# EDGAR Filing Document

**Accession Number:** 0001659520
**File Stem:** 0001062993-23-006709
**Filing Date:** 2023-3
**Character Count:** 607521
**Document Hash:** df7bae9c13a49f9573728503d3aaae67
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-23-006709.hdr.sgml**: 20241204

**ACCESSION NUMBER**: 0001062993-23-006709

**CONFORMED SUBMISSION TYPE**: 40-F

**PUBLIC DOCUMENT COUNT**: 145

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230313

**DATE AS OF CHANGE**: 20230313

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SilverCrest Metals Inc.
- **CENTRAL INDEX KEY:** 0001659520
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 40-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38628
- **FILM NUMBER:** 23726831

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 501
- **STREET 2:** 570 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 3P1
- **BUSINESS PHONE:** (604) 694-1730

**MAIL ADDRESS:**
- **STREET 1:** SUITE 501
- **STREET 2:** 570 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 3P1

?xml version="1.0" encoding="UTF-8"? SilverCrest Metals Inc.: Form 40-F - Filed by newsfilecorp.com

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 40-F**

☐ Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

or

☒ Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

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| | |
|:---|:---|
| For the fiscal year ended **<u>December 31, 2022</u>** | Commission File Number **<u>001-38628</u>** |

---

**<u>SilverCrest Metals Inc.</u>**

(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; <u>**British Columbia, Canada**</u><br>(Province or other jurisdiction of<br>incorporation or organization) | &nbsp;&nbsp; <u>**1040**</u><br>(Primary Standard Industrial Classification<br>Code Number) | &nbsp;&nbsp; <u>**N/A**</u><br>(I.R.S. Employer<br>Identification Number) |

---

**570 Granville Street, Suite 501**

**Vancouver, British Columbia V6C 3P1**

**Canada**

<u>**(604) 694-1730**</u>

(Address and telephone number of Registrant's principal executive offices)

**CT Corporation System**

**1015 15<sup>th</sup> Street N.W.** **, Suite 1000**

**Washington, DC 20005**

<u>**(202) 572-3100**</u>

(Name, address (including zip code) and telephone number (including

area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| <u>**Common Shares, no par value**</u> | <u>**SILV**</u> | <u>**NYSE American LLC**</u> |

---

Securities registered pursuant to Section 12(g) of the Act: **<u>None</u>**

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

For annual reports, indicate by check mark the information filed with this Form:

☒ Annual information form ☒ Audited annual financial statements

Indicate the number of outstanding shares of each of the registrant's classes of capital or common stock as of the close of the period covered by the annual report: As at December 31, 2022, 147,156,264 common shares of the Registrant were issued and outstanding.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for 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.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

☒ Yes ☐ No

------

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company ☐

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. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

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 included in the filing reflect the correction of an error to previously issued financial statements. <sup>1</sup>

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-(b).<sup>2</sup>

________________________________

<sup>1</sup> Check boxes are blank, pending adoption of the underlying rules.

<sup>2</sup> Check boxes are blank, pending adoption of the underlying rules.

------

**EXPLANATORY NOTE**

SilverCrest Metals Inc. (the "Company" or the "Registrant") is a Canadian issuer that is permitted, under the multijurisdictional disclosure system adopted by the United States Securities and Exchange Commission (the "SEC") and the securities regulatory authorities in Canada ("MJDS"), to prepare this annual report on Form 40-F (this "Annual Report") pursuant to Section 13 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), in accordance with Canadian disclosure requirements, which are different from those of the United States. The Company is a "foreign private issuer" as defined in Rule 3b-4 under the Exchange Act and Rule 405 under the Securities Act of 1933, as amended. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3 thereunder.

**FORWARD LOOKING STATEMENTS**

The Exhibits incorporated by reference into this Annual Report of the Registrant contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of Canadian and United States securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including gold and silver production and planned work programs. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; the impact of the COVID-19 pandemic on operations, future financings, the Company's share price and on the timing and completion of exploration programs, technical reports and studies; mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting; the development and advancement of the Company's environmental, social and corporate governance strategy.

Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; estimates of mineral resources and metallurgical recoveries; and mining operational and development risks. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuations in the price of gold and silver; the impact of the Ukraine-Russia conflict on supply chains and pricing and availability of commodities; timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company's share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of mineral resource estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; fluctuations in the foreign exchange rate (particularly the Mexican peso, Canadian dollar (C$) and United States dollar ($ or US$); risks associated with taxation in multiple jurisdictions; uncertainty in the Company's ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; risks associated with the Company's debt; uncertainty as to whether the Company's exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company's expectations; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.

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The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to update or revise any forward-looking statements included in this Annual Report if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.

**NOTE TO UNITED STATES READERS - DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES**

The Registrant is permitted, under MJDS, to prepare this Annual Report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Registrant prepares its financial statements, which are filed with this Annual Report, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"), and which may not be comparable to financial statements of United States companies.

**RESOURCE ESTIMATES**

The Company is subject to the reporting requirements of the applicable Canadian securities laws and, as a result, reports the mineral resources and mineral reserves of the projects it has an interest in according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the SEC that are applicable to domestic United States reporting companies. Any mineral reserves and mineral resources reported by the Company in accordance with NI 43-101 may not qualify as such under SEC standards. Accordingly, information included or incorporated by reference in this Annual Report concerning descriptions of mineralization and estimates of mineral resources and mineral reserves under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

**CURRENCY**

All dollar ($) amounts in this Annual Report are in US$, unless C$ are indicated. On December 31, 2022, the daily exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was US$1.00 = C$1.3544 (C$1.00 = US$0.7383).

**ANNUAL INFORMATION FORM** 

The Company's Annual Information Form for the fiscal year ended December 31, 2022 (the "AIF") is filed as <u>Exhibit 99.1</u> to this Annual Report and is incorporated by reference herein.

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**AUDITED ANNUAL FINANCIAL STATEMENTS** 

The audited consolidated financial statements of the Company as at December 31, 2022 and December 31, 2021 and for the years then ended, including the report of the independent auditor thereon, (the "Consolidated Annual Financial Statements") are filed as <u>Exhibit 99.2</u> to this Annual Report, and are incorporated by reference herein.

**MANAGEMENT'S DISCUSSION AND ANALYSIS** 

The Company's Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2022 is filed as <u>Exhibit 99.3</u> to this Annual Report, and is incorporated by reference herein.

**TAX MATTERS**

Purchasing, holding, or disposing of the Company's securities may have tax consequences under the laws of the United States and Canada that are not described in this Annual Report.

**CONTROLS AND PROCEDURES** 

*Disclosure Controls and Procedures* 

At the end of the period covered by this Annual Report for the fiscal year ended December 31, 2022, an evaluation was carried out under the supervision of, and with the participation of, the Company's management, including its Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act). Based upon that evaluation, the Company's CEO and CFO have concluded that the disclosure controls and procedures were effective to give reasonable assurance that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and (ii) accumulated and communicated to management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

*Management's Annual Report on Internal Control over Financial Reporting* 

The required disclosure is included in the section entitled "Management's Report on Internal Control Over Financial Reporting" in the Company's MD&A for the fiscal year ended December 31, 2022, filed as part of this Annual Report.

*Attestation Report of the Registered Public Accounting Firm*

The attestation report of the Company's independent registered public accounting firm, PricewaterhouseCoopers LLP ("PwC") is included in the Consolidated Annual Financial Statements, filed as <u>Exhibit 99.2</u> to this Annual Report and incorporated by reference herein.

*Changes in Internal Control over Financial Reporting* 

During 2022, the Company recorded revenue for the first time on the sale of precious metals. The Company also recorded inventories for the first time during 2022. The Company established certain new internal controls and procedures in relation to the new revenue and inventories to maintain adequate internal control over financial reporting. Except for the new revenue and inventory internal controls, there have been no significant changes in the Company's internal control over financial reporting during 2022, that materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

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**CORPORATE GOVERNANCE**

The Company's Board of Directors (the "Board of Directors" or "Board") is responsible for the Company's corporate governance and has a separately designated standing Corporate Governance and Nominating Committee, Compensation Committee, Safety, Environmental and Social Sustainability Committee and an Audit Committee. The Board of Directors has determined that all the members of the Corporate Governance and Nominating Committee, Compensation Committee, Safety, Environmental and Social Sustainability Committee and Audit Committee are independent, based on the criteria for independence prescribed by Rule 10A-3 of the Exchange Act and Sections 803A and 805(c) of the NYSE American LLC Company Guide, as applicable.

*Corporate Governance and Nominating Committee*

The Corporate Governance and Nominating Committee is responsible for, among other things:

* developing, recommending to the Board and maintaining corporate governance principles applicable to the Company;

* identifying and recommending qualified individuals for nomination to the Board of Directors;

* arranging for evaluations of the Board;

* providing such assistance as the Chair of the Board, if independent, or alternatively the lead director of the Board, may require; and

* addressing any related matters required by applicable law.

The Company's Corporate Governance and Nominating Committee is comprised of John H. Wright (Chair), Graham C. Thody and Laura Diaz, all of whom are independent based on the criteria for independence prescribed by Section 803A of the NYSE American LLC Company Guide.

*Compensation Committee*

Compensation of the Company's CEO and all other executive officers is recommended to the Board of Directors for determination by the Compensation Committee. The Company's Compensation Committee is comprised of Hannes Portmann (Chair), Ani Markova and John H. Wright, all of whom are independent based on the criteria for independence prescribed by Sections 803A and 805(c) of the NYSE American LLC Company Guide.

*Safety, Environmental and Social Sustainability Committee*

The Safety, Environmental and Social Sustainability Committee is charged with the oversight of corporate performance relating to safety, environmental and social sustainability matters. The Committee's purpose is to assess the effectiveness of the Company's policies and practices, monitor compliance with laws, rules and regulations, assess potential operational, human resource and financial risks and opportunities that stem from environmental, geopolitical or social factors. The committee is comprised of Ani Markova (Chair), Hannes Portmann, Laura Diaz and John H. Wright, all of whom are independent based on the criteria for independence prescribed by Section 803A of the NYSE American LLC Company Guide.

*Audit Committee*

The Board of Directors has a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act and Section 803B of the NYSE American LLC Company Guide. The Company's Audit Committee is comprised of Graham C. Thody (Chair), Hannes Portmann, Ani Markova and Anna Ladd-Kruger, all of whom, in the opinion of the Company's Board of Directors, are independent (as determined under Rule 10A-3 of the Exchange Act and Section 803A of the NYSE American LLC Company Guide). All four members of the Audit Committee are financially literate, meaning they are able to read and understand the Company's financial statements and to understand the breadth and level of complexity of the issues that can reasonably be expected to be raised by the Company's financial statements. The Audit Committee meets the composition requirements set forth by Section 803B(2) of the NYSE American LLC Company Guide.

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The members of the Audit Committee are appointed by the Company's Board of Directors annually. Each member of the Audit Committee will remain on the committee until the next annual meeting of shareholders after his or her appointment, unless otherwise removed or replaced by the Board of Directors at any time.

The full text of the Audit Committee Charter is available on the Company's website at <u>www.silvercrestmetals.com</u> and is attached as Appendix B to the AIF, which is filed as <u>Exhibit 99.1</u> to this Annual Report.

*Audit Committee Financial Expert*

The Board of Directors has determined that each of Hannes Portmann, Ani Markova, Anna Ladd-Kruger and Graham C. Thody (i) is financially sophisticated within the meaning of Rule 803B of the NYSE American LLC Company Guide; (ii) is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K; and (iii) is independent (as determined under Exchange Act Rule 10A-3 and Section 803A of the NYSE American LLC Company Guide).

**PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES PROVIDED BY**

**INDEPENDENT AUDITOR**

The Audit Committee pre-approves all audit services to be provided to the Company by its independent auditors. Non-audit services that are prohibited to be provided to the Company by its independent auditors may not be pre-approved. In addition, prior to the granting of any pre-approval, the Audit Committee must be satisfied that the performance of the services in question will not compromise the independence of the independent auditors. All non-audit services performed by the Company's auditor for the fiscal year ended December 31, 2022 were pre-approved by the Audit Committee of the Company. No non-audit services were approved pursuant to the *de minimis* exemption to the pre-approval requirement.

**PRINCIPAL ACCOUNTANT FEES AND SERVICES - INDEPENDENT AUDITOR**

PwC (PCAOB ID# 271), located in Vancouver, British Columbia, acted as the Company's independent auditor for the fiscal years ended December 31, 2022 and 2021. For a description of the total amount billed to the Company by PwC for services performed in the last two financial years by category of service (audit fees, audit related fees, tax fees and all other fees), see "Audit Committee Disclosure - External Auditor Service Fees (By Category)" in the AIF, which is filed as <u>Exhibit 99.1</u> to this Annual Report and incorporated by reference herein.

**OFF-BALANCE SHEET ARRANGEMENTS**

The Company does not have any off-balance sheet arrangements.

**CODE OF ETHICS**

The Company has adopted a Code of Business Conduct and Ethics that applies to directors, officers and employees of, and consultants and contractors to, the Company (the "Code"). The Code has been posted on the Company's website at www.silvercrestmetals.com. The Code meets the requirements for a "code of ethics" within the meaning of that term in General Instruction 9(b) of the Form 40-F.

All amendments or waivers of the Code with respect to any of the employees, officers or directors covered by it will be promptly disclosed as required by applicable securities rules and regulations. During the fiscal year ended December 31, 2022, the Company did not substantively amend, waive or implicitly waive any provision of the Code with respect to any of the Company's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

**NOTICES PURSUANT TO REGULATION BTR**

There were no notices required by Rule 104 of Regulation BTR that the Company sent during the year ended December 31, 2022 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

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**MINE SAFETY DISCLOSURE**

We do not operate any mines in the United States and have no mine safety incidents to report for the year ended December 31, 2022.

**NYSE AMERICAN STATEMENT OF GOVERNANCE DIFFERENCES**

The Company's common shares are listed on the NYSE American. Section 110 of the NYSE American Company Guide permits the NYSE American to consider the laws, customs and practices of foreign issuers in relaxing certain NYSE American listing criteria, and to grant exemptions from NYSE American listing criteria based on these considerations. A company seeking relief under these provisions is required to provide written certification from independent local counsel that the non-complying practice is not prohibited by home country law. A description of the significant ways in which the Company's governance practices differ from those followed by domestic companies pursuant to NYSE American standards is as follows:

*Shareholder Meeting Quorum Requirement*: The NYSE American minimum quorum requirement for a shareholder meeting is one-third of the outstanding shares of common stock. In addition, a company listed on the NYSE American is required to state its quorum requirement in its bylaws. The Company's quorum requirement as set forth in its Articles are two shareholders whether present by proxy, holding in the aggregate at least 5% of the issued shares entitled to be voted at the meeting.

*Shareholder Approval for Equity Compensation Plans.* The NYSE American Company Guide requires shareholder approval in connection with the establishment of an equity compensation arrangement pursuant to which options or stock may be acquired by officers, directors, employees, or consultants of a company. The Company follows the shareholder approval requirements of the Toronto Stock Exchange in connection with the establishment of equity compensation arrangements pursuant to which its officers, directors, employees, or consultants may acquire options or common shares.

**DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION**

Not applicable.

**UNDERTAKING**

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by SEC staff, and to furnish promptly, when requested to do so by SEC staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

**CONSENT TO SERVICE OF PROCESS**

The Company has previously filed with the SEC a written consent to service of process on Form F-X. Any change to the name or address of the Company's agent for service shall be communicated promptly to the SEC by amendment to the Form F-X referencing the file number of the Company.

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**SIGNATURES**

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all the requirements for filing on Form 40-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
|  | **SILVERCREST METALS INC.** |
| By: | /s/ Anne Yong |
|  | Name: Anne Yong |
|  | Title: Chief Financial Officer |

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Date: March 13, 2023

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**EXHIBIT INDEX**

The following documents are being filed with the SEC as Exhibits to this Annual Report:

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.1](exhibit99-1.htm) | [Annual Information Form dated March 10, 2023](exhibit99-1.htm) |
| [99.2](exhibit99-2.htm) | [Audited Annual Consolidated Financial Statements and notes thereto as at and for the years ended December 31, 2022 and December 31, 2021, together with the report thereon of the independent auditor](exhibit99-2.htm) |
| [99.3](exhibit99-3.htm) | [Management's Discussion and Analysis for the year ended December 31, 2022](exhibit99-3.htm) |
| [99.4](exhibit99-4.htm) | [Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act](exhibit99-4.htm) |
| [99.5](exhibit99-5.htm) | [Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act](exhibit99-5.htm) |
| [99.6](exhibit99-6.htm) | [Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit99-6.htm) |
| [99.7](exhibit99-7.htm) | [Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit99-7.htm) |
| [99.8](exhibit99-8.htm) | [Consent of PricewaterhouseCoopers LLP](exhibit99-8.htm) |
| [99.9](exhibit99-9.htm) | [Consent of Aref](exhibit99-9.htm) |
| [99.10](exhibit99-10.htm) | [Consent of Barry](exhibit99-10.htm) |
| [99.11](exhibit99-11.htm) | [Consent of Burga](exhibit99-11.htm) |
| [99.12](exhibit99-12.htm) | [Consent of Fier](exhibit99-12.htm) |
| [99.13](exhibit99-13.htm) | [Consent of G Mining Services](exhibit99-13.htm) |
| [99.14](exhibit99-14.htm) | [Consent of Hydro-Ressources](exhibit99-14.htm) |
| [99.15](exhibit99-15.htm) | [Consent of Kalanchey](exhibit99-15.htm) |
| [99.16](exhibit99-16.htm) | [Consent of Michaud](exhibit99-16.htm) |
| [99.17](exhibit99-17.htm) | [Consent of P&E Mining Consultants Inc.](exhibit99-17.htm) |
| [99.18](exhibit99-18.htm) | [Consent of Preciado](exhibit99-18.htm) |
| [99.19](exhibit99-19.htm) | [Consent of Puritch](exhibit99-19.htm) |
| [99.20](exhibit99-20.htm) | [Consent of Rockland Ltd.](exhibit99-20.htm) |
| [99.21](exhibit99-21.htm) | [Consent of Stone](exhibit99-21.htm) |
| [99.22](exhibit99-22.htm) | [Consent of Turner](exhibit99-22.htm) |
| [99.23](exhibit99-23.htm) | [Consent of Verreault](exhibit99-23.htm) |
| [99.24](exhibit99-24.htm) | [Consent of Weston](exhibit99-24.htm) |
| [99.25](exhibit99-25.htm) | [Consent of WSP USA Environment & Infrastructure Inc. (successor to Wood Environment & Infrastructure Solutions, Inc.)](exhibit99-25.htm) |
| [99.26](exhibit99-26.htm) | [Consent of Wu](exhibit99-26.htm) |

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| 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](sil-20221231.xsd) | [Inline XBRL Taxonomy Extension Schema Document](sil-20221231.xsd) |
| [101.CAL](sil-20221231_cal.xml) | [Inline XBRL Taxonomy Extension Calculation Linkbase Document](sil-20221231_cal.xml) |
| [101.DEF](sil-20221231_def.xml) | [Inline XBRL Taxonomy Extension Definition Linkbase Document](sil-20221231_def.xml) |
| [101.LAB](sil-20221231_lab.xml) | [Inline XBRL Taxonomy Extension Label Linkbase Document](sil-20221231_lab.xml) |
| [101.PRE](sil-20221231_pre.xml) | [Inline XBRL Taxonomy Extension Presentation Linkbase Document](sil-20221231_pre.xml) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

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## Exhibit 99.1

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**ANNUAL INFORMATION FORM**

**For the year ended December 31, 2022**

**Dated as of March 10, 2023**

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<u>**FORWARD LOOKING STATEMENTS**</u>

This Annual Information Form of SilverCrest Metals Inc. (the "**Company**" or "**SilverCrest**") contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including gold and silver production and planned work programs. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; the impact of the COVID-19 pandemic on operations, future financings, the Company's share price and on the timing and completion of exploration programs, technical reports and studies; mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting and the development and advancement of the Company's ESG (as defined below) strategy.

Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; estimates of mineral resources and metallurgical recoveries; and mining operational and development risks. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuations in the price of gold and silver; the impact of the Ukraine-Russia conflict on supply chains and pricing and availability of commodities; timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company's share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of mineral resource estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; fluctuations in the foreign exchange rate (particularly the Mexican peso, Canadian dollar and United States dollar); risks associated with taxation in multiple jurisdictions; uncertainty in the Company's ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; risks associated with the Credit Facility (defined below); uncertainty as to whether the Company's exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company's expectations; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.

The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to update or revise any forward-looking statements included in this Annual Information Form if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.

<u>**CAUTIONARY NOTE TO US INVESTORS**</u>

This Annual Information Form includes Mineral Resource and Reserve classification terms that comply with reporting standards in Canada and the Mineral Resource and Reserve estimates are made in accordance with National Instrument 43-101 - *Standards of Disclosure for Mineral Projects* ("**NI 43-101**"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the United States Securities and Exchange Commission (the "**SEC**") applicable to domestic United States reporting companies. Consequently, Mineral Resource and Reserve information included in this Annual Information Form may not be comparable to similar information that would generally be disclosed by United States domestic reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with US standards.

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<u>**TABLE OF CONTENTS**</u>

---

| | |
|:---|:---|
| [**1. GENERAL**](#page_4) | [**3**](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.1 Date of Information](#page_4) | [3](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.2 Conversion Table](#page_4) | [3](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.3 Technical Abbreviations](#page_4) | [3](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.4 Currency](#page_4) | [3](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.5 Qualified Persons](#page_4) | [3](#page_4) |
| [**2. CORPORATE STRUCTURE**](#page_4) | [**3**](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.1 Name, Address and Incorporation](#page_4) | [3](#page_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.2 Intercorporate Relationships](#page_5) | [4](#page_5) |
| [**3. GENERAL DEVELOPMENT OF THE BUSINESS**](#page_5) | [**4**](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.1 Overview](#page_5) | [4](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.2 Three Year History](#page_5) | [4](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.3 Significant Acquisitions](#page_8) | [7](#page_8) |
| [**4. DESCRIPTION OF BUSINESS**](#page_8) | [**7**](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.1 General](#page_8) | [7](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.2 Risk Factors](#page_9) | [8](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.3 Environmental and Social Sustainability](#page_20) | [19](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.4 Mineral Projects](#page_26) | [25](#page_26) |
| [**5. DIVIDENDS**](#page_28) | [**27**](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.1 Dividends](#page_28) | [27](#page_28) |
| [**6. CAPITAL STRUCTURE**](#page_28) | [**27**](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.1 General Description of Capital Structure](#page_28) | [27](#page_28) |
| [**7. MARKET FOR SECURITIES**](#page_29) | [**28**](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.1 Trading Price and Volume](#page_29) | [28](#page_29) |
| [**8. ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER**](#page_29) | [**28**](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.1 Escrowed Securities](#page_29) | [28](#page_29) |
| [**9. DIRECTORS AND OFFICERS**](#page_29) | [**28**](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.1 Name, Occupation and Security Holding](#page_29) | [28](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.2 Cease Trade Orders, Bankruptcies, Penalties or Sanctions](#page_31) | [30](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.3 Conflicts of Interest](#page_32) | [31](#page_32) |
| [**10. AUDIT COMMITTEE DISCLOSURE**](#page_32) | [**31**](#page_32) |
| [**11. LEGAL PROCEEDINGS AND REGULATORY ACTIONS**](#page_34) | [**33**](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.1 Legal Proceedings](#page_34) | [33](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.2 Regulatory Actions](#page_34) | [33](#page_34) |
| [**12. INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**](#page_34) | [**33**](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.1 Interest of Management and Others in Material Transactions](#page_34) | [33](#page_34) |
| [**13. TRANSFER AGENT AND REGISTRARS**](#page_35) | [**34**](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.1 Transfer Agent and Registrars](#page_35) | [34](#page_35) |
| [**14. MATERIAL CONTRACTS**](#page_35) | [**34**](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.1 Material Contracts](#page_35) | [34](#page_35) |
| [**15. INTERESTS OF EXPERTS**](#page_35) | [**34**](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.1 Technical Report Authors](#page_35) | [34](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.2 Auditors](#page_35) | [34](#page_35) |
| [**16. ADDITIONAL INFORMATION**](#page_35) | [**34**](#page_35) |

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**1.** <u>**GENERAL**</u>

**1.1 Date of Information**

All information in this Annual Information Form is as of March 10, 2023, unless otherwise indicated, and the information contained herein is current as of such date, unless otherwise stated.

**1.2 Conversion Table**

All data and information are presented in metric units. In this Annual Information Form, the following conversion factors were used:

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; 2.47 acres | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 hectare | &nbsp;&nbsp; 0.4047 hectares | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 acre |
| &nbsp;&nbsp; 3.28 feet | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 metre | &nbsp;&nbsp; 0.3048 metres | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 foot |
| &nbsp;&nbsp; 0.62 miles | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 kilometre | &nbsp;&nbsp; 1.609 kilometres | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 mile |
| &nbsp;&nbsp; 0.032 ounces (troy) | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 gram | &nbsp;&nbsp; 31.103 grams | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 ounce (troy) |
| &nbsp;&nbsp; 1.102 tons (short) | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 tonne | &nbsp;&nbsp; 0.907 tonnes | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 ton |
| &nbsp;&nbsp; 0.029 ounces/ton | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 gram/tonne | &nbsp;&nbsp; 34.286 grams/tonne | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 ounce/ton |
| &nbsp;&nbsp; 1 ppm | &nbsp;&nbsp; = | &nbsp;&nbsp; 1 gram/tonne |  |  |  |
| &nbsp;&nbsp; 1 ounce/ton | &nbsp;&nbsp; = | &nbsp;&nbsp; 34.286 ppm |  |  |  |
| &nbsp;&nbsp; 1% | &nbsp;&nbsp; = | &nbsp;&nbsp; 10,000 ppm |  |  |  |

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**1.3 Technical Abbreviations**

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; Ag | &nbsp;&nbsp; silver | &nbsp;&nbsp; NI 43-101 | &nbsp;&nbsp; National Instrument 43-101 Standards of Disclosure for Mineral Projects |
| &nbsp;&nbsp; AgEq | &nbsp;&nbsp; silver equivalent<sup>(1)</sup> | &nbsp;&nbsp; NSR | &nbsp;&nbsp; net smelter returns |
| &nbsp;&nbsp; Au | &nbsp;&nbsp; gold | &nbsp;&nbsp; oz | &nbsp;&nbsp; ounce(s) |
| &nbsp;&nbsp; cm | &nbsp;&nbsp; centimetres | &nbsp;&nbsp; Pb | &nbsp;&nbsp; Lead |
| &nbsp;&nbsp; Cu | &nbsp;&nbsp; copper | &nbsp;&nbsp; RC | &nbsp;&nbsp; reverse circulation |
| &nbsp;&nbsp; g | &nbsp;&nbsp; grams | &nbsp;&nbsp; t | &nbsp;&nbsp; Tonne |
| &nbsp;&nbsp; gpt | &nbsp;&nbsp; grams per tonne | &nbsp;&nbsp; tpd | &nbsp;&nbsp; tonnes per day |
| &nbsp;&nbsp; km | &nbsp;&nbsp; kilometres |  |  |
| &nbsp;&nbsp; kt | &nbsp;&nbsp; kilotonne |  |  |

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<sup>(1)</sup> AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1.

**1.4 Currency**

All dollar ($) amounts stated in this Annual Information Form refer to United States dollars ($ or US$) unless Canadian dollars (C$) are indicated. On March 10, 2023, the daily average exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was US$1.00 = C$1.3807 (C$1.00 = US$0.7243). On December 30, 2022, the daily average exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was US$1.00 = C$1.3544 (C$1.00 = US$0.7383).

**1.5 Qualified Persons**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. Eric Fier, CPG, P. Eng, is a "qualified person" within the meaning of NI 43-101, and has reviewed and approved the scientific and technical information relating to the Company's mineral properties disclosed in this Annual Information Form. Mr. Fier is the Chief Executive Officer and a director of SilverCrest. Other qualified persons are responsible for the technical and scientific information contained in the technical reports incorporated by reference in this Annual Information Form. See "Interests of Experts - Names of Experts".

