Cautionary Disclaimer 1 Annual silver consumption is ~ 1.0B ounces - PowerPoint PPT Presentation

Cautionary Disclaimer 1

• Annual silver consumption is ~ 1.0B ounces • 80% sourced from mining, 20% sourced from recycling and hedging • Over past 10 years, the silver industry has been in a 500M ounce physical deficit • Silver is one of the world’s most reflective and best conductors of electricity • 55% of silver consumption is from industrial applications – electronics, medicine, solar, water purification, window manufacturing, etc. • Demand by sector: 55% industrial fabrication, 20% jewelry, 19% coins & bars, 6% silverware • Scrap recycling is at a 25 year low! • Current silver to gold mine supply ratio: 8:1 2

Silver Use In The Auto Sector Source: CPM Group Silver Yearbook 2020 3

• Solar carports are one of the most viable options for refueling EV’s • Currently in use at a number of Walmart’s, Federal & State offices and colleges Annual Silver Demand for Photovoltaic Solar Panels across the United States Million Ounces Million Ounces • US Department of Energy’s National Renewable Energy Laboratory (NRLE) says about 8,000 solar carport stations would be needed to provide a minimum level of urban and rural coverage nationwide Solar energy is as an inexhaustible fuel source that is pollution free. The technology is also versatile. Solar cells generate energy for satellites in Earth orbit and cabins deep in the Rocky Mountains as easily as they can power downtown buildings and cars. Source: CPM Group Silver Yearbook 2020 4

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Gold/Silver Ratio The Gold to Silver Ratio Hit an All-Time High of 124:1 on March 18, 2020! 6

The Right Country … About The Company Primary Ag Producer ~60% of revenue from Silver (40% Au) One Country: Mexico World’s largest silver producing country Three producing silver mines; 4,500 direct employees Multi-Asset Producer Over 350,000 hectares of mining claims in eight states Large Land Package Become W orld’s largest primary silver producer Goal 7

Capital Structure: Top Shareholders: % S/O Market Capitalization: $2.9B Van Eck (GDXJ & GDX) 10.8% Wheaton Precious Metals 9.6% Shares Outstanding: 210M (FD 219) Renaissance Technologies 2.3% 3M Avg. Daily Volume (NYSE &TSX): 8.8M Shares ~ $85M The Vanguard Group 2.3% Keith Neumeyer (President & CEO) 1.7% Working Capital: $114M BlackRock 1.6% Cash: $128M Merian Global 1.5% Morgan Stanley 1.1% Share Price: $13.66 52 Week High/Low: $4.17/ $14.57 Convertible Debt @ 1.875%: $140M Research Coverage: *All amounts are in U.S. dollars unless stated otherwise. Shareholder Breakdown: Bank of Montreal B. Riley FBR Cormark Securities H.C. Wainwright National Bank Financial Roth Capital Partners Scotiabank Toronto Dominion 8

IN PRODUCTION San Dimas 1 Santa Elena 2 2 Hermosillo La Encantada 3 3 TEMP SUSPENDED Durango 4 San Martin 9 1 5 6 PROJECTS 8 4 La Parrilla 5 Mexico 6 Del Toro City 7 La Guitarra 7 8 La Luz La Joya (sale pending) 9 9

30 Silver Ounces Only 25 Silver Eqv. Ounces (M) 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 10

Mine Silver (Moz) Gold (Koz) Silver Eqv (Moz) Cash Costs ($) AISC ($) San Dimas 6.0 – 6.4 75 – 80 13.5 – 14.4 0.75 – 1.49 7.09 – 8.22 Santa Elena 1.9 – 2.0 31 – 33 4.8 – 5.2 3.60 – 4.38 8.33 – 9.43 La Encantada 3.1 – 3.3 –– 3.1 – 3.3 10.42 – 10.77 12.59 – 13.07 Totals: 11.0 – 11.7 106 – 113 21.4 – 22.9 $3.95 – $4.59 $12.29 – $13.45 Certain amounts shown may not add exactly to the total amount due to rounding differences. Consolidated AISC includes Corporate & Administrative cost estimates and non-cash costs of $2.81 to $2.99 per payable silver ounce Metal price assumptions for calculating equivalents are: silver: $17.00/oz, gold: $1,700/oz Currency exchange assumption for costs are: 21:1 MXN:USD 11

Mine Silver (Moz) Gold (Koz) Silver Eqv (Moz) Cash Costs ($) AISC ($) San Dimas 3.3 – 3.6 42 – 47 7.5 – 8.3 (0.95) – 0.23 4.72 – 6.55 Santa Elena 1.1 – 1.2 16 – 18 2.7 – 3.0 2.53 – 3.72 6.75 – 8.43 La Encantada 1.7 – 1.8 –– 1.7 – 1.8 10.86 – 11.56 12.82 – 13.75 Totals: 6.1 – 6.6 58 – 65 11.9 – 13.1 $2.93 – $3.99 $10.57 – $12.49 Certain amounts shown may not add exactly to the total amount due to rounding differences. Consolidated AISC includes Corporate & Administrative cost estimates and non-cash costs of $2.35 to $2.62 per payable silver ounce Metal price assumptions for calculating equivalents are: silver: $17.00/oz, gold: $1,700oz Currency exchange assumption for costs are: 21:1 MXN:USD 12

