2022 Annual Financial & Operational Highlights

l Record Ag production of 1,880,707 oz, a 17.5% year-over-year increase in silver ounces produced that is a direct result of the higher mining rate, mill throughput and recovery rate.

l Milling operations averaged 699 tonnes per day (“tpd”) for the year compared to 615 tpd in 2021, an increase of 13.6%. Combined mill recovery averaged 86.6% compared to 82.1% in 2021, an increase of 4.5%.

l Cash flows generated by operating activities of $9,648,774 for the year, compared to $17,502,239 generated in operating cash flows for 2021.

l Revenue from silver sales totaled $38,244,921 compared to $34,301,914 in 2021, an increase of 11.5% due to a 28% increase in the volume of sales The increase in sales volume was partially offset by a lower average realized price in 2022 of $19.76/oz (2021 – $22.65/oz).

l The Corporation had cash, cash equivalents and restricted cash of $41,849,425 as at December 31, 2022 compared to $84,185,219 as at December 31, 2021

l Net income for the year was $1,469,320 (diluted EPS of $0.013), compared to a net Income of 1,272,142 (diluted EPS of $0.012) in 2021. Net income for the year was attributable to an increase in production and silver sales.

2022 Operations Review

2022 was a year focused on advancing the engineering work and commencing construction activities for the Zgounder expansion, while ensuring efficient production. The project construction, mine engineering, geology and maintenance department teams were also strengthened. Procedures, processes, mining and work methods continued to be refined. The Corporation produced a record total of 1,880,707 oz Ag in 2022, a 17% increase from 2021. Mine production metrics improved across the board. Mill metrics also improved to a combined silver recovery of 86.6% and mill availability of 91.7%.

Zgounder Development

In 2022, construction of the Zgounder Expansion Project continued to progress effectively, and the following milestones had been achieved (as of January 31, 2023 unless otherwise stated):

l Over 4,170m of permanent underground development had been completed out of the 11,000m program.

l Mobilization of the open-pit mining contractor expected in April 2023.

l Detailed engineering had advanced to over 60%.

l Fixed price Engineering Procurement and Construction (“EPC”):

l Detailed design of the process plant is being advanced by Duro Felguera as part of its EPC contract.

l Procurement of the mechanical equipment packages neared completion.

l Fabrication of the 3.3-megawatt ball mill was 62% complete.

l Manufacturing of the crushing equipment had reached 90% completion.

l On-schedule start of construction of a new tailings storage facility and new water storage facility.

l Construction of power line underway for planned completion in Q1-2024.

l Award of contract for new 60/22 kilovolt electrical substation.

l Bulk earthworks were near-complete.

l Civil works began with construction of the leach tank foundations in February 2023.

2023 Outlook and Year So Far

l Successfully completed a C$92 million (US$69 million) bought-deal public offering.

l Secured a $100 million debt financing package with the European Bank for Reconstruction and Development (“EBRD”) and Climate Investment Funds’ Clean Technology Fund (“CTF”).

l Guidance of between 1.7 and 1.9 million ounces (“oz”) production at cash cost of $14.40/oz. (1)

l Provided a path to near-zero Scope 2 emissions in 2024 by signing a renewable power purchase agreement with Energie Éolienne du Maroc.