Mr. Kevin McArthur reports

TAHOE RESOURCES REPORTS STRONG EARNINGS IN FIRST QUARTER 2016

Tahoe Resources Inc. is releasing its financial and operating results for the three months ending March 31, 2016, and providing a production update for operations in Guatemala, Peru and Canada. Financial and operating data for the company's Canadian operations, acquired on April 1, 2016, are not included in the first quarter 2016 results.

Highlights for the first quarter of 2016 include the following (all amounts in U.S. dollars unless otherwise stated):

• Adjusted net earnings (non-GAAP (generally accepted accounting principles) measure) for the quarter amounted to $35.5-million or 16 cents per share;
• Earnings and total comprehensive income were $37.8-million or 17 cents per share;
• Operating cash flow before changes in working capital was $69.3-million or 30 cents per share.
• Revenue totalled $132.1-million at total operating costs of $77.5-million, leading to mine operating earnings of $54.6-million.
• Silver production from Escobal amounted to 5.7 million ounces in concentrate.
• Gold production from La Arena and Shahuindo amounted to 46,576 and 7,590 ounces in dore, respectively.
• Sales totalled 4.6 million ounces silver, 50,598 ounces gold, 2,386 tonnes lead and 3,336 tonnes zinc.
• Total cash costs (non-GAAP measure) net of byproduct credits were $4.51 per silver ounce produced and $638 per gold ounce produced.
• All-in sustaining costs (AISC) (non-GAAP measure) net of byproduct credits were $5.97 per silver ounce produced and $825 per gold ounce produced.
• The company returned $13.7-million to shareholders through the monthly dividend.
• Cash and cash equivalents at quarter-end were $90.8-million.

Subsequent to the end of the first quarter, a number of key developments were achieved. On April 1, 2016, the company completed the acquisition of Lake Shore Gold Corp., a low-cost gold producer with operations and growth projects located in the Timmins gold camp of Northern Ontario, Canada. On May 3, 2016, plans were announced for a new development project in Timmins, the Bell Creek Shaft project, and for increased exploration drilling this year at a number of key targets in the area. Also on May 3, 2016, the company announced that construction and commissioning of the 10,000-tonne-per-day phase 1 Shahuindo gold mine operation had been completed, with commercial production being achieved effective May 1, 2016.

Kevin McArthur, executive chair and chief executive officer of Tahoe, commented: "We had a strong first quarter in 2016, with production levels very much in line with expectations, and total cash costs for both silver and gold averaging better than our target ranges for the year. Driven by low unit costs, we generated significant internal cash flow and solid earnings. We also continued to return capital to shareholders during the quarter, paying $13.7-million through our monthly dividend.

"Very importantly, we took steps to ensure the long-term financial and operating success of our company. In Peru, the commissioning of Shahuindo continued on schedule during the quarter, with commercial production being achieved on May 1, 2016. Our development team at Shahuindo has done an excellent job and we expect continued strong execution as we prepare for phase 2 of the project, which is targeted to bring total annual gold production in Peru to approximately 300,000 ounces.

"The acquisition of Lake Shore Gold on April 1 is a key development for our company, through which we have added 170,000 to 180,000 ounces of annual low-cost gold production, as well as quality growth projects, in Timmins, Ont. We are already moving ahead with plans to increase production at the Bell Creek mine in Timmins and to accelerate exploration drilling in the area. With the addition of Lake Shore Gold, as well as the continued advancement of Shahuindo, we are targeting growth in gold production from 174,000 ounces in 2015, to over 550,000 ounces by 2020. We also expect to add mine life at all of our operations, with a specific target of increasing mineral reserves and mineral resources in Canada by two to four million ounces over the next four years."

Escobal operations update

Average mill throughput at the Escobal mine was 4,264 tonnes per day with an average silver head grade of 524 grams per tonne (g/t), compared with average mill throughput of 3,724 tonnes per day with an average silver head grade of 500 g/t in the first quarter of 2015. The mine produced metal concentrates containing 5.7 million ounces of silver, 3,298 ounces of gold, 2,738 tonnes of lead and 4,224 tonnes of zinc during the first quarter of 2016, compared with 4.6 million ounces of silver, 2,542 ounces of gold, 2,258 tonnes of lead and 3,410 tonnes of zinc for the same period in 2015. The average silver recovery to concentrates was 87.1 per cent, versus 85.0 per cent in the first quarter of 2015.

During the first quarter of 2016, 5,474 dry metric tonnes of lead concentrate and 7,018 dry metric tonnes of zinc concentrate containing approximately 4.6 million payable ounces of silver were shipped and sold to third party smelters. Concentrate sales during the quarter generated $78.2-million in revenues at mine operating costs of $46.5-million, resulting in mine operating earnings of $31.7-million.