**2.** <u>**CORPORATE STRUCTURE**</u>

**2.1 Name, Address and Incorporation**

SilverCrest Metals Inc. was incorporated under the name "1040669 B.C. Ltd." under the *Business Corporations Act* (British Columbia) ("**BCBCA**") on June 23, 2015. The Notice of Articles of the Company was subsequently amended on August 11, 2015, to change the name of the Company to "SilverCrest Metals Inc.". Upon the Company's incorporation on June 23, 2015, the Company was a wholly owned subsidiary of SilverCrest Mines Inc. ("**SilverCrest Mines**"). The Company was established as part of an arrangement (the "**Arrangement**") completed under the BCBCA on October 1, 2015, pursuant to which First Majestic Silver Corp. ("**First Majestic**") acquired SilverCrest Mines after the Company was spun off from SilverCrest Mines to the former shareholders of SilverCrest Mines. The Arrangement resulted in the Company holding title to various exploration properties located in Mexico that were formerly held by SilverCrest Mines. The common shares of the Company (the "**Common Shares**") commenced trading on the TSX Venture Exchange ("**TSX-V**") on October 9, 2015 and were listed on the NYSE American ("**NYSE**") on August 21, 2018. The Common Shares commenced trading on the Toronto Stock Exchange ("**TSX**") on August 29, 2019, and were concurrently delisted from the TSX-V.

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The head office of the Company is located at Suite 501, 570 Granville Street, Vancouver, British Columbia, V6C 3P1. The registered office of the Company is located at 19th Floor, 885 West Georgia Street, Vancouver, British Columbia, V6C 3H4.

**2.2 Intercorporate Relationships** 

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| | | | |
|:---|:---|:---|:---|
| **Subsidiary** | **Location** | **Ownership** | **Principal activity** |
| NorCrest Metals Inc. ("**NorCrest**") | &nbsp;&nbsp; Canada | &nbsp;&nbsp; 100% | Holding Company |
| Compañía Minera La Llamarada, S.A. de C.V. ("**La Llamarada**") | &nbsp;&nbsp; Mexico | &nbsp;&nbsp; 100% | Exploration and production |

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**3.** <u>**GENERAL DEVELOPMENT OF THE BUSINESS**</u>

**3.1 Overview**

SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC, with an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas. The Company's principal focus is operating its Las Chispas Mine ("**Las Chispas**" or the "**Las Chispas Project**" or the "**Las Chispas Mine**"), which is located approximately 180 km northeast of Hermosillo, Sonora, Mexico. Las Chispas is in a prolific mining area with nearby precious metal producers, consisting of 28 concessions and approximately 1,401 hectares. During Q1, 2021, the Company filed the Las Chispas 2021 Feasibility Study (defined below) and began mine construction. Startup of processing at Las Chispas occurred in Q2, 2022 and commercial production was declared in November 2022.

The Company has a portfolio of four other mineral exploration properties in Sonora, Mexico, comprised of El Picacho property, Cruz de Mayo property, Angel de Plata property and Estacion Llano property.

The Company's Common Shares are currently traded on the TSX under the symbol "SIL" and on the NYSE under the symbol "SILV".

**3.2 Three Year History**

***2020***

<u>Las Chispas</u> 

During 2020, the Company completed approximately 173,000 metres of in-fill and expansion drilling and 6.1 km of underground decline development and in-vein drifting despite the temporary suspension of exploration activities due to COVID-19 (see below). The Company also stockpiled an additional estimated 26 kt of mineralized material. The total stockpile at 2020 year end (excluding historic stockpiles) was estimated to be 52 kt at a diluted grade of 7.0 gpt Au and 587 gpt Ag, or 1,192 gpt AgEq (86.9:1, Ag:Au). Other Las Chispas site activities, during 2020, included earthworks, the building of the administration and warehouse facilities, communication system, water pumping station and initial construction of a temporary quarantined COVID-19 camp.

Drilling and assay data information received by the Company up to and including the cut-off date of October 16, 2020, were incorporated into a Mineral Resource Estimate included in the 2021 Feasibility Study (defined below), filed on February 2, 2021 (refer to section 4.4.1 - Las Chispas Project).

In compliance with COVID-19 related directives issued by the Mexican government, the Company suspended exploration activities at the Las Chispas Project on April 1, 2020. Exploration activities resumed on May 19, 2020, in accordance with all health-related directives issued by the Mexican government and following strict COVID-19 protocols. In May 2020, the Company installed a fully confined temporary camp with a capacity for 160 essential persons to continue its exploration, underground development, and construction of early works with the objective of limiting potential exposure of personnel and nearby communities to the virus.

In Q4 2020, purchase orders were placed for the installation of a multi-phased temporary isolated (COVID-19 related) construction camp at Las Chispas. In Q4 2020, the permit for the main road upgrade and access bridge construction was received.

On December 31, 2020, the Company's subsidiary entered into an engineering, procurement and construction ("**EPC**") contract with Ausenco Engineering Canada Inc. and its affiliate (together as "**Ausenco**") to construct a 1,250 tonne per day process plant at the Las Chispas Project. The EPC contract had a fixed price of $76.5 million and at December 31, 2020, the Company had incurred $23.2 million in costs for detailed engineering work, long lead orders and an initial mobilization payment. As such, at December 31, 2020, the Company's remaining commitment to Ausenco on the EPC contract was $53.3 million. The Company's Board of Directors had approved for the Company's entry into this EPC on December 29, 2020, and as such effective December 29, 2020, the Company determined that the technical feasibility and commercial viability of the Las Chispas Project had been demonstrated based on the substantial amount of work that had been completed, at that time. Accordingly, the Company transferred the capitalized costs of the Las Chispas Project from exploration and evaluation assets to mineral property and began to capitalize development costs.

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<u>Other Properties</u>

During 2020, the Company acquired El Picacho property ("**Picacho**"), a historic gold and silver producing property located approximately 40 km northeast of Las Chispas in Sonora, Mexico, from American Metal Mining, S.A. de C.V. and an affiliate for $2.4 million, including government back taxes, for 100% ownership in 11 mining concessions. In Q4 2020, the Company received all access rights and necessary drill permits (five-year license) for Picacho and drilled 5,800 metres and incurred approximately $608,000 in total exploration expenditures to December 31, 2020.

<u>Financings</u>

On January 10, 2020, the Company completed a private placement with SSR Mining of 1,819,074 Common Shares at a price of C$7.28 per Common Share for gross proceeds of $9.8 million (C$13.2 million). This resulted from SSR Mining exercising its right to maintain its pro rata ownership interest of up to 9.9% of the outstanding Common Shares of the Company pursuant to an agreement between the Company and SSR Mining dated November 28, 2018.

On April 17, 2020, the Company completed a non-brokered private placement of 13,465,001 Common Shares at a price of C$7.50 per Common Share for gross proceeds of $75.3 million (C$101.0 million).

On April 24, 2020, the Company completed a private placement with SSR Mining of 3,597,291 Common Shares at a price of C$7.50 per Common Share for gross proceeds of $20.1 million (C$27.0 million). This resulted from SSR Mining exercising its right to maintain its pro rata ownership interest of up to 9.9% of the outstanding Common Shares of the Company pursuant to an agreement between the Company and SSR Mining dated November 28, 2018.

On May 14, 2020, SSR Mining issued a news release announcing that it had sold its SilverCrest equity position and no longer held any Common Shares of the Company. As a result, SSR Mining's equity participation right pursuant to the agreement between the Company and SSR Mining dated November 28, 2018 expired.

On June 9, 2020, the Company filed a final short form base shelf prospectus to offer common shares, warrants, subscription receipts, debt and convertible debt securities or units of up to an aggregate initial offering price of C$200 million at any time during the 25-month effective period of the prospectus.

On December 31, 2020, NorCrest (as borrower), and the Company, La Llamarada and other subsidiaries (as guarantors), and RK Mine Finance Bermuda 4 Limited (as lender) entered into a credit agreement (the "**2020 Credit Facility**") in the amount of $120 million. On closing of the 2020 Credit Facility on December 31, 2020, NorCrest drew down $30 million. Subsequent drawdowns under the 2020 Credit Facility were available upon satisfaction of certain customary conditions precedent, but were not tied to any construction milestones. There were no hedges, offtake agreements or warrants required as part of the 2020 Credit Facility. The amounts borrowed under the 2020 Credit Facility had a maturity date of December 31, 2024. The Company was allowed to voluntarily prepay amounts owing under the 2020 Credit Facility at any time, subject to a prepayment fee (4% before Year 1; 3% for Years 1 to 3; and 1.5% beyond Year 3). The 2020 Credit Facility had an availability period of up to 20 months if: (a) 50% or greater of the 2020 Credit Facility is drawn by August 31, 2021 (with the commitment to draw provided by June 30, 2021) (drawn during 2020 and 2021), and (b) 75% or greater of the 2020 Credit Facility is drawn by December 31, 2021 (drawn during 2020 and 2021). Interest under the 2020 Credit Facility was payable at a rate of 6.95% plus the greater of: (i) 3-month London Interbank Offered Rate (or agreed upon equivalent) and (ii) 1.5% and was payable quarterly, with a Company option to accrue during the availability period. Up to $30 million of the 2020 Credit Facility could be used for exploration and acquisitions within Sonora, Mexico.

***2021***

<u>Las Chispas</u> 

During Q1, 2021, the Company announced positive results from its 2021 Feasibility Study (defined below), filed on February 2, 2021 (refer to section 4.4.1 - Las Chispas Project) and commenced project construction. At the end of 2021, overall construction progress at Las Chispas was ahead of schedule and was 86.2% complete compared to a scheduled completion of 79.3%. During 2021, the Company committed 75.2% ($103.6 million) of the $137.7 million 2021 Feasibility Study capital cost estimate. Of the remaining capital to be incurred in 2022, 20.7% was related to the Ausenco fixed price EPC contract for process plant construction and 14.7% was unused contingency.

At the end of 2021, SilverCrest completed a total of 17.5 km of underground development since 2019. Approximately 1.8 km of additional development occurred in 2021 beyond the 2021 Feasibility Study life of mine ("**LOM**") plan. During 2021, the Company stockpiled an estimated 33 kt of mineralized material. The total stockpile at 2021 year end (excluding historic stockpiles) was estimated to be 85 kt with grades in-line with the 2021 Feasibility Study Mineral Reserves.

During H1, 2021, the Company completed construction of a new 513 single occupancy room camp. This fully confined camp allowed SilverCrest to continue its exploration, underground development, and construction with the objective of limiting potential exposure of personnel and nearby communities to the COVID-19 virus. Before entering the confined camp, all persons were quarantined prior to being tested for COVID-19 (real time polymerase chain reaction ("**rRT-PCR**") test) and following receipt of negative tests, were transported to site using strict protocols. Once on site, all appropriate COVID-19 related protocols were enforced including additional on site COVID-19 rRT-PCR testing when deemed appropriate. SilverCrest's strict COVID-19 protocols, including its confined camp, resulted in no delays due to COVID-19 or any other reason in 2021 and also resulted in additional benefits in productivity.

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During 2021, the Company completed approximately 114,000 metres of drilling, which predominantly focused on infill drilling of inferred resources to support conversion to indicated resources for potential conversion to mineral reserves.

<u>Other Properties</u>

During 2021, the Company completed approximately 80,700 metres of drilling at Picacho and incurred approximately $10.0 million in total exploration expenditures. Please refer to the Company's news release dated February 24, 2021 for the initial drill results for Picacho.

<u>Financings</u>

On February 22, 2021, the Company completed a prospectus offering of 15,007,500 Common Shares at a price of $9.20 per common share for gross proceeds of $138.1 million ($131.4 million net proceeds). This bought deal financing offering was completed by way of a prospectus supplement to the base shelf prospectus (refer to section 3.2 - Three Year History - 2020).

The Company made drawdowns of $30.0 million on both August 31, 2021 and December 30, 2021 on its $120.0 million 2020 Credit Facility (refer to section 3.2 - Three Year History - 2020).

***2022***

<u>Las Chispas</u>

In late May 2022, the Company completed construction at Las Chispas on time and under budget and commenced commissioning. Since commissioning, the Las Chispas processing plant has performed in-line or ahead of the 2021 Feasibility Study expectations on operating metrics. The Company declared commercial production, effective November 1, 2022.

From the start of commissioning in June 2022 to the end of 2022, the Company processed approximately 188 kt of ore<sup>1</sup> at a grade of 3.05 gpt Au and 312 gpt Ag, or 577 gpt AgEq, compared to the 2021 Feasibility Study plan of 2.53 gpt Au and 254 gpt Ag, or 474 gpt AgEq. Metallurgical recoveries in 2022 were 96.5% for Au and 92.5% for Ag, or 94.4% AgEq (AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1).

In 2022, recovered metal totaled 17,768 oz Au and 1.74 million oz Ag, or 3.29 million oz AgEq which compared to the 2021 Feasibility Study of 12,249 oz Au and 1.18 million oz Ag, or 2.25 million oz AgEq. A total of 15,041 oz Au and 1.44 million oz Ag, or 2.75 million oz AgEq have been produced in 2022, which compares to the 2021 Feasibility Study plan of 10,449 oz Au and 1.00 million oz Ag, or 1.91 million oz AgEq.

Of the metal produced, the Company sold approximately 11,400 ounces of gold for $19.7 million and 1.1 million ounces of silver for $23.8 million.

In 2022, an additional 8.0 km of underground development was completed at the Las Chispas Mine. The average mining rate for Q4, 2022 was 700 tpd, below the 2021 Feasibility Study estimate of 750 tpd, but in line with the Company's revised guidance of 600 to 700 tpd (see news release dated September 14, 2022).

A total of an estimated 201 kt of ore were mined from development and stoping activities in 2022, below the 2021 Feasibility Study projection of an estimated 214 kt. The variance was a result of lower productivity in resue mining stopes due to safety concerns and narrower vein widths in some areas. Long hole mining has progressed well and has achieved production and dilution rates as set out in the 2021 Feasibility Study.

At the end of 2022, total ore stockpiles (including historic stockpiles) were estimated at 261 kt. Stockpiles built prior to the construction decision being made at the end of 2021 were previously expensed (as per the Company's exploration and evaluation policy) and, as a result, the stockpiles carry a lower carried cost. It is expected that stockpiles will continue to represent a notable component of process plant feed through 2024, which will support financial de-risking.

<u>Other Properties</u>

During 2022, the Company completed approximately 26,200 metres of drilling at Picacho and incurred an estimated $5.4 million in total exploration expenditures. Picacho exploration focused on exploration and infill drilling. Please refer to the Company's news release dated April 13, 2022 for drill results for Picacho.

<sup>________________________________________________<br>1</sup>The Company defines ore as mineralized material or feed material with economic value to be processed. <sup></sup>

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<u>Financings</u>

On November 29, 2022, the Company refinanced its $120 million 2020 Credit Facility, of which only $90 million had been drawn, with a new $120 million credit facility (the "**Credit Facility**") through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal. The Credit Facility includes a $50 million term facility ("**Term Facility**") and a $70 million revolving facility ("**Revolving Facility**"). On closing of the Credit Facility, the Company fully drew the $50 million Term Facility and used $40 million of its cash balance to repay the 2020 Credit Facility, which was with an affiliate of RK Mine Finance. The Revolving Facility of $70 million will be available to the Company until November 27, 2026 for general corporate purposes and working capital. On closing of the Credit Facility and repayment of the 2020 Credit Facility, the Company had an estimated cash balance of $50 million, total debt of $50 million and undrawn Revolving Facility of $70 million. The Term Facility has a 3-year term with a maturity date of November 28, 2025. The Revolving Facility has a 4-year term with a maturity date of November 27, 2026. Both the Term Facility and Revolving Facility bear interest at a rate based initially on an adjusted Term secured overnight financing rate as administered by the Federal Reserve Bank of New York ("**SOFR**"), plus an applicable margin ranging from 2.50% to 3.75% which Term SOFR margin has been set at 3.00% until June 30, 2023. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.5625% to 0.8428% per annum. All debts under the Credit Facility are guaranteed by the Company and its subsidiaries and secured by the assets of the Company and NorCrest and pledges of the securities of the Company's subsidiaries. The Credit Facility includes certain covenants that are calculated and reported each fiscal quarter. As at December 31, 2022, the Company was in compliance with all covenants.

**3.3 Significant Acquisitions**

The Company has not made any significant acquisitions since it became a reporting issuer.

**4.** <u>**DESCRIPTION OF BUSINESS**</u>

**4.1 General**

***The Business of the Company***

The Company is a Canadian-based precious metals producer with an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas.

The Company's principal focus is operating its Las Chispas Mine, in Sonora, Mexico. 2022 was a construction and ramp-up year at Las Chispas, with construction of the processing plant completed and commissioning undertaken in late May 2022. The Company declared commercial production for the Las Chispas Mine on November 1, 2022. For a summary of the activities at Las Chispas, see "General Development of the Business - Three Year History".

***Production***

The Company started the processing plant in late May 2022. Gold and silver doré produced at Las Chispas requires further refining by third-party refiners before being provided to the market as bullion. The Company currently has a refinery agreement with a refiner in North America, and precious metals trading accounts with the refiner and two other bullion traders. Gold and silver doré can be readily sold on many markets throughout the world and the market price can be ascertained on demand. The market prices of gold and silver are key drivers of the Company's profitability. The prices of gold and silver can fluctuate widely and are affected by a number of macroeconomic factors, including global or regional consumption patterns, the supply of and demand for gold and silver, and political and economic conditions of major gold and silver producing and consuming countries throughout the world.

From the gold and silver doré produced at Las Chispas in 2022, the Company sold approximately 11,400 ounces of gold for $19.7 million (accounting for approximately 45% of the Company's revenue in 2022) and 1.1 million ounces of silver for $23.8 million (accounting for approximately 55% of the Company's revenue in 2022) to two customers.

***Specialized Skill and Knowledge***

Most aspects of the Company's business require specialized skills and knowledge in geology, exploration, development, construction, mineral production, accounting and capital markets. The Company has a number of executive officers and employees with extensive experience in mining, geology, metallurgy, exploration and development in Mexico and other parts of the Americas and elsewhere, as well as executive officers and employees with relevant accounting and capital markets experience. The Company's business depends upon these skilled and experienced personnel. See "Risk Factors" for further details.

***Competitive Conditions***

The Company competes with other precious metal mining companies in the acquisition, exploration, financing and development of new properties and projects in North America and the recruitment and retention of qualified personnel that can find, develop and mine such mineral properties. Since inception of the Company in 2015, SilverCrest has successfully grown from being an exploration company, to a development company in 2021 and to an operating company with its producing Las Chispas Mine in 2022. As a relatively new operating company, many other larger mining companies have greater financial resources and economies of scale for, among other things, exploration, development and operational activities, corporate and business development, and the recruitment and retention of qualified personnel. See "Risk Factors" for further details.

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***Environmental Protection***

The Company's operations are subject to environmental regulations promulgated by government agencies from time to time, including requirements for closure and reclamation of mining properties.

In all jurisdictions where the Company operates, specific statutory and regulatory requirements and standards must be met throughout the exploration, development and operations stages of a mining property including, but not limited to, air quality, water quality, fisheries and wildlife protection, solid and hazardous waste management and disposal, noise, land use and reclamation.

The financial and operational effect of environmental protection requirements on the capital expenditures and earnings of the Company's mineral properties are not significantly different than that of similar sized mines in the same jurisdiction of Mexico, and therefore should not have a negative effect on the Company's competitive position in the future.

The Company has a reclamation obligation at its Las Chispas Mine, and the present value of this obligation as at December 31, 2022, was estimated to be $4.6 million.

***Employees***

At the end of 2022, the Company and its subsidiaries have an aggregate of approximately 25 full-time personnel based in Canada and an estimated 350 unionized and non-unionized employees based in Sonora, Mexico. All management functions of the Company are performed by the executive officers of the Company, either directly or through their consulting companies.

***Foreign Operations***

The Company's activities are currently focused on the operations of the Las Chispas Mine located in Sonora, Mexico, which exposes it to various levels of political, economic and other risks and uncertainties associated with operating in a foreign jurisdiction. Operating in Mexico, an emerging economy, has certain risks, including changes to or invalidation of government mining regulations; expropriation or revocation of land or property rights; changes in foreign ownership rights; changes in foreign taxation rates; corruption; uncertain political climate; terrorist actions or war; and lack of a stable economic climate. See "Risk Factors".

***Intangibles, Cycles and Changes to Contracts***

The Company's business is not materially affected by intangibles such as licences, patents and trademarks, nor is it significantly affected by seasonal changes. Other than as disclosed in this Annual Information Form, the Company is not aware of any aspect of its business which may be affected in the current financial year by renegotiation or termination of contracts.

The Company has entered various contracts necessary for operating the Las Chispas Mine. These contracts include, but are not limited to, contracts for underground mining, drilling, explosives, power, supply of consumables, catering, security, personnel transportation and refining. These contracts are reviewed and negotiated periodically to ensure they remain competitive and aligned within industry norms for projects in similar settings in Mexico.

**4.2 Risk Factors**

The following factors are those which are the most applicable to the Company. The discussion which follows is not inclusive of all potential risks. Risk management is an ongoing exercise upon which the Company spends a substantial amount of time. While it is not possible to eliminate all of the risks inherent in the mining business, the Company strives to manage these risks to the greatest extent possible, to ensure that its assets are protected.

***Activities of the Company may be impacted by public health crises.***

The Company's business could be significantly adversely affected by the outbreak of epidemics or pandemics or other health crises, including any outbreak of additional strains of COVID-19. Global reactions to the spread of COVID-19 led to, among other things, significant restrictions in many jurisdictions on travel and gatherings of individuals, quarantines, temporary business closures and a general reduction in consumer activity. Although quarantines have been lifted in many jurisdictions and vaccination programs have been implemented, countries globally continue to experience negative impacts as the result of COVID-19. The duration of related financial impact on the Company and the economy in general cannot be estimated with any degree of certainty at this time. Such public health crises can adversely impact the Company's operations and result in volatility and disruptions in supply and demand for gold and silver, as well as declining trade and market sentiment, all of which can affect commodity prices, interest rates, share prices and inflation.

The continued spread of COVID-19 globally and other future public health crises could materially and adversely impact the Company's business, including without limitation, employee health, workforce availability and productivity, limitations on travel, supply chain disruptions, increased insurance premiums, increased costs and reduced efficiencies, the availability of industry experts and personnel, restrictions on the Company's exploration and drilling programs and/or the timing to process drill and other metallurgical testing and the slowdown or temporary suspension of operations at some or all of the Company's properties. Although the Company has the capacity to continue certain administrative functions remotely, many other functions, including mining operations, cannot be conducted remotely.

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The Company continues to monitor the evolution of the COVID-19 pandemic and applies operational and safety procedures in accordance with guidelines outlined in the jurisdictions in which it operates. As the COVID-19 global pandemic is dynamic and, given that the ultimate duration and severity of the pandemic remains uncertain, the impact of COVID-19 on the Company's operations, exploration and development activities cannot be reasonably estimated with a high level of certainty. A local outbreak, the occurrence of new variants or changes in government health orders remains a significant risk.

***The Company's business may be impacted by the Ukraine-Russia conflict.***

As the conflict in Ukraine continues to develop, the Company's business could be materially adversely affected by increased commodity prices and supply-chain disruptions. Oil and gas prices have increased rapidly due to the ongoing conflict and the escalating sanctions threatened or imposed by several nations against Russia and Russian oil and gas exports have added to global uncertainty. In the event that the Ukraine-Russia conflict escalates and expands to other nations, such a shift in the conflict could result in a global economic downturn that could adversely affect the Company's business. The Company cannot accurately predict the impact that the ongoing conflict in Ukraine will have on its financial position or operations.

***Interest rate risk***

Increases to benchmark interest rates may have an impact on the Company's cost of borrowing under the Credit Facility and any debt financing the Company may negotiate, resulting in reduced amounts available to fund the Company's exploration, development and production activities and could negatively impact the market price of its Common Shares and/or the price of gold or silver, which could have a material adverse effect on the Company's operations and financial condition.

***The Company's production, development and cost estimates may vary and/or not be achieved.***

The Las Chispas 2021 Feasibility Study contains estimates of future production, development plans, operating and capital costs and other economic and technical estimates relating to Las Chispas. These estimates are based on a variety of factors and assumptions and there is no assurance that such production, plans, costs or other estimates will be achieved. Actual production, costs and financial returns may vary significantly from the estimates depending on a variety of factors many of which are not within the Company's control. Similarly, there can be no assurance that historical rates of production, grades of ore processed, rates of mineral recoveries or mining cash costs will not experience fluctuations or differ significantly from current levels over the course of the mining operations of the Company. Factors that may impact production cost include, but are not limited to: actual ore mined varying from estimates of grade, tonnage, dilution, and metallurgical and other characteristics; mine failures or equipment failures; industrial accidents; natural phenomena such as inclement weather conditions, floods, droughts, wildfires, rock slides and earthquakes; encountering unusual or unexpected geological conditions; changes in power costs and potential power shortages; exchange rate and commodity price fluctuations; shortages of principal supplies needed for operations; labour shortages or strikes; epidemics, pandemics and public health emergencies, including those related to the recent outbreak of COVID-19; high rates of inflation; civil disobedience and protests; and restrictions (including changes to the taxation regime) or regulations imposed by governmental or regulatory authorities, including permitting and environmental regulations, or other changes in the regulatory environments. Failure to achieve estimates or material increases in costs could have a material adverse impact on the Company's future cash flows, profitability, results of operations and financial condition.

***Global market conditions may impact the mining sector.***

Global financial markets are experiencing extreme volatility as a result of the ongoing COVID-19 pandemic and the Ukraine-Russia conflict. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by market conditions. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company's ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company.

Increased levels of volatility and market turmoil could have an adverse impact on the Company's operations and planned growth and the trading price of the securities of the Company may be adversely affected.

***The Company's share price is substantially volatile.***

The market prices for the securities of mineral exploration and production companies, including the Company's securities, have historically been highly volatile. The market has, from time to time, experienced significant price and volume fluctuations that are unrelated to the operating performance of any particular company. In addition, because of the nature of the Company's business, certain factors, such as announcements and the public's reaction, the Company's operating performance and the performance of competitors and other similar companies, fluctuations in the market prices of resources, government regulations, changes in recommendations by research analysts who track the Company's securities or securities of other companies in the resource sector, general market conditions, announcements relating to litigation, acquisitions or sales, equity financings by the Company, the arrival or departure of key personnel and the risk factors described in this Annual Information Form can have an adverse impact on the market price of the Company's Common Shares.

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In addition, the global stock markets and prices for shares of mineral exploration and production companies have experienced volatility that often has been unrelated to the operating performance of such companies. The market and industry fluctuations may adversely affect the market price of the Company's Common Shares, regardless of the Company's operating performance.

***Precious metal prices are subject to wide fluctuations.***

The Company's revenue is primarily dependent on the sale of gold and silver and movements in the spot price of gold or silver may have a direct and immediate impact on the Company's income. The profitability of any future precious metal operations in which the Company has an interest will be significantly affected by changes in the market prices of precious metals. Prices for precious metals fluctuate on a daily basis, have historically been subject to wide fluctuations and are affected by numerous factors beyond the control of the Company such as the level of interest rates, the rate of inflation, the rates of investment return in broad financial markets, central bank transactions, world supply of the precious metals, foreign currency exchange rates, international investments, monetary systems, speculative activities, international economic conditions and political developments. The exact effect of these factors cannot be accurately predicted, but the combination of any or all of these factors may result in the Company not receiving adequate returns on invested capital or the Company's investments in its mineral properties not retaining their respective values. Future production from the Company's mining properties is dependent on metal prices that are adequate to make these properties economic. Declining market prices for precious metals could materially adversely affect the Company's future operations and profitability and may require a reassessment of the feasibility of Las Chispas.

***Mineral resource and mineral reserve estimates are based on interpretations and assumptions that may not be accurate.***

There are numerous uncertainties inherent in estimating quantities of mineral resource and mineral reserve estimates and grades of mineralization, including many factors beyond the Company's control. In making determinations about whether to advance a project to development, mineral resources and grades of mineralization must be considered as estimates only. These estimates are imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling which may prove to be unreliable. Mineral resources, mineral reserves or other mineralization estimates may not be accurate.

Any material changes in mineral resource and mineral reserve estimates and grades of mineralization will affect the economic viability of placing a property into production and a property's return on capital. Estimates of mineral resource and mineral reserve estimates have been determined and valued based on assumed future prices, cut-off grades and operating costs that may prove to be inaccurate. Extended declines in market prices for gold, silver and other precious metals may render portions of the Company's resources uneconomic.

Any material reductions in estimates of mineralization, or of the Company's ability to extract this mineralization, including estimates made in the Las Chispas 2021 Feasibility Study, could have a material adverse effect on the Company's results of operations or financial condition. There can be no assurance that the mineral recovery rates achieved in small scale tests will be duplicated under on-site conditions or in production scale, or that existing known recoveries will continue.

