CHALLACOLLO SILVER GOLD PROJECT JV

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Challacollo Silver-Gold project.*

On November 12, 2019, Mandalay entered into a definitive sale agreement with Aftermath Silver for C$10.5 million (C$7.5 million in non-contingent consideration in the form of cash and shares plus a 3% NSR on Challacollo, capped at C$3.0 million).

The Company has an option to acquire 100% interest in the Challacollo silver-gold project through a binding agreement with Mandalay Resources, see Company news release dated June 27th, 2019. The Company announced a CIM compliant Mineral Resource for Challacollo on December 15th 2020, details of which can be found in the NI 43-101 Technical Report for Challacollo (available on SEDAR and on the Company’s web page