Discovery Silver (DSV) Investor Update summary

Strategic vision and asset overview

• Discovery Silver is acquiring Newmont's 100% interest in the Porcupine Complex, creating a new North American precious metals company with high-quality gold assets in Ontario and a leading silver project in Mexico.

• The Porcupine acquisition transforms the company into a 285,000 oz/year gold producer with significant infrastructure, a large resource base, and exploration upside.

• Cordero project in Mexico is considered a world-class, buildable silver asset with minimal environmental impact and strong community support.

• Strong financial backing from Franco-Nevada, a $575M financing package, and structured financing with Newmont ensure robust balance sheet and investment capacity.

• Management team has deep regional experience and a track record of value creation in mining.

Transaction overview and financial outlook

• Consideration includes $200M cash, $75M in Discovery equity, and $150M deferred over four years; acquisition completion expected in H1 2025, subject to approvals.

• Franco-Nevada provides $400M in royalty and debt financing, including a 2.25% life-of-mine royalty and a $100M senior debt facility.

• Public offering raised $175M, with Franco-Nevada and insiders participating; proceeds fund acquisition and future growth.

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

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

Porcupine Complex asset highlights

• Located in the historic Timmins gold camp, the complex has produced nearly 70 Moz and holds a large resource base with substantial exploration upside.

• Key assets: Hoyle Pond (high-grade underground, 10-year mine life), Borden (underground, 8-year mine life), Pamour (open pit, 22-year mine life), and Dome (large mill, significant inferred resources).

• Average annual production projected at ~285 koz over a 22-year mine life.

• All-in sustaining costs (AISC) average $1,504/oz, with potential for further improvement.

• Total measured & indicated resources: 3.9 Moz gold; total inferred resources: 12.5 Moz gold across Hoyle Pond, Borden, Pamour, and Dome.