# EDGAR Filing Document

**Accession Number:** 0001545224
**File Stem:** 0001062993-23-005916
**Filing Date:** 2023-3
**Character Count:** 175350
**Document Hash:** ffb18bdd1e1bb865631bcbe5bcc9bdfb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-23-005916.hdr.sgml**: 20230303

**ACCESSION NUMBER**: 0001062993-23-005916

**CONFORMED SUBMISSION TYPE**: 20-F/A

**PUBLIC DOCUMENT COUNT**: 24

**CONFORMED PERIOD OF REPORT**: 20211231

**FILED AS OF DATE**: 20230303

**DATE AS OF CHANGE**: 20230303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Silver Elephant Mining Corp.
- **CENTRAL INDEX KEY:** 0001545224
- **STANDARD INDUSTRIAL CLASSIFICATION:** METAL MINING [1000]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55985
- **FILM NUMBER:** 23705788

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 1610 - 409 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 1T2
- **BUSINESS PHONE:** 604-569-3661

**MAIL ADDRESS:**
- **STREET 1:** SUITE 1610 - 409 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 1T2

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROPHECY DEVELOPMENT CORP.
- **DATE OF NAME CHANGE:** 20150629

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROPHECY COAL CORP
- **DATE OF NAME CHANGE:** 20120321

?xml version="1.0" encoding="UTF-8"? Silver Elephant Mining Corp.: Form 20-F/A - Filed by newsfilecorp.com

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 20-F/A**

(Amendment No. 1)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **☐**  | **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **OR** | **OR** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **☒**  | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**  |
|  | **For the fiscal year ended December 31, 2021** |
| **OR** | **OR** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **☐**  | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **OR** | **OR** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **☐**  | **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **For the transition period from ____________________ to ____________________** |

---

Commission file number: **000-55985** 

---

| |
|:---|
| **SILVER ELEPHANT MINING CORP.**  |
| (Exact name of Registrant as specified in its charter) |

---

**<u>British Columbia, Canada</u>**

(Jurisdiction of incorporation or organization)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Suite 1610 - 409 Granville Street Vancouver<u>, British Columbia, CANADA V6C 1T2</u> /** 

(Address of principal executive offices)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **John Lee** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Suite 1610 - 409 Granville Street** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Vancouver, British Columbia, CANADA V6C 1T2** 

**<u>Telephone: 604-569-3661, Facsimile: 604-569-3617 Email: info@silverelef.com</u>**

(Name, Telephone, E-Mail and/or Facsimile number and Address of Company Contact Person)

Copy of communications to:

**James Guttman Dorsey & Whitney LLP**

**Brookfield Place 161 Bay Street, Suite 4310**

**Toronto, Ontario, Canada M5J 2S1**

**Telephone: <u>(416) 367-7376 Facsimile: (416) 367-7371</u>**

Securities registered or to be registered pursuant to Section 12 (b) of the Act: **None**

Securities registered or to be registered pursuant to Section 12 (g) of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Common Shares, without par value</u>**

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: **None**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 24,124,955 Common Shares as at December 31, 2021

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Yes ☐ No ☒

------

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☐ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-accelerated filer  | ☒ |
|  |  | Emerging growth company | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☒  |

---

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the fi ling reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued By the International Accounting Standards Board ☒&nbsp;&nbsp;&nbsp;&nbsp; Other ☐

If "Other" has been checked in response to previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 ☐&nbsp;&nbsp;&nbsp;&nbsp; Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No ☒

------

**EXPLANATORY NOTE**

This Amendment No. 1 on Form 20-F (the "Form 20-F/A") amends the annual report on Form 20-F of Silver Elephant Mining Corp. (the "Company") for the fiscal year ended December 31, 2021, originally filed with the U.S. Securities and Exchange Commission ("SEC") on May 9, 2022 (the "Form 20-F"). This Form 20-F/A is being filed in response to the comment letter dated October 18, 2022 (the "SEC Comment Letter") received from the staff of the SEC. The Glossary of Terms and Item 4 of Part I of the Form 20-F are amended by this Form 20-F/A to reflect additional information and revised disclosure requested from the SEC in connection with its review of the Form 20-F .Item 19 of Part III of the Form 20-F is amended by the filing of new certifications required by the Sarbanes-Oxley Act of 2002 in connection with the filing of this Form 20-F/A.

This Form 20-F/A speaks as of the original filing date of the Form 20-F on May 9, 2022. Other than as set forth herein, this Form 20-F/A does not, and does not purport to, amend, update or restate any other information or disclosure included in the Form 20-F or reflect any events that have occurred since May 9, 2022.

**GLOSSARY OF TERMS**

---

| | |
|:---|:---|
| Ag | silver |
| Au | gold |
| deposit | means a mineral deposit which is a mineralized mass that may be economically valuable, but whose characteristics may require more detailed information. Mineral resources are calculated from geological data collected from deposits, however, deposits do not necessarily reflect the presence of mineral resources. |
| Fe | iron |
| ft | feet |
| g/t | Grams per tonne |
| lb. | pound (2,000 lbs. to 1 ton, 2,204.6 lbs. to 1 tonne) |
| m | meters |
| oz. | troy ounce (12 oz. to 1 pound) |
| Ti | Titanium |
| V | Vanadium |

---

**Definitions under S-K 1300**

---

| | |
|:---|:---|
| Indicated Mineral Resources | That part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. |
| Inferred Mineral Resource | That part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. |

---

------

---

| | |
|:---|:---|
| Initial Assessment | A preliminary technical and economic study of the economic potential of all or parts of mineralization to support the disclosure of mineral resources. The initial assessment must be prepared by a qualified person and must include appropriate assessments of reasonably assumed technical and economic factors, together with any other relevant operational factors, that are necessary to demonstrate at the time of reporting that there are reasonable prospects for economic extraction. An initial assessment is required for disclosure of mineral resources but cannot be used as the basis for disclosure of mineral reserves. |
| Measured Mineral Resource | That part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. |
| mineral resource | is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. |
| Preliminary Feasibility Study (PFS) | A comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. |
| Qualified Person Or QP | An individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation, or mineral project assessment, or any combination of these; has experience relevant to the subject matter of the mineral project and the technical report; and is a member or licensee in good standing of a professional association recognized under NI 43-101 and S-K 1300. |
| S-K 1300 | Subpart 1300 of Regulation S-K which sets forth the required mining disclosures required by the SEC. |

---

**Definitions under NI 43-101**

---

| | |
|:---|:---|
| Indicated Coal Resource | That part of a Coal Resource for which quantity or quality, densities, shape, and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and quality continuity to be reasonably assumed. |
| Indicated Mineral Resources | That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. |

---

------

---

| | |
|:---|:---|
| Inferred Coal Resource | That part of a Coal Resource for which quantity and quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and quality continuity. The estimate is based on limited information and sampling, gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes. |
| Inferred Mineral Resource | Inferred Mineral Resource is the part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological or grade continuity. |
| Measured Mineral Resource | That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity. |
| mineral resource | means a concentration or occurrence of natural, solid, inorganic, or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics, and continuity of a mineral resource are known, estimated, or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing geological confidence, into *Inferred, Indicated, and Measured* categories. Note that the confidence level in Inferred Mineral Resources is insufficient to allow the application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Regardless of category, a mineral resource is estimated through application of the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum Standards for Mineral Resources and Reserves: Definitions and Guidelines, as amended in 2014. A "historic" mineral resource estimate refers to a mineral resource estimate of the quantity, grade, or metal or mineral content of a deposit that the Company has not verified as current, and which was prepared before the Company acquired or entered into an agreement to acquire, an interest in the property that contains the deposit. |
| NI 43-101 | Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. |
| Preliminary Feasibility Study (PFS) | A comprehensive study of the viability of a project that has advanced to a stage where the mining method and pit configuration has been established and an effective method of coal processing has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating, economic, social, and environmental factors, and the evaluation of other relevant factors which are sufficient for a Qualified Person (QP), acting reasonably, to determine if all or part of a Resource can be classified as a Reserve (CIM Standards, 2014). Based on the SME study types a PFS used to support a NI 43-101 Technical Report is within +/-25% degree of accuracy. |
| Qualified Person Or QP | An individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation, or mineral project assessment, or any combination of these; has experience relevant to the subject matter of the mineral project and the technical report; and is a member or licensee in good standing of a professional association recognized under NI 43-101 and S-K 1300 (CIM Standards, 2014). |

---

------

**PART I** 

**ITEM 4. INFORMATION ON THE COMPANY**

**D. Property, Plants and Equipment**

***General***

Currently, we consider only the Pulacayo Project to be material. We do not currently consider the interests the Company holds in its other projects to be material. Portions of the following excerpts are based on the assumptions, qualifications and procedures set forth in the respective technical reports which, while not fully described herein, have been filed on SEDAR (available at www.sedar.ca) and EDGAR (www.sec.gov).

Please refer to the discussion under the heading "Cautionary Note Regarding Forward-Looking Statements" at the beginning of this Annual Report for important information concerning certain mining terms and descriptions of our mineral deposits used or contained in this section.

The Company disposed of its interests in the Gibellini project and the Minago project on January 14, 2022 in the plan of arrangement described above. As a result, the projects are not discussed below.

***Production***

Except with respect to the Ulaan Ovoo Property, the Company had no production during its last three fiscal years. An arms-length private Mongolian company that leases Ulaan Ovoo Property mined 84,739 tonnes of coal in 2019, 81,919 tonnes in 2020, and 117,387 tonnes in 2021.

------

Bolivia Projects Map

![](form20faxm007.jpg)

------

Mongolia Projects Map

![](form20faxm008.jpg)

A summary overview of exploration projects is shown in the following table:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property** | &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**State /<br>Province** | &nbsp;&nbsp;**Ownership** | &nbsp;&nbsp;**Claims** | &nbsp;&nbsp;**Permit<br>Conditions** | &nbsp;&nbsp;**Stage** | &nbsp;&nbsp;**Mine Type** | &nbsp;&nbsp;**Commodity** | &nbsp;&nbsp;**Mineralization<br>Style** |
| Pulacayo Project | &nbsp;&nbsp;Bolivia | &nbsp;&nbsp;Antomio Quijarro | &nbsp;&nbsp;COMIBOL | &nbsp;&nbsp;7 mining areas covering approximately 3,560 hectares | &nbsp;&nbsp;fully permitted with secured social licenses for mining | &nbsp;&nbsp;Pre-feasibility study | &nbsp;&nbsp;Underground | &nbsp;&nbsp;Ag Pb Zn | &nbsp;&nbsp;Low sulphidation polymetallic vein-style mineralization |
| Paca Project | &nbsp;&nbsp;Bolivia | &nbsp;&nbsp;Antonio Quijarro | &nbsp;&nbsp;100% | &nbsp;&nbsp;30 squares patented claims | &nbsp;&nbsp;fully permitted with social agreement | &nbsp;&nbsp;Pre-feasibility study | &nbsp;&nbsp;Open pit | &nbsp;&nbsp;Ag Pb Zn | &nbsp;&nbsp;Polymetallic dissemination - style mineralization |
| Triunfo Project | &nbsp;&nbsp;Bolivia | &nbsp;&nbsp;Sud Yungas | &nbsp;&nbsp;100% | &nbsp;&nbsp;256 Hectares | &nbsp;&nbsp;Fully permited with social permiss. | &nbsp;&nbsp;Exploration | &nbsp;&nbsp;Underground | &nbsp;&nbsp;Au Ag Zn Pb | &nbsp;&nbsp;Polymetallic vein-style mineralization |
| Ulaan Ovoo Property | &nbsp;&nbsp;Mongolia | &nbsp;&nbsp;Selenge province | &nbsp;&nbsp;100% | &nbsp;&nbsp;3 mining licenses covering 568.01 hectares | &nbsp;&nbsp;Fully Permitted | &nbsp;&nbsp;Operating | &nbsp;&nbsp;Open pit | &nbsp;&nbsp;Coal | &nbsp;&nbsp;Coal seam |

---

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Chandgana Project | &nbsp;&nbsp;Khentii province | &nbsp;&nbsp;100% | &nbsp;&nbsp;3 mining licenses covering 5,667.5 hectares | &nbsp;&nbsp;Fully Permitted | &nbsp;&nbsp;Feasibility study | &nbsp;&nbsp;Open pit | &nbsp;&nbsp;Coal | &nbsp;&nbsp;Coal seam |
| Titan &nbsp;&nbsp;Canada | &nbsp;&nbsp;Ontario | &nbsp;&nbsp;100% | &nbsp;&nbsp;1445 hectares, 3 unpatented<br>claims and 17 patented claims | &nbsp;&nbsp;Fully Permitted | &nbsp;&nbsp;Exploration | &nbsp;&nbsp;Open pit | &nbsp;&nbsp;vanadium-titanium-iron | &nbsp;&nbsp;Magnetite, ilmenite, titanium dioxide, and vanadium mineralization |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. Except as noted below, the Company is the operator of its projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

2. On September 7, 2020, the Company announced that it had entered into a binding sales and purchase agreement (the "Sunawayo SPA") with a private party (the "Sunawayo Vendor") to acquire the Sunawayo silver-lead mining project (the "Sunawayo Project"). Subject to the provisions of the Sunawayo SPA, the Sunawayo Vendor agreed to irrevocably transfer the mining rights of the Sunawayo Project to the Company for consideration of US$6,500,000, which payment consists of US$300,000 paid on execution of the Sunawayo SPA, with the remaining US$6,200,000 to be paid in cash over a one-year period in twelve equal monthly installments, starting March 1, 2021 During the year ended December 31, 2021, the Company suspended the Sunawayo property installment payments pending verification of the status of Sunawayo title and environmental permit (held by the Sunawayo Vendor) with authorities. The Company has notified the Sunawayo Vendor of their breach of certain disclosure representations in the Sunawayo SPA. To date, the Company has made one payment totaling US$300,000 and has no further contractual obligations unless it wishes to pursue the SPA further to acquire Sunawayo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

3. On July 13, 2020, the Company announced that it had entered into an agreement (the "Triunfo Agreement") with a private party (the "Triunfo Vendor") for the right to conduct mining exploration activities (the "Exploration Right") within the El Triunfo gold-silver-lead-zinc project in La Paz District, Bolivia (the "Triunfo Project") and the right, at the Company's election, to purchase the Triunfo Project for US$1,000,000 (the "Purchase Right") and together with the Exploration Right, the "Triunfo Rights"). The Purchase Right can be exercised at any time after the Triunfo Vendor completes the required Bolivian administrative procedures for the Triunfo Project until July 13, 2025 or such further period as the parties may agree. To secure the Triunfo Rights, the Company paid the Triunfo Vendor US$100,000 upon execution of the Triunfo Agreement. Until the Company exercises its Purchase Right, beginning in 2021 the Company must pay the Triunfo Vendor US$50,000 on June 15 of each year to maintain the Triunfo Rights. The Company may elect to terminate the Triunfo Agreement at any time. If the Company exercises the Purchase Right, the Triunfo Vendor will maintain up to a 5% interest of the profits, net of taxes and royalties, derived from the sale of concentrate produced from the Triunfo Project (the "Residual Interest"). On June 15, 2021, the Company paid US$50,000 to maintain their Purchase Right to the Triunfo Vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

4. The Company does not operate this property. On March 18, 2019, the Company announced that the Ulaan Ovoo Property had started up. The Company also reported that it had executed a lease agreement with an arms-length private Mongolian company (the "Mongolian Lessee") whereby the Mongolian Lessee performs mining operations at the Company's Ulaan Ovoo Property and will pay the Company $2 for every tonne of coal shipped from the Ulaan Ovoo site premises. The Mongolian Lessee is responsible for all capital and operating expenses, government taxes and royalties related to Ulaan Ovoo operation.

There are no identified mineral reserves or mineral resources on the Sunawayo Project, Triunfo Project, Ulaan Ovoo Property, Chandgana Project or Titan.

For more information on the Pulacayo Project in Bolivia, please see "Pulacayo Project, Bolivia" below.

**PULACAYO PROJECT, BOLIVIA**

The scientific and technical information in this section of this Annual Report that specifically relates to the current Pulacayo Project mineral resource estimates for the Pulacayo and Paca deposits has been extracted or summarized from the 2022 Pulacayo Technical Report. The 2022 Pulacayo Technical Report was prepared by Matthew Harrington, P.Geo., of Mercator Geological Services Limited, Michael Cullen, P.Geo. of Mercator Geological Services Limited and Osvaldo Arce, Ph.D., P. Geo., Independent Consultant. Additional information presented below that pertains to the Pulacayo Project but does not specifically appear in the 2022 Pulacayo Technical Report has been provided by the Company. None of the qualified persons who prepared the 2022 Pulacayo Technical Report at affiliates of the Company. The 2022 Pulacayo Technical Report is filed as Exhibit 15.1 to this report.

The discussion below includes the Pulacayo and Paca silver-lead-zinc deposits and related concessions located in Bolivia (the "Pulacayo Project").

------

On January 2, 2015, pursuant to the terms of the acquisition agreement entered into between the Company and Apogee Silver Ltd. ("**Apogee**") the Company acquired the Pulacayo Project through the acquisition of the issued and outstanding shares of ASC Holdings Limited and ASC Bolivia LDC, which together, hold the issued and outstanding shares of ASC Bolivia LDC Sucursal Bolivia. ASC Bolivia LDC Sucursal Bolivia controls the mining rights to the concessions through a separate joint venture agreement with the Pulacayo Ltda. Mining Cooperative (the "Pulacayo Mining Cooperative") who hold the mining rights through a lease agreement with state owned Mining Corporation of Bolivia, COMIBOL.

