NUEVA RECUPERADA SILVER DISTRICT

NUEVA RECUPERADA SILVER DISTRICT

Silver District Highlights

• Inferred mineral resources of 14.9 MT at 162.65 g/T Ag, 2.54 % Pb/T and 2.50 % Zn/T, an increase of 104% from the previous Technical Report for the Recuperada Project, filed on May 3, 2021

• Measured and indicated mineral resources of 841,286 T at 118.5 g/T Ag, 2.85 % Pb/T and 2.16 % Zn/T

• On-going mining operation with many years of inferred resources

• Open at depth with known resource just below surface

• Expanded plant capacity from 600 to 720 tpd with installation of new jaw crusher (announced in April 2022)

• Full commercial production expected in 2022

Silver X expects full commissioning of the plant by the end of the year. Once completed, this will represent a 20% increase in processing capacity at Nueva Recuperada and any additional concentrate sales from this increase are expected to drive further cashflow for the company.

2022 Nueva Recuperada Project Compliant Current Mineral Resources (1)

(1)(2)(3)(4) Resource footnotes at the bottom of this page

TANGANA PROJECT

The Tangana Project is a large, cashflow-positive, silver mining unit.

Potential for new discoveries is high; the Tangana project extends across over 10 kilometres length and current production covers only 10% of the resource.

Project Highlights

• High grade >14 oz/t AgEq

• Wider veins 2-3m

• Bulk tonnage potential

• Bonanza grades, 3 main structures

• Significant exploration potential

• Full production in 2022

• Seven main structures

Silver X’s exploration program continues to back up the company’s vision to grow the Tangana Project into a multi-vein mine.

Selected drilling results

Current Production & Target Development

Catalysts For 2022

Tangana Project

  • Complete Preliminary Economic Assessment (PEA) in Q3 2022
  • Complete 15,500 meters of diamond drilling to support PEA
  • Submit the Environmental and Social Impact Assessment (ESIA) to expand mining and processing capacity to 2,500 tpd
  • Advance 9,000 meters underground to exploit multiple veins at the Tangana Mining Unit to access sufficient stoping blocks to profitably sustain commercial production

Other projects in the Nueva Recuperada Silver District

  • Esperanza Project - Begin operations in this silver-polymetallic project containing several intermediate sulfidation, epithermal high-grade vein targets. First drilling in Q3-Q4
  • Satellite Projects - Map and sample Tangana West and Pucapunta silver-(gold)polymetallic mineralized structures
  • Ccasahuasi Project - Commence drilling of a breccia-hosted disseminated gold target located adjacent to Tangana

SOCIAL IMPACT

Silver X believes in sustainable development by encouraging and leading economic mining activities. We aim to achieve this in two ways; by promoting working relationships with local suppliers and businesses, and by assisting outsiders bring business to our mining district to enable autonomous growth in other economic areas.

‍Silver X has begun updating the Environmental and Social Impact Assessment (ESIA) for its Nueva Recuperada Project. The environmental studies and community consultations for the ESIA allow for collaborative  discussions  with stakeholders while providing the company with a  clear  path to expanding  operations.  We are very proud to have a strong social license to operate at Nueva Recuperada and we will continue reducing and  mitigating  our  environmental impact  while  sharing  the  economic  benefits  of  resource development  with our stakeholders.
Read more about the ESIA here.

Resource disclosure:

(1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the  Mineral Resources estimated will be converted into Mineral Reserves. The quantity and grade of reported Inferred Mineral Resources in this  estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as Indicated Mineral  Resources. It is uncertain if further exploration will result in upgrading them to the Indicated Mineral Resources category. Effective date January  1, 2022. 
(2) Inferred Resources: “An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on  the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality  continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be  converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral  Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate sampling techniques from locations  such as outcrops, trenches, pits, workings and drill holes. Inferred Mineral Resources must not be included in the economic analysis, production  schedules, or estimated mine life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow models  of developed mines. Inferred Mineral Resources can only be used in economic studies as provided under NI 43-101.” (CIM, 2014). 
(3) Indicated Resources: “An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape  and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support  mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable  exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An  Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a  Probable Mineral Reserve. 
Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of  data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization. The  Qualified Person must recognize the importance of the Indicated Mineral Resource category to the advancement of the feasibility of the project.  An Indicated Mineral Resource estimate is of sufficient quality to support a Pre-Feasibility Study which can serve as the basis for major  development decisions.” (CIM, 2014). 
(4) Measured Resources: “Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and  physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning  and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and  testing and is sufficient to confirm geological and grade or quality continuity between points of observation.  
A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral  Resource. It may be converted to a Proved Mineral Reserve or to a Probable Mineral Reserve. Mineralization may be classified as a Measured  Mineral Resource when the nature, quality, amount and distribution of data are such as to leave no reasonable doubt, in the opinion of the  Competent Person determining the Mineral Resource, that the tonnage and grade of the mineralization can be estimated to within close limits,  and that any variation from the estimate would be unlikely to significantly affect potential economic viability.  
This category requires a high level of confidence in, and understanding of, the geology and the controls of the mineral deposit. Confidence in the  estimate is sufficient to allow the application of technical and economic parameters and to enable an evaluation of economic viability with a high  level of confidence. Measured Resources can be converted to Mineral Reserves if certain Modifying Factors are appropriate. Modifying Factors  are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing,  metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. Modifying Factors are also used to  convert Mineral Reserves into Mineral Resources as is applicable as changes mandate such conversions ”(CIM, 2014).