***Uncertainties and risks relating to the Las Chispas 2021 Feasibility Study.***

The Las Chispas 2021 Feasibility Study includes estimates of future production, development plans, operating costs and capital costs and other economic and technical estimates for Las Chispas. These estimates are based on a variety of factors and assumptions and there is no assurance that such production plans, costs or other estimates will be achieved. Actual production, costs and financial returns may vary significantly from the estimates depending on a variety of factors, some of which are not within the Company's control. Consequently, there is no certainty that the results set out in the Las Chispas 2021 Feasibility Study will be realized.

***There is no assurance that the Company's exploration and development programs and properties will result in the discovery, development or production of a commercially viable ore body or yield new reserves to replace or expand current reserves.***

The business of exploration for minerals and mining involves a high degree of risk. Only a select few properties that are explored are ultimately developed into producing mines. At this time, apart from the mineral resources and reserves defined at Las Chispas and nearby Cruz de Mayo property, the Company does not have any other properties with mineral resources.

Substantial expenditures are required to discover an orebody, to establish reserves, to identify the appropriate metallurgical processes to extract metal from ore, and to develop the mining and processing facilities and infrastructure. The economics of developing gold, silver and other mineral properties are affected by many factors including the accuracy of estimating mineral resources and reserves, metal recoveries, capital and operating costs, variations of the tonnage and grade of ore mined, fluctuating mineral markets, the proximity and capacity of milling and smelting facilities, the availability and cost of skilled labour, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. The Company is also subject to the risks associated with establishing mining operations including the potential for labour unrest, potential increases in cost structures due to changes in the cost of consumables, and construction and development costs exceeding the Company's forecasted costs. Development projects are also subject to the successful completion of economic evaluations or feasibility studies, issuance of necessary governmental permits and availability of adequate financing. Depending on the prices of gold, silver or other minerals produced, the Company may determine that it is impractical to commence or continue commercial production.

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***Mining operations involve hazards and risks.***

Mining operations generally involve a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. These risks include, but are not limited to, the following: environmental hazards and catastrophes, industrial accidents and explosions, third party accidents, unusual or unexpected geological structures or formations, inaccurate mineral modelling, metallurgical and other processing problems, failure of engineered structures, remote locations and inadequate infrastructure, equipment failure, changes in the costs of consumables, power outages, fires, labour shortages and disruptions (including due to public health issues or strikes), sabotage, floods, cave-ins, land-slides, acts of God, periodic interruptions due to inclement or hazardous weather conditions, earthquakes, war, rebellion, organized crime, revolution, delays in transportation, restrictions of courts and/or government authorities, other restrictive matters beyond the reasonable control of the Company, and the inability to obtain suitable or adequate machinery, equipment or labour and other risks involved in mineral property exploration and development.

Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration and development of precious and base metals, any of which could result in work stoppages, delayed production and resultant losses, asset write downs, monetary losses, damage to or destruction of mine and other producing facilities, damage to life and property, environmental damage and possible legal liability for any or all damages. The Company may become subject to liability for pollution or hazards against which it cannot insure or against which it may elect not to insure. Any compensation for such liabilities may have a material, adverse effect on the Company's financial position.

The Company's property, business interruption, and liability insurance may not provide sufficient coverage for losses related to these or other hazards. Insurance against certain risks, including certain liabilities for environmental pollution, may not be available to the Company or to other companies within the industry at reasonable terms or at all. In addition, the Company's insurance coverage may not continue to be available at economically feasible premiums, or at all. Any such event could have a material adverse effect on the Company's business.

***The Company is subject to government regulation and failure to comply could have an adverse effect on the Company's operations.***

The Company's operations, exploration and development activities are subject to extensive foreign federal, state and local laws and regulations governing such matters as environmental protection, management and use of toxic substances and explosives, management of natural resources, health, exploration and development of mines, production and post-closure reclamation, safety and labour, mining law reform, price controls, import and export laws, anti-corruption and anti-bribery statutes, archaeological and cultural preservation, taxation, maintenance of claims, tenure, government royalties and expropriation of property. There is no assurance that future changes in such regulation, if any, will not adversely affect the Company's operations.

Such laws and regulations may require the Company to obtain licenses and permits from various governmental entities. The costs associated with compliance with these laws and regulations are substantial and possible future laws and regulations, changes to existing laws and regulations and more stringent enforcement of current laws and regulations by governmental authorities could cause additional expenses, capital expenditures, restrictions on or suspensions of the Company's operations and delays in the development of its properties. Failure to comply with applicable laws and regulations, including licensing and permitting requirements, may result in civil or criminal fines, penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations, requiring corrective measures, requiring the installation of additional equipment, requiring remedial actions or imposing additional local or foreign parties as joint venture partners, any of which could result in significant expenditures or loss of income by the Company.

Moreover, these laws and regulations may allow governmental authorities and private parties to bring lawsuits based upon damages to property and injury to persons resulting from the environmental, health and safety practices of the Company's past and current operations, or possibly even those actions of parties from whom the Company acquired its mines or properties, and could lead to the imposition of substantial fines, penalties or other civil or criminal sanctions. The Company retains competent and well-trained individuals and consultants in jurisdictions in which it does business; however, even with the application of considerable skill, the Company may inadvertently fail to comply with certain laws. Such events can lead to financial restatements, fines, penalties, and other material negative impacts on the Company.

***The Company is subject to assessment by taxation authorities in multiple jurisdictions that arise in the ordinary course of business.***

In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. Income tax provisions and income tax filing positions require estimates and interpretations of income tax rules and regulations of the various jurisdictions in which the Company operates and judgments as to their interpretation and application to the Company's specific situation. The Company's business and operations of the business and operations of its subsidiaries is complex, and the Company has, historically, undertaken a number of significant financings, acquisitions and other material transactions. While the Company's management believes that the provision for income tax is appropriate and in accordance with IFRS and applicable legislation and regulations, tax filing positions are subject to review and adjustment by taxation authorities, which may challenge the Company's interpretation of the applicable tax legislation and regulations. Any review or adjustment may have a material adverse effect on the Company's financial condition.

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The introduction of new tax laws, tax reforms, regulations or rules, or changes to, or differing interpretation of, or application of, existing tax laws, regulations or rules in Canada or México or any other countries in which the Company's subsidiaries may be located, or to which shipments of products are made, could result in an increase in the Company's taxes payable, or other governmental charges, interest and penalties, duties or impositions. No assurance can be given that new tax laws, tax reforms, regulations or rules will not be enacted or that existing tax laws, regulations or rules will not be changed, interpreted or applied in a manner which could result in the Company's profits being subject to additional taxation, interest and penalties, or which could otherwise have a material adverse effect on the Company.

***The Company may not be successful in obtaining and renewing government permits.***

IIn the ordinary course of business, the Company is required to obtain and renew government permits for the operation and expansion of existing operations or for the development, construction and commencement of new operations. Obtaining or renewing the necessary governmental permits is a complex and time-consuming process involving numerous jurisdictions and possibly involving public hearings and costly undertakings on the Company's part. The duration and success of the Company's efforts to obtain and renew permits are contingent upon many variables not within its control, including the interpretation of applicable requirements implemented by the permitting authority. The Company may not be able to obtain or renew permits that are necessary to its operations, or the cost to obtain or renew permits may exceed what the Company believes it can recover from a given property once in production. Any unexpected delays or costs associated with the permitting process, or the expiry, revocation or failure by the Company to comply with the terms of any such permits that it has obtained, could adversely impact the Company's operations and profitability.

***The Company's operations are subject to extensive environmental, health and safety regulations.***

The Company's operations are subject to extensive laws and regulations governing the protection of the environment, natural resources and human health. These laws address, among other things, emissions into the air, discharges into water, management of waste, management of hazardous substances, protection of natural resources, antiquities and endangered species, reclamation of lands disturbed by mining operations and employee safety and health. The Company is required to obtain governmental permits and, in some instances, may be required to provide bonding under federal or state air, water quality and mine reclamation rules and permits. Although the Company makes provisions for reclamation costs, it cannot be assured that these provisions will be adequate to discharge the Company's future obligations for these costs. Violations of environmental, health and safety laws may be subject to civil sanctions and, in some cases, criminal sanctions, including the suspension or revocation of permits. While responsible environmental, health and safety stewardship is one of the Company's core values, there can be no assurance that it has been or will be at all times in complete compliance with such laws, regulations and permits, or that the costs of complying with current and future environmental laws and permits will not materially and adversely affect the Company's business, results of operations or financial condition.

Under certain environmental laws, the Company could be held jointly and severally liable for removal or remediation of any hazardous substance contamination at its current, former and future properties, at nearby properties, or at other third-party sites where the Company's wastes may have migrated or been disposed. The Company could also be held liable for damages to natural resources resulting from hazardous substance contamination. Additionally, environmental laws in Mexico require that the Company periodically perform environmental impact assessment studies at the Company's mines. The Company cannot guarantee that these studies will not reveal environmental impacts that would require the Company to make significant capital outlays or cause material changes or delays in its intended activities, any of which could adversely affect the Company's business.

There has also been increased global attention and the introduction of regulations restricting or prohibiting the use of cyanide and other hazardous substances in mineral processing activities. If legislation restricting or prohibiting the use of cyanide were to be adopted in Mexico, it would have a significant adverse impact on the Company's results of operations and financial condition as there are few, if any, substitutes for cyanide in extracting metals from certain types of ore.

The failure to comply with environmental laws and regulations or liabilities related to hazardous substance contamination could result in project development delays, material financial impacts or other material impacts to the Company's projects and activities, fines, penalties, lawsuits by the government or private parties, or material capital expenditures. Environmental legislation in many countries is evolving and the trend has been towards stricter standards and enforcement, increased fines and penalties for noncompliance, more stringent environmental assessments of proposed projects, and increasing responsibility for companies and their officers, directors and employees. Future changes in these laws or regulations could have a significant adverse impact on some portion of the Company's business, causing the Company to re-evaluate those activities at that time.

Environmental hazards that may have been caused by previous owners or operators may exist on the Company's mineral properties, but are unknown to the Company at present.

***The Company's operations may be adversely impacted by the effects of climate change and climate change regulation.***

A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Regulation relating to emission levels (such as carbon taxes) and energy efficiency is becoming more stringent.

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Currently, a number of international and national measures to address or limit emissions are in various phases of discussion or implementation in the countries in which the Company operates. These or future measures could require the Company to reduce its direct emissions or energy use or to incur significant costs for emissions permits or taxes or have these costs or taxes passed on by electricity utilities which supply the Company's operations. The cost of compliance with environmental regulation and changes in environmental regulation have the potential to result in increased cost of operations. The Company could also incur significant costs associated with capital equipment, emission monitoring and reporting and other obligations to comply with applicable requirements. If the current regulatory trend continues, this may result in increased costs at some or all of the Company's operations.

As discussed in the Company's Task Force for Climate Related Financial Disclosures report, the Company's operations could also be exposed to a number of physical risks from climate change, such as changes in rainfall rates, reduced water availability, higher temperatures and extreme weather events. Events or conditions such as flooding or inadequate water supplies could disrupt mining and transport operations and mineral processing, could create resource shortages and could damage the Company's property or equipment and increase health and safety risks on the Company's site. Such events or conditions could have other adverse effects on the Company's workforce and on the communities around the Company's mine, such as an increased risk of food insecurity, water scarcity and prevalence of disease. There can be no assurance that efforts to mitigate the risks of climate change will be effective and that the physical risks of climate change will not have an adverse effect on the Company's operations and profitability.

***The Company operates in foreign jurisdictions and is exposed to various levels of political, economic and other risks.***

The Company's operations are currently conducted through subsidiaries principally in Mexico and, as such, its operations are exposed to various levels of political, economic and other risks and uncertainties which could result in work stoppages, blockades of the Company's properties and appropriation of assets. Some of the Company's properties are located in areas where Mexican drug cartels operate. These risks and uncertainties vary from region to region and include, but are not limited to, terrorism; hostage taking; local drug gang activities; military repression; expropriation; extreme fluctuations in currency exchange rates; changes in royalty regimes, including the elimination of tax exemptions; underdeveloped industrial and economic infrastructure; unenforceability of judgements; high rates of inflation; labour unrest; the risks of war or civil unrest; renegotiation or nullification of existing concessions, licenses, permits and contracts; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political conditions arising from changes in government and otherwise, currency controls, import and export regulations and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

Although the Company strives to maintain good relations with the local communities in Mexico by providing employment opportunities and social services, local opposition to mine development projects could arise in Mexico, and such opposition could be very disruptive. There can be no assurance that such local opposition will not arise with respect to the Company's foreign operations. If the Company were to experience resistance or unrest in connection with its operations, it could have a material adverse effect on its operations and profitability.

To the extent the Company acquires mineral properties in jurisdictions other than Mexico, it may be subject to similar and additional risks with respect to its operations in those jurisdictions.

***The mining industry is very competitive.***

The Company competes with other exploration and production companies, some of which are better capitalized, have greater financial resources, operational experience and technical capabilities, or are further advanced in their development or are significantly larger and have access to greater mineral resources than the Company, for the acquisition of mineral claims, leases and other mineral interests as well as for the recruitment and retention of qualified employees and other personnel. If the Company is unsuccessful in acquiring additional mineral properties or qualified personnel, it may not be able to grow at the rate it desires, or at all.

The Company's competitors may be able to devote greater resources to the expansion and efficiency of their operations or respond more quickly to new laws and regulations or emerging technologies than the Company. The Company may not be able to compete successfully against current and future competitors, and any failure to do so could have a material adverse effect on the Company's business, financial condition or results of operations.

***Replacement of Reserves and Resources***

The Company must continually attempt to replace its mineral reserves depleted by production to maintain production levels over the long term. Mineral reserves can be replaced by the development or discovery of additional reserves and/or extension of the life-of-mine at Las Chispas or through acquisition or development of an additional producing mine. Exploration is highly speculative in nature. The Company's exploration projects involve many risks and are frequently unsuccessful. Once a site with mineralization is discovered, it may take several years from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. Substantial expenditures are required to establish mineral reserves and to construct mining and processing facilities. As a result, there is no assurance that current or future exploration programs will be successful. There is a risk that depletion of the Company's mineral reserves will not be offset by discoveries or acquisitions. If the Company's mineral reserves are not replaced either by the development of additional mineral reserves and/or additions to mineral reserves, there may be an adverse impact on the Company's future cash flows, earnings, results of operations and financial condition, and this may be compounded by requirements to expend funds for reclamation and decommissioning.

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***Fluctuations in the price of consumed commodities could adversely impact the Company's operations.***

Prices and availability of commodities consumed or used in connection with exploration, development and mining, such as natural gas, diesel, oil and electricity, fluctuate and affect the Company's operations and financial condition. These fluctuations can be unpredictable, can occur over short periods of time and may have a materially adverse impact on the Company's operating costs or the timing and costs of various projects.

***Estimates of reclamation and closure costs may vary from the Company's expectations.***

Although variable depending on location and the governing authority, land reclamation and mine closure requirements are generally imposed on mining companies in order to minimize long-term effects of land disturbance. Such requirements may include requirements to control dispersion of potentially deleterious effluents, and reasonably re-establish pre-disturbance landforms and vegetation. Over the last several years, such requirements have been changing, with increasing obligations imposed in many jurisdictions.

In order to carry out reclamation and mine closure obligations imposed on the Company in connection with its exploration, potential development and production activities, the Company must allocate financial resources that might otherwise be spent on further exploration and development programs, including providing the appropriate regulatory authorities with reclamation financial assurance. The amount and nature of the financial assurance are dependent upon a number of factors, including the Company's financial condition and reclamation cost estimates. Changes to these amounts, as well as the nature of the collateral to be provided, could significantly increase the Company's costs, making the maintenance and development of existing and new mines less economically feasible. To the extent that the value of the collateral provided to the regulatory authorities is or becomes insufficient to cover the amount of financial assurance the Company is required to post, the Company would be required to replace or supplement the existing security with more expensive forms of security, which might include cash deposits, which would reduce the Company's cash available for operations and financing activities. There can be no guarantee that the Company will be able to maintain or add to the Company's current level of financial assurance. The Company may not have sufficient capital resources to further supplement the Company's existing security.

The actual costs of reclamation and mine closure are uncertain and planned expenditures may differ from the actual expenditures required. Therefore, the amount that the Company is required to spend could be materially higher than current estimates. Any additional amounts required to be spent on reclamation and mine closure may have an adverse effect on the Company's financial position and results of operations and may cause the Company to alter the Company's operations.

***Lack or delay of necessary infrastructure could adversely affect the Company's operations and profitability.***

Mining, including underground mine infrastructure and mine development, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants, which affect capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploration, exploitation or development of the Company's projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that the exploitation or development of the Company's projects will be commenced or completed on a timely basis, if at all, or that the resulting operations will achieve the anticipated production volume, or that the construction costs and ongoing operating costs associated with the exploitation and/or development of the Company's projects will not be higher than anticipated. In addition, unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company's operations and profitability.

While the Company believes that it has adequate infrastructure to support current operations, future developments could limit the availability of certain aspects of the infrastructure. The Company could be adversely affected by the need for new infrastructure. There can be no guarantee that the Company will be successful in maintaining adequate infrastructure for its operations which could adversely affect the Company's business, operations and profitability.

Certain rights-of-way ("**ROW**") have been granted to the Company in respect of power lines that supply power to Las Chispas. While these ROW have not been challenged or contested, there is no guarantee that owners of the property over which the ROW are granted will not contest or challenge these ROW in the future. In the event that these ROW are terminated, the Company's operations at Las Chispas could be adversely affected which may result in production delays and a decrease in profitability.

Future increases in metal prices may lead to renewed increases in demand for exploration, development and construction services and equipment used in mineral exploration and development activities. Such increases could result in delays if services or equipment cannot be obtained in a timely manner due to inadequate availability and may cause delays due to the need to coordinate the availability of services or equipment, any of which could materially decrease project exploration and development and/or increase production costs and limit profits.

***The Company may not be able to acquire surface rights to its mineral concessions.***

A mineral concession in Mexico does not confer any ownership of surface rights. The majority of the Company's mineral properties are located in remote and relatively uninhabited areas. There are currently no areas of interest within the Company's mineral concessions that are overlain by significant habitation or industrial users. However, there are potential overlapping surface usage issues in some areas. Some surface rights are owned by local communities or "Ejidos", and some surface rights are owned by private ranching or residential interests. The Company will be required to negotiate the acquisition of surface rights in those areas where it may wish to develop mining operations. The Company's mineral interests are located on community or private land, and it is necessary to deal with the owners for access and any potential development or exploitation rights. There can be no assurance that the Company will be able to negotiate and acquire surface access rights on terms acceptable to the Company or at all.

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***The Company may not be able to complete acquisitions it pursues and any completed acquisitions or business arrangements may ultimately not benefit its business.***

As part of the Company's business strategy, it has sought and will continue to seek new mining and development opportunities in the mining industry. In pursuit of such opportunities, it may fail to select appropriate acquisition candidates, negotiate appropriate acquisition terms, conduct sufficient due diligence to determine all related liabilities or to negotiate favourable financing terms. The Company cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or that any acquisitions or business arrangements completed will ultimately benefit its business.

Any future acquisitions would be accompanied by risks, such as a significant decline in the relevant metal price after the Company commits to complete an acquisition on certain terms; the quality of the mineral deposit acquired proving to be lower than expected; the difficulty of assimilating the operations and personnel of any acquired companies; the potential disruption of its ongoing business; the inability of management to realize anticipated synergies and maximize its financial and strategic position; the failure to maintain uniform standards, controls, procedures and policies; and the potential for unknown or unanticipated liabilities associated with acquired assets and businesses, including tax, environmental or other liabilities. There can be no assurance that any business or assets acquired in the future will prove to be profitable, that the Company will be able to integrate the acquired businesses or assets successfully or that the Company will identify all potential liabilities during the course of due diligence. Any of these factors could have a material adverse effect on its business, expansion, results of operations and financial condition.

***The Company may be adversely affected by challenges to property title.***

Although the Company receives title opinions for properties in which it has a material interest, there is no guarantee that title to such properties will not be challenged or impugned. While the mining claims in which the Company has, or has the right to acquire, an interest have been surveyed, the precise location of the boundaries of the claims and ownership of mineral rights in specific tracts of land comprising the claims may be challenged. The Company's mineral concessions may be subject to prior unregistered agreements or transfers or native land claims and title may be affected by unidentified or unknown defects. The Company has conducted as thorough an investigation as possible on the title of properties that it has acquired or will be acquiring to be certain that there are no other claims or agreements that could affect its title to the concessions or claims. If title to the Company's properties is disputed, it may result in the Company paying substantial costs to settle the dispute or clear title and could result in the loss of the property, which events may affect the economic viability of the Company.

***Indigenous peoples' title claims may adversely affect the Company's ability to develop its mineral projects.***

Some of the Company's properties may be subject to the rights or the asserted rights of various community stakeholders, including indigenous peoples'. The presence of community stakeholders may impact the Company's ability to develop or operate its mining properties and projects or to conduct exploration activities. Accordingly, the Company is subject to the risk that one or more groups may oppose the continued operation, further development or new development or exploration of the Company's current or future mining properties and projects. Such opposition may be directed through legal or administrative proceedings, or through protests or other campaigns against the Company's activities.

Governments in many jurisdictions must consult with, or require the Company to consult with, indigenous peoples with respect to grants of mineral rights and the issuance or amendment of project authorizations and permits, pursuant to various international and national laws, codes, resolutions, conventions and guidelines. Consultation and other rights of indigenous peoples may require accommodation including undertakings regarding employment, royalty payments and other matters. This may affect the Company's ability to acquire within a reasonable time effective mineral titles, permits or licenses in these jurisdictions, including in some parts of Mexico in which title or other rights are claimed by indigenous peoples', and may affect the timetable and costs of development and operation of the Company's mineral properties in these jurisdictions. In addition, the risk of unforeseen title claims by indigenous peoples' could affect existing operations and development projects. These legal requirements may also affect the Company's ability to expand or transfer existing operations or to develop new projects.

***Health and Safety Hazards***

Workers involved in mining operations are subject to many inherent health and safety risks and hazards, including, but not limited to, contraction of COVID-19, rock bursts, cave-ins, floods, falls of ground, tailings dam failures, chemical hazards, mineral dust and gases, use of explosives, noise, electricity and moving equipment (especially heavy equipment) and slips and falls, which could result in occupational illness or health issues, personal injury, and loss of life, and/or facility and workforce evacuation. These risks cannot be eliminated and may adversely affect the Company's reputation, business and future operations.

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***The Company's future success depends on its relationships with the communities in which it operates.***

The Company's relationships with the communities in which the Company operates are critical to ensuring the future success of existing operations and the construction and development of future projects. There is an increasing level of public interest worldwide relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations ("**NGOs**"), some of which oppose globalization and resource development, are often vocal critics and attempt to interfere with the mining industry and its practices, including the use of cyanide and other hazardous substances in processing activities. Adverse publicity generated by such NGOs or others related to extractive industries generally, or their operations specifically, could have an adverse effect on the Company's reputation or financial condition and may impact the Company's relationship with the communities in which it operates. While the Company firmly believes that it operates in a socially responsible manner, there is no guarantee that the Company's efforts and investments in this respect will mitigate this potential risk.

***Reputational damage could adversely affect the Company's operations and profitability.***

Damage to the Company's reputation can be the result of the actual or perceived occurrence of any number of events, and could include negative publicity (for example, with respect to the Company's handling of environmental matters or dealings with community groups). The increased use of social media and other web-based tools used to generate, publish and discuss user-generated content and to connect with other users has made it increasingly easier for individuals and groups to communicate and share opinions and views regarding the Company and its activities. The Company does not ultimately have direct control over how it is perceived by others and reputational damage could adversely affect the Company's operations and profitability.

***The Company's exploration, development and mining activities are subject to foreign currency exchange fluctuations which could result in foreign exchange losses.***

Exploration, development and mining activities in Canada and Mexico are subject to foreign currency exchange fluctuations. The Credit Facility drawdowns are denominated in U.S. dollars. The majority of corporate costs are denominated in Canadian dollars and the majority of the exploration, development and mining costs of the Company are denominated in U.S. dollars or Mexican pesos. Although timing of refunds cannot be assured, the Company also receives its Mexican value added tax (IVA) refunds in Mexican pesos. At December 31, 2022, the Company had cash reserves in Canadian dollars and U.S. dollars that more than cover the 2023 budgeted expenditure in each of these currencies. As the Company predominately holds U.S. dollars and Canadian dollars, the Company may be exposed to material effects on having to purchase Mexican pesos. Despite all these factors, the Company may suffer losses due to adverse foreign currency fluctuations.

***Interest rate and Credit Facility risk***

In respect of financial assets, the Company's policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash equivalents in order to maintain liquidity. Fluctuations in interest rates impact the value of cash equivalents. The Credit Facility is subject to interest rate risk as amounts outstanding are subject to changes based on fluctuations in the SOFR.

Of the $120 million Credit Facility, the Company has drawn down on the $50 million Term Facility. Drawdown of the $70 million Revolving Facility is subject to the Company meeting drawdown conditions. Failure to meet such conditions or the breach of certain covenants under the Credit Facility could result in the Company being unable to complete additional drawdowns or triggering default provisions under the Credit Facility, requiring early repayment of the amounts drawn down and adversely affecting the Company's financial position and business.

In addition, the Company will be required to make scheduled repayments for the Term Facility commencing in June 2023. The Company's ability to make scheduled payments depends on the Company's financial condition and operating performance, which are subject to prevailing economic and market conditions. If the Company's cash flow and capital resources are insufficient to fund its debt service obligations, the Company could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of assets, seek additional debt or equity capital or restructure its indebtedness, which may adversely affect the Company's operations and business.

***The Company may require additional financing and future share issuances may adversely impact share price***

The Company's current cash and cashflows may not be sufficient to pursue additional exploration, development or discovery of additional reserves, extension to life-of-mines or new acquisitions and, the Company may require additional financing. Additional financing may not be available on acceptable terms, if at all. The Company may need additional financing by way of offerings of equity or debt or the sale of a project or property interests in order to have sufficient working capital for its business objectives, as well as for general working capital purposes.

The success and the pricing of any such capital raising and/or debt financing will be dependent upon the prevailing market conditions at that time. There can be no assurance that financing will be available to the Company or, if it is available, that it will be offered on acceptable terms. Sales or issuances of substantial amounts of securities of the Company, or the perception that such sales could occur, may adversely affect prevailing market prices for the securities of the Company that are issued and outstanding from time to time. If additional financing is raised through the issuance of equity or convertible debt securities of the Company, this may negatively impact the price of the Company's common shares and could result in dilution to shareholders with respect to voting power and the interests of shareholders in the net assets of the Company may be diluted.

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***The Company may be involved in litigation which may have a material adverse impact on the Company's operations and financial condition.***

The Company is or may be subject to various claims and legal proceedings, including adverse rulings in current or future litigation against it or its directors or officers. The outcome of these claims may be subject to uncertainty and it is possible that some of these claims may be resolved unfavourably against the Company, which may result in a material adverse impact on the Company's financial performance, cash flow or results of operations. The Company carries liability insurance coverage and establishes reserves for matters that are probable and can be reasonably estimated; however, there can be no assurance that the amount of such coverage is sufficient to protect against all potential liabilities. In addition, the Company may be involved in disputes with other parties in the future that may result in litigation, which may have a material adverse impact on the Company's future cash flow, profitability, operations and financial condition.

***The Company may be involved in disputes related to its contractual interests in certain properties.***

The Company may, from time to time, become a party to agreements pursuant to which it may earn interests in certain properties. Title to such properties may be held in the names of parties other than the Company. Any of such properties may become the subject of an agreement which conflicts with the agreement pursuant to which the Company may earn its interest, in which case the Company may incur expenses in resolving any dispute relating to its interest in such property and such a dispute could result in the delay, indefinite postponement of further exploration and development of properties or the possible loss of such properties.

***The Company may use certain financial instruments that subject it to a number of inherent risks.***

From time to time, the Company may use certain financial instruments to manage the risks associated with changes in gold and silver prices, interest rates and foreign currency exchange rates. The use of financial instruments involves certain inherent risks including, among other things: (i) credit risk, the risk of default on amounts owing to the Company by the counterparties with which the Company has entered into such transaction; (ii) market liquidity risk, the risk that the Company has entered into a position that cannot be closed out quickly, either by liquidating such financial instrument or by establishing an offsetting position; (iii) unrealized mark-to-market risk, the risk that, in respect of certain financial instruments, an adverse change in market prices for commodities, currencies or interest rates will result in the Company incurring an unrealized mark-to-market loss in respect of such derivative products. Volatility of external factors beyond the Company's control may result in substantial and permanent losses. Furthermore, to adequately reduce these risks to acceptable levels, available investment alternatives may result in limited or no return on these assets and any derivative which may be acquired in an attempt to mitigate these risks may be ineffective.