The Pulacayo Project mining rights are recognized by two legally independent contractual arrangements, one covering all, except Apuradita from the Pulacayo MPC between the Company and COMIBOL, a Bolivian state mining company, and the original holder of the rights, executed on October 3, 2019. The Pulacayo MPC grants the Company the 100% exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years against certain royalty payments. It is comparable to a mining license in Canada or the United States. In connection with Apuradita, its rights are covered by a second contractual arrangement, with the Bolivian Jurisdictional Mining Authority, acting for the State, which is in process of formalization, as a mean of recognition of the acquired rights to what was originally the mining concession. Until such time as the contract is formalized, all mining rights, as recognized in the Bolivian Mining Law 535, can be exercised by the holder of the ex-concession.

An independent valuation of the project was completed in March 2020 and indicated a valuation of approximately $25 million.

<u>Project Location</u>

The Pulacayo Project comprises seven mining areas covering an area of approximately 3,560 hectares of contiguous areas centered on the historical Pulacayo mine and town site. The Pulacayo Project is located 18 km east of the town of Uyuni in the Department of Potosí, in southwestern Bolivia. It is located 460 km south-southeast of the national capital of La Paz and 150 km southwest of the City of Potosí, which is the administrative capital of the department. The Pulacayo Project is fully permitted with secured social licenses for mining.

------

![](form20faxm009.jpg)

------

![](form20faxm010.jpg)

------

![](form20faxm011.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**NUMBER** | &nbsp;&nbsp;**LICENCE<br>No** | &nbsp;&nbsp;**NAME OF<br>LAND** | &nbsp;&nbsp;**SIZE,<br>HECTARE** | &nbsp;&nbsp;**COORDINATES<br>OF THE<br>CORNERS OF<br>THE LICENCE.** |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;512-03652 | &nbsp;&nbsp;**APURADITA** | &nbsp;&nbsp;750 | &nbsp;&nbsp;20°18'53.07" 66°40'57.04"<br>20°18'54.42" <br>66°42'39.86"<br>20°20'15.52" <br>66°42'38.69"<br>20°20'13.92" <br>66°40'54.99" |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;2 | &nbsp;&nbsp;512-00994 | &nbsp;&nbsp;**REAL DEL MONTE** | &nbsp;&nbsp;24 | &nbsp;&nbsp;20°19'35.79" 66°42'8.74"<br>20°19'56.42" 66°42'25.55"<br>20°20'2.30" 66°42'17.21"<br>20°19'41.63" 66°42'0.50" |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;512-00992 | &nbsp;&nbsp;**TEMERIDAD** | &nbsp;&nbsp;10 | &nbsp;&nbsp;20°19'46.28" 66°42'10.66"<br>20°19'41.29" 66°42'23.38"<br>20°19'48.78" 66°42'26.64"<br>20°19'53.73" 66°42'13.79" |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;512-01015 | &nbsp;&nbsp;**PULACAYO** | &nbsp;&nbsp;1031 | &nbsp;&nbsp;20°23'23.57'' 66°42'00.7''<br>20°22'31.45'' 66°42'12.33''<br>20°22'41.91'' 66°43'06.4''<br>20°21'44.55'' 66°43'18.66''<br>20°21'27.11'' 66°41'47.43''<br>20°20'48.87'' 66°41'55.05''<br>20°20'47.11'' 66°41'45.47''<br>20°21'31.50'' 66°41?35.92''<br>20°21'27.31'' 66°41'13.95''<br>20°22'12.03'' 66°41'04.42''<br>20°22'09.26'' 66°40'50.92''<br>20°22'47.49'' 66°40'42.72''<br>20°22'54.46'' 66°41'18.20''<br>20°23'16.50 66°41'13.42'' |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;5 | &nbsp;&nbsp;512-01165 | &nbsp;&nbsp;**PORVENIR** | &nbsp;&nbsp;1199 | &nbsp;&nbsp;20°21'44.55'' 66°43'18.66''<br>20°22'25.71'' 66°43'09.82''<br>20°22'48.37'' 66°45'08.09''<br>20°21'28.64'' 66°45'25.10''<br>20°20'48.87'' 66°41'55.58''<br>20°21'27.11'' 66°41'47.43'' |
| &nbsp;&nbsp;6 | &nbsp;&nbsp;512-03903 | &nbsp;&nbsp;**HUANCHACA** | &nbsp;&nbsp;470 | &nbsp;&nbsp;20°21'27.31'' 66°41'13.95''<br>20°21'18.24'' 66°40'26.65''<br>20°23'03.65'' 66°40'04.40''<br>20°23'16.50'' 66°41'13.42''<br>20°22'54.46'' 66°41'18.20''<br>20°22'47.49'' 66°40'42.72''<br>20°22'09.26'' 66°40'50.92''<br>20°22'12.03'' 66°41'04.42'' |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;7 | &nbsp;&nbsp;512-01160 | &nbsp;&nbsp;**GALERIA CENTRAL** | &nbsp;&nbsp;76 | &nbsp;&nbsp;20°22'31.78'' 66°41'23.61''<br>20°24'50.09'' 66°44'5663''<br>20°24'47.19'' 66°44'58.60''<br>20°22'28.88'' 66°41'25.17'' |

---

<u>Accessibility, Climate, Local Resources, Infrastructure and Physiography</u>

*Accessibility*

Bolivia is a landlocked country located in central South America and includes diverse geographic and climatic conditions that range from snow-capped peaks and high-altitude plateaus to vast, low-lying grasslands and rainforests. The country is normally accessible by international air travel from Miami (American Airlines), Mexico City, Brazil, Chile (LAN), Argentina and Peru (Taca Airlines). In addition, local Bolivian airlines fly regular internal flights between major cities, with several flights a week to a newly paved runway at Uyuni city, located 18 km south of the Pulacayo property.

The principal highways are generally paved, and heavy trucks and buses dominate road traffic outside of the major cities. For the most part, road freight service functions adequately even to small remote villages. The Pulacayo project is accessed from La Paz by means of a paved road, which runs to the area of Huari, passing through Oruro. It can also be accessed by the road between Oruro and Potosí and from Potosí to Uyuni by a good quality paved road. Paving of the road from Potosí to Uyuni began in 2007 and has now been completed to Potosi. Secondary roads can be best described as "tracks" and winding, single lane roads are often precariously carved out of steep slopes.

There is also a reasonably well-developed rail system with connections south to Argentina, east to Brazil and west to Chile and the port of Antofagasta. Rail service from Uyuni connects with Oruro, Atocha, Tupiza, and Villazon (on the border with Argentina). Uyuni is also connected by railway to Chile through Estación Abaroa. Disused rail lines exist between Uyuni-Potosí and Oruro-La Paz. The figure below presents major highway and rail routes of Bolivia relative to the Pulacayo project's location.

------

![](form20faxm012.jpg)

<u>Major Routes and Physiographic Regions in Bolivia</u>

*Climate and Physiography*

Two Andean mountain chains run through western Bolivia, with many peaks rising to elevations greater than 6,000 m above sea level. The western Cordillera Occidental Real forms Bolivia's western boundary with Peru and Chile, extending southeast from Lake Titicaca and then south across central Bolivia to join with the Cordillera Central along the country's southern border with Argentina. Between these two mountain chains is the Altiplano, a high flat plain system at elevations between 3,500 m and 4,000 m above sea level. East of the Cordillera Central a lower altitude region of rolling hills and fertile basins having a tropical climate occurs between elevations of 300 m and 400 m above sea level. To the north, the Andes adjoin tropical lowlands of Brazil's Amazon Basin.

Climate within Bolivia is altitude related. The rainy period lasts from November to March and corresponds with the southern hemisphere's summer season. Of the major cities, only Potosí receives regular snowfalls, with these typically occurring between February and April at the end of the rainy season. La Paz and Oruro occasionally receive light snow. On the Altiplano and in higher altitude areas, sub-zero temperatures are frequent at night throughout the year. Snow-capped peaks are present year-round at elevations greater than approximately 5,200 m.

The Pulacayo Project area is located immediately southwest of the Cosuño Caldera and local topographic relief is gentle to moderate, with elevations ranging between 4,000 m and 4,500 m above sea level. The Paca and Pulacayo volcanic domes are volcanic structures that exist as prominent topographic highs in this area. The area has a semi-arid climate, with annual rainfall of approximately 100 mm and a mean summer temperature of 12° C between October and March. During winter, minimum temperatures reach the -20 to -25° C range and summer maximums in the 18 to 20° C range occur in June and July. Yearly mean temperature is 5.5° C. Vegetation is sparse to non-existent and consists of only local low bushes.

*Local resources and Infrastructure*

Bolivia has a long history as a significant primary producer of silver and tin, with associated secondary production of gold, copper, antimony, bismuth, tungsten, sulphur and iron. The country also contains sizeable reserves of natural gas that have not been fully developed to date due to export issues and limited access to required infrastructure.

The country has an abundance of hydroelectric power and transmission lines which parallel the road system provide service to most major settlements. Remote villages generally have diesel generators which run infrequently during evening hours. Transmission lines from the hydroelectric plants of Landara, Punutuma, and Yura that were reconditioned by a joint venture between COMIBOL and the Valle Hermoso Electrical Company pass within a few kilometers of Pulacayo.

------

Telephone service and internet access are available in most areas and cellular telephone service is widespread. However, coverage is not complete and international connectivity is not ensured. Local communication services in the area are good and consist of an ENTEL-based long-distance telephone service, a GSM signal for cell phones and two antennae for reception and transmission of signals from national television stations. Apogee installed a satellite receiver to provide internet access for its operation and this service is shared with the Pulacayo Mining Cooperative. An adequate supply of potable water for the town is supplied by pipeline from a dam and reservoir (Yana Pollera) facility located 28 km from Pulacayo in the Cerro Cosuño.

Coeur d'Alene Mines Corporation (San Bartolome), Pan American Silver Ltd. (San Vicente), Glencore International plc (Sinchi Wayra) and Sumitomo Corporation (San Cristóbal) are significant international companies with producing mines in this region in recent years. Basic exploration services are available in Bolivia and include several small diamond core drilling contractors, the ALS Group, which operates an analytical services sample preparation facility in Oruro, the SGS Group, which has analytical services and preparation facilities in La Paz, and several locally owned assay facilities. The Bolivian National School of Engineering operates a technical college in Oruro (Universidad Técnica de Oruro) that includes a mineral processing department and laboratory facilities that provide commercial services to the mining industry. In general, an adequate supply of junior to intermediate level geologists, metallurgists, mining engineers and chemists is currently considered to be present in the country.

Since down-sizing of site operations at Pulacayo by Apogee in 2013-2014, the population of the community has dropped to approximately 300 to 400 permanent residents, many of whom are associated with the Pulacayo Mining Cooperative. The village has a state-run school and medical services are provided by the state's Caja Nacional de Seguros (National Insurance Fund). A hospital and clinic function independently. Numerous dwellings and mining related buildings in Pulacayo are owned by COMIBOL and some of these have been donated to the Pulacayo Mining Cooperative. Under terms of the Shared Risk Contract, COMIBOL makes some mining infrastructure available for use by the Company.

*Property*

Ownership of the Pulacayo Project properties was completed through a number of joint venture agreements. Apogee Minerals Ltd. (renamed "Apogee Silver Ltd." in March 2011) controlled 100% of the Pulacayo Project through an agreement with Golden Minerals Company ("GMC"), the successor of Apex Silver Company before its acquisition by us. GMC's former Bolivian subsidiary, ASC Bolivia LDC Sucursal Bolivia ("ASC"), holds the mining rights to the concessions through a joint venture with the Pulacayo Mining Cooperative, which in turn has a lease agreement with COMIBOL, the state mining corporation of Bolivia. On January 21, 2011, Apogee entered into a definitive agreement with GMC to acquire all of the issued share capital of ASC, which holds a 100% interest in the Pulacayo Project. Pursuant to the applicable agreement, Apogee acquired all of the issued and outstanding shares of the subsidiary from GMC in consideration for Common Shares of Apogee upon closing of the transaction, and an additional block of Common Shares and a cash fee eighteen (18) months following closing of the transaction. In January 2015, Prophecy Coal Corp. (predecessor to the Company) completed a purchase of Apogee Minerals Bolivia S.A., ASC Holdings Limited and ASC Bolivia LDC (which hold ASC, the holder of Apogee's mining joint venture interest in the Pulacayo Project) (collectively, the "Apogee Subsidiaries") and thus Apogee's interest in the mining joint venture. The term of the joint venture agreement is 23 years and started on July 30, 2002. ASC Bolivia LDC is committed to pay to COMIBOL USD$1,000 during the exploration period. During the mining period, ASC Bolivia LDC will pay COMIBOL the equivalent of 2.5% of the Net Smelter Return ("**NSR**") and 1.5% of the NSR to the Pulacayo Mining Cooperative. On September 1, 2016, the Bolivian government issued Supreme Decree N° 2891 which was confirmed by Law N° 845 dated October 24, 2016. Both regulations revert to the domain of the State, areas over which joint venture agreements, lease or sub-lease agreements have been executed between mining cooperatives and private local or foreign companies, in order to convert such agreements into mining production contracts between the private parties to such agreements and the government. This affects our Pulacayo Joint Venture Agreement. We submitted the required application on December 22, 2016. On October 2, 2019, a new Mining Production Contract (replacing the Joint Venture Agreement) was executed between Apogee Minerals Bolivia S.A. (a subsidiary of the Company) and the state-owned Bolivian Mining Corporation (COMIBOL). The term is 15 years and subject to renewal for another 15 years (total 30 years). COMIBOL is entitled to receive 7% of the Gross Sales Value. No monthly fee payable to COMIBOL has been agreed to.

The current holdings that comprise the Pulacayo Project cover 3,560 ha of surface area and are listed in the table below. All titles, associated agreement and permits are in good standing.

PULACAYO PROJECT EXPLORATION HOLDINGS

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **c** | **Titleholder** | **Size (ha)** | **Patents Payment** | **Registration Number** | **Location** |
| Pulacayo | COMIBOL | 1031 | Payment is not required\* | 512-01015 | Pulacayo |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Porvenir | COMIBOL | 1199 | Payment is not required\* | 512-01165 | Pulacayo |
| Huanchaca | COMIBOL | 470 | Payment is not required\* | 512-03903 | Pulacayo |
| Galería General | COMIBOL | 76 | Payment is not required\* | 512-01160 | Pulacayo |
| **Subtotal** |  | **2776** |  |  |  |
| Temeridad | COMIBOL | 10 | Payment is not required\* | 512-00992 | Paca |
| Real del Monte | COMIBOL | 24 | Payment is not required\* | 512-00994 | Paca |
| Apuradita | ASC Bolivia LDC | 750 | 2017 | 512-03652 | Paca |
| **Subtotal** |  | **784** |  |  |  |
| **Grand Total** |  | **3560** |  |  |  |

---

*\* Special Transitory Authorization - formerly mining concession*

*History of Production*

The Pulacayo area has a very long history of exploration and mining, with this dominated by the Pulacayo deposit itself, where most work has been concentrated on mineralized systems that comprise the TVS and related systems. In contrast, the history of Paca deposit exploration forms a relatively small part of the long-term exploration and mining history of the area. Exploration and related studies carried out since 2001 by Apogee and related firms form the bulk of modern era work completed in the Pulacayo Project area and include over 91,900 m of core drilling, completion of a feasibility study in 2012 and several mineral resource estimates prepared in accordance with NI 43-101.

Mining of silver deposits at the Pulacayo Project area began in the Spanish Colonial Period (c.1545) but early production details do not exist. The first work formally recorded on the property was carried out in 1833 when Mariano Ramírez rediscovered the Pulacayo deposit. In 1857 Aniceto Arce founded the Huanchaca Mining Company of Bolivia and subsequently pursued development and production at Pulacayo. Revenue from the mine funded the first railway line in Bolivia, which in 1888 connected Pulacayo to the port of Antofagasta, Chile. In 1891, reported annual silver production reached 5.7 million ounces and mining operations at Pulacayo at that time were the second largest in Bolivia. Pulacayo production was predominantly from the Veta TVS which had been defined along a strike length of 2.5 km and to a depth of more than 1000 m. In 1923, mining operation ceased due to flooding of the main working levels.

In 1927, Mauricio Hochschild bought the property and re-started mine development. The Veta Cuatro vein was the focus of this work and was intersected at a mine elevation of approximately -266 m. It was proven to continue down-dip to the -776 m elevation where it showed a strike length of 750 m. Several short adits were also established during the Hochschild period at Paca to test a mineralized volcanic conglomeratic unit that outcrops in the deposit area. Work by Hochschild in the district continued until 1952 when the Bolivian government nationalized the mines and administration of the Pulacayo deposit and management was assumed by COMIBOL. Operations continued under COMIBOL until closure in 1959 due to exhaustion of reserves and rising costs. The total production from the Pulacayo mine is estimated by the National Geological and Mineral Service of Bolivia to be 678 million ounces of silver, 200,000 tons of zinc and 200,000 tons of lead (National Geological and Mineral Service of Bolivia Bulletin No. 30, 2002, after Mignon 1989).

In 1956, COMIBOL established the Esmeralda adit that was driven south into the Paca deposit to assess breccia hosted high grade mineralization localized along the andesite-host sequence contact. A total of approximately 250 m of drifting and cross cutting was carried out within the main mineralized zone, distributed between the main adit level and short sub-levels above and below the main level. Workings were established for exploration purposes only and commercial production was not undertaken by COMIBOL.