Total cash costs per ounce of silver produced in concentrate, net of byproduct credits, for the first quarter of 2016, averaged $4.51, compared with $7.10 per ounce in the first quarter of 2015. AISC per ounce of silver, net of byproduct credits, averaged $5.97 per ounce, versus $9.78 per ounce for the same period a year ago. Cost and productivity improvements in the mine and mill, coupled with favourable diesel fuel prices, continue to drive production costs lower.

  
               ESCOBAL UNIT COSTS 
                    ($/tonne)

                           2014    2015    First
                                         quarter
                                         of 2016

Mine operations          $42.76  $38.66   $34.91
Process operations       $31.20  $20.59   $18.38
Site general and
administrative (G&A)     $21.84  $19.86   $16.32
Total operating costs    $95.80  $79.11   $69.61

A total of 1,870 metres of development was completed during the first three months of 2016, with mining during the quarter concentrated on the Central zone. Production in the East zone commenced in April, 2016.

The new paste backfill plant was commissioned in March, 2016, and is fully operational. Installation of paste delivery lines to the East zone was completed during the first quarter.

La Arena operations update

A total of 3.6 million tonnes of ore at an average grade of 0.48 g/t was placed on the leach pad during the first quarter of 2016. Ore tonnes mined also totalled 3.6 million at a strip ratio of 2.30 tonnes of waste per tonne of ore mined.

There were 46,576 gold ounces produced in dore and 46,143 gold ounces sold during the first quarter of 2016.

Gold sales during the first quarter of 2016 generated $54.0-million in revenues at mine operating costs of $31.1-million, resulting in mine operating earnings of $22.9-million.

Total cash costs per ounce of gold produced, net of byproduct credits, averaged $638 in the first quarter of 2016, while AISC for the same period averaged $825 per ounce.

Sustaining capital projects advanced in the first quarter of 2016 included planned extensions of the leach pads and the waste dump. At the end of the quarter, these projects remained on schedule to meet 2016 production targets.

Shahuindo operations update

Construction and commissioning was completed on schedule with commercial production commencing effective May 1, 2016. Gold produced in dore during the first quarter of the year from precommercial production operations totalled 7,590 ounces. A total of 790,608 tonnes was placed on pads during the first quarter of 2016, at an average grade of 0.97 g/t gold. The strip ratio was 0.29 tonne of waste rock per tonne of ore mined.

Bulk heap leach tests and geologic mapping conducted in 2016 have resulted in the conclusion that the deposit contains a higher percentage of siltstone than originally estimated, and that dump leaching of blended siltstone and sandstone ores will not achieve acceptable metallurgical or geotechnical results for long-term operations. Design, procurement and construction of the crushing and agglomeration plant have begun and are expected to be completed in two phases. The first phase, with a capacity of 12,000 tonnes per day, is projected to be constructed and operational in the first quarter of 2017, with an additional 24,000 tonnes per day of capacity scheduled to be installed and operational by the second quarter of 2018. The estimated cost to complete the expansion to 36,000 tonnes per day by the end of the second quarter of 2018 remains in the range of $140-million to $160-million, including expansion capital spent during the first quarter of 2016. Compared with the feasibility study filed for Shahuindo in January of 2016, crushing and agglomeration are expected to begin one year earlier, which will increase operating costs and gold recovery in 2017. Minimal impact to project economics is anticipated relative to the feasibility study.

Canadian operations update

On April 1, 2016, the company completed the acquisition of Lake Shore Gold. In connection with the closing of the transaction, the company issued a total of 69,239,629 commons shares of Tahoe to the former shareholders of Lake Shore Gold and authorized the issuance of up to an additional 1,621,877 common shares issuable upon the exercise of the stock options held by former optionholders of Lake Shore Gold.

Financial and operating data from Lake Shore Gold are not included in Tahoe's first quarter 2016 results. During the first three months of 2016, the operating assets of Lake Shore Gold produced 36,800 ounces of gold by processing 305,900 tonnes at an average grade of 3.90 g/t. Other highlights during the first quarter included the release of an initial resource at the 144 Gap deposit, a new deposit identified approximately 700 metres from existing underground infrastructure at the Timmins West mine. The resource includes 1.7 million tonnes at an average gold grade of 5.41 g/t for 301,700 ounces of gold in the indicated category and 1.9 million tonnes at an average gold grade of 5.19 g/t for 319,200 ounces in the inferred category. Initial drill results were released at the Whitney project during the first quarter of 2016. Whitney is located adjacent to the Bell Creek complex and is a joint venture with Goldcorp Canada Ltd., with Tahoe being the operator. The initial drill results included high-grade intersections which extended the known mineralization around the historic Hallnor mine to the west, to the north and to depth. Over 30,000 metres of drilling is planned at Whitney in 2016, with the project being advanced using an open-pit model with the potential to transition to underground mining.