***The Company may not be successful in maintaining internal control over financial reporting.***

The Company documents and tests its internal control procedures in order to maintain adequate internal control over its financial reporting and satisfy the requirements of applicable regulations, including Section 404 of the Sarbanes Oxley Act of 2002 (the **"Sarbanes Oxley Act"**) in the United States. The Sarbanes Oxley Act requires, among other things, an annual assessment by management of the effectiveness of the Company's internal control over financial reporting. The Company may fail to maintain the adequacy of its internal control over financial reporting as such standards are modified, supplemented or amended from time to time, and management may not be able to conclude, on an ongoing basis, that the Company has effective internal control over financial reporting in accordance with applicable regulations. The Company's failure to satisfy the requirements of applicable regulations on an ongoing, timely basis could result in the loss of investor confidence in the reliability of the Company's financial statements which, in turn, could harm the Company's business and negatively impact the trading price or the market value of the Company's securities. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company's operating results or cause the Company to fail to meet its reporting obligations.

Future acquisitions of companies, if any, may provide the Company with challenges in implementing the required processes, procedures and controls in the Company's acquired operations. No evaluation can provide complete assurance that the Company's internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be reported. The effectiveness of the Company's processes, procedures and controls could also be limited by simple errors or faulty judgments. In addition, as the Company expands, the challenges involved in implementing appropriate internal control over financial reporting will increase and will require the Company to continue to monitor its internal control over financial reporting. Although the Company intends to expend substantial time and incur substantial costs, as necessary, to ensure ongoing compliance, the Company cannot be certain that it will be successful.

***The Company may be unable to obtain adequate insurance to cover risks.***

The Company's business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents, labour disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, changes in the regulatory environment, natural phenomena such as inclement weather conditions, fires, floods and earthquakes. Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to the Company's properties or the properties of others, delays in mining, monetary losses and possible legal liability.

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The Company may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not continue to be available, subject to certain exclusions (e.g. COVID-19 related disruptions), or may not be adequate to cover any resulting liability. Moreover, insurance against risks such as environmental pollution or other hazards as a result of exploration and production is not generally available to the Company or to other companies in the mining industry on acceptable terms. The Company might also become subject to liability for impact on the environment or other hazards which it may not be insured against or which the Company may elect not to insure against because of premium costs or other reasons. Losses from these events may cause the Company to incur significant costs that could have a material adverse effect upon its financial performance and results of operations.

***Loss of key personnel could materially affect the Company's operations and financial condition.***

Recruiting and retaining qualified personnel, including certain contractors, is critical to the Company's success. The Company is dependent on the services of key executives and other highly skilled and experienced executives and personnel focused on managing the Company's interests. The number of persons skilled in acquisition, exploration, development and operation of mining properties are limited and competition exists to attract such persons. As the Company's business activity grows, the Company will require additional key financial, administrative and mining personnel as well as additional operations staff. There can be no assurance that the Company will be successful in attracting, training and retaining qualified personnel. If the Company is not able to attract, hire and retain qualified personnel, the efficiency of the Company's operations could be impaired, which could have an adverse impact on the Company's future cash flows, earnings, financial performance and financial condition. The lack of availability of qualified personnel may also cause the Company to experience increases in recruiting and training costs and decreases in operating efficiency, productivity and profit margins.

***The Company may be subject to potential conflicts of interest with its directors and/or officers.***

The directors and officers of the Company may, and in certain cases do, serve as directors and/or officers of other public and private companies, and may devote a portion of their time to manage other business interests. This may result in certain conflicts of interest. To the extent that such other companies may participate in ventures in which the Company is also participating, such directors and officers of the Company may have a conflict of interest in negotiating and reaching an agreement with respect to the extent of each company's participation. The laws of British Columbia, Canada, require the directors and officers to act honestly, in good faith, and in the best interests of the Company and its shareholders. However, in conflict of interest situations, directors and officers of the Company may owe the same duty to another company and will need to balance the competing obligations and liabilities of their actions. There is no assurance that the needs of the Company will receive priority in all cases.

***Enforcement of judgments against the Company or its officers or directors may be difficult.***

The Company is organized under the laws of, and headquartered in, British Columbia, Canada and all of its officers are residents of Canada. Six of the seven directors are residents of Canada and one is a resident of Mexico. All of the Company's operating assets are located outside of Canada and the United States. As a result, it may be difficult for investors to enforce within Canada or the United States any judgments obtained against the Company or its officers or directors, including judgments predicated upon the civil liability provisions of applicable securities laws. In addition, there is uncertainty as to whether the courts of Mexico and other jurisdictions would recognize or enforce judgments of Canadian or United States courts obtained against the Company or its directors and officers predicated upon the civil liability provisions of the securities laws of Canada or the United States, or be competent to hear original actions brought in Mexico or other jurisdictions against the Company or its directors and officers predicated upon the securities laws of Canada or the United States. Further, any payments as a result of judgments obtained in Mexico would be in pesos and service of process in Mexico must be effectuated personally and not by mail.

***There are differences in US and Canadian reporting of mineral resources and mineral reserves so that information may not be comparable to US reporting companies.***

The Company's mineral resource and mineral reserve estimates are not directly comparable to those made in filings pursuant to SEC requirements applicable to United States domestic companies, as the Company generally reports mineral resources and mineral reserves in accordance with Canadian practices. These practices are different from those used to report mineral resource and mineral reserve estimates in reports and other materials filed with the SEC by United States domestic companies. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves.

Accordingly, information concerning descriptions of mineralization, reserves and resources contained in this Annual Information Form, or in the documents incorporated herein by reference, may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

***The Company could be subject to indirect anti-corruption and anti-bribery enforcement proceedings that could adversely affect the Company.***

The Company's operations are governed by, and involve interactions with, various levels of government in foreign countries. The Company is required to comply with anti-corruption and anti-bribery laws, including the *Corruption of Foreign Public Officials Act* (Canada) and the *Foreign Corrupt Practices Act* (US) and similar laws in México. In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment to companies convicted of violating anti-corruption and anti-bribery laws. A company may be found liable for violations by not only its employees, but also by its contractors and third-party agents. The Company has an Anti-Bribery and Anti-Corruption Policy and internal controls and procedures intended to address compliance and business integrity issues, and the Company continues to train its employees on awareness of anti-bribery protocols and compliance. A company may be found liable for violations by not only its employees, but also by its contractors and third party agents. The Company's internal procedures and programs may not always be effective in ensuring that it, its employees, contractors or third party agents will comply strictly with all such applicable laws. If the Company becomes subject to an enforcement action or is found to be in violation of such laws, this may have a material adverse effect on the Company's reputation, result in significant penalties or sanctions, and have a material adverse effect on the Company's operations.

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***Any enforcement proceedings under Canada's Extractive Sector Transparency Measures Act against the Company could adversely affect the Company.***

The *Extractive Sector Transparency Measures Act* (Canada) ("**ESTMA**") requires public disclosure of certain payments to governments by companies engaged in the commercial development of minerals which are publicly listed in Canada. Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments, including aboriginal groups. ESTMA requires reporting on the payments of any taxes, royalties, fees, production entitlements, bonuses, dividends and infrastructure improvements. If the Company becomes subject to an enforcement action or is in violation of ESTMA, this may result in significant penalties or sanctions which may also have a material adverse effect on the Company's reputation.

***Security breaches of the Company's information systems could adversely affect the Company.***

The Company's operations depend, in part, upon information technology systems. The Company's information technology systems are subject to disruption, damage or failure from a number of sources, including, but not limited to, hacking, computer viruses, security breaches, natural disasters, power loss, vandalism, theft and defects in design. Any of these and other events could result in information technology systems failures, operational delays, production downtimes, destruction or corruption of data, security breaches or other manipulation or improper use of the Company's data, systems and networks, any of which could have adverse effects on SilverCrest's reputation, business, results of operations, financial condition and share price.

The Company's risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect the Company's systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

***Human Rights Matters***

Various international and national laws, codes, resolutions, conventions, guidelines and other provisions governing human rights impose obligations on government and companies to respect human rights.

The obligations of government and private entities under the various international and national provisions pertaining to human rights continue to evolve and be defined. One or more groups of people may oppose the Company's current and future operations on human rights grounds. Such opposition may be directed through legal or administrative proceedings or expressed in manifestations such as protests, roadblocks or other forms of public expression against the Company's activities, may have a negative impact on the Company's reputation and have a material adverse effect on the Company's business.

**4.3 Environmental and Social Sustainability**

***General***

Environmental, Social and Governance ("**ESG**") considerations are essential for any mining company seeking to build long-term value, reduce operational risk and remain competitive in the market. ESG factors can help a mining company achieve cost savings and enhance operational efficiency and business resilience. As such, SilverCrest is committed to conducting business in a socially and environmentally responsible manner and meeting or surpassing regulatory requirements in all its exploration, development, mining and closure activities. SilverCrest desires to be good partners with its stakeholders. SilverCrest's commitment not only stems from the Company's acknowledgement of the significant impacts that extractive mining activities can have on both host communities and the local environment, but also the changing risk landscape that requires the Company to adapt to emerging threats to protect employees, contractors, suppliers, communities and all other stakeholders as well as the environment and all corporate assets.

***Governance***

The Board has delegated the oversight of the environmental, social capital, human capital and other climate related factors to the Safety, Environmental and Social Sustainability ("**SESS**") Committee, which was established in May 2019. The purpose of the SESS Committee is to assist the Board in fulfilling its oversight responsibilities by reviewing and guiding the sustainability, social responsibility, environmental, and health & safety policies and work plans of the Company. The SESS Committee has adopted a written charter that sets out its mandate and responsibilities that is accessible on the Company's website. The SESS Committee meets and reports to the Board at least biannually in each fiscal year, and at such other times during each year as it deems appropriate. In 2022, the SESS Committee met five times and plans to meet four times in 2023.

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At the Management level, a new internal (ESG) structure was established in 2022, extending from corporate headquarters to the operational team in Mexico. This governance structure ensures that all ESG risks are tracked, understood, discussed and addressed at all levels and geographies of the Company, including the Board. It also ensures that there is a clear chain of accountability that enables ESG related information to be efficiently communicated up and down the organization. The structure is illustrated in the graphic below.

![](exhibit99-1xu011.jpg)

During 2020, Management and the Board invested in the development and implementation of the appropriate environmental and social management systems ("**ESMS**") for risk oversight, management and reporting. During 2021, the Company further integrated and built out its ESMS. Among other things, this included onboarding personnel with relevant experience, engaging consultants, and preparing different studies and reports. In 2022, the Company publicly disclosed its inaugural Task Force for Climate Related Financial Disclosures ("**TCFD**") report and formalized its commitment to managing water stress in the region through its inaugural Water Stewardship Report. The report outlines a five-year plan to invest in improving water resilience for local communities. SilverCrest also engaged third party consultants to conduct an ESG data gap analysis. This was the first step in the process of creating an ESG data tracking and management system (including Scope 1 and 2 greenhouse gas ("GHG") emissions) to aid future target setting and reporting. Further work and integration related to ESMS throughout the organization is planned for 2023.

***Materiality***

The Company developed an ESG strategy in 2020 which had certain areas refined during 2021. This strategy and related ESG policies formalize the Company's ESG commitment and are used to help make informed business decisions to ensure sustainable future operations. The ESG strategy has been critical in guiding wider business strategy to consider sustainability elements throughout 2022 and will be continually refined and integrated into all levels of the Company during 2023 as SilverCrest enters its first full-year of production.

To build a stakeholder aligned ESG strategy, the Company engaged third-party consultants during 2020 to conduct an in-depth materiality assessment. A materiality assessment is the process of identifying, refining and assessing the most material environmental, social and governance issues that could impact the Company and its stakeholders. All issues included in the materiality assessment were deemed to be important by stakeholders; however, a short-list of the most material issues is used to guide strategy, targets, and reporting. The materiality assessment matrix shown below displays these top issues and their importance in relative terms.

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The results from the Company's materiality assessment formulated SilverCrest's ESG Strategy Framework.

![](exhibit99-1xu012.jpg)

***Strategy***

Based on the key issues identified by the materiality assessment, SilverCrest and its third-party consultants developed an ESG Strategy Framework. The ESG strategy is based upon the following five pillars: Environment, Social Capital, Human Capital, Leadership & Governance, and Business Resilience. These five pillars represent the most material ESG issues for the Company to manage while also acting as a framework for long-term sustainable operations. Corporate commitments under each pillar are outlined in the graphic below.

![](exhibit99-1xu013.jpg)

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Within each pillar, the Company identified focus areas. There are 23 focus areas across the five pillars that have performance measures associated with them to allow the Company to measure progress over time and optimize the corporate and operational performance. These performance measures are aligned with the Sustainability Accounting Standards Board ("**SASB**") recommended disclosure metrics for the metals and mining industry. Given that SilverCrest has not yet completed a full year of production, data for some performance measures are not yet available. Focus areas for each pillar are listed in the graphic below.

![](exhibit99-1xu014.jpg)

SilverCrest is planning to publish its inaugural Sustainability Report during 2023. The remainder of the Social and Environmental Sustainability section of this report will cover key sustainability highlights and milestones achieved in 2022. Greater detail and scope will be provided in the upcoming Sustainability Report.

***Climate and Water Scarcity***

During 2022, in line with the Company's commitments set out in its Environmental Policy, the Company publicly disclosed its inaugural TCFD report. In preparing the TCFD report, the Company consulted with external experts to assist the Company in understanding its major climate risks (physical and transitional) and opportunities while also integrating such risks into the strategy-planning and decision-making processes. In connection with the TCFD report, a physical climate risk assessment was conducted to understand the key climate risks that may impact the Company's operations. The assessment determined that water scarcity was the most important climate risk to both SilverCrest and the communities in the region.

In line with the Company's commitments set out in its Water Management Policy and to address the water scarcity issue outlined in the TCFD report, the Company released its inaugural Water Stewardship Report during 2022. The Water Stewardship Report outlines a five-year plan to invest in improving water resilience for local communities. SilverCrest also engaged third party consultants to conduct an ESG data gap analysis. This was the first step in the process of creating an ESG data tracking and management system (including Scope 1 and 2 GHG emissions) to aid future target setting and reporting. Further work and integration related to ESMS throughout the organization is planned for 2023.

With proper oversight, the Company does not expect any operational disruptions due to water shortage throughout the life of the mine. However, it is anticipated that water scarcity and droughts will have a profound effect on the local communities which depend heavily on water. To mitigate this risk, the Company has developed a five-year Water Stewardship plan and has initially committed to invest $1.5 million to carry out these water projects. The aim of these projects is to drastically improve water infrastructure for local communities. Over the five-year period, SilverCrest plans to fix and improve the sewage system in Arizpe, to repair, replace and install 24 km of aqueducts and completely revitalize the water intake pipes delivering water from the Sonora River to local farmers and ranchers. These water infrastructure projects, which are designed to conserve and improve water quality and access, are expected to lead to greater economic stability in the local communities who rely heavily on farming and ranching for their livelihoods. A summary of the progress of the water infrastructure projects from 2021 to 2022 and the plans until end of 2026 are detailed in the figure below.

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![](exhibit99-1xu009.jpg)

During 2022, the Company invested over $0.4 million on water infrastructure projects. This included the revitalization of water intake pipes used to supply approximately 360 hectares of agricultural land, repair of sewage systems used by an estimated 1,700 people in Arizpe and the installation of concrete aqueducts for agricultural use in Bamori. SilverCrest plans to continue investing in water infrastructure projects during 2023, with approximately $0.3 million already earmarked for further agricultural aqueduct and sewage system repair works during 2023.

During 2022, the Company consumed a total of 232,358 cubic metres of fresh water at Las Chispas.

For further detail on the Company's climate risk assessment findings and insights, please refer to the 2022 TCFD Report and for further detail on planned water projects, please refer to the 2022 Water Stewardship Report. Both reports can be found on the Company's website (<u>https://silvercrestmetals.com/sustainability/reporting/</u>).

***Data Collection and Tracking***

The Company recognizes the importance of collecting and tracking quantitative ESG data. During 2022, SilverCrest began investing in ESG data tracking and management systems which are an improvement from previous systems. During 2022, third party consultants were engaged to conduct a gap analysis of the Company's ESG data. The gap analysis was conducted in alignment with SASB recommended disclosure metric definitions and helped identify data gaps in SilverCrest's ESG data tracking systems. The consultants conducted a follow up project which included the quantification of key environmental and non-environmental data including Scope 1 and 2 GHG emissions, development of an integrated ESG data tracking system and the development of water impact metrics to quantify the impact of SilverCrest's water infrastructure projects. The Company has further invested in developing a robust ESG data tracking system by initiating the implementation of an ESG data tracking and reporting software. As of the date of this AIF, the implementation is still under way. The expected completion of implementation and integration of the cloud-based system into internal data management processes is expected to provide major efficiency improvements compared to previous structures used.

As a result of these investments, the accuracy of ESG data collected has seen a major improvement such that the Company is confident in the quality of data to publicly disclose its first set of environmental metrics in this AIF document. This includes GHG emissions data and water data for 2022. Data collection efforts are still ongoing, with the aim to disclose more environmental and ESG metrics in the upcoming Sustainability Report.

*GHG Emissions Table*

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; Unit | &nbsp;&nbsp; 2022 |
| &nbsp;&nbsp; Scope 1 | &nbsp;&nbsp; Tonnes of carbon dioxide equivalent ("**tCO2e**") | &nbsp;&nbsp; 11,137 |
| &nbsp;&nbsp; Scope 2 | &nbsp;&nbsp; tCO2e | &nbsp;&nbsp; 8,098 |

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***Launch of Inaugural ESG Report***

Building on the success of the Company's sustainability journey thus far and off the momentum of the publication of its TCFD Report and Water Stewardship Report on November 30, 2022, SilverCrest is expecting to launch its inaugural Sustainability Report later in 2023. SilverCrest is committed to operating in a responsible manner that is aligned with environmental, social and governance best practices. The scope of the report and the metrics included within will reflect SilverCrest's operationally active mining assets (in production stage) and other sites that are under the operational control of the Company.

***Human Capital***

Protecting the wellbeing of all our employees and contractors by providing a safe and inclusive working environment has always been a key priority for SilverCrest. This priority is evidenced in the Company's Health and Safety Policy (effective May 2021, as amended February 2022) which is accessible on the Company's website. Mining is carried out in demanding environments with risks and safety hazards. The health and safety of the Company's employees and contractors is paramount. SilverCrest ensures that all personnel receive the necessary and relevant health and safety training before conducting any work. The Company strives to identify and mitigate risks and hazards before they cause harm through implementing safety systems, which identify and mitigate risks and hazards in the field as well as record and investigate any incidents and accidents.

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In 2022, a total of 2.4 million work-hours were completed at the Las Chispas Mine. Including both employees and contractors, the Lost Time Injury Frequency Rate ("**LTIFR**") for 2022 was 0.42 per 200,000 working hours and the Total Recordable Injury Frequency Rate ("**TRIFR**") was 3.58 per 200,000 working hours. The Company follows the guidance of, and defines incidents according to, certain agencies of the U.S. Department of Labor's Mine Safety and Health Administration such as the Occupational Safety and Health Administration ("**OSHA**") and the Mine Safety and Health Administration ("**MSHA**"). The LTIFR and TRIFR are based on the guidance and definitions of the OSHA and working hours include that of both employees and contractors. In addition to LTIFR and TRIFR, the Company is also disclosing an All-Incidence Rate ("**AIR**") and Near Miss Frequency Rate ("**NMFR**") in line with SASB recommended health and safety disclosure metrics, following the definitions from the MSHA. The following table shows further details related to certain health and safety metrics during 2022 at the Las Chispas Mine:

*Health and Safety*

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; Employees | &nbsp;&nbsp; Contractors |
| &nbsp;&nbsp; LTIFR<sup>(1)</sup> | &nbsp;&nbsp; 0.00 | &nbsp;&nbsp; 0.62 |
| &nbsp;&nbsp; TRIFR<sup>(1)</sup> | &nbsp;&nbsp; 2.05 | &nbsp;&nbsp; 4.33 |
| &nbsp;&nbsp; AIR<sup>(1)</sup> | &nbsp;&nbsp; 5.00 | &nbsp;&nbsp; 14.00 |
| &nbsp;&nbsp; NMFR<sup>(1)</sup> | &nbsp;&nbsp; 7.40 | &nbsp;&nbsp; 19.47 |
| &nbsp;&nbsp; Average health and safety training hours completed per month per individual | &nbsp;&nbsp; 1.8 | &nbsp;&nbsp; 0.6 |

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<sup>(1)</sup> Based on 200,000 working hours.

The Company also strives to recruit, develop and retain the best talent. To this end, SilverCrest aims to provide competitive compensation, appropriate training and to offer career development opportunities. The following table shows the amount of employee turnover during 2022 at the Las Chispas Mine:

*Turnover*

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| | |
|:---|:---|
|  | &nbsp;&nbsp; Turnover Rate |
| &nbsp;&nbsp; Non-unionized employees | &nbsp;&nbsp; 14% |
| &nbsp;&nbsp; Unionized employees | &nbsp;&nbsp; 27% |

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Mining projects, such as Las Chispas, create employment and business opportunities that benefit the local communities. SilverCrest strives to create a positive impact in its surrounding communities. As the Las Chispas activity continues to ramp up, the Company plans to further support the local economy through business partnerships with local businesses and the onboarding of local talent. Local businesses and employees are viewed as valuable assets for SilverCrest because of their intimate understanding of the region, culture and community, and will have better insight on key issues of the area. Therefore, building these mutually beneficial relationships are extremely important and the Company continues to build on current ones and establish new ones in the future.

At the end of 2022, there were approximately 350 unionized and non-unionized employees at the Las Chispas Project (including on-site and off-duty personnel) with 90% from Sonora, and 99% from Mexico. The Company engaged more than 50 local businesses and finalized construction of the assay laboratory which is located in the nearby community of Arizpe (14 km) and currently provides full-time employment of 20 to 30 people (further details below).

SilverCrest values all its employees and is committed to ensuring an inclusive environment for its workforce. This commitment has been formalized in the Company's Diversity and Gender Policy (effective date November 2020, as amended March 2022) which is accessible on the Company's website. SilverCrest has made great strides towards gender diversity at the Board and senior management level; however the Company recognizes there is still work to do in addressing diversity and inclusion of other underrepresented groups within the Company. At December 31, 2022, the Board of Directors was made up of three females (one a Mexican national) and four males with female representation of 43% and the Executive Officers of the Company were made up of three females and four males with female representation of 43%.

![](exhibit99-1xu003.jpg)

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***Social Capital***

SilverCrest continued to build strong relationships with local communities such as Arizpe, Bamori, Banamichi, Sinoquipe, Bacoachi and Tahuichopa (all in the Mexican state of Sonora) throughout 2022. As Las Chispas enters its first full year of production, community and stakeholder engagement continues to be a major focus. The Company used previously established communication channels to set up a transparent dialogue with the local communities to discuss and ease worries of environmental and safety impacts resulting from increasing mine activity. Furthermore, SilverCrest continued to invest in the local communities in which it operates, with 2022 costs totalling an estimated $80,000 on goods and services that benefit the local community. In addition to this amount, a substantial amount of other costs were incurred that mutually benefit the Company and the communities.

During 2021, the Company entered into a 20-year lease of a building in Arizpe to convert the building into a geochemical assay laboratory. The Company completed construction of the laboratory and procured all the necessary laboratory equipment in Q2 2022. This is helping increase the Company's business resilience with less dependence on certain vendors, but also helping add work in the local communities. At the end of 2022, the laboratory employed 23 people, of which 78% (18 employees) are from Arizpe. The Company does not expect to terminate this lease during the Las Chispas LOM and does expect the laboratory operation will be maintained after mine closure which would support a sustainable business and keep local jobs in the community.

The Company has addressed and improved its social capital through many avenues. It has formalized a Human Rights Policy (effective August 2021, as amended February 2022) and a Supplier Code of Conduct Policy (effective August 2021, as amended February 2022) which both relate to certain aspects of social capital and these policies are accessible on the Company's website.

**4.4 Mineral Projects**

The Company currently has active mineral property interests in Mexico.

**4.4.1 Las Chispas Project**

The information with respect to Las Chispas attached as Appendix A to this Annual Information Form is the executive summary extracted from a technical report titled "NI 43-101 Technical Report and Feasibility Study on the Las Chispas Project", effective January 4, 2021, filed February 2, 2021, (the "**2021 Feasibility Study**" or the "**Las Chispas 2021 Feasibility Study**") that was prepared in compliance with NI 43-101 by Ausenco Engineering Canada Inc. ("**Ausenco**") with the assistance of several other independent engineering companies and consultants. For a listing of individuals, each of whom is a "qualified person" and "independent", as such terms are defined in NI 43-101, please refer to the 2021 Feasibility Study which can be accessed as described below. The detailed disclosure in the Las Chispas 2021 Feasibility Study is incorporated by reference in its entirety into this Annual Information Form.

**For recent facts and circumstances applicable to the Las Chispas Project arising since the Las Chispas 2021 Feasibility Study, please refer to the section below titled, "Update to the Technical Summary of the Las Chispas 2021 Feasibility Study".**

The summary attached as Appendix A does not purport to be a complete summary of the Las Chispas 2021 Feasibility Study and is subject to all the assumptions, qualifications and procedures set out in the Las Chispas 2021 Feasibility Study and is qualified in its entirety with reference to the full text of the Las Chispas 2021 Feasibility Study. Readers should read this summary in conjunction with the Las Chispas 2021 Feasibility Study which may be inspected at the head office of SilverCrest at Suite 501, 570 Granville Street, Vancouver, British Columbia, V6C 3P1, during normal business hours. It can also be accessed under SilverCrest's profile on SEDAR at <u>www.sedar.com</u> or the Company's website <u>www.silvercrestmetals.com</u>.

**4.4.2 Update to the Technical Summary of the Las Chispas 2021 Feasibility Study**

During 2021, the following developments occurred in relation to Las Chispas since the effective date of the 2021 Feasibility Study:

* At the end of 2021, overall construction progress at Las Chispas was ahead of schedule and was 86.2% complete compared to a scheduled completion of 79.3%. Construction of the following was completed at Las Chispas: plant detailed engineering, bridge construction, confined camp construction, access road construction, and internal power line.

* During 2021, the Company committed 75.2% ($103.6 million) of the $137.7 million Las Chispas 2021 Feasibility Study capital cost estimate.

* At the end of 2021, the electrical grid powerline was progressing well with overall estimated progress of the 81 km powerline (up-grade of 27 km and construction on 54 km) 71.5% complete. At the end of 2021, the Company had obtained all necessary permits relating to this power line. To ensure the plant could be energized immediately upon completion, a contingency plan of utilizing temporary rental diesel generators was identified in Q3, 2021. These diesel generators were procured and arrived at site in early 2022.

* At the end of 2021, SilverCrest had completed a total of 17.5 km of underground development since 2019. Approximately 1.8 km of additional development occurred in 2021, beyond the 2021 Feasibility Study LOM plan. During 2021, the Company stockpiled an additional estimated 33 kt of mineralized material. In addition to the historic stockpiles (2021 - 163 kt), the total pre-production stockpile at the end of 2021 was estimated to be 85 kt.

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* During 2021, the Company completed approximately 114,000 metres of drilling at Las Chispas, which predominantly focused on infill drilling of inferred resources to support conversion to indicated resources for potential conversion to mineral reserves.

During 2022, the following developments occurred in relation to Las Chispas:

* Completed Las Chispas Mine construction at the end of May 2022 for $133.0 million, $4.7 million below the 2021 Feasibility Study.

* Diesel generators arrived at site and were installed and became operational in late Q1, 2022. Total temporary power available to the Las Chispas Mine was sufficient to support the mining operations, ramp-up and operation of the plant during 2022. Diesel generators were decommissioned in Q3, 2022. At the end of November 2022, the final permanent connection to the 33 kilovolt powerline was completed. Since this connection was completed, stability of the line has improved and the total contracted capacity of 7.6 megawatt is expected to provide sufficient power for the mine life.