In 1962, the Pulacayo Mining Cooperative was founded and this local group leased access to the Pulacayo mine from COMIBOL. The Pulacayo Mining Cooperative has carried out small scale mining in the district since that time and continues to do so at present. Efforts are directed toward exploitation of narrow, very high-grade silver mineralization in upper levels of the old mining workings, typically above the San Leon tunnel level.

Modern exploration of the Pulacayo and Paca areas began to a limited degree in the 1980's when various mining and exploration companies targeted epithermal silver and gold mineralization within the volcanic-intrusive system present in the area. In 2001, ASC initiated an exploration program in the district, signed agreements with the Pulacayo Mining Cooperative and COMIBOL and completed programs of regional and detailed geological mapping, topographic surveying and sampling of historical workings. In part, these work programs included the Paca deposit, where 3,130 m of core drilling and 896 m of reverse circulation (RC) drilling were completed, and a mineral resource estimate was prepared. ASC also completed core drilling campaigns at Pulacayo.

------

In 2005 Apogee signed a joint venture agreement with ASC and subsequently commenced exploration in the region in early 2006. Extensive exploration, economic evaluation, metallurgical studies, mine and mill permitting environmental studies and underground test mining programs were subsequently carried out by Apogee between 2006 and 2015 when the Pulacayo Project was purchased by the Company's precursor, Prophecy Development Corp. (Prophecy). Work was carried out on both the Pulacayo and Paca deposits during this period, with emphasis placed on Pulacayo. Combined results of the ASC and Apogee diamond drilling programs carried out between 2002 and 2012 contributed to the several mineral resource estimates prepared in accordance with NI 43-101 and the CIM Standards in place at the time, and also supported a 2013 Feasibility Study focused on underground mining. Since 2001, ASC and Apogee completed 88,596 m of drilling from surface and underground on the Pulacayo Project, with Apogee programs accounting for 79,129 m of this total.

<u>Geological Setting</u>

*Geology*

The Pulacayo Project that includes both the Pulacayo and Paca deposits is located on the western flank of a regional anticline that affects sedimentary and igneous rocks of Silurian, Tertiary and Quaternary ages on the western side of the Cordillera Oriental, near the Cordillera-Altiplano boundary. The Uyuni-Khenayani Fault is a reverse fault that crosses the project area and is believed to have controlled localization of volcanic center complexes at Cuzco, Cosuño, Pulacayo and San Cristóbal and related mineralized areas at Pulacayo, Cosuño, El Asiento, Carguaycollu and San Cristóbal. This fault brings Tertiary sediments in contact with Paleozoic formations at surface and is located about 4 km west of Pulacayo. The Pulacayo Project mineralized zones at Pulacayo, Pacamayo and Paca all occur on the west flank of a north-south striking anticline and local topographic highs define Lower Miocene dacitic-andesitic domes and stocks associated with caldera resurgence that intrude the folded section. A younger Miocene-Pliocene phase of volcanism is also superimposed on the anticlinal trend and is marked by pyroclastic deposits and flows of andesitic and rhyolitic composition. Ignimbrites associated with the Cosuño Caldera are the youngest volcanic deposits in the area. A dacitic to andesitic dome complex at the Pulacayo Property intruded the folded sedimentary section and forms the main topographic highs that occur on the property.

*Exploration*

The Company has completed various geological mapping and surface sampling programs over several areas of mineralization on the Pulacayo Project starting in 2015 and continuing over the years into 2021. Recent exploration activities completed by the Company include a geological mapping and chip sample program completed in February 2020 for the Paca area and a San Leon Tunnel geological mapping and chip sample program completed in February-March of 2020. The Company also carried out a 3,277.4 m core drilling program in late 2019 and early 2020. A 545-meter drilling program at the Paca deposit was completed in October, 2020. A 940-meter drilling program was commenced at the eastern side of the Pulacayo deposit in an area known as "Pero" in December 2020, and completed in January 2021.

*Drilling*

Apogee commissioned a topographic survey of the Pulacayo and Paca areas in 2006 to provide a topographic base map for use in establishing road access, geological mapping and surface sampling, and locating drill collars and geophysical lines. A surface mapping and sampling program was done during 2005 and initially utilized the ASC preliminary geological maps. The company completed detailed surface mapping that covered all the exploration licenses. The sampling consisted mostly of rock chip samples taken from outcrops and accessible underground mine workings for a total of 549 samples. During 2006 Apogee also commissioned a detailed, three-dimensional digital model of the historic underground mine workings. The model was subsequently modified by Apogee to conform to the current datum and adjusted to align with the +1% incline grade of the San Leon tunnel. An induced polarization (IP) geophysical survey was carried out by Apogee between November and December 2007. A total of 29-line km of IP surveying was completed on the Pulacayo Project including seven lines at Pulacayo oriented north-south perpendicular to the east-west strike of the TVS and five similarly oriented survey lines at Paca.

Following the acquisition of the Pulacayo Project, Apogee initiated a diamond core exploration drill program that consisted of 19 holes. During 2007-2008 Apogee focused on the Paca deposit and completed 68 drill holes in two programs with 14 completed during November 2007 and 54 holes completed during 2008. Subsequent drilling occurred during June 2009, between November 2010 and December 2011, and between August 2011 and June 2012. Overall core recovery reported by Apogee exceeds 90% in most cases though proximity to old mine workings reduces the recovery potential due to associated bedrock instability. Particular attention was paid to the planning and documentation of drill holes. Planning is based on the logging and interpretation of geological cross sections generated by Apogee staff geologists. Drill hole coordinates are established from digital maps and surface drill hole collars are located on the ground by field geologists using a hand-held GPS receiver. The completed drill hole is later surveyed by company surveyors. Drill hole azimuth and inclination are established using a compass and clinometer. Collar coordinates for underground drilling are established by company surveyors and hole azimuth and inclination are set by transit. Downhole deviation is determined for both surface and underground holes at approximately 50 m intervals using down hole survey tools.

------

Work during 2015 included mapping, sampling, assays and metallurgical tests under Phase 2 of the exploration plan, planning for Phase 2 (geophysics, drilling and assays), and preparation and submittal of the permit application for Phase 2. The exploration centered on assessing the historical tailings piles and potential mineralized areas suggested by historical exploration. On February 2, 2015, the Company announced the assay results received January 22, 2015 from ALS Minerals Ltda., for samples obtained during the reconnaissance sampling program of tailings piles materials. The tailings piles are the remaining materials from processing ore, extracted from the Pulacayo mining district between approximately 1850 and 1950. The ore was processed by a mill on site which has since been dismantled.

A total of 12 tailings piles were identified at the start of the mapping and sampling program and a total of 299 samples from the 12 tailings piles were obtained. Samples were obtained at random locations on the top surface of those piles from small holes excavated with an excavator and systematically at 2-meter spacings in the walls (slopes) of the piles from hand dug or excavated trenches, all at depths of 1.2 to 1.5 meters. The samples were then preserved, stored, secured, and transported following industry standard methods. The assay program was performed by ALS Minerals Ltda. of Lima, Perú and included standard Quality Assurance and Quality Control (QA/QC) samples to enforce the validity of the results. The results indicate silver grades up to 1200 g/t, gold grades up to 7 g/t and indium grades up to 154.5 g/t. On September 10, 2015, the Company reported results from preliminary metallurgical test work conducted on samples collected from various tailing piles at the Pulacayo Project showing up to 64.39% silver recovery.

Surface mapping and sampling was completed during June to August 2015 on four potential mineralized areas (El Abra, Pero, Paca, and Pacamayo). The sampling included close spaced grab and chip samples obtained systematically where the trend of the mineralization is apparent or in historic mine adits and random spot sampling where the trend is not apparent. The samples were obtained through the aid of trenching to allow sampling of fresher material, where possible. The samples were then preserved, stored, secured, and transported following industry standard methods. The assay program was performed by ALS Minerals Ltda. and included standard QA/QC samples to enforce the validity of the results. On August 27, 2015 and September 9, 2015, the Company announced assay results of the first and second group of samples from the potential mineralized areas at the district exploration program. On September 18, 2015, the Company announced the assay results of the three Pacamayo samples where the silver grade was reported as more than 1,500 g/t. These samples have undergone reanalysis using the fire assay and gravimetric finish method which has a greater upper detection limit.

An exploration permit application was submitted during early 2015. The exploration permit would allow geophysical work to complete Phase 1 then after review of the Phase 1 information and previous exploration information and planning, completion of Phase 2.

Planning and budgeting for exploration to prove the planned stopes in the internally developed mining plans was completed. This exploration plan included in-mine drilling and mining new drivages to explore new areas, mapping of existing exposures and new drivages, sampling of existing exposures, new drivages, and drill core for laboratory analysis and metallurgical testing.

*Summary of Modern Era Drilling*

The Company initiated a 7-hole surface diamond drill program at the Paca deposit in September of 2019 and completed the program in October of 2019. Seven holes were completed for a total of 860 m. The Company also initiated surface drilling at the Pulacayo deposit in December of 2019 and concluded in February of 2020. A total of 3,277.4 meters of drilling was completed in 18 drillholes. Results of the 2019-2020 were included in the current mineral resource estimation program and contribute to 91,873 m of drilling combined for both deposits, the balance of which was completed by ASC and Apogee during the 2002 to 2012 period. Through 2021, 1,972m of drilling was completed at Pulacayo testing numerous induced polarization anomalies identified on the property.

*Mineralization*

Mineralization comprising the current Pulacayo deposit mineral resource estimate is defined by the extent of modern-era diamond core drilling along the TVS in the vicinity of historic underground workings. The workings extend over a strike length of approximately 2.7 km and to a vertical depth from surface of about 1 km. Modern drilling coverage is present for approximately 1.5 km of the known deposit strike length and extends to a vertical depth of approximately 550 m below surface.

The extent of mineralization comprising the current Paca deposit mineral resource estimate is defined by the extent of modern era diamond core drilling along a strike length of approximately 750 m and north-south extent of approximately 700 m. Limited underground exploratory workings accessible from the Esmeralda adit are present along approximately 100 m of the deposit's strike length in its central area.

Mineralization of economic interest at the Pulacayo deposit occurs within the Tertiary age Pulacayo volcanic dome complex that consists of older sedimentary rocks of the Silurian Quenhua Formation plus intruding andesitic volcanic rocks of the Rotchild and Megacristal units. Mineralization hosted by volcanic rocks can occur over tens of meters in thickness and typically consists of discrete veins plus stockworks of narrow veins and veinlets that occur within argillic alteration host rock envelopes. At deeper levels, high grade veins that are typically less than a few meters in width are hosted by sedimentary lithologies. Veins are commonly banded in texture and can contain semi-massive to massive sulphides. Primary minerals of economic importance at Pulacayo are tetrahedrite, galena and sphalerite, with additional silver sulfosalts and native silver also contributing to deposit silver grades. Mineralization is controlled by an east-west oriented normal fault system that links two northeast trending, steeply dipping, regional strike slip faults.

------

Mineralization of economic interest at the Paca deposit occurs in association with the same Tertiary age volcanic dome complex that produced the Pulacayo deposit and takes the form of thin veinlets, fracture fillings and disseminations hosted by altered volcaniclastic sedimentary lithologies and altered intermediate to felsic igneous lithologies. These occur in direct association with mineralized igneous or hydrothermal breccia zones. The intensity of argillic alteration is greatest in areas of highest concentrations of metallic mineral phases such as sphalerite, galena, argentite and tetrahedrite. Stratabound disseminated mineralization and breccia hosted mineralization predominate within the deposit, but discrete mineralized veins are also present locally. The deposit occurs at the contact between an andesitic intrusive complex and volcaniclastic sedimentary host lithologies. Bedded and cross-cutting breccia deposits that are important hosts to higher-grade mineralization commonly show close spatial association with the contact zone of the andesitic intrusion.

*Deposit Type*

The Pulacayo and Paca deposits are interpreted to be low to transitional sulphidation epithermal deposits that contain both precious and base metal mineralization.

*Sampling*

The core is initially examined by core technicians and all measurements are confirmed. Core is aligned and repositioned in the core box where possible and individual depth marks are recorded at 1 m intervals on the core box walls. Core technicians photograph all core, measure core recovery between core depth blocks, complete magnetic susceptibility readings and specific gravity measurements, and record the information on hard copy data record sheets. This information is initially entered into Excel digital spreadsheets and then incorporated into the project digital database. Drill site geologists then complete a written quick log of rock types along with a graphical strip log that illustrates the rock types. They subsequently complete a detailed written description of rock types, alteration styles and intensities, structural features, and mineralization features. The drill hole logs are drawn on paper cross sections when logging is completed and lithologies are graphically correlated from drill hole to drill hole. Mineralized intervals are marked for sampling by the logging geologist using colored grease pencils and the depths of the intervals and associated sample numbers are recorded on a hardcopy sample record sheet. All paper copy information for each hole, including quick logs, detailed logs, graphical logs, sample record sheets and assay certificates are secured together in a drill hole file folder to provide a complete archival record for each drill hole. Subsequent to logging and processing, down hole litho-coded intervals, sample intervals and drill hole collar and survey information are entered into digital spreadsheets and then incorporated into the project digital database. The sample intervals marked by the logging geologist are cut in half by the core technicians using a diamond saw. Friable core is cut in half with a knife. Each half core sample is assigned a unique sample tag and number and placed in a correspondingly numbered 6 mil plastic sample bag. A duplicate tag showing the same number is secured to the core box at the indicated sample interval. All sample intervals and corresponding numbers are recorded on a hardcopy sample data sheet and are subsequently entered into a digital spreadsheet for later incorporation in the project database. The secured 6 mil plastic sample bags are grouped in batches of 6 to 10 samples and secured in a larger plastic mesh bag in preparation for shipment to the laboratory.

Drill site procedures pertinent to the ASC drilling were confirmed by Apogee staff familiar with the ASC program to be generally similar to those employed by Apogee with respect to core logging and sampling. All ASC drill core samples were processed at the Oruro, Bolivia laboratory of ALS Chemex (formerly Bondar-Clegg), with those from the first phase of drilling being analyzed at ALS Chemex facilities in Vancouver, BC, Canada. In both instances, standard core preparation methods were used prior to elemental analysis.

*Security of Samples*

Apogee staff was responsible for transport of core boxes by pick-up truck from drill sites to the company's locked and secure core storage and logging facility located in the town of Pulacayo. The secured 6 mil plastic sample bags are grouped in batches of 6 to 10 samples and secured in a larger plastic mesh bag in preparation for shipment to the ALS Chemex preparation laboratory located in Oruro, Bolivia. All bagged samples remained in a locked storage facility until shipment to the laboratory. Samples are transported from the core storage area to the ALS Chemex facility by either Apogee personnel or a reputable commercial carrier. Sample shipment forms are used to list all samples in each shipment and laboratory personnel crosscheck samples received against this list and report any irregularities by fax or email to Apogee. Apogee did not encounter any substantial issues with respect to sample processing, delivery or security for the Pulacayo drilling programs. The transport and security of samples pertinent to the ASC drilling were confirmed by the then Apogee staff familiar with the ASC program to be generally similar to those employed by the following drilling programs. The security of Paca exploration samples followed the same procedures.

------

*Sample Preparation, Analysis and Quality Assurance/Quality Control*

All drill core samples from the ASC 2002 and 2003 drilling programs were processed at the Oruro, Bolivia laboratory of ALS Chemex, with those from the first phase of drilling being analyzed at ALS Chemex facilities in Vancouver, BC, Canada. In both instances, standard core preparation methods were used prior to elemental analysis. During the 2006 to 2012 Apogee drilling programs Apogee staff carried out immersion method specific gravity determinations but did not carry out any form of direct sample preparation or analytical work on project samples. Analytical work was completed by ALS Minerals Ltda. at its analytical facility in Lima, Peru after completion of sample preparation procedures at the ALS facility located in Oruro, Bolivia. ALS was at the time and remains an internationally accredited laboratory with National Association of Testing Authorities certification and also complies with standards of International Organization for Standardization (ISO) 9001:2000 and ISO 17025:1999. The laboratory utilizes industry standard analytical methodology and utilizes rigorous internal QA/QC procedures for self-testing. Samples from the ASC drilling programs carried out in 2002 and 2003 were also prepared and analyzed by ALS. However, after preparation at the facility in Oruro, Bolivia under the same protocols as for Apogee, analytical work was carried out at the company's laboratory in Vancouver, BC, Canada. This facility was fully accredited at the time and analytical protocols were the same as those described above for Apogee.

Apogee developed an internal QA/QC program that includes blind insertion of reference standards, blanks and duplicates in each analytical shipment that was used for the 2006 to 2012 drilling programs. A blank is inserted at the beginning of each sample batch, standards are inserted at random intervals throughout each batch of 50 samples and duplicates are analyzed at the end of each batch. All data gathered for QA/QC purposes is captured, sorted and retained in the QA/QC database. The QA/QC samples include commercial reference standards, an in-house standard, and commercial prepared blank materials. Coarse field blanks were also prepared by Apogee. Analysis of duplicate samples of quarter core is accommodated through their blind inclusion in the sample stream and analysis of duplicate prepared pulp splits are also requested for each batch. Apogee's protocol also includes a check sampling program based on analysis of sample splits at a second accredited laboratory. Bulk density measurements (specific gravity) were systematically collected by Apogee staff using standard water immersion methods and unsealed core samples. Characteristics of lithology and alteration were also recorded as part of the density program and all information was assembled in digital spreadsheets.