2020 CAPEX Include: $54M – U/G Development $21M – Exploration $27M – PP&E $29M – Corporate Projects Expansionary $86M + Sustaining $46M 13

14 Drill rigs currently active across the Company Avg. Grade 179 215 240 217 204 208 306 320 (AgEq g/t): 14

2020E Operational Highlights Our lowest cost and Mill Throughput: 2,000 tpd largest producing mine 2020E Production: 6.0M – 6.4M Ag oz (13.5M – 14.4M AgEq oz) 2020E AISC: $7.09 – $8.22 Produces: 100% Doré Quarter End Full Year Q2 2020 Q1 2020 Q2 2019 2019 Silver production (oz) 1,102,931 1,677,376 1,603,016 6,305,672 • Over 50% of the power requirements provided by environmentally Silver eqv. production (oz) 2,395,633 3,672,169 3,641,139 13,831,627 clean, low-cost hydroelectric power • Expanding hydroelectric dam to supply ~100% power to the Silver grade (g/t) 318 280 312 305 operation and town Gold grade (g/t) 3.38 3.44 4.32 4.07 • Restarting mining operations in the Tayoltita mine and ramping up Cash costs / oz ($US) $3.77 $3.08 $1.64 $1.41 to 300 tpd by the end of 2020 • 3,000 tpd HIG mill delivered in Q2 2020 with installation and All-in Sustaining cost / oz ($US) $13.04 $9.02 $8.49 $7.26 commissioning expected in Q2 2021 15

• First reported mining in the San Dimas district in 1757 – over 250 years ago • Considered to be one of the most significant Restarted the Tayoltita mine in precious metal mining districts in Mexico June 2020 • Historic production estimated at 11M Au oz & Current mining areas 580M Ag oz • Over 500 km of underground development Tayoltita Portal and Rail Restoration Processing mill 71,867 hectares 16

Since acquisition, production costs have been • Implementation of High Intensity Grinding technology (HIG MILL) and conversion into reduced by over 20% to $125/tonne autogenous mill from standard ball mills • Lime automation and pH control • Upgrading of tailings and filtration plant • Modernization of the Merrill Crowe and smelting operations • Installation of a two new counter-current decantation (CCD) tank • Estimated 40% reduction in ore drive development dimensions allowing for reduced dilution and reductions in costs associated with standard ground support • Pillar recoveries from Tayoltita, Santa Rita and Noche Buena Mines 17

Current Infrastructure 2020 Project Infrastructure Crushing circuit Ore bins Las Truchas Hydro Electric Dam Cyanidation Plant Autogenous mill HIG Installation 18 Control Room at Las Truchas Hydro Electric Dam

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2020E Operational Highlights Mill Throughput: 3,000 tpd 2020E Production: 3.1M – 3.3M Ag oz 2020E AISC: $12.59 – $13.07 Produces: 100% Doré Quarter End Full Year 2019 Q2 2020 Q1 2020 Q2 2019 Silver production (oz) 509,544 924,472 489,194 3,083,410 • Natural gas generators currently supplying 90% of power Silver eqv. production (oz) 514,092 929,487 492,957 3,099,717 requirements • Evaluating modifications to roasting circuit to reprocess tailings – Silver grade (g/t) 158 165 110 146 expected to add 1.5M Ag oz per year Cash costs / oz ($US) $9.38 $10.77 $16.57 $11.89 • Achieving 70 - 80% recoveries with recent changes made to milling All-in Sustaining cost / oz ($US) $11.60 $13.31 $18.87 $13.90 operations 20

2020E Operational Highlights Mill Throughput: 3,000 tpd 2020E Production: 1.9M – 2.0M Ag oz (4.8M – 5.2M AgEq oz) 2020E AISC: $8.33 – $9.43 Produces: 100% Doré Quarter End Full Year Q2 2020 Q1 2020 Q2 2019 2019 Silver production (oz) 222,100 550,133 596,872 2,435,604 Silver eqv. production (oz) 595,651 1,593,400 1,461,345 6,316,277 • Conversion from diesel power to liquid natural gas to be completed by Q1 2021 Silver grade (g/t) 83 102 91 96 • High silver and gold recoveries expected to continue through the Gold grade (g/t) 1.34 1.97 1.42 1.68 use of a 3,000 tpd HIG Mill Cash costs / oz ($US) $15.10 $2.12 $4.28 ($0.51) All-in Sustaining cost / oz ($US) $24.71 $6.03 $7.73 $3.02 21

Las Chispas Santa Elena Silver/Gold Mine Vein Outcropping at the Ermitaño Project 36M AqEq oz Exploration Upside Ermitaño Project • Large land package of mining claims covering 102,244 hectares 68M AqEq oz • New discovery made at Ermitaño in late 2016 • Successfully intersected the Ermitaño vein in Q2 2020 • Currently have two rigs drilling at Santa Elena with plans to add more rigs to focus on the regional potential 22