Outcrop Silver & Gold (OCG) 2024 Precious Metals Summit Beaver Creek summary

Market and Industry Outlook

• Silver fundamentals have shifted due to surging demand from solar and industrial sectors, creating a significant supply-demand deficit.

• Only 30% of global silver production comes from primary silver mines, increasing pressure on supply.

• Silver is considered undervalued, with a persistent supply-demand deficit: 2023 demand was 1,195 Moz vs. 1,011 Moz supply, and a forecast 2024 deficit of 265.3 Moz.

• Industrial demand for silver is forecast to rise 9% in 2024, with solar demand up 64% in 2023, highlighting silver's strategic role in the energy transition.

Project Resource and Exploration Strategy

• Santa Ana project holds an initial resource of 37 million oz, with 74% of value in silver and the rest in gold.

• Santa Ana's maiden resource estimate is 24.2 Moz AgEq indicated and 13.5 Moz AgEq inferred as of April 2023, with 73% of resources as silver and 64% classified as indicated.

• Resource estimate is based on six to seven veins, with potential to add significant ounces by exploring additional veins; most veins remain open at depth and laterally, and less than 25% of the concession area has been mapped.

• 2024 strategy focuses on testing new targets and expanding exploration across a 30 km trend, with drilling extending known mineralization by 5 km south and intercepting high-grade zones.

• Drill programs are targeting both open-at-depth and along-strike veins to maximize resource growth, with over 14 high-grade targets identified for future drilling.

Operational and Technical Highlights

• Recent drilling at Aguilar and Jimenez veins yielded high grades, with intersections over 3,000 g/t AgEq.

• Metallurgical tests show 96% silver and up to 99% gold recovery, producing high-quality concentrate with grades up to 4,356 g/t silver and 37.5 g/t gold, and no acid drainage potential.

• Concentrate can be smelted directly to doré, offering high payability and environmental benefits.

• Project's mineralization is primarily silver sulfide, which is not refractory and floats well.

• Santa Ana's indicated resource grade of 614 g/t AgEq is among the highest globally, surpassing comparable projects.