QA/QC procedures pertinent to the ASC 2002-2003 drilling programs were not documented. However, the first drilling program carried out by Apogee in 2006 was intended to confirm earlier ASC analytical data. Full QA/QC protocols instituted by Apogee were applied to this program and results of the Apogee re-drill program correlate well with those of ASC suggesting that acceptable standards were being met by ASC. Though preparation, analysis, and QA/QC procedures were not documented for the early ASC drilling on Paca, the results of the 2006 re-drill program and check sampling by Mercator during 2015 were comparable and suggests acceptable procedures were followed for the Paca deposit samples. Sampling from later drilling at Paca followed Apogee's QA/QC procedures described above. Bulk density measurements were also obtained.

The authors of the Pulacayo Technical Report visited the Pulacayo Project site on three occasions to support preparation of previous mineral resource estimates and one other visit was conducted in September of 2020 in support of the current mineral resource estimates and associated technical reporting. Results of data verification activities carried out by the authors of the Pulacayo Technical Report and site visits show that Pulacayo Project datasets are of industry standard quality and suitable to support mineral resource estimation programs.

*Data Verification*

Core sample records, lithologic logs, laboratory reports and associated drill hole information for all drill programs completed by Apogee and ASC were digitally compiled by Apogee staff. Information pertaining to the exploration history in the property area was also compiled by Apogee and was reviewed to assess consistency and validity of Apogee results. The digital drill hole records compiled by Apogee were checked in detail against the parameters (collar data, down hole survey values, hole depths, lithocodes) of the original hard copy source documents to assess consistency and accuracy. This was followed by review and validation of approximately 10% of the compiled core sample dataset against original source documents. Review of logging and sample records showed consistently good agreement between original records and digital database values. The drilling and sampling database records were further assessed through digital error identification methods available through the Gemcom-Surpac Version 6.2.1® software for such errors as sample record duplications, end of hole errors, survey and collar file inconsistencies and some potential lithocode file errors. The digital review and import of the manually checked datasets through Surpac provided a validated Microsoft Access® database that is considered to be acceptable for resource estimation.

Apogee hosted two site visits by experts for review of procedures and verification of conditions and work programs. The first during August 2011 included review of drilling program components, core check sampling, verification of drill hole locations, and discussion with Apogee staff and consultants. The experts determined that, to the extent reviewed during the visit, evidence of work programs carried out to date on the property is consistent with descriptions reported by the company and that procedures employed by Apogee staff are consistent with current industry standards and of good quality. The second site visit occurred during April 2012 and included additional review of on-going drilling and resource estimation program work pertaining to oxide zone mineralization. The experts determined their drill hole coordinates compared well with Apogee's coordinates and reasonable correlation exists between the original sample analyses and the check sample analyses.

------

The data verification performed for the Paca deposit was similar to that for the Pulacayo deposit described previously. Micon International Limited of Toronto, Canada, considered the field standard used by Apogee in its QA/QC program to be unacceptable and suggested use of a commercial standard or an in-house standard supported by industry best practices.

The authors of the Pulacayo Technical Report visited the Pulacayo Project site on three occasions to support preparation of previous mineral resource estimates and one other visit was conducted in September of 2020 in support of the current mineral resource estimates and associated technical reporting. Results of data verification activities carried out by the authors of the Pulacayo Technical Report and site visits show that Pulacayo Project datasets are of industry standard quality and suitable to support mineral resource estimation programs.

*Mineral Processing and Metallurgical Testing*

To date, four metallurgical test programs were completed by outside experts. These programs include: Resource Development Inc., Denver, USA in 2003, UTO (Universidad Técnica de Oruro), Oruro, La Paz, Bolivia in 2009, ED&ED Ingeniería y Servicios S.A.C. (which we refer to as "ED&ED"), Lima, Peru in 2011, and UTO and Maelgwyn Mineral Services Laboratory in South Africa during 2012. A fifth program was managed by Apogee where bulk samples from trial mining were sent to local concentrators.

During 2003, Resource Development Inc. tested 120 kg of core sample from two drill holes. Preliminary metallurgical test work was performed to evaluate the silver and sulfide base metals recovery potential including in-place densities, feed characterization, mineralogy, leaching, gravity concentration, and bench-scale open circuit and locked cycle tests (LCT's). Silver minerals were found not to be amenable to leaching by NaCN or gravity concentration. Grinding test data determined the time required to achieve a P80 of 150 # (104 μm) was 20 minutes. Bench scale open circuit flotation tests (OCT's) were performed using the flotation reagent suite developed for the San Cristobal Project. The overall silver recovery in the lead rougher concentrates was 97.1%. The lead cleaner concentrate recovered 2.8% of the weight, 84.6% of lead, 3.1% of zinc and 46.9% of silver. The lead concentrate assayed 60.8% Pb, 4.22% Zn and 8,440 g/t Ag. The zinc cleaner concentrate recovered 7.8% of weight, 1.3% of lead, 84.7% of zinc and 38.8% Ag. The concentrate assayed 0.324% Pb, 41.2% Zn and 2,463 g/t Ag. Large scale two cycle locked cycle flotation tests were performed using the process flowsheet similar to that developed for San Cristobal deposit. The lead concentrate assaying 62.2% Pb, 4.46% Zn and 10,891 g/t Ag, recovered 3.1% weight, 88.8% of lead, 3.9% of zinc and 63.4% of silver. The zinc concentrate assayed 61.5% Zn, 0.9% Pb and 3,303 g/t Ag, recovered 5% weight, 87.6% of zinc, 2.1% of lead and 31.3% of silver. The tailings were very difficult to settle due to high proportions of clay in the ore, which will impact the process flow sheet and overall plant design. The lead and zinc third cleaner concentrates were analyzed for impurities and found that penalties may be incurred on the concentrates for several impurities.

UTO conducted a metallurgical test program during 2009 on three samples comprising comminution (only Bond Ball Work Index), OCT's, LCT's, OCT tailings (non-float) size by size analyses, and OCT tailings (non-float) sedimentation tests. Clay mineralogy studies were not carried out to determine the presence of clays that may produce very fine slimes though during the test work, slimes were produced affecting the flotation performance, settling of tailings, and flotation pulp rheology. The samples were drill cores composited to represent a higher grade, a medium grade, and a lower grade. Comminution was evaluated using the Bond Ball Mill Work Index test and categorized the samples as medium to hard. Abrasion index, crushing work index, and rod work index tests were not performed. Specific gravity tests were performed. Flotation test work focused on lead and silver recovery using both batch open circuit and closed circuit flotation tests. Locked cycle tests of the high-grade sample indicated that conventional selective lead-silver and zinc-silver flotation techniques recovered 56% of the silver in the lead concentrate and 27% of the silver in the zinc concentrate with lead recovery of 79% and zinc recovery of 81%. Silver grades were 6,620 g/t in the lead concentrate and 2,010 g/t in the zinc concentrate. LCT test results of the medium grade sample indicated that it is possible to recover almost 34% of the silver in the lead concentrate and 50% of the silver in the zinc concentrate, with lead and zinc grades at 51% and 58%, lead and zinc recoveries at 74% and 83%, and silver grades at 6,220 g/t and 2,990 g/t. LCT test results of the low-grade sample indicated that it is possible to recover almost 30% of the silver in the lead concentrate and 21% of the silver in the zinc concentrate, with lead and zinc grades at 51% and 58%, lead and zinc recoveries at 74% and 83%, and silver grades at 6,220 g/t and 2,990 g/t, respectively. The results seem to be reasonable and in accordance with expectations from the mineralogy of the ore. These results constitute the design basis for the flow sheet. Full OCT's of sulphide minerals flotation were conducted initially on each sample as a proof of concept of the overall circuit and to establish a workable set of flotation conditions and reagents. These tests demonstrated that sulphide flotation to saleable lead and zinc concentrates at acceptable (for batch tests) recoveries was possible.

During 2011, the laboratory facility of ED&ED, performed a series of flotation tests and contracted mineralogical analyses on a high grade and low-grade sample. The initial ED&ED flotation test work was not successful then after pre-conditioning the samples with activated carbon and subsequent differential flotation, was moderately successful. The minerals present included sphalerite, galena, pyrite and quartzite gangue with galena-sphalerite assemblages (intertwined specimens) present to some extent. Twelve (12) OCT's were conducted on each of the samples to confirm the previous flotation results by UTO and to evaluate the effect of flotation response at finer grind sizes as seen in the flowcharts. The flotation tests carried out on the high-grade samples indicated that it is possible to obtain commercial lead and zinc concentrates with grades of lead and zinc of 42.1% and 43%, respectively. The concentration of silver in the lead and zinc concentrates were reported as 7,010 g/t and 198.2 g/t, respectively. The straightforward conventional selective lead-silver and zinc-silver flotation techniques after carbon pre-treatment are able to recover 85.7% of silver in the lead concentrate (with a mass pull of 3.1%) and 2.93% of silver in the zinc concentrate (with a mass pull of 3.75%). The lead and zinc recoveries are estimated as 80% and 77.8%, respectively. The flotation tests, carried out on the low-grade samples indicated that it is possible to obtain commercial lead and zinc concentrates with grades of lead and zinc of 41% and 43.1%, respectively. The concentration of silver in the lead and zinc concentrates were reported as 6,734 g/t and 207 g/t, respectively. The straightforward conventional selective lead-silver and zinc-silver flotation techniques after carbon pre-treatment are able to recover 74% of silver in the lead concentrate (with a mass pull of 1.95%) and 3.27% of silver in the zinc concentrate (with a mass pull of 2.8%). The lead and zinc recoveries are estimated as 77.6% and 71.9%, respectively. In overall, better flotation (open circuit tests) performances are obtained at a grind size of P80 of 74 μm. Locked cycle tests at this grind size will be necessary to confirm these results. A set of paste thickening tests were run on dry samples of the flotation test (tailings) to investigate the performance of the FLSmidth Deep Cone Paste thickening technology. Screening flocculent tests were carried out. Anionic flocculent (Floenger PHP 50 Plus) was selected to improve sedimentation performance based on settling rates and observed visual supernatant clarity. Experience has shown that it is difficult to scale paste flow characteristics from small-scale tests to full-scale pipeline conditions, pilot-scale pumping tests are usually necessary. The lab flotation concentrates (open circuit tests) were assayed to determine the deleterious elements in the concentrate and for use in the NSR calculations and included mineralogical analyses. The results showed that the lead concentrate assayed 47.2% Pb and 6,273 g/t Ag with 1.3% Cu, 1.45% As and 1.23% Sb. The zinc concentrate assayed 53.8% Zn with negligible copper, arsenic or antimony. The lead, silver and zinc concentrate grades are in agreement with the LCT carried out before. Concentrations of deleterious elements appear below typical smelter penalty thresholds, with arsenic appearing as the principal penalty element.

------

During 2012, UTO conducted further metallurgical test work including a single collective flotation test, a series of open circuit differential flotation tests (with a de-sliming step), a single locked cycle flotation test (with de-sliming step), and PORCO flow sheet testing. This test work was designed to explore the flotation response of the ore to conventional differential flotation and to establish the operating conditions, reagent scheme, and consumptions. The sample was prepared and provided by Apogee (ASL) and consisted of a bulk composite sample from drill cores with grain sizes up to 76.2 mm (3 inches). The first exploratory test indicated that silver recovery to bulk concentrate is about 72%, while the lead and zinc recoveries are approximately 66% and 78% respectively. The floating fraction accounted for about 13%, the slimes fraction 18%, and the rest is lost as final tailings. Lead and silver losses are up to 23% and 13%, respectively. The open batch flotation tests indicated that lead recovery is between 48% and 54%, while zinc recovery is in the range from 50.1% to 72%. Total silver recovery to both lead and zinc concentrates is between 30% and 68%. Lead concentrate grades range from 33.5% to 59%, zinc concentrate grades range from 49% and 55%. Similarly, silver grades in both concentrates range from 9,875 g/t to 15,333 g/t. A single LCT, a repetitive batch used to simulate a continuous circuit where all the intermediate material added to the appropriate location in the flowsheet, was conducted to produce a metallurgical projection of the sample tested and to assess if the flowsheet and reagent suite is stable. A good locked cycle test typically achieves steady state over the last three cycles. Steady state implies both stability and mass conservation. Stability implies constancy. It was not indicated whether the test reached stability or whether mass conservation was achieved. Assuming that steady state was reached, the results indicated that lead and zinc recoveries were 60.1% and 76.5%, respectively. Lead concentrate assayed 11,114 g/t Ag, 49.1% Pb and 4.81% Zn. Additionally, the metal values in the zinc concentrate were 2,220 g/t Ag, 2.29% Pb and 48.6% Zn. Concentrates account for about 2.9% w/w of the feed (0.81% lead and 2.1% zinc). Silver metal loss in the slimes is as high as in the tailings. Lead and silver losses in the final tails are 23.1% and 9.12% respectively. The PORCO flowsheet is basically a bulk flotation followed by lead and zinc flotation, this processing route should be carried out at high pH (12.2) intended to depress pyrite at the outset. However, the Pulacayo ore did not respond well mainly because of lead and silver selectivity issues and high consumption of acid (H2SO4) to drop the pH to a level suitable for lead flotation after the bulk stage.

Maelgwyn Mineral Services Africa carried out laboratory flotation optimization test work on ore samples from the Pulacayo Project during 2012. The objectives of the work were to: (i) test the flotation conditions supplied by Apogee on the core samples to determine the metal recoveries and grades achievable by differential flotation of the Pb and Zn minerals; (ii) to optimize the flotation conditions for effective differential of the Pb and Zn minerals and to achieve saleable grades of Pb and Zn concentrates; and (iii) to perform locked cycle testing of the optimized flotation conditions using selected variability core samples. Laboratory rod milling curves were produced for all the samples and found that the milling times required for the samples indicated a high degree of variability in hardness between the sample types. Flotation tests included 65 OCT's (exploratory test work) and four locked cycle flotation tests. In summary, the locked cycle tests yielded Pb concentrates of 55-69% Pb at recoveries between 88% and 93% and Zn concentrates of 37% to 56% Zn at recoveries of 79% to 90% with a large variation in head grade from 1.5% Pb to 4.3% Pb. The silver recoveries ranged between 68% and 94% with a variation in head grade of between 136 g/t Ag and 375 g/t Ag.

The test mining between November 2011 and May 2013 produced 12,550 tons of ore that were used in a toll milling program to evaluate ore processing. The ore was hauled by truck to four concentrators - Tatasi, Fedecomin, La Estrella, and Zabaleta. The Zabaleta concentrator attained the best recoveries for which the results are presented in the table below.

------

**PULACAYO DEPOSIT ZABALETA TOLL MILLING RESULTS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Material | Concentrate Grade | Concentrate Grade | Concentrate Grade | Concentrate Grade | Recoveries | Recoveries |
| Material | Pb (%) | Zn (%) | Ag (g/t) | Pb (%) | Zn (%) | Ag (%) |
| Lead Concentrate | 47.95 | 12.85 | 6295 | 64.62 | 16.26 | 72.13 |
| Zinc Concentrate | 8.47 | 39.45 | 941 | 9.97 | 43.57 | 8.41 |
| Tailings | 0.58 | 0.97 | 49 | 25.41 | 40.16 | 18.45 |
| **Total Ag recovery: 81.55%** | **Total Ag recovery: 81.55%** | **Total Ag recovery: 81.55%** | **Total Ag recovery: 81.55%** | **Total Ag recovery: 81.55%** | **Total Ag recovery: 81.55%** | **Total Ag recovery: 81.55%** |

---

Only one series of metallurgical tests were performed on samples from the Paca deposit. The tests were completed on three samples composited from drill cores and included feed characterization, leaching, flotation and gravity tests, in-place bulk density determination, and mineralogy. Study of the three composite samples found the silver grade varied from 44.5 g/t Ag to 228.6 g/t Ag, lead minerals 0.56% Pb to 0.8% Pb), and zinc minerals 0.05% Zn to 0.41% Zn). The other sulfide minerals identified were sulphosalts and chalcocite. Coarse native silver was detected in one of the samples. The silver minerals were amenable to cyanide leaching for most of the composite samples (i.e. 28% to 82% Ag extraction) however, extraction of silver was size dependent and improved with fineness-of-size. The lime consumption in leach varied from 0.8 to 2.4 kg/t. The NaCN consumption was dependent on both ore type and particle size, increasing with fineness of a particular size and in general, averaged ± 1.5 kg/t. Due to the presence of coarse native silver, the silver leaching was not completed in 120 hours, hence, the data was extrapolated to 240 hours leach time to project anticipated silver recovery and indicated that over 90% of silver could potentially be recovered at fine particle size for two of the three composites. Assay of the final pregnant solution from selected tests found measurable quantities of gold, hence, it is reasonable to conclude that gold is present in those samples. Some of the copper minerals present in the samples are also readily soluble in cyanide. Differential lead/zinc flotation process recovered over 90% of silver in the combined lead and zinc concentrate for the composite assaying 228.6 g/t Ag. The flotation process shows promise of recovering silver. However, the flotation process did not recover acceptable silver values from the other composites. The gravity concentration process did not concentrate silver in the gravity concentrate, hence, it cannot be used alone as a process for recovering silver minerals. The average density was ± 2.2 gm/cc for the samples tested, but the in-place bulk densities were extremely variable for one composite (i.e., 1.79 and 2.58 gm/cc). In summary, the preliminary results were encouraging to warrant additional drilling and metallurgical testing.

*Mining*

Mineralization is found from the surface to at least 1,000 m depth at the Pulacayo deposit thus both surface and underground mining methods are likely. It is envisioned that surface mining will recover the oxidized ore and some sulphide ore to an elevation below which a crown pillar will be left and below which underground mining methods would start. Mineralization at the Paca deposit is found from the surface to approximately 60 m depth for the mantos-style mineralization and from approximately 10 m to 240m depth for the stockwork and vein style mineralization. Thus, it is anticipated mining will be mostly by surface methods.

