Operating Highlights

Drill Results Extend the Aurora Zone Strike Length to 1.6km; Build Confidence in Geological Continuity

During and subsequent to the end of the third quarter of 2022, the Company announced results from three holes at the Filo del Sol Project. Drillholes FSDH061, FSDH063, and FSDH067 successfully extended the strike length of the Aurora Zone by 180m to a total of 1.6km in the north-south direction, in addition to infilling certain areas of the Aurora Zone which increased confidence in the geological continuity throughout this Zone.

• The Aurora Zone is interpreted to be continuous between FSDH063 to the south, and FSDH061 to the north (1.6km total distance between holes); large undrilled gaps remain between these holes and the Zone remains open in all directions;

• FSDH061 intersected 701.2m at 1.13% CuEq from a depth of 392m, including 406m at 1.36% CuEq from 508m and the hole ended in strong mineralization at a depth of 1,093m; clearly extending the Aurora Zone, and confirming its generally NNE strike direction. The Aurora Zone remains completely open northeast of this intersection;

• FSDH063, located 1.6km southwest of FSDH061, was drilled to a final depth of 1,141m and intersected 844.2m at 0.53% CuEq from a depth of 16m, including 142m at 0.71% CuEq from a depth of 16m and 112m at 0.86% CuEq from a depth of 436m. The Aurora Zone remains open to the south of this hole, and large distances remain to the north and down-dip for expansion. Down dip, FSDH025 is just over 500m away from FSDH063, and to the north there is an undrilled gap of 590m between FSDH063 and FSDH048(1,081m @ 0.88% CuEq; 0.52% Cu, 0.43g/t Au, 5.3g/t Ag); and

• FSDH067, an infill hole between FSDH061 and FSDH063, intersected 1,131.6m at 1.11% CuEq from a depth of 132m, including 4m at 1.54% Cu, 12.08 g/t Au and 20.5 g/t Ag from 202m and 36m at 0.76% Cu, 0.71 g/t Au and 123.2 g/t Ag from 248m. The hole ended in strong mineralization at a depth of 1,263.6m.

Assay results received by the Company during and subsequent to the end of the third quarter of 2022 are summarized in the following table:

¹ CuEq for drill intersections is calculated based on US$3.00/lb Cu, US$1,500/oz Au and US$18/oz Ag, with 80% metallurgical recoveries assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0088 * Ag g/t).

As of the date of this MD&A, additional holes have been completed with assays pending, which include:

• FSDH062, infilling a 200m gap between holes FSDH044 and FSDH046, completed to a depth of 1,400m; and

• FSDH064, infilling a 400m gap between holes FSDH032 and FSDH048, completed to a depth of 1,447m.

Assay results for these holes will be released as they are received, analyzed and confirmed by the Company.

Two additional holes, FSDH065 (196m) and FSDH066 (458m) were suspended earlier this year, prior to the winter weather, and will be deepened during the upcoming months.

Executive Leadership Appointments

On September 1, 2022, the Company announced the appointment of Mr. Ian Gibbs as Chief Financial Officer ("CFO") and Mr. Arndt Brettschneider as Vice President, Operations & Projects, effective September 1, 2022.

Exercise of Top- up Right by BHP

On July 29, 2022, the Company closed a non-brokered private placement to BHP Western Mining Resources International Pty Ltd, a wholly owned subsidiary of BHP Group Limited (collectively, "BHP"), whereby the Company issued 44,047 common shares to BHP for gross proceeds of $675,681 (the “Anti-dilution Top-Up”).

The Anti-dilution Top-Up was undertaken pursuant to the terms of the March 11, 2022 private placement of 6,270,000 common shares to BHP at a price of $15.95 per common share for total gross proceeds of $100 million (the “Private Placement”), whereby BHP was granted certain anti-dilutive rights, allowing BHP to top-up and maintain its pro rata ownership interest from time to time, provided that such participation rights will not apply to any portion of BHP's ownership interest in excess of a 9.9% undiluted ownership level in the Company. The Company continues to use the proceeds of the Private Placement for exploration and development of the Filo del Sol Project and for working capital and general corporate purposes.