Sierra Madre Gold and Silver (SM) Corporate presentation summary

Strategic growth and asset expansion

• La Guitarra mine achieved full commercial production in January 2025, with ongoing expansion and exploration, including a two-stage capacity increase to 1,500 tpd by Q3 2027 and a 30,000m drill program in the East District starting H2 2026.

• Acquisition of Del Toro Silver Mine from First Majestic announced, with a $60M cash and share deal over four years; restart targeted for mid-2027 and production slated for mid-2028.

• Del Toro features a 3,000 tpd flotation circuit, historic production averaging 2.54Moz AgEq annually, and a $12M exploration budget for a 30,000m drill program and resource update.

• Both assets are fully permitted, with La Guitarra expansions expected to be self-funded from treasury and cash flow.

• Mexico remains the world’s top silver producer, providing a favorable regulatory environment.

Financial and operational performance

• Q1 2026 net revenues reached $10.11M, with gross profit of $3.61M; sales of 128,827 AgEq ounces and ongoing cost reductions expected as higher-grade material is processed.

• Cash cost per AgEq ounce produced decreased from $42.55 in Q1 2025 to $22.51 in Q1 2026.

• Expansion phases at La Guitarra are expected to increase throughput by 50% in Q2 2026 and 100% by Q3 2027, with no additional permits required.

• Del Toro restart budgeted at $10M for an 800 tpd run rate, with plans to double to 1,600 tpd; annual carrying costs of $2M minimize downside risk.

• Market cap as of May 2026 is C$381.7M, with $13.2M cash and strong institutional and insider ownership.

Resource updates and exploration

• La Guitarra’s 2023 resource estimate: 27.2M AgEq ounces indicated (up 373%) and 20.2M AgEq ounces inferred (up 204%), with Coloso mine grades significantly higher than Guitarra.

• District-scale mapping at La Guitarra has delineated 59 km of mineralized structures, with over 1,400 drill holes completed.

• Del Toro’s historic resource (2020): 7.57M AgEq ounces M&I and 11.18M AgEq ounces inferred, with 23 identified deposits across skarns and mantos.

• Tepic project shows over 15km strike length potential, with recent drilling returning high-grade silver and gold intercepts.