I. INTRODUCTION

1. South American Silver Limited, a company incorporated under the laws of the Bermuda Islands, ("South American Silver" or "Claimant"), hereby serves notice of the institution of an arbitration proceeding under the 20 1 0 Arbitration Rules of the United Nations Commission on International Trade Law (the "UNCITRAL Rules") against the Plurinational State of Bolivia ("Bolivia", "Respondent" or the "Government") pursuant to Article 8 of the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Bolivia for the Promotion and Protection of Investments (the "Treaty,,). l South American Silver has duly authorized the undersigned to institute and pursue arbitration proceedings on its behalf against Bolivia under the Treaty. 2

2. This dispute involves the expropriation of South American Silver's investments in the mining sector by Bolivia, specifically the taking of South American Silver's 100% interest in the mining concessions held by Compafiia Minera MaUro Khota S.A. ("CMMK,,)3 without the payment of just and effective compensation in violation of the Treaty and international law. This dispute arose on or before August 1 , 20 12, the date of Supreme Decree No. 1308 expropriating South American Silver's investments (the "Expropriation Decree,,). 4