* Effective November 1, 2022, the Company declared commercial production at Las Chispas, based on achieving a continuous two-month period operating the processing plant at a minimum of 80% capacity of its name plate design of 1,250 tpd (1,000 tpd) and showing a combined gold and silver recovery of greater than 85%. In December 2022, process plant throughput met the design name plate of 1,250 tpd with an average of 1,318 tpd at a plant availability of 95.5%. For the same period, the metallurgical recovery averaged 98.1% Au and 93.1% Ag, or 95.4%% AgEq **(**AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1). 

* During 2022, approximately 188 kt of ore were processed at a grade of 3.05 gpt Au and 312 gpt Ag, or 577 gpt AgEq. Metallurgical recoveries in 2022 were 96.5% for Au and 92.5% for Ag, or 94.4% AgEq.

* The Company started the processing plant in late May, 2022. In 2022, recovered metal totalled 17,768 oz Au and 1.74 million oz Ag, or 3.29 million oz AgEq which compared to the 2021 Feasibility Study of 12,249 oz Au and 1.18 million oz Ag, or 2.25 million oz AgEq. A total of 15,041 oz Au and 1.44 million oz Ag, or 2.75 million oz AgEq was produced in 2022, which compares to the 2021 Feasibility Study plan of 10,449 oz Au and 1.00 million oz Ag, or 1.91 million oz AgEq. 2022 processed grades averaged 3.05 gpt Au and 312 gpt Ag, or 577 gpt AgEq as compared to the 2021 Feasibility Study plan of 2.53 gpt Au and 254 gpt Ag, or 474 gpt AgEq. The variance between metal recovered and produced relates to metal inventory both in the plant and plant refinery and is largely a function of the plant ramp-up and is expected to become negligible as we stabilize the operation.<br>

* In 2022, an additional 8.0 km of underground development was completed at the Las Chispas Mine. The average mining rate for Q4, 2022 was 700 tpd, below the 2021 Feasibility Study estimate of 750 tpd, but in line with the Company's revised guidance of 600 to 700 tpd (see news release dated September 14, 2022).<br>

* A total of an estimated 201 kt of ore were mined from development and stoping activities in 2022, below the 2021 Feasibility Study projection of an estimated 214 kt. The variance was a result of lower productivity in resue mining stopes due to safety concerns and narrower vein widths in some areas. Long hole mining has progressed well and has achieved production and dilution rates as set out in the 2021 Feasibility Study.<br>

* At the end of 2022, total ore stockpiles were estimated at 261 kt, including historic stockpiles, below the 2021 Feasibility Study estimate of 311 kt due to a combination of higher processing rates and lower mining rates than planned. 

**4.4.3 Other Exploration Properties** 

The Company continually evaluates additional gold and silver prospects in the Americas with a focus in Mexico. The following properties are presently in the exploration stage.

***El Picacho Property***

El Picacho property is located in the State of Sonora, Mexico, approximately 40 km northeast of the Las Chispas Property. The Company acquired Picacho during 2020 by paying $2.4 million, including government back taxes, for 100% ownership in 11 mining concessions. During Q4, 2020, the Company received all access rights and necessary drill permits (five-year license) for Picacho. Picacho exploration focused on expansion and infill drilling of current areas for potential mineral resources. The Company drilled 80,700 metres and incurred approximately $10.0 million in total exploration expenditures in 2021 and 26,200 metres and incurred approximately $5.4 million in total exploration expenditures in 2022. In H1, 2023, the Company will focus on mapping and sampling unexplored areas around Picacho to generate new targets for drilling consideration in H2, 2023. There are currently no drill rigs active at Picacho. Please refer to the Company's news release dated February 24, 2021 and April 13, 2022 for drill results for El Picacho property. Results remain outstanding for an additional estimated 44,000 metres of drilling which will be announced in H1, 2023.

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Future payments, obligations or known future taxes payable in respect of the Picacho property are expected to total approximately $192,000 per year.

***Cruz de Mayo Property***

The Cruz de Mayo property is located in the State of Sonora, Mexico, approximately 22 km northwest of the town of Cumpas and 163 km north east of Hermosillo. Cruz de Mayo presently consists of the Cruz de Mayo 2 mineral concession. SilverCrest, through La Llamarada, has 100% ownership of the Cruz de Mayo 2 concession. The Company also had the right to purchase 100% interest in the El Gueriguito concession. However, during 2019, the Company delivered a notice of termination to the owner of the El Gueriguito mining concession.

At this time, the Company has no plans to perform any work on the Cruz de Mayo property and therefore no longer considers it to be a material property. Future payments, obligations or known future taxes payable in respect of the Cruz de Mayo are expected to total approximately $9,000 per year.

***Silver Angel Property***

The Silver Angel property is located approximately 165 km northeast of Hermosillo, Sonora, Mexico. The community of Arizpe (estimated population 2,000) is located approximately 25 km to the west of the property. The property consists of one concession totalling 619 hectares.

At this time, the Company has no plan to perform any work on the Silver Angel property. Future payments, obligations or known future taxes payable in respect of the Silver Angel property are expected to total approximately $12,000 per year.

***Estacion Llano Property***

The Estacion Llano property is located approximately 140 km north of Hermosillo, Sonora, Mexico. The community of Estacion Llano (estimated population 1,000) is located approximately 8 km to the east of the property. Also, Magna Gold Corp.'s San Francisco mine is adjacent to the property, which consists of one concession totalling 2,378.76 hectares.

At this time, the Company has no plan to perform any work on the Estacion Llano property. This property was assigned to the Company during 2015, however, the assignor was subject to litigation and the Company is not aware of the status, including any details relating to a resolution, of this litigation. Although the Company is aware that the Estacion Llano property is not yet registered in its name at the Mines Registry Office of the Federal Bureau of Mines in Mexico, it is not aware of any circumstances that would have caused the cancellation of the Estacion Llano concession or the nullification of the assignment to the Company or that the concession ceased to be the property of the Company. Depending on the outcome of the legal matters surrounding this property, it may not ultimately be transferred to the Company. As a result, there are no known future payments, obligations or known future taxes payable in respect of the Estacion Llano property except for concession payments of approximately $45,000 per year.

**5.** <u>**DIVIDENDS**</u>

**5.1 Dividends**

Since its organization, the Company has not paid any dividends on its Common Shares and there is no current intent to pay dividends in the future.

**6.** <u>**CAPITAL STRUCTURE**</u>

**6.1 General Description of Capital Structure**

The Company's authorized share capital consists of an unlimited number of Common Shares without par value and an unlimited number of preferred shares without par value. As of the date of this Annual Information Form, the Company had 147,231,264 Common Shares issued and outstanding and no preferred shares issued and outstanding.

***Common Shares***

Each Common Share ranks equally with all other Common Shares with respect to distribution of assets upon dissolution, liquidation or winding up of the Company and payment of dividends. The holders of Common Shares are entitled to one vote for each share on all matters to be voted on by such holders and are entitled to receive pro rata such dividends as may be declared by the Board. The holders of Common Shares have no pre-emptive or conversion rights. The rights attached to the Common Shares can only be modified by the affirmative vote of at least two-thirds of the votes cast at a meeting of shareholders called for that purpose.

***Preferred Shares***

Preferred shares may at any time and from time to time be issued by the directors of the Company in one or more series with special rights and restrictions as may be determined by the directors of the Company, subject to the rights and restrictions applicable to the preferred shares as a class, and without further shareholder approval. The holders of preferred shares are entitled upon dissolution, liquidation or winding-up of the Company to receive, before any distribution is made to the holders of Common Shares the amount paid up with respect to each preferred share, together with any accrued and unpaid dividends thereon; provided that after such payment, the holders of preferred shares shall not be entitled to share in any further distribution of the property or assets of the Company, except as specifically provided for in the special rights and restrictions attached to any particular series. Except for such rights relating to the election of directors on a default in payment of dividends as may be attached to any series of preferred shares by the directors, holders of preferred shares are not entitled to receive notice of, or to attend or vote at, any general meeting of shareholders of the Company.

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**7.** <u>**MARKET FOR SECURITIES**</u>

**7.1 Trading Price and Volume** 

The Common Shares of the Company are listed for trading in Canada on the TSX under the symbol "SIL". The Company's Common Shares are also listed for trading on the NYSE under the symbol "SILV".

The monthly high and low prices and total trading volumes for the Company's Common Shares on the TSX during fiscal 2022 are as set out below:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Month** | &nbsp;&nbsp; **High**<br>**(C$)** | &nbsp;&nbsp; **Low**<br>**(C$)** | &nbsp;&nbsp;**Volume** |
| January 2022 | 11.06 | 8.78 | 5639600 |
| February 2022 | 11.71 | 9.25 | 5920900 |
| March 2022 | 12.99 | 10.57 | 7528400 |
| April 2022 | 12.44 | 9.20 | 5721700 |
| May 2022 | 10.47 | 7.84 | 7111800 |
| June 2022 | 10.05 | 7.83 | 5759800 |
| July 2022 | 8.75 | 6.85 | 5089600 |
| August 2022 | 9.13 | 7.10 | 4784400 |
| September 2022 | 8.13 | 6.30 | 7383900 |
| October 2022 | 8.41 | 6.80 | 6479900 |
| November 2022 | 9.18 | 6.57 | 8003200 |
| December 2022 | 9.51 | 7.90 | 10749700 |

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The monthly high and low prices and total trading volumes for the Company's Common Shares on the NYSE during fiscal 2022 are as set out below:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Month** | &nbsp;&nbsp; **High**<br>**(US$)** | &nbsp;&nbsp; **Low**<br>**(US$)** | &nbsp;&nbsp; **Volume** |
| January 2022 | 8.86 | 6.91 | 16714900 |
| February 2022 | 9.15 | 7.22 | 15546000 |
| March 2022 | 10.13 | 8.25 | 18850100 |
| April 2022 | 9.84 | 7.15 | 15878300 |
| May 2022 | 8.20 | 5.99 | 18280500 |
| June 2022 | 7.99 | 6.07 | 15510800 |
| July 2022 | 6.83 | 5.20 | 16972200 |
| August 2022 | 7.15 | 5.40 | 16833600 |
| September 2022 | 6.28 | 4.58 | 21458100 |
| October 2022 | 6.22 | 4.94 | 20560200 |
| November 2022 | 6.90 | 4.75 | 23398500 |
| December 2022 | 7.04 | 5.77 | 41683500 |

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**8.** <u>**ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER**</u>

**8.1 Escrowed Securities**

To the Company's knowledge, there are no securities of the Company in escrow or subject to a contractual restriction on transfer.

**9.** <u>**DIRECTORS AND OFFICERS**</u>

**9.1 Name, Occupation and Security Holding**

The following table sets forth the name, province or state and country of residence, position with the Company at the date hereof, and principal occupation during the five preceding years of each director and executive officer of the Company. Each of the directors of the Company holds office until the next annual general meeting of the Company unless the director's office is earlier vacated in accordance with the articles of the Company or the director becomes disqualified to serve as a director.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Name, Province and Country<br>of Residence** | &nbsp;&nbsp; **Office** | &nbsp;&nbsp; **Date of Appointment<br>as Director** | &nbsp;&nbsp; **Principal Occupation Within**<br>**the Five Preceding Years** |
| Graham C. Thody<sup>(1)</sup><sup>(3)</sup><br>British Columbia, Canada | Chairman and Director | Director since<br>August 6, 2015 | Retired Chartered Professional Accountant; Chairman of UEX Corporation (a uranium and cobalt exploration and development company) from January 2015 until August 2022; Chairman of Goldsource Mines Inc. ("**Goldsource**") from February 2014 to January 2018; Director of Goldsource since December 2003; and Director of ValOro Resources Inc. (formerly Geologix Exploration Inc.) from May 2005 to December 2018. |
| N. Eric Fier<br>British Columbia, Canada | Chief Executive Officer and Director | Director since<br>June 23, 2015 | Chief Executive Officer of the Company since June 2015; President of the Company from August 2015 to January 2018, and; Chief Operating Officer of Goldsource from June 2010 to November 2020; Executive Chairman of Goldsource since January 2018; Interim VP of Finance of Goldsource from November 2020 to October 2021; and President of Maverick (Mining) Consultants Inc. since July 2001. |
| Laura Diaz<sup>(3)</sup><sup>(4)</sup><br>Mexico City, Mexico | Director | Director since<br>November 11, 2020 | Partner of a law firm in Mexico since July 2020; self-employed from July 2019 to June 2020; General Director of Mines at the Minister of Economy from December 2018 to June 2019; and Partner of a law firm in Mexico from July 2012 to November 2018. |
| Anna Ladd-Kruger<sup>(1)</sup><br> British Columbia, Canada | Director | Director since<br>July 11, 2022 | Chartered Professional Accountant (CPA, CMA) and Corporate Director; Director of Integra Resources since December 2018; Chair of the Board of Directors of Nova Minerals Limited since June 2022; Director of Sherritt International since February 2023, Director of Excellon Resources Inc. (from 2019 to 2022 & Chief Financial Officer and Vice President Corporate Development of Excellon from 2019 to 2020; Chief Financial Officer of McEwen Mining Inc. from 2020 to 2022; and Chief Financial Officer of Trevali Mining Corporation from 2011 to 2018. |
| Ani Markova<sup>(1)</sup> <sup>(2)</sup><sup>(4)</sup><br> Ontario, Canada | Director | Director since<br> May 30, 2019 | Founder and CEO of Investor View Advisory since August 2020; Co-founder and Business Development of Onyen Corporation since 2020; Chartered Financial Analyst and Corporate Director; Director of Critical Elements Lithium Corporation since September 2021; Director of Golden Star Resources from September 2019 to January 2022; and VP and Portfolio Manager at AGF Investments from August 2003 to January 2019. |
| Hannes Portmann<sup>(1)</sup><sup>(2)</sup><sup>(4)</sup><br>Ontario, Canada | Director | Director since<br>October 31, 2018 | Chief Financial Officer of Cabot Management Company Limited (a developer and operator of master-planned residential, resort, and golf club communities) since February 2022; Chief Financial Officer and Business Development of Marathon Gold Corporation from October 2019 to January 2022; Independent Consultant from June 2018 to September 2019; President and Chief Executive Officer of New Gold Inc. from January 2017 through May 2018 and Executive Vice President, Business Development of New Gold Inc. from December 2015 to December 2016. |
| John H. Wright<sup>(2)</sup><sup>(3)</sup><sup>(4)</sup><br> British Columbia, Canada | Director | Director since<br>January 1, 2017 | Retired Professional Engineer; commenced career with Teck Cominco Metals Ltd. (now Teck Resources Ltd.); Co-founder of Pan American Silver Corporation; Member of Business Development of Capstone Mining Corp. from December 2006 to December 2022; currently Lead Director of Ero Copper Corporation since July 2016; and Director of Luminex Resources Ltd since August 2018. |
| Christopher Ritchie<br>Ontario, Canada | President | N/A | President of the Company since January 2018. |

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Name, Province and Country<br>of Residence** | &nbsp;&nbsp; **Office** | &nbsp;&nbsp; **Date of Appointment<br>as Director** | &nbsp;&nbsp; **Principal Occupation Within**<br>**the Five Preceding Years** |
| Pierre Beaudoin<br> Ontario, Canada | Chief Operating<br>Officer | Director from<br>May 31, 2018 to<br>December 10, 2018 | Chief Operating Officer of the Company since November, 2018; and Chief Operating Officer of Detour Gold Corporation from March 2013 to July 2017. |
| Anne Yong<br>British Columbia, Canada | Chief Financial<br>Officer | N/A | Chief Financial Officer of the Company since January 2017. |
| Tara Hassan<br>British Columbia, Canada | Vice President,<br>Corporate<br>Development | N/A | Vice President, Corporate Development of the Company since September 2020; Director, Mining Content and Strategy of VRIFY Technology Inc. from January 2020 to September 2020; and Senior VP Equity Analyst, Metals and Mining of Raymond James Ltd. from November 2016 to December 2019. |
| Stephany (Rosy) Fier<br>British Columbia, Canada | Vice President, Exploration | N/A | Vice President, Exploration of the Company since July 2021; Vice President, Exploration and Technical Services of the Company from January 2019 to July 2021; and Exploration Manager of the Company from October 2015 to December 2018. |
| Clifford Lafleur<br> Ontario, Canada | Vice President,<br>Technical Services | N/A | Vice President, Technical Services of the Company since July 2021; Director, Resource Management and Mine Engineering of Torex Gold Resources Inc. from January 2020 to July 2021; and Director, Technical Services of Torex Gold Resources Inc. from March 2017 to January 2020. |
| Bernard Poznanski<br>British Columbia, Canada | Corporate Secretary | N/A | Partner of Koffman Kalef LLP, a law firm, since 1993. |

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___________________

(1) Member of the Audit Committee.

(2) Member of the Compensation Committee.

(3) Member of the Corporate Governance and Nominating Committee.

(4) Member of the Safety, Environmental and Social Sustainability Committee.

As at the date hereof, the directors and executive officers of the Company as a group beneficially owned, or controlled or directed, directly or indirectly, approximately 6,242,895 Common Shares or 4.2% of the then issued and outstanding Common Shares of the Company.

**9.2 Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

Other than as disclosed herein, none of the directors or executive officers is, as at the date of this Annual Information Form, or has been, within the ten years preceding the date of this Annual Information Form, a director, chief executive officer or chief financial officer of any company (including the Company) that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was subject to a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than 30 consecutive days (collectively, an "**Order**"), when such Order was issued while the person was acting in the capacity of a director, chief executive officer or chief financial officer of the relevant company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) was subject to an Order that was issued after such person ceased to be a director, chief executive officer or chief financial officer of the relevant company, and which resulted from an event that occurred while the person was acting in the capacity of a director, chief executive officer or chief financial officer of the relevant company.

Other than as disclosed herein, no director or executive officer of the Company or any shareholder holding a sufficient number of Common Shares to affect materially the control of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is, as at the date of this Annual Information Form, or has been, within the ten years preceding the date of this Annual Information Form, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has, within the ten years preceding the date of this Annual Information Form, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of that person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has been subject to any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision regarding the Company.

On August 31, 2015, Pierre Beaudoin was the Chief Operating Officer of Detour Gold Corporation ("**Detour Gold**") when Detour Gold was advised that the Ontario Provincial Police would be investigating the circumstances surrounding the death of an employee that occurred at the Detour Lake mine site on June 3, 2015. On April 21, 2016, Detour Gold was charged with one count of criminal negligence causing death under the Criminal Code as a result of the June 2015 fatality. On August 30, 2017, Detour Gold pleaded guilty to the one count of criminal negligence. A sentencing hearing was held on August 30 and 31, 2017. Detour Gold was ordered to pay a fine of $1.4 million plus the 30% victim surcharge provided for under the Criminal Code. In addition, the court, as requested by Detour Gold, ordered a restitution payment for the family of the deceased worker for lost income through to retirement which was considered when determining the fine amount.

On May 13, 2014, Pierre Beaudoin was the Chief Operating Officer of Detour Gold when a proposed securities class action claiming, among other things, special and general damages in the amount of $80 million, was commenced against Detour Gold and its former President and Chief Executive Officer in relation to Detour Gold's secondary market public disclosure concerning the Detour Lake Mine operations between April 9, 2013 and November 7, 2013 (the "**Class Action Claim**"). On July 10, 2014, the plaintiff issued an Amended Statement of Claim incorporating allegations in respect of Detour Gold's primary market disclosure, specifically in respect of Detour Gold's final short form prospectus dated June 2, 2013. On November 29, 2016, the parties agreed to settle the Class Action Claim for $6 million and dismiss the action without any admission of liability subject to court approval which was subsequently obtained on June 27, 2017.

**9.3 Conflicts of Interest**

There are potential conflicts of interest to which the directors and officers of the Company will be subject in connection with the business of the Company. In particular, certain of the proposed directors and/or officers of the Company serve as directors and/or officers of other companies that are similarly engaged in the business of acquiring, developing and exploiting natural resource properties and whose business may, from time to time, be in direct or indirect competition with the Company. Such associations may give rise to conflicts of interest from time to time. The directors of the Company are required by law to act honestly and in good faith with a view to the best interests of the Company and to disclose any interest, which they may have in any project opportunity of the Company. Conflicts, if any, will be subject to and governed by laws applicable to directors' and officers' conflicts of interest, including the procedures and remedies available under the BCBCA. The BCBCA provides that, in the event that a director has an interest in a contract or proposed contract or agreement, the director shall disclose his interest in such contract or agreement and shall refrain from voting on any matter in respect of such contract or agreement unless otherwise provided by the BCBCA. The Company is not aware of any existing or potential material conflicts of interest between the Company and any current or proposed director or officer of the Company.

**10.** <u>**AUDIT COMMITTEE DISCLOSURE**</u>

Pursuant to the BCBCA and the Canadian Securities Administrators' National Instrument 52-110 - Audit Committees ("**NI 52-110**"), the Company is required to have an audit committee.

**Audit Committee Charter**

Pursuant to NI 52-110, the Company's audit committee is required to have a charter. A copy of the Company's Audit Committee Charter is set out in Appendix B to this Annual Information Form.

**Composition of the Audit Committee**

As at the date of this Annual Information Form, the following is information on the members of the Company's Audit Committee:

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| | | |
|:---|:---|:---|
| **Name** | **Independent** | **Financial Literacy** |
| Graham C. Thody (Chair) | Yes | Yes |
| Ani Markova | Yes | Yes |
| Hannes Portmann | Yes | Yes |
| Anna Ladd-Kruger | Yes | Yes |

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**Relevant Education and Experience**

The following describes the relevant education and experience of the members of the Audit Committee:

Graham C. Thody - Mr. Thody is a Chartered Professional Accountant. Mr. Thody has served as a Director and Executive Member of the Lions Gate Hospital Foundation, as well as the Chair of its Finance Committee. He holds a Bachelor of Commerce degree (Marketing) from the University of British Columbia. He was a Partner of Nemeth Thody Anderson, an accounting firm located in Vancouver, British Columbia, from 1979 until his retirement in 2007. His practice focus included audits of reporting companies, corporate finance (including initial public offerings), corporate mergers and acquisitions as well as domestic and international tax matters. He was President and CEO of UEX Corporation from November 2009 until his retirement in January 2014. He has served as a director, audit chair and chairman of several reporting companies involved in mineral exploration and development throughout North and South America.

Ani Markova - With over 25 years of experience in global capital markets, including a successful investment career managing up to $2 billion of mutual fund assets, Ms. Markova has a proven track record in integrating macroeconomic trends, commodity forecasts, equity analysis, and ESG assessments into strategic capital allocations and risk management. She has expertise in finance, economics, and sustainability reporting in addition to critical thinking in complex decision-making processes. She is actively engaged with public companies on ESG topics and provides guidance on ESG integration in enterprise risk management as a CEO of Investor View Advisory and a co-founder of Onyen Corporation, a privately owned technology company focused on ESG reporting solutions. Ms. Markova currently serves as an independent director for Critical Elements Lithium Corporation where she is a chair of the Environmental and Social Responsibility Committee, as well as a member of the Audit and Governance and Nominating Committees. She served as an independent director of Golden Star Resources from September 2019 to January 2022. Ms. Markova holds an MBA from George Washington University in Washington D.C., Chartered Financial Analyst (CFA), Canadian Investment Management (CIM) and Corporate Directors International (CDI.D) designations. She is currently enrolled in the Competent Boards program with anticipated completion in the spring of 2023.

Hannes P. Portmann - Mr. Portmann is a Chartered Professional Accountant and holds a Bachelor of Science in Mining Engineering from Queen's University and a Masters of Management and Professional Accounting from the Rotman School of Management, University of Toronto. He is currently the Chief Financial Officer of Cabot Management Company Limited, a privately owned company involved in the development and operations of master-planned residential, resort and golf club communities. Prior to his current role, he was Chief Financial Officer and Business Development of Marathon Gold Corporation. Mr. Portmann also spent 10 years with New Gold Inc. (and predecessor companies) where he moved into progressively more senior roles, ultimately serving as President and Chief Executive Officer of the intermediate gold producer from January 2017 through May 2018. Previously, as Executive Vice President, Business Development, Mr. Portmann's primary areas of responsibility were: corporate development, investor relations, human resources and exploration. Prior to New Gold Inc., he was a member of the Merrill Lynch investment banking mining group and the assurance and advisory practices of PricewaterhouseCoopers LLP.

Anna Ladd-Kruger - Ms. Ladd-Kruger has held key executive positions at several Canadian publicly listed mining companies, including roles supporting the transition from exploration to production and raising substantial debt and equity. Most recently, Ms. Ladd-Kruger was the Chief Financial Officer of McEwen Mining Inc. where she was brought in to lead financial and operational turnaround strategies and was key to the McEwen Copper Asset spin-out, including serving as its Chief Financial Officer and director. Ms. Ladd-Kruger was previously the Chief Financial Officer of Trevali Mining Corporation, an international base metals mining company where she was part of the original executive management team that grew the company from a junior exploration company into a mid-tier global base metal producer. Ms. Ladd-Kruger previously served as the Chief Financial Officer and VP Corporate Development for a number of mining companies and began her career working at Vale S.A.'s Thompson and Sudbury Canadian operations before joining Kinross Gold Corporation as their North American Group Controller. Ms. Ladd-Kruger currently serves as a director for for several publicly listed mining companies. She is a Chartered Professional Accountant (CPA, CMA), holds the Canadian Institute of Corporate Directors designation (ICD.D), a Master's in Economics from Queen's University and a Bachelor of Commerce from the University of British Columbia.

**Reliance on Certain Exemptions**

At no time since January 1, 2022, has the Company relied on the following exemptions or provisions under NI 52-110:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the exemption in section 2.4 (*De Minimis Non-audit Services*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the exemption in section 3.2 (*Initial Public Offerings*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the exemption in subsection 3.3(2) (*Controlled Companies*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the exemption in section 3.4 (*Events Outside Control of Member*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the exemption in section 3.5 (*Death, Disability or Resignation of Audit Committee Member*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the exemption in section 3.6 (*Temporary Exemption for Limited and Exceptional Circumstances*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) section 3.8 (*Acquisition of Financial Literacy*); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an exemption from NI 52-110, in whole or in part, granted under Part 8 (*Exemptions*).

**Audit Committee Oversight**

At no time since January 1, 2022, was a recommendation of the Audit Committee to nominate or compensate an external auditor not adopted by the Company's Board.

**Preapproval Policies and Procedures for Non-Audit Services**

The Audit Committee has specifically approved the auditor's review of the Company's corporate tax returns and other non-audit services for fees of up to C$150,000 for the next fiscal year.

**External Auditor Service Fees (By Category)**

The aggregate fees billed by the Company's external auditor in each of the last two financial years of the Company for services in each of the categories indicated are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Financial Year Ended** | &nbsp;&nbsp; **Audit Fees**<sup>(1)</sup> | &nbsp;&nbsp; **Audit Related Fees<sup>(2)</sup>** | &nbsp;&nbsp; **Tax Fees**<sup>(3)</sup> | &nbsp;&nbsp; **All Other Fees**<sup>(</sup><sup>4</sup><sup>)</sup>  |
| December 31, 2022 | &nbsp;&nbsp; C$379,222 | &nbsp;&nbsp; Nil | &nbsp;&nbsp; Nil | &nbsp;&nbsp; Nil |
| December 31, 2021 | &nbsp;&nbsp; C$312,959 | &nbsp;&nbsp; C$41,195 | &nbsp;&nbsp; C$16,477 | &nbsp;&nbsp; C$3,906 |

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<sup>(1)</sup> Audit fees include fees paid for services rendered by the external auditor in relation to the audit and review of SilverCrest's financial statements and in connection with the Company's statutory and regulatory filings. The 2022 and 2021 fees include amounts for the applicable year's audit services as well as final billings from the previous year's audit.

<sup>(2)</sup> Pertains to assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements and that are not reported under "Audit Fees". During 2021, fees disclosed under this category relate to the review of the Company's prospectus supplement dated February 12, 2021 in relation to the short form prospectus dated June 5, 2020.

<sup>(3)</sup> Pertains to professional services for tax compliance, tax advice, and tax planning. The nature of the services comprising the fees disclosed under this category relates to the preparation of the Corporate Tax Returns of the Company including its subsidiaries, together with related schedules.

<sup>(4)</sup> The aggregate fees for products and services other than as set out under the headings "Audit Fees", "Audit Related Fees" and "Tax Fees". During 2021, fees disclosed under this category relate to advice and responses to miscellaneous and general tax questions that are not considered to meet the classification of "Tax Fees".

**11.** <u>**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**</u>

**11.1 Legal Proceedings**

The Company's Estacion Llano property was assigned to the Company during 2015. Although the Company is not a party to any litigation related to this property, the company that assigned this property to SilverCrest was and may still be a party of a litigation claim (refer to section 4.4.3 Other Exploration Properties - Estacion Llano).

