Sierra Madre Gold and Silver (SM) investor relations material

Operating platform

• La Guitarra entered full commercial production on Jan. 1, 2025; Q2 2026 AgEq sales were 123,483 oz, with growth expected in H2 2026.

• Q2 2026 throughput reached up to 720 t/d after mill modifications, 44% above the prior 500 t/d capacity.

• The 2023 La Guitarra resource estimate reported 27.2M AgEq oz indicated and 20.2M inferred; resources are not reserves and do not have demonstrated economic viability.

La Guitarra expansion

• Phase 1 targets 750–800 t/d; the cone crusher is operating and ball mill installation is complete, with commissioning expected in November 2026.

• Phase 2 targets 1,200–1,500 t/d by Q3 2027, including a second crushing circuit and a permitted 5.8M-tonne dry-stack tailings facility.

• Expansion is expected to be self-funded from treasury and cash flow, with no additional permits required.

Exploration

• La Guitarra mapping has delineated 59 km of mineralized veins and breccias; a US$3.5M East District program includes more than 30,000 m of drilling.

• East District permits cover 22 drill pads; initial targets include Tlacotal, the Magdalena vein near Rincon and veins worked at Los Locos.

• The underexplored Tepic project has potential for more than 15 km of strike length; 17 of 20 completed core holes returned sections grading at least 75 g/t silver.