CERRO LOS GATOS PROJECT

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CERRO LOS GATOS MINE AND LOS GATOS DISTRICT

COMMERCIAL PRODUCTION IN THE HEART OF MEXICO’S SILVER BELT.

Located approximately 120 kilometers south of Chihuahua City in the heart of Mexico’s silver belt, the Los Gatos District consists of 14 mineralized zones to date, including three identified silver-lead-zinc deposits: the Cerro Los Gatos Mine, the Esther deposit, and the Amapola deposit. The other 11 mineralized zones, with over 150 kilometers of outcropping quartz and calcite veins, have at least one mineralization intercept. The area is characterized by a predominant silver-lead-zinc epithermal mineralization.

Prior to the initial acquisition of concession rights in April 2006, very limited historical prospecting and exploration had been conducted in the Los Gatos District. However, we were able to acquire concessions and access rights covering approximately 103,000 hectares and soon discovered a virgin silver and zinc region containing multiple zones of high-grade epithermal vein-style mineralization throughout the Los Gatos District concession package.

To date, our focus in the Los Gatos District has been:

• constructing and commissioning the Cerro Los Gatos Mine
• defining and expanding the mineral resources associated with the Cerro Los Gatos Mine, the Esther deposit, and the Amapola deposit.

The Cerro Los Gatos Mine is our first commercially producing mine in the Los Gatos District. Our lead and zinc concentrate shipments commenced in September 2019, achieving commercial production levels by the end of 2019. We plan to continue to sell our concentrate material, containing zinc, lead, silver, and gold metals, to smelting facilities in Japan, Mexico, and other locations through intermediaries. The Cerro Los Gatos Mine is on track to achieve full production and is expected to produce, on average, 9.2 million payable silver equivalent ounces annually through the existing mine life, with one of the best silver industry all-in sustaining cost (AISC) profiles.

The Los Gatos Technical Report, available for download in our Resources section, estimates that the Cerro Los Gatos Mine contains 10.4 million tonnes of measured and indicated resources at average grades of 269 g/t silver, 2.7% lead, 5.5% zinc, 0.34 g/t gold, and 0.11% copper and 3.7 million tonnes of inferred resources at average grades of 107 g/t silver, 2.8% lead, 4.0% zinc, 0.28 g/t gold, and 0.14% copper.

We believe there is widespread mineral resource potential beyond the Cerro Los Gatos Mine, the Esther and Amapola deposits, and the 11 other mineralized zones, as more than 85% of the land position has yet to be drilled. As a result, the Los Gatos District remains highly prospective and underexplored.

Elsewhere in the Los Gatos District, the Esther and Amapola zones are emerging as future deposits.

• The Esther deposit contains 0.46 million tonnes of indicated resources at average grades of 133 g/t silver, 0.04 g/t gold, 0.02% copper, 0.7% lead, and 2.1% zinc and 2.29 million tonnes of inferred resources at average grades of 98 g/t silver, 0.12 g/t gold, 0.05% copper, 1.6% lead, and 3% zinc.
• The Amapola deposit contains 0.25 million tonnes of indicated resources at average grades of 135 g/t silver, 0.1 g/t gold, 0.02% copper, 0.1% lead, and 0.3% zinc and 3.44 million tonnes of inferred resources at average grades of 140 g/t silver, 0.1 g/t gold, 0.03% copper, 0.2% lead, and 0.3% zinc.

CERRO LOS GATOS IS ALREADY YIELDING RETURNS.

GSI’S FIRST PRODUCING MINE

Concentrate shipments commenced in September 2019 with commercial production achieved by the end of 2019.

RARE GREENFIELD DISCOVERY

We discovered a virgin silver region containing high-grade epithermal vein-style mineralization throughout the Los Gatos District concession package.

DISTRICT-SCALE POTENTIAL

Despite being located in the “silver belt” of Mexico, more than 85% of the land position has yet to be drilled. As a result, the highly prospective Los Gatos District remains underexplored.

LOW RISK

Mining-friendly jurisdiction with low regulatory risk. Close to existing surfaced roads, access to grid power, ample water supply, and local community support.