There are no other legal proceedings during the Company's last financial year to which the Company is a party or to which any of its property is subject, and there are no such proceedings known to the Company to be contemplated.

**11.2 Regulatory Actions**

During the Company's last financial year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no penalties or sanctions were imposed against the Company by a court relating to securities legislation or by a securities regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no other penalties or sanctions were imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor in making an investment decision in the Company's securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no settlement agreements of the Company were entered into with any court relating to securities legislation or with any securities regulatory authority.

**12.** <u>**INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**</u>

**12.1 Interest of Management and Others in Material Transactions**

Except as otherwise disclosed herein, no director or executive officer of the Company and no person or company that beneficially owns, or controls or directs, directly or indirectly, more than 10% of the outstanding Common Shares of the Company, and no associate or affiliate of any of the persons or companies referred to above, has any material interest, direct or indirect, in any transactions since January 1, 2020, that has materially affected or is reasonably expected to materially affect the Company or any of its subsidiaries.

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**13.** <u>**TRANSFER AGENT AND REGISTRARS**</u>

**13.1 Transfer Agent and Registrars**

Computershare Investor Services Inc. (at its principal transfer offices in Vancouver, British Columbia and Toronto, Ontario) is the transfer agent and registrar for the Common Shares of the Company.

**14.** <u>**MATERIAL CONTRACTS**</u>

**14.1 Material Contracts**

Other than the following contract, available on SEDAR (www.sedar.com), there are no contracts that are material to the Company that were entered into within the last financial year of the Company or before the last financial year but is still in effect (other than contracts entered into in the ordinary course of business of the Company):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Credit agreement dated November 29, 2022 among the Company (as borrower) and a syndicate of lenders comprised of the Bank of Nova Scotia (the Administrative Agent) and the Bank of Montreal in respect of a US$120 million senior secured credit facility.

**15.** <u>**INTERESTS OF EXPERTS**</u>

**15.1 Technical Report Authors**

Robin Kalanchey, P.Eng., Scott Weston, P.Geo., William Stone, P.Geo., Eugene Puritch, P.Eng., David Burga P.Geo., Jarita Barry, P.Geo., Yungang Wu, P.Geo., Andrew J. Turner, P.Geol., Carl Michaud, P.Eng., Michael Verreault, P.Geo., Khosrow Aref, P. Eng., and Humberto Preciado, P.E., independent qualified persons, are the authors of the "NI 43-101 Technical Report and Feasibility Study on The Las Chispas Project" effective January 4, 2021, and filed on SEDAR at <u>www.sedar.com</u>.

To the best of the Company's knowledge, no registered or beneficial interest, direct or indirect, in any securities or other property of the Company was held by the experts listed above when the particular expert's report was prepared, was received by such expert after the preparation of the report, or will be received by such expert.

**15.2 Auditors**

The audit of the consolidated financial statements and the effectiveness of internal control over financial reporting is conducted in accordance with Public Company Accounting Oversight Board ("**PCAOB**") standards. The Company's independent registered public accounting firm is PricewaterhouseCoopers LLP, Chartered Professional Accountants ("**PwC**"), who have issued a Report of Independent Registered Public Accounting Firm dated March 10, 2023 in respect of the Company's consolidated financial statements as at December 31, 2022 and December 31, 2021and for each of the years then ended and on the effectiveness of internal control over financial reporting as at December 31, 2022. PwC has advised that they are independent with respect to the Company within the meaning of the Chartered Professional Accountants of British Columbia Code of Professional Conduct and the rules of the U.S. Securities and Exchange Commission (SEC) and the PCAOB on auditor independence.

**16.** <u>**ADDITIONAL INFORMATION**</u>

Additional information relating to the Company may be found on SEDAR at <u>www.sedar.com</u>.

Additional information in respect of 2022, including directors' and officers' remuneration and indebtedness, principal holders of the Company's securities and securities authorized for issuance under equity compensation plans, is contained in the Company's information circular for the Company's annual general meeting of shareholders anticipated to be held on June 15, 2023. Such information for 2021 is contained in the Company's information circular dated April 28, 2022, for the Company's last annual general meeting of shareholders held on June 15, 2022.

Additional information is provided in the Company's audited consolidated financial statements and management's discussion and analysis for the financial year ended December 31, 2022.

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APPENDIX A

**Introduction**

SilverCrest Metals Inc. (SilverCrest) commissioned Ausenco Engineering Canada Inc. (Ausenco) to compile a Technical Report (the Report) and Feasibility Study (the Feasibility Study) on the Las Chispas Project (the Project), located in Sonora, Mexico. The effective date (the Effective Date) of the Report is January 4, 2021.

**Terms of Reference**

The Report supports disclosures by SilverCrest in the news release dated February 2, 2021, entitled "SilverCrest Announces Positive Feasibility Study Results and Technical Report Filing for the Las Chispas Project".

The firms and consultants who are providing Qualified Persons (QPs) responsible for the content of the Report are, in alphabetical order, Ausenco, G Mining Services Inc. (GMS), Hydro-Ressources Inc. (HRI), P&E Mining Consultants Inc. (P&E), Rockland Ltd. (Rockland), and Wood Environment & Infrastructure Solutions, Inc. (Wood).

All units of measurement in the Report are metric, unless otherwise stated. The monetary units are in US dollars, unless otherwise stated.

Mineral Resources and Mineral Reserves are reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (the 2014 CIM Definition Standards).

Although the Report assumes a targeted timeline for initial operation and ramp-up of production from the Project, calendar years used in the economic analysis are provided for conceptual purposes only.

**Project Setting**

The city of Hermosillo is approximately 220 km southwest of the Project, or a three-hour drive; Tucson, Arizona is approximately 350 km northwest of the Project, or a five-hour drive; and the community and large copper mine in Cananea is located approximately 150 km to the north along Highway 89, or a two-and-a-half-hour drive. The closest villages are Banamichi, 25 km to the southwest, and Arizpe, located approximately 12 km to the northeast. The closest resident to the Project, a single ranch house, is 10 km to the west.

Mining supplies and services are readily available from the towns of Cananea, Hermosillo, and Tucson. Labour and skilled workforces exist in the nearby communities, including Banamichi and Arizpe, for which housing and transportation routes could be established to support a mining operation. Provision of grid power for the planned mining operation is in the permitting process, with construction anticipated to begin in 2021 and be completed before production start-up.

The Project is accessed from the community of Arizpe via secondary gravel roads, approximately 10 km off the paved highway. Currently, crossing the Rio Sonora is required. The water levels in the river are typically low and easily passed but can rise to temporary unpassable levels following major rain events. A road bridge is planned to be constructed in 2021. The remainder of the road has been upgraded by dozer/grader.

The climate is typical for the Sonoran Desert, with a dry season from October to May. Seasonal temperatures vary from approximately 0°C to 40°C. Average rainfall is estimated at 300 mm/year. Operations are planned to be conducted year-round.

The Project is located on the western edge of the north-trending Sierra Madre Occidental mountain range geographically adjacent to the Sonora Valley. Surface elevations range from 950 metres above sea level (masl) to approximately 1,375 masl.

Drainage valleys generally flow north to south, and east to west towards the Rio Sonora. During the rainy season, flash flooding can occur in the area.

Vegetation is scarce during the dry season and limited primarily to juvenile and mature mesquite trees and cactus plants. During the wet season, various blooming cactus, trees, and grasses are abundant in drainage areas and on hillsides.

**Property Description and Location**

The Las Chispas Property consists of 28 mineral concessions, totalling 1,400.96 ha, which are held by SilverCrest's Mexico subsidiary Compañía Minera La Llamarada S.A. de C.V. (LLA). Concessions have expiry dates that run from 2022-2067. One concession is in the grant process, and one concession is the subject of legal proceedings following cancellation. The mineral concessions that host the Mineral Resources and Mineral Reserves are in good standing. At the Report Effective Date, all required mining duties were paid.

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The surface rights overlying the Las Chispas Property mineral concessions and road access from local highway are either owned by LLA or held by LLA under a negotiated 20-year lease agreement with the Ejido Bamori. LLA has purchased the Cuesta Blanca and Babicanora ranches and signed a 20-year lease agreement for a portion of the Tetuachi Ranch. Surface rights are sufficient for the proposed LOM plan and include the locations of necessary infrastructure as presented in the Report.

A 2% royalty is payable on the Nuevo Lupena and Panuco II concessions for material that has processed grades of ≥0.5 oz/tonnes gold and ≥ 40 oz/tonnes silver, combined. These concessions do not include Mineral Reserves.

The Feasibility Study assumes that production water will be from the 900 level (900 m from surface or 850 masl) of the historical Las Chispas Mine and from the Sonora Valley. This combined source of water is considered to be reflective of the regional water table, has been tested, and is adequate in quantity and quality for production purposes. LLA has sufficient water rights for operations.

**History**

Historical records indicated mining around the Project started as early as the 1640s. There are incomplete historical records available on mining activities in the 1800s and 1900s. A number of small mines were operated during the period 1900-1930. There is a gap in mining activity records for Las Chispas between the mid-1930s through to 1974. A small mill operated offsite from 1974 to 1984, treating material from historical mine dumps.

Minefinders Corporation Ltd. (Minefinders) conducted geological mapping and a geochemical sampling program comprising stream sediment and bulk-leach extractable gold (BLEG) samples, underground and surface rock chip sampling, and drilling of seven (7) reverse circulation (RC) drill holes (1,842.5 m) to test potential mineralization adjacent to the Las Chispas mineralized northwest-southeast trend. Drill results were not encouraging.

SilverCrest's subsidiary obtained the rights to the Project in 2015. Exploration work completed to the Effective Date included 1,626 core drill holes (426,441.5 m), surface and underground mapping and sampling, rehabilitation of underground workings, auger and trench sampling of historical mine dumps, Mineral Resource estimations, environmental baseline and supporting studies, initiation of permitting activities, metallurgical testwork approximately 9 km of underground development and completion of a Preliminary Economic Assessment (the PEA) (Tetra Tech, 2019). The Feasibility Study was commissioned in late 2019, and the Report discusses the results of that study.

**Geological Setting and Mineralization**

Mineral deposits in the Las Chispas district are classified as gold and silver, low to intermediate sulphidation epithermal systems, typical of many deposits in Sonora, Mexico.

In northwestern Mexico, much of the exposed geology can be attributed to the subduction of the Farallon Plate beneath the North American Plate and related magmatic arc volcanism. The host rocks to mineralization in the Las Chispas district are generally pyroclastic, tuffs, and rhyolitic flows interpreted to be members of the Lower Volcanic Complex. Locally, volcanic pyroclastic units mapped within the underground workings include rhyolite, welded rhyodacite tuff, lapilli (lithic) tuff, and volcanic agglomerate.

All rock types in the Project area show signs of extensive hydrothermal alteration. Thin section and TerraSpec™ hyperspectral studies identified alteration consistent with argillic and advanced argillic alteration. Alteration minerals identified include smectite, illite, kaolinite, chlorite, carbonate, iron oxy/hydroxides, probable ammonium, gypsum/anhydrite, silica, and patch trace alunite.

Generally, the host rocks are above the existing water table. Oxidation of sulphides is observed from near-surface to depths greater than 300 m and the presence of secondary minerals is recorded from the Las Chispas historical underground workings approximately 60 m to 275 m in depth from the surface. Strong and pervasive near-surface oxidation is noted to occur in the Babicanora Area, where host rocks experienced faulting and advanced weathering to limonite, hematite, and clays.

Regionally, the Project is situated in an extension basin related to a Late Oligocene half-graben of the Rio Sonora basin. Multiple stages of normal faulting affect the basin. The main structures are steep, west-dipping (80°) and sub-parallel to the Granaditas normal fault, which is located along the western margin of the Project, striking approximately 30°. The basin is further cross-cut by younger northwest-southeast trending normal faults that dip to the southwest, creating both regional and local graben structures. Locally, the graben structures are complicated by probable caldera collapse. Three structural controls, excluding bedding contacts, are considered to influence alteration and mineralization:

* 150-170° striking and are inclined at approximately 65-75° to the southwest;

* 340-360° striking and are inclined 75° west to 75° east; and,

* 210-230° striking and are inclined 70-85° to the northwest.

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Mineralization is hosted in hydrothermal veins, stockwork, and breccia. Emplacement of the mineralization is influenced by fractures and low-pressure conduits formed within the rocks during tectonic movements. Mineralization can be controlled lithologically along regional structures, local tension cracks, and faulted bedding planes. Brecciated mineralization formed in two ways: 1) in zones of low pressure as hydrothermal breccia; and 2) as mechanical breccias. These breccia types are interpreted to occur at the intersection of two or more regional structural trends. The mineralization is 0.10-10 m in true width, and typically encompasses a central quartz ± calcite mineralization corridor with narrow veinlets within the adjacent fault damage zone. Stockwork and breccia zones are centred on structurally controlled hydrothermal conduits.

Generally, it appears that epithermal mineralization is higher in the system (closer to the paleo-surface) on the west side (e.g., La Victoria Vein and historical mine) of the Las Chispas district compared to the east side (e.g., Granaditas Vein and historical mine), where there is an observed increase in base metal content.

Argentite is the principal silver mineral. Electrum and native silver can be present. Silver is associated with galena, pyrite ± marcasite and chalcopyrite. Gold occurs as native flakes and in association with pyrite and chalcopyrite. Locally, gold and silver values have a strong correlation with each other. Base metal contents are low in veins.

The Las Chispas district is divided into the Las Chispas Area and the Babicanora Area, and currently has 45 separate epithermal veins identified. Mineral Resources were estimated for 21 veins, and Mineral Reserves for 15 veins of which six veins (Babicanora Main, Babicanora FW, Babicanora Norte, Babicanora Sur, Babi Vista and Las Chispas) contain the majority of the Mineral Reserves.

**Drilling and Sampling**

SilverCrest completed a number of drilling program phases in the period 2016-2020.

The Phase I (March 2016 to October 2016) drilling program targeted near-surface mineralization, lateral extensions of previously mined areas, and potential deep extensional mineralization proximal to the historical workings.

The Phase II (October 2016 to February 2018) drilling program focused on surface drilling at the Las Chispas, Babicanora Main, William Tell, and Giovanni veins and on underground drilling at the Las Chispas and Babicanora area veins. New targets, such as the La Varela, La Blanquita, Granaditas, and Amethyst veins were drill-tested.

The Phase III (February 2018 to February 2019) drilling program focused on surface drilling at the Babicanora Main, Babicanora FW, Babicanora HW, Babicanora Norte, Babicanora Sur, Granaditas, Luigi, and Giovanni veins and underground drilling at the Las Chispas Vein. Newly tested targets for the Phase II drilling program included the Babicanora Norte, Babicanora Sur, Granaditas, Luigi, Amethyst and Ranch veins.

The Phase III Extended (February 2019 to October 2020) drilling program was an infill program to support increased confidence for Mineral Resource classification upgrades, and test for expansion of multiple veins. A systematic drill hole vein piercing pattern of approximately 35 m by 35 m was used to support conversion of Inferred Mineral Resources to the Indicated category. Newly tested targets for Phase III Extended drilling program included the Babi Vista Vein and Babi Vista Vein Splay.

Surface collar locations were initially surveyed using a handheld global positioning system (GPS) unit and then professionally surveyed by a local contractor. A survey was completed by external consultant David Chavez Valenzuela in October 2018. The most recent surveys were completed by Precision GPS S.A. de C.V. (Precision GPS) from Hermosillo, Sonora, Mexico. The survey provided drill collar locations, information on roads, and additional detail on property boundaries.

Underground drill hole collars were surveyed by Precision GPS using the underground control points established for each of the workings. All holes were downhole surveyed as single-shot measurements with a Flex-it tool starting at 15 m with measurements at every 50 m to determine deviation. The survey measurements were monitoring downhole deviations and significant magnetic interference from the drill rods that would prevent accurate readings.

For a newly discovered vein, the first 10 drill holes were completely sampled. Additional drill holes could be entirely sampled, if such sampling were needed to establish a better understanding of geology and mineralization. Sample intervals were laid out for mineralization, veining, and structure. Approximately 10 m before and after each mineralization zone was included in the sampling intervals. A minimum of 0.5 m sample lengths of mineralization material was taken up to a maximum of 3 m in non-mineralization rock. Each sample interval was either split using a hand splitter or cut using a wet core saw, perpendicular to veining, where possible, to leave representative core in the box and to reduce any potential bias in the sampled mineralization submitted with the sample.

Chip samples and/or channel samples were collected from historical underground workings and newly developed in-vein drifting. Samples were collected using a small sledgehammer, a hand maul/chisel, and a small tarp on the floor to collect the chips, or a power saw for channeling. Sampling was conducted at random within the existing historical muck and material stockpiles in the Las Chispas, William Tell, and Babicanora historical workings. Sample collection was completed by hand or shovel, from near surface material, as a non-selective collection to represent both the fine and coarse fragment portions of the muck piles. Auger sampling, completed as a test program, was conducted on nominal 1 m depth intervals in selected surface mineralized rock dumps. Due to a combination of large rocks and low recovery, the auger program was discontinued. Trenches were initially hand excavated to approximately 0.5 m in the face of the mineralization rock dumps with collection of samples every 1 m. Subsequently, mechanical trenching was completed on all accessible historical dumps. A backhoe was used to dig trenches approximately 1.5 m deep and pile the excavated material next to the trench for sampling and description. Sample weights were 3-5 kg.

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A total of 641 bulk density measurements were collected on site by SilverCrest using the water immersion method. Seventy-two (72) samples were tested by ALS Chemex (ALS) based in Hermosillo, Mexico for wax-coated bulk density to validate the on-site measurements. In November 2018, two samples were collected and sent by SilverCrest to Geotecnia del Noroeste S.A. de C.V. based in Hermosillo, for wax coated dry bulk density testing. The bulk density ranged from 4.02 t/m3 with a mean value of 2.52 t/m3. A uniform mean bulk density of 2.55 t/m³ was applied to all rock types in the Mineral Resource estimate based on the results of the bulk density test work completed by SilverCrest and the two laboratories.

All primary assays were completed by ALS in Hermosillo, ALS in Vancouver, BC, Canada, and Bureau Veritas Minerals Laboratories (Bureau Veritas, formally Inspectorate Labs) in Hermosillo. Check assays were performed by SGS de Mexico S.A. de C.V in Durango, Mexico (SGS Durango). These laboratories are independent of SilverCrest and hold accreditations for selected analytical techniques.

All samples were crushed to 75% (ALS) or 70% (Bureau Veritas) minus 2 mm, then mixed and split with a riffle splitter. A split from all samples was then pulverized to 80% (ALS) or 85% (Bureau Veritas) minus 75 µm. All pulverized splits were submitted for multi-element aqua regia digestion with inductively coupled plasma (ICP)-mass spectrometry (MS) detection, and for gold fire assay (FA) fusion with atomic absorption spectroscopy (AAS) detection.

Samples returning grades above the upper detection limit of >100 gpt Ag from ICP analysis were re-run using aqua regia digestion and ICP-atomic emission spectroscopy (AES) detection and diluted to account for grade detection limits (<1,500 gpt). Where silver grades were ≥1,500 gpt, the sample was re-run using FA with gravimetric detection. During the Phase II drilling program, where gold values >1 gpt, the samples were re-run using FA with gravimetric detection, and where gold values were >10 gpt, the samples were re-run using 30 g FA with AAS detection. Samples returning grades >10,000 ppm Zn, Pb or Cu from ICP-MS analysis were re-run using aqua regia digestion with ICP-AES finish.

The quality assurance/quality control (QA/QC) program consisted of certified reference material (CRM), and blank sample insertions at a rate of 1:50 for all sample types being collected, and insertion of duplicate samples for some underground chip samples, core pulps and coarse rejects. CDN Resource Laboratories Ltd. Was the source of the CRMs. The blank samples were collected from a local silica cap.

The sample preparation, analysis, and security program implemented by SilverCrest was designed with the intent to support collection of a large volume of data. Sample collection and handling routines were well documented. The laboratory analytical methods, detection limits, and grade assay limits are suited to the style and grade of mineralization. The QA/QC methods implemented by SilverCrest enabled assessment of sample security, assay accuracy, and potential for contamination. The QP reviewed sample collection and handling procedures, laboratory analytical methods, QA/QC methods, and QA/QC program results and believes these methods are adequate to support the current Mineral Resource estimate.

**Data Verification**

SilverCrest developed an extensive dataset that is saved and managed using GeosparkTM management software. P&E reviewed the data compilation and audited the GeosparkTM database. P&E conducted verification of the Las Chispas databases for gold and silver by comparison of the database entries with assay certificates in comma-separated values (csv) file format, obtained directly from ALS Webtrieve. Assay data were verified for five separate datasets: Las Chispas, Las Chispas Underground, Babicanora Underground, William Tell Underground and Babi Vista.

P&E also validated the drill hole database by checking for inconsistencies in analytical units, duplicate entries, interval, length or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, survey and missing interval and coordinate fields. A few errors were identified and corrected in the database.

The QP believes the database provided by SilverCrest is reliable and the QP does not consider the few minor discrepancies encountered during the verification process to be of material impact to the data supporting the Mineral Resource estimate.

**Mineral Processing and Metallurgical Testwork**

Two metallurgical testwork programs were undertaken in August 2017 and November 2018 in support of the previous evaluations of the Project prior to the start of the Feasibility Study. Both programs were completed at SGS Durango. These earlier test programs highlighted the preferred process options to be evaluated and provided context for selection of drill cores and preparation of composite samples for further, more detailed testing.

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In 2019, selected samples of mineralization from the Las Chispas deposit, which had either been used in the previous two series of tests at the SGS Durango facility or were new samples from various drill programs at site, were shipped to SGS Lakefield Research in Ontario, Canada (SGS Lakefield), for further metallurgical testing to support the Feasibility Study. The SGS laboratory facilities in Mexico and in Canada are well respected for their metallurgical testwork, and are independent of SilverCrest. There is currently no facility that accredits metallurgical testwork methods.

The materials tested in support of the Feasibility Study were considered to be representative of the Las Chispas deposit, both with respect to the global average materials characteristics, and also with respect to high-grade, low-grade (and waste) and known high-clay containing zones within the deposit.

In summary, work completed from 2019 to the Effective Date of the Report, in support of the Feasibility Study included: chemical and mineralogical analysis of the feed samples; comminution testwork; investigation of pre-concentration options, including gravity separation and flotation; cyanide leaching of concentrate and tailings fractions from both gravity and flotation pre-concentration options; solid-liquid separation testing; precious metals recovery testing (Merrill Crowe process); cyanide destruction testing; and variability testing across key unit operations for selected lithologies and veins.

In 2019 and early 2020, over 200 variability and composite leach tests were completed with a gravity pre-concentration step. The testwork followed a proposed flowsheet incorporating: comminution; gravity pre-concentration; cyanide leaching of the gravity concentrate and tailings fractions; counter-current decant (CCD) washing of the leach residue, and ultimately cyanide detoxification of the tailings slurry prior to filtration and long-term storage; and Merrill Crowe recovery of precious metals and conventional smelting to generate a doré.

Overall, high recoveries for this work were achieved at laboratory scale by application of conventional, commercially proven processes. However, due to the brittle nature of the silver sulphide mineral, argentite, there was a concern that the mineral could overgrind in practice and result in reduced gravity recovery. Therefore, pre-concentration using flotation was pursued, and favourable results were gained from 40 additional flotation tests:

* Gravity concentration: 40-50% gold and silver recovery and 4% mass pull; and

* Flotation concentration: 60-80% gold and silver recovery and 2% mass pull.

An extensive campaign was commissioned in mid-2020 to provide confidence in gold and silver extractions upon cyanidation. This included evaluation of the response of high-grade mineralization and samples with elevated antimony values. Overall recovery, under the most promising conditions tested, ranged from 98-99% for gold and 91-97% for silver.

For this Feasibility Study, a flowsheet incorporating flotation followed by separate cyanidation of the concentrate and tailings was considered to be the most appropriate design for the mineralization at Las Chispas. Over the range of samples tested, overall gold recovery was determined to be relatively insensitive to grade, such that use of an average recovery value of 97.6% would be appropriate. Silver recovery varied linearly with increasing grade, is relatively predictable, and therefore was estimated at 94.3% on the basis of the grade determined for the LOM.

**Mineral Resource Estimation**

Mineral Resource Estimates were prepared by P&E for potential underground mining of in-situ vein deposits at the Las Chispas and Babicanora Areas, and for surface extraction of stockpiles which remain from historical operations.

All drilling, surveying (collar and downhole) and assay data were provided by SilverCrest in the form of Microsoft Excel data files up to and including a data cut-off date of October 16, 2020. The database consisted of surface drill holes, underground drill holes and underground channel and chip samples for the in-situ narrow veins and included surface surveys with assay data for surface channel and RC samples for the historical stockpiles.

Mineralized vein wireframes were interpreted and constructed by SilverCrest and verified by the QPs. Some adjustments to the wireframes were made as a result of the reviews, and the QP considered the wireframes to be reasonable and suitable for Mineral Resource estimation.

Vein models, representing the continuous zone of structurally-hosted gold and silver mineralization and the structural extensions of the veins, were developed using the drill core field logs and assays. All veins were constrained to a minimum true width of 0.5 m. Solids were manually clipped in the initial Mineral Resource modelling stage to include mineralized areas with ≥150 gpt AgEq (where AgEq = Ag gpt + Au gpt \* 75.0). In some cases, samples <150 gpt AgEq were included to maintain mineralized continuity and minimum true width. Zones of internal waste were delineated within the mineralization veins where there was a minimum true thickness of 1.5 m of <150 gpt AgEq across two or more adjacent drill holes. A surveyed topographical surface was provided by SilverCrest. All mineralization veins were clipped above the surface. Areas of historical mining and significant internal waste zones were clipped from the related vein wireframes.

A unique rock code was assigned to each rock type in the Mineral Resource model. Assays were constrained by a wireframe and back coded in the assay database with rock codes that were derived from intersections of the clipped mineralized solids and drill holes. A 0.5 m compositing length was selected for the drill hole intervals that fell within the wireframe domains. Grade capping and high-grade transition analyses for gold and silver were undertaken on the composites using log-normal histograms and log-probability plots. The high-grade transition consisted of a restrictive search ellipse and a maximum limiting composite value. Variography analyses were performed using the gold and silver composites within each individual vein wireframe as a guide to determining a grade interpolation search distance and ellipse orientation strategy.

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The block model consisted of separate model attributes for estimated gold and silver grades, rock type (mineralization domains), volume percent, bulk density, AgEq value, and classification. All blocks in the rock type block model were initially assigned a waste rock code. The mineralization domain was used to code all blocks within the rock type block model that contained ≥0.01% volume within the domain. These blocks were assigned individual rock type codes.

Gold and silver grade blocks were interpolated using inverse distance weighting to the third power (ID3). Multiple passes were executed for the grade interpolation to progressively capture the sample points to avoid over-smoothing and preserve local grade variability. Pass 0 was interpolated with underground samples, when available; Pass 1 and 2 were interpolated with capped composites derived from clipped wireframes for blocks coded with clipped solids. Pass 3 was interpolated with composites derived from unclipped solids for blocks coded with unclipped solids. At the intermediate stage of grade block estimation (May 2020), the AgEq block values were calculated with the following formula which were based on prevailing metal price averages and process recoveries at that time:

* AgEq gpt = Ag gpt + (Au gpt x 83.7).

Models were validated using on-screen visual examination of composites and block grades on successive plans and sections, the ID3 estimate was compared to a nearest-neighbour (NN) estimate, and the ID3 and NN estimates were compared against the composites using swath plots. ID3 was chosen as the preferred interpolation method based on maintaining some high-grade variability within a hard boundary wireframe to develop a better mine plan for blending material for processing.

For the Babicanora Main Vein, estimates were generated and compared between ID3 and ordinary kriging (OK) grade interpolation methods. The results from the comparison showed OK interpolation with more tonnes, less grade, and approximately 4% more AgEq ounces.

An interpolation comparison between estimates that included or excluded the influence of recent in-vein development underground channel samples was completed for the Babicanora Main Vein. Comparatively, higher gold grades are reported from underground channel samples due to better sample recovery of the fine (<75 µm) fraction in relation to the drill hole core. No major biases were noted from this validation procedure and underground channel samples were used for the Babicanora Main Vein Mineral Resource modelling.