Trial mining was conducted between November 2011 and May 2013 at the Pulacayo deposit. The trial mining was done to obtain geotechnical information, better understand mining dilution, obtain a large sample for process testing, and train the workforce. The mining methods included jack leg drill and blast with tracked haulage for development and drill and blast with trackless haulage for production by the shrinkage and reusing stoping methods. The haulage way was advanced and three stopes were mined. The trial mining produced 12,550 tons of ore.

*Mineral Resource Estimates and Reserves*

The current Pulacayo Project mineral resource estimates for the Pulacayo and Paca deposits has been extracted or summarized from the 2022 Pulacayo Technical Report.

The definition of mineral resources and associated mineral resource categories used in this TRS are based on the Canadian National Instrument 43-101 (NI 43-101) standards and defined in the CIM Definition Standards for Mineral Resources and Mineral Reserves (adopted May 2014). Mineral Resources are classified based on the density of the drill hole data, the continuity of the mineralized zones, and determining reasonable prospects for economic extraction. The mineral resource classification used in this TRS complies with the mineral resource definitions and disclosure standards used by the SEC in Regulation S-K 1300. All assumptions, metal threshold parameters, and deposit modeling methodologies associated with the Pulacayo and Paca deposits mineral resource estimates are presented in Section 11 of this TRS.

The mineral resource estimate for the Pulacayo Project consists of separate contributing mineral resource estimates for the Pulacayo and Paca deposits and was prepared and reviewed by report authors and Qualified Persons M. Harrington, P.Geo. and M. Cullen, M.Sc. P.Geo., both of Mercator. Mr. Harrington is responsible for the Pulacayo Project mineral resource estimates both with an effective date of October 13, 2020. Mercator has confirmed that the mineral resource estimates remain current as of December 31, 2021. Geovia Surpac® Version 2020 was used to create the Pulacayo Project block models and associated geological and grade solids, and to interpolate silver-zinc-lead grades. A tabulation of the mineral resources for the Pulacayo Project is presented below in Table 1.2.

------

Report author M. Harrington concludes that the mineral resource estimates for the Pulacayo Project (Pulacayo and Paca deposits) have reasonable prospects for economic extraction based on the following technical and economic factors:

Pit Constrained mineral resources were defined for each deposit within optimized pit shells developed using Geovia Whittle software utilizing the Pseudoflow algorithm;

• Sulphide zone pit optimization parameters included mining at US$2.00 per tonne, combined processing and general and administration (G&A) costs at US$12.50 per tonne processed, and haulage costs at US$0.50 per tonne processed for Pulacayo and US$2.00 per tonne for Paca;

• Oxide zone pit optimization parameters included mining at US$2.00 per tonne, combined processing and G&A at US$23.50 per tonne processed, and haulage at US$0.50 per tonne processed for Pulacayo and US$2.00 per tonne for Paca;

• Metal prices used for the sulphide zone mineral resources are US$17/oz Ag, US$0.95/lb Pb, and US$1.16/lb Zn. Silver price reflects consideration of the World Bank Commodity 3 year trailing average Ag price of US$16.45/Troy oz. ending in July of 2020, World Bank Commodity 10 year (2020 to 2029) forecast Ag price of US$17.38/Troy oz., and average Ag pricing of US$17/Troy oz calculated from Pan American Silver Ltd., First Majestic Silver Corp, Couer Mining Inc., and Fortuna Silver Mines Inc. reporting of mineral resources and mineral reserves during the 2019 period. Lead and zinc prices reflect World Bank Commodity 3 year trailing averages ending in July of 2020. Silver price used for oxide zone mineral resources is US$17/oz AG based on the same factors discussed above;

• Metal recoveries of 89.2% Ag, 91.9% Pb, and 82.9% Zn for sulphide zone mineral resources and 80% Ag recovery for the oxide zone mineral resources were used and reflect historical metallurgical results for high grade test sampling disclosed previously by Apogee Silver Ltd. in the 2013 Feasibility Study by TWP (Porter et al. 2013);

• Pit Constrained sulphide mineral resources are reported at a cut-off grade value of 30 g/t silver equivalent (AgEq - refer to metal equivalent calculation in Section 11.1.2) within optimized pit shells;

• Pit Constrained oxide mineral resources are reported at a cut-off grade value of 50 g/t silver (Ag) within optimized pits shells;

• Pit Constrained cut-off grades are based on total operating costs and reflect reasonable prospects for economic extraction using conventional open-pit mining methods; and

• Out of Pit mineral resources are reported external to the optimized pit shells at a cut-off grade of 100 g/t AgEg. Out of Pit mineral resources are considered to have reasonable prospects for economic extraction using conventional underground mining methods such as long-hole stoping techniques based on a mining cost of US$35 per tonne and processing and G&A cost of $20.00 per tonne processed.

*Mineral Resource Category Parameters*

Definitions of mineral resources and associated mineral resource categories used in this report are those recognized under S-K 1300 as well as those recognized under NI 43-101 and set out in the CIM Standards, 2014. Only Inferred and Indicated categories have been assigned to the Pulacayo deposit. The mineral resources determined under S-K 1300 and NI 43-101 are the same.

Several factors were considered in defining resource categories, including drill hole spacing, geological interpretations and number of informing assay composites and average distance of assay composites to block centroids. Specific definition parameters for each resource category applied in the current estimate are set out below.

Measured Resource: No interpolated resource blocks were assigned to this category.

------

Indicated Resource: Indicated mineral resources are defined as all blocks with interpolated silver grades from the first or second interpolation passes that meet the specified Pit Constrained or Out of Pit cut-off grades.

Inferred Resources: Inferred mineral resources are defined as all blocks with interpolated silver grades from the first, second, and third interpolation passes that were not previously assigned to the Indicated category and meet the specified Pit Constrained or Out of Pit cut-off grades.

Application of the selected mineral resource categorization parameters specified above defined distribution of Indicated and Inferred mineral resource estimate blocks within the block model. To eliminate isolated and irregular category assignment artifacts, the peripheral limits of blocks in close proximity to each other that share the same category designation and demonstrate reasonable continuity were wireframed and developed into discrete solid models. All blocks within these "category" solid models were re-classified to match that model's designation. This process resulted in more continuous zones of each mineral resource estimate category and limited occurrences of orphaned blocks of one category as imbedded patches in other category domains.

<u>Pulacayo Deposit</u>

*Mineral Resource Estimate*

Block grade, block density and block volume parameters for the Pulacayo deposit were estimated using methods described in preceding sections of this report. Subsequent application of mineral resource category parameters resulted in the Pulacayo deposit mineral resource estimate presented below in table below. Results are presented in accordance with NI-43-101 and the CIM, as well as in accordance of S-K 1300. Mineral resources are calculated in situ.

**PULACAYO DEPOSIT MINERAL RESOURCE ESTIMATE - EFFECTIVE DATE: DECEMBER 31, 2021\*\***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** | **Pit Constrained Mineral Resources** |
| **Cut - off** | **Zone** | **Category** | **Rounded Tonnes** | **Ag g/t** | **Pb %** | **Zn %** | **\*Ag Eq. g/t** |
| 50 Ag g/t | Oxide | Indicated | 1090000 | 125 |  |  |  |
| 50 Ag g/t | Oxide | Inferred | 25000 | 60 |  |  |  |
| 30 \*Ag Eq. g/t | Sulfide | Indicated | 24600000 | 76 | 0.70 | 1.63 | 156 |
| 30 \*Ag Eq. g/t | Sulfide | Inferred | 745000 | 82 | 0.61 | 1.79 | 164 |
| **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** | **Out of Pit Mineral Resources** |
| 100 \*Ag Eq. g/t | Sulfide | Indicated | 660000 | 268 | 0.44 | 1.35 | 307 |
| 100 \*Ag Eq. g/t | Sulfide | Inferred | 900000 | 179 | 0.42 | 2.14 | 257 |
| 50 Ag g/t | Oxide | Indicated | 1090000 | 125 |  |  |  |
| 50 Ag g/t | Oxide | Inferred | 25000 | 60 |  |  |  |
| 30/100 \*Ag Eq. g/t | Sulfide | Indicated | 25260000 | 81 | 0.69 | 1.62 | 160 |
| 30/100 \*Ag Eq. g/t | Sulfide | Inferred | 1645000 | 135 | 0.51 | 1.98 | 215 |

---

***\*\*Notes:*** 

Mineral resources were prepared in accordance with S-K 1300 as well as NI 43-101, the CIM Definition Standards (2014) CIM MRMR Best Practice Guidelines (2019).

\*Ag Eq. = Silver Equivalent (Recovered) = (Ag g/t\*89.2%)+((Pb%\*(US$0.95/lb. Pb/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*91.9%))+((Zn%\*(US$1.16/lb. Zn/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*82.9%)). Sulphide zone metal recoveries of 89.2% for Ag, 91.9% for Pb, and 82.9% for Zn were used in the Silver Equivalent (Recovered) equation and reflect metallurgical testing results disclosed previously for the Pulacayo deposit. A metal recovery of 80% Ag was used for oxide zone mineral resources.

Metal prices of US$17/oz Ag, US$0.95/lb. Pb, and US$1.16 Zn apply. A currency exchange rate of $1.00 to US$0.75 applies.

------

Pit Constrained mineral resources are defined within an optimized pit shell with average pit slope angles of 45⁰. The Pulacayo deposit mineral resource estimate was optimized at a 12.3:1 strip ratio.

Base-case sulfide zone pit optimization parameters include mining at US$2.00 per tonne; combined processing and G&A at US$12.50 per tonne processed; and haulage at US$0.50 per tonne.

Base-case oxide zone pit optimization parameters include mining at US$2.00 per tonne; combined processing and G&A at US$23.50 per tonne processed; and haulage at US$0.50 per tonne.

Pit Constrained sulphide zone mineral resources are reported at a cut-off grade of 30 g/t Ag Eq. within the optimized pit shell and Pit Constrained oxide zone mineral resources are reported at a cut-off grade of 50 g/t Ag within the optimized pit shell. Cut-off grades reflect total operating costs used in pit optimization and are considered to define reasonable prospects for eventual economic extraction by open pit mining methods.

Out of Pit mineral resources are external to the optimized pit shell and are reported at a cut-off grade of 100 g/t Ag Eq. They are considered to have reasonable prospects for eventual economic extraction using conventional underground methods such as long hole stoping based on a mining cost of $35 per tonne and processing and G&A cost of $20 per tonne processed.

Combined Pit Constrained and Out of Pit mineral resources is the tonnage-weighted average summation of Pit Constrained and Out of Pit Pulacayo mineral resources.

Mineral resources were estimated using Ordinary Kriging methods applied to 1 m downhole assay composites capped at 2,300 g/t Ag, 13% Pb and 15% Zn.

Bulk density was interpolated using Inverse Distance methods.

Mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

Mineral resource tonnages have been rounded to the nearest 5,000; totals may vary due to rounding.

Pit Constrained sulphide mineral resources are reported at a cut-off value of 30 g/t Ag Eq. within the optimized pit shell and Pit Constrained oxide mineral resources are reported at a cut-off value of 50 g/t Ag within the optimized pit shell. Cut-off grades reflect total operating costs and are considered to reflect reasonable prospects for eventual economic extraction using conventional open pit mining methods. Sulphide zone pit optimization parameters include mining at US$2.00 per tonne, combined processing and G&A at US$12.50 per tonne processed, and haulage at US$0.50 per tonne processed. Oxide zone pit optimization parameters include mining at US$2.00 per tonne, combined processing and G&A at US$23.50 per tonne processed, and haulage at US$0.50 per tonne processed. Metal prices of US$17/oz silver, US$0.95/lb lead, and US$1.16/lb zinc were used and metal recoveries of 89.2% silver, 91.9% lead, and 82.9% zinc were used for sulphide zone mineral resources and 80% silver for oxide zone mineral resources. Optimization was constrained to an elevation of 4000 asl (maximum depth of approximately 400 m below surface). The optimized pit supports a 12.3:1 strip ratio with average pit slopes of 45°.

Out of Pit mineral resources are reported external to the optimized pit shell at a cut-off grade of 100 g/t Ag Eg. They are considered to have reasonable prospects for eventual economic extraction using conventional underground mining methods such as long hole stoping based on a mining cost of US$35 per tonne and processing and G&A cost of $20.00 per tonne processed.

*Validation of Mineral Resource Models*

Results of block modeling were reviewed in three dimensions and compared on a section by section basis with associated drill hole data. Block grade distribution was shown to have acceptable correlation with the grade distribution of the underlying drill hole data. Silver, lead, and zinc grade descriptive statistics, presented in the table below, were calculated for all interpolated blocks at a zero cut-off value and were compared to the values of the combined assay composite population (100 g/t Ag domain and 45 g/t Ag Eq. domain). Average grades compare favorably between the composite and block populations. As expected, the large block grade population is characterized by lower coefficient of variation, standard deviation and variance values than those of the assay composite population.

------

**COMPARISON OF PULACAYO DEPOSIT BLOCK AND COMPOSITE VALUES**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Capped Composite Values** | **Capped Composite Values** | **Capped Composite Values** | **Block Values** | **Block Values** | **Block Values** |
| **Parameter** | **Ag g/t** | **Pb %** | **Zn %** | **Ag g/t** | **Pb %** | **Zn %** |
| Mean Grade | 75.63 | 0.65 | 1.45 | 89.71 | 0.68 | 1.5 |
| Maximum Grade | 2300 | 13 | 15 | 1559 | 7.03 | 12.46 |
| Minimum Grade | 0 | 0 | 0 | 0 | 0 | 0 |
| Variance | 41141 | 1.432 | 3.25 | 15408 | 0.6 | 1.66 |
| Standard Deviation | 203 | 1.2 | 1.8 | 124 | 0.77 | 1.29 |
| Coefficient of Variation | 2.68 | 1.84 | 1.25 | 1.38 | 1.14 | 0.86 |
| Number of Samples | 10168 | 10168 | 10168 | 4196877 | 4196877 | 4196877 |

---

Block volume estimates for each mineral resource solid were compared with corresponding solid model volume reports generated in Surpac and results show good correlation, indicating consistency in volume capture and block volume reporting. Mercator created swath plots in the easting and vertical directions comparing average composite grades and global mass weighted block grades.

*Tonnage and Grade Sensitivity*

Tonnages and average grades at various Ag Eq. cut-off grades are presented in the tables below for Pit Constrained and Out of Pit sulphide mineral resources and tonnages and average grades at various Ag cut-off grades for Pit Constrained oxide mineral resources. Approximately 95% of the Pit Constrained sulphide mineral resource is retained at a cut-off grade of 60 g/t Ag Eq., double the mineral resource cut-off grade of 30 g/t Ag Eq. Similarly, approximately 90% of the Out of Pit sulphide mineral resource is retained at a cut-off grade of 150 g/t Ag Eq. when compared to the mineral resource cut-off grade of 100 g/t Ag Eq. Significant tonnages are present at higher cut-off grades for Pit Constrained sulphide mineral resources and, when combined with Out of Pit sulphide mineral resources, demonstrate potential for higher grade bulk tonnage underground mining scenarios. Pit Constrained oxide mineral resources demonstrate a high sensitivity to Ag cut-off grade.

**PULACAYO DEPOSIT PIT CONSTRAINED SULPHIDE ZONE SENSITIVITY ANALYSIS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Cut-off Grade (Ag Eg. g/t)** | **Category** | **Rounded Tonnes** | **Ag g/t** | **Pb %** | **Zn %** | **Ag Eq. g/t** |
| 15 | Indicated | 24710000 | 76 | 0.70 | 1.62 | 155 |
| 15 | Inferred | 755000 | 81 | 0.60 | 1.77 | 162 |
| ***\*30*** | ***Indicated*** | ***24600000*** | ***76*** | ***0.70*** | ***1.63*** | ***156*** |
| ***\*30*** | ***Inferred*** | ***745000*** | ***82*** | ***0.61*** | ***1.79*** | ***164*** |
| 60 | Indicated | 20660000 | 88 | 0.79 | 1.80 | 176 |
| 60 | Inferred | 665000 | 88 | 0.66 | 1.95 | 178 |
| 90 | Indicated | 13700000 | 121 | 0.99 | 2.17 | 227 |
| 90 | Inferred | 290000 | 154 | 0.97 | 3.62 | 312 |
| 150 | Indicated | 7295000 | 201 | 1.35 | 2.59 | 327 |
| 150 | Inferred | 205000 | 205 | 1.15 | 4.33 | 391 |
| **Cut-off Grade (Ag Eg. g/t)** | **Category** | **Rounded Tonnes** | **Ag g/t** | **Pb %** | **Zn %** | **Ag Eq. g/t** |
| 200 | Indicated | 5385000 | 249 | 1.54 | 2.75 | 383 |
| 200 | Inferred | 180000 | 230 | 1.22 | 4.57 | 426 |
| 300 | Indicated | 3255000 | 315 | 1.88 | 3.18 | 471 |
| 300 | Inferred | 130000 | 286 | 1.37 | 4.82 | 491 |
| 400 | Indicated | 1860000 | 387 | 2.25 | 3.62 | 565 |
| 400 | Inferred | 105000 | 297 | 1.46 | 5.29 | 521 |

---

\*Mineral resource Estimate cut-off grade highlighted

------

**PULACAYO DEPOSIT OUT OF PIT SULPHIDE ZONE SENSITIVITY ANALYSIS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Cut-off Grade (Ag Eg. g/t)** | **Category** | **Rounded Tonnes** | **Ag g/t** | **Pb %** | **Zn %** | **Ag Eq. g/t** |
| 75 | Indicated | 880000 | 211 | 0.38 | 1.34 | 253 |
| 75 | Inferred | 1250000 | 137 | 0.36 | 1.92 | 209 |
| ***\*100*** | ***Indicated*** | ***660000*** | ***268*** | ***0.44*** | ***1.35*** | ***307*** |
| ***\*100*** | ***Inferred*** | ***900000*** | ***179*** | ***0.42*** | ***2.14*** | ***257*** |
| 150 | Indicated | 530000 | 321 | 0.49 | 1.3 | 354 |
| 150 | Inferred | 680000 | 220 | 0.46 | 2.25 | 300 |
| 200 | Indicated | 435000 | 359 | 0.53 | 1.41 | 394 |
| 200 | Inferred | 505000 | 260 | 0.54 | 2.37 | 343 |
| 300 | Indicated | 290000 | 429 | 0.64 | 1.63 | 468 |
| 300 | Inferred | 310000 | 327 | 0.72 | 2.23 | 403 |
| 400 | Indicated | 180000 | 490 | 0.74 | 1.93 | 538 |
| 400 | Inferred | 165000 | 384 | 0.99 | 2.01 | 455 |

---

\*Mineral resource Estimate cut-off grade highlighted

*Technical Reports*

The two most recent previous mineral resource estimate for the Pulacayo deposit were prepared by Mercator and is described in a NI 43-101 technical report prepared for Silver Elephant Mining Corp. that is titled " Mineral Resource Estimate Technical Report for the Pulacayo Project, Potosí Department, Antonnio Quijarro Province, Bolivia, Effective Date: October 13, 2020" and a S-K 1300 Tehcnical Report Summary for the Pulacayo Project, Potosi Department, Antonnio Quijarro Province, Bolivia, Effective Date: April 29, 2022. These reports are referenced herein as the 2020 Pulacayo Technical Report and the 2022 Pulacayo Technical Report, respectively and are filed on SEDAR. Results of the mineral resource estimate supported by the 2022 technical report are briefly discussed below relative to results of the current mineral resource estimate.

