Discovery Mining (DSV) Investor Update summary

Strategic vision and recent developments

• Acquisition of Porcupine assets in Ontario and advancement of the Cordero silver project in Mexico position the company as a major North American precious metals producer.

• Discovery Silver to acquire Newmont's 100% interest in the Porcupine Complex, creating a new Canadian gold producer with significant growth potential.

• Financing structure includes $200 million upfront, $75 million in equity, and $150 million deferred over four years, with Franco-Nevada providing $400 million in royalty and debt financing.

• Management emphasizes disciplined investment, cost control, and leveraging existing infrastructure to maximize value.

• The company aims to be a low-cost producer, resilient to commodity price fluctuations, and focused on long-term shareholder value.

Asset portfolio and operational highlights

• Porcupine assets include Hoyle Pond, Borden, Pamour, and Dome mines, each with substantial remaining resources and exploration potential.

• Hoyle Pond has produced over 4 million ounces at high grades and retains significant life and upside.

• Pamour open pit offers 3.9 million ounces with low strip ratios and existing processing infrastructure, with potential for further expansion.

• Dome mine holds an 11 million ounce inferred open-pittable resource, with additional underground potential yet to be fully explored.

• Cordero is described as a world-class, buildable silver project with minimal environmental and social impact, awaiting final permitting in Mexico.

Financial and operational outlook

• Average annual production projected at 285,000 ounces over a 22-year mine life, with all-in sustaining costs averaging $1,504/oz.

• Base case after-tax NPV (5%) of $1.2 billion, rising to $2.2 billion at a fixed $2,700/oz gold price.

• Free cash flow projected at $540 million (base case) and $945 million (at $2,700/oz gold) over initial years.

• Average annual capital expenditures of $140 million from 2025–2030, supporting development and exploration.

• Significant excess liquidity post-transaction to fund future initiatives.