In August 2020, the following parameters were used to calculate the AgEq cut-off grades (COG) to support the deposit as a reasonable prospect for eventual economic extraction: selective underground mining methods; silver price of $18.50/oz (approximate two-year trailing average at October 31, 2020); silver process recovery of 95%; marginal mining cost of $40/t; processing cost of $30/t, and general and administrative (G&A) cost of G&A: $15/t. AgEq cut-off for reporting the Mineral Resource estimate amenable to underground mining was calculated as follows:

* ($40+ $30+$15) / ($18.50/31.1035 x 95%) = 150 gpt AgEq.

A Measured Mineral Resource was only classified for the recent underground sampled workings in the Babicanora Main Vein with a 10 m range extended up and down from the samples interpolated with underground channel and chip samples and drill holes within this area. Indicated Mineral Resources were classified for the blocks interpolated with the Pass 1 and 2, which used at least two drill holes within 50 m. Inferred Mineral Resources were classified for all remaining grade blocks within the mineralization vein wireframes >150 gpt AgEq with some lower grade exception based on continuity. The classifications were adjusted on a longitudinal projection to reasonably reflect the distribution of each classification.

In addition to the estimate of material potentially amenable to underground mining, Mineral Resources were estimated for selected historical dumps and stockpiles. The estimated tonnage of each stockpile was calculated using the average thickness, based on trench profiles and auger drill holes, an estimated bulk density of 1.7 t/m3, and a measured surface area, calculated in GEMS using the dump perimeter. Grade capping was applied to gold and silver assay data for each stockpile area, then average grades were estimated for each stockpile area based on the samples collected. The Mineral Resource Estimate for the historical stockpiles were calculated using a COG of 110 gpt AgEq.

**Mineral Resource Statement**

The Mineral Resource estimates are reported with an effective date of October 16, 2020. The QPs for the estimates are Mr. Yungang Wu, P. Geo. and Mr. Eugene Puritch, P.Eng., of P&E.

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Mineral Resources considered potentially amenable to underground mining methods are provided in Table 0-1 (Summary) and Table 0-2 (Details). Mineral Resources are reported inclusive of those Mineral Resources converted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

***Table 0-1:** **Las Chispas Mineral Resource Estimate Summary at 150 gpt AgEq Cut-off***<sup>***(1-8)***</sup>

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Vein** | &nbsp;&nbsp; **Classification** | &nbsp;&nbsp; **Tonnes<br>(k)** | &nbsp;&nbsp; **Au<br>(gpt)** | &nbsp;&nbsp; **Ag<br>(gpt)** | &nbsp;&nbsp; **AgEq<br>(gpt)** | &nbsp;&nbsp; **Contained<br>Au (koz)** | &nbsp;&nbsp; **Contained<br>Ag (koz)** | &nbsp;&nbsp; **Contained<br>AgEq (koz)** |
| &nbsp;&nbsp; Babicanora Area Total | &nbsp;&nbsp; Measured + Indicated | &nbsp;&nbsp; 2214.5 | &nbsp;&nbsp; 7.35 | &nbsp;&nbsp; 681 | &nbsp;&nbsp; 1319 | &nbsp;&nbsp; 523.2 | &nbsp;&nbsp; 48471 | &nbsp;&nbsp; 93939 |
| &nbsp;&nbsp; Las Chispas Area Total | &nbsp;&nbsp; Indicated | &nbsp;&nbsp; 445.1 | &nbsp;&nbsp; 4.20 | &nbsp;&nbsp; 548 | &nbsp;&nbsp; 913 | &nbsp;&nbsp; 60.1 | &nbsp;&nbsp; 7844 | &nbsp;&nbsp; 13065 |
| &nbsp;&nbsp; **Total Undiluted Veins** | &nbsp;&nbsp; **Measured + Indicated** | &nbsp;&nbsp; **2659.6** | &nbsp;&nbsp; **6.82** | &nbsp;&nbsp; **659** | &nbsp;&nbsp; **1251** | &nbsp;&nbsp; **583.3** | &nbsp;&nbsp; **56316** | &nbsp;&nbsp; **107004** |
| &nbsp;&nbsp; Stockpiles | &nbsp;&nbsp; Indicated | &nbsp;&nbsp; 164.2 | &nbsp;&nbsp; 1.23 | &nbsp;&nbsp; 108 | &nbsp;&nbsp; 215 | &nbsp;&nbsp; 6.5 | &nbsp;&nbsp; 572 | &nbsp;&nbsp; 1135 |
| &nbsp;&nbsp; **Total (Veins + Stockpiles)** | &nbsp;&nbsp; **Measured + Indicated** | &nbsp;&nbsp; **2823.8** | &nbsp;&nbsp; **6.50** | &nbsp;&nbsp; **627** | &nbsp;&nbsp; **1191** | &nbsp;&nbsp; **589.8** | &nbsp;&nbsp; **56888** | &nbsp;&nbsp; **108139** |
| &nbsp;&nbsp; Babicanora Area Total | &nbsp;&nbsp; Inferred | &nbsp;&nbsp; 861.6 | &nbsp;&nbsp; 5.47 | &nbsp;&nbsp; 409 | &nbsp;&nbsp; 884 | &nbsp;&nbsp; 151.6 | &nbsp;&nbsp; 11325 | &nbsp;&nbsp; 24496 |
| &nbsp;&nbsp; Las Chispas Area Total | &nbsp;&nbsp; Inferred | &nbsp;&nbsp; 378.4 | &nbsp;&nbsp; 1.80 | &nbsp;&nbsp; 272 | &nbsp;&nbsp; 428 | &nbsp;&nbsp; 21.9 | &nbsp;&nbsp; 3308 | &nbsp;&nbsp; 5209 |
| &nbsp;&nbsp; **Total (Undiluted Veins)** | &nbsp;&nbsp; **Inferred** | &nbsp;&nbsp; **1240.0** | &nbsp;&nbsp; **4.35** | &nbsp;&nbsp; **367** | &nbsp;&nbsp; **745** | &nbsp;&nbsp; **173.4** | &nbsp;&nbsp; **14634** | &nbsp;&nbsp; **29705** |

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Notes:

1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

4. The Mineral Resources in the Report were estimated using the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.

5. Historical mined areas were removed from the wireframes and block model.

6. AgEq is based on gold to silver ratio of 86.9:1 calculated using $1,410/oz Au and $16.60/oz Ag, with average metallurgical recoveries of 96% Au and 94% Ag.

7. Mineral Resources are inclusive of the Mineral Reserves stated in Section 15 of the Technical Report.

8. Totals may not add due to rounding.

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***Table 0-2:** **Las Chispas Mineral Resource Estimate Details***<sup>***(1-8)***</sup>***at 150 gpt AgEq Cut-off***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Vein** | **Classification** | **Tonnes**<br> **(k)** | **Au**<br> **(gpt)** | **Ag**<br> **(gpt)** | **AgEq**<br> **(gpt)** | **Contained<br>Au**<br> **(koz)** | **Contained<br>Ag**<br> **(koz)** | **Contained<br>AgEq**<br> **(koz)** |
| Babicanora Main | Measured | 143.3 | 13.52 | 1192 | 2366 | 62.3 | 5490 | 10901 |
| Babicanora Main | Indicated | 919.0 | 5.29 | 532 | 992 | 156.3 | 15720 | 29302 |
| **Babicanora Main** | **Measured + Indicated** | **1062.3** | **6.40** | 621 | **1177** | **218.6** | **21210** | **40204** |
| Babicanora FW | Indicated | 162.7 | 6.60 | 610 | 1184 | 34.5 | 3190 | 6191 |
| Babicanora HW | Indicated | 119.3 | 2.48 | 151 | 366 | 9.5 | 579 | 1406 |
| Babicanora Norte | Indicated | 351.5 | 9.03 | 1067 | 1851 | 102.0 | 12051 | 20919 |
| Babicanora Norte HW | Indicated | 66.9 | 2.87 | 236 | 486 | 6.2 | 507 | 1045 |
| Babicanora Sur | Indicated | 233.4 | 7.09 | 372 | 988 | 53.2 | 2791 | 7412 |
| Babicanora Sur HW | Indicated | 18.4 | 2.62 | 97.5 | 325 | 1.5 | 57 | 191 |
| Babi Vista | Indicated | 179.9 | 15.81 | 1293 | 2668 | 91.5 | 7480 | 15482 |
| Babi Vista FW | Indicated | 20.2 | 9.53 | 928 | 1756 | 6.2 | 603 | 1141 |
| **Babicanora Area Total** | **Measured + Indicated** | **2214.5** | **7.35** | **681** | **1319** | **523.2** | **48471** | **93939** |
| Las Chispas | Indicated | 208.2 | 5.74 | 748 | 1246 | 38.4 | 5007 | 8344 |
| Giovanni | Indicated | 70.8 | 2.76 | 394 | 634 | 6.3 | 896 | 1443 |
| Gio Mini | Indicated | 54.9 | 3.70 | 466 | 787 | 6.5 | 821 | 1388 |
| William Tell Main | Indicated | 17.3 | 1.99 | 283 | 456 | 1.1 | 157 | 253 |
| Luigi | Indicated | 61.9 | 2.48 | 338 | 553 | 4.9 | 672 | 1101 |
| Luigi_FW | Indicated | 31.9 | 2.74 | 281 | 520 | 2.8 | 288 | 533 |
| **Las Chispas Area Total** | **Indicated** | **445.1** | **4.20** | **548** | **913** | **60.1** | **7844** | **13064** |
| **Total Undiluted Veins** | **Measured + Indicated** | **2659.6** | **6.82** | **659** | **1251** | **583.3** | **56315** | **107004** |
| Stockpiles | Indicated | 164.2 | 1.23 | 108 | 215 | 6.5 | 572 | 1134 |
| **Total (Veins + Stockpiles)** | **Measured + Indicated** | **2823.8** | **6.50** | **627** | **1191** | **589.8** | **56888** | **108139** |
| Babicanora Main (Inc. El Muerto Zone) | Inferred | 342.0 | 3.02 | 256 | 519 | 33.2 | 2819 | 5706 |
| Babicanora FW | Inferred | 5.4 | 1.39 | 154 | 275 | 0.2 | 27 | 48 |
| Babicanora HW | Inferred | 6.0 | 1.97 | 79 | 250 | 0.4 | 15 | 48 |
| Babicanora Norte | Inferred | 53.1 | 2.09 | 317 | 499 | 3.6 | 541 | 851 |
| Babicanora Norte HW | Inferred | 27.2 | 1.77 | 172 | 326 | 1.6 | 151 | 286 |
| Babicanora Sur | Inferred | 79.4 | 4.94 | 251 | 681 | 12.6 | 641 | 1737 |
| Babicanora Sur HW | Inferred | 2.8 | 2.53 | 6 | 226 | 0.2 | 1 | 21 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Vein** | **Classification** | **Tonnes**<br> **(k)** | **Au**<br> **(gpt)** | **Ag**<br> **(gpt)** | **AgEq**<br> **(gpt)** | **Contained<br>Au**<br> **(koz)** | **Contained<br>Ag**<br> **(koz)** | **Contained<br>AgEq**<br> **(koz)** |
| Babicanora Sur FW | Inferred | 42.0 | 1.77 | 162 | 316 | 2.4 | 219 | 426 |
| Babi Vista | Inferred | 14.1 | 3.05 | 222 | 488 | 1.4 | 101 | 221 |
| Babi Vista Splay | Inferred | 211.4 | 13.00 | 909 | 2039 | 88.3 | 6180 | 13857 |
| Babi Vista FW | Inferred | 15.1 | 2.36 | 214 | 419 | 1.1 | 104 | 204 |
| Granaditas 1 | Inferred | 43.5 | 4.11 | 295 | 653 | 5.8 | 413 | 913 |
| Granaditas 2 | Inferred | 19.7 | 1.19 | 182 | 285 | 0.8 | 115 | 180 |
| **Babicanora Area Total** | **Inferred** | **861.6** | **5.47** | **409** | **884** | **151.6** | **11325** | **24496** |
| Las Chispas | Inferred | 71.7 | 3.27 | 469 | 753 | 7.5 | 1082 | 1736 |
| Gio Mini | Inferred | 6.8 | 2.20 | 535 | 726 | 0.5 | 118 | 160 |
| William Tell Main | Inferred | 155.5 | 1.49 | 233 | 363 | 7.4 | 1166 | 1813 |
| William Tell HW | Inferred | 55.9 | 2.00 | 237 | 412 | 3.6 | 427 | 740 |
| William Tell Mini | Inferred | 33.5 | 1.60 | 172 | 311 | 1.7 | 185 | 334 |
| Luigi | Inferred | 19.7 | 1.14 | 161 | 260 | 0.7 | 102 | 165 |
| Luigi_FW | Inferred | 35.2 | 0.33 | 202 | 230 | 0.4 | 229 | 261 |
| **Las Chispas Area Total** | **Inferred** | **378.4** | **1.80** | **272** | **428** | **21.9** | **3308** | **5209** |
| **Total Undiluted Veins** | **Inferred** | **1240.0** | **4.35** | **367** | **745** | **173.4** | **14633** | **29705** |

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Notes:

1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

4. The Mineral Resources in the Report were estimated using the 2014 CIM Definition Standards on Mineral Resources and Mineral Reserves.

5. Historical mined areas were removed from the wireframes and block model.

6. AgEq is based on Au: Ag ratio of 86.9:1 calculated using $1,410/oz Au and $16.60/oz Ag, with average metallurgical recoveries of 96% Au and 94% Ag.

7. Mineral Resources are inclusive of the Mineral Reserves stated in Section 15 of the Technical Report.

8. Totals may not add due to rounding.

**Mineral Reserve Estimation**

Mineral Reserves were converted from Measured and Indicated Mineral Resources using applicable modifying factors. The Inferred Mineral Resources contained within the Mineral Resource block models were treated as waste at zero grade.

COGs were calculated using input parameters, such as process recovery, processing costs, G&A costs, commodity prices, exchange rate, and marketing costs (Table 0-3).

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***Table 0-3:** **COG Input Parameters***

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Input Parameters** |  |  |
| &nbsp;&nbsp; Processing Costs | &nbsp;&nbsp; $/t milled | &nbsp;&nbsp; 35.00 |
| &nbsp;&nbsp; General & Administrative costs | &nbsp;&nbsp; $/t milled | &nbsp;&nbsp; 15.00 |
| &nbsp;&nbsp; Gold Price | &nbsp;&nbsp; $/oz | &nbsp;&nbsp; 1410 |
| &nbsp;&nbsp; Silver Price | &nbsp;&nbsp; $/oz | &nbsp;&nbsp; 16.60 |
| &nbsp;&nbsp; Conversion | &nbsp;&nbsp; g/oz | &nbsp;&nbsp; 31.10 |
| &nbsp;&nbsp; Government Gold Royalty | &nbsp;&nbsp; % | &nbsp;&nbsp; 0.5 |
| &nbsp;&nbsp; Gold Recovery | &nbsp;&nbsp; % | &nbsp;&nbsp; 96.0 |
| &nbsp;&nbsp; Silver Recovery | &nbsp;&nbsp; % | &nbsp;&nbsp; 94.0 |
| &nbsp;&nbsp; Recovered Gold/Silver Ratio | &nbsp;&nbsp; Au/Ag | &nbsp;&nbsp; 86.9 |
| &nbsp;&nbsp; Gold Payable | &nbsp;&nbsp; % | &nbsp;&nbsp; 99.85 |
| &nbsp;&nbsp; Silver Payable | &nbsp;&nbsp; % | &nbsp;&nbsp; 99.85 |
| &nbsp;&nbsp; Transport | &nbsp;&nbsp; $/oz | &nbsp;&nbsp; 0.01 |
| &nbsp;&nbsp; Treatment and Refining | &nbsp;&nbsp; $/oz | &nbsp;&nbsp; 0.22 |
| &nbsp;&nbsp; Net Value (Ag) | &nbsp;&nbsp; $/oz | &nbsp;&nbsp; 15.25 |
| &nbsp;&nbsp; Net Value (Ag) | &nbsp;&nbsp; $/g | &nbsp;&nbsp; 0.49 |

---

Operating costs were based on an extraction and processing rate of 1,250 t/d. Marginal COGs were also calculated without development costs.

COGs were defined by mining method:

* Long hole and Avoca mining methods: COG with dilution = 190 gpt AgEq; COG marginal with dilution = 170 gpt AgEq;

* Cut-and-fill mining methods: COG with dilution = 250 gpt AgEq where the stope mining width is 1.5 m, 220 gpt AgEq where the stope mining width is 2.5 m, 200 gpt AgEq where the stope mining width is 4.5 m; marginal COG with dilution = 210 gpt AgEq where the stope mining width is 1.5 m, 200 gpt AgEq where the stope mining width is 2.5 m, and 190 gpt AgEq where the stope mining width is 4.5 m;

* Cut-and-fill mining methods using resue: COG with dilution = 430 gpt AgEq where the stope mining width is 0.5 m, 330 gpt AgEq where the stope mining width is 1.0 m, 290 gpt AgEq where the stope mining width is 1.5 m; marginal COG with dilution = 300 gpt AgEq where the stope mining width is 0.5 m, 240 gpt AgEq where the stope mining width is 1.0 m, and 220 gpt AgEq where the stope mining width is 1.5 m; and

* Stockpiles: 110 gpt AgEq.

Stopes were designed using Deswik Stope Optimizer (DSO) software. Multiple DSO scenarios were run to obtain the best results in terms of tonnage and grade. The DSO software was first programmed to estimate the economic stopes with the applicable COG. A second set of economic calculations were then completed with the use of the applicable marginal COG. The stopes calculated from the marginal COG that were continuous with the first stopes were considered for reserve inclusion.

Unplanned mining dilution was applied using DSO by allowing for dilution on the hanging wall and footwall. Different thicknesses of dilution were selected depending on the mining method. A 0.2 m shape surrounding the mineralization vein was created in the Mineral Resource block model using drill holes assays to evaluate the dilution grade outside the mineralization zone. Apart from these shapes, the diluting material was assumed to have zero grade. Some of the cemented rock fill (CRF) is expected to fall into the stope and be removed from an adjacent stope and/or be scraped off the stope floors during the mineralized material loading. This material was also assumed to have zero grade.

A 95% mining recovery was used for the various mining methods to account for the under-break and for the mineralized material left in place. Since the mining methods used are largely very selective, this percentage also included some of the rock left in place in the sill pillars.

------

The Mineral Reserve estimates have an effective date of January 4, 2021. The QP for the estimate is Mr. Carl Michaud, P.Eng., a GMS employee. COGs were calculated using input parameters, such as process recovery, processing costs, G&A costs, commodity prices, exchange rate, and marketing costs (Table 0-4 and Table 0-7).

***Table 0-4:** **Mineral Reserve Estimate (effective date: January 4, 2021)***

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Classification** | &nbsp;&nbsp; **Tonnes (k)** | &nbsp;&nbsp; **Au**<br> **(gpt)** | &nbsp;&nbsp; **Ag**<br> **(gpt)** | &nbsp;&nbsp; **AgEq**<br> **(gpt)** | &nbsp;&nbsp; **Contained Au**<br> **(koz)** | &nbsp;&nbsp; **Contained Ag**<br> **(koz)**  | &nbsp;&nbsp; **Contained AgEq**<br> **(koz)**  |
| &nbsp;&nbsp; Proven | &nbsp;&nbsp; 336.5 | &nbsp;&nbsp; 6.21 | &nbsp;&nbsp; 552 | &nbsp;&nbsp; 1091 | &nbsp;&nbsp; 67.1 | &nbsp;&nbsp; 5971 | &nbsp;&nbsp; 11, 806 |
| &nbsp;&nbsp; Probable | &nbsp;&nbsp; 3014.7 | &nbsp;&nbsp; 4.65 | &nbsp;&nbsp; 451 | &nbsp;&nbsp; 855 | &nbsp;&nbsp; 451.0 | &nbsp;&nbsp; 43707 | &nbsp;&nbsp; 82898 |
| &nbsp;&nbsp; **Proven + Probable** | &nbsp;&nbsp; **3351.2** | &nbsp;&nbsp; **4.81** | &nbsp;&nbsp; **461** | &nbsp;&nbsp; **879** | &nbsp;&nbsp; **518.1** | &nbsp;&nbsp; **49679**  | &nbsp;&nbsp; **94740** |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Mineral Reserve is estimated using the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Mineral Reserve is estimated with a variable COG which was calculated by vein width and economic and operating parameters. Refer to Subsection 15.2 for COG estimation details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Mineral Reserve is estimated using long-term prices of $1,410/oz for gold and $16.60/oz for silver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A government gold royalty of 0.5% is included in the Mineral Reserve estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Mineral Reserve is estimated with a mining recovery of 95%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Mineral Reserve presented includes both internal and external dilution. The external dilution included a mining dilution of 0.5 m width on the hanging wall and footwall for the long hole mining method and a 0.2 m width on the hanging wall and footwall for the cut-and-fill and resue mining methods. Backfill dilution is also included and represents 7% for the long hole mining method and 10% for cut-and-fill and resue mining methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. A minimum mining width of 1.5 m was used for the long hole and cut-and-fill mining methods. A minimum mining width of 0.5 m was used for the resue mining method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The economic viability of the Mineral Reserve has been demonstrated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. AgEq is based on gold to silver ratio of 86.9:1 calculated using US$1,410/oz Au and US$16.60/oz Ag, with average metallurgical recoveries of 96% Au and 94% Ag.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Qualified Person for the estimate is Mr. Carl Michaud, P.Eng., Underground Engineering Manager for GMS. The estimate has an effective date of January 4, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Totals may not add due to rounding.

***Table 0-5:** **Mineral Reserve Estimate by Vein (effective date: January 4, 2021)***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Vein** | &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Tonnes (kt)** | &nbsp;&nbsp;**Au**<br>**(gpt)** | &nbsp;&nbsp;**Ag**<br> **(gpt)** | &nbsp;&nbsp;**AgEq**<br>**(gpt)** | &nbsp;&nbsp;**Contained Au**<br>**(koz)** | &nbsp;&nbsp;**Contained Ag**<br>**(Moz)** | &nbsp;&nbsp;**Contained <br>gEq**<br>**(Moz)** |
| Babicanora Main | &nbsp;&nbsp;Proven | &nbsp;&nbsp;119.4<br>| &nbsp;&nbsp;13.11 | &nbsp;&nbsp;1168 | &nbsp;&nbsp;2307 | &nbsp;&nbsp;50.3 | &nbsp;&nbsp;4486 | &nbsp;&nbsp;8860 |
| Babicanora Main | &nbsp;&nbsp;Probable | &nbsp;&nbsp;1474.8<br>| &nbsp;&nbsp;3.47 | &nbsp;&nbsp;337 | &nbsp;&nbsp;638 | &nbsp;&nbsp;164.6 | &nbsp;&nbsp;15965 | &nbsp;&nbsp;30273 |
| Babicanora Norte | &nbsp;&nbsp;Probable | &nbsp;&nbsp;514.8<br>| &nbsp;&nbsp;5.87 | &nbsp;&nbsp;682 | &nbsp;&nbsp;1192 | &nbsp;&nbsp;97.1 | &nbsp;&nbsp;11289 | &nbsp;&nbsp;19732 |
| Babi Vista | &nbsp;&nbsp;Probable | &nbsp;&nbsp;220.7<br>| &nbsp;&nbsp;11.71 | &nbsp;&nbsp;955 | &nbsp;&nbsp;1972 | &nbsp;&nbsp;83.1 | &nbsp;&nbsp;6774 | &nbsp;&nbsp;13994 |
| Babi Vista FW | &nbsp;&nbsp;Probable | &nbsp;&nbsp;18.8<br>| &nbsp;&nbsp;8.64 | &nbsp;&nbsp;867 | &nbsp;&nbsp;1618 | &nbsp;&nbsp;5.2 | &nbsp;&nbsp;524 | &nbsp;&nbsp;978 |
| Babicanora Sur | &nbsp;&nbsp;Probable | &nbsp;&nbsp;305.3<br>| &nbsp;&nbsp;4.98 | &nbsp;&nbsp;262 | &nbsp;&nbsp;695 | &nbsp;&nbsp;48.9 | &nbsp;&nbsp;2569 | &nbsp;&nbsp;6818 |
| Babicanora Sur HW | &nbsp;&nbsp;Probable | &nbsp;&nbsp;6.1<br>| &nbsp;&nbsp;3.12 | &nbsp;&nbsp;102 | &nbsp;&nbsp;373 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;20 | &nbsp;&nbsp;73 |
| **Total Babicanora Area** | &nbsp;&nbsp;**Proven** | &nbsp;&nbsp;**119.4** | &nbsp;&nbsp;**13.11** | &nbsp;&nbsp;**1168** | &nbsp;&nbsp;**2307** | &nbsp;&nbsp;**50.3** | &nbsp;&nbsp;**4486** | &nbsp;&nbsp;**8860** |

---

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Vein** | &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Tonnes (kt)** | &nbsp;&nbsp;**Au**<br>**(gpt)** | &nbsp;&nbsp;**Ag**<br> **(gpt)** | &nbsp;&nbsp;**AgEq**<br>**(gpt)** | &nbsp;&nbsp;**Contained Au**<br>**(koz)** | &nbsp;&nbsp;**Contained Ag**<br>**(Moz)** | &nbsp;&nbsp;**Contained AgEq**<br>**(Moz)** |
| **Total Babicanora Area** | &nbsp;&nbsp;**Probable** | &nbsp;&nbsp;**2540.6**<br>| &nbsp;&nbsp;**4.89** | &nbsp;&nbsp;**455** | &nbsp;&nbsp;**880** | &nbsp;&nbsp;**399.6** | &nbsp;&nbsp;**37142** | &nbsp;&nbsp;**71867** |
| Las Chispas | &nbsp;&nbsp;Probable | &nbsp;&nbsp;180.6<br>| &nbsp;&nbsp;5.21 | &nbsp;&nbsp;661 | &nbsp;&nbsp;1114 | &nbsp;&nbsp;30.2 | &nbsp;&nbsp;3841 | &nbsp;&nbsp;6470 |
| Giovanni | &nbsp;&nbsp;Probable | &nbsp;&nbsp;65.8<br>| &nbsp;&nbsp;2.02 | &nbsp;&nbsp;301 | &nbsp;&nbsp;476 | &nbsp;&nbsp;4.3 | &nbsp;&nbsp;637 | &nbsp;&nbsp;1007 |
| Gio Mini | &nbsp;&nbsp;Probable | &nbsp;&nbsp;64.6<br>| &nbsp;&nbsp;2.51 | &nbsp;&nbsp;318 | &nbsp;&nbsp;536 | &nbsp;&nbsp;5.2 | &nbsp;&nbsp;660 | &nbsp;&nbsp;1112 |
| Luigi | &nbsp;&nbsp;Probable | &nbsp;&nbsp;37.7<br>| &nbsp;&nbsp;2.27 | &nbsp;&nbsp;309 | &nbsp;&nbsp;506 | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;374 | &nbsp;&nbsp;613 |
| Luigi FW | &nbsp;&nbsp;Probable | &nbsp;&nbsp;38.7<br>| &nbsp;&nbsp;1.67 | &nbsp;&nbsp;178 | &nbsp;&nbsp;323 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;222 | &nbsp;&nbsp;402 |
| William Tell | &nbsp;&nbsp;Probable | &nbsp;&nbsp;8.9<br>| &nbsp;&nbsp;1.94 | &nbsp;&nbsp;273 | &nbsp;&nbsp;441 | &nbsp;&nbsp;0.6 | &nbsp;&nbsp;78 | &nbsp;&nbsp;126 |
| **Total Las Chispas Area** | &nbsp;&nbsp;**Probable** | &nbsp;&nbsp;**396.3** | &nbsp;&nbsp;**3.54** | &nbsp;&nbsp;**456** | &nbsp;&nbsp;**764** | &nbsp;&nbsp;**45.1** | &nbsp;&nbsp;**5812** | &nbsp;&nbsp;**9731** |
| Historical Stockpiles | &nbsp;&nbsp;Proven | &nbsp;&nbsp;162.6<br>| &nbsp;&nbsp;1.23 | &nbsp;&nbsp;108 | &nbsp;&nbsp;215 | &nbsp;&nbsp;6.4 | &nbsp;&nbsp;565 | &nbsp;&nbsp;1123 |
| Babicanora Stockpile + Open stope | &nbsp;&nbsp;Proven | &nbsp;&nbsp;54.5<br>| &nbsp;&nbsp;5.93 | &nbsp;&nbsp;525 | &nbsp;&nbsp;1040 | &nbsp;&nbsp;10.4 | &nbsp;&nbsp;920 | &nbsp;&nbsp;1823 |
| Babicanora Stockpile + Open stope | &nbsp;&nbsp;Probable | &nbsp;&nbsp;77.8<br>| &nbsp;&nbsp;2.51 | &nbsp;&nbsp;301 | &nbsp;&nbsp;519 | &nbsp;&nbsp;6.3 | &nbsp;&nbsp;754 | &nbsp;&nbsp;1300 |
| **Total Mineral Reserve Estimate** | &nbsp;&nbsp;**Proven** | &nbsp;&nbsp;**336.5** | &nbsp;&nbsp;**6.21** | &nbsp;&nbsp;**552** | &nbsp;&nbsp;**1091** | &nbsp;&nbsp;**67.1** | &nbsp;&nbsp;**5971** | &nbsp;&nbsp;**11806** |
| **Total Mineral Reserve Estimate** | &nbsp;&nbsp;**Probable** | &nbsp;&nbsp;**3014.7** | &nbsp;&nbsp;**4.65** | &nbsp;&nbsp;**451** | &nbsp;&nbsp;**855** | &nbsp;&nbsp;**451.0** | &nbsp;&nbsp;**43707** | &nbsp;&nbsp;**82898** |
| **Total Mineral Reserve Estimate** | &nbsp;&nbsp;**Proven+**<br>**Probable** | &nbsp;&nbsp;**3351.2** | &nbsp;&nbsp;**4.81** | &nbsp;&nbsp;**461** | &nbsp;&nbsp;**879** | &nbsp;&nbsp;**518.1** | &nbsp;&nbsp;**49679** | &nbsp;&nbsp;**94704** |

---

Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Footnotes to Table 0-4 also apply to this table.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Babicanora Main Vein includes Babicanora Central Zone, Babicanora FW Vein and Babicanora HW Vein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Babicanora Norte Vein includes Babicanora Norte HW Vein.

