Operating Highlights

2020/2021 Drill Campaign Intersects High-Grade Feeder Zone and Extends Mineralization in Three Directions

The Company’s 2020/2021 drill campaign at the Filo del Sol Project concluded in May 2021, with a total of 11,280m of drilling completed in 15 holes during the field season. The program successfully intersected high-grade mineralization currently believed to be a feeder zone to the sizeable Filo del Sol deposit, and extended the deposit 360m to the east and 250m at depth, as well as the north-south expanse of continuous, known mineralization to a total distance of 4,500m. In addition, critical infill data has been collected, which will facilitate the Company’s undertaking of an update to Filo del Sol’s Mineral Resource estimate.

Select drillhole highlights include:

• FSDH041 returned 163m at 5.43% copper equivalent (“CuEq”) (2.31% Cu; 2.07g/t Au; 183.0g/t Ag) from 780m depth within a broader interval of 858m at 1.80% CuEq (0.86% Cu; 0.70g/t Au; 48.1g/t Ag) from 188m depth. The hole ended in mineralization at a depth of 1,046.0m, with the final 20m averaging 1.19% CuEq (0.65% Cu; 0.72g/t Au; 2.3g/t Ag). FSDH041 hosts the longest high-grade intersection to date in what is currently interpreted to be one of the feeder zones to the high-sulphidation epithermal mineralization;
• FSDH046, the deepest hole drilled at Filo del Sol to date, returned 676m at 0.92% CuEq (0.57% Cu; 0.34g/t Au; 11.3g/t Ag) from a depth of 380m within a broader interval of 1,378m at 0.71% CuEq (0.45% Cu; 0.29g/t Au; 6.1g/t Ag) from a depth of 77.7m It is to be noted that FSDH046, which reached a total depth of 1,570.7m, is entirely outside of the currently defined Mineral Resource;
• FSDH048 returned 352m at 1.16% CuEq (0.63% Cu; 0.64g/t Au; 6.7g/t Ag) from 498m depth within a broader interval of 1,081m at 0.88% CuEq (0.52% Cu; 0.43g/t Au; 5.3g/t Ag) from 38m depth. The hole ended in mineralization at a depth of 1,118.5m, with the final 20m averaging 0.57% CuEq (0.35% Cu; 0.29g/t Au; 0.58g/t Ag);
• FSDH049 returned 425.3m at 1.55% CuEq (0.42% Cu; 0.44g/t Au; 91.5g/t Ag); included within the long intercept, was the highest-grade silver intersection on the project to date, with 4m at 5,045.0 g/t Ag from a depth of 236m contained within a broader silver interval of 56m at 629.1 g/t Ag from a depth of 228m; and
• FSDH051, the most northerly hole drilled into the deposit to date, returned 344.0m at 0.50% CuEq (0.26% Cu; 0.21g/t Au; 9.4g/t Ag) from 246m and extended the mineralized zone by 750m to the north, outlining a 4,500m north-south strike of continuous mineralization.

Assay results from the Company’s 2020/2021 drill campaign that were received during the second quarter of 2021, and up to the date of this MD&A, are summarized in the table below:

Assay results for 13 of the 15 holes drilled this season have now been released. The final two holes, FSDH052 and FSDH053, were stopped well short of target depths at 152m and 150m respectively, within the leached cap, and full assays for these holes will be released once they have been resumed and drilling is completed during the next drill phase.  Drilling has now stopped for a short break while the Company prepares, winterizes and maintains the drills and camp facilities for continuous, year-round field operations, which are expected to resume before the end of August 2021.