The 2022 Pulacayo Technical Report mineral resource estimation program applied methodologies specifically aimed at defining high grade silver mineralization and minimizing potential dilution of metal grade by adjacent lower grade tonnes. For these reasons, results of the resulting mineral resource estimates differ substantially from current 2020 results by having higher metal grades, thinner mineralized zone solids and significantly lower tonnages defined at higher cut-off values. In contract, the emphasis of the current mineral resource estimation program was definition of mineral resources having potential for economic extraction in the foreseeable future using primarily open pit mining methods. However, the sensitivity analysis of the current mineral resource estimate shows comparable mineral resources defined at the 400 g/t Ag Eq. cut-off value to those defined at that same cut-off value in the 2022 mineral resource estimates. The slight decrease in average grades and tonnes at that cut-off value is associated with several factors, including but not necessarily restricted to, a difference in interpolation methods, grade domain cut-off values, and evolution of the underground workings model. The value (pricing) of silver is comparable between the current mineral resource and the 2022 assessments. The 2022 mineral resource estimate for the Pulacayo deposit has been superseded by the current mineral resource estimate for the deposit.

<u>Paca Deposit</u>

The Pulacayo and Paca deposits are related to the same mineralizing event that is associated with development of the associated Paca and Pulacayo volcanic centers. The Paca deposit is spatially related to the contact zone of the Paca volcanic dome which is comprised of porphyritic andesite and dacite units and related volcanic breccias. These are hosted by fine grained to conglomeratic volcaniclastic lithologies of the Quehua Formation. Silver-zinc-lead mineralization at Paca occurs primarily within an argillic to advanced argillic alteration envelope that affects both Paca dome igneous lithologies and surrounding host sequences. Silicification and alunite development are also well developed in association with some portions of the deposit. The Paca deposit presents a core zone of mineralization that correlates closely with an irregularly shaped body of altered and brecciated andesite and country rocks that closely follows the contact zone between the Paca dome andesite and the shallowly north-dipping host volcaniclastic sequence. Adjacent to this, stratabound replacement style ("mantos") mineralization is present within the shallowly north-dipping host volcaniclastic sequence at several elevations. Mantos mineralization merges with that seen in the central breccia zone but is typically lower in all metal grades. A polylithic conglomerate unit that outcrops in the deposit area is also mineralized and shows a strong imprint of silicification represented by micro-crystalline replacement style silica in various forms.

------

Mineralization associated with discrete veins of significant width and lateral extent is not pervasively present at Paca. Mineralization more typically occurs in irregularly spaced discrete fracture systems as well as in matrix replacement sites. The mantos style mineralization is primarily represented as finely disseminated, fine grains and aggregates of silver, lead and zinc sulphide and sulphosalt phases, accompanied by others such as manganese oxide and barite. Argillic to advanced argillic alteration phases are pervasively present in areas of significant metallic mineralization. Mineral phases commonly recognized at Paca in association with metal grades of economic interest include sphalerite, galena, silver sulphosalts, tennatite, smithsonite, barite, manganese oxide, gypsum, jarosite, specularite, cerussite, dolomite aragonite and calcite. The style and occurrence of this mineralization is consistent with a low-to-intermediate epithermal style genetic model.

The Paca deposit resource is reported in the Mineral Resource Estimate Technical Report for the Pulacayo Project that describes mineral resources estimated following the CIM Standards, 2014 and S-K 1300. The Mineral Resource Estimate has an effective date of December 31, 2021.

The Mineral Resource Estimate was prepared by Mercator under the supervision of Matthew Harrington, P. Geo., who is an independent Qualified Person as defined under NI 43-101 and S-K 1300. A contained metal summary based on the Mineral Resource Estimate for the Paca deposit is reported below:

PACA DEPOSIT PIT-CONSTRAINED MINERAL RESOURCE ESTIMATE

EFFECTIVE DATE DECEMBER 31, 2021\*\*

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cut - off Grade** | **Zone** | **Category** | **Rounded<br>Tonnes** | **Ag g/t** | **Zn %** | **Pb %** | **Ag Moz** | **Zn<br>Mlbs** | **Pb Mlbs** | **\*AgEq<br>Moz** | **\*AgEq<br>g/t** |
| 50 Ag g/t | Oxide<br>In-Pit | Indicated | 1095000 | 185 |  |  | 6.5 |  |  |  |  |
| 50 Ag g/t | Oxide<br>In-Pit | Inferred | 345000 | 131 |  |  | 1.5 |  |  |  |  |
| 30 \*AgEq g/t | Sulfide<br>In-Pit | Indicated | 20595000 | 46 | 1.07 | 0.67 | 30.5 | 485.8 | 304.2 | 70.2 | 106 |
| 30 \*AgEq g/t | Sulfide<br>In-Pit | Inferred | 3050000 | 46 | 0.76 | 0.65 | 4.5 | 51.1 | 43.7 | 9.2 | 94 |
| Total: | Total: | Indicated | 21690000 |  |  |  | 37 | 485.8 | 304.2 | 70.2 |  |
| Total: | Total: | Inferred | 3395000 |  |  |  | 6 | 51.1 | 43.7 | 9.2 |  |

---

\*\*See detailed notes on the Mineral Resource Estimate parameters under preceding Table titled "Pulacayo Deposit Mineral Resource Estimate - Effective Date December 31, 2021"

- Ag Eq. = Silver Equivalent (Recovered) = (Ag g/t\*89.2%)+((Pb%\*(US$0.95/lb. Pb/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*91.9%))+((Zn%\*(US$1.16/lb. Zn/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*82.9%)). Sulphide zone metal recoveries of 89.2% for Ag, 91.9% for Pb, and 82.9% for Zn were used in the Silver Equivalent (Recovered) equation and reflect metallurgical testing results disclosed previously for the Pulacayo Deposit. A metal recovery of 80% Ag was used for oxide zone Mineral Resources.

- Metal prices of US$17/oz Ag, US$0.95/lb Pb, and US$1.16 Zn apply. A currency exchange rate of CDN$1.00 to US$0.75 applies.

- Pit-Constrained Mineral Resources are defined for each deposit within optimized pit shells with average pit slope angles of 45⁰. The Pulacayo Deposit Mineral Resource Estimate was optimized at a 12.3:1 strip ratio and the Paca Deposit Mineral Resource Estimate was optimized with at a 4.3: strip ratio.

- Base-case sulfide zone pit optimization parameters include: mining at US$2.00 per tonne; combined processing and G&A at US$12.50 per tonne processed; haulage at US$0.50 per tonne processed for Pulacayo and US$2.00 per tonne processed for Paca.

- Base-case oxide zone pit optimization parameters include: mining at US$2.00 per tonne; combined processing and G&A at US$23.50 per tonne processed; haulage at US$0.50 per tonne processed for Pulacayo and US$2.00 per tonne processed for Paca.

- Pit-constrained sulphide zone Mineral Resources are reported at a cut-off grade of 30 g/t Ag Eq. within the optimized pit shells and pit-constrained oxide zone Mineral Resources are reported at a cut-off grade of 50 g/t Ag within the optimized pit shells. Cut-off grades reflect total operating costs used in pit optimization and are considered to define reasonable prospects for eventual economic extraction by open pit mining methods.

- Out of Pit Mineral Resources are external to the optimized pit shells and are reported at a cut-off grade of 100 g/t Ag Eq. They are considered to have reasonable prospects for eventual economic extraction using conventional underground methods such as long hole stoping based on a mining cost of $35 per tonne and processing and G&A cost of $20 per tonne processed.

------

- "Total" Mineral Resources for the Pulacayo Deposit Combined Pit-Constrained and Out-of-Pit Mineral Resource Estimate is the tonnage-weighted average summation of Pit-Constrained and Out-of-Pit Pulacayo Mineral Resources.

- "Total" Mineral Resources for the Pulacayo Project Mineral Resource Estimate is the tonnage-weighted average summation of total Pulacayo Deposit and Paca Deposit Mineral Resources.

- Mineral Resources were estimated using Ordinary Kriging methods applied to 1 m downhole assay composites capped at 2,300 g/t Ag, 13% Pb and 15% Zn.

- Bulk density was interpolated using Ordinary Kriging methods for Pulacayo Mineral Resources. An average bulk density of 2.32 g/cm3 or 2.24 g/cm3 was applied to Paca Mineral Resources based on grade domain solid models.

- Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

- Mineral Resource tonnages have been rounded to the nearest 5,000; totals may vary due to rounding.

Sensitivity analysis shown in the following two tables illustrates various pit-constrained grade-tonnage scenarios at the Paca deposit based on a range of cut-off grades:

PACA DEPOSIT PIT-CONSTRAINED CUT-OFF GRADE SENSITIVITY REPORT FOR OXIDE ZONE

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cut-off<br>Grade** | **Category** | **Rounded<br>Tonnes** | **Ag g/t** | **Zn %** | **Pb %** | **Ag Moz** | **Zn Mlbs** | **Pb Mlbs** | **\*AgEq<br>Moz** | **AgEq<br>g/t** |
| 30 Ag g/t | Indicated | 1805000 | 128 |  |  | 7.4 |  |  |  |  |
| 30 Ag g/t | Inferred | 500000 | 102 |  |  | 1.6 |  |  |  |  |
| 45 Ag g/t | Indicated | 1225000 | 170 |  |  | 6.7 |  |  |  |  |
| 45 Ag g/t | Inferred | 375000 | 124 |  |  | 1.5 |  |  |  |  |
| 90 Ag g/t | Indicated | 800000 | 231 |  |  | 5.9 |  |  |  |  |
| 90 Ag g/t | Inferred | 235000 | 159 |  |  | 1.2 |  |  |  |  |
| 200 Ag g/t | Indicated | 420000 | 311 |  |  | 4.2 |  |  |  |  |
| 200 Ag g/t | Inferred | 55000 | 285 |  |  | 0.5 |  |  |  |  |
| 400 Ag g/t | Indicated | 80000 | 493 |  |  | 1.3 |  |  |  |  |
| 400 Ag g/t | Inferred | 5000 | 459 |  |  | 0.1 |  |  |  |  |

---

*Note: Cut-off grade for pit-constrained oxide mineral resources is 50 g/t Ag.*

PACA DEPOSIT PIT-CONSTRAINED CUT-OFF GRADE SENSITIVITY REPORT FOR SULFIDE ZONE

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cut-off<br>Grade** | **Category** | **Rounded<br>Tonnes** | **Ag g/t** | **Zn %** | **Pb %** | **Ag Moz** | **Zn Mlbs** | **Pb Mlbs** | **\*AgEq<br>Moz** | **AgEq<br>g/t** |
| **30 AgEq g/t** | **Indicated** | **20595000** | **46** | **1.07** | **0.67** | **30.5** | **485.8** | **304.2** | **70.2** | **106** |
| **30 AgEq g/t** | **Inferred** | **3050000** | **46** | **0.76** | **0.65** | **4.5** | **51.1** | **43.7** | **9.2** | **94** |
| 45 AgEq g/t | Indicated | 19315000 | 48 | 1.11 | 0.69 | 29.8 | 472.7 | 293.8 | 68.3 | 110 |
| 45 AgEq g/t | Inferred | 2650000 | 51 | 0.81 | 0.7 | 4.4 | 47.3 | 40.9 | 8.7 | 102 |
| 90 AgEq g/t | Indicated | 8600000 | 87 | 1.38 | 0.95 | 24.1 | 261.6 | 180.1 | 45.4 | 164 |
| 90 AgEq g/t | Inferred | 950000 | 114 | 0.94 | 0.95 | 3.5 | 19.7 | 19.9 | 5.2 | 171 |

---

*Note: Mineral resource estimate cut-off grade bolded.*

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cut-off<br>Grade** | **Category** | **Rounded<br>Tonnes** | **Ag g/t** | **Zn %** | **Pb %** | **Ag Moz** | **Zn Mlbs** | **Pb Mlbs** | **\*AgEq<br>Moz** | **AgEq<br>g/t** |
| 200 AgEq g/t | Indicated | 1810000 | 256 | 1.22 | 1.22 | 14.9 | 48.7 | 48.7 | 18.5 | 318 |
| 200 AgEq g/t | Inferred | 190000 | 338 | 0.61 | 0.98 | 2.1 | 2.6 | 4.1 | 2.2 | 360 |
| 400 AgEq g/t | Indicated | 300000 | 490 | 1.38 | 1.47 | 4.7 | 9.1 | 9.7 | 5.2 | 542 |
| 400 AgEq g/t | Inferred | 50000 | 545 | 0.39 | 0.82 | 0.9 | 0.4 | 0.9 | 0.9 | 530 |

---

*Note: Mineral resource estimate cut-off grade bolded*.

*Mineral Reserve Estimates*

No mineral reserves have been defined to date by the Company for the Pulacayo and Paca deposits.

*Environmental*

The Pulacayo Project's current environmental operating requirements are set out in compliance with the Environment Law (Law Nº 1333) and the Environmental Regulation for Mining Activities. A certificate of exemption was obtained for the exploration phase and an audit of the Environmental Base Line (ALBA) was carried out between December 2007 and July 2008 by Mining Consulting & Engineering "MINCO S.R.L.", a Bolivian based professional consulting firm with broad exposure to the mining industry. Its audit report summarized the work carried out during the Environmental Assessment by Apogee and includes 1) a compilation of information on the local vegetation, animals, soil, water, air, etc., including collection of more than 500 samples in the area of interest to support the conclusions and recommendations of the report; 2) an evaluation of the social impact of the project; 3) an evaluation of the area contaminated during previous mining activities, including tailings, abandoned facilities, acid waters, scrap, etc.; and 4) an evaluation of other environmental liabilities.

The very long production history of the Pulacayo site, which in part is not fully documented, has potentially resulted in mining or milling associated site contamination issues related to waste rock or tailings deposit distributions that are not fully defined at this time. These may be additional to the areas of such concern identified in environmental permitting activities completed to date. Future issues associated with these should be considered project risks that may require management as the project progresses. Additional issues with site contamination associated with historical and recent site operations carried out by, or on behalf of, COMIBOL that are related to that firm's infrastructure at the site may also pose future project risk that should monitored. Potential impacts of poorly or undocumented site operations by the local mining cooperative may also require management as the project progresses.

On May 25, 2011 Apogee was awarded an environmental licence by the Bolivian authorities sanctioning mining operations at its Pulacayo project. The permit (Certificado de Dispensación Categoria 3 Para Exploración y Actividades Mineras Menores/EMAP) allows for the extraction of up to 200 tonnes per day from underground for stockpiling and transporting for off-site processing. This permit is still in effect at the effective date of this report.

On September 25, 2013 Apogee was awarded by the Bolivian Ministry of Water and Environment the Environment Impact Declaration certificate which shows that the Bolivian environmental authorities approved the Environmental Impact Assessment ("EIA") which permits establishment of mining, milling and tailings facilities on the Pulacayo site of sufficient size to support milling operations of up to 560 tonnes per day. The application to obtain this permit was applied by Apogee on December 17, 2012. The submission was the result of over 30 months of technical studies and consultations, including a comprehensive water management plan, the feasibility study, archeological studies, flora and fauna studies, mine closure planning, social baseline studies, and results from two years of public consultations with local communities. All permits previously granted to Apogee currently remain in effect for the Company.

On May 25, 2011 Apogee was awarded an environmental licence by the Bolivian authorities sanctioning mining operations at its Pulacayo project. The permit (Certificado de Dispensación Categoria 3 Para Exploración y Actividades Mineras Menores/EMAP) allows for the extraction of up to 200 tonnes per day from underground for stockpiling and transporting for off-site processing. This permit is still in effect at the effective date of this report.