Factors that may affect the Mineral Reserve estimates include: geological complexity, geological interpretation, and Mineral Resource block modelling; COG estimations; commodity prices, market conditions and foreign exchange rate assumptions; operating cost assumptions; sustaining capital costs to develop; rock quality and geotechnical constraints, dilution and mining recovery factors; hydrogeological assumptions; and metallurgical process recoveries.

Dilution grades for dilution were estimated from the Mineral Resource block model for the planned and unplanned dilution. Table 0-6 presents the average expected unplanned dilution by area.

***Table 0-6:** **Average Dilution by Mining Area***

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| | |
|:---|:---|
| &nbsp;&nbsp; **Areas** | &nbsp;&nbsp; **Average Dilution** |
| &nbsp;&nbsp; Babicanora Main | &nbsp;&nbsp; 48% |
| &nbsp;&nbsp; Babi Vista | &nbsp;&nbsp; 90% |
| &nbsp;&nbsp; Babicanora Norte | &nbsp;&nbsp; 56% |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Areas** | &nbsp;&nbsp; **Average Dilution** |
| &nbsp;&nbsp; Babicanora Central | &nbsp;&nbsp; 24% |
| &nbsp;&nbsp; Babicanora Sur | &nbsp;&nbsp; 60% |
| &nbsp;&nbsp; Las Chispas | &nbsp;&nbsp; 65% |
| &nbsp;&nbsp; Las Chispas Average All Areas | &nbsp;&nbsp; 52% |

---

There are no other environmental, legal, title, taxation, socioeconomic, marketing, political or other relevant factors known to the QP that would materially affect the estimation of Mineral Reserves that are not discussed in the Report. It is reasonably expected that all necessary government approvals will be issued for the Project to proceed.

**Mining Methods**

**Geotechnical Considerations**

A detailed geotechnical program was carried out in 2019-2020 by Rockland, consisting of site visits, field data collection, laboratory tests, analytical, and numerical modeling investigations.

The majority of resource drill holes were geotechnically logged and point load tested. Two rock mass classification systems were employed for the rock quality data collection program. Geotechnical data were collected from the immediate hanging wall, vein domain, and immediate footwall domains. The results are summarized in Table 0-7.

***Table 0-7:** **Rock Quality Ranges based on the RMR***<sub>***76*** </sub>***Rock Mass Classification***

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Vein Name** | &nbsp;&nbsp; **Hanging wall<br>Domain Range** | &nbsp;&nbsp; **Vein Footwall**<br> **Domain Range** | &nbsp;&nbsp; **Footwall**<br> **Domain Range** |
| &nbsp;&nbsp; **Vein Name** | &nbsp;&nbsp; **25% - 75%**<br> **Percentile** | &nbsp;&nbsp; **25%-75% Percentile** | &nbsp;&nbsp; **25%-75% Percentile** |
| &nbsp;&nbsp; Babicanora Main (upper part) and<br> Babicanora Central Zone | &nbsp;&nbsp; 26-41<br> Poor-Fair | &nbsp;&nbsp; 24-45<br> Poor-Fair | &nbsp;&nbsp; 30-62<br> Poor-Good |
| &nbsp;&nbsp; Babicanora Main (lower part) | &nbsp;&nbsp; 40-51<br> Poor-Fair | &nbsp;&nbsp; 40-47<br> Poor-Fair | &nbsp;&nbsp; 47-60<br> Fair |
| &nbsp;&nbsp; Babicanora Norte, Babicanora Norte Northwest, Babi Vista, Babicanora Sur, Babicanora FW, Las Chispas Vein, La Blanquita Zone, and Giovanni Veins | &nbsp;&nbsp; 51-84<br> Fair- V. Good | &nbsp;&nbsp; 41-76<br> Fair-Good | &nbsp;&nbsp; 47-84<br> Fair- V. Good |

---

Therefore, the rock quality of the various Las Chispas veins can be broadly divided into two main domains: "Poor-Fair/Good" and "Fair-Good/V. Good". The lower part of the Babicanora Main vein has a better rock quality than the upper portion. The Babicanora Norte, Babicanora Norte Northwest, Babi Vista, Babicanora Sur, Babicanora FW, Las Chispas, La Blanquita Zone, and Giovanni Veins have a range of "Fair-Good/V. Good" rock quality. Stope dimension analysis was conducted using the collected rock quality data and stability graph method for all veins. The results were used to assist in the selection of mining methods.

Ground support selection considered industry-standard empirical design guidelines and Rockland's experience with variable ground conditions. Ground support was recommended based on rock quality, the period in use (long-term or short-term), and the size of headings (excavation). The ground support consisting of Inflatable bolts (e.g., Swellex) or resin rebars with Split Sets and mesh was specified.

Several of the Babicanora Central stopes will come close to the ground surface; crown pillars are required for these stopes. A stability analysis, consisting of empirical and numerical modeling methods, was carried out to recommend the minimum crown pillar thickness. The crown pillar geometries were based on the three-dimensional solid model, and the rock quality was based on drill hole information from the crown pillar area. Using the scaled crown span empirical method, a minimum factor of safety of 1.5 with a probability of failure of 5-10% was chosen. Subsequently, CPillar limit equilibrium (Rocscience, 2019) and RS2 (Rocscience, 2019) finite element analyses were carried out to verify the empirical assessments. The results show that a crown pillar with strike lengths of 25 m, 50 m, and 100 m should have a minimum thickness of 12 m, 12.5 m, and 13 m, respectively.

------

**Hydrological Considerations**

A hydrological and hydrogeological study was completed by HRI. Work completed included: installation of six pressure probes to measure flow elevations; water elevation measurements taken for quality control purposes in three piezometers to verify measurements taken by SilverCrest; slug testing in three piezometers; and pump tests in a stope at the base of the historical workings at Las Chispas that is filled with groundwater, and which is the only known location in the historical operations that has groundwater.

There was insufficient rainfall during the monitoring period to generate any pressure variation between the six pressure probes.

Water elevation measurements indicated the presence of a perched phreatic surface considerably above the natural water table. The water table is at approximately 900 m elevation and the perched phreatic surface is at about 1,032 m elevation. The perched phreatic surface does not impact the historical workings, and for the purposes of the mine plan, will not require dewatering. Pump tests indicated that the host rocks had low permeability. Based on the pump test results, a maximum flow of about 9.4 L/s has been estimated at the end of operation of Las Chispas Area. There is insufficient data to determine if this flow rate will be sustained in the long-term. As a result, the mine plan in this area was designed with a dewatering system in the lower levels with a pumping capacity of 9.4 L/s; however, this pumping system will not be required until late in the mine life.

As the majority of the workings will be above the water table elevation of 900 masl, groundwater inflows are not expected to be a concern to mining operations. No impacts to surrounding perennial streams or valley bottoms are expected from mine dewatering activities, since these are typically dry other than during short-term, low precipitation rainfall events. The Rio Sonora, located 7 km west of the future operation, is considered to be too distant to be affected by any future mine-related pumping.

**Mining Methods**

The mine design was based on a production rate of 1,250 t/d and will be reached by maintaining a proper balance between productive and selective mining methods. The proposed mining approach will use variations of long hole stoping and cut-and-fill mining methods via several access drifts and ramps. These methods are appropriate to the sub-vertical vein geometry and to veins that have thicknesses ranging from 0.5-10 m.

The long hole stope mining methods will include long hole longitudinal retreat stoping and Avoca. These methods will be used in mining areas where vein thicknesses are >1.5 m and where ground conditions are fair-good. Avoca requires multiple accesses to the veins, whereas long-hole longitudinal retreat typically requires only one access. Variations of cut-and-fill mining methods will include cut-and-fill with uppers, cut-and-fill with breasting and resuing. Cut-and-fill with uppers will be used in mining areas with fair ground conditions and where the vein thickness is >1.5 m. Cut-and-fill with breasting will be used in mining areas with adverse ground conditions, and where the vein thickness is >1.5 m. Resuing will be used in mining areas where the vein thickness is <1.5 m, independent of ground conditions. Mining areas will be accessed via three portals: the Santa Rosa, Babicanora Central, and San Gotardo portals.

The level spacing was selected based on the mining method chosen and the efficiency of long hole drilling. The level distance is generally 18 m for areas where cut-and-fill will be the predominant mining method. A 15 m level spacing was used for the Babicanora Main to reduce the length of the long hole drilling, and thus reduce the deviation of the drilling. This allows for reduced dilution and better vein recovery. The level distance for the cut-and-fill and resuing was set at 18 m to reduce the total development required.

Declines will provide access from the portals to mining levels for all veins and zones. Depending on the mining methods selected, drifts may be required to access the mineralized zones. Excavation dimensions are set at 4.5 m x 4.5 m. Rigid ventilation ducts, freshwater, compressed air, and dewatering pipes and power cable will be installed in declines and main access drifts. The ramp incline is set at -15% grade. Loading and hauling will be carried out to the nearest muck bay that will be located at a maximum distance of 200 m. Dimensions will allow the use of 10 t scoops, 30 t trucks and two-boom jumbos. This equipment will be sufficient to achieve the daily development productivity target.

Pivot drives will be excavated for zones mined using cut-and-fill methods (breasting, uppers and resue). Only Babicanora Main, which will be mined by long hole method, will not have a pivot drive. The pivot drive dimensions are set at 4 m x 4 m. Fan, freshwater and compressed air pipes will be installed. The pivot drive incline will range from -18% to +18% grade. Loading and hauling will be carried out to the nearest muck bay, which will be located at a maximum distance of 60 m. The first pass advance will be conventional development and will be followed by five backslash passes. Dimensions will allow the use of 10 t scoops and two-boom jumbos.

Long hole sills will be excavated in the Babicanora Main Vein. Dimensions are set at 3 m x 3 m. The long hole sill will be developed following geology. Services such as fan pipes, fresh water etc. will be located directly in the long hole sills. Long hole sills will be used to drill and blast stopes and to mine muck. Loading and hauling will be carried out to the nearest muck bay that will be located at a maximum distance of 250 m. Dimensions will allow the use of 3 t scoops and single-boom jumbos.

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Development of cut-and-fill sills will include sills developed by breasting, uppers and resuing Dimensions are set at 3 m L x 3 m H for upper and breasting sills and 2.6 m L x 3 m H for resuing sills. Services such as fan pipe, fresh water etc. will be located directly in the cut-and-fill sills. Loading and hauling will be carried out to the use of 1.5 t or 3 t scoops, single-boom or two boom jumbos, or jacklegs, depending on the dimensions.

Several raises will be required for the different mine zones. Raises for all zones will be 3 m in diameter for main raises (drilled by raise boring) and 3 m x 3 m for internal raises. Some ventilation raises will also serve as escape ways. A prefabricated modular manway system will be installed in the emergency exits. This system has been proven to save time and costs to establish the manway. Ventilation raises between the levels will be excavated by the drop raise method.

Mining operations will extract from 16 principal veins: Babicanora Main including Area 51 and Babicanora Central zones, Babicanora FW, Babicanora HW, Babicanora Sur, Babicanora Sur HW, Babicanora Norte including Area 200 Zone, Babicanora Norte HW, Babi Vista, Babi Vista FW, Luigi, Luigi FW, William Tell, Giovanni, Gio Mini and Las Chispas including Area 118 Zone. These veins are grouped into six main mining areas: Babicanora Main, Babicanora Sur, Babi Vista, Babicanora Norte, Babicanora Central Zone and Las Chispas. Each of these mining areas will be serviced by supporting infrastructure including power distribution, compressed air distribution, water supply, ventilation, dewatering and communications.

Three drill types will be used depending on the size of the excavations. Mechanized bolters are planned for the ground support installation. Depending on the excavation size, two types of bolters will be used: standard size bolters for waste development, and narrow vein bolters in other excavations. Jackleg and stoper drills are planned for bolting in raises, drilling safety bays, service drilling, and ground support installation. Electric-hydraulic long hole drills are planned for the production holes.

Based on the mining method and excavation dimensions a fleet of 1.2 t, 3 t, 3.5 t and 10 t load-haul-dump (LHD) vehicles were selected. The 1.2 t, 3 t and 3.5 t LHD units will remove the mineralized material or waste from the stope and transport it to a muck bay, where the 10 t LHD can directly load haul trucks. In long hole stopes, an LHD equipped with remote control will be used to keep personnel away from unsupported ground. LHDs will tram the material to a nearby re-muck bay.

A 30 t diesel truck fleet was selected to bring rock to surface. The trucks will be loaded by the 10 t LHD at the loading point. Each sector of the mine will have loading points on each production level. The trucks will travel to surface where broken (not crushed) mineralized material or waste will be unloaded on a surface transfer pad. From this pad, mineralized material will be transported by surface mining trucks or via loader to the process plant. The waste not used for rockfill will be transported by surface mining trucks to the appropriate waste rock storage facility (WRSF). All mining activities will be completed via a contractor that will supply adequate underground mining equipment for the different mining activities

SilverCrest will supply fuel, electricity, explosives, explosives accessories, ground support consumables (e.g., rebars, wire mesh), construction consumables (e.g., steel), and services consumables (e.g., piping, rigid ventilation ducts).

Development has already commenced on the Babicanora Main area. Material mined prior to 2021 was stockpiled on surface. Including in-vein development and production, a total of 3.35 Mt including historical stockpiles will be mined over a period of approximately 8.5 years. The pre-production period will start in 2021 and will end during the second quarter of 2022. Development during the pre-production period will be carried out in the Babicanora Main, Babicanora Norte and Babi Vista mining areas. The average grade mined is forecast to be 4.81 gpt Au and 461 gpt Ag or 879 gpt AgEq. The production schedule was established for an annual mill feed production rate of 456,200 t/a. The schedule was built to maximize tonnage throughput to the process plant and, where possible, target higher-grade mining blocks in the early stage of the mine life. The single heading advance rate were set a 2.5 m/d with a scheduling maximum constraint of 300 m of lateral advance per month. This performance level was shown to be achievable at the Project in 2019-2020. Total mine underground capital and operating development will be 53,554 m and 32,220 m, respectively. Underground overall development will average 9,500 m/a or 26.0 m/d from Year 1 to Year 8.

The mine will operate seven days per week with two shifts of 12 hours each. Development and production crews will be on a schedule of 14 days working/seven days off, for two 12-hour shifts. The maintenance crew will also be on the same schedule of 14 working days/seven days off, for 12 hr/shift, night and day, or days only. This schedule is equivalent to operating 365 days per year. Staff mine labour, including mine management and the technical department will work on five, eight-hour shifts, per week.

Mine services will include ventilation, water supply, power, provision of cemented rock fill, compressed air, fuel, surface and underground communications networks, explosives storage and handling, and transport for personnel and materials. All major mechanical maintenance will be performed on surface at the existing workshop. Only minor maintenance and emergency work will be performed underground by mobile maintenance crews.

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**Recovery Methods**

Based on the metallurgical testing results, Ausenco's design expertise and experience from local operations treating similar types of mineralized material, the planned flowsheet, which is designed for treatment of a variety of feed grades, is flexible and robust. The flowsheet is based on well-proven unit operations in the industry and there are no unique or novel processing methods required for gold and silver recovery.

The process plant will be located at the mine site and will receive blended feed material from a number of different mineralized veins. The key project design criteria for the plant are:

* Major equipment designed for nominal throughput of 1,250 t/d with the ability to accommodate increased throughput up to 1,750 t/d via an expansion.

* Crushing circuit availability of 70%, supported by the use of a surge bin, a dedicated feeder and an emergency stockpile to provide continuous feed to the balance of the process plant; and

* Process flowsheet (Figure 0-1) including semi-autogenous grinding (SAG), flotation, independent cyanide leaching circuits for both flotation concentrate and tailings streams, Merrill Crowe circuit, and tailings handling facilities, with an overall availability of 91.3%, given:

Axb of 41 and BWI of 19.4 kwh/t;

Design head grades of 8 gpt Au and 800 gpt Ag with the ability to handle peak head grades of as much as 13 gpt Au and 1,300 gpt Ag; and,

Overall process recovery of 97.6% gold and 94.3% silver for LOM average grades.

The total operating power for the process plant will be 4.6 MW. Provision will be made for raw water to be supplied from the underground mine, the fresh water (storm) pond, the Sonora Valley, or any combination thereof pending availability and requirements. Wherever possible in the plant, process water or barren solution will be used to minimize freshwater consumption. Potable water will be sourced from the sediment-free water in the raw water tanks and treated prior to distribution or shipped to site. Plant consumables will include quick lime, sodium cyanide, lead nitrate, oxygen, flocculants, coagulant, Aerofloat 208, PAX, frother, diatomaceous earth, zinc powder, copper sulphate, sodium metabisulfite, antiscalant, and flux.

![](exhibit99-1x001.jpg)

***Figure 0-1:** **Overall Process Flow Diagram***

**Project Infrastructure**

**Infrastructure Requirements**

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Infrastructure that will be required for the mining and processing operations will include:

* Underground mine, including portals, ramps and vents;

* Roads: main access road, site access road, bridge crossing, borrow pit haul road, filtered tailings storage facility (FTSF) haul road, waste rock storage facility (WRSF) haul road, and explosives access road;

* Diversion and collection channels, culverts, and containment structures;

* Site main gate and guard house;

* Construction camp;

* Power and waster distribution;

* Warehouse and truck shop, offices, process plant dry facility, medical clinic, and nursery;

* Explosives magazines;

* Processing plant;

* Control room;

* Doré room;

* Assay laboratory (off-site facility);

* Reagent storage facility; 

* Water treatment plant;

* Mineralized stockpiles and WRSFs;

* FTSF;

* Hazardous waste containment facility; and

* Exploration core shack.

![](exhibit99-1x002.jpg)

***Figure 0-2:** **Proposed Site Layout***

**Waste Rock Storage Facility**

The WRSF will have a capacity of approximately 0.9 Mt and will be a temporary facility that will store development waste before returning it to be used as rock fill in mined-out stopes. Although current waste rock characterization indicates no potential for acid generation, contact water channels as well as contact water ponds have been considered to capture surface water runoff from this temporary structure and allow for water sedimentation/monitoring before returning it to the process plant as make up.

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**Stockpile**

The mineralized material stockpile will have a capacity of about 0.3 Mt with segregated piles by grade (or clay content). Non-contact water management structures will be used around the stockpile area to minimize contact water generation. Contact water channels and contact water ponds were designed to manage and capture runoff from this temporary structure.

**Filtered Tailings Storage Facility**

A FTSF concept was adopted based on the mine plan, the limited available construction materials, and to avoid risks associated with storage of conventional slurried tailings behind a dam. Tailings will be thickened, filtered, and delivered by trucks to the FTSF. Two facilities were designed to store approximately 4.5 Mt of tailings. However, based on the current LOM and estimated production only the East FTSF will be constructed, and will have a storage capacity of 3.5 Mt of filtered tailings.

Each facility would have an overall slope of 2.8:1 (H:V), slope between benches of 2.2:1 (H:V), and maximum approximate heights of 50m to 56 m (measured from the lowest portion of the starting buttress to the maximum elevation of the dry stacks). The East FTSF will be located about 530 m northeast of the process plant and will cover an area of 101,932 m<sup>2</sup>. The NW FTSF would be about 300 m northwest of the process plant and will cover an area of 47,758 m<sup>2</sup>.

The FTSF will include contact water collection channels, contact water collection/storage ponds, sub-drain collection systems, and access roads. Non-contact water diversion channels will be constructed to reduce the amount of surface contact water generated from the FTSF area.

**Power and Fuel**

Electrical power will be supplied to site from the national grid, by way of an overhead power line, rated to carry 8.5 MVA at 33 kV. Connection to the grid will be at the Nacozari de Garcia substation, which is 74.4 km from the Project. The Comisión Federal de Electricidad (CFE) has approved the transmission line and anticipates completion of the upgrades and construction to be completed with power supply available at Las Chispas by Q1 2022. Approximately 49 km of line construction is required, and these right-of-ways have been acquired.

Diesel fuel requirements for the mining equipment, process and ancillary facilities will be supplied from two modular above-ground diesel fuel storage tanks.

**Camp**

The Project will require the use of a temporary construction camp. The camp will generally be self-contained and have its own power generation and heating capabilities, potable water treatment plant, and sewage treatment plant. The first phase of the 520 man-camp (320 rooms) is scheduled to be completed in February 2021. The second phase (100 rooms) is scheduled for Q1 2021 and the third phase (100 rooms) is scheduled for Q2 2021. Given the risk associated with the operation of a camp during a pandemic, SilverCrest has implemented a second facility directly in the small town of Arizpe. The facility is already operational and for the most part supports the exploration needs of the company in a confined setting. The facility has a capacity of 150 beds to supplement the construction camp. The camps are intended as temporary facilities only and will be demobilised upon completion of project construction.

**Water Management**

Water required for the Project will be supplied as groundwater from dewatering of the underground mine and or from the Sonora Valley, as required. The Project design includes water diversion features to divert precipitation and groundwater away from project infrastructure and direct it to natural receiving streams to minimize the generation of contact water. The layout also includes water collection ponds to collect any contact water that is produced, and to store any excess water from the underground workings such that it can be recycled for use in the process plant. There is not expected to be any water discharged from the plant site.

**Market Studies and Contracts**

Detailed market studies on the potential sale of gold and silver doré were not completed. The doré bars produced at the Project can be expected to have variable gold and silver contents and a variable gold to silver ratio, depending mainly on the corresponding gold and silver grades of the feed material being processed at any given time. Over the projected LOM, the metal content is expected to be 0.5%-1.5% gold and 90%-95% silver with the balance impurities. Prior to production, SilverCrest will engage with gold and silver buyers and refiners, and make the necessary arrangements to safely transport, refine, and sell the doré.

Gold and silver doré can be readily sold on many markets throughout the world and the market price can be ascertained on demand. Numerous mining operations produce and sell gold and silver doré in Mexico and elsewhere, and there is sufficient information available in the public domain or furnished to SilverCrest directly from third party refiners or comparable doré producers to use as the basis for the economic analysis.

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Metal pricing for financial analysis was agreed upon based on consideration of various metal price sources. This included review of consensus price forecasts from banks and financial institutions, three-year trailing average of spot prices, and current spot prices. The metal pricing for the base case economic model was:

* Gold price of $1,500/troy oz payable; and,

* Silver price of $19.00/troy oz payable.

No contracts were entered into at the Report Effective Date for mining, facility operations, refining, transportation, handling, sales and hedging, and forward sales contracts or arrangements. It is envisaged that SilverCrest would sell any future production through contracts with a refiner, or on the spot market, as applicable. It is expected that when any such contracts are negotiated, they would be within industry norms for projects in similar settings in Mexico.

**Environmental Studies, Permitting and Social or Community Impact**

**Environmental Considerations**

Environmental surveys and studies for the Project were completed in support of permit applications. Completed studies include climate, flora, fauna, air quality, noise, surface and groundwater quality. These were compiled by LLA into an environmental baseline report and submitted July 14, 2020 to the Ministry of Environment and Natural Resources of Mexico (SEMARNAT in the Spanish acronym).

Samples of waste rock from exploration drill holes and test pits in the FTSF footprint area were submitted for testing for acid rock drainage (ARD) and metals leaching (ML) potential. Potentially leachable metals included barium and lead, but in concentrations that were well below the maximum allowable limits. The majority of samples showed no ARD potential; those samples that had elevated neutralization potential/acid potential ratios were still below SEMARNAT thresholds. Tailings samples generated from metallurgical testwork at SGS Lakefield were subjected to acid base accounting (ABA) and net acid generation (NAG) testwork. The majority of samples showed non-acid forming (NAF) characteristics in NAG testing.

No known environmental liabilities exist in the Project area from historical mining and processing operations. Soil and tailings testing were conducted as part of the overall sampling that has been ongoing at site. To date, there are no known contaminants in the soils. Water quality testing is currently ongoing through baseline environmental studies.

**Permitting Considerations**

SEMARNAT requires a number of studies be completed to support award of environmental permits to conduct exploration, or construct and operate a mine. Given the Project setting, these include a Mining Exploration Permit, Environmental Impact Assessment (MIA in the Spanish acronym) and Change in Land Use (CUS in the Spanish acronym) permit. In addition to the SEMARNAT requirements, permits must also be obtained in certain instances from the Comisión Nacional del Agua (CONAGUA), Comisión de Ecología y Desarrollo Sustentable del Estado de Sonora (CEDES), Secretaría de la Defensa Nacional (SEDENA) and local municipal authorities. The final licence requirement is the environmental operating licence (LAU in the Spanish acronym). The LAU sets out operating conditions, including specifications around equipment and processes, production, air emissions, hazardous waste and water impact obligations.

LLA worked with its permitting team in Mexico to identify the key environmental permits and other Mexican regulatory permits required to construct and operate a mine in Sonora state, Mexico, and to identify which regulatory authorities grant such permits. A total of 27 key permits were identified, of which 21 have been granted, four are pending, and the remaining two permits will be applied for in due course. Granted permits have varying terms, ranging from one year to unlimited terms. Permits will be renewed as required. LLA has all permits required to construct the underground infrastructure and process plant.

**Closure Considerations**

A Conceptual Closure Plan was prepared in general accordance with applicable Mexican standards. Under Mexican law, mining may be initiated under a Conceptual Closure Plan with a Detailed Closure Plan being developed later in the Project life.

Wood prepared a conceptual closure cost estimate for the planned operation, using a combination of information derived from the Feasibility Study, drone imagery of existing facilities and landforms, a database of itemized costs from local contractors working on similar projects in the area, and assumptions derived from Wood's experience in mine closure. The estimated cost is approximately $3.4 M. Closure costs were assumed to be disbursed over a period of approximately three years, following the cessation of production.

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**Social Considerations**

The Sonora Valley is an isolated community set in a region of rugged topography. The areas planned for mining activity are not visible from the local communities or from adjacent roads. As of November 2020, SilverCrest employed 85 people from the Sonora Valley. There are four main ejido groups that SilverCrest have been engaging with, three of which will be impacted by mining operations (Ejido Bamori, Ejido Arizpe, and Ejido Sinoquipe) and the fourth (Ejido Los Hoyos) will be impacted by the powerline. Impacts to Indigenous populations were examined. There are no indigenous populations located within 10 km of the Project.

A social baseline study, completed in 2019-2020, found key areas of community concern were: water usage, and water safety; a lack of information on the Project; concerns around an environmental incident in 2014 that was caused by a different mining company (100 km north of the Project); a wish to see improvements in the local infrastructure; that environmental safety and appropriate mine closure protocols should be in place to protect the region at the end of the LOM; and job creation with a focus on opportunities being made available for women.

In early 2020, SilverCrest engaged two third-party consultants to complete a materiality assessment designed to identify the key risks facing the company including potential risks relating to SilverCrest's relationship with, and impact on, local communities. A detailed stakeholder analysis was completed. Key findings were centered around climate and water risks, community health issues (mining, food, water), environmