Discovery Silver (DSV) John Tumazos Very Independent Research Virtual Conference summary

Strategic vision and recent developments

• Transitioned from a silver developer in Mexico to a Canadian gold producer through the acquisition of the Porcupine Complex, with significant upside potential identified in both gold and silver assets.

• Porcupine Complex has 15 million ounces identified, with a base case of 285,000 ounces/year gold production for 10 years and an NPV over $3.4 billion; goal is to grow to a tier one asset producing 500,000+ ounces/year.

• Cordero project in Mexico is the largest undeveloped silver reserve globally, with feasibility for 37 million ounces silver equivalent annually for 10–15 years; awaiting final permit approval.

• Company trades at a significant discount to NPV, with management focused on realizing and increasing share price value.

• No plans for share buybacks or dividends before 2030; cash flow will be reinvested in exploration, capital investment, and mine expansion.

Operational highlights and expansion plans

• Three operating mines in Timmins: Hoyle Pond (high-grade underground), Borden (new mine, large land position), and Pamour (expanding open pit), all supported by a central mill and tailings facility with capacity to 2034.

• Significant exploration upside at all sites, with plans to double Pamour pit size and build two new gold mines (Dome and TVZ Zone) in the next 3–5 years.

• $50 million exploration budget for the next 12 months, targeting resource expansion at Borden, Pamour, and Hoyle Pond.

• Dome mill upgrades planned to increase capacity from 9,000 to 12,500 tons/day, with potential for further expansion and cost reduction.

• Focus on productivity improvements, cost reduction, and leveraging regional synergies for processing and tailings management.

Technical and financial considerations

• Ongoing mill maintenance and upgrades to address legacy equipment and improve metallurgical recovery; aim to reduce processing costs below CAD 20/ton and increase recovery to 92.5–93% in 2–3 years.

• Flexible approach to plant expansion, considering regional synergies and staged investments rather than duplicating large-scale plants.

• Capital structure includes major shareholders (Eric Sprott, Jupiter, Franco-Nevada, Newmont), with Newmont under a 12-month lockup for share sales.

• Franco-Nevada royalty buyback is not a near-term priority due to favorable amortization structure; capital will be prioritized for value-creating investments.

• Well-financed with $240 million in the bank, strong cash flow, and access to debt facilities; no immediate need to issue new equity.