------

On November 12, 2018 ASC Bolivia LDC Sucursal Bolivia was awarded an updated environmental licence by the Bolivian authorities sanctioning mining operations at its Paca project. The permit (Certificado de Dispensación Categoria 3 Para Exploración y Actividades Mineras Menores/EMAP) which allows exploration activities. This permit is still in effect.

Agreements and permits currently in place for the Pulacayo project provide authority to carry out the Pulacayo and Paca deposit area exploration work programs recommended in this report. They also provide access for development of certain mining, milling and tailings infrastructure for the Pulacayo deposit, subject to site environmental directives.

*Project Risks and Mitigation*

The major risks to developing the Pulacayo Project include the inability to obtain financing, decreases in metal prices, and adverse political and social changes. The inability to obtain financing will be mitigated through pursuit of equity investors and cash flow from sale of available material. The risk from decrease in metal prices will be mitigated by the timing of the project in that the start of the project is at the time of lowest metal prices in several years and concentrate sales will start when metal prices are projected to be much higher. Adverse political and social changes are also mitigated by the timing of the project. The national government has started to become much more supportive of mining and recently the local government and population have shown strong support for re-starting the mine.

*Legacy Financial Obligations*

As part of the transaction with Apogee, we agreed to assume, within certain limitations, all liabilities associated with the Apogee Subsidiaries and the Pulacayo Project. During 2014, Apogee received notice from the national tax authority in Bolivia alleging that its wholly owned subsidiary ASC owes approximately Bs42,000,000 (equaling in an amount originally assessed at approximately $7,600,000 in 2004) of taxes, interest and penalties relating to a historical tax liability. The Company continued to dispute the assessment and hired local legal counsel to pursue an appeal of the tax authority's assessment on both substantive and procedural grounds. On May 26, 2015, the Company received a positive "resolution" issued by the Bolivian Constitutional Court that declared null and void the previous resolution of the Bolivian Supreme Court issued in 2011 and sent the matter back to the Supreme Court to consider and issue a new resolution.

On December 4, 2019, the Company received the 2019 Resolution issued by the Supreme Court of Bolivia which declares that the contentious tax claim of US$6,556,787 brought by Bolivia's General Revenue Authority against the Company's Bolivian subsidiary is not proven.

<u>Three Year Recent Activities & Updates</u>

*2019*

In September of 2019 the Company initiated its first drilling program at the Paca deposit area. The program was completed in October of 2019, and consisted of 7 drill holes. The complete detailed composited drill intersections of mineralization are tabulated in the following table:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole** | **From (m)** | **To (m)** | **Length (m)** | **Ag (g/t)** | **Zn %** | **Pb %** | **AgEq** |
| **PND107** | **PND107** | **PND107** | **PND107** | **PND107** | **PND107** | **PND107** | **PND107** |
| Interval: | 55 | 109 | 54 | 151 | 1.01 | 1.17 | 238 |
| *including …* | 70 | 77 | 7 | 178 | 0.97 | 1.37 | 271 |
| *and …* | 70 | 109 | 39 | 180 | 1.2 | 1.34 | 283 |
| *and …* | 87 | 109 | 22 | 240 | 1.23 | 1.65 | 355 |
| **PND108** | **PND108** | **PND108** | **PND108** | **PND108** | **PND108** | **PND108** | **PND108** |
|  | 15 | 65 | 50 | 135 | 0.4 | 1.42 | 208 |
| *including …* | 33 | 57 | 24 | 200 | 0.6 | 2.12 | 307 |
| *and …* | 33 | 43 | 10 | 257 | 0.41 | 1.49 | 333 |
| Interval: | 94 | 96 | 2 | 160 | 0.94 | 0.52 | 220 |
| **PND109** | **PND109** | **PND109** | **PND109** | **PND109** | **PND109** | **PND109** | **PND109** |
| Interval: | 15 | 43 | 28 | 242 | 0.27 | 0.69 | 281 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *including …* | 20 | 29 | 9 | 391 | 0.26 | 1.1 | 445 |
| *and …* | 24 | 26 | 2 | 1223 | 0.42 | 3.2 | 1365 |
| *and …* | 37 | 43 | 6 | 282 | 0.31 | 0.52 | 315 |
|  | 75 | 173 | 98 | 15 | 2.47 | 1.28 | 168 |
| *including …* | 93 | 94 | 1 | 167 | 3.64 | 1.24 | 367 |
| **PND110** | **PND110** | **PND110** | **PND110** | **PND110** | **PND110** | **PND110** | **PND110** |
| Interval: | 9 | 182 | 173 | 95 | 1.63 | 1.4 | 273 |
| *including…* | 9 | 98 | 89 | 279 | 1.28 | 1.17 | 378 |
| *and…* | 9 | 28 | 19 | 718 | 0.05 | 0.74 | 749 |
| *and…* | 9 | 12 | 3 | 145 | 0.07 | 0.9 | 183 |
| *and…* | 16 | 28 | 12 | 1085 | 0.04 | 0.71 | 1115 |
| *and…* | 44 | 180 | 138 | 87 | 1.59 | 2.01 | 233 |
| *and…* | 44 | 46.5 | 2.5 | 111 | 0.61 | 1.09 | 179 |
| *and…* | 44 | 98 | 54 | 98 | 2.03 | 1.52 | 343 |
| *and…* | 52 | 54 | 2 | 115 | 1.61 | 1.33 | 234 |
| *and…* | 60 | 82 | 22 | 328 | 1.98 | 1.43 | 466 |
| *and…* | 61 | 65 | 4 | 1248 | 1.93 | 2.88 | 1441 |
| *and…* | 86 | 94 | 8 | 270 | 2.83 | 2.74 | 495 |
| *and…* | 97 | 98 | 1 | 155 | 3.26 | 3.03 | 409 |
| **PND111** | **PND111** | **PND111** | **PND111** | **PND111** | **PND111** | **PND111** | **PND111** |
| Interval: | 0 | 2.4 | 2.4 | 110 | 0.16 | 0.58 | 139 |
| **PND112** | **PND112** | **PND112** | **PND112** | **PND112** | **PND112** | **PND112** | **PND112** |
| Interval: | 12 | 28 | 16 | 154 | 0.08 | 0.39 | 173 |
| *including…* | 21 | 22 | 1 | 890 | 0.05 | 0.31 | 904 |
| Interval: | 33 | 36 | 3 | 120 | 0.07 | 2.4 | 216 |
| Interval: | 43 | 44.6 | 1.6 | 100 | 0.23 | 1.58 | 171 |
| **PND113** | **PND113** | **PND113** | **PND113** | **PND113** | **PND113** | **PND113** | **PND113** |
| Interval: | 3 | 28 | 25 | 196 | 0.04 | 0.29 | 209 |
| *including…* | 3 | 17 | 14 | 185 | 0.04 | 0.38 | 202 |
| *and…* | 21 | 28 | 7 | 310 | 0.04 | 0.19 | 320 |

---

Reported widths are intercepted core lengths and not true widths, as relationships with intercepted structures and contacts vary. Based on core-angle measurements, true widths are estimated at approximately 77% of reported core lengths. Silver equivalents reported are calculated above do not assume metallurgical recoveries and were calculated using AgEg. (g/t) = Ag (g/t) % + (Pb% \*(US$0.94/lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)\*10,000) + (Zn% \*(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)\*10,000). Metal prices used in this silver equivalent calculation are US$16.50/Troy oz. Ag, US$0.94/lb. Pb and US$1.00/lb. Zn.

The Company adopts industry recognized best practices in its implementation of QA/QC methods. A geochemical standard control sample and one blank sample is inserted into the sample stream every 20th sample. Duplicates are taken at every 40th sample. Standards and duplicates including lab duplicates and standards and are analyzed using Thompson-Howarth plots. Samples are shipped to ALS Global Laboratories in Ururo, Bolivia for preparation, and then shipped to ALS Global laboratories for analysis in Lima, Peru. Samples were analyzed using intermediate level four acid digestion. Silver overlimits are analyzed using fire assay with a gravimetric finish. ALS Laboratories sample management system meets all requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015. All ALS geochemical hub laboratories are accredited to ISO/IEC 17025:2017 for specific analytical procedures.

------

All samples are taken from HQ-diameter core which split in half by a diamond-blade masonry saw. One-half of the core is submitted for laboratory analysis and the other half is preserved on the Company's secured core facility for reference. All core is geotechnically analyzed, photographed and then logged by geologists prior to sampling.

During the year ended December 31, 2019, the Company assessed whether there was any indication that the previously recognized impairment loss in connection with the Pulacayo Project may no longer exist or may have decreased. The Company noted the following indications that the impairment may no longer exist:

• The Company signed a mining production contract granting the Company the 100% exclusive right to develop and mine at the Pulacayo Project;

• The Company renewed its exploration focus to develop the Pulacayo Project in 2020;

• The Company re-initiated active exploration and drilling program on the property;

• Completed a positive final settlement of Bolivian tax dispute.

As the Company identified indications that the impairment may no longer exist, the Company completed an assessment to determine the recoverable amount of the Pulacayo Project.

In order to estimate the fair-value of the property the Company engaged a third-party valuation consultant and also utilized level 3 inputs on the fair value hierarchy to estimate the recoverable amount based on the property's fair value less costs of disposal determined with reference to dollars per unit of metal in-situ.

With reference to metal in-situ, the Company applied US$0.79 per ounce of silver resource to its 36.8 million ounces of silver resources and US$0.0136 per pound of zinc or lead in resource to its 303 million pounds of zinc and lead.

The Company also considered data derived from properties similar to the Pulacayo Paca Property. The data consisted of property transactions and market valuations of companies holding comparable properties, adjusted to reflect the possible impact of factors such as location, political jurisdiction, commodity, geology, mineralization, stage of exploration, resources, infrastructure and property size.

As the recoverable amount estimated with respect to the above was $31.4 million an impairment recovery of $13,708,200 was recorded during the year ended December 31, 2019.

*2020*

<u>*Diamond Drilling*</u>

Drilling that began at the Pulacayo deposit in December of 2019 was completed in February of 2020. The Company announced its first set of results on January 21, 2020, from borehole PUD 267 which intercepted 10 meters of mineralization grading 147 g/t silver, 9.8% zinc, and 2.0% lead (539 g/t AgEq) within 35.5 meter mineralization grading 230 g/t AgEq starting 31.5 meters downhole.

On March 6, 2020, the Company released additional results from its first 2,598 meters of drilling, which focused on the western portion of the Pulacayo Project and on August 11, 2020, the Company announced further diamond infill drilling results from the Pulacayo Project. Complete results of all first phase 2020 drilling are tabulated below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole ID** | **From (m)** | **To (m)** | **Interval (m)** | **Ag (g/t)** | **Zn (%)** | **Pb (%)** | **AgEq** |
| PUD267\* | 31.5 | 67 | 35.5 | 54.3 | 4.31 | 0.92 | 229.6 |
| *including…* | 117 | 123 | 6 | 47.8 | 1.11 | 0.25 | 89.7 |
| PUD268 | 21 | 23 | 2 | 20 | 1.34 | 0.77 | 92.6 |
| PUD274 | 75 | 77 | 2 | 93.5 |  | 0.42 | 98.8 |
| PUD274 | 82 | 83 | 1 | 83 |  | 0.09 | 77.4 |
| PUD283 | 248 | 350 | 102 | 145 | 2.56 | 1.05 | 255 |
| *including..* | 248 | 282 | 34 | 9 | 1.05 | 0.22 | 52 |
| *and…* | 282 | 297 | 15 | 35 | 2.99 | 0.4 | 148 |
| *and…* | 297 | 310 | 13 | 157 | 5.15 | 1.47 | 370 |
| *and…* | 310 | 317 | 7 | 225 | 3.74 | 1.15 | 371 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *and…* | 317 | 322 | 5 | 1565 | 3.85 | 8.25 | 1825 |
| *and…* | 322 | 329 | 7 | 134 | 1.73 | 1.18 | 222 |
| *and…* | 329 | 350 | 21 | 76 | 2.65 | 0.82 | 188 |
| PUD284 | 30.5 | 204.2 | 173.7 | 15 | 0.67 | 0.28 | 46 |
| *including…* | 30.5 | 55 | 24.5 | 3 | 2.45 | 0.1 | 20 |
| *and…* | 55 | 65 | 10 | 113 | 2.11 | 1.93 | 243 |
| *and…* | 65 | 79 | 14 | 13 | 1.2 | 0.44 | 69 |
| *and…* | 79 | 101 | 22 | 4 | 0.36 | 0.11 | 20 |
| *and…* | 101 | 204.2 | 103.2 | 10 | 0.59 | 0.18 | 36 |
| *PUD284* | 206.3 | 273 | 66.7 | 112 | 1.94 | 0.46 | 182 |
| Interval: | 206.3 | 240 | 33.7 | 46 | 2.12 | 0.41 | 129 |
| Interval: | 240 | 256 | 16 | 79 | 2.7 | 0.72 | 189 |
| Interval: | 256 | 273 | 17 | 274 | 1.13 | 0.33 | 295 |
| *PUD284* | 282 | 318 | 36 | 26 | 1.01 | 20 | 70 |
| *including…* | 282 | 288 | 6 | 13 | 0.94 | 0.27 | 54 |
| *and…* | 288 | 300 | 12 | 60 | 1.48 | 0.61 | 127 |
| *and…* | 300 | 318 | 18 | 7 | 0.72 | 0.18 | 38 |

---

Reported widths are intercepted core lengths and not true widths, as relationships with intercepted structures and contacts vary. Based on core-angle measurements, true widths are estimated at approximately 61% of reported core lengths. Silver equivalent is calculated as follows: Ag Eq. (g/t) = Ag (g/t)\*89.2% + (Pb% \*(US$0.94/ lb. Pb /14.583 Troy oz/lb./US$16.50 per Troy oz. Ag)\*10,000\*91.9%) + (Zn% \*(US$1.00/lb. Zn/14.583 Troy oz/lb./US$16.50 per Troy oz. Ag)\*10,000\*82.9). This calculation incorporates metallurgical recoveries from test work completed for Pulacayo in 2013 by Universidad Tecnica de Oruro (UTO), in Oruro and La Paz, Bolivia as well as at Maelgwyn Mineral Services Africa (MMSA) in Roodeporrt, South Africa.

Drilling was commenced and completed in October 2020 at the Paca deposit. A 545 meter program focused on potential reinterpretation of the geology in the area. Geological mapping identified additional structures in the Paca area that may run oblique to the main east-west trending structure. In this program, 5 holes were drilled diagonally to test possible oblique structures for 'blind' mineralization that might have previously gone undetected. Significant results are shown below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Hole ID** | **From** | **To** | **Length (m)** | **Ag (g/t)** | **Zn %** | **Pb %** | **AgEq\*** |
| PND114 | 1.5 | 18.0 | 16.5 | 43 | 0.11 | 0.36 | 55 |
| PND115 | 3.0 | 69.0 | 66.0 | 48 | 0.10 | 0.80 | 75 |
| PND116 | 7.0 | 37.0 | 30.0 | 23 | 0.15 | 0.42 | 41 |
| PND117 | 51.0 | 82.0 | 31.0 | 3 | 0.45 | 0.31 | 31 |
| PND118 | 18.0 | 38.0 | 20.0 | 25 | 0.09 | 0.09 | 29 |
| PND118 | 67.0 | 179.0 | 112.0 | 15 | 0.50 | 0.48 | 50 |
| including… | 133.0 | 143.0 | 10.0 | 61 | 0.65 | 0.37 | 93 |

---

------

(\*) Silver equivalent ("AgEq") calculation is based on NI43-101 compliant 2020 resource report completed for the Paca deposit by Mercator Geological Services (see Company's press release dated October 13th, 2020). Silver equivalent is calculated as follows: Ag Eq. = Silver Equivalent (Recovered) = (Ag g/t\*89.2%)+((Pb%\*(US$0.95/lb. Pb/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*91.9%))+((Zn%\*(US$1.16/lb. Zn/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*82.9%)) and assumed metallurgical recoveries. Metal prices of US$17/oz Ag, US$0.95/lb Pb, and US$1.16/lb Zn apply.

Reported widths are intercepted core lengths and not true widths, as relationships with intercepted structures and contacts vary. Based on core-angle measurements, true widths range from 77% to 86% of the reported core length.

PND 114, 115, 118 drilled tested oblique structures parallel to the main east-west trend and discovered new mineralized zones.

PND 114 intersected 16.5 meters of mineralization grading 55g/t silver equivalent that is to the north of the Paca north zone.

PND 115 intercepted 66 meters of mineralization grading 75g/t silver equivalent between Paca main zone and Paca north zone, which are 250 meters apart.

PND 118 was drilled at the eastern edge of the Paca main zone and intersected 112 meters of mineralization grading 50 g/t silver equivalent.

The Company adopts industry recognized best practices in its implementation of QA/QC methods. A geochemical standard control sample and one blank sample is inserted into the sample stream every 20th sample. Duplicates are taken at every 40th sample. Standards and duplicates including lab duplicates and standards and are analyzed using Thompson-Howarth plots. Samples are shipped to ALS Global Laboratories in Ururo, Bolivia for preparation, and then shipped to ALS Global laboratories for analysis in Lima, Peru. Samples were analyzed using intermediate level four acid digestion. Silver overlimits are analyzed using fire assay with a gravimetric finish. ALS Laboratories sample management system meets all requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015. All ALS geochemical hub laboratories are accredited to ISO/IEC 17025:2017 for specific analytical procedures.

All samples are taken from HQ-diameter core which split in half by a diamond-blade masonry saw. One-half of the core is submitted for laboratory analysis and the other half is preserved on the Company's secured core facility for reference. All core is geotechnically analyzed, photographed and then logged by geologists prior to sampling.

