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 to increase capacity by 50% in Q2 2026 and 100% by Q3 2027, fully funded from cash flow.

• Acquisition of Del Toro mine from First Majestic for up to $60M in cash and shares, with plans for a 30,000m drill program and restart targeted for mid-2028, subject to regulatory approvals.

• Del Toro mine offers a fully permitted 3,000 tpd facility, significant historic production, and exploration upside in an underexplored district.

• Both assets are positioned in Mexico, the world’s top silver producer, benefiting from a favorable regulatory environment.

• Strategic and institutional investors include First Majestic, Commodity Capital, Franklin Templeton, and Eric Sprott.

Operational and financial performance

• Q1 2026 sales at La Guitarra reached 128,827 AgEq ounces, with net revenues of $10.11M and gross profit of $3.61M; costs are expected to decrease as higher-grade material is processed.

• Expansion phases at La Guitarra involve new processing equipment and infrastructure, with no additional permits required.

• Del Toro restart budgeted at $10M for an 800 tpd run rate, with the option to double capacity later; $12M exploration budget over 24–30 months.

• Cash and short-term investments as of March 31, 2026, totaled $13.2M, with a market cap of C$391.5M and strong insider and institutional ownership.

Resource and exploration highlights

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

• District-wide exploration at La Guitarra includes a $3.5M program and a 30,000m drill campaign in the East District starting H2 2026.

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