Recent Highlights

Q1 2023 HIGHLIGHTS

• Continued exploration success, highlighted by:
  • Multiple holes drilled into the Aurora Zone across large intervals with consistently strong mineralization. Several of the holes reported are entirely outside the Company’s existing resource pit shell and serve to improve the geological interpretation of the deposit;
  • Drilled the most northerly hole in the Aurora Zone, extending it 160m northeast, leaving it wide open towards the Bonita Zone which sits a further 1.5km to the northeast;
  • Hole 68A setting a new record at Filo del Sol for the longest interval to date, at almost 1.8 km in length;
  • Established a new mineralized zone at the Flamenco exploration target with the first hole drilled in an area that sits over 3 kilometers to the south of the Aurora Zone;
• The Aurora Zone, the Bonita Zone, and the high-grade Breccia 41 area remain open to expansion in several directions and drilling to further define them is ongoing;
• On March 19, 2023, the Company announced that it had been added to the ETFMG Prime Junior Silver Miners ETF (“SILJ”) pursuant to the SILJ’s quarterly rebalancing, effective market close on March 17, 2023; and
• On March 13, 2023, the Company announced the appointment of Ms. Joyce Ngo and Mr. Peter J. O’Callaghan to its Board of Directors. Concurrently, Mr. Alessandro Bitelli retired and stepped off the Board of Directors. The changes resulted in the Company’s Board of Directors having a total of nine members.

Q1 2023 DRILLING AND ASSAY RESULTS

During and subsequent to the end of the first quarter of 2023, the Company announced the following results from the ongoing drill program:

• FSDH070A an infill hole in the Aurora Zone intersected 1,056.5m at 0.86% CuEq from a depth of 282m, including 670.4m at 0.97% CuEq from 369.7m. The hole ended in strong mineralization at a depth of 1,338.5m due to rig capacity;
• FSDH071 an infill hole in the Aurora Zone intersected 1,028.0m at 1.16% CuEq from a depth of 292m, including 172.0m at 2.14% CuEq from 408.0m and 237.5m at 1.49% CuEq from 776.0m. The hole ended in mineralization at a depth of 1,320m due to rig capacity. The entire hole is outside of the resource pit shell;
• FSDH068A intersected 1,776.0m at 0.70% CuEq from a depth of 18.0m, including 1,120.0m at 0.92% CuEq from 394.0m and 724.2m at 1.08% CuEq from 574.0m. The hole is entirely outside of the resource pit shell;
• FSDH069A intersected 1,296.5m at 1.00% CuEq from a depth of 138.0m, including 31m at 127.0 g/t Ag from 404.0m in the Silver Zone, 598.0m at 1.51% CuEq from 498.0m and 94.0m at 3.01% CuEq from 792.0m. The hole ended in strong mineralization at a depth of 1,434.5m due to rig capacity. The hole is entirely outside of the resource pit shell;
• FSDH074 intersected 1,022.0m at 0.66% CuEq from a depth of 278.0m, including 516.0m at 0.79% CuEq from 644.0m and 252.0m at 0.85% CuEq from 840.0m. The hole was collared on Section 9200N, 200m east of FSDH068A and 400m east of FSDH041. The hole was stopped in porphyry mineralization at 1,509.0m. The hole is entirely outside of the resource pit shell;
• FSDH077 intersected 2.0m at 10.35 g/t Au from a depth of 192.0m plus 516.2m at 0.20% CuEq from 404.0m. The hole was collared on Section 6000N and is the first hole in the new Flamenco target. The hole was stopped at 920.2m; and
• FSDH073 intersected 983.9m at 0.89% CuEq from a depth of 404.5m, including 614.0m at 1.06% CuEq from 600.0m and 272.0m at 1.33% CuEq from 756.0m.

Assay results received by the Company during and subsequent to the first quarter of 2023 are summarized in the following table:

(1) Copper Equivalent 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:

• FSDH075 drilled to a final depth of 1,649m – Bonita Zone;
• FSDH076 drilled to a final depth of 1,543m – Aurora Zone infill;
• FSDH079 drilled to a final depth of 846m – Gemelos Target; and
• FSDH081 drilled to a final depth of 683m – Flamenco Target.

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