*District Exploration*

In March 2020 the Company further announced that it had commenced district exploration program at its Pulacayo Project. The Company would be conducting geological mapping, with relevant sampling and possible trenching on the property. Induced polarization geophysics would also be conducted in tandem with the field program, with 106 line-kilometers of survey having been outlined.

In July 2020, the Company announced results of rock chip samples taken from the San Leon underground tunnel. This geological sampling and mapping program are part of an ongoing district exploration program announced on March 9, 2020, at the Company's Pulacayo Silver Project in Bolivia. A total of 113 chip samples were collected at intervals of from 0.85 to 3.0 meters to better characterize the geology and alteration of the San Leon tunnel, which continues for 3km to the south of the mapping area, passing through the Company's existing NI43-101 Pulacayo resource and connects to the town of Pulacayo. The tunnel also extends to the north for 1 km where historically the Pulacayo mine's ore was carted for smelting during the 1800's. Sample results are tabulated below:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Sample ID** | **TYPE** | **Azimuth** | **WIDTH<br>(m)** | **Ag ppm** | **Pb %** | **Zn %** | **Ag Eq.<br>ppm** | **Structure** | **DIP_DIR** | **DIP** |
| 3879 | Chip | 350 | 1.5 | 400 | 0.876 | 0.929 | 420 | Breccia | 20 | 80 |
| 3883 | Chip | 350 | 0.9 | 77 | 0.342 | 0.287 | 91 | Fault | 0 | 72 |
| 3881 | Chip | 7 | 1.8 | 25 | 0.137 | 0.127 | 32 | Contact | 345 | 78 |
| 3878 | Chip | 13 | 0.9 | 5 | 0.306 | 0.399 | 29 | Veinlets | 0 | 85 |
| 3882 | Chip | 338 | 1.8 | 17 | 0.18 | 0.074 | 24 | Veinlets | 350 | 65 |
| 3880 | Chip | 5 | 1.9 | 6 | 0.132 | 0.102 | 14 | Veinlets | 345 | 65 |

---

Mapping identified a vein system trending in a roughly east-west direction at the Pacamayo zone ("Veta Pacamayo"). The vein system measures approximately 175 meters in width south to north in the tunnel and is situated 1.3 kilometers north of the Pulacayo resource and 5km south of Paca resource. Highlights of the tunnel chip samples taken in Veta Pacamayo include 420g/t AgEq\* over 1.5 meters and 91g/t AgEq over 0.9 meters.

------

The Pulacayo TVS (Veta Pulacayo) that hosts the Company's indicated silver resource of 30.4 million oz @ 455g/t and inferred resource of 6.3 million oz at 406 g/t likewise trends roughly east-west, indicating that the Veta Pacamayo represents a parallel system that has seen very little exploration to date.

Geological mapping also identified a transition in the intensity of alteration (argillic-style) along the San Leon tunnel. Highest intensity alteration occurs in the Veta Pulacayo, and Veta Pacamayo areas and coincides with the highest observed chip sample silver values.

(\*) Silver equivalent is calculated as follows: Ag Eq.(g/t) = Ag (g/t)\*89.2%+(Pb% \*(US$0.94/ lb. Pb /14.583 Troy oz/lb./US$16.50 per Troy oz. Ag)\*10,000\*91.9%) + (Zn% \*(US$1.00/lb. Zn/14.583 Troy oz/lb./US$16.50 per Troy oz. Ag)\*10,000\*82.9). This calculation incorporates metallurgical recoveries from test work completed for the Pulacayo Project in 2013.

In September 2020 geological mapping was conducted in the Pero area of the Pulacayo Project. Pero is located to the southeast of the TVS that hosts the Pulacayo deposit. Geological mapping and surface sampling identified an area of silver bearing surface mineralization of up to 200 g/t silver several hundreds of meters south of the projected east-west TVS trend, suggesting that the TVS was offset southward in this portion of the system where strong alteration can be observed at surface covering 250 meters by 100 meters wide. This reinterpreted surface projection of the TVS coincides with some historic Spanish workings in that area of property that date back to the 16th Century. Highlights of assay results from recent surface samples at Pero are tabulated below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sample ID** | **Type** | **Azimuth** | **Width (m)** | **Ag (g/t)** | **Zn%** | **Pb%** |
| 1313 | Chip | 210 | 3 | 200 | 0.1 | 0.1 |
| 1314 | Chip | 195 | 1.2 | 200 | 0.1 | 0.01 |
| 1295 | Chip | 340 | 3 | 164 | 0.0164 | 0.0164 |
| 1297 | Chip | 320 | 1.4 | 132 | 0.0132 | 0.0132 |
| 1315 | Chip | 200 | 2.9 | 100 | 0.01 | 0.01 |
| 1301 | Chip | 240 | 4 | 72 | 0.0072 | 0.0072 |
| 1303 | Chip | 200 | 6.4 | 67 | 0.0067 | 0.0067 |
| 1323 | Chip | 20 | 4 | 50 | 0.005 | 0.005 |
| 1304 | Chip | 150 | 3.7 | 46 | 0.0046 | 0.0046 |

---

*2021*

<u>*Diamond Drilling*</u>

In December 2020 the Company commenced a 940 meter diamond drilling program at the Pero target within its Pulacayo Project in Bolivia. Pero is located at the easternmost portion of the Pulacayo deposit and is the least understood area geologically. Field work in 2020 identified potential structural remobilization in this area that might explain the erratic nature of mineralization within the TVS as it occurs in this area of the property. A summary of results from this drilling is tabulated below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **BHID** | **From (m)** | **To (m)** | **Length (m)** | **Ag (g/t)** | **Pb %** | **Zn %** | **AgEq\* (g/t)** |
| PUD285 | 30.6 | 44.6 | 14.0 | 43 | 0.19 | 0.02 | 46 |
| PUD 285 | 143.0 | 191.0 | 48.0 | 10 | 0.11 | 0.17 | 23 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| PUD 286 | 99.0 | 124.0 | 25.0 | 18 | 0.33 | 0.09 | 32 |
| PUD 286 | 148.0 | 152.0 | 4.0 | 393 | 3.79 | 0.88 | 518 |
| PUD 286 | 174.0 | 183.0 | 9.0 | 20 | 0.13 | 0.05 | 25 |
| PUD 287 | 56.0 | 78.0 | 22.0 | 43 | 0.23 | 0.02 | 48 |
| PUD 287 | 127.0 | 139.0 | 12.0 | 15 | 0.01 | 0.01 | 15 |

---

\*Ag Eq. = Silver Equivalent (Recovered) = (Ag g/t\*89.2%)+((Pb%\*(US$0.95/lb. Pb/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*91.9%))+((Zn%\*(US$1.16/lb. Zn/14.583 Troy oz./lb./US$17 per Troy oz. Ag)\*(10,000\*82.9%)). Sulphide zone metal recoveries of 89.2% for Ag, 91.9% for Pb, and 82.9% for Zn were used in the Silver Equivalent (Recovered) equation and reflect metallurgical testing results disclosed previously for the Pulacayo Deposit. Reported widths are intercepted core lengths and not true widths, as relationships with intercepted structures and contacts vary. Based on core-angle measurements, true widths range from 75% to 85% of the reported core length.

Through 2021 the Company conducted additional drilling over different areas of the property to test several induced polarization targets that were identified through a geophysical program. A total of 1,972m were drilled with no significant results found through these efforts.

During the year ended December 31, 2021, the Company:

• reported drilling at the Pulacayo Projects continued past 1,972m of its 2,000 m drill program and Triunfo Project grab samples assayed up to 294 g/t silver.

• started a 2,000-meter drilling program at Pulacayo Project The goal is to expand Pulacayo's silver resource base, which currently stands at 106.7 million oz of indicated silver and 13.1 million oz of inferred silver according to an independent technical report by Mercator Geological Partners, effective October 13, 2020, and available on sedar.com. (Details provided in Company's news release dated October 13, 2020).

• identified of a large linear anomaly measuring over 1,400 meters in length, up to 250 meters wide, starting at a depth of approximately 250 meters from surface at its Pulacayo silver project in Potosi department, Bolivia.

***Mineral Resources and Mineral Reserves Comparison***

No mineral reserves were reported as of December 31, 2020 and 2021. There were no changes in reported mineral resources reported for the Pulacayo Project for the years ended December 31, 2020 and 2021. The Company no longer reports mineral resources for the Gibellini project for the year ended December 31, 2021 (a 100% reduction from the mineral resources reported in December 31, 2020) due to the disposition of the project on January 14, 2022 in the plan of arrangement described earlier.

**Regulation S-K 1300 Internal Controls Disclosure**

Qualified persons, including third parties and Company employees, are responsible for estimating mineral resources and reserves. The Company has an internal review team, consisting of a broad spectrum of internal personnel whose responsibilities include review of the mineral resources and reserves estimation reporting for compliance with SEC rules and regulations. The internal review team includes members from the Company's accounting, finance and business departments. Reports prepared by qualified persons and third parties are reviewed at various levels of the internal review team before they are ultimately reviewed and approved by our senior leadership team.

With respect to historical exploration by other companies, the exploration and quality control procedures used by were evaluated in the 2022 Pulacayo Technical Report, which evaluation was reviewed as part of the Company's internal control procedures.

------

**ITEM 19. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| [1.1\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename2.htm) | [Articles of Incorporation (incorporated by reference from our Registration Statement on Form 20-F filed with the SEC on June 27, 2018).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename2.htm) |
| [1.2\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495420002723/prpcf_ex993.htm) | [Amendment to Articles of Incorporation dated March 16, 2020 (incorporated by reference filed with the SEC on March 17, 2020.)](http://www.sec.gov/Archives/edgar/data/1545224/000165495420002723/prpcf_ex993.htm) |
| [2.1](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex21.htm)\* | [Description of Registered Securities (incorporated by reference from our Annual Report on Form 20-F filed with the SEC on May 9, 2022)](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex21.htm) |
| [4.1\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename4.htm) | [Debt Settlement Agreement dated January 13, 2017 among Silver Elephant Mining Corp., Linx and John Lee (incorporated by reference from our Registration Statement on Form 20- F filed with the SEC on June 27, 2018).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename4.htm) |
| [4.2\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename5.htm) | [Mineral Lease Agreement dated June 22, 2017 between Silver Elephant Mining Corp. and Janelle Dietrich (incorporated by reference from our Registration Statement on Form 20-F filed with the SEC on June 27, 2018).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename5.htm) |
| [4.3\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename6.htm) | [Mineral Lease Agreement dated July 10, 2017 among Silver Elephant Mining Corp., Richard A. McKay, Nancy M. Minoletti and Pamela S. Scutt (incorporated by reference from our Registration Statement on Form 20-F filed with the SEC on June 27, 2018).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename6.htm) |
| [4.4\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename7.htm) | [Share Purchase Agreement dated February 7, 2018 among Silver Elephant Mining Corp., Medalist Capital Ltd. and 631208 B.C. Ltd. (incorporated by reference from our Registration Statement on Form 20-F filed with the SEC on June 27, 2018.](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename7.htm) |
| [4.5\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename8.htm) | [Amendment to the Mineral Lease Agreement dated April 19, 2018 between Silver Elephant Mining Corp. and Janelle Dietrich (incorporated by reference from our Annual Report on Form 20-F filed with the SEC on March 31, 2019).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename8.htm) |
| [4.6\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename9.htm) | [Share-Based Compensation Plan (incorporated by reference from our Registration Statement on Form 20-F filed with the SEC on June 27, 2018).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318002727/filename9.htm) |
| [4.7\*](http://www.sec.gov/Archives/edgar/data/1545224/000106299318003550/filename2.htm) | [English Summary of Pulacayo Joint Venture Agreement (incorporated by reference from our Annual Report on Form 20-F filed with the SEC on March 31, 2019).](http://www.sec.gov/Archives/edgar/data/1545224/000106299318003550/filename2.htm) |
| [4.8\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495420011588/silef_ex991.htm) | [Underwriting Agreement between Silver Elephant Mining Corp., and Mackie Research Capital Corporation, Canaccord Genuity Corp. and Sprott Capital Partners LP. dated October 26, 2020 (incorporated by reference from our Form 6-K filed with the SEC on October 29, 2020).](http://www.sec.gov/Archives/edgar/data/1545224/000165495420011588/silef_ex991.htm) |
| [4.9\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495420012652/silef_ex991.htm) | [Amendment to Underwriting Agreement between Silver Elephant Mining Corp., and Mackie Research Capital Corporation, Canaccord Genuity Corp. and Sprott Capital Partners LP. dated November 17, 2020 (incorporated by reference from our Form 6-K filed with the SEC on November 18, 2020.)](http://www.sec.gov/Archives/edgar/data/1545224/000165495420012652/silef_ex991.htm) |
| [4.10\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001352/silef_ex991.htm) | [The El Triunfo Sales and Purchase Agreement dated July 13, 2020 between the Company's subsidiary Illumina Silver Mining Corp. and a private party to acquire the El Triunfo Gold-Silver-Lead-Zinc Project (incorporated by reference filed with the SEC on February 9, 2021).](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001352/silef_ex991.htm) |
| [4.11\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex991.htm) | [Minago Project Asset Purchase Agreement dated January 21, 2021 (incorporated by reference and filed with the SEC on February 10, 2021)](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex991.htm) |
| [4.12\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex992.htm) | [Voting Trust Agreement dated February 9, 2021 between Victory Nickel Inc. and the Company dated February 9, 2021 (incorporated by reference and filed with the SEC on February 10, 2021).](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex992.htm) |
| [4.13\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex993.htm) | [Voting Trust Agreement in respect to the Company's Common Shares dated February 9, 2021 (incorporated by reference and filed with the SEC on February 10, 2021).](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex993.htm) |
| [4.14\*](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex994.htm) | [Debt Purchase Agreement between City Hall Capital LLC and Silver Elephant Mining Corp (redacted). dated January 15, 2021 (incorporated by reference and filed with the SEC on February 10, 2021).](http://www.sec.gov/Archives/edgar/data/1545224/000165495421001433/silef_ex994.htm) |
| [4.15](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex415.htm)\* | [Amended and Restated Arrangement Agreement dated November 8, 2021 (incorporated by reference from our Annual Report on Form 20-F filed with the SEC on May 9, 2022)](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex415.htm) |
| [8.1](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex81.htm)\* | [List of Subsidiaries (incorporated by reference from our Annual Report on Form 20-F filed with the SEC on May 9, 2022)](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex81.htm) |
| [12.1\*\*](exhibit12-1.htm) | [Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit12-1.htm) |
| [12.2\*\*](exhibit12-2.htm) | [Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit12-2.htm) |
| [13.1\*\*](exhibit13-1.htm) | [Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit13-1.htm) |
| [13.2\*\*](exhibit13-2.htm) | [Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit13-2.htm) |
| [15.1\*](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex152.htm) | [S-K 1300 Pulacayo 2022 Technical Report, effective April 29, 2022 dated May 2, 2022 (incorporated by reference from our Annual Report on Form 20-F filed with the SEC on May 9, 2022)](http://www.sec.gov/Archives/edgar/data/0001545224/000165495422006300/silef_ex152.htm) |
| 101.INS | Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
| [101.SCH](silef-20211231.xsd) | [Inline XBRL Taxonomy Extension Schema Document](silef-20211231.xsd) |

---

------

---

| | |
|:---|:---|
| [101.CAL](silef-20211231_cal.xml) | [Inline XBRL Taxonomy Extension Calculation Linkbase Document](silef-20211231_cal.xml) |
| [101.DEF](silef-20211231_def.xml) | [Inline XBRL Taxonomy Extension Definition Linkbase Document](silef-20211231_def.xml) |
| [101.LAB](silef-20211231_lab.xml) | [Inline XBRL Taxonomy Extension Label Linkbase Document](silef-20211231_lab.xml) |
| [101.PRE](silef-20211231_pre.xml) | [Inline XBRL Taxonomy Extension Presentation Linkbase Document](silef-20211231_pre.xml) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\* Incorporated by reference from the Company's SEC filings.

\*\* Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10 nil

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nil <br>

------

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | | |
|:---|:---|:---|
|  |  | **SILVER ELEPHANT MINING CORP.** |
| Date: March 3, 2023 | By: | /s/ John Lee |
|  |  | John Lee |
|  |  | Chief Executive Officer |

---

------

## Exhibit 12.1

------

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO**

**EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I , John Lee, certify that:

1. I have reviewed this annual report on Form 20-F/A of Silver Elephant Mining Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: March 3, 2023

---

| |
|:---|
| */s/ John Lee* |
| John Lee |
| Chief Executive Officer |

---

------

## Exhibit 12.2

------

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I , Andrew Yau, certify that:

1. I have reviewed this annual report on Form 20-F/A of Silver Elephant Mining Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: March 3, 2023

---

| |
|:---|
| */s/ Andrew Yau* |
| Andrew Yau<br> Chief Financial Officer |

---

------

## Exhibit 13.1

------

 **CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the annual report on Form 20-F/A of Silver Elephant Mining Corp. (the "Company") for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Annual Report"), I, John Lee, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 3, 2023

---

| |
|:---|
| */s/ John Lee* |
| John Lee<br> Chief Executive Officer |

---

A signed original of this written statement required by Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

------

## Exhibit 13.2

------

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the annual report on Form 20-F/A of Silver Elephant Mining Corp. (the "Company") for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Annual Report"), I, Andrew Yau, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 3, 2023

---

| |
|:---|
| */s/ Andrew Yau*  |
| Andrew Yau<br> Chief Financial Officer |

---

A signed original of this written statement required by Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

------