New capital programs approved

On May 3, 2016, the Tahoe board of directors approved the Bell Creek Shaft project, an initiative to recommission and deepen the historic shaft at the Bell Creek mine. The shaft currently extends to a depth of approximately 300 metres, and is used for secondary escape and ventilation. The shaft project, when complete, will extend the shaft to the 1,080-metre level elevation, and equip the shaft to hoist ore and waste. The benefit of deepening the shaft is to allow lower-cost production at higher production rates and accelerated delineation of the deep resources, as well as exploration at depth. The project is anticipated to cost approximately $80-million and is expected to be executed over the next 2.5 years.

The board of directors also approved additional spending to accelerate exploration and delineation of the 144 Gap area, Gold River and Whitney projects. The 2016 guidance remains unchanged, as the capital for the shaft project in 2016, and the additional exploration spending have been offset with other savings and do not result in spending outside of the ranges reflected in prior projections.

Treatment of Lake Shore convertible debentures

On April 1, 2016, as a result of the completion of Tahoe's acquisition of Lake Shore Gold, Lake Shore gave notice of its offer to purchase for cash all of its outstanding 6.25-per-cent convertible unsecured debentures at 100 per cent of the principal amount plus accrued and unpaid interest. The change of control offer expired on April 18, 2016, with no debentures tendered.

Concurrently with the change of control offer, Lake Shore Gold gave notice of its election to redeem the debentures on May 16, 2016, at a price equal to the principal amount plus accrued and unpaid interest. Tahoe and Lake Shore Gold have elected to satisfy the obligation to repay the principal amount of the debentures by issuing Tahoe shares to the holders of the debentures. The number of Tahoe shares to be issued will be determined by dividing the total principal amount of the outstanding debentures, which are to be redeemed by 95 per cent of the volume-weighted average trading price of Tahoe shares for the 20 trading days ending on and including May 9, 2016. The accrued and unpaid interest on the debentures will be paid in cash. Debentureholders maintain the right to convert the debentures at any time prior to 5 p.m. (Toronto time) on May 13, 2016, at a conversion price of $9.5433 (Canadian) per Tahoe share, being a conversion rate of 104.7856 Tahoe shares per $1,000 principal amount of the debentures. If all of the outstanding debentures are converted by debentureholders at this conversion price, a total of approximately 10,811,895 Tahoe shares will be issued on conversion.

2016 guidance

The company's revised guidance to reflect the acquisition of Lake Shore Gold was first reported in a press release dated April 4, 2016 and is provided below. The financial and operating results for Tahoe's Lake Shore Gold division are included in the company's consolidated results effective April 1, 2016.

                                      2016 GUIDANCE
2016 silver production                                            18 million ounces to 21 million ounces
2016 gold production                                                    370,000 ounces to 430,000 ounces
Total cash cost per silver ounce produced                             $7.50 per ounce to $8.50 per ounce
AISC per silver ounce produced                                            $10 per ounce to $11 per ounce
Total cash cost per gold ounce                                          $675 per ounce to $725 per ounce
AISC per gold ounce produced                                          $950 per ounce to $1,000 per ounce
Sustaining capital (including capitalized exploration)                      $115-million to $135-million
Project capital                                                              $80-million to $105-million
Exploration expense                                                           $15-million to $20-million
Corporate G&A (includes non-cash stock-based compensation)                    $45-million to $50-million

Guidance notes:

• A non-GAAP measure;
• Assumes the following metals prices:
  • $16 per ounce silver;
  • $1,300 per ounce gold;
  • $2,094 per tonne lead;
  • $2,094 per tonne zinc.
• Assumes payable byproduct metal production of 8,462 ounces gold, 8,117 tonnes lead, 10,266 tonnes zinc;
• Byproduct credits per ounce of silver: gold, 52 cents; lead, 82 cents; zinc, $1.02; total of $2.36;
• All per-ounce costs are based on silver ounces contained in concentrates (silver) and gold ounces in dore (gold);
• Gold production guidance is based on 12 months of production from La Arena, as well as the company's Canadian operations and eight months of production from Shahuindo.

Conference call

Tahoe's senior management will host a conference call to discuss the first quarter results on Wednesday, May 4, 2016, at 11 a.m. ET (8 a.m. PT). To join the call, please dial 1-800-319-4610 (toll-free from Canada and the United States) or 1-604-638-5340 (from outside Canada and the U.S.). A recording of the call will be available later in the day on the company's website.

Complete financial results, as well as the company's management discussion and analysis, and other filings, will be filed on SEDAR and the company's website.

Qualified person statement

Technical information in this news release has been approved by Charlie Muerhoff, vice-president, technical services, Tahoe Resources, a qualified person as defined by NI 43-101.

We seek Safe Harbor.