facilities of each mining operation area to pre-mining condition. Holders of mining concessions are required to secure completion of the restorative measures by means of the
following guarantees: (i) banking guarantee or credit insurance; (ii) cash guarantees; (iii) trusts; or (iv) those indicated in the Peruvian Civil Code.

In August 2021, Law 31347 was approved. This Law amended the Mine Closure Law (Law 28090), specifying aspects such as administrative and oversight powers, the
opportunity for presentation and approval of applicable guarantees and periodic reports to be presented to various authorities, among others.

As of the date of this annual report, we primarily owned non-metallic mining concessions and limited metallic mining concessions with respect to iron. Substantially all of our
concessions were granted prior to 2008. Our mining rights and concessions are in full force and effect under applicable Peruvian laws. We believe that we are in compliance in all
material respects with the terms and requirements applicable to our mining rights and concessions.

Production Process

The cement production process along with other manufacturing activities are governed by General Industry Law (Ley General de Industrias), Law No. 23407, published in El
Peruano on May 29, 1982, which establishes basic rules that promote and regulate activities in the manufacturing industry. The Ministry of Production is vested with authority to
promote private investments in connection with industrial, processing and manufacturing activities, the surveillance of sustainable exploitation of natural resources (except for those
extractive activities involving primary transformation of natural products), the protection of the environment, and the supervision of the quality of manufactured products. All industrial
companies are subject to the General Industry Law and its regulations to the extent that the company’s gross income is primarily derived from industrial activities. Pursuant to Supreme
Decree No. 009-2011-MINAM, the supervisory and monitoring functions of the Ministry of Production were transferred to the OEFA in 2013.

Technical Regulation on Hydraulic Cement

On January 21, 2022, the Government published the Supreme Decree No. 1-2022-PRODUCE, which approves the Technical Regulation on Hydraulic Cement Used in
Buildings and Constructions in General, allowing the verification of compliance with the minimum safety requirements of cement and preventing and minimizing possible material
damage as well as possible losses of human lives. The Regulation will enter into force 6 months after its publication, a period in which all the parties involved (public entities, national
manufacturers, importers, laboratories, chain of supply, among others) must adapt their protocols to comply with the provisions contained therein.

This regulation was enacted to correct and avoid possible unfair competition practices, considering that the commercialization of cement that do not meet the minimum safety
requirements generates negative effects on those manufacturers and importers that bear the costs for the implementation of the minimum product safety requirements; which creates an
imbalance in market competition.

Additionally, the inadequate storage of cement makes cement to lose its physical and chemical properties. The commercialization of such products -that do not meet the
minimum requirements of security- produces negative effects on final consumers and prevents them from acquiring safe cement. In case of imports, well-managed cement has a useful
life of up to three months but if transported in unsuitable conditions it can be damaged.

Environmental Regulations

Industrial companies and particularly cement companies are required to comply with several environmental regulations. Pursuant to Article 50 of Legislative Decree No. 757,
the competent environmental authority is that corresponding to the activity of the company which generates the higher gross annual income. For that reason, the environmental authority
that monitors our operations, considering that cement production represents the highest proportion of our gross profit, is the Ministry of Production.

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 The Environmental Regulations for Manufacturing Industries (Reglamento de Protección Ambiental para el Desarrollo de Actividades de la Industria
Manufacturera—Supreme Decree No. 019-97-ITINCI, or the “Environmental Regulations”), set forth different environmental obligations depending on the date of commencement of
the subject company’s industrial activities. Thus, companies with industrial cement activities operational at the time these regulations entered into force (September 1997) were obliged
to submit an Environmental Adaptation Management Plan (Programa de Adecuación y Manejo Ambiental, or “PAMA”) to the Ministry of Production; while companies with industrial
activities starting from that date onwards are obliged to submit either an environmental impact assessment or an environmental impact declaration depending on the level of risk and the
impact of their activities on the environment. Furthermore, the Environmental Regulations establish that the Ministry of Production may require a mining closure plan (as an independent
environmental assessment) with environmental measures that all companies must comply with before closing their operations to prevent any negative effects on the environment.

With regard to air emissions and wastewater discharges, the Ministry of Production has adopted legally binding environmental quality standards (Limites Máximos Permisibles,
or “LMPs”) for cement industries (approved by Supreme Decree No. 001-2020-MINAM). These standards are legally enforceable and all cement industry operations are required to
comply with them.

A violation of the Environmental Regulations is subject to different types of administrative sanctions, as determined in the Environmental Sanctions Regime of the Ministry of
Production (Régimen de Sanciones e Incentivos del Reglamento de Protección Ambiental para el Desarrollo de Actividades de la Industria Manufacturera—Supreme Decree No. 025-
2001-ITINCI), including warnings notices; fines of up to 600 UIT (S/2,640,000); restrictions, suspensions or cancellation of the authorization or concession; and total or partial closing
of the industrial facilities. The type of sanction imposed ultimately depends on the seriousness of the violation. Although the environmental competent authority for industrial activities is
the Ministry of Production, other government agencies may impose fines in case of non-compliance with applicable permits.

By Directing Council Resolution No. 023-2013-OEFA/CD, of the Organismo de Evaluación y Fiscalización Ambiental (the Environmental Monitoring and Enforcement
Agency or “OEFA”), OEFA assumes the functions of monitoring, supervision, control and sanctioning of environmental matters in the Cement Sector of the Manufacturing Industry, of
the Industrial Subsector of the Ministry of Production - PRODUCE.

In 2016, by Ministerial Resolution No. 201-2016-MINAM, the “National Protocol of Continuous Emission Monitoring Systems – CEMS” was approved. Its objective is to
standardize the process of continuous monitoring of polluting gases and particles emitted into the atmosphere by manufacturing activities. It establishes the technical criteria for the
selection of continuous monitoring methodologies, as well as the location of the monitoring points, the operation of the equipment and the calibration tests required for the assurance of
the quality of the measurements.

By Ministerial Resolution No. 191-2016-MINAM, the “National Plan for the Integral Management of Solid Waste - PLANRES 2016-2024” was approved. It establishes among
other things, obligations to managers regarding the management of non-municipal solid waste, as well as the modification of the environmental studies in case it is planned to carry out
co-processing.

On January 25, 2022, Supreme Decree No. 003-2022-MINAM was published, declaring the climate emergency of national interest and providing guidelines and priority actions
for mitigation and adaptation to climate change.

Prior Consultation with Local Indigenous Communities

On September 7, 2011, Peru enacted Law No. 29785, Prior Consultation Right of Local Indigenous Communities. The law was enacted in order to implement Convention No.
169 of the International Labor Organization on Local Indigenous Communities in Independent Countries, previously ratified by Peru through Legislative Decree No. 26253. This law,
which became effective on December 6, 2011, establishes a prior consultation procedure to be undertaken by the Peruvian government in favor of local indigenous communities, whose
collective rights may be directly affected by new legislative or administrative measures, including the granting of new mining concessions. A regulation implementing this law was
approved on April 3, 2012, by Supreme Decree No. 001-2012-MC, which defines the local indigenous communities that are entitled to the prior consultation rights and establishes the
different stages that comprise the prior consultation procedure.

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 Consultation procedures for mining and processing concessions are carried out by the MEM prior to the granting of a new processing concession.

According to the recent practice of the Geologic Institute of Mining and Metallurgy (Instituto Geológico Minero Metalúrgico), the granting of mining concessions does not
qualify as an “administrative measure” that potentially affects the rights of indigenous people because it does not grant per se a right to explore and exploit mineral deposits.
Accordingly, the granting of mining concessions has not been included among measures that require consultation procedures with indigenous people. According to Ministerial
Resolution No. 003-2013-MEM-DM, the MEM has established that consultation procedures are applicable prior to the commencement of: (i) exploration activities (Autorización de
inicio de actividades de exploración); (ii) exploitation activities (Autorización de inicio o reinicio de las actividades de desarrollo, preparación y explotación - incluye plan de minado y
botaderos); and (iii) processing concessions (otorgamiento de concesión de beneficio).

Local indigenous communities do not have a veto right; upon completion of this prior consultation procedure, the Peruvian government can discretionarily approve or reject the
applicable legislative or administrative measure. In addition, any sale, lease or other act of disposal of surface land owned by local indigenous communities is subject to the approval of
an assembly composed of the members of such communities according to the following rules:

● for local indigenous communities located on the coast, approval of not less than 50% of members attending the assembly is required; and

● for local indigenous communities located in the highlands and the Amazon region, approval of at least 2/3 of all members attending the assembly is required.

Permits and Licenses

Mining Concessions

According to the General Mining Law, a mining concession is required in order to extract mineral resources needed to produce cement. The mining concession grants the right
to explore and exploit the mineral resources located in a solid of indefinite depth, limited by the vertical plane corresponding to the sides of square, rectangle or polygon referred to by
the Universal Transversal Mercator coordinates. The Geological Mining and Metallurgical Institute (Instituto Geológico Minero y Metalúrgico) is in charge of managing the procedure
of granting mining concessions, which includes the receipt of the request, the granting and the termination of mining concessions.

Explosives.

Mining concessionaires are required to obtain the following permits to operate and store explosives:

● Certificate of Mining Operation (Certificado de Operación Minera), granted by the MEM;

● Semiannual Authorization for Use of Explosives, granted by the General Bureau of Explosives of the Ministry of Interior (Superintendencia Nacional de Control de
Servicios de Seguridad, Armas, Municiones y Explosivos de Uso Civil, or “SUCAMEC”);

● Manipulation of Explosives License for each individual that intends to handle explosives, granted by the SUCAMEC; and

● Explosive’s Warehouse Operation License, granted by SUCAMEC.

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Water and Wastewaters

To use water resources in cement industry activities, it is necessary to obtain a water right granted by the Water Management Authority (Autoridad Nacional del Agua, or
“ANA”) prior to the use of underground or fresh water sources. If the proposed activities will generate domestic or industrial wastewaters, which will be discharged into natural water
sources or soil, authorization from ANA is required, with a favorable opinion of the General Bureau of Environmental Health (Dirección General de Salud Ambiental, or “DIGESA”).

Hazardous Waste

Hazardous waste generated as a consequence of cement production activities must be disposed of in specialized landfills. The transportation of solid waste outside the limits of
the industrial complex must be conducted exclusively through specialized companies registered with DIGESA and MINAM. Industries are free to contract with an EO-RS (a company
that provides solid waste services such as transportation, treatment or disposal) or with an EC-RS (a company that carries out commercialization activities aiming at the reuse of solid
waste). Yet in order to limit their liability in case of environmental harm, industries must make sure the EO-RS and EC-RS they retain count with all necessary permits to collect,
transport and dispose hazardous wastes.

Chemical Feedstock

The commercialization, transportation and use of controlled chemical feedstock (Insumos Químicos y Productos Fiscalizados, or “IQPF”) is restricted, because of their potential
use in the production of illegal drugs or controlled substances. Companies that require an IQPF must obtain an IQPF User Certificate (Certificado de Usuario de IQPF) from the General
Bureau of Chemical Feedstock of the Ministry of Interior (Unidad Antidrogas de la Policía Nacional del Perú, or “DIRANDRO”). Companies such as ours are also required to register
with the Ministry of Production any IQPF activities they plan to carry out (Registro Único para el Control de IQPF).

Fuel Storage

Any company that purchases fuels for its own activities and has facilities to receive and store fuel with a minimum capacity of one meter cubed (264.170 gallons) is required to
(i) receive from the Mining and Energy Investment Supervision Body (Organismo Supervisor de la Inversión en Energía y Minería, or “OSINERGMIN”) prior permission to build and
operate said installations, and (ii) be registered with the Registry of Direct Fuel Consumers, in order to obtain the SCOP Code (Código del Sistema de Control de Órdenes de Pedido)
necessary to purchase fuel.

Cultural Heritage Protection

If the design and development of cement industry activities involves the removal of topsoil, a Certificate of Non-Existence of Archaeological Ruins (Certificado de Inexistencia
de Restos Arqueológicos, or “CIRA”) from the Ministry of Culture (Ministerio de Cultura) with respect to the area under construction must be obtained. The CIRA will either certify
that on the surface of the evaluated area no archaeological sites or features were discovered, or will identify their exact location and extent in order to implement precautionary measures
to protect the archaeological artifact. The CIRA is valid for an unlimited period, but will become void should any archaeological artifacts be accidentally discovered during the
construction works or due to any natural cause. In such an instance, the company must stop the construction work immediately and notify the Ministry of Culture. Failure to stop the
construction work may generate civil and criminal liabilities. Under certain exceptional circumstances, Peruvian legislation allows the removal of archeological artifacts when the area is
required for development of projects that are of national interest.

Labor Regulations

Peruvian legislation allows hiring employees through: (i) a fixed-term contract, (ii) a contract for an indefinite duration; or (iii) a contract for part-time employment.

The minimum wage established in Peru is S/1,025 per month. Peruvian labor legislation establishes a maximum 8-hour work day or 48 hours per week for employees older than
18 years. For overtime, employers must pay at least an additional 25% and an additional 35% over the regular hourly wage for the first two hours and for any additional hours,
respectively. Employees are entitled to a minimum rest of 24 consecutive hours per week.

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 Regardless of the type of employment contract, pursuant to Peruvian law full-time employees are entitled to receive:

(i) an additional 10% of the minimum wage, provided that they are responsible for (a) one or more children under the age of 18 or (b) persons who are up to 24 years
of age if they are pursuing higher education,

(ii) two additional months’ salary per year, one in July and one in December (pursuant to Law No. 29351, said payments were not subject to any social contribution,
except for Income Tax; consequently, until December 2015, employers paid directly to their employees as an Extraordinary Bonus, the amount of the contribution to the Social
Health Insurance (ESSALUD) for such payments, equivalent to 9% of the bonus paid),

(iii) thirty calendar days of annual paid vacation per year,

(iv) life insurance, since the first day at work,

(v) a compensation for years of service (CTS) equal to 1.16% of a monthly salary and is deposited each year in May and November, provided they work an average of
at least four hours per day for the same employer,

(vi) benefits from the Peruvian Social Health Insurance (ESSALUD) to which employers must contribute a rate equivalent to 9% of their employees’ income, and

(vii) a percentage of the company’s annual income net of taxes (10% in the case of income derived from industrial cement operations, and 8% in the case of income
derived from our mining or commercial activities), provided the company has twenty or more employees.

On June 25, 2021, Law 31246 was published, which modified the current Law on Safety and Health at Work, to guarantee the right of workers to safety and health at
work in the face of epidemiological and health risk.

Free and Fair Competition Protection

In Peru, businesses are generally not required to receive the prior authorization of the antitrust authority, which in Peru is INDECOPI. However, in order to promote economic
efficiency and protect consumers, anti-competitive behavior is subject to sanctions under applicable law. Behavior that is prohibited according to national law includes: (i) the abuse of a
dominant market position, (ii) concerted horizontal practices and (iii) concerted vertical practices. Moreover, under the Unfair Competition Law it is illegal to act in a way that may
hinder the competitive process. An unfair behavior is one that is objectively contrary to the entrepreneurial good faith, ethical behavior and efficiency in a market economy.

On January 7, 2021, Law No. 31112, Law that establishes the Prior Control of Business Concentration Operations (the “Law”), was published in the Official Gazette “El
Peruano”, which entered into force on June 14, 2021, together with its Regulations, approved by Supreme Decree No. 039-2021-PCM. This Law establishes a system of prior control of
business concentration operations in order to promote effective competition and economic efficiency in the markets for the welfare of consumers.

C. Organizational Structure

Cementos Pacasmayo S.A.A. is part of the Hochschild Group. As of March 31, 2022, Eduardo Hochschild, directly and indirectly, owned and controlled 38.32% of the shares
of Hochschild Mining plc. Through ASPI, as of that same date Eduardo Hochschild, directly and indirectly, owned and controlled 50.01% of the outstanding common shares of
Cementos Pacasmayo.

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 All of our operating subsidiaries are incorporated in Peru. The following chart sets forth our simplified corporate structure, operating subsidiaries only, as of the date of this
annual report.

The following is a brief description of the principal activities of our consolidated subsidiaries.

● Cementos Selva S.A. is engaged in the production and marketing of cement and other construction materials in the northeast region of Peru. It also owns all of the equity
shares of Dinoselva Iquitos S.A.C. (a cement and construction materials distributor in the north of Peru, which also produces and sells precast, cement bricks and ready-mix
concrete) and in Acuícola Los Paiches S.A.C. (a fish farm entity).

● Distribuidora Norte Pacasmayo S.R.L. is mainly engaged in selling cement produced by the Company. Additionally, it produces and sells precast, cement bricks and ready-
mix concrete.

● Empresa de Transmisión Guadalupe S.A.C. is mainly engaged in providing electric energy transmission services to the Company.

Other immaterial, non-operating subsidiaries

● Calizas del Norte S.A.C. (in liquidation). On May 31, 2016, the Company decided to liquidate the subsidiary Calizas del Norte S.A.C.

● Salmueras Sudamericanas S.A. (“Salmueras”) was engaged in the exploration of a brine project located in the northern region of Peru. In December 2017, the Company
decided not to continue with the activities related to this project, as explained in note 1.4 to our annual audited consolidated financial statements included in this annual
report. As of December 31, 2017, Quimpac S.A. held a participation of 25.1% of the common shares of this entity. Quimpac left Salmueras Sudamericanas S.A. during
2018 and as consequence, as of December 31, 2021 and 2020, Quimpac does not have common shares of this entity.

● Soluciones Takay S.A.C. is a platform that connects families that want to build with certified professionals.

● 150Krea Inc. seeks to develop a business in the United States relating to digital innovation in the construction industry.

D. Property, Plant and Equipment

Properties

We own our headquarters office in Lima, Peru, at Calle La Colonia 150, Urbanización El Vivero, Surco. We also own our plants, warehouses, transportation facilities and the
office space at our production facilities, including our workers’ facilities occupying approximately 50,000 square meters at our Pacasmayo facility and a warehouse occupying
approximately 25,000 square meters at the Salaverry port facility.

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Area of Operation

We own and operate three cement production facilities. Our largest facility is located in the city of Pacasmayo, department of La Libertad, approximately 667 kilometers north
of Lima. The second facility is located in the city of Piura, department of Piura, approximately 330 kilometers north of Pacasmayo. This facility started cement production in September
2015. We also own and operate a smaller cement facility, located in the city of Rioja, department of San Martín, approximately 468 kilometers east of the Panamericana Norte highway.
From our Pacasmayo and Piura facilities we supply cement principally to the coastal and highland regions of northern Peru, including the cities of Piura, Chiclayo, Cajamarca, Trujillo
and Chimbote. From our Rioja facility, we supply cement to the northeastern region of Peru, including the cities of Moyobamba, Tarapoto, Loreto, among others.

Pacasmayo Facility

As of December 31, 2021, our Pacasmayo facility had 9 kilns, which produce clinker (one of which is also equipped to produce quicklime), and an additional Waelz rotary kiln
that produces quicklime. Additionally, our facility has a primary and secondary cone crusher located near our Acumulación Tembladera limestone quarry. The main crusher has installed
crushing capacity of 800 metric tons per hour and the secondary crusher has installed crushing capacity of 170 metric tons per hour. Our Pacasmayo facility operates with three
horizontal rotary kilns with total installed annual clinker production capacity of 1,034,880 metric tons and six vertical shaft kilns with total installed annual clinker production capacity
of 465,120 metric tons. The total installed annual clinker production capacity at our Pacasmayo facility is 1.5 million metric tons. Our Pacasmayo facility also features three cement
finishing mills with installed annual cement production capacity of 2.9 million metric tons. Our Pacasmayo facility is also equipped with silos containing storage capacity for 26,700
metric tons of cement.

As of December 31, 2021, our Pacasmayo facility had installed production capacity of approximately 240,000 metric tons of quicklime per year, including the annual installed
capacity of one of our clinker kilns and our Waelz rotary kiln, which are equipped to also produce quicklime.

Piura Facility

Annual installed production capacity of our Piura plant is 1.6 million metric tons of cement and 1 million metric tons of clinker. Our Piura plant operates with a horizontal kiln
with installed clinker production capacity of 1 million metric tons per year, as well as a cement mill with installed cement production capacity of 1.6 million metric tons per year. Our
Piura plant also has two storage silos with storage capacity of 240,000 metric tons of cement.

During 2020, we invested in the construction of a new silo, with a capacity of 1,300 metric tons, which will reduce transportation costs as we will be able to serve the areas of
influence from the Piura plant.

47
Rioja Facility

Annual installed production capacity of our Rioja plant is 440,000 metric tons of cement and 280,000 metric tons of clinker.

Our Rioja facility currently operates with a small cone crusher and four vertical shaft kilns with total annual installed clinker production capacity of 280,000 metric tons and
three cement finishing mills with total annual installed cement production capacity of 440,000 metric tons. Our Rioja plant is also equipped with silos with storage capacity of 1,750
metric tons of cement.

Ready-Mix Concrete Facilities

We also have 22 fixed and mobile ready-mix concrete and precast facilities located in the northern cities of Chimbote, Trujillo, Chiclayo, Piura, Cajamarca, Pacasmayo,
Tarapoto, Iquitos and Moyobamba among others. These facilities allow us to supply ready-mix concrete and precast materials to small, medium and large construction projects
throughout the entire northern region of Peru. As of December 31, 2021, our ready-mix operations had 191 mixer trucks, 34 concrete pumps and 2 pavers available to deliver ready-mix
concrete.

Capacity and Volumes

The table below sets forth our clinker, cement and quicklime production capacity and volumes in our Pacasmayo and Rioja facilities for the periods indicated.

As of and for the year ended December 31,

2021 2020 2019
(in thousands of
metric tons,
except Utilization Utilization Utilization
percentages) Capacity Production rate(1) Capacity Production rate(1) Capacity Production rate(1)
Cement:
Pacasmayo
facility 2,900 1,970 67.9% 2,900 1,307 45.1% 2,900 1,368 47.2%
Piura facility 1,600 1,324 82.8% 1,600 1,020 59.8% 1,600 954 63.8%
Rioja facility 440 338 76.8% 440 263 63.7% 440 301 68.4%
Total 4,940 3,632 73.5% 4,940 2,590 52.4% 4,940 2,623 53.1%
Clinker:
Pacasmayo
facility 1,500 879 58.6% 1,500 712 47.5% 1,500 864 57.6%
Piura facility 1,000 893 89.3% 1,000 566 56.6% 1,000 758 75.8%
Rioja facility 280 264 94.3% 280 198 70.9% 280 231 82.5%
Total 2,780 2,036 73.2% 2,780 1,476 53.1% 2,780 1,853 66.6%
Quicklime(2):
Pacasmayo
facility 240 69 28.8% 240 55 22.7% 240 74 30.8%

(1) Utilization rate is calculated by dividing production for the specified period by installed capacity.
(2) Our Rioja facility does not produce quicklime. In addition, one of our clinker kilns and our Waelz rotary kiln are equipped to produce quicklime.

48
Summary Disclosure (229.1303)

Map of Mining Concessions of Cementos Pacasmayo S.A.A. and subsidiaries.

The following map of Peru shows the location of the total (material and non-material) Peruvian mining concessions of Cementos Pacasmayo S.A.A. and subsidiaries. The mining
concessions are located in Piura, Lambayeque, Cajamarca, Amazonas, Ica, Cusco, San Martin, La Libertad and Ancash Region.

Figure 1 General map of the mining concessions of Cementos Pacasmayo S.A.A. and subsidiaries

General description of mining properties and operations

Cementos Pacasmayo has mining concessions in Peru which were obtained through the administrative procedure before the Instituto Geológico, Minero y Metalúrgico (INGEMMET).
Mineral concessions are classified according to the type of ore (i.e., metallic and non-metallic).

Cementos Pacasmayo has mining concessions in exploration, development and production stage.

49
The complete list of Cementos Pacasmayo’s mining concessions is presented in Table 4.

Table 1 shows the main mining concessions that are in the production and development stage, including relevant information for each quarry.

Type and
Location of the amount of Stage of the Beneficiation Production Production Production
Name of mining mining ownership mining Key condition Type of mine / plant and other 2021 2020 2019
concession concession interests Operator Surface (Has) concession Permits of permit material installations (Ton) (Ton) (Ton)
San Martin
ACUMULACION
CAJAMARCA 100 Contratistas 3391 Production Yes EIA (1) and Open Pit /
Mining facilities 1,629,895 837,029 1,547,002
TEMBLADERA others Limestone
Generales SA
(1) Open Pit /
ECM Posada EIA and
VIRRILA 3 (2) PIURA 100
Perú S.A.C.
600 Production Yes Calcareous Mining facilities 38,186 47,476 400,857
others material
Open Pit /
ECM Posada EIA (1) and
VIRRILA 10 (2) PIURA 100
Perú S.A.C.
1000 Production Yes Calcareous Mining facilities 342,621 668,948 918,879
others material
Open Pit /
ECM Posada EIA (1) and
VIRRILA 11(2) PIURA 100
Perú S.A.C.
900 Production Yes Calcareous Mining facilities 365,690 32,298 155,402
others material
(1) Open Pit /
ECM Posada EIA and
VIRRILA 15 (2) PIURA 100
Perú S.A.C.
600 Production Yes Calcareous Mining facilities 673,677 0 89,025
others material
(1) Open Pit /
ECM Posada EIA and
VIRRILA 19(2) PIURA 100
Perú S.A.C.
1000 Production Yes Calcareous No 4,422 0 0
others material
(1)
CALIZAS Cemento Selva EIA and Open Pit /
SAN MARTIN 100 400 Production Yes No 377,702 208,935 400,520
TIOYACU S.A others Limestone

(1) Environmental Impact Study (EIA)

(2) Virrilá 3, Virrilá 10, Virrilá 11, Virrilá 15 and Virrilá 19 belong to the UEA Virrilá and they are considered as material properties in production stage.

Summary of Mineral Resources and Mineral Reserves

The following tables summarize the mineral resources and reserves of the mining concessions of Cementos Pacasmayo and subsidiaries.

Table 2 Summary of mineral resources of Cementos Pacasmayo S.A.A. and subsidiaries as of December 31, 2021.

Measured mineral Indicated mineral Measured + indicated Inferred mineral

resources resources mineral resource resources
Amount Grades/ Amount Grades/ Amount Grades/ Amount Grades/
(Million Qualities (Million Qualities (Million Qualities (Million Qualities
Tonnes) (% CaO) Tonnes) (% CaO) Tonnes) (% CaO) Tonnes) (% CaO)
Limestone:
Acumulación Tembladera 128.29 49.31 37.64 50.23 165.93 49.52 74.24 50.34
Calizas Tioyacu 0 0 0 0 0 0 19.2 45.61
Calcareous material:
UEA Virrila Total 21.1 48.50 29.2 48.78 50.3 48.66 3.9 46.42

* The information (prices, costs and economic aspects) assumed for the Mineral Resources estimation in the economic model can be found in the Cementos Pacasmayo S.A.A.
Technical Report Summary (TRS) set forth in Exhibits 96.1 (Tembladera quarry) and 96.2 (Virrila quarry) to this annual report. No economic evaluation was performed for the
Tioyacu quarry because it only has inferred resources.

50
 Table 3 Summary of mineral reserves of Cementos Pacasmayo S.A.A. and subsidiaries’ properties at December 31, 2021.

Proven mineral Probable mineral Total mineral

reserves reserves reserves
Amount Grades/ Amount Grades/ Amount Grades/
(Million Qualities (Million Qualities (Million Qualities
Tonnes) (%CaO) Tonnes) (%CaO) Tonnes) (%CaO)
Limestone:
Acumulación Tembladera 66.52 49.75 10.47 49.64 76.99 49.74
Calizas Tioyacu 6.5 50.30 4.8 47.29 11.3 49.03
Calcareous material:
UEA Virrilá Total 42.4 49.99 2.9 47.77 45.3 49.85

* The information (prices, costs and economic aspects) assumed for the Mineral Reserves estimation in the economic model can be found in the Cementos Pacasmayo S.A.A. and
Cementos Selva S.A. Technical Report Summary (TRS) set forth in Exhibits 96.1 (Tembladera quarry), 96.2 (Virrila quarry) and 96.3(Tioyacu quarry) to this annual report.

51
 Table 4. List of Cementos Pacasmayo and subsidiaries mining concession by region.

Type and Beneficiation

Location of amount of Stage of the Type of plant and Production Production Production
Name of mining the mining ownership Surface mining mine / other 2021 2020 2019
concession concession interests Operator (Has) concession Permits material installations (Ton) (Ton) (Ton)
ESCALERA 2009 ANCASH 100 NA 900 Exploration No Non Metallic No 0 0 0
HUANCHACAYOC ANCASH 100 NA 400 Exploration No Non Metallic No 0 0 0
LOS SANTOS 1 ANCASH 100 NA 500 Exploration No Non Metallic No 0 0 0
LOS SANTOS 2 ANCASH 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOS SANTOS 3 ANCASH 100 NA 800 Exploration No Non Metallic No 0 0 0
LOS SANTOS 4 ANCASH 100 NA 1000 Exploration No Non Metallic No 0 0 0
MACATE 2011 ANCASH 100 NA 300 Exploration No Non Metallic No 0 0 0
MACATE 2012-1 ANCASH 100 NA 600 Exploration No Non Metallic No 0 0 0
PAMPA CONDOR ANCASH 100 NA 200 Exploration No Non Metallic No 0 0 0
San Martin
ACUMULACION Contratistas Open Pit / Mining
CAJAMARCA 100 3391 Production Yes 1,629,895 837,029 1,547,002
TEMBLADERA Generales Limestone facilities
SA
CELENDIN 11 CAJAMARCA 100 NA 800 Exploration No Non Metallic No 0 0 0
CELENDIN 12 CAJAMARCA 100 NA 100 Exploration No Non Metallic No 0 0 0
CELENDIN 13 CAJAMARCA 100 NA 500 Exploration No Non Metallic No 0 0 0
CELENDIN 14 CAJAMARCA 100 NA 400 Exploration No Non Metallic No 0 0 0
CERRO
MEMBRILLO CAJAMARCA 100 NA 600 Exploration No Non Metallic No 0 0 0
CERRO
QUEMADO CAJAMARCA 100 NA 1000 Exploration No Non Metallic No 0 0 0
CHILICO CAJAMARCA 100 NA 300 Exploration No Non Metallic No 0 0 0
CP 10 CAJAMARCA 100 NA 500 Exploration No Non Metallic No 0 0 0
CP 13 CAJAMARCA 100 NA 900 Exploration No Non Metallic No 0 0 0
CP 16 CAJAMARCA 100 NA 1000 Exploration No Non Metallic No 0 0 0
CP 17 CAJAMARCA 100 NA 800 Exploration No Non Metallic No 0 0 0
CP 23 CAJAMARCA 100 NA 200 Exploration No Non Metallic No 0 0 0
CP 24 CAJAMARCA 100 NA 200 Exploration No Non Metallic No 0 0 0
CP 3 CAJAMARCA 100 NA 500 Exploration No Non Metallic No 0 0 0
CP 31 CAJAMARCA 100 NA 800 Exploration No Non Metallic No 0 0 0

52
 CP 33 CAJAMARCA 100 NA 300 Exploration No Non Metallic No 0 0 0
CP 37 CAJAMARCA 100 NA 1000 Exploration No Non Metallic No 0 0 0
CP 38 CAJAMARCA 100 NA 900 Exploration No Non Metallic No 0 0 0
CP 4 CAJAMARCA 100 NA 600 Exploration No Non Metallic No 0 0 0
CP 40 CAJAMARCA 100 NA 700 Exploration No Non Metallic No 0 0 0
CP 8 CAJAMARCA 100 NA 600 Exploration No Non Metallic No 0 0 0
CP 9 CAJAMARCA 100 NA 800 Exploration No Non Metallic No 0 0 0

CUNYAC CAJAMARCA 100 NA 200 Production Yes Pozzolana No 0 0 0

CUNYAC 2 CAJAMARCA 100 NA 600 Exploration No Non Metallic No 0 0 0
CUNYAC 3 CAJAMARCA 100 NA 500 Exploration No Non Metallic No 0 0 0
CUNYAC 4 CAJAMARCA 100 NA 999 Exploration No Non Metallic No 0 0 0
CUNYAC 5 CAJAMARCA 100 NA 874 Exploration No Non Metallic No 0 0 0
CUNYAC 6 CAJAMARCA 100 NA 599 Exploration No Non Metallic No 0 0 0
CUNYAC 6A CAJAMARCA 100 NA 200 Exploration No Non Metallic No 0 0 0
CUNYAC 6B CAJAMARCA 100 NA 199 Exploration No Non Metallic No 0 0 0
CUNYAC 7 CAJAMARCA 100 NA 900 Exploration No Non Metallic No 0 0 0
CUNYAC 8 CAJAMARCA 100 NA 600 Exploration No Non Metallic No 0 0 0
EL CHAMAN CAJAMARCA 100 NA 750 Exploration Yes Non Metallic No 0 0 0
HUAPAL 1 CAJAMARCA 100 NA 100 Exploration No Non Metallic No 0 0 0
LAJAS 2 CAJAMARCA 100 NA 300 Exploration No Non Metallic No 0 0 0
PAMPA
CAJAMARCA 100 NA 600 Exploration No Non Metallic No 0 0 0
GRANDE 1
PAMPA
CAJAMARCA 100 NA 500 Exploration No Non Metallic No 0 0 0
GRANDE 2
PAMPA
CAJAMARCA 100 NA 100 Exploration No Non Metallic No 0 0 0
MOLINA
PARGO 1 CAJAMARCA 100 NA 700 Exploration No Non Metallic No 0 0 0
PARGO 2 CAJAMARCA 100 NA 300 Exploration No Non Metallic No 0 0 0
PULULO CAJAMARCA 100 NA 900 Exploration No Non Metallic No 0 0 0
SAYUNDO CAJAMARCA 100 NA 400 Exploration No Non Metallic No 0 0 0

53
 Non
SUNSET 11 CAJAMARCA 100 NA 400 Exploration No No 0 0 0
Metallic
Non
TIERRA BLANCA CAJAMARCA 100 NA 400 Exploration No No 0 0 0
Metallic
Non
YOMIRA I CAJAMARCA 100 NA 400 Exploration No No 0 0 0
Metallic
Non
CHAMO 1 CAJAMARCA / LA LIBERTAD 100 NA 800 Exploration No No 0 0 0
Metallic
Non
CP 11 CAJAMARCA / LA LIBERTAD 100 NA 900 Exploration No No 0 0 0
Metallic
Non
CP 12 CAJAMARCA / LA LIBERTAD 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
CP 34 CAJAMARCA / LA LIBERTAD 100 NA 200 Exploration No No 0 0 0
Metallic
Non
ELSANA 1 CAJAMARCA / LA LIBERTAD 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
CP 14 CAJAMARCA / LAMBAYEQUE 100 NA 900 Exploration No No 0 0 0
Metallic
Non
CP 39 CAJAMARCA / LAMBAYEQUE 100 NA 800 Exploration No No 0 0 0
Metallic
Non
TULLAL CAJAMARCA / LAMBAYEQUE 100 NA 500 Exploration No No 0 0 0
Metallic
CAJAMARCA / LAMBAYEQUE / LA Non
CP 15 100 NA 1000 Exploration No No 0 0 0
LIBERTAD Metallic
CAJAMARCA /
ELSANA 3 100 NA 900 Exploration No Metallic No 0 0 0
LA LIBERTAD
Non
ANTIMORO 5 CUSCO 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
HOYADA 2011 ICA 100 NA 800 Exploration No No 0 0 0
Metallic
Non
HOYADA 2012 ICA 100 NA 400 Exploration No No 0 0 0
Metallic
Anthracite
ALCENTRO2 LA LIBERTAD 100 NA 200 Exploration No No 0 0 0
Coal
ANA LUCIA M LA LIBERTAD 100 NA 400 Exploration No Metallic No 0 0 0
Non
CERRO CAÑA LA LIBERTAD 100 NA 700 Exploration No No 0 0 0
Metallic
Non
CP 1 LA LIBERTAD 100 NA 400 Exploration No No 0 0 0
Metallic
Non
CP 19 LA LIBERTAD 100 NA 400 Exploration No No 0 0 0
Metallic
Non
CP 2 LA LIBERTAD 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
CP 32 LA LIBERTAD 100 NA 100 Exploration No No 0 0 0
Metallic
Non
CP 5 LA LIBERTAD 100 NA 100 Exploration No No 0 0 0
Metallic
Anthracite
CP-28 LA LIBERTAD 100 NA 100 Exploration No No 0 0 0
Coal
Non
CP-29 LA LIBERTAD 100 NA 500 Exploration No No 0 0 0
Metallic

54
 CP-30 LA LIBERTAD 100 NA 400 Exploration No Metallic No 0 0 0
EL DIAMANTE LA LIBERTAD 100 NA 193 Exploration No Anthracite Coal No 0 0 0
ELSANA 2 LA LIBERTAD 100 NA 900 Exploration No Non Metallic No 0 0 0
MAGIA BLANCA LA LIBERTAD 100 NA 183 Exploration Yes Anthracite Coal No 0 0 0
MARTIN III LA LIBERTAD 100 NA 718 Exploration No Anthracite Coal No 0 0 0
MARTIN IV LA LIBERTAD 100 NA 100 Exploration No Anthracite Coal No 0 0 0
MARTIN V 300 LA LIBERTAD 100 NA 300 Exploration No Anthracite Coal No 0 0 0
MARTIN VI 300 LA LIBERTAD 100 NA 300 Exploration No Anthracite Coal No 0 0 0
MARTIN VII 50 LA LIBERTAD 100 NA 54 Development Yes Anthracite Coal Yes 0 0 0
MARTIN VIII LA LIBERTAD 100 NA 100 Exploration No Anthracite Coal No 0 0 0
NORTE 13 LA LIBERTAD 100 NA 79 Exploration No Non Metallic No 0 0 0
NORTE 17 LA LIBERTAD 100 NA 47 Exploration No Non Metallic No 0 0 0
NORTE 26 LA LIBERTAD 100 NA 799 Exploration No Non Metallic No 0 0 0
NORTE 51 LA LIBERTAD 100 NA 200 Exploration No Non Metallic No 0 0 0
NORTE 52 LA LIBERTAD 100 NA 800 Exploration No Non Metallic No 0 0 0
NORTE 53 LA LIBERTAD 100 NA 300 Exploration No Non Metallic No 0 0 0
NORTE 54 LA LIBERTAD 100 NA 100 Exploration No Non Metallic No 0 0 0
NORTE 55 LA LIBERTAD 100 NA 300 Exploration No Non Metallic No 0 0 0
NORTE 57 LA LIBERTAD 100 NA 900 Exploration No Non Metallic No 0 0 0
NORTE 58 LA LIBERTAD 100 NA 600 Exploration No Non Metallic No 0 0 0
NORTE Nº 10 LA LIBERTAD 100 NA 159 Exploration No Non Metallic No 0 0 0
NORTE Nº 12 LA LIBERTAD 100 NA 79 Exploration No Non Metallic No 0 0 0
NORTE Nº 14 LA LIBERTAD 100 NA 50 Exploration No Non Metallic No 0 0 0
PAMPA COLORADA I LA LIBERTAD 100 NA 100 Exploration Yes Metallic No 0 0 0
PAMPA COLORADA II LA LIBERTAD 100 NA 200 Exploration No Metallic No 0 0 0
SAN MARCOS R.Q. LA LIBERTAD 100 NA 369 Exploration No Anthracite Coal No 0 0 0
SAN PEDRO 2 LA LIBERTAD 100 NA 300 Exploration No Non Metallic No 0 0 0
Open Pit / Clay
SEÑOR DE LOS MILAGROS DE Cementos Pacasmayo Mining
LA LIBERTAD 100 400 Production Yes and 100,371 35,576 171,697
PACASMAYO S.A.A. Facilities
Sand
CP 22 LAMBAYEQUE 100 NA 900 Exploration No Non Metallic No 0 0 0
CP 53 LAMBAYEQUE 100 NA 600 Exploration No Non Metallic No 0 0 0
GITANO 10 LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
GITANO 11 LAMBAYEQUE 100 NA 600 Exploration No Non Metallic No 0 0 0
GITANO 12 LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
MESONES 2 LAMBAYEQUE 100 NA 200 Exploration No Non Metallic No 0 0 0
PENCAL LAMBAYEQUE 100 NA 200 Exploration No Non Metallic No 0 0 0

55
 PENCAL 2 LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
SUNSET 10 LAMBAYEQUE 100 NA 800 Exploration No Non Metallic No 0 0 0
LAMBAYEQUE / LA
CP 21 100 NA 1000 Exploration No Non Metallic No 0 0 0
LIBERTAD
CAMPANQUIS 4 LORETO / AMAZONAS 100 No 1000 Exploration No Non Metallic No 0 0 0
CAMPANQUIZ 2 LORETO / AMAZONAS 100 NA 500 Exploration No Non Metallic No 0 0 0
CAMPANQUIZ 3 LORETO / AMAZONAS 100 NA 600 Exploration No Non Metallic No 0 0 0
Open Pit /
BAYOVAR Nº 4 PIURA 100 NA 22326 Production Yes Calcareous No 41,113 42,564 41,531
material
BELIZARIO D PIURA 100 NA 400 Exploration No Non Metallic No 0 0 0
BELIZARIO E PIURA 100 NA 300 Exploration No Non Metallic No 0 0 0
BELIZARIO J PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
CP 36 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
CP 42 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
CP 44 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
CP 45 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
CP 46 PIURA 100 NA 300 Exploration No Non Metallic No 0 0 0
CP 49 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
CP 50 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
CP CINCO-B PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
CP SEIS-A PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
CP SEIS-B PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
CP SIETE PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
DUNA 2012 - 4 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
DUNA 2012- 9 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
DUNA 2012-1 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
DUNA 2012-10 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
DUNA 2012-11 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
DUNA 2012-2 PIURA 100 NA 300 Exploration No Non Metallic No 0 0 0
DUNA 2012-3 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
DUNA 2012-5 PIURA 100 NA 500 Exploration No Non Metallic No 0 0 0
DUNA 2013-1 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
ILLESCAS 15 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
KOKIS 1 PIURA 100 NA 500 Exploration No Non Metallic No 0 0 0
KOKIS 2 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
KOKIS 3 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
KOKIS 4 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
KOKIS 5 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
KOKIS 6 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0

56
 KOKIS 7 PIURA 100 NA 1000 Exploration Yes Non Metallic No 0 0 0
LA PIEDRA PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LOBOS 69 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
LONGINOS 12 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 19 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 20 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 20 A PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 22 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 22-A PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 23 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LONGINOS 23A PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
PAREDONES PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
PAREDONES 10 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
PAREDONES 12 PIURA 100 NA 700 Exploration No Non Metallic No 0 0 0
PAREDONES 13 PIURA 100 NA 500 Exploration No Non Metallic No 0 0 0
PAREDONES 14 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
PAREDONES 15 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
PAREDONES 16 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
PAREDONES 18 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
PAREDONES 2 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
PAREDONES 3 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
PAREDONES 4 PIURA 100 NA 500 Exploration No Non Metallic No 0 0 0
PAREDONES 9 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
SOJO 4 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
SOJO 5 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
VIENTO 2014-1 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
VIENTO 2014-2 PIURA 100 NA 700 Exploration No Non Metallic No 0 0 0
ECM Open Pit /
Mining
VIRRILA 3 PIURA 100 Posada Perú 600 Production Yes Calcareous 38,186 47,476 400,857
facilities
S.A.C. material
ECM Open Pit /
Mining
VIRRILA 10 PIURA 100 Posada Perú 1000 Production Yes Calcareous 342,621 668,948 918,879
facilities
S.A.C. material
ECM Open Pit /
Mining
VIRRILA 11 PIURA 100 Posada Perú 900 Production Yes Calcareous 365,690 32,298 155,402
facilities
S.A.C. material
Calcareous
VIRRILA 12 PIURA 100 NA 700 Development Yes No 0 0 0
material
VIRRILA 13 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
VIRRILA 14 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
ECM Open Pit /
Mining
VIRRILA 15 PIURA 100 Posada Perú 600 Production Yes Calcareous 683,677 0 89,025
facilities
S.A.C. material

57
 Calcareous
VIRRILA 16 PIURA 100 NA 1000 Development Yes No 0 0 0
material
VIRRILA 17 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
VIRRILA 18 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
ECM Open Pit /
VIRRILA 19 PIURA 100 Posada 1000 Development Yes Calcareous No 4,422 0 0
Perú S.A.C material
Calcareous
VIRRILA 20 PIURA 100 NA 1000 Exploration Yes No 0 0 0
material
Calcareous
VIRRILA 21 PIURA 100 NA 1000 Exploration Yes No 0 0 0
material
Calcareous
VIRRILA 22 PIURA 100 NA 1000 Exploration Yes No 0 0 0
material
Calcareous
VIRRILA 23 PIURA 100 NA 200 Development Yes No 0 0 0
material
VIRRILA 4 PIURA 100 NA 400 Exploration No Non Metallic No 0 0 0
VIRRILA 6 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
VIRRILA 7 PIURA 100 NA 700 Exploration No Non Metallic No 0 0 0
VIRRILA 8 PIURA 100 NA 500 Exploration No Non Metallic No 0 0 0
VIRRILA 9 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
YAPATO 1 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
YAPATO 2 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
YAPATO 3 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
YAPATO 4 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
CP 51 PIURA / LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
CP 52 PIURA / LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
MAJAZ 2 SAN MARTIN 100 NA 500 Exploration No Non Metallic No 0 0 0
SM-123 SAN MARTIN 100 NA 400 Exploration No Non Metallic No 0 0 0
NORTE Nº 15 LA LIBERTAD 100 NA 199 Exploration No Non Metallic No 0 0 0
BAYOVAR 2011 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
CP 41 PIURA 100 NA 500 Exploration No Non Metallic No 0 0 0
CP 47 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
LA PROMESA 10 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LA PROMESA 11 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
CP 43 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
CP 48 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
ARCILLAS EL PAJONAL SAN MARTIN 100 NA 200 Exploration No Non Metallic No 0 0 0
Cemento Open Pit /
CALIZAS TIOYACU SAN MARTIN 100 400 Production Yes No 377,702 208,935 400,520
Selva S.A. Limestone
MOYOBAMBA 98 SAN MARTIN 100 NA 100 Exploration No Non Metallic No 0 0 0
Cemento Open Pit /
PAJONAL 2 SAN MARTIN 100 400 Production Yes No 72,272 46,057 57,129
Selva S.A. Clay
PAJONAL 3 SAN MARTIN 100 NA 800 Exploration No Non Metallic No 0 0 0

58
 Non
PAJONAL 4 SAN MARTIN 100 NA 300 Exploration No No 0 0 0
Metallic
Open Pit /
FILA LARGA 98 AMAZONAS 100 No 300 Production Yes No 0 0 1,000
Clay
Non
FILA LARGA 98 B AMAZONAS 100 NA 300 Exploration No No 0 0 0
Metallic
Non
RIOJA 1 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
RIOJA 2 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
RIOJA 3 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
RIOJA 4 SAN MARTIN 100 NA 800 Exploration No No 0 0 0
Metallic
Non
RIOJA 5 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
RIOJA 6 SAN MARTIN 100 NA 400 Exploration No No 0 0 0
Metallic
Non
RIOJA 7 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
RIOJA 8 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
RIOJA 9 SAN MARTIN 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
TILAPIA 99 SAN MARTIN 100 NA 300 Exploration No No 0 0 0
Metallic
Non
TINGOS 2010 SAN MARTIN 100 NA 400 Exploration No No 0 0 0
Metallic
Non
YESO YANAYACU SAN MARTIN 100 NA 100 Exploration No No 0 0 0
Metallic
Non
FILA LARGA 98 A AMAZONAS 100 No 399 Exploration No No 0 0 0
Metallic
Non
ESPERANZA BLANCA 2 AMAZONAS 100 NA 900 Exploration No No 0 0 0
Metallic
Non
SOJO 3 PIURA 100 NA 200 Exploration Yes Yes 0 0 0
Metallic
Non
EL MILAGRO 2010 LA LIBERTAD 100 NA 500 Exploration No No 0 0 0
Metallic
Non
PARIÑAS 2011 PIURA 100 NA 900 Exploration No No 0 0 0
Metallic
Non
DEVORA PIURA 100 NA 800 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 10 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 19 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 20 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 22 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 23 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 30 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 37 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 39 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 4 LAMBAYEQUE 100 NA 800 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 40 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 5 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 52 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic
Non
EL TABLAZO 68 LAMBAYEQUE 100 NA 1000 Exploration No No 0 0 0
Metallic

59
 EL TABLAZO 69 LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
EL TABLAZO 7 LAMBAYEQUE 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 10 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
LOBOS 11 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 12 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 13 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 14 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 15 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 16 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 17 PIURA 100 NA 700 Exploration No Non Metallic No 0 0 0
LOBOS 18 PIURA 100 NA 700 Exploration No Non Metallic No 0 0 0
LOBOS 19 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 20 PIURA 100 NA 600 Exploration No Non Metallic No 0 0 0
LOBOS 21 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
LOBOS 22 PIURA 100 NA 800 Exploration No Non Metallic No 0 0 0
LOBOS 23 PIURA 100 NA 700 Exploration No Non Metallic No 0 0 0
LOBOS 47 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 48 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 49 PIURA 100 NA 300 Exploration No Non Metallic No 0 0 0
LOBOS 50 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 51 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 6 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 62 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0
LOBOS 65 PIURA 100 NA 200 Exploration No Non Metallic No 0 0 0
LOBOS 7 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
LOBOS 8 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
LOBOS 9 PIURA 100 NA 1000 Exploration No Non Metallic No 0 0 0
ÑAMUC 1 PIURA 100 NA 900 Exploration No Non Metallic No 0 0 0
ÑAMUC 2 PIURA 100 NA 100 Exploration No Non Metallic No 0 0 0

Acumulación Tembladera Individual Disclosure (229.1304)

Property description

Location

The mining concession is located in Yonan district, Contumaza province, Cajamarca region, Peru at longitude -79.123393° W and latitude -7.245671° S. It is located 60 kilometers from
the cement plant.

60
The area of the mining concession is 3,390.97 Hectares. The mining rights are granted by INGEMMET (Instituto Geológico Minero y Metalúrgico) of the Energy and Mines Sector
through a Presidential Resolution. Cementos Pacasmayo owns the mining concession and it is registered as “Acumulación Tembladera” as a non-metallic mining concession.

Our Pacasmayo cement plant and Acumulación Tembladera mining concession are shown in Figure 2 while the location of the Acumulación Tembladera is shown in the Figure 3. Our
Pacasmayo cement plant is shown in Figure 4.

Figure 2 Pacasmayo cement plant and Acumulación Tembladera

61
Figure 3 Acumulación Tembladera

Figure 4 Pacasmayo cement plant

62
Infrastructure

The Tembladera quarry has the necessary infrastructure for normal operations. Facilities for electric power, water supply, fuels, accesses and roads have been installed.

Energy is supplied by Hidrandina S.A. Company, which obtains energy from the national grid. Energy distribution is overhead and at medium voltage of 2.3 kV. The quarry also has an
electrical sub-station. The sub-station area is 1,062 m2.

Water is obtained from the village canal, which flows near the quarry. The water is used for minor activities within the quarry, such as access and road watering, limestone watering in
mining areas, post-blasting watering, watering of green areas, and consumption by restrooms.

A contractor manages the fuel system. The fuel storage and dispatch system has the necessary equipment to supply fuel to the mobile and fixed units within the quarry. Trained
personnel and safety measures are in place to handle fuel safely.

The Tembladera quarry can be access by air from Lima to Trujillo (1 hour) and by land from Trujillo to Tembladera Quarry. The route is from Trujillo to Pacasmayo (112.6 kilometers),
from Pacasmayo to Ciudad de Dios (14.3 kilometers) and from Ciudad de Dios to Tembladera (50 kilometers) and Tembladera - Security point (0.8 kilometers), for a total of 747.1
kilometers. The entire route is paved. Alternatively, the quarry can be accessed by air from Lima to Chiclayo, time average 1.15 hrs. of flight, and from Chiclayo to Ciudad de Dios (86.8
kilometers) and from Ciudad de Dios to Tembladera (50 km) and Tembladera – Security point (0.8 km). The entire route is paved.

The majority of the Tembladera quarry’s personnel comes from the town of Tembladera, adjacent to the quarry. There are also personnel from Cajamarca and La Libertad region.

Personnel are transported from the town of Tembladera to the quarry in buses and pickup trucks.

Mining Concession Ownership and Area

The Acumulación Tembladera concession was granted by Resolution No. 01989-2002-INACC/J of the National Institute of Concessions and Cadastre (Instituto Nacional de
Concesiones y Catastro).

The procedure to obtain a mining concession is established in the General Mining Law (Supreme Decree 014-92-EM) and its Regulation Legislative Decree 020-2020-EM.

Cementos Pacasmayo has the surface rights of the operation area in the Tembladera quarry.

Cementos Pacasmayo pays the concession fee for the Acumulación Tembladera concession with unique code 010001801L. These payments must be made from the first working day of
January to June 30 of each year, providing the financial entities the unique code of its mining right. The Acumulación Tembladera concession payment is equivalent to US$3.00 per
hectare.

Royalties

Law No. 28258 approved the Peruvian Mining Royalty Law on June 24, 2004, which was amended by Law No. 29788 of September 28, 2011. Cementos Pacasmayo currently pays the
Mining Royalty (see note 29 to our annual audited consolidated financial statements included in this annual report).

63
The payment to the Peruvian government is made through the National Superintendence of Tax Administration (SUNAT), which is the entity designated to control this consideration for
the use of natural resources, such payment is made through an application that the tax authority has made available to those required to pay.

In case the mining royalty is not declared or paid, penalties for infractions and default interest for non-compliance are incurred. However, failure to pay these fines is not a cause for the
loss of the mining concession.

Set forth below is additional information relevant to the particular property.

Mining activities on the property

Tembladera Quarry

The Tembladera quarry, within the Acumulación Tembladera mining concession, is currently in production stage. The Tembladera quarry is an open-pit mine that uses explosives to
fragment the limestone rock. After crushing, the material is loaded onto trucks to be transported from the quarry to the cement plant located in Pacasmayo.

The Figure 5 shows the block diagram of mining process of the Tembladera quarry. Further details of the process are provided in Exhibit 96.1 to this annual report.

Figure 5 Diagram of mining process of the Tembladera quarry

Pacasmayo cement plant

Our Pacasmayo plant is located at Pacasmayo District, Pacasmayo Province, La Libertad Region. This plant is 67.3 kilometers from the Tembladera quarry and receives material from
the Tembladera quarry. Our Pacasmayo plant produces various products for the construction industry, the main product being cement. Different types of cement are produced depending
on their applications, using limestone, sand, iron and clays as raw materials. The specific mix of raw materials produces the clinker necessary for the production of cement.

64
The standard cement production process consists of the following main stages:

● Extraction and transportation of limestone;

● Raw material storage;

● Grinding and homogenization to make the raw material of consistent quality;

● Clinkerization;

● Cement grinding;

● Storage in silos; and

● Packaging, loading and distribution.

The Figure 6 shows the block diagram for raw material processing, clinker and cement production. Further details of the process are provided in Exhibit 96.1 to this annual report.

Figure 6 Pacasmayo plant process block diagram

Tembladera Quarry

The Tembladera quarry has been operating for 64 years. The material extracted from the quarry is used to supply our Pacasmayo plant. The amount of limestone to be mined is planned
annually through the mining plan.

The equipment in operation at the Tembladera quarry are in optimum condition to maintain continuity of operations. Maintenance and optimization of the equipment is carried out
periodically and is supervised by the operator of the quarry. The equipment is in good condition and operational. Further details of the equipment are provided in Exhibit 96.1 to this
annual report.

Facilities

The Tembladera quarry has facilities such as offices, blasting explosives warehouse, electrical substation, maintenance shop, lubricant warehouse, gas station, oil tank, guardhouse,
limestone field, dining room, laboratory, truck scale, ore belt, loading tunnel, meteorological station, safety trench and septic tank.

Pacasmayo Plant

Our Pacasmayo plant has been in operation for 64 years, and uses the limestone extracted from the Tembladera quarry in the manufacture of cement and quicklime.

The equipment in operation at our Pacasmayo plant is in optimal condition to avoid any interruption in cement production. Maintenance and optimization of the equipment is carried out
periodically and is supervised by our personnel. The equipment is in good condition and operational. Further details of the equipment are provided in Exhibit 96.1 to this annual report.

Facilities

Our Pacasmayo plant has facilities such as maintenance workshops, warehouses, laboratories, administrative offices, and cement production lines that support cement production.

65
The total cost of the mining concession, mine development costs, land, buildings and other facilities, machinery and equipment, furniture and fixtures, transportation units, computer
equipment and tools, quarry rehabilitation costs, capitalized interest and work in progress amounts to S/660,798,834 as of December 31, 2021.

History

By means of Resolution No. 01989-2002-INACC/J dated November 4, 2002, the National Institute of Mining Cadastre and Concessions granted Cementos Pacasmayo, the non-metallic
concession title called “Acumulación Tembladera” with code No. 01-00018-01-L. The property dates back to the date of its oldest integral concession: “Norte No. 1” granted by the
Regional Mining Office of Cajamarca by Ministerial Resolution No. 267 of June 30, 1950, in benefit of Cementos Portland del Norte S.A., starting operations as Cementos Pacasmayo,
from 1957 until 2013 when Calizas del Norte S.A.C. (CALNOR) was incorporated. CALNOR started activities from January 2014 until May 2016. San Martin Contratistas Generales
S.A. started activities from October 2016 to the present.

Property Encumbrances

Cementos Pacasmayo does not make any payments with respect to encumbrances for the Acumulación Tembladera property. The Acumulación Tembladera mining concession currently
has no outstanding payments with respect to infractions and penalties.

Concessions

The Acumulación Tembladera mining concession is a production stage property with estimated mineral reserves.

Geology

The ore deposit contains limestone rock with a grade suitable for cement production. The limestone is contained within the so-called Cajamarca Formation, belonging to the Upper
Cretaceous (Turonian floor, around 90 MA). This Formation overlies the Quilquiñan Group, and intrajacent to the Celendín Formation.

Table 5 shows the stratigraphic column of the area of the Tembladera quarry and Figure 7 shows the Geological section of the Tembladera quarry. Sedimentary rocks corresponding to
the Cajamarca Formation and the Upper Cretaceous Celendín Formation outcrop in the project area as described below.

66
 Table 5 Stratigraphic Column of the Tembladera quarry

System Series Stratigraphic Unit Intrusive rocks Lithologic Description

Quaternary Recent Fluvial Deposit Qr-fl Fluvial origin
Alluvial Deposit Qr-al Alluvial origin
Intrusion of andesitic dykes longitudinally into the
Tertiary Lower Andesite T-an
deposit rock mass.
Thin layers of clayey nodular limestone, interbedded
Cretaceous Upper Celendin Formation Ks-ce
with marls and lutites.
Limestone of marine origin of whitish to light gray
Cajamarca Formation Ks-c
color.
Lutites and marls with some calcareous
Quilquiñan Group Ks-q
intercalations.

Figure 7 Geological section of Tembladera quarry

67
Resources and Reserves

Table 6 shows the mineral resources categories and quality.

Table 6 Mineral Resources (exclusive of reserves) at the end of the fiscal year

Resources
Amount Grades/ Grades/ Grades/ Grades/
(Million qualities (% qualities (% qualities (% qualities (% Cut-off grades Metallurgical
Tonnes) CaO) SO3) MgO) Al2O3) (% CaO) recovery
Measured mineral resources 128.29 49.31 0.31 1.81 1.84 48.6 (1)
Indicated mineral resources 37.64 50.23 0.19 1.70 1.47 48.6 (1)
Measured + Indicated mineral resources 165.93 49.52 0.28 1.79 1.76 48.6 (1)
Inferred mineral resources 74.24 50.34 1.45 0.31 1.63 48.6 (1)

Note: No Ore loss or dilution has been included. All Resources are estimated as quantities at cement plant.

(1) Limestone is used for clinker production and cement production; 100% of the limestone received at the plant is used. Limestone represents 78.54% of the raw material for clinker
production.

The Mineral resources estimation considered the expected price of cement, the complete forecast horizon contemplates perpetuity is included at the end of the 30 years of projection.
Clinker is used for cement production through the addition of other non-metallic minerals.

Table 7 shows the Reserves categories and quality.

Table 7 Mineral Reserves at the end of the 2021 fiscal year

Amount Grades/ Grades/ Grades/ Grades/

(Million qualities qualities (% qualities (% qualities (% Cut-off grades
Tonnes) (% CaO) SO3) MgO) Al2O3) (% CaO)
Proven mineral reserves 66.52 49.75 0.36 1.53 1.53 48.6
Probable mineral reserves 10.47 49.64 0.28 1.53 1.56 48.6
Total mineral reserves 76.99 49.74 0.35 1.53 1.53 48.6

Note: All Reserves are estimated as quantities at cement plant.

The Mineral Reserves estimation considered the expected price of cement, the complete forecast horizon contemplates a total of 30 years of projection. Clinker is used for cement
production through the addition of other non-metallic minerals.

68
The chapter on Regulatory Matters and Mining Regulations describes the royalties associated with the Tembladera quarry’s payment.

Reconciliation of Resources and Reserves at the End of the Fiscal Year

Table 8 Resources for the last two fiscal years expressed in millions of tonnes.

Resources as at Resources as at
Dec. 31, 2021 Dec. 31, 2020 Discrepancy
Measured resources 128.29 Not applicable.
Indicated resources 37.64 Not applicable.
Measured + Indicated resources 165.93 Not applicable. Not applicable.
Inferred resources 74.24 Not applicable.

* The prices assumed for the Mineral resources estimation in the economic model can be found in the Cementos Pacasmayo S.A.A. Technical Report Summary (TRS) Tembladera
Quarry and Pacasmayo Cement Plant set forth in Exhibit 96.1 to this annual report. All Resources are estimated at cement plant. The average price is S/498.1 per ton of cement at
nominal values, perpetuity is included at the end of the 30-year projection.

69
 Table 9 Reserves for the last two fiscal years expressed in millions of tons.

Reserves as at Reserves as at
Dec. 31, 2021 Dec. 31, 2020 Discrepancy
Proven reserves 66.52 13.5
Probable reserves were recategorized as proved reserves. The 2021 reserve estimate
Probable reserves 10.47 138.1 considered only 30 years as LOM due to economic issues of price and cost projections.

* The prices assumed for the Mineral Reserves estimation in the economic model can be found in the Cementos Pacasmayo S.A.A. Technical Report Summary (TRS) Tembladera
Quarry and Pacasmayo plant set forth in Exhibit 96.1 to this annual report. All Reserves are estimated at cement plant. The average price is S/498.1 per ton of cement, average of
the 30-year projection, at nominal values.

Further details are provided in Exhibit 96.1 to this annual report.

Exploration

In 2021, Cementos Pacasmayo did not conduct any exploration activity at the Tembladera quarry.

Activities in Acquired Properties

Not applicable.

70
Virrila Individual Disclosure (229.1304)

Property description

Location

The mining concessions are located in the Sechura District, Sechura Province, Piura Region, Peru at longitude -80.766994° W and latitude -5.922731° S. The properties registered in
INGEMET are Virrila 3, Virrila 4, Virrila 6, Virrila 7, Virrila 8, Virrila 9, Virrila 10, Virrila 11, Virrila 12, Virrila 13, Virrila 14, Virrila 15, Virrila 16, Virrila 17, Virrila 18, Virrila 19,
Virrila 20, Virrila 21, Virrila 22, Virrila 23 and Bayovar N° 4 with mining activity.

The area of the mining concession is 38,226.00 Hectares. The mining rights are granted by INGEMMET (Instituto Geológico Minero y Metalúrgico) of the Energy and Mines Sector
through a Presidential Resolution.

Cementos Pacasmayo owns the mining concession and it is registered as “Unidad Económica Administrativa (UEA) Virrila” as a non-metallic mining concession.

Cementos Pacasmayo currently has an agreement with the Fundación Comunal San Martin de Sechura for the use of the surface land associated with the production area of the Virrila
quarry.

Piura Cement Plant and UEA Virrila are shown in Figure 8 while the location of the UEA Virrila property is shown in the Figure 9.

71
Figure 8 Piura cement plant and UEA Virrila

72
 Figure 9 UEA Virrila property

Piura Cement Plant is shown in Figure 10.

Figure 10 Piura cement plant

73
Infrastructure

The Virrila quarry has the necessary infrastructure for normal operations. Facilities for electric power, water supply, fuels, accesses and roads have been installed.

Virrila quarry is supplied with fuel by diesel oil tanker trucks. Fuel distribution is the responsibility of an authorized contractor company, which will have the permits and
records required for this type of facility and activity.

The Virrila quarry is supplied with energy by electric generators.

The Virrila quarry can be access by paved road from the Piura city, along the north Panamerican highway, to the Bayovar intersection and then to the Virrila quarry, the
estimated time is 2 hours.

The majority of the Virrila quarry’s personnel comes from the town of Sechura, near to the quarry. There are also personnel from Piura.

Personnel are transported from Sechura to the quarry in buses and pickup trucks. The contractor is responsible for the logistics of the personnel operating in the quarry.

Mining Concession Ownership and Area

On March 31, 2016, The Virrila concession was granted by Presidential Resolution No. 0147-2016-INGEMMET/PCD/PM and includes nine (9) non-metallic mining rights in
the ¨Unidad Económica Administrativa¨ (UEA) Virrila, with code No. 01-00011-00-U.

The ¨Unidad Económica Administrativa¨ (UEA) Virrila, with code No. 01-00011-00-U of Cementos Pacasmayo S.A.A. which grouped twelve (12) non-metallic mining rights
according to Presidential Resolution N° 2869-2015-INGEMMET/PCD/PM dated September 30, 2015 now has a total of 21 mining concessions.

Royalties

Law No. 28258 approved the Peruvian Mining Royalty Law on June 24, 2004, which was amended by Law No. 29788 of September 28, 2011. Cementos Pacasmayo currently
pays the Mining Royalty (see note 29 to our annual audited consolidated financial statements included in this annual report).

The payment to the Peruvian government is made through the National Superintendence of Tax Administration (SUNAT), which is the entity designated to control this
consideration for the use of natural resources, such payment is made through an application that the tax authority has made available to those required to pay.

In case the mining royalty is not declared or paid, penalties for infractions and default interest for non-compliance are incurred. However, failure to pay these fines is not a
cause for the loss of the mining concession.

Set forth below is additional information relevant to the particular property.

Mining Activities on the Property

The Virrila quarry located in the Virrila EAU is currently in production stage. This is an open-pit mine where surface miners are used to fragment the seashells, which is loaded
onto trucks by front-end loaders and transported to the cement plant located in Piura which is 120 kilometers from UEA Virrila.

The Figure 11 shows the block diagram of mining process of the Virrila quarry. Further details of the process are provided in Exhibit 96.2 to this annual report.

74
 Figure 11 Diagram of mining process of the Virrila quarry

Piura Plant

The cement plant is located at Veintiséis de Octubre District, Piura Province and Piura Region. This facility receives material from the Virrila quarry. The cement plant
produces various products for the construction industry, the main product being cement. Different types of cement are produced depending on their applications, and using seashells,
sand, iron and clays are used as raw materials. The specific mix of raw materials produces the clinker necessary for the production of cement.

The standard cement production process consists of the following main stages:

● Extraction and transportation of seashells;

● Raw material storage;

● Grinding and homogenization to make the raw material of consistent quality;

● Clinkerization;

● Cement grinding;

● Storage in silos; and

● Packaging, loading and distribution.

The Figure 12 shows the block diagram for raw material processing, clinker and cement production. Further details of the process are provided in Exhibit 96.2 to this annual
report on Form 20-F.

75
 Figure 12 Piura plant process block diagram

Virrila Quarry

The Virrila quarry has been operating for 6 years. The material extracted from the quarry is used to supply the Piura plant. The amount of seashells to be mined is planned
annually through the mining plan.

The equipment in operation at the Virrila quarry are in optimum condition to maintain continuity of operations. Maintenance and optimization of the equipment is carried out
periodically and is supervised by the operator of the quarry. The equipment is in good condition and operational. Further details of the equipment are provided in Exhibit 96.2 to this
annual report.

Facilities

The Virrila quarry has facilities such as offices, dining room, infirmary, vehicle parking lots, lubricant warehouse, chemical baths, maintenance shop, sample preparation
laboratory, industrial water tank, truck scale, hopper for weighing, wastewater treatment pond, and satellite and radio antenna.

Piura Plant

The equipment in operation at the Piura plant is in optimal condition to avoid any interruption in cement production. Maintenance and optimization of the equipment is carried
out periodically and is supervised by Cementos Pacasmayo’s personnel. The equipment is in good condition and operational. Further details of the equipment are provided in Exhibit
96.2 to this annual report.

Facilities

The Piura Plant has facilities such as maintenance workshops, warehouses, laboratories, administrative offices, and cement production lines that support cement production.

The total cost of the mining concession, mine development costs, land, buildings and other facilities, machinery and equipment, furniture and fixtures, transportation units,
computer equipment and tools, quarry rehabilitation costs, capitalized interest and work in progress amounts to S/935,232,565 as of December 31, 2021.

History

The quarry is a non-metallic deposit of seashells material, source of different types of cements for construction; Cementos Pacasmayo owns the deposit.

The Virrila quarry started operations in 2015. The mining contractor San Martin Contratistas Generales S.A. was in charge of the exploitation from the beginning of operations
until March 14, 2020. The mining contractor Posada Perú SAC started operations at the Virrila quarry on September 14, 2020 until today.

76
Property Encumbrances

Cementos Pacasmayo does not make any payments with respect to encumbrances for the UEA Virrila concessions. The UEA Virrila concessions currently has no outstanding
payments with respect to infractions and penalties.

Concessions

The UEA Virrila is a production stage property with estimated mineral reserves.

Geology

The lithostratigraphy of the area consists of Cenozoic sedimentary units, locally formed by Tertiary units and covered by Quaternary deposits; the Tablazo Lobitos and
Quaternary deposits of ancient alluvial, lacustrine and Aeolian origin form these units. Table 10 shows the stratigraphic column of the area of the Virrila quarry and Figure 13 shows the
Geological section of the Virrila quarry.

Table 10 Stratigraphic Column of the Virrila quarry

Era System Symbol Serie Stratigraphic Unit

Cenozoic Quaternary Qh-e Holocene Eolic deposits
Tertiary Qp-tt Pleistocene Tablazo Talara
Tm-zi Miocene Lower Zapallal Formation

77
 Figure 13 Geological section of the Virrila quarry

Resources and Reserves

Table 11 shows the mineral resources categories and quality.

Table 11 Mineral Resources (exclusive of reserves) at the end of the fiscal year

Resources
Amount Grades/ Grades/ Grades/
(Million qualities qualities qualities Cut-off grades (% Metallurgical
Tonnes) (% CaO) (% SO3) (% MgO) CaO) recovery
Measured mineral resources 21.1 48.50 0.84 0.84 48.5 (1)
Indicated mineral resources 29.2 48.78 0.87 1.23 48.5 (1)
Measured + Indicated mineral resources 50.3 48.66 0.86 1.07 48.5 (1)
Inferred mineral resources 3.9 46.42 2.27 1.67 43.6 – 48.5 (1)

Note: No Ore loss or dilution has been included. All Resources are estimated as quantities at cement plant.

(1) Seashell is used for clinker production and cement production; 100% of the limestone received at the plant is used. Limestone represents 79% of the raw material for clinker
production.

The Mineral resource estimation considered the expected price of cement, the complete forecast horizon contemplates a total of 35 years of projection. Clinker is used for
cement production through the addition of other non-metallic minerals.

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 Table 12 Mineral Reserves at the end of the 2021 fiscal year

Amount Grades/ Grades/ Grades/

(Million qualities qualities qualities Cut-off grades
Tonnes) (% CaO) (% SO3) (% MgO) (% CaO)
Proven mineral reserves 42.4 49.99 0.55 0.56 48.5
Probable mineral reserves 2.9 47.77 0.96 1.08 48.5
Total mineral reserves 45.3 49.85 0.58 0.74 48.5

Note: All Reserves are estimated as quantities at cement plant.

The Mineral reserves estimation considered the expected price of cement, the complete forecast horizon contemplates a total of 30 years of projection. Clinker is used for
cement production through the addition of other non-metallic minerals.

The chapter on Regulatory Matters and Mining Regulations describes the royalties associated with the Virrila quarry’s payment.

Reconciliation of Resources and Reserves at fiscal year-end

Table 13 Resources for the last two fiscal years expressed in millions of tonnes.

Resources as at Resources as at
Discrepancy
Dec. 31, 2021 Dec. 31, 2020
Measured resources 21.1 7.3 The estimate of Reserves disclosed in 2020 considered more than 30 years as LOM. Mineral
Indicated resources 29.2 6.6 Reserves disclosed in 2020 after 30 years are considered Mineral Resources for fiscal 2021 due to
Measured + Indicated economic cost and price considerations. Additionally,an update of the geological deposit was
50.3 13.9 performed.
resources
Inferred resources 3.9 0 The new estimation resource is due to the update of the geological model.

* The prices assumed for the Mineral Resources estimation in the economic model can be found in the Cementos Pacasmayo S.A.A. Technical Report Summary (TRS) Virrila Quarry
and Piura Cement plant set forth in Exhibit 96.2 to this annual report. All Resources are estimated at cement plant. The average price is S/595.7 per ton of cement, average of the 35-
year projection, at nominal values.

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 Table 14 Reserves for the last two fiscal years expressed in millions of tons.

Reserves as at Reserves as at
Discrepancy
Dec. 31, 2021 Dec. 31, 2020

Proven reserves 42.4 0.7 Probable reserves were recategorized as proved reserves due to increased certainty due
to production activities. The 2021 reserve estimate considered only 30 years as LOM
Probable reserves 2.9 86.5 due to economic issues of price and cost projections.

* The prices assumed for the Mineral Reserves estimation in the economic model can be found in the Cementos Pacasmayo S.A.A. Technical Report Summary (TRS) Virrila Quarry
and Piura Cement Plant set forth in Exhibit 96.2 to this annual report. All Reserves are estimated at cement plant. The average price is S/552.9 per ton of cement, average of the 30-
year projection, at nominal values.

Further details are provided in Exhibit 96.2 to this annual report.

Other Activities

Cementos Pacasmayo has carried out drilling works in the Virrila quarry in order to confirm the mineral reserves. This activity will improve the accuracy of mineral reserves
estimation. Diamond drilling was carried out and a specialized company was contracted to carry out the work. Drilling data is currently being reviewed for inclusion in the 2022
Reserves model.

Activities in Acquired Properties

Not applicable.

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Tioyacu Individual Disclosure (229.1304)

Property description

Location

The mining concession is located in Elias Soplin Vargas district, Rioja province, San Martin region, Peru at longitude -77.284376° W and latitude -5.999057° S. It is located 5
kilometers from the cement plant.

The area of the mining concession is 400 Hectares. The mining rights are granted by INGEMMET (Instituto Geológico Minero y Metalúrgico) of the Energy and Mines Sector
through a Presidential Resolution.

Cementos Selva S.A.C owns the mining concession and it is registered as “Calizas Tioyacu” a non-metallic mining property.

Rioja cement plant and Calizas Tioyacu quarry are shown in Figure 14 while the location of the Calizas Tioyacu is shown in the Figure 15.

Figure 14 Rioja plant and Calizas Tioyacu

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Figure 15 Calizas Tioyacu property

82
 Rioja cement plant is shown in Figure 16.

Figure 16 Rioja cement plant

Infrastructure

The Tioyacu quarry has the necessary infrastructure for normal operations. Facilities for electric power, water supply, fuels, accesses and roads have been installed.

The Rioja plant owned by Cementos Selva S.A. currently has adequate infrastructure (such as workshops, service stations, restrooms, and others).

The Tioyacu quarry can be access from the coast is exclusively by air from Lima to Tarapoto, time average 1.10 hours by air, and from Tarapoto to Rioja (139 kilometers) and
from Rioja to the Cementos Selva S.A. plant (15 kilometers). Another alternative to access the quarry is by road from Lima to Rioja and the distance is 1,107 kilometers and the road is
paved.

The majority of the Tioyacu quarry’s personnel come from Elias Soplin Vargas district. There are also personnel from Rioja and Nueva Cajamarca.

Mining Concessions Ownership and Area

Calizas Tioyacu concession was granted by Resolution 0960-96-RPM of the Public Mining Registry.

The procedure to obtain a mining concession is contemplated in the General Mining Law (Supreme Decree 014-92-EM) and its Regulation Legislative Decree 020-2020-EM.

Tioyacu quarry has an Usufruct and Easement Agreement for the use and easement of the surface where mining activities are carried out. The agreement was signed with
Corporación de Desarrollo de San Martin (COREDESAM).

Cementos Selva S.A. pays the concession fee for the Calizas Tioyacu concession with unique code 010912495. These payments must be made from the first working day of
January to June 30 of each year, providing the financial entities the unique code of its mining right. In the case of the Calizas Tioyacu concession, the payment is equivalent to US$3.00
per hectare.

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Royalties

The Peruvian Mining Royalty Law was approved on June 24, 2004 by Law No. 28258, which was amended by Law No. 29788 of September 28, 2011. Cementos Selva
currently pays the Mining Royalty (see note 29 to our annual audited consolidated financial statements included in this annual report).

The payment to the Peruvian government is made through the National Superintendence of Tax Administration (SUNAT), which is the entity designated to control this
consideration for the use of natural resources, such payment is made through an application that the tax authority has made available to those required to pay.

In case the mining royalty is not declared or paid, fines for infractions and late payment interest for non-compliance are incurred. However, failure to pay these fines is not a
cause for the loss of the mining concession.

Set forth below is additional information relevant to the particular property.

Mining Activities on the Property

Tioyacu Quarry

The Tioyacu quarry, located within the Calizas Tioyacu mining concession, is currently in production stage. The Tioyacu quarry is an open-pit mine and uses explosives to
fragment the limestone rock, which is then loaded onto trucks by front-end loaders and transported to the Rioja plant.

The Figure 17 shows the block diagram of mining process of the Tioyacu quarry. Further details of the process are provided in Exhibit 96.3 to this annual report.

Figure 17 Diagram of mining process of the Tioyacu quarry

Rioja Plant

The cement plant is located in the district of Elías Soplin Vargas, Rioja province, San Martin region, 5 kilometers from the quarry. This facility receives material from the
Tioyacu quarry. The cement plant produces various products for the construction industry, the main product being cement. Different types of cement are produced depending on their
applications, using limestone, sand, iron and clays are used as raw materials. The specific mix of raw materials produces the clinker necessary for the production of cement.

The standard cement production process consists of the following main stages:

● Extraction and transportation of limestone;

● Raw material storage;

● Crushing and Drying of Raw Materials

● Grinding and homogenization to make the raw material of consistent quality;

● Clinkerization;

● Cement grinding;

● Storage in silos; and

● Packaging, loading and distribution.

The Figure 18 shows the block diagram for raw material processing, clinker and cement production. Further details of the process are provided in Exhibit 96.3 to this annual
report.

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 Figure 18 Rioja plant process block diagram

Tioyacu Quarry

The Tioyacu quarry has been operating for 21 years for Cementos Selva. The material extracted from the quarry is used to supply the Rioja Cement Plant, which has also been
in operation for 21 years. The amount of limestone to be mined is planned annually through the mining plan.

The equipment in operation at the Tioyacu quarry are in optimum condition to maintain continuity of operations. Maintenance and optimization of the equipment is carried out
periodically and is supervised by the operator of the quarry. The equipment is in good condition and operational. Further details of the equipment are provided in Exhibit 96.3 to this
annual report.

Facilities

The Tioyacu quarry does not have maintenance and administrative facilities because the Cementos Selva plant is adjacent to the quarry and provides the necessary facilities for
quarry operations.

Rioja Plant

The equipment in operation at the Rioja plant is in optimal condition to avoid any interruption in cement production. Maintenance and optimization of the equipment is carried
out periodically and is supervised by Cementos Selva personnel. The equipment is in good condition and operational. Further details of the equipment are provided in Exhibit 96.3 to this
annual report.

Facilities

The Rioja plant has facilities such as maintenance workshops, warehouses, laboratories, administrative offices, and cement production lines that support cement production.

The total cost of the mining concession, mine development costs, land, buildings and other constructions, machinery and equipment, furniture and fixtures, transportation units,
computer equipment and tools, quarry rehabilitation costs, capitalized interest and work in progress amounts to S/147,755,008 as of December 31, 2021.

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History

The Tioyacu quarry began operations as Cementos Rioja S.A. in 2000, as the successful bidder of the Public Auction of February 6, 1998, of the “Cement Plant with Vertical
Kiln of Rioja” promoted by CEPRI. By public deed of March 28, 1998, the Regional Government of San Martin transferred the quarry to Cementos Rioja S.A.

The aforementioned bid included the transfer in favor of Cementos Rioja S.A. by Empresa Minera del Perú, by public deed dated April 8, 1998, of the non-metallic mining
concession “Calizas Tioyacu,” among others, for the development of the quarry.

Property Encumbrances

Cementos Selva S.A. does not make any payments with respect to encumbrances for the Tioyacu quarry. Tioyacu quarry currently has no outstanding payments with respect to
infractions and penalties.

Concessions

The Calizas Tioyacu is a production stage property with estimated mineral reserves.

Geology

The ore deposit contains limestone rock with a grade suitable for cement production. The limestone is contained within the so-called Condorsinga Formation. This Formation is
part of the Pucará Group. Figure 19 shows the stratigraphic column of the area of the Tioyacu quarry and Figure 20 shows the Geological section of the Tioyacu quarry.

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Figure 19 Stratigraphic Column of the Tioyacu quarry

87
 Figure 20 Geological section of the Tioyacu quarry

Resources and Reserves

Table 15 Limestone Resources at the end of the fiscal year

Resources
Amount Grades/ Grades/ Grades/
(Million qualities qualities qualities Cut-off grades Metallurgical recovery
Ton) (% CaO) (% SiO2) (% K2O) (%CaO) Amount
Measured mineral resources 0 0 0 0 49.0 (1)

Indicated mineral resources 0 0 0 0 49.0 (1)

Measured + Indicated mineral resources 0 0 0 0 49.0 (1)

Inferred mineral resources 19.2 45.61 2.52 0.14 40.0 – 49.0 (1)

Note: No Ore loss or dilution has been included. All Resources are estimated as quantities at cement plant

(1) Limestone is used for clinker production and cement production; 100% of the limestone received at the plant is used. Limestone represents 73.1% of the raw material for clinker
production.

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 Table 16 Limestone Reserves at the end of the 2021 fiscal year

Grades/ Grades/ Grades/ Cut-off

qualities qualities qualities grades
Amount (% CaO) (% SiO2) (% K2O) (%CaO
Proven mineral reserves 6.5 50.30 5.46 0.21 49.0
Probable mineral reserves 4.8 47.29 5.95 0.19 49.0
Total mineral reserves 11.3 49.03 5.67 0.20 49.0

Note: All Reserves are estimated as quantities at cement plant

The calculation of the reserves estimate considered the expected price of cement, the complete forecast horizon contemplates a total of 27 years of projection. Clinker is used
for cement production through the addition of other non-metallic minerals.

The chapter on Regulatory Matters and Mining Regulations describes the royalties associated with the Tioyacu quarry’s payment.

89
Reconciliation of Resources and Reserves at the end of the fiscal year

Table 17 Resources for the two fiscal years expressed in millions of tons.

Resources as at Resources as at
Dec. 31, 2021 Dec. 31, 2020 Discrepancy
Inferred resources 19.2 19.2 -

* No economic analysis was performed for the Inferred Mineral Resources.

Table 18 Reserves for the last two fiscal years expressed in millions of tons.

Reserves as at Reserves as at
Dec. 31, 2021 Dec. 31, 2020 Discrepancy
Proven reserves 6.5 6,6 The main difference in the reduction of reserves due to consumption in operation
Probable reserves 4.8 5.1 The main difference in the reduction of reserves due to consumption in operation

* The prices assumed for the Mineral Reserves estimation in the economic model correspond can be found in the Cementos Selva S.A. Technical Report Summary (TRS) Tioyacu
Quarry and Rioja Cement Plant 20-F set forth in Exhibit 96.3 to this annual report. All Reserves are estimated as quantities at cement plant. The average price is S/676.4 per ton of
cement, average of the 27-year projection, at nominal values.

During 2021, Ore Reserves at the Tioyacu quarry have been reduced, due to the extraction of Ore Reserves as shown in the Tioyacu quarry/Rioja Cement Plant TRS report.

Further details are provided in Exhibit 96.3 of this annual report on Form 20-F.

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Exploration

In 2021, Cementos Selva did not conduct any exploration activity at the Tioyacu quarry.

Activities in Acquired Properties

Not applicable.

Internal Control Disclosure (229.1305)

As part of its corporate policies and through its Vice-President of Operations, Cementos Pacasmayo has implemented the necessary controls and procedures for quality
assurance (QA) and quality control (QC) of the company’s production activities and associated information for the estimation of mineral resources and reserves. Cementos Pacasmayo
has also implemented and certified ISO 9001 in its operations since 2015.

The QA and QC measures are applied to Exploration, Quarry Production and Cement Plant Processing activities. For laboratory analysis of exploration samples used in mineral
resource and reserve estimates, Cementos Pacasmayo uses a program of duplicate samples, standards and blanks to evaluate the reliability of the laboratory results its qualified persons
rely on for resource and reserve estimates. Its qualified persons also verify the data prior to using the data in their work.

From the operational point of view, Cementos Pacasmayo applies the quality control actions in each of its operations, which follow the quality plan, specific procedures for
each stage of the process such as exploration activities, limestone production, reception of raw materials in the cement plant, crushing of raw materials, coal grinding, cement grinding
and raw materials or products in the Cement Plants such as clinker, additions and cement.

Quality control procedures include sample security such as chain of custody in order to have reliable information.

Cementos Pacasmayo has a chemical analysis laboratory in each of its cement plants where procedures based on international standards are used for the chemical and physical
analysis of raw materials, clinker, and additions; which are mainly used in limestone production and cement production. Methodologies including the insertion of blanks, duplicates, and
standards are applied as part of the Quality Plan.

Cementos Pacasmayo has a data management department whose goal is to verify the quality of the information and its incorporation into the geological database, so that it can
be used in studies and interpretations, geological modeling, and estimation of mineral resources and reserves.

Data verification activities apply to exploration, limestone/seashell production and cement processing data. For exploration and limestone production information, Datashed
software is used as a tool for data analysis.

At the cement plant, the quality plan considers the PDCA (Plan, Do, Check, Act) cycle, which allows the quality of information to be verified during cement production
activities.

As part of the quality control activities, Cementos Pacasmayo periodically hires a technical auditing company to verify the CPSAA´s laboratory results obtained during the
exploration activities, which are part of the geological database and consequently to be used in the estimation of Resources and Reserves.

Cementos Pacasmayo has implemented internal controls to ensure its mineral resource and reserves estimates are compliant with the disclosure requirements set forth in
Regulation S-K, Item 1300, including ensuring that resource and reserve estimates are prepared by qualified persons who are members of the Peruvian Engineers Association, which is
an organization that regulates the legal professional practice of engineers in Peru.

Insurance

We maintain a comprehensive insurance program that protects us from certain types of property and casualty losses. Our plants and equipment are insured against losses.
Additionally, our insurance policy provides coverage for business interruption in our cement manufacturing facilities. We also purchase commercial insurance to cover risks associated
with workers’ compensation and other general liabilities. We believe our insurance programs and policy limits and deductibles are appropriate for the risks associated with our business
and are in line with the insurance policies of similar cement manufactures that operate in Peru.

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Sustainability Performance

We report our sustainability performance information to the GNR (Getting the Numbers Right) database, inspired by the guiding principles of the Cement Sustainability
Initiative (CSI), a sector-project of the World Business Council for Sustainable Development (WBCSD) among other cement companies in Latin America through the Inter-American
Cement Federation (FICEM).

In August 2018, we joined the Global Cement and Concrete Association (GCCA) and became members of the GCCA and the GCCA announced the formation of a strategic
partnership with WBCSD to facilitate sustainable development of the cement and concrete sectors and their value chains. As part of a new agreement, the work carried out by the CSI
and the GNR database was transfer from WBCSD to the GCCA on 1 January 2019.

In 2019, we became members of Innovandi Global Cement and Concrete Research Network which is GCCA´s Innovation arm, which runs key programs to develop innovations
to help the industry decarbonize and produce carbon neutral concrete by 2050.

In 2020, member companies of the Global Cement and Concrete Association came together as leaders in the sector to commit to producing carbon neutral concrete by 2050, in
line with global climate targets – accelerating the Co2 recutions that we have already achieved.

In 2021, we were included for the third consecutive year as part of the Dow Jones MILA Sustainability Index. This Index is made up of those companies that demonstrate
superior performance among their peers under social, environmental and economic criteria. This achievement comes as a result of Pacasmayo’s effort to improve in all of these criteria
and to work towards ambitious goals in terms of long-term sustainability. We are committed not only to remain in the Index but to improve our performance, as we are convinced that
the focus on sustainability is key to our business and our stakeholders.

In February 2022, we were selected to be part of The Sustainability Yearbook for the second consecutive year. To appear in the Yearbook, companies must score within the top
15% of their industry globally and have a gap of less than 30% from the leader’s Global ESG score. 2021 was the first year that Peruvian companies were included as part of the
Yearbook, and we are the only cement company that has been part of the Yearbook for two consecutive years. With around 7,000 companies evaluated around the world, an inclusion in
the yearbook is a true statement of excellence in corporate sustainability.

In 2021, we participated in the Carbon Disclosure Project (CDP) for the first time, and we are committed to participate every year.

Social Performance

We are committed to the development and quality of life of communities that surround the area where we operate. We have developed a good relationship with the local
communities surrounding our plant facilities since we started operations in Pacasmayo. We have a number of social responsibility programs aimed at improving health and education in
the area. Below is a brief description of a few of our social initiatives.

Tecsup. Tecsup is a leading not-for-profit institute in Peru that provides technical education. It was founded by the family of our controlling shareholder, and we support it by
providing scholarships to promising students living near our plants to study at the Trujillo campus of Tecsup. Through its three campuses in Peru, Tecsup has graduated over 11,285
students in various technical fields, some of whom currently work for us and our affiliated companies.

Center for Technological Training. We have three training centers at our facilities where we teach students and adults business and technical skills. Our centers are staffed with
instructors from Tecsup. The goal of the center is to help develop the professional skills of the local population, especially of students and teachers at the educational institutions in the
towns of Tembladera, Pacasmayo and Sechura. In 2021, this program benefited over 1,743 stakeholders.

Abilities Strengthening. This program seeks to provide training to local stakeholders such as grassroots organizations, local entrepreneurs, teachers, journalists, among others.
The objective of the program is to strengthen their skills and knowledge by providing courses and seminars especially designed for that purpose. The program is funded by us, in
coordination with local governments and social institutions, and in 2021 benefited 306 stakeholders.

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 Universidad de Ingeniería y Tecnología – UTEC (University of Engineering and Technology) is an educational nonprofit proposal that since 2012 is aimed at the development
of people in the engineering field, looking to satisfy the need for these types of professionals in the labor market by implementing a curriculum in line with the trends and demands that
globalization poses to modern engineering, with an integrated approach to innovative teaching models. We support it by providing financial aid for its operations. To enhance students’
knowledge, UTEC also has various national and international alliances with top organizations.

Acuícola Los Paiches. Through our social venture, Acuícola Los Paiches S.A.C., we studied the reproductive forms of the “paiche” (arapaima giga), a native fish species that
was on the edge of extinction. After years of studies and scientific testing, we have successfully bred this species in captivity, and we have obtained thousands of fingerlings.

Risk Management

Risk Management Description

Corporate Risk Management (GRC) is a structured approach that allows managing all of the important risks that could affect our long-term objectives. The purpose of this
approach is to support senior management in the decision-making process, in order to reduce adverse impacts and take advantage of opportunities; as well as managing the action plans
to mitigate the risks.

Therefore, Pacasmayo has processes and systems that analyze and evaluate the management of the its business units, encouraging continuous improvement. Our management
control systems include:

● Mapping of new emerging risks and definition of impact, probability and design of controls;

● Periodic review of current risks and update of Impact Probability and Controls information;

● Quantification and effect of risk on EBITDA;

● Evaluation of external factors; and

● Periodic review of policies, procedures, regular internal audits and employee training.

Risk Management Process

The following are highlights of our risk management process.

● The Risks are mapped considering the impact on profit, revenues, resources, employees, communities where we operate and our suppliers.

● An integrated risk management system and tools are used to collect information collaboratively with the functional areas and external sources of the company.

● These processes include the evaluation of risks related to Operations, Human Rights, Sustainability, Fraud and Corruption, in different areas such as commercial,
operations, environment, health and safety, among others.

● The development of a risk management culture throughout the company in a decentralized manner, integrating the processes to the mapping of risks and the identification
and mitigation of risks from the strategic level to the operational level.

● The foregoing is reinforced with training for employees and suppliers and communication plans for the entire company.

93
 Risk Management Organization

Managers responsible
for risk metrics Risk management team Risks committee Audit Committee
● Those responsible for the evaluation, ● Group responsible for the ● Group created to establish and ● Made up by 3 independent board
management and prevention of the risk implementation of the corporate risk supervise the implementation of the members, reports directly to the Board
metrics of each area. management strategy, which risk management strategy at the
includes activities such as risk corporate level. ● The participants are the external
● Risk management coordinates with them auditors, the internal auditor, the
for the development and monitoring of
identification, evaluation, ● It is made up by the CEO, the VPs and compliance officer, the CFO and the
these metrics. quantification, and promotion of a the Risks Manager Risk Manager
risk management culture, among
others. ● the Risks Committee reports to the ● Evaluates improvement opportunities
Audit Committee and plans for the risk metrics.

Due to the outbreak of COVID-19, we have activated three plans that are key to the continuity of our business:

● Incident response plan – focused on the immediate response. It includes employee safety and asset protection in each location.

● Crisis management plan – focus on leadership and the response to manage business impact, including communication with stakeholders.

● Business recovery plan – Focus on the actions and knowledge needed to recover operations and maintain uninterrupted service.

Based on these plans, we have prepared a restart protocol for the restart of operations that include new safety measures and measures for the protection of and we have updated
all of our protocols relating to health and safety to include measures needed to stop the spread of COVID-19.

Cybersecurity

Our focus on Information Technology (IT) is to generate a collaborative digital ecosystem, where the different actors of the company: areas, processes and people develop their
activities leveraged on information, communication and automation technologies in a reliable, conscious and safe ways. Therefore, they can contribute to their own development, digital
development, innovation and digital transformation and the fulfillment of our strategic objectives as a company.

Management is governed by ISO 27001, and the following 3 policies:

● Policy on information security – protects IT assets

● Logical Access Policy – regulates controlled access to information

● Help Desk Management Policy - standardizes service request management

Regarding cybersecurity, governance is led by IT management, through the Infrastructure and Information Security area, and the person responsible for supervising compliance
with the strategy is the Chief Information Officer (CIO). Our management strategy focuses on four fundamental pillars:

● Awareness

● Risk management

● The regulatory framework provided by the associated internal processes and policies

● Resilience mechanisms for the protection of our information

Likewise, our management is complemented by an information security committee made up of the areas that are closely related to issues related to cybersecurity: Supply chain
and risk management, human resources management, audit and internal control management, operations management and finance management.

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 Emerging risks

Emerging risks are those that have an impact in the long-term. The risks considered here include all recently identified risks that could have a long-term impact on the
company’s business or industry, although in some cases they may have already begun to impact the company’s business.

Evidence of
mitigation
Risk Description Potential Impact Mitigation Actions actions

Economic Risk: Medium to high: International situation constant Development of key raw
monitoring material security stock review
Cost increments due to extremely high Margin reduction due to increases in production costs. Decrease and expansion
energy prices influenced by geopolitical in national consumption levels. Increase of raw material stock
tensions in the European region (Import levels Evaluation of additional
cost, inflation, exchange rate, etc) transportation routes
Implementation of production
cost optimization strategies Coal usage optimization plan

Anticipated currency and cash Increase of foreign currency

flow matching holding levels

Economic Risk: Medium to high: Constant monitoring Development of key raw

material security stock review
Revenue losses and cost increments due to Impact on revenue and margins due to protests, manifestations, Increase of raw material stock and expansion
political instability in Peru which translates riots and/or looting that might lead to important interruptions in levels
in social unrest with direct consequences on the delivery of our finished products, the transportation of critical Evaluation of alternative
the company’s operations raw material and the disruption of consumption in the overall Implementation of production routes of transportation
market. cost optimization strategies
Expansion of selected
Evaluation of available suppliers for transportation
transportation companies activities

Crisis Communication
Management Manual

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ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

A. Operating Results

Overview

We are a leading Peruvian cement company, and the only cement manufacturer in the northern region of Peru. With more than 64 years of operating history, we produce,
distribute and sell cement and cement-related materials, such as precast products and ready-mix concrete. Our products are primarily used in construction. We also produce and sell
quicklime for use in mining operations.

In 2021, our cement sales volume were approximately 3.6 million metric tons, representing an estimated 26.8% share of Peru’s total cement sales that year. That same year, we
also sold approximately 66 thousand metric tons of quicklime.

We own three cement production facilities, our Pacasmayo and Piura facilities located in the northwest region of, Peru, and our smaller Rioja facility located in the northeast.
Our facilities have total installed annual cement production capacity of approximately 4.9 million metric tons. We also have installed annual production capacity of 240,000 metric tons
of quicklime. We own concession rights to several quarries with reserves of limestone/seashells and other raw materials located near our facilities. We completed an expansion of our
Rioja plant in April 2013. We more than doubled the cement production capacity of our Rioja facility by installing a new production line that added 240,000 metric tons of installed
annual cement production capacity. In 2015, we completed construction of our cement plant in Piura, the third largest city in northern Peru, which has an annual production capacity of
1.6 million metric tons of cement. The first ton of cement from the Piura facility was produced and shipped on September 17, 2015, and clinker production started in January 2016. The
Piura plant improved our competitive position in the northern region of Peru. With production from three plants, we are able to serve our market more efficiently, as it reduces
transportation costs by enabling the dispatching of cement from plants within closer proximity to the point of sale. In 2021, due to the exponential growth in cement sales, we decided to
invest approximately US$70 million to optimize our current capacity at our Pacasmayo plant, in order to produce approximately 600,000 additional metric tons of clinker per year. Since
mid-2020 we have needed to import clinker in order to satisfy current demand levels, which has had a negative effect on our margins. With this optimization -when completed, during
the second half of 2023- we should be able to stop importing clinker, if demand remains around current levels, as we estimate.

Factors Affecting our Results of Operations

Revenue Drivers

In 2021, approximately 88.6% of our total cement sales were in the form of bagged cement, substantially all of which was sold through retailers both within and outside of our
distribution network. The remaining 11.4% of our cement was sold in bulk or in shipments of precast products or ready-mix concrete directly to large construction companies. Our retail
sales are directed to both the auto-construcción segment and construction companies that buy cement for a variety of small construction works, including minor residential, commercial
and infrastructure projects. Cement destined for large private and public projects, such as housing complexes, highways, irrigation channels, hospitals, schools, mining and industrial
facilities, is typically sold in bulk or in shipments of precast products or ready-mix concrete.

Based on our estimates, sales to the auto-construcción segment accounted for approximately 70.3% of our total cement sales in 2021, 70.6% in 2020 and 60.3% in 2019; private
construction projects, both large and small, accounted for approximately 14.7% of our total cement sales in 2021, 13.6% in 2020, and 19.9% in 2019; and public construction projects
accounted for the remaining 15.0% in of our total cement sales in 2021, 15.8% in 2020, and 19.8% in 2019. During 2020 we saw an increase in auto-construcción compared to other
segments, mainly due to its resilience in times of crisis. As the Peruvian economy starts to recover from the impact of the COVID-19 pandemic and continues to become less informal,
private construction projects and infrastructure are expected to become increasingly more important to our business.

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 Our cement sales are largely driven by residential construction (both auto-construcción and small and large housing developments undertaken by construction companies),
which is generally affected by economic conditions in the northern region of Peru. Auto-construcción is particularly affected by levels of disposable household income, as low-income
families tend to invest most of their savings in developing their homes. Larger residential construction is more susceptible to the economic outlook, the availability of financing and
prevailing investment levels in the region. GDP in the northern region of Peru is estimated to have grown by 19.3% in 2021, contracted by 8.0% in 2020, and grown 3.2% in 2019. Our
cement volumes, which represented most of the cement sales in the northern region of Peru, grew by 40.4% in 2021, contracted by 1.3% in 2020, and grew 10.6% in 2019, in terms of
metric tons of cement shipments.

Our cement sales are also driven, to a lesser extent, by commercial developments and infrastructure projects. Commercial and other private construction projects are also
affected by the level of public and private investment in the region, while public infrastructure projects depend on the priorities and financial resources of the national, regional and local
governments. During 2020, there was a significant reduction in activity relating to these projects, due primarily to the economic impact of the COVID-19 pandemic, but we saw a
recovery in part of it during 2021.

Cost Drivers

Coal is the main source of energy used in our production process, in particular to fuel our kilns. We purchase anthracite coal from nearby coal mines and import a small amount
of bituminous coal primarily from Colombia. We do not have long-term coal supply agreements, and we do not engage in hedging transactions in connection with the price of coal. In
the past, the price of bituminous coal has been related to the international price of oil, as it is used as a substitute for oil. Coal accounted for an estimated 11.6% of our costs of
production in 2021, 12.6% in 2020 and 13.7% in 2019. In 2011, we exercised certain of our options to purchase coal mining concessions, which we intend to use to continue to reduce
our use of bituminous coal sourced by third-party producers.

Electricity is used in our facilities mainly to power our cement mills. We power our Pacasmayo facility with electricity purchased from Electroperú, with which we have a long-
term supply agreement expiring in 2026. Our Rioja facility is powered primarily with electricity from ELOR, with which we have a medium-term supply agreement expiring in 2022.
Under these agreements, the price of electricity is based on a formula that takes into consideration our consumption of electricity and certain market variables, including the international
price of oil. Electricity accounted for approximately 13.7% of our cost of production in 2021, 14.6% in 2020 and 14.4% in 2019. Electricity costs tend to be lower during the rainy
season, from January to March of each year, as our region is served primarily by hydro-electric power plants.

In addition, we purchase from third parties admixtures and certain raw materials that we use in our production process, including gypsum, blast furnace slag, iron and other
materials. Admixtures and raw materials used in our cement production process do not include construction supplies that we acquire from third-parties for resale through our distribution
network along with our cement products. The cost of admixtures and raw materials purchased from third parties, excluding imported clinker, accounted for approximately 4.3% of our
cost of production in 2021, 4.3% in 2020, and 4.6% in 2019.

Due to the sudden and sharp increase in demand since the second half of 2020, we have had to use imported clinker in order to satisfy demand. The cost of imported clinker as a
percentage of our cement production costs was approximately 21.5%, compared to 10.1% in 2020 and 2.2% in 2019.

Personnel expenses represented 15.0% of our total costs and expenses in 2021, 17.1% in 2020 and 18.9% in 2019.

Third-Party Construction Supplies

In addition to selling our own products, we also sell and distribute construction supplies manufactured by third parties, such as steel rebar, wires and pipes that are typically
used in construction along with our cement. Our profit margins from the sale of third party construction supplies are significantly lower than the margins on our cement products and
they are affected by fluctuations in product prices and the exchange rate between the sol and the U.S. dollar between the time we purchase these products and the time we resell them.
We sell these products primarily as a service to retailers in our distribution network in an effort to support the sale of our cement products.

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Mining Royalty Tax

The mining royalty tax for the exploitation of metallic and non-metallic minerals is payable on a quarterly basis in an amount equal to the greater of (i) an amount determined in
accordance with a statutory scale of tax rates based on a company’s operating profit margin that is applied to its operating profit, as adjusted by certain non-deductible expenses and (ii)
1% of a company’s net sales, in each case during the applicable quarter. These amounts are determined based on our unconsolidated financial statements and those of our subsidiaries
with operations that are under the scope of the Mining Royalty Law. Mining royalty payments are deductible for income tax purposes in the fiscal year in which such payments are
made. For additional information, see note 29 to our annual audited consolidated financial statements included in this annual report.

Operating Segments

We have three operating segments: (i) cement, concrete and precast, (ii) quicklime and (iii) sales of construction supplies. For additional information on our operating segments,
see note 32 to our annual audited consolidated financial statements included in this annual report.

New Accounting Pronouncements

For a description of new interpretations and improvements to IFRS in effect since 2021, see note 2.3.19 and 4 to our annual audited consolidated financial statements included
in this annual report.

Critical Accounting Policies

The following is a discussion of our application of critical accounting policies that require our management to make certain assumptions about matters that are uncertain at the
time the accounting estimate is made, where our management could reasonably use different estimates, or where accounting changes may reasonably occur from period to period, and in
each case would have a material effect on our financial statements. For additional information, see note 2.3 to our annual audited consolidated financial statements included in this
annual report.

Determination of Useful Live of Assets for Depreciation and Amortization Purposes

Depreciation of mining concessions and mine development costs are charged to cost of production on a units-of-production basis using proved reserves. Other assets are
depreciated on a straight-line-basis over their estimated useful lives, as follows:

Buildings and other constructions: Years

Administrative facilities Between 20 and 51
Main production structures Between 20 and 56
Minor production structures Between 20 and 35
Machinery and equipment:
Mills and horizontal furnaces Between 24 and 45
Vertical furnaces, crushers and grinders Between 23 and 36
Electricity facilities and other minors Between 10 and 35
Furniture and fixtures 10
Transportation units:
Heavy units Between 5 and 15
Light units Between 5 and 10
Computer equipment Between 3 and 10
Tools Between 5 and 10

The assets’ residual value, useful lives and methods of depreciation/amortization are reviewed at each reporting period, and adjusted prospectively, if appropriate.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in
the consolidated income statement when recognition of the asset is derecognized.

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Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

The following specific recognition criteria must also be met before revenue is recognized:

Sales of goods

Revenue from sale of goods is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods.

We consider whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In
determining the transaction price for the sale of goods, we consider the effects of variable consideration, the existence of significant financing components, noncash consideration, and
consideration payable to the customer (if any).

Rendering of services

In the businesses segments cement, quicklime, concrete, precast and construction supplies, we provide transportation services. These services are sold together with the sale of
the goods to the customer.

Transportation services are satisfied when the transport service is concluded, which coincides with the moment of delivery of the goods to the customers.

Operating lease income

Income from operating lease of land and office was recognized on a monthly accrual basis during the term of the lease.

Interest income

For all financial instruments measured at amortized cost and interest-bearing financial assets, interest income is recorded using the effective interest rate (EIR). EIR is the rate
that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount
of the financial asset or liability. Interest income is included in finance income in the consolidated statement of profit or loss.

Impairment of Non-Financial Assets

We assess at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is
required, (goodwill and Intangible assets with indefinite useful lives), we estimate the asset’s recoverable amount. An asset’s recoverable value is the higher of an asset’s or cash-
generating unit’s fair value less costs of disposal and its value in use, and is determined for an individual asset, unless the asset does not generate net cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying amount of an asset’s cash-generating unit exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.

As of December 31, 2021 and 2020, goodwill related to the acquisition of assets made by our subsidiary Distribuidora Norte Pacasmayo S.R.L. amounted to S/4,459,000. We
have assessed the recoverable amount of our goodwill and has determined that there are no indicators of an impairment loss of this asset as of December 31, 2021 and 2020.

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 We base our impairment calculation on detailed budgets and forecast calculations, which are prepared separately from our cash generation units to which the individual assets
are allocated. Impairment losses of continuing operations, including impairment on inventories, are recognized in the consolidated statement of profit or loss in expense categories
consistent with the function of the impaired asset.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or have decreased. If such
indication exists, we estimate the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior
years. Such reversal is recognized in the consolidated statement of profit or loss. Exploration and evaluation assets are tested for impairment annually as of December 31, either
individually or at the cash-generating unit level, as appropriate and when circumstances indicate that the carrying value may be impaired.

Deferred Tax

Deferred tax is provisioned using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except in respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses. Deferred tax assets are recognized to
the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can
be utilized, except in respect of deductible temporary differences associated with investments in subsidiaries, where deferred assets are recognized only to the extent that it is probable
that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax related to items recognized outside profit or loss is recognized outside profit or loss. Deferred
tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred
taxes relate to the same taxable entity and the same taxation authority.

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Derivative Financial Instruments and Hedge Accounting

Initial Recognition and Subsequent Measurement

We use derivative financial instruments, such as cross-currency swaps (CCS), to hedge our foreign currency exchange rate risk. Such derivative financial instruments are
initially recognized at their fair value on the date on which the derivative contract is entered into and subsequently remeasured at their fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities when fair value is negative.

For the purpose of hedge accounting, hedges are classified as follows:

● “Fair value hedges” are those that hedge the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment.

● “Cash flow hedges” are those that hedge the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability
or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment.

● “Hedges of a net investment in a foreign operation.”

At the inception of a hedge relationship, we formally designate and document the hedge relationship to which we wish to apply hedge accounting and the risk management
objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how our management will assess
the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such
hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been
highly effective throughout the financial reporting periods for which they were designated.

A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:

● there is ‘an economic relationship’ between the hedged item and the hedging instrument;

● the effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship; and

● the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging
instrument that the Group actually uses to hedge that quantity of hedged item.

Hedges that meet all the qualifying criteria for hedge accounting are recorded as cash flow hedges.

Cash flow hedges

Any gains or losses arising from changes in the fair value of derivatives is taken directly to profit or loss, except for the effective portion of cash flow hedges, which is
recognized in other comprehensive income (OCI) and later reclassified to profit or loss when the hedge item affects profit or loss.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the
hedged cash flows affect profit or loss.

If the cash flow hedge is discontinued, the amount accumulated in other comprehensive income must remain in other comprehensive income accumulated if the covered cash
flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit or loss as a reclassification adjustment. After discontinuation, once the covered cash
flows are given, any amount that remains in other comprehensive accumulated results must be recorded considering the nature of the underlying transaction.

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Results of Operations

Comparison of Year Ended December 31, 2021 to Year Ended December 31, 2020

Year ended December 31,

(amounts in millions of S/) 2021 2020 Variation %
Sales of goods 1,937.8 1,296.3 49.5%
Cost of sales (1,378.3) (921.0) 49.7%
Gross profit 559.5 375.3 49.1%
Operating income (expenses):
Administrative expenses (196.1) (163.4) 20.0%
Selling and distribution expenses (51.5) (40.1) 28.5%
Other operating income net 6.4 4.3 49.0%
Total operating expenses, net (241.2) (199.2) 21.1%
Operating profit 318.3 176.1 80.7%
Other income (expenses):
Finance income 2.9 3.0 (3.6)%
Finance costs (89.0) (88.7) 0.3%
Net gain (loss) of derivative financial instruments at fair value through profit or loss 0.6 5.3 (88.9)%
Accumulated net loss due to settlement of derivative financial instruments at fair value through profit or loss (1.6) - N/R
Loss from exchange difference, net (7.1) (9.8) (27.6)%
Total other expenses, net (94.1) (90.2) 4.3%
Profit before income tax 224.1 85.9 160.9%
Income tax expense (70.9) (28.0) 153.4%
Profit for the year 153.2 57.9 164.1%

Sales of Goods

The following table sets forth a breakdown of our sales of goods by segment for 2021 and 2020:

Year ended December 31,

2021 % 2020 %
Cement, concrete, mortar and precast 1,784.5 92.1 1,185.2 91.4
Quicklime 39.1 2.0 32.5 2.5
Construction supplies 113.9 5.9 78.2 6.0
Other 0.3 0.0 0.4 0.1
Total sales of goods 1,937.8 100.0 1,296.3 100.0

Our total sales of goods increased by 49.5%, or S/641.5 million, to S/1,937.8 million in 2021 from S/1,296.3 million in 2020. This increase was primarily due to the following
factors:

● a 50.6%, or S/599.3 million, increase in 2021 in sales of cement, concrete and precast mainly due to increased sales of these products, mainly bagged cement, both for self-
construction and some for public projects. During 2021, the reconstruction of the North after El Niño in 2017 finally began after the government to government agreement
was signed with the government of the United Kingdom for the execution of part of the reconstruction projects;

● a 20.3%, or S/6.6 million, increase in the sales of quicklime, mainly due to a decrease in 2020 during the lockdown, as well as the fact that we obtained some larger
contracts during the second half of the year; and.

● a 45.7%, or S/35.7 million, increase in the sale of construction supplies, mainly due to higher activity in the self-construction segment as families increased spending on
home improvement projects.

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 The following table sets forth the composition of our sales of cement, concrete mortar and precast for 2021 and 2020:

Year ended December 31,

2021 2020 Variation
(in millions of S/) %
Cement 1,534.9 1,023.9 49.9%
Concrete, pavement and mortar 213.5 126.1 69.3%
Precast 36.1 35.2 2.6%
Total 1,784.5 1,185.2 51.0%

Our total sales of cement, concrete and precast increased by 50.6%, or S/599.3 million, to S/1,784.5 million in 2021 from S/1,185.2 million in 2020. This increase was primarily
due to the following factors:

● cement sales revenue increased 49.9%, or S/511.0 million, in 2021 due to higher volume of cement sold (39.0%), as bagged cement sales recovered rapidly after the
lockdown period, and an increase in average price (10.9%) due to both price increase and a more favorable sales mix, as we started selling more of our higher-priced
cements;

● concrete, mortar and pavement sales revenue increased 69.3%, or S/87.4 million, in 2021 due to an increase in volume (62.9%), as concrete and mortar sales reached record
level volumes this year, as well as an increase in the average price of concrete (6.4%); and

● sales of precast increased by 2.6%, or S/0.9 million, in 2021 mainly due to an increase in volume (20.7%) offset by a decrease in the average price of precast products
(18.1%), mainly due to sales mix as we sold higher margin products during 2020.

Cost of Sales

The following table sets forth a breakdown of our cost of sales by segment for 2021 and 2020:

Year ended December 31,

2021 2020
(in millions of S/) % (in millions of S/) %
Cement, concrete, mortar and precast (1,233.7) 89.5 (817.7) 88.8
Quicklime (33.5) 2.4 (27.5) 3.0
Construction supplies (110.4) 8.0 (75.2) 8.2
Other (0.7) 0.1 (0.6) -
Total (1,378.3) 100.0 (921.0) 100.0

Our total cost of sales increased by 49.7%, or S/457.3 million, to S/1,378.3 million for 2021, from S/921 million for 2020, primarily due to the following factors:

● a 50.9%, or S/416.0 million, increase in the cost of sales of cement, concrete and precast in 2021, in line with increased sales, as well as the use of imported clinker due to
the sudden and sharp increase in cement sales volume;

● a 21.8%, or S/6.0 million, increase in the cost of sales of quicklime, in line with increased sales; and

● a 46.8% or S/35.2 million, increase in the cost of sales of construction supplies, mainly due to an increase in sales volume.

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 The following table sets forth the composition of our cost of sales of cement, concrete, mortar and precast for 2021 and 2020:

Year ended December 31,

2021 2020 Variation
(in millions of S/) %
Cement (1,000.9) (662.3) 51.1%
Concrete, pavement and mortar (196.9) (124.7) 57.9%
Precast (35.9) (30.7) 16.9%
Total (1,233.7) (817.7) 50.9%

Our cost of sales represented 71.1% of our sales revenue in 2021, compared to 71.0% in 2020. Our total cost of sales of cement, concrete and precast increased by 50.9%, or
S/416.0 million, in 2021, primarily due to the following factors:

● cost of sales of cement increased by 51.1%, or S/338.6 million, mainly due to an increase in sales volume sold (39%) as well as an increase in production costs (12.1%)
mainly due to the use of imported clinker;

● an increase in the cost of sales of concrete, pavement and mortar of 57.9%, or S/72.2 million due to an increase in sales volume sold (62.9%), offset by a decrease in
production costs (5.0%), as there was a higher dilution of fixed costs; and

● a 16.9% increase in the cost of sales of precast, mainly due to increased sales volume (20.7%) offset by a decrease in production cost (4.0%) mainly due to sales mix, since
we sold lower margin products during the first months of the year.

Gross Profit

The following table sets forth a breakdown of our gross profit and gross profit margin by segment for 2021 and 2020:

Year ended December 31,

2021 2020
Gross profit Gross profit
Gross profit margin Gross profit margin
(in millions (in millions
of S/) % of S/) %
Cement, concrete, mortar and precast 550.8 30.9 367.5 31.0
Quicklime 5.6 14.3 5.0 15.4
Construction supplies 3.5 3.1 3.0 3.8
Other (0.4) N/R (0.2) —
Total gross profit 559.5 28.9 375.3 29.0

Total gross profit increased by 49.1%, or S/184.2 million, to S/559.5 million in 2021, from S/375.3 million in 2020, mainly because of increased sales, despite the use of
imported clinker to satisfy the additional demand. Our gross profit margin (i.e., gross profit as a percentage of net sales) for 2021 was 28.9% compared to 29.0% for 2020.

The following table sets forth a breakdown of our gross profit and gross profit margin for the cement, concrete, mortar and precast segment for 2021 and 2020:

Year ended December 31,

2021 2020 Gross profit
Gross profit Gross profit
Gross profit margin Gross profit margin margin variation
percentage
(in millions of S/) % (in millions of S/) % points
Cement 534.0 34.8 361.6 35.3 (0.5)
Concrete, pavement and mortar 16.6 7.8 1.4 1.1 6.7
Precast 0.2 0.6 4.5 12.8 (12.2)
Total gross profit 550.8 30.9 367.5 31.0 (0.1)

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 Gross profit margin for cement, concrete and precast decreased slightly by 0.1 percentage points in 2021 compared to 2020. This was due mainly to a decrease in cement
margin (0.5 percentage points) due to higher cost of using imported clinker, offset by an increase in concrete margin (6.7 percentage points) mainly due to higher dilution of fixed costs
because of higher sales, and a decrease in precast margin (12.2 percentage points).

Operating Income (Expense)

Our operating expenses primarily reflect administrative and selling and distribution expenses. In 2021, our operating expenses increased by S/42 million to S/241.2 million from
S/199.2 million in 2020, mainly due increased sales.

Administrative Expenses

The following table sets forth the composition of our administrative expenses for 2021 and 2020:

Year ended December 31,

(in millions of S/) 2021 2020
Personnel expenses 96.9 76.3
Third-party services 59.9 48.7
Board of directors compensation 6.4 6.0
Depreciation and amortization 16.6 16.6
Taxes 5.6 5.3
Others 10.7 10.5
Total 196.1 163.4

Our administrative expenses increased by 20.0%, or S/32.7 million, to S/196.1 million in 2021 from S/163.4 million in 2020. Personnel expenses increased by S/20.6 million
mainly due to increased workers profit sharing, in line with increased income tax base and increases in the exchange rate. Third-party services increased S/11.2 million, mainly COVID-
19 related expenses to comply with protocols to ensure the safety of our workers, software and licenses, training and workers’ compensation. It is also important to note that,
administrative expenses during a period of 2020 were low due to budget restrictions after the halt in production and commercialization.

Administrative expenses related to the cement, concrete, mortar and precast segment accounted for approximately 97.5% of total administrative expenses for 2021 compared to
approximately 96.4% for 2020. Administrative expenses related to the construction supplies, quicklime and other segments accounted for approximately 1.4%, 0.6% and 0.5%,
respectively, of total administrative expenses for 2021 compared to approximately 1.8%, 0.9% and 0.9% respectively, for 2020.

Selling and Distribution Expenses

The following table sets forth the components of our selling and distribution expenses for 2021 and 2020:

Year ended December 31,

(in millions of S/) 2021 2020
Personnel expenses 33.9 26.3
Advertising and promotion expenses 5.6 3.3
Other 12.0 10.5
Total 51.5 40.1

Our total selling and distribution expenses increased by 28.4%, or S/11.4 million, to S/ 51.5 million in 2021 from S/40.1 million in 2020, primarily due to an increase in variable
salaries, in line with increased sales.

Selling and distribution expenses related to the cement, concrete, mortar and precast segment represented approximately 97.5% of total selling and distribution expenses for
2021, compared to 96.4% for 2020. Selling and distribution expenses related to construction supplies, quicklime, the and other segments represented approximately 1.4%, 0.6% and
0.5%, respectively, of total selling and distribution expenses for 2020, compared to 1.8%, and 0.9%, respectively, for 2020.

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Other Operating Income, Net

Our other operating income, net increased S/2.1 million, to S/6.4 million in 2021 from S/4.3 million in 2020, mainly due to mainly due to rental of raw material unloading
equipment and income from the refund of selective consumption tax.

Other Expenses, Net

Our other expenses, net increased by S/4.0 million, to S/94.2 million in 2021 from S/90.2 million in 2020.

Income Tax Expense

Our income tax expense increased by 153.3%, or S/42.9 million, to S/70.9 million for 2021 from S/28.0 million for 2020, mainly due to an increase in profit before income tax,
as it was unusually low during 2020, due to the effects of the COVID-19 pandemic. Our effective tax rate for 2021 was 31.7% , 32.6% in 2020, and 32.1% for 2019.

Profit for the period

As a result of the foregoing, our profit for 2021 increased by 164.6%, or S/95.3 million, from S/57.9 million for 2020 to S/153.2 million for 2021, mainly due higher operating
profit, as sales recovered strongly from the effects of the COVID-19 pandemic in 2020, reaching record levels.

For a comparison of our results of operations for the year ended December 31, 2020 to the year ended December 31, 2019, please see our annual report on Form 20-F 2020 for
the year ended December 31, 2020.

Liquidity and Capital Resources

Our main cash requirements are our operating expenses, capital expenditures relating to the maintenance and expansion of our facilities, the servicing of our debt, the payment
of dividends and payment of taxes. Our primary sources of cash have been cash flow from operating activities, and our issuance of Senior Notes and, to a lesser extent, loans and other
financings. We believe that these sources of cash will be sufficient to cover our working capital needs in the ordinary course of our business.

Cash Flows

The table below sets forth certain components of our cash flows for the years ended December 31, 2021, 2020 and 2019.

Year ended December 31,

(in millions of S/) 2021 2020 2019
Net cash flows from operating activities 170.6 331.4 205.1
Net cash flows used in investing activities (91.8) (48.4) (79.6)
Net cash flows used in financing activities (130.1) (43.8) (106.8)
Increase (decrease) in cash (51.3) 239.2 18.7

Cash Flows from Operating Activities

Net cash flow from operating activities decreased by 48.5% or S/160.8 million, to S/170.6 million in 2021 from S/331.4 million in 2020, mainly due to inventory purchases,
decreased accounts receivables and higher tax payments as our results of operations increased.

Cash Flows used in Investing Activities

Net cash flows used in investing activities were S/91.8 million for 2021, and were primarily related to maintenance capex for our cement plants.

Cash Flows used in Financing Activities

Net cash flows used in financing activities were S/130.1 million for 2021, and were primarily due to dividends paid to our shareholders. During 2021, an extraordinary dividend
was given, explaining the increase compared to 2020 and 2019

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Indebtedness

As of December 30, 2021, the Company’s total outstanding debt reached S/1,545.4 million (equivalent to US$386.5 million). This debt is primarily composed by the
outstanding part of the international bond issued in February 2013, the two series of local bonds issued in January 2019 and short-term loans.

As of December 31, 2021, the Company maintains cross currency swap hedging agreements for US$132 million in order to mitigate foreign exchange risks related to
U.S.dollar-denominated debt. The adjusted debt in soles considering the exchange rate of the cross currency swap hedging agreements amounts to S/1,435.3 million (equivalent to
US$359 million).

As of
December 31,
(amounts in millions of S/) 2021 Interest rate Maturity Date

Short-term promissory notes 79.5 2.62% January 10, 2022

Short-term promissory notes 79.5 2.62% January 10, 2022
Mid-term promissory notes 72.0 1.8% July 8, 2022
Mid-term promissory notes 110.0 1.55% December 23, 2022
Mid-term promissory notes 110.0 1.55% December 22, 2022
Senior Notes due 2023 525.4 4.5% February 8, 2023
Senior Notes due 2029 259.5 6.69% February 1, 2029
Senior Notes due 2034 309.4 6.84% February 1, 2034

International Bonds. In February 2013, we issued US$300,000,000 of our 4.50% Senior Notes due 2023 in our inaugural international bond offering. A portion of the proceeds
from this offering were used to prepay amounts outstanding on our secured loan agreement with BBVA Banco Continental, and the remaining proceeds was used in capital expenditures
incurred in connection with the construction and operation of the new Piura plant and our cement business. The notes were issued pursuant to Rule 144A under the Securities Act and in
compliance with Regulation S under the Securities Act, and listed on the Irish Stock Exchange.

The indenture pursuant to which the notes were issued contains certain covenants, including restrictions on our and our restricted subsidiaries’ ability to incur further
indebtedness or issue disqualified stock and preferred stock, unless the following conditions are met:

● the fixed charge coverage ratio for our most recently ended four fiscal quarters for which internal financial statements are available immediately preceding the date on
which such additional indebtedness is incurred or such disqualified stock or such preferred stock is issued, as the case may be, would have been at least 2.5 to 1.0; and

● the consolidated debt to adjusted EBITDA ratio for our most recently ended four fiscal quarters for which internal financial statements are available immediately preceding
the date on which such additional indebtedness is incurred or such disqualified stock or such preferred stock is issued, as the case may be, would have been no greater than
3.5 to 1.0, in each case, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional indebtedness had been
incurred or the disqualified stock or the preferred stock had been issued, as the case may be, at the beginning of such four fiscal quarters.

The indenture also contains restrictions on our ability and that of our restricted subsidiaries to incur liens and to merge, consolidate or transfer all or substantially all of our
assets.

In management’s opinion, we were in compliance with all of applicable covenants as of the date of this annual report.

The subsidiaries that guarantee the notes are those related to our cement business namely, Cementos Selva S.A., Distribuidora Norte Pacasmayo S.R.L., Empresa de
Transmisión Guadalupe S.A.C., Dinoselva Iquitos S.A.C. and Calizas del Norte S.A.C., in liquidation.

In December 2018, we purchased US$168,388,000 or approximately 56.13% of the total outstanding bonds by means of a partial cash tender offer (local bond program).

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 Local Bonds. On January 8, 2019, the General Shareholders’ Meeting approved the issuance of a local bond program for up to S/1,000 million. On January 31, 2019, we issued
two series of local bonds for a total of S/570 million. One in the aggregate principal amount of S/260 million bearing interest a rate of 6.68750% for a term of 10 years, and another in
the aggregate principal amount of S/310 million bearing interest at a rate of 6.84375% for a term of 15 years. The rates and terms obtained benefit our financial costs structure, with
lower cost of capital, an extended maturity and less exposure to currency fluctuations.

Medium-term Corporate Loan under “Club Deal” modality. On August 6, 2021, we entered into a S/860,000,000 medium-term corporate loan in a “Club Deal” format with
Banco de Crédito del Perú S.A. and Scotiabank Perú S.A.A. Amounts borrowed under this loan bear interest at a rate of 5.82%. The loan will allow for the payment of all the financial
obligations that the Company maintains with maturity until February 2023 and will be disbursed based on the maturity of each of them. The first disbursement amounted to
S/159,000,000, was made on January 2022 and was used to pay the short-term loans described under “—Short-term Loans.” The loan conditions include a grace / availability period of
18 months from August 6, 2021 and a payment term of seven years from the last disbursement, which is expected to be in February 2023. Commencing in February 2023, the loan will
be paid in 22 equal quarterly installments.

Under this loan, the Company must comply with the following financial covenants:

a. mainatain a debt ratio (Financial Debt / EBITDA) of no more than 3.50 to 1;

b. maintain a debt service coverage ratio (FCSD / SD) of at least 1.15 to 1; and

c. maintain a debt service coverage ratio (EBITDA / SD) equal to 1.50 to 1.

In addition, the Company is required to comply with certain customary restrictive and affirmative covenants.

Derivative Financial Instruments. As of December 31, 2021, we maintain cross currency swap hedging agreement in aggregate principal amount of US$132 million to hedge
against the foreign exchange risks associated with our U.S. dollar-denominated debt.

Short-term loans. As of December 31, 2021, two loans, each in the amount of S/79,500,000, in U.S. dollars and soles with Banco de Crédito del Perú S.A.were obtained for
working capital, have current and medium-term maturity and accrue interest at effective annual rates of 2.20 and 2.62 percent, respectively.

During 2021, the net loss originated by the exchange difference was approximately S/7,086,000 and, during 2020, the net loss from exchange difference amounted to
S/9,831,000. All these results are presented in the caption “Gain (loss) from exchange difference, net” of the consolidated statement of income.

Capital Expenditures

See “Item 4—Information on the Company—A. History and Development of the Company—Capital Expenditures.”

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B. Research and Development, Patents and Licenses, Etc.

Since 2016, Pacasmayo embarked on the path of innovation and digital transformation, a journey that has allowed us to explore new ways of doing things, interact with
environments with a lot of uncertainty, as well as propose a cultural change. After all this time and with much experience gained, we were ready to rethink a new strategy, seeking to
accelerate and extend the adoption of innovation and digital transformation initiatives in all areas of the company, making it necessary to decentralize their execution.

Pacasmayo has become a company that provides construction solutions not only derived from cement, but that satisfy the needs of any actor in the construction sector. That is
why today Pacasmayo complements its product research capacity with research focused on people. In other words, knowing who the hardware sellers, self-builders, construction
foremen, transporters or construction residents really are, allows us to find new opportunities for Pacasmayo.

C. Trend Information

Cement Market

The Peruvian Cement Market

Peru’s cement production is segmented into three principal geographic regions: the northern region, the central region, including Lima’s metropolitan area, and the southern
region. The table below sets forth selected data with respect to each region in Peru and the corresponding cement manufacturers. Market share data is based on metric tons of cement
delivered during 2021.

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Geographic Breakdown

Northern Region (thousands of metric tons)

Plant 2017 2018 2019 2020 2021 % share

Pacasmayo Group 2,267 2,364 2,615 2,576 3,625 26.6
Imports 76 32 13 38 62 0.5
Total 2,343 2,396 2,628 2,614 3,687 27.1

Central Region (thousands of metric tons)

Plant 2017 2018 2019 2020 2021 % share

UNACEM 4,993 5,058 5,316 4,172 5,838 42.8
Caliza Inca 387 448 513 382 492 3.6
Imports 496 885 663 493 511 3.8
Total 5,876 6,391 6,492 5,047 6,841 50.2

Southern Region (thousands of metric tons)

Plant 2017 2018 2019 2020 2021 % share

Grupo Yura 2,618 2,597 2,584 2,019 2,904 21.3
Imports 42 65 98 189 194 1.4
Total 2,660 2,662 2,682 2,208 3,098 22.7
Total Regions 10,879 11,449 11,802 9,869 13,626 100.0%

Sources: ASOCEM, INEI, ADUANET (SUNAT).

Although a large part of housing construction is mainly concentrated in the Lima metropolitan area, located in the central region of Peru, the housing market in the provinces of
Peru, including the northern region, has grown significantly in recent years. Despite this trend, Peru continues to have significant shortages in housing, estimated by the INEI at 1.9
million homes nationwide. Economic growth, particularly in the mining and agribusiness sectors, rising employment levels and the implementation of real estate projects, resulted in the
creation of higher paying jobs, which ultimately resulted in the expansion of the housing market. However, the COVID-19 pandemic had a significant effect on Peru’s poverty levels,
which increased 9.9 percentage points in 2020 when compared to 2019.

Peru continues to have a significant deficit in infrastructure. In recent years, significant efforts have been made to channel investments into the infrastructure sector through a
series of initiatives that range from the creation of financial instruments (such as the infrastructure investment and trust funds) to regulatory changes, to promotion of more public private
partnerships (for example “taxes for infrastructure” which allows private companies to use part of their tax payments to directly finance infrastructure works) to allowing for other
executors, such as the government to government agreements that have recently been signed by Peru and other governments to ensure promptly execution without corruption.

Distribution and Logistics

Peru’s cement market is divided into three regions circumscribed primarily by the location of established production facilities. Our facilities are located in the northern region of
Peru, UNACEM is the main producer in the central region, and Yura in the southern region. Cement is mainly sold in bags of 42.5 kilograms (approximately 94 pounds). However,
cement can also be sold in bulk according to customer requirements.

The transportation and storage of cement requires specialized equipment. A favorable location of the production facilities not only reduces the time required to transport cement
products to distributors and third-party merchants but also diminishes the costs of necessary equipment and resources. The location of a cement plant relative to its distribution network
provides operational efficiencies and advantages that translate into stronger market share.

Cement can be stored in silos for up to 12 months if the silo is completely humidity proof. The typical vehicles used for the transport of cement are adapted to maintain the
necessary environment during shipment. The proximity of production plants and storage centers to distribution centers, third-party vendors and retail outlets, creates a more efficient
supply chain and minimizes the time and resources required to transport products from the production line to the construction site. The streamlined nature of this process ensures that
cement products in the northern region of Peru, for example, reach customers within approximately one week of production. A cement company’s success is inherently linked to the
sophistication of its distribution network and its emphasis on quality assurance throughout the supply chain.

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Competitive Dynamics

The Peruvian cement market is comprised basically of three groups and 2 other plants:

● Cementos Pacasmayo and Cementos Selva, which principally serve the northern region;

● UNACEM, which principally serves the central region;

● Cementos Yura and Cementos Sur, which primarily serve the southern region; and

● Caliza Cemento Inca, located in Cajamarquilla, Lima which principally serves the central region as well as other regions throughout the country.

● Mixercon, located in the city of Lima, mainly serves this city, and to a lesser extent some provinces of the country.

Additionally, there are cement importers that mainly supply the cities of Lima and, to a lesser extent, other provinces of the country.

The level of competitiveness of cement companies generally depends on their cost structure, which is a function of the cost of energy, fuel, costs of raw materials and
transportation. Cement companies in Peru generally compete within the limits of their distribution market, which is determined principally by their geographic locations.

The following are the main characteristics of the cement sector in Peru:

● highly fragmented consumer base;

● relatively low cost of energy and raw materials;

● operations and distribution primarily determined by geographic location; and

● high correlation to auto-construcción and public and private investments.

D. Critical Accounting Estimates

Our consolidated financial statements are prepared in conformity with IFRS, as issued by the IASB. See note 3 to our annual audited consolidated financial statements included
in this annual report.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

General

Our business and affairs are managed by the board of directors in accordance with our by-laws and Peruvian Corporate Law No. 26887 (“Peruvian Corporate Law”). Our by-
laws provide for a board of directors of between seven and eleven members. Between three and five alternate directors may be elected by the shareholders to act on behalf of any director
who is absent from meetings or who is unable to exercise his or her duties, when and for whatever period fixed by the chairman of the board. Alternate directors have the same
responsibilities, duties and powers of directors to the extent they are called to replace them.

Directors are elected at a shareholders’ meeting and hold office for three years. Directors may be elected to multiple terms. Our current board of directors is composed of seven
directors. In the first board meeting held after the annual shareholders’ meeting where members of the board are elected, the board of directors must elect among its members a chairman
and a vice chairman.

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 The board of directors typically meets in regularly scheduled bi-monthly meetings and when called by the chairman of the board or a person representing the chairman.
Resolutions must be adopted by a majority of the directors present at the meeting and the chairman is entitled to cast the deciding vote in the event of a tie.

Duties and Liabilities of Directors

Pursuant to Article 177 of Peruvian Corporate Law, directors are jointly and severally liable to a corporation, shareholders and third parties for any damages caused by abuse of
power, fraud, willful misconduct or gross negligence. In addition, pursuant to Article 3 of Law No. 29720, as of June 26, 2011, directors of companies listed on the Lima Stock
Exchange are also strictly liable for any damages caused as a result of any transactions in which they were involved and which resulted in damages or other losses to the corporation. A
director cannot be found liable if the director expressed disagreement at the time the vote was cast or upon learning of such transaction and if there is a record expressing such
opposition.

Our by-laws prohibit a director from voting on matters in which such director has an interest. In addition, Article 180 of the Peruvian Corporate Law requires a director with a
conflicting interest on a specific matter to disclose such interest and abstain from the deliberation and decision-making process with respect to such matter. A director who violates this
requirement is liable for any damages caused to us and may be removed by a majority of the board of directors upon request of any member of the board or by a majority vote of the
shareholders.

Our by-laws stipulate that Directors’ compensation is determined by the Mandatory Annual General Shareholders’ Meeting at the time it reviews our annual audited financial
statements. The fixed portion of the Chairman’s compensation shall be twice the amount allocated to any other director. If directors are part of one or more Committees, their
compensation may include an additional amount for the work performed as members of such Committees. The additional compensation of the directors may not exceed the aggregate
fixed portion of the compensation that the directors are entitled to receive. Our by-laws do not restrict Directors from voting upon matters relating to their own compensation.

Our by-laws do not prohibit our directors from borrowing from us. However, Article 179 of the Peruvian Corporate Law provides that directors of a company may enter into an
agreement with such company only if the related loan agreement relates to operations the company performs in the regular course of business and in an arms’-length transaction. Further,
a company may provide a loan to a director or grant securities in such director’s favor only in connection with operations that the company usually performs with third parties.
Agreements, credits, loans or guarantees that do not meet the requirements set forth above require prior approval from at least two thirds of the members of the Company’s Board of
Directors. Directors are jointly liable to the company and the Company’s creditors for contracts, credit, loans or securities executed or granted without complying with Article 179 of the
Peruvian Corporate Law.

Neither our by-laws nor Peruvian Corporate Law contain age limit requirements for the retirement or non-retirement of directors.

Board of Directors

The following sets forth our directors and their respective positions as of the date of this annual report. On July 9, 2020 the Annual Shareholder’s meeting was held and the
number of directors was reduced to seven members, alternate directors were not elected and new directors were elected for the period 2020-2023. Ms. Ana María Botella Serrano,
previously an alternate director, and Venkat Krishnamurthy were elected as new members.

Name Position Year of Birth

Eduardo Hochschild Beeck Chairman of the Board 1963
José Raimundo Morales Dasso Vice Chairman of the Board 1946
Ana María Botella Serrano Director 1953
Juan Francisco Correa Sabogal Director 1974
Venkat Krishnamurthy Director 1971
Humberto Nadal Del Carpio Director, Chief Executive Officer 1964
Marco Antonio Zaldívar Garcia Director 1960

The following sets forth selected biographical information for each of the members of our board of directors. The average tenure of board members is 9.96 years. The business
address of each of our current directors is Calle La Colonia 150, Urb. El Vivero, Surco, Lima, Peru.

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 Eduardo Hochschild Beeck. Mr. Hochschild has been a Dependent Director since April 1991 and is currently Chairman of the Board. He is a Mechanical Engineer from Tufts
University, Boston, United States. Mr. Hochschild is also Chairman of Hochschild Mining plc, Inversiones ASPI S.A. and the Board of Directors of UTEC and TECSUP and Director of
the Foreign Trade Society of Peru (COMEX Peru) and expert advisor to the Economic Council of the Episcopal Conference.

José Raimundo Morales Dasso. Mr. Morales has been a Director since March 2008. He has a degree in Economics and Administration from the Universidad del Pacífico, and a
Master’s in Business Administration from the Wharton Graduate School of Finance of the University of Pennsylvania, United States. Between 1970 and 1980, he held various positions
at Bank of America and Wells Fargo Bank. He joined Banco de Crédito del Perú S.A. in 1980 and held senior management positions. He was General Manager of BCP from October
1990 to April 2008. He currently holds the position of Vice Chairman of the Board of Directors of Credicorp LTD., Banco de Crédito del Perú S.A. and Pacífico Cía. Insurance and
Reinsurance. He is also a member of the Board of Directors of Atlantic Securty Bank, Alicorp S.A.A., Pesquera Centinela S.A., Grupo Romero, Cementos Pacasmayo S.A.A., Fosfatos
del Pacífico S.A., Cerámica Lima S.A., Corporación Cerámica S.A. and Inversiones y Propiedades S.A., as well as a member of the Board of Directors of the Peruvian Institute of
Economy.

Ana María Botella Serrano. Mrs. Botella has been Director since July 9, 2020. Previously, she was Alternate Director from September 1, 2019 to July 9, 2020. She has a Law
degree from the Complutense University of Madrid and belongs by opposition to the Superior Body of Civil Administrators of the Spanish State. As a civil servant, she has worked in
the Ministry of the Interior, the Civil Government of La Rioja, the Ministry of Public Works, the Valladolid Treasury Delegation and the Ministry of the Treasury. In 2003 she was
elected Councilor of the Madrid City Council, she has been Second Deputy Mayor and has held the Government Delegations for Employment and Social Services and Environment and
Mobility. In December 2011, she was sworn in as Mayor of the Madrid City Council, a position she held until June 2015. She is currently the Executive President of the Integra
Foundation and Director of Programs at the Atlantic Government Institute. Independent Director

Juan Francisco Correa Sabogal. Mr. Correa has been a director since February 2018. He has a bachelor’s degree in Business Administration from the Universidad de Lima and an
MBA from The Wharton Business School, University of Pennsylvania. Previously, he served as Managing Director with Lazard Freres LLC in its offices in the Middle East of the
United States until July 2017, following a career of more than 11 years with this firm. Mr. Correa was one of the founding members of the firm and was responsible for establishing the
business and developing a client base in the Middle Eastern United States from a variety of industries. Prior to that, Mr. Correa was a Director at Lazard’s Power, Energy &
Infrastructure group in New York, covering a variety of sub-sectors. Mr. Correa also assumed responsibilities connected to Lazard’s efforts in Latin America and was a member of the
Board of Directors of MBA Lazard (Lazard’s former joint venture for Spanish-speaking Latin America). Prior to joining Lazard, Mr. Correa worked at RWE/Thames Water, Merrill
Lynch and Banco de Crédito del Perú S.A. In addition, Mr. Correa has been a consultant to a large number of international and American companies on issues that are not in the public
domain related to strategies for mergers, acquisitions and corporate finance. Mr. Correa has a second degree of affinity with Eduardo Hochschild.

Venkat Krishnamurthy. Mr. Krishnamurthy serves as Director since July 9, 2020. He holds a Bachelor of Science from the Indian Institute of Technology in Kanpur, where he
received the Presidential Gold Medal and a PhD in Computer Science from Stanford University. He is a serial entrepreneur, who has created disruptive business and technology
breakthroughs in Computer Graphics, Enterprise Software, Social Networks, Internet Marketing, IOT, CAD, Laser Scanning, Manufacturing, Metrology, Orthodontics, EAS/Security
and Supply Chain. He is currently co-founder at Alignable, North America’s largest network for small and medium businesses and at Gita Krishnamurthy Vidyalaya a free school for
under-privileged children in South India, as well as board member at privately held internet travel business Grand Circle Corporation. He is an Academy Award winner for Technical
Achievement (2001) for pioneering inventions in the area of animation-ready higher order (polynomial) surface reconstruction from 3-D scanners. Previously, he co-founded Invisalign,
Paraform/Metris, now Nikon Metrology, CTO at OATSystems, now Checkpoint’s RFID/IOT division and Instructor at MIT Professional Education on Radical Innovation. Independent
Director

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 Humberto Reynaldo Nadal Del Carpio. Mr. Nadal joined the Company as Corporate Development Manager in June 2007, has been a Director since March 2008 and CEO since
April 2011. He is an economist graduated from Universidad del Pacífico and has an MBA from Georgetown University. He is also CEO of ASPI, Fosfatos del Pacífico and FOSSAL.
Additionally, he is a director of Ferreycorp and has been Chairman of the Board of Trustees of the Universidad del Pacifico, and Chairman of the Board of Directors of Fondo Mi
Vivienda. In April 2006, he joined Compañía Minera Ares S.A.C. (subsidiary of Hochschild Mining plc) as Corporate Development Manager. Mr. Nadal was also Business,
Administration and Finance Manager of Instituto Libertad y Democracia and General Manager of Socosani S.A. Distinguished among the top three CEOs in the construction industry in
Latin America by Institutional Investor magazine for all years from 2014 to 2021.

Marco Antonio Zaldívar. Mr. Zaldívar has been a Director since March 2017. Certified Public Accountant, graduated from the Universidad de Lima and the Management
Development Program of the PAD of the Universidad de Piura. He has an MBA from the Adolfo Ibáñez School of Management (USA). He has been Chairman of the Board of Directors
of the Lima Stock Exchange. Previously, at Ernst & Young, he was Partner of Risk Management and Regulatory Matters, Senior Partner of the firm’s Audit and Business Advisory
Division. Also, he has been Vice Dean of the College of Public Accountants of Lima, President of the Board of Directors and President of the Good Corporate Governance Committee of
Procapitales. He is currently an Independent Director of Edpyme Santander Consumption and Compañía de Minas Buenaventura, among other positions, with extensive experience in
Corporate Governance issues. Independent Director

Executive Officers

Our executive officers oversee our business and are responsible for the execution of the decisions of the board of directors. The following table presents information concerning
the current executive officers of the company and their respective positions:

Year of
Name Position Year of Birth Appointment
Humberto Nadal Del Carpio Chief Executive Officer 1964 2008
Manuel Bartolomé Ferreyros Peña Chief Financial Officer 1966 2008
Jorge Javier Durand Planas Legal Vice – President 1966 2008
Carlos Julio Pomarino Pezzia Vice – President of the Cement Business 1962 2009
Diego Arispe Silva Central Manager of Human Management and Corporate Social Responsibility 1981 2021
Aldo Bertoli Estrella Central Manager of Commercialization 1969 2016
Ibrahim Chahuan Riveros Central Manager of Construction Solutions 1988 2021
Ely Hayashi Hirahoka Central Manager of Finance 1982 2021
Tito Alberto Inope Mantero Central Manager of Industrial Operations 1972 2015
Diego Reyes Pazos Central Manager of Supply Chain 1977 2013
Hugo Villanueva Castillo Central Manager of Operations 1962 2012

The following sets forth selected biographical information for each of our executive officers:

Jorge Javier Durand Planas. Mr. Durand joined the Hochschild Group in 1994 and has been the General Counsel and Legal Vice President of the Company since 2008.
Previously, he was Legal Vice President of Hochschild Mining plc. He is a lawyer graduated from the Universidad de Lima (Peru) and a Master of Business Administration from the
Universidad del Pacífico (Peru). Among other studies, he participated in the Management Program for Lawyers and in the Corporate Governance and Performance Program of the Yale
School of Management (United States), in the Strategic Negotiations Program of Harvard Business School (United States) and in the Prince of Wales,Business & Sustainability Program
of the University of Cambridge Institute for Sustainability Leadership (United Kingdom). Currently, Mr. Durand is a member of the Board of Directors of Inversiones ASPI S.A. and is a
member of the Board of Directors of Fosfatos del Pacifico, UTEC and TECSUP.

Manuel Bartolomé Ferreyros Peña. Mr. Ferreyros was Alternate Director from March 2008 to July 9, 2020, and Vice President of Administration and Finance since January
2008. He is a member of the Board of Directors of Fosfatos del Pacífico S.A. and FOSSAL S.A.A. Mr. Ferreyros has a Bachelor degree in Business Administrator from the Universidad
de Lima, a multinational MBA from the Adolfo Ibáñez School of Management, Miami and an MBA from the New York College of Insurance. Mr. Ferreyros has participated in the
Senior Management Program of the Central American Institute of Business Administration (INCAE) and in the CEO’s Management Program at the Kellogg School of Management,
among others. Before joining the Company, Mr. Ferreyros was CEO at La Positiva Seguros y Reaseguros. Distinguished among the three best CFOs in the construction industry in Latin
America by Institutional Investor magazine between 2014 and 2021.

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 Carlos Julio Pomarino Pezzia. Mr. Pomarino has been Vice President of the Cement and Construction Solutions Business since July 2017. He has a Bachelor’s degree in
Economic Engineering from the Universidad Nacional De Ingenieria and an MBA from the Adolfo Ibáñez Business School and ESAN. In addition, he has participated in the Senior
Management Program (PAD) of the Universidad de Piura and completed the Certification of independent Board members at Centrum Católica. He was Vice President of the Cement
Business from 2012 to 2017, Deputy General Manager from 2009 to 2012, Commercial Manager of the Company from 2002 to 2009 and General Manager of Distribuidora Norte
Pacasmayo S.R.L. from 1998 to 2009. Before joining the Company, Mr. Pomarino worked as Administration and Finance Manager at Comercializadora de Alimentos S.A. and as Head
of Finance at the Fabrica de Tejidos San Jacinto S.A.

Diego Arispe Silva. Mr. Arispe has been the Central Manager of Human Management since June 2019 and of Corporate Social Responsibility since January 2022. He is a
lawyer graduated from the Pontificia Universidad Católica del Perú and has an MBA from Columbia Business School (United States). He has worked in the company for more than 10
years, having held various positions in the areas of Human Management, Social Responsibility, and Legal, and was part of the team in charge of the implementation of our cement plant
in Piura, as Project Controller.

Aldo Bertoli Estrella. Mr. Bertoli has been the Central Manager of Commercialization since May 2016. He has a university degree in Business Administration from the
Universidad del Pacífico and a Master’s degree in Business Administration from the Universidad de Piura. Before joining our company, Mr. Bertoli worked for five years as Peru-
Ecuador-Bolivia Sales Manager at Pepsico Inc. Previously, he spent 12 years at Procter& Gamble in various commercial positions, including 4 years in Bolivia as Country Manager.

Ibrahim Chahuan Riveros. Mr. Chahuan has been the Central Manager of Construction Solutions since January 2022. He has a Bachelor of Business Administration from
Universidad del Pacífico and is currently pursuing an Executive MBA at Northwestern University - Kellogg School of Management. Mr. Chahuan has 10 years of experience with the
company, having held various positions primarily in the marketing area. He participated in key corporate finance projects for the development of the company, such as the issuance of
bonds for USD 300 MM and for nearly 7 years he has been in charge of promoting and developing the company’s construction solutions.

Ely Hayashi Hirahoka. Ms. Hayashi has been the Central Manager of Finance, since January 2022. She has a Bachelor of Business Administration from Universidad del
Pacífico and an MBA from IE Business School in Madrid Spain. Ms. Hayashi joined the company in 2006 and has held various positions in operational and financial areas throughout
her more than 15 years with the Company.

Tito Alberto Inope Mantero. Mr. Inope has been the Central Manager of Industrial Operations since January 2022. He is an Economist from the Universidad de Lima and has a
Master of Business Administration (MBA) from the Universidad Peruana de Ciencias Aplicadas (UPC) as well as the senior management program (PAD). Mr. Inope joined the company
in 1996 and has held various management positions throughout his more than 25 years with the Company.

Diego Reyes Pazos. Mr. Reyes has been Central Manager of Supply Chain, Administration and Risks since July 2013. He has solid experience in supply chain, project
development, system/process design and implementation, and financial analysis. He is Busines Administrator from Universidad de Lima and holds a master’s degree in Business
Administration by Universidad de Piura. Prior to joining our Company, Mr. Reyes served as Operations and Finance Manager at Belcorp, Senior Business Process Expert for Latin
America at SAB Miller, Project Manager in the Vice-Presidency of Supply Chain at UCP Backus & Johnston, among others.

Hugo Pedro Villanueva Castillo. Mr. Villanueva has been Central Manager of Operations at Cementos Pacasmayo and Cementos Selva since January 2012. Previously, he
served as the Operations Manager at Cementos Selva for more than nine years. He has been working at the Company for more than 20 years and has held various positions in the areas
of Quality, Production and Operations. He is a Chemical Engineer graduated from the Universidad Mayor de San Marcos. He holds an MBA by Tecnológico de Monterrey, Mexico, has
participated in the General Management Program of the PAD of Universidad de Piura and in the Senior Management Program of INCAE in Costa Rica. Additionally, he has completed
various industry specialization programs.

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B. Compensation

As of December 31, 2021, the total short-term compensations amounted to S/22,678,000 (2020: S/21,859,000 and 2019: S/23,692,000) and the total long-term compensations
amounted to S/9,763,000 (2020: S/5,759,000 and 2019: S/6,523,000), and there were no post-employment or contract termination benefits or share-payments.

In 2011, we decided to pay each of our directors a yearly compensation of US$200,000 (US$400,000 in the case of our Chairman). In addition, compensation paid to certain of
our directors for serving on board committees will be, in aggregate per year, not higher than the total amount paid to our directors for serving on our board of directors. Our 2021 director
compensation was approved at our annual shareholders’ meeting.

Neither we nor any of our subsidiaries have entered into any agreement that provides for any benefit or compensation to any director or executive officer after expiration of his
or her term.

Executive Compensation Plan

Our business operates in a competitive environment where highly trained professionals and executives are in demand. Continued expansion of the Peruvian economy over the
past several years has created new opportunities resulting in additional competition for local talent. As a result, we have in place compensation plan to retain our key executives and
attract new executives with the skills and experience required to achieve our strategic objectives and create long-term value for our shareholders. We believe that executive
compensation should reward individual performance and the achievement of our strategic objectives.

Our executive compensation plan has been designed to achieve the following primary objectives:

● recruit, retain and incentivize highly talented and dedicated executives with the skills and experience required to manage and operate our business and create long-term
value for our shareholders;

● provide our executive officers with compensation opportunities that are fair, reasonable and competitive in the market;

● compensate based on our performance and individual performance;

● promote transparency by using clear and straightforward compensation metrics; and

● align the interests of our executive officers with the interests of our shareholders, both in the short-term and long-term.

Our executive compensation plan is in addition to workers’ profit sharing requirements applicable to all of our employees, including our executive officers, under Peruvian
labor laws.

Our compensation plan has been designed to compensate our executives through a combination of base salary, a cash bonus incentive and other benefits that we believe are fair
and equitable to us and our shareholders and competitive in the market. We believe that the combination of salary, cash bonus incentive and other benefits help distinguish us from other
companies in the cement industry in Peru, and serve as an important retention tool as we compete for executive talent. We also believe that it will provide an appropriate compensation
structure to retain our executives, reward them for individual performance, and induce them to contribute to the creation of long-term value.

Components of Executive Compensation

The key components of our executive compensation plan are:

● base salary;

● short-term cash bonus incentives; and

● long-term cash bonus incentives.

We believe that the use of few and straightforward compensation components promotes the effectiveness and transparency of our executive compensation plan and enables us
to be competitive. No formula or specific weightings or relationships are used to allocate the various components in our executive compensation plan. Each component has an important
role in implementing our executive compensation philosophy and in meeting the executive compensation objectives described above.

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Base Salary

We compensate our executive officers and other employees with a base salary to compensate them for services rendered on a day-to-day basis during the fiscal year. Base
salaries provide stable compensation to executives, allow us to recruit and retain highly talented and dedicated executives and, through periodic merit increases, provide a basis upon
which executives may be rewarded for individual performance.

Short-Term Cash Bonus Incentives

As a key component of our compensation plan, we currently provide our executive officers the opportunity to earn annual cash bonuses based on the achievement of our short-
term business objectives. As additional cash compensation that is contingent on achieving our business objectives, cash incentives augment the base salary component while being tied
directly to corporate and individual performance objectives.

Long-Term Cash Bonus Incentives

In addition, as a tool to promote retention of our executive officers, we have implemented a deferred cash incentive program that we believe aligns compensation with corporate
performance, allows us to recruit and retain competent executive talent, and rewards for superior performance measured over the long-term. Our plan provides for the payment of
bonuses in addition to the annual bonuses that are paid to our executive officers.

Our long-term bonus incentive program features the following key components:

● available to senior executives who have been employed by our company at this level for at least four years;

● at the end of each year, the cash bonus will be accrued in a “personal virtual account” for the benefit of the relevant executive;

● at the beginning of the sixth year the relevant executive will receive the amount accrued during the first four years;

● additional annual bonuses will be accrued for the following four years and a final payout will be made at the end of the eighth year from the creation or beginning of the
plan; and

● if the employee decides to voluntarily leave the company before a scheduled distribution, he will not receive this compensation.

Our plan provides that the executive must meet the following eligibility criteria:

● must be no older than 58 years at the time his or her participation in the incentive program begins;

● must have at least four years as senior executives with either our company, or our subsidiaries or affiliates;

● is a professional who is deemed to have characteristics that are attractive to the market; and

● the executive’s departure is deemed by the board of directors or a committee thereof to have an adverse effect on our performance.

C. Board Practices

For information about the date of expiration of the current term of office and the period during which each director has served in such office, see “Item 6. Directors, Senior
Management and Employees—A. Directors and Senior Management.”

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Benefits upon Termination of Employment

There are no contracts providing for benefits to directors upon termination of employment.

Board Committees

We have four board committees comprised of members of our board of directors, which are described below.

Executive Committee

Our by-laws permit us to delegate an executive committee composed of three to five members of the board of directors. Mr. Eduardo Hochschild Beeck (chairman),
Mr. Raimundo Morales Dasso and Mr. Humberto Nadal del Carpio are currently members of our executive committee. Our executive committee is mainly responsible for (i) supervising
and supporting our management in executing the resolutions passed by our board of directors, (ii) executing the strategy approved by our board of directors, (iii) meeting short-term and
medium-term goals, as well as designing action plans to meet such goals in accordance with the long-term strategy and goals approved by our board of directors, (iv) approving
agreements or transactions involving amounts greater than US$3 million but less than US$20 million, (v) monitoring compliance with the annual budget and approving any significant
deviations from approved levels of working capital, (vi) making strategic decisions that do not rise to the level of a full board approval, and (vii) approving and executing new projects in
amounts up to US$20 million.

Our executive committee also performs the functions of a compensation committee.

Antitrust Best Practices Committee

The antitrust best practices committee is composed of three members: Mr. Raimundo Morales Dasso, Mr. Humberto Nadal del Carpio and Mr. Eduardo Hochschild Beeck. The
antitrust best practices committee is responsible for informing our employees about our competition best practices and for monitoring compliance with such practices, including
compliance with antitrust regulations.

Audit Committee

Our audit committee is composed of three directors: Mr. Marco Antonio Zaldívar, who is the chairman of the audit committee, Mr. Venkat Krishnamurthy and Mrs. Ana María
Botella. All of the members of the audit committee qualify as independent in accordance with the SEC rules applicable to foreign private issuers Mr. Marco Antonio Zaldívar also
qualifies as a financial expert under SEC rules. The audit committee is responsible for (i) reviewing our financial statements; (ii) evaluating our internal controls and procedures, and
identifying deficiencies; (iii) the appointment, compensation, retention; and (iv) oversight of our external auditors. Additionally, it is responsible for informing our board of directors
regarding any issues that arise with respect to the quality or integrity of our financial statements, our compliance with legal or regulatory requirements, the performance and
independence of the external auditors, or the performance of the internal audit function; and overseeing measures adopted as a result of any observations made by our shareholders,
directors, executive officers, employees or any third parties with respect to accounting, internal controls and internal and external audit, as well as any complaints regarding management
irregularities, including anonymous and confidential methods for addressing concerns raised by employees.

Corporate Governance Committee

Our corporate governance committee is composed of three directors. The current members are Mr. Eduardo Hochschild Beeck Correa (chair), Mr. Juan Francisco Correa and
Mr. Humberto Nadal del Carpio. The corporate governance committee is responsible for assisting the board on its oversight of director nomination and committee assignments, as well
as the board and CEO successions. Similarly, it is responsible for assisting in the implementation of the committee and board self-assessment surveys and the review of governance
principles.

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D. Employees

As of December 31, 2021, we had a total of 1,683 permanent employees. The following table sets forth a breakdown of our employees by category as of the periods indicated.

As of December 31,
2021 2020 2019
Management 39 40 36
Administrative personnel 1,325 1,299 1,364
Plant workers 319 328 321
Total(1) 1,683 1,667 1,721

(1) Workers from our social venture Acuícola Los Paiches S.A.C. are excluded from these calculations.

As of December 31, 2021, approximately 19.7% of our employees were members of labor unions (Sindicato Único de Trabajadores de Cementos Pacasmayo S.A.A, Sindicato
de Trabajadores de Distribuidora Norte Pacamasyo S.R.L , Sindicato Único de Trabajadores de la Empresa Distribuidora Norte Pacasmayo S.R.L.-Dino) that represents its members in
collective bargaining negotiations. Our management and administrative personnel are not members of a labor union. Labor relations for unionized and non-unionized employees in our
production facilities, including compensation and benefits, are governed by a collective bargaining agreement that is renewed annually. In March 2019, three-year Union Agreements
were signed with our largest union.

Under Peruvian law, it is illegal to lay off employees without cause or without following certain formal procedures. In addition, employees who are laid off are entitled to
severance payments upon termination of their employment in an amount equal to one and a half month’s salary for each full year of work performed with a maximum payment equal to
12 monthly salaries provided they are indefinite term employees. In case of fixed term employment relationship the severance payment is equal to 1.5 monthly salaries for each month,
until the completion of the contract, with a maximum of 12 monthly salaries.

Our employees are enrolled in either the national public pension fund or a privately managed pension fund. In both cases the applicable payment (approximately 13%) is
withheld by the employer from the employees’ monthly salary. As of December 31, 2021, approximately 10.9% of our employees were enrolled with the national public pension fund
and 88.4% with a private social pension plan.

2020-2021 was one of the most challenging periods in Pacasmayo’s history. The global COVID-19 pandemic has created unprecedented impacts in Peru, and on the national
economy, namely a collapsed healthcare system, more than 37,000 dead, strict confinement measures that paralyzed the country’s main economic activities and which caused a
contraction in GDP of 11.1% in 2020, as well as the loss of millions of jobs. The economy bounced back in 2021, reaching a 13.2% GDP growth rate.

This situation has not only affected our operations, but also our employees, customers, suppliers, and surrounding communities. At Pacasmayo, we decided to tackle these
challenges with responsibility and empathy, working with our stakeholders to overcome the emergency together. Thus, we made great efforts that have transformed us into an
organization that is ever more focused on the health and safety of its employees, more supportive, digital, and flexible, and which have allowed us to continue to generate value in these
difficult times.

In Pacasmayo we are in a process of constant cultural transformation. Our goal is the internalization of our purpose, which is to build together the future we dream of.
Therefore, our goal is to accompany the business, towards a customer-oriented culture that offers solutions. Always having as a guide the purpose and our cultural principles to adapt and
respond to the different needs that the market demands of us.

We also seek to build high levels of engagement with our workers. Our strategy works with leaders to build strong relationships with their teams, supporting individual needs
and focusing on helping them grow. This allows us to have committed teams that share the same goals and values, co-create the success of the company and at the same time focus on
growing and improving their personal well-being.

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 The strategy has two major measurements that take place in July and November of the year and has two important supports:

● Periodic measurements that help us to know the feelings and thoughts of our collaborators on some specific dimension and/or situation.

● Engagement promoters: our culture and transformation allies are the connection between the teams and the Human Resources area.

Regarding the results of our engagement surveys, for the second consecutive year, we have had 100% participation, which also shows an adaptation to digital change, and we
managed to exceed our goal of 81%:

We believe we have a good relationship with our employees. In the past, we have not experienced any material strikes, work stoppages or any other significant disruptions.

E. Share Ownership

As of March 31, 2022, persons who are currently members of our board of directors and our executive officers held as a group 1,451.4 of our common shares and no investment
shares (not including common shares held by Mr. Eduardo Hochschild through ASPI). This amount represented less than 1% of our outstanding share capital as of March 31, 2022.
Mr. Eduardo Hochschild through ASPI indirectly controls 211,985,547 common shares.

Mr. Manuel Ferreyros, Mr. Humberto Nadal, Mr. Raimundo Morales, Mr. Carlos Pomarino own individually and in the aggregate less than 1% of our common shares.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

As of March 31, 2022, our issued and outstanding share capital was composed of 423,868,449 common shares. In addition, as of March 31, 2022, we had 40,278,894 non-
voting investment shares outstanding, 36,040,497 of which were held in treasury.

The following table sets forth the beneficial ownership of our common shares and non-voting investment shares as of March 31, 2022.

As of March 31, 2022

Common shares Investment shares Total
Number of Number of Number of
shares shares shares
Shareholder (in millions) Percentage (in millions) Percentage (in millions) Percentage
ASPI (1) 211,985.5 50.0% — — 211,985.5 45.7%
CPSAA (treasury shares) — — 36,040.4 89.5% 36,040.4 7.8%
IN—Fondo 3 (AFP Integra) 25,217.1 6.0% — — 19,434.2 4.2%
RI—Fondo 2 (AFP Prima) 23,940.5 5.7% — — 22,576.7 4.9%
RI—Fondo 3 (AFP Prima) 18,346.0 4.3% — — 18,300.9 3.9%
PR—Fondo 2 (PROFUTURO) 19,881.9 4.7% — — 20,323.5 4.4%
PR—Fondo 3 (PROFUTURO) 18,909.9 4.5% — — 20,212.6 4.4%
Directors and officers(2) 1,451.4 0.3% — — 1,351.8 0.3%
American Depositary Receipt Program 34,179.2 8.1% — — 31,139.0 6.7%
Other shareholders 69,956.9 16.4% 4,238.5 10.5% 82,782.7 17.7%
Total 423,868.4 100.0% 40,278.9 100.0% 464,147.3 100.0%

(1) ASPI is indirectly controlled by Mr. Eduardo Hochschild through Farragut Holdings, Inc. (Cayman Islands). Mr. Eduardo Hochschild is a member of the board of directors of our
company. The shares expressed here include those held through ASPI.

(2) See “Item 6. Directors, Senior Management and Employees—Share Ownership” for information regarding shares of our common stock owned by members of our board of directors
and executive officers. The number of common shares held by directors and executive officers excludes any shares that may be deemed to be beneficially owned by Mr. Eduardo
Hochschild through ASPI.

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Changes in Ownership

The following sets forth the composition of ownership from December 31, 2017 to December 31, 2021.

As of December 31,
Shareholder 2021 2020 2019 2018 2017
ASPI 45.7% 45.7% 45.7% 45.7% 45.7%
CPSAA (treasury shares) 7.8% 7.8% 7.8% 7.8% 7.8%
IN—Fondo 2 (AFP Integra) — — 4.7% —
RI—Fondo 2 (AFP Prima) 5.2% 4.6% 3.9% 4.4% 3.3%
RI—Fondo 3 (AFP Prima) 4.0% — 4.1% 0.2% 2.7%
American Depositary Receipt Program 7.4% 6.8% 6.7% 13.0% 15.1%
IN—Fondo 3 (AFP Integra) 5.0% 4.1% 5.1% — —
PR—Fondo 2 (AFP Profuturo) 4.3% 4.4% 4.2% — —
PR—Fondo 3 (AFP Profuturo) 4.4% 3.7% 4.0% — —
Other shareholders 16.1% 22.7% 18.5% 24.2% 25.4%
Total 100% 100.0% 100.0% 100.0% 100.0%

On January 19, 2017, our management approved the buyback of an additional 7,911,845 investment shares, which we currently hold in treasury.

On March 1, 2018, we spun-off a portion of the net assets (consisting of the assets and liabilities) related to Fosfatos del Pacífico S.A. to Fossal S.A.A. (“FOSSAL”), and as a
result our capital stock was reduced by approximately S/107,593,030, from S/531,461,479 to S/423,868,449.

Differences in Voting Rights

Our major shareholders do not have different voting rights.

Securities Held in the Host Country

On February 7, 2012, we completed our initial public offering of 20,000,000 ADSs, each representing five common shares, in the United States. On March 2, 2012, we sold an
additional 2,296,800 ADSs pursuant to an over-allotment option granted to the underwriters in that offering. Our ADSs are listed on the New York Stock Exchange. As of March 31,
2022, we estimate that there were 6,835,844 ADSs outstanding, which represented 8.1% of our common shares outstanding as of such date.

Arrangements for Change in Control

We are not aware of any arrangements that may, when in force, result in a change in control.

B. Related Party Transactions

Peruvian Law Concerning Related Party Transactions

Under Peruvian law, board members and executive officers of a publicly-held company may not (i) engage in transactions with the company or any related party of the
company, except for transactions entered into in the ordinary course of business and on an arm’s length basis, (ii) appropriate for their own benefit a business opportunity that belongs to
the company, or (iii) participate in any transaction or decision that presents a conflict of interest with the company.

Peruvian law sets forth certain restrictions and limitations on transactions with certain related parties.

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 For instance, from a tax standpoint, the value of those transactions must be equal to the fair market value assessed under transfer pricing rules (i.e., the value agreed to by
unrelated parties under the same or similar circumstances). Similarly, companies with securities registered in the Peruvian Public Registry of Securities (Registro Público del Mercado
de Valores), such as us, are required to comply with the following rules:

● The directors and managers of the company cannot, without the prior authorization of the board of directors, (i) receive in the form of a loan money or assets of the
company; or (ii) use, for their own benefit or for the benefit of related parties, assets, services or credits of the company.

● The execution of agreements that involve at least 5% of the assets of the company with persons or entities related to directors, managers or shareholders that own, directly
or indirectly, 10% of the share capital, requires the prior authorization of the board of directors (with no participation of the director involved in the transaction, if any).

● The execution of agreements with a party controlled by the company’s controlling shareholder requires the prior authorization of the board of directors and an evaluation of
the terms of the transaction by an external independent company (audit companies or other to be determined by the Peruvian Securities Commission).

The external independent company that reviews the transaction should not be related to the parties involved therein, nor to directors, managers or shareholders that own at least
10% of the share capital of the company.

Related Party Transactions

As a general policy, we do not enter into transactions with related parties, including our board members and officers, on terms more favorable than what we would offer third
parties. Any related party transaction we have entered into in the past has been in the ordinary course of business and on an arm’s length basis.

As of December 31, 2021, we had an accounts payable balance with ASPI, our controlling shareholder, in the amount of S/105,000 (US$26,339).

The following transactions have been entered into by us with related parties:

● We lease a plot of land adjacent to our headquarters to our affiliate, Compañía Minera Ares S.A.C., a subsidiary of Hochschild Mining plc. We received rental payments of
S/344,000 in 2019, S/1,303,000 in 2020 and S/1,230,000 in 2021.

● We provide back office management and administrative services to ASPI, Fossal and Fosfatos del Pacifico, for which we received S/.1,744,000 in 2019, S/834,000 in 2020
and S/305,000 in 2021.

● We receive a reimbursement of security services from our affiliate Compañía Minera Ares S.A.C., a subsidiary of Hochschild Mining plc. We paid a total of S/1,989 in
2019,S/1,912 in 2020 and S/2,836 in 2021 for these services.

ASPI and Hochschild Mining plc are majority-owned and controlled, directly and indirectly, by Mr. Eduardo Hochschild.

For more information about our related-party transactions please see note 27 to our annual consolidated financial statements included in this annual report.

C. Interests of Experts and Counsel

Not applicable.

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ITEM 8. FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information.

See Item 19. — Exhibits.

Legal and Administrative Proceedings

From time to time, we may become subject to various legal and administrative proceedings that are incidental to the ordinary conduct of our business. We are currently not
party to any material legal or administrative proceedings.

Dividends and Dividend Policy

Our ability to pay dividends is subject to our results of operations for each year. Holders of our common shares and investment shares are entitled to receive dividends on a pro
rata basis in accordance with their respective number of shares held.

Under our dividend policy, shareholders must take the following factors into consideration prior to declaring dividends: our financial and economic condition, including
committed and budgeted expenses and obligations, and previously approved investments. In addition, our dividend policy states that (a) our board of directors may declare advanced
dividends based on either the net income resulting from financial statements prepared for such purpose or the cumulative net income corresponding to previous years, provided that
shareholders delegated such authority to the board of directors, and (b) holders of common shares representing no less than 20% of our total share capital may request the distribution of
dividends up to 50% of the net income corresponding to the previous year, net of any legal reserve requirements. Our board of directors makes a recommendation at the annual
shareholders’ meeting with respect to the amount and timing of dividend payments, if any, to be made on our common shares and investment shares.

Under Peruvian law, companies may distribute up to 100% of their profit (after payment of income tax) subject to a 10% legal reserve until the legal reserve equals 20% of
shareholders’ equity. According to Article 40 of the Peruvian Corporate Law, in order to distribute dividends, profits must be determined in accordance with the individual financial
statements of the company.

Payment of Dividends

Dividends are paid to holders of our common shares and investment shares, as of a record date determined by us. In order to allow for the settlement of securities, under the
rules of the Peruvian Securities Commission, investors who purchase shares of a publicly-held company three business days prior to a dividend payment date do not have the right to
receive such dividend payment. Dividends on issued and outstanding common shares and investment shares are distributed pro rata.

Holders of common shares and investment shares are not entitled to interest on accrued dividends. In addition, under Article 232 of the Peruvian Corporate Law, the right to
collect accrued dividends declared by a publicly-held company expires 10 years from the original dividend payment date.

Previous Dividend Payments

The following table sets forth the amounts of cash dividends declared and paid from 2012 through the date hereof for our common shares and our investment shares.

Year ended December 31, Dividends paid Per share(in S/)

2021 366,676,401 0.79000
2020 106,753,888 0.23000
2019 154,118,465 0.36000
2018 161,396,280 0.37700
2017 149,837,396 0.35000
2016 155,236,000 0.28500
2015 162,950,000 0.28000
2014 116,393,000 0.20000
2013 58,196,000 0.10000

At the annual shareholders’ meeting held on March 28, 2022, the shareholders of the Company approved the financial statements for fiscal year 2021 including the net income
for such year and delegated to the Board of Directors the authority to decide the distribution of dividends from the retained earnings account and fiscal year 2022 operating results.

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B. Significant Changes

We are not aware of any changes bearing upon our financial condition since the date of the financial statements included in this annual report.

ITEM 9. THE OFFER AND LISTING

A. Offer and Listing Details

Market Price of Our Common Shares and ADSs

Our ADSs

On February 7, 2012, we completed our initial public offering of 20,000,000 ADSs, each representing five common shares, in the United States. On March 2, 2012, we sold an
additional 2,296,800 ADSs pursuant to an over-allotment option granted to the underwriters in that offering.

Our ADSs are listed on the New York Stock Exchange under the symbol “CPAC.”

B. Plan of Distribution

Not applicable.

C. Markets

Trading in the Peruvian securities market

The Lima Stock Exchange

As of December 31, 2021, there were 500 companies with securities listed on the Lima Stock Exchange. Established in 1970, the Lima Stock Exchange is Peru’s only securities
exchange. On November 19, 2003, the members of the Lima Stock Exchange approved to convert its corporate status to a publicly held corporation effective as of January 1, 2003. As of
December 31, 2021, The Lima Stock Exchange had a share capital of S/182,092,340, divided into 173,659,481 class “A” shares and 8,432,859 class “B” shares of par value S/1.00 each.
Class “A” shares are entitled to one vote per share while class “B” shares do not have voting rights. As of December 31, 2021, the Lima Stock Exchange had 338 shareholders. On
March 2020, after its annual review, FTSE announced that, since there is only one Peruvian stock in the FTSE Global All Cap index, it fails the new minimum investable market cap and
securities count requirement criterion. As a result, Peru will be reclassified from Secondary Emerging to Frontier market status effective from September 2020.

Trading on the Lima Stock Exchange is primarily done on an electronic trading system that became operational in August 1995. From the first Monday of November through
the second Sunday of March of each year, trading hours are Monday through Friday (except holidays) as follows: 8:20 a.m.-8:30 a.m. (pre-market ordering); 8:30 a.m.-2:55 p.m.
(trading); 2:55 p.m.-3:00 p.m. (after-market sales); and 3:00 p.m.-3:10 p.m. (after-market trading). At all other times, trading hours are from Monday to Friday (except holidays) as
follows: 9:00 a.m.-9:30 a.m. (pre-market ordering); 9:30 a.m.-3:55 p.m. (trading); 3:55 p.m.-4:00 p.m. (after-market sales); and 4:00 p.m.-4:10 p.m. (after-market trading).

Transactions during the electronic sessions are executed through brokerage firms and stock brokers on behalf of their clients. Brokers submit orders in the order in which they
are received. The orders must specify the type of security as well as the amount and price of the proposed sale or purchase. In order to control price volatility, for Peruvian companies
there are volatility auctions for variations of +/- 7% during trading session and +/- 4% during the last half-hour of continuous trading, when a stock reaches the 15% limit there is an
auction and a consequent price formation. For non-Peruvian companies there is no limit because it is the price in the foreign market the main reference.

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Regulation of the Peruvian Securities Market

The Securities Market Law regulates certain securities matters, such as transparency and disclosure, corporate takeovers, capital market instruments and operations, the
securities markets and broker-dealers, and credit-rating agencies. In 1996, the Peruvian Securities Commission, “Superintendencia del Mercado de Valores – SMV” , formerly known as
the National Supervisory Commission for Securities and Companies (Comisión Nacional Supervisora de Empresas y Valores, or “CONASEV”), was given additional responsibilities
relating to the supervision, regulation and development of the securities market, while the Lima Stock Exchange was granted the status of a self-regulatory organization. Additionally, a
unified system of guarantees and capital requirements was established for the Lima Stock Exchange.

Pursuant to Law No. 29782, published in the Peruvian Official Gazette, El Peruano, on July 28, 2011, the Peruvian Securities Commission is a governmental entity reporting to
Peru’s Ministry of Economy and Finance with functional, administrative, economic, technical and budgetary autonomy.

The Peruvian Securities Commission is governed by the Superintendent and a five board-members confirmed by the Superintendent (who acts as President of the board) and
four members appointed by the Peruvian Executive Power (one suggested by the Ministry of Economy and Finance, one suggested by the BCRP, one suggested by the Peruvian
Superintendence of Banking, Insurance and Private Pension Funds and one independent member). The Peruvian Securities Commission has broad regulatory powers, including
reviewing, promoting, and making rules regarding the securities market, supervising its participants, and approving the registration of public offerings of securities.

The Peruvian Securities Commission supervises the securities markets and the dissemination of information to investors. It also (i) governs the operations of the Public Registry
of Securities, (ii) regulates mutual funds, publicly placed investment funds and their respective management companies and broker-dealers, (iii) monitors compliance with accounting
regulations by companies under its supervision as well as the accuracy of financial statements and (iv) registers and supervises auditors who provide accounting services to those
companies registered with the Peruvian Securities Commission.

Pursuant to the Securities Market Law, broker-dealers must maintain a guarantee fund. This guarantee fund must be managed by an entity supervised by the Peruvian Securities
Commission. Contributions to the guarantee fund must be made by the 25 broker-dealers that are members of the Lima Stock Exchange and are based on the volume traded over the
exchange. In addition to the guarantee fund managed, each broker-dealer is required to maintain a guarantee in favor of the Peruvian Securities Commission to guarantee any liability
that broker-dealers may have with respect to their clients. Such guarantees are generally established through letters of credit issued by local banks.

Disclosure Obligations

Issuers of securities registered with the Peruvian Securities Commission are required to disclose material information relating to the issuer. Pursuant to the Securities Market
Law and relevant regulations enacted thereunder, all material information in connection with the issuer of registered securities (such as our common shares and investment shares), its
activities or securities issued or secured by such issuer which may influence the liquidity or price of such securities must be disclosed. Accordingly, issuers must file with the Peruvian
Securities Commission mainly two types of information: (a) financial information, including interim unaudited financial statements on a quarterly basis (which are not required to be
subject to limited review), and annual audited consolidated financial statements on an annual basis, and (b) material information relating to the issuer and its activities that may
significantly affect the price, offering or negotiation of the issued securities, and in general, all the information that may be relevant for investors to be able to make investment decisions.

In order to comply with the foregoing disclosure obligations, issuers must disclose reaffirmation to the Peruvian Securities Commission and, if the securities are listed, with the
Lima Stock Exchange as soon as practicable but not later than one business day after having become aware of such information.

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D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

Set forth below is certain information relating to our share capital, including brief summaries of the material provisions of our by-laws, Peruvian corporate law and certain
related laws and regulations of Peru, all as in effect as of the date hereof.

General

We are a publicly held corporation under Peruvian Corporate law registered with the Public Registry of Corporations in Lima. We are currently listed on the Lima Stock
Exchange.

The second article of our by-laws provides that our principal corporate purpose is mining and the production and sale of cement, quicklime and other construction materials in
Peru and internationally.

We have common shares and investment shares.

See “Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management” for information regarding our Board of Directors.

Common Shares

Common shares represent 100% of our voting shares. As of March 31, 2022, 423,868,449 of our common shares were outstanding. As of March 31, 2022, there were 7,342
owners of record of our common shares (considering the ADSs listed in the New York Stock Exchange are held by one registered owner). Our common shares have a par value of S/1.00
per share and have been fully subscribed and are fully paid. Our common shares are registered in the Securities Public Registry of the Peruvian Securities Commission and are listed on
the Lima Stock Exchange.

Investment Shares

As of March 31, 2022, 4,238,397 of our investment shares were outstanding excluding 36,040,497 investment shares that were held in treasury. Investment shares have no
voting rights and are not, under Peruvian law and accounting regulations, characterized as share capital. However, investment shares are still considered part of a company’s equity. As
of March 31, 2022, there were 407 owners of record of our investment shares. Our investment shares have a par value of S/1.00 per share and have been fully subscribed and are fully
paid. Our investment shares are registered in the Securities Public Registry of the Peruvian Securities Commission and are listed on the Lima Stock Exchange.

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Shareholders’ Liability

Under Peruvian Corporate Law, holders of our common shares cannot vote on matters with respect to which they have a conflict of interest.

Under Article 133 of the Peruvian Corporate Law, a shareholder must abstain from voting if such shareholder has a conflict of interest. A resolution approved in disregard of
this provision may be challenged under Article 139 of the Peruvian Corporate Law and any shareholder that participated in the determination in breach of this provision, if such
shareholder’s vote was key in attaining the required majority, may be held liable individually, or jointly with any other shareholder voting in breach of the provision.

Redemption and Rights of Withdrawal

Under Article 200 of the Peruvian Corporate Law, holders of our common shares have redemption rights if: (i) we change our corporate purpose; (ii) a change occurs in the
place of organization to a foreign country; or (iii) any transformation, merger or significant spin-off occurs with respect to our company.

Preemptive and Accretion Rights

If we increase our share capital, holders of our common shares and investment shares have the right to subscribe to new common shares and investment shares, respectively, on
a pro rata basis. Holders of common shares have preemptive rights in order to maintain their share interest in our share capital, unless the capital increase (i) results from a conversion of
debt to common shares; (ii) is approved by shareholders representing at least 40% of the subscribed voting shares provided that the capital increase does not favor, directly or indirectly,
certain shareholders to the detriment of others; and (iii) results from a corporate reorganization. Holders of investment shares have preemptive rights to maintain their proportional
ownership in our share capital.

Shareholders who are in default of any payments relating to a capital call may not exercise their preemptive rights.

Preemptive rights are exercised in two rounds. During the first round, shareholders may subscribe to the new shares on a pro rata basis. During the second round, shareholders
who participated in the first round may subscribe to any remaining shares on a pro rata basis up to the amount of shares such shareholders subscribed for in the first round. The first
round must remain open for at least 15 business days. The second round must remain open for at least three business days.

Voting Rights and Dividends

Common Shares

Holders of common shares are entitled to one vote per share, with the exception of the election of the board of directors, where each holder is entitled to one vote per share per
nominee. Each holder’s votes may be cast for a single nominee or distributed among the nominees at the holder’s discretion. To that effect, each of our common shares gives the holder
the rights to as many votes as there are directors to be elected. Shareholders may pool votes in favor of one person or distribute them among various persons. Those candidates for the
board who receive the most votes are elected directors. Holders of common shares may attend and vote at shareholders’ meetings either in person or through a proxy.

Holders of common shares have the right to participate in the distribution of dividends and shareholder equity resulting from liquidation. Our by-laws do not establish a
maximum time limit for the payment of the dividends. However, according to Article 232 of the Peruvian Corporate law, the right to collect past-due dividends in the case of companies
that are publicly held companies, such as ours, expires 10 years after the date on which the dividend payment was due.

Our share capital may be increased by a decision of holders of common shares at a shareholders’ meeting. Capital reductions may be voluntary or mandatory and must be
approved by holders of common shares at a shareholders’ meeting. Capital reductions are mandatory when accumulated losses exceed 50% of the capital and to the extent such
accumulated losses are not offset by accumulated earnings and capital increases within the following fiscal year. Capital increases and reductions must be communicated to the Peruvian
Securities Commission, the Lima Stock Exchange and the SUNAT. Voluntary capital reductions must also be published in the official gazette El Peruano and in a widely circulated
newspaper in the city in which we are located.

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Investment Shares

Under Peruvian Corporate Law, investment shares do not represent share capital. Accordingly, our balance sheet reflects the investment shares as a separate account from our
share capital. Holders of investment shares are neither entitled neither to vote nor to participate in shareholders’ meetings. However, investment shares confer upon the holders thereof
the right to participate in the dividends distributed according to their par value, in the same manner as common shares. Investment shares also confer to the holders thereof the
preemptive right to (i) maintain the current proportion of the investment shares in the case of a capital increase through new contributions; (ii) increase the number of investment shares
upon capitalization of retained earnings, revaluation surplus or other reserves that do not represent cash contributions; (iii) participate in the distribution of assets resulting from a
liquidation in the same manner as common shares; and, (iv) redeem the investment shares in case of a merger and/or change of business activity.

Liquidation Rights

If we are liquidated, our shareholders have the right to receive net assets resulting from the liquidation, after we comply with our obligation to pay all our creditors and after
discounting any existing dividend liabilities. For this reason, we cannot assure that we will be able to reimburse 100% of the book value of the common shares and investment shares in
case of bankruptcy or liquidation.

Ordinary and Extraordinary Meetings

Pursuant to Peruvian Corporate Law and our by-laws, the annual shareholders’ meeting must be held during the three-month period after the end of each fiscal year. Additional
shareholders’ meetings may be held during the year. Because we are a publicly-held corporation, we are subject to the special control of the Peruvian Securities Commission, as
provided in Article 253 of the Peruvian Corporate Law. If we do not hold the annual shareholders’ meeting during the three-month period after the end of each fiscal year or any other
shareholders’ meeting required by our by-laws, a public notary or a competent judge shall call for such a meeting at the request of at least one shareholder of the common shares. Such
meeting will take place within a reasonable period of time.

Other shareholders’ meetings are convened by the board of directors when deemed convenient by our company or when it is requested by the holders of at least 20% of our
common shares. If, at the request of holders of 20% of the common shares, the shareholders’ meeting is not convened by the board of directors within 15 business days of the receipt of
such request, or the board expressly or implicitly refuses to convene the shareholders’ meeting, a public notary or a competent judge will call pursuant to Law No. 29560 for such
meeting at the request of holders of at least 20% of our common shares. If a public notary or competent judge calls for a shareholders’ meeting, the place, time and hour of the meeting,
the agenda and the person who will preside shall be indicated on the meeting notice. If the meeting called is other than the annual shareholders’ meeting or a shareholders’ meeting
required by the Peruvian Corporate Law or the by-laws, the agenda will contain those matters requested by the shareholders who requested the meeting.

Holders of investment shares have no right to request the board to call a shareholders’ meeting.

Notices of Meetings

Since we are a publicly held corporation, notice of shareholders’ meetings must be given by publication of a notice. The publication shall occur at least 25 days prior to any
shareholders’ meeting in the Peruvian Official Gazette, El Peruano, and in a widely circulated newspaper in the city in which we are located. The notice requirement may be waived at
the shareholders’ meeting by agreement of the holders of 100% of the outstanding common shares.

Quorum and Voting Requirements

According to Article 25 of our by-laws and Article 257 of the Peruvian Corporate Law, shareholders’ meetings called for the purpose of considering a capital increase or
decrease, the issuance of obligations, a change in the by-laws, the sale in a single act of assets with an accounting value that exceeds 50% of our share capital, a merger, division,
reorganization, transformation or dissolution, are subject to a first, second and third quorum call, each of the second and third quorum call to occur upon the failure of the preceding one.
A quorum for the first call requires the presence of shareholders holding 50% of our total common shares. For the second call, the presence of shareholders holding at least 25% of our
total common shares is adequate, while for the third call there is no quorum requirement. These decisions require the approval of the majority of the common shares represented at the
shareholders’ meeting. Shareholders’ meetings convened to consider all other matters are subject to a first and second quorum call, the second quorum call to occur upon the failure of
the first quorum.

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 In accordance with Peruvian Corporate Law, only those holders of common shares whose names are registered in our stock ledger not less than 10 days in advance of a meeting
will be entitled to attend the shareholders’ meeting and to exercise their rights.

Limitations on the Rights of Non-residents or Foreign Shareholders

There are no limitations under our by-laws or Peruvian Corporate Law on the rights of nonresidents or foreign shareholders to own securities or exercise voting rights with
respect to our securities.

Disclosure of Shareholdings and Tender Offer Regulations

Disclosure of Shareholdings

There are no provisions in our by-laws governing the ownership threshold above which share ownership must be disclosed.

However, according to Article 10 of CONASEV Resolution No. 090-2005-EF-94.10, as amended, we must inform the Peruvian Securities Commission of the members of our
economic group and a list of our holders of common shares owning more than a 5% share interest, as well as any change to such information.

Tender Offer Regulations

Peruvian security regulations include mandatory takeover rules applicable to the acquisition of control of a listed company.

Subject to certain conditions, such regulations generally establish the obligation to make a tender offer when a person or group of persons acquires a relevant interest in a listed
company. According to Peruvian law, a person acquires a relevant interest in a listed company when such person (a) holds or has the power to exercise directly or indirectly 25%, 50%
or 60% of the voting rights in a listed company, or (b) has the power to appoint or remove the majority of the board members or to amend its by-laws.

In general, the tender offer must be launched prior to the acquisition of the relevant interest. The tender offer may be launched after the “relevant interest” is acquired if it is
acquired (a) by means of an indirect transaction, (b) as a consequence of a public sale offer, or (c) in no more than four transactions within a three-year period.

This mandatory procedure has the effect of alerting other shareholders and the market that an individual or financial group has acquired a significant percentage of a company’s
voting shares, and gives other shareholders the opportunity to sell their shares at the price offered by the purchaser. The purchaser is required to launch a tender offer unless: (a)
shareholders representing 100% of the voting rights consent in writing, (b) voting shares are acquired by a depositary in order to subsequently issue ADSs, or (c) voting shares are
acquired pursuant to the exercise of preemptive rights.

Changes in Capital

Our by-laws do not establish special conditions to increase or reduce our share capital beyond what is required under Peruvian Corporate Law.

Anti-Takeover Provisions

Our by-laws do not contain any provision that would have the effect of delaying, deferring or preventing a change of control. However, acquisitions of shares of our capital
stock that involve a change of control may be subject to Peruvian securities and exchange regulations (Ley de Mercado de Valores y Reglamento de Oferta Pública de Adquisición y de
Compra de Valores por Exclusión) applicable to tender offers.

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Form and Transfer

Common shares and investment shares may be either physical share certificates in registered form or book-entry securities in the CAVALI S.A. ICLV book-entry settlement
system, also in registered form.

Furthermore, the Peruvian Corporate Law forbids publicly held corporations, such as us, from including in their by-laws stipulations limiting the transfer of their shares or
restraining their trading in other ways. In addition, pursuant to our by-laws, we cannot recognize a shareholders’ agreement that contemplates limitations, restrictions or preferential
rights on the transfer of shares, even if such an agreement is recorded in our stock ledger (matrícula de acciones) or in CAVALI S.A. ICLV.

C. Material Contracts

On December 31, 2007, we entered into a contract for the general management and provision of services with ASPI, pursuant to which we provide legal and corporate services
to it. See “Item 7. Major Shareholders and Related Party Transactions—A. Related Party Transactions.”

On February 1, 2008, we entered into a surface rights agreement with Compañía Minera Ares S.A.C., pursuant to which we lease a plot of land adjacent to our headquarters to
our affiliate, Compañía Minera Ares S.A.C., a subsidiary of Hochschild Mining plc. See “Item 7. Major Shareholders and Related Party Transactions—A. Related Party Transactions.”

On June 30, 2008, we entered into a property lease agreement with ASPI pursuant to which we lease part of our headquarters as office space to ASPI. See “Item 7. Major
Shareholders and Related Party Transactions—A. Related Party Transactions.”

On June 3, 2010, we entered into a long-term electricity supply agreement with Electroperú, a government-owned company, which expires in July 2020, to serve the electricity
requirements of our Pacasmayo facility. Electroperú has agreed to provide us with sufficient energy to operate our Pacasmayo facility at pre-determined maximum amounts during the
term of the contract. Payments for electricity are based on a formula that takes into consideration our energy consumption and certain market variables, such as the U.S. purchase price
index, the global price of oil, the local price of natural gas and the import price of bituminous coal. We entered into an addendum to this agreement, effective February 1, 2016, which
extends the term of the agreement until December 31, 2026, reduces the prices for the 2016-2020 period and establishes new prices for the 2020-2026 period. See “Item 4. Information
on the Company—A. History and Development of the Company—Raw Materials and Energy Sources.”

On February 8, 2013, we issued US$300,000,000 of our 4.50% Senior Notes due 2023, in our inaugural international bond offering, pursuant to an indenture. A portion of the
proceeds were used to prepay amounts outstanding our secured loan agreement with BBVA Banco Continental, and the remaining proceeds were used to cover a portion of the capital
expenditures in connection with the construction and development of the new Piura plant and our cement business. See “Item 5. Operating and Financial Review and Prospects—B.
Liquidity and Capital Resources.”

On January 31, 2019, we issued S/570,000,000 of our Senior Notes in two issuances. One for S/260 million bearing interest at a rate of 6.68750% for a term of 10 years, and
another for S/310 million bearing interest at a rate of 6.84375% for a term of 15 years. The proceeds were used to purchase a portion of our US$300,000,000 of our 4.50% Senior Notes
due 2023.

On August 6, 2021, we established the conditions of a medium-term corporate loan under “Club Deal” modality with Banco de Crédito del Perú S.A. and Scotiabank Perú
S.A.A. The loan amounts to S / 860,000,000 that will allow the payment of all the financial obligations that the Company maintains with maturity until February 2023 and will be
disbursed based on the maturity of each of them.

On November 29, 2021, we entered into a supply contract with FLSmidth A/S for the supply of the equipment and engineering for a new 2000 tons per day pyro line for our
Pacasmayo Plant for a total amount of EUR 19,254,150.

On February 16, 2022, we entered into a construction and erection contract with Ingeniería y Construcción Sigdo Koppers Perú S.A.C. for the construction and erection
required for our new 2000 tons per day pyro line for our Pacasmayo Plant for a referential amount of S/ 66,083,227.

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D. Exchange Controls

Since August 1990, there have been no exchange controls in Peru and all foreign exchange transactions are based on free market exchange rates. Prior to August 1990, the
Peruvian foreign exchange market consisted of several alternative exchange rates. Additionally, during the 1990s, the Peruvian currency experienced a significant number of large
devaluations, and Peru has consequently adopted, and operated under, various exchange rate control practices and exchange rate determination policies, ranging from strict control over
exchange rates to market determination of rates. Current Peruvian regulations on foreign investment allow the foreign holders of equity shares of Peruvian companies to receive and
repatriate 100 percent of the cash dividends distributed by such companies. Such investors are allowed to purchase foreign exchange at free market currency rates through any member
of the Peruvian banking system and transfer such foreign currency outside Peru without restriction.

E. Taxation

The following summary contains a description of certain Peruvian and United States federal income tax consequences of the acquisition, ownership and disposition of common
shares or ADSs, but it does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision to purchase common shares or ADSs. The
summary is based upon the tax laws of Peru and regulations thereunder and on the tax laws of the United States and regulations thereunder as in effect on the date hereof, which are
subject to change.

Prospective holders of common shares or ADSs should consult their own tax advisors as to the tax consequences of the acquisition, ownership and disposition of common
shares or ADSs in their particular circumstances.

Peruvian Tax Considerations

The following are the principal tax consequences of ownership of common shares or ADSs by non-resident individuals or entities (“Non-Peruvian Holders”) as of the date
hereof. Legislative, judicial or administrative changes or interpretations may, however, be forthcoming. Any such changes or interpretations could affect the tax consequences to holders
of common shares or ADSs and could alter or modify the conclusions set forth herein. This summary is not intended to be a comprehensive description of all the tax consequences of
acquisition, ownership and disposition of common shares or ADSs and does not describe any tax consequences arising under the laws of any taxing jurisdiction other than Peru or
applicable to a resident of Peru or to a person with a permanent establishment in Peru.

For purposes of Peruvian taxation:

● individuals are residents of Peru, if they are Peruvian nationals who have established their principal place of residence in Peru or if they are foreign nationals with a
permanence in Peru of 183 days in any 12-month period (the condition of Peruvian resident can only be acquired as of the 1st of January of the year following the
fulfillment of residence conditions); and

● legal entities are residents of Peru if they are established or incorporated in Peru.

Peruvian Income Tax Rate

The Peruvian income tax rate is 29.5% .

Cash Dividends and Other Distributions

Cash dividends paid with respect to common shares and amounts distributed with respect to ADSs are currently subject to a Peruvian withholding tax, at a rate of 5.0% of the
dividend paid. As a general rule, the distribution of additional common shares representing profits, distribution of shares which differ from the distribution of earnings or profits, as well
as the distribution of preemptive rights with respect to common shares, which are carried out as part of a pro rata distribution to shareholders, will not be subject to Peruvian tax or
withholding taxes.

Capital Gains

Pursuant to Article 6 of the Peruvian income tax law, individuals and entities resident in Peru are subject to Peruvian income tax on their worldwide income while Non-
Peruvian Holders are subject to Peruvian income tax on Peruvian source income only.

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 The general rule of the Law of Income Tax in Peru provides that income derived from the disposal of securities issued by Peruvian entities is considered Peruvian source
income and is therefore subject to income tax. Peruvian income tax law also provides that capital gains resulting from the disposal of ADSs that represent shares issued by Peruvian
entities are considered Peruvian source income and therefore also subject to Peruvian income tax. Peruvian income tax law also provides that taxable income resulting from the disposal
of securities is determined by the difference between the sale price of the securities at market value and the tax basis.

Notwithstanding the foregoing, capital gains resulting from the disposal of ADSs or beneficial interest in ADSs that represent shares issued by a Peruvian entity are not
considered Peruvian source income as long as the ADSs issued by the foreign depositary are held in the name of a nominee and such ADSs are not transferred to a third party as a result
of the disposal of the ADSs.

In the event ADSs are exchanged into common shares and such common shares are disposed of, capital gains resulting therefrom will be subject to an income tax rate of either
5% or 30%, depending on where the transaction takes place. If the transaction is consummated in Peru, the income tax rate is 5%; if the transaction is consummated outside of Peru,
capital gains are taxed at a rate of 30%. Peruvian income tax law regulations have stated that transactions are deemed to be consummated in Peru if the common shares are transferred
through the Lima Stock Exchange. Any gain resulting from the conversion of ADSs into common shares or common shares into ADSs will not be subject to taxation in Peru.

Any Non-Peruvian Holder who acquires common shares will have the following tax basis: (i) for common shares purchased by the transferor, the acquisition price paid for the
shares; (ii) for common shares received by the transferor as a result of a share capital increase because of a capitalization of net profits, the face or nominal value of such common shares;
(iii) for other common shares received free of any payment, the stock market value of such shares if listed on the Lima Stock Exchange or, if not, the face or nominal value of such
common shares and (iv) for common shares of the same type acquired at different opportunities and at different values, the tax basis will be the weighted average cost. In cases where
common shares are sold by Non-Peruvian Holders outside the Lima Stock Exchange, the tax basis must be certified by the Peruvian tax administration prior to the time payment is made
to the transferor; otherwise it would not be possible to deduct the tax basis and a 30% Peruvian income tax would apply to the total sale price. Under Peruvian income tax law, tax basis
certification is granted by the tax authorities within 30 days from the date of the application (which application must contain supporting evidence with respect to the tax basis) is made by
the transferor. If the tax authorities do not respond within such 30 day period, the tax basis presented for approval by the transferor is deemed automatically approved.

On December 31, 2010, Law No. 29645 was enacted and took effect from January 1, 2011. This law states that in transactions relating to Peruvian securities through the Lima
Stock Exchange, CAVALI S.A. ICLV (the Peruvian clearing house) will act as withholding agent to the extent that such transactions are settled in cash through CAVALI’s account
(liquidación en efectivo). The implementing regulations of Law No. 29645 enacted on July 9, 2011 provide that CAVALI began acting as a withholding agent as from November 1,
2011. As a result, while such regulations do not apply to securities transferred though the Lima Stock Exchange by a Non-Peruvian Holder, such transferor must still self-assess and pay
its income tax liability directly to Peruvian tax authorities within the first 12 working days following the month in which Peruvian source income was earned. With respect to
transactions of Peruvian securities conducted through the Lima Stock Exchange that are settled directly without CAVALI’s intervention (liquidación directa), Non-Peruvian Holders are
required to self-assess and pay income taxes directly to the Peruvian tax authorities within the first 12 working days following the month in which income from a Peruvian source was
earned. Finally, if the purchaser is resident in Peru and the sale is not performed through the Lima Stock Exchange, the purchaser will act as withholding agent.

However, Law No. 30341 was enacted on December 12, 2015 and entered into force on January 1, 2016, and Legislative Decree No. 1262, which complements Law No. 30341,
entered into force on January 1, 2017. Said law, which was in force until December 31, 2019, regulates an exception to a general rule. However, its validity was extended until December
31, 2022 through Emergency Decree 005-2019. The exemption regulated by law applies to income from the sale of shares and other securities representing shares carried out through a
centralized trading mechanism supervised by the Superintendence of Securities, when the shares do not represent 10% or more of the shares issued by a certain company.

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Law No. 30341 and the amendment through Legislative Decree No. 1262 and Emergency Decree 005-2019 include the following provisions:

● Securities covered by the exemption:

 American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs);

 Exchange Trade Fund (ETF) units having underlying shares and / or debt securities as underlying;

 Debt securities;

 Certificates of participation in mutual funds for investment in securities;

 Certificates of participation in Investment Fund in Real Estate Income (FIRBI) and certificates of participation in Trust for Securitization for Investment in Real Estate
Income (FIBRA); and

 Negotiable invoices.

● Requirements for apply the exemption:

 No transfer of 10% or more of the shares or securities representing shares in a period of twelve (12) months. In the case of ADRs and GDRs, this requirement will be
determined by considering the underlying shares;

 In the case of shares or securities representing shares, the calculation of the percentage shall be determined based on the total number of shares of capital or account of
investment shares at the time of disposal;

 The law indicates those operations to be considered for calculating this percentage, as well as those that do not;

 The securities must have a stock market presence. To determine if the securities have a stock market presence, the following shall be taken into account:

● Within 180 business days prior to the transfer, the number of days in which the daily-negotiated amount has exceeded the limit established in the regulation shall
be determined. This limit cannot be less than six (6) Tax Units (ITU) and will be established considering the volume of transactions that take place in the
centralized negotiation mechanisms;

● The number of days determined according to what is indicated in the previous section will be divided between 180 and multiplied by 100; and

● The result cannot be less than the limit established by the regulation. This limit cannot exceed forty-five percent (45%).

 Those responsible for conducting centralized trading mechanisms must disseminate on their web pages the list of the securities that comply with having a presence in
the stock market.

● Loss of exoneration:

 If, after applying the waiver, the issuer delivers the values of the Securities Registry of the Stock Exchange, in whole or in part, in an act or progressively, within the 12
months following the sale, the exoneration applied with respect to the values listed; and

 Those responsible for conducting the centralized trading mechanisms must notify SUNAT, in accordance with the procedure set forth in the regulations, of the
securities whose registrations are canceled within 12 months of the sale.

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Other Considerations

No Peruvian estate or gift taxes are imposed on the gratuitous transfer of ADSs or common shares. No stamp, transfer or similar tax applies to any transfer of ADSs or common
shares, except for commissions payable by seller and buyer to the Lima Stock Exchange (0.15% of value sold), fees payable to the Peruvian Securities Commission (0.05% of value
sold), brokers’ fees (about 0.05% to 1% of value sold) and Value Added Tax (at the rate of 18%) on commissions and fees. Any investor who sells its common shares on the Lima Stock
Exchange will incur these fees and taxes upon purchase and sale of the common shares.

United States Federal Income Tax Considerations

The following are the material United States federal income tax consequences as of the date hereof to a United States Holder (as defined below) of the ownership and
disposition of our common shares and ADSs. This summary deals only with common shares and ADSs held as capital assets (generally, property held for investment). As used herein,
the term “United States Holder” means a beneficial owner of common shares or ADSs that is for United States federal income tax purposes:

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state
thereof or the District of Columbia;

● an estate the income of which is subject to United States federal income taxation regardless of its source; or

● a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial
decisions of the trust, or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person.

This summary does not represent a detailed description of the United States federal income tax consequences applicable to you if you are subject to special treatment under the
United States federal income tax laws, including if you are:

● a dealer in securities or currencies;

● a financial institution;

● a regulated investment company;

● a real estate investment trust;

● an insurance company;

● a tax-exempt organization;

● a person holding our common shares or ADSs as part of a hedging, integrated or conversion transaction, a constructive sale or a straddle;

● a trader in securities that has elected the mark-to-market method of accounting for your securities;

● a person liable for alternative minimum tax;

● a person who owns or is deemed to own 10% or more of our stock (by vote or value);

● a partnership or other pass-through entity for United States federal income tax purposes;

● a person required to accelerate the recognition of any item of gross income with respect to our common shares or ADSs as a result of such income being recognized on an
applicable financial statement; or

● a person whose “functional currency” is not the U.S. dollar.

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 The discussion below is based upon the provisions of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and regulations, rulings and judicial decisions
thereunder as of the date hereof, and such authorities may be replaced, revoked or modified so as to result in United States federal income tax consequences different from those
discussed below. There is currently no income tax treaty between the United States and Peru that would provide for United States federal income tax consequences different from those
discussed below. In addition, this summary is based, in part, upon representations made by the depositary to us and assumes that the deposit agreement, and all other related agreements,
will be performed in accordance with their terms.

If a partnership (or other entity or arrangement treated as a partnership for United States federal income tax purposes) holds our common shares or ADSs, the tax treatment of a
partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our common shares or
ADSs, you should consult your tax advisors.

This summary does not address the Medicare tax on net investment income, United States federal estate and gift taxes or the effects of any state, local or non-United States tax
laws. If you are considering the acquisition of our common shares or ADSs, you should consult your own tax advisors concerning the United States federal income tax consequences to
you in light of your particular situation as well as any consequences arising under other United States federal tax laws and the laws of any other taxing jurisdiction.

ADSs

If you hold ADSs, for United States federal income tax purposes, you generally will be treated as the owner of the underlying common shares that are represented by such
ADSs. Accordingly, deposits or withdrawals of common shares for ADSs will not be subject to United States federal income tax.

Taxation of Dividends

The gross amount of distributions on the ADSs or common shares (including amounts withheld to reflect Peruvian withholding taxes) will be taxable as dividends, to the extent
paid out of our current or accumulated earnings and profits, as determined under United States federal income tax principles.

To the extent that the amount of any distribution (including amounts withheld to reflect Peruvian withholding taxes) exceeds our current and accumulated earnings and profits
for a taxable year, as determined under United States federal income tax principles, the distribution will first be treated as a tax-free return of capital, causing a reduction in the adjusted
basis of the ADSs or common shares, and the balance in excess of adjusted basis will be taxed as capital gain recognized on a sale or exchange. However, we do not expect to keep
earnings and profits in accordance with United States federal income tax principles. Therefore, you should expect that a distribution will generally be reported as a dividend. Such
dividends (including withheld taxes) will be includable in your gross income as ordinary income on the day actually or constructively received by you, in the case of the common shares,
or by the depositary, in the case of ADSs. Such dividends will not be eligible for the dividends received deduction allowed to corporations under the Code.

Subject to applicable limitations (including a minimum holding period requirement), dividends received by non-corporate United States Holders from a qualified foreign
corporation may be treated as “qualified dividend income” that is subject to reduced rates of taxation. A non-United States corporation is treated as a qualified foreign corporation with
respect to dividends paid by that corporation on common shares (or ADSs backed by such shares) that are readily tradable on an established securities market in the United States.
United States Treasury Department guidance indicates that our ADSs, which are listed on the New York Stock Exchange, but not our common shares, are readily tradable on an
established securities market in the United States. Thus, we believe that dividends we pay on our common shares that are represented by ADSs, but not our common shares that are not
so represented, will be eligible for the reduced tax rates. There can be no assurance, however, that our ADSs will be considered readily tradable on an established securities market in the
United States in later years. You should consult your own tax advisors regarding the application of these rules given your particular circumstances.

The amount of any dividend paid in soles will equal the U.S. dollar value of the soles received, calculated by reference to the exchange rate in effect on the date the dividend is
actually or constructively received by you, in the case of the common shares, or by the depositary, in the case of ADSs, regardless of whether the soles are converted into U.S. dollars at
that time. If the soles received as a dividend are converted into U.S. dollars on the date they are received, you generally will not be required to recognize foreign currency gain or loss in
respect of the dividend income. If the soles received as a dividend are not converted into U.S. dollars on the date of receipt, you will have a tax basis in the soles equal to their U.S. dollar
value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the soles will be treated as United States source ordinary income or loss.

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 Subject to certain conditions and limitations, Peruvian withholding taxes on dividends may be treated as foreign taxes eligible for credit against your United States federal
income tax liability. For purposes of calculating the foreign tax credit, dividends paid on the ADSs or common shares will be treated as foreign source income and will generally
constitute passive category income. However, in certain circumstances, if you have held the ADSs or common shares for less than a specified minimum period during which you are not
protected from risk of loss, or are obligated to make payments related to the dividends, you will not be allowed a foreign tax credit for any Peruvian withholding taxes imposed on
dividends paid on the ADSs or common shares. If you do not elect to claim a United States foreign tax credit, you may instead claim a deduction for Peruvian income tax withheld, but
only for a taxable year in which you elect to do so with respect to all foreign income taxes paid or accrued in such taxable year. The rules governing the foreign tax credit are complex.
You are urged to consult your tax advisors regarding the availability of the foreign tax credit under your particular circumstances.

Distributions of ADSs, common shares or rights to subscribe for ADSs or common shares that are received as part of a pro rata distribution to all of our shareholders generally
will not be subject to United States federal income tax.

Taxation of Capital Gains

For United States federal income tax purposes, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of ADSs or common shares in an
amount equal to the difference between the amount realized for the ADSs or common shares and your tax basis in the ADSs or common shares, both as determined in U.S. dollars. Such
gain or loss will generally be capital gain or loss. Capital gains of non-corporate United States Holders derived with respect to capital assets held for more than one year are eligible for
reduced rates of taxation. The deductibility of capital losses is subject to limitations.

Any gain or loss recognized by you will generally be treated as United States source gain or loss. Consequently, in the case of gain from the disposition of ADSs or common
shares that is subject to Peruvian income tax, you may not be able to benefit from a foreign tax credit for that Peruvian income tax (i.e., because the gain from the disposition would be
United States source), unless you can apply the credit (subject to applicable limitations) against United States federal income tax payable on other income from foreign sources.
However, pursuant to recently issued Treasury regulations that apply to taxes paid or accrued in taxable years beginning on or after December 28, 2021, any such Peruvian income tax
would generally not be a foreign income tax eligible for a foreign tax credit (regardless of any other income that you may have that is from foreign sources). You are urged to consult
your tax advisors regarding the tax consequences if Peruvian income tax is imposed on a disposition of ADSs or common shares, including the availability of the foreign tax credit under
your particular circumstances.

Passive Foreign Investment Company

We do not believe that we are, for United States federal income tax purposes, a passive foreign investment company (“PFIC”), and we expect to operate in such a manner so as
not to become a PFIC. If, however, we are or become a PFIC, you could be subject to additional United States federal income taxes on gain recognized with respect to the ADSs or
common shares and on certain distributions, plus an interest charge on certain taxes treated as having been deferred under the PFIC rules. Non-corporate United States Holders will not
be eligible for reduced rates of taxation on any dividends received from us (as discussed above under “—Taxation of Dividends”) if we are a PFIC in the taxable year in which such
dividends are paid or in the preceding taxable year.

Information Reporting and Backup Withholding

In general, information reporting will apply to dividends in respect of our ADSs or common shares and the proceeds from the sale, exchange or other taxable disposition of our
ADSs or common shares that are paid to you within the United States (and in certain cases, outside the United States), unless you are an exempt recipient. Backup withholding may
apply to such payments if you fail to provide a taxpayer identification number or certification of exempt status or fail to report in full dividend and interest income.

Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against your United States federal income tax liability provided the required
information is furnished to the Internal Revenue Service in a timely manner.

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 The above description is not intended to constitute a complete analysis of all tax consequences relating to the ownership or disposition of our ADSs or common shares.
You should consult your own tax advisors concerning the overall tax consequences to you, including the consequences under laws other than United States federal income tax
laws, of an investment in our ADSs or common shares.]

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

We make our filings in electronic form under the EDGAR filing system of the SEC. Our filings are available through the EDGAR system at www.sec.gov. In addition, our
filings are available to the public over our website www.cementospacasmayo.com.pe. Such filings and other information on our website are not incorporated by reference in this annual
report. You may request a copy of this filing, and any other report, at no cost, by writing to us at the following address or telephoning us:

Investor Relations Department

Calle La Colonia 150,
Urbanización El Vivero, Surco,
Lima, Peru
Tel.: + (511) 317-6000
E-mail: [email protected]

I. Subsidiary Information

See note 1 to our annual audited consolidated financial statements included in this annual report for a description of our subsidiaries.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a description of our market risks, see note 30 to our annual audited consolidated financial statements included in this annual report.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities

Not applicable.

B. Warrants and Rights

Not applicable.

C. Other Securities

Not applicable.

D. American Depositary Shares

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Fees and expenses

JPMorgan Chase Bank, N.A., as depositary, pursuant to our Deposit Agreement, dated as of February 7, 2012, and the amendment dated December 4, 2020 (as so amended the
“Deposit Agreement”), may charge each person to whom ADSs are issued, including, without limitation, issuances against deposits of common shares, issuances in respect of common
share distributions, rights and other distributions, issuances pursuant to a stock dividend or stock split declared by us or issuances pursuant to a merger, exchange of securities or any
other transaction or event affecting the ADSs or deposited securities, and each person surrendering ADSs for withdrawal of deposited securities or whose ADSs or American Depositary
Receipts representing ADSs (“ADRs”) are cancelled or reduced for any other reason, US$5.00 for each 100 ADSs (or any portion thereof) issued, delivered, reduced, cancelled or
surrendered, as the case may be. The depositary may sell (by public or private sale) sufficient securities and property received in respect of a common share distribution, rights and/or
other distribution prior to such deposit to pay such charge.

The following additional charges shall be incurred by the ADR holders, by any party depositing or withdrawing common shares or by any party surrendering ADSs or to whom
ADSs are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by us or an exchange of stock regarding the ADRs or the deposited securities
or a distribution of ADSs), whichever is applicable:

● a fee of US$1.50 per ADR or ADRs for transfers of certificated or direct registration ADRs;

● a fee of US$0.05 or less per ADS for any cash distribution made pursuant to the deposit agreement;

● a fee of US$0.05 or less per ADS per calendar year (or portion thereof) for services performed by the depositary in administering the ADRs (which fee may be charged on
a periodic basis during each calendar year and shall be assessed against holders of ADRs as of the record date or record dates set by the depositary during each calendar
year and shall be payable in the manner described in the next succeeding provision);

● reimbursement of such fees, charges and expenses as are incurred by the depositary and/or any of the depositary’s agents (including, without limitation, the custodian and
expenses incurred on behalf of holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in
connection with the servicing of the common shares or other deposited securities, the delivery of deposited securities or otherwise in connection with the depositary’s or its
custodian’s compliance with applicable law, rule or regulation (which charge shall be assessed on a proportionate basis against holders as of the record date or dates set by
the depositary and shall be payable at the sole discretion of the depositary by billing such holders or by deducting such charge from one or more cash dividends or other
cash distributions);

● a fee for the distribution of securities (or the sale of securities in connection with a distribution), such fee being in an amount equal to US$0.05 per ADS issuance fee for the
execution and delivery of ADSs which would have been charged as a result of the deposit of such securities (treating all such securities as if they were common shares) but
which securities or the net cash proceeds from the sale thereof are instead distributed by the depositary to those holders entitled thereto;

● stock transfer or other taxes and other governmental charges;

● cable and facsimile transmission and delivery charges incurred at your request in connection with the deposit or delivery of common shares;

● transfer or registration fees for the registration of transfer of deposited securities on any applicable register in connection with the deposit or withdrawal of deposited
securities; and

● expenses of the depositary in connection with the conversion of foreign currency into U.S. dollars.

We will pay all other charges and expenses of the depositary and any agent of the depositary (except the custodian) pursuant to agreements from time to time between us and
the depositary. The charges described above may be amended from time to time by agreement between us and the depositary.

Our depositary has agreed to reimburse us for certain expenses we incur that are related to establishment and maintenance of the ADR program, including investor relations
expenses and exchange application and listing fees. The amounts of reimbursements available to us are not based upon the amounts of fees the depositary collects from investors. The
depositary collects its fees for issuance and cancellation of ADSs directly from investors depositing common shares or surrendering ADSs for the purpose of withdrawal or from
intermediaries acting on their behalf. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of
distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions, or by directly billing investors, or by
charging the book-entry system accounts of participants acting for them. The depositary will generally set off the amounts owing from distributions made to holders of ADSs. If,
however, no distribution exists and payment owing is not timely received by the depositary, the depositary may refuse to provide any further services to holders that have not paid those
fees and expenses owing until such fees and expenses have been paid. At the discretion of the depositary, all fees and charges owing under the deposit agreement are due in advance
and/or when declared owing by the depositary.

The Deposit Agreement is incorporated by reference as Exhibit 2.2 to this annual report, and Amendment No. 1 thereto is incorporated by reference in this annual report as
Exhibit 2.2A, and Amendment No. 2 thereto is incorporated by reference in this annual report as Exhibit 2.2B. We encourage you to review these documents carefully if you are a holder
of ADRs.

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 PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

A. Disclosure Controls and Procedures

As of the end of the period covered by this annual report, the Company’s management, with the participation of our Chief Executive Officer and Chief Financial Officer,
performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Our
disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the
Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control objective. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that, as of December 31, 2021, the design and operation of our disclosure controls and procedures were effective at the reasonable assurance level.

B. Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted
accounting principles.

Because of its inherent limitations, internal control over financial reporting may not necessarily prevent or detect some misstatements. It can only provide reasonable assurance
regarding financial statement preparation and presentation. Also, projections of any evaluation of effectiveness for future periods are subject to the risk that controls may become
inadequate because of changes in conditions or because the degree of compliance with the polices or procedures may deteriorate over time.

Management assessed the effectiveness of its internal control over financial reporting for the year ended December 31, 2021. The assessment was based on criteria established
in the framework “Internal Controls—Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (COSO). Based on
this assessment, our management has concluded that as of December 31, 2021, our internal control over financial reporting was effective.

The effectiveness of internal control over financial reporting as of December 31, 2021, has been audited by Tanaka, Valdivia & Asociados SCRL, member firm of EY (formerly
Ernst & Young), an independent registered public accounting firm, as stated in their attestation report, which is included under “Item 15—Controls and Procedures —C. Attestation
Report of Independent Registered Public Accounting Firm.”

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C. Attestation Report of the Independent Registered Public Accounting Firm

Opinion on Internal Control over Financial Reporting

We have audited Cementos Pacasmayo S.A.A. and subsidiaries internal control over financial reporting as of December 31, 2021, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), (the COSO criteria). In our opinion, Cementos
Pacasmayo S.A.A. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on the COSO
criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial
position of the Company as of December 31, 2021 and 2020, the related consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for each
of the three years in the period ended December 31, 2021, and the related notes and our report dated April 28, 2022, expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over
financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the
Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to
the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with International Financial Reporting Standards, as issued by the International Accounting Standard Board. A company’s
internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with International Financial Reporting Standards, as issued by the International Accounting Standard Board, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to
future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.

Tanaka, Valdivia & Asociados Sociedad Civil de Responsabilidad Limitada

A member practice of
Ernst & Young Global Limited

/s/ Oscar Mere

Tanaka, Valdivia & Asociados Sociedad Civil de Responsabilidad Limitada
Lima, Peru,
April 28, 2022

D. Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required under Rules 13a-15 or 15d-15 that occurred
during the period covered by this annual report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 16. [RESERVED]

ITEM 16A AUDIT COMMITTEE FINANCIAL EXPERT

Our Board of Directors has determined that Mr. Marco Antonio Zaldívar, President of the audit committee, is a “financial expert,” as such term is defined in the SEC rules. We
have determined that Ms. Ana Maria Botella, Mr. Venkat Krishnamurti and Mr. Marco Antonio Zaldívar are independent under the standards of the New York Stock Exchange listing
rules and Rule 10A-3 under the Exchange Act.

ITEM 16B. CODE OF ETHICS

We have adopted a code of ethics that applies to our directors, officers and employees. Our code of ethics is available on our website http://www.cementospacasmayo.com.pe.
Information on our website is not incorporated by reference in this annual report.

If we make any substantive amendment to our code of ethics or if we grant any waivers, including any implicit waiver, from a provision of the code of ethics, we will disclose
the nature of such amendment or waiver by filing a current report on a Form 6-K or in our subsequent annual report on Form 20-F to be filed with the SEC. During the year ended
December 31, 2021, no such amendment was made nor did we grant any waiver to any provision of our code of ethics.

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit and Non-Audit Fees

The following table presents the aggregate fees for professional services and other services rendered by our independent auditors, Tanaka, Valdivia y asociados, SCRL, member
firm of EY (formerly Ernst & Young), responsible for auditing our annual consolidated financial statements included in this annual report, during the fiscal years ended December 31,
2021 and 2020.

Year Ended December 31,

(in thousands of S/) 2021 2020
Audit fees 1,208 1,047
Tax fees 256 169
Total fees 1,464 1,217

Audit fees in the above table are the aggregate fees billed and billable by our independent auditors in connection with the audit of our annual consolidated financial statements
and review of our quarterly financial information.

Tax fees in the above table are fees billed relating to tax compliance services.

Our audit committee is responsible for the oversight of the independent auditors and has established pre-approval procedures for the engagement of its independent registered
public accounting firm for audit and non-audit services. Such services can only be contracted if they are approved by the audit committee, they comply with the restriction provided
under applicable rules and they do not jeopardize the independence of our auditors.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

Not applicable.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Not applicable.

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

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ITEM 16G. CORPORATE GOVERNANCE

We are a “foreign private issuer” within the meaning of the New York Stock Exchange corporate governance standards. Under New York Stock Exchange rules, a foreign
private issuer may elect to comply with the practices of its home country and not to comply with certain corporate governance requirements applicable to U.S. companies with securities
listed on the exchange.

We currently follow certain Peruvian practices concerning corporate governance and intend to continue to do so. There are significant differences in the Peruvian corporate
governance practices as compared to those followed by United States domestic companies under the New York Stock Exchange’s listing standards.

The New York Stock Exchange listing standards provide that the board of directors of a U.S. listed company must have a majority of independent directors at the time the
company ceases to be a “controlled company.” Under Peruvian corporate governance practices, a Peruvian company is not required to have a majority of independent members on its
board of directors.

The listing standards for the New York Stock Exchange also require that U.S. listed companies, at the time they cease to be “controlled companies,” have a
nominating/corporate governance committee and a compensation committee (in addition to an audit committee). Each of these committees must consist solely of independent directors
and must have a written charter that addresses certain matters specified in the listing standards. Under Peruvian law, a Peruvian company may, but is not required to, form special
governance committees, which may be composed partially or entirely of non-independent directors.

In addition, New York Stock Exchange rules require the independent non-executive directors of U.S. listed companies to meet on a regular basis without management being
present. There is no similar requirement under Peruvian law.

The New York Stock Exchange’s listing standards also require U.S. listed companies to adopt and disclose corporate governance guidelines. In November 2013, the Peruvian
Securities Commission and a committee comprised of regulatory agencies and associations prepared and published a list of suggested non-mandatory corporate governance guidelines
called the “Good Corporate Governance Code for Peruvian Companies.” These principles are disclosed on the Peruvian Securities Commission web page at http://
http://www.smv.gob.pe/ and the Lima Stock Exchange web page at http://www.bvl.com.pe. Although we have implemented a number of these measures and are part of the Best
Corporate Governance Practices Index of the Lima Stock Exchange, we are not required to comply with the referred corporate governance guidelines by law or regulation, only to
disclose whether or not we are in compliance.

ITEM 16H. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

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 PART III

ITEM 17. FINANCIAL STATEMENTS

Not applicable.

ITEM 18. FINANCIAL STATEMENTS

See our annual audited consolidated financial statements beginning at page F-1. Our financial statements have been prepared in accordance with IFRS as issued by the IASB.

ITEM 19. EXHIBITS

The following documents are filed as part of this Annual Report on Form 20-F or incorporated by reference herein.

Exhibit
Number Description of Document
1.1 Amended and Restated By-laws of the Registrant, as currently in effect
2.1 Registrant’s Form of American Depositary Receipt, incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form F-1 filed with the SEC
on January 6, 2012 (File No. 333-178922)
2.2 Deposit Agreement dated January 19, 2012 among the Registrant, J.P. Morgan Chase N.A., as depositary, and the holders from time to time of American depositary
shares issued thereunder, incorporated by reference to Exhibit 4.2 to the Registrant’s Registration Statement on Form F-1 filed with the SEC on January 6, 2012 (File
No. 333-178922)
2.2A Amendment No. 1, dated as of February 21, 2017, to the Deposit Agreement dated as of February 7, 2012, among the Registrant, J.P. Morgan Chase Bank, N.A., as
depositary, and all holders from time to time of American depositary receipts issued thereunder, incorporated by reference to the Registrant’s Registration Statement
on Form F-6 filed with the SEC on February 21, 2017 (File No. 333-216152)
2.2B Amendment No. 2, dated as of December 4, 2020, to the Deposit Agreement dated as of February 7, 2012, among the Registrant, J.P. Morgan Chase Bank, N.A., as
depositary, and all holders from time to time of American depositary receipts issued thereunder, incorporated by reference to the Registrant’s Registration Statement
on Form F-6 filed with the SEC on December 4, 2020 (File No. 333-216152)
2.3 Indenture, dated as of February 8, 2013, among the Registrant, the Subsidiary Guarantors named therein and Deutsche Bank Trust Company Americas incorporated by
reference to Exhibit 2.3 of the Registrant’s Annual Report on Form 20-F filed with the SEC on April 30, 2014 (File No. 001-35401)
2.4 Local bond issuance agreement (Contrato Marco de Emisión de Bonos Corporativos correspondiente al Segundo Programa de Bonos Corporativos de Cementos
Pacasmayo S.A.A.) dated January 8, 2019, between Scotiabank Perú S.A.A. as administrative agent and Cementos Pacasmayo S.A.A. as issuer (English summary of
principal terms), providing for the issuance of up to S/1,000,000,000 in one or more series, and related issuances of series 1 in an aggregate principal amount of
S/260,000,000 and series 2 in an aggregate principal amount of S/310 million, incorporated by reference to Exhibit 4.3 of the Registrant’s Annual Report on Form
20-F filed with the SEC on April 30, 2019 (File No. 001-35401)
2(d) Description of securities registered under Section 12(d) of the Exchange Act incorporated by reference to Exhibit 2(d) of the Registrant’s Annual Report on Form 20-F
filed with the SEC on April 30, 2012 (File No. 001-35401)
2.5 Summary of Terms of Medium Term Corporate Loan Undel Club Del Modality with Banco de Credito del Peru S.A. and Sotiabank Peru S.A.A dated November 29,
2021.

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4.1 Power Supply Agreement, dated June 3, 2010, between the Registrant and Electroperú S.A., incorporated by reference to Exhibit 4.1 of the Registrant’s Annual
Report on Form 20-F filed with the SEC on April 30, 2012 (File No. 001-35401)
4.2 Contract of General Management and Provision of Services, dated December 31, 2007, between the Registrant and Inversiones ASPI S.A. (formerly Inversiones
Pacasmayo S.A.), incorporated by reference to Exhibit 4.2 of the Registrant’s Annual Report on Form 20-F filed with the SEC on April 30, 2012 (File No. 001-35401)
4.3 Property Lease Agreement, dated June 30, 2008, between the Registrant and Inversiones ASPI S.A. (formerly Inversiones Pacasmayo S.A.), incorporated by reference
to Exhibit 4.3 of the Registrant’s Annual Report on Form 20-F filed with the SEC on April 30, 2012 (File No. 001-35401)
4.4 Surface Rights Agreement, dated February 1, 2008, between the Registrant and Compañía Minera Ares S.A.C., incorporated by reference to Exhibit 4.4 of the
Registrant’s Annual Report on Form 20-F filed with the SEC on April 30, 2012 (File No. 001-35401)
4.5 Addendum, effective February 1, 2020, to the Power Supply Agreement, dated June 3, 2010, between the Registrant and Electroperú S.A., incorporated by reference
to Exhibit 4.5 of the Registrant’s Annual Report on Form 20-F filed with the SEC on May 1, 2020 (File No. 001-35401)
4.6 Summary of Principal Terms for Equipment and Engineering supply contract between the Registrant and FLSMIDTH A/S. dated November 29, 2021.
4.7 Summary of Principal Terms for Construction and Assembly Contract between the Registrant and Ingeniería y Construcción Sigdo Koppers Perú S.A.C. dated
February 16, 2022.
8.1 List of Subsidiaries
12.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
13.1* Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Chief Executive Officer
13.2* Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Chief Financial Officer

* This certification will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification
will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it
by reference.

144
Exhibit
Number Description of Document
96.1 Technical Report Summary (TRS), Tembladera Quarry and Pacasmayo Cement Plant 20-F 229.601 (Item 601)
96.2 Technical Report Summary (TRS), Virrila Quarry and Piura Cement Plant 20-F 229.601 (Item 601)
96.3 Technical Report Summary (TRS), Tioyacu Quarry and Rioja Cement Plant 20-F 229.601 (Item 601)
101.INS Inline XBRL Instance Document
101.SCH Inline XBRL Taxonomy Extension Schema Document.
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

145
 SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report
on Form 20-F on its behalf.

CEMENTOS PACASMAYO S.A.A.

By: /s/ Humberto Nadal Del Carpio

Humberto Nadal Del Carpio
Chief Executive Officer

By: /s/ Manuel Bartolome Ferreyros Peña

Manuel Bartolome Ferreyros Peña
Chief Financial Officer

Date: April 28, 2022

146
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019, together with the Report of Independent Registered
Accounting Firm
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019, together with the Report of Independent Registered
Accounting Firm.

Contents

Independent Report of Independent Registered Accounting Firm (PCAOB ID:1315) F-2

Consolidated financial statements

Consolidated statement of financial position F-4

Consolidated statement of profit or loss F-5
Consolidated statement of other comprehensive income F-6
Consolidated statement of changes in equity F-7
Consolidated statement of cash flows F-8
Notes to the consolidated financial statements F-10

F-1
Independent Auditors’ Report

To the Board of Directors and Shareholders of Cementos Pacasmayo S.A.A. and Subsidiaries

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of Cementos Pacasmayo S.A.A. and subsidiaries (the Company) as of December 31, 2021 and 2020,
and the related consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31,
2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Company as of December 31, 2021 and 2020, and the consolidated results of its operations and its cash flows for each of the three
years in the period ended December 31, 2021, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB) the Company’s internal control over financial
reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) and our report dated April 28, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial
statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement
of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

F-2
Independent Auditors’ Report (continued)

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be
communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective
or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not,
by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue recognition

Description of the Matter At December 31, 2021, the Company’s revenue from the sale of cement, concrete and precast was S/(000)1,784,487, net of discounts of S/(000)72,574.
In the normal course of its operations, the Company provides various forms of discounts to its customers based on commercial agreements, mainly related
to sales volumes. These discounts (contra-revenue) represent a reduction from list prices once the terms of said commercial agreements have been
fulfilled. As the Company provides these discounts to a large number of small distributors and discounts earned may be remitted to the customer via a
credit memo issued in a subsequent period, management analyzes the customer’s activity at year end to recognize those discounts that have been earned
but not yet remitted via credit in the pertinent period.

Auditing the timely recognition of discounts granted by the Company at the end of the year was complex and involved a high degree of auditor judgment
because of the large number of small transactions involving different types of discount programs, which increases the complexity of management’s
processes to ensure that such discounts were properly recorded.

How We Addressed the We obtained an understanding of the process, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to
Matter in Our Audit determine the proper timing and amounts of discounts recognized, including management’s controls over the completeness and the accuracy of the
underlying data used by management to estimate the discounts earned but not yet remitted to the customer. For example. we tested controls over the
authorization of new discount programs and the issuance of credit notes as well as tested controls over the review of the calculation of pending credit
memos to be recorded at each period end.

Our audit procedures included, among others, testing transactions of discounts provided and obtaining source documents to evaluate management’s
application of the terms of the discount program provided to the customer and to test discounts recognition in the proper period.

We analyzed discounts activity before and after year-end and obtained explanations and supporting documentation for any unusual or unexpected
discounts activity. We tested the mathematical accuracy of management’s analysis related to discounts that have been provided to the customers and the
timing of when such discounts were recognized in the consolidated financial statements. Furthermore, we evaluated the adequacy of the related
disclosures in the consolidated financial statements.

Tanaka, Valdivia & Asociados Sociedad Civil de Responsabilidad Limitada

A member practice of
Ernst & Young Global Limited

/s/ Oscar Mere

Tanaka, Valdivia & Asociados Sociedad Civil de Responsabilidad Limitada
We have served as the Company’s auditor since 2002.

Lima, Peru.
April 28, 2022

F-3
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated statement of financial position

As of December 31, 2021 and 2020

Note 2021 2020

S/(000) S/(000)
Assets
Current assets
Cash and cash equivalents 6 273,402 308,912
Trade and other receivables, net 7 102,718 84,412
Income tax prepayments 9,288 18,076
Inventories 8 605,182 460,610
Prepayments 18,800 5,729
Total current assets 1,009,390 877,739
Non-current assets
Trade and other receivables, net 7 41,206 5,215
Financial investments designated at fair value through other comprehensive income 9 476 692
Other financial instruments 31 106,601 42,247
Property, plant and equipment, net 10 1,974,931 2,014,508
Intangible assets 11 50,494 49,640
Goodwill 12 4,459 4,459
Deferred income tax assets 17 9,446 15,618
Right of use assets 13 4,668 6,006
Other assets 101 160
Total non-current assets 2,192,382 2,138,545
Total assets 3,201,772 3,016,284
Liabilities and equity
Current liabilities
Trade and other payables 14 227,554 187,876
Financial obligations 16 450,964 65,232
Lease liabilities 13 1,856 1,531
Income tax payable 17,517 1,051
Provisions 15 24,269 9,380
Total current liabilities 722,160 265,070
Non-current liabilities
Financial obligations 16 1,094,391 1,203,352
Lease liabilities 13 3,973 5,102
Other non-current provisions 15 36,639 25,341
Deferred income tax liabilities 17 148,804 149,864
Total non-current liabilities 1,283,807 1,383,659
Total liability 2,005,967 1,648,729
Equity 18
Capital stock 423,868 423,868
Investment shares 40,279 40,279
Investment shares holds in treasury (121,258) (121,258)
Additional paid-in capital 432,779 432,779
Legal reserve 168,636 168,636
Other accumulated comprehensive results (20,094) (33,378)
Retained earnings 271,595 456,629
Total equity 1,195,805 1,367,555
Total liability and equity 3,201,772 3,016,284

The accompanying notes are an integral part of these consolidated financial statements.

F-4
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated statement of profit or loss

For the years ended December 31, 2021, 2020 and 2019

Note 2021 2020 2019

S/(000) S/(000) S/(000)

Sales of goods 19 1,937,767 1,296,334 1,392,701

Cost of sales 20 (1,378,336) (921,048) (905,806)
Gross profit 559,431 375,286 486,895

Operating income (expenses)

Administrative expenses 21 (196,069) (163,369) (174,482)
Selling and distribution expenses 22 (51,520) (40,153) (44,533)
Other operating income, net 24 6,408 4,346 2,645
Total operating expenses, net (241,181) (199,176) (216,370)
Operating profit 318,250 176,110 270,525

Other income (expenses)

Finance income 25 2,891 2,976 2,576
Finance costs 26 (88,965) (88,694) (77,986)
Net gain (loss) of derivative financial instruments at fair value through profit or loss 589 5,337 (1,491)
Accumulated net loss on settlement of derivative financial instruments at fair value through
profit or loss 16 (1,569) - -
(Loss) gain from exchange difference, net 5 (7,086) (9,831) 729
Total other expenses, net (94,140) (90,212) (76,172)
Profit before income tax 224,110 85,898 194,353

Income tax expense 17 (70,940) (28,004) (62,306)

Profit for the year 153,170 57,894 132,047

Earnings per share

Basic and diluted profit of the year attributable to equity holders of common shares and
investment in shares of Cementos Pacasmayo S.A.A. (S/ per share) 28 0.36 0.14 0.31

The accompanying notes are an integral part of these consolidated financial statements.

F-5
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated statement of other comprehensive income

For the years ended December 31, 2021, 2020 and 2019

Note 2021 2020 2019

S/(000) S/(000) S/(000)

Profit for the year 153,170 57,894 132,047

Other comprehensive income
Other comprehensive income to not be reclassified to profit or loss in subsequent periods:
Change in fair value of financial instruments designated at fair value through other
comprehensive income 9(a) (1,995) (17,532) (8,659)
Deferred income tax 17 589 5,172 2,554
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Net gain (net loss) on cash flows hedges 31(a) 20,836 (1,652) (2,556)
Deferred income tax 17 (6,146) 487 754
Other comprehensive income (loss) for the year, net of income tax 13,284 (13,525) (7,907)
Total comprehensive income for the year, net of income tax 166,454 44,369 124,140

The accompanying notes are an integral part of these consolidated financial statements.

F-6
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated statement of changes in equity

For the years ended December 31, 2021, 2020 and 2019

Unrealized
gain (loss) on
financial Unrealized
Additional instruments gain (loss) on
Capital Investment Treasury paid-in Legal designated at cash flow Retained Total
stock shares shares capital reserve fair value hedge earnings equity
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Balance as of
January 1,
2019 423,868 40,279 (121,258) 432,779 168,356 4,002 (15,948) 519,285 1,451,363
Change in
accounting
policy - - - - - - - (13) (13)
Restated total
equity as of
January 1,
2019 423,868 40,279 (121,258) 432,779 168,356 4,002 (15,948) 519,272 1,451,350
Profit for the year - - - - - - - 132,047 132,047
Other
comprehensive
loss - - - - - (6,105) (1,802) - (7,907)
Total
comprehensive
income - - - - - (6,105) (1,802) 132,047 124,140
Terminated
dividends, note
18(g) - - - - 280 - - - 280
Dividends, note
18(g) - - - - - - - (154,119) (154,119)
Balance as of
December 31,
2019 423,868 40,279 (121,258) 432,779 168,636 (2,103) (17,750) 497,200 1,421,651
Profit for the year - - - - - - - 57,894 57,894
Other
comprehensive
loss - - - - - (12,360) (1,165) - (13,525)
Total
comprehensive
income - - - - - (12,360) (1,165) 57,894 44,369
Dividends, note
18(g) - - - - - - - (98,465) (98,465)

Balance as of
December 31,
2020 423,868 40,279 (121,258) 432,779 168,636 (14,463) (18,915) 456,629 1,367,555
Profit for the year - - - - - - - 153,170 153,170
Other
comprehensive
income - - - - - (1,406) 14,690 - 13,284
Total
comprehensive
income - - - - - (1,406) 14,690 153,170 166,454
Dividends, note
18(g) - - - - - - - (338,204) (338,204)
Balance as of
December 31,
2021 423,868 40,279 (121,258) 432,779 168,636 (15,869) (4,225) 271,595 1,195,805

The accompanying notes are an integral part of these consolidated financial statements.

F-7
Cementos Pacasmayo S.A.A. and Subsidiaries

Consolidated statement of cash flows

For the years ended December 31, 2021, 2020 and 2019

Note 2021 2020 2019

S/(000) S/(000) S/(000)

Operating activities
Profit before tax 224,110 85,898 194,353
Non-cash adjustments to reconcile profit before income tax to net cash flows
Depreciation and amortization 10, 11 and 13 135,567 139,167 129,818
Finance costs 26 88,965 88,694 77,986
Long-term incentive plan 23 9,763 5,759 6,523
Provision of impairment of inventories, net 8 3,348 2,451 2,278
Accumulated net loss due to settlement of derivative financial instruments at fair value through
profit or loss 16 1,569 - -
Allowance for expected credit losses 7(d) 563 1,582 1,452
Exchange difference related to monetary transactions (9,114) 6,978 (483)
Finance income 25 (2,891) (2,976) (2,576)
Net (gain) loss on disposal of property, plant and equipment and intangible assets 24 (1,775) (2,591) 1,846
Net (gain) loss of derivate financial instruments at fair value through profit or loss (589) (5,337) 1,491
Other operating, net 3,761 2,202 1,887
Working capital adjustments
(Increase) decrease in trade and other receivables (47,713) 38,005 (23,391)
(Increase) decrease in prepayments (12,956) 4,761 (4,383)
(Increase) decrease in inventories (151,530) 54,140 (97,657)
Increase (decrease) in trade and other payables 48,834 3,346 (4,220)
289,912 422,079 284,924
Interest received 4,484 1,838 2,252
Interest paid (68,433) (68,444) (47,155)
Income tax paid (55,401) (24,108) (34,884)

Net cash flows from operating activities 170,562 331,365 205,137

F-8
Consolidated statement of cash flows (continued)

Note 2021 2020 2019

S/(000) S/(000) S/(000)
Investing activities
Purchase of property, plant and equipment (85,594) (47,325) (77,680)
Loan to related party (17,121) - -
Purchase of intangible assets (8,953) (5,224) (5,335)
Purchase of investments available for sale (1,779) - -
Loans granted (174) (4,203) (1,117)
Collection of loans from related entities 17,121 - -
Cash flow proceeds from sale of property, plant and equipment 4,152 4,634 4,199
Proceeds from loans 524 3,697 354
Opening of term deposits with original maturity greater than 90 days - (208,990) -
Redemption of term deposits with original maturity greater than 90 days - 208,990 -
Net cash flows used in investing activities (91,824) (48,421) (79,579)
Financing activities
Dividends paid 30 (336,821) (143,623) (120,975)
Payment for hedging instrument 30 (15,214) (15,685) (14,935)
Lease payments 13 (2,419) (1,669) -
Bank loans received 30 220,000 791,270 638,281
Cash flow from settlement of derivative financial instruments 3,879 - 1,458
Dividends returned 30 481 321 328
Payment of bank loans 30 - (674,463) (610,999)
Payment of bank overdraft 30 - (70,921) -
Proceeds from bank overdraft 30 - 70,921 -
Net cash flows used in financing activities (130,094) (43,849) (106,842)
Net (decrease) increase in cash and cash equivalents (51,356) 239,095 18,716
Net foreign exchange difference 15,846 1,551 483
Cash and cash equivalents as of January 1 6 308,912 68,266 49,067

Cash and cash equivalents as of December 31 6 273,402 308,912 68,266

Transactions with no effect in cash flows:
Unrealized exchange difference related to monetary transactions (9,114) 6,978 (483)
Outstanding accounts payable related to acquisition of property, plant and equipment 10(e) 7,615 4,830 8,698
Addition of right-of-use assets and lease liabilities 13 217 7,504 -
Additions of quarry rehabilitation costs 15 - 7,775 -

The accompanying notes are an integral part of these consolidated financial statements.

F-9
Cementos Pacasmayo S.A.A. and Subsidiaries

Notes to the consolidated financial statements

As of December 31, 2021, 2020 and 2019

1. Corporate information

Cementos Pacasmayo S.A.A. (hereinafter “the Company”) was incorporated in 1957 and, under the Peruvian General Corporation Law, is an open stock corporation, its shares
are listed in the Lima and New York Stock Exchange. The Company is a subsidiary of Inversiones ASPI S.A., which holds 50.01 percent of the Company’s common shares as
of December 31, 2021, 2020 and 2019. The Company’s registered address is Calle La Colonia No.150, Urbanización El Vivero, Santiago de Surco, Lima, Peru. All the
subsidiaries are domiciled and operate in Peru.

The Company’s main activity is the production and marketing of cement, blocks, concrete and quicklime in La Libertad region, in the North of Peru.

The issuance of the consolidated financial statements of the Company and its subsidiaries (hereinafter “the Group”) for the year ended December 31, 2021 was authorized by
the Company’s Board of Directors on February 14, 2022. The consolidated financial statements as of December 31, 2020 and for the year ended that date were approved by the
General Shareholders’ Meeting on March 23, 2021.

As of December 31, 2021 and 2020, the consolidated financial statements comprise the financial statements of the Company and its subsidiaries: Cementos Selva S.A. and
subsidiaries, Distribuidora Norte Pacasmayo S.R.L., Empresa de Transmisión Guadalupe S.A.C., Salmueras Sudamericanas S.A., Calizas del Norte S.A.C. (on liquidation),
Soluciones Takay S.A.C. and 150Krea Inc. To these dates, the Company maintains a 100 percent interest in all its subsidiaries.

The main activities of the subsidiaries incorporated in the consolidated financial statements are described as follows:

- Cementos Selva S.A. is engaged in production and marketing of cement and other construction materials in the northeast region of Peru. Also, it holds 100 percent of
the shares in Dinoselva Iquitos S.A.C. (a cement and construction materials distributor in the north of Peru, which also produces and sells precast, cement bricks and
ready-mix concrete) and in Acuícola Los Paiches S.A.C. (a fish farm entity).

- Distribuidora Norte Pacasmayo S.R.L. is mainly engaged in selling cement produced by the Company. Additionally, it produces and sells precast, cement bricks and
ready-mix concrete.

- Empresa de Transmisión Guadalupe S.A.C. is mainly engaged in providing electric energy transmission services to the Company.

- Salmueras Sudamericanas S.A.(“Salmueras”) In December 2017, the Company decided not to continue with the activities related to this project of Salmueras.

- Calizas del Norte S.A.C. (on liquidation). On May 31, 2016, the Company decided to liquidate the subsidiary Calizas del Norte S.A.C.

F-10
Notes to the consolidated financial statements (continued)

- Soluciones Takay S.A.C., entity constituted on March 29, 2019 whose corporate purpose is to provide advisory services and information, promotion, acquisition,
intermediation services for the management and development of real estate projects by natural and/or legal persons.

- 150Krea Inc., entity constituted on June 3, 2021 whose corporate purpose is the lease of intangible assets.

1.1 COVID 19 -

COVID-19, an infectious disease caused by a new virus, was declared a world-wide pandemic by the World Health Organization (“WHO”) on March 11, 2020.The
measures to slow the spread of COVID-19 have had a significant impact on the global economy.

On March 15, 2020, the Peruvian government declared a nationwide state of emergency, effectively shutting down all business considered non-essential (with
exception of food production and commercialization, pharmaceuticals and health). As a result, since that date, the Company shut-down its three production plants until
the Peruvian government allowed it to restart production and commercial activities on May 20, 2020.

During the halt period, the Company was unable to generate revenues; however, it largely returned to the operating levels prior to the shut-down as of the month of
August 2020. The Group has prepared the consolidated financial statements for the financial year ended December 31, 2021 on a going concern basis, which assumes
continuity of current business activities and the realization of assets and settlement of liabilities in the ordinary course of business.

Regarding its financial obligations, the Company has not seen any change in its access and cost of financing; however, at the start of the state of emergency it took out
a bank overdraft facility and short-term loans as a precautionary measure in order to cover its working capital needs, some of these loans have already been paid off
and others are still outstanding as disclosed in note 16.

During 2021, a large part of the Peruvian population has been immunized with various types of vaccines, which has allowed us to continue with the economic
reactivation and the reduction of positive cases. Given the presence of the Omicron variant, the Peruvian Government has established a series of measures to prevent
the spread of this variant, these measures have been applied by the Company to safeguard the integrity and health of its workers and to continue with normal
operations.

On January 21, 2022 the Government decided to extend the state of health emergency nationwide for 180 calendar days from March 2, 2022, to August 29, 2022 in
order to continue with the prevention, control and health care actions for the protection of the population of the entire country.

The Company maintains various measures to preserve the health of its employees and to prevent contagion in its administrative and operational areas, such as remote
work, rigorous cleaning of work environments, distribution of personal protective equipment, test of suspicious cases and body temperature measurement.

2. Significant accounting policies

2.1 Basis of preparation –

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the
International Accounting Standards Board (IASB).

F-11
Notes to the consolidated financial statements (continued)

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments designated at fair value through other
comprehensive income (OCI) and derivative financial instruments that have been measured at fair value. The carrying values of recognized assets and liabilities that
are designated as hedged items in fair value hedges that would otherwise be carried at amortized cost are adjusted to record changes in fair value attributable to the
risks that are being hedged in effective hedge relationships. The consolidated financial statements are presented in Soles and all values are rounded to the nearest
thousand (S/000), except when otherwise indicated.

The consolidated financial statements provide comparative information in respect of the previous period. There are certain standards and amendments applied for the
first time by the Group during 2021 that did not require the restatement of previous financial statements, as explained in note 2.3.19.

2.2 Basis of consolidation -

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as of December 31, 2021 and 2020 and for the years ended
December 31, 2021, 2020 and 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if it has: (i) power over the investee (i.e.
existing rights that give it the current ability to direct the relevant activities of the investee), (ii) exposure, or rights, to variable returns from its involvement with the
investee, and (iii) the ability to use its power over the investee to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control
until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling
interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries
to bring their accounting policies into line with the Group´s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating
to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

2.3 Summary of significant accounting policies -

2.3.1 Cash and cash equivalents -

Cash and cash equivalents presented in the statements of cash flows comprise cash at banks and on hand and short-term deposits with original maturity of three months
or less.

2.3.2 Financial instruments-initial recognition and subsequent measurement –

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets -

Initial recognition and measurement -

Financial assets are classified at initial recognition as measured at amortized cost, fair value through other comprehensive income (OCI) or fair value through
profit or loss.

F-12
Notes to the consolidated financial statements (continued)

The Group’s financial assets include cash and cash equivalents, commercial and other receivables, available-for-sale financial investments and derivative
financial instruments.

Subsequent measurement -

For purposes of subsequent measurement, financial assets are classified into the following categories:

- Financial assets at amortized cost (debt instruments).

- Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments).

- Financial assets designated at fair value through OCI with not recycling of cumulative gains and losses upon derecognition (equity instruments).

- Financial assets at fair value through profit or loss.

The classification depends on the business model of the Company and the contractual terms of the cash flows.

Financial assets at amortized cost (debt instruments) -

The Group measures financial assets at amortized cost if both of the following conditions are met:

- The financial asset is held within a business model with the objective to collect contractual cash flows and not sale or trade it, and if,

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding

Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are
recognized in profit or loss when the asset is derecognized, modified or impaired.

Financial assets are not reclassified after their initial recognition, except if the Group changes its business model for its management.

As of December 31, 2021 and 2020 the Group held trade and other receivables in this category.

Financial assets at fair value through OCI (debt instruments) -The Group measures debt instruments at fair value through OCI if both of the following
conditions are met:

- The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling, and

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding

The Group does not have debt instruments classified in this category.

Financial assets at fair value through OCI (equity instruments) -

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when
they meet the definition of equity and are not held for trading. The classification is determined on an instrument-by-instrument basis.

F-13
Notes to the consolidated financial statements (continued)

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss
when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

As of December 31, 2021 and 2020 the Group elected to classify irrevocably its non-listed equity investments under this category, see note 9.

Financial assets at fair value through profit or loss -

Financial assets at fair value through profit or loss include financial assets held for trading assets, assets from derivative financial instruments at fair value
through profit or loss, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be
measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.
Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss,
irrespective of the business model.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value and net changes in such fair value are
presented as financial costs (net negative changes in fair value) or financial income (net positive changes in fair value) in the consolidated statement of profit
or loss.

As of December 31,2021 and 2020, the Group hold assets for derivate financial instruments at fair value through profit or loss classified in this category.

Derecognition -

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from
the Group’s consolidated statement of financial position) when:

- The rights to receive cash flows from the asset have expired, or

- The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of
the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset

When the Group has transferred its rights to receive cash flows from an asset or has entered a pass-through arrangement, it evaluates if, and to what extent, it
has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor
transferred control of the asset, the Group continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also
recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the
Group has retained.

F-14
Notes to the consolidated financial statements (continued)

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and
the maximum amount of consideration that the Group could be required to repay.

(ii) Impairment of financial assets -

The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on
the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at
an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are
provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of
the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit
risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Group considers a financial asset in default when contractual payments are 360 days past due. However, in certain cases, the Group may also consider a
financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in
full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.

(iii) Financial liabilities -

Initial recognition and measurement -

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as
derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction
costs.

The Group’s financial liabilities include trade and other payables, interest-bearing loans and borrowings.

F-15
Notes to the consolidated financial statements (continued)

Subsequent measurement -

The subsequent measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss -

Financial liabilities at fair value through profit or loss include financial liabilities held for trading, derivative financial instruments at fair value through profit
or loss and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term; gains or losses on liabilities held for
trading are recognized in the statement of profit or loss. This category also includes derivative financial instruments entered by the Group that are not
designated as hedging instruments in hedge relationships as defined by IFRS 9.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the
criteria in IFRS 9 are satisfied.

As of December 31, 2021 and 2020, the Group does not have instruments classified in this category.

Loans and borrowings -

After their initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the consolidated statement of profit or loss.

As of December 31, 2021 and 2020, the Group includes trade and other payables and financial liabilities in this category, for more information refer to notes
14 and 16.

Derecognition -

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amount is
recognized in the consolidated statement of profit or loss.

(iv) Offsetting of financial instruments -

Financial assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable
legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(v) Derivative financial instruments and hedge accounting –

Initial recognition and subsequent measurement:

The Group uses derivative financial instruments, cross currency swaps (CCS), to hedge its foreign currency exchange rate risk. These derivative financial
instruments are initially recognized at their fair values on the date on which the derivative contract is entered into and subsequently are remeasured at their
fair value. Derivatives are accounted for as financial assets when their fair value is positive and as financial liabilities when their fair value is negative.

F-16
Notes to the consolidated financial statements (continued)

For the purpose of hedge accounting, hedges are classified as:

- Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment.

- Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized
asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment.

- Hedges of a net investment in a foreign operation.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge
accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Group
will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash
flows attributable to the hedged risk. Such hedges expect to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on
an ongoing basis to determine that they have been highly effective throughout the financial reporting periods for which they were designated.

A hedging relationship qualifies for hedge accounting if it meets all the following effectiveness requirements:

- There is ‘an economic relationship’ between the hedged item and the hedging instrument.

- The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship.

- The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group hedges and the quantity
of the hedging instrument that the Group uses to hedge that quantity of hedged item.

Hedges that meet all the qualifying criteria for hedge accounting are recorded as cash flow hedges.

Cash flow hedges

Any gains or losses arising from changes in the fair value of derivatives is taken directly to profit or loss, except for the effective portion of cash flow
hedges, which is recognized in OCI and later reclassified to profit or loss when the hedge item affects profit or loss.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification adjustment in the same period or periods
during which the hedged cash flows affect profit or loss.

F-17
Notes to the consolidated financial statements (continued)

In the case that the cash flow hedge is discontinued, the amount accumulated in other comprehensive income must remain in other comprehensive income
accumulated if the covered cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit or loss as a reclassification
adjustment. After discontinuation, once the hedged cash flows are given, any amount that remains in other comprehensive accumulated results must be
recorded considering the nature of the underlying transaction.

(vi) Fair value measurement -

The Group measures financial instruments such as derivatives, and equity investment, at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing
the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value accounting hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have
occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

F-18
Notes to the consolidated financial statements (continued)

The Group’s management determines the policies and procedures for recurring and non-recurring fair value measurements.

At each reporting date, the Financial Management analyzes the changes in the values of the assets and liabilities that must be measured or determined on a
recurring and non-recurring basis according to the Group’s accounting policies. For this analysis, Management contrasts the main variables used in the latest
assessments made with updated information available from valuations included in contracts and other relevant documents.

Management also compares the changes in the fair value of each asset and liability with the relevant external sources to determine whether the change is
reasonable.

For purposes of disclosure of fair value, the Group has determined classes of assets and liabilities based on the inherent nature, characteristics and risks of
each asset and liability, and the level of the fair value accounting hierarchy as explained above.

2.3.3 Foreign currencies -

The functional and presentation currency for the consolidated financial statements of the Group is soles, which is also the functional currency for its subsidiaries.

Transactions and balances

Transactions in foreign currencies are initially recorded at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences
arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

2.3.4 Inventories -

Inventories are valued at the lower of cost and net realizable value. Costs incurred in bringing each product to its present location and conditions are accounted for
as follows:

Raw materials and supplies

- Purchase cost determined using the weighted average method.

Finished goods and work in progress

- Cost of direct materials and supplies, services provided by third parties, direct labor and a proportion of manufacturing overheads based on normal operating
capacity, excluding borrowing costs and exchange currency differences.

Inventory in transit

- Purchase cost.

F-19
Notes to the consolidated financial statements (continued)

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and the estimated costs necessary to make the
sale.

2.3.5 Borrowing costs -

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period in which they occur. Borrowing
costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to
relevant general borrowings of the Group during the period. All other borrowing costs are recognized in the consolidated statement of profit or loss in the period in
which they are incurred.

2.3.6 Leases -

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

Group as a lessee:

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes
lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right of use assets

The Group recognizes right-of-use assets at the commencement date of the lease (the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets, unless the ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset. The leased assets correspond to motorized vehicles whose useful life is 5 years.

The right-of-use assets are subject to impairment assessment. Refer to accounting policies in section 2.3.12.

ii) Lease liabilities

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease
term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. Variable lease payments that do not depend on an index or a
rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the assessment of an option to purchase the underlying asset, a change in the amounts expected to be paid under residual value guarantee or
changes to future payments resulting from a change in an index or rate used to determine such lease payments

The Group’s lease liabilities are included in “lease liabilities” in the consolidated statement of financial position.

iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of
12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to
leases of office equipment that are considered to be low value.

F-20
Notes to the consolidated financial statements (continued)

Group as a lessor:

Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income is
accounted for on a straight-line basis over the lease terms and is included in other income in the statement of profit or loss due to its operating nature. Initial direct
costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same
basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

2.3.7 Property, plant and equipment -

Property, plant and equipment is stated at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Such cost includes the cost of
replacing component parts of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met (see note
2.3.5). The capitalized value of a finance lease is also included within property, plant and equipment. When significant parts of plant and equipment are required to
be replaced at intervals, the Group recognizes such parts as individual assets with specific useful lives and depreciates them separately based on their specific useful
lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a
provision are met. Refer to significant accounting judgments, estimates and assumptions (note 3) and quarry rehabilitation cost provisions (note 15).

Depreciation of assets is determined using the straight-line method over the estimated useful lives of such assets as follows:

Years
Buildings and other constructions:
Administrative facilities Between 20 and 51
Main production structures Between 20 and 56
Minor production structures Between 20 and 35
Machinery and equipment:
Mills and horizontal furnaces Between 24 and 45
Vertical furnaces, crushers and grinders Between 23 and 36
Electricity facilities and other minors Between 10 and 35
Furniture and fixtures 10
Transportation units:
Heavy units Between 5 and 15
Light units Between 5 and 10
Computer equipment Between 3 and 10
Tools Between 5 and 10

The asset’s residual value, useful lives and methods of depreciation are reviewed at each reporting period and adjusted prospectively if appropriate.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the consolidated statement of profit or loss when the asset is derecognized.

F-21
Notes to the consolidated financial statements (continued)

2.3.8 Mining concessions -

Mining concessions correspond to the exploration rights in areas of interest acquired. Mining concessions are stated at cost, net of accumulated amortization and/or
accumulated impairment losses, if any, and are presented within the “Property, plant and equipment” caption of consolidated statement of financial position. Those
mining concessions are amortized following the straight-line method. In the event the Group abandons the concession, the costs associated are written-off in the
consolidated statement of profit or loss.

As of December 31, 2021 and 2020, mining concessions of the Group correspond to areas that contain raw material necessary for cement production.

2.3.9 Quarry development costs and stripping costs -

Quarry development costs -

Quarry development costs incurred are stated at cost and are the next step in development of quarries after exploration and evaluation stage. Quarry development
costs are, upon commencement of the production phase, presented net of accumulated amortization and/or accumulated impairment losses, if any, and are presented
within the property, plant and equipment caption. The amortization is calculated using the straight-line method based on useful live of the quarry to which it relates.
Expenditures that significantly increase the economic life of the quarry under exploitation are capitalized.

Stripping costs -

Stripping costs incurred in the development of a mine before production commences are capitalized as part of mine development costs and subsequently amortized
over the life of the mine on a units-of-production basis, using the proved reserves.

Stripping costs incurred subsequently during the production phase of its operation are recorded as part of cost of production.

2.3.10 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at
the date of acquisition. Following initial recognition, intangible assets are carried at cost less any amortization and accumulated impairment losses. Internally
generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the
expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the economic useful life and assessed for impairment whenever there is an indication that the intangible asset
may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to
modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with
finite lives is recognized in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets.

The Group’s intangible assets with finite useful lives are amortized in an average term of ten years.

F-22
Notes to the consolidated financial statements (continued)

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The
assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis. As of December 31, 2021 and 2020, the Company maintains as intangible assets with an indefinite useful the fair
value of a brand acquired in 2018.

Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the statement of profit or loss.

Exploration and evaluation assets -

Exploration and evaluation activity involve the search for mineral resources, the determination of technical feasibility and the assessment of commercial viability of
an identified resource. Exploration and evaluation activity include:

- Researching and analyzing historical exploration data.

- Gathering exploration data through geophysical studies.

- Exploratory drilling and sampling.

- Determining and examining the volume and grade of the resource.

- Surveying transportation and infrastructure requirements.

- Conducting market and finance studies.

License costs paid in connection with a right to explore in an existing exploration area, are capitalized and amortized over the term of the license.

Once the legal right to explore has been acquired, exploration and evaluation costs are charged to the consolidated statement of profit or loss, unless management
concludes that a future economic benefit is more likely than not to be realized, in which case such costs are capitalized. These costs include directly attributable
employee remuneration, materials and fuel used, surveying costs, drilling costs and payments made to contractors.

In evaluating if costs meet the criteria to be capitalized, several different sources of information are used, including the nature of the assets, extension of the
explored area and results of sampling, among others. The information that is used to determine the probability of future benefits depends on the extent of
exploration and evaluation that has been performed.

Exploration and evaluation costs are capitalized when the exploration and evaluation activity is within an area of interest for which it is expected that the costs will
be recouped by future exploitation and active and significant operations in relation to the area are continuing or planned for the future.

The main estimates and assumptions the Group uses to determine whether it is likely that future exploitation will result in future economic benefits include:
expected operational costs, committed capital expenditures, expected mineral prices and mineral resources found. For this purpose, the future economic benefit of
the project can reasonably be regarded as assured when mine-site exploration is being conducted to confirm resources, mine-site exploration is being conducted to
convert resources to reserves or when the Group is conducting a feasibility study, based on supporting geological information.

F-23
Notes to the consolidated financial statements (continued)

As the capitalized exploration and evaluation costs asset is not available for use, it is not amortized. These exploration costs are transferred to mine development
assets once the work completed to date supports the future development of the property and such development receives appropriate approvals. In this phase, the
exploration costs are amortized in accordance with the estimated useful life of the mining property from the time the commercial exploitation of the reserves begins.
All capitalized exploration and evaluation costs are monitored for indications of impairment. Where a potential impairment is indicated, assessment is performed for
each area of interest in conjunction with the group of operating assets (representing a cash generating unit) to which the exploration is attributed.

Exploration areas in which resources have been discovered but require major capital expenditure before production can begin, are continually evaluated to ensure
that commercial quantities of resources exist or to ensure that additional exploration work are under way or planned. To the extent that capitalized expenditure is no
longer expected to be recovered it is charged to the consolidated statement of profit or loss. The Group assesses at each reporting date whether there is an indication
that exploration and evaluation assets may be impaired. The following facts and circumstances are considered in this assessment:

(i) the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not
expected to be renewed.

(ii) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned.

(iii) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources
and the entity has decided to discontinue such activities in the specific area.

(iv) sufficient data exists to indicate that, although development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation
asset is unlikely to be recovered in full through successful development or by sale.

2.3.11 Ore reserve and resource estimates -

Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the Group’s mining properties and concessions. The Group
estimates its ore reserves and mineral resources, based on information compiled by appropriately qualified persons relating to the geological data on the size, depth
and shape of the ore body, and requires complex geological judgments to interpret the data. The estimation of recoverable reserves is based upon factors such as
estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgments made in
estimating the size and grade of the ore body. Changes in the reserve or resource estimates may impact upon the carrying value of exploration and evaluation assets,
provision for quarry rehabilitation and depreciation and amortization charges.

2.3.12 Impairment of non-financial assets –

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing
for an asset is required (goodwill and Intangible assets with indefinite useful lives), the Group estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset of
CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

F-24
Notes to the consolidated financial statements (continued)

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. If no such
transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.

The Group supports its impairment calculation by using detailed budgets and forecast calculations, which are prepared separately for each of the Group´s CGUs to
which the individual assets are allocated.

Impairment losses of continuing operations, including impairment on inventories, are recognized in the consolidated statement of profit or loss in expense
categories consistent with the function of the impaired asset.

In addition, an assessment is made at each reporting date to determine whether there is any indication that previously recognized impairment losses may no longer
exist or have decreased. If such an indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The
reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated statement of
profit or loss.

Exploration and evaluation assets are tested for impairment annually as of December 31, either individually or at the cash-generating unit level, as appropriate, and
when circumstances indicate that the carrying value may be impaired.

2.3.13 Provisions -

General -

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects
some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision is presented in profit or loss net of any reimbursement. If the effect of the time value of
money is material, provisions are discounted using a current pre-tax rate that reflects where appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is recognized as finance cost in the consolidated statement of profit or loss.

Quarry rehabilitation provision -

The Group records the present value of estimated costs of legal and constructive obligations required to restore operating locations in the period in which the
obligation is incurred. Quarry rehabilitation costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are
recognized as part of the cost of that particular asset. The cash flows are discounted at a current risk-free rate. The unwinding of the discount is expensed as
incurred and recognized in the consolidated statement of profit or loss as a finance cost. The estimated future costs of quarry rehabilitation are reviewed annually
and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

F-25
Notes to the consolidated financial statements (continued)

Environmental expenditures and liabilities -

Environmental expenditures that relate to current or future revenues are expensed or capitalized as appropriate. Expenditures that relate to an existing condition
caused by past operations and do not contribute to current or future earnings are expensed.

Liabilities for environmental costs are recognized when a clean-up is probable, and the associated costs can be reliably estimated. Generally, the timing of
recognition of these provisions coincides with the commitment to a formal plan of action or, if earlier, on divestment or on closure of inactive sites.

The amount recognized is the best estimate of the expenditure required. Where the liability will not be settled for a number of years, the amount recognized is the
present value of the estimated future expenditure.

2.3.14 Employees benefits -

The Group has short-term obligations for employee benefits including salaries, severance contributions, legal bonuses, performance bonuses and profit sharing.
These obligations are recorded monthly on an accrual basis.

Additionally, the Group has a long-term incentive plan for key management. This benefit is settled in cash, measured on the salary of each officer and upon
fulfilling certain conditions such as years of experience within the Group and permanency. The Group recognizes the long-term obligation at its present value at the
end of the reporting period using the projected credit unit method. To calculate the present value of these long-term obligations the Group uses a government bond
discount rate at the date of the consolidated financial statements. This liability is annually reviewed on the date of the consolidated financial statements, and the
accrual updates and the effect of changes in discount rates are recognized in the consolidated statement of profit or loss, until the liability is extinguished.

2.3.15 Revenue recognition -

The group is dedicated to the production and trading of cement, blocks, concrete and quicklime, as well as trade of construction supplies. These goods are sold in
contracts with customers. The Group has concluded that it is principal in its sales agreements because it controls the goods or services before transferring to the
customer.

Revenue is measured at the fair value of the consideration received or receivable, considering contractually defined terms of payment and excluding taxes or duties.

The following specific recognition criteria must also be met before revenue is recognized:

Sales of goods -

Revenue from sale of goods is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods.

F-26
Notes to the consolidated financial statements (continued)

The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to
be allocated. In determining the transaction price for the sale of goods, the Group considers the effects of variable consideration, the existence of significant
financing components, noncash consideration, and consideration payable to the customer (if any).

Rendering of services -

In the business segments cement, quicklime, concrete, blocks and construction supplies, the Group provides transportation services. These services are sold together
with the sale of the goods to the customer.

Transportation services are satisfied when the transport service is concluded, which coincides with the moment of delivery of the goods to the customers.

Operating lease income -

Income from operating lease of land and office was recognized on a monthly accrual basis during the term of the lease.

Interest income -

For all financial instruments measured at amortized cost and interest-bearing financial assets, interest income is recorded using the effective interest rate (EIR). EIR
is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where
appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in finance income in the consolidated statement of profit or loss.

2.3.16 Taxes -

Current income tax -

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date in Peru, where the Group operates and generates taxable income.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the consolidated statement of profit or loss. Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred tax -

Deferred tax is provided using the balance sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

F-27
Notes to the consolidated financial statements (continued)

Deferred tax liabilities are recognized for all taxable temporary differences, except in respect of taxable temporary differences associated with investments in
subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses. Deferred tax assets are
recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized, except in respect of deductible temporary differences associated with investments in subsidiaries, where deferred
assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to
the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax related to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the
deferred taxes relate to the same taxable entity and the same taxation authority.

Mining royalties -
Mining royalties are accounted when they have the characteristics of an income tax. This is considered to be the case when they are imposed under government
authority and the amount payable is based on taxable net income, rather than based on quantity produced or as a percentage of revenue, after adjustment for
temporary differences. For such arrangements, current and deferred tax is provided on the same basis as described above for income tax. Obligations arising from
royalty arrangements that do not satisfy these criteria are recognized as current provisions and included in results of the year.

F-28
Notes to the consolidated financial statements (continued)

2.3.17 Investment shares held in treasury -

Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in the consolidated
statement of profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.

2.3.18 Business combinations and goodwill -

A business consists of inputs and processes applied to those inputs that have the ability to contribute to the creation of outputs. Business combinations are accounted
for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair
value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling
interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and
included in administrative expenses of the consolidated statement of profit or loss.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the
contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as equity
is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial
instrument and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognized in the statement of profit or
loss in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes
in fair value recognized in profit or loss.

Goodwill

Goodwill is the excess of the aggregate of the consideration transferred on the assets acquisitions over the fair value of the acquire assets.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and
any previous interest held over the net identifiable assets acquired and liabilities assumed). If the reassessment still results in an excess of the fair value of net assets
acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a
business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

The Group perform impairment tests of goodwill annually. The impairment of goodwill is determined estimating the recoverable amount of the cash generating
units related to it. When the recoverable amount of the cash generating units is lower than the carrying value, an impairment is recognized. Impairment related to
goodwill cannot be reversed in future periods.

F-29
Notes to the consolidated financial statements (continued)

2.3.19 New amended standards and interpretations –

The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2021. The Group has
not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Amendments to IFRS 7, IFRS 9, IFRS 4, IFRS 16 and IAS 39, , The amendments provide temporary reliefs which addresses the financial reporting effects when an
interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

● A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating
interest rate, equivalent to a movement in a market rate of interest.

● Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued.

● Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk
component.

These amendments had no impact on the consolidated financial statements of the Group.

Amendments to IFRS 16 Covid-19-Related Rent Concessions beyond 30 June 2021 On May 28, 2020, the IASB issued a COVID-19-Related Rent Concessions
related amendment to IFRS 16 Leases. The amendment provides relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent
concessions arising as a direct consequence of the COVID-19 the pandemic. As a practical expedient, a lessee may elect not to assess whether a COVID-19 related
rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the COVID-19
related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification.

The amendment was intended to apply until June 30, 2021, but as the impact of the pandemic is continuing, on March 31, 2021, the IASB extended the period of
application of the expedient until to June 30, 2022.The amendment applies to annual reporting periods beginning on or after April 1, 2021. Early application is
permitted. This amendment had no impact on the Group’s consolidated financial statements.

F-30
Notes to the consolidated financial statements (continued)

3. Significant accounting judgments, estimates and assumptions

The preparation of the Group’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are described below. The Group based its assumptions and estimates on parameters available when the
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The most significant estimate considered by the
Company’s Management in relation to the consolidated financial statements refers to the evaluation of the impairment of long-lived assets, see notes 2.3.2, 2.3.12, 10 and 11.

4. Standards issued but not yet effective

The standards and interpretations relevant to the Group, that are issued, but not yet effective, up to the date of issuance of the financial statements are disclosed below. The Group
intends to adopt these standards, if applicable, when they become effective:

Amendments to IAS 1: Classification of Liabilities as Current or Non-current In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the
requirements for classifying liabilities as current or non-current. The amendments clarify:

- What is meant by a right to defer settlement

- That a right to defer must exist at the end of the reporting period

- That classification is unaffected by the likelihood that an entity will exercise its deferral right

- That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.

The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Group is currently assessing the impact
the amendments will have on current practice and whether existing loan agreements may require renegotiation.

Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 In May 2020, the IASB issued Property, Plant and Equipment — Proceeds before
Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to
the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items,
and the costs of producing those items, in profit or loss.

The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment
made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment.

This amendment has not had a material impact on the Group.

F-31
Notes to the consolidated financial statements (continued)

Onerous contracts - Costs of fulfilling a contract - Amendments to IAS 37 In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity should include
when assessing whether a contract is onerous or loss-making.

The amendments apply a “directly related cost approach”. Costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of
costs directly related to contract activities. General and administrative costs are not directly related to a contract and are excluded unless they are explicitly charged to the
counterparty under the contract.

The amendments are effective for annual periods beginning on or after January 1, 2022. The Group will apply these amendments to contracts for which it has not yet fulfilled all
of its obligations at the beginning of the annual period in which it first applies the amendments.

This amendment is not expected to have a material impact on the Group.

IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities As part of its 2018-2020 annual improvements to IFRS standards process the
IASB issued an amendment to IFRS 9. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are
substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or
received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of
the annual reporting period in which the entity first applies the amendment.

The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier adoption permitted. The Group will apply the amendments to financial
liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.

This amendment is not expected to have a material impact on the Group.

Definition of Accounting Estimates - Amendments to IAS 8

In February 2021, the IASB issued amendments to IAS 8, in which it introduces a definition of ‘accounting estimates’. The amendments clarify the distinction between changes in
accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting
estimates. The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and apply to changes in accounting policies and changes in
accounting estimates that occur on or after the start of that period. Earlier application is permitted as long as this fact is disclosed. The amendments are not expected to have a
material impact on the Group.

F-32
Notes to the consolidated financial statements (continued)

Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2

In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements, in which it provides guidance and examples to help
entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their ’significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on
how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments to IAS 1 are applicable for annual periods beginning on
or after January 1, 2023 with earlier application permitted. Since the amendments to the Practice Statement 2 provide non-mandatory guidance on the application of the definition
of material to accounting policy information, an effective date for these amendments is not necessary. The Group is currently assessing the impact of the amendments to
determine the impact they will have on the Group’s accounting policy disclosures.

5. Transactions in foreign currency

Transactions in foreign currency take place at the open-market exchange rates published by the Superintendence of Banks, Insurance and Pension Funds Administration. As of
December 31, 2021 the exchange rates for transactions in United States dollars, published by this institution, were S/3.975 for purchase and S/3.998 for sale (S/3.618 for purchase
and S/3.624 for sale as of December 31, 2020).

As of December 31, 2021 and 2020, the Group had the following assets and liabilities in United States dollars:

2021 2020
US$(000) US$(000)

Assets
Cash and cash equivalents 51,343 15,356
Advances to suppliers for work in progress 9,210 4,242
Trade and other receivables 4,946 4,587
65,499 24,185
Liabilities
Trade and other payables (10,356) (11,314)
Interest-bearing loans and borrowings (149,612) (149,612)
(159,968) (160,926)
Cross currency swap position 132,000 150,000
Net monetary position 37,531 13,259

F-33
Notes to the consolidated financial statements (continued)

As of December 31, 2021 and 2020, the Group has cash currency hedging agreements for its bonds (denominated in US dollars), see note 16. Of the US$132,000,000 and
US$150,000,000 shown in the swap position as of December 31, 2021 and 2020, respectively, there are underlying liabilities in the amount of US$131,612,000 and the difference
of US$ 388,000 and US$18,388,000 is maintained as derivative financial instruments at fair value through profit or loss.

During 2021, the net loss originated by the exchange difference was approximately S/7,086,000 (the net loss from exchange difference amounted to S/9,831,000 during 2020 and
net gain from exchange difference amounted to S/729,000 during 2019). All these results are presented in the caption “(Loss) gain from exchange difference, net” of the
consolidated statement of income.

6. Cash and cash equivalents

(a) This caption was made up as follows:

2021 2020
S/(000) S/(000)

Cash on hand 273 177

Cash at banks (b) 225,629 22,510
Short-term deposits (c) 47,500 286,225
273,402 308,912

(b) Cash at banks is denominated in local and foreign currency and U.S. dollars, is deposited in local and foreign bank are freely available. The demand deposits interest yield
is based on daily bank deposit rates.

(c) The short-term deposits held in domestic banks were freely available and earned interest at the respective short-term market rates and original maturity less than three
months.

F-34
Notes to the consolidated financial statements (continued)

7. Trade and other receivables

(a) This caption was made up as follows:

Current Non-current
2021 2020 2021 2020
S/(000) S/(000) S/(000) S/(000)

Trade receivables (b) 91,072 73,366 - -

Other accounts receivable 5,940 1,913 - -
Accounts receivable from Parent company and affiliates, note 27 1,314 2,212 - -
Funds restricted to tax payments 1,314 346 - -
Loans granted 1,066 1,624 83 1,688
Other receivables from sale of fixed assets 937 1,781 - -
Interest receivable 636 1,375 - -
Loans to employees 610 357 - -
Allowance for expected credit losses (d) and (e) (5,539) (5,324) - -
Financial assets classified as receivables (e) 97,350 77,650 83 1,688
Value-added tax credit 5,368 6,443 2,673 3,319
Other accounts receivable (c) - - 38,242 -
Tax refund receivable - 319 9,242 9,242
Allowance for expected credit losses (d) - - (9,034) (9,034)
Non-financial assets classified as receivables 5,368 6,762 41,123 3,527
102,718 84,412 41,206 5,215

(b) Trade account receivables have current maturity (30 to 90 days) and those overdue bear interest.

(c) On March 22, 2021, the Company received Tax Court Resolution N° 00905-4-21 that declares the calculation of Mining Royalty should be based on gross sale of the final
product (cement) for the years 2008 and 2009. This is an opposite position to what is established by the Constitutional Court in the STC Exp. N° 1043-2013-PA/TC that
declares founded the writ of protection presented by the Company and its right to calculate the Mining Royalty exclusively based on the value of the mining component,
without considering in any way the value of the final products derived from industrial and manufacturing processes.

F-35
Notes to the consolidated financial statements (continued)

The Company has made, under protest, partial payments of the debts arbitrarily placed in collection. These payments as of December 31, 2021 amount to approximately
S/38,242,000 and are presented in the caption “Miscellaneous receivables, net”, non-current assets. To date, the Company has initiated the corresponding legal actions to
recover said payments and in the opinion of Management and its external legal advisors, it has a high probability of obtaining a favorable result.

(d) The movement of the allowance for expected credit losses is as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Opening balance 14,358 12,781 11,329

Additions, note 22 563 1,582 1,452
Recoveries (348) (5) -
Ending balance 14,573 14,358 12,781

As of December 31, 2021, the additions include S/563,000 related to the provision for expected credit losses for trade receivables (S/1,582,000 as of December 31, 2020),
which are presented in the caption “selling and distribution expenses” on the consolidated income statement, see notes 22.

F-36
Notes to the consolidated financial statements (continued)

(e) The aging analysis of trade and other accounts receivable as of December 31, 2021 and 2020, is as follows:

As of December 31, 2021

Past due but not impaired

Neither past due < 30 30-60 61-90 91-120 > 120
Total nor impaired days days days days days
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Expected credit loss rate 5.4% 0.0% 0.9% 1.7% 3.7% - 76.5%
Carrying amount 2021 102,972 65,314 21,233 6,112 3,672 - 6,641
Expected credit loss 5,539 28 190 105 136 - 5,080

As of December 31, 2020

Past due but not impaired

Neither past due < 30 30-60 61-90 91-120 > 120
Total nor impaired days days days days days
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Expected credit loss rate 6.3% 0.2% 10.8% 1.4% 4.2% - 61.2%
Carrying amount 2020 84,662 68,044 1,943 5,665 1,134 - 7,876
Expected credit loss 5,324 167 209 79 48 - 4,821

F-37
Notes to the consolidated financial statements (continued)

8. Inventories

(a) This caption is made up as follows:

2021 2020
S/(000) S/(000)

Goods and finished products 25,304 12,877

Work in progress 135,008 114,246
Raw materials 247,939 157,107
Packages and packing 7,466 3,614
Fuel 3,498 2,896
Spare parts and supplies 199,870 179,354
Inventory in transit 9,149 10,220
628,234 480,314
Less - Provision for inventory obsolescence (b) (23,052) (19,704)
605,182 460,610

(b) Movement in the provision for inventory obsolescence value is set forth below:

2021 2020 2019

S/(000) S/(000) S/(000)

Opening balance 19,704 17,253 14,975

Additions 3,374 3,635 2,498
Recoveries (26) (1,184) (220)
Final balance 23,052 19,704 17,253

9. Financial investment designated at fair value through OCI

(a) Movement in financial investment designated at fair value through OCI is as follow:

2021 2020 2019

S/(000) S/(000) S/(000)

Beginning balance 692 18,224 26,883

Contribution of investment shares 1,779 - -
Fair value change recorded in other comprehensive income (1,995) (17,532) (8,659)
Ending balance 476 692 18,224

(b) As of December 31, 2021 and 2020, corresponds to 2,481,397 and 9,148,373 investment shares of Fossal S.A.A. These shares represent 8.40% and 7.76% of equity of
Fossal S.A.A., respectively.

The main asset held by Fossal S.A.A. correspondeds to its investment in the company Fosfatos del Pacífico S.A., a pre-operational company that has a diatomite extraction
concession and is dedicated to the Fosfatos Project (a project for the exploitation and sale of phosphate rock). The Board of Directors of the company Fosfatos del Pacífico
S.A. held on December 30, 2020, considering the longer time it will take for the renewal of the Environmental Impact Study (EIA) of the project and that the current
international prices of phosphate rock are lower than the sales prices originally estimated at the beginning of the project, agreed to make the accounting provision due to
the total devaluation of the assets related to the Phosphate Project.

The Company has recognized a charge in other comprehensive income for S/1,995,000 related to updating the fair value of the financial investment maintained in Fossal
S.A.A. during 2021 (S/17,532,000 and S/8,659,000 during 2020 and 2019 respectively).

F-38
Notes to the consolidated financial statements (continued)

10. Property, plant and equipment

(a) The composition and movement in this caption as of the date of the consolidated statement of financial position is presented below:

Machinery, Work in
Mine Buildings and equipment and Computer Quarry progress
Mining development other related spare Furniture and Transportation equipment and rehabilitation Capitalized and units
concessions (b) costs (b) Land construction parts accessories units tools costs interests in transit Total
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Cost

As of January 1, 2020 76,135 51,705 251,655 684,338 1,667,042 32,839 123,568 50,951 1,515 64,904 47,449 3,052,101
Additions 19 2,316 - 535 8,298 197 282 1,166 7,775 - 30,644 51,232
Disposals (261) (5) - (307) (7,803) (54) (12,502) (3) - - (144) (21,079)
Transfers, note 11 - (41) 535 5,976 26,608 141 1,761 531 - - (40,218) (4,707)
As of December 31, 2020 75,893 53,975 252,190 690,542 1,694,145 33,123 113,109 52,645 9,290 64,904 37,731 3,077,547

Additions 21 3,435 4,254 (98) 16,160 191 7,523 3,731 (260) 103 53,120 88,180
Disposals - - - (7) (33,176) (22,786) (10,583) (23,105) - - (136) (89,793)
Transfers, note 11 - 592 108 2,648 20,526 178 3,302 1,157 - - (28,575) (64)
As of December 31, 2021 75,914 58,002 256,552 693,085 1,697,655 10,706 113,351 34,428 9,030 65,007 62,140 3,075,870
Accumulated
depreciation
As of January 1, 2020 12,184 10,071 - 121,196 556,147 29,380 83,227 38,812 99 5,978 - 857,094
Additions 72 196 - 18,693 95,325 723 8,357 3,537 1,517 1,521 - 129,941
Disposals - - - (32) (7,282) (54) (10,952) (1) - - - (18,321)
As of December 31, 2020 12,256 10,267 139,857 644,190 30,049 80,632 42,348 1,616 7,499 - 968,714

Additions 72 217 - 18,605 93,581 589 7,350 3,198 766 1,522 - 125,900
Disposals - - - (7) (32,317) (22,767) (9,819) (23,090) - - - (88,000)
As of December 31, 2021 12,328 10,484 - 158,455 705,454 7,871 78,163 22,456 2,382 9,021 - 1,006,614

Impairment (b)
As of December 31, 2020 42,859 24,048 - 13,578 12,424 201 26 454 - - 735 94,325
As of December 31, 2021 42,859 24,048 - 13,578 12,424 201 26 454 - - 735 94,325

Net book value

As of December 31, 2020 20,778 19,660 252,190 537,107 1,037,531 2,873 32,451 9,843 7,674 57,405 36,996 2,014,508
As of December 31, 2021 20,727 23,470 256,552 521,052 979,777 2,634 35,162 11,518 6,648 55,986 61,405 1,974,931

F-39
Notes to the consolidated financial statements (continued)

(b) Mining concessions mainly include net acquisition costs of S/15,488,000 related to coal concessions acquired through a purchase option executed from 2011 to 2013. The
caption also includes some concessions acquired by the Group for exploration activities related to the cement business.

In previous years’ Management recognized a full impairment related to the total net book value of a closed zinc mining unit which included concession costs, development
costs and related facilities and equipment. From this impairment estimate, S/42,859,000 corresponds to concession costs. According to the Management´s expectation the
recovery amount of this zinc mining unit is zero.

(c) The Group has assessed the recoverable amount of its remaining long-term assets and did not find indicators of an impairment for these assets as of December 31, 2021
and 2020.

(d) Work in progress included in property, plant and equipment as of December 31, 2021 and 2020 is mainly related to complementary facilities of the cement plants.

(e) As of December 31, 2021, the Group maintains accounts payable related to the acquisition of property, plant and equipment for S/7,615,000 (S/4,830,000 as of December
31, 2020), see note 14.

F-40
Notes to the consolidated financial statements (continued)

11. Intangibles

(a) The composition and movement of this caption as of the date of the consolidated statement of financial position is presented below:

Exploration cost
Finite life Indefinite life and
IT intangible intangible mining
applications (c) (c) evaluation (b) Total
S/(000) S/(000) S/(000) S/(000) S/(000)
Cost

As of January 1, 2020 25,145 24,543 1,975 48,726 100,389

Additions 4,954 - - 270 5,224
Disposals (1) - - - (1)
Transfers, note 10 4,173 - - 534 4,707

As of December 31, 2020 34,271 24,543 1,975 49,530 110,319

Additions 7,152 - - 1,739 8,891

Disposals - - - (54) (54)
Transfers and reclassifications, note 10 - - - 64 64

As of December 31, 2021 41,423 24,543 1,975 51,279 119,220

Accumulated amortization
As of January 1, 2020 9,176 3,256 71 7,051 19,554
Additions 4,168 2,454 - 1,034 7,656

As of December 31, 2020 13,344 5,710 71 8,085 27,210

Additions 4,681 2,455 - 965 8,101
Disposals - - - (54) (54)

As of December 31, 2021 18,025 8,165 71 8,996 35,257

Impairment (b)
Al of January 1, 2020 - - - 33,469 33,469

As of December 31, 2020 - - - 33,469 33,469

As of December 31, 2021 33,469 33,469

Net Carrying Value

As of December 31, 2020 20,927 18,833 1,904 7,976 49,640

As of December 31, 2021 23,398 16,378 1,904 8,814 50,494

(b) As of December 31, 2021 and 2020, the exploration and evaluation assets include mainly capital expenditures related to the coal project and to other minor projects related
to the cement business.

(c) During the year 2018, the Group acquired brand and other intangibles for an amount of S/25,152,000 from a third party, which were recorded using the acquisition method
reflecting their fair values at the acquisition date.

(d) As of December 31, 2021 and 2020, the Group evaluated the conditions of use of the projects related to the exploration and mining evaluation costs and its other
intangibles, not finding any indicators of impairment in said assets

F-41
Notes to the consolidated financial statements (continued)

12. Goodwill

As of December 31, 2021 and 2020, the amount of goodwill amounts to S/4,459,000, respectively, from the acquisition of assets made by the subsidiary Distribuidora Norte
Pacasmayo S.R.L.

The Group has assessed the recoverable amount of goodwill held using the value in use method and cash flow projections approved by management for a medium-term projection
period, cash flows beyond this period have been extrapolated using a rate consistent with long-term growth with the Peruvian economy and has determined that there is no
impairment at December 31, 2021 and 2020.

13. Leases

The Group maintains lease contracts with third parties, mainly a contract for the lease of trucks for a term of 5 years. The annual incremental interest rate used for the initial
recognition of the right-of-use asset and the lease liability ranges between 5.2 and 6.2 percent.

The Group also leases certain minor equipment for less than 12 months, the Group has decided to apply the recognition exemption for short term leases (less than 12 months) and
for leases of low value assets. The expense for this type of lease amounted to S/1,419,000 for the twelve-month period ended December 31, 2021 (2020: S/1,869,000) and was
recognized in the “Administrative Expenses” caption of the interim condensed consolidated statement of profit or loss.

The movement of the right of use assets recognized by the Group is shown below:

Transportation
units Other Total
S/(000) S/(000) S/(000)
Cost -
Balance as of January 1, 2020 - 109 109
Additions 7,504 - 7,504
Sales and/or retirement - (71) (71)

Balance as of December 31, 2020 7,504 38 7,542

Additions 217 - 217
Sales and/or retirement - (3) (3)

Balance as of December 31, 2021 7,721 35 7,756

Accumulated depreciation -
Balance as of January 1, 2020 - 63 63
Additions 1,501 33 1,534
Sales and/or retirement - (61) (61)

Balance as of December 31, 2020 1,501 35 1,536

Additions 1,552 - 1,552

Balance as of December 31, 2021 3,053 35 3,088
Net book value
As of December 31, 2020 6,003 3 6,006

As of December 31, 2021 4,668 - 4,668

F-42
Notes to the consolidated financial statements (continued)

The movement of the lease liabilities recognized by the Group is shown below:

2021 2020
S/(000) S/(000)

Balance as of January 1 6,633 57

Additions 217 7,504
Financial interest expenses 383 409
Dues payments (2,419) (1,669)
Sales and disposals - (19)
Others 1,015 351

Balance as of December 31 5,829 6,633

Maturity
Current portion 1,856 1,531
Non-current portion 3,973 5,102

Balance as of December 31 5,829 6,633

The future cash disbursements in relation to lease liabilities have been disclosed in note 30.

14. Trade and other payables

This caption is made up as follows:

2021 2020
S/(000) S/(000)

Trade payables 111,336 83,754

Interest payable 29,871 26,322
Remuneration payable 20,835 18,102
Advances from customers 14,668 14,880
Dividends payable, note 18(g) 9,550 7,686
Taxes and contributions 8,638 10,478
Accounts payable related to the acquisition of property, plant and equipment, note 10(e) 7,615 4,830
Hedge finance cost payable 6,213 6,381
Board of Directors’ fees 5,615 5,061
Guarantee deposits 4,645 4,289
Account payable to the principal and affiliates, note 27 143 1,559
Other accounts payable 8,425 4,534
227,554 187,876

Trade accounts payable result from the purchases of material, services and supplies for the Group’s operations, and mainly correspond to invoices payable to domestic suppliers.
Trade payables are non-interest bearing and are normally settled on 60 to 120 days term.

F-43
Notes to the consolidated financial statements (continued)

Other payables are non-interest bearing and have an average term of 3 months.

Interest payable is normally settled semiannually throughout the financial year.

15. Provisions

This caption is made up as follows:

Quarry
Workers’ Long-term Rehabilitation Provision of legal
profit-sharing incentive plan provision contingencies Total
S/(000) S/(000) S/(000) S/(000) S/(000)

At January 1, 2020 13,903 8,514 1,829 1,915 26,161

Additions, note 23 9,513 5,759 7,775 1,175 24,222
Exchange difference - - 728 - 728
Unwinding of discounts, note 26 - 343 84 - 427
Payments and advances (14,036) (2,526) (255) - (16,817)

At December 31, 2020 9,380 12,090 10,161 3,090 34,721

Current portion 9,380 - - - 9,380

Non-current portion - 12,090 10,161 3,090 25,341
9,380 12,090 10,161 3,090 34,721

At January 1, 2021 9,380 12,090 10,161 3,090 34,721

Additions, note 23 25,165 9,763 - - 34,928
Exchange difference - - 1,060 - 1,060
Unwinding of discounts, note 26 - 660 75 - 735
Change in estimate - - (260) - (260)
Payments and advances (10,276) - - - (10,276)

At December 31, 2021 24,269 22,513 11,036 3,090 60,908

Current portion 24,269 - - - 24,269

Non-current portion - 22,513 11,036 3,090 36,639
24,269 22,513 11,036 3,090 60,908

Workers’ profit sharing -

In accordance with Peruvian legislation, the Group is obliged to pay between 8% and 10% of annual taxable income. Distributions to employees under the plan are based 50% on
the number of days that each employee worked during the preceding year and 50% on proportionate annual salary levels.

F-44
Notes to the consolidated financial statements (continued)

Long-term incentive plan -

In 2011, the Group implemented a compensation plan for its key management. This long-term benefit is payable in cash, based on the salary of each officer and depends on the
years of service of each officer in the Group. According to the latest plan update, the executive would receive the equivalent of an annual salary for each year of service beginning
to accrue from 2019. This benefit accrues and accumulates for each officer and is payable in two moments: the first payment will be made on the sixth year since the creation of
this bonus plan, and the last payment at the end of the ninth year from the creation of the plan. If the executive decides to voluntarily leave the Group before a scheduled
distribution, they will not receive this compensation. The Group used the Projected Unit Credit Method to determine the present value of this deferred obligation and the related
current deferred cost, considering the expected increases in salary base and the corresponding current government bond discount rate (risk-free rate).

Quarry Rehabilitation provision -

As of December 31, 2021 and 2020, it corresponds to the provision for the future costs of rehabilitating the quarries exploited in Company’s operations. The provision has been
created based on studies made by internal specialists. Management believes that the assumptions used, based on current economic environment, are a reasonable basis upon which
to estimate the future liability. These estimates are reviewed regularly to consider any material change to the assumptions. However, actual quarry rehabilitation costs will
ultimately depend upon future market prices for the necessary decommissioning works required to reflect future economic conditions.

Future cash flows have been estimated based on financial budgets approved by Management. The range of the risk-free discount rate in dollars used in the calculation of the
provision as of December 31, 2021 was from 0.12 to 1.94 and the risk-free discount rate in dollars used in the calculation of the provision as of December 31 of 2020 was from
0.06 to 1.65

Management expects to incur a significant part of this obligation in the medium and long-term. The Group estimates that this liability is sufficient according to the current
environmental protection laws approved by the Ministry of Energy and Mines.

F-45
Notes to the consolidated financial statements (continued)

16. Financial obligations

(a) This caption is made up as follows:

Nominal
interest
Currency rate Maturity 2021 2020
% S/(000) S/(000)

Short-term promissory notes (b)

Banco de Crédito del Perú US$ 1.80% July 8,2022 71,964
Banco de Crédito del Perú US$ 2.20% July 8,2021 - 65,232
Banco de Crédito del Perú S/ 2.62% January 10, 2022 79,500 79,500
Banco de Crédito del Perú S/ 2.62% January 10, 2022 79,500 79,500
Banco de Crédito del Perú S/ 1.55% December 23, 2022 110,000 -
Banco de Crédito del Perú S/ 1.55% December 23, 2022 110,000 -
450,964 224,232

Senior Notes (c)

Principal, net of issuance costs US$ 4.50% February 8, 2023 525,420 475,491
Principal, net of issuance costs S/ 6.69% February 1, 2029 259,563 259,502
Principal, net of issuance costs S/ 6.84% February 1, 2034 309,408 309,359
1,094,391 1,044,352
Maturity
Current portion 450,964 65,232
Non-current portion 1,094,391 1,203,352
1,545,355 1,268,584

(b) Short-term promissory notes -

As of December 31, 2021 and 2020, the Company maintains two loans of S/79,500,000 each with maturity in January 2022 and with an annual effective interest rate of
2.62 percent, which have been paid with the corporate loan mentioned in section (d). Also, as of December 31, 2021, the Company maintains a loan of US$18,000,000 with
maturity in July 2022 and at an effective annual interest rate of 1.80 percent.

On July 1, 2021, the Company acquired two medium-term notes with Banco de Credito del Peru S.A. for S/110,000,000 each, with a maturity date of December 23, 2022
and an effective annual interest rate of 1.55 percent.

F-46
Notes to the consolidated financial statements (continued)

(c) Senior Notes in US dollars -

The General Shareholder’s Meeting held on January 7, 2013, approved that the Company complete a financing transaction. In connection with this, the Board of Directors’
Meeting held on January 24, 2013, agreed to issue Senior Notes through a private offering under Rule 144A and Regulation S of the U.S. Securities Act of 1933. Also it
was agreed to list these securities on the Ireland Stock Exchange. Consequently, on February 1, 2013, the Company issued Senior Bonds with a face value of
US$300,000,000, with a nominal annual interest rate of 4.50%, and maturity in 2023, obtaining total net proceeds of US$293,646,000 (S/762,067,000). The Company has
used part of the net proceeds from the offering to prepay certain of its existing debt and the difference has been used in capital expenditures in connection with its cement
business. The Senior Notes are guaranteed by the following Company’s subsidiaries: Cementos Selva S.A., Distribuidora Norte Pacasmayo S.R.L., Empresa de
Transmisión Guadalupe S.A.C., Dinoselva Iquitos S.A.C and Calizas del Norte S.A.C. (on liquidation).

The Board of Directors’ Meeting held on November 26, 2018, approved the repurchase of the senior notes in US dollars. As a result, the Company acquired senior notes
for an amount of US$168,388,000. Consequently, the senior notes balance in US dollars was US$131,162,000, in periods 2018, 2019, 2020 and 2021. To finance this
acquisition, the Company obtained medium-term promissory notes from Banco de Crédito del Perú (bridge loans) for a total of S/580,769,000, which were canceled with
the issue of senior notes in Soles in January 2019, as explained bellow.

On the other hand, as a consequence of the purchase of senior notes issued in United States dollars, the Company’s Management considers that it was not necessary to
continue with all of the derivative financial instruments to hedge those liabilities. For this reason, during December 2018, the Company settled US$150,000,000 of a total
of US$300,000,000. The loss obtained from this settlement amounted to S/34,887,000, which was presented in cumulative net loss on settlement of derivative financial
instruments caption from consolidated statement of profit and loss for the year ended December 31, 2018. As of December 31, 2021 and 2020, the Company has hedged
cash flow contracts to reduce the foreign currency risk of corporate bonds, which are in US dollars, see note 30.

Senior Notes in Soles

The General Shareholders’ Meeting held on January 8, 2019, approved the issuance of senior notes in soles in the local market up to the maximum amount of
S/1,000,000,000 through the Second Corporate Bonds Program of Pacasmayo, whose purpose was to settle the mid-term loans described in previous paragraph. On
January 31, 2019, senior notes were issued for: i) S/260,000,000 at a rate of 6.688 percent per year and maturity of 10 years and; ii) S/310,000,000 at a rate of 6.844
percent per year and maturity of 15 years.

Senior Notes in soles issued in 2019 are surety guaranteed by the following Company’s subsidiaries: Cementos Selva S.A., Distribuidora Norte Pacasmayo S.R.L.,
Empresa de Transmisión Guadalupe S.A.C. and Dinoselva Iquitos S.A.C.

F-47
Notes to the consolidated financial statements (continued)

Financial covenants

The financial covenants related to the Senior Notes issued in US dollars and soles state that if the Company and its guarantor subsidiaries issue debt or equity instruments,
merges with another company or dispose or rents significant assets, the senior notes will activate the following covenants, calculated based on the Company and Guarantee
Subsidiaries annual consolidated financial statements:

- The fixed charge covenant ratio would be at least 2.5 to 1.

- The consolidated debt-to-EBITDA ratio would be no greater than 3.5 to 1.

As of December 31, 2021 and 2020, senior notes generated interest that has been recognized in the consolidated statement of profit or loss for S/63,333,000 and
S/60,857,000 respectively, see note 26.

(d) Medium-term Corporate Loan under “Club deal” modality:

On August 6, 2021, the Company established the conditions of a medium-term corporate loan under “Club Deal” modality with Banco de Crédito del Perú S.A. and
Scotiabank Perú S.A.A. The loan amounts to S/860,000,000 that will allow the payment of all the financial obligations that the Company maintains with maturity until
February 2023 and will be disbursed based on the maturity of each of these obligations. The first disbursement amounts to S/159,000,000, was made in January 2022 and
was used to pay the loan mentioned in section (b). The loan conditions include a grace / availability period of 18 months from August 6 and a payment term of 7 years
from the last disbursement, which is estimated for February 2023. Since that date, the loan will be paid in 22 equal quarterly installments and has an annual interest rate of
5.82 percent.

As part of the loan conditions, the Company would assume the following obligations:

I. Comply with the following financial safeguards:

a. Debt Ratio (Financial Debt / EBITDA) <= 3.50x

b. Debt Service Coverage Ratio (FCSD / SD)> = 1.15x

c. Debt Service Coverage Ratio (EBITDA / SD) = 1.50x

These financial safeguards will be calculated and verified at the end of each calendar quarter, considering the information of consolidated financial statements of the
Company for the last 12 months, prepared in accordance with International Financial Reporting Standards - IFRS.

II. It maintains the following main obligations to do:

a. Subordinate any obligation the Company had or may have to this loan.

b. Maintain the loan with a status equal to other senior financing of the Company.

c. Keep assets in good condition and properly insured.

d. Maintain all licenses, authorizations, concessions, permits, titles and rights required by government authorities.

III. It maintains the following obligations not to do:

a. Refrain from paying dividends, reducing capital stock or any other distribution to its shareholders if this event make the Company not comply with the
obligations assumed.
b. That the Company and its subsidiaries participate in processes of liquidation, transformation, corporate reorganization, acquisition of companies, merger or spin-
off.

c. Transfer, sell, alienate, donate or give in usufruct, lease, give in fiduciary domain, encumber their assets, income flows and / or collection rights.

d. Grant financing, personal or real guarantees in favor of third parties.

F-48
Notes to the consolidated financial statements (continued)

17. Deferred income tax assets and liabilities

The following is the composition of the caption according to the items that originated it:

Additions to
As of Effect on quarry As of Effect on As of
January 1, profit or Effect on Additions rehabilitation December 31, profit or Effect on December 31,
2020 loss OCI Leases provision 2020 loss OCI 2021
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)
Movement of
deferred income
tax assets:
Deferred income
tax assets
Provision of
discounts and
bonuses to
customers 2,032 425 - - - 2,457 (230) - 2,227
Provision for
vacations 1,729 (159) - - - 1,570 335 - 1,905
Effect of tax-loss
carry forward 2,614 6,656 - - - 9,270 (7,559) - 1,711
Allowance for
expected credit
losses for trade
receivables 832 625 - - - 1,457 76 - 1,533
Allowance for
expected credit
losses for other
receivables 974 - - - - 974 - - 974
Lease liabilities 14 (131) - 1,009 - 892 (87) 14 819
Legal claim
contingency - 461 - - - 461 - - 461
Estimate for
devaluation of
spare parts and
supplies - 431 - - - 431 1 - 432
Effect of
differences
between book
and tax bases of
fixed assets and
in the
depreciation
rates used for
book purposes 198 29 - - - 227 73 - 300
Effect of
differences
between book
and tax bases of
inventories 922 (867) - - - 55 - - 55
Other 375 (312) - - - 63 555 (14) 604
9,690 7,158 - 1,009 - 17,857 (6,836) - 11,021
Deferred income
tax liabilities
Effect of
differences
between book
and tax bases of
fixed assets and
in the
depreciation
rates used for
book purposes (2,259) 829 - - - (1,430) 486 - (944)
Right of use
assets (17) 217 - (1,009) - (809) 178 (17) (648)
Other 5 (5) - - - - - 17 17
(2,271) 1,041 - (1,009) - (2,239) 664 - (1,575)
Total deferred
income tax
assets 7,419 8,199 - - - 15,618 (6,172) - 9,446
Movement of
deferred
income tax
liabilities:
Deferred income
tax assets
Impairment on
brine project
assets
Salmueras 17,087 476 - - - 17,563 255 - 17,818
Impairment of
mining assets 7,123 (207) - - - 6,916 (212) - 6,704
Long-term
incentive plan 2,511 1,055 - - - 3,566 3,075 - 6,641
Financial
instruments
designated at
fair value
through OCI 879 - 5,172 - - 6,051 - 589 6,640
Provision for 4,963 418 - - - 5,381 327 - 5,708
spare parts and
supplies
obsolescence
Provision for
vacations 3,071 187 - - - 3,258 423 - 3,681
Quarry
rehabilitation
provision 539 (52) - - 2,294 2,781 (55) - 2,726
Legal claim
contingency - (140) - 1,205 - 1,065 (135) - 930
Allowance for
expected credit
losses for trade
receivables 101 - - - - 101 534 - 635
Lease liabilities - 450 - - - 450 - - 450
Other 349 (74) - - - 275 53 - 328
36,623 2,113 5,172 1,205 2,294 47,407 4,265 589 52,261
Deferred income
tax liabilities
Effect of
differences
between book
and tax bases of
fixed assets and
in the
depreciation
rates (177,448) (12,802) - - (2,294) (192,544) 2,366 - (190,178)
Net gain on cash
flow hedge (3,219) (220) 487 - - (2,952) 1,684 (6,146) (7,414)
Effect of costs of
issuance of
senior notes (1,010) 240 - - - (770) (1,915) - (2,685)
Right of use
assets - 242 - (1,205) - (963) 217 - (746)
Other (45) 3 - - - (42) - - (42)
(181,722) (12,537) 487 (1,205) (2,294) (197,271) 2,352 (6,146) (201,065)
Total deferred
income tax
liabilities, net (145,099) (10,424) 5,659 - - (149,864) 6,617 (5,557) (148,804)
(2,225) 5,659 445 (5,557)

F-49
Notes to the consolidated financial statements (continued)

The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities, and the tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority.

A reconciliation between tax expenses and the product of the accounting profit multiplied by Peruvian tax rate for the years 2021, 2020 and 2019 is as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Accounting profit before income tax 224,110 85,898 194,353

At statutory income tax rate of 29.5% (66,112) (25,340) (57,334)

Permanent differences
Non-deductible expenses, net (4,070) (1,596) (4,181)
Effect of tax-loss carry forward non-recognized (758) (1,068) (791)
At the effective income tax rate of 32% in 2021 (2020: 33% and 2019: 32%) (70,940) (28,004) (62,306)

The income tax expenses shown for the years ended December 31, 2021, 2020 and 2019 are:

2021 2020 2019

S/(000) S/(000) S/(000)

Consolidated statement of profit or loss

Current (71,385) (25,779) (41,709)
Deferred 445 (2,225) (20,597)
(70,940) (28,004) (62,306)

The income tax recorded directly to other comprehensive income represents a loss of S/5,557,000 during the year 2021, a gain of S/5,659,000 and S/3,308,000 during the years
2020 and 2019, respectively.

The composition of the deferred income tax related to the items recognized in the consolidated statement of other comprehensive income and equity during the year, as follow:

2021 2020 2019

S/(000) S/(000) S/(000)

Tax effect on unrealized gain on available-for-sale financial asset 589 5,172 2,554
Tax effect on unrealized gain (loss) on hedging derivative financial asset (6,146) 487 754
Total deferred income tax in OCI (5,557) 5,659 3,308

As of December 31, 2021, 2020 and 2019, it is not necessary to recognize deferred tax liability for taxes that would be payable on the unremitted earnings of the Group’s
subsidiaries. The Group has determined that the timing differences will be reversed by means of dividends to be received in the future that, according to the tax rules in effect in
Peru, are not subject to income tax.

F-50
Notes to the consolidated financial statements (continued)

As of December 31, 2021, certain subsidiaries of the Group have tax loss carryforwards of S/24,085,000 (2020: S/22,230,000). These tax loss carryforwards do not expire, are
related to subsidiaries that have a history of losses for some time and cannot be used to offset future taxable profits of other Group subsidiaries. No deferred assets have been
recognized in relation to these tax loss carryforwards, since there are no possibilities of tax planning opportunities or other evidence of recovery in the near future.

For information purposes, the temporary difference associated with investments in subsidiaries, would generate an aggregate deferred tax liability amounting to S/83,079,000
(2020: S/80,357,000), which should not be recognized in the consolidated financial statements as it is not expected to reverse in the foreseeable future and the Company is in
control of such reversal.

18. Equity

(a) Capital stock -

As of December 31, 2021 and 2020, share capital is represented by 423,868,449 authorized common shares subscribed and fully paid, with a nominal value of one Sol per
share. As from December 31, 2021 from the total outstanding common shares; 34,252,841 are listed in the New York Stock Exchange and 389,615,608 in the Lima Stock
Exchange. As of December 31, 2020, 31,728,741 common shares were listed in the New York Stock Exchange and 392,139,708 in the Lima Stock Exchange.

(b) Investment shares -

Investment shares do not have voting rights or participate in shareholder’s meetings or the appointment of directors. Investment shares confer upon the holders thereof the
right to participate in dividends distributed according to their nominal value, in the same manner as common shares. Investment shares also confer the holders thereof the
right to:

(i) maintain the current proportion of the investment shares in the case of capital increase by new contributions;

(ii) increase the number of investment shares upon capitalization of retained earnings, revaluation surplus or other reserves that do not represent cash contributions;

(iii) participate in the distribution of the assets resulting from liquidation of the Company in the same manner as common shares; and,

(iv) redeem the investment shares in case of a merger and/or change of business activity of the Company.

As of December 31, 2021 and 2020, the Company has 40,278,894 investment shares subscribed and fully paid, with a nominal value of one sol per share.

F-51
Notes to the consolidated financial statements (continued)

(c) Treasury shares -

As of December 31, 2021 and 2020, the Company maintains 36,040,497 investment shares held in treasury amounting to S/121,258,000.

(d) Additional paid-in capital -

As of December 31, 2021 and 2020, the additional capital amounts to S/432,779,000 and arises mainly as a result of the excess of total proceeds obtained versus par value
in the issuance of 111,484,000 common shares and 928,000 investment shares corresponding to a public offering of American Depositary Shares (ADS) registered with the
New York Stock Exchange and Lima Stock Exchange on 2012.

(e) Legal reserve -

Provisions of the General Corporation Law require that a minimum of 10 per cent of the distributable earnings for each period, after deducting the income tax, be
transferred to a legal reserve until such is equal to 20 per cent of the capital. This legal reserve can offset losses or can be capitalized, and in both cases, there is the
obligation to replenish it.

(f) Other accumulated comprehensive results -

This reserve records fair value changes on available-for-sale financial assets and the unrealized results on cash flow hedge.

(g) Distributions made and proposed –

2021 2020 2019

Approval date by Board of Directors April 29, 2021 November 16, 2020 November 18, 2019
Declared dividends per share to be paid in cash S/. 0.790000 0.23000 0.36000
Declared dividends S/(000): 338,204 98,465 154,119

As of December 31, 2021 and 2020, dividends payable amount to S/9,550,000 and S/7,686,000, respectively, see note 14. During year 2019, in order to comply with
Peruvian law requirements S/280,000, respectively corresponding to dividends payable aged greater than ten years were transferred from “Dividends payable” caption to
“Legal reserve” caption in the consolidated statement of changes in equity.

F-52
Notes to the consolidated financial statements (continued)

19. Sales of goods

This caption is made up as follows:

As of December 31, 2021

Concrete and Construction
Cement mortar Precast Quicklime supplies Other Total
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Segments
Sale of cement, concrete,
mortar and precast 1,534,867 213,565 36,055 - - - 1,784,487
Sale of construction supplies - - - - 113,905 - 113,905
Sale of quicklime - - - 39,141 - - 39,141
Sale of other - - - - - 234 234

1,534,867 213,565 36,055 39,141 113,905 234 1,937,767

Moment of the revenue

recognition
Goods transferred at a point
in time 1,534,867 213,565 36,055 39,141 113,905 234 1,937,767

As of December 31, 2020

Concrete and Construction
Cement mortar Precast Quicklime supplies Other Total
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Segments
Sale of cement, concrete,
mortar and precast 1,023,907 126,135 35,144 - - - 1,185,186
Sale of construction supplies - - - - 78,192 - 78,192
Sale of quicklime - - - 32,473 - - 32,473
Sale of other - - - - - 483 483
1,023,907 126,135 35,144 32,473 78,192 483 1,296,334
Moment of the revenue
recognition
Goods transferred at a point
in time 1,023,907 126,135 35,144 32,473 78,192 483 1,296,334

F-53
Notes to the consolidated financial statements (continued)

As of December 31, 2019

Concrete and Construction
Cement mortar Precast Quicklime supplies Other Total
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

Segments
Sale of cement, concrete,
mortar and precast 1,065,857 200,417 25,909 - - - 1,292,183
Sale of construction supplies - - - - 64,076 - 64,076
Sale of quicklime - - - 36,109 - - 36,109
Sale of other - - - - - 333 333
1,065,857 200,417 25,909 36,109 64,076 333 1,392,701
Moment of the revenue
recognition
Goods transferred at a point
in time 1,065,857 200,417 25,909 36,109 64,076 333 1,392,701

For all segments, performance obligations are met at the time of delivery of the goods and the terms of payment are usually between 30 and 90 days from the date of dispatch.

F-54
Notes to the consolidated financial statements (continued)

20. Cost of sales

This caption is made up as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Beginning balance of goods and finished products, note 8(a) 12,877 22,133 16,832
Beginning balance of work in progress, note 8(a) 114,246 166,999 133,972
Consumption of miscellaneous supplies 566,781 295,688 284,298
Maintenance and third-party services 242,412 147,282 211,251
Shipping costs 196,064 113,054 123,989
Depreciation and amortization 118,998 122,541 115,245
Personnel expenses, note 23(b) 113,634 89,805 101,185
Costs of packaging 71,580 45,032 44,416
Other manufacturing expenses 102,056 45,637 63,750
Ending balance of goods and finished products, note 8(a) (25,304) (12,877) (22,133)
Ending balance of work in progress, note 8(a) (135,008) (114,246) (166,999)
1,378,336 921,048 905,806

21. Administrative expenses

This caption is made up as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Personnel expenses, note 23(b) 96,891 76,291 84,359

Third-party services 59,896 48,713 53,407
Depreciation and amortization 16,569 16,626 14,573
Donations 9,067 9,188 8,796
Board of Directors compensation 6,397 5,992 6,696
Taxes 5,563 5,262 4,980
Consumption of supplies 1,686 1,297 1,671
196,069 163,369 174,482

F-55
Notes to the consolidated financial statements (continued)

22. Selling and distribution expenses

This caption is made up as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Personnel expenses, note 23(b) 33,867 26,283 26,818

Third-party services 9,733 7,326 8,636
Advertising and promotion 5,637 3,285 6,981
Allowance for expected credit losses, note 7(d) 563 1,582 1,452
Other 1,720 1,677 646
51,520 40,153 44,533

23. Employee benefits expenses

(a) Employee benefits expenses are made up as follow:

2021 2020 2019

S/(000) S/(000) S/(000)

Wages and salaries 138,754 115,630 128,809

Social contributions 28,853 26,085 25,468
Workers ‘profit sharing, note 15 25,165 9,513 15,169
Legal bonuses 19,629 17,413 16,837
Vacations 18,040 16,301 15,461
Long-term compensation, note 15 9,763 5,759 6,523
Cessation payments 2,203 858 2,044
Training 1,422 476 860
Other 563 344 1,191
244,392 192,379 212,362

(b) Employee benefits expenses are allocated as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Cost of sales, note 20 113,634 89,805 101,185

Administrative expenses, note 21 96,891 76,291 84,359
Selling and distribution expenses, note 22 33,867 26,283 26,818
244,392 192,379 212,362

F-56
Notes to the consolidated financial statements (continued)

24. Other operating income (expense), net

(a) This caption is made up as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Rentals to third parties 2,328 649 -

Net gain (loss) on disposal of property, plant and equipment and intangible 1,775 2,591 (1,846)
Income from land rental and office lease, note 27 1,639 1,859 722
Recovery of expenses 491 1,166 525
Income from management and administrative services provided to related parties, note 27 305 834 1,744
Write-off for disasters - - (357)
Expenses to counteract the COVID-19 effect, note 1.1 - (2,642) -
Other, net (130) (111) 1,857
6,408 4,346 2,645

25. Finance income

This caption is made up as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Tax interest 1,015 - -

Interest on accounts receivable 898 204 715
Interest on term deposits 834 2,243 1,014
Other finance income 144 529 847
2,891 2,976 2,576

F-57
Notes to the consolidated financial statements (continued)

26. Finance costs

This caption is made up as follows:

2021 2020 2019

S/(000) S/(000) S/(000)

Interest on senior notes, note 16 (c) 63,333 60,857 56,081

Finance cost on cross currency swaps 15,046 16,144 14,958
Interest on promissory notes 7,326 8,298 5,537
Counterparty credit risk in cross currency swaps 848 542 -
Expenses for the purchase and amortization of issuance costs of senior notes 815 816 807
Interest on lease liabilities 383 409 -
Interest for bank overdraft - 802 -
Commission for prepayment of loans - 325 -
Other 479 74 145

Total interest expense 88,230 88,267 77,528

Unwinding of discount of provisions, note 15 735 427 458

Total finance costs 88,965 88,694 77,986

F-58
Notes to the consolidated financial statements (continued)

27. Related party disclosure

Transactions with related entities -

During 2021, 2020 and 2019, the Company carried out the following transactions with its parent company Inversiones ASPI S.A. and its affiliates:

2021 2020 2019

S/(000) S/(000) S/(000)
Income
Inversiones ASPI S.A. (ASPI)
Income from office lease 20 17 12
Fees for management and administrative services 98 88 544
Compañía Minera Ares S.A.C. (Ares)
Income from land lease, note 29 1,230 1,303 344
Income from office lease 332 478 323
Fossal S.A.A. (Fossal)
Income from office lease 18 19 15
Fees for management and administrative services 52 48 40
Fosfatos del Pacífico S.A. (Fospac)
Income from office lease 19 24 28
Fees for management and administrative services 155 698 1,160
Asociación Sumac Tarpuy
Income from office lease 20 18 -
Expense
Security services provided by Compañía Minera Ares 2,836 1,912 1,989

Loans
Loans to Fossal S.A.A. (14,252) - -
Loans to Fosfatos del Pacífico S.A. (2,869) - -
Loan collection from Fossal S.A.A. 14,252 - -
Loan collection from Fosfatos del Pacífico S.A. 2,869 - -

As a result of these transactions, the Company had the following rights and obligations as of December 31, 2021 and 2020:

2021 2020
Accounts Accounts Accounts Accounts
receivable payable receivable payable
S/(000) S/(000) S/(000) S/(000)

Fosfatos del Pacífico S.A. 1,039 37 1,449 -

Compañía Minera Ares S.A.C. 199 - 678 1,348
Fossal S.A. 12 - - -
Inversiones ASPI S.A. - 105 - 211
Other 64 1 85 -
1,314 143 2,212 1,559

F-59
Notes to the consolidated financial statements (continued)

Terms and conditions of transactions with related parties -

Outstanding balances with related parties at the year-end are unsecured and interest free and settlement occurs in cash. For the years ended as of December 31, 2021, 2020 and
2019, the Group has not recorded allowance for expected credit losses relating to amounts owed by related parties. This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.

Compensation of key management personnel of the Group –

The compensation paid to key management personnel includes expenses for profit-sharing, compensation and other concepts for members of the Board of Directors and the key
management. As of December 31, 2021, the total short-term compensation amounted to S/22,678,000 (2020: S/21,859,000 and 2019: S/23,692,000) and the total long-term
compensation amounted to S/9,763,000 (2020: S/5,759,000 and 2019: S/6,523,000), and there were no post-employment or contract termination benefits or share-payments.

28. Earnings per share (EPS)

Basic and diluted earnings per share amounts are calculated by dividing the profit for the year by the weighted average number of common shares and investment shares
outstanding during the year.

The calculation of basic and diluted earnings per share is shown below:

2021 2020 2019

S/(000) S/(000) S/(000)
Numerator
Net profit attributable to ordinary equity holders of the Parent 153,170 57,894 132,047
Denominator
Weighted average number of common and investment shares (thousands of shares) 428,107 428,107 428,107

Basic and diluted profit for common and investment shares 0.36 0.14 0.31

The Group has no dilutive potential ordinary shares as of December 31, 2021, 2020 and 2019.

There have been no other transactions involving common shares or investment shares between the reporting date and the date of the authorization of these consolidated financial
statements.

F-60
Notes to the consolidated financial statements (continued)

29. Commitments and contingencies

Operating lease commitments – Group as lessor

As of December 31, 2021, 2020 and 2019, the Group, as lessor, has a land lease with Compañía Minera Ares S.A.C. a related party of Inversiones ASPI S.A. This lease is
annually renewable, and provided an annual rent of S/1,230,000, S/1,303,000 and S/344,000, respectively; see note 27.

Capital commitments

As of 31 December 2021 and 2020, the Group had no significant capital commitments.

Usufruct Concessions

In December 2013, the Company signed an agreement with a third party, related to the use of the Virrilá concession, to carry out other non-metallic mining activities related to
cement production. This agreement has a term of maturity of 30 years, with fixed annual payments of US$600,000 for the first three years and variables to the rest of the contract.
The related expense as of December 31, 2021, 2020 and 2019 amounted to S/7,280,000, S/5,918,000 and S/7,039,000 respectively, and was recognized as part of the cost of
inventory production. As part of this agreement, the Company is required to pay an equivalent amount to S/ 4.5 each for each metric ton of calcareous extracted that is indexed by
inflation after the first year of exploitation; the annual royalty may not be less than the equivalent to 850,000 metric tons since the beginning of the fourth year of production.

The Company signed with two third parties in October 2007, an agreement related to usufruct of the Bayovar 4 concession for an indefinite period to extract seashells and other
minerals. As consequence, the Group made payments amounting to US$250,000 for each third party for the first five years and variable payments for the rest of the contract. The
related expense as of December 31, 2021 and 2020 amounted to S/1,687,000 and S/1,547,000, respectively, and were recognized as part of the cost of inventory production. As
part of this agreement, the Company is required to pay an equivalent amount to US$5.1 to each third party for every metric ton of calcareous extracted, with the minimum
production level for the calculation of 20,000 metric tons every six months since the beginning of the sixth year of production.

Mining royalty

According with the Royalty Mining Law in force since October 1, 2011, the royalty for the exploitation of metallic and nonmetallic resources is payable on a quarterly basis in an
amount equal to the greater of: (i) an amount determined in accordance with a statutory scale of rates based on operating profit margin that is applied to the quarterly operating
profit, adjusted by certain items, and (ii) 1% of net sales, in each case during the applicable quarter. These amounts are estimated based on the unconsolidated financial statements
of Cementos Pacasmayo S.A.A. and the subsidiaries affected by this mining royalty, prepared in accordance with IFRS. Mining royalty payments will be deductible for income
tax purposes in the fiscal year in which such payments are made.

Mining royalty expense paid to the Peruvian Government for 2021, 2020 and 2019 amounted to S/990,000, S/555,000 and S/1,012,000 and, respectively, and is recognized as part
of the cost of inventory production.

F-61
Notes to the consolidated financial statements (continued)

Tax situation

The Company is subject to Peruvian tax law. As of December 31, 2021, 2020 and 2019, the income tax rate is 29.5 percent of the taxable profit after deducting employee
participation, which is calculated at a rate of 8 to 10 percent of the taxable income.

For purposes of determining income tax, transfer pricing transactions with related companies and companies resident in territories with low or no taxation, must be supported with
documentation and information on the valuation methods used and the criteria considered for determination. Based on the operations of the Group, Management and its legal
advisors believe that as a result of the application of these standards will not result in significant contingencies for the Group as of December 31, 2021 and 2020.

The tax authority has the power to review and, if applicable, correct the income tax calculated by each company in the four years after the year of filing the tax return.

It should be noted that of January 1, 2019, a series of tax benefits for Loreto region was eliminated, eliminating the tax refund of the Value Added Tax and the exemption of the
Value Added Tax for the importation of goods that are destined for consumption in the Amazon.

The statements of income tax and Value added tax corresponding to the years indicated in the attached table are subject to review by the tax authorities:

Years open to review by Tax Authority

Entity Income tax Value-added tax

Cementos Pacasmayo S.A.A. 2017-2021 Dec. 2017-2021

Cementos Selva S.A. 2017-2021 Dec. 2017-2021
Distribuidora Norte Pacasmayo S.R.L. 2017-2021 Dec. 2017-2021
Empresa de Transmisión Guadalupe S.A.C. 2017-2021 Dec. 2017-2021
Salmueras Sudamericanas S.A. 2017-2021 Dec. 2017-2021
Calizas del Norte S.A.C. (on liquidation) 2017-2021 Dec. 2017-2021
Soluciones Takay S.A.C. 2019-2021 May to Dec.2019-.2021

Due to possible interpretations that the tax authority may give to legislation in effect, it is not possible to determine whether or not any of the tax audits will result in increased
liabilities for the Group. For that reason, tax or surcharge that could arise from future tax audits would be applied to the income of the period in which it is determined. However,
in management’s opinion and legal advisors, any possible additional payment of taxes would not have a material effect on the consolidated financial statements as of December
31, 2021 and 2020.

F-62
Notes to the consolidated financial statements (continued)

Environmental matters

The Group’s exploration and exploitation activities are subject to environmental protection standards.

Environmental remediation -
Law No. 28271 regulates environmental liabilities in mining activities. This Law has the objectives of ruling the identification of mining activity’s environmental liabilities and
financing the remediation of the affected areas. According to this law, environmental liabilities refer to the impact caused to the environment by abandoned or inactive mining
operations.

In compliance with the above-mentioned laws, the Group presented environmental impact studies (EIS), declaration of environmental studies (DES) and Environmental
Adaptation and Management Programs (EAMP) for its mining concessions.

F-63
Notes to the consolidated financial statements (continued)

The Peruvian authorities approved the EIS and EAMP presented by the Group for its mining concessions and exploration projects. A detail of plans and related expenses
approved is presented as follows:

Resolution Year of Program

Project unit Resource Number approval approved Operating year expense
2021 2020 2019
S/(000) S/(000) S/(000)

RD186-2014-
Rioja Limestone PRODUCE/DVMYPE-I/DIGGAM 2014 EIA 713 315 244
RD304-18-
Tembladera Limestone PRODUCE/DVMYPE-I/DIGAAMI 2018 PAMA 298 237 189

1,011 552 433

As of December 31, 2021 and 2020, the Group had no liabilities related to environmental remediation expenses because all were liquid before the end of the year.

Quarry rehabilitation provision -

Additionally, Law No. 28090 regulates the obligations and procedures that must be met by the holders of mining activities for the preparation, filing and implementation of
Quarries Closure Plans, as well as the establishment of the corresponding environmental guarantees to secure fulfillment of the investments that this includes, subject to the
principles of protection, preservation and recovery of the environment. In connection with this obligation, as of December 31, 2021 and 2020, the Group maintains a provision for
the closing of the quarries exploited in operations amounting to S/11,036,000 and S/10,161,000, respectively. The Group believes that this liability is adequate to meet the current
environmental protection laws approved by the Ministry of Energy and Mines, refer to note 15.

F-64
Notes to the consolidated financial statements (continued)

Legal claim contingency

The Group has received claims from third parties in relation with its operations which in aggregate represent S/3,963,000. From this total amount, S/3,367,000 corresponded to
labor claims from former employees; and S/596,000 is related to the tax assessments received from the tax administration corresponding to the 2009 tax period, which was
reviewed by the tax authority during 2012.

Management expects that these claims will be resolved within the next five years based on prior experience; however, the Group cannot assure that these claims will be resolved
within this period because the authorities do not have a maximum term to resolve cases. The Group has been advised by its legal counsel that it is only possible, but not probable,
that these actions will succeed.

30. Financial risk management, objectives and policies

The Group’s main financial liabilities comprise loans and borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Group’s
operations. The Group´s main financial assets include cash and short-term deposits and trade and other receivables that derive directly from its operations. The Group also holds
financial instruments designated at fair value through OCI cash flow hedges instruments and derivative financial instruments at fair value through profit or loss.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. The Group’s senior management is
supported by financial management that advises on financial risks and the appropriate financial risk governance framework for the Group. The financial management provides
assurance to the Group’s senior management that the Group’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with the Group´s policies and risk objectives.

Management reviews and agrees policies for managing each of these risks, which are summarized below.

Market risk -

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk:
interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include deposits, financial
obligations, financial instruments designated at fair value through OCI and derivative financial instruments.

The sensitivity analyses shown in the following sections relate to the Group’s consolidated position as of December 31, 2021 and 2020. The sensitivity analyses have been
prepared on the basis that the amount of net debts and the proportion of financial instruments in foreign currencies are all constant and on the basis of the hedge designations in
place as of December 31, 2021 and 2020.

F-65
Notes to the consolidated financial statements (continued)

Interest rate risk -

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

As of December 31, 2021 and 2020, all of the Group’s borrowings are at a fixed rate of interest; consequently, the management evaluated that it is not relevant to do an interest
rate sensitivity analysis.

Foreign currency risk -

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s
exposure to the risk of changes in foreign exchange relates primarily to the Group’s operating activities (when revenue or expense is denominated in a different currency from the
Group’s functional currency).

The Group hedges its exposure to fluctuations on the translation into soles of its Senior Notes which are denominated in US dollars, by using cross currency swaps contracts, see
note 31(a).

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate, with all other variables held constant. The impact on the Group’s
profit before income tax is due to changes in the fair value of monetary assets and liabilities.

Effect on
consolidated
Change in profit
2021 US$ rate before tax
U.S. Dollar % S/(000)

+5 7,502
+10 15,005
-5 (7,502)
-10 (15,005)

Effect on
consolidated
Change in profit
2020 US$ rate before tax
U.S. Dollar % S/(000)

+5 2,403
+10 4,806
-5 (2,403)
-10 (4,806)

Equity price risk -

The Group’s listed equity securities measured at level three of the fair value hierarchy are susceptible to market price risk arising from uncertainties about future values of the
investment securities, see note 31.

F-66
Notes to the consolidated financial statements (continued)

Credit risk -

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to a credit
risk from its operating activities (primarily for trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit
quality of the customer is assessed, and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any
shipments to major customers are generally covered by letters of credit. As of December 31, 2021 and 2020, the Group had 7 and 6 customers, that owed the Group more than
S/3,000,000 each accounting for approximately 46% and 47% of all trade receivables outstanding, respectively. There were 22 and 16 customers with balances greater than
S/700,000 and less than S/3,000,000, which accounted for approximately 34% and 30% of the total trade receivables, respectively. The evaluation for allowance for expected
credit losses is updated at the date of the consolidated financial statements and individually for the main customers. This calculation is based on actual historical data incurred.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 7. The Group does not hold collateral as security.

Cash deposits and hedging derivative financial instruments or at fair value through profit or loss-

Credit risk from balances with banks and financial institutions is managed by the Group’s treasury department in accordance with the Group’s policy. Investments of surplus
funds are made only with approved counterparties of first level. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through potential
counterparty’s failure to make payments. As of December 31, 2021 and 2020, the Group’s maximum exposure to credit risk for the components of carrying amounts as showed in
note 6. The Group’s maximum exposure relating to financial derivative instruments is noted in the liquidity table therefore.

Liquidity risk -

The Group monitors its risk of shortage of funds using a recurring liquidity planning tool.

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and debentures of long term. Access to sources of
funding is sufficiently available and debt maturing within 12 months can be rolled over under the same conditions with existing lenders, if this is necessary.

As of December 31, 2021 and 2020 no portion of Senior Notes will mature in less than one year.

F-67
Notes to the consolidated financial statements (continued)

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

More than 5
Less than 3 months 3 to 12 months 1 to 5 years years Total
S/(000) S/(000) S/(000) S/(000) S/(000)

As of December 31, 2021

Interest-bearing loans adjusted by hedge 159,000 291,964 414,290 570,000 1,435,254
Lease liabilities 465 1,391 3,973 5,829
Interest 31,255 35,147 166,252 154,851 387,505
Hedge finance cost payable 7,821 7,821 7,821 - 23,463
Trade and other payables 175,975 42,941 - - 218,916

As of December 31, 2020

Interest-bearing loans adjusted by hedge - 65,232 572,993 570,000 1,208,225
Lease liabilities 383 1,148 5,102 - 6,633
Interest 30,033 35,056 186,607 193,454 445,150
Hedge finance cost payable 8,032 8,032 24,096 - 40,160
Trade and other payables 142,253 38,235 - - 180,488

The disclosed financial derivative instruments in the table below are the gross undiscounted cash flows. However, those amounts may be settled gross or net. The following table
shows the corresponding reconciliation to those amounts to their carrying amounts:

Less than 3
months 3 to 12 months 1 to 5 years Total
S/(000) S/(000) S/(000) S/(000)

As of December 31, 2021

Inflows - - 125,537 125,537
Outflows (1,703) (7,908) (7,992) (17,603)

Net (1,703) (7,908) 117,545 107,934

Discounted at the applicable interbank rates (1,695) (7,716) 116,012 106,601

As of December 31, 2020

Inflows - - 75,936 75,936
Outflows (1,750) (8,112) (24,551) (34,413)

Net (1,750) (8,112) 51,385 41,523

Discounted at the applicable interbank rates (1,743) (7,929) 51,919 42,247

F-68
Notes to the consolidated financial statements (continued)

Changes in liabilities arising from financing activities:

Finance cost on Amortization of

Balance as of Distribution of cross currency Cash Cash Movement of costs of issuance Balance as of
January 1, dividends swaps inflow outflow foreign currency of senior notes December 31
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

2021
Hedge finance
cost payable 6,381 - 15,046 - (15,214) - - 6,213
Dividends
payable 7,686 338,204 - 481 (336,821) - - 9,550
Interest-bearing
loans 1,268,584 - - 220,000 - 55,955 816 1,545,355

2020
Hedge finance
cost payable 5,922 - 16,144 - (15,685) - - 6,381
Dividends
payable 52,523 98,465 - 321 (143,623) - - 7,686
Interest-bearing
loans 1,101,904 - - 862,191 (745,384) 49,056 817 1,268,584

F-69
Notes to the consolidated financial statements (continued)

Capital management -

For the purpose of the Group’s capital management, capital includes capital stock, investment shares, additional paid-in capital and all other equity reserves attributable to the
equity holders of the Company. The primary objective of the Group’s capital management is to maximize the shareholders’ value.

In order to achieve this overall objective, the Group’s capital management, among other things, aims to ensure that it meets financial covenants attached to the interest-bearing
loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the creditors to immediately call the senior notes.
There have been no breaches in the financial covenants of Senior Notes in the current period.

The Group manages its capital structure and adjusts it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital
structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2021 and 2020.

31. Fair value financial assets and liabilities

Financial assets -

Except derivative financial instruments and financial instruments designated at fair value through other comprehensive income, all financial assets which included cash and cash
equivalents and trade and other receivables are classified in the category of loans and receivables, are which non-derivative financial assets carried at amortized cost, held to
maturity, and generate a fixed or variable interest income for the Group. The carrying value may be affected by changes in the credit risk of the counterparties.

Financial liabilities -

All financial liabilities of the Group including trade and other payables and interest-bearing loans and borrowings are classified as loans and borrowings and are carried at
amortized cost.

(a) Derivative financial instruments -

Derivates asset of hedging -

Foreign currency risk -

As of December 31, 2021 and 2020, the Company maintains cross currency swaps agreements for a notional amount of US$132,000,000 and US$150,000,000,
respectively, with maturity in 2023 and an average rate of 2.97%. Of this total, US$131,612,000 have been designated as hedging instruments for Senior notes that are
denominated in U.S. dollars, with the intention of reducing the foreign exchange risk.

The cash flow hedge of the expected future payments was assessed to be highly effective and an resulted in unrealized gain of S/20,836,000 for the year 2021 (unrealized
loss of S/1,652,000 during 2020). The amounts retained in other comprehensive income of 2021 are expected to mature and affect the consolidated statement of profit or
loss in 2023, the year of its liquidation.

F-70
Notes to the consolidated financial statements (continued)

Assets (liabilities) from financial instruments at fair value through profit or loss -

As of December 31, 2021 and 2020 the Company held cross currency swaps that do not have an underlying relationship for amounts to US$388,000 and US$18,388,000
respectively. The effect on profit or loss of the change on their fair value amounts was a gain of S/589,000 and S/5,337,000 as of December 31, 2021 and 2020
respectively). In January 2021, derivative financial instruments at fair value through profit or loss were settled in the amount of US$18,000,000, the result was a net loss
amounting to S/1,569,000 presented in “Accumulated net loss on settlement of derivative financial instruments at fair value through profit or loss” caption in the
consolidated statement of profit or loss.

(b) Fair values and fair value accounting hierarchy -

Set out below is a comparison of the carrying amounts and fair values of financial instruments as of December 31, 2021 and 2020, as well as the fair value accounting
hierarchy. The dates of valuations at fair value were as of December 31, 2021 and 2020, respectively.

Fair value
Carrying amount Fair value hierarchy
2021 2020 2021 2020 2021/2020
S/(000) S/(000) S/(000) S/(000)

Financial assets
Cash and cash equivalents 273,402 308,912 273,402 308,912 Level 1
Trade and other receivables 143,924 89,627 143,924 89,627 Level 2
Derivatives financial assets – Cross currency swaps 106,601 42,247 106,601 42,247 Level 2
Financial investment at fair value through other comprehensive income 476 692 476 692 Level 3
Total financial assets 524,403 441,478 524,403 441,478

Financial liabilities
Trade and other payables 227,554 187,876 227,554 187,876 Level 2
Senior notes 1,094,391 1,044,352 1,119,035 1,118,492 Level 1
Promissory notes 450,964 224,232 447,558 221,607 Level 2

Total financial liabilities 1,772,909 1,456,460 1,794,147 1,527,975

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on the lowest level input that is significant to
the fair value measurement as a whole. The fair value hierarchies are those described in note 2.3.2 (vi).

F-71
Notes to the consolidated financial statements (continued)

For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy. As of
December 31, 2021 and 2020, there were no transfers between the fair value hierarchies.

Management assessed that cash and term deposits; trade and other receivables and other current liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

- The fair value of cross currency swaps is measured by using valuation techniques where inputs are based on market data and present value calculations. The models
incorporate various inputs, including the credit quality of counterparties, foreign exchange, forward rates and interest rate curves.

A credit valuation adjustment (CVA) is applied to the “Over-The-Counter” derivative exposures to consider the counterparty’s risk of default when measuring the
fair value of the derivative. CVA is the mark-to market cost of protection required to hedge credit risk from counterparties in this type of derivatives portfolio. CVA
is calculated by multiplying the probability of default (PD), the loss given default (LGD) and the expected exposure (EE) at the time of default.

A debit valuation adjustment (DVA) is applied to incorporate the Group’s own credit risk in the fair value of derivatives (that is the risk that the Group might
default on its contractual obligations), using the same methodology as for CVA.

- The fair value of the quoted senior notes is based on the current quotations value at the reporting date.

- The fair value of fixed rate promissory note it is calculated using the results of cash flow discounted at the average indebtedness rates effective as of the date of
estimation.

F-72
Notes to the consolidated financial statements (continued)

- The fair value of financial instruments designated at fair value through other comprehensive income has been determined using the income approach/discounted
cash flow method. The quantitative information about the significant unobservable inputs used in level 3 fair value measurements as of December 31, 2021 and
2020 are described as follows:

Weighted
As of December 31, 2021 average Fair value sensitivity

5% increase or decrease in the factor would result in an increase (decrease) in fair value of S/289,055,000 and
Earning growth factor 3.79% (S/293,389,000), respectively.
10% increase or decrease in the discount rate would result in an (decrease) increase in fair value at
WACC discount rate 9.02% (S/217,435,000) and S/315,534,000, respectively.

Weighted
As of December 31, 2020 average Fair value sensitivity

5% increase or decrease in the factor would result in an increase (decrease) in fair value of S/131,580,000 and
Earning growth factor 3.79% (S/456,870,000), respectively.
10% increase or decrease in the discount rate would result in an increase (decrease) in fair value at
WACC discount rate 8.53% (S/390,352,000) and S/169,179,000, respectively.

F-73
Notes to the consolidated financial statements (continued)

32. Segment information

For management purposes, the Group is organized into business units based on their products and activities and have three reportable segments as follows:

- Production and marketing of cement, concrete and blocks in the northern region of Peru.

- Sale of construction supplies (steel rebar and building materials) in the northern region of Peru.

- Production and marketing of quicklime in the northern region of Peru.

No operating segments have been aggregated to form the above reportable operating segments.

Management monitors the profit before income tax of each business unit separately for the purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on profit before income tax and is measured consistently with profit before income tax in the consolidated financial statements.

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

Net loss on
settlement of
Revenues from Selling and Other derivate (Loss) gain
external Gross profit Administrative distribution operating financial from exchange Profit before Income tax Profit for the
customers margin expenses expenses income, net Finance income Finance cost instruments difference, net income tax expense year
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

2021
Cement, concrete, mortar
and blocks 1,784,487 550,816 (191,132) (50,223) 6,358 2,874 (88,961) (980) (6,987) 221,765 (70,198) 151,567
Construction supplies 113,905 3,501 (2,675) (703) 47 17 (3) - (30) 154 (49) 105
Quicklime 39,141 5,651 (1,099) (289) - - - - (85) 4,178 (1,322) 2,856
Other (*) 234 (537) (1,163) (305) 3 - (1) - 16 (1,987) 629 (1,358)

Consolidated 1,937,767 559,431 (196,069) (51,520) 6,408 2,891 (88,965) (980) (7,086) 224,110 (70,940) 153,170

2020
Cement, concrete, mortar
and blocks 1,185,186 367,456 (157,491) (38,708) 4,204 2,951 (88,569) 5,337 (9,352) 85,828 (27,981) 57,847
Construction supplies 78,192 3,014 (2,862) (703) 154 26 (130) - (404) (905) 295 (610)
Quicklime 32,473 5,012 (1,493) (367) - - - - (88) 3,064 (999) 2,065
Other (*) 483 (196) (1,523) (375) (12) (1) 5 - 13 (2,089) 681 (1,408)

Consolidated 1,296,334 375,286 (163,369) (40,153) 4,346 2,976 (88,694) 5,337 (9,831) 85,898 (28,004) 57,894
2019
Cement, concrete, mortar
and blocks 1,292,183 481,037 (167,503) (42,752) 2,701 2,553 (77,947) (1,491) 718 197,316 (63,256) 134,060
Construction supplies 64,076 2,232 (1,745) (445) (25) 23 (37) - 6 9 (3) 6
Quicklime 36,109 3,545 (1,745) (445) - - - - 4 1,359 (436) 923
Other (*) 333 81 (3,489) (891) (31) - (2) - 1 (4,331) 1,389 (2,942)

Consolidated 1,392,701 486,895 (174,482) (44,533) 2,645 2,576 (77,986) (1,491) 729 194,353 (62,306) 132,047

(*) The “other” segment includes activities that do not meet the threshold for disclosure under IFRS 8.13 and represent non-material operations of the Group (including brine
projects).

F-74
Notes to the consolidated financial statements (continued)

Provision of
inventory net
Segment Other Total Operating Capital Depreciation and realizable value
assets assets (*) assets liabilities expenditure (**) amortization and obsolescence
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)

2021
Cement, concrete and blocks 2,940,888 106,280 3,047,168 1,930,140 97,288 (128,522) (3,374)
Construction supplies 42,578 - 42,578 75,633 - (1,102) -
Quicklime 79,383 - 79,383 - - (5,199) -
Other 31,846 797 32,643 194 - (744) -

Consolidated 3,094,695 107,077 3,201,772 2,005,967 97,288 (135,567) (3,374)

2020
Cement, concrete and blocks 2,806,803 37,068 2,843,871 1,590,105 63,960 (131,877) (3,635)
Construction supplies 51,225 - 51,225 58,517 - (767) -
Quicklime 83,621 - 83,621 - - (5,741) -
Other 31,696 5,871 37,567 107 - (782) -

Consolidated 2,973,345 42,939 3,016,284 1,648,729 63,960 (139,167) (3,635)

2019
Cement, concrete and blocks 2,714,888 - 2,714,888 1,409,598 87,086 (122,911) (2,498)
Construction supplies 51,376 - 51,376 99,934 - (879) -
Quicklime 93,812 - 93,812 - - (5,820) -
Other 53,258 18,224 71,482 375 - (208) -

Consolidated 2,913,334 18,224 2,931,558 1,509,907 87,086 (129,818) (2,498)

(*) As of December 31, 2021, corresponds to the financial investment designated at fair value through OCI for S/476,000 and fair value of derivative financial instruments
(“cross currency swap”) for S/106,601,000. As of December 31, 2020 corresponds to the financial investment designated at fair value through OCI for approximately
S/692,000 and the fair value of derivative financial instruments (“cross currency swap”) for S/42,247,000. The fair value of derivative financial instruments of hedging is
allocated to the segment of cement, and the financial investment designated at fair value through OCI and fair value of derivate financial instrument at fair value through
profit or loss are not assigned to any segment.

(**) Capital expenditure consists of S/97,288,000 and S/63,960,000 during the years ended as of December 31, 2021 and 2020, respectively, and are related to additions of
property, plant and equipment, intangible and other minor non-current assets.

Geographic information

As of December 31, 2021 and 2020, all non-current assets are located in Peru and all revenues are from clients located in the north region of the country.

F-75
 Exhibit 1.1

I. NAME, PURPOSE, REGISTERED OFFICE, DURATION, DATE OF

COMMENCEMENT OF ACTIVITIES

FIRST ARTICLE. CEMENTOS PACASMAYO S.A.A. is a company organized under the form of a publicly held company, subject to the General Law of Companies,
to the Law of Securities Market and other applicable provisions.

The company shall be named “CEMENTOS PACASMAYO SOCIEDAD ANONIMA ABIERTA” or its abbreviation “CEMENTOS PACASMAYO S.A.A.”

SECOND ARTICLE. The purpose of the Company preparing and manufacturing cements, lime, aggregates, blocks and cement bricks, concrete pre-mix and other
construction material, its derivatives and similar, including its trading and sale in the Republic of Peru and abroad. The company may also carry out all kinds of mining activities such as
prospecting, exploration, development, exploitation, merchandising, benefit and transport; as well as any activity related with goods transport service in general, materials and hazardous
wastes, including chemical supplies and controlled goods; and execute and subscribe all acts and suitable contracts for the fulfillment of its purpose, including activities to acquire, sell,
build, lease and manage real and personal property and perform all civil and commercial activities that are convenient, including its participation in other companies in the Republic of
Peru and abroad.

THIRD ARTICLE. The address of the Company shall be in the province and department of Lima. The Company may establish agencies, branch offices and offices in
any place in the Republic of Peru and/or abroad, by Board of Directors’ resolution.

FOURTH ARTICLE. The duration of the Company shall be perpetual, having commenced activities December 10th 1998.

II. CAPITAL STOCK AND SHARES

FIFTH ARTICLE. The capital Stock of the company is S/. 423,868,449 (four hundred twenty-three million, eight hundred sixty-eight thousand, four hundred forty-
nine and 00/100 Soles) represented by 423,868,449 shares with a nominal value of S/. 1.00 (One and 00/100 Sol), each of them fully subscribed and totally paid.

SIXTH ARTICLE. The liability of each shareholder shall be limited to the amount of his contribution according to the nominal value of the shares of which he is
holder.

SEVENTH ARTICLE. The shares are nominal and will have titles that shall be recorded in certificates or account entries. One sole title can represent one or more
shares of one owner or joint owners.

The certificates shall be signed with a handwritten or electronic signature by two directors and will include the following:

A. The name of the company, its capital stock, domicile, and duration, the date of the public deed of incorporation and the Notary before whom it was issued, as well as the information
of its registration in the Public Registry.
B. The name of the shareholder, the issuance date, the serial number, the number and the class of shares it represents and the number each share bears.

C. The nominal value per share, the amount paid and subsequent payments that are made on account of their nominal value or the statement that the shares are totally paid.

D. Liens or charges that could have been established on the share.

Provisional Certificates of Shares or Subscription Records may be issued, under the terms of Article 87 of the General Corporations Law as a result of capital increases
agreed by the Company, subject to the applicable laws.

The account entries shall be made according to the applicable law.

EIGHT ARTICLE. The company shall recognize as owner of each share whoever appears as such in the “Registry of Shares” to be kept by the Company. Also
registered, shall be the consecutive transfers of shares and the establishment of real rights or court measures that could affect the same. Each entry in the “Registry of Shares” must be
handwritten, electronic and / or digitally signed.

When there is a legal action concerning the ownership of the shares, the Company shall admit the exercise of the rights of shareholders to the person to be considered
as holder, pursuant to provisions of foregoing paragraph, except if otherwise ordered by court mandate. “

NINTH ARTICLE. There are no limitations, restrictions or priorities in a transfer of shares.

The Company shall not recognize agreements between shareholders containing limitations, restrictions or priorities to a free transfer of shares.

TENTH ARTICLE. The preferential right of shareholders to subscribe increase of capital stock with new contributions is incorporated to a security, called certificate
of preferential subscription or by a notation on account, both freely transferable.

Shareholders cannot exercise this shareholder’s right if they are in default in dividends payable and their shares will not be calculated to establish the prorate
participation in preferential right.

There is no preferential right of subscription in an increase of capital stock by conversion of obligations into shares, in the case of articles 103 and 259 of the General
Law of Companies, or in cases of reorganization of companies stipulated in above mentioned law.

The General Shareholders’ Meeting can decide that shareholders do not have preferential right of subscription who are believed to fall under cases established in article
259 of the General Law of Companies, provided requirements provided in said article are met.

The content of a certificate of preferential subscription, and its exercise and procedure of subscription, is ruled by legal provisions on this subject matter stipulated in
the General Law of Companies and in the Law of Securities Market and provisions established by the General Meeting, or otherwise by the Board of Directors.

ELEVENTH ARTICLE. Each share gives right to a vote, except for election of Board of Director purposes, when it will be subject to provision of article 164 of the
General Law of Companies. Each share is indivisible and cannot be represented but by one person only.

Always when by inheritance or any other title or right, legal or contractual, a number of natural persons acquire the joint property of one or more shares, they shall
designate, among the co-owners, one among them to exercise the rights of shareholder, certifying in writing such designation, either through private or public instrument.

2
 In case of disability, impairment or inconvenience of all the co-owners, they shall designate an common attorney that will exercise their rights, certifying in writing
such appointment and indicating whether the term is fixed or indefinite.

All such designations referred to in his article shall be accredited and notified to the Company, and shall be considered valid before the Company until a revocation has
been notified.

TWELFTH ARTICLE. In the case of loss or destruction of the titles representing the shares, the issue of new titles will be completed, after procedures determined by
law and upon the guaranties that the Board of Directors shall deem convenient. The cost shall be charged to the applicant.

THIRTEENTH ARTICLE. Any shareholder for the fact of so being, is subject to the Bylaws of the Company and resolutions of the General Shareholders’ Meeting
and the Board of Directors, adopted pursuant to this same Bylaws.

III. CORPORATE BODIES

FOURTEENTH ARTICLE. The company bodies are: the General Shareholders’ Meeting, the Board of Directors, and Management.

IV. GENERAL SHAREHOLDERS MEETINGS

FIFTEENTH ARTICLE. The General Shareholders’ Meeting is the supreme body of the company, and decides on any of the matters proper of its competence.

SIXTEENTH ARTICLE. The General Shareholders’ Meeting shall be called to meet in person or remotely.

The General Meeting of Shareholders will meet in person at the place of the corporate domicile or at the place indicated in the call. At the written request of
shareholders representing no less than three-fourths of the shares subscribed with the right to vote or by resolution of the Board of Directors by unanimous vote of the attendees, the
General Meeting of Shareholders may be held in a different place, either in the country or abroad, within the limits of the Peruvian Corporations Act and this Bylaws.

Shareholders may attend and / or participate the General Shareholders’ Meeting in a remote manner through written, electronic, telematic or any other means that allow
communication and guarantee of their identity or that of their representative accordingly, as well as to express their opinion and will, within the limits of the Peruvian Corporations Act,
this Bylaws and the provisions issued by the Superintendence of the Stock Exchange for issuers of securities registered in the Public Registry of the Stock Exchange.

The participation in a remote General Shareholders Meeting through written, electronic, telematic or any other means will be considered to determine the quorum
established in articles twenty-fourth and twenty-fifth.

The Board of Directors is empowered to determine the procedure to establish the quorum and for shareholders to attend and / or participate and exercise their vote in a
remote manner, including the possibility of establishing remote voting by electronic or postal means and setting the requirements and formalities for its exercise, within the limits of the
Peruvian Corporations Act, this Bylaws and the provisions issued by the Superintendence of the Stock Exchange for issuers of securities registered in the Public Registry of the Stock
Exchange.

SEVENTEENTH ARTICLE. The General Shareholders’ Meeting will meet at least once a year within the first three months following the end of each annual fiscal
year; this meeting is called the Annual Mandatory General Shareholders’ Meeting.

EIGHTEENTH ARTICLE. The General Shareholders’ Meeting will meet in any place when decided by the Board of Directors or requested by notary means by a
number of shareholders representing at least five percent of subscribed shares with right to vote.

3
 NINETEENTH ARTICLE. The Board of Directors gives notice of Shareholders’ Meetings through a published notice once in the Official Gazette “El Peruano”, and
in one of major circulation newspaper of

Lima at least twenty-five calendar days in advance to the date the Annual Mandatory Shareholders’ Meeting is to be held and when any other General Shareholders’
Meeting is to be held.

The notice may also contain the date in which a General Shareholders’ Meeting will be held in second or third call. In this case, between one and the next call, not less
than three and no more than ten calendar days must pass.

The notice shall specify the date, time and place where the meeting will be held and the subject matters to be discussed

TWENTIETH ARTICLE. When a General Shareholders’ Meeting is not held if more than half an hour has passed and there is no quorum, or is not held for any other
reason, a second call shall be made, unless the latter has been provided for in the notice referred to in foregoing article

The second call shall be made within the next thirty-calendar days to the date the Meeting was not held upon de first call, and the third call within an equal term from
the second, with the same requirements of the notice specified in the first call.

TWENTY FIRST ARTICLE. A General Shareholders’ Meeting can be held without need of prior notice provided all shareholders present or represented, represent all
shares subscribed with right to vote and record their unanimous consent to meet and discuss the matters proposed in the Book of Minutes.

TWENTY SECOND ARTICLE. Entitled to attend a General Shareholders’ Meeting, with voice and vote, are the holders of shares with right to vote registered in the
Registry of Shares, ten calendar days previous to the meeting.

Also entitled to attend a General Shareholders’ Meeting are, with voice not vote, the Directors and Managers of the Company that are not shareholders.

By invitation, Attorneys, Auditors and Officers of the Company, not being shareholders, may attend a General Shareholders’ Meeting, as well as individuals
determined by the Meeting, all of which will have voice but not vote.

The Shareholders may exercise their right to information through any electronic, postal, written or telephone means made available by the Company.”

TWENTY THIRD ARTICLE. Shareholders can be represented by a proxy in General Meetings.

The representation shall be notified by simple letter, electronic means, postal or any other means of communication that can issue a written certification, understanding that the
representation is for each General Meeting, except when the Power of Attorney is granted through a Public Instrument.

The powers need to be registered with the Company until to the day before the Meeting is held. Any person can represent one or several shareholders.

TWENTY FOURTH ARTICLE. A General Meeting to be hold in first call, the requirement is that the attendance, personal or through proxies or attorneys in fact, of
shareholders represent at least fifty percent of subscribed shares with right to vote.

For the second or third call, the attendance of any number of subscribed shares with right to vote shall suffice. The exception to the provision in this article is stipulated
in the next article.

4
 TWENTY FIFTH ARTICLE. A General Shareholders’ Meeting that will discuss the increase or reduction of the capital stock, the issue of obligations, transformation,
merge, split off, reorganization or dissolution of the corporation, the resolution to sell, in one only act, the assets whose book value exceeds fifty percent of the capital stock of the
company, and in general, any modification of the Bylaws, requires, for the first call, the attendance, personal or through proxies or attorneys in fact, of shareholders represent at least
fifty percent of subscribed shares with right to vote.

For the second call, it will suffice the representation of at least twenty-five percent of subscribed shares with right to vote,

In the event this quorum is not reached in second call, the General Meeting will be held in third call, when any number of subscribed shares with right to vote shall
suffice.

TWENTY SIXTH ARTICLE. The General Shareholders’ Meeting shall be chaired by the President and in his absence, by the Vice-president.

If both are absent, it shall be presided by whoever is representing the greater number of shares, and when two or more meet these same conditions, then it will be by
lot.

The Company Manager shall act as Secretary or, in his absence or impairment, then the person who the General Meeting will appoint in each case.

TWENTY SEVENTH ARTICLE. The Annual Mandatory General Shareholders’ Meeting shall:

A. Discuss the corporate management and economic results of previous fiscal year, expressed in the financial statements for such period.

B. Decide on the application of company profits, if any,

C. Choose when necessary, the members of the Board of Directors and fix their remuneration.

D. Designate or delegate upon the Board the appointment of external auditors, when required,

E. Decide on other proper matters pursuant to these Bylaws and any other specified in the call.

TWENTY EIGHTH ARTICLE. The General Shareholders’ Meeting also shall:

A. Remove the members of the Board at any time and without need to express cause, and choose who are to replace them,

B. Amend the Bylaws,

C. Increase or reduce the capital stock,

D. Issue obligations,

E. Agree the sale, in one single action, of assets whose book value exceeds fifty percent of the company capital stock,

F. Agree on investigations, audits or balances,

G. Transform, merge, split off, reorganize, dissolve and liquidate the company,

H. Decide on any kind of matters, provided the law or the Bylaws agree an intervention, and in any other matter that requires a corporate interest.

TWENTY NINTH ARTICLE. The resolutions of a General Shareholders’ Meeting shall be adopted by absolute majority of subscribed shares with right to vote
representing such majority.

THIRTIETH ARTICLE. The right to vote shall not be exercised by shareholders that:

A. Are late in paying their contributions to the company. The shares that are not entitled to exercise their right to vote shall not be accounted for to complete quorum or to establish a
majority vote.

B. Have, in the matters submitted to the General Meeting, on their own right or third party right, a conflict of interest with the company. The shares that are not entitled to exercise
their right to vote shall not be accounted for to complete quorum or to establish a majority vote.

5
 THIRTY FIRST ARTICLE. At the request of shareholders representing not less than twenty-five percent of subscribed shares with right to vote, the General Meeting
may be adjourned only once, for not less than three days and no more than five calendar days, and without need of a new call, for the discussion and vote of matters upon which the
shareholders so requesting it, deemed not being sufficiently informed.

Any number of meetings in which the Meeting is eventually held, shall be deemed as only one, and a single minutes shall be draw up.

THIRTY SECOND ARTICLE. The resolutions of the General Meeting shall be recorded in the minutes draw up in a special book, certified according to Law, and kept
by the company manager.

The minutes of each General Meeting will meet the requirements established by law and must be signed by hand, electronic and / or digital signature by the
corresponding parties.”

THIRTY THIRD ARTICLE. When under any circumstance, the minutes of a General Shareholders’ Meeting cannot be draw up in respective book; a special
document shall be issued, with the same formalities and requirements, specified in foregoing article.

The text of the special document shall be adhere or transcribed timely, in the book of minutes.

THIRTY FOURTH ARTICLE. The General Shareholders’ Meeting established, subject to provisions set forth in these Bylaws, legally represents all the shareholders
of the company, and its resolutions bind them all, including dissidents and those not attending the meeting.

V. BOARD OF DIRECTORS

THIRTY FIFTH ARTICLE. The Board of Directors is the executive body of resolutions adopted by the
General Shareholders’ Meeting, exercises the authority and rights concerning the representation, management and administration of the company; and it is under their
competence to decide any business that by law or by these Bylaws are not expressly reserved to the General Shareholders’ Meeting. The Board can meet within or outside the company
premises.

The Board shall be formed by a minimum of 7 (seven) members and a maximum of 11 (eleven) members. Before the election, The General Shareholders’ Meeting
shall decide on the number of Directors to elect for the applicable period.

In addition, the Board can have a minimum of 3 (thee) Alternate Directors and a maximum of 5 (five) Alternate Directors that shall be elected by the General
Shareholders’ Meeting, in the same way as the Regular Directors and rule over them all legal and statutory provisions applicable to regular members when attending in their stead.

Alternate Directors may attend any Board meeting. The President of the Board shall designate the Alternate Director or Directors that will replace the Regular Director,
as applicable, on a definite fashion in a case of vacancy, or on a temporary fashion in the event of absence or impediment. The simple vacancy, absence or impediment of a regular
member fully validates the acting of the alternate member who replaces him.

THIRTY SIXTH ARTICLE. For the purposes of election of the Board, and Alternate Directors, each share gives right to as many votes as directors need to be elected,
and each shareholder can accumulate his votes in behalf of one person only or distribute it among various.

Directors will be proclaimed when they obtain a greater number of votes, following the order of these. When two or more persons obtain an equal number of votes and
all of them cannot be part of the Board because the fixed number of directors according to these Bylaws will not allow it, it will be decided by lot, who among them shall become
member of the Board.

This article is not applicable when the directors are elected unanimously.

6
 THIRTY SEVENTH ARTICLE.

The office of Director ends:

A. By resignation, death, illness, civil impairment or another cause that definitely prevents him to exercise his functions,

B. When the General Shareholders’ Meeting so agrees, in the form provided for in sub item A) of article twentieth.

THIRTY EIGHTH ARTICLE. In the case of vacancy from office of any of the Directors, while a new election shall take place by the General Shareholders’ Meeting,
the Board shall designate the Alternate Director that will replace him on a definite manner.

In case there is a vacancy of Directors in a number such that the Board cannot meet validly, the regular

Directors will assume ad interim the administration and shall call promptly a General Shareholders’ Meeting, to elect the missing Directors.

THIRTY NINTH ARTICLE. The Directors will elect among them, a President, who will chair their meetings, and the General Shareholders’ Meetings, and a Vice-
president, who will exercise the same functions in the case of absence or impediment of the former.

When neither the President of the Board nor the Vice-president attend, the meeting shall chaired by the oldest Director.

Acting as the Secretary of the meeting shall be the Manager of the company or, in his absence, the person that in each case is designated by the Company.

Company Attorneys, Auditors and Officers of the Company, may attend the Board Meeting, at the invitation of the latter, all of which will have voice but not vote.

FORTIETH ARTICLE. The Directors will be appointed for three (3) year-long periods, except for appointments made to complete a term. The Directors can be
reelected by one or more additional periods.

The Board may appoint one or more Directors to resolve or execute certain acts. The delegation may be made to act individually or, if two or more Directors, to serve
as Committee.

The position of Director is remunerated. The Annual Mandatory Shareholders’ Meeting will set the fixed remuneration of the Board when ruling on corporate
management and economic performance of the previous year expressed in the individual annual audited financial statements. The fixed remuneration corresponding to the President of
the Board will be twice the remuneration that corresponds to any other director. As part of the directors’ remuneration, an additional remuneration to the diet provided to each director
may be granted to the Directors that participate in one or more committees, according to the work they undertake at such committees. The total amount of the additional payment
corresponding to all Directors shall not exceed the total amount of fixed compensation corresponding to all Directors.

The term of the Board ends when the Annual Mandatory Meeting resolves on the balance of the previous fiscal year and the election of a new Board, but Directors will
continue in position, although having concluded the term, until a new election is held, and the elected members have accepted the office.

FORTY FIRST ARTICLE. The President of the Board, or whoever performs his office, shall call a meeting whenever deemed necessary or when any Director or the
General Manager so requests it. The Board should gather at least four times a year.

The meetings of the Board are called by the President or the person he designates, by means of notices with acknowledgment of receipt that shall be addressed to the
domicile of each Director, with at least three day notice from the date of the meeting.

7
 The notices shall be delivered by registered mail, facsimile, telex, or any other means, assuring its receipt, and shall clearly specify the place, day and time the meeting
will take place, and the matters to be discussed therein.

Any Director may submit for consideration of the Board, the matters deemed of interest for the company, although these may not be included among the matters set in
the notice, and resolve about them in cases when all the members of the Board are present.

FORTY SECOND ARTICLE. A call to a meeting will not be necessary when all Directors are present, and register in the Book of Minutes, their unanimous consent to
hold a meeting without prior notice, and to discuss matters that are expressly proposed to them; the meeting can be held immediately.

FORTY THIRD ARTICLE. A meeting of the Board is held with the attendance of half the number of the members plus one. If the number of members is an odd
number, then the attendance required of the number of Directors is equal to the full number immediately higher than half of it.

Meeting of the Board where members are not present can be held through written electroni

c means or other nature that will allow communication and ensure the authenticity of the resolution, except if any one Director is opposed to use this procedure.

FORTY FOURTH ARTICLE. Each Director has one vote.

A resolution of the Board shall be adopted by the favorable vote of the absolute majority of Directors attending. In case of a tie, the President shall have the casting
vote.

FORTY FIFTH ARTICLE. A Director, who in any matter has an interest contrary to the company’s shall state so to the Board, and not participate in the discussion and
resolution concerning such matter. The impeded Director shall be deemed present for quorum purposes, but his vote shall not be calculated to establish the majority of the votes,

FORTY SIXTH ARTICLE. The resolutions of the meetings of the Board shall be registered in the minutes in the Book of Minutes, or in separate pages with the use a
mechanical system, certified according to law, to be kept by the Secretary of the Company. The minutes must be signed by hand, electronical and / or digital signature.

All Directors are entitled to have their votes and their grounds be registered when they so consider convenient; which can be done in respective minutes, or through a
notary letter.

FORTY SEVENTH ARTICLE. The Board has the power of legal representation and of the necessary management for the administration and steering of the company
with the limitations provided by law and the Bylaws.

The main duties and powers of the Board are:

A) Conduct and control each and all the company business and activities,

B) Regulate their own operation,

C) Organize the company offices and determine their expenses,

D) Name and remove the General Manager, the Managers, Attorneys, representatives and any other officer on company service, delegate upon them the authority deemed convenient,
specify their obligations and remunerations, grant them bonuses, when considered applicable, limit and revoke their powers previously delegated and establish all the rules and
regulations believed necessary for the good provision of services of the company.

E) Dispose onerously, exchange, purchase, sell, promise to purchase and give promise of sale of real property, as well as establish mortgage upon them, according to common law or
under the conditions required by commercial banks or other public promotional institutions and other credit institutions, according to their laws and regulations, or pursuant to
other special laws.

F) Pledge assets, whether common, industrial, and mercantile or of any other nature, according to common laws, or according to special laws, whatever these may be.

8
G) Obtain and grant mutual loans, credits in checking accounts, advance or overdrafts, documentary credits, advance in checking accounts and other similar operations, with or
without guarantee.

H) Open branch offices, agencies or offices of the company deemed necessary, and reform them or close them.

I) Waive the domicile jurisdiction.

J) Propose to the General Shareholders’ Meeting the resolutions deemed convenient for the corporate interests.

K) Submit annually to the Mandatory Shareholders’ Meeting, the General Balance and the Annual Report of the fiscal year.

L) Render accounts

M) Grant general or special powers to complete one or several acts referred to in foregoing sub items, except those referred in foregoing sub items K) and L), modify or renew them.

N) Delegate all or some of the powers, except those referred in foregoing sub items K) and L).

O) Review, approve any other type of contracts required to fulfill corporate purposes that exceeds the powers of Management.

P) Ensure compliance of legal and statutory provisions, as well as the resolutions of the General Meeting, being authorize to dictate and modify in-house regulations,

Q) Discuss and resolve all the other matters that according to these Bylaws are not submitted to resolutions by the General Shareholders’ Meeting.

VI. MANAGEMENT

FORTY EIGHTH ARTICLE. The Company will have one General Manager who will be appointed by the Board of Directors.

The General Manager is in charge of the administration of the Company.

The General Management may be the responsibility of a natural or a legal person, when a legal person is named Manager, immediately one or more natural persons
representing the legal person shall be named for this purpose.

FORTY NINTH ARTICLE. The General Management is responsible of:

A) Organizing the internal system of the Company.

B) Conduct all the business activities of the Company, in order to maintain it in optimum conditions of productive technique, of administrative, commercial and financial efficiency,
safety, legal efficiency and validity, economic profitability and technological progress. For this, he is authorized to execute actions and regular contracts concerning the corporate
purpose, as well as the work, the Board and the General Shareholders’ Meeting shall entrust upon him.

C) Responding for the existence, regularity and authenticity of the books that the law orders the company to keep and issue the correspondence of the same.

D) Name and remove officers or technicians of high responsibility and high remuneration, determining their obligations and remunerations, as well as employees and workers that are
required, promote them, change their functions and set their remunerations.

E) Represent the Company before any kind of authorities, whether political, administrative, fiscal, municipal or legal, with general and special powers of articles 74 and 75 of the Civil
Procedural Code. Consequently, the Manager is authorized to conduct all the acts of disposal of substantive and procedural law and, in particular, to sue, counterclaim, respond to
suits and counterclaims, abandon proceedings, acquiesce the claim, compromise, submit to arbitration controversial issues, substitute or delegate procedural representation, and for
all the other acts required by law.

F) Account for the course and condition of Corporate Business when the Board so requests.

G) Order payments and collection

9
H) Jointly with another Manager or Company Attorney, he is authorized to agree and verify credit operations deemed necessary; open, close and manage checking, deposit or credit
accounts, in local or foreign currency, within or outside the country, deposit, draw and acknowledge statements or contest them; enter into credit agreements in checking accounts,
with or without guarantee, for the product of the same be applied to paying obligations of the company or be deposited in its accounts, complete any kind of operations concerning
bills of exchange, checks, promissory notes, warrants, letters or orders of credit, invoices or other commercial or bank documents, whether to order or to bearer, the same that he will
draw, subscribe, accept, reaccept, ratify, extend, endorse, whether as guarantee, collection, discount, or fee simple, guarantee, cancel and negotiate and order a protest, as applicable
and deemed convenient; request credits through notes, promissory notes or checking account, in local or foreign currency, for the product of the same be applied to paying
obligations of the company or be deposited in its accounts; rent safe deposit boxes, use them and terminate the rent; register and acquire trademarks, register, obtain and buy patents;
and endorse freight bills and bills of lading.

I) Exercise the other functions that the Board may entrust upon him, as well as to conduct administrative actions deemed necessary or convenient to fulfill the corporate purposes, as
well as to exercise any other authority according to the nature of his office and that are not in opposition with statements by these Bylaws.

FIFTIETH ARTICLE. The Board may also name one or more Managers and Assistant Managers that will have the authority agreed to in their respective appointments
or in by separate acts.

VII. INDEMNIFICATION FOR DIRECTORS AND GENERAL MANAGER

FIFTY FIRST ARTICLE. The company will take responsibility for all reasonable expenses in which the Board or the general manager may incur, as well as the
damages they are obliged to pay regarding any action, trial or procedure in which they may have been part for being Director or general manager, except those in which is it determined
by judicial or arbitral definitive statement that may have been caused as a result of agreements or acts against the law or the bylaws, or for wishful misconduct, abuse of authority or
gross negligence, in which case, the involved Director or general manager will remain obliged to refund the company, all the expenses incurred by the company.

VIII. FINANCIAL STATEMENTS AND PROFIT APPLICATION

FIFTY SECOND ARTICLE. Within a maximum term of eighty calendar days after December 31st of each year, the Board shall prepare the Annual Report and the
Financial Statements of the Company at

December 31 of the previous year, according to provisions set forth by the General Law of Companies and the General Accounting Plan, as well as a proposal for the
application of the profits; these documents shall be submitted for the approval of the Annual Mandatory General Shareholders’ Meeting.

The Financial Statements shall be signed by the Accountant and countersigned by the President of the Board or the General Manager, or the legal representative duly
authorized for this purpose.

FIFTY THIRD ARTICLE. The General Shareholders’ Meeting may agree, prior approval of applicable Financial Statements, the distribution of provisional dividends
from net gains of the annual fiscal year, provided the Company has no accumulated losses.

The profits resulting from Annual Financial Statements, after discounting all expenses, making corrections and having deduced the necessary amount to create a
reserve fund or reserves to be created according to law, shall be applied as follows:

A. Remuneration of the Board.

B. The remaining amount, should the Board decide so, shall be capitalized the amount agreed by the Meeting. IN this case, the shares issued in terms of capitalization shall be delivered
to shareholders proportionally to the nominal value of the shares they posses, and if by virtue of the number of shares possessed by each shareholder, the distribution among them of
the shares so issued are not exactly possible, the shareholders will compensate among them the differences or, if this is not convenient, it will be adjudicated by lot among them, the
remaining shares that cannot be fully distributed, in order to respect the principle of indivisibility of each share.

10
C. Of the remaining, the General Meeting shall agree the amount to establish a special fund or voluntary reserve.

D. The final balance that may still remain shall be distributed as dividend among the shareholders.

IX. CORPORATE DISSOLUTION AND LIQUIDATION

FIFTY FOURTH ARTICLE. If a case of liquidation arises, the General Shareholders’ Meeting that resolves on the liquidation, shall designate the natural persons or
legal persons that will take charge; during the liquidation period the regulations of these Bylaws shall be observed wherever applicable, those stipulated by the General Law of
Companies, the Code of Commerce, in other applicable laws and in the Regulations of the Mercantile Registry and the resolutions of the General Meetings.

FIFTY FIFTH ARTICLE. If after having paid the debts of the Company there is a remaining balance, this should be distributed pro rata among all shareholders
proportionately to the nominal capital representing the shares they posses.

Further, once the liquidation is completed, the shareholders shall designate the person or entity that will keep the books and the documents of the Company.

X. DISPUTE RESOLUTION

FIFTY SIXTH ARTICLE. Any dispute, disagreement or conflict arising between shareholders, between shareholders and the Company, or between the Company and
its Directors during the existence or dissolution process of the Company, in connection to their rights or obligations or in connection to the interpretation, application, validity or
compliance with this By-laws or in connection with any agreement adopted by the Company’s General Shareholders’ Meetings or Board of Directors’ meetings, which have not been
resolved through direct negotiation and in amicable terms between the parties, or by means of mediation or conciliation, within thirty (30) business days from the notification to one of
the parties, the parties agree to waive their rights to solve any dispute, disagreement or conflict within the competent courts of their domiciles and agree that all disputes, disagreements
or conflicts will be settled by arbitration at law, except for those disputes which shall be ventilated under a specific jurisdiction as mandated by law, in which case the Peruvian
Arbitration Law (Legislative Decree No. 1071), or any law amending or replacing it, shall be applied as well as the additional provisions established for such effects.

The arbitration will be held in Lima, Perú and in Spanish language according to the agreements in this clause. For all the matters not provided herein, the arbitration
shall be organized and conducted in accordance with the provisions set forth in the Rules and Regulations of the Arbitration Center of the American Chamber of Commerce of Perú
(AmCham Perú). - Cámara de Comercio Americana del Perú

The Tribunal shall consist of three (03) arbitrators, following the rules below for their designation:

(a) The party requesting the arbitration shall submit the first request to the Arbitration Center of AmCham Perú indicating the name of the person designated as first arbitrator, and
inviting the opposing party, in turn, to designate the second arbitrator. The Arbitration Center of AmCham Perú shall submit a copy of the first request to the opposing party.

(b) Five calendar days after receiving the copy of the request referred to in letter (a) above, the opposing party shall indicate the name of the person designated as second arbitrator. If
the opposing party fails to designate an arbitrator within the stated term, the Arbitration Center of AmCham Perú shall designate the second arbitrator.

(c) Five calendar days after the designation of the second arbitration pursuant to the provisions in (b), both parties shall, mutually agree, on the person who will serve as third arbitrator,
who will chair the Tribunal. In

the event that the parties fail to reach an agreement, the Arbitration Center of AmCham Perú shall designate the Chair of the Tribunal upon the request of either of the
parties.

The Tribunal shall decide by majority on the subject matter of the arbitration. For this purpose, the Tribunal shall issue an arbitration award and the reasons therefore in
writing within the term set in the By-laws and Regulations of the Arbitration Center of AmCham Perú. The arbitration award shall be final, binding upon the parties and unappealable,
unless otherwise provided in the applicable rules.

In addition, the arbitration award shall determine the manner to confront the expenses related to the arbitration

11
 Exhibit 2.5

SUMMARY OF TERMS OF MEDIUM-TERM CORPORATE LOAN UNDER CLUB DEAL MODALITY WITH BANCO DE CREDITO DEL PERU S.A. AND SCOTIABANK
PERU S.A.A.

On September 13, 2021, the board of directors of Cementos Pacasmayo S.A.A. (hereinafter, the “Company”) approved the execution of a medium-term loan contract with Scotiabank
Perú S.A.A. (hereinafter “Scotiabank”) and Banco de Crédito del Perú (hereinafter “BCP”) in order to pay it´s short-term financial debt (with BCP) and the payment of the “4.50%
Senior Notes due 2023”.

On November 29, 2021, the Company, Scotiabank and BCP entered into the Medium-term Loan Contract of an amount of PEN 860’000,000.00.

The following are the key characteristics of the loan:

Execution Date: November 29, 2021

Term: 7 years with the Loan Schedule

Currency: Soles (S/)

Principal Amount: S/ 860,000,000 (BCP: S/430,000.000; Scotiabank: S/430,000,000)

Interest Rate: 5.82%

Interest Payment Dates: Quarterly

Prepayments: The Company may make prepayments of no less than S/ 10,000,000 with a commission of 1.5% per year with a limit of 3%

Priority: Pari passu with all other debts of the Company

Principal restrictions and covenants: (i) Debt Service Coverage Ratio (EBITDA/Debt Service) greater than or equal to 1.50x; (ii) Debt Service Coverage Ratio (Debt Service Cash
Flow/Debt service) greater than or equal to 1.15; (iii) Financial Debt Ratio (Financial Debt/EBITDA) less than or equal to 3.50x. Ratios to be measured quarterly on the basis of the
Company´s consolidated financial statements as of March, June, September and December every year.
 Exhibit 4.6

SUMMARY OF PRINCIPAL TERMS

EQUIPMENT AND ENGINEERING SUPPLY CONTRACT

On November 24, 2021, the board of directors of Cementos Pacasmayo S.A.A. (hereinafter, the “Company”) approved the execution of the supply contract with FLSMIDTH A/S
(hereinafter “FLS”), due to FLS’s standing, the reliability of its equipment and its technical expertise and support.

Therefore, on November 29, 2021, the Company and FLS entered into the Equipment and Engineering Supply Contract No. 2020-0211/2021 for a new Pyro Line located at the
Company´s cement plant.

The parties agreed that FLS would supply the equipment and engineering for the construction of a new pyro line having a capacity of 2,000 metric tons of Portland cement clinker per
day, located at the Company´s cement plant in Pacasmayo, Peru.

FLS, as the supplier, undertook the following obligations:

● Deliver the engineering according to FLS’s design and layout standards in accordance with the Delivery Schedule;

● Deliver the equipment according to FLS’s design in accordance with the Delivery Schedule and provide all necessary technical documents, including manuals, projects,
designs, plans related to the supply, operation and maintenance of the Equipment.

● Fulfill FLS’s performance guarantees for the Equipment.

● Fulfill FLS’s warranty period for 12 months starting at the earliest of (i) date of acceptance certificate or (ii) 36 months after the effective date of contract.

The Company, as the buyer, undertook the following obligations:

● Pay the contract price EUR 19’254,150.00 (Nineteen million two hundred fifty-four thousand one hundred fifty EUR).

● Take delivery of the supply.

● Obtain permits by the country required for the parties’ fulfillment of its obligations.

● Conduct start-up and commissioning, including performance tests of the Equipment.

 Exhibit 4.7

SUMARRY OF PRINCIPAL TERMS

CONSTRUCTION AND ASSEMBLY CONTRACT

On October 22, 2021, the board of directors of Cementos Pacasmayo S.A.A. (hereinafter, the “Company”) approved the increase in production capacity of its cement plant located in
Pacasmayo through the construction of a new pyro line of clinker.

On November 12, 2021, the Company issued invitations to initiate the tendering process for the construction of the new pyro line. For bidding purposes, the Company provided
referential drawings and other documents. On February 16, 2022, the Company awarded the contract to Ingeniería y Construcción Sigdo Koppers Perú S.A.C. (hereinafter, “SK”).

On February 16, 2022, the Company and SK entered into the Construction and Assembly Contract No. 2020-0019/2022 for the construction and assembly of the new pyro line of clinker
located at the Company’s cement plant in Pacasmayo, Peru.

SK, as the contractor, undertook the following obligations:

● Complete the scope of work, which includes all the building works, erection of metal structures, electromechanical equipment assembly, pipping installation and installation of
all other equipment supplied by the vendor, FLSMIDTH A/S, in accordance with the technical specifications, drawings, plans and other documents provided by the Company.

● Execution of the project as a fast track, under a combined method of time and material for the direct costs and lump sum for indirect costs duly approved by the Company.

● Conduct the pre-commissioning of the equipment supplied by FLSMIDTH A/S.

● Issue and provide a performance bond (carta fianza de fiel cumplimiento) equivalent to 10% of the contract price, valid for the duration of the contractual term until the
execution of the Final Certificate of Acceptance.

● Issue and provide a works performance bond (carta fianza de buena ejecución) equivalent to 10% of the contractual price, valid for a period of two years from the execution of
the Final Certificate of Acceptance.

● Fulfill the contractor’s civil liability warranty for a period of five years from the execution of the Final Certificate of Acceptance.

The Company, as the owner, undertook the following obligations:

● Pay the contract price PEN 66’083,227.61 (Sixty-six million eighty-three thousand two hundred twenty-seven with 61/100 PEN).

● Provide access to the job site at the Company’s cement plant in Pacasmayo, Peru.

● Provide the technical specifications, civil, mechanical and electric engineering, drawings, plans and other required documents.

● Obtain the building license and other required permits.

● Conduct start-up and commissioning.

The parties agreed that the Contract shall remain in force until the execution of the Final Certificate of Acceptance. The Contract’s timeline started on March 1, 2022 with the
preparatory activities until April 18, 2023 with the pre-commissioning of the equipment, in accordance with the Project Schedule.
 Exhibit 8.1

LIST OF SUBSIDIARIES

Name Under
Which the
Jurisdiction of Subsidiary Does
Subsidiary* Incorporation Business
Cementos Selva S.A.C. Perú
Distribuidora Norte Pacasmayo S.R.L. Perú Dino
Dinoselva Iquitos S.A.C. Perú Dino Selva
Calizas del Norte S.A.C. En Liquidación1 Perú
Empresa de Transmisión Guadalupe S.A.C. Perú
Salmueras Sudamericanas S.A. Perú
Acuícola Los Paiches S.A.C. Perú
Soluciones Takay S.A.C. Perú
150Krea United States

* All subsidiaries are wholly owned, directly or indirectly, by Cementos Pacasmayo S.A.A., except for Salmueras Sudamericanas S.A. in which Cemento Pacasmayo S.A.A. holds a
74.9% interest.

1
As of December 31, 2021, it was on the process of liquidation, which finished in February 2022.
 Exhibit 12.1

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Humberto Nadal Del Carpio, certify that:

1. I have reviewed this annual report on Form 20-F (the “report”) of Cementos Pacasmayo S.A.A. (the “Company”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made therein, in light of
the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as of, and for, the periods presented in this report;

4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information
relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5. The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the
audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
Company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date: April 28, 2022

/s/ Humberto Nadal Del Carpio

Humberto Nadal Del Carpio
Chief Executive Officer
 Exhibit 12.2

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Manuel Ferreyros Peña, certify that:

1. I have reviewed this annual report on Form 20-F (the “report”) of Cementos Pacasmayo S.A.A. (the “Company”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made therein, in light of
the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as of, and for, the periods presented in this report;

4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information
relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5. The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the
audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
Company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date: April 28, 2022

/s/ Manuel Ferreyros Peña

Manuel Ferreyros Peña
Chief Financial Officer
 Exhibit 13.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO
SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Cementos Pacasmayo S.A.A. (the “Company”) on Form 20-F for the fiscal year ended December 31, 2021, as filed with the U.S.
Securities and Exchange Commission on the date hereof (the “Report”), I, Humberto Nadal Del Carpio, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 28, 2022

/s/ Humberto Nadal Del Carpio

Humberto Nadal Del Carpio
Chief Executive Officer
 Exhibit 13.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO
SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Cementos Pacasmayo S.A.A. (the “Company”) on Form 20-F for the fiscal year ended December 31, 2021, as filed with the U.S.
Securities and Exchange Commission on the date hereof (the “Report”), I, Manuel Ferreyros Peña, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 28, 2022

/s/ Manuel Ferreyros Peña

Manuel Ferreyros Peña
Chief Executive Officer
 Exhibit 96.1

CEMENTOS PACASMAYO S.A.A.

Technical Report Summary (TRS)
Tembladera Quarry
and
Pacasmayo Cement Plant
20-F 229.601 (Item 601)
January 2021
Index

1. Executive Summary 8
1.1. Location and access 8
1.2. Climate 8
1.3. History 8
1.4. Geological environment and mineralization 9
1.5. Exploration 9
1.6. Sample preparation, analysis and security 10
1.7. Data verification 11
1.8. Mineral processing and metallurgical tests 11
1.9. Estimation of Resources and Mineral Reserves 12
1.10. Processing Plant & Infrastructure 13
1.11. Market studies 14
1.12. Capital and operating costs & Economic Analysis 15
1.13. Adjacent properties 18
1.14. Conclusions 18
1.15. Recommendations 19
2. Introduction 20
2.1. Participants 20
2.2. Terms of Reference 20
2.3. Conventions 22
2.4. Previous Work and Sources of Information 22
2.5. Details of QP Personal Inspection 22
3. Property description 23
3.1. Tembladera quarry 23
3.2. Pacasmayo Cement Plant 25
4. Accesibility, climate, local Resources, infrastructure and physiography 26
4.1. Tembladera quarry 26
4.2. Pacasmayo plant 28
5. History 30
5.1. Tembladera quarry 30
6. Geological setting, mineralization, and deposit 31
6.1. Regional geology 31
6.2. Local Geology 32
6.3. Characteristics of the deposit 34
7. Exploration 36
7.1. Drilling 36
7.3. Geotechnical studies 39

2
8. Sample preparation, analyses, and security 45
8.1. Geology and quarry 45
8.1.1. Preparation of samples, procedures, assays and laboratories 46
8.1.2. Quality Assurance Actions 46
8.1.3. Quality Plan 46
8.1.4. Sample security 47
8.1.5. Chain of custody 47
8.1.6. Qualified person’s opinion on quarry QAQC 48
8.2. Pacasmayo plant 48
8.2.1. Samples preparation, procedures, assays and laboratories 48
8.2.1.1. Raw materials sample preparation 49
8.2.1.2. Analysis of Laboratory 49
8.2.2. Quality Assurance Actions 49
8.2.2.1. Finished Product Control 50
8.2.2.2. Control of non-conforming product 50
8.2.2.3. Validation of Silos 51
8.2.2.4. Density 51
8.2.2.5. Quality Assurance (QA) and Quality Control (QC) 51
8.2.2.6. Quality Plan 52
8.2.2.7. Quality control parameters 52
8.2.3. Security of the samples 53
8.2.4. Qualified Person’s Opinion on cement plant QAQC 53
9. Data verification 54
9.1. Geology and quarry 54
9.1.1. Data Verification procedure 54
9.1.2. Data collection 54
9.1.3. Management and Validation of Database 54
9.1.4. Tracking Data 54
9.1.5. Validation of Data 55
9.2. Pacasmayo plant 55
9.2.1. Data verification procedures 56
9.2.2. Data validation 56
9.2.3. Qualified Person’s Opinion on cement plant 56
10. Mineral proccessing and metallurgical testing 57
10.1. Nature of Testing Program 57
10.2. Cement Manufacturing Test Results 58
10.3. Adequacy of the Test Data 58

3
11. Mineral Resources estimates 59
11.1. Data base 61
11.2. Density 61
11.3. Compositing 61
11.4. Basic statistics of the data (Assay – Composites) 61
11.5. Extreme values 62
11.5.1. Mineral Resources classification 62
11.6. Variogram Analysis 63
11.7. Interpolation 63
11.8. Resources estimation 65
11.8.1. Cut-off 66
11.8.2. Reasonable Prospects of Economic Extraction 66
11.9. Qualified Person’s Opinion 66
12. Mineral Reserves estimates 67
12.1. Criteria for Mineral Reserves determination 67
12.1.1. Run of Mine (ROM) determination criteria 68
12.1.2. Cement plant recovery 68
12.2. Reserves estimation methodology 68
12.3. Reserves estimation 69
13. Mining methods 70
13.1. Mining Methods and Equipment 70
13.2. Geotechnical aspects 73
13.3. Hydrological aspects 73
13.4. Other Mine Design and Planning Parameters 74
13.5. Annual Production Rate 74
13.6. Mining Plan 74
13.7. Life of Mine 76
13.8. Staff 76
14. Processing and recovery methods 77
14.1. Process plant 77
14.2. Raw materials for the cement production 77
14.3. Flow sheet 79
14.4. Main equipment 79
14.5. Material balance cement plant 79
14.5.1. Material balance 79
14.6. Process losses 80
14.7. Water consumption 80
14.8. Fosil fuel consumption 80
14.9. Electric power consumption 81
14.10. Maintenance Plan 81
14.11. Staff 81

4
15. Infrastructure 82
15.1. Tembladera quarry 82
15.2. Pacasmayo plant 84
16. Market Studies 85
16.1. The cement market in Peru 85
16.2. Industry and Macroeconomic Analysis 86
16.3. The North Region Market 88
16.4. Cement price 90
16.5. Current and future demand 91
17. Environmental studies, permitting, and plans, negotiations, or agreements with local individuals or groups. 93
17.1. Environmental Aspects 93
17.1.1. Tembladera quarry 93
17.1.2. Cement plant in Pacasmayo 95
17.2. Solid waste disposal 97
17.3. Qualified Person’s Opinion 98
18. Capital and operations costs 99
18.1. Basis for operating and capital cost for the quarry and plant 99
18.2. Capital and Operating Cost Estimates 100
18.3. Capital and Operating Cost Estimation Risks 104
19. Economic analysis 105
19.1. Methodology: Discounted Cash flow (Free) 105
19.2. Assumptions 105
19.2.1. General and Macroeconomic Assumptions 105
19.2.2. Income and Cost Assumptions 106
19.3. Results of financial model 107
19.4. Sensitivity Analysis 110
19.5. Economical Analysis for Resources Evaluation 111
20. Adjacent properties 112
21. Other relevant data and information 113
22. Interpretation and conclusions 113
23. Recommendations 115
24. References 116
25. Reliance on information provided by the registrant. 117

5
Index of tables
TABLE 1 MINERAL RESOURCES (EXCLUSIVE OF RESERVES) OF TEMBLADERA QUARRY 12
TABLE 2 MINERAL RESERVES OF TEMBLADERA QUARRY 12
TABLE 3 FREE CASH FLOW AND VALUATION 16
TABLE 4 RESOURCE CATEGORIZATION (EXCLUSIVE OF RESERVES) AT THE TEMBLADERA QUARRY 18
TABLE 5 MINERAL RESERVES EXPRESSED IN MILLIONS OF TONNES 18
TABLE 6 LIST OF CEMENTOS PACASMAYO S.A.A. PROFESSIONALS 21
TABLE 7 QP’S FIELD VISIT 22
TABLE 8 CENTRAL CORDINATES OF THE ACUMULACIÓN TEMBLADERA PROPERTY 23
TABLE 9 CENTRAL CORDINATES OF THE PACASMAYO CEMENT PLANT 25
TABLE 10 REGIONAL STRATIGRAPHIC COLUMN 32
TABLE 11 LOCAL STRATIGRAPHIC COLUMN OF THE TEMBLADERA QUARRY 34
TABLE 12 CHARACTERISTICS OF THE TEMBLADERA DEPOSIT 34
TABLE 13 DRILLING CAMPAIGNS IN TEMBLADERA QUARRY 36
TABLE 14 DCR INGENIEROS S.R.LTDA GEOTECHNICAL ZONES 40
TABLE 15 TILT TEST RESULTS 41
TABLE 16 PHYSICAL PROPERTIES OF ROCKS 42
TABLE 17 SIMPLE COMPRESSIVE STRENGTH 42
TABLE 18 SUMMARY OF ELASTIC CONSTANTS 42
TABLE 19 ROCK MASS QUALITY SUMMARY 43
TABLE 20 PROTOCOLS OF THE GEOLOGY AREA 45
TABLE 21 METHODS OF ANALYSIS FOR THE LIMESTONE FROM THE PACASMAYO PLANT LABORATORY 46
TABLE 22 QUALITY PLAN OF THE TEMBLADERA QUARRY 46
TABLE 23 TESTS AND FREQUENCY FOR EACH STAGE OF THE PROCESS 50
TABLE 24 QUALITY PLAN OF PACASMAYO CEMENT PLANT 52
TABLE 25 QUALITY CONTROL PARAMETERS FOR MATERIALS RECEIVED AT THE PACASMAYO CEMENT PLANT 52
TABLE 26 LITHOLOGIC UNITS OF THE TEMBLADERA QUARRY GEOLOGICAL MODEL 59
TABLE 27 PACASMAYO PLANT MATERIAL RESTRICTIONS 60
TABLE 28 CHARACTERISTICS OF THE BLOCK MODEL 60
TABLE 29 LIMESTONE CAL STATISTICS 62
TABLE 30 VARIOGRAM MODELING PARAMETERS 63
TABLE 31 ESTIMATION PARAMETERS SECONDARY VARIABLES 64
TABLE 32 ESTIMATION PARAMETERS CAO 65
TABLE 33 RESOURCE CATEGORIZATION (EXCLUSIVE OF RESERVES) AT THE TEMBLADERA QUARRY 66
TABLE 34 PACASMAYO CEMENT PLANT MATERIAL RESTRICTIONS 69
TABLE 35 MINERAL RESERVES EXPRESSED IN MILLIONS OF TONNES 69
TABLE 36 EQUIPMENT OF THE TEMBLADERA QUARRY 72
TABLE 37 PARAMETERS OF DESIGN ACCORDING TO GEOTECHNICAL ZONIFICATION 73
TABLE 38 REVIEWED SAFETY FACTOR 2021 73
TABLE 39 SUMMARY OF TEMBLADERA QUARRY DESIGN PARAMETERS 74
TABLE 40 MINING PLAN FOR THE NEXT YEARS 75
TABLE 41 MAIN EQUIPMENT IN PACASMAYO PLANT 79
TABLE 42 BALANCE FOR CRUDE PRODUCTION 80
TABLE 43 BALANCE FOR CLINKER PRODUCTION 80
TABLE 44 BALANCE PARA PRODUCCIÓN DE CEMENTO. 80
TABLE 45 FUEL CONSUMPTION IN PACASMAYO PLANT 80
TABLE 46 TEMBLADERA QUARRY FACILITIES 83
TABLE 47 CEMENT SHIPMENTS AT DOMESTIC LEVEL (IN THOUSANDS OF TONNES) 86
TABLE 48 TYPES OF PRODUCTS OF PACASMAYO CEMENT PLANT 89
TABLE 49 FORECAST OF FUTURE DEMAND FOR PACASMAYO CEMENT PLANT 92
TABLE 50 CONCEPTS ABOUT COST STRUCTURE OF TEMBLADERA QUARRY AND PACASMAYO PLANT 99
TABLE 51 OPERATING COSTS FORECAST OF QUARRY AND PLANT 101
TABLE 52 INVESTMENT FORECAST IN QUARRY AND PLANT 103
TABLE 53 PROFIT AND LOSS STATEMENT 108
TABLE 54 FREE CASH FLOW AND VALUATION 109
TABLE 55 SENSITIVITY ANALYSIS OF THE NET PRESENT VALUE 110
TABLE 56 SENSITIVITY ANALYSIS OF EBITDA 110
TABLE 57 RESOURCE CATEGORIZATION (EXCLUSIVE OF RESERVES) AT THE TEMBLADERA QUARRY 114
TABLE 58 MINERAL RESERVES EXPRESSED IN MILLIONS OF TONNES 114
TABLE 59 LIST OF CEMENTOS PACASMAYO S.A.A. INFORMATION. 117

6
Index of figures

FIGURE 1 PACASMAYO PLANT PROCESS BLOCK DIAGRAM 13

FIGURE 2 GRAPH OF SLOPES OF THE VARIABLES ON THE ECONOMIC VALUE 17
FIGURE 3 SENSITIVITY OF EBITDA 17
FIGURE 4 ACUMULACIÓN TEMBLADERA CONCESSION 24
FIGURE 5 PACASMAYO PLANT MAP 25
FIGURE 6 GEOLOGICAL SECTION OF THE TEMBLADERA QUARRY 35
FIGURE 7 TEMBLADERA QUARRY, DRILLING HOLE LOCATION MAP 37
FIGURE 8 WATER LEVEL AT THE TEMBLADERA QUARRY 39
FIGURE 9 PHOTOGRAPHIC RECORD OF CORE SHACK 47
FIGURE 10 PHOTOGRAPHIC RECORD OF THE SAMPLING INTERVALS 48
FIGURE 11 TEMBLADERA QUARRY MINING SEQUENCE 71
FIGURE 12 TEMBLADERA QUARRY FINAL PIT 76
FIGURE 13 PACASMAYO PLANT PROCESS BLOCK DIAGRAM 79
FIGURE 14 DME05A Y DME01 82
FIGURE 15 MINING FACILITIES 84
FIGURE 16 SEGMENTATION OF THE CEMENT MARKET IN PERU 85
FIGURE 17 GLOBAL GDP AND CONSTRUCTION SECTOR GDP MOM VARIATION (%) 87
FIGURE 18 HISTORIC PRICES OF CEMENT IN PERU 90
FIGURE 19 EVOLUTION OF THE NATIONAL DEMAND OF CEMENT 91
FIGURE 20 SENSITIVITY OF NET PRESENT VALUE 111
FIGURE 21 SENSITIVITY OF EBITDA 111
FIGURE 22 CONCESSION ACUMULACIÓN TEMBLADERA AND ADJACENT CONCESSIONS. 112

7
1. Executive Summary

Cementos Pacasmayo S.A.A (CPSAA) is a Peruvian company, whose corporate purpose is the production of cement and other products associated with the construction sector. This
Technical Report Summary summarizes a Pre-feasibility study of the Tembladera quarry located in the Cajamarca Region and the cement plant located in La Libertad Regional.
Cementos Pacasmayo company´s qualified persons prepared this Report to support disclosure of limestone Resources and Reserves.

1.1. Location and access

The Tembladera quarry contains limestone, which is the main raw material for cement production. This quarry is located in the Yonan district of Contumaza province in Cajamarca
Region. There is an access road to this quarry from Lima to Trujillo. The Pacasmayo plant is located in Pacasmayo city and it is located, 60 km from Tembladera quarry, 666Km from
Panamericana Norte and 120 km from Trujillo city.

1.2. Climate

The quarry has the semi-arid climate characteristic of the region of the Andean lower level of northern Peru. Precipitation ranges from minimum values of 0mm from June to September,
to a maximum value of 26.3 mm in March. Temperatures throughout the year vary between 20°C from July to August, and 25°C in March. The maximum temperature is 27°C on
average, but it can go up to 29°C (January - April). Minimum temperatures are around 15-17°C (July - September).

In the cement plant in Pacasmayo, the annual average temperature varies between 16.5 and 25.0°C. The monthly average temperature varies between 19 and 25°C. The annual relative
humidity averages at 85%.

1.3. History

Tembladera quarry is a limestone deposit, which is sourced for different types of cement for construction. The deposit is owned by Cementos Pacasmayo S.A.A.

In 2002, the National Institute of Cadastre and Mining Claims gave to Cementos Pacasmayo S.A.A., the title of non-metallic pile called “Acumulación Tembladera”, which goes back in
time to the date of the oldest claim “North N° 1” granted by the Mining Regional Office of Cajamarca by Ministerial Resolution N° 267, dated June 30, 1950, in favor of Cementos
Portland del Norte S.A., starting operations as Cementos Pacasmayo S.A.A. from 1957 to 2013.

8
In 2013, the Calizas del Norte S.A.C. company (CALNOR) started activities in January 2014 until May 2016. The Tembladera quarry was without operations from June to September
2016. Afterwards, Cementos Pacasmayo hired San Martin Contratistas Generales S.A. company for limestone production activities since October 2016 to date.

The most significant recent exploration activity was a drilling campaign in March 2007. MINTEC, a consulting company, was hired to create the 3D model of the deposit and the
estimation of Mineral Resources.

In 2019, another campaign of 8 diamond drill holes was carried out, to confirm the Resources and the Reserves of the Eastern area of the Deposit. Interpretation of the information
obtained was used to prepare a new geological model. Cementos Pacasmayo oversaw the interpretation.

1.4. Geological environment and mineralization

The deposit is contained within the so-called Cajamarca Formation, which belongs to the Upper Cretaceous (Turonian floor, around 90 MA). This formation overlies the Quilquiñan
Group and underlies the Celendín Formation.

Sedimentary rocks corresponding to the Cajamarca Formation and the Upper Cretaceous Celendín Formation outcrop in the area.

On the other hand, the Cajamarca Formation is composed of thin limestones, well stratified, in strata of thin layers, with a coloration that goes from dark gray to light. It has a thickness
or power of 230 meters.

1.5. Exploration

Exploration activities at the Tembladera quarry were carried out in 2007 and 2019. The first diamond drilling campaign was carried out in 2007 with 31 drill holes. During 2007, the
company DCR Ingenieros S.R.Ltda determined the geotechnical guidelines of the Tembladera quarry and grouped them into 7 geotechnical zones. In 2019, the second diamond drilling
campaign was carried out with 8 drill holes. In the same year, Walsh Peru S.A. carried out a hydrogeological study of the Tembladera quarry.

9
During 2021, Cementos Pacasmayo did not perform any exploration activity in the Tembladera quarry. The update of Hydrogeological studies in the Tembladera quarry was made;
however, the works were office work. Likewise, the update of geotechnical studies on the stability of the pit slope and the waste disposal in the quarry. Those works involved sample
collection and sample analysis to determine the rock strength, density, and other properties.

1.6. Sample preparation, analysis and security

Cementos Pacasmayo has implemented procedures for sample preparation, tests and security of the information on its operations. The cement plants and the operations had implemented
the ISO 9001 standard since 2015. The certification of this standard is renewed annually by means of an external audit.

In the geology area, the methods are used to analyze the main chemical components in the limestone using the XRF technique and other analytical methods. In the cement plant, the raw
materials for the production of clinker and cement are analyzed. The A.S.T.M. and the Peruvian Technical Standards are used as references. The laboratory in the cement plant has
properly calibrated equipment and a periodic maintenance plan.

During 2021, and as part of the QAQC activities, Cementos Pacasmayo hired the independent company Wiracocha Mining Services S.R.L., a company specialized in QAQC, for an
audit of the results and update of the quality protocol, its work included a resampling in the drill holes of the previous campaign. This company carried out the field and office work from
September to October 2021.

The results obtained conclude that the sample analysis for Limestone used in the geological model and the estimation of Resources and Reserves, obtained in the laboratory of Cementos
Pacasmayo in Pacasmayo plant has a confidence higher than 95%.

At the Pacasmayo plant, the sampling and data verification plan applies to the processes of receiving raw materials, crushing of raw materials, coal grinding, crude grinding,
clinkerization and cement grinding. Additionally, it is applied to the lime production, lime grinding and lime dispatch.

Cementos Pacasmayo S.A.A. had implemented QAQC protocols for the development of the exploration and production activities in the Tembladera quarry and in the Pacasmayo plant
to ensure the quality of the information that allows the estimation of Resources and Reserves of the limestone deposit.

10
1.7. Data verification

Concerning geological activities, CPSAA has a data verification area for the geological database. This area has as its main function, the verification of data to be used in the estimation
of mineral Resources and Reserves. For the appropriate administration of information, internal protocols have been implemented that are subject to internal audits. The stages within the
verification activities made in the geology area are the data collection, the administration and validation of data received from internal areas and external laboratories, data tracking
through the confirmation of custody chains and finally, validation of data in the information base that will allow the development of the Resources and Reserves model.

For data verification activities at the cement plant, the PDCA (Plan, Do, Check and Act) methodology is used. This is applied to the technical information received from the company’s
internal and external customers. The quality control laboratory compares the results with national and international laboratories as part of the verification procedures.

1.8. Mineral processing and metallurgical tests

Cementos Pacasmayo has procedures for the development of products at the laboratory level and its scaling at the industrial level, as well as its own procedures for the preparation,
review, issuance and control of laboratory test reports. Cementos Pacasmayo has a Research and Development laboratory located in the Pacasmayo plant to evaluate technical aspects in
cement plants and quarries.

To have a representative sample of its raw materials and cement at the Pacasmayo plant, Cementos Pacasmayo performs the analysis of its samples in its internal Research and
Development Laboratory located at the plant.

An important percentage of Research and Development activities are focused on evaluating different ratios between clinker-mineral additions providing the best functional
characteristics to our products and at the same time balancing the benefits generated for the company. Another objective is to identify other additions that can substitute for clinker: slag,
pozzolana, fly ash, calcined clays, etc., to reduce its environmental footprint and the cost of cement production.

The Research Laboratory issues technical reports following the criteria of international standards to the operations area which evaluates the convenience of industrial implementation of
the tests and validating what is reported at the laboratory level.

11
1.9. Estimation of Resources and Mineral Reserves

Qualified person (QP) has estimated limestone Resources and Reserves for this property. For the evaluation, the information from exploration activities from previous years has been
used, and is the database for the Resources and Reserves model.

The limestone Resources are presented in Table 1. The Resource estimation considered the quality restrictions of limestone received in Pacasmayo cement plant, limits of the
concessions, accessibility to the Resources and legal restrictions of the mining concessions, economic factors and modifying factors.

The minimum quality accepted is 48.6% CaO to be used as raw material for production and considering the sale prices of cement at the Pacasmayo plant, the economic evaluation used
for Reserve evaluation is shown in Chapter 19 and considers the same criteria used for the estimation of Reserves.

Table 1 Mineral Resources (exclusive of Reserves) of Tembladera quarry

Resources Tonnes M CaO (%) MgO (%) Al2O3 (%) SiO2 (%) SO3 (%)
Limestone Measured 128.29 49.31 1.81 1.84 4.82 0.31
Indicated 37.64 50.23 1.70 1.47 3.96 0.19
Measured + Indicated 165.93 49.52 1.79 1.76 4.63 0.28
Inferred 74.24 50.34 0.31 1.63 3.92 1.45

For Reserve estimation, the Resources and the quality criteria, modifying factors and limestone production costs were considered. The mining method used is open pit. The economic
results are shown in Chapter 19.

Table 2 Mineral Reserves of Tembladera quarry

Reserves Tonnes M CaO (%) MgO (%) Al2O3 (%) SiO2 (%) SO3 (%)
Limestone Proven 66.52 49.75 1.53 1.53 4.50 0.36
Probable 10.47 49.64 1.53 1.56 4.91 0.28
Total 76.99 49.74 1.53 1.53 4.56 0.35

12
1.10. Processing Plant & Infrastructure

Cement production considers the stages of raw material extraction, grinding and homogenization, clinkerization, cement grinding, silo storage and packaging, loading and transportation.
Cement is moved through conveyor belts to packing systems to be packed in bags and then loaded onto trucks operated by third parties for distribution.

Figure 1 Pacasmayo plant process block diagram

The raw materials and additions are considered for cement production at Pacasmayo plant. The raw materials for cement production are limestone, sand, iron, clay and coal. The mixture
of these raw materials is crude which is fed to the calcination kiln to produce clinker.

The limestone represents 78.54 % by weight of the raw material. Anthracite coal is also used as part of raw material to produce clinker.

Clinker and additional materials are used to produce cement. The additions used in cement production are slag, pozzolana, gypsum and limestone. Currently, the cement plant in
Pacasmayo has a Clinker/Cement factor of 0.72.

The Pacasmayo plant has an electrical substation with a capacity of 105 MVA, the electric power is supplied from the national grid.

Cementos Pacasmayo has implemented a preventive and corrective maintenance plan to keep cement production uninterrupted.

Cementos Pacasmayo maintains operational efficiency to control costs and operating margins, and makes efforts to diversify energy sources and ensure supply when possible.

13
1.11. Market studies

The Peruvian Cement Market is geographically segmented by regions: northern, central and southern region and every region is served by different companies, most of which are cement
producers.

The main companies that supply the cement market in Peru are Cementos Pacasmayo S.A.A., UNACEM, Cemento Yura, Cementos Selva. There are also companies that import cement
or clinker, such as Cemento Inka, Cemento Nacional, and Cemex, among others.

The companies that commercialized cement in Peru follow the Peruvian Technical Standards associated with - technical specifications for cement.

Portland Cement is subdivided into Type I and Type V. Portland Cement is subdivided into Type ICO, Type IL, Type 1P and Type 1 (PM); and finally, Hydraulic Cements specified by
performance are Type GU, Type MS (MH), Type HS, Type HE, Type MH and Type LH.

Cementos Pacasmayo, being the leading company in the production and sale of cement in the Northern Region, has a market share in the following cities: Cajamarca, Chiclayo,
Chimbote, Jaén, Pacasmayo, Piura, Rioja, Tarapoto, Trujillo, Tumbes, Yurimaguas and Iquitos. Cementos Pacasmayo also has a Market Share above 90% in the northern region of the
country.

Annual cement shipments at the national scale for the year 2021 reached a total of 12.5 million tonnes, while total cement shipments at the Pacasmayo plant for 2021 were 1,970.9
thousand tonnes. Pacasmayo plant meets almost 50% of the cement demand in the Northern Region of the country and its cement shipments represent more than 54.4% of the three
cement plant’s overall shipments.

14
1.12. Capital and operating costs & Economic Analysis

This document presents the cash flow analysis and an economic evaluation of the project based on the current operating costs of the cement plant in Pacasmayo and using information
from the Tembladera quarry for limestone production.

The economic analysis uses the economic assumptions listed in Chapter 19. The main variables considered in the economic model for the sensitivity analysis were cement price,
production cost and CapEx.

For the economic analysis of Reserves, the free cash flow is constructed, which does not incorporate the financing structure, since the latter is considered in the weighted average cost of
capital of the company (WACC) for discounting future cash flows. The following financial parameters were calculated:

● 30-year mine life

● Average plant throughput for cement production: 2.33 million tonnes per year over the 30-year projection.

● Average sales price: 498.1 soles per ton of cement, an average of the 30-year projection, at nominal values.

● Revenues: 1,275.1 million soles, an average of the 30-year projection.

● Average cash production cost: 371.0 soles per ton of cement, an average of the 30-year projection, at nominal values.

The cash flow of the project is presented in Table 3 below. The NPV at a discount rate of 9.87% is 779.6 million soles.

15
Table 3 Free Cash Flow and valuation

16
Sensitivity analysis was also made to show the influence of changes in prices, OpEx and CapEx on NPV.

Figure 2 Graph of slopes of the variables on the Economic Value

Figure 3 Sensitivity of EBITDA

About Mineral Resources, to demonstrate their economic viability or profitability, an economic analysis there was developed. The same criteria were used for the Reserves (see point
19.2.1) and Resources estimation. The Resources are significantly more than the Reserves; perpetuity is included at the end of the 30-year projection.

The results are NPV of 954.0 million soles at a discount rate of 9.87%. A life of mine (LOM) of 63 years with an average plant throughput of 2.33 million tons per year during the 30-
year forecast. The average sales price for the 30-year forecast is 498.1 soles per ton of cement at nominal values, and average revenues are 1.275.1 million soles per year. The average
cash production cost for the 30-year forecast is 371.0 soles per ton of cement at nominal values.

17
1.13. Adjacent properties

The Acumulación Tembladera property shares borders with private properties. No mining activities are being performed on these properties. The mining concession (EAGLE 1) overlaps
with the Acumulación Tembladera property by 46.43 hectares; however, Cementos Pacasmayo owns the surface property; consequently, this concession does not restrict the Cementos
Pacasmayo’s activities in the current exploitation areas. Eagle 1 does not interfere with Cementos Pacasmayo S.A.A.’s operations, Resources or Reserve estimates. Also Julissa A
concession does not interfere with the area of the mining rights in the Cementos Pacasmayo S.A.A. concession.

1.14. Conclusions

● From a legal point of view, Cementos Pacasmayo S.A.A. has the ownership of the mining properties for the exploration, development and production of limestone to supply the
cement plants for normal production during the life of the quarry.

● Cementos Pacasmayo S.A.A. has been complying with international ISO-9001 (Quality) standards since 2015 and has implemented Quality Assurance and Quality Control
(QAQC). The controls are applied for the construction of the Geological Model, Resource Estimation and Reserves Estimation.

● Cementos Pacasmayo S.A.A. has a quality assurance system in its operations that includes sample preparation methods, procedures, analysis and security, which comply with
the best practices in the industry.

● Updated geotechnical studies and geotechnical design evaluated are stable since the analyses show safety factors greater than the minimum acceptable.

● The information verification and validation processes are carried out following the procedures indicated in the information flows. The validated information is congruent with
the one that generated the geological models, which are the fundamental basis for the estimation of Resources.

● The geological modeling of the limestone deposit is consistent with the relationship between the information and the geological model.

● The Reserves estimations consider the risk factors and modifying factors. The main variable is the CaO content which is very stable in the deposit, also there are along with
other secondary variables that determine the quality of the Reserves.

● In the process of calculating Reserves and in the production plans of the quarry, these variables have been adequately considered in the mining plan, properly sequenced and
with blending processes. There are sufficient proven and probable Reserves for the next 30 years.

● Table 4 shows the Mineral Resources of the Tembladera quarry and categories. Likewise, the Mineral Reserves are shown in Table 5 and categories.

Table 4 Resource Categorization (exclusive of Reserves) at the Tembladera quarry

Resources Tonnes M CaO (%) MgO (%) Al2O3 (%) SiO2 (%) SO3 (%)
Limestone Measured 128.29 49.31 1.81 1.84 4.82 0.31
Indicated 37.64 50.23 1.70 1.47 3.96 0.19
Measured + Indicated 165.93 49.52 1.79 1.76 4.63 0.28
Inferred 74.24 50.34 0.31 1.63 3.92 1.45

Table 5 Mineral Reserves expressed in millions of tonnes

Reserves Tonnes M CaO (%) MgO (%) Al2O3 (%) SiO2 (%) SO3 (%)
Limestone Proven 66.52 49.75 1.53 1.53 4.50 0.36
Probable 10.47 49.64 1.53 1.56 4.91 0.28
Total 76.99 49.74 1.53 1.53 4.56 0.35

18
 ● The cement plant located in Pacasmayo has equipment and facilities available for cement production using limestone from the Tembladera quarry and other necessary materials.
An additional kiln is expected to be installed for clinker production which should be in full production by 2024.

● The Health, Safety and Environment area is in charge of supervising compliance with the Company’s corporate policies and the various legal requirements of the national
regulatory bodies by all company areas.

● Through its Social Responsibility area, Cementos Pacasmayo S.A.A. has generated relationships of trust with the communities surrounding its operations, which have a solid
relationship with our communities, identifying their primary needs in health, education, urban development, and local development.

● In 2021, due to COVID 19 pandemic, CPSAA had been limited in some face-to-face meetings with stakeholders that did not affect our good relationship.

● The operation in Tembladera quarry and Pacasmayo plant, with regards to infrastructure, is technically and economically feasible due to the life of the quarry.

● The sensitivity analysis shows that the operation is economically robust.

1.15. Recommendations

● Maintain the QAQC program for exploration, development and production activities associated with cement production.

● It is recommended to extend the geological studies in more detail, including diamond drilling towards the east side of the open pit, this will allow recategorization of the
Inferred Resources.

● Carry out geotechnical and hydrogeological studies to update the pit design associated with the mining method.

● It is recommended to perform density tests for limestone in the next studies at the Tembladera quarry.

● For future diamond drilling campaigns evaluate the rock density for each limestone horizon.

● Evaluate the presence of andesitic dykes within the production zone. These represent inert material during production.

19
2. Introduction

2.1. Participants

This technical summary report (TRS) was prepared by Cementos Pacasmayo’s qualified persons (QP’s), who according to their qualifications and experience developed the chapters
based on their expertise. Likewise, the aforementioned QP’s used Company’s information sources, information validated and approved by the competent authorities in Peru and public
information sources. Table 6 indicates the qualified professionals who participated in the preparation of this document as well as the chapters and information under their responsibility.

Marco Carrasco, who holds the position of Project Manager of Cementos Pacasmayo, is QP certified by the Mining and Metallurgical Society of America (MMSA) of the United States.
He acted as Project Manager, whose primary role was compiled the information received from the QPs of each chapter to have an integrated document. Each QP is responsible for the
section they wrote.

2.2. Terms of Reference

This technical report summary was prepared as an exhibit to support disclosure of mineral Resources and Reserves by Cementos Pacasmayo. This report summarizes the results of the
Prefeasibility study of the “Acumulación Tembladera” property for the production of limestone using open pit mining methods. The report is effective December 31, 2021.

The limestone extracted from the Acumulación Tembladera property supplies raw material for the Pacasmayo plant where cement is produced and is located in the city of the same
name. The annual cement production is 2.33 million tonnes per year (mtpy). Actual operating costs have been considered for the estimates and used as a basis for economic projections
within the economic analysis. This technical report summary estimates Resources and Reserves according to the regulations published in Securities Exchange Commission (SEC) Form
20-F and under subpart 1300 of Regulation S-K.

The report was prepared by the qualified persons listed in Table 6 using available studies and, in some cases (see Chapter 25), relying on information provided by Cementos Pacasmayo,
the registrant.

20
 Table 6 List of Cementos Pacasmayo S.A.A. Professionals

First and Last

Item Chapter Job Position Profession
Names
0 Compiled all Marco Carrasco (*) Project Manager Chemical Engineer
1 Executive summary All QPs (**)
2 Introduction All QPs (**)
3 Property description Ricardo del Carpio Environmental Coordinator Geographic Engineer
Accessibility, climate, local Resources,
4 Ricardo del Carpio Environmental Coordinator Geographic Engineer
infrastructure and physiography
5 History Jorge Vega Mining Projects Superintendent Mining Engineering
5 History Jhonson Rodríguez Senior Geologist Geological Engineer
Geological setting, mineralization, and
6 Jhonson Rodríguez Senior Geologist Geological Engineer
deposit
7 Exploration Jhonson Rodríguez Senior Geologist Geological Engineer
Sample preparation, analyses, and
8 Jhonson Rodríguez Senior Geologist Geological Engineer
security
Sample preparation, analyses, and Quality Assurance and R&D
8 Gabriel Mansilla Chemical Engineer
security Superintendent
9 Data verification Jhonson Rodríguez Senior Geologist Geological Engineer
Quality Assurance and R&D
9 Data verification Gabriel Mansilla Chemical Engineer
Superintendent
Mineral processing and metallurgical R&D and Quality Assurance
10 Gabriel Mansilla Chemical Engineer
testing Superintendent
11 Mineral resource estimates Jason Gamio Modeler Geological Engineer
12 Mineral reserve estimates Jason Gamio Modeler Geological Engineer
13 Mining methods Jorge Vega Mining Projects Superintendent Mining Engineering
14 Processing and recovery methods Mario Alva Operations Manager Electronic Engineer
15 Infrastructure Jorge Vega Mining Projects Superintendent Mining Engineering
16 Market studies Jason Gamio Modeler Geological Engineer
Environmental studies, permitting, and
17 plans, negotiations, or agreements with Ricardo del Carpio Environmental Coordinator Geographic Engineer
local individuals or groups
18 Capital and operating costs Jason Gamio Modeler Geological Engineer
19 Economic analysis Jason Gamio Modeler Geological Engineer
20 Adjacent properties Ricardo del Carpio Environmental Coordinator Geographic Engineer
21 Other relevant data and information All QPs (**)
22 Interpretation and conclusions All QPs (**)
23 Recommendations All QPs (**)
24 References All QPs (**)
Reliance on information provided by the
25 All QPs (**)
registrant

(*) Marco Carrasco, who holds the position of Project Manager of Cementos Pacasmayo compiled the information received from the QPs of each chapter to have an integrated report.
Each QP is responsible for the section they wrote.

(**) Ricardo del Carpio, Jorge Vega, Jhonson Rodríguez, Gabriel Mansilla, Jason Gamio and Mario Alva

21
2.3. Conventions

Unless otherwise indicated in the report, all currencies are in soles and all measurements and units are in the metric system. The Acumulación Tembladera property is located within the
boundaries of the WGS84 two-dimensional geographic coordinate reference system, in the UTM 17S (Universal Transverse Mercator) zone. All coordinates referenced in this report and
in the accompanying figures, tables, maps and sections are provided in the WGS84 coordinate system, UTM 17S zone, unless otherwise indicated.

2.4. Previous Work and Sources of Information

The information used is sufficient to allow this TRS to be completed with the level of detail required by Regulation S-K subpart 1300. The information used included actual information
from Cementos Pacasmayo’s operations, information submitted to and approved by the corresponding authorities and public information in organizations specialized in the cement
industry. The list of sources of information is presented in Chapter 24 of this report.

2.5. Details of QP Personal Inspection

The QP’s who developed this document was unable to visit the Tembladera quarry and the Pacasmayo plant periodically during 2021 due to COVID-19 pandemic restrictions. Instead,
the QPs worked with on-site staff using virtual tools to gain first-hand knowledge of the quarry and cement plant. The virtual meetings included verifying parameters of the limestone
and cement production.

Table 7 QP’s field visit

Item First and Last Field visit

Job Position Profession
Names
1 No visits were made due to COVID-19. Coordination was made
Ricardo del Carpio Environmental Coordinator Geographic Engineer
with operations personnel using virtual tools.
2 The last visit to the Tembladera quarry and Pacasmayo plant was in
Jorge Vega Mining Projects Superintendent Mining Engineering 2019. No visits were made in 2021 due to COVID issues, and
coordination was made with Operations personnel.
3 The last visit to the Tembladera quarry and Pacasmayo plant was in
Jhonson Rodríguez Senior Geologist Geological Engineer 2019. No visits were made in 2021 due to COVID issues, and
coordination was made with Operations personnel.
4 Quality Assurance and R&D Pacasmayo Plant, all year as part of his duties.
Gabriel Mansilla Chemical Engineer
Superintendent
5 The last visit to the Tembladera quarry and Pacasmayo plant was in
Jason Gamio Modeler Geological Engineer 2019. No visits were made in 2021 due to COVID issues, and
coordination was made with Operations personnel.
6 No visits were made due to COVID-19. Coordination was made
Mario Alva Operations Manager Electronic Engineer
with operations personnel using virtual tools.

22
3. Property description

3.1. Tembladera quarry

We refer to the non-metallic mining concession called Acumulación Tembladera. The mentioned mining property is located in the area of Tembladera, in the district of Yonan, province
of Contumaza, Cajamarca region.

The quarry is located 60 km from the Pacasmayo district, Pacasmayo province, La Libertad region, where the cement plant is located. Consider the UTM coordinate of the center of the
circle of the Acumulación Tembladera as follows:

Table 8 Central cordinates of the Acumulación Tembladera property

North East Radius Zone

706744.79 9198636.74 5,000.00 17

The area of the property is 3,390.97 hectares and is shown in Figure 4. The mining rights (the mining concession Title) are granted by INGEMENT (Geological Mining and Metallurgic
Institute) of the Energy and Quarries Sector by means of a Presidential Resolution. In the particular case of the Acumulación Tembladera, the Director’s Resolution N° 01989-2002-
INACC/J the State Organization that granted that title was the National Institute of Concessions and Mining Cadastre (Instituto Nacional de Concesiones y Catastro). Cementos
Pacasmayo S.A.A has surface rights for the operation area in the Tembladera quarry.

The mineral rights were issued based on the General Mining Law (DS-014-92-EM) and its Regulation D.L 020-2020-EM.

The property is in the name of Cementos Pacasmayo S.A.A., is also registered with the name Acumulación Tembladera, and with type of substance NON-METALLIC.

Cementos Pacasmayo S.A.A. pays the right of validity for the concession of Acumulación Tembladera with unique code 010001801L. These payments must be made from the first
business day of January to June 30 of every year.

Cementos Pacasmayo S.A.A. pays royalties to the State according to regulations established by the Authority in Law N° 28258 and its amendment N° 29788, for the property called
Acumulación Tembladera.

23
Figure 4 Acumulación Tembladera Concession

24
3.2. Pacasmayo Cement Plant

The cement plant property is located in the Pacasmayo District, Pacasmayo Province, La Libertad Region. It is located at Kilometer 666 of the Panamericana Norte.

The property is shown in the Figure 5 and Table 9 shows the UTM coordinates of the center of the circle of the Pacasmayo plant:

Table 9 Central cordinates of the Pacasmayo cement plant

North East Radius Zone

659953.76 9180941.32 700.00 17

The area of the property is 86.7 hectares. The property is registered in the National Superintendency of Public Registries (Superintendencia Nacional de los Registros Públicos –
SUNARP) under the registration number 11004542 in registry zone No. V TRUJILLO BASE, Registry Office San Pedro de Lloc.

Cementos Pacasmayo S.A.A. pays taxes to the State according to that established by the Municipal Authority, for the Pacasmayo plant.

Figure 5 Pacasmayo plant map

25
4. Accesibility, climate, local Resources, infrastructure and physiography

4.1. Tembladera quarry

This chapter describes the accessibility, climate, local Resources, and infrastructure for the Tembladera quarry and Pacasmayo plant. Information obtained from technical and
environmental studies prepared by specialized companies and approved by the authorities is used.

Topography

Tembladera is located between 500 and 1000 masl; the topography shows steep surfaces and abrupt slopes. Drainage is dendritic and controlled by structural features; all the streams are
affluent of the Jequetepeque River.

Access

The main access by land. The journey from the city of Lima to the Tembladera quarry is as follows: Lima – Pacasmayo (666 km), Pacasmayo – Ciudad de Dios (14.3 km), Ciudad de
Dios – Tembladera (50 km) and Tembladera – Checkpoint (0.8 km), for a total of 747.1 km.

By air route is as follows: Lima – Trujillo in 1 hour flight, and from Trujillo to Tembladera quarry by land route for a journey of 2 hours.

Another alternative by air route is as follows: Lima – Chiclayo, in approx. 1:15 hrs. flight, and from Chiclayo to Tembladera by land route with a journey of 2.5 hrs.

Climate

The Tembladera quarry is located in the western slope of the Andes Mountains range of the Cajamarca Region, the climatic characteristics of semi-arid areas that involve the region of
the lower Andean floor of northern Peru.

The source of meteorological information is administered by the National Service of Meteorology and Hydrology, SENAMHI. The precipitation corresponding to the Monte Grande
Meteorological Station reports as minimum values 0 mm from June to September and maximum values of 26.3 mm in March, that regime is due to the dry and wet periods of the year. A
total annual precipitation of 64.6 mm has been possible to establish.

26
Temperature

The average monthly temperature fluctuates from 20 °C in July and August, and to 25 °C in March. The monthly thermal amplitude is less than 4 °C. The maximum average
temperatures fluctuate from 27 °C, (but it is possible to go up) to 29 °C (January – April), and the minimum temperatures fluctuate from 15 – 17 °C (July - September).

Physiography

The study area is located in northern Peru between the transition of the coast and the mountain range, a region characterized by hilly mountainous relief, cut by rivers and streams
creating cultivated valleys and watercourses, where the current morpho-dynamic processes show a moderate to low activity, except during the periods of El Niño Phenomenon. The
property groups physiographic units into three morphological classes: plains, mountains and hills and one class originated by human activity.

Local Resources

The personnel of the quarry are divided into Cementos Pacasmayo S.A.A. personnel and Contractor personnel.. Additionally, the quarry is located 5 kilometres from the Tembladera
town, where there are local resources for a population as housing, schools, hotels, electrical infrastructure, water supply, internet access, etc. and and access to the Tembladera quarry by
pickup trucks and buses of the contractor company.

The national grid is the source of energy for the Tembladera quarry. A water channel supplies the Tembladera quarry with this resource, which is authorized by the National Water
Authority (ANA).

27
4.2. Pacasmayo plant

Geomorphology

The area is located in the alluvial pampas, with elevations fluctuating between 25 and 100 m.a.s.l., consisting of extensive variety of conglomerate material that represent ancient
dejection cones of the Copinsnique, Jequetepeque, Las Viejas, Zaña, and Reque rivers. In general, these pampas are desert-like and are practically free of crops; they are equal to the
high terraces created by the rivers in the area.

The continuity of these pampas is interrupted by the trenches eroded by the modern rivers. It is common to find minor terraces on the flanks of the valleys, especially in the inland
sectors, such as the Jequetepeque valley.

Coastal Morphology: The coastal morphology consists of an almost continuous line of ravines, interrupted only by the narrow valleys of the main rivers. The ravines are from 20 to 50
metres high, almost vertical, constituted of conglomerate material belonging to the ancient dejection cones. The beaches are very narrow.

Access

The main access is by land. The journey from the city of Lima to Pacasmayo (682km). By air route is as follows. Lima – Trujillo, 1 hour flight, and by land route 1.5 hours from Trujillo
to Pacasmayo. Another alternative by air route is Lima – Chiclayo, 1 hour flight and from Chiclayo to Pacasmayo 1.5 hours by land route.

Climate

Temperature: This coastal zone has average annual temperatures between 16.5 and 25.0 ºC. The average monthly temperature fluctuates from 19 to 25 °C, data registered in situ at the
Meteorological Station of Cementos Pacasmayo S.A.A.

Precipitation: The precipitations of the zones are very low during the most part of the year, having an annual average of less than 10 mm.

The Relative Humidity is 85% as an annual average.

28
Atmospheric Pressure: The atmospheric pressure fluctuates from 1017 hPa to 1013 hPa in the period of November 2006, with a daily average of 1009 hPa. These pressure values are
related to the influence of the South Pacific Anticyclone.

Cloudiness and sunshine: The cloudiness, generally, in the Pacasmayo area the sky dawns covered with 7/8 high stratus clouds, and at midday it varies to semi-covered with stratus
cumulus, cumulus, cirruscumulus and Cirrus, in other words, with medium and high clouds with 5/8 cloudiness.

Sunshine is high at midday in summer, with an average of 7 hours of solar rays per day. In the winter, the sunshine decreases to 3.5 hours of solar rays, although it is worth noting that
there are clouds that allow the diffuse radiation to pass through.

Physiography

The cement plant area is located in the alluvial pampas, which are along the entire Peruvian coastline, a continuous and uninterrupted strip-, the area of influence of the study has some
characteristics a little different and these are:

The Pampas that have elevations between 25 and 100 m.a.s.l., consisting of extensive variety of conglomerate material that represent ancient dejection cones of the Copinsnique,
Jequetepeque, Las Viejas, Zaña and Reque rivers. In general, these pampas are desert-like and practically free of crops; they are equal to the high terraces created by the rivers in the
area.

The coastal morphology consists of an almost continuous line of ravines, interrupted only by the narrow valleys of the main rivers. The ravines are from 20 to 50 metres high, almost
vertical, and constitute of conglomerate material belonging to the ancient dejection cones. The beaches are very narrow.

Local Resources

The personnel of the plant are divided into Cementos Pacasmayo S.A.A. personnel and contractor personnel. Additionally, the cement plant is located next to Pacasmayo town, most of
the personel live in Pacasmayo and they are taken from Pacasmayo to the cement plant in buses provided by Cementos Pacasmayo.

Electricity is supplied by the national grid and there is a contract with Electro Perú, which supplies energy through a 60 KV transmission line.

Water supply at the Pacasmayo plant is provided by a groundwater well.

29
5. History

5.1. Tembladera quarry

Tembladera quarry is a limestone deposit suitable for different types of cement; the deposit is owned by Cementos Pacasmayo S.A.A.

By means of Director’s Resolution No. 01989-2002-INACC/J dated on November 4, 2002, the National Institute of Cadastre and Mining Concessions granted to Cementos Pacasmayo
S.A.A., the title of the non-metallic accumulation concession called “Acumulación Tembladera” with code No. 01-00018-01-L, whose antiquity goes back to the date of its oldest
integral concession: “Norte No. 1” granted by the Regional Mining Headquarters of Cajamarca by Ministerial Resolution No. 267 of June 30, 1950, in favor of Cementos Portland del
Norte S.A., starting operations as Cementos Pacasmayo S.A. from 1957 to 2013, the year in which Calizas del Norte S.AC.(CALNOR) was constituted. CALNOR started activities from
January 2014 to May 2016. San Martin Contratistas Generales S.A. started activities from October 2016 to the present.

In March 2007, MINTEC Consulting company was hired by Cementos Pacasmayo to perform the 3D modeling of the deposit and a preliminary estimation of the mineral Resources. The
geological information was obtained from 31 diamond drilllings.

The samples obtained were analized in internal and external laboratories to obtain the content of CaO, MgO, Al2O3, SiO2, Fe2O3, SO3, Cl and CO3.

With the information generated, the geological interpretation was made and the structures which control or dominate the the deposit were defined. The geological model was completed
by Cementos Pacasmayo’s QPs in the MineSight software from vertical sections.

In 2019, a campaign of 8 diamond drill holes was carried out to confirm the Resources and Reserves of the east area of the deposit. With the interpretation of information obtained, a
new geological model was prepared. Cementos Pacasmayo oversaw the interpretation and the geological modeling.

30
6. Geological setting, mineralization, and deposit

6.1. Regional geology

The strata of the district of Yonan, province of Contumaza, Cajamarca region consists of Cretaceous Age sedimentary strata of the Quilquiñan Group, Cajamarca Formation, Celendín
Formation, and Recent Quaternary Deposits.

Quilquiñan Group (Ks-q).

The Quillquiñán Group is composed of the Romirón and Coñor formations which together are represented by 100 to 200 m. of shales and marls with some calcareous intercalations.

The Quilquiñán Group overlies the Pulluicana Group and underlies the Cajamarca Formation. Both contacts are concordant. It varies from a thickness of 120 m., in the Chongoyape
quadrangle, to a known maximum of 281 m. in the Tembladera area (Cerro de Chepén). The group consists of dark gray friable shales and bluish marls in thin layers weathering to dark
brown or reddish brown. The Quillquiñán Group is fossiliferous and contains a varied fauna of ammonites, lamellibranchs and echinoidea. BENAVIDES V., (1956) dated it to the Late
Cenomanian-Early Turonian interval because of its ammonite content.

Cajamarca Formation (Ks-c).

The Cajamarca Formation is composed of 100 to 400 m. of limestone whose main outcrops are located in the Cutervo, Chota and Celendín quadrangles. The Cajamarca Formation is
characterized by regular and uniform stratification and grayish or whitish colors.

The formation is limited by concordant contacts with the Celendín Formation in the upper part and with the Quilquiñán Group at the base. In both cases these are sharp contacts with
abrupt lithology changes. The Cajamarca Formation has a fairly uniform lithology throughout the region. It consists of a thin, pure, light brown limestone weathering to whitish or light
gray. The limestone is well stratified in thin to medium layers.

A nearly complete section at Tembladera (Cerro de Chepén) is 111 m thick. (BENAVIDES V., 1956). The Cajamarca Formation is characterized by the content of Coilopoceras newelli
BENAVIDES, from the late Turonian (BENAVIDES, V. 1956); therefore it correlates with the upper part of the Jumasha Formation, from other parts of northern and central Peru.

Celendín Formation (Ks-ce).

The Celendín Formation outcrops only in the Cutervo, Chota and Celendín quadrangles generating a relief of hollows and low terrains characterized by yellowish and brownish tones
produced by weathering. The formation concordantly overlies the Cajamarca Formation. The Celendín Formation is composed of thin layers of clayey nodular limestone, intercalated
with marls and shales. In general, the marls and shales predominate over the limestones. The ammonites contained in the Celendín Formation indicate that the unit belongs to the
Coniacian and early Santonian (BENAVIDES, B. 1956). The Celendín Formation correlates with other outcrops of the same unit in the north and center of the country and with the top
of the Chota Formation in the Selva region.

Recent Quaternary Deposits.

Along the coastal strip and the Andean foothills, there are abundant alluvial and fluvial deposits made up of conglomerates, gravels, sands, silts, etc. forming the floors of the valleys and
ravines located between San Pedro de Lloc, and Motupe, where the main population centers and farming areas of the area are located.(Source: Bulletin No. 38 Series A. National
Geological Chart by John Wilson - 1,984).

31
 Table 10 Regional stratigraphic column

6.2. Local Geology

The Tembladera quarry hosts a limestone deposit with a grade suitable for cement production. The deposit is contained within the so-called Cajamarca Formation, belonging to the
Upper Cretaceous (Turonian floor, around 90 MA). This formation overlies the Quilquiñan Group and underlies the Celendín Formation.

Sedimentary rocks corresponding to the Cajamarca Formation and the Upper Cretaceous Celendín Formation outcrop in the area as described below. This formation overlies the
Quilquiñan Group, and underlies the Celendín Formation.

32
Mesozoic

Quilquiñan Group (Ks-q).

Composed by a thin stratification of marly shales, thin layers of marly limestones, and marl nodules in thin layers, dark brown in color, it is not mineable. This formation is the limit of
the Cajamarca Fm. limestones. Which represents the oldest rocks in the area, they are found outcropping in the northern part of the area of the quarry.

Cajamarca formation (Ks-c)

Composed of thin limestones, well stratified, in strata of thin layers, with a color ranging from dark to light gray, these limestones are mined for cement production because they meet
quality standards. This formation lies concordant with the Quilquiñan group. The average strike of these strata is N 75° W and dip varies from sub-horizontal to 50º. It has a thickness or
power of 230 meters.

Celendín formation (Ks-ce)

It presents an interstratification of thin layers of light gray limestones, cream to dark brown nodular marly limestones and shales. This formation outcrops on the south-central side of the
quarry, in a reduced area, with a thickness of 35 meters, which underlies concordant to the Cajamarca Fm. These types of limestones were considered as waste rock for not complying
with the quality standards.

Cenozoic

In the quarry, intrusions of andesitic dikes of plutonic formation can be found, which intrude longitudinally in very localized areas of the limestone deposit rock mass. These dykes
present aphanitic to porphyritic texture, with some plagioclase crystals visible in greenish gray to whitish matrix, showing moderate to high alteration, moderate poly directional
fracturing degree.

Quaternary Deposits

Along the Andean foothills there are abundant alluvial and fluvial deposits made up of conglomerates, gravels, silty sands, etc. In the Tembladera quarry area, these deposits are
restricted to the Jequetepeque riverbeds, stream mouths and some terraces.

33
 Table 11 Local stratigraphic column of the Tembladera quarry

Intrusive Lithologic
System Series Stratigraphic Unit
rocks Description
Fluvial Deposit Qr-fl Fluvial origin
Quaternary Recent
Alluvial Deposit Qr-al Alluvial origin
Intrusion of andesitic dykes
Tertiary Lower Andesite T-an longitudinally into the deposit rock
mass.
Thin layers of clayey nodular limestone,
Celendin Formation Ks-ce
interbedded with marls and lutites.
Limestone of marine origin of whitish to
Cretaceous Upper Cajamarca Formation Ks-c
light gray color.
Lutites and marls with some calcareous
Quilquiñan Group Ks-q
intercalations.

6.3. Characteristics of the deposit

Table 12 shows the main characteristics of the deposit.

Table 12 Characteristics of the Tembladera deposit

Average depth (m)

Average Total
Quarry Thickness (m) Top Lower Continuity
Width (m) Length (m)
Elevation elevation
It is a sedimentary deposit whose continuity is
Tembladera 800 1900 230 720 420 controlled by a folded structure (syncline) whose
limits are marked by its flanks.

34
Figure 6 Geological Section of the Tembladera quarry

35
7. Exploration

7.1. Drilling

Cementos Pascamayo’s exploration activities at the Tembladera quarry property involve drilling to adequately characterize the geology.

Table 13 Drilling campaigns in Tembladera quarry

Drilling Campaign Date N° of holes Hole Type

1 2007 31 Drill Hole
2 2019 8 Drill Hole

36
Figure 7 Tembladera quarry, drilling hole location map

37
7.2. Hydrogeology

In 2021, Cementos Pacasmayo hired Magma Consulting S.A.C., a company with experience in mining activities, to update the hydrogeology through hydrogeological surveys. The
previous hydrogeological study was developed by the company Walsh Perú S.A. As part of Magma Consulting’s portfolio, it provides support services in geological studies, geological
risk, geophysics, geotechnical investigation, geotechnical design, and geomechanics.

The technical basis for updating the hydrogeological studies was the research developed by Walsh Peru S.A. during 2019.

The scope of this work was to interpret the hydrogeological environment, the morphology of the basin, lithology, piezometric levels, recharge and discharge zones.

The hydrogeological study included the evaluation of 5 piezometers. Magma Consulting S.A.C identified that the piezometers need maintenance to be operational for the measurement
of groundwater flows.

According to Magma Consulting S.A.C. the groundwater is 300 m above the current topographic elevation. Figure 8 obtained from the updated hydrogeological study shows the
topography of the quarry and the water table level.

38
 Figure 8 Water level at the Tembladera quarry

The update study evaluated the inventories of piezometers, surface water flows and inventory of natural springs (Walsh Perú S.A., 2009)

The water quality assessment considered 10 monitoring points. The evaluation included the analysis of EC, TDS, S, pH, T comparing the results obtained in 2009 and 2021.

The monitoring point PMA-12 does not present flowing surface water, indicating that the seasons of the year during the 2009 investigation is different from 2021.

7.3. Geotechnical studies

During 2021, Cementos Pacasmayo updated the geotechnical studies of the Tembladera quarry.

Cementos Pacasmayo S.A.A. hired Magma Consulting S.A.C. to carry out the “Geomechanical/Geotechnical Study of Tembladera quarry”.

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The general objective of the study was to establish the maximum and minimum slope bank angles and inter-bank angles based on stability and kinematic analysis. Likewise, the specific
objectives were:

- To carry out a geotechnical geological field research based on, geomechanical mapping, logging of existing geotechnical boreholes, in situ testing.

- Determine lithological and structural characteristics.

- Identify relevant structures that can affect slope design.

- Perform laboratory tests to determine the physical and strength characteristics of the rock.

In 2007, the DCR Ingenieros S.R.Ltda. determined the geotechnical guidelines that grouped the area into seven geotechnical zones. For the SW, SSW and S, the final slopes will have a
total height of approximately 80 m. For the E, NE, N and NW sectors, the final slopes will have a greater total height, approximately 270 m.

Table 14 DCR Ingenieros S.R.Ltda geotechnical zones

Zone Slope Angle Bank Slope

(°) Angle (°)
1 48 70
2 48 60
3 43 60
4 37 52
5 45 70
6 43 65
7 45 70

In February of this year, the mine planning area of CPSAA has prepared the “Long-term mining plan for the Tembladera quarry”, which has contemplated substantial optimizations and
updates, as well as the update of the geomechanical-geotechnical study associated with the mining plan for the final pit design.

Magma Consulting’s field investigation work was carried out in two stages. The first stage included preliminary works such as mobilization of personnel, medical examinations,
induction talks, equipment transfer, etc.

This work was carried out from July 1 to July 6, 2021, following all the procedures and standards provided by Cementos Pacasmayo S.A.A.

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The second stage was the geomechanical field research which was developed between July 7 and 21, 2021 and considered the execution of geological and geotechnical mapping,
execution of sixty-seven (67) geomechanical stations, geotechnical logging of eight (8) diamond drill holes, execution of eighty-seven (87) point load tests, and twenty-two (22) tilt tests.

Based on the geological model of Cementos Pacasmayo S.A.A. and the results of the geotechnical geological mapping performed by Magma Consulting S.A.C. for the geotechnical
study, it was determined that the final slopes are mainly composed of limestone rocks of the Cajamarca Formation.Therefore, the Cajamarca Formation was subdivided into 3 sub-units;
Cajamarca A, Cajamarca B and Cajamarca C.

During the geotechnical field research, an insitu testing campaign was undertaken to obtain the resistance of the intact rock and the resistance of the discontinuities. The tests consisted
of Point Load Test (PLT) and tilt tests.

Table 15 Tilt Test Results

Drill Geotechnical unit N° of samples Deep Average

(°)
H-10 UG-B/UG-C 6 22.63 - 122.54 35
H-21 UG-C 3 50.2 - 180.85 35
H-29 UG-C 3 124.4 - 239.60 32
H-33 UG-B/UG-C 5 7.33 - 302.20 34
DDH-TEM-01 Dyke/UG-B/UG-C 3 92.85 - 108.70 35
DDH-TEM-02 UG-C 3 53.1 - 76.4 354

After that rock samples were collected and taken to the rock mechanics laboratory of Geomecánica Latina S.A. (hereinafter, GEOMEC). GEOMEC is a laboratory located in the city of
Lima, with vast experience in the sector and certified by INACAL (National Institute of Quality).

Magma Consulting S.A.C performed dry and saturated density, apparent porosity and absorption tests to determine the physical properties of the rocks that outcrop in the study area,
following the guidelines described in the standards (ASTM D-6473/ D-2937).

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 Table 16 Physical Properties of Rocks

Sample Code CTR1 CTR7 CTR9 CTR10

Litology Fine limestone Andesite Coarse limestone Fine limestone
Geotechnical unit UG-A Dyke UG-C UG-A
Dry density 2.60 2.70 2.61 2.63
(gr/cm3)
Wet density 2.61 2.72 2.62 2.64
(gr/cm3)
Specific gravity 25.59 26.67 25.71 25.94
(KN/m3)
Moisture 0.22 0.36 0.41 0.20
Porosity 0.62 1.02 1.12 0.56

Magma Consulting S.A.C conducted tests to estimate the unconfined compressive strength of the intact rock. Seven (07) simple compressive strength tests were performed on each of
the samples of the rock outcrops in the area following the procedures described in ASTM D-7012/ D-2938 standards.

Table 17 Simple compressive strength

Sample Code CTR1 CTR2 CTR3 CTR6 CTR7 CTR8 CTR10

Lithology Fine limestone Coarse Coarse Fine limestone Andesite Andesite Fine limestone
limestone limestone
Geotechnical unit UG-A UG-C UG-C UG-A Dyke Dyke UG-A
Point load 91.69 147.29 83.22 127.88 272.99 67.23 109.35
(kN)
UCS 66.82 107.34 60.64 93.01 198.94 48.99 79.69
(MPA)
Time 111.6 194.9 100.2 161.1 376.0 74.6 134.5
(s)
Scale High Very High High High Very High Moderate High
(ISRM)

To evaluate the behavior of stresses and deformations in the rock mass, the elastic constants test was carried out to calculate Young’s modulus (E) and Poisson’s ratio (v); these values
will be used for the calculation of excavations. Four (4) elastic constants tests have been carried out. This test follows the procedures described in ASTM D-7012/ D-3148.

Table 18 Summary of Elastic Constants

Sample CTR1 CTR2 CTR3 CTR6

Lithology Fine limestone Coarse limestone Coarse limestone Fine limestone
Geotechnical unit UG-A UG-C UG-C UG-A
Young’s modulus (E) 28.23 27.14 36.69 35.59
Young’s module (GPa) 36.85 35.25 42.71 32.05
Poisson’s ratio “v” 0.17 0.17 0.16 0.15

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The summary results of the rock mass quality are presented in Table 19.

Table 19 Rock mass quality summary

Type of investigation Geotechnical UCS in Situ (Mpa) RMR Type Scale GSI
unit (RMR)
Geomechanical Mapping Cajamarca A 52.52 60 III-A Fair Rock A 55
Cajamarca B 74.01 62 II Good Rock 57
Cajamarca C 85.17 62 II Good Rock 57
Dyke 116.62 64 II Good Rock 59
Quilquiñan 57.52 45 III-B Fair Rock B 40
Geotechnical Logging Cajamarca A - 65 II Good Rock 65
Cajamarca B 42.59 62 II Good Rock 62
Cajamarca C 73.56 66 II Good Rock 66
Dyke 101.93 54 III-A Fair Rock A 54
Quilquiñan 64.89 65 II Good Rock 65

According to the current conditions identified in the Tembladera quarry, the evaluation of the physical stability concludes that the structure is stable for static and pseudo-static loading
conditions, with safety factors that are above the minimum recommended for operating conditions; Additionally, ten structural domains designated as Blocks were identified. According
to the structural analysis performed in the domains, Block 01, Block 02, Block 03 and Block 04 located to the north, similar discontinuity systems predominate, where one of the
discontinuities is stratification. In the domains located to the south, Block 07, Block 08, Block 09 and Block 10 show discontinuity systems different from those to the north. Block 05
and Block 06 are located to the east and show a variation in the stratification directions.

Finally, the geotechnical design criteria determine a single bench height of 10 m, inter-ramp angles (IRA) varying between 35° and 45°, with sidewalk widths ranging from 5.04 m to
6.40 m. The bank angle (BFA) is between 47° and 70°. The bench angle (BFA) is between 47° and 70°.

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The conclusions of the geomechanical study obtained were as follows:

- The design evaluated in this study is stable, since the analyses show safety factors greater than the minimum acceptable.

- At the structural level, the main control is formed by the dip of the Cajamarca Formation limestone strata.

- At the intact rock level, the main strength control is the texture of the Cajamarca Formation limestones.

- The rock massifs are mainly cut by reverse faults resulting from compressional tectonics, the location of these faults gives different degrees of fracturing to the rock massifs.

- There are andesitic dikes, some of which have been emplaced along faults.

- The formations present in the study area are mainly the Cajamarca Formation of the Upper Cretaceous and the Quilquiñán Group of the Middle Cretaceous.

- The study area is located in a zone of Cretaceous folded rocks.

- The most important structural element in the study area is a WNW-ESE syncline, which defines the strike and dip of the stratification of the calcareous packages.

- The characterization of the materials carried out in this study was consistent with the characterization carried out by DCR Ingenieros S.R.Ltda. in 2007.

- The area is characterized by a dry climate, with sporadic rainfall from January to March.

- Dry conditions were observed on the slopes because there was no evidence of water holes or humidity during the visit.

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8. Sample preparation, analyses, and security

This Chapter describes the preparation, analysis and security of the samples used for the geology, quarry, and cement plant operations.

8.1. Geology and quarry

Cementos Pacasmayo S.A.A. has implemented international standards in all its operations such as quarries and plants. The ISO 9001 standard has been implemented and certified since
2015. The certification is renewed annually through an external audit.

The SSOMASIG area (Security, Occupational Health, Environment and Management Systems), is part of the team that determines and gives the necessary support for the maintenance
of the ISO 9001 (Quality) and the scope is in all the company’s activities.

Table 20 shows the list of protocols for quality assurance and quality control.

Table 20 Protocols of the Geology area

Activity Protocol Code Review

DRILLING WITNESS CUTTING OM-GL-PRT-0021 R0
SAMPLE PREPARATION FOR PHYSICOCHEMICAL
Sample preparation methods ANALYSIS OM-GL-PRT-0022 R0
SAMPLE SELECTION FOR GEOMECHANICAL
ANALYSIS OM-GL-PRT-0036 R0
DRILLING INITIATION AND SUPERVISION OM-GL-PRT-0005 R0
TOPOGRAPHY AND MEASUREMENT OF DRILL HOLE
DEVIATIONS OM-GL-PRT-0007 R0
SAMPLE RECOVERY OM-GL-PRT-0008 R0
SURVEY AND DELIVERY OF COLLARS OM-GL-PRT-0009 R0
RECEIPT AND STANDARDIZATION OF DRILLING
CORES OM-GL-PRT-0012 R0
PHOTOGRAPHIC RECORD OM-GL-PRT-0013 R0
PHOTOGRAPHY OF TEST PITS OM-GL-PRT-0014 R0
GEOLOGICAL LOGGING OM-GL-PRT-0015 R0
Quality control procedures LOGGING OF TEST PITS OM-GL-PRT-0016 R0
GEOTECHNICAL LOGGING OM-GL-PRT-0017 R0
SAMPLING IN TEST PITS OM-GL-PRT-0018 R0
FIELD-QUARRY SAMPLING OM-GL-PRT-0029 R0
ORE STOCK SAMPLING OM-GL-PRT-0030 R0
BLASTHOLE SAMPLING OM-GL-PRT-0032 R0
SAMPLE ANALYSIS FOR DENSITY OM-GL-PRT-0020 R0
QAQC PROGRAM OM-GL-PRT-0023 R0
ORE CONTROL OM-GL-PRT-0035 R0
ORE CONTROL POLYGON FIELD MARKING
ORE CONTROL PLAN
TRANSPORT OF CORES OM-GL-PRT-0010 R0
TRANSPORT OF SAMPLES TO THE LABORATORY OM-GL-PRT-0024 R0
REGISTRATION AND SHIPMENT OF MATERIAL OM-GL-PRT-0031 R0
Security CORE-SHACK STORAGE OM-GL-PRT-0034 R0
DATA ASSAYS INPUT - DATASHED OM-GL-PRT-0027 R0
CHANNELING OF GEOLOGICAL INFORMATION OM-GL-PRT-0028 R0
DATABASE MANAGEMENT OM-GL-PRT-0025 R0
PROGRAMMING OF COLLARS OM-GL-PRT-0001 R0
PROGRAMMING OF TEST PITS OM-GL-PRT-0002 R0
PREPARATION OF DRILLING RIGS OM-GL-PRT-0003 R0
INSTALLATION OF DRILLING MACHINE OM-GL-PRT-0004 R0
Others PREPARATION OF TEST PITS OM-GL-PRT-0006 R0
HOLE ENDING OM-GL-PRT-0011 R0
REPORT WRITING - FIELD VISIT OM-GL-PRT-0026 R0
LIMESTONE MATERIAL MOVEMENT REPORT AND
LOG - SGCP OM-GL-PRT-0033 R0

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8.1.1. Preparation of samples, procedures, assays and laboratories

Samples obtained from the drill holes are placed in holders to be duly coded, cut, bagged and sent to the laboratory at the Pacasmayo plant and are occasionally sent to an external
laboratory following the company’s procedures.

Certimin S.A. is used as an external laboratory for chemical analysis. Certimin S.A. is a Peruvian laboratory that is certified in ISO 9001, ISO 14001, ISO 45001, NTP-ISO/IEC 17025
Accreditation, and has a membership in ASTM. This laboratory has modern facilities for the development of mining services associated with the cement industry and technical support
in the geochemical field for national and international companies.

For the limestone samples, the laboratory analyses evaluate CaO, MgO, Al2O3, SiO2, Fe2O3, SO3 and Cl. Once received in the laboratory, the properties of the limestone to be used in
cement production are analyzed. The Samples from the 2019 campaign were sent to Certimin S.A. Table 21 shows the methods used for limestone analysis.

Table 21 Methods of analysis for the limestone from the Pacasmayo plant laboratory

Analytical Method used Description

Various elements P-CC-P-15 Limestone samples from Pacasmayo Plant - Analysis by X-ray equipment.
% Moisture P-CC-P-03 Limestone samples from Pacasmayo Plant - X-ray analysis.
LOI P-CC-P-03 Limestone samples from Pacasmayo Plant - Chemical Analysis of Crude and Raw Materials.

8.1.2. Quality Assurance Actions

Based on the information and samples from the 2019 drilling campaign where limestone samples were obtained, this year Cementos Pacasmayo S.A.A. performed an audit for the
validation of results as part of the quality assurance and quality control (QAQC) activities. For this purpose, it hired the Wiracocha Mining Services S. R.L., who conducted a re-
sampling of a group of drill holes executed in Tembladera quarry in the past. Also, the work included the revision of the QAQC program. The samples and controls of this program were
analyzed at Certimin S.A., an external laboratory.

The analysis of the results obtained for the different samples and controls inserted show a confidence level, with an acceptable bias that are within the standards of the sampling theory,
which guarantees the accuracy of the results in the initial sampling, so it is concluded that both the preparation and analysis of the samples obtained initially in the laboratory of
Cementos Pacasmayo S.A.A., has reliable processes and procedures.

8.1.3. Quality Plan

Cementos Pacasmayo S.A.A. has implemented QAQC protocols for the development of exploration and exploitation activities in the Tembladera quarry to ensure the quality of the
information that allows the estimation of Resources and Reserves of the deposit.

The quality plan implemented by Cementos Pacasmayo for the quarries includes the insertion of blanks, duplicates and standards, in order to control the precision, accuracy and
contamination in the samples.

Table 22 Quality Plan of the Tembladera quarry

Blanks Duplicates Standards Remark

1 control sample for each batch 2 control sample for each 1 control sample for each batch Cementos Pacasmayo
of 20 samples. batch of 20 samples. of 20 samples. protocol ¨OM-GL-PRT-0023-R0¨.

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8.1.4. Sample security

Cementos Pacasmayo S.A.A. has implemented QAQC protocols for the development of exploration and production activities in the Tembladera quarry in order to ensure the quality of
the information that allows the estimation of Resources and Reserves of the deposit.

Cementos Pacasmayo S.A.A has a specific area for the storage of the samples obtained during the drilling campaigns; the samples are properly stored to preserve their quality.

Figure 9 Photographic record of core shack

The necessary materials for storage and transport of the samples were implemented. Sampling cards were also implemented with information on the name of the project, name of the
borehole to be sampled, date of sampling, sampling interval, sampling manager, sampling and type of sample or control sample.

All samples were labeled, and a photographic record is available. The photographic record of each sampling bag is made together with the weighing of the sample.

8.1.5. Chain of custody

Cementos Pacasmayo has implemented actions to ensure the physical security of samples, data, and associated records; the traceability of the sample from its generation to its analysis
and subsequent conservation of rejects and pulps. At the Tembladera quarry, core samples are duly stored in the coreshack.

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 Figure 10 Photographic record of the sampling intervals

8.1.6. Qualified person’s opinion on quarry QAQC

In the author’s opinion, Cementos Pacasmayo has been complying with the international standards of ISO-9001 (Quality) since 2015 and implemented Quality Assurance and Quality
Control (QAQC). Cementos Pacasmayo S.A.A. has used a QAQC check program comprising blank, standard and duplicate samples. The QAQC shipping rate used complies with
accepted industry standards for insertion rates, as well, the actual sample storage areas and procedures are consistent with industry standards.

Protocols in the different exploration and production processes are strictly complied with. There is information on sample preparation methods, quality control measures, sample
security, and these results are accurate and free of significant error. The information in this report is adequate for use in the construction of the Geological Model, Resource Estimation
and Reserve Estimation.

8.2. Pacasmayo plant

8.2.1. Samples preparation, procedures, assays and laboratories

Cementos Pacasmayo S.A.A. has a quality control plan for each of its operations that is part of the quality system.

As part of the quality control plan (P-CC-D-03 VE02 Quality control - cement and lime), samples of raw materials such as limestone, sand, clay, and iron are evaluated in the laboratory
at the Pacasmayo plant, where they are analyzed to determine the chemical composition of each material for cement production.

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The procedures applied are the chemical analysis of raw materials and crude, sampling of clinker, slag and pozzolana, physical testing of cement, chemical analysis by wet route for
clinker and cement, preparation of coal samples, physical testing for additions, analyses, and operating procedures in the X-ray area, which are based on ASTM, NTP (Peruvian
Technical Standard) and ISO standards.

8.2.1.1. Raw materials sample preparation

For preparation of samples, it is considered the collection and preparation of samples procedure, which consists of primary and secondary crushing, and reduction of the sample by the
quartering method, then the sample is pulverized in the ring mill.

8.2.1.2. Analysis of Laboratory

The laboratory at Pacasmayo plant has implemented the ISO 9001 standard; also, it has calibrated equipment, with a calibration and maintenance program established by the laboratory
area. The main equipment in the laboratory at Pacasmayo plant are the XRF fluorcence equipment and the compressive strength press, which are maintained annually.

The tests for air content, fineness, autoclave expansion, compressive strength and setting time, and vicat are made for all types of cements. The autoclave contraction, 14-days mortar
expansion, 6-months sulfates expansion, SO3, MgO, loss on ignition, insoluble residue, and C3A and 2 C3A+ C4AF tests only apply to some specific cements.

8.2.2. Quality Assurance Actions

The sampling plan P-CC-D-04 VE04 Sampling plan and frequency of tests and data verification applies to the processes of raw material reception, raw material crushing, coal milling,
raw meal milling, clinkerization, cement milling, lime production, lime milling and lime dispatch.

Table 23 shows the tests and frequency for each stage of the process.

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 Table 23 Tests and frequency for each stage of the process

Stage Tests Frequency

Receiving raw materials Chemical analysis by X-ray, granulometry and 2 samples per hour up to 1
humidity. time per day.
Crushing raw materials Chemical analysis by X-ray. 2 samples by shift or
depending on the material.
Coal grinding Chemical analysis by X-ray, humidity, calorific 1 to 2 samples per shift.
value and proximate analysis.
Crude grinding Chemical analysis for X-ray, Humidity, R70 and Each 1 hour up to 2 hours.
R170.

Clinkerization Chemical analysis by X-ray. Each hour up to 2 hours.

Cement and other grinding Chemical analysis by X-ray, pozzolana, IAP Each 1 hour up to 1 time
pozzolana, IAP Slag, Blaine, R325, R450, loss on per shift.
ignition, insoluble residue and chemical/physical
tests.
Packaging of cement X-ray, PF and R.I. Chemical analysis. 2 samples per shift.

8.2.2.1. Finished Product Control

The controls for finished products include tests, frequency and a person in charge. The tests made are magnesium oxide, sulfur trioxide, loss on calcination, insoluble residue, expansion
in autoclave, blaine, compressive strength.

8.2.2.2. Control of non-conforming product

The non-conforming products must be identified, documented, evaluated, controlled, separated and disposed of, in order to prevent their non provided use or delivery, according to that
established in the procedure. The treatment that can be given to a non-conforming product is reprocessing, reclassification of the material, acceptance by authorized personnel,
acceptance by concession of the client and controlled dosage.

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8.2.2.3. Validation of Silos

It applies to all products manufactured at the Pacasmayo plant, with the objective of ensuring that the cement dispatched complies with the requirements established in the Technical
Specifications and Requirements of the Technical Standards.

8.2.2.4. Density

The density analysis in raw materials of coarse materials (crushed) is determined in a recipient of known volume (bulk density), the material is added in a recipient previously tared, is
compacted smoothly, is made level and is weighed on a precision balance. The values are reported in weight/volume. For cement, fine materials are analyzed through the Le Chatelier
bottle, whose value is used for the quality certificate issued to the customers.

8.2.2.5. Quality Assurance (QA) and Quality Control (QC)

The QAQC program contains methods that are applied to regulate the quality of the samples obtained in the operations of receiving minerals, cement grinding, crude grinding, crude
feed, clinker production, raw material for crude and coal grinding by Cementos Pacasmayo S.A.A.’s personnel in this section, to obtain the quality control results.

The main procedures used for quality control are:

● P-CC-PCC-04, Quality control parameters – Raw Materials, limestone input.

● G-ASC-EST-01, Pozzolana technical specification.

● G-ASC-EST-02, Slag technical specification.

● P-CC-PCC-02, Quality control parameters in the receiving minerals in the plant.

● P-CC-PCC-03, Quality control parameters – Cement.

● P-PRD-PCC-01, Quality control parameters – Crude grinding to Kiln 2 and Kiln 3.

51
 ● P-PRD-PCC-02, Quality control parameters – Crude feed to Kiln 2 and Kiln 3.

● P-PRD-PCC-03, Quality control parameters – Clinker production.

● P-CC-PCC-05, Quality control parameters – Raw material for crude.

● P-CC-PCC-06, Quality control parameters – Coal grinding.

8.2.2.6. Quality Plan

The quality plan implemented by Cementos Pacasmayo for the cement plants includes the insertion of blanks, duplicates and standards, in order to control the precision, accuracy and
pollution in the samples.

Table 24 Quality Plan of Pacasmayo cement plant

Blanks Duplicates Standard Comment

02 2937 per year 11 for cement (NIST) Blanks only apply by performing spot checks by Classical
05 for coal methods.

8.2.2.7. Quality control parameters

The control parameters of the materials received at the Pacasmayo plant are:

Table 25 Quality control parameters for materials received at the Pacasmayo cement plant

Materials Content analysis

Limestone CaO, S, Al2O3, MgO and humidity.
Others Fe2O3, SO3, Humidity, Al2O3, SiO2, Humidity and Pozzolanic activity
index, Slag activity index grade 120 (7 days), Slag activity index grade
120 (28 days), caloric value, ash, humidity, S and Cl.

Likewise, the quality control parameter for coal grinding is humidity and for Clinker it is free lime, C3S, C3A and liter weight (bulk density), depending on the type. In the case of C3S
and C3A, stoichiometric formulas accepted in the cement industry are used.

The cement quality control parameters are: SO3, MgO, Free Lime, Chlorides, Insoluble Residue, Loss on ignition R-325, Specific surface, Compressive strength at day 1, Compressive
strength at day 3, Compressive strength at day 7, Compressive strength at day 28, Initial setting time, and Final setting time.

52
8.2.3. Security of the samples

Cementos Pacasmayo S.A.A. has implemented QAQC protocols for the development of cement production activities at the Pacasmayo plant, to ensure the quality of the information that
allows the Estimation of the Resources and Reserves of the deposit.

Sample preparation methods are Sample collection and preparation, Clinker, slag and pozzolan sampling and Coal sample preparation.

The testing procedures are: Chemical analysis of crude and raw materials, analysis by X-ray equipment, X-ray laboratory operation, physical tests for additions, physical chemical
analysis for coal samples, physical tests for cement, wet testing of clinker and cement, and quality plan.

Likewise, the control parameters are raw material parameters, pozzolana, slag, mineral reception parameters, clinker production parameters, raw material parameters for crude; crude
feed parameters, crude milling parameters, coal milling parameters and cement milling parameters.

8.2.4. Qualified Person’s Opinion on cement plant QAQC

Cementos Pacasmayo S.A.A. has a Quality Assurance, Research and Development area that ensures compliance with the requirements for finished products specified in Peruvian
technical standards, which are traceable to the standards of the American Society for Testing and Materials (ASTM).

For quality assurance, the control parameters have been defined from the raw materials, products in process and finished products. Compliance with the requirements based on indicators
of the quality assurance management system for the 2021 period is 0% of nonconforming products in the market. Likewise, the level of customer satisfaction (D-COM-P-01 VE09
Customer satisfaction) is 80%.

In this sense, in the author’s opinion, the quality assurance system at the Pacasmayo plant, which includes preparation methods, procedures, analysis and security, complies with the best
practices in the industry, thus ensuring that the end customer has confidence in the quality level of the products marketed by Cementos Pacasmayo.

53
9. Data verification

This Chapter shows the data verification activities for the geology, quarry and cement plant areas.

9.1. Geology and quarry

9.1.1. Data Verification procedure

CPSAA has an area specialized in the compilation, verification and standardization of information for the geological database. Its main function is the validation of the data to be used in
the estimation of mineral Resources and Reserves. For the proper management of the information, internal protocols have been implemented, which are subject to internal audits and are
supported by the DataShed software.

9.1.2. Data collection

The Data collection applies to exploration activities. For diamond drilling, the process flow for planning and executing drilling, survey methods for reporting drill collars and ddh /
verification of the quality of information and recovery process of the core information. In addition, for geological sampling activities, the processes flowsheet, validation and consistency
of sample information, sample preparation and testing, density, registration process and digital photographic storage are used.

9.1.3. Management and Validation of Database

The stages for management and validation of database are the recovery, processing and storage of the database, which includes database development process flow, information
standardization and integration process, information storage strategy, appropriate database technology, structure and practicality of the database system that allows a fast and flexible
access and input of information, and validation of chemical results, which includes the QAQC report.

9.1.4. Tracking Data

The consistency between the database records and the original registry was verified by the QPs in 2021. No differences were detected between the database and the log files. A digital
copy of all records is kept as a pdf file. Digital certificates support the chemical analysis data.

The collection of the information considered the following: Drill collars, Survey, Lithology, Samples and Assays. The data is collected on the DataShed software.

54
9.1.5. Validation of Data

Collar, Survey, Lithology and chemical analysis data were imported and processed with DataShed software.

The results indicated that the database had adequate integrity for Resource estimation. This software verifies that the data entered from each sample or reported by the external laboratory
is correct for input into the Resource model.

The team followed the defined processes for information flows to support Resource and Reserve estimation. The qualified person followed the same process as a means of verifying and
validating. It has been found that the validated information is congruent in the interpretations of the same, with which the fundamental base geological models were generated for the
estimation of the Resources.

No findings have been found that could invalidate the estimation of the Resources and Reserves of the unit.

9.2. Pacasmayo plant

The Quality Control Plan contemplates the following aspects: PDCA cycle, customer, person in charge, activities, risks, control methods, monitoring, measurement, analysis, evaluation
and documentary evidence.

The PDCA cycle is:

● Plan, during this stage the following activities are considered: determination of characteristics of raw materials, product in process and finished product, elaboration of control
and matrices parameters and determination of activities and results assurance program.

● Do, during this stage the following activities are considered: verification and compliance with the requirements and matrices, sampling and preparation.

55
 ● Check, during this stage the following activities are considered: chemical analysis by XRF, chemical analysis, physical analyses, recording of results, taking action on non-
conformities.

● Act, during this stage the following activity is considered, acting to improve.

● The Quality Assurance Plan is applied to the following customers: production, quarry, provisions chain and external customer.

9.2.1. Data verification procedures

The XRF analysis, chemical analysis and physical analysis are made to verify the results of the samples, as part of the Quality Control Plan.

The data resulting from these three types of analysis are recorded and evaluated - to determine whether or not they comply with the technical specifications.

Data verification procedures include internal audits, check lists, statistical tables, reports, validation of data, certificates, interlaboratory test reports and compliance with quality
protocols.

9.2.2. Data validation

Cementos Pacasmayo S.A.A. through its quality assurance and control area participates in evaluations with international laboratories such as CCRL/ASTM (Concrete and Cement
Reference Laboratory), which is an international reference laboratory for construction materials, and Xamtec of Colombia, an international interlaboratory, in order to report reliable
data.

The Quality Control laboratories endorse their analysis methods by participating in interlaboratory analysis programs, which compare the results with national and foreign laboratories.
The methods of analysis compared are X-ray fluorescence (XRF) and the physical cement tests, which are the methods used to control cement quality. In all the results of these
interlaboratory programs, the companies always obtain the best results for each test.

9.2.3. Qualified Person’s Opinion on cement plant

In the author’s opinion, the methodologies used for collecting and processing data at the cement plant are accurate and free of important errors. The information can be used within the
models’ construction and estimates for cement production. Considering that the analyses of the main chemical components and physical properties of the raw materials and final
products are made in external laboratories, the quality of the information is adequate for preparing mineral resource and reserve estimates.

56
10. Mineral proccessing and metallurgical testing

10.1. Nature of Testing Program

Cementos Pacasmayo S.A.A. has a Quality Assurance and Research and Development area. The objective of these areas is to develop, evaluate and research procedures for the
development of products at laboratory level and their scaling up to industrial level. Another objective is to identify other additions that can substitute for clinker: slag, pozzolana, fly ash,
calcined clays, etc., to reduce their environmental footprint and the cost of cement production.

They have also implemented their own procedures for the preparation, review, issuance and control of test reports associated with cement production.

The laboratory at Pacasmayo plant has implemented the ISO 9001 standard; Cementos Pacasmayo has implemented a Research and Development laboratory located at the Pacasmayo
plant to evaluate technical aspects in cement plants and quarries.

Cementos Pacasmayo applies the procedures:

● P-ID-P-04 Preparation of raw materials.

● P-ID-P-05 Sampling of cement and raw materials.

● P-ID-P-13 Input, storage and disposal of samples.

For its operations at the Pacasmayo plant to have a representative sample of its raw materials and cement, Cementos Pacasmayo performs the analysis of its samples in its internal
Research and Development Laboratory located at the Pacasmayo plant.

A permanent control is carried out with other laboratories to give greater reliability to the results. Likewise, interlaboratory reports are issued with external laboratories such as CCRL
(Cement and Concrete Reference Laboratory), which is a reference laboratory for construction materials at international level, and Xamtec from Colombia, an internal interlaboratory.

57
An important percentage of Research and Development activities are focused on evaluating different ratios between clinker-mineral additions that provide the best functional
characteristics to our products and at the same time keep balance with the benefits generated for the company. Whether it is a requirement or an own initiative oriented to supply any
previously identified need, the laboratory tests are developed with the objective to generate an operational benefit to the company.

The R&D Laboratory located at the Pacasmayo plant provides analysis and research services to all of the company’s cement plants.

10.2. Cement Manufacturing Test Results

At the Pacasmayo plant, the studies conducted in the Research and Development Laboratory and the Quality Control area include: reduction of the clinker/cement factor, substitution of
slag for pozzolan, and substitution of fossil fuels for rice husks, the latter at the Rioja plant. The clinker/cement factor of the main cements with additions is 0.72.

The substitution of slag from blast furnace by natural pozzolanic materials was also analyzed, with the objective of improving the company’s carbon footprint and reducing operating
costs. The main test was the analysis of pozzolanic activity at laboratory level and subsequently at industrial level. By 2022, the objective is to further reduce slag consumption and
further reduce CO2.

10.3. Adequacy of the Test Data

The Research Laboratory issues technical reports following the criteria of international standards to the operations area, which evaluates the convenience of industrially implementing
the tests and validating what has been reported at laboratory level.

The reliability in the veracity and the adequacy of the data reported by the area, is based on the technical competition of the area’s collaborators, which is regularly evaluated through
different internal and external interlaboratory programs.

58
11. Mineral Resources estimates

The geological model was developed and structured using Leapfrog software. The model solids were generated considering the lithology of the deposit based on the geological
characteristics and its quality.

Due to the nature of the deposit and its stratified nature and occurrence, the geological model was interpreted with the help of 56 E-W cross sections and 82 N-S sections, spaced every
20 meters.

Additionally, in the interpretation with the sectioning, a structural analysis has been considered defining a main NE-SW fault system whose effect on the terrain has been reflected in the
displacement of blocks related to fault jumps of normal and inverse nature.

The geochemical analysis of the samples from the diamond drilling campaigns was performed by the geologists of Cementos Pacasmayo S.A.A., which has allowed grouping the
calcareous stratigraphic sequence into 15 lithological groups or domains, establishing the following sequence to be considered in the geological modeling.

The lithological units have been grouped by assigning a numerical code to each, in the mining software, to simplify the modeling. Table 26 shows the lithological units with their
respective Mine Sight code and numerical code.

Table 26 Lithologic units of the Tembladera quarry geological model

Mine Sight Code Numeric Code

Lithologic Units
ITEM (USO) (CUSO)
01_CALIZA MARGOSA CM G 1
02_CALIZA IMPURA MARGOSA A CIMA 2
03_MARGA DE ARENISCA MGA R 3
04_CALIZA IMPURA MARGOSA B CIMB 4
05_CALIZA TIPO I C TI 5
06_CALIZA TIPO I C TI 6
07_CALIZA CAL CA L 7
08_CALIZA TIPO I C TI 8
09_CALIZA ADICION CA DI 9
10_CALIZA TIPO I C TI 10
11_CALIZA ADICIÓN CA DI 11
12_CALIZA TIPO I C TI 12
13_CALIZA CAL CA L 13
14_CALIZA TIPO I C TI 14
15_CALIZA ADICION CA DI 15
16_DIQUES DQ 16

*CALIZA means limestone.

59
The main criteria used for geological modeling are the lithological and quality aspects.

The lithological criteria are based on the macroscopic physical characteristics, such as color, texture, hardness, etc., of the calcareous rocks.

In relation to the quality criteria, the main reference is the content of calcium oxide (CaO) as the main oxide, and of economic interest, as well as the concentration of oxides and
secondary elements and/or contaminants were also considered in classifying the type of rocks oriented to the final product.

In the Tembladera quarry, the referential cut off of the oxides that determine the classification of the final products of calcareous rock is shown in Table 27.

Table 27 Pacasmayo plant material restrictions

Limestone Type I Limestone Type V Limestone Type Cal Limestone Type Addition
Min. 0 0 0 0
Al2O3 (%) Max. 2.50 1.30 0 0
Target 1.50 0.80 0 0
Min. 48.60 50.50 51.10 41.00
CaO (%) Max. 0 0 0 0
Target 50.20 52.00 52.50 44.00
Min. 0 0 0 0
MgO (%) Max. 2.50 2.50 0 2.50
Target 1.50 1.50 0 1.50
Min. 0 0 0 0
SO3 (%) Max. 0.35 0.35 0 1.10
Target 0.25 0.25 0 0.50
Min. 0 0 0 0
SiO2 (%) Max. 0 0 2.00 0
Target 0 0 1.50 0

The construction of the block model was configured based on the dimensions and spatial distribution of the bodies containing the material of economic interest.

Table 28 shows the characteristics of the block model (coordinates in UTM units).

Table 28 Characteristics of the block model

Minimum (m) Maximum (m) Size (m) Number

X 706700 708700 10 200
Y 9197800 9199200 10 140
Z 350 900 10 55

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11.1. Data base

A total of 396 samples from 39 diamond drill holes were used for the resource estimation:

The data is managed in a DataShed database software from where it is extracted and then loaded and used in MineSight software.

11.2. Density

The density data for the estimation of the limestone Resources of the Tembladera quarry as of December 2021, were taken from the historical data of sampling results carried out in the
first drilling campaigns, the density varies between 2.69 and 2.72 t/m3

11.3. Compositing

In general, each geological unit is estimated from the information of the composites belonging to that unit, the composites should not cross “hard” boundaries between different
geological units, in this case units were established according to the quality.

The objective of compositing is to have uniform grades in each initial core, to reconstitute the grade profile of each drillhole. This means that when compositing we must be careful that
the composites preserve the original nature of the sample. The calculated values considered in the compositing were for the SiO2, Al2O3, CaO, MgO and SO3.

Composites were made at different lengths to determine the optimum compositing size. The optimum value was 10 m. This size, which best fits the nature of the original sample, was
included in the resource estimation process.

In addition, the length of the composites is considered based on an exact multiple of the height of the blocks used to model the deposit and is also matched to the bench height to be
processed.

11.4. Basic statistics of the data (Assay – Composites)

Table 29 shows the results of the basic statistics of the main oxides as CaO, SiO2, MgO, Al2O3 and SO3, for the original data and for the composited data. The statistical analysis was
performed for each defined body with the interpretation of deposit quality, which were also taken as criteria for modeling and estimation.

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Table 29 shows the statistics for “Limestone Cal” as this is the one of greatest economic interest due to its CaO content and the main one in the estimation of Resources and Reserves.

Table 29 Limestone Cal statistics

Std. Co. Of
Components Origen Valid Rejected Minimum Maximum Mean Variance
Devn. Variation
Assay 945 0 42.99 54.84 52.37 1.35 1.82 0.03
CaO
Composito 186 0 48.03 54.04 52.33 0.83 0.70 0.02
Assay 943 2 0.01 11.35 1.66 1.22 1.48 0.73
SiO2
Composito 186 0 0.11 6.17 1.58 0.82 0.66 0.52
Assay 945 0 0.19 5.79 1.47 0.80 0.64 0.54
MgO
Composito 186 0 0.34 3.68 1.46 0.55 0.30 0.38
Assay 941 4 0.01 3.99 0.64 0.43 0.19 0.68
Al2O3
Composito 186 0 0.09 2.31 0.60 0.29 0.09 0.49
Assay 916 29 0.01 1.03 0.19 0.13 0.02 0.68
SO3
Composito 179 7 0.01 0.50 0.18 0.11 0.01 0.61

11.5. Extreme values

Extreme values are those analysis results that are not representative of the unit being studied and are those that are above the mean plus twice the standard deviation.

In the analysis of the extreme values in the laboratory results for the calcareous lithologic units that are being estimated, no deviation has been found, all the results are coherent and
representative of the levels to which they correspond.

11.5.1. Mineral Resources classification

The parameters for Resource classification used by Cementos Pacasmayo S.A.A. were obtained from the experience of calculating the optimum drilling grid for sampling by
geostatistical methods. Additionally, the variographic analysis was considered taking as reference the variogram range. After considering all these, resource classification was based on
the following criteria:

- Measured Resource: 1/3 of the distance of the variogram range.

- Indicated Resource: 2/3 of the distance of the variogram range.

- Inferred Resource: The total distance of the variogram range.

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From this basic configuration, several configurations have been defined, taking into account the number of holes and the average search distance. Other factors used for Resource
estimation are the maximum number of composites used per block and the number of drill holes for each block, as shown in Table 25.

11.6. Variogram Analysis

The variographic analysis considered the composited data for each level corresponding to each body of economic interest of the Tembladera quarry; the variographic structures found
indicate preferential directions in the correlation of the results, which allows us to analyze the spatial behavior of the variables, mainly of the CaO variable.

This has allowed us to obtain resulting experimental variographic structures that reflect the maximum distance or maximum range and the way in which one point has influence on
another point at different distances.

Table 30 Variogram modeling parameters

Type of Variogram Model Spherical

Nugget effect 0.2
Total Sill 1
Range 150 and 510

11.7. Interpolation

The Ordinary Kriging Interpolation (OK) method was used for the main CaO variable, of Inverse Distance (ID2) for the secondary variables (Oxides, see Table 33) and Nearest
Neighbor (NN) for validations, defining parameters for each estimator. Tables 31 and 32 show the main parameters used to define the interpolations of the main CaO variable of the
CAL limestone layer and of the secondary variables, respectively.

The interpolations were performed in 3 consecutive processes.

- The first with a search radius of 1/3 the range of the variogram.

- The second with a search radius of 2/3 the range of the variogram.

- Finally, the third one considering the maximum range of the variogram.

63
Regarding the number of composites, we used a minimum of 2 per block and 5 as maximum, for the first interpolation and a minimum of 1 per block for the second and third pass with 3
and 5 as maximum, respectively.

Additionally, a maximum of 02 composites were considered for each borehole taken in the interpolation.

Table 31 Estimation Parameters Secondary Variables

Comment Pass 1 Pass 2 Pass 3

Search dist. Block on Model -X 150 300 750
Search dist. Block on Model -Y 120 240 750
Search dist. Block on Model -Z 70 80 80
Max distance accept data 150 300 900
Min # comps per Block 2 1 1
Max # comps per Block 5 3 5
Min # comps per hole 2 2 2
Variable Model SI13 SI13 SI13
Variable comp SIO2 SIO2 SIO2
Pass PASS1 PASS2 PASS3
Distance along major 30 60 90
Distance along minor 175 350 525
Distance along vert 85 170 260
ROT 0 0 0
DIPN 75 75 75
DIPE 45 45 45
Limiting Variable model RT13 RT13 RT13
Code model 13 13 13
Limiting Variable composite CUSO CUSO CUSO

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 Table 32 Estimation Parameters CaO

Comment Pass 01 Pass 02 Pass 03

Search dis. Block on Model -X 150 300 750
Search dis. Block on Model -Y 120 240 750
Search dis. Block on Model -Z 70 80 80
Max distance accept data 150 300 900
Min # comps a Block 2 1 1
Max # comps a Block 5 3 5
Min # comps per hole 2 2 2
Variable Model CA13 CA13 CA13
Variable comp CAO CAO CAO
Variable Pass PSC13 PSC13 PSC13
Pass 1 PASS1 PASS2 PASS3
Store Distance DIC13 DIC13 DIC13
Store max # comp NCC13 NCC13 NCC13
Store max # drillholes NDC13 NDC13 NDC13
Store krigeage variance SDC13 SDC13 SDC13
Distance along major 30 60 90
Distance along minor 175 350 525
Distance along vert 85 170 260
ROT 0 0 0
DIPN 75 75 75
DIPE 45 45 45
Limiting Variable model RT13 RT13 RT13
Codigo model 13 13 13
Limiting Variable composite CUSO CUSO CUSO
File variogram allvar. var allvar. var allvar. var

The geological modeling of the limestone deposit of the Tembladera quarry has been modeled considering the quality and geological characteristics of the calcareous horizons, such
interpretation was made based on the diamond drill holes carried out in the drilling campaigns, the relationship between the information and the geological model is consistent.

11.8. Resources estimation

Resource estimates are effective December 31, 2021. All Resources are estimated as quantities at cement plant. For the estimation of Resources, the content of CaO was considered, in
addition to the content of impurities. The impurities are restrictions determined by the cement production plant. Table 33 shows the quantity of Resources and the average values of their
quality.

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 Table 33 Resource Categorization (exclusive of Reserves) at the Tembladera quarry

Resources TonnesM CaO MgO Al2O3 SiO2 SO3

(%) (%) (%) (%) (%)
Limestone Measured 128.29 49.31 1.81 1.84 4.82 0.31
Indicated 37.64 50.23 1.70 1.47 3.96 0.19
Measured + Indicated 165.93 49.52 1.79 1.76 4.63 0.28
Inferred 74.24 50.34 0.31 1.63 3.92 1.45

11.8.1. Cut-off

For the determination of Resources, the costs of extraction, transportation, cement processing and cement dispatch were considered. The costs are based on actual sources of current
operations in Cementos Pacasmayo S.A.A. and the selling price of cement (332.3 S/. x t). Chapter 18 and 19 shows the costs and prices for the determination of Mineral Resources. The
main factor for the determination of Resources is quality. The cut off can be seen in Table 27. The Tembladera quarry is a sedimentary deposit in that sense the model for the estimation
of Resources has considered the Tembladera quarry as a unit, whose limestone production is carried out by 10 m banks.

11.8.2. Reasonable Prospects of Economic Extraction

The mineral resource evaluation has considered other modifying factors such as limestone production costs, cement sales prices, environmental and social viability at our operations.

Although the Resources study considers different limestone horizons, it is necessary to further the geological knowledge of the quarry associated to the presence of andesitic dykes
which constitute contaminating structures of the economic material.

From the environmental and social point of view, Cementos Pacasmayo has been developing activities in Peru for more than 60 years and is recognized as a Peruvian company with a
high reputation. Therefore is expected that the environmental and social viability will continue.

It is necessary and important to complement the geological study on the east side of the pit (in production) to possibly reclassify the Inferred Resources.

The information that supports the estimation of the quarry’s Resources is consistent, which allows obtaining a robust resource model.

11.9. Qualified Person’s Opinion

The geological modeling of the limestone deposit of the Tembladera quarry has been modeled considering the quality and geological characteristics of the calcareous horizons, such
interpretation was made based on the diamond drill holes carried out in the drilling campaigns, the relationship between the information and the geological model is consistent.

The Tembladera quarry resource estimate has been developed following the best standards in the mining industry.

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12. Mineral Reserves estimates

The total estimated Mineral Reserves in the Tembladera quarry are 76.99 M tonnes which are detailed in Table 35 in their different categories.

In the periodic update of the Reserves of the Tembladera quarry, the Reserves produced within the update of the Resources and Reserves models are taken into account, along with any
new factor “modifying factors” or the change and entry of any new information if it had been generated.

The Resources and Reserves estimated in the deposit present as the main variable, the calcium oxide (CaO) content. It is a stable variable in the deposit, which develops in specific
ranges depending on the lithological domain, and are characterized according to the strata or horizons as they were deposited, with varying degrees of concentration.

The estimated Mineral Resources between measured and indicated reach 166 M with a CaO grade of 49.52%. In the quarry with the last drilling campaign, inferred Resources were
categorized as 74.24 M. with a CaO grade of 50.34%.

Based on the Resources model, the Reserves model was also updated with which the new design of the production pit was made and elaborated.

The Reserves calculated in the limestone deposit reach 66.52 M of proven Reserves with 49.75% of CaO and 10.47 M of probable Reserves with 49.64% of CaO with a total of 76.99 M
of Reserves that support the mining plans for its production and the supply to Cementos Pacasmayo S.A.A. plants.

A LOM of 30 years has been calculated for the quarry. This based on the estimated Reserves and the plant’s limestone consumption projection for the following years, provided by the
management and financial control area, and is incremental until 2051 and fixed consumption thereafter.

12.1. Criteria for Mineral Reserves determination

The criteria used for the determination of Mineral Reserves are described below.

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12.1.1. Run of Mine (ROM) determination criteria

ROM is all material produced in the quarry that complies with the specifications and will be sent to the plant for cement production. For determining ROM tonnage, dilution is
considered negligible. The recovery in the quarry was assumed to be 100%.

12.1.2. Cement plant recovery

The limestone received at the Pacasmayo plant is properly stored and then mixed with other raw materials to obtain the crude (kiln feed). The use of limestone in the formulation of the
crude is an average of 78.54%. After the crude is obtained, it is fed to the calcination kiln to obtain clinker. Finally, the clinker is mixed with additions to obtain cement.

12.2. Reserves estimation methodology

For the determination of the Mineral Reserves, the costs of extraction, transportation and cement processing, including the quality restrictions of the raw material, were considered. The
costs are based on actual sources from the current operations of Cementos Pacasmayo S.A.A. in Tembladera quarry and Pacasmayo plant. Chapter 18 shows the costs to determine the
Mineral Reserves.

● Proven and Probable Reserves are derived from Measured and Indicated Resources respectively.

● Proven and Probable Reserves are within the pit designed for the Tembladera quarry.

● Reserves are those for which economic viability has been demonstrated by estimating capital costs, operating costs and cash flow analysis.

● Cementos Pacasmayo S.A.A. has permits for limestone production at the Tembladera quarry.

● The effective date of the Reserve estimate is December 31, 2021.

● The Reserve estimate is the final product placed in the Pacasmayo plant.

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12.3. Reserves estimation

The quality restrictions for limestone at the Pacasmayo cement plant are shown in Table 34.

Table 34 Pacasmayo cement plant material restrictions

Limestone Type I Limestone Type V Limestone Type Cal Limestone Type Adición
Mím. 0 0 0 0
Al2O3 (%) Max. 2.50 1.30 0 0
Target 1.50 0.80 0 0
Mím 48.60 50.50 51.10 41.00
CaO (%) Max 0 0 0 0
Target 50.20 52.00 52.50 44.00
Mím 0 0 0 0
MgO (%) Max 2.50 2.50 0 2.50
Target 1.50 1.50 0 1.50
Mím 0 0 0 0
SO3 (%) Max 0.35 0.35 0 1.10
Target 0.25 0.25 0 0.50
Mím 0 0 0 0
SiO2 (%) Max 0 0 2.00 0
Target 0 0 1.50 0

From the quality point of view, the cut-off grade for limestone is 48.5% CaO and from the economic point of view, the results are shown in Chapter 19.

The economic analysis for the estimation of Mineral Resources and Reserves is presented in Chapter 19. Reserves are expressed in millions of tonnes and are shown in Table 35.

Table 35 Mineral Reserves expressed in millions of tonnes

Reserves Tonnes CaO MgO Al2O3 SiO2 SO3

M (%) (%) (%) (%) (%)

Limestone Proven 66.52 49.75 1.53 1.53 4.50 0.36

Probable 10.47 49.64 1.53 1.56 4.91 0.28
Total 76.99 49.74 1.53 1.53 4.56 0.35

The Reserves calculated for the quarry from the Mineral Resources consider the risk factors and modifying factors within which the quality factors are considered as the most sensitive
ones that by their nature can affect the Reserves. Although the main variable is CaO, which is very stable in the deposit, there are others that determine the quality of the Reserves and
could even affect the process if they are not adequately controlled, such as the SO3 content.

In the process of calculating Reserves, and in the quarry production plans, these variables have been adequately considered in the mining plan; properly sequenced, and with blending
processes.

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13. Mining methods

Cementos Pacasmayo S.A.A. is the current owner of the Tembladera quarry. The production of the quarry has been outsourced to a specialized contractor, San Martin Contratistas
Generales S.A., who conducts limestone mining activities. Cementos Pacasmayo S.A.A. supervises the quarry to verify the activities and production according to the requirements of the
Cement plant.

In 2021, Cementos Pacasmayo S.A.A. carried out geotechnical and hydrogeological studies at the Tembladera quarry to understand the rock mass and hydrology, respectively.

13.1. Mining Methods and Equipment

The mining method is open pit mining, which consists of mining in a series of benches with pit expansion possible both vertically and laterally. At Tembladera, mining generally
proceeds top-down with a height of 10 metres and no more than 3 working benches open simultaneously. The materials are loaded by 3 excavators and transported to the primary crusher
or waste dump by 10 dump trucks.

The transported material passes through the primary crusher, which reduces the fragments to a size of less than 4”. The crushed limestone is accumulated in 2 piles to separate the
products and/or ease the following secondary crushing operation, which is generally carried out for limestone lime-type, bringing the granulometry of that limestone to less than 45 mm.

The secondary crusher only processes limestone destined for lime production, after which the product is screened using meshes of size 24 mm, 12 mm and 8 mm. The two coarse
products are used for lime and the fine product is used as raw material for Type V cement.

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 Figure 11 Tembladera quarry mining sequence

The mining of lime at the Tembladera quarry includes the following unit operations:

● Drilling

Drilling is mainly done with 2 hydraulic drills with a third one on standby and used if necessary. The work is done in two 12-hour shifts with 20 effective hours and 4.0 hours
of operational and non-operational delays.

● Blasting

The Blasting fragments the rock to a suitable size for efficient loading, hauling and crushing operations. The operation mainly uses Examon P as the blasting agent, and non-
electric detonators are used to mitigate vibration and sound. The power factor fluctuates from 0.15 to 0.46 kg explosive/tonne depending on the type of material.

● Loading and hauling

After blasting, the Quality Control staff delimits the zones according to the results of blast hole sampling to define the material destinations. The excavators then load the
material into the trucks, which transport it to the assigned destination (waste dump or crusher).

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 ● Crushing

The purpose of crushing is to reduce the size of the rock as a result of blasting to the size required by the plant. The quarry has 2 types of crushers:

Primary Crusher

The Primary crusher is used to reduce the ROM limestone to sizes less than 4” at an average crushing rate of 700,000 tonnes/day. After the primary crushing, the material is
separated in two hoppers depending on the type of material and its granulometry.

Secondary Crusher

The secondary crusher reduces limestone sizes further to less than 45 mm at an average of 130 tonnes per hour. The limestone then passes through screens and is classified into
3 sizes of 45mm-25mm, 25mm-12.5mm and 12.5mm-8mm.

The main equipment used to carry out mining activities at the Tembladera quarry are shown in Table 36.

Table 36 Equipment of the Tembladera quarry

Equipment Quantity Function Description

Personnel Personnel and material transport units.

Pickup van and Bus 6
Transportation
Auxiliary equipment to ensure the operability of quarry
Tanker truck, Lucanteraire, Lubricator
equipment and personnel.
truck, Mobile crane, Compressor, Auxiliary
10
Welding machine, Ambulance and Fuel equipment
Tanker Truck.
These machines are used to drill holes for blasting.
Track Drill N°8 and N°9 1 Drilling
This equipment allows to reduce the particulate size from 12”
Primary Crusher 1 Material Crushing
to 4”.
This equipment allows to reduce the particulate size from 4” to
Secondary Crusher 1 Material Crushing
12.5mm and also to classify it by size.
Motor grader, Compactor 2 Track maintenance Equipment used for track maintenance.

Material Loading Equipment used to move the fragmented material resulting

Caterpillar tractor 1 from blasting.
and Stacking

Material Loading Material handling equipment.

Front Loader and Excavator 6
and Stacking
Equipment for conveying material from the production areas to
Dump truck 13 Material hauling
the primary crusher. Their capacity is 15 m3.
Equipment used to reduce the fragment size greater than 12” in
Hydraulic Hammer 1 Breaking banks
the primary crusher.

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13.2. Geotechnical aspects

Cementos Pacasmayo prepared a geomechanical study in 2007 to evaluate the characteristics of the Tembladera quarry’s mining areas. Currently, a new geomechanical study is being
prepared with a specialized company to evaluate new areas and to subsequently plan the limestone exploitation for the following years. The summary results of the 2007 geomechanical
study are presented below.

Geomechanical parameter / Geotechnical zonification

The stability study prepared by DCR Ingenieros S.R. Ltda in 2007 was used until 2020. The slope stability study established 7 zones within the deposit. For the period from 2021 and
onwards, the update made by Magma Consulting S.A.C. shown in Tables 37 and 38 will be applied.

Table 37 Parameters of design according to geotechnical zonification

Zone Bench Slope Interramps

(°) (°)
1 70 48
2 60 48
3 60 43
4 52 37
5 70 45
6 65 43
7 70 45

Table 38 Reviewed Safety Factor 2021

Safety factor
Section Description Pseudo-static
Static
K=0.09g
S-1 Global Fault 3.53 3.30
S-2 Global Fault 3.26 3.00
S-3 Global Fault 2.89 2.58
S-4 Global Fault 2.91 2.57
S-5 Global Fault 3.12 2.78
S-6 Global Fault 3.44 3.09
S-7 Global Fault 3.33 2.98
S-8 Global Fault 4.89 4.40

13.3. Hydrological aspects

As mentioned in Chapter 7 of the hydrogeological study conducted by Magma Consulting S.A. and based on the hydrogeological interpretation, basin morphology, lithology,
piezometric levels, recharge and discharge zones, and piezometry, groundwater is at a depth of 300 m with respect to the topographic elevation of the Tembladera quarry.

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13.4. Other Mine Design and Planning Parameters

The limestone production achieved as of December 2021 is 1,629,895 tonnes and 92,465 tonnes of waste rock was removed, which gives a stripping ratio of 0.06. Based on the plant
requirements and sales projection for the next 30 years, the pit design parameters for the Tembladera quarry are presented in Table 39.

Table 39 Summary of Tembladera quarry design parameters

Description Value
Interramp slope angle variable between 35° and 45

Bench slope angle insitu variable between 47° and 70

Bench height 10 meters

Safety bench 5.04 to 6.40 meters

Width of ramps 12.0 meters (including safety berm and curb and gutter

Safety wall height 1.30m

Ramp gradient 10% to 12%

13.5. Annual Production Rate

Considering that the cement plant demands an average annual production of 2.33 million tonnes per year of limestone, the plan for the following 30 years is shown in Table 40.

13.6. Mining Plan

The proposed mining plan for the next 30 years is presented in Table 40.

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 Table 40 Mining plan for the next years

Year Year Tonnes CaO MgO SO3 Al2O3 SiO2

1 2022 1,708,599 50.65 1.49 0.15 1.29 3.76
2 2023 2,104,657 50.03 1.51 0.20 1.47 4.45
3 2024 2,367,369 49.74 1.60 0.18 1.52 4.70
4 2025 2,409,946 49.63 1.65 0.35 1.54 4.57
5 2026 2,453,374 49.68 1.63 0.20 1.56 4.64
6 2027 2,497,671 49.70 1.27 0.28 1.69 4.90
7 2028 2,542,854 49.89 1.47 0.34 1.45 4.54
8 2029 2,588,941 49.69 1.54 0.27 1.57 4.74
9 2030 2,597,100 49.66 1.33 0.37 1.74 4.90
10 2031 2,602,827 49.35 1.35 0.34 1.77 5.20
11 2032 2,608,668 49.65 1.51 0.35 1.29 4.81
12 2033 2,614,626 49.83 1.50 0.35 1.28 4.32
13 2034 2,620,704 49.30 1.57 0.41 1.55 4.75
14 2035 2,626,903 49.31 1.60 0.38 1.59 4.64
15 2036 2,633,226 50.41 1.43 0.32 1.26 3.70
16 2037 2,639,675 50.12 1.49 0.42 1.32 4.16
17 2038 2,646,253 49.90 1.66 0.41 1.35 4.20
18 2039 2,652,963 49.66 1.78 0.36 1.56 4.32
19 2040 2,659,808 49.92 1.49 0.39 1.41 4.47
20 2041 2,666,789 49.21 1.63 0.42 1.76 5.14
21 2042 2,673,909 49.93 1.54 0.40 1.55 4.37
22 2043 2,675,355 49.39 1.60 0.39 1.74 4.93
23 2044 2,675,355 49.68 1.46 0.38 1.66 4.48
24 2045 2,675,355 49.53 1.66 0.40 1.67 4.82
25 2046 2,675,355 50.37 1.39 0.42 1.33 3.82
26 2047 2,675,355 49.78 1.57 0.37 1.56 4.58
27 2048 2,675,355 49.81 1.53 0.38 1.61 4.37
28 2049 2,675,355 49.91 1.52 0.39 1.36 4.55
29 2050 2,675,355 49.60 1.62 0.39 1.61 4.53
30 2051 2,675,355 49.16 1.60 0.39 1.87 5.09
Total general 76,995,054 49.74 1.53 0.35 1.53 4.56

In the same period of 30 years, the removal of waste rock will be a stripping average of 0.11 tonnes of waste rock/limestone, according to the mine plan.

Figure 12 shows the final pit for the life of the quarry.

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 Figure 12 Tembladera quarry final pit

13.7. Life of Mine

The life of the Tembladera quarry is 30 years.

13.8. Staff

Cementos Pacasmayo personnel develop its operations at the Tembladera quarry with its staff and contractors.

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14. Processing and recovery methods

14.1. Process plant

The cement production involves the following stages:

Receiving raw materials: the limestone is produced from the Tembladera quarry, as described in Chapter 13. The other raw materials are obtained from third party companies and in the
case of clay, it is obtained from our own quarry on the Señor de los Milagros de Pacasmayo property.

Grinding and homogenization: once the limestone is received at the plant, it is mixed with clay, sand and iron. The mixture must comply with the quality standards to be sent to a storage
silo from where it is fed the preheater of the clinker kiln.

Clinkerization: the blend is heated at a temperature of approximately 1,450 Celsius degrees in rotary kilns whose product is clinker. The clinker is then cooled at a temperature of
approximately 200 Celsius degrees and is stored in a silo or in an open-air yard.

Cement grinding: after being cooled, the clinker, together with the additions, is entered into a mill to obtain a fine powder called cement.

Storage in silos: after passing through the mills, the cement is transferred on conveyor belts and stored in concrete silos to preserve its quality until distribution.

Packaging, loading and transportation: the cement is moved through conveyor belts and pneumatic conveyors to bagging systems to be packed into bags and then loaded to the trucks
operated by third parties for distribution.

14.2. Raw materials for the cement production

At the Pacasmayo plant, the following raw materials and additions are used in the production of cement.

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Raw materials

Limestone: a material composed largely of calcium carbonate, is used as raw material and also as additive in the production of cement.

Sand: inert material composed basically of crystalline silica, aluminum and alkalis, such as potassium and sodium.

Iron: inert material composed basically of iron oxide (Fe2O3).

Clay: inert material composed basically of silicon, aluminum and a low proportion of alkalis such as potassium and sodium.

Coal: a solid, black or dark brown mineral that contains essentially carbon, as well as small amounts of hydrogen, oxygen and nitrogen.

Crude: the artificial mixture of limestone, clay, sand and iron, which is used to produce clinker.

Clinker: product obtained during the calcination of the mixture of limestone, sand, clays and iron.

Fossil fuel

Bunker oil: fuel used as an energy source in the calcining kiln.

Additions

Slag: artificial pozzolanic material that can set in contact with water and can develop compressive strength.

Pozzolan: materials containing silica and/or alumina, which can be of natural or artificial origin.

Gypsum: material composed of calcium sulfate hydrates. When gypsum is mixed with the clinker, it allows for better control of the setting time when the cement initiates the hydration
reactions. The mineral gypsum may contain crystalline silica.

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14.3. Flow sheet

Figure 13 shows the flow sheet for the cement production at the cement plant.

Figure 13 Pacasmayo plant process block diagram

14.4. Main equipment

Table 41 below shows the design and production capacities for clinker and cement.

Table 41 Main equipment in Pacasmayo plant

Equipment Product Capacity of Unit

production
Kiln Clinker I-V 140,040 tonnes/month
Mill Crude Type I-V 241,200 tonnes/month
Cement 295,200
Coal 20,160
Bagging system Cement 10,400 bags/hour

14.5. Material balance cement plant

The following section presents information on the material balance at Pacasmayo plant for cement production.

14.5.1. Material balance

Table 42 shows the balance of crude production, while Table 43 shows the material balance of clinker production at the Pacasmayo plant considering the use of limestone obtained from
the Tembladera quarry, clay, sand, and iron as part of the raw material for the production of clinker. Table 44 shows the balance for cement production considering the additions used for
the mixture with clinker and consequently, cement production.

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 Table 42 Balance for crude production

Raw material Annual quantity (tonnes/year) Dosage

Limestone 1,154,837 78.5%
Others 315,482 21.4%
Crude 1,470,319 100%

Table 43 Balance for clinker production

Raw Material Annual quantity (tonne/year)

Crude Type I, Crude Type V and 1,469,522
Coal*
Clinker Type I and Clinker TypeV 879,079
*Crude includes coal.
*Additionally, clinker imported during 2021 amounted to a total of 542,922 tonnes.

Table 44 Balance para producción de cemento.

Raw Material Annual quantity Dosage

(tonnes/year)
Clinker 1,427,247 72.4%
Additions 542,243 27.5%
Cement 1,969,490 100%

*The amount of limestone used as an addition was 254,317 tonnes per year.

14.6. Process losses

Losses in the cement production process associated with the raw material (limestone) are 0.44%.

14.7. Water consumption

Pacasmayo plant has a water treatment plant (PETAT) for the kiln cooling system during clinker production. The cooling water is used in the clinker and cement grinding processes. It is
also used to irrigate green areas and accesses.

14.8. Fosil fuel consumption

Liquid fuels are used for the various engines in the operation. Table 45 shows the consumption of liquid fuels used at the Pacasmayo plant.

Table 45 Fuel consumption in Pacasmayo plant

Fuel Consumption Description

Diésel 221,691 (gal/year) P. Cal 41.2 Gj/t
Oil 6 795,411 (gal/year) P. Cal 43.7 Gj/t

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14.9. Electric power consumption

The Pacasmayo plant has an electrical substation with a capacity of 105 MVA, which is supplied by the national grid.

14.10. Maintenance Plan

Cementos Pacasmayo has implemented a preventive and corrective maintenance plan with the purpose of not interrupting cement production.

Cementos Pacasmayo maintains the operational efficiency to control costs and operating margins. Cementos Pacasmayo has initiatives to diversify the energy sources and secure the
supply when possible

14.11. Staff

Cementos Pacasmayo personnel develop its operations at the Pacasmayo plant with its staff and contractors.

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15. Infrastructure

15.1. Tembladera quarry

The quarry consumes electrical energy supplied by the national electricity system through Hidrandina S.A. company. The supply is aerial with medium voltage of 2.3 KV. The
Tembladera quarry has electricity sub-stations located in coordinates UTM 707345 E and 9197947 N, it occupies a surface area of 1,062 m2.

The supply of liquid fuels to the Tembladera quarry is through a contractor.

The water is used to water the roads, limestone in loads, demolition, vegetation and for consumption and sanitary facilities.

The Tembladera quarry has the following facilities:

- DME 01 waste dump

- DME 05 waste dump

- Low grade stockpile

DME 01 Dump

The current elevation of the upper platform of the DME-1 dump is 535 meters above sea level. To ensure the physical stability of this dump and increase its storage volume, it has been
designed to reach an upper platform elevation of 545 meters above sea level at a slope of 2.5H:1V.

DME 05A Deposit

To ensure the physical stability of this future dump, it has been deemed convenient to maintain the upper platform at 740 masl at a slope of 2.5H:1V.

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 Figure 14 DME05A y DME01

Low grade stockpile

The design has a low-grade stockpile with a slope angle of 35° and a berm width of 10m with a minimum elevation of 532 masl and a maximum elevation of 580 masl, reaching a
capacity of 1 M m3.

The auxiliary facilities at the Tembladera quarry are administrative offices, explosives storage, key yard, power house, crushers and the auxiliary service facilities are interconnected to
the electrical system of the Central-North system for power supply.

There are also additional facilities at the Tembladera quarry, as described in Table 46.

Table 46 Tembladera quarry Facilities

Facility Area m2
Offices 972
Explosives warehouse 2-3 156
Truck Scale N°2 65
Loading Tunnel 78
Ore Belt N°4, 5 and 6 195
Meteorological Station 17
Septic Well 8
Recreational Complex 4,362

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 Figure 15 Mining Facilities

15.2. Pacasmayo plant

Electricity is supplied by the national grid and there is a contract with Electro Perú, which supplies energy through two 60 KV transmission line. There is also a sub-station with three
power transformers of 30, 37.5 and 37.5 MVA at ONAF, equivalent to 28.8 MW, 36 MW and 36 MW of active power, respectively.

The Pacasmayo plant is supplied with fuel by a contractor and has a fuel tank for regular vehicle fueling.

Water supply at the Pacasmayo plant is provided by a groundwater well.

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16. Market Studies

Cementos Pacasmayo is a leading company in the cement production and other construction materials in the north of Peru. The following chapter describes the cement market as well as
the macro and microeconomic factors that define it.

For the description of the cement market in Peru, public information has been collected from different sources, such as the Central Reserve Bank of Peru (BCRP), National Institute of
Statistics and Informatics (INEI), Association of Cement Producers (ASOCEM), Ministry of Housing, Construction and Sanitation, Superintendency of Tax Administration and the
Peruvian Construction Chamber. In addition to this information, this chapter also relies on statistics provided by the company, CPSAA, to provide a better understanding of its specific
market.

16.1. The cement market in Peru

The Peruvian cement market is geographically segmented by regions: north region, central region and south region. Diverse companies supply each region. Figure 16 is an illustration of
the Peruvian map and of its 3 regions, according to the segmentation of cement market, where each region is the main area of influence of domestic cement companies.

Figure 16 Segmentation of the cement market in Peru

The main companies which deal with the cement market in Peru are: Cementos Pacasmayo S.A.A., UNION Andina de Cementos S.A.A., Yura S.A. and Cementos Selva S.A.
Additionally, there are companies that import cement or clinker, such as Caliza Cemento Inca S.A., Distribuidora Cemento Nacional S.A.C., CEMEX Perú S.A., Cal & Cemento Sur
S.A., amongst others.

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Table 47 shows the cement shipments at domestic level (in thousand of tonnes):

Table 47 Cement shipments at domestic level (in thousands of tonnes)

2019 2020 2021

National cement shipments 10,317.0 8,979.0 12,500.0
Overall cement shipments (CPSAA/CSSA, 3 plants) 2,613.7 2,581.4 3,625.2
Pacasmayo plant shipments 1,367.6 1,312.8 1,970.9

Sources: ASOCEM and CPSAA/CSSA.

The types of cement produced by the main cement companies of the country are Type I, Type V, Type ICO, Type IL, Type GU, Type MS (MH), Type HS, Type HE, Type MH.

It is important to mention that, according to the main requirement standards, Peruvian Technical Standards, cements are divided into five types:

● NTP 334. 009 2013. Cements Portland. Requirement. (ASTM C 150).

● NTP 334. 090 2013. Cements Portland Added. Requirements. (ASTM C595).

● NTP 334. 082 2011. Cements Portland. Performance Specification. (ASTM C1157).

● NTP 334. 050 2004. Cements Portland White. Requirements. (ASTM C150).

● NTP 334. 069 2007. Building Cements. Requirements. (ASTM C091).

Cementos Pacasmayo, only produces cement that meets the first three NTP standards.

16.2. Industry and Macroeconomic Analysis

Producer and trading companies of cement compete mainly within the limits of their area of influence, which is determined by the geographical location of their plants, giving rise to
segmentation of the national market. However, the north region presents a high demand potential because of the infrastructure gap, the housing deficit and a higher capillarity in terms of
important adjacent cities with an urbanization level lower than in the central and south region. On the other hand, it highlights the importance of transportation in the structure of cement
costs; composed primarily of raw materials, fuels and transport.

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The cement market and the industry in Peru have the following characteristics:

● Base of consumers highly segmented, informal and of low Resources.

● Low costs of energy and raw materials.

● Zone of influence / distribution determined by geographical location of the plant.

● High correlation level between public and private investment, and self-construction.

The construction sector and cement industry have a behavior directly related to the Gross Domestic Product (GDP) and Private Consumption. Figure 17 shows how the GDP of the
construction sector (variation % monthly) accompanies the cyclic behavior of the Global GDP (variation % monthly), showing variations of lower significance than those of the Global
GDP, but in the same direction. It is also noted that, in May 2020, the GDP of the construction sector had a positive variation of more than 200% (with regards to the previous month),
whilst the Global GDP was only 10%. This was due to the confinement measures given by the Government to counter the Covid-19 pandemic. This reactivation was motivated primarily
by the private-construction sector consumption. Under the uncertainty conditions caused by the sanitation and economic crisis in 2020, consumers showed savings behaviors, which
meant that people preferred consumption of goods for home improvement, amongst them, cement. This trend was maintained throughout 2021, even before a higher uncertainty caused
by the elections and the result of elections, which was reflected in sustained growth rates of internal consumption of cement related primarily to self-construction.

Figure 17 Global GDP and Construction sector GDP MoM variation (%)

Source: INEI 2021

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The cement industry is also motivated by housing sector growth, public and private investment in infrastructure, mining projects, shopping centers, construction of transportation
systems, etc. Thus, one of the variables with more impact on cement industry and future demand is the infrastructure gap which remains high in the country. For the 2016 – 2025 period,
the infrastructure gap is estimated at US$ 160 billion, and this is present in the main economic sectors and services of public supply; that is: Transportation (36%), Energy (19%),
Telecommunications (17%), Health (12%), Sewage System (8%), Irrigation (5%) and Education (3%). The 90% of the roads not comprised in the large national road network still
remain unpaved; only 40% of schools have access to basic services such as water, electricity and sewage system. There are only 15 hospital beds for every 10,000 individuals, vs. 27
beds recommended by the WHO.

It is estimated that public investment grew 10% in 2021 and will grow 5% in 2022, as a result of the higher expenditure in reconstruction works under the Government-to-Government
Agreement with United Kingdom, as well as Special Projects of Public Investments and the projects within the frame of the National Plan of Infrastructure for Competitivity (NPIC).
With regards to the Government´s reconstruction plan, that it is implementing, it is expected to have a significant impact on cement sales in the north region because most of the budget
is targeted at that area.

16.3. The North Region Market

Cementos Pacasmayo, a leading company in the production and sales of cement in the North Region, has market presence in the following cities: Cajamarca, Chiclayo, Chimbote, Jaén,
Pacasmayo, Piura, Rioja, Tarapoto, Trujillo, Tumbes, Yurimaguas and Iquitos. The company has a Market share of over 90% in the north region of the country.

Overall shipments of Pacasmayo plant for 2021 were 1,970.9 thousand tonnes. Pacasmayo plant supplies almost 50% of the cement demand of the North Region.

Other companies with lower presence in the cement market of the North Region are:

● Wang Peng

● Quisqueya - Cemex

● Cemento Nacional

● Cemento Inka

● Cemento Tayka

● Cementos Patrón

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These companies are competitors of Pacasmayo plant.

Cementos Pacasmayo S.A.A in its Pacasmayo plant produces different types of cement and it has in the National Market, different trademarks to deal with diverse segments of the
market. Table 48 shows the products in Pacasmayo plant.

Table 48 Types of products of Pacasmayo Cement plant

Business Name Use Comment

Cemento Portland
The average result of resistance to compression is
Cement Type I Cement for general use. higher than the minimum requirement set forth in the
technical standard NTP 334.009 / ASTM C150.
For works, structures exposed to soils with high sulphate (salt The average result of resistance to compression is
Cement Type V residue). higher than the mínimum requirement set forth in the
technical standard NTP 334.009 / ASTM C150.
For use in construction Works in general, manufacturing of bricks,
sewage systems, paving stones, to lay bricks, plaster with cement, to
Complies with the requirements of technical standards
Qhuna Type I cover with majolicas, preparation of concretes in foundations, over
NTP 334.009 and ASTM C 150.
foundations, brake shoes, beams, columns and building roofs.

Cemento Portland Added

Ideal for Works which require moderate h heat, for Works exposed The average result of resistance to compression is
Cement Fortimax to sulphate action and for Works near to large water sources (sea, higher than the mínimum requirement set forth in
lakes, rivers, etc.) technical standard NTP 334.082 / ASTM C1157.
Ideal for the execution of structural Works, repairs, remodelings,
The average result of resistance to compression is
home applications, floors, levelings, grouts, tips, prefabricated
Cement Extra Forte higher than the mínimum requirement set forth in
elements of small and medium size and concrete elements which
technical standard NTP 334.090.
require special characteristics.
Ideal for the execution of structural Works, elaboration of mortars
The average result of resistance to compression is
for floors, leveling, grouts and tips and production of prefabricated
Cement Ultra Armado higher than the mínimum requirement set forth in
elements of small and medium size.
technical standard NTP 334.090 / ASTM C595.

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 Cement Type HE
The average result of resistance to compression is
Cements fir Prefabrications For construction elements. higher than the mínimum requirement set forth in
technical standard NTP 334.009 / ASTM C150.
Qhuna Structural
Hydraulic Cements specified by performance
For structures in contact with environements and humid and salty
Line Mochica MS
soils.
Line Mochica GU Cement of general use.
Structural elements and non-structural which are exposed to
Complies with the requirements set forth in standard
Qhuna MS environments and humid salty soils.
ASTM C 1157 and NTP 334.082.

16.4. Cement price

The prices of cement in the Peruvian market vary pursuant to their type and their geographical location. The price difference of each type is explained primarily by the dosifications of
raw materials and additions, whilst the variations for geographical location are caused by the freights for the distribution to the points of sale.

At domestic level, the cement price in 2020 was, on average, 541.18 S/ x t. Figure 18 shows the historic prices of cement in Peru.

Figure 18 Historic prices of cement in Peru

Source: Ministerio de Vivienda, Construcción y Saneamiento (November 2020).

Figure 18 shows the sustained growth of the price of more than 4% per year, from 2015 until 2018, it fell slightly in 2019 to climb back up again in 2020. The annual growth rate for the
2014 – 2020 period is 3.01%, which is consistent with the annual inflation rate of the target range of the Central Reserve Bank of Peru.

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16.5. Current and future demand

Cement demand at the national level is met by local shipments (local production), for the most part, and by imports. In 2021, 12.50 M tonnes were shiped locally; 40% more than in the
same period of 2020 (9.0 M). Imports amounted to 0.88 M tonnes during 2021; 23% above the 2020 figure (0.72 M). Thus, cement demand in 2021 is estimated at 13.3 M tonnes.

Figure 19 shows the evolution of the national demand of cement, expressed in thousand of tonnes, since 2016.

Figure 19 Evolution of the national demand of cement

Source: ASOCEM

It is noted that domestic demand has been growing, on average, at a rate of 3% per year, with the exception of 2020, which is considered an atypical year due to the adverse effects of the
pandemic and the confinement measures, to then take a historic leap in 2021 with an annual increase of 38%.

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According to our internal information, in terms of regional distribution, the Northern Region accounts for approximately 28% of domestic cement demand, the Central Region for 50%,
and the Southern Region for 22%.

Cementos Pacasmayo’s cement shipments (3 plants) reached 3,625,2 thousand tonnes in 2021, capturing a 26.8% share of total shipments in Peru and 90% in the Northern Region. This
is 40.4% more than in 2020 (2,581.4 thousand tonnes). This increase in shipments takes place in a context of economic recovery, despite the Covid-19 pandemic and political instability,
and is explained by the high growth rates of domestic cement consumption that have been registered since mid-2020, thanks to the self-construction sector and the high execution of
investment projects.

It is expected that the positive trend remains for the internal consumption of cement at domestic level and in the north region, driven by the growth of the Peruvian economy, which is
recovering at a higher rate than other countries of the region, the private-construction sector which is still one of the main driving forces of cement demand, and the Government´s
reconstruction plan for damages caused by El Niño, which is being executed through an agreement between the Peruvian and the British governments. This will have a positive impact
on Cementos Pacasmayo’s cement shipments, because most of the budget is concentrated in the company´s influence zone.

From this expectation of sustained increase in demand and to optimize Clinker production lines, the Company recently decided to invest approximately US$ 70 million for the project:
Optimization of Clinker Lines at Pacasmayo Plant. This optimization will allow the company to increase the production capacity of Clinker by about 600 thousand tonnes per year, and
thus, the future demand will be dealt with in a more efficient manner whilst the necessity of imported Clinker will be reduced.

Table 49 shows the projection of future demand or shipments of cement for Pacasmayo plant. These projections are based on the 2022 shipments, and a sustained growth of 2.0% per
year until the maximum capacity of cement production is reached.

Table 49 Forecast of future demand for Pacasmayo cement plant

Variation
Year
Cement Shipments (Tonnes) (%)
2022P 1,905,000
2023P 1,943,100 2.0%
2024P 1,981,962 2.0%
2025P 2,021,601 2.0%
2026P 2,062,033 2.0%
2027P 2,103,274 2.0%
2028P 2,145,339 2.0%
2029P 2,188,246 2.0%
2030P 2,232,011 2.0%
2031P 2,276,651 2.0%
2032P 2,322,184 2.0%
2033P 2,368,628 2.0%
2034P 2,416,001 2.0%
2035P 2,464,321 2.0%
2036P 2,513,607 2.0%
2037P 2,563,879 2.0%
2038P 2,615,157 2.0%
2039P 2,667,460 2.0%
2040P 2,720,809 2.0%
2041P 2,775,225 2.0%
2042P 2,830,730 2.0%
2043P 2,842,000 0.4%
2044P 2,842,000 0.0%
2045P 2,842,000 0.0%
2046P 2,842,000 0.0%
2047P 2,842,000 0.0%
2048P 2,842,000 0.0%
2049P 2,842,000 0.0%
2050P 2,842,000 0.0%
2051P 2,842,000 0.0%

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17. Environmental studies, permitting, and plans, negotiations, or agreements with local individuals or groups.

17.1. Environmental Aspects

Cementos Pacasmayo holds Corporate Policies, which are applied to the operations of quarries and Cement plants. Relevant policies include Safety Occupational Health Policy, Quality
Policy, and Environmental Policy.

Cementos Pacasmayo S.A.A. carries out activities in Tembladera quarry and Pacasmayo plant, in that sense, according to the environmental legislation., It has an environmental
authority in the industrial sector and another authority (Ministry of Energy and Mines) that issues an opinion for the Closure of quarries.

Likewise, Cementos Pacasmayo complies with the provisions of the Regulation with Superno Decree No. 033-2005-EM - Regulation of the Mine Closure Law.

17.1.1. Tembladera quarry

Tembladera quarry holds the environmental permit authorized by the Ministry of Production, dated November 08, 2018, through Directorate Resolution N° 304-2018-
PRODUCE/DVMYPE-I/DGAAMI. It approved the updating of the Environmental Management Plan of the Adequation Program and Environmental Management (PAMA per its
acronym in Spanish) of Tembladera quarry, this, pursuant to the Technical-Legal Report NO 979-2018-PRODUCE/DVMYPE-I/DGAAMI-DEAM and its annexes.

The updating of the Environmental Management Plan of the PAMA included the identification of potential environmental impacts for which, there were preventive, corrective and/or
mitigation measures.

Additionally, it includes the environmental monitoring program taking into consideration the components of air quality, environmental noise and biological monitoring. There are 4
monitoring stations for air quality, 4 monitoring stations for environmental noise and 10 stations for biological monitoring.

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In the Tembladera quarry, measurements of air quality and particulate matter parameters were considered. The results obtained in 2021 are under the environmental quality standard
limit, ECA in compliance with the established Supreme Decree No. 003-2017-MINAM.

In the measurement of environmental noise, the results obtained in 2021 are under the environmental quality standard limit, ECA, complying with the established Supreme Decree N°
085-2003-PCM.

Cementos Pacasmayo complies with Peruvian legislation on Closure Plans. Under current legislation is the Regulation of Environmental Management of the Manufacturing Industry and
Domestic Trade, Supreme Decree No. 017-2015-PRODUCE. This rule establishes the environmental management of the activities covered by Ministerial Resolution No. 157-2011-
MINAM, table of the first update of the list of inclusion of investment projects subject to the National System of Environmental Impact Assessment (SEIA).

For the Tembladera quarry, Directorial Resolution Number 265-2016-MEM/DGAAM approved the Updating of the Closure Plan for the Tembladera quarry mining unit of Cementos
Pacasmayo S.A.A., and activities associated with the approved Closure Plan were carried out during 2021.

It is important to mention that the approval of the Mine Closure Plan involves the constitution of guarantees to ensure that the owner of the mining activity complies with the obligations
derived from the Mine Closure Plan, in accordance with environmental protection regulations.

The Closure Plan submitted by Cementos Pacasmayo has included the necessary measures to ensure effectiveness or consistency with the requirements necessary for the protection of
public health and the environment. The initial strategy has continued with the Closure of the components of Tembladera quarry mining unit, establishing temporary, progressive, final
and post-Closure activities at the end and/or closure of operations.

Environmental closure activities have included physical stability in the mine, geochemical stability, water management facilities, dismantling for the removal of equipment and
machinery. Also included are infrastructure demolition, reclamation, waste disposal, landform establishment, habitat rehabilitation, revegetation and social programs.

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Post-closure activities such as physical maintenance, geochemical maintenance, hydrological maintenance, and biological maintenance will be carried out, and post-closure monitoring
activities include physical stability monitoring, geochemical stability monitoring, water management monitoring, biological monitoring, and social monitoring.

We have a solid relationship with our communities, and we have identified its main necessities as health, education, urban development and local development.

In this situation, we have a social investment program, which contributes to dealing with their necessities, based on good dialog and the compliance with our commitments.

The communities are high priority stakeholders. For this reason, we promote periodic meetings with their representatives and create opportunities for dialog to know their expectations.
In addition, we have established public and private alliances for development projects and programs, to contribute to a better quality of life, and to strengthen our relations. During 2021,
we worked in alliance with the district governments of Pacasmayo and Tembladera.

17.1.2. Cement plant in Pacasmayo

On March 09, 1998, in accordance with Oficio 217/MA.98.MITINCI.VMI.DNI, the Integral Environmental Study of the Industrial plant of Cementos Norte Pacasmayo, the
environmental study was prepared by ECOLAB SRL, was approved by Ministerio de Industria, Turismo, Integración y Negociaciones Comerciales Internacionales.

In September, 2007, through Oficio 02769.2007.PRODUCE/DVI/DGI-DAAI, the Study of Environmental Impact of Production Increase of Clinker in the Cementos Pacasmayo S.A.A,
plant, including the Environmental and Special Management Plans, document prepared by the Consulting company Servicios Generales de Seguridad y Ecología S.A. – SEGECO, was
approved by Ministerio de la Producción.

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On May 27, 2009, through Oficio No 01859.2008.PRODUCE/DVI/DGI-DAAI, the Declaration of Environmental Impact for the installation of Vertical Furnace N° 4 of Cementos
Pacasmayo S.A.A., prepared by the Consulting Company Servicios Generales de Seguridad y Ecología S.A. – SEGECO, was approved by Ministerio de la Producción. The approval of
the study considers the submission of the Environmental and Special Management Plans.

On December 19, 2009, through Oficio No 04971.2008.PRODUCE/DVI/DGI-DAAI, the Declaration of Environmental Impact for the installation of Mill N° 7 of Cementos Pacasmayo
S.A.A., prepared by the Consulting Company Servicios Generales de Seguridad y Ecología S.A. – SEGECO, was approved by Ministerio de la Producción. The approval of the study
considers the Environmental and Special Management Plans.

On October 14, 2010, through Oficio N° 6349-2010-PRODUCE/DVMYPE-I/DGI-DAAI, the Declaration of Environmental Impact for the Installation of a Mill of Lime inside its
Cementos Pacasmayo S.A.A. plant located in La Lilbertad - DIA, prepared by the Consulting Company Servicios Generales de Seguridad y Ecología S.A. – SEGECO, was approved by
Ministerio de la Producción.

On March 20, 2012, through Oficio N° 01784.2012.PRODUCE/DVMYPE-I/DGI-DAAI, the Declaration of Environmental Impact of the Project “Installation of Two Vertical Furnaces
N° 5 and N° 6, prepared by the Consulting company Servicios Generales de Seguridad y Ecología S.A. – SEGECO, was approved by Ministerio de la Producción. The approval of the
study considers the submission of the Environmental and Special Management Plans. The approval of environmental studies considers the submission, every six months, of the reports
on environmental monitoring and the reports on progress of environmental commitments assumed.

Cementos Pacasmayo S.A.A., in compliance with current environmental legislation, performs environmental monitoring through the Analytical Laboratory - ALAB, a Peruvian
company with dual accreditation by the international IAS (International Accreditation Service) and the national INACAL (National Quality Institute), both signatories of the ILAC-MRA
international Mutual Recognition Agreement.

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ALAB is responsible for sampling at the source and analysis in its laboratory, to present the results through reports to the Environmental Evaluation Agency - OEFA, a Peruvian state
institution that is responsible for reviewing and validating the information submitted by the industrial owner.

In the Pacasmayo plant, the measurements of air quality parameters and particulate air material were considered, the results obtained in 2021 are below the environmental quality
standard limit (ECA) complying with that established in the Supreme Decree No. 003-2017-MINAM.

In the measurement of environmental noise, the results obtained in 2021 are below the limit of the environmental quality standard (ECA) in compliance with that established in the
Supreme Decree N°085-2003-PCM.

Regarding atmospheric emissions at the source of emissions (chimneys), the results obtained in 2021 are below the maximum permissible limit (MPL) in compliance with that
established in Supreme Decree N°001-2020-MINAM.

The results of domestic effluents obtained in 2021 are below the maximum permissible limit (MPL) in compliance with that established in the Supreme Decree N°003-2010-MINAM.

Finally, in accordance with environmental regulations and according to the Regulation of Environmental Management of the Manufacturing Industry and Domestic Trade, Supreme
Decree N° 017-2015-PRODUCE, companies that produce cement are required to submit Closure Plans when executing Decommissioning activities. Cementos Pacasmayo in compliance
with Peruvian legislation will submit the Closure Plan in a timely manner.

17.2. Solid waste disposal

Cementos Pacasmayo S.A.A. has a Solid Waste Minimization and Disposal Plan for our production activities at the Pacasmayo plant and Tembladera quarry. Annually, our company
declares the generation, storage, collection, and final disposal of hazardous and non-hazardous solid waste in compliance with environmental legislation.

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In our solid waste minimization plan for 2021, we declared 48.5 tons of hazardous waste and 15.4 tons of non-hazardous waste for the Tembladera quarry. Likewise, for the Pacasmayo
plant we declared 110.40 tons of hazardous waste and 555 tons of non-hazardous waste, which were disposed of in accordance with environmental legislation.

17.3. Qualified Person’s Opinion

Cementos Pacasmayo S.A.A. complies with national environmental standards in the industrial sector and according to the International Standard Industrial Classification - ISIC 2694 for
the non-metallic production of the Tembladera quarry where limestone, the main material for the manufacture of cement, is produced.

For the industrial and mining sector, our company specifically complies with the Environmental Management Regulations for the Manufacturing Industry and Domestic Trade. Supreme
Decree No. 017-2015-PRODUCE is the rule that regulates the environmental management of the activities indicated in Ministerial Resolution No. 157-2011-MINAM and investment
projects subject to the National System of Environmental Impact Assessment (SEIA), considered in Annex II of the Regulations of Law No. 27446, approved by Supreme Decree No.
019-2009-MINAM.

Cementos Pacasmayo S.A.A. reports the environmental commitments, semiannually and quarterly to the Environmental Evaluation Agency - OEFA. The monitoring is carried out
through external laboratories that provide comprehensive monitoring and analysis services and have double accreditation, by the IAS and the INACAL, both signatories of the ILAC-
MRA international Mutual Recognition Agreement.

Cementos Pacasmayo S.A.A. strictly complies with the protocols in the different processes in compliance with environmental legislation and reporting to the OEFA.

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18. Capital and operations costs

18.1. Basis for operating and capital cost for the quarry and plant

This section presents, in a tabular manner, the operating costs of Tembladera quarry for the extraction of limestone, the main raw material used in cement production at the Pacasmayo
plant. The section also contains the plant operating costs, for the cement plant where the whole industrial process to convert the raw material to cement takes place. The costs are mainly
based on real historic costs which are the basis for estimating forecasted costs.

Similarly, this section reports the detail of the capital investments made in the quarry and plant, and the forecasted plan of investments, required to sustain all the activities in the quarry
and plant, and to assure the supply of limestone Reserves for the production levels required to support forecasted cement sales of Pacasmayo plant.

Table 50 depicts the main components of the cost structure of Tembladera quarry and Pacasmayo plant and the sources used in their forecasts.

Table 50 Concepts about cost structure of Tembladera quarry and Pacasmayo plant

Concept Description Source

Quarry Operating Cost Mineral Extraction /Exploitation, processing, fuel, Materials ● Real, historic costs
(Explosives), Maintenance, Insurances and Services
● Suppliers´ quotes
Quarry Operating Cost Royalties ● Contract of mining royalty payment
with regional/state entities
Quarry Operating Cost Energy ● Historic, real costs

● Supply Contract

● Suppliers´quote
Plant Operating Cost Fuel, Materials, Maintenance, Wages and Insurances ● Historic, real costs

● Suppliers´quote
Plant Operating Cost Energy ● Historic, real costs

● Supply Contract

● Suppliers´quote

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Being an ongoing operation, actual historical costs are the primary basis of information to estimate forecasted costs. These actual costs in some cases are maintained, and in other cases
are appropriately adjusted to account for factors specific to the quarry operation, conditions and obligations stipulated in supply and concession contracts, and other macroeconomic
factors that could have an indirect impact on future operating costs, such as inflation and devaluation of the local currency against the US dollar.

18.2. Capital and Operating Cost Estimates

Table 51 details the operating costs of quarry and plant for the year 2021, and 30 years of forecast.

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Table 51 Operating costs forecast of quarry and plant

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Table 51 shows the projection for the next 30 years, according to the production plan for 30 years of Reserves. Costs are adjusted annually by applying a 2.65% inflation rate.

Table 52 shows the detail of capital investments in the quarry and plant, by type of investment, for 1 year of historical result (2021) and 30 years of projection.

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Table 52 Investment forecast in quarry and plant

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In recent years, there have been no signifcant variations in investments related to maintenance and replacement of equipment in the quarry and plant to sustain operations.

As mentioned previously, the Company recently decided to invest an estimated US$ 70 million for the project optimization of clinker lines in Pacasmayo plant and thus, optimize its
installed production capacity of clinker. This investment will be made throughout 2022 and 2023 (years 1 and 2 in the forecast, respectively). This explains the higher investments in
those years in Table 52. Following that, the Company´s investment plan does not consider any extraordinary activity. It is the sole plan to perform the necessary replacement for the
quarry support and the maintenance of operations in plant, in such a manner that the investments are kept at levels similar to those registered throughout the last years. Future
investments are at nominal values and consider an annual increase of 2.65% for inflation.

The costs described in this chapter are applied to estimate the Mineral Resources and Reserves of the Tembladera quarry as part of the analysis.

18.3. Capital and Operating Cost Estimation Risks

Considering that mine production and cement plant will continue in the same geological deposit and using the same mining and industrial methods, there is little risk associated with the
specific engineering estimation methods used for capital and production costs. An assessment of accuracy of estimation methods is reflected in the sensitivity analysis in Section 19.

For purposes of the Preliminary Feasibility Study completed relative to the Tembladera quarry and Pacasmayo plant, both capital and operating costs are estimated to an accuracy of +/-
25% with a contingency of 5%.

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19. Economic analysis

19.1. Methodology: Discounted Cash flow (Free)

The Economic Analysis chapter describes the assumptions, parameters and methodology used to demonstrate the economic viability or profitability of extracting the mineral Reserves
and Resources. That is, the pre feasibility level support for the determination of mineral Resources and Reserves, by means of a business valuation through the Discounted (Free or
Economic) Cash Flow method.

In the economic the same evaluation criteria were considered for the estimation of Resources and Reserves.

For the cash flow projection, the forecast horizon is consistent with the life of the quarry, which is calculated based on the total declared Reserves and the annual exploitation of the
quarry. The cash flow for each period is approximated indirectly from the EBITDA (the latter is constructed in the Profit and Loss Statement), and the corresponding adjustments are
made for taxes and capital costs (CapEx).

Finally, for this economic analysis we work with the free cash flow, since it does not incorporate the capital structure, and we apply the weighted average cost of capital (WACC) for
discounting said future cash flows.

19.2. Assumptions

19.2.1. General and Macroeconomic Assumptions

For the Reserves evaluation, the general and macroeconomic assumptions used for the projection of the free/economic cash flows and for the valuation are:

- Projection horizon: 30 years (2022 to 2051) according to the estimated years of quarry life.

- Annual inflation rate, 2.65%: applies equally to sales price, costs, and expenses.

- Capital cost projections were determined using a historical ratio of annual investments and maintenance costs which also considers the increase in production volume.

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 - The company’s capital structure is being considered in the discount rate (WACC) of 9.87%, not in the cash flows.

- Income tax rate: effective rate of actual (historical) business results, 31.0% - 32.0%.

- Workers’ Profit Sharing: 10%.

- Exchange rate: exchange rate is assumed to remain at 4.00 (USD/PEN).

19.2.2. Income and Cost Assumptions

- The sales price of cement, expressed as S/ x t, is the sales price from Pacasmayo plant to Distribuidora Norte Pacasmayo, placed at Pacasmayo plant; and this is lower than the
sales price to the final customer in the market. This difference is explained by the distribution freight to the multiple points of sale, and by the selling expenses associated with
distribution and promotion in the different commercial channels.

- The base price used in the projection is an estimate for the year 2022 (332.3 S/ x t), which has been determined based on current market conditions and cement demand for
2022, among other factors.

- Starting in 2023 (year 2 of the projection), a price escalation is applied according to an annual inflation rate of 2.65%.

- The cost of cement production, expressed as S/ x t, has been estimated for the year 2022 based on actual operating costs, the market situation of local inputs and services, plant
demand for imported clinker and other factors. Cost of production for year 2022 is 302.9 S/ x t.

- In the case of imported clinker, the current cost is more than 40% above the historical average and is the result of extraordinary circumstances. In this regard, the projection,
from year 2028 (year in which clinker import is restarted), assumes values more consistent with the historical average, plus an adjustment for inflation.

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 - Starting in 2023, a cost escalation is applied in accordance with the annual inflation rate of 2.65%.

- The volume of cement shipments grows at an annual rate of 2.0% until the maximum plant capacity is reached and is adjusted slightly for a safety factor.

- The initial stock of products in the quarry and plant is assumed to be zero.

19.3. Results of financial model

For the Reserves evaluation, the following financial parameters were calculated:

● NPV of 779.6 million soles at a discount rate of 9.87%.

● 30-year mine life

● Average plant throughput for cement production: 2.33 million tonnes per year over the 30-year projection.

● Average sales price: 498.1 soles per ton of cement, an average of the 30-year projection, at nominal values.

● Revenues: 1,275.1 million soles, an average of the 30-year projection.

● Average cash production cost: 371.0 soles per ton of cement, an average of the 30-year projection, at nominal values.

The Table 53 shows the forecast of the Profit and Loss Statement of the operation of Tembladera quarry and Pacasmayo plant.

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Table 53 Profit and Loss Statement

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Cement sales at Pacasmayo Plant are on average S/ 1,275 million per year (for the period 2022-2051) and the average EBITDA margin for the same period is 16.60%. In 2022, the
EBITDA margin is significantly reduced due to the high cost of imported clinker and the high need for it to meet cement demand. Starting in 2023, with the partial start-up of the clinker
line optimization project, the need for imported clinker is reduced, the production cost decreases, and the EBITDA margin improves.

By 2024, the optimization of the clinker line is 100% operational and Clinker imports cease, that significantly improves the EBITDA margin. Early 2025, the EBITDA margin continues
to improve moderately, until shipments exceed the installed Clinker capacity and imports are resumed, bringing the EBITDA margin to 16.00% on average when the maximum cement
production capacity is reached.

Table 54 shows the Free Cash Flow projection and the valuation of the cement business of Pacasmayo plant:

Table 54 Free Cash Flow and valuation

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The net present value (NPV) of Pacasmayo Plant cement business amounts to more than S/ 779 million and it is made up of the sum of the discounted cash flows of each period, for the
30-year projection. It is important to mention that the discounted recovery period (of the investment for the clinker line optimization) is 5 years.

For the discount of the cash flows, the weighted average cost of capital of the company (WACC for its acronym in English) was applied.

19.4. Sensitivity Analysis

The sensitivity analysis considers a variation of +/- 5 and 10% in the variables that have the greatest impact on the NPV and EBITDA. These variables are the cement sales price,
operating cost and CapEx.

Table 55 and 56 detail the sensitivity of the EBITDA and NPV to each variable, respectively, when the variables are varied independently. Figures 20 and 21 show the results of the
sensitivity of NPV and EBITDA, respectively, to the three variables.

Table 55 Sensitivity analysis of the Net Present Value

Variable / Variation -10% -5% 0% +5% +10%

Price -72.8% -36.4% 0% 36.4% 72.8%
Cost 62.6% 31.3% 0% -31.3% -62.6%
CapEx 4.4% 2.2% 0% -2.2% -4.4%

Table 56 Sensitivity analysis of EBITDA

Variable / Variation -10% -5% 0% +5% +10%

Price -56.6% -28.3% 0.0% 28.3% 56.6%
Cost 47.7% 23.9% 0.0% -23.9% -47.7%
CapEx -0.1% -0.1% 0.0% 0.1% 0.1%

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 Figure 20 Sensitivity of Net Present Value

Figure 21 Sensitivity of EBITDA

Based on these results, the NPV is most sensitive to cement price, followed by operating cost, and least sensitive to the CapEx. The EBITDA, on the other hand, is as sensitive to cement
price as to the cost, and shows no sensitivity towards variations to the CapEx.

19.5. Economical Analysis for Resources Evaluation

About Mineral Resources, to demonstrate their economic viability or profitability, an economic analysis there was developed. The same criteria were used for the Reserves (see point
19.2.1) and Resources estimation. The Resources are significantly more than the Reserves; perpetuity is included at the end of the 30-year projection.

The results are NPV of 954.0 million soles at a discount rate of 9.87%. A life of mine (LOM) of 63 years with an average plant throughput of 2.33 million tons per year during the 30-
year forecast. The average sales price for the 30-year forecast is 498.1 soles per ton of cement at nominal values, and average revenues are 1.275.1 million soles per year. The average
cash production cost for the 30-year forecast is 371.0 soles per ton of cement at nominal values.

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20. Adjacent properties

The information in this chapter was obtained from the competent authority Instituto Geológico, Minero Metalúrgico (INGEMMET) according to the document “Resumen del Derecho
Minero Acumulación Tembladera”. The Eagle 1 concession overlaps with the Cementos Pacasmayo S.A.A. concession by 46.43 hectares. The Julissa A concession does not interfere
with the area of the mining rights in the Cementos Pacasmayo S.A.A. concession.

Eagle 1 does not interfere with Cementos Pacasmayo S.A.A.’s operations or Reserve estimates.

Figure 22 Concession Acumulación Tembladera and adjacent concessions.

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21. Other relevant data and information

Not applicable

22. Interpretation and conclusions

● From a legal point of view, Cementos Pacasmayo S.A.A. has the ownership of the mining properties for the exploration, development and production of limestone to supply the
cement plants for normal production during the life of the quarry.

● Cementos Pacasmayo S.A.A. has been complying with international ISO-9001 (Quality) standards since 2015 and has implemented Quality Assurance and Quality Control
(QAQC). The controls are applied for the construction of the Geological Model, Resource Estimation and Reserves Estimation.

● Cementos Pacasmayo S.A.A. has a quality assurance system in its operations that includes sample preparation methods, procedures, analysis and security, which comply with
the best practices in the industry.

● Updated geotechnical studies and geotechnical design evaluated are stable since the analyses show safety factors greater than the minimum acceptable.

● The information verification and validation processes are carried out following the procedures indicated in the information flows. The validated information is congruent with
the one that generated the geological models, which are the fundamental basis for the estimation of Resources.

● The geological modeling of the limestone deposit is consistent with the relationship between the information and the geological model.

● The Reserves estimations consider the risk factors and modifying factors. The main variable is the CaO content, which is very stable in the deposit, also there are along with
other secondary variables that determine the quality of the Reserves.

● In the process of calculating Reserves and in the production plans of the quarry, these variables have been adequately considered in the mining plan, properly sequenced and
with blending processes. There are sufficient proven and probable Reserves for the next 30 years.

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● Table 57 shows the Mineral Resources of the Tembladera quarry and categories. Likewise, the Mineral Reserves are shown in Table 58 and categories.

Table 57 Resource Categorization (exclusive of Reserves) at the Tembladera quarry

Resources Tonnes M CaO (%) MgO (%) Al2O3 (%) SiO2(%) SO3(%)
Limestone Measured 128.29 49.31 1.81 1.84 4.82 0.31
Indicated 37.64 50.23 1.70 1.47 3.96 0.19
Measured + Indicated 165.93 49.52 1.79 1.76 4.63 0.28
Inferred 74.24 50.34 0.31 1.63 3.92 1.45

Table 58 Mineral Reserves expressed in millions of tonnes

Reserves Tonnes CaO MgO Al2O3 SiO2 SO3

M (%) (%) (%) (%) (%)

Limestone Proven 66.52 49.75 1.53 1.53 4.50 0.36

Probable 10.47 49.64 1.53 1.56 4.91 0.28
Total 76.99 49.74 1.53 1.53 4.56 0.35

● The cement plant located in Pacasmayo has equipment and facilities available for cement production using limestone from the Tembladera quarry and other necessary materials.
An additional kiln is expected to be installed for clinker production, which should be in full production by 2024.

● The Health, Safety and Environment area is in charge of supervising compliance with the Company’s corporate policies and the various legal requirements of the national
regulatory bodies by all company áreas.

● Through its Social Responsibility area, Cementos Pacasmayo S.A.A. has generated relationships of trust with the communities surrounding its operations, which have a solid
relationship with our communities, identifying their primary needs in health, education, urban development, and local development.

● In 2021, due to COVID 19 pandemic, CPSAA had been limited in some face-to-face meetings with stakeholders that did not affect our good relationship.

● The operation in Tembladera quarry and Pacasmayo plant, with regards to infrastructure, is technically and economically feasible due to the life of the quarry.

● The sensitivity analysis shows that the operation is economically robust.

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23. Recommendations

● Maintain the QAQC program for exploration, development and production activities associated with cement production.

● Concerning the estimation of Resources, it is recommended that it is necessary and important to complement the geological study towards the east side of the pit that is being
exploited to allow recategorizing the inferred Resources that are being exploited.

● Perform geotechnical and hydrogeological studies in order to update the pit design associated with the mining method.

● Increase the number of topographic monitoring milestones in the quarry since the existing ones are insufficient.

● The installation of deep piezometers would help to better define deep water levels that could impact the operation, especially during the last years of operation.

● Perform density tests for limestone in the next studies at the Tembladera quarry.

● For future diamond drilling campaigns, evaluate the rock density for each limestone horizon.

● Evaluate the presence of andesitic dykes within the production zone. These represent inert material during production.

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24. References

BISA Ingeniería de Proyectos S.A.(2017). Actualización del Plan de Manejo Ambiental del Programa de Adecuación y Manejo Ambiental – PAMA de la Cantera
Tembladera.

Servicios Generales de Seguridad y Ecología S.A. (2011). Declaración de Impacto Ambiental Instalación de 02 Hornos Verticales nº 5 y 6.

Servicios Generales de Seguridad y Ecología S.A. (2007). Estudio de Impacto Ambiental Incremento de la Producción de Clinker en la Planta de Cemento.

BISA Ingeniería de Proyectos S.A. (2017). Actualización del Plan de Manejo Ambiental del Programa de Adecuación y Manejo Ambiental – PAMA de la Cantera
Tembladera – Volumen I

Magma Consulting S.A.C. (2021). Estudio Geomecánico Geotécnico Cantera Tembladera.

Magma Consulting S.A.C. (2021). Anexo 4: Estudio Hidrogeológico Cantera Tembladera.

Wiracocha Mining Services S.R.L (2021). QAQC de Sondajes Diamantinos Cantera Tembladera 2021.

Walsh Perú S.A. (2016). Actualización del Plan de Cierre de la Cantera Tembladera.

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25. Reliance on information provided by the registrant.

In preparing this report, the qualified persons relied upon data, written reports and statements provided by the registrant in accordance with 17 CFR § 229.1302(f). After careful review
of the information provided, the QPs have no reason to believe that any material facts have been withheld or misstated. Cementos Pacasmayo provided the information as summarized in
Table 59.

Table 59 List of Cementos Pacasmayo S.A.A. information.

Chapter Chapter name Information provided by CPSAA

Legal matters related to property rights and the authority
3 Property description
“Instituto Geológico, Minero y Metalúrgico INGEMMET”
16 Market studies Marketing information, ASOCEM, INEI and BCRP
Environmental studies, permitting, and
Environmental studies and information, Community Relations
17 plans, negotiations, or agreements with
and agreements with stakeholders
local individuals or groups
18 Capital and operating costs Historical data about cost, price and investments
Economic model, Macroeconomic trends, data, and assumptions,
19 Economic analysis
and interest rates
Legal matters related to property rights and the authority
20 Adjacent properties
“Instituto Geológico, Minero y Metalúrgico “INGEMMET”

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 Exhibit 96.2

CEMENTOS PACASMAYO S.A.A.

Technical Report Summary (TRS)
Virrila Quarry
and
Piura Cement Plant
20-F 229.601 (Item 601)
Index

1. Executive summary 1
1.1. Location and access 1
1.2. Climate 1
1.3. History 1
1.4. Geological environment and mineralization 2
1.5. Exploration 2
1.6. Sample preparation, analysis and security 2
1.7. Data Verification 3
1.8. Mineral processing and metallurgical test 4
1.9. Estimation of Resources and Mineral Reserves 4
1.10. Processing Plant and Infrastructure 5
1.11. Market studies 7
1.12. Capital and operating costs and Economic Analysis 7
1.13. Adjacent properties 10
1.14. Conclusions 10
1.15. Recommendations 12
2. Introduction 13
2.1. Participants 13
2.2. Terms of Reference 13
2.3. Conventions 15
2.4. Previous Work and Sources of Information 15
2.5. Details of QP Personal Inspection 15
3. Property description 16
3.1. Virrila quarry 16
3.2. Piura Plant 19
4. Accesibility, climate, local resources, infrastructure and physiography 21
4.1. Virrila quarry 21
4.2. Piura plant 23
5. History 24
5.1. Virrila quarry 24
6. Geological setting, mineralization, and deposit 25
6.1. Regional geology 25
6.2. Local geology 26
6.3. Characteristics of the deposit 27

i
7. Exploration 29
7.1. Drilling 29
7.2. Hydrogeology 29
7.3. Geotechnical studies 30
8. Sample preparation, analysis and security 33
8.1. Geology and Quarry 33
8.1.1. Preparation of samples, procedures, assays and laboratories 34
8.1.2. Quality Assurance Actions 34
8.1.3. Quality Plan 34
8.1.4. Chain custody 36
8.1.5. Qualified Person’s Opinion on Cement Plant QAQC 36
8.2. Piura Plant 37
8.2.1. Samples preparation, procedures, assays and laboratories 37
8.2.1.1. Raw materials sample preparation 37
8.2.1.2. Laboratory analysis 38
8.2.1.3. Finished Product Control 39
8.2.1.4. Control of non-conforming product 39
8.2.1.5. Validation of Silos 39
8.2.1.6. Density 39
8.2.1.7. Quality Assurance (QA) and Quality Control (QC) 39
8.2.1.8. Quality Plan 40
8.2.1.9. Quality control parameters 40
8.2.2. Security of the samples 41
8.2.3. Qualified Person’s Opinion on cement plant QAQC 41
9. Data verification 42
9.1. Geology and quarry 42
9.1.1. Data Verification procedure 42
9.1.2. Data collection 42
9.1.3. Management and Validation of Database 42
9.1.4. Tracking Data 42
9.1.5. Validation of Data 43
9.2. Piura plant 43
9.2.1. Data verification procedures 44
9.2.2. Data validation 44
9.2.3. Qualified Person’s Opinion on cement plant 44
10. Mineral processing and metallurgical testing 45
10.1. Nature of testing program 45
10.2. Cement Manufacturing Test Results 45
10.3. Adequacy of the Test Data 45

ii
11. Mineral Resources Estimates 46
11.1. Database 48
11.2. Density 48
11.3. Compositing 48
11.4. Basic statistics of the data (Assay – Composites) 48
11.5. Extreme values 49
11.6. Mineral Resources classification 50
11.7. Variogram Analysis 50
11.8. Interpolation 50
11.9. Resources estimation 51
11.9.1. Cut-off 52
11.9.2. Reasonable prospects of economic extraction 52
11.10. Qualified person’s opinion 53
12. Mineral Reserves estimates 54
12.1. Criteria for Mineral Reserves determination 54
12.1.1. Run of Mine (ROM) determination criteria 54
12.1.2. Cement plant recovery 54
12.2. Reserves estimation methodology 55
12.3. Reserves estimates 56
13. Mining methods 57
13.1. Mining methods and Equipment 57
13.2. Geotechnical aspects 58
13.3. Hydrological Aspects 60
13.4. Other mine design and planning parameters 61
13.5. Annual production rate 61
13.6. Mining plan 62
13.7. Life of Mine 63
13.8. Staff 63
14. Processing and recovery methods 64
14.1. Process Plant 64
14.2. Raw materials for the cement production 65
14.3. Flow sheet 66
14.4. Main equipment 67
14.5. Cement Plant Mass balance 67

iii
 14.6. Process losses 67
14.7. Water consumption 68
14.8. Fossil fuel consumption 68
14.9. Electric power consumption 68
14.10. Maintenance Plan 68
14.11. Staff 68
15. Infrastructure 69
15.1. Virrila quarry 69
15.2. Piura plant 70
16. Market Studies 71
16.1. The cement market in Peru 71
16.2. Industry and Macroeconomic Analysis 72
16.3. The North Region Market 75
16.4. Cement price 76
16.5. Current and future demand 77
17. Environmental studies, permitting, and plans, negotiations, or agreements with local individual or groups. 79
17.1. Environmental Aspects 79
17.1.1. Virrila quarry 79
17.1.2. Piura plant 82
17.2. Solid waste disposal 83
17.3. Qualified Person’s Opinion 83
18. Capital and operations costs 85
18.1. Basis for operating and capital cost for the quarry and plant 85
18.2. Capital and Operating Cost Estimates 86
18.3. Capital and Operating cost estimation risks 88
19. Economic analysis 89
19.1. Methodology: for Discounted Cash flow (Free) 89
19.2. Assumptions 89
19.2.1. General and Macroeconomic Assumptions 89
19.2.2. Income and Cost Assumptions 90
19.3. Results of financial model 91
19.4. Sensitivity Analysis 94
19.5. Economical Analysis for Resources Evaluation 96
20. Adjacent properties 97
21. Other relevant data and information 98
22. Interpretation and conclusions 99
23. Recommendations 101
24. References 102
25. Reliance on information provided by the registrant 103

iv
Index of tables

Table 1 Mineral Resources (exclusive of Reserves) in the Virrila quarry 5

Table 2 Ore Reserves in the Virrila quarry 5
Table 3 Free Cash Flow and valuation 8
Table 4 Resource Categorization (exclusive of Reserves) at the Virrila quarry 11
Table 5 Mineral Reserves expressed in millions of tonnes 11
Table 6 List of Cementos Pacasmayo S.A.A. Professionals 14
Table 7 QP’s field visit 15
Table 8 UEA Virrila Concessions 16
Table 9 Central coordinates of the UEA Virrila property 17
Table 10 Central coordinates of the Piura cement plant 19
Table 11 Regional stratigraphic column 25
Table 12 Local stratigraphic column of the Virrila quarry 27
Table 13 Characteristics of the Virrila deposit 27
Table 14 Net neutralization potential results 30
Table 15 Soil mechanics laboratory test summary 30
Table 16 Rock mechanics laboratory tests summary 30
Table 17 Strength parameters 31
Table 18 Quality protocols in the area of Geology 33
Table 19 Methods of analysis for the seashell from the Piura plant laboratory 34
Table 20 Quality Plan of the Virrila quarry 34
Table 21 Tests and frequency for each stage of the process 38
Table 22 Quality Control Parameters for Ore Receipt 40
Table 23 Lithologic units of the Virrila quarry geological model 46
Table 24 Quality Parameters for Dome and Additive seashells 47
Table 25 Characteristics of the block model 47
Table 26 Basic data statistics 49
Table 27 Estimation Parameters Secondary Variables 51
Table 28 Resource Categorization (exclusive of Reserves) at the Virrila quarry 52
Table 29 Quality restrictions Piura plant 55
Table 30 Ore Reserves expressed in million tons 56
Table 31 Mining equipment at the Virrila Quarry 58
Table 32 Virrila quarry physical stability analysis summary 59
Table 33 Geotechnical properties of materials 60
Table 34 Mine design parameters 61
Table 35 Minning plan forecast 62
Table 36 Main equipment in Piura plant 67
Table 37 Balance for crude production 67
Table 38 Balance para production de cement 67
Table 39 Fuel Consumption for Cementos Pacasmayo S.A.A – Piura Plant 68
Table 40 Cement shipments at domestic level (in thousands of tonnes) 72
Table 41 Cement at Piura plant 75
Table 42 Forecast of future demand for Piura cement plant 78
Table 43 Concepts about cost structure of Virrila quarry and Piura plant 85
Table 44 Operating costs forecast of quarry and plant 86
Table 45 Investment forecast in quarry and plant 87
Table 46 Profit and Loss Statement 92
Table 47 Free Cash Flow and valuation 93
Table 48 Sensitivity analysis of the Net Present Value 94
Table 49 Sensitivity analysis of EBITDA 94
Table 50 Resources at the Virrila quarry in millions of tonnes (exclusive of Reserves) 100
Table 51 Mineral Reserves expressed in millions of tonnes 100
Table 52 List of Cementos Pacasmayo S.A.A. information. 103

v
Index of figures

Figure 1 Piura plant process block diagram 6

Figure 2 Sensitivity of Net Present Value 9
Figure 3 Sensitivity of EBITDA 9
Figure 4 UEA Virrila map 18
Figure 5 Piura plant perimeter 20
Figure 6 Geological section of the Virrila quarry 28
Figure 7 Map of the location of drill holes in the Virrila quarry. 32
Figure 8 Photographic record of core shack 35
Figure 9 Photographic record of the sampling intervals 36
Figure 10 Mining secuence of Virrila quarry 57
Figure 11 Virrila quarry boundary 63
Figure 12 Piura plant process block diagram 66
Figure 13 Virrila quarry facilities 69
Figure 14 Segmentation of the cement market in Peru 71
Figure 15 Global GDP and Construction sector GDP MoM variation (%) 74
Figure 16 Historic prices of cement in Peru 76
Figure 17 Evolution of the national demand of cement 77
Figure 18 Sensitivity of Net Present Value 95
Figure 19 Sensitivity of EBITDA 95
Figure 20 Adjacent properties map 97

vi
1. Executive summary

Cementos Pacasmayo S.A.A (CPSAA) is a Peruvian company whose corporate purpose is the production of cement and other products associated with the construction sector. This
Technical Report Summary summarizes a Pre-feasibility study of the Virrila quarry and Cement Plant located in the Piura Region. Cementos Pacasmayo´s internal qualified persons
prepared this Report to support disclosure of seashell Resources and Reserves.

1.1. Location and access

The Virrila quarry contains seashells, the main raw material for cement production. This quarry is located in the Sechura district, of Sechura Province, in the Piura Region. There is an
access road to this quarry from Lima to Piura. The Piura plant is located in Piura city, and is 192 km from Virrila quarry and 950 Km from Lima.

1.2. Climate

The quarry has a temperate and humid climate, with little rainfall, mostly between February and April. Average annual temperatures vary between 17.8 °C and 29.5 °C. The highest
temperatures were recorded in January, February, and March, and the lowest in August and September.

In the Piura plant, the climate is predominantly arid and warm, with no rain for most of the year. The average maximum temperature is 31.2 °C, and the minimum is 17.7 °C. When the
El Niño phenomenon occurs, there is rainfall, especially between December and June.

1.3. History

The Virrila quarry is a production stage operation on a non-metallic deposit of calcareous material from marine shells that supply raw material to the cement plant in Piura. Cementos
Pacasmayo S.A.A owns the mineral deposit.

The Virrila quarry started operations on September 17, 2015. The mining contractor San Martin Contratistas Generales S.A. was in charge of the production from the start of operations
until March 14, 2020. The mining contractor Posada Perú S.A.C started operations at the Virrila quarry on September 14, 2020, until December 30, 2021.

1
1.4. Geological environment and mineralization

Geologically, the study area is in the desert zone of Sechura and has sedimentary rocks from the Recent Quaternary.

It is composed of silty sand deposits with intercalations of medium to fine-grained sands and seashell horizons. Below the recent deposits, there are diagenetic eolian deposits in the
sandy matrix with calcareous cement. Below these, there are intercalations of conglomerates with gray diatomites, intercalated with white reef sandstones, corresponding to the Talara
Bedrock and the upper levels of the Zapallal Formation.

The Virrila quarry deposit is comprised of coquiniferous portions of the Talara Tablazo that undergo lateral variations in thickness and composition of calcareous remains.

1.5. Exploration

In 2007 and 2008 exploration activities were performed to obtain geological information from the Virrila quarry that would allow the production of seashell.

In 2013, exploration activities were carried out by means of test pits in the best areas of the mining concession.

In 2019, activities and sampling in the operation area were developed to validate the Mineral Reserves in the area of operation and update the inventory.

In 2021, drilling was conducted to confirm Reserves within the operations and to know in more detail the characteristics of the deposit.

1.6. Sample preparation, analysis and security

Cementos Pacasmayo S.A.A., through its quality control group, performed quality assurance activities for the samples obtained at the Virrila deposit, applying the quality control plan,
protocols, and measures necessary to get information on the seashell samples. Laboratory analyses were performed at the chemical laboratory of Piura plant and were applied for the
estimation of Resources and Reserves of the deposit.

2
The Piura plant’s Quality Assurance and Control Department has implemented a sampling and data verification plan for the following processes: raw material reception, raw mill scale,
raw mill grinding, kiln feed, coal scale, coal grinding, preheater, kiln filter, clinkerization, cement grinding, mill scale, cement grinding, cement composting, packaging control,
packaging-composting and by-pass.

Likewise, Cementos Pacasmayo S.A.A. has implemented QAQC protocols to develop exploration and production activities in the Virrila quarry and in the Piura plant to ensure the
quality of the information that allows the estimation of Resources and Reserves of the seashell deposit.

Cementos Pacasmayo has procedures for sample preparation, testing, and information security in its operations. The cement plants and operations have implemented the ISO 9001
standard since 2015. Certification is renewed annually through an external audit.

1.7. Data Verification

CPSAA has a data verification area for the geological database relating to geological activities. This area has as its primary function the verification of data used to estimate Mineral
Resources and Reserves. For the appropriate administration of information, internal protocols have been implemented which are subject to internal audits.

The stages of verification activities conducted in the geologic area are the data collection, the administration and validation of data received, data tracking through the confirmation of
custody chains, and finally, validation of data in the information base that will allow the development of the Resources and Reserves model. For data verification activities at the cement
plant, the PDCA (Plan, Do, Check, and Act) methodology is used, which is applied to the technical information received from the company’s internal and external customers.

The quality control laboratory compares the results with national and international laboratories as part of the verification procedures.

3
1.8. Mineral processing and metallurgical test

Cementos Pacasmayo has procedures for developing products at the laboratory level and scaling at the industrial level: its guidelines for preparing, reviewing, insurance, and controlling
laboratory test reports. Cementos Pacasmayo has a Research and Development laboratory located in the Pacasmayo plant to evaluate the technical operations of cement plants and
quarries.

In order for its operations at the Piura plant to have a representative sample of its raw materials and cement, Cementos Pacasmayo performs the analysis of its samples in its internal
Research and Development Laboratory located at the Pacasmayo plant.

A significant percentage of Research and Development activities are focused on evaluating different ratios between clinker-mineral additions providing the best functional characteristics
to our products, and balancing the benefits generated for the company. Another objective is to identify other additions that can substitute for clinker: slag, pozzolana, fly ash, calcined
clays, etc., to reduce our environmental footprint and the cost of cement production.

The clinker/cement factor of the cement with additions: ICO and MS(MH) were investigated.

For ICO cement, the clinker/cement factor was reduced by 0.67 (2019), 0.66 (2020) and 0.71 (2021). For MS(MH) cement the clinker/cement factor was 0.68 (2019), 0.68 (2020) and
0.72 (2021).

The Research Laboratory issues technical reports following the criteria of international standards to the operations area, which evaluates the convenience of implementing the tests
industrially and validating what is reported at the laboratory level.

1.9. Estimation of Resources and Mineral Reserves

The qualified persons (QPs) have estimated seashell Resources and Reserves for this property. The information from exploration in the previous years has been used for the evaluation,
and is the database for the Resources and Reserves model.

4
The seashell Resources are presented in Table 1. The Resource estimation considered the quality restrictions of seashells received in the Piura plant, limits of the concessions,
accessibility to the Resources and legal limits of the mining concessions, relevant economic factors, and modifying factors.

The minimum quality accepted is 48.5% CaO to be used as raw material for cement production. Considering the sales prices of cement at the Piura plant, the economic evaluation used
for Resource evaluation is shown in Chapter 19 and uses the same criteria used to estimate Reserves.

Table 1 Mineral Resources (exclusive of Reserves) in the Virrila quarry

CaO SO3 MgO SiO2 Na2O Cl

Resources Tonnes M K2O (%)
(%) (%) (%) (%) (%) (ppm)
Measured 21.1 48.50 0.84 0.84 9.80 0.268 0.160 0.111
Indicated 29.2 48.78 0.87 1.23 7.62 0.204 0.222 0.079
Seashell
Measured + Indicated 50.3 48.66 0.86 1.07 8.54 0.231 0.196 0.092
Inferred 3.9 46.42 2.27 1.67 9.96 0.219 0.246 0.066

For Reserve estimation, the Resources and the quality criteria, modifying factors, and seashell production costs were considered. The economic results are shown in Chapter 19. The
mining method used is open pit mining.

Table 2 Ore Reserves in the Virrila quarry

Reserves CaO SO3 MgO SiO2 Na2O Cl

Tonnes M K2O (%)
(%) (%) (%) (%) (%) (ppm)
Seashell Proven 42.4 49.99 0.55 0.55 6.78 0.222 0.212 0.111
Probable 2.9 47.77 0.96 0.92 9.71 0.234 0.269 0.120
Total 45.3 49.85 0.58 0.57 6.97 0.223 0.216 0.112

1.10. Processing Plant and Infrastructure

Cement production considers the stages of raw material extraction, raw material grinding and homogenization, clinkerization, cement grinding, silo storage and packaging, loading, and
transportation. Cement is moved through pneumatic conveyors to bagging systems to be packed in bags and then loaded onto trucks operated by third parties for distribution.

5
 Figure 1 Piura plant process block diagram

The raw materials for cement production are seashells, sand, iron, clay, and coal. The mixture of these raw materials is the ground material called raw meal, which is fed to the calcining
kiln to produce clinker. Seashell represents 72% by weight of the crude.

Clinker and additions are used to produce cement. The additions used in cement production are slag, pozzolana, shale, and gypsum.

Currently, the Piura cement plant has a clinker/cement ratio of 0.7.

The Piura plant has an electrical substation of 22.33 MW and uses electricity supplied from the national grid.

Cementos Pacasmayo has implemented a preventive and corrective maintenance plan to prevent interruptions in cement production.

Cementos Pacasmayo maintains operating efficiency to control costs and operating margins, and has initiatives to diversify energy sources and secure supply when possible.

6
1.11. Market studies

The Peruvian cement market is geographically segmented by region: northern region, central region, and southern region, and each area is served by several companies, most of which
are cement producers.

The main companies that supply the Peruvian cement market are Cementos Pacasmayo, UNACEM, and Cemento Yura. Some companies import cement or clinker, such as Cemento
Inka, Cemento Nacional and Cemex, among others.

Companies that market cement in Peru follow the Peruvian Technical Standards associated with cement technical specifications.

Portland cement is subdivided into Type I and Type V cement. Portland Cement is subdivided into Type ICO, Type IL, Type 1P, and Type 1 (PM); and finally, Hydraulic Cements
specified by performance are Type GU, Type MS (MH), Type HS, Type HE, Type MH, and Type LH.

Cementos Pacasmayo, being the leading company in the production and sale of cement in the Northern Region, has a market share of over 90% in the following cities: Cajamarca,
Chiclayo, Chimbote, Jaén, Pacasmayo, Piura, Rioja, Tarapoto, Trujillo, Tumbes, Yurimaguas and Iquitos. Cementos Pacasmayo also has a market share of over 90% in the country’s
northern region.

Annual cement deliveries nationwide for the year 2021 reached 12.5 million tons, while total cement deliveries of Piura plant for 2021 were 1.3 million tons. The Piura plant serves
almost 33% of the cement demand in the country’s Northern Region, and its cement dispatches represent more than 36.3% of the three cement plant’s overall shipments.

1.12. Capital and operating costs and Economic Analysis

This document presents the cash flow analysis and an economic evaluation of the project based on the current operating costs of the cement plant in Piura. It uses the information on the
Virrila quarry for seashell production.

The economic analysis uses the economic assumptions listed in Chapter 19. The main variables considered in the economic model for the sensitivity analysis were cement price,
production cost, and Capex. Some of these main assumptions are listed below here.

The free cash flow is constructed for the economic analysis, which does not incorporate the financing structure. The latter is considered in the weighted average cost of capital (WACC)
to discount future cash flows. The following financial parameters were calculated:

● 30-year mine life

● Average plant throughput for cement production: 1.51 million tonnes per year over the 30-year projection.

● Average sales price: 552.9 soles per ton of cement, an average of the 30-year projection, at nominal values.

● Revenues: 861.8 million soles, an average of the 30-year projection.

● Average cash production cost: 342.3 soles per ton of cement, an average of the 30-year projection, at nominal values.

The cash flow of the project is presented in Table 3 below. The net present value at a discount rate of 9.87% is 1.281 billion Soles.

7
Table 3 Free Cash Flow and valuation

8
Sensitivity analysis was also made to show the influence of changes in prices, OpEx and CapEx on NPV.

Figure 2 Sensitivity of Net Present Value

Figure 3 Sensitivity of EBITDA

About Mineral Resources, to demonstrate the economic viability or profitability, an economic analysis there was developed. The same criteria were used for the Reserves (see point
19.2.1) and Resurces estimation. In addition, given the quantity of the Resources and the LOM, the forecast horizon is extended to 35 years.

The results are NPV of 1.335 billion soles at a discount rate of 9.87%. A life of mine (LOM) of 35 years with an average plant throughput of 1.51 million tons per year during the 35-
year forecast. The average sales price for the 35-year forecast is 595.7 soles per ton of cement at nominal values, and average revenues are 929.6 million soles per year. The average cash
production cost for the 35-year forecast is 369.1 soles per ton of cement at nominal values.

9
1.13. Adjacent properties

To the north of the Cementos Pacasmayo S.A.A. concession is the Bayovar N° 7 concession owned by Americas Potash Peru S.A. To the east of CPSAA’s concession are concessions
Virrila 12, Virrila 19, and Virrila 23 owned by Cementos Pacasmayo S.A.A. To the west are concessions Virrila 6, Virrila 9 and Virrila 14 owned by Cementos Pacasmayo S.A.A. and to
the north is concession Virrila 16 owned by Cementos Pacasmayo S.A.A.

1.14. Conclusions

● From a legal viewpoint, Cementos Pacasmayo S.A.A. has mining rights for the areas of exploration, development, and production of seashell to supply the cement plants for normal
production during the quarry’s life. It also has an agreement with Fundación Comunal San Martín de Sechura for the right of usufruct, surface and easement for the area of
operations at the Virrila quarry.

● Cementos Pacasmayo S.A.A. has been complying with international ISO-9001 (Quality) standards since 2015 and has implemented Quality Assurance and Quality Control
(QAQC). The controls are applied for the construction of the Geological Model, Resource Estimation and Reserves Estimation.

● Cementos Pacasmayo S.A.A. has a quality assurance system in its operations that includes sample preparation methods, procedures, analysis and security, which comply with the
best practices in the industry.

● The information verification and validation processes are carried out following the procedures indicated in the information flows. The validated information is congruent with the
one that generated the geological models, which are the fundamental basis for the estimation of Resources.

10
● The geological modeling of the seashell deposit is consistent with the relationship between the information and the geological model.

● The Reserves estimations consider the risk factors and modifying factors. The main variable is the CaO content which is very stable in the deposit. There also are other secondary
variables that determine the quality of the Reserves.

● In the process of calculating Reserves and in the production plans of the quarry, these variables have been adequately considered in the mining plan, properly sequenced, and with
blending processes. There are sufficient proven and probable Reserves for the next 30 years.

● Table 4 shows the Mineral Resources of the Virrila quarry and categories. Likewise, the Mineral Reserves are shown in Table 5 and categories.

Table 4 Resource Categorization (exclusive of Reserves) at the Virrila quarry

CaO SO3 MgO SiO2 Na2O Cl

Resources Tonnes M K2O (%)
(%) (%) (%) (%) (%) (ppm)
Measured 21.1 48.50 0.84 0.84 9.80 0.268 0.160 0.111
Indicated 29.2 48.78 0.87 1.23 7.62 0.204 0.222 0.079
Seashell
Measured + Indicated 50.3 48.66 0.86 1.07 8.54 0.231 0.196 0.092
Inferred 3.9 46.42 2.27 1.67 9.96 0.219 0.246 0.066

Table 5 Mineral Reserves expressed in millions of tonnes

Reserves CaO SO3 MgO SiO2 Na2O Cl

Tonnes M K2O (%)
(%) (%) (%) (%) (%) (ppm)
Seashell Proven 42.4 49.99 0.55 0.55 6.78 0.222 0.212 0.111
Probable 2.9 47.77 0.96 0.92 9.71 0.234 0.269 0.120
Total 45.3 49.85 0.58 0.57 6.97 0.223 0.216 0.112

● The cement plant located in Piura has all the equipment and facilities available to produce cement, using seashells from the Virrila quarry and other necessary materials.

11
● The Health, Safety and Environment area is in charge of supervising compliance with the Company’s corporate policies and the various legal requirements of the national regulatory
bodies by all company areas.

● Through its Social Responsibility area, Cementos Pacasmayo S.A.A. has generated relationships of trust with the communities surrounding its operations, which have translated into
a solid relationship with our communities, identifying their primary needs in health, education, urban development, and local development.

● In 2021, due to COVID 19 pandemic, CPSAA had been limited in some face-to-face meetings with stakeholders that did not affect our good relationship.

● The operation at the Virrila quarry and Piura plant, and related infrastructure, is technically and economically feasible due to the quarry’s life. The sensitivity analysis shows that the
operation is economically robust.

1.15. Recommendations

● Develop a geological exploration program surrounding the Virrila quarry to discover new coquiniferous zones and other materials related to cement production.

● Maintain the QAQC program for exploration, development and production activities associated with cement production.

● Update the geological model and standardize the information for the estimation of Resources and Reserves, considering that some areas have test pits and other drill-holes as a
source of information.

● Control the stripping ratio during the operation in order to achieve a reduction in production costs.

● Perform maintenance of the piezometers in the quarry.

12
2. Introduction

2.1. Participants

This technical summary report (TRS) was prepared by Cementos Pacasmayo’s qualified persons (QPs), who, according to their qualifications and experience, developed the chapters
based on their expertise. Likewise, the aforementioned QPs used Company information sources, information validated and approved by the competent authorities in Peru, and public
information sources. Table 6 indicates the qualified professionals who participated in the preparation of this document and the chapters and information under their responsibility.

Marco Carrasco, who holds the position of Project Manager of Cementos Pacasmayo, is QP certified by the Mining and Metallurgical Society of America (MMSA) of the United States.
He acted as Project Manager, whose primary role was compiled the information received from the QPs of each chapter to have an integrated document. Each QP is responsible for the
section they wrote.

2.2. Terms of Reference

This report summarizes the Pre-feasibility study results of the “UEA Virrila” property for the production of seashells using open-pit mining methods. This technical report summary was
prepared as an exhibit to support disclosure of mineral Resources and Reserves by Cementos Pacasmayo. The information is effective December 31, 2021.

The seashell was produced from the UEA Virrila property located in the Sechura district. This property supplies raw material for the Piura plant where cement is produced. The annual
cement production is 1.51 million tonnes per year (mtpy). This technical report summary estimates Resources and Reserves according to the regulations published in Securities
Exchange Commission (SEC) Form 20-F and under subpart 1300 of Regulation S-K. Actual operating costs have been considered for the estimates and used as a basis for economic
projections within the financial analysis.

The report was prepared by the qualified persons listed in Table 6 using available studies and, in some cases (see Chapter 25), relying on information provided by Cementos Pacasmayo,
the registrant.

13
 Table 6 List of Cementos Pacasmayo S.A.A. Professionals

Item Chapter First and Last Names Job Position Profession

0 Compiled all Marco Carrasco (*) Project Manager Chemical Engineer
1 Executive summary All QPs (**)
2 Introduction All QPs (**)
3 Property description Ricardo del Carpio Environmental Coordinator Geographic Engineer
Accessibility, climate, local
4 Resources, infrastructure and Ricardo del Carpio Environmental Coordinator Geographic Engineer
physiography
Mining Projects
5 History Jorge Vega Mining Engineering
Superintendent
5 History Jhonson Rodríguez Senior Geologist Geological Engineer
Geological setting, mineralization,
6 Jhonson Rodríguez Senior Geologist Geological Engineer
and deposit
7 Exploration Jhonson Rodríguez Senior Geologist Geological Engineer
Sample preparation, analyses, and
8 Jhonson Rodríguez Senior Geologist Geological Engineer
security
Sample preparation, analyses, and Quality Assurance and R&D
8 Gabriel Mansilla Chemical Engineer
security Superintendent
9 Data verification Jhonson Rodríguez Senior Geologist Geological Engineer
Gabriel Mansilla Quality Assurance and R&D
9 Data verification Chemical Engineer
Superintendent
Mineral processing and metallurgical Gabriel Mansilla R&D and Quality Assurance
10 Chemical Engineer
testing Superintendent
11 Mineral resource estimates Jason Gamio Modeler Geological Engineer
12 Mineral reserve estimates Jason Gamio Modeler Geological Engineer
Mining Projects
13 Mining methods Jorge Vega Mining Engineering
Superintendent
14 Processing and recovery methods Mario Alva Operations Manager Electronic Engineer
Mining Projects
15 Infrastructure Jorge Vega Mining Engineering
Superintendent
16 Market studies Jason Gamio Modeler Geological Engineer
Environmental studies, permitting,
17 and plans, negotiations, or agreements Ricardo del Carpio Environmental Coordinator Geographic Engineer
with local individuals or groups
18 Capital and operating costs Jason Gamio Modeler Geological Engineer
19 Economic analysis Jason Gamio Modeler Geological Engineer
20 Adjacent properties Ricardo del Carpio Environmental Coordinator Geographic Engineer
21 Other relevant data and information All QPs (**)
22 Interpretation and conclusions All QPs (**)
23 Recommendations All QPs (**)
24 References All QPs (**)
Reliance on information provided by
25 All QPs (**)
the registrant

(*) Marco Carrasco, who holds the position of Project Manager of Cementos Pacasmayo compiled the information received from the QPs of each chapter to have an integrated report.
Each QP is responsible for the section they wrote.
(**) Ricardo del Carpio, Jorge Vega, Jhonson Rodríguez, Gabriel Mansilla, Jason Gamio and Mario Alva

14
2.3. Conventions

Unless otherwise indicated in the report, all currencies are in soles and all measurements and units are in the metric system. The UEA Virrila property is located within the boundaries of
the WGS84 two-dimensional geographic coordinate reference system in the UTM 17S (Universal Transverse Mercator) zone. Unless otherwise indicated, all coordinates referenced in
this report and the accompanying figures, tables, maps, and sections are provided in the WGS84 coordinate system, UTM 17S zone.

2.4. Previous Work and Sources of Information

The information used is sufficient to allow this TRS to be completed with the level of detail required by Regulation S-K subpart 1300. The information used included actual information
from Cementos Pacasmayo’s operations, information submitted to and approved by the corresponding authorities, and public information in organizations specialized in the cement
industry. The list of sources of information is presented in Chapter 24 of this report.

2.5. Details of QP Personal Inspection

The QP’s who developed this document was unable to visit the Virrila quarry and the Piuraa plant periodically during 2021 due to COVID-19 pandemic restrictions. Instead, the QPs
worked with on-site staff using virtual tools to gain first-hand knowledge of the quarry and cement plant. The virtual meetings included verifying parameters of the limestone and cement
production.

Table 7 QP’s field visit

Item First and Last Names Job Position Profession Field visit
The last visit to the Virrila quarry and Piura plant
Environmental Geographic was in 2019. No visits were made in 2021 due to
1 Ricardo del Carpio
Coordinator Engineer COVID issues, and coordination was made with
Operations personnel.
The last visit to the Virrila quarry was in 2019 and
Mining Projects Mining Piura plant was in 2018. No visits were made in
2 Jorge Vega
Superintendent Engineering 2021 due to COVID issues, and coordination was
made with Operations personnel
The last visit to the Virrila quarry was in 2021. No
Geological visits were made to the Piura plant in 2021 due to
3 Jhonson Rodríguez Senior Geologist
Engineer COVID issues, and coordination was made with
Operations personnel
The last visit to the Virrila quarry was in 2019 and
Quality Assurance and Piura plant was in 2018. No visits were made in
4 Gabriel Mansilla Chemical Engineer
R&D Superintendent 2021 due to COVID issues, and coordination was
made with Operations personnel
The last visit to the Virrila quarry was in 2019 and
Piura plant was in 2021. No visits were made to
Geological
5 Jason Gamio Modeler thenVirrila quarry in 2021 due to COVID issues,
Engineer
and coordination was made with Operations
personnel
Electronic
6 Mario Alva Operations Manager Piura plant, all year as part of his duties.
Engineer

15
3. Property description

3.1. Virrila quarry

The quarry is located in Sechura District, Sechura Province, Piura Region. It is located 192 Km from Cementos Pacasmayo S.A.A.’s Piura plant.

The Peruvian State granted the mining right to Cementos Pacasmayo S.A.A. to carry out exploration and production activities that allow non-metallic minerals found in the subsurface
through mining concessions.

The mining rights registered with the authority, Instituto Geológico Minero y Metalúrgico (INGEMMET) are as follows Virrila 3, Virrila 4, Virrila 6, Virrila 7, Virrila 8, Virrila 9,
Virrila 10, Virrila 11, Virrila 12, Virrila 13, Virrila 14, Virrila 15, Virrila 16, Virrila 17, Virrila 18, Virrila 19, Virrila 20, Virrila 21, Virrila 22, Virrila 23 y Bayovar N° 4. The area of
the mining property is 38,226.00 Hectares.

The mining rights (the mining concession title) are granted by INGEMMET of the Energy and Mines Sector through a Presidential Resolution. It is determined to include the mining
rights in the Virrila Economic-Administrative Unit (UEA).

On March 31, 2016, by Presidential Resolution No. 0147-2016-INGEMMET/PCD/PM, the competent authority granted to CPSAA the Virrila Economic-Administrative Unit (UEA),
with code No. 01-00011-00-U of Cementos Pacasmayo S.A.A. These mining rights included 21 mining concessions.

Table 8 UEA Virrila Concessions

N° Code Name Hectares Material

1 010221599 Virrila 3 600.00 Non Metallic
2 010221699 Virrila 4 400.00 Non Metallic
3 010531406 Virrila 6 600.00 Non Metallic
4 010531306 Virrila 7 700.00 Non Metallic
5 010089707 Virrila 8 500.00 Non Metallic
6 010089807 Virrila 9 1000.00 Non Metallic
7 010089907 Virrila 10 1000.00 Non Metallic
8 010090007 Virrila 11 900.00 Non Metallic
9 010090107 Virrila 12 700.00 Non Metallic
10 010090207 Virrila 13 800.00 Non Metallic
11 010090307 Virrila 14 900.00 Non Metallic
12 010090407 Virrila 15 600.00 Non Metallic
13 010090507 Virrila 16 1000.00 Non Metallic
14 010090607 Virrila 17 1000.00 Non Metallic
15 010090707 Virrila 18 1000.00 Non Metallic
16 010090807 Virrila 19 1000.00 Non Metallic
17 010090907 Virrila 20 1000.00 Non Metallic
18 010091007 Virrila 21 1000.00 Non Metallic
19 010091107 Virrila 22 1000.00 Non Metallic
20 010479607 Virrila 23 200.00 Non Metallic
21 12000440Y01 Bayovar N° 4 22326.00 No Metálica

The properties described above were granted by the authority (INGEMMET) from 2000 to 2008. Table 9 shows the UTM central coordinates of the Virrila Economic Administrative
Unit (UEA).

16
 Table 9 Central coordinates of the UEA Virrila property

North East Radius Zone

9350000.00 526000.00 20,000.00 17

In accordance with this, the Virrila UEA includes twenty-one (21) non-metallic mining rights with an extension of 38,226.00 hectares, in favor of Cementos Pacasmayo S.A.A., owner
of said rights; located in the district of Sechura, province of Sechura and department of Piura.

Cementos Pacasmayo S.A.A. complies annually with the payments for the rights to the Virrila concessions.

These payments must be made from the first business day of January to June 30 of each year., CPSAA provides the Financial Entities in charge of receiving the payments with the
SINGLE CODE (see Table 8) of its mining rights, to comply with its obligation.

In the case of Virrila concessions, the payment is equivalent to US$3 per hectare.

Likewise, Cementos Pacasmayo S.A.A. pays royalties to the State as established by the Authority in Law N° 28258 and its amendment N° 29788.

Cementos Pacasmayo currently has an agreement with the Fundacion Comunal San Martin de Sechura for the use of the surface land associated with the production area of the Virrila
quarry. The area of usufruct, surface and easement rights held by Fundación Comunal San Martín de Sechura is 14,842.800 hectares. Superintendencia Nacional de los Registros
Públicos (SUNARP).

17
Figure 4 UEA Virrila map

18
3.2. Piura Plant

The cement plant property is located in the Veintiséis de Octubre District, Piura Province, Piura Region. The Piura plant is located at kilometer 3 of the Piura highway.

The property is shown in Figure 5, and Table 10 shows the UTM coordinates of the center of the circle of the Piura plant:

Table 10 Central coordinates of the Piura cement plant

North East Radius Zone

531293.65 9429098.05 650.00 17

The area of the property is 42.28 hectares. The property is registered in the National Superintendence of Public Registries (SUNARP) under the registration numbers 11161659 and
11164329 in the registry zone No. I SEDE PIURA, Piura Registry Office.

Cementos Pacasmayo S.A.A. pays taxes to the government as established by the Municipal Authority in the case of the Piura plant.

19
Figure 5 Piura plant perimeter

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4. Accesibility, climate, local resources, infrastructure and physiography

4.1. Virrila quarry

This chapter describes the accessibility, climate, local resources, and infrastructure for the Virrila quarry and Piura plant. Information obtained from technical and environmental studies.

Topography

The topography of the study area is homogeneous, comprising a flat relief made up of a large plain belonging to the Sechura desert.

Access

There is an access road to this quarry from Lima to Piura. The Piura plant is located in Piura city, and it is located 192 km from Virrila quarry and 950 Km from Lima.

The main access is by land. The journey from Lima to the Virrila quarry is as follows: Lima - Sechura (950 km) for a total of 15 hours.

By air, the route is as follows: Lima - Piura in 1.5 hours’ flight and an additional 1 hour drive on the Panamerican Highway north.

Climate

The quarry has a temperate and wet climate, with little rainfall, mainly between February and April. Meteorological information was taken at the SENAMHI Chusis station, the closest
to the quarry. According to the data from this station, the predominant wind direction is from the S and SE.

From the analysis of the information from 2010-2014, it is evident that there is rainfall in the area in March and April. The months with less precipitation are June, July, August, and
September. The month of March has the highest rainfall in the years analyzed, with a monthly total of 54.11 mm.

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Temperature

The highest temperature values were recorded in January, February, and March, and the lowest in August and September. Reported temperatures for 2010-2014 were evaluated, showing
temperature variations between 17.8 °C and 29.5 °C on average.

Physiography

The quarry area is located in a basin where sedimentation was interrupted by tectonic movements with changes in accumulation styles until the Pliocene.

The lithostratigraphy of the area consists of Cenozoic sedimentary units corresponding to the Tertiary period that are not exposed on the surface and Quaternary deposits (Tablezo
Lobitos, Quaternary deposits of ancient alluvial, recent alluvial, coastal, lacustrine, beach, and eolian origin).

Other geomorphological units outside the quarry area were identified as the estuary and floodplain.

The degree of slope of the predominant land surface is flat to slightly sloping. According to its formation and dominant material type, the plain landscape is Aeolian and Marine Plain.

Floods and tsunamis form external geodynamics. Earthquakes form internal geodynamics.

Local Resources

The quarry personnel is divided into Cementos Pacasmayo S.A.A. personnel and contractor personnel.

The quarry is located 61.7 kilometers from the town of Sechura, which has the resources of a town. Contractor personnel is transported by bus and pickup trucks for supervision
personnel.

A powerhouse provides a power supply with a generator set installed.

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4.2. Piura plant

The Piura plant is located in the province of Piura and region of the same name. The plant is located 192 km from the Virrila quarry.

Topography

The Piura plant area is located on the left bank of the Piura to Paita highway, 3 km from the city of Piura, and has a coastal plain topography, with thick banks of semi-compacted and
compacted sands at an average depth of 0.50 m.

Climate

The Piura plant area has a predominantly arid and warm climate with no rainfall for most of the year. When the El Niño phenomenon occurs, there is rainfall, especially between
December and June. The average maximum temperature is 31.2°C, and the minimum is 17.7°C.

The dry season is from May to December, and the rainy season is from January to April. The highest rainfall occurs in March, reaching a value of 448.4 mm.

The average annual relative humidity has 69.9%; the lowest value of 66.5% was recorded in February and the highest value of 74.4% in June.

Regarding wind speed data, the month with the lowest wind speed is March with 1.9 m/sec, and the month with the highest wind speed is September with 3.3 m/sec. Regarding the data
on wind direction, the wind direction is predominantly from south to north.

Physiography

In the study area, the slope of the land is slightly inclined because it is covered by eolian materials made up of light gray silty sands and sands, with loose sands resulting from the
transfer of alluvial and fluvial materials by the wind; these are accumulations of sands of variable thickness. It is possible to identify within the plains anthropic areas of recent works.
Likewise, it is possible to distinguish the slope phase from flat to slightly inclined (0 - 4 %).

Geomorphology

The geomorphology of the Piura Region is the result of a succession of events related to processes of uplift, subsidence, erosion, sedimentation, and deformation of the materials
deposited in the sedimentary basins. This scenario has identified the following geoforms: Ardisols Sands, Tablezos, Coastal Plain, Aeolian Sand Mantos.

Local Resources

Personnel at the Piura plant are divided into Cementos Pacasmayo S.A.A. personnel and contractors. Most of the personnel live in the city of Piura and travel to the cement plant in
company buses or their own vehicles.

Power is supplied through the national grid. Cementos Pacasmayo has a contract with ENOSA (Electric Company), which provides power through a 60 KV transmission line.

A deep well supplies water to the Piura plant.

23
5. History

5.1. Virrila quarry

Virrila quarry is a seashell deposit suitable for different types of construction cement; Cementos Pacasmayo S.A.A owns the mineral deposit.

The Virrila quarry started operations on September 17, 2015. Cementos Pacasmayo hired San Martin Contratistas Generales S.A. to be the contractor in charge of production from the
start of operations until March 14, 2020.

Due to the Covid-19 pandemic, operations at the Virrila quarry were suspended from March until September 2020.

After the suspension, the mining contractor Posada Perú S.A.C started operations at the Virrila quarry on September 14, 2020, until December 30, 2021.

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6. Geological setting, mineralization, and deposit

6.1. Regional geology

The strata of the district of Sechura, province of Sechura, Piura region, consists of Cenozoic Age sedimentary strata of the Tablazo Talara deposit, Tablazo Lobitos deposit, Eolian
deposits, Alluvial deposits and Recent deposits.

The lithostratigraphic units found in the area correspond to Quaternary-Pleistocene deposits (2.58 to 0.129 Ma). Within this category are first the tablazos, then the eolian deposits, and
old alluvial deposits with little diagenesis. The tablazos were first described by T.O. BOSWORTH (1922) in the Talara - Mancora region and finally followed by the recent deposits.

Table 11 Regional stratigraphic column

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6.2. Local geology

Geologically, the study area corresponds to the desert zone of Sechura and is represented by sedimentary materials from the Recent Quaternary.

It is made up of silty sand deposits with intercalations of medium to fine-grained sands and seashell horizons.

Below the recent deposits, there are diagenetic eolian deposits in a sandy matrix with calcareous cement. And underneath these are intercalations of conglomerates with gray diatomites,
intercalated with white reef sandstones, corresponding to the Tablazo of Talara and the upper levels of the Zapallal Formation.

Cenozoic - Tertiary (Miocene)

Zapallal Formation (Tm-zas)

This lithostratigraphic unit is an outcrop only in its upper member in the southern and northeastern part of the quarry area. It comprises compact fine sand, seashell with fragments of
reef shells, and conglomerate levels of diverse lithology with gravels smaller than 2” in a sandy matrix with little cement.

It is covered by light brown eolian sand, plant remains, and some very scarce remains of calcareous fragments due to erosion of its upper levels.

Cenozoic - Quaternary (Pleistocene)

Talara Tablazo (Qp - tt)

It is a Pleistocene-raised marine terrace. It has a significant extension in the region and constitutes 95% of the total area of the quarry. Its relief is essentially flat, with slight undulations
due to wind action and the crossing of small streams, which are activated only during rainy periods. Topographically, this unit develops at an average elevation of 80 meters above sea
level, with a slight inclination to the SE. The calcareous deposit of the Virrila quarry is formed by coquiniferous portions of the Tablazo Talara that undergo lateral variations in
thickness and composition of calcareous remains.

Cenozoic - Quaternary (Recent)

Aeolian Deposits (Qr - e)

26
These deposits are accumulations of fine to medium-grained sands transported from their sources of origin by the wind. They occur as small layers or stacks of 1 to 2 meters thick, and
are composed of brown silty sand with fragments of reef shells, gravels and remains of roots at the deepest level. At the top, there are gray to dark brown eolian sands with few
fragments of shells, reefs, gravels, and roots.

Table 12 Local stratigraphic column of the Virrila quarry

Era System Series Lithostratigraphic units Lithologic Description

Recent Eolic deposits SU Gray to dark brown eolian sand, few fragments of seashells, gravels, remains of vegetation.
Earthy calcareous in beige to brown sandy matrix. Remnants of seashells, reefs, not very
CT
compact or loose and with some gravels.
B1S Fragments of bivalves, gray color, with remains of shells and presence of gravel.
Sandy silt with traces of calcareous, gray to beige color, medium dense, mostly occurring
LM
as large lenses within the CT, B1S and A1 layer.
Calcareous of fine matrix of beige to gray color, with presence of fragments of shells and
A1 reefs somewhat preserved of beige to gray color, friable or somewhat compact due to the
presence of sulfates.
A2-A Semi-compact calcareous, with presence of coral reef and some sand.
Coral reef fragments of heterogeneous size and somewhat preserved, creamy beige to
A2 pinkish color, sometimes accompanied by a fine white calcareous matrix, friable and
Cenozoic Quaternary Pleistocene Tablazo Talara somewhat compact in contact with the A2-B layer.
A2-B Semi-compact coral reef fragments, with some gravel.
A2-C Fragments of coral reef, with some gravel.
Dark beige calcareous fine compact matrix with presence of voids and high magnesium,
A3
weak reaction to HCl.
ARE Silty sand with traces of calcareous minerals
Fine matrix calcareous, beige color with preserved seashell fragments of heterogeneous
B1
size and traces of gravels.
Sandy calcareous with remains of fragmented whitish gray shells and with presence of
B2
gravels.
GRV Conglomerate of sandy matrix, medium to coarse-grained, gray color, compact.
Tertiary Miocene Zapallal Formation DIA Diatomite massive green color, semi compact.

6.3. Characteristics of the deposit

Table 13 shows the characteristics of the deposit.

Table 13 Characteristics of the Virrila deposit

Average depth (m)

Quarry Average Width (m) Average Length (m) Average Thickness Lower Continuity
Top Elevation
(m) Elevation
Calcareous sedimentary deposit whose zones are
Virrila 950-2000 3100-4000 7-20 37 20
controlled by the continuity of the quality of the strata.

27
Figure 6 Geological section of the Virrila quarry

28
7. Exploration

7.1. Drilling

During 2007 and 2008, exploration activities were performed to collect geological information from the Virrila quarry.

In 2013, exploration activities were carried out using test pits in the best areas of the concession.

In 2019, activities and sampling in the operation area were developed to validate the reserves in the area of operation and update the inventory.

During 2021, drilling was conducted to confirm Reserves within the operations. The work performed during 2021 aimed to:

● Obtain representative samples of drill core.

● Identify and recognize the lithological strata.

● Perform chemical tests to determine the qualities of the material.

● Reconfirm the volume and tonnage of the Reserves.

It is also expected that, by 2022, we will have a detailed report of the geology and laboratory results to incorporate into the Reserves model.

The drilling work was supervised by Cementos Pacasmayo S.A.A. personnel and executed by Ram Peru S.A.C.

Ram Peru S.A.C. executed the diamond drill holes of 10 m depth. The drill holes had a vertical orientation (-90°), and HQ pipe (63, 5 mm) was used.

7.2. Hydrogeology

In 2012 Cementos Pacasmayo S.A.A. hired IENDESA S.A.C. to perform a hydrogeological study at the Virrila quarry. The study was titled, “Hydrogeological Study for Water Supply
to the Virrila quarry - Piura.”

29
The geophysical study included the evaluation of 07 SEV (Electro Vertical Soundings) and established the presence of 3 layers or geoelectric horizons. The elements that compose these
horizons would be sands, silts, and sandy clays intercalated and/or mixed that present some water.
The results showed that the yields oscillate between 13 to 17 l/s, and the depths range from 134.4 to 271.45 m, indicating the nappe is semi-confined in the Tertiary age sedimentary
rocks.
The aquifer recharge in the sector is currently done through the exchange of subway flow from rainfall in the upper parts of the valley and the effects of the El Niño phenomenon from
previous years.
The drilling of the exploratory well to a depth of 180 meters, with drilling diameters between 08” to 12”, was planned from the various phases of the investigation.
In 2013 Cementos Pacasmayo S.A.A. hired DCR Ingenieros S.A. to develop a hydrological study. The study considered hydrometeorology through the information obtained in 10
pluviometric stations and five hydrological stations.
A conceptual geochemical evaluation of the calcareous material obtained from the CV1-05 test pit at a depth between 0.15 to 0.50 meters was carried out and sent to the Spectrometric
Laboratory of the National Engineering University. The results were as follows:
Table 14 Net neutralization potential results
Value Description
pH 7.3 Hydrogen potential
%S 0.01 Percentage of sulfur with sulfide
PN 695.00 Neutralization power
PA 0.31 Acidity power
PNN 694.69 Neutralization net power
In 2015, Ram Peru S.A.C conducted drilling to obtain hydraulic test data . Lugeon tests were performed at a depth of 60 meters in fine compact sand in the first piezometer obtained. The
result was a hydraulic conductivity of 1×10-9 cm / s, which is considered a low value according to the Table of Theoretical Values in Custodio and Llamas (1983).

The second test was Lefranc type in fine sand, at a depth of 45 to 51 meters. The results show 1,180×10-6 cm/s. The lithology is composed of loose and compacted sands with a thickness
of 9 meters. The results show a low permeability material.

The transmissivity parameter has been calculated with these tests, resulting in a value of 3.2E-02 m2 /day, which corresponds to a low transmissive material.
7.3. Geotechnical studies
In 2013 Cementos Pacasmayo S.A.A. hired DCR Ingenieros S.A. to develop a study of the geotechnical characteristics of the Virrila quarry. The study considered the execution of test
pits to obtain samples and perform laboratory tests.
A total of 14 test pits were dug, reaching a minimum and maximum depth of 3.2 and 6.5 meters.
Ausenco conducted the soil mechanics tests in the geotechnical laboratory. Also, the rock mechanics and mineralogical tests were carried out in the Laboratory of the National
Engineering University
Table 15 Soil mechanics laboratory test summary
Zone Soil Pit N° of sample Depth S.U.C.S W (%) Granulometric analysis Atterberg Limits
Gravel (%) Sand (%) Fine (%) LL (%) LP IP
(%) (%)
Virrila CV1-02 MD - 01 0.1-0.4 SM 1.30 3.30 79.70 16.90 NP NP NP
quarry CV1-03 MD - 01 0.0-0.4 SM 0.80 2.50 84.80 12.70 NP NP NP
CV1-04 MD - 01 0.1-0.3 SM 1.10 11.60 69.20 19.10 NP NP NP
CV1-05 MD - 01 0.15-0.5 SC 1.40 17.60 43.30 39.10 34 23 11
CV1-11 MD - 01 0.0-0.4 SC-SM 1.30 2.20 76.10 21.70 27 22 5
CV1-13 MD - 01 0.0-0.3 GM 5.00 42.80 34.00 23.20 NP NP NP
Table 16 Rock mechanics laboratory tests summary
Zone Soil Pit N° Depth (m) Point load test Simple compression test (UCS)
(MPa) (MPa)
Virrila CV1-09 0.7-1.4 22.69 -
quarry CV1-11 0.7-5.0 6.43 3.31
Based on the test pits and the results, three geotechnical units (Geotechnical Unit UG-I, Geotechnical Unit UG-II, and Geotechnical Unit UG-III) were identified.

30
 Table 17 Strength parameters

Geotechnical Unit Specific gravity (kN/m3) Angle of friction Cohesion (c) (kPa)
(ɸ°)
UG-I 16 30 0
UG-II 20 26 32
UG-III 20 39 70

The study considered within the engineering analysis: design criteria and parameters, and physical stability analysis. A horizontal seismic coefficient of 0.24g was considered for the
pseudo-static evaluation of the quarry; corresponding to 50% of the maximum ground acceleration, which is 0.48g (firm ground) for a return period of 475 years.

The evaluation also included hydraulic aspects, which considered information associated with the El Niño phenomenon. The assessment of extreme flows was carried out by applying
the indirect method of the Soil Conservation Service – SCS.

31
Figure 7 Map of the location of drill holes in the Virrila quarry.

32
8. Sample preparation, analysis and security

This Chapter describes the preparation, analysis and security of the samples used for the geology, quarry and cement plant operations.

8.1. Geology and Quarry

Cementos Pacasmayo S.A.A. has implemented international standards in all its operations, such as quarries and plants. The ISO 9001 standard has been implemented and certified since
2015. The certification is renewed annually through an external audit.

The SSOMASIG area (Security, Occupational Health, Environment and Management Systems) is part of the team that determines and gives the necessary support for maintaining the
ISO 9001 (Quality). The scope is in all the company’s activities.

Table 18 shows the list of protocols for quality assurance and quality control.

Table 18 Quality protocols in the area of Geology

Activity Protocol Code Review

DRILLING WITNESS CUTTING OM-GL-PRT-0021 R0
Sample preparation methods SAMPLE PREPARATION FOR PHYSICOCHEMICAL ANALYSIS OM-GL-PRT-0022 R0
SAMPLE SELECTION FOR GEOMECHANICAL ANALYSIS OM-GL-PRT-0036 R0
DRILLING INITIATION AND SUPERVISION OM-GL-PRT-0005 R0
TOPOGRAPHY AND MEASUREMENT OF DRILL HOLE
DEVIATIONS OM-GL-PRT-0007 R0
SAMPLE RECOVERY OM-GL-PRT-0008 R0
SURVEY AND DELIVERY OF COLLARS OM-GL-PRT-0009 R0
RECEIPT AND STANDARDIZATION OF DRILLING CORES OM-GL-PRT-0012 R0
PHOTOGRAPHIC RECORD OM-GL-PRT-0013 R0
PHOTOGRAPHY OF TEST PITS OM-GL-PRT-0014 R0
GEOLOGICAL LOGGING OM-GL-PRT-0015 R0
LOGGING OF TEST PITS OM-GL-PRT-0016 R0
Quality control procedures
GEOTECHNICAL LOGGING OM-GL-PRT-0017 R0
SAMPLING IN TEST PITS OM-GL-PRT-0018 R0
FIELD-QUARRY SAMPLING OM-GL-PRT-0029 R0
ORE STOCK SAMPLING OM-GL-PRT-0030 R0
BLASTHOLE SAMPLING OM-GL-PRT-0032 R0
SAMPLE ANALYSIS FOR DENSITY OM-GL-PRT-0020 R0
QAQC PROGRAM OM-GL-PRT-0023 R0
ORE CONTROL OM-GL-PRT-0035 R0
ORE CONTROL POLYGON FIELD MARKING
ORE CONTROL PLAN
TRANSPORT OF CORES OM-GL-PRT-0010 R0
TRANSPORT OF SAMPLES TO THE LABORATORY OM-GL-PRT-0024 R0
REGISTRATION AND SHIPMENT OF MATERIAL OM-GL-PRT-0031 R0
Security CORE-SHACK STORAGE OM-GL-PRT-0034 R0
DATA ASSAYS INPUT – DATASHED OM-GL-PRT-0027 R0
CHANNELING OF GEOLOGICAL INFORMATION OM-GL-PRT-0028 R0
DATABASE MANAGEMENT OM-GL-PRT-0025 R0
PROGRAMMING OF COLLARS OM-GL-PRT-0001 R0
PROGRAMMING OF TEST PITS OM-GL-PRT-0002 R0
PREPARATION OF DRILLING RIGS OM-GL-PRT-0003 R0
INSTALLATION OF DRILLING MACHINE OM-GL-PRT-0004 R0
Others
PREPARATION OF TEST PITS OM-GL-PRT-0006 R0
HOLE ENDING OM-GL-PRT-0011 R0
REPORT WRITING – FIELD VISIT OM-GL-PRT-0026 R0
LIMESTONE MATERIAL MOVEMENT REPORT AND LOG – SGCP OM-GL-PRT-0033 R0

33
8.1.1. Preparation of samples, procedures, assays and laboratories

Samples obtained from the drill holes are placed in holders to be duly coded, cut, bagged and sent to the laboratory at the Piura plant, and are occasionally sent to an external laboratory
following the company’s procedures.

Certimin S.A. is used as an external laboratory for chemical analysis. This laboratory has modern facilities for developing mining services associated with the cement industry and
technical support in the geochemical field for national and international companies. Certimin S.A. is a Peruvian laboratory certified in ISO 9001, ISO 14001, ISO 45001, NTP-ISO/IEC
17025 Accreditation and membership in ASTM.

The laboratory analyses performed for the samples are CaO, MgO, AlO3, SiO2, Fe2O3 and SO3. Table 19 shows the methods used for seashell analysis.

Table 19 Methods of analysis for the seashell from the Piura plant laboratory

Analytical Method used Description

PI-CC-P-03 EXTERNAL SAMPLE PROCESSING
% Moisture
PI-CC-P-09 SAMPLING AND PREPARATION OF RAW MATERIALS AND PROCESS MATERIALS
Loss on ignition PI-CC-P-05 WET CHEMICAL ANALYSIS
OPERATION OF THE FRX – ARL 9900 THERMO EQUIPMENT (CHEMICAL ANALYSIS BY X-RAY
Various elements PI-CC-P-07
FLUORECENCE)

8.1.2. Quality Assurance Actions

Cementos Pacasmayo S.A.A., through its Quality Control unit, performed quality assurance activities for the samples obtained in the Virrila deposit, applying the quality plan,
procedures, and measures necessary to obtain information from the seashell samples. The laboratory analyses were performed in the chemical laboratory of the Piura plant. The results
were used for the estimation of Resources and Reserves of the deposit.

8.1.3. Quality Plan

Cementos Pacasmayo S.A.A. has implemented QAQC protocols to develop exploration and production activities in the Virrila quarry to ensure the quality of the information that allows
the estimation of Resources and Reserves in the deposit.

The quality plan implemented by Cementos Pacasmayo for the quarries includes the insertion of blanks, duplicates, and standards to control the precision, accuracy, and contamination
in the samples.

Table 20 Quality Plan of the Virrila quarry

Blanks Duplicates Standards Remark

1 control sample for each 2 control sample for each 1 control sample for each batch Cementos Pacasmayo protocol ¨OM-GL-
batch of 20 samples. batch of 20 samples. of 20 samples. PRT-0023-R0¨.

During the 2017 drilling campaign, the QAQC control protocols were applied, and the samples obtained were sent to the Piura plant laboratory for analysis. As part of the procedure,
thick Duplicate and Twin samples were inserted, representing 7.11% and 7.72% as the insertion ratio. Calcium oxide (CaO), which is the main component of the seashell for cement
production, was analyzed. The quality control (CaO) results showed that the Coarse Duplicate samples presented a standard deviation of 7%, which is within the acceptable range (20%).
The percentage of good samples was 96%. On the other hand, the quality control results for the Twin samples showed a standard deviation of 8%, which is below the permitted error of
30%. The percentage of acceptable samples was 98%.

34
Sample security

Cementos Pacasmayo S.A.A. has implemented QAQC protocols to develop exploration and production activities in the Virrila quarry to ensure the quality of the information that allows
the estimation of Resources and Reserves in the deposit.

During the drilling campaigns, Cementos Pacasmayo S.A.A. had built a core shack where the samples are correctly stored to preserve their quality.

Figure 8 Photographic record of core shack

CPSAA provided the necessary materials for the storage and transport of the samples. CPSAA also implemented sampling cards with information on the name of the project, name of
the borehole to be sampled, date of sampling, sampling interval, sampling manager, sampling, and type of sample or control sample.

All samples were labeled, and a photographic record is available. The photographic record of each sampling bag is made together with the weighing of the sample.

35
8.1.4. Chain custody

CPSAA implemented chain-of-custody systems to guarantee the physical security of the samples, data, and associated records.

Figure 9 Photographic record of the sampling intervals

8.1.5. Qualified Person’s Opinion on Cement Plant QAQC

In the ‘qualified person’s opinion, Cementos Pacasmayo has been complying with the international standards of ISO-9001 (Quality) since 2015 and has implemented Quality Assurance
and Quality Control (QAQC). Cementos Pacasmayo S.A.A. has used a QAQC check program comprising blank, standard, and duplicate samples. The actual sample storage areas and
procedures are consistent with industry standards.

There is information on sample preparation methods, quality control measures, and sample security. These results are accurate and free of significant error. The protocols in the different
exploration and production processes strictly comply with local and international best practices.

The sample preparation, security, and analytical procedures used to acquire the data in this report are adequate for use in the construction of the Geological Model, Resource Estimation,
and Reserve Estimation.

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8.2. Piura Plant

8.2.1. Samples preparation, procedures, assays and laboratories

Cementos Pacasmayo S.A.A. has a quality control plan for each of its operations as part of the corporate quality system.

The quality control plan (PI-CC-D-01/ Rev 04) describes the evaluation methods used in the Piura Plant’s quality control laboratory, applied to samples of raw materials such as
seashells, sand, clays, and iron ore; in-process products: raw meal, clinker, and cement; active additions: gypsum mineral, pozzolana, slag, and shells; and finished products such as MS,
ICO and Type I packaged cement.

Different analytical methods are applied for the physical and chemical characterization of raw materials, products in-process, and finished products, such as classical tests, X-ray
fluorescence tests, X-ray diffractometry tests, potentiometry, adiabatic calorimetry, among other analytical techniques supported by equipment designed for such specific purposes.

The analytical methods are based on guidelines described in ASTM, NTP (Peruvian Technical Standard), and ISO standards.

8.2.1.1. Raw materials sample preparation

The sample preparation consists of the collection and preparation of samples. The sample preparation procedure consists of primary and secondary crushing and reduction of the sample
by the quartering method. The sample is pulverized in the ring mill.

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8.2.1.2. Laboratory analysis

The Piura plant laboratory has implemented the ISO 9001 standard; it has different instrumental equipment. The annual maintenance and calibration program is applied to ensure the
reliability and traceability of the measurements performed.

The major equipment is X-ray fluorescence (XRF), which is used for chemical control of the different plant processes, such as:

● Reception and entry of raw materials.

● Grinding of raw flour and coal.

● Production of clinker.

● Grinding and packaging of cement.

Also, the hydraulic press is used to determine and analyze the compressive strength of the different types of cement produced in the plant.

For all types of cement, different physical characterization tests are performed, such as air content test, Blaine fineness, autoclave expansion, compressive strength, and setting time
using the Vicat needle method.

Other complementary tests are autoclave shrinkage test, expansion in the mortar at 14 days, expansion by sulfates at six months, chemical tests by the classical method to determine SO3,
MgO, and loss on ignition insoluble residue.

Quality Assurance Actions

The PI-CC-D-01/ Rev 04 sampling and data verification plan applies to all processes at Piura plant. Table 21 shows the tests and frequency for each stage of the process.

Table 21 Tests and frequency for each stage of the process

Stage Tests Frequency

Reception of raw materials XRF pellets, XRF beads, moisture, RM-3in, calorific power and Cl by every 5 to 10 trucks
potentiometry
Raw mill scale XRF bead and Cl by potentiometry 1 time per shift
Crude milling XRF pellets, RM 170 and loss on ignition. Every hour or up to 1 time per shift.
Kiln feeding XRF pellets, RM 170 and loss on ignition. Every 2 hours
Coal scale XRF pellets, calorific power and moisture. One coal sample per shift
Coal milling XRF pellets, RM 230, calorific power and fine moisture. Every 4 hours
Preheater XRF pellets, loss to fire, calcination and volatilization. Every 2 hours
Kiln filter Loss on ignition, XRF beads y Cl by potentiometry. One sample per shift
Clinkerization XRF pellets Every hour
Cement grinding XRF pellets, Rm 325, RM 450, loss on ignition and cal libre Every 15 min or 1 time per shift
Mill scale XRF pellets for daily composting and XRF bead for daily composting One sample per shift
Composite cement grinding XRF pellets, Rm 325, RM 450, loss on ignition and cal libre Every 15 min or 1 time per shift
Packaging control RM 1/2in, RM8 and XRF pellets every 2 hours, every 20 big bags, every 4
trucks and every 300 bags
Packaging – Composite XRF pellets, RM 325, RM 450, loss on ignition, compressive strength, setting, Every 15 min or 1 time per shift
autoclave expansion, density, 14-day mortar bar expansion, sulfate resistance
and heat of hydration
Stage Tests Frequency

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8.2.1.3. Finished Product Control

The controls for finished products include test, frequency, and person in charge. The test made is magnesium oxide, sulfur oxide, loss on calcination, insoluble residue, expansion in an
autoclave and compressive strength.

8.2.1.4. Control of non-conforming product

The non-conforming products must be identified, documented, evaluated, controlled, separated and disposed of, to prevent their non provided use or delivery, according to that
established in the procedure.

The remedy for a non-conforming product is reprocessing, reclassification of the material, acceptance by authorized personnel, acceptance by the client’s concession, and controlled
dosage.

8.2.1.5. Validation of Silos

It applies to all products manufactured at the Piura plant to ensure that the cement dispatched complies with the technical specifications and requirements of the Technical Standards.

8.2.1.6. Density

The density analysis in raw materials (crushed) is determined in a recipient of known volume (bulk density), the material is added in a recipient previously tared, is compacted smoothly,
made level and weighed on a precision balance. The values are reported in weight/volume.

For cement, fine materials are analyzed through the Le Chatelier bottle, whose value is used for the quality certificate issued to the customers.

8.2.1.7. Quality Assurance (QA) and Quality Control (QC)

The QAQC program contains methods that are applied to control the quality of the samples obtained in the operations of ore reception, raw mill balance, raw milling, kiln feed, coal
balance, coal grinding, preheater, kiln filter, clinkerization, cement grinding, cement mill balance, cement grinding, cement compost grinding, packaging control and packaging-
composite by Cementos Pacasmayo S.A.A. personnel. In this way quality control results are achieved.

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The parameters used for quality control are:

- PI-CC-P-01, Quality Plan

- PI-CC-P-02, Physical tests for cement.

- PI-CC-P-05, Wet chemical analysis.

- PI-CC-P-06, Chemical and instrumental analysis of anthracite coal.

- PI-CC-P-07, Operation of the ARL 9900-Thermo XRF equipment.

- PI-CC-D-01, Quality Plan.

- G-ASC-EST-01, Pozzolana Technical Specification.

- G-ASC-EST-02, Slag Technical Specification.

- PI-CC-PCC-01, Incoming raw materials control parameters.

- PI-CC-PCC-02, Raw material grinding control parameters.

- PI-CC-PCC-03, Clinker Production Control Parameters.

- PI-CC-PCC-04, Coal grinding control parameters.

- PI-CC-PCC-05, Cement grinding control parameters.

8.2.1.8. Quality Plan

The quality plan implemented by Cementos Pacasmayo for the cement plants includes the insertion of standards to control the accuracy in the samples.

8.2.1.9. Quality control parameters

The quality control parameters of the materials received at the Piura plant are the following

Table 22 Quality Control Parameters for Ore Receipt

Mineral Content analysis

Domo seashell CaO, MgO, SO3, Cl, Na2O, K2O y R – 3-inch Mesh
Addition seashell SO3, Cl, MgO, Na2O, K2O y R – 3-inch Mesh

Likewise, quality parameters are controlled in the by-products and products obtained during production to comply with the company’s quality standards.

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8.2.2. Security of the samples

Cementos Pacasmayo S.A.A has implemented QAQC protocols to develop cement production activities at the Piura plant to ensure the quality of the information that allows the
Estimation of the Resources and Reserves of the deposit.

Sample preparation consists of sample collection and preparation for raw material, clinker, and cement.

The testing procedures are physical testing for cement, wet chemical analysis, and operation of XRF equipment.

Likewise, the control parameters are raw material parameters, pozzolana, slag, mineral reception parameters, clinker production parameters, raw material parameters for crude; crude
feed parameters, crude milling parameters, coal milling parameters, and cement milling parameters.

8.2.3. Qualified Person’s Opinion on cement plant QAQC

Cementos Pacasmayo S.A.A. has a Quality Assurance, Research and Development area that ensures compliance with the requirements for finished products specified in Peruvian
technical standards, which are traceable to the standards of the American Society for Testing and Materials (ASTM).

The Research and Development area is located at the Pacasmayo plant, and its scope includes operations at the Piura plant.

Compliance with the requirements based on the quality assurance management system, the indicator was 0% of nonconforming products in the market. Likewise, the level of customer
satisfaction (G-GH-F-03 / Rev. 03 Customer satisfaction) is 80%.

Based on the above, in the ‘qualified person’s opinion, the quality assurance system at the Piura plant, which includes preparation methods, procedures, analysis, and security, complies
with the best practices in the industry, thus ensuring that the end customer has confidence in the level of quality of the products marketed by Cementos Pacasmayo.

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9. Data verification

This Chapter shows the data verification activities for the geology, quarry, and cement plant areas.

9.1. Geology and quarry

9.1.1. Data Verification procedure

CPSAA has a specialized area in the compilation, verification, and standardization of information for the geological database. Its principal function is to validate the data to be used to
estimate Mineral Resources and Reserves. Internal protocols have been implemented to correctly manage the data, subject to internal audits and supported by the DataShed software.

9.1.2. Data collection

The Data collection applies to exploration activities. For diamond drilling, the process flow for planning and execution of drillings, survey methods for reporting drill collars, and ddh /
verification of the core information quality and recovery process. In addition, the processes flowsheet, validation and consistency of sample information, sample preparation and testing,
density, registration process, and digital photographic storage are used for geological sampling activities.

9.1.3. Management and Validation of Database

The stages for management and validation of database are the recovery, processing, and storage of the database, which includes database development process flow, information
standardization and integration process, information storage strategy, appropriate database technology, structure and practicality of the database system that allows fast and flexible
access and input of information, and validation of chemical results, which includes the QAQC report.

9.1.4. Tracking Data

The QPs verified the consistency between the database records and the original registry in 2021. The QPs detected no differences between the database and the log files. A digital copy
of all records is kept as a pdf file. Digital certificates support the chemical analysis data.

The information collection considered the following: Drill collars, Survey, Lithology, Samples, and Assays. The data is collected on the DataShed software.

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9.1.5. Validation of Data

Collar, Survey, Lithology, and chemical analysis data were imported and processed with DataShed software.

The results indicated that the database had adequate integrity for Resource estimation. This software verifies that the data entered from each sample or reported by the external laboratory
is correct for input into the Resource model.

The team followed the defined processes for information flows to support Resource and Reserve estimation. The qualified persons followed the same method to verify and validate the
data. It has been found that the validated data is congruent in the same interpretations. The QPs generated the fundamental base geological models for the estimation of the Resources.

No findings have been found that could invalidate the estimation of the Resources and Reserves of the unit.

9.2. Piura plant

The Quality Control Plan contemplates the following aspects: PDCA cycle, customer, a person in charge, activities, risks, control methods, monitoring, measurement, analysis,
evaluation, and documentary evidence.

The PDCA cycle is:

● Plan; during this stage, the following activities are considered: determination of characteristics of raw materials, product in-process and finished product, elaboration of control
and matrices parameters, and determination of actions and results in assurance program.

● Do; during this stage, the following activities are considered: verification and compliance with the requirements and matrices, sampling, and preparation.

● Check: during this stage, the following activities are considered: chemical analysis by XRF, chemical analysis, physical analyses, recording of results, taking action on non-
conformities.

● Act, during this stage, the following activity is considered, acting to improve.

● The Quality Assurance Plan is applied to the following customers: production, quarry, provisions chain, and external customer.

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9.2.1. Data verification procedures

The XRF analysis, chemical analysis, and physical analysis are made to verify the results of the samples as part of the Quality Control Plan.

The data resulting from these three types of analysis are recorded and evaluated to determine whether they comply with the technical specifications.

Data verification procedures include internal audits, checklists, statistical tables, reports, data validation, certificates, interlaboratory test reports, and compliance with quality protocols.

9.2.2. Data validation

Cementos Pacasmayo S.A.A. through its quality assurance and control area participates in evaluations with international laboratories such as CCRL/ASTM (Concrete and Cement
Reference Laboratory), which is an international reference laboratory for construction materials, and Xamtec of Colombia, an international interlaboratory, in order to report reliable
data.

The Quality Control laboratories endorse their analysis methods by participating in interlaboratory analysis programs, which compare the results with national and foreign laboratories.
The methods of analysis compared are X-ray fluorescence (XRF) and the physical cement tests, which are the methods used to control cement quality. In all the results of these
interlaboratory programs, the companies always obtain the best results for each test.

9.2.3. Qualified Person’s Opinion on cement plant

In the author’s opinion, the methodologies used for collecting and processing data at the cement plant are accurate and free of fundamental errors. This information can be used for the
model’s construction and estimates for cement production.

Considering that the analyses of the main chemical components and physical properties of the raw materials and final products are made in external laboratories, the quality of the
information is adequate for preparing mineral Resource and Reserve estimates.

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10. Mineral processing and metallurgical testing

10.1. Nature of testing program

Cementos Pacasmayo S.A.A. has a Quality Assurance and Control unit and a Research and Development unit. The objective of these is to develop, evaluate, and research procedures for
developing products at the laboratory level, and they are scaling up to the industrial level. Another objective is to identify other additions that can substitute for clinker: slag, pozzolana,
fly ash, calcined clays, etc., to reduce their environmental footprint and the cost of cement production.

They have also implemented procedures for preparing, reviewing, issuing, and controlling test reports associated with cement production in the Pacasmayo and Piura plants.

The laboratory at Pacasmayo plant has implemented the ISO 9001 standard; Cementos Pacasmayo has implemented a Research and Development laboratory located at the Pacasmayo
plant to evaluate technical aspects in cement plants and quarries (including the Virrila quarry).

A permanent control is carried out with other laboratories to further the results.

Likewise, interlaboratory reports are issued with external laboratories such as CCRL (Cement and Concrete Reference Laboratory), a reference laboratory for construction materials at
the international level, and Xamtec from Colombia, an internal interlaboratory.

An important percentage of Research and Development activities are focused on evaluating different ratios between clinker-mineral additions that provide the best functional
characteristics to our products and at the same time keep balance with the benefits generated for the company. Whether it is a requirement or an own initiative oriented to supply any
previously identified need, the laboratory tests are developed continuously, seeking to generate an operational benefit to the company.

10.2. Cement Manufacturing Test Results

At the Pacasmayo plant, the studies conducted in the Research and Development Laboratory and the Quality Control area include reducing the clinker/cement factor and substituting slag
for pozzolan at the Piura plant. The clinker/cement factor of the cement with additions is 0.7.

10.3. Adequacy of the Test Data

The Research Laboratory issues technical reports following the criteria of international standards to the operations area, which evaluates the convenience of industrially implementing
the tests and validating what has been reported at the laboratory level.

In the opinion of the qualified persons, the reliability and integrity of the cement plant test data that underlies assumptions about cement manufacturing are high and the data is adequate
to support the assumptions in this report. This opinion is based on the technical competence of the area’s collaborators, which is regularly evaluated through different internal and
external interlaboratory programs.

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11. Mineral Resources Estimates

The geological model was developed and structured using Leapfrog software. The QPs generated the model solids, taking into account the lithology of the deposit based on the
geological characteristics and its quality.

Due to the nature of the deposit in its stratified nature and occurrence, the qualified persons interpreted the geological model with the help of a set of sections parallel to the two main
directions of the deposit shape, spaced every 40 meters.

Considering the conceptual model of the project and based on the fieldwork carried out by Cementos Pacasmayo’s geologists, the lithological descriptions were grouped into ten
horizons (Table 23).

Table 23 Lithologic units of the Virrila quarry geological model

Lithologic Units Mine Sight Code Numeric Code

ITEM (TLITO) ITEM (CODEM)
Aeolian sand, brown to brownish color, with seashell remains. SU 1
Earthy calcareous, creamy beige color, scarce seashells and reefs. CT 2
Calcareous with compact shell debris A1 3
Seashell with presence of shells and beige corals A2 4
Massive compact beige seashell and beige corals A3 5
Green clayey silt with intercalation of calcareous levels. LM 6
Beige calcareous compact massive fine matrix. A31 7
Calcareous with remains of seashells and sand with some gravels. B1 8
Calcareous with remains of shells and abundant coarse sand and gravels. B2 9
Green diatomite. DIA 10

The main criterion for the geological model is the quality, supported and associated with the lithological aspect.

46
The lithological criteria are based on the macroscopic physical characteristics of the shell horizons and the percentage of important elements in their composition (oxides).

This analysis uses a quality cut-off of 48.5% of CaO based cement manufacturing technical specifications. In addition, other quality parameters were considered according to the
technical specifications. All criteria together allowed the identification of good quality horizons, which were assigned the following codes in the CAPA item.

Table 24 shows the quality parameters for Domo seashell and Addition seashell.

Table 24 Quality Parameters for Dome and Additive seashells

Domo Seashell Addition Seashell

Min. 48.50 NA
CaO (%) Max. - NA
Target 50.00 NA
Min. - -
MgO (%) Max. 2.00 2.00
Target 1.50 1.50
Min. - -
SO3 Max. 0.85 2.50
Target 0.80 2.00
Min. - -
Cl Max. 0.035 0.035
Target 0.030 0.030
Min. - -
Na2O (%) Max. 0.300 0.30
Target 0.250 0.25
Min. - -
K2O (%) Max. 0.200 0.20
Target 0.150 0.15

The block model was configured based on the dimensions and spatial distribution of the formations containing the material of economic interest.

Table 25 shows the characteristics of the model. (Coordinates in UTM units).

Table 25 Characteristics of the block model

Minimum Maximum (m) Size (m)

(m) Number
X 524,800 528,400 8 450
Y 9343300 9345100 8 225
Z 20 45 0.5 50

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11.1. Database

The Geological Model used 324 samples obtained from test pits and 5,369 samples obtained during production activities for resource estimation.

The data is processed and managed in Data Shed software and then used in Mine Sight software.

11.2. Density

The density data for the estimation of the seashell Resources of the Virrila quarry as of December 2021, were taken from the historical data of sampling results carried out in the first
drilling campaigns. The density ranges between 1.51 and 1.89 t/m3.

11.3. Compositing

In general, each geological unit is estimated from the composite data (the composites were restricted to not cross “hard” boundaries between different geological units).

The objective of composting is to create a distribution of grades of equal support (volumes) from the initial samples in the drill hole. Thus, when compositing, one must be careful that
the composites preserve the original nature of the sample. The calculated values considered in the compositing were for the SiO2, Al2O3, CaO, MgO, and SO3.

Composites were made at different lengths to determine the optimum compositing length, resulting in compositing at 1 m as the length that best fits the nature of the original sample and
is included in the resource estimation process.

In addition, the length of the deposits is considered based on an exact multiple of the height of the blocks used to model the deposit and is also matched to the bench height to be
operated.

11.4. Basic statistics of the data (Assay – Composites)

Table 22 shows the results of the basic statistics of the principal oxides as CaO, SiO2, MgO, Al2O3, SO3, for the original data and the composited data.

QP performed the statistical analysis for each defined body with the interpretation of deposit quality, which were also taken as criteria for modeling and estimation.

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Table 26 shows the statistics for “Horizon A2” as this is the main horizon for estimating the Reserves.

Table 26 Basic data statistics

Componentes Origen Valid Rejected Minimum Maximum Mean Std. Devn. Variance Co. Of Variation
Assay 1856 0 0 56.31 5.54 7.38 54.51 1.33
SiO2
Composite 2458 0 0 55.54 4.59 6.23 38.87 1.36
Assay 1856 0 12.92 56.77 51.58 5.63 31.68 0.11
CaO
Composite 2458 0 15.99 56.77 51.93 4.73 22.36 0.09
Assay 1856 0 0.17 15.78 0.82 1.11 1.23 1.35
MgO
Composite 2458 0 0.19 14.62 0.73 0.89 0.79 1.23
Assay 1856 0 0.01 1.45 0.26 0.14 0.02 0.55
Na2O
Composite 2458 0 0.04 1.25 0.24 0.11 0.01 0.47
Assay 1856 30 0 0.97 0.15 0.17 0.03 1.13
K2O
Composite 2424 34 0 0.97 0.13 0.15 0.02 1.18
Assay 1856 0 0.07 8.81 0.51 0.43 0.18 0.84
SO3
Composite 2458 0 0.07 5.06 0.49 0.30 0.09 0.62
Assay 1856 2 0 0.74 0.024 0.039 0.002 1.595
Cl
Composite 2455 3 0 0,74 0.022 0.037 0.001 1.697

11.5. Extreme values

Extreme values are considered to be those analysis results that are not representative of the unit being studied and are above the mean plus twice the standard deviation.

Of the extreme values in the laboratory results for the calcareous lithologic units that are being estimated, no deviation has been found, all the results are coherent and representative of
the levels to which they correspond

49
11.6. Mineral Resources classification

The parameters for Resource classification used by Cementos Pacasmayo S.A.A. were obtained from the experience of calculating the optimum drilling grid for sampling by
geostatistical methods. Additionally, the variographic analysis was considered taking as reference the variogram range. After considering all these, resource classification was based on
the following criteria:

● Measured Resource: One regular drilling grid.

● Indicated Resource: 2 regular perforation grids.

● Inferred Resource: up to 3 grids.

Several configurations have been defined from this basic configuration, taking into account the number of drill holes and the average search distance.

11.7. Variogram Analysis

In the variogram analysis of the composited data for each level corresponding to each body of economic interest at the Virrila quarry, the variogram structures found do not show any
preferential direction in the correlation. With the variogram is not possible experimental reflects the maximum distance or range and how a point influences another point at different
lengths. In this sense, for the Virrila quarry, the inverse of the distance method was applied.

11.8. Interpolation

The Inverse Distance (ID2) method was used for all variables and Nearest Neighbor (NN) for validations, defining parameters for each estimator. Table 27 shows the main parameters
used to define the interpolations of the main CaO variable of the A2 layer and of the secondary variables, respectively.

The interpolations were performed in 4 consecutive processes.

- The first with a search radius of 5 times the drilling grid.

- The second with a search radius of 3 times the drilling grid.

- The third with a search radius of 2 times the drilling grid and the third with a search radius of 2 times the drilling grid.

- Finally, the range corresponding to 1.5 times the drilling grid.

Regarding the number of composites, we used a minimum of 1 per block and 2 as maximum, for the two first interpolation and a minimum of 2 per block and 3 as maximum for the third
and a minimum of 3 per block and 4 as maximum, respectively.

Additionally, a maximum of 1 composite were considered for each borehole taken in the interpolation.

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 Table 27 Estimation Parameters Secondary Variables

Comment Pass 1 Pass 2 Pass 3 Pass 4

Distance in X direction 200 200 200 200
Distance in Y Direction 200 200 200 200
Distance in Z directions 200 200 200 200
3D Distance 200 200 200 200
Min # Comp 1 1 2 3
Max # Comp 2 2 3 4
Max # Comp DDH 1 1 1 1
Element Model IDW CA1 CA1 CA1 CA1
Element MComp IDW CACA CACA CACA CACA
Pass in Model PSCA1 PSCA1 PSCA1 PSCA1
Pass in comp PASS1 PASS2 PASS3 PASS4
Dist comp DICA1 DICA1 DICA1 DICA1
# comp for Block NCCA1 NCCA1 NCCA1 NCCA1
# comp for DHH NDCA1 NDCA1 NDCA1 NDCA1
Local error SDCA1 SDCA1 SDCA1 SDCA1
Major Axis 200 120 90 60
Minor Axis 200 120 90 60
Vertical Axis 10 10 10 10
ROT 0 0 0 0
DIPN 0 0 0 0
DIPE 0 0 0 0
Body RT1 RT1 RT1 RT1
Body code 1 1 1 1
ORE comp CODEM CODEM CODEM CODEM
Run extension 1 2 3 4
Archive 09 Tot09.dat Tot09.dat Tot09.dat Tot09.dat

11.9. Resources estimation

Resource estimates are effective December 31, 2021. All Resources are estimated at cement plant. For the estimation of Resources, the analysis considered the CaO content as well as
the content of impurities. The impurities are restrictions determined by the cement production plant. Table 28 shows the quantity of Resources and the average values of their quality.

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 Table 28 Resource Categorization (exclusive of Reserves) at the Virrila quarry

Tonnes CaO SO3 MgO SiO2 Na2O K2O Cl

Resources
Mt (%) (%) (%) (%) (%) (%) (ppm)
Measured 21.1 48.50 0.84 0.84 9.80 0.268 0.160 0.111
Indicated 29.2 48.78 0.87 1.23 7.62 0.204 0.222 0.079
Seashell
Measured + Indicated 50.3 48.66 0.86 1.07 8.54 0.231 0.196 0.092
Inferred 3.9 46.42 2.27 1.67 9.96 0.219 0.246 0.066

11.9.1. Cut-off

For the determination of Resources, the costs of extraction, transportation, cement processing and cement dispatch were considered. The costs are based on actual sources of current
operations in Cementos Pacasmayo S.A.A. and the selling price of cement in S/ t (at cement plant). Chapter 18 shows the costs and prices for the determination of mineral Resources.
The main factor for the determination of Resources is quality. The cut off can be seen in Table 24, the Virrila quarry is a sedimentary deposit and, thus, the model for the estimation of
Resources considered the Virrila quarry as a unit, whose seashell production is carried out by 12 m benches.

11.9.2. Reasonable prospects of economic extraction

The Resource estimation considers the Virrila deposit as a set of layers integrated into a single body, defined by the continuity of quality.

The definition of waste is based on the quality (CaO) as the main parameter. The waste is variable in thickness and quality throughout the deposit.

The area associated with the resource estimation is located in the central part of the UEA Virrila and away from the mining property boundaries.

On the other hand, the public road to Bayovar Bay, the transmission line owned by a third party company, and an oil supply pipeline that ends at the port of Petro Peru pass through our
mining concessions. It is important to mention that these components do not interfere with the operations in the Virrila quarry nor with the estimation of seashell resources reported in
this report.

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The Mineral Resource evaluation has considered relevant technical and economic factors such as seashell production costs, cement sales prices, environmental and social viability at our
operations.

From the environmental and social point of view, Cementos Pacasmayo has been developing activities in Peru for more than 60 years and is recognized as a Peruvian company with a
high reputation, therefore, it is expected that the environmental and social viability will continue.

The economic analysis that shows the economic viability of Mineral Resources is presented in Chapter 19.

The information that supports the estimation of the quarry’s Resources is consistent, which allows obtaining a robust Resource model.

It is necessary to update the geological model and standardize the information for the estimation of Resources and Reserves, considering that some areas have test pits and other drillings
as a source of information. Drillings were executed in 2021, and laboratory analysis will be incorporated in the 2022 model for the new production area.

11.10. Qualified person’s opinion

The geological modeling of the Virrila quarry deposit has been developed considering four zones.

Zone 1, the quality and geological characteristics of the calcareous horizons were considered the basis for the interpretation and elaboration of the model, taking into account the
diamond drilling of the different drilling campaigns. The relationship between the information from the drill holes and the geological model is consistent.

The model for zones 2, 3, and 4 has been elaborated from the geological interpretation supported by different test pits campaigns.

It is essential to homogenize the criteria for interpreting the geological information so that the models that support the Resources can be standardized.

The information that supports the estimation of the quarry’s Resources is consistent, allowing obtaining a robust resource model.

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12. Mineral Reserves estimates

The total estimated Mineral Reserves in the Virrila quarry are 45.3 million tonnes which are detailed in Table 30 in their different categories.

In the periodic update of the Reserves of the Virrila quarry, the Reserves produced within the update of the Resource and Reserves models are taken into account. Also taken into
account were any other relevant “modifying factors” (which should be evaluated), or the change and entry of any new data.

The Resources and Reserves estimation in the deposit is mainly based on the calcium oxide (CaO) content, which is a stable variable in the deposit. Its specific values depend on the
lithological domain with its concentration higher in some lithologies than in others.

Based on the Resources model, the Reserves were estimated as the indicated and measured resources in the life of mine pit that supports the mining plans for production and supply of
seashell to the Cementos Pacasmayo S.A.A. plants.

The QPs estimated life of mine consumption of seahell over the 30 years of mine life is based on the estimated Reserves and the projection of plant needs provided by CPSAA
management and finance control department. The projected consumption increases gradually until 2027 and is constant afterwards.

Finally, a drilling campaign was carried out in 2021 to further delineate Reserves in Zone 3. The results should be analyzed and included in the next report.

12.1. Criteria for Mineral Reserves determination

The criteria used for the determination of Mineral Reserves are described below.

12.1.1. Run of Mine (ROM) determination criteria

ROM is considered to be all material produced in the quarry that complies with the specifications and will be sent to the plant for cement production. For determining ROM tonnage,
dilution was considered to be negligible. The recovery in the quarry was assumed to be 100%.

12.1.2. Cement plant recovery

The seashell received at the Piura plant is properly stored and then mixed with other raw materials to obtain the crude (kiln feed). On average, the crude contains 72% seashell. After the
crude is obtained, it is fed to the calcination kiln to obtain clinker. Finally, the clinker is mixed with additives to obtain cement.

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12.2. Reserves estimation methodology

For the determination of the mineral Reserves, the costs of production, transportation, cement processing, and the quality restrictions of the raw material, were considered. The costs are
based on actual sources from the current operations of Cementos Pacasmayo S.A.A. in Virrila quarry and Piura plant. Chapter 19 shows the economic analysis to determine the Mineral
Reserves.

● Reserves meet the quality restrictions for seashell at the Piura plant (Table 31).

● Proven and Probable Reserves are derived from Measured and Indicated Resources, respectively.

● Proven and Probable Reserves are within the life-of-mine pit designed for the Virrila quarry.

● Reserves are those for which economic viability has been demonstrated by estimating capital costs, operating costs, and cash flow analysis.

● Cementos Pacasmayo S.A.A. has an agreement with the San Martin de Sechura Community associated with the Virrila concession. The agreement allows Cementos
Pacasmayo to produce shell from year 2010 to year 2040.

● The effective date of the Reserve estimate is December 31, 2021.

● The point of reference is at the point of delivery to the Piura plant.

Table 29 Quality restrictions Piura plant

Domo Seashell Addition Seashell

Min 48.50 NA
CaO (%) Max - NA
Target 50.00 NA
Min - -
MgO (%) Max 2.00 2.00
Target 1.50 1.50
Min - -
SO3 Max 0.85 2.50
Target 0.80 2.00
Min - -
Cl Max 0.035 0.035
Target 0.030 0.030
Min - -
Na2O (%) Max 0.300 0.30
Target 0.250 0.25
Min - -
K2O (%) Max 0.200 0.20
Target 0.150 0.15

The economic analysis that shows the economic viability of Mineral Resources and Reserves is presented in Chapter 19.

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12.3. Reserves estimates

Reserves are expressed in tonnes and are shown in Table 30.

Table 30 Ore Reserves expressed in million tons

Reserves Tonnes M CaO (%) SO3 (%) MgO (%) SiO2 (%) Na2O (%) K2O (%) Cl (ppm)
Seashell Proven 42.4 49.99 0.55 0.55 6.78 0.222 0.212 0.111
Probable 2.9 47.77 0.96 0.92 9.71 0.234 0.269 0.120
Total 45.3 49.85 0.58 0.57 6.97 0.223 0.216 0.112

The Reserves calculated for Virrila quarry from the Mineral Resources consider the risk factors and modifying factors. The quality factors are considered the most sensitive factors that,
by their nature, can affect the Reserve estimates. Although the main variable is considered to be CaO, which is very stable in the deposit, there are others that determine the quality of the
Reserves and could even affect the process if they are not adequately controlled, such as the Chlorine and SO3 content.

In the process of calculating Reserves and in the quarry production plans, these variables have been adequately considered in the mining plan by proper production sequencing with
blending processes.

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13. Mining methods

Cementos Pacasmayo S.A.A. is the current owner of the Virrila quarry and is in charge of the seashell´s production. The loading/transport of seashell has been outsourced to a
contractor, Posada Peru S.A.C. Cementos Pacasmayo S.A.A. supervises the quarry to verify the activities and output according to the requirements of the Cement Plant.

In 2013, Cementos Pacasmayo S.A.A. performed a geotechnical study at the Virrila quarry to understand the rock mass.

In 2015, Cementos Pacasmayo S.A.A. carried out hydrogeological studies at the Virrila quarry to understand hydrology.

13.1. Mining methods and Equipment

The mining method is open-pit mining with benches, ramps, and access roads. The main production unit is a Surface Miner. The quarry does not require explosives. Figure 10 shows the
overall production process. The main production activities are:

1. Production with a surface miner;

2. Stacking;

3. Loading for dispatch; and

4. Weighing and transport.

Figure 10 Mining secuence of Virrila quarry

● Production with surface miner

The surface miner is used in horizontal layers of 0.25 meters deep by 3.8 meters wide. Subsequently, it is sampled to assess the quality of the seashells

● Stockpiles

The material is stacked using a front-end loader. The stockpiles consider the angle of repose of the material and form slopes of 37°, maximum height of 3 m, and a maximum
volume of 25,000 m3 per stockpile.

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 ● Loading, Weighing and transport

The dump trucks are weighed on an 80 tonnes capacity platform scale. The material is transported from Virrila quarry to Piura plant.

Table 31 shows the main equipment used to conduct production activities at the Virrila quarry.

Table 31 Mining equipment at the Virrila Quarry

Equipment Quantity Function Description

04 Personnel and material

Pickup van Personnel Transportation
transport units.
02 Seashell production
Surface Miner Continuous mining
04 Material Loading and Material handling
Front Loader equipment.
Stacking
02 Auxiliary equipment to
ensure the operability of
Tanker truck track watering
quarry equipment and
personnel.
04 Equipment for conveying
material from the
Dump truck Material hauling production areas to the
primary crusher. Their
capacity is 15 m3.

13.2. Geotechnical aspects

In 2013, Cementos Pacasmayo hired DCR Ingenieros S.A.C. to conduct geotechnical studies of the Virrila quarry. This serves as the basis of geotechnical assumptions used at the quarry
to date. The main results are presented below.

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During the study, DCR Ingenieros S.A.C noted that the lithological profile is stable when cut. With slopes between 75° to 80° of inclination, no slides or landslides occur. The stability
analyses determine these conditions.

Table 32 Virrila quarry physical stability analysis summary

Safety factor
Typical section Typical section Cutting slope angle (°) Static Pseudo-Static
Section A-A’ 7 80 2.077 1.713
Section A-A’ 8 75 2.323 1.827
Section B-B’ 12 75 1.897 1.490
Section B-B’ 16 75 2.477 1.920

Analysis methodology

Stability analyses were performed using the Rocscience SLIDE software, version 5.014, which allows the user to perform limit equilibrium calculations.

The software used allowed engineers to search for the most critical failure surface with the lowest safety factor for a given geometry and materials.

The analysis considered the Morgenstern-Price and Spencer limit equilibrium methods, which satisfy the equilibrium of forces and moments.

It also considered that the material is homogeneous and isotropic and that plastic collapse would occur due to the progressive failure mechanism along the slip surface.

Factors of Safety

The safety factors recommended for the stability analyses are based on the recommendations of the Environmental Guide for Slope Stability of Solid Waste Deposit Slopes of the
Ministry of Energy and Mines, the United States Society of Dam (USSD), and the United States Bureau of Reclamation (USBR).

According to the guidelines mentioned above, the following safety factors are considered:

- Minimum factor of safety in static conditions is 1.5.

- Minimum factor of safety in the pseudo-static condition is 1.0

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Geotechnical Parameters

The geotechnical parameters used for the physical stability analysis were obtained from geotechnical field and laboratory investigations and based on a geomechanical evaluation using
the RocLab program (Rocscience).

Table 33 summarizes the geotechnical parameters used in the static and pseudo-static stability analysis.

Table 33 Geotechnical properties of materials

Materials Specific gravity Angle of Cohesion (c)

(kN/m3) friction (ɸ°) (kPa)
Geotechnical unit UG-I
16 30 0
(Quaternary deposit)
Geotechnical unit UG-II
20 24 23
(Very weak to weak seashell)
Geotechnical unit UG-III
22 40 61
(Weak to moderately weak sandstone)

Due to the characteristics of the calcareous material (cemented seashell) present in the Virilla quarry, as well as the depth at which the calcareous material to be produced is present, the
physical stability of the quarry’s production cuts has been analyzed, considering the following typical cutting geometry:

Cutting slopes: 75° - 85°.

13.3. Hydrological Aspects

Based on the study that DRC Ingenieros S.A.C conducted in 2013, Ram Perú S.A.C drilled two piezometers in the Virrila quarry to obtain information associated with the hydraulic tests
being applied to date. The main results are presented below.

Topographically, this unit is developed at a maximum elevation of 80 meters above sea level, being slightly inclined to the SE. The quarry is located on a raised Pleistocene marine
terrace, higher than 60 meters above sea level; Its relief is essentially flat, with slight undulations due to wind action. Though, it is under the influence of the Piura river basin; the quarry
is not at risk of flooding.

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13.4. Other mine design and planning parameters

The seashell production achieved during the year 2021, using the equipment described in Table 31, is 1,424 tons of seashell, and 1,493 M tons of waste rock, which gives a stripping
ratio of 1.05.

Based on the plant requirements and sales projection for the next 30 years, the pit design parameters for the Virrila quarry are presented in Table 34.

Table 34 Mine design parameters

Description Value
Maximum pit height 12 meters

Maximun bench height 6 meters

Pit bank slope 75° to 80°

Production (t/h) 500

Net production hours 10

Surface miner production (t/d) 5,000

Number of workdays per month 25

Production per month (t.) 125,000

Number of working months per year 12

Estimated annual production (t) 1,500,000

13.5. Annual production rate

Considering that the cement plant demands an average annual production of 1.51 million tonnes per year of seashell, the plan for the following 30 years is shown in Table 35.

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13.6. Mining plan

The forecasted mining plan for the next 30 years is presented in Table 35.

Table 35 Minning plan forecast

Year Tonnes (t) CaO MgO SO3 Cl Na2O K2O SiO2

2022 1,449,625 52.62 0.668 0.436 0.02 0.258 0.107 3.463
2023 1,501,698 53 0.573 0.421 0.019 0.25 0.092 3.16
2024 1,505,361 50.2 0.576 0.533 0.085 0.217 0.224 6.269
2025 1,509,096 50.01 0.619 0.792 0.091 0.213 0.233 6.951
2026 1,512,906 51.29 0.518 0.503 0.124 0.21 0.195 4.602
2027 1,515,623 49.42 0.554 0.538 0.07 0.214 0.229 7.763
2028 1,515,623 50.25 0.468 0.562 0.233 0.22 0.216 6.594
2029 1,515,623 50.15 0.576 0.461 0.077 0.215 0.218 6.585
2030 1,515,623 51.2 0.473 0.487 0.074 0.208 0.201 5.096
2031 1,515,623 50.96 0.481 0.588 0.068 0.213 0.196 5.038
2032 1,515,623 50.93 0.468 0.517 0.109 0.219 0.209 5.761
2033 1,515,623 50 0.488 0.581 0.098 0.225 0.213 6.409
2034 1,515,623 50.51 0.5 0.556 0.072 0.211 0.209 5.689
2035 1,515,623 48.64 0.509 0.504 0.116 0.226 0.24 8.681
2036 1,515,623 50.74 0.509 0.758 0.413 0.241 0.201 4.756
2037 1,515,623 50.68 0.531 0.75 0.468 0.244 0.206 5.366
2038 1,515,623 49.02 0.507 0.547 0.169 0.229 0.237 9.105
2039 1,515,623 48.54 0.73 0.713 0.164 0.228 0.242 8.846
2040 1,515,623 48.56 0.61 0.609 0.063 0.216 0.24 9.016
2041 1,515,623 48.52 0.495 0.497 0.075 0.218 0.239 9.212
2042 1,515,623 48.71 0.619 0.619 0.061 0.222 0.239 8.522
2043 1,515,623 48.55 0.694 0.674 0.064 0.225 0.252 8.897
2044 1,515,623 49.33 0.573 0.506 0.064 0.219 0.233 8.371
2045 1,515,623 49.89 0.485 0.415 0.055 0.213 0.224 7.316
2046 1,515,623 49.61 0.54 0.507 0.192 0.225 0.22 7.176
2047 1,515,623 48.71 0.569 0.549 0.058 0.211 0.227 8.23
2048 1,515,623 48.82 0.642 0.666 0.059 0.231 0.228 7.906
2049 1,515,623 48.66 0.715 0.619 0.068 0.242 0.253 8.791
2050 1,515,623 48.52 0.802 0.61 0.058 0.224 0.236 8.645
2051 1,515,623 49.47 0.685 0.833 0.065 0.205 0.208 6.913
Total 45,369,255 49.84 0.57 0.58 0.11 0.22 0.22 6.98

In the same 30-year period, the removal of waste rock will have a stripping of 0.33 tonnes of waste rock/shell.

Figure 11 shows the final limit of the open pit, mining the total seashell reserve.

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 Figure 11 Virrila quarry boundary

13.7. Life of Mine

The life of the Virrila quarry is 30 years.

13.8. Staff

The Cementos Pacasmayo personnel develop its operations at the Virrila quarry with its staff and contractors.

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14. Processing and recovery methods

14.1. Process Plant

The cement production process includes different stages: quarry production, reception of raw materials, raw material grinding, clinkerization, cement grinding, cement packaging, and
cement dispatch.

The process begins with the reception and storage of raw materials; then, the material is fed to the raw milling stage, where the raw materials (seashells, clay, bauxite, sand, and iron ore)
are mixed in specific quantities to obtain a material known as “crude.”

Piura plant has a vertical mill for the raw material grinding stage. This equipment allows pulverizing all raw materials to obtain an average fineness of less than 15% measured on a 170
µm mesh.

The crude obtained is transported to a homogenizing silo, where it is stored before feeding it to the kiln.

This stage aims to reduce the variability of the raw material mix and guarantees the uniformity of the quality of production in the clinkerization stage.

The homogenized raw material is fed into the rotary kiln. The temperature of the clinkering process reaches approximately 1450°C; the resulting product is called “clinker.”

The clinker obtained is then pulverized in a vertical mill, with small amounts of gypsum and other mineral additions (such as slag, pozzolana, and seashells). Combining different
proportions of these minerals makes it possible to obtain the different types of cement marketed.

The Piura plant has two silos for special cement and one silo for Type I cement for cement storage.

There is also finished product storage (APT) for storing cement packaged in bags and big bags.

Before shipment, the quality control laboratory evaluates the cement produced for all the physical and chemical characteristics required by current technical standards. After the
validation process, the Quality Assurance unit approves the cement for bulk or 42.50 kg bags.

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14.2. Raw materials for the cement production

At the Piura plant, the following raw materials and additions are used to produce cement.

Raw materials

Seashell: Material composed mainly of calcium carbonate, used as raw material and as additive in cement production.

Sand: Inert material composed basically of crystalline silica, aluminum, and alkalis such as potassium and sodium.

Iron: Inert material composed basically of iron oxide (Fe2O3).

Clay: Inert material composed of silicon, aluminum, and a low proportion of alkalis such as potassium and sodium.

Bauxite: Material used as a source of alumina. Its primary function is an alumina corrector and melting effect in the clinkerization process.

Coal: Solid, black, or dark brown mineral that contains carbon and small amounts of hydrogen, oxygen, and nitrogen, for the most part.

Crude: Artificial mixture of seashell, clay, sand, and iron, used to produce clinker.

Clinker: Product obtained during the calcination of the mixture of seashell, sand, clays, and iron.

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Fossil fuel

For the heating process of the rotary kiln, it is necessary to use fossil fuels that are easy to burn since this process starts at low temperatures. For this purpose, the Piura plant has systems
that can use natural gas and DB5 diesel as complementary fuels for the clinker production process.

Additives
Slag: Artificial pozzolanic material that can be set in contact with water and develop compressive strength.

Pozzolan: Materials containing silica and/or alumina of natural or artificial origin.

Gypsum: Material composed of calcium sulfate hydrates. The mineral gypsum may contain crystalline silica. When gypsum is mixed with the clinker, it controls the setting time when
the cement initiates the hydration reactions.

14.3. Flow sheet

Figure 12 shows the flow sheet for the cement production at the cement plant.

Figure 12 Piura plant process block diagram

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14.4. Main equipment

Table 36 below shows the design capacities for clinker and cement production.

Table 36 Main equipment in Piura plant

Equipment Product Capacity of production Unit

Kiln Clinker I 90,000 tonnes/month
Mill Crude I 180,000 tonnes/month
Pulverized Coal 12,240
Cement 133,00
Bagging system Cement 6,000 bags/hour

14.5. Cement Plant Mass balance

Table 37 shows the balance of crude production. In addition, Table 38 also shows the balance for cement production considering the additions used for the mixture with clinker and,
consequently, cement production.

Table 37 Balance for crude production

Raw material Annual quantity (tonnes/year) Dosage

Seashell 1,175,151 78.4 %
Others 324,424 21.6%
Crude 1,499,575 100 %

* Crude includes coal.

The crude is fed to the rotary kiln. The production of 0.6 tons of clinker requires one ton of crude.

Table 38 Balance para production de cement

Raw Material Annual quantity (tonnes/year) Dosage

Clinker 965,169 72.9 %
Additions 358,618 27.1 %
Cement 1,323,787 100 %

14.6. Process losses

Losses in the cement production process associated with the raw material (seashell) are 1.55%.

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14.7. Water consumption

The Piura plant has a reverse osmosis plant for the water supply system for clinker production, which is used in the clinker and cement grinding processes. It is also used to irrigate green
areas and access roads.

14.8. Fossil fuel consumption

Liquid fuels and eventually natural gas (depending on availability) are used to generate the hot gases required in the production process. Table 39 shows the consumption of liquid fuels
used in Cementos Pacasmayo S.A.A. - Piura plant, based on the volumes consumed during 2021.

Table 39 Fuel Consumption for Cementos Pacasmayo S.A.A – Piura Plant

Fuel Consumption Description

Natural Gas 0 m3 PC: 7.8 GJ/Nm3
Diesel B5 365,258 gal PC 41.20 GJ/t

14.9. Electric power consumption

Cementos Pacasmayo S.A.A. - Piura plant has an electrical substation with a nominal capacity of 37.50 MW, with an average off-peak energy consumption of 20.0 MW, which is
supplied by the national interconnected network.

14.10. Maintenance Plan

Cementos Pacasmayo S.A.A. has initiatives to diversify energy sources and secure supply when possible. Cementos Pacasmayo has implemented a preventive and corrective
maintenance plan to maintain the cement production. Cementos Pacasmayo controls operating efficiency to assure costs and operating margins. The equipment is in good condition and
operational.

14.11. Staff

The Cementos Pacasmayo personnel develop its operations at the Piura plant with its staff and contractors.

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15. Infrastructure

15.1. Virrila quarry

Electricity consumption during the operation stage is 100 kW-h, and a powerhouse provides the power supply with a 100 kW generator set.

The fuel is supplied by a contractor using diesel oil trucks.

Water consumption in quarry operations is for human consumption and industrial use.

The quarry has offices and workshops for minor maintenance. No explosives storage is required, no crushers are used, and there is a scale for the dispatch of seashells trucks located in
an area adjacent to the offices.

Figure 13 Virrila quarry facilities

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15.2. Piura plant

The Piura plant has an installed power substation of 25 MW for use in electric motors and lighting of the plant.

Power is supplied through a 60 KV transmission line from ENOSA’s Piura Oeste sub-station to the plant’s substation. The plant’s substation is equipped with voltage transformers,
protection, and energy metering equipment.

About the fuel infrastructure, there is a pipeline system for liquid fuels and natural gas.

The water supply comes from a deep well; the water is for industrial use, irrigation, and sanitary services. Drinking water which is supplied in drums, is used for human consumption.

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16. Market Studies

Cementos Pacasmayo is a leading company in cement production and other construction materials in the north of Peru. The following chapter describes the cement market and the macro
and microeconomic factors that define it.

For the description of the cement market in Peru, public information has been collected from different sources, such as the Central Reserve Bank of Peru (BCRP), National Institute of
Statistics and Informatics (INEI), Association of Cement Producers (ASOCEM), Ministry of Housing, Construction and Sanitation, Superintendency of Tax Administration and the
Peruvian Construction Chamber. In addition to this information, this chapter also relies on statistics provided by the company (CPSAA) to understand its specific market better.

16.1. The cement market in Peru

The Peruvian cement market is geographically segmented by north, central, and south regions. Diverse companies supply each area. Figure 14 illustrates the Peruvian map and its three
regions, according to the segmentation of the cement market, where each part is the area of influence of domestic cement companies.

Figure 14 Segmentation of the cement market in Peru

The main companies that supply Peru’s cement market are Cementos Pacasmayo S.A.A., UNION Andina de Cementos S.A.A., Yura S.A., and Cementos Selva S.A. Some companies
import cement or clinker, such as Caliza Cemento Inca S.A., Distribuidora Cemento Nacional S.A.C., CEMEX Perú S.A., Cal & Cemento Sur S.A., amongst others.

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Table 40 shows the cement shipments at the domestic level (in thousands of tonnes):

Table 40 Cement shipments at domestic level (in thousands of tonnes)

2019 2020 2021

National cement shipments 10,317.0 8,979.0 12,500.0
Overall cement shipments (CPSAA/CSSA, 3 plants) 2,613.7 2,581.4 3,625.2
Piura cement plant shipments 948.0 1,007.1 1,317.5
Sources: ASOCEM and CPSAA/CSSA.

The cement produced by the main cement companies of the country is Type I, Type V, Type ICO, Type IL, Type GU, Type MS (MH), Type HS, Type HE, Type MH.

It is important to mention that, according to the main requirement standards, Peruvian Technical Standards, there are five cement types:

● NTP 334. 009 2013. Cements Portland. Requirement. (ASTM C 150).

● NTP 334. 090 2013. Cements Portland Added. Requirements. (ASTM C595).
● NTP 334. 082 2011. Cements Portland. Performance Specification. (ASTM C1157).
● NTP 334. 050 2004. Cements Portland White. Requirements. (ASTM C150).
● NTP 334. 069 2007. Building Cements. Requirements. (ASTM C091).

Cementos Pacasmayo only produces cement that meets the first three NTP standards.

16.2. Industry and Macroeconomic Analysis

Producers and trading companies of cement compete mainly within the limits of their area of influence, which is determined by the geographical location of their plants, giving rise to
segmentation of the national market. However, the north region presents a high demand potential because of the infrastructure gap, the housing deficit, and a higher capillarity in terms
of essential cities adjacent to one another, and with an urbanization level lower than in the central and south regions.

On the other hand, one should underline the importance of transportation in the structure of cement costs, which are composed primarily of raw materials, fuels, and transportation.

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The cement market and the industry in Peru have the following characteristics:

● The base of consumers is highly segmented, informal, and of low resources.

● Low costs of energy and raw materials.
● Zone of influence/distribution determined by the geographical location of the plant.
● High correlation between public and private investment and self-construction.
● The construction sector and cement industry are directly related to the Gross Domestic Product (GDP) and Private Consumption.

Figure 15 shows how the Global of the construction sector (variation % monthly) accompanies the cyclic behavior of the Global GDP (variation % monthly), indicating variations of
lower significance than those of the Global GDP, but in the same direction.

It is also noted that, in May 2020, the GDP of the construction sector had a positive variation of more than 200% (compared to the previous month), while the Global GDP was only
10%.

This situation was due to the confinement measures given by the Government to counter the Covid-19 pandemic. This reactivation was motivated primarily by the private-construction
sector’s consumption. Under the uncertain conditions caused by the health and economic crisis in 2020, consumers showed savings behaviors, which meant that people preferred
consumption of goods for home improvement, including cement.

This trend was maintained throughout 2021, even before a higher uncertainty caused by the elections and the result of elections, which was reflected in sustained growth rates of internal
consumption of cement related primarily to self-construction.

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 Figure 15 Global GDP and Construction sector GDP MoM variation (%)

Source: INEI

The cement industry is also driven by housing sector growth, public and private investment in infrastructure, mining projects, shopping centers, construction of transportation systems,
etc. Thus, one of the variables with more impact on the cement industry and future demand is the infrastructure gap which remains high in the country.

For the 2016 – 2025 period, the infrastructure gap is estimated at US$ 160 billion, and this is present in the main economic sectors and services of public supply, that is, Transportation
(36%), Energy (19%), Telecommunications (17%), Health (12%), Sewage System (8%), Irrigation (5%) and Education (3%).

Ninety percent of the roads not included in the extensive national road network remain without pavement; only 40% of schools have access to essential services such as water,
electricity, and sewage system; there are only 15 hospital beds for every 10,000 individuals, compared to 27 beds recommended by the WHO.

It is estimated that public investment grew 10% in 2021 and will grow 5% in 2022, as a result of the higher expenditure in reconstruction works under the Government to Government
Agreement with the United Kingdom, as well as Special Projects of Public Investments and the projects within the frame of the National Plan of Infrastructure for Competitivity (NPIC).

74
Regarding the Government´s reconstruction plan that it is implementing, it is expected to have a significant impact on cement sales in the northern region because most of the budget is
targeted at that area.

16.3. The North Region Market

Cementos Pacasmayo, a leading company in the production and sales of cement in the North Region, has market presence in the following cities: Cajamarca, Chiclayo, Chimbote, Jaén,
Pacasmayo, Piura, Rioja, Tarapoto, Trujillo, Tumbes, Yurimaguas and Iquitos. CPSAA has a Market share of over 90% in the country’s north region.

Piura plant supplies almost 33% of the cement demand of the country’s North Region. Overall shipments of the Piura plant for 2021 were 1,317.5 thousand tonnes.

Other companies with lower presence in the cement market of the North Region are:

● Wang Peng
● Quisqueya - Cemex
● Cemento Nacional
● Cemento Inka
● Cemento Tayka
● Cementos Patrón

These companies are competitors of the Piura plant.

Cementos Pacasmayo S.A.A Piura plant produces different types of cement. It has placed in the National Market other trademark products to meet the needs of diverse segments of the
market. Table 41 shows the products in the Piura plant.

Table 41 Cement at Piura plant

Business Name Use Comment

Cemento Portland
The average result of resistance to compression is
Cement Type I Cement of general use. higher than the minimum requirement set forth in the
technical standard NTP 334.009 / ASTM C150.

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 Cemento Portland Added
Ideal for Works which require moderate hydratation heat, for Works The average result of resistance to compression is
Cement Fortimax exposed to sulphate action and for Works near to large water sources higher than the minimum requirement set forth in
(sea, lakes, rivers, etc.) technical standard NTP 334.082 / ASTM C1157.
Ideal for the execution of structural Works, repairs, remodelings,
The average result of resistance to compression is
home applications, floors, levelings, grouts, tips, prefabricated
Cement Extra Forte higher than the minimum requirement set forth in
elements of small and medium size and concrete elements which
technical standard NTP 334.090.
require special characteristics.
Hydraulic Cements specified by performance
For structures in contact with environement and humid and salty
Line Mochica MS
soils.

16.4. Cement price

The sale prices of cement in the Peruvian market vary according to their type and geographical location.

The price difference of each type is explained primarily by the dosifications of raw materials and additives. The variations for geographical location are caused by the freights for the
distribution to the points of sale.

At the domestic level, the cement price in 2021 was, on average, 541.18 S/ x t. Figure 16 shows the historical prices of cement in Peru

Figure 16 Historic prices of cement in Peru

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Figure 16 shows sustained growth of more than 4% per year from 2015 until 2018. It fell slightly in 2019 to climb again in 2020. The annual growth rate for the 2014 – 2020 period is
3.01%, which is consistent with the annual inflation rate of the target range of the Central Reserve Bank of Peru.

16.5. Current and future demand

Cement demand at the national level is met by local shipments (local production), for the most part, and by imports. In 2021, 12.50 M tonnes were shipped locally, 40% more than in the
same period of 2020 (9.0 M). Imports amounted to 0.88 M tonnes during 2020; 23% above the 2020 figure (0.72 M). Thus, cement demand in 2021 is estimated at 13.3 M tonnes.

Figure 17 shows the evolution of the national demand for cement, expressed in thousands of tonnes, since 2016.

Figure 17 Evolution of the national demand of cement

Source: ASOCEM

The domestic demand has been growing at 3% per year, except in 2020; due to the pandemic and the confinement measures; it takes a historic leap in 2021, with an annual increase of
38%.

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According to our internal information, in terms of regional distribution, the Northern Region accounts for approximately 28% of domestic cement demand, the Central Region for 50%,
and the Southern Region for 22%.

Cementos Pacasmayo’s cement shipments (3 plants) reached 3,625.2 thousand tonnes in 2021, capturing a 26.8% share of total shipments in Peru and 90% in the Northern Region. This
is 40.4% more than in 2020 (2,581.4 thousand tonnes). This increase in shipments occurs in a context of economic recovery, despite the Covid-19 pandemic and political instability, and
is explained by the high growth rates of domestic cement consumption registered since mid-2020. The key factor was the self-construction sector and the high execution of investment
projects.

It is expected that the positive trend remains in the internal consumption of cement, at the domestic level and in the northern region, driven by the growth of the Peruvian economy,
which is recovering at a higher rate than other countries of the region.

The private-construction sector which is still one of the main driving forces of cement demand, and the Government´s reconstruction plan for damages caused by El Niño, is being
executed through an agreement between the Peruvian and the British governments.

The growth of the Peruvian economy will positively impact Cementos Pacasmayo’s cement shipments because most of the budget is concentrated in the company´s influence zone.

Table 42 shows the projection of future demand or shipments of cement for the Piura plant.

Table 42 Forecast of future demand for Piura cement plant

Cement
Shipments Variation
Year (Tonnes) (%)
2022P 1,428,618
2023P 1,457,190 2.0%
2024P 1,486,334 2.0%
2025P 1,516,061 2.0%
2026P 1,546,382 2.0%
2027P 1,568,000 1.4%
2028P 1,568,000 0.0%
2029P 1,568,000 0.0%
2030P 1,568,000 0.0%
2031P 1,568,000 0.0%
2032P 1,568,000 0.0%
2033P 1,568,000 0.0%
2034P 1,568,000 0.0%
2035P 1,568,000 0.0%
2036P 1,568,000 0.0%
2037P 1,568,000 0.0%
2038P 1,568,000 0.0%
2039P 1,568,000 0.0%
2040P 1,568,000 0.0%
2041P 1,568,000 0.0%
2042P 1,568,000 0.0%
2043P 1,568,000 0.0%
2044P 1,568,000 0.0%
2045P 1,568,000 0.0%
2046P 1,568,000 0.0%
2047P 1,568,000 0.0%
2048P 1,568,000 0.0%
2049P 1,568,000 0.0%
2050P 1,568,000 0.0%
2051P 1,568,000 0.0%

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17. Environmental studies, permitting, and plans, negotiations, or agreements with local individual or groups.

17.1. Environmental Aspects

Cementos Pacasmayo has corporate policies applied to the operations of quarries and cement plants. Relevant policies include Safety Occupational Health Policy, Quality Policy, and
Environmental Policy.

Cementos Pacasmayo S.A.A. carries out activities in Virrila quarry and Piura plant according to the environmental legislation.It has an environmental authority in the industrial sector
and another authority (Ministry of Energy and Mines) that issues an opinion for the Closure of quarries.

Likewise, Cementos Pacasmayo complies with the provisions of the Regulation with Superno Decree No. 033-2005-EM - Regulation of the Mine Closure Law.

17.1.1. Virrila quarry

The quarry has an Environmental Impact Study approved by the Ministry of Production by Directorial Resolution N° 207-2014-PRODUCE/DVMYPE-I/DGAAMI dated September 12,
2014, for the exploitation of limestone material in the non-metallic mining concessions Virrila 3, Virrila 10, Virrila 11, Virrila 12, Virrila 15, Virrila 16, Virrila 19, Virrila 20, Virrila 21,
Virrila 22 and Virrila 23.

The Environmental Impact Assessment (EIA) included the identification of potential environmental impacts for which preventive and mitigation measures were defined. The mitigation
plans were established in the Environmental Management Plan to be developed during the exploitation stage.

On December 12, 2016, through Directorial Resolution No 053-2016-PRODUCE/DVMYPE-I/DGAAMI, the first Sustaining Technical Report (ITS) for the Modification of the Virrila
quarry Exploitation Project was approved. The modification was requested to relocate and expand auxiliary components to optimize the quarry exploitation operation.

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On February 14, 2019, through Directorial Resolution No 152-2019-PRODUCE/DVMYPE-I/DGAAMI, the second Sustaining Technical Report (ITS) for the Modification of the Virrila
quarry Exploitation Project was approved.

The modification was requested to modify the production area of Zone 1, modify the mining process through surface miners, execute diamond drilling as part of the confirmation of
mining reserves in Zone 1, install portable fuel tanks, and modify and redistribute the administrative area.

On December 9, 2020, Directorial Resolution No 467-2020-PRODUCE/DVMYPE-I/DGAAMI, the third Sustaining Technical Report (ITS) of the Quarry Limestone Pile Design
Modification Project was approved. The modification included changes to the design of piles (stock) of limestone material from the quarry, described in the Environmental Impact Study
approved in 2014.

On June 10, 2021, through Directorial Resolution No 307-2021-PRODUCE/DGAAMI, the fourth Sustaining Technical Report (ITS) of the Quarry Mining Reserves Confirmation
Project was approved, through which diamond drilling was carried out in the Virrila quarry, to have certainty in quality and quantity of the reserves.

Cementos Pacasmayo complies with Peruvian legislation on Closure Plans. Under current legislation is the Regulation of Environmental Management of the Manufacturing Industry and
Domestic Trade, Supreme Decree No. 017-2015-PRODUCE, this rule establishes the environmental management of the activities covered by Ministerial Resolution No. 157-2011-
MINAM, table of the first update of the list of inclusion of investment projects subject to the National System of Environmental Impact Assessment (SEIA).

Law No. 28090 and its Regulation approved by Supreme Decree No. 033-2005-EM establishes the closure measures for non-metallic quarries. The Directorial Resolution Number 548-
2015-PRODUCE/DVMYPE-I/DIGGAM approved the Closure Plan of the mining unit Quarry Virrila.

About water management, it is essential to mention that Virrila quarry does not have any discharges. The small water consumption is only for green area irrigation and road maintenance.

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The approval of the Mine Closure Plan involves the constitution of guarantees to ensure that the owner of the mining activity complies with the obligations derived from the Mine
Closure Plan by environmental protection regulations.

The Closure Plan submitted by Cementos Pacasmayo has included the necessary measures to ensure effectiveness or consistency with the requirements required to protect public health
and the environment. The initial strategy has continued with the components of the Virrila quarry mining unit, establishing temporary, progressive, final, and post-Closure activities at
the end and/or closure of operations.

Environmental closure activities have included physical stability in the mine, geochemical stability, water management facilities, dismantling for equipment and machinery removal,
infrastructure demolition, reclamation, waste disposal, landform establishment, habitat rehabilitation, and revegetation and social programs.

CPSAA will carry out Post-closure activities such as physical, geochemical, hydrological, and biological maintenance. Post-closure monitoring activities include physical stability
monitoring, geochemical stability monitoring, water management monitoring, biological monitoring, and social monitoring.

Considering that the land use before mining production was a barren area typical of the coastal geography of the Piura Region, forestation activities with native species have been
considered part of the post-closure activities. Likewise, CPSAA will fulfill the commitments included in the Closure Plan approved by the above authority.

CPSAA has a solid relationship with our communities. The social responsibility programs were focused on identifying its primary necessities in health, education, urban development,
and local development.

In this situation, we have a social investment program that contributes to dealing with their necessities based on good dialog and compliance with our commitments.

The communities are high-priority stakeholders. For this reason, we promote periodic meetings with their representatives, and we create opportunities for dialog to know their
expectations. Also, we have established public and private alliances for development projects and programs to contribute to better life quality and strengthen our relations. In 2021,
CPSAA worked in partnership with the district governments of Piura and Virrila.

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17.1.2. Piura plant

On May 29, 2013, according to Directorial Resolution No 008-2013-PRODUCE/DVMYPE-I/DIGGAM, the Environmental Impact Study for the Piura Cement Manufacturing Plant
project was approved.

The environmental study was prepared by the consultant GEOSERVICE INGENIERIA SAC. The environmental document describes the characteristics of the project, areas of
influence, physical, biological and socio-economic environment, identification of the environmental impacts generated by the activities, proposing, according to these, an Environmental
Management Plan and Mitigation Measures, to reduce or control these impacts.

The approval of the environmental study considers the submission to the authority, reports on a semi-annual basis, referring to environmental monitoring report and implementation
report of the environmental management plan.

On April 30, 2015, Directorial Resolution No. 113-2015- PRODUCE/DVMYPE-I/DGGAM, approved the Environmental Impact Statement of the Project Expansion of Cementos Piura
plant facilities, prepared by the consultant GEOSERVICE INGENIERIA SAC. The approval of the study considers the Environmental Management Plan.

On the other hand, Cementos Pacasmayo S.A.A. submitted to the Ministry of Production a Technical Report to implement the Piura Plant Component Expansion Project, which is
currently being evaluated by the environmental authority of Peru. This project contemplates the declaration of a metallic cement silo, a B5 diesel tank to generate hot gases for the
cement mill, and two LPG tanks to supply the forklifts at the Piura plant.

About water management, it is essential to mention that Piura plant does not have any discharges. The small water consumption is only for green area irrigation.

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Considering that the land use before cement production was a barren area typical of the coastal geography of the Piura Region, forestation activities with native species have been
considered part of the post-closure activities.

Finally, by environmental regulations and according to the Regulation of Environmental Management of the Manufacturing Industry and Domestic Trade, Supreme Decree N° 017-
2015-PRODUCE, companies that produce cement are required to submit Closure Plans when executing Decommissioning activities. , Cementos Pacasmayo in compliance with
Peruvian legislation will submit the Closure Plan on time.

17.2. Solid waste disposal

Cementos Pacasmayo S.A.A. has a Solid Waste Minimization and Disposal Plan for our production activities at the Piura plant and Virrila quarry. Annually, our company declares the
generation, storage, collection, and final disposal of hazardous and non-hazardous solid waste in compliance with environmental legislation.

In the solid waste minimization plan for 2021, CPSAA declared 8.5 tons of hazardous waste and 95.90 tonnes of non-hazardous waste for the Virrila quarry.

Likewise, CPSAA declared 29.50 tonnes of hazardous waste for the Piura plant and 356.60 tonnes of non-hazardous waste disposed of in accordance with environmental legislation.

17.3. Qualified Person’s Opinion

Cementos Pacasmayo S.A.A. complies with national environmental standards in the industrial sector. According to the International Standard Industrial Classification - ISIC 2694 for
the non-metallic production of the Virrila quarry where seashell, the primary material for cement, is produced.

For the industrial and mining sector, our company specifically complies with the Environmental Management Regulations for the Manufacturing Industry and Domestic Trade. Supreme
Decree No. 017-2015-PRODUCE is the rule that regulates the environmental management of the activities indicated in Ministerial Resolution No. 157-2011-MINAM and investment
projects subject to the National System of Environmental Impact Assessment (SEIA), considered in Annex II of the Regulations of Law No. 27446, approved by Supreme Decree No.
019-2009-MINAM.

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CPSAA reports the environmental commitments, semiannually and quarterly, to the Environmental Evaluation Agency - OEFA.

The monitoring is carried out through external laboratories that provide comprehensive monitoring and analysis services and have double accreditation by the international IAS
(International Accreditation Service) and the national INACAL (National Institute of Quality), both signatories of the ILAC-MRA global Mutual Recognition Agreement.

Cementos Pacasmayo S.A.A. strictly complies with the protocols in the different processes in compliance with environmental legislation and reporting to the OEFA.

The qualified persons believe Cementos Pacasmayo’s current plans and practices are adequate to address any issues related to environmental compliance, permitting, and local
individuals or groups.

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18. Capital and operations costs

18.1. Basis for operating and capital cost for the quarry and plant

This section presents the operating costs of the Virrila quarry for the production of seashells, the primary raw material used in cement production at the Piura plant. It also exhibits the
plant’s operating costs, for the whole industrial process, from the reception of raw material to its conversion to the final product (cement). Cost forecast is mainly based on actual
historical costs.

Similarly, this section reports the detail of the capital investments made in the quarry and plant and the forecasted plan of assets required to sustain all the activities in the quarry and
plant to assure the supply of seashell Reserves for the necessary products to support forecasted cement shipments of the Piura plant.

Table 43 depicts the main components of the cost structure of the Virrila quarry and Piura plant and the sources used in their forecasts.

Table 43 Concepts about cost structure of Virrila quarry and Piura plant

Concept Description Source

Quarry Operating Cost Mineral Extraction /Exploitation, processing, fuel, Materials, Maintenance, ● Real, historic costs
Insurances and Services ● Suppliers´ quotes
Quarry Operating Cost Royalties ● Contract of mining royalty payment with
regional/state entities
Quarry Operating Cost Energy ● Historic, real costs
● Supply Contract
● Suppliers´quote
Plant Operating Cost Fuel, Materials, Maintenance, Wages and Insurances ● Historic, real costs
● Suppliers´quote
Plant Operating Cost Energy ● Historic, real costs
● Supply Contract
● Suppliers´quote

Considering that the Virrila quarry and the Piura plant are currently operating, the historical costs are the principal basis for estimating forecasted costs.

In this regard, the actual costs in some cases are maintained, and in other cases, are appropriately adjusted for factors specific to the quarry operation, conditions, and obligations
stipulated in supply and concession contracts.

On the other hand, macroeconomic factors such as inflation and devaluation of the local currency against the US dollar could indirectly impact future operating costs estimation.

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18.2. Capital and Operating Cost Estimates

Table 44 details the operating costs of quarry and plant for the year 2021, and 30 years of forecast:

Table 44 Operating costs forecast of quarry and plant

Table 44 shows the forecast for the next 30 years, according to the production plan for 30 years of Reserves. Costs are adjusted annually by applying a 2.65% escalation rate.

Costs described in this chapter are applied to estimate the Mineral Resources and Reserves of the Virrila quarry as part of the analysis.

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Table 45 shows the detail of capital investments in the quarry and plant, by type of investment, for one year of historical result (2021) and 30 years of projection:

Table 45 Investment forecast in quarry and plant

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In recent years, there have been no significant variations in capital investment, mainly for maintenance and replacement of equipment in the quarry and plant to sustain operations.

The Company´s investment plan does not consider any unusual or expansion activity. The sole plan is to perform the necessary replacement for quarry support and the maintenance of
operations in the plant. The investments are kept at levels similar to those registered throughout the last years

18.3. Capital and Operating cost estimation risks

There is a low risk associated with capital and production costs because mine production and cement plant will continue in the same geological deposit, using the same mining and
industrial methods.

An assessment of the accuracy of estimation methods is reflected in the sensitivity analysis in Section 19.

For purposes of the Preliminary Feasibility Study completed relative to the Virrila quarry and Piura plant, capital and operating costs are estimated to an accuracy of +/- 25% with a
contingency of 5%.

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19. Economic analysis

19.1. Methodology: for Discounted Cash flow (Free)

The Economic Analysis chapter describes the assumptions, parameters, and methodology used to demonstrate the economic viability or profitability of extracting the Mineral Reserves
and Resources. The economic analysis at the Pre-feasibility level supports the determination of Mineral Resources and Reserves through a business valuation through the Discounted
(Free or Economic) Cash Flow method.

For the cash flow projection, the forecast horizon is considered to be consistent with the quarry’s life, which is calculated based on the total declared Reserves and the annual production
of the quarry. The cash flow for each period is approximated indirectly from the EBITDA (the latter is constructed in the Profit and Loss Statement), and the corresponding adjustments
are made for taxes and capital costs (CapEx).

Finally, we work with the free cash flow for this economic analysis since it does not incorporate the financing structure. We apply the weighted average cost of capital (WACC) to
discount said future cash flows.

The economic analysis considered the same evaluation criteria for Resource and Reserves estimation.

19.2. Assumptions

19.2.1. General and Macroeconomic Assumptions

The general and macroeconomic assumptions used for the projection of economic cash flows and the valuation are:

● Projection horizon: 30 years (2022 to 2051), according to the estimated years of quarry life.

● The annual escalation rate; 2.65%, applies equally to the sales price, production costs, and expenses.

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 ● Capital cost projections were determined using a historical ratio of annual investments and maintenance costs, which also considers the increase in production volume.

● The company’s capital structure is being considered in the discount rate (WACC); 9.87%, not in the cash flows.

● Income tax rate: effective rate of actual (historical) business results, 31.0% - 32.0%.

● Workers’ Profit Sharing: 10%.

● Exchange rate: exchange rate is assumed to remain at 4.00 (USD/PEN)

19.2.2. Income and Cost Assumptions

● The sales price of cement, expressed as S/ x t, is the sales price of Piura plant to Distribuidora Norte Pacasmayo, Piura plant, which is lower than the sales price to the final
customer in the market. The distribution freight explains this difference to the multiple points of sale and the selling expenses associated with distribution and promotion in the
different commercial channels.

● The base price used in the projection is an estimate for the year 2022 (368.9 S/ x t), which has been determined based on current market conditions and cement demand for
2022, among other factors.

● Starting in 2023 (year 2 of the projection), a price escalation is applied according to an annual inflation rate of 2.65%.

● The cost of cement production, expressed as S/ x t, has been estimated for 2022 based on actual operating costs, the market situation of local materials and services, plant
demand for imported clinker, and other factors. The cost of production for the year 2022 is 259.3 S/ x t.

● In the case of imported clinker, the current cost is more than 40% above the historical average and results from extraordinary circumstances. Therefore, starting from the year
2024, the projection considers values more consistent with the historical average, plus an inflation adjustment.

● Starting in 2023, a cost escalation is applied by the annual inflation rate of 2.65%.

● The volume of cement shipments grows at an annual rate of 2.0% until the maximum plant capacity is reached, which is adjusted slightly for a safety factor.

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 ● The initial stock of products in the quarry and plant is assumed to be zero.

19.3. Results of financial model

The following financial parameters were calculated:

● NPV of 1.281 billion soles at a discount rate of 9.87%.

● 30-year mine life

● Average plant throughput for cement production: 1.51 million tonnes per year over the 30-year projection.

● Average sales price: 552.9 soles per ton of cement, an average of the 30-year projection, at nominal values.

● Revenues: 861.8 million soles, an average of the 30-year projection.

● Average cash production cost: 342.3 soles per ton of cement, an average of the 30-year projection, at nominal values.

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Table 46 shows the forecast of the Profit and Loss Statement of the operation of Virrila quarry and Piura plant:

Table 46 Profit and Loss Statement

Cement sales at the Piura plant are, on average, S/ 862 million per year (for the period 2022-2051), and the average EBITDA margin for the same period is 28.99%. The current high
cost of imported clinker does not affect the results since its use is low (approximately 4% in the cement formulation).

The EBITDA margin remains relatively stable in the 30-year projection. The slight variations in the margin are mainly explained by the cost of remunerations, which has a behavior with
peaks every three years due to union negotiations.

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Table 47 shows the Free Cash Flow projection and the valuation of the cement business of the Piura plant:

Table 47 Free Cash Flow and valuation

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The net present value (NPV) of Piura plant cement business amounts to more than S/ 1,281 million at a discount rate of 9.87% and is made up of the sum of the discounted cash flows of
each period, for the 30-year projection. For the discount rate of the cash flows, the QPs applied the weighted average cost of capital (WACC) of the company.

19.4. Sensitivity Analysis

The sensitivity analysis considers a variation of +/- 5 and 10% in the variables that have the greatest impact on the NPV and EBITDA. These variables are the cement sales price,
operating cost, and CapEx.

Tables 48 and 49 detail the sensitivity of the EBITDA and NPV to each variable, respectively. Figures 18 and 19 show the results of the sensitivity of NPV and EBITDA, respectively, to
the three variables.

Table 48 Sensitivity analysis of the Net Present Value

Variable / Variation -10% -5% 0% +5% +10%

Price -32.8% -16.4% 0.0% 16.4% 32.8%
Cost 24.7% 12.3% 0.0% -12.3% -24.7%
CapEx 0.8% 0.4% 0.0% -0.4% -0.8%

Table 49 Sensitivity analysis of EBITDA

Variable / Variation -10% -5% 0% +5% +10%

Price -33.4% -16.7% 0.0% 16.7% 33.3%
Cost 24.5% 12.3% 0.0% -12.3% -24.5%
CapEx 0.0% 0.0% 0.0% 0.0% 0.0%

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 Figure 18 Sensitivity of Net Present Value

Figure 19 Sensitivity of EBITDA

Based on these results, the NPV is most sensitive to cement price, followed by operating cost, and least susceptible to the CapEx. EBITDA has a similar sensitivity to NPV, being most
exposed to cement price, followed by operating cost but shows no sensitivity towards variations to the CapEx.

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19.5. Economical Analysis for Resources Evaluation

About Mineral Resources, to demonstrate the economic viability or profitability, an economic analysis there was developed. The same criteria were used for the Reserves (see point
19.2.1) and Resurces estimation. In addition, given the quantity of the Resources and the LOM, the forecast horizon is extended to 35 years.

The results are NPV of 1.335 billion soles at a discount rate of 9.87%. A life of mine (LOM) of 35 years with an average plant throughput of 1.51 million tons per year during the 35-
year forecast. The average sales price for the 35-year forecast is 595.7 soles per ton of cement at nominal values, and average revenues are 929.6 million soles per year. The average cash
production cost for the 35-year forecast is 369.1 soles per ton of cement at nominal values.

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20. Adjacent properties

The information in this chapter was obtained from the competent authority Instituto Geológico, Minero Metalúrgico (INGEMMET). The only public information obtained is shown in
Figure 20. To the north of the Cementos Pacasmayo S.A.A., concession is the Bayovar N° 7 concession owned by Americas Potash Peru S.A. To the east of the concession are
concessions Virrila 12, Virrila 19, and Virrila 23, owned by Cementos Pacasmayo S.A.A. To the west are concessions Virrila 6, Virrila 9 and Virrila 14 owned by Cementos Pacasmayo
S.A.A. and to the north is the Virrila 16 concession owned by Cementos Pacasmayo S.A.A.

Figure 20 Adjacent properties map

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21. Other relevant data and information

Not applicable.

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22. Interpretation and conclusions

● From a legal viewpoint, Cementos Pacasmayo S.A.A. has mining rights for the areas of exploration, development, and production of seashell to supply the cement plants for normal
production during the quarry’s life. It also has an agreement with Fundación Comunal San Martín de Sechura for the right of usufruct, surface and easement for the area of
operations at the Virrila quarry.

● Cementos Pacasmayo S.A.A. has been complying with ISO-9001 (Quality) standards since 2015 and has implemented Quality Assurance and Quality Control (QAQC). The
controls are applied for the construction of the Geological Model, Resource Estimation and Reserves Estimation.

● Cementos Pacasmayo S.A.A. has a quality assurance system in its operations that includes sample preparation methods, procedures, analysis and security, which comply with the
best practices in the industry.

● The information verification and validation processes are carried out following the procedures indicated in the information flows. The validated information is congruent with the
one that generated the geological models, which are the fundamental basis for the estimation of Resources.

● The geological modeling of the seashell deposit is consistent with the relationship between the information and the geological model.

● The Reserves estimations consider the risk factors and modifying factors. The main variable is the CaO content which is very stable in the deposit, also present are other secondary
variables that determine the quality of the Reserves.

● In the process of calculating Reserves and in the production plans of the quarry these variables have been adequately considered in the mining plan, properly sequenced and with
blending processes. There are sufficient proven and probable Reserves for the next 30 years.

● Table 50 shows the Mineral Resources of the Virrila quarry and categories. Likewise, the Mineral Reserves are shown in Table 51 and categories.

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 Table 50 Resources at the Virrila quarry in millions of tonnes (exclusive of Reserves)

Tonnes CaO K2O Cl

Resources SO3 (%) MgO (%) SiO2 (%) Na2O (%)
t (%) (%) (ppm)
Measured 21.1 48.50 0.84 0.84 9.80 0.268 0.160 0.111
Indicated 29.2 48.78 0.87 1.23 7.62 0.204 0.222 0.079
Seashell
Measured + Indicated 50.3 48.66 0.86 1.07 8.54 0.231 0.196 0.092
Inferred 3.9 46.42 2.27 1.67 9.96 0.219 0.246 0.066

Table 51 Mineral Reserves expressed in millions of tonnes

Reserves Tonnes CaO Na2O K2O Cl

SO3 (%) MgO (%) SiO2 (%)
t (%) (%) (%) (ppm)
Seashell Proven 42.4 49.99 0.55 0.55 6.78 0.222 0.212 0.111
Probable 2.9 47.77 0.96 0.92 9.71 0.234 0.269 0.120
Total 45.3 49.85 0.58 0.57 6.97 0.223 0.216 0.112

● The cement plant located in Piura has all the equipment and facilities available to produce cement, using shells from the Virrila quarry and other necessary materials.

● Cementos Pacasmayo S.A.A. has the SSOMASIG area, which manage the environmental aspects for quarry and cement operations in compliance with current environmental
legislation and in accordance with the company’s corporate policies.

● Through its Social Responsibility unit, Cementos Pacasmayo S.A.A. has generated relationships of trust with the communities surrounding its operations, which have translated into
a solid relationship with our communities, identifying their primary needs in health, education, urban development, and local development.

● Infrastructure-wise, the operation at the Virrila quarry and Piura plant is technically and economically feasible due to the quarry’s life. The sensitivity analysis shows that the
operation is economically robust.

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23. Recommendations

● Develop a geological exploration program surrounding the Virrila quarry to discover new coquiniferous zones and other materials related to cement production.

● Maintain the QAQC program for exploration, development and production activities associated with cement production.

● Update the geological model and standardize the information for the estimation of Resources and Reserves, considering that some areas have test pits and other drillings as a source
of information.

● Control the stripping ratio during the operation in order to achieve a reduction in production costs.

● Perform maintenance of the piezometers in the quarry.

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24. References

DCR Ingenieros S.R.Ltda. (2013). Estudio De Ingenieria para la Estabilidad Fisica de la Cantera Calcarea Virrila – Sechura – Piura

Empresa de Ingeniería y Desarrollo S.A.C. (2012). Estudio Hidrogeológico para Abastecimiento de Agua a la Cantera Virrila – CPSAA

Ministerio de la Producción. (2011). Oficio N° 03680-2011-PRODUCE/DVMYPE-I/DIGGAM

Ministerio de la Producción. (2012). Oficio N° 2179-2012-PRODUCE/DVMYPE-I/DGI-DAAI

Ministerio de la Producción. (2014). Resolución Directoral N° 207-2014-PRODUCE/DVMYPE-I/DGGAMI.

Ministerio de la Producción. (2016). Resolución Directoral N° 523-2016-PRODUCE/DVMYPE-I/DGGAMI.

Ministerio de la Producción. (2019). Resolución Directoral N° 152-2019-PRODUCE/DVMYPE-I/DGGAMI.

Ministerio de la Producción. (2021). Resolución Directoral N° 307-2021-PRODUCE/DVMYPE-I/DGGAMI.

Geoservice Ingenieria S.A.C. (2012). Estudio de Impacto ambiental de la Planta de fabricación de Cementos Piura.

Tecnología XXI S.A. (2016). Informe Técnico Sustentatorio para la modificación del proyecto de explotación Cantera de Virrila.

Consorcio Andes Group S.A.C. (2019). Segundo Informe Técnico Sustentatorio del Proyecto modificación del proyecto de explotación Cantera de Virrila.

Ram Perú S.A.C. (2015). Investigaciones Hidrogeologicas en la Perforacion de 02 Piezometros para Abastecimiento de Agua para la Actividad Extractiva en la “Cantera
Virrila”

Umbrella EcoConsulting S.A.C (2012). DIA del Proyecto de Exploración de Calcáreos.

102
25. Reliance on information provided by the registrant

In preparing this report, the qualified persons relied upon the registrant’s data, written reports, and statements in accordance with 17 CFR § 229.1302(f). After carefully reviewing the
information provided, the QPs have no reason to believe that any material facts have been withheld or misstated. Cementos Pacasmayo provided the information as summarized in Table
52.

Table 52 List of Cementos Pacasmayo S.A.A. information.

Chapter Chapter name Information provided by CPSAA

Legal matters related to property rights and the authority “Instituto Geológico, Minero y
3 Property description
Metalúrgico INGEMMET”
16 Market studies Marketing information, ASOCEM, INEI and BCRP
Environmental studies, permitting, and plans, negotiations, or
17 Community Relations and agreements with stakeholders
agreements with local individuals or groups
18 Capital and operating costs Historical data about cost, price and investments
19 Economic analysis Macroeconomic trends, data, and assumptions, and interest rates
Legal matters related to property rights and the authority “Instituto Geológico, Minero y
20 Adjacent properties
Metalúrgico “INGEMMET”

103
 Exhibit 96.3

CEMENTOS SELVA S.A.

Technical Report Summary (TRS)
Tioyacu Quarry
and
Rioja Cement Plant
20-F 229.601 (Item 601)
Exhibit 96
Index

1. Executive Summary 1
1.1. Location and access 1
1.2. Climate 1
1.3. History 1
1.4. Geological environment and mineralization 2
1.5. Exploration 2
1.6. Preparation of samples, analysis and security 2
1.7. Data verification 3
1.8. Mineral processing and metallurgical test 3
1.9. Mineral Resources and Reserves 3
1.10. Processing Plant and Infrastructure 4
1.11. Market studies 5
1.12. Capital, Operating costs and Economic Analysis 5
1.13. Adjacent properties 8
1.14. Conclusions 8
1.15. Recommendations 9
2. Introduction 10
2.1. Participants 10
2.2. Terms of Reference 10
2.3. Conventions 12
2.4. Previous Work and Sources of Information 12
2.5. Details of QP Personal Inspection 12
3. Property description 13
3.1. Tioyacu quarry 13
3.2. Rioja plant 15
4. Accesibility, climate, local resources, infrastructure and physiography 16
4.1. Tioyacu quarry and Rioja plant 16
5. History 17
5.1. Tioyacu quarry 17
6. Geological setting, mineralization, and deposit 18
6.1. Regional geology 18
6.2. Local geology 19
6.3. Characteristics of the deposit 20
7. Exploration 21
7.1. Drilling 21
7.3. Geotechnical studies 25

i
8. Sample preparation, analysis, and security 27
8.1. Geology and quarry 27
8.1.1. Preparation of samples, procedures, assays and laboratories 28
8.1.2. Quality Assurance Actions 28
8.1.3. Quality Plan 28
8.1.4. Sample security 28
8.1.5. Chain custody 29
8.1.6. Qualified person’s opinion on quarry QAQC 29
8.2. Rioja plant 29
8.2.1. Sample preparation, procedures, assays and laboratories 29
8.2.1.1. Raw materials sample preparation 29
8.2.1.2. Laboratory Analysis 29
8.2.2. Quality Assurance Actions 30
8.2.2.1. Finished Product Control 31
8.2.2.2. Control of non-conforming product 31
8.2.2.3. Validation of silos 31
8.2.2.4. Density 31
8.2.2.5. Quality Assurance (QA) and Quality Control (QC) 31
8.2.2.6. Quality Plan 32
8.2.2.7. Quality control parameters 32
8.2.3. Sample security 33
8.2.4. Qualified Person’s Opinion on cement plant QAQC 33
9. Data verification 33
9.2. Geology and quarry 33
9.2.1. Data Verification procedure 33
9.2.2. Data collection 33
9.2.3. Management and Validation of Database 33
9.2.4. Tracking Data 34
9.2.5. Validation of Data 34
9.3. Rioja plant 34
9.3.1. Data verification procedures 35
9.3.2. Data validation 35
9.3.3. Qualified Person’s Opinion on cement plant 35
10. Mineral processing and metallurgical testing 35
10.1. Nature of Testing Program 35
10.2. Cement Manufacturing Test Results 36
10.3. Adequacy of the Test Data 36

ii
11. Mineral Resources estimates 36
11.1. Database 37
11.2. Density 37
11.3. Composting 38
11.4. Basic statistics of the data (Assay – Composites) 38
11.5. Extreme values 39
11.6. Variogram Analysis 40
11.7. Interpolation 40
11.8. Mineral Resources classification 42
11.9. Resources estimation 42
11.9.1. Cut-off 43
11.9.2. Reasonable Prospects of Economic Extraction 43
11.10. Qualified Person’s Opinion 44
12. Mineral Reserves estimates 44
12.1. Criteria for Mineral Reserves estimation 44
12.1.1. Run of Mine (ROM) determination criteria 44
12.1.2. Cement Plant recovery 44
12.2. Reserves estimation methodology 45
12.3. Reserves estimation 45
12.4. QP’s Opinion on Risk Factors affecting Reserve Estimates 46
13. Mining methods 47
13.1. Mining methods and equipment 47
13.2. Geotechnical aspects 48
13.3. Hydrological aspects 50
13.4. Other Mine Design and Planning Parameters 50
13.5. Anual production rate 51
13.6. Mining plan 51
13.7. Life of Mine 52
13.8. Staff 52
14. Processing and recovery methods 53
14.1. Process Plant 53
14.2. Raw materials for the cement production 53
14.3. Flow sheet 54
14.4. Main equipment 54
14.5. Material balance cement plant 55

iii
 14.5.1. Material balance 55
14.6. Process losses 55
14.7. Water consumption 55
14.8. Fosil fuel consumption 55
14.9. Electric power consumption 55
14.10. Maintenance Plan 55
14.11. Staff 55
15. Infrastructure 56
15.1. Tioyacu quarry 56
15.2. Rioja Plant 56
16. Market Studies 56
16.1. The cement market in Peru 56
16.2. Industry and Macroeconomic Analysis 57
16.3. The North Region Market 59
16.4. Cement price 60
16.5. Current and future demand 60
17. Environmental studies, permitting, and plans, negotiations, or agreements with local individuals or groups. 62
17.1. Environmental Aspects 62
17.1.1. Tioyacu quarry 62
17.1.2. Rioja plant 63
17.2. Solid waste disposal 64
17.3. Qualified Person’s Opinion 64
18. Capital and operations costs 65
18.1. Basis for operating and capital costs for the quarry and plant 65
18.2. Capital and Operating Cost Estimates 66
18.3. Capital and Operating Cost Estimation Risks 66
19. Economic Analysis 67
19.1. Methodology: Discounted Cash Flow (Free) 67
19.2. Assumptions 67
19.2.1. General and Macroeconomic Assumptions 67
19.2.2. Income and Cost Assumptions 67
19.3. Financial Model Results 67
19.4. Sensitivity Analysis 69
20. Adjacent properties 70
21. Other relevant data and information 71
22. Interpretation and conclusions 71
23. Recommendations 72
24. References 73
25. Reliance on information provided by registrant 74

iv
Index of tables

Table 1 Mineral Resources (exclusive of Reserves) of Tioyacu quarry 4

Table 2 Mineral Reserves of Tioyacu quarry 4
Table 3 Free Cash Flow and valuation 6
Table 4 Mineral Resources (exclusive of Reserves) of Tioyacu quarry 9
Table 5 Mineral Reserves of Tioyacu quarry 9
Table 6 List of Cementos Pacasmayo S.A.A. Professionals 11
Table 7 QP’s field visit 12
Table 8 Central coordinates of the Calizas Tioyacu property 13
Table 9 Central coordinates of the Rioja plant 15
Table 10 Characteristics of Tioyacu quarry 20
Table 11 Drilling campaigns in Tioyacu quarry 21
Table 12 Drilling characteristics of the 2015 campaign 21
Table 13 Hydraulic parameters of the hydrogeologic units 24
Table 14 Static levels of piezometers 24
Table 15 Uniaxial Compression test results 25
Table 16 Point Load test results 25
Table 17 Triaxial Compression test results 25
Table 18 Traction resistance tests results 26
Table 19 Rock mass strength properties 26
Table 20 Rock mass quality by rock type 26
Table 21 Tioyacu quarry design and planning angles 26
Table 22 Protocols of the Geology area 27
Table 23 Methods of analysis for the limestone from the Rioja plant laboratory 28
Table 24 Quality Plan of the Tioyacu quarry 28
Table 25 Tests and frequency for each stage of the process 30
Table 26 Quality Plan of Rioja plant 32
Table 27 Quality control parameters for materials received at the Rioja plant 32
Table 28 Lithologic units of the Tioyacu quarry geological model 36
Table 29 Rioja plant material restrictions 37
Table 30 Characteristics of the block model 37
Table 31 Limestone density per horizon 38
Table 32 Basic statistics of the limestone horizon data 39
Table 33 Basic statistics of the data of the marly limestone horizon. 39
Table 34 Variogram modeling parameters 40
Table 35 Ordinary Kriging Estimation Parameters CaO 41
Table 36 Criteria for Resource categorization 42
Table 37 Resource categorization (exclusive of Reserves) at the Tioyacu quarry 42
Table 38 Rioja plant material restrictions 45
Table 39 Mineral Reserves expressed in millions of tonnes 46
Table 40 Equipment of the Tioyacu quarry 48
Table 41 Rock mass quality by rock type 49
Table 42 Tioyacu quarry design and planning angles 49
Table 43 Hydraulic parameters of the hydrogeologic units 50
Table 44 Summary of Tioyacu quarry design parameters 50
Table 45 Mining plan for the next 27 years 51
Table 46 Main equipment in Rioja plant 54
Table 47 Balance for crude production 55
Table 48 Balance for cement production. 55
Table 49 Fuel consumption in Rioja plant 55
Table 50 Cement shipments at domestic level (in thousands of tonnes) 57
Table 51 Types of products of Rioja plant 59
Table 52 Forecast of future demand for Rioja cement plant 61
Table 53 Concepts about cost structure of Tioyacu quarry and Rioja plant 65
Table 54 Operating costs forecast of quarry and plant 66
Table 55 Investment forecast in quarry and plant 66
Table 56 Profit and Loss Statement 68
Table 57 Free Cash Flow and valuation 68
Table 58 Sensitivity analysis of the Net Present Value 69
Table 59 Sensitivity analysis of the EBITDA 69
Table 60 Mineral Resources (exclusice of Reserves) of Tioyacu quarry 71
Table 61 Mineral Reserves of Tioyacu quarry 71
Table 62 List of Cementos Selva S.A. information. 74

v
Index of figures

Figure 1 Sensitivity of Net Present Value 7

Figure 2 Sensitivity of EBITDA 7
Figure 3 Calizas Tioyacu map 14
Figure 4 Rioja plant map 15
Figure 5 Regional stratigraphic column 18
Figure 6 Local stratigraphic column of the Tioyacu quarry. 19
Figure 7 Geological Section of the Tioyacu quarry 20
Figure 8 Tioyacu quarry, drilling hole location map 22
Figure 9 Photographic record of the sampling intervals 29
Figure 10 Tioyacu quarry mining sequence 47
Figure 11 Tioyacu quarry final pit 52
Figure 12 Rioja plant process block diagram 54
Figure 13 Segmentation of the cement market in Peru 56
Figure 14 Construction sector GDP variation 58
Figure 15 Historic prices of cement in Peru 60
Figure 16 Evolution of the national demand of cement 60
Figure 17 Sensitivity of Net Present Value 69
Figure 18 Sensitivity of EBITDA 69
Figure 19 Concession Calizas Tioyacu and adjacent concessions. 70

vi
1. Executive Summary

Cementos Selva S.A. (CSSA), a wholly-owned subsidiary of Cementos Pacasmayo S. A.A., is a Peruvian company whose corporate purpose is the production of cement and other
products associated with the construction sector. This Technical Report Summary summarizes the Pre-feasibility study of the Tioyacu quarry located in the San Martin Region and the
Rioja plant located in the same region. Qualified professionals from Cementos Pacasmayo have prepared the report to support the Resources and Reserves Estimates.

1.1. Location and access

The Tioyacu quarry contains limestone, a non-metallic mineral that is primarily used as raw material in cement production. This quarry is located in the district of Elías Soplin Vargas,
Rioja Province, San Martin Region. The access route to this quarry is by land through the Fernando Belaunde Terry highway. The cement plant located in the city of Rioja is adjacent to
the Tioyacu quarry.

1.2. Climate

The vegetation is evergreen with lianas and vines, many of which are covered by epiphytes of the Bromeliaceae family. The forests have a very heterogeneous floristic composition.

The climate in this Amazon region in northern Peru is mainly influenced by the following factors: the Intertropical Convergence Zone (ITCZ), the presence of the Eastern Cordillera of
the Andes and the Extratropical Fronts.

1.3. History

On February 6, 1998, the public auction of the Rioja Cement Plant was held, and Consorcio Pacasmayo was awarded the contract. To comply with the terms of the auction, Consorcio
incorporated and subsequently transferred ownership of the plant to Cementos Rioja S.A. The award mentioned above included, by public deed dated April 8, 1998, the non-metallic
mining concession “Calizas Tioyacu.” The Tioyacu quarry began operations as Cementos Rioja S.A. in 2000.

1
As historical information about the quarry, a campaign of 460 meters of drilling was carried out in 05 drill holes located in the eastern flank of the “Tioyacu” limestone-dolomitic massif
executed by the company Andes Diamantina S.R.L., at the end of 1982 into early 1983. The objective was to determine the feasibility of a new portland cement plant in the region of San
Martin. The exploration study identified significant limestone material suitable for cement manufacturing.

In 2015, Cementos Selva S.A. commissioned Geosym Consultores S.A.C. to carry out prospecting work through drilling. A total of 06 mixed drill holes were drilled, conveniently
located and distributed along the Tioyacu quarry: 02 drill holes in the southern sector, 03 drill holes in the central area, and 01 drill hole in the northern sector, to geologically evaluate
the deposit and know its conditions at depth. These 06 drillings carried out in the campaign in conjunction with blast hole information and geological evaluation work allowed the
inventory of Mineral Resources and Reserves to be updated.

From 2018 to the present, Cementos Selva S.A., with the help and support of mining software such as Leapfrog and Minesight has developed the updated estimates of its Resources and
Reserves at the Tioyacu quarry.

1.4. Geological environment and mineralization

The strata of the district of Elias Soplin Vargas, province of Rioja, San Martin region consists of Paleozoic/Mesozoic Age sedimentary formations of the Mitu Group, Pucara Group,
Chambara Formation, Celendín Formation, Aramachay Formation, Condorsinga Formation, Ipururo Formation, and Quaternary Deposits.

1.5. Exploration

Cementos Selva S.A. did not carry out any exploration activities at the Tioyacu quarry during the current year. The exploration activities described in section 1.3 describe the exploration
work at the Tioyacu quarry till date.

1.6. Preparation of samples, analysis and security

Cementos Selva S.A. has implemented international standards in all its operations such as quarries and plants. The ISO 9001 standard has been implemented and certified since 2015.
The certification is renewed annually through an external audit.

The SSOMASIG (Security, Occupational Health, Environment and Management Systems) department, is part of the team that determines and gives the necessary support for the
maintenance of the ISO 9001 and the scope is in all the company’s activities.

Cementos Selva S.A. has implemented QAQC protocols to develop exploration and production activities in the Tioyacu quarry and Rioja plant to ensure the quality of the information
used for estimation of limestone Resources and Reserves.

In the geology area, methods are used to analyze the main chemical components by XRF and other analytical techniques in limestone. In the cement plant, the raw materials for clinker
and cement production are analyzed. The cement plant laboratory has adequately calibrated equipment and a regular maintenance plan. A.S.T.M. and Peruvian technical standards are
used as references.

As part of the QAQC activities, Cementos Selva S.A. hired Wiracocha Mining Services S.R.L., a specialized company in QAQC, for an audit of the laboratory results and update the
quality protocol; its work was to verify the results obtained by resampling the drills of the 2015 campaign. Wiracocha Mining Services carried out the work from September to October
2021.

The results obtained conclude that the sample analysis for Limestone used in the geological model and the estimation of Resources and Reserves has a confidence higher than 95%.

On the other hand, the Rioja plant, through its Quality Assurance and Control area, has implemented a sampling and data verification plan, which applies to the processes of receiving
minerals, crushing of materials, drying of raw materials, grinding of crude, clinkerization, grinding of cement and cement packaging

2
1.7. Data verification

CSSA has a data verification area for the geological database regarding geological activities. The primary function of this area is to verify the data to be used to estimate Mineral
Resources and Reserves. To properly handle the information, internal protocols have been implemented which are subject to internal audits.

Among the verification activities carried out in the geology area is data collection, administration, and validation of data received from internal areas and external laboratories, data
tracking through the confirmation of chains of custody, and verification of data in the database that allowed the development of the Resources and Reserves model.

For data verification activities in the cement plant, the PDCA (Plan, Do, Check, and Act) methodology is used, which is applied to the technical information received from the
company’s internal and external clients. The quality control laboratory compares results with national and international laboratories as part of the verification procedures.

1.8. Mineral processing and metallurgical test

Cementos Pacasmayo has procedures for developing products at the laboratory level and scaling at the industrial level (including at Cementos Selva S.A. operations). It has guidelines
for preparing, reviewing, insurance, and controlling laboratory test reports. Cemento Pacasmayo has a Research and Development laboratory located in the Pacasmayo plant to evaluate
the technical aspects of its operations.

At the Pacasmayo plant, the studies conducted in the Research and Development laboratory and the Quality Control area include the substitution of fossil fuels for rice husks at the Rioja
plant.

The main objective of the substitution of fossil fuels is the reduction of CO2 or greenhouse gas emissions.

In 2021, CSSA used 5700 t of Alternative Fuel (measured as coal equivalent) in the Rioja plant. This result represented 10% of the total fuels used by the plant for cement production
and a reduction in emissions of 14,958 mt of CO2.

The Research Laboratory issues technical reports following the criteria of international standards to the operations area, which evaluates the convenience of implementing the tests
industrially and validating what is reported at the laboratory level.

1.9. Mineral Resources and Reserves

Cementos Pacasmayo’s QPs have developed the estimation of limestone Resources and Reserves. For the evaluation, information from exploration activities carried out until 2021 has
been used.

The limestone Resources are presented in Table 1. The result of the estimation of Resources considered the quality restrictions of limestone received at Rioja plant, accessibility to the
Resources and legal limits inherent to the mining concessions, relevant economic and Technical factors.

The minimum quality accepted is 49% CaO to be used as raw material for production. Considering the selling prices of cement at the Rioja plant, the economic evaluation used for the
estimates of Resources and Reserves is shown in Chapter 19.

3
 Table 1 Mineral Resources (exclusive of Reserves) of Tioyacu quarry

Resources Tonnes M CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
Measured 0 0 0 0 0 0
Indicated 0 0 0 0 0 0
Limestone Measured +
0 0 0 0 0 0
Indicated
Inferred 19.19 45.61 0.36 6.58 2.52 0.14

* No economic evaluation was performed for the Tioyacu quarry because it only has inferred resources.

The Reserves’ calculation considered the Resources’ results and the quality criteria, modifying factors, and limestone extraction costs.

The mining method used is open pit mining. The financial results are shown in Chapter 19. Table 2 presents the estimation of Reserves.

Table 2 Mineral Reserves of Tioyacu quarry

Tonnes
Reserves CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
M
Proven 6.55 50.30 0.58 1.13 5.46 0.21
Limestone Probable 4.84 47.29 0.64 3.33 5.95 0.19
Total 11.39 49.03 0.61 2.06 5.67 0.20

1.10. Processing Plant and Infrastructure

Cement production considers the stages of raw material extraction, grinding, homogenization, clinkerization, cement grinding, silo storage and packaging, loading, and transportation.
Cement is moved through conveyor belts to bagging systems to be packed in bags and then loaded onto trucks operated by third parties for distribution.

The raw materials for cement production are Limestone, Sand, Iron, Clay, Coal. The mixture of these raw materials is crude and is fed to the calcination kiln to produce clinker.

Limestone represents 73.1% by weight of the crude. Anthracite coal is also used as part of the raw material for the production of clinker. Clinker and additions are used to produce
cement. The additions used in cement production are slag, pozzolana, and gypsum. Currently, the cement plant in Rioja has a clinker/cement factor of 0.77.

The Rioja plant has an electrical substation with a capacity of 12 MVA. Rioja plant uses electric power, which is supplied from the national grid.

Cementos Selva has implemented a preventive and corrective maintenance plan for equipment to prevent interruptions to cement production. Additionally, operating efficiency controls
costs and operating margins.

4
1.11. Market studies

The Peruvian cement market is geographically segmented by regions: north region, central region and south region. Diverse companies supply each region.

The main companies that comprise the cement market in Peru are: Cementos Pacasmayo S.A.A., UNION Andina de Cementos S.A.A., Yura S.A. and Cementos Selva S.A.
Additionally, there are companies that import cement or clinker, such as Caliza Cemento Inca S.A., Distribuidora Cemento Nacional S.A.C., CEMEX Perú S.A., and Cal & Cemento Sur
S.A., amongst others.

Companies that market cement in Peru follow the Peruvian Technical Standards associated with cement technical specifications.

The types of cement produced by the main cement companies of the country are Type I, Type V, Type ICO, Type IL, Type GU, Type MS (MH), Type HS, Type HE, Type MH.

Cementos Pacasmayo, a leading company in the production and sales of cement in the North Region, has market presence in the following cities: Cajamarca, Chiclayo, Chimbote, Jaén,
Pacasmayo, Piura, Rioja, Tarapoto, Trujillo, Tumbes, Yurimaguas and Iquitos. The company has a Market share of over 90% in the north region of the country.

For Cementos Selva S.A. the overall shipments of the Rioja plant for 2021 were 336.8 thousand tonnes. It supplied 8% of the country’s North Region cement demand, and its cement
sales represented 9.3% of the three cement plant’s overall shipments.

1.12. Capital, Operating costs and Economic Analysis

This document presents the cash flow analysis and an economic evaluation of the project based on the current operating costs of the Rioja plant and using information on the Tioyacu
quarry for limestone production.

The economic analysis considers the same evaluation criteria for estimating Resources and Reserves, considering that the Tioyacu quarry is one location using the same infrastructure
and mining methods. The main variables considered in the economic model for the sensitivity analysis were cement price, production cost, and Capex.

The free cash flow is constructed for the economic analysis, which does not incorporate the financing structure. The latter is considered in the weighted average cost of capital of the
company (WACC) to discount future cash flows. The following financial parameters were calculated:

● 27-year mine life

● Average plant throughput of 0.42 million tonnes per year over the 27-year projection.

● Average sales price of 676.4 soles per ton of cement, on average for the 27-year projection, at nominal values.

● Revenues of 278.7 million soles, on average for the 27-year projection.

● Average cash production cost of 469.5 soles per ton of cement, on average for the 27-year projection, at nominal values.

The cash flow of the project is presented in Table 3 below. The NPV at a discount rate of 9.87%, is 378.5 million soles.

5
Table 3 Free Cash Flow and valuation

6
Sensitivity analysis was also performed to show the influence of changes in prices, operating costs, and capital costs on NPV.

Figure 1 Sensitivity of Net Present Value

Figure 2 Sensitivity of EBITDA

7
1.13. Adjacent properties

The Calizas Tioyacu borders to the north of the Cementos Selva S.A. concession is the Rioja 2 concession owned by Cementos Selva S.A.; to the east of the mining concession is the
Rioja 4 concession owned by Cementos Selva S.A., to the southwest is the Rioja 3 concession owned by Cementos Selva S.A.

1.14. Conclusions

● From a legal point of view, Cementos Selva S.A. has the ownership of the mining properties for the exploration, development and production of limestone to supply the cement
plants for normal production during the life of the quarry.

● Cementos Selva S.A. has been complying with international ISO-9001 standards since 2015 and has implemented Quality Assurance and Quality Control (QAQC). The
controls are applied for the construction of the Geological Model, Resource estimation and Reserves estimation.

● Cementos Selva S.A. has a quality assurance system in its operations that includes sample preparation methods, procedures, analysis and security, which comply with the best
practices in the industry.

● The information verification and validation processes are carried out following the procedures indicated in the information flows. The validated information is congruent with
the one that generated the geological models, and is the fundamental basis for the estimation of Resources.

● The geological modeling of the limestone deposit is consistent with the relationship between the information and the geological model.

● The Reserves estimates consider the risk factors and modifying factors. The main variable is the CaO content which is very stable in the deposit. There also are other secondary
variables that determine the quality of the Reserves.

● In the process of calculating Reserves and in the production plans of the quarry, these variables have been adequately considered in the mining plan, properly sequenced and
with blending processes. There are sufficient proven and probable Reserves for the next 27 years.

● Table 4 shows the Mineral Resources of the Tioyacu quarry and categories. Likewise, the Mineral Reserves are shown in Table 5 and categories.

8
 Table 4 Mineral Resources (exclusive of Reserves) of Tioyacu quarry

Tonnes
Resources CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
M
Measured 0 0 0 0 0 0
Indicated 0 0 0 0 0 0
Limestone Measured +
0 0 0 0 0 0
Indicated
Inferred 19.19 45.61 0.36 6.58 2.52 0.14

* No economic evaluation was performed for the Tioyacu quarry because it only has inferred resources.

Table 5 Mineral Reserves of Tioyacu quarry

Tonnes
Reserves CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
M
Proven 6.55 50.30 0.58 1.13 5.46 0.21
Limestone Probable 4.84 47.29 0.64 3.33 5.95 0.19
Total 11.39 49.03 0.61 2.06 5.67 0.20

● The cement plant located in Rioja has equipment and facilities available for cement production, using limestone from the Tioyacu quarry and other necessary materials.

● The Health, Safety and Environment department is in charge of supervising compliance with the Company’s corporate policies and the various legal requirements of the
national regulatory bodies by all company áreas.

● Through its Social Responsibility area, Cementos Selva S.A. has generated relationships of trust with the communities surrounding its operations. We have a solid relationship
with their communities, which includes identifying their primary needs in health, education, urban development, and local development.

● In 2021, due to COVID 19 pandemic, CSSA had been limited in face-to-face meetings with stakeholders, but that has not affected their good relationship.

● The operation in Tioyacu quarry and Rioja plant, with respect to infrastructure, is technically and economically feasible due to the life of the quarry.

● The sensitivity analysis shows that the operation is economically robust.

1.15. Recommendations

● Maintain the QAQC program for exploration, development and production activities associated with cement production.

● Include QAQC plans and density control for the subsequent diamond drilling campaigns.

● A permanent monitoring of the installed piezometers is necessary, both for water levels and water quality, to evaluate the evolution of levels during the production of the
Tioyacu quarry.

● A geophysical study using the Georadar method is recommended to identify karst cavities within the quarry area, especially in areas of structural anomalies.

● It is recommended that monitoring points be placed in new areas of the quarry and that current monitoring points be updated.

● It is recommended that new diamond drilling campaigns be undertaken to reduce the uncertainty of the current Reserves and help recategorize the existing Inferred Resources.

9
2. Introduction

2.1. Participants

This technical summary report (TRS) was prepared by Cementos Pacasmayo´s qualified persons (QPs), who according to their qualifications and experience developed the chapters
based on their expertise. Likewise, the aforementioned QPs used Company’s information sources, information validated and approved by the competent authorities in Peru and public
information sources. Table 6 shows the qualified persons who participated in the preparation of this document, as well as the chapters and information under their responsibility.

Marco Carrasco, who holds the position of Project Manager of Cementos Pacasmayo, is QP certified by the Mining and Metallurgical Society of America (MMSA) of the United States.
He acted as Project Manager, whose primary role was compiled the information received from the QPs of each chapter to have an integrated document. Each QP is responsible for the
section they wrote.

2.2. Terms of Reference

This technical report summary was prepared as an exhibit to support disclosure of mineral Resources and Reserves by Cementos Selva, a wholly-owned subsidiary of Cementos
Pacasmayo SAA. This report summarizes the results of the Pre-feasibility study of the “Calizas Tioyacu” property for the production of limestone using open pit mining methods. The
report is effective December 31, 2021.

The limestone producted from the Calizas Tioyacu property supplies raw material for the Rioja plant, located in the city of the same name, Cementos Selva produces cement. The annual
cement production is 0.4 million tonnes per year (mtpy). Actual operating costs have been considered for the estimates and used as a basis for economic projections within the economic
analysis. This technical report summary estimates Resources and Reserves according to the regulations published in Securities Exchange Commission (SEC) Form 20-F and under
subpart 1300 of Regulation S-K.

10
The report was prepared by the qualified persons listed in Table 6 using available studies and, in some cases (see Chapter 25), relying on information provided by Cementos Pacasmayo,
the registrant.

Table 6 List of Cementos Pacasmayo S.A.A. Professionals

Item Chapter First and Last Names Job Position Profession

0 Compiled all Marco Carrasco (*) Project Manager Chemical Engineer
1 Executive summary All QPs (**)
2 Introduction All QPs(**)
3 Property description Ricardo del Carpio Environmental Coordinator Geographic Engineer
Accessibility, climate, local Resources,
4 Ricardo del Carpio Environmental Coordinator Geographic Engineer
infrastructure and physiography
5 History Jorge Vega Mining Projects Superintendent Mining Engineering
5 History Jhonson Rodríguez Senior Geologist Geological Engineer
6 Geological setting, mineralization, and deposit Jhonson Rodríguez Senior Geologist Geological Engineer
7 Exploration Jhonson Rodríguez Senior Geologist Geological Engineer
8 Sample preparation, analyses, and security Jhonson Rodríguez Senior Geologist Geological Engineer
Quality Assurance and R&D
8 Sample preparation, analyses, and security Gabriel Mansilla Chemical Engineer
Superintendent
9 Data verification Jhonson Rodríguez Senior Geologist Geological Engineer
Quality Assurance and R&D
9 Data verification Gabriel Mansilla Chemical Engineer
Superintendent
R&D and Quality Assurance
10 Mineral processing and metallurgical testing Gabriel Mansilla Chemical Engineer
Superintendent
11 Mineral resource estimates Jason Gamio Modeler Geological Engineer
12 Mineral reserve estimates Jason Gamio Modeler Geological Engineer
13 Mining methods Jorge Vega Mining Projects Superintendent Mining Engineering
14 Processing and recovery methods Mario Alva Operations Manager Electronic Engineer
15 Infrastructure Jorge Vega Mining Projects Superintendent Mining Engineering
16 Market studies Jason Gamio Modeler Geological Engineer
Environmental studies, permitting, and plans,
17 negotiations, or agreements with local individuals Ricardo del Carpio Environmental Coordinator Geographic Engineer
or groups
18 Capital and operating costs Jason Gamio Modeler Geological Engineer
19 Economic analysis Jason Gamio Modeler Geological Engineer
20 Adjacent properties Ricardo del Carpio Environmental Coordinator Geographic Engineer
21 Other relevant data and information All QPs (**)
22 Interpretation and conclusions All QPs (**)
23 Recommendations All QPs (**)
24 References All QPs (**)
25 Reliance on information provided by the registrant All QPs (**)

(*) Marco Carrasco, who holds the position of Project Manager of Cementos Pacasmayo compiled the information received from the QPs of each chapter to have an integrated report.
Each QP is responsible for the section they wrote.

(**) Ricardo del Carpio, Jorge Vega, Jhonson Rodríguez, Gabriel Mansilla, Jason Gamio and Mario Alva

11
2.3. Conventions

Unless otherwise indicated in the report, all currencies are in soles and all measurements and units are in the metric system. The Tioyacu quarry is located within the boundaries of the
WGS84 two-dimensional geographic coordinate reference system, in the UTM 18S (Universal Transverse Mercator) zone. All coordinates referenced in this report and in the
accompanying figures, tables, maps and sections are provided in the WGS84 coordinate system, UTM 18S zone, unless otherwise indicated.

2.4. Previous Work and Sources of Information

The information used is sufficient to allow this TRS to be completed with the level of detail required by Regulation S-K subpart 1300. The information used includes actual information
from Cementos Selva’s operations, information submitted to and approved by the corresponding authorities, and public information in organizations specialized in the cement industry.
The list of sources of information is presented in Chapter 24 of this report.

2.5. Details of QP Personal Inspection

The QP’s who developed this document was unable to visit the Tioyacu quarry and the Rioja plant periodically during 2021 due to COVID-19 pandemic restrictions. Instead, the QPs
worked with on-site staff using virtual tools to gain first-hand knowledge of the quarry and cement plant. The virtual meetings included verifying parameters of the limestone and cement
production.

Table 7 QP’s field visit

Item First and Last Names Job Position Profession Field visit
The last visit to the Tioyacu quarry and Rioja plant was in 2019. No visits were
1 Ricardo del Carpio Environmental Coordinator Geographic Engineer made in 2021 due to COVID issues, and coordination was made with Operations
personnel.
The last visit to the Tioyacu quarry and Rioja plant was in 2019. No visits were
2 Jorge Vega Mining Projects Superintendent Mining Engineering made in 2021 due to COVID issues, and coordination was made with Operations
personnel.
The last visit to the Tioyacu quarry and Rioja plant was in 2019. No visits were
3 Jhonson Rodríguez Senior Geologist Geological Engineer made in 2021 due to COVID issues, and coordination was made with Operations
personnel.
The last visit to the Tioyacu quarry and Rioja plant was in 2019. No visits were
Quality Assurance and R&D
4 Gabriel Mansilla Chemical Engineer made in 2021 due to COVID issues, and coordination was made with Operations
Superintendent
personnel.
The last visit to the Tioyacu quarry and Rioja plant was in 2020. No visits were
5 Jason Gamio Modeler Geological Engineer made in 2021 due to COVID issues, and coordination was made with Operations
personnel.
No visits were made due to COVID-19. Coordination was made with operations
6 Mario Alva(***) Operations Manager Electronic Engineer
personnel using virtual tools.

(***) Mario Alva worked for Cementos Selva S.A. from year 2000 to 2013. I worked as General Superintendent of Operations from 2012 to 2013. Subsequently, he is working as
operations manager at the Piura plant in Cementos Pacasmayo S.A.A.

12
3. Property description

3.1. Tioyacu quarry

We refer to the non-metallic mining concession called Calizas Tioyacu, which is located in Elias Soplin Vargas, province of Rioja, San Martin region.

The quarry is located close to the Rioja plant. Table 8 shows the UTM coordinate of the centroid of the Calizas Tioyacu property.

Table 8 Central coordinates of the Calizas Tioyacu property

North East Radius Zone

246774.69 9337137.48 1,800.00 18

The area of the property is 400 hectares. The mining rights (the mining concession Title) are granted by INGEMENT (Geological Mining and Metallurgic Institute) of the Energy and
Quarries Sector by means of a Presidential Resolution. The Tioyacu Limestone Concession was approved by Resolution 0960-96-RPM, granted by the Public Mining Registry.

The procedure to obtain a mining concession is outlined in the General Mining Law (DS-014-92-EM) and Regulation D.L 020-2020-EM.

The Tioyacu quarry has a Usufruct and Easement Agreement for the use and easement of the area where mining activities are conducted. The agreement was signed with Corporación de
Desarrollo de San Martin (COREDESAM), the Regional Government of San Martin, and the property is in the name of Cementos Selva S.A. It is also registered under Calizas Tioyacu
and is classified as non-metallic.

Cementos Selva S.A. must pay the validity fee for the Calizas Tioyacu concession with unique code 010912495. The payment of the right of validity must be made every year, between
the first working day of January and June 30, which is the last day of payment.

Cementos Selva S.A., in compliance with the provisions of Law N° 28258 and its amendment Law N° 29788 is also obliged to pay royalties to the State. Below is the plan of the Calizas
Tioyacu concession:

13
Figure 3 Calizas Tioyacu map

14
3.2. Rioja plant

The Rioja plant is located in the district of Elías Soplin Vargas, province of Rioja, San Martin region; on land owned by the Company that occupies a total area of 28.16 hectares, duly
registered in File No. 4273, Electronic Record No. 05004085 of the Land Registry of Moyobamba, Registry Zone No. III, Moyobamba Headquarters.

Table 9 shows the UTM coordinate of the centroid of the Rioja plant.

Table 9 Central coordinates of the Rioja plant

North East Radius Zone

248338.19 9336658.96 200.00 18

According to the Organic Law of Municipalities (Law 27972), Cementos Selva S.A. must pay the annual property tax for the property described above.

Figure 4 Rioja plant map

15
4. Accesibility, climate, local resources, infrastructure and physiography

4.1. Tioyacu quarry and Rioja plant

Cementos Selva S.A. is an industrial company dedicated to the production of cement. Its Tioyacu quarry provides limestone as raw material for cement production.

The Tioyacu quarry is geographically located in the district of Elías Soplín Vargas, province of Rioja, department of San Martín, approximately 14.46 km from the city of Rioja.

Topography

The study area consists mainly of hillsides with slopes ranging from 25% to more than 75%, terraces of alluvial origin, with slopes of less than 8% and slightly undulating, and small
hillsides. The Tioyacu quarry has an average altitude of 900 meters above sea level.

Vegetation

The vegetation is evergreen with lianas and vines, many of which are covered by epiphytes of the Bromeliaceae family. The forests present a very heterogeneous flora composition.

Access

By air is from Lima – Tarapoto in a 1.5 hour flight, and by land from Tarapoto to Tioyacu quarry for a journey of 3 hours.

Access to the Tioyacu quarry is via the Fernando Belaunde Terry highway, which crosses the district of Elías Soplin Vargas from south to north.

16
Climate

The climate in this Amazon region in northern Peru is mainly influenced by the following factors: the Intertropical Convergence Zone (ITCZ), the presence of the Eastern Cordillera of
the Andes and the Extratropical Fronts.

Physiography

The study area has landforms that have been generally classified as large plains landscape and mountainous landscape (mountain slopes).

Local Resources

The Tioyacu quarry is operated by Cementos Selva personnel. The quarry is located 13.7 kilometers from the town of Rioja, which has the resources of a city.

Power is supplied by the 60 kV Rioja - Nueva Cajamarca transmission line owned by Electro Oriente.

The company has a water use license for industrial purposes, with its water catchment point located in the Tioyacu River. The National Water Authority issued the authorization R.A. Nº
100-2010-ANA-ALA ALTOMAYO.

5. History

5.1. Tioyacu quarry

On February 6, 1998, the public auction of the Rioja plant was held, and Consorcio Pacasmayo was awarded the contract. To comply with the terms of the auction, Consorcio
incorporated and subsequently transferred ownership of the plant to Cementos Rioja S.A. The award mentioned above included, by public deed dated April 8, 1998, the non-metallic
mining concession “Calizas Tioyacu.” The Tioyacu quarry began operations as Cementos Rioja S.A. in 2000.

At the end of 1982 and beginning of 1983 a campaign of 460 meters of drilling was carried out in 05 drill holes located in the eastern flank of the “Tioyacu” limestone-dolomitic massif
executed by Andes Diamantina S.R.L. The objective was to determine the feasibility of a new portland cement plant in the department of San Martin. The exploration study identified
limestone suitable for cement manufacturing.

In 2015, Cementos Selva S.A. commissioned Geosym Consultores S.A.C. to carry out prospecting work through drilling. A total of 06 drill holes were drilled, conveniently located and
distributed along the Tioyacu quarry (02 holes in the southern sector, 03 holes in the central área, and 01 hole in the northern sector) to geologically evaluate the deposit and know its
characteristics at depth.

These 06 drillings together with blast holes information and geological evaluation work allowed Cementos Pacasmayo to update the inventory of Mineral Resources and Reserves.

From 2018 to the present, Cementos Selva S.A., with the help and support of mining software such as Leapfrog and Minesight has updated its Resources and Reserves at the Tioyacu
quarry.

17
6. Geological setting, mineralization, and deposit

6.1. Regional geology

The strata of the district of Elias Soplin Vargas, province of Rioja, San Martin region consists of Paleozoic/Mesozoic Age sedimentary strata of the Mitu Group, Pucara Group,
Chambara Formation, Celendín Formation, Aramachay Formation, Condorsinga Formation, Ipururo Formation, and Quaternary Deposits.

Figure 5 Regional stratigraphic column

18
6.2. Local geology

A lithological series of continental marine facies of limestones, marls, and dolomites have been identified in the quarry area. The classification of carbonate rocks based on the
percentage of magnesium carbonate and clays, proposed by J.R.V Brooks (1896) and modified by J.A. Martinez-Alvarez, was used.

In the Tioyacu quarry, ten types of rocks were classified, corresponding to a sequence of limestones, magnesian limestones, dolomitic limestones, dolomitic marly limestones, marly
limestones, marls, calcareous marls, clayey marls, dolomites, and calcareous dolomites. Overlying this formation are recent Quaternary deposits, consisting mainly of alluvial deposits
comprised of colluvium and terraces with blocks and gravels in a sandy clay matrix.

Figure 6 Local stratigraphic column of the Tioyacu quarry.

19
6.3. Characteristics of the deposit

Table 10 shows the main characteristics of the deposit.

Table 10 Characteristics of Tioyacu quarry

Average depth (m)

Quarry Average Width (m) Total Length (m) Thickness (m) Continuity
Top Elevation Lower elevation
It is a sedimentary limestone deposit whose continuity is controlled
Tioyacu 450 1200 150 1000 820 longitudinally by the limestone outcrop, laterally by fault structures
and at depth by the water table.

Figure 7 Geological Section of the Tioyacu quarry

20
7. Exploration

7.1. Drilling

Cementos Selva’s exploration activities at the Tioyacu quarry property involve drilling to characterize the geology adequately.

Table 11 Drilling campaigns in Tioyacu quarry

Drilling Campaign Date N° of holes Hole Type

1 1983 5 Drill Hole
2 2015 6 Drill Hole

During the 2015 campaign, a total of 452 meters were drilled, reaching depths of up to 110.30 meters. HQ diameter pipes were used. The campaign was conducted over a period of 2
months, using 2 drilling rigs.

The drilling characteristics are shown in Table 12.

Table 12 Drilling characteristics of the 2015 campaign

Hole name From To Azimut (°) Dip (°) Diameter

DH-01 0.00 30.00 0 -90 HQ
DH-02 0.00 110.30 260 -75 HQ
DH-03 0.00 39.50 0 -90 HQ
DH-04 0.00 83.10 265 -75 HQ
DH-05 0.00 84.60 270 -75 HQ
DH-06 0.00 104.00 265 -75 HQ

Information obtained from blast holes performed during operations were used as a source of information for the estimation of Resources and Reserves.

21
Figure 8 Tioyacu quarry, drilling hole location map

22
7.2. Hydrogeology

Cementos Selva S.A. conducted some technical studies to define the hydrogeological characteristics of the Tioyacu limestone deposit, including:

- Consultora Minera Minconsult S.R.L Hydrological Study and Derivation Structures of the Quarry and Limestone Deposit - Mining Plan, September 2012.

- Cementos Selva S.A. Water quality monitoring of Tioyacu quarry, quarterly results 2014 - 2015.

The hydrogeological study has been carried out to characterize the hydraulic and hydrodynamic conditions of the subsoil hydrogeological units and evaluate groundwater levels and flow
conditions and their relationship with to Tioyacu groundwater discharges.

Geosym Consultores S.A.C (2015) developed the investigations through 04 hydrogeological borings with piezometers, and 19 Lefranc and Lugeon permeability tests were executed, 01
Slug Test, and 02 Air Lift tests, physical-chemical parameter readings, gauging with use of current meter, groundwater sampling. The results of the evaluations are presented below.

Hydraulic parameters in quarry rocks

Geosym Consultores S.A.C developed a study for the hydraulic characterization of the hydrogeological units. Geosym Consultores S.A.C analyzed the information obtained during
drilling activities. The values were obtained and classified based on the type of rock and its degree of fracturing. The results of the tests are presented in Table 13.

23
 Table 13 Hydraulic parameters of the hydrogeologic units

Lithological Units K (cm/s) K (m/d)

Avg. Med. Geo Máx Min Avg. Med. Geo Máx Min
Fractured limestone 2.1E-04 1.4E-04 4.5E-04 4.2E-05 0.18 0.12 0.39 0.04
Lightly fractured limestone 1.0E-05 9.2E-06 1.6E-05 6.4E-06 0.01 0.01 0.01 0.01
Fractured marl 5.9E-04 3.7E-04 1.2E-03 1.0E-04 0.51 0.32 1.07 0.09
Poorly fractured marl 1.3E-04 6.5E-05 2.4E-04 1.8E-05 0.11 0.06 0.21 0.02
Bituminous limestone 2.6E-05 1.3E-05 7.9E-05 3.5E-06 0.02 0.01 0.07 0.003
Poorly fractured dolomite 2.92E-05 0.03

Source: Geosym Consultores SA, 2015

Piezometer monitoring

Borehole level readings were obtained during drilling as part of the monitoring process.

The data obtained provided information for the hydrodynamic interpretation and morphology of the water table, in response to the aquifer recharge and discharge processes, in addition
to determining the hydraulic gradient. The results are shown in Table 14.

Table 14 Static levels of piezometers

Elevation Depth
Code Stick up (m) Static level (m)
(msnm) (m)
DH-01 843 30.00 0.75 15.87
DH-02 931 110.30 0.85 91.84
DH-03 834 39.50 0.85 8.38
DH-06 922 104.00 0.90 89.61

Source: Geosym Consultores SA, 2015

The study also provided information on aspects such as Piezometry and flow directions in the quarry area, Conceptual Hydrogeological Model, and Analysis of the current state of
groundwater and surface water.

24
7.3. Geotechnical studies

CSSA developed conducted studies to evaluate the geotechnical characteristics of the Tioyacu quarry, such as:

- Slope Stability Study of the Tioyacu quarry carried out in 2012, Cementos Selva commissioned Minconsult S.R.L, to carry out the Seismic Hazard Study of the Tioyacu quarry.

- Geotechnical Study of the Tioyacu quarry carried out in 2015, Cementos Selva commissioned Geosym Consultores S.A.C, to carry out the basic geological, hydrological,
hydrogeological, and geotechnical studies of the Tioyacu quarry.

Geosym Consultores S.A.C. (2015) performed a series of geotechnical sampling. These tests were carried out in in-situ tests in the field and others in the external laboratory.

The study also provided information on aspects such as in- situ testing, Uniaxial Compression Tests, Point Load Tests, Triaxial Compression Tests and Intact Strength Tensile Tests.

The following are the results:

Table 15 Uniaxial Compression test results

Code Depth (m) Lithology Uniaxial Compressive Strength (Mpa)

DH-01 20.70 – 20.92 Limestone 20.4
DH-02 14.00 – 14.20 Marly limestone 130.1
DH-04 12.70 – 12.90 Magnesian limestone 47.5
DH-05 9.60 – 10.17 Limestone 47.9
DH-06 11.50 – 11.70 Limestone 124.2

Table 16 Point Load test results

Uniaxial Compressive Strength (Mpa)

Code Depth (m) Lithology
Range Average
DH-01 5.05 – 5.30 Limestone 66.0 77.90
DH-01 15.75 – 16.00 Marly limestone 92.50 – 128.70 110.10
DH-02 71.78 – 72.00 Calcareous dolomite 85.40 – 103.70 95.80
DH-02 90.30 – 90.51 Calcareous marl 59.70 – 79.90 71.60
DH-04 25.29 – 25.45 Limestone 65.20 – 91.00 81.70
DH-04 64.40 – 64.68 Limestone 56.00 – 85.00 71.60
DH-05 17.20 – 17.52 Limestone 75.00 – 94.30 94.30
DH-05 66.45 – 66.80 Calcareous marl 78.90 – 88.50 82.90
DH-06 40.10 – 40.30 Marly limestone 48.90 – 98.20 79.20
DH-06 92.30 – 92.50 Marl 73.30 – 105.10 91.10

Table 17 Triaxial Compression test results

Uniaxial Compressive Constant Cohesion Angle of internal

Code Depth (m) Lithology
Strength (Mpa) “mi” (Mpa) friction (°)
DH-04 42.55 – 60.10 Limestone 69.21 14.44 14.16 46.90
DH-05 9.60 – 13.10 Limestone 93.38 15.74 18.67 47.93
DH-06 12.05 – 50.30 Limestone - Marly limestone 88.08 13.35 17.84 46.71

25
 Table 18 Traction resistance tests results

Uniaxial Compressive Strength (Mpa)

Code Depth(m) Lithology
Range Average
DH-01 27.10 – 27.40 Limestone 4.0 – 5.2 4.70
DH-02 15.95 – 16.15 Marly limestone 6.3 – 7.6 7.00
DH-04 72.25 – 72.45 Limestone 2.9 – 3.7 3.20
DH-05 67.80 – 68.02 Calcareous marl 5.5 – 7.3 6.50
DH-06 16.70 – 16.90 Marly limestone 5.8 – 6.9 6.40

Table 19 Rock mass strength properties

Lithology GSI MPa (KN/m3) “mi” C MPa Fric. Ang (°) Emr MPa v
Limestone 53 65 26.7 14 1.26 41 7180 0.28
Marly dolomitic limestone 58 65 26.3 14 1.40 43 9580 0.28
Dolomitic limestone 56 65 26.7 14 1.33 42 8540 0.28
Magnesian limestone 55 45 26.8 14 1.11 39 6700 0.28
43 60 25.9 10 0.86 34 3880 0.30
Marly limestone
59 100 25.9 14 1.77 46 12500 0.28
Dolomite 50 65 26.7 14 1.22 44 9040 0.28

Geosym Consultores S.A.C (2015), determined the geomechanical zoning of the rock mass of the study area, considering the lithological, geo-structural and quality aspects of the rock
mass using mainly the data from the 06 geotechnical borings and the 25 geomechanical mappings executed in the slope walls of the current quarry and adjacent areas of the same, and
that were available. Table 20 shows the rock mass rating (RMR) and quality of the rock mass.

Table 20 Rock mass quality by rock type

Lithology Average RMR Rock mass quality

Limestone 53 IIIA
Marly dolomitic limestone 58 IIIA
Dolomitic limestone 56 IIIA
Magnesian limestone 55 IIIA
Marly limestone 43 - 59 IIIB y IIIA
Dolomite 57 IIIA
Calcareous dolomite 57 IIIA
Marl 55 IIIA
Clayey loam 43 IIIB
Calcareous marl 54 IIIA

Geosym Consultores S.A.C (2015), conducted stability analyses, and recommended the angles shown in Table 21 in order to provide optimal stability of the benches in the Tioyacu
quarry.

Table 21 Tioyacu quarry design and planning angles

Bench face angle

Design sector Berm width (m)
Bench Inter - Ramp Final
I (*) 4.0 - 6.0 65° 35° - 42° 34°
II (*) 4.0 - 6.0 65° 35° - 42° 34°
III (*) 4.0 - 6.0 65° 35° - 42° 34°
IV (*) 4.0 - 6.0 65° 35° - 42° 28°
V 4.0 65° 44° 44°
VI 4.0 65° 44° 44°

Note (*): Bank slope of 65° and minimum berm of 4m for 44° slopes below 830 msnm. Bank slope of 65° and minimum berm of 6m for 35° interrampe slopes above elevation
830msnm

26
8. Sample preparation, analysis, and security

This Chapter describes the preparation, analysis and security of the samples used for the geology, quarry and cement plant operations.

8.1. Geology and quarry

Cementos Selva S.A. has implemented international standards in all its operations such as quarries and plants. The ISO 9001 standard has been implemented and certified since 2015.
The certification is renewed annually through an external audit.

The SSOMASIG unit (Security, Occupational Health, Environment and Management Systems), is part of the team that determines and gives the necessary support for the maintenance
of the ISO 9001 and the scope is in all the company’s activities.

Table 22 shows the list of protocols for quality assurance and quality control.

Table 22 Protocols of the Geology area

Activity Protocol Code Review

DRILLING WITNESS CUTTING OM-GL-PRT-0021 R0
Sample preparation
SAMPLE PREPARATION FOR PHYSICOCHEMICAL ANALYSIS OM-GL-PRT-0022 R0
methods
SAMPLE SELECTION FOR GEOMECHANICAL ANALYSIS OM-GL-PRT-0036 R0
DRILLING INITIATION AND SUPERVISION OM-GL-PRT-0005 R0
TOPOGRAPHY AND MEASUREMENT OF DRILL HOLE DEVIATIONS OM-GL-PRT-0007 R0
SAMPLE RECOVERY OM-GL-PRT-0008 R0
SURVEY AND DELIVERY OF COLLARS OM-GL-PRT-0009 R0
RECEIPT AND STANDARDIZATION OF DRILLING CORES OM-GL-PRT-0012 R0
PHOTOGRAPHIC RECORD OM-GL-PRT-0013 R0
PHOTOGRAPHY OF TEST PITS OM-GL-PRT-0014 R0
GEOLOGICAL LOGGING OM-GL-PRT-0015 R0
LOGGING OF TEST PITS OM-GL-PRT-0016 R0
Quality control
GEOTECHNICAL LOGGING OM-GL-PRT-0017 R0
procedures
SAMPLING IN TEST PITS OM-GL-PRT-0018 R0
FIELD-QUARRY SAMPLING OM-GL-PRT-0029 R0
ORE STOCK SAMPLING OM-GL-PRT-0030 R0
BLASTHOLE SAMPLING OM-GL-PRT-0032 R0
SAMPLE ANALYSIS FOR DENSITY OM-GL-PRT-0020 R0
QAQC PROGRAM OM-GL-PRT-0023 R0
ORE CONTROL OM-GL-PRT-0035 R0
ORE CONTROL POLYGON FIELD MARKING
ORE CONTROL PLAN
TRANSPORT OF CORES OM-GL-PRT-0010 R0
TRANSPORT OF SAMPLES TO THE LABORATORY OM-GL-PRT-0024 R0
REGISTRATION AND SHIPMENT OF MATERIAL OM-GL-PRT-0031 R0
Security CORE-SHACK STORAGE OM-GL-PRT-0034 R0
DATA ASSAYS INPUT - DATASHED OM-GL-PRT-0027 R0
CHANNELING OF GEOLOGICAL INFORMATION OM-GL-PRT-0028 R0
DATABASE MANAGEMENT OM-GL-PRT-0025 R0
PROGRAMMING OF COLLARS OM-GL-PRT-0001 R0
PROGRAMMING OF TEST PITS OM-GL-PRT-0002 R0
PREPARATION OF DRILLING RIGS OM-GL-PRT-0003 R0
INSTALLATION OF DRILLING MACHINE OM-GL-PRT-0004 R0
Others
PREPARATION OF TEST PITS OM-GL-PRT-0006 R0
HOLE ENDING OM-GL-PRT-0011 R0
REPORT WRITING - FIELD VISIT OM-GL-PRT-0026 R0
LIMESTONE MATERIAL MOVEMENT REPORT AND LOG - SGCP OM-GL-PRT-0033 R0

27
8.1.1. Preparation of samples, procedures, assays and laboratories

Samples obtained from the drill holes are placed in holders to be duly coded, cut, bagged and sent to the laboratory at the Rioja plant and are occasionally sent to an external laboratory
following the company’s procedures.

Certimin S.A. is used as an external laboratory for chemical analysis. Certimin S.A. is a Peruvian laboratory that is certified in ISO 9001, ISO 14001, ISO 45001, NTP-ISO/IEC 17025
Accreditation, and has a membership in ASTM. This laboratory has modern facilities for the development of mining services associated with the cement industry and technical support
in the geochemical field for national and international companies.

For the limestone samples, the laboratory analyses evaluate CaO, MgO, Al2O3, SiO2, Fe2O3, SO3 and Cl. Once received in the laboratory, the properties of the limestone to be used in
cement production are analyzed.

The Samples from the 2015 campaign were sent to Certimin S.A. Table 23 shows the methods used for limestone analysis.

Table 23 Methods of analysis for the limestone from the Rioja plant laboratory

Analytical Method used Description

Various elements SGC-PRO-06-S4005 Limestone samples from Rioja Plant - Analysis by X-ray equipment.
Moisture (%) S-CC-P-21 Limestone samples from Rioja plant - Wet Chemical Analysis of Crude and Raw Materials
LOI S-CC-P-21 Limestone samples from Rioja plant - Wet Chemical Analysis of Crude and Raw Materials

8.1.2. Quality Assurance Actions

Based on information and samples from the 2015 drilling campaign where limestone samples were obtained, Cementos Selva S.A., this year, performed an audit for the validation of
results, as part of its quality assurance and quality control (QAQC) activities. For this purpose, it hired Wiracocha Mining Services S. R.L., who conducted a re-sampling of a group of
drill holes drilled previously at the Tioyacu quarry. Also, the work included the revision of the QAQC program. The samples and controls of this program were analyzed at Certimin
S.A.’slaboratory.

The analysis of the results obtained for the different samples and controls inserted show a high confidence level, with an acceptable bias that is within the standards of the sampling
theory. This guarantees the accuracy of the results in the initial sampling, so it is concluded that both the preparation and analysis of the samples obtained initially in the laboratory of
Cementos Selva S.A., has reliable processes and procedures.

8.1.3. Quality Plan

Cementos Selva S.A. has implemented QAQC protocols for the development of exploration and production activities in the Tioyacu quarry in order to ensure the quality of the
information used in the estimation of Resources and Reserves.

The quality plan implemented by Cementos Selva for the quarries includes the insertion of blanks, duplicates and standards, in order to control the precision, accuracy and contamination
in the samples.

Table 24 Quality Plan of the Tioyacu quarry

Blanks Duplicates Standards Remark

1 control sample for each batch 2 control sample for each batch 1 control sample for each batch of 20 Cementos Pacasmayo protocol ¨OM-GL-PRT-
of 20 samples. of 20 samples. samples. 0023-R0¨.

In 2021, the results of the 2015 drilling campaign were re-analyzed to re-evaluate the deposit. As part of the procedure, twin and duplicate samples were inserted, representing 5.16%
and 10.32% as insertion ratio. Calcium (CaO), which is the main component of the limestone for cement production, was analyzed. The quality control (CaO) results showed that the
Twin samples had an error of 3.08%, which is within the acceptable range (30%). The percentage of good samples was 100%. On the other hand, the quality control results of the
duplicate samples showed an error of 0.94% (Coarse Duplicate) and 1.72% (Fine Duplicate), which is below the allowable error of 20%. The percentage of acceptable samples was
100%.

8.1.4. Sample security

Cementos Selva S.A. has implemented QAQC protocols for the development of exploration and production activities in the Tioyacu quarry in order to ensure the quality of the
information that allows the estimation of Resources and Reserves.

Cementos Selva S.A. has a specific area for the storage of the samples obtained during the drilling campaigns; the samples are properly stored in order to preserve their quality.

The necessary materials for storage and transport of the samples were provided. Sampling cards were also implemented with information on the name of the project, name of the
borehole to be sampled, date of sampling, sampling interval, sampling management, sampling and type of sample or control sample.

All samples were labeled and a photographic record is available. The photographic record of each sampling bag is made together with the weighing of the sample.

28
8.1.5. Chain custody

Cementos Selva has implemented actions to ensure the physical security of samples, data and associated records; the traceability of the sample from its generation to its analysis and
subsequent conservation of rejects and pulps. At the Tioyacu quarry, core samples are duly stored in the coreshack.

Figure 9 Photographic record of the sampling intervals

8.1.6. Qualified person’s opinion on quarry QAQC

In the authors’ opinion, Cementos Selva S.A. has been complying with the international standards of ISO-9001 since 2015 and implemented Quality Assurance and Quality Control
(QAQC). Cementos Selva S.A. has used a QAQC check program comprising blank, standard and duplicate samples. The QAQC shipping rate used complies with accepted industry
standards for insertion rates, as well as the actual sample storage areas and procedures are consistent with industry standards.

Protocols in the different exploration and production processes are strictly complied with. There is information on sample preparation methods, quality control measures, sample
security, and these results are accurate and free of significant error. The information in this report is adequate for use in the construction of the Geological Model, Resource estimation
and Reserve estimation.

8.

8.2. Rioja plant

8.2.1. Sample preparation, procedures, assays and laboratories

Cementos Selva S.A. has a quality plan for each of its operations, part of the corporate quality system.

Within the quality plan (S-CC-D-05 - Quality Plan), samples of raw materials such as limestone, clays, iron, and coal are evaluated in the Rioja plant laboratory, where they are analyzed
to determine the chemical composition of each material for the production of cement.

The procedures applied are wet chemical analysis of clinker and cement, wet physical and chemical analysis of crude and raw materials, general XRF procedures, physical-chemical
analysis for coal samples, and physical tests for cements based on ASTM, NTP (Peruvian Technical Standard), and ISO standards.

8.2.1.1. Raw materials sample preparation

For preparation of samples, staff follow the sample collection and preparation procedure, which consists of primary and secondary crushing, and reduction of the sample size by coning
and quartering followed by pulverizing the sample in a ring mill.

8.2.1.2. Laboratory Analysis

The laboratory at Rioja plant has implemented the ISO 9001 standard; also, it has calibrated equipment, with a calibration and maintenance program established by the laboratory area.
The main equipments in the laboratory at Rioja plant are the XRF fluorescence equipment and the compressive strength press, which are maintained annually and have inter-daily
verification.

The tests for air content, fineness, autoclave expansion, compressive strength and setting time, and Vicat are made for all types of cements. The autoclave contraction, 14-day mortar
expansion, 6-month sulfates expansion, SO3, MgO, loss on ignition, insoluble residue, and C3A and 2 C3A+ C4AF tests only apply to some specific cements.

29
8.2.2. Quality Assurance Actions

The quality assurance plan applicable to the cement production processes at Rioja plant is applied to:

- The reception of raw materials.

- Crushing of materials.
- Drying of raw materials.
- Grinding of raw materials.
- Clinkerization.
- Grinding of cement.
- Packaging of cement.

Table 25 shows the tests and frequency for each stage of the process.

Table 25 Tests and frequency for each stage of the process

Stage Tests Frequency

X-ray Chemical Analysis, Moisture, Sulfur / Total Moisture, Ash, Calorific power, Chemical Analysis by XRF, For each unit up to 1 time per
Reception of raw materials
R.I. (weekly) and Pozzolanic Activity (monthly). month.
Crushing raw materials Chemical Analysis by XRF, Moisture (every 2 hours), P.F (8 hours composite). Every hour.
Drying raw materials Moisture Every 2 hours.
Crude grinding XRF Chemical Analysis, Moisture (Every 2 hours), P.F , RM-170. Each 2 hour up to 8 hours.
Clinkerization Chemical Analysis by XRF, P.F, f-CaO / Liter Weight. Every 2 hours.
Chemical Analysis by XRF, P.F, f-CaO, Liter Weight, Moisture, Blaine, R.I., RM 325, RM 450, Setting, Every 2 hours up to 1 time per
Cement grinding
Autoclave Expansion, Compressive Strength. Silo.
Chemical Analysis by FRX, P.F, f-CaO, R.I. (in type I) / Blaine, RM 325, Setting, Autoclave Expansion, 1 time per day per type of
Cement packing
Compressive Strength, Air Content, Density and Expansion of the Mortar Bar (only in type GU). cement.

30
8.2.2.1. Finished Product Control

Controls for finished products include information on the type of tests, frequency, and responsible party. The tests performed are air content, fineness, autoclave expansion, compressive
strength, and Vicat setting time.

8.2.2.2. Control of non-conforming product

The non-conforming products must be identified, documented, evaluated, controlled, separated and disposed of, in order to prevent their unintentional use or delivery, according to the
established procedure. The remedial action for non-conforming product is reprocessing, reclassification of the material, acceptance by authorized personnel, acceptance by concession of
the client and controlled dosage.

8.2.2.3. Validation of silos

It applies to all products manufactured at the Rioja plant, with the objective of ensuring that the cement dispatched complies with the requirements established in the Technical
Specifications and Requirements of the Technical Standards.

8.2.2.4. Density

The density analysis in raw materials of coarse materials (crushed) is determined in a recipient of known volume (bulk density), the material is added in a recipient previously tared, is
compacted smoothly, is made level and is weighed on a precision balance. The values are reported in weight/volume. For cement, fine materials are analyzed through the Le Chatelier
bottle, whose value is used for the quality certificate issued to the customers.

8.2.2.5. Quality Assurance (QA) and Quality Control (QC)

The QAQC program contains methods that regulate the quality of the samples obtained in the operations of ore reception, crushing of materials, drying of raw materials, raw material
grinding, clinkerization, cement grinding, and cement packaging. In this way, quality control results are achieved.

31
The parameters used for quality control are:

- S-CC-PCC-01, Quality control parameters for cement grinding.

- S-CC-PCC-02, Quality control parameters for raw materials.

- S-CC-PCC-03, Quality control parameters for crude oil production.

- S-CC-PCC-04, Quality Control parameters for clinker production.

8.2.2.6. Quality Plan

The quality plan implemented by Cementos Selva S.A. for Rioja plant includes the insertion of blanks, duplicates and standards, in order to control the precision, accuracy and pollution
in the samples

Table 26 Quality Plan of Rioja plant

Blanks Duplicate Standard Comment

11 for cement (NIST) Blanks only apply when spot-checks are performed by Classical
50 250
01 for coal (LeCo) methods

8.2.2.7. Quality control parameters

The control parameters of the materials received at the Rioja plant are:

Table 27 Quality control parameters for materials received at the Rioja plant

Materials Content analysis

Limestone CaO, SO2, MgO and K2O
Fe2O3, ZnO, SO3, Moisture, Al2O3, Calorific power, Ash, S, Volatile matter, Insoluble
Others
residue, Loss on ignition and CaO.

Likewise, the quality control parameters for crude production are SIM, ALM, LSF, and RM170.

The cement quality control parameters are SO3, MgO, Insoluble residue, Loss on ignition, R-325, Specific surface Horizontal mill 1, 2, and 3, Compressive strength at Day One,
Compressive strength at Day Three, Compressive strength at Day Seven, Compressive strength at Day 28, Initial setting time and final setting time.

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8.2.3. Sample security

Cementos Selva S.A. has implemented QAQC protocols for the development of cement production activities at the Rioja plant, in order to ensure the quality of the information that
allows the estimation of the Resources and Reserves of the deposit.

Sample preparation methods are; Sampling and preparation of crude, clinker, and cement samples, Sampling and preparation of raw material samples, and Preparation of coal samples
for laboratory analysis.

The testing procedures are wet chemical analysis of clinker and cement, general XRF procedures, wet physical and chemical analysis of crude and raw materials, physical-chemical
analysis for coal samples, physical tests for cements, and quality plan.

Likewise, the control parameters are for raw material input, crude production, clinker production, cement grinding, sampling plan, frequency of tests for raw materials, and sampling
plan and frequency of tests for cement.

8.2.4. Qualified Person’s Opinion on cement plant QAQC

Cementos Selva S.A. has a Quality Assurance unit, which ensures compliance with the requirements for finished products specified in the technical product standards, based on Peruvian
technical standards and traceable to the American Society for Testing and Materials (ASTM).

9. Data verification

This Chapter shows the data verification activities for the geology, quarry and cement plant.

9.2. Geology and quarry

9.2.1. Data Verification procedure

CSSA has a unit specialized in the compilation, verification and standardization of information for the geological database. Its main function is the validation of the data to be used in the
estimation of Mineral Resources and Reserves. For the proper management of the information, internal protocols have been implemented which are subject to internal audits and are
supported by the DataShed software.

9.2.2. Data collection

The Data collection applies to exploration activities. For diamond drilling, the process flow for planning and execution of drillings, survey methods for reporting drill collars and ddh /
verification of the quality of information and recovery process of the core information. In addition, for geological sampling activities, the processes flowsheet, validation and consistency
of sample information, sample preparation and testing, density, registration process and digital photographic storage are used.

9.2.3. Management and Validation of Database

The stages for management and validation of database are the recovery, processing and storage of the database, which includes database development process flow, information
standardization and integration process, information storage strategy, appropriate database technology, structure and practicality of the database system that allows a fast and flexible
access and input of information, and validation of chemical results, which includes the QAQC report.

33
9.2.4. Tracking Data

The consistency between the database records and the original registry was verified by the QPs 2021. No differences were detected between the database and the log files. A digital copy
of all records is kept as pdf files. Digital certificates support the chemical analysis data.

The collection of the information considered the following: Drill collars, Survey, Lithology, Samples and Assays. The data is collected on the DataShed software.

9.2.5. Validation of Data

Collar, Survey, Lithology and chemical analysis data were imported and processed with DataShed software.

The results indicated that the database had adequate integrity for Resource estimation. This software verifies that the data entered from each sample or reported by the external laboratory
is correct for input into the Resource model.

The team followed the defined processes for information flows to support Resource and Reserve estimation. The qualified person followed the same process as a means of verifying and
validating and found that the validated data is congruent with the original geologic data used for the estimation of Resources.

No findings have been found that could invalidate the estimation of the Resources and Reserves of the unit.

9.3. Rioja plant

The Quality Control Plan contemplates the following aspects: PDCA cycle, customer, person in charge, activities, risks, control methods, monitoring, measurement, analysis, evaluation
and documentary evidence.

The PDCA cycle is:

- Plan; during this stage the following activities are considered: determination of characteristics of raw materials, product in process and finished product, elaboration of control
and matrices parameters and determination of activities and results assurance program.

- Do; during this stage the following activities are considered: verification and compliance with the requirements and matrices, sampling and preparation.

- Check: during this stage the following activities are considered: chemical analysis by XRF, chemical analysis, physical analyses, recording of results, taking action on non-
conformities.

- Act, during this stage the following activity is considered, acting to improve.

- The Quality Assurance Plan is applied to the following customers: production, quarry, provisions chain and external customer.

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9.3.1. Data verification procedures

The XRF analysis, chemical analysis and physical analysis are made to verify the results of the samples, as part of the Quality Control Plan.

The data resulting from these three types of analysis are recorded and evaluated in order to determine whether or not they comply with the technical specifications.

Data verification procedures include internal audits, check lists, statistical tables, reports, validation of data, certificates, interlaboratory test reports and compliance with quality
protocols.

9.3.2. Data validation

Cementos Pacasmayo S.A.A. (Included Cementos Selva S.A.) through its quality assurance and control area participates in evaluations with international laboratories such as
CCRL/ASTM (Concrete and Cement Reference Laboratory), which is an international reference laboratory for construction materials, and Xamtec of Colombia, an international
interlaboratory, in order to report reliable data.

The Quality Control laboratories endorse their analysis methods by participating in interlaboratory analysis programs, which compare the results with national and foreign laboratories.
The methods of analysis compared are X-ray fluorescence (XRF) and the physical cement tests, which are the methods used to control cement quality. In all the results of these
interlaboratory programs, the companies always obtain the best results for each test.

9.3.3. Qualified Person’s Opinion on cement plant

In the author’s opinion, the methodologies used for collection and processing data at the cement plant are accurate and free of significant errors. The information can be used for model
construction and estimates for cement production. Considering that the analyses of the main chemical components and physical properties of the raw materials and final products are
completed by external laboratories, the quality of the information is adequate for preparing mineral resource and reserve estimates.

10. Mineral processing and metallurgical testing

10.1. Nature of Testing Program

Cementos Pacasmayo S.A.A. has Quality Assurance and Research and Development units. The objective of these units is to develop, evaluate and research procedures for the
development of products at laboratory scale and their scaling up to industrial scale. Another objective is to identify evaluations of fuel substitutes to reduce energy costs.

Cementos Pacasmayo S.A.A has also implemented their own procedures for the preparation, review, issuance and control of test reports associated with cement production.

The laboratory at Pacasmayo plant has implemented the ISO 9001 standard; Cementos Pacasmayo has implemented a Research and Development laboratory located at the Pacasmayo
plant to evaluate the technical aspects of cement plant and quarriy operations (including Tioyacu quarry and Rioja Plant).

Cementos Pacasmayo applies the procedures:

- P-ID-P-04 Preparation of raw materials.

- P-ID-P-05 Sampling of cement and raw materials.

- P-ID-P-13 Input, storage and disposal of samples.

A permanent control is carried out with other laboratories to give greater reliability of the results. Likewise, inter-laboratory reports are issued with external laboratories such as CCRL
(Cement and Concrete Reference Laboratory), which is an international reference laboratory for construction materials, and Xamtec from Colombia, a domestic internal interlaboratory.

A significant percentage of R&D activities are focused on the evaluation of alternative fuels such as rice husks. Laboratory tests are developed always seeking to generate an operational
benefit for the company.

35
The R&D Laboratory located at the Pacasmayo plant provides analysis and research services to all of the company’s cement plants.

10.2. Cement Manufacturing Test Results

To determine the cement design, which includes the clinker/cement factor, CPSAA uses the tests outlined in national technical standards such as NTP 334.009, NTP 334.090, and NTP
334.082. The cement design is modified when some of the chemical or physical requirements present a trend that could lead to non-compliance (non-conforming product). For the
clinker/cement factor, priority is given to the compressive strength test at all ages (1, 3, 7, and 28 days). If the compressive strength shows a negative trend, even modifying the operating
variables to correct it, the clinker/cement factor is modified.

At the Pacasmayo plant, the studies conducted in the Research and Development laboratory and the Quality Control units include the substitution of fossil fuels for rice husks at the
Rioja plant.

The main objective of the substitution of fossil fuels is the reduction of CO2 or greenhouse gas emissions.

In 2021, CSSA used 5700 t of Alternative Fuel (measured as coal equivalent) in the Rioja plant. This result represented 10% of the total fuels used by the plant for cement production
and a reduction in emissions of 14,958 mt of CO2.

10.3. Adequacy of the Test Data

The Research Laboratory issues technical reports following the criteria of international standards to the operations area, which evaluates the convenience of industrially implementing
the tests and validating what has been reported at laboratory scale.

The reliability in the veracity and the adequacy of the data reported by the area, is based on the technical competition of the area’s collaborators, which is regularly evaluated through
different internal and external interlaboratory programs. In the opinion of the QPs, the cement mix design using the limestone characteristics is adequate for mineral resource and reserve
estimation.

11. Mineral Resources estimates

The geological model was developed and structured using Leapfrog software; the solids were generated considering the quality of the lithology based on the results of the analysis of the
samples taken.

Because the deposit is a sedimentary one, the qualified persons interpreted the geological model with the help of a set of regularly-spaced sections parallel to and perpendicular to strike
of the deposit shape.

According to the lithological characteristics and descriptions, ten lithological horizons were recognized.

The lithological units have been grouped by assigning a numerical code in the mining software to simplify the modeling. Table 28 shows the lithological units with their respective
numerical codes.

Table 28 Lithologic units of the Tioyacu quarry geological model

Lithologic Units Lithology Code

Limestone 1
Marly limestone 2
Magnesian limestone 3
Marly dolomitic limestone 4
Dolomitic limestone 5
Calcareous dolomite 7
Dolomite 6
Calcareous marl 8
Marl 9
Clay loam 10

The main criteria for geological modeling is the quality, such as the content of oxides in limestones.

The lithological criteria is based on the macroscopic physical characteristics of the limestone horizons and the percentage of essential elements in its composition (oxides) that determine
the quality of the limestones. Based on the quality and specifications of the cement plant, the qualified persons used a cut off of 49% of CaO.

36
Table 29 shows the referential cut-off of the oxides that determine the classification of the final limestone rock products.

Table 29 Rioja plant material restrictions

Crude
CaO (%) 49.00
SiO2 (%) 7
MgO (%) 1.60
Al2O3 (%) -
K2O (%) 0.40

The qualified persons built a block model based on the dimensions and spatial distribution of the deposits containing the material of economic interest. Table 30 shows the characteristics
of the model.

Table 30 Characteristics of the block model

Minimum (m) Maximum (m) Size (m) Number

X 246789 247637 4 212
Y 9335804 9337080 4 319
Z 720 1048 4 82
11.1. Database

A total of 341 samples from 11 drill holes were used for resource estimation. Additionally, 7,855 blast hole control samples were used to strengthen the variogram analysis of the
primary variable CaO.

The data is processed and managed in Data Shed software and then used in Mine Sight software.

11.2. Density

For the bulk density of the rocks, diamond drilling samples were collected at the Tioyacu quarry, from which the bulk densities were determined by the wax method. The results of this
determination and the bulk densities by lithological domain are shown in Table 31.

37
 Table 31 Limestone density per horizon

Lithology Density (g/cm3)

Limestone 2.71
Marly limestone 2.73
Magnesian limestone 2.69
Marly dolomitic limestone 2.69
Dolomitic limestone 2.73
Calcareous dolomite 2.70
Dolomite 2.64
Calcareous marl 2.61
Marl 2.62
Clay loam 2.10

11.3. Composting

The compositing was performed using control of the GEO Item (file 11 MS). In general, each geological unit is estimated from the information of the composites belonging to that unit.
The composites should not cross “hard” boundaries between different geological units.

For compositing, the QPs assumed each initial core section has uniform grades in order to composite the grade profile of each borehole. During compositing, the goal was to preserve the
original nature (variability) of the samples.

The calculated values considered in the compositing were for CaO, MgO, SO3, SiO2, Fe2O3, Al2O3, and K2O.

Composites were made at different lengths to determine the optimum compositing length. The 4 m composite is the size that best fits the nature of the original sample and so was used in
resource estimation.

In addition, the modeling considered the length of the composites based on an exact multiple of the block height, which coincided with the bench height.

11.4. Basic statistics of the data (Assay – Composites)

Tables 32 and 33 show the results of the basic statistics of the elements CaO, SiO2, MgO, SO3, K2O, Na2O, and Cl for the original and composite data. The statistical analysis was done
separately for each defined orebody (limestone horizon).

Tables 32 and 33 show the statistics of the limestone and marly limestone horizons as these are the main ones for the estimation of the Resources and Reserves.

38
 Table 32 Basic statistics of the limestone horizon data

Std. Co. Of
Components Origin Valid Rejected Minimum Maximum Mean Variance
Devn. Vartiation
Assay 2,596 6 0.18 32.04 3.39 3.02 9.14 0.89
SiO2
Composite 5,150 10 0.18 32.04 3.45 3.05 9.32 0.89
Assay 2,596 6 0.01 5.73 0.41 0.46 0.21 1.12
Al2O3
Composite 5,150 10 0.01 5.73 0.42 0.47 0.22 1.12
Assay 2,601 1 30.49 55.38 51.84 2.22 4.94 0.04
CaO
Composite 5,160 0 30.49 55.38 51.79 2.24 5.01 0.04
Assay 2,596 6 0.00 9.00 0.17 0.31 0.09 1.80
K2O
Composite 5,150 10 0.00 9.00 0.17 0.31 0.10 791.0
Assay 2,596 6 0.07 10.21 1.18 0.54 0.29 0.46
MgO
Composite 5,150 10 0.07 10.21 1.20 0.54 0.29 0.45

Table 33 Basic statistics of the data of the marly limestone horizon.

Std. Co. Of
Components Origin Valid Rejected Minimum Maximum Mean Variance
Devn. Vartiation
Assay 746 2 0.60 19.45 8.43 3.78 14.27 0.45
SiO2
Composite 1,358 2 0.63 19.45 8.18 3.79 14.33 0.46
Assay 746 2 0.12 4.43 0.94 0.63 0.39 0.67
Al2O3
Composite 1,358 2 0.12 4.43 0.94 0.62 0.39 0.66
Assay 746 2 37.67 54.18 48.55 2.67 7.15 0.06
CaO
Composite 1,358 2 37.67 54.18 48.67 2.70 7.29 0.06
Assay 746 2 0.06 2.28 0.42 0.35 0.12 0.83
K2O
Composite 1,358 2 0.06 1.96 0.43 0.35 0.12 0.81
Assay 746 2 0.25 6.30 0.82 0.39 0.15 0.47
MgO
Composite 1,358 2 0.25 6.30 0.82 0.39 0.15 0.47

11.5. Extreme values

Extreme values are considered to be those analysis results that are not representative of the unit being studied and are defined in this work to be those that are above the mean plus twice
the standard deviation.

In the analysis of the extreme values in the laboratory results for the calcareous lithologic units that are being estimated, no deviation has been found, all the results are coherent and
representative of the levels to which they correspond.

39
11.6. Variogram Analysis

In the variogram analysis of the composited data, each level corresponded to a body of economic interest at the Tioyacu quarry. From the variogram analysis, it was concluded that
acceptable experimental variograms could only be obtained in two lithologies due to the amount of data.

The QPs considered an experimental variogram to be acceptable if the number of pairs used to estimate the semi-variances are greater than or equal to 200. The variogram modeling
consisted of fitting the experimental variograms to valid variogram models in MineSight. Of these models, the most representative was the spherical model, present in 85% of the
structures, followed by the Gaussian model. Table 34 shows the results of variogram modeling.

Table 34 Variogram modeling parameters

Type of Variogram Model Spherical

Nugget effect 0.87
Total Sill 1.16
Range 82

11.7. Interpolation

The Ordinary Kriging Interpolation (OK) method was used for the primary CaO variable, Inverse of the Distance (ID2) for the secondary variables, and Nearest Neighbor (NN) for
validations. Table 35 shows the main parameters used to determine the interpolations of the primary CaO variable of the Limestone and Magnesian Limestone horizons.

- The interpolations were performed in two consecutive passes.

- The first with a search radius of twice the variogram range.

- The second with a search radius equal to the range.

During interpolation, a mínimum of two and a maximum of 20 composites were used to estimate block qualities. Additionally, the QPs restricted the interpolation to using a maximum
of two composites from each drill hole in all the passes.

40
 Table 35 Ordinary Kriging Estimation Parameters CaO

Comment PASS 1 PASS 2 PASS 3

Search dis. Block on Model -X 90 135 180
Search dis. Block on Model -Y 90 135 180
Search dis. Block on Model -Z 90 135 180
Max distance accept data 90 135 180
Min # comps a Block 4 3 2
Max # comps a Block 10 20 20
Max # comps per hole 2 2 1
Variable Model CA1 CA1 CA1
Variable comp CAO CAO CAO
Variable pasada PSCA1 PSCA1 PSCA1
Pasada PASS1 PASS2 PASS3
Store distance DICA1 DICA1 DICA1
Store max # comp NCCA1 NCCA1 NCCA1
Store max # drillholes NDCA1 NDCA1 NDCA1
Store krigeage variance SDCA1 SDCA1 SDCA1
Model type variogram SPH SPH SPH SPH SPH SPH SPH SPH SPH
Nugget effect 0.293 0.293 0.293
Sill 0.038 0.278 0.391 0.038 0.278 0.391 0.038 0.278 0.391
Range along major axis 82 22 10 82 22 10 82 22 10
Range along minor axis 82 22 10 82 22 10 82 22 10
Range along vertical axis 16 6 2 16 6 2 16 6 2
Direction major axis 10 38 82 10 38 82 10 38 82
Plunge mayor axis -4 -8 -16 -4 -8 -16 -4 -8 -16
Dip 25 46 82 25 46 82 25 46 82
Distance along major 90 135 180
Distance along minor 90 135 180
Distance along vert 12 16 32
ROT 157.66 157.66 157.66
DIPN -7.22 -7.22 -7.22
DIPE 32.29 32.29 32.29
Limiting Variable model RT1 RT1 RT1
Code limiting variable 1 1 1
Code matching conmp vs model GEO GEO GEO

41
11.8. Mineral Resources classification

Cementos Selva S.A. obtained the parameters for classifying Resources based on staff´s experience designing the optimal drilling grid for sampling by geostatistical methods.
Additionally, the variogram analysis was used as reference. Based on these, the following basic criterio is used to define the Resource classes:

- Measured Resource: 1/3 of the distance of the variogram range.

- Indicated Resource: 2/3 of the distance of the variogram range.

- Inferred Resource: The total distance of the variogram range.

Several configurations have been defined from this basic configuration, taking into account the number of drill holes and the average search distance.

Associated with the uncertainty, QP considered the criteria in Table 36 to categorize the Resources. The table shows the number of composites, drill holes, and distance used for the
various resource categories.

Table 36 Criteria for Resource categorization

Measured Indicate Inferred

Minimun number of composites 2 2 1
Maximun number of composites 20 20 20
Number of composites drillhole 2 2 1
Average distance of composites (m) 90 135 180
11.9.Resources estimation

Resource estimates are effective December 31, 2021. All Resources are estimated as quantities at cement plant. For the estimation of Resources, the CaO content was considered and the
impurity content. The impurities are restrictions determined by the cement production plant. Table 37 shows the Resources and the average values of their quality.

Table 37 Resource categorization (exclusive of Reserves) at the Tioyacu quarry

Al2O3 MgO Si2O K2O

Resources Tonnes M CaO (%)
(%) (%) (%) (%)
Measured 0 0 0 0 0 0
Indicated 0 0 0 0 0 0
Limestone Measured +
0 0 0 0 0 0
Indicated
Inferred 19.19 45.61 0.36 6.58 2.52 0.14

* No economic evaluation was performed for the Tioyacu quarry because it only has inferred resources.

42
11.9.1. Cut-off

The main factor for the determination of Resources is quality. The costs of production, transportation, cement processing, and cement dispatch were considered to determine the
Resources. The costs are based on real sources of the current operations of Cementos Selva S.A. Chapter 19 shows the economical analysis for determining the mineral Resources.

11.9.2. Reasonable Prospects of Economic Extraction

The Mineral Resource evaluation has considered relevant economic and technical factors such as limestone production costs, cement sales prices, and environmental and social viability
at our operations.

The area associated with the Resource estimate is located at the lower boundary of the mining concession. Complement the geological information towards the S-SW zone of the quarry,
considering future production activities.

The Resource estimate considers the Tioyacu deposit as 90 m. thickness, defined by quality and continuity.

The all material produced in the Tioyacu quarry is blended to be sent to the plant. The quality of this material is analyzed in the Rioja plant laboratory before blending.

Update the geomechanical and hydrogeological studies of the quarry to consider future open-pit mining to the south.

The information that supports the estimation of the quarry’s Resources is consistent, which allows obtaining a robust resource model.

From the environmental and social point of view, Cementos Pacasmayo (included Cementos Selva) has been developing activities in Peru for more than 60 years and is recognized as a
Peruvian company with a high reputation, therefore, it is expected that the environmental and social viability will continue.

11.10. Qualified Person’s Opinion

The QP has considered the quality and geological characteristics of the limestone horizons to develop the geological model. Likewise, the QP’s interpretation of the deposit was based on
the diamond drill holes obtained in the drilling campaigns. The QP’s opinion is that there is consistency between the information and the geological model. As a producing mine, most of
the relevant technical and economic factors have already been resolved.

Pit expansion to the south zone of the deposit is necessary to complement and update the geological model and to reduce the uncertainty in order to confirm the Resources and
recategorize the inferred ones.

43
12. Mineral Reserves estimates

Total Mineral Reserves estimated at the Tioyacu quarry are 11.39 million tonnes, as detailed in Table 39 in their different categories.

Additionally, the periodic update of the Reserves of the Tioyacu quarry takes into account the Reserves extracted when updating the Resources and Reserves models, any new
“modifying factors”, or the change and entry of any new data.

The calcium oxide (CaO) content is the primary variable in the Resources and Reserves estimation. Its specific values depend on the lithological domain, with its concentration higher in
some lithologies than in others.

The calculated Reserves in the limestone deposit reach 6.55 M mt. of proven Reserves with 50.30% CaO and 4.84 M mt. of probable Reserves with 47.29% CaO for a total of 11.39 M
mt. of Reserves with 49.03% CaO that support the mining plans for production and supply to the Cementos Selva S.A. plant.

Based on the estimated Reserves and the plant’s projected limestone consumption, the QPs estimate a life of mine of 27 years for the quarry.

12.1. Criteria for Mineral Reserves estimation

The criteria used for the determination of Mineral Reserves are described below.

12.1.1. Run of Mine (ROM) determination criteria

ROM is considered to be all material produced in the quarry that complies with the specifications and will be sent to the plant for cement production. For determining ROM tonnage,
dilution was considered to be negligible. The recovery in the quarry was assumed to be 100%.

12.1.2. Cement Plant recovery

The limestone received at the Rioja plant is properly stored and then mixed with other raw materials to obtain the crude (kiln feed). The crude contains 73.1% limestone.

44
After the crude is obtained, it is fed to the calcination kiln to obtain clinker. Finally, the clinker is mixed with additives to obtain cement.

12.2. Reserves estimation methodology

The Mineral Reserve estimation considers the costs of production, transportation, cement processing, and the quality restrictions of the raw material. The costs are based on actual costs
from the current operations of Cementos Selva S.A. at the Tioyacu quarry and Rioja plant. Chapter 19 shows the economical analysis used to determine the Mineral Reserves.

● Proven and Probable Reserves are derived from Measured and Indicated Resources, respectively.

● Proven and Probable Reserves are within the pit designed for the Tioyacu quarry.

● Reserves are those for which economic viability has been demonstrated by estimating capital costs, operating costs and cash flow analysis.

● Cementos Selva S.A. has permits for limestone production at the Tioyacu quarry.

● The effective date of the Reserve estimate is December 31, 2021.

● The Reserve estimate is the final product placed in the Rioja plant.

12.3. Reserves estimation

The quality restrictions for limestone at the Rioja plant are shown in Table 38.

Table 38 Rioja plant material restrictions

Crude
CaO (%) 49.00
SiO2 (%) 7
MgO (%) 1.60
Al2O3 -
K2O (%) 0.40

From the quality point of view, the cut-off grade for limestone is 49.0% CaO. The economic assumptions used for Reserve estimation are shown in Chapter 19.

45
The economic analysis for Mineral Resources and Reserves estimation is presented in Chapter 19. The Reserves are expressed in tons and are shown in Table 39.

Table 39 Mineral Reserves expressed in millions of tonnes

Reserves Tonnes M CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
Proven 6.55 50.30 0.58 1.13 5.46 0.21
Limestone Probable 4.84 47.29 0.64 3.33 5.95 0.19
Total 11.39 49.03 0.61 2.06 5.67 0.20

12.4. QP’s Opinion on Risk Factors affecting Reserve Estimates

In the QP’s opinion, the Reserves estimated for the quarry from the Resources consider the relevant risk factors and modifying factors which affect the tonnage and quality estimates.
The primary variable is considered to be CaO, which is very stable in the deposit. SiO2 is viewed as a secondary variable that, without adequate control, can have an inverse effect on the
CaO content in the Reserves.

In estimating Reserves and the production plans for the quarry, these variables have been adequately considered with production sequencing and blending processes.

Because the Cementos Selva has been operating the Tioyacu quarry for 21 years and the deposit is relatively stable in the main quality metrics, the QP is of the opinión that the risks
associated with the Reserve estimate is low.

46
13. Mining methods

Cementos Selva S.A., a wholly-owned subsidiary of Cementos Pacasmayo S.A., is the current owner of the Tioyacu quarry. Cementos Selva S.A. carries out the planning, production,
supervision, and quality control of the quarry to verify the activities and production according to the requirements of Rioja plant.

13.1. Mining methods and equipment

The production of the deposit begins with the drilling and blasting. The fragmented material is pushed with a dozzer to create muckpiles before loading the material into dump trucks
using a front loader. The material is transported to the cement plant.

The quarry activities allow the production of fragmented limestone smaller than 12” in diameter, with carbonate grades according to the plant’s needs.

The sequence of limestone extraction is by benches, which are produced sequentially according to the annual requirement of the plant.

Figure 10 Tioyacu quarry mining sequence

Limestone mining at the Tioyacu quarry comprises the following unit operations:

● Drilling

Drilling activities at Tioyacu quarry are carried out with two diesel-powered drilling rigs, one of them as stand-by.

● Blasting

Blasting allows the rock to be fragmented to a size suitable for loading, hauling, and crushing unit operations. Non-electric detonators and connectors are used to avoid
vibration and sound.

● Loading and Transportation

There are 04 Volvo dump trucks of 14 m3 capacity, 02 excavator CAT, 01 front loader CAT 962L and 01 tractor Cat D8T.

47
The main equipment used to carry out mining activities at the Tioyacu quarry are shown in Table 40.

Table 40 Equipment of the Tioyacu quarry

Description
Equipment Quantity Function
These machines are used to drill holes for blasting.
Track Drill and RockDrill 2 Drilling
Equipment used to move the fragmented material
Track
Caterpillar dozer D8T 1 resulting from blasting.
maintenance

Front End Loader Material handling equipment.

Material Loading
CATERPILLAR 962L (3.6 m³ 1
and Stacking
bucket capacity)
Material handling equipment.
Excavator (1.16-2.69 m3 bucket 2
Material Loading
capacity) and Stacking
Equipment for conveying material from the
Dump truck 4 Material hauling production areas to the primary crusher. Their
capacity is 14 m3.

13.2. Geotechnical aspects

CSSA performed technical studies to know the geotechnical characteristics of the Tioyacu quarry, such as:

- Slope Stability Study of the Tioyacu quarry, carried out in 2012. Cementos Selva commissioned Minconsult S.R.L, to carry out the Seismic Hazard Study of the Tioyacu quarry.

- In 2015, Cementos Selva hired Geosym Consultores S.A.C, to carry out the basic geological, hydrological, hydrogeological and geotechnical studies of the Tioyacu quarry.

Geosym Consultores S.A.C (2015), determined the geomechanical zoning of the rock mass of the quarry.

48
The study considered the rock mass’s lithological, geo-structural, and quality aspects. The source of information for the analysis was results from 06 geotechnical drill holes, and the 25
geomechanical mappings carried out on the slope walls of the current quarry and adjacent areas of the quarry.

The results on the characterization of RMR and rock mass quality are presented in Table 41.

Table 41 Rock mass quality by rock type

Lithology Average RMR Rock mass quality

Limestone 53 IIIA
Marly dolomitic limestone 58 IIIA
Dolomitic limestone 56 IIIA
Magnesian limestone 55 IIIA
Marly limestone 43 - 59 IIIB y IIIA
Dolomite 57 IIIA
Calcareous dolomite 57 IIIA
Marl 55 IIIA
Clay loam 43 IIIB
Calcareous marl 54 IIIA

Geosym Consultores S.A.C (2015), performed stability analyses, the results are shown in Table 42.

Table 42 Tioyacu quarry design and planning angles

Bench face angle

Design sector Berm width (m)
Bench Inte - Ramp Final
I (*) 4.0 - 6.0 65° 35° - 42° 34°
II (*) 4.0 - 6.0 65° 35° - 42° 34°
III (*) 4.0 - 6.0 65° 35° - 42° 34°
IV (*) 4.0 - 6.0 65° 35° - 42° 28°
V 4.0 65° 44° 44°
VI 4.0 65° 44° 44°

Note (*): Bench slope of 65° and minimum berm of 4m for 44° slopes below 830 msnm. Bank slope of 65° and minimum berm of 6m for 35° interrampe slopes above elevation
830msnm.

49
13.3. Hydrological aspects

CSSA hired specialized companies to analyze the hydrogeological characteristics of the Tioyacu limestone deposit:

- Consultora Minera Minconsult S.R.L Hydrological Study and Derivation Structures of the Quarry and Limestone Deposit - Mining Plan, September 2012.

- Cementos Selva S.A. Water quality monitoring of Tioyacu quarry, quarterly results 2014 - 2015.

The hydrogeological study was conducted to characterize the hydraulic and hydrodynamic conditions of the subsurface hydrogeological units. Likewise, the study evaluated groundwater
levels and flow conditions and their relationship with Tioyacu groundwater discharges.

Geosym Consultores S.A.C investigated the hydrogeology using 04 hydrogeological borings with piezometers, 19 Lefranc and Lugeon permeability tests, 01 Slug Test, and 02 Air Lift
tests, physical-chemical parameter readings, gauging with the use of a current meter, and groundwater sampling.

Table 43 Hydraulic parameters of the hydrogeologic units

K (cm/s) K (m/d)
Lithological Units
Average Med. Geo Máx Min Average Med. Geo Máx Min
Fractured limestone 2.1E-04 1.4E-04 4.5E-04 4.2E-05 0.18 0.12 0.39 0.04
Lightly fractured limestone 1.0E-05 9.2E-06 1.6E-05 6.4E-06 0.01 0.01 0.01 0.01
Fractured marl 5.9E-04 3.7E-04 1.2E-03 1.0E-04 0.51 0.32 1.07 0.09
Poorly fractured marl 1.3E-04 6.5E-05 2.4E-04 1.8E-05 0.11 0.06 0.21 0.02
Bituminous limestone 2.6E-05 1.3E-05 7.9E-05 3.5E-06 0.02 0.01 0.07 0.003
Poorly fractured dolomite 2.92E-05 0.03

Source: GEOSYMSA, 2015

The hydraulic parameters shown in Table 43 and considering the equipment presented in Table 41 do not affect limestone production activities in the quarry. On the other hand,
production does not compromise the water table.

13.4. Other Mine Design and Planning Parameters

The limestone production reached by December 2021 is 377,702 tonnes, and no waste rock was removed. Based on the plant requirements and sales projection for the next 27 years, the
pit design parameters for the Tioyacu quarry are presented in Table 44.

Table 44 Summary of Tioyacu quarry design parameters

Description Value
Safety bench 4-6 m

Bench slope angle 65°

Berm width 8m

Width of ramps 12 m

50
13.5. Anual production rate

Considering that the cement plant demands an average annual production of 0.42 million tonnes per year of limestone, the plan for the next 27 years is shown in Table 45.

13.6. Mining plan

The proposed mining plan for the next 27 years is presented in Table 45.

Table 45 Mining plan for the next 27 years

Year Tonnes CaO SiO2 MgO Al2O3 K2O

2022 406,456 49.05 4.14 2.83 0.54 0.19
2023 414,586 49.03 4.4 2.66 0.57 0.18
2024 416,522 49 3.8 3.17 0.48 0.14
2025 417,835 49.01 5.61 2.08 0.61 0.2
2026 419,175 49.06 5.55 2.07 0.64 0.2
2027 420,541 49.06 3.64 3.19 0.45 0.16
2028 421,935 49.02 6.95 1.28 0.65 0.21
2029 423,357 49.02 3.27 2.97 0.4 0.13
2030 424,807 49.06 3.59 2.44 0.42 0.16
2031 426,286 49 5.59 1.98 0.51 0.17
2032 427,795 49.01 6.5 1.1 0.6 0.23
2033 428,025 49.01 6.19 1.65 0.7 0.25
2034 428,025 49.01 4.29 2.69 0.62 0.25
2035 428,025 49.04 6.57 1.26 0.7 0.29
2036 428,025 49.06 5.64 1.48 0.61 0.23
2037 428,025 49.01 7 1.23 0.62 0.24
2038 428,025 49.02 5.21 2.34 0.8 0.15
2039 428,025 49.03 6.39 1.23 0.69 0.26
2040 428,025 49.01 5.12 2.41 0.53 0.18
2041 428,025 49.03 7.43 0.99 0.84 0.2
2042 428,025 49 5.76 2.02 0.56 0.19
2043 428,025 49.03 7 0.91 0.66 0.19
2044 428,025 49 6.44 1.71 0.67 0.23
2045 428,025 49.04 6.17 2.5 0.61 0.21
2046 428,025 49.02 6.92 1.9 0.7 0.2
2047 428,025 49.03 6.76 3.01 0.61 0.21
2048 350,624 49.03 7 2.86 0.6 0.21
Total 11,390,294 49.03 5.67 2.06 0.61 0.2

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Figure 11 shows the final pit for the life of the quarry.

Figure 11 Tioyacu quarry final pit

13.7. Life of Mine

The life of the Tioyacu quarry is 27 years.

13.8. Staff

Cementos Selva S.A. personnel develop its operations at the Tioyacu quarry with its staff and contractors.

52
14. Processing and recovery methods

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

14.1. Process Plant

Cement production involves the following stages:

Production of raw materials. Limestone is produced from the Tioyacu quarry, as described in Chapter 13.

Milling and homogenization. Once the limestone is received at the plant, it is dosed to the raw mill with clay, iron, and coal. The mixture must meet the quality standards to be sent to a
storage silo from where it is fed to the crude storage silo. The crude is fed to the kiln for clinker production.

Clinkerization. The mixture is pelletized and then enters the vertical kiln where it reaches a temperature of approximately 1,450 degrees Celsius, the product of which is clinker. The
clinker is then cooled to about 200 degrees Celsius and stored in silos or storage bins.

Cement grinding. After being cooled, the clinker, together with gypsum and some additives, is fed into a mill to obtain cement.

Storage in silos. After passing through the mills, the cement is transferred to conveyor channels and stored in concrete silos to preserve its quality until distribution.

Packing, loading, and transportation. Cement is transferred through chutes from the silo to be packed into 42.5-kilogram bags in bagging machines, and then stored or loaded onto trucks
operated by third parties for distribution. Bulk cement is transported by trucks.

14.2. Raw materials for the cement production

The following raw materials and additives are used in the Rioja plant to produce cement.

Raw Materials

Limestone, is composed mainly of calcium carbonate and is used as raw material and an additive in cement production.

Iron, is inert material composed basically of iron oxide (Fe2O3).

Clay, is inert material composed of silicon, aluminum, and a low proportion of alkalis such as potassium and sodium.

Coal, is a solid, black, or dark brown mineral that is essentially carbon with small amounts of hydrogen, oxygen and nitrogen.

Crude, is an artificial mixture of limestone, clay, iron, and coal used to produce clinker.

Clinker is a product obtained from limestone, clay, iron, and coal.

Additives

Limestone.It is a material composed mainly of calcium carbonate, which, when finely ground, is used as an additive in cement production.

Gypsum. It is a material composed of calcium sulfate hydrates. When gypsum is mixed with the clinker, it controls the setting time when the cement initiates the hydration reactions.

53
14.3. Flow sheet

The following is the block diagram of the cement plant for raw material processing, clinker and cement production.

Figure 12 Rioja plant process block diagram

14.4. Main equipment

Table 46 shows the design and production capacities for clinker and cement.

Table 46 Main equipment in Rioja plant

Capacity of
Equipment Product Unit
production
Limestone
Crusher Iron 72,000 tonnes/month
Gypsum
Limestone
Dryer 98,450 tonnes/month
Clay
Crude Type I 70,200
Mill tonnes/month
Cement 36,720
Kiln Clinker Type I 24,120 tonnes/month
Bagging system Cement 720,000 bags/month

54
14.5. Material balance cement plant

The following section presents information on the material balance at Rioja plant for cement production.

14.5.1. Material balance

Below is the clinker production balance at the Rioja plant, considering the use of limestone obtained from the Tioyacu quarry, clay, iron, and coal as part of the raw material for clinker
production. Likewise, the balance for cement production is presented considering the additives used for the mixture with clinker and consequently cement production for the year 2021.

Table 47 Balance for crude production

Annual quantity
Raw material Dosage
(tonnes/year)
Limestone 333,647 73.1%
Others 122,974 26.9%
Crude 456,621 100%

Crude is fed to the vertical kiln. The production of 0.57 tons of clinker requires one ton of crude.

Table 48 Balance for cement production.

Annual quantity
Raw Material Dosage
(tonnes/year)
Clinker 261,864 77%
Additions 76,098 23%
Cement 337,962 100%

14.6. Process losses

Losses in the cement production process associated with the raw material (limestone) are 1.45%.

14.7. Water consumption

Water is mainly used for cooling in the milling processes and for the pelletizing process of the crude before it enters the vertical kilns. It is also used for watering green areas and
accesses and restrooms.

14.8. Fosil fuel consumption

The cement production process consumes liquid fuels for heavy equipment within the operation. Biomass is used as energy in the raw material drying process.

Table 49 Fuel consumption in Rioja plant

Fuel Consumption Description

(tonnes/year)
Diesel 381 P.Cal 9840 Kcal/kg

14.9. Electric power consumption

The Rioja plant has an electrical substation with a capacity of 12MVA, which uses electrical energy supplied from the national grid.

14.10. Maintenance Plan

Cementos Selva S.A. has implemented a preventive and corrective maintenance plan to prevent interruptions to the cement production process. Cementos Selva S.A. maintains operating
efficiency to control costs and operating margins. Cementos Selva S.A. has initiatives to diversify energy sources and secure supply when possible. The equipment is in good condition
and operational.

14.11. Staff

Cementos Selva S.A. personnel develop its operations at the Rioja plant with its staff and contractors.

55
15. Infrastructure

15.1. Tioyacu quarry

The Tioyacu quarry uses the infrastructure of the Rioja plant, such as administrative offices, workshops, utilities and other services. The quarry is located adjacent to the cement plant.

Explosive storage: Given the proximity of a military fort, the explosive storage is located inside the military for and is very well guarded. Cementos Selva S.A. has to retrieve explosives
every time it needs to blast in the quarry.

15.2. Rioja Plant

The use of electrical energy is required; there is a high voltage electrical energy supply system of 60 Kv, 60 Hz transmission for the industrial facilities of Cementos Selva S.A.

There is a derivation from the 60 kV Rioja - Nueva Cajamarca transmission line owned by Electro Oriente, which runs in front of CSSA’s facilities at a distance of 345.8 m.

On the other hand, the company has a license to use water for industrial purposes. The National Water Authority issued the Alto Mayo Local Water Administration (R.A. Nº 100-2010-
ANA-ALA ALTOMAYO).

16. Market Studies

Cementos Selva S.A is a subsidiary of Cementos Pacasmayo. Cementos Pacasmayo is a leading company in the cement production and other construction materials in the north of Peru.
This chapter describes the cement market, as well as the macro and microeconomic factors that define it.

For the description of the cement market in Peru, public information has been collected from different sources, such as the Central Reserve Bank of Peru (BCRP), National Institute of
Statistics and Informatics (INEI), Association of Cement Producers (ASOCEM), Ministry of Housing, Construction and Sanitation, Superintendence of Tax Administration and the
Peruvian Construction Chamber. In addition to this information, this chapter also relies on statistics provided by the company (CPSAA) to provide a better understanding of its specific
market.

16.1. The cement market in Peru

The Peruvian cement market is geographically segmented by regions: north, central and south. Diverse companies supply each region. Figure 13 is an illustration of the Peruvian map
and of its 3 regions, according to the segmentation of the cement market, where each region is the main area of influence of domestic cement companies

Figure 13 Segmentation of the cement market in Peru

The main companies that comprise the cement market in Peru are: Cementos Pacasmayo S.A.A., UNION Andina de Cementos S.A.A., Yura S.A. and Cementos Selva S.A.
Additionally, there are companies that import cement or clinker, such as Caliza Cemento Inca S.A., Distribuidora Cemento Nacional S.A.C., CEMEX Perú S.A., Cal & Cemento Sur
S.A., amongst others.

56
Table 50 shows the domestic cement shipments (in thousands of tonnes):

Table 50 Cement shipments at domestic level (in thousands of tonnes)

2019 2020 2021

National cement shipments 10,317.0 8,979.0 12,500.0
Overall cement shipments 2,613.7 2,581.4 3,625.2
(CPSAA/CSSA3 plants)
Rioja plant shipments 298.1 261.5 336.8

Sources: ASOCEM, CPSAA/CSSA

The types of cement produced by the main cement companies in the country are Type I, Type V, Type ICO, Type IL, Type GU, Type MS (MH), Type HS, Type HE, Type MH.

It is important to mention that, according to the main requirement standards, Peruvian Technical Standards, cements are divided into five types:

● NTP 334. 009 2013. Cements Portland. Requirement. (ASTM C 150).

● NTP 334. 090 2013. Cements Portland Added. Requirements. (ASTM C595).

● NTP 334. 082 2011. Cements Portland. Performance Specification. (ASTM C1157).

● NTP 334. 050 2004. Cements Portland White. Requirements. (ASTM C150).

● NTP 334. 069 2007. Building Cements. Requirements. (ASTM C091).

For Cementos Selva’s cement products, only the first 3 NTP standards apply.

16.2. Industry and Macroeconomic Analysis

Producers and trading companies of cement compete mainly within the limits of their area of influence, which is determined by the geographical location of their plants, giving rise to
segmentation of the national market. However, the northern region presents a high demand potential because of the infrastructure gap, the housing deficit and a higher capillarity in
terms of important cities adjacent to one another and with an urbanization level lower than in the central and southern region. On the other hand, it is important to note the importance of
transportation in the structure of cement costs, which are composed primarily of raw materials, fuels and transportion.

57
The cement market and industry in Peru have the following characteristics:

● Base of consumers highly segmented, informal and of low resources.

● Low costs of energy and raw materials.

● Zone of influence / distribution determined by geographical location of the plant.

● High correlation between public and private investment, and self-construction.

The construction sector and cement industry have a behavior directly related to the Gross Domestic Product (GDP) and Private Consumption. Figure 14 shows how the GDP of the
construction sector (monthly variation %) tracks the cyclic behavior of the Global GDP (monthly variation %), showing variations of lower significance than those of the Global GDP,
but in the same direction. It is also noted that, in May 2020, the GDP of the construction sector had a positive variation of more than 200% (compared to the previous month), whilst
Global GDP went up only 10%. This was due to the reactivation of economic activity and consumption once the confinement measures given by the Government to counter the Covid-
19 pandemic were loosened. This reactivation was motivated primarily by private-construction sector consumption. In the face of the uncertainty caused by the health and economic
crisis in 2020, consumers showed savings behaviors, which meant that people preferred consumption of goods for home improvement, amongst them, cement. This trend was maintained
throughout 2021, even after a higher uncertainty caused by the elections and its results, and this was reflected in sustained growth rates of internal consumption of cement related
primarily to self-construction.

Figure 14 Construction sector GDP variation

Source: INEI 2021

The cement industry is also motivated by housing sector growth, public and private investment in infrastructure, mining projects, shopping centers, construction of transportation
systems, etc. Thus, one of the variables with more impact on cement industry and future demand is the infrastructure gap which remains high in the country. For the 2016 – 2025 period,
the infrastructure gap is estimated to be US$ 160 billion and this is present in the main economic sectors and services of public supply, that is: Transportation (36%), Energy (19%),
Telecommunications (17%), Health (12%), Sewage System (8%), Irrigation (5%) and Education (3%). The 90% of the roads not included in the large national road network still remain
without pavement. Only 40% of schools have access to basic services such as water, electricity and sewage system. There are only 15 hospital beds for every 10,000 individuals
compared to 27 beds recommended by the WHO.

58
It is estimated that public investment grew 10% in 2021 and will grow 5% in 2022, as a result of the higher expenditure in reconstruction works under the Government-to-Government
Agreement with the United Kingdom, as well as Special Projects of Public Investments and the projects within the frame of the National Plan of Infrastructure for Competitivity (NPIC).
The Government´s reconstruction plan that it is implementing is expected to have a significant impact on cement sales in the northern region because most of the budget is targeted at
that area.

16.3. The North Region Market

Cementos Pacasmayo, a leading company in the production and sales of cement in the North Region, has market presence in the following cities: Cajamarca, Chiclayo, Chimbote, Jaén,
Pacasmayo, Piura, Rioja, Tarapoto, Trujillo, Tumbes, Yurimaguas and Iquitos. The company has a Market share of over 90% in the northern region of the country.

Cementos Selva S.A.’s overall shipments from the Rioja plant were 336,838 tonnes. It supplied 8% of the country’s North Region cement demand, and its cement sales represented 9.3%
of the Company’s overall shipments.

Other companies with lower presence in the cement market of the North Region are:

● Wang Peng

● Quisqueya - Cemex

● Cemento Nacional

● Cemento Inka

● Cemento Tayka

● Cementos Patrón

These companies are competitiors of the Rioja plant.

Cementos Selva S.A.’s Rioja plant produces different types of cement and it has placed in the National Market different trademark products to meet the needs of diverse segments of the
market. Table 51 shows the products in Rioja plant.

Table 51 Types of products of Rioja plant

Cement type Use Comment

Cemento Portland
The average result of resistance to compression is
Cement Type I Cement of general use. higher than the minimum requirement set forth in the
technical standard NTP 334.009 / ASTM C150.
Cemento Portland with additives
Ideal for the execution of structural Works, repairs, remodelings
The average result of resistance to compression is
home applications, floors, leveling, grouts, tips, prefabricated
Cement Extra Forte higher than the minimum requirement set forth in
elements of small and medium size and concrete elements which
technical standard NTP 334.090.
require special characteristics.
Hydraulic Cements specified by performance

For structures in contact with environement and humid and salty

Mochica GU Line soils.

Amazonico GULine Cement for general purpose.

59
16.4. Cement price

The sale prices of cement in the Peruvian market vary pursuant to their type and their geographical location. The price difference between each type is explained primarily by the
dosifications of raw materials and additives, whilst the variations for geographical location are caused by the freights for the distribution to the points of sale.

At domestic level, the cement price in 2020 was, on average, 541.18 S/ x t. Figure 15 shows the historic prices of cement in Peru.

Figure 15 Historic prices of cement in Peru

Source: Ministerio de Vivienda, Construcción y Saneamiento (November 2020).

Figure 15 shows that the price grew at a sustained rate of more than 4% per year, from 2015 until 2018, and subsequently it fell slightly in 2019 to climb again in 2020. The compound
annual growth rate for the 2014 – 2020 period is 3.01%, which is consistent with the annual inflation rate of the target range of the Central Reserve Bank of Peru.

16.5. Current and future demand

Cement demand at the national level is met by local shipments (local production), for the most part, and by imports. In 2021, 12.50 M tonnes were shipped locally, 40% more than in the
same period of 2020 (9.0 M). Imports amounted to 0.88 M tonnes during 2021, 23% above the 2020 figure (0.72 M). Thus, cement demand in 2021 is estimated at 13.38 M tonnes.
Figure 16 shows the evolution of national cement demand, expressed in thousands of tonnes, since 2016:

Figure 16 Evolution of the national demand of cement

Source: ASOCEM

It is noted that domestic demand has been growing, on average, at a rate of 3% per year, with the exception of 2020, which is considered an atypical year due to the adverse effects of the
pandemic and the confinement measures, to then take a historic leap in 2021 with an annual increase of 38%.

According to our internal information, in terms of regional distribution, the Northern Region accounts for approximately 28% of domestic cement demand, the Central Region for 50%,
and the Southern Region for 22%.

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Cementos Pacasmayo’s cement shipments reached 3,625.2 thousand tonnes in 2021 (Included Cementos Selva S.A.), capturing a 26.5% share of total shipments in Peru and 90% in the
Northern Region. This is 40.4% more than in 2020 (2,581.4 thousand tonnes). This increase in shipments took place in a context of economic recovery, despite the Covid-19 pandemic
and political instability.It is explained by the high growth rates of domestic cement consumption that have been registered since mid-2020, due to the self-construction sector and the
high execution of investment projects.

It is expected that the positive trend remains in the internal cement consumption, at domestic level and in the northern region, driven by the growth of the Peruvian economy, which is
recovering at a higher rate than other countries of the region, the private-construction sector which is still one of the main driving forces of cement demand, and the Government´s
reconstruction plan for damages caused by El Niño, which is being executed through an agreement between the Peruvian and the British governments. This will have a positive impact
on Cementos Pacasmayo’s cement shipments, because most of the budget is concentrated in the company´s influence zone.

Table 52 shows the projection of future demand or cement shipments for Cementos Selva S.A (Rioja plant). These projections are based on the 2022 estimated shipments, and a
sustained growth of 2.0% per year until maximum cement production capacity is reached:

Table 52 Forecast of future demand for Rioja cement plant

Variation
Year
Cement Shipments (Tonnes) (%)
2022P 352,678
2023P 359,731 2.0%
2024P 366,926 2.0%
2025P 374,265 2.0%
2026P 381,750 2.0%
2027P 389,385 2.0%
2028P 397,173 2.0%
2029P 405,116 2.0%
2030P 413,218 2.0%
2031P 421,483 2.0%
2032P 429,912 2.0%
2033P 431,200 0.3%
2034P 431,200 0.0%
2035P 431,200 0.0%
2036P 431,200 0.0%
2037P 431,200 0.0%
2038P 431,200 0.0%
2039P 431,200 0.0%
2040P 431,200 0.0%
2041P 431,200 0.0%
2042P 431,200 0.0%
2043P 431,200 0.0%
2044P 431,200 0.0%
2045P 431,200 0.0%
2046P 431,200 0.0%
2047P 431,200 0.0%
2048P 304,233 -29.4%

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17. Environmental studies, permitting, and plans, negotiations, or agreements with local individuals or groups.

17.1. Environmental Aspects

Cementos Pacasmayo has Corporate Policies that apply to the operations of quarries and cement plants. Relevant policies include Safety Occupational Health Policy, Quality Policy, and
Environmental Policy.

Cementos Selva S.A. has the Environmental Impact Study entitled “Expansion of exploitation of the Tioyacu quarry” approved by Directorial Resolution No. 186-2014-
PRODUCE/DVMYPE-I/DIGGAM dated August 20, 2014.

17.1.1. Tioyacu quarry

On July 07, 2000, through Oficio N° 529- 2000-MITINCI-VMI-DNI-DAAM, the first Environmental Impact Assessment (EIA) was approved.

On August 24, 2014, through Directorial Resolution No. 186-2014-PRODUCE/DVMYPE-I/DIGGAM, the authority approved the Environmental Impact Assessment (EIA) of the
“Exploitation Expansion of the Tioyacu Quarry” within the non-metallic mining concession “Calizas Tioyacu.”

In 2021, CSSA carried out environmental monitoring through the Analytical Laboratory - ALAB, a Peruvian company with double accreditation by the International Accreditation
Service (IAS) and the National Institute of Quality (INACAL), both signatories of the ILAC-MRA International Mutual Recognition Agreement.

ALAB was in charge of collecting and analyzing the samples, and submitting the results through reports to the Environmental Evaluation Agency - OEFA, the Peruvian State institution
in charge of reviewing and validating the information submitted by the owner. At the Tioyacu quarry, the following parameters were measured every six months: air quality and
particulate matter in the air.The results obtained in the year 2021 are below the Environmental Quality Standard (EQS) limit, complying with the requirements of the (ECA) and the
provisions of Supreme Decree No. 003-2017-MINAM.

The results obtained from the environmental noise measurement activities in 2021 are below the Environmental Quality Standard Limit (ECA) in compliance with the provisions of
Supreme Decree N°085-2003-PCM.

Biological and hydrobiological monitoring in the indirect influence of the Tioyacu quarry aimed to characterize the Vegetation, Herpetofauna, Avifauna, and Mastofauna. The results
showed an abundance in the avifauna, species, typical in this type of vegetation where the forest predominates.

Cementos Selva S.A. complies with Peruvian legislation on Closure Plans. Under current legislation is the Regulation of Environmental Management of the Manufacturing Industry and
Domestic Trade, Supreme Decree No. 017-2015-PRODUCE.This rule establishes the environmental management procedures covered by Ministerial Resolution No. 157-2011-MINAM
for investment projects subject to the National System of Environmental Impact Assessment (SEIA).

Law No. 28090 and its Regulation approved by Supreme Decree No. 033-2005-EM establishes the closure measures for non-metallic quarries. Directorial Resolution No. 178-2016-
MEM-DGAAM approved the Closure Plan for the Tioyacu quarry mining unit.

About water management, it is essential to mention that Tioyacu quarry does not have any discharges. The small water consumption is only for green area irrigation and road
maintenance.

It is important to mention that the approval of the Mine Closure Plan involves the constitution of guarantees to ensure that the owner of the mining activity complies with the obligations
derived from the Mine Closure Plan, in accordance with environmental protection regulations.

The Closure Plan submitted by Cementos Selva S.A. has included the necessary measures to ensure effectiveness or consistency with the requirements necessary for the protection of
public health and the environment. The initial strategy has continued with the Closure of the components of Tioyacu quarry mining unit, establishing temporary, progressive, final and
post-Closure activities at the end and/or closure of operations.

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Environmental closure activities have included physical stability in the mine, geochemical stability, water management facilities, dismantling for the removal of equipment and
machinery. Also infrastructure demolition, reclamation, waste disposal, landform establishment, habitat rehabilitation, revegetation and social programs.

Post-closure activities such as physical maintenance, geochemical maintenance, hydrological maintenance, and biological maintenance will be carried out, and post-closure monitoring
activities include physical stability monitoring, geochemical stability monitoring, water management monitoring, biological monitoring, and social monitoring.

Considering that the land use before mining production was a secondary forest which was affected by other activities, forestation activities with native species have been considered part
of the post-closure activities. Likewise, CSSA will fulfill the commitments included in the Closure Plan approved by the above authority.

We have a solid relationship with our communities and we have identified its main needs in health, education, urban development and local development.

We have a social investment program which contributes to dealing with their needs, based on good dialog and our compliance to our commitments to our communities.

The communities are high priority stakeholders. For this reason, we promote periodic meetings with their representatives and we create opportunities for dialog to know their
expectations. Also, we have established public and private alliances for development projects and programs to contribute to a better quality of life and to strengthen our relationship.
During 2021, we worked in alliance with the district governments of Elias Soplin Vargas. CSSA had been limited in meeting face-to-face with stakeholders in 2021, due to the COVID
19 pandemic.

17.1.2. Rioja plant

On August 25, 2000, according to the official letter N° 747-2000-MITINCI-VMI-DNI-DAAM, the Preliminary Environmental Diagnosis (DAP) was approved.

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On January 8, 2002, the Environmental Management Program (PAMA) was approved by official letter No. 0028-2002-MITINCI-VMI-DNI-DAAM.

On March 31, 2009, by official letter N° 02228-2009-PRODUCE/DVMYPEI/DGI-DAAI, the Environmental Impact Statement (EIS) was approved.

On May 31, 2012, using official communication N° 3742-2012-PRODUCE/DVMYPE-I/DGI-DAAI, the Environmental Impact Assessment (EIA) “Expansion of the Production Plant”
was approved, in compliance with the provisions of D.S. N° 019-97-ITINCI.

On October 28, 2015, according to Article 11 of D.S. N° 019-97-ITINCI and Directorial Resolution N° 489-2015-PRODUCE/DVMYPE-I/DIGGAM, the Previous Qualification (CP)
for a “Raw Materials Warehouse outside the Cement Manufacturing Plant” was approved.

About water management, it is essential to mention that Rioja plant does not have any discharges. The small water consumption is only for green area irrigation.

Considering that the land use before cement production was a secondary forest which was affected by other activities, forestation activities with native species have been considered part
of the post-closure activities.

Finally, in accordance with environmental regulations and according to the Regulation of Environmental Management of the Manufacturing Industry and Domestic Trade, Supreme
Decree N° 017-2015-PRODUCE, companies that produce cement are required to submit Closure Plans when executing Decommissioning activities. To meet that requirement, Cementos
Selva in compliance with Peruvian legislation will submit the Closure Plan in a timely manner.

17.2. Solid waste disposal

Cementos Selva S.A. has a Solid Waste Minimization and Disposal Plan for our production activities at the Rioja plant and Tioyacu quarry. Annually, our company declares the
generation, storage, collection, and final disposal of hazardous and non-hazardous solid waste in compliance with environmental legislation.

In our solid waste minimization plan for 2021, we declared 0.37 tons of hazardous waste and 10.90 tons of non-hazardous waste for the Tioyacu quarry. Likewise, for the Rioja plant we
declared 19.60 tons of hazardous waste and 998.90 tons of non-hazardous waste, which were disposed of in accordance with environmental legislation.

17.3. Qualified Person’s Opinion

Cementos Selva S.A. complies with national environmental standards in the industrial sector and to the International Standard Industrial Classification - ISIC 2694 for the non-metallic
production of the limestone material for the manufacture of cement.

For the industrial and mining sector, the company specifically complies with the Environmental Management Regulations for the Manufacturing Industry and Domestic Trade, Supreme
Decree No. 017-2015-PRODUCE, which is the rule that regulates the environmental management of the activities indicated in Ministerial Resolution No. 157-2011-MINAM and
investment projects subject to the National System of Environmental Impact Assessment (SEIA), considered in Annex II of the Regulations of Law No. 27446, approved by Supreme
Decree No. 019-2009-MINAM.

The company reports the environmental commitments, semiannually and quarterly to the Environmental Evaluation Agency - OEFA. The monitoring is carried out through external
laboratories that provide comprehensive monitoring and analysis services and have double accreditation, by the international IAS (International Accreditation Service) and the national
INACAL (National Institute of Quality), both signatories of the ILAC-MRA international Mutual Recognition Agreement.

Cementos Selva S.A. strictly complies with the protocols in the different processes in compliance with environmental legislation and reporting to the OEFA.

The qualified persons believe Cementos Pacasmayo’s current plans and practices are adequate to address any issues related to environmental compliance, permitting, and local
individuals or groups.

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18. Capital and operations costs

18.1. Basis for operating and capital costs for the quarry and plant

In a tabular manner, this section presents the operating costs of Tioyacu quarry for the production of limestone - the primary raw material used for cement production at the Rioja plant.
It also exhibits the plant’s operating costs, for the whole industrial process; from the reception of raw material, to its conversion to the final product (cement). Cost forecast is mainly
based on actual historical costs.

Similarly, this section reports the detail of the capital investments made in the quarry and plant, and the forecasted investment plan required to sustain all the activities in the quarry and
plant and to assure the supply of limestone Reserves necessary to achieve the production levels according to the forecasted cement shipments of the Rioja plant.

Table 53 depicts the main components of the cost structure of Tioyacu quarry and Rioja plant and the sources used in their forecasts:

Table 53 Concepts about cost structure of Tioyacu quarry and Rioja plant

Concept Description Source

Quarry Operating Cost Mineral Extraction /Exploitation, Processing, Fuel, Materials (Explosives), ● Real, historic costs
Maintenance, Insurance and Services ● Suppliers´ quotes
Quarry Operating Cost Royalties ● Contract of mining royalty payment with
regional/state entities
Quarry Operating Cost Energy ● Historic, real costs
● Supply Contract
● Suppliers’ quote
Plant Operating Cost Fuel, Materials, Maintenance, Wages and Insurance ● Historic, real costs
● Suppliers’ quote
Plant Operating Cost Energy ● Historic, real costs
● Supply Contract
● Suppliers’ quote

Considering that the Tioyacu quarry and the Rioja plant are in operation, the historical costs are the principal basis for estimating forecasted costs.

In this sense, the actual costs in some cases are maintained, and in other cases, are appropriately adjusted for factors specific to the quarry operation, conditions, and obligations
stipulated in supply and concession contracts.

On the other hand, macroeconomic factors such as inflation and devaluation of the local currency against the US dollar could indirectly impact future operating costs estimation.

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18.2. Capital and Operating Cost Estimates

Table 54 details the operating costs of quarry and plant for the year 2021, and 27 years of forecast:

Table 54 Operating costs forecast of quarry and plant

Table 54 shows the projection for the next 27 years, according to the production plan for 27 years of Reserves. Costs are adjusted annually by applying a 2.65% inflation rate.

Costs described in this chapter are applied to estimate the Mineral Resources and Reserves of the Tioyacu quarry as part of the analysis.

Table 55 shows the detail of capital investments in the quarry and plant, by type of investment, for one year of historical result (2021), and 27 years of projection:

Table 55 Investment forecast in quarry and plant

In recent years, there have been no significant variations in capital investment, which correspond mainly to maintenance and replacement of equipment in the quarry and plant to sustain
operations. The Company´s investment plan does not consider any unusual or expansion activity. It is solely planned to perform the necessary replacement for the quarry support and the
maintenance of operations in the plant. The investments are kept at levels similar to those registered throughout the last few years.

18.3. Capital and Operating Cost Estimation Risks

There is a low risk associated with capital and production costs because mine production and cement plant operation will continue in the same geological deposit and using the same
mining and industrial methods.

An assessment of the accuracy of estimation methods is reflected in the sensitivity analysis in Section 19.

For purposes of the Preliminary Feasibility Study completed relative to the Tioyacu quarry and Rioja plant, capital and operating costs are estimated to an accuracy of +/- 25% with a
contingency of 5%.

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19. Economic Analysis

19.1. Methodology: Discounted Cash Flow (Free)

The Economic Analysis chapter describes the assumptions, parameters and methodology used to demonstrate the economic viability or profitability of extracting the mineral Reserves.
That is, the pre-feasibility level support for the determination of mineral Resources and Reserves, by means of a business valuation through the Discounted (Free or Economic) Cash
Flow method.

The horizon of the cash flow projection is consistent with the life of the quarry, which is calculated based on the total declared Reserves and the annual production at the quarry. Each
period’s cash flow is approximated indirectly from the EBITDA (the latter is constructed in the Profit and Loss Statement), and the corresponding adjustments are made for taxes and
capital costs (CapEx).

Finally, for this economic analysis we use the free cash flow, since it does not incorporate the company’s capital structure, and we apply the weighted average cost of capital (WACC)
for discounting said future cash flows.

19.2. Assumptions

19.2.1. General and Macroeconomic Assumptions

The general and macroeconomic assumptions used for the projection of economic cash flows and the valuation are:

● Projection horizon: 27 years (2022 to 2048) according to the estimated years of quarry life.

● The annual escalatioin rate; 2.65%, applies equally to the sales price, costs, and expenses.

● Capital cost projections were determined using a historical ratio of annual investments and maintenance costs, which also considers the increase in production volume.

● The company’s financing structure is being considered in the discount rate (WACC), which is 9.87%, not in the cash flows.

● Income tax rate: effective rate of actual (historical) business results, 31.0% - 32.0%.

● Workers’ Profit Sharing: 10%.

● Exchange rate: exchange rate is assumed to remain at 4.00 (USD/PEN).

19.2.2. Income and Cost Assumptions

● The sales price of cement, expressed as S/ x t, is the sales price of the Rioja plant to Dino Selva Iquitos, Rioja plant; which is lower than the sales price to the final customer in
the market. The distribution freight explains this difference to the multiple points of sale and the selling expenses associated with distribution and promotion in the different
commercial channels.

● The base price used in the projection is an estimate for the year 2022 (471.6 S/ x t), which has been determined based on current market conditions and cement demand for
2022, among other factors.

● Starting in 2023 (year 2 of the projection), a price escalation is applied at an annual escalation rate of 2.65%.

● The cost of cement production, expressed as S/ x t, has been estimated for 2022 based on actual operating expenses, the market situation of local materials and services, plant
demand for imported clinker, and other factors. The cost of production for year 2022 is 312.4 S/ x t.

● Starting in 2023, a cost escalation is applied following the annual inflation rate of 2.65%.

● The volume of cement shipments grows at an annual rate of 2.0% until the maximum plant capacity is reached, which is adjusted slightly for a safety factor.

● The initial stock of products in the quarry and plant is assumed to be zero.

19.3. Financial Model Results

The following financial parameters were calculated:

● NPV of 378.5 million soles at a discount rate of 9.87%.

● 27-year mine life.

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 ● Average plant throughput of 0.42 million tonnes per year over the 27-year projection.

● Average sales price of 676.4 soles per ton of cement, on average for the 27-year projection, at nominal values.

● Revenues of 278.7 million soles, on average for the 27-year projection.

● Average cash production cost of 469.5 soles per ton of cement, on average for the 27-year projection, at nominal values.

Table 56 shows the forecasted Profit and Loss Statement for the Tioyacu quarry and Rioja plant operation:

Table 56 Profit and Loss Statement

Cement sales at Rioja plant are, on average, S/ 278 million per year (for the period 2022-2048), and the average EBITDA margin for the same period is 26.23%. Due to the increase in
cement shipments, the installed capacity of clinker is exceeded, and it is necessary to start importing from the year 2024. The need for imported clinker increases gradually until 2033
when the maximum capacity for cement production is reached, which causes the average EBITDA margin to fall slightly to 23.91% from 2033.

Table 57 shows the Free Cash Flow projection and the valuation of the cement business of Rioja plant:

Table 57 Free Cash Flow and valuation

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The net present value (NPV) of Rioja plant cement business amounts to almost S/ 378 million and it is made up of the sum of the discounted cash flows of each period, for the 27-year
projection.

For the discount of the cash flows,the weighted average cost of capital of the company (WACC for its acronym in English) was applied.

19.4. Sensitivity Analysis

The sensitivity analysis considers a variation of +/- 5 and 10% in the variables that have the greatest impact on the NPV and EBITDA. These variables are the cement sales price,
operating cost and CapEx.

Tables 58 and 59 detail the sensitivity of the NPV and EBITDA to each variable, respectively, when the variables are varied independently. Figures 17 and 18 show the results of the
sensitivity of NPV and EBITDA, respectively, to the three variables:

Table 58 Sensitivity analysis of the Net Present Value

Variable / Variation -10% -5% 0% +5% +10%

Price -35.7% -17.9% 0.0% 17.9% 35.7%
Cost 26.3% 13.1% 0.0% -13.1% -26.3%
CapEx 1.3% 0.7% 0.0% -0.7% -1.3%

Table 59 Sensitivity analysis of the EBITDA

Variable / Variation -10% -5% 0% +5% +10%

Price -35.3% -17.7% 0.0% 17.7% 35.3%
Cost 26.6% 13.3% 0.0% -13.3% -26.6%
CapEx -0.1% 0.0% 0.0% 0.0% 0.1%

Figure 17 Sensitivity of Net Present Value

Figure 18 Sensitivity of EBITDA

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Based on these results, the NPV is most sensitive to cement price, followed by operating cost, and least susceptible to the CapEx. EBITDA has a similar sensitivity to NPV, being most
exposed to cement price, followed by operating cost, but shows no sensitivity towards variations to the CapEx.

20. Adjacent properties

The information in this chapter was obtained from the competent authority: Instituto Geológico, Minero Metalúrgico (INGEMMET). The only public information obtained is shown in
the Figure below.

To the north of the Cementos Selva S.A. concession is the Rioja 2 concession owned by Cementos Selva S.A.; to the east of the mining concession is the Rioja 4 concession owned by
Cementos Selva S.A., and to the southwest is the Rioja 3 concession owned by Cementos Selva S.A.

Figure 19 Concession Calizas Tioyacu and adjacent concessions.

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21. Other relevant data and information

Not applicable.

22. Interpretation and conclusions

● From a legal point of view, Cementos Selva S.A. has the ownership of the mining properties for the exploration, development and production of limestone to supply the cement
plants for normal production during the life of the quarry.

● Cementos Selva S.A. has been complying with international ISO-9001 standards since 2015 and has implemented Quality Assurance and Quality Control (QAQC). The
controls are applied for the construction of the Geological Model, Resource estimation and Reserves estimation.

● Cementos Selva S.A. has a quality assurance system in its operations that includes sample preparation methods, procedures, analysis and security, which comply with the best
practices in the industry.

● The information verification and validation processes are carried out following the procedures indicated in the information flows. The validated information is congruent with
the one that generated the geological models, which is the fundamental basis for the estimation of Resources.

● The geological modeling of the limestone deposit is consistent with the relationship between the information and the geological model.

● The Reserves estimation considers the risk factors and modifying factors. The main variable is the CaO content which is very stable in the deposit. There are other secondary
variables that determine the quality of the Reserves.

● In the process of estimating Reserves and in the production plans of the quarry these variables have been adequately considered in the mining plan, properly sequenced, and
with blending processes. There are sufficient proven and probable Reserves for the next 27 years.

● Table 60 shows the Mineral Resources of the Tioyacu quarry and categories. Likewise, the Mineral Reserves are shown in Table 61 and categories.

Table 60 Mineral Resources (exclusice of Reserves) of Tioyacu quarry

Tonnes
Resources CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
M
Measured 0 0 0 0 0 0
Indicated 0 0 0 0 0 0
Limestone
Measured + Indicated 0 0 0 0 0 0
Inferred 19.19 45.61 0.36 6.58 2.52 0.14

* No economic evaluation was performed for the Tioyacu quarry because it only has inferred resources.

Table 61 Mineral Reserves of Tioyacu quarry

Tonnes
Reserves CaO (%) Al2O3 (%) MgO (%) SiO2 (%) K2O (%)
M
Proven 6.55 50.30 0.58 1.13 5.46 0.21
Limestone Probable 4.84 47.29 0.64 3.33 5.95 0.19
Total 11.39 49.03 0.61 2.06 5.67 0.20

● The cement plant located in Rioja has equipment and facilities available for cement production, using limestone from the Tioyacu quarry and other necessary materials.

● The Health, Safety and Environment unit is in charge of supervising and ensuring compliance with the Company’s corporate policies and the various legal requirements of the
national regulatory bodies by all company departments.

● Through its Social Responsibility unit, Cementos Selva S.A. has built relationships of trust with the communities surrounding its operations, identifying their primary needs in
health, education, urban development, and local development.

● In 2021, due to COVID 19 pandemic, CSSA had been limited in face-to-face meetings with stakeholders but that did not affect their good relationship.

● Infrastructure-wise, the operation in Tioyacu quarry and Rioja plant, in relation to infrastructure, is technically and economically feasible due to the life of the quarry.

● The sensitivity analysis shows that the operation is economically robust.

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23. Recommendations

● Maintain the QAQC program for exploration, development and production activities associated with cement production.

● Include QAQC plans and density control for the subsequent diamond drilling campaigns.

● Maintain a permanent monitoring of the installed piezometers both for water levels and water quality, to evaluate the evolution of levels during the production of the Tioyacu
quarry.

● It is recommended that a geophysical study using the Georadar method to identify karst cavities within the quarry area be conducted, especially in areas of structural anomalies.

● Geosym Consultores S.A.C., recommends that Cementos Selva S.A.adopt the angles for the planning and design of the Tioyacu quarry, as shown in Table 19, based on the
stability analyses.

● It is recommended that monitoring points be placed in new areas of the quarry and that current monitoring points be updated.

● It is recommended that new diamond drilling campaigns be conducted to reduce the uncertainty of the current Reserves and help recategorize the existing Inferred Resources.

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24. References

Environmental Hygiene & Safety S.R.L. (2104). “Almacen de Materias Primas en Exteriores de Planta de Fabricación de Cementos – Rioja”.

GEOSYM CONSULTORES S.A.C (2016). Estudio Geológico, Geotécnico, Hidrológicos e Hidrogeológicos de La Cantera “Tioyacu” – Volumen I: Estudio Geológico.

GEOSYM CONSULTORES S.A.C (2016). Estudio Geológico, Geotécnico, Hidrológicos e Hidrogeológicos de La Cantera “Tioyacu” – Volumen II: Estudio Hidrogeológico.

GEOSYM CONSULTORES S.A.C (2016). Estudio Geológico, Geotécnico, Hidrológicos e Hidrogeológicos de La Cantera “Tioyacu” – Volumen III: Estudio Geotécnico.

GEOSYM CONSULTORES S.A.C (2016). Estudio Geológico, Geotécnico, Hidrológicos e Hidrogeológicos de La Cantera “Tioyacu” – Volumen IV: Estudio Hidrológico.

Instituto Geológico, Minero y Metalúrgico. (2021). Resumen del Derecho Minero Calizas Tioyacu.

MINCONSULT S.R.Ltda, (2012). Plan de Minado.

Ministerio de Industria, Turismo, Integración y Negociaciones Comerciales Internacionales. (2000). Oficio N° 747 – 2000-MITINCI-VMI-DNI-DAAM.

Ministerio de Industria, Turismo, Integración y Negociaciones Comerciales Internacionales. (2000). Oficio N° 529 – 2000-MITINCI-VMI-DNI-DAAM.

Ministerio de la Producción. (2012). Oficio N° 3742-2012-PRODUCE/DVMYPE-I/DGI-DAAI

Ministerio de la Producción. (2014). Resolución Directatoral N° 186-2014 PRODUCE/DVMYPE-I/DIGGAM.

Ministerio de la Producción. (2015). Resolución Directatoral N° 489-2015 PRODUCE/DVMYPE-I/DIGGAM.

SEGECO S.A. (1998). Estudio de Impacto Ambiental De La Cantera de Calizas “Tioyacu” de Cementos Selva S.A.

SEGECO S.A. (2011). Estudio de Impacto Ambiental “Ampliación de Producción Línea 3 – Cementos Selva”.

SEGECO S.A. (2012). Estudio de Impacto Ambiental “Ampliación de Explotación de la Cantera Tioyacu”.

Walsh Perú S.A. (2000). Diagnóstico Ambiental Preliminar (DAP) de la Planta Industrial Rioja.

Wiracocha Mining Services S.R.L (2021). QAQC de Sondajes Diamantinos Cantera Tioyacu 2021.

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25. Reliance on information provided by registrant

In preparing this report, the qualified persons relied upon data, written reports and statements provided by the registrant in accordance with 17 CFR § 229.1302(f). After careful review
of the information provided, the QPs have no reason to believe that any material facts have been withheld or misstated. Cementos Selva provided the information as summarized in
Table 62.

Table 62 List of Cementos Selva S.A. information.

Chapter Chapter name Information provided by CPSAA

Legal matters related to property rights and the authority “Instituto Geológico, Minero y
3 Property description
Metalúrgico INGEMMET”
16 Market studies Marketing information, CPSAA information, CSSA information, ASOCEM, INEI and BCRP
Environmental studies, permitting, and plans, negotiations, or
17 Community Relations and agreements with stakeholders
agreements with local individuals or groups
18 Capital and operating costs Historical data about cost, price and investments
19 Economic analysis Macroeconomic trends, data, and assumptions, and interest rates
Legal matters related to property rights and the authority “Instituto Geológico, Minero y
20 Adjacent properties
Metalúrgico “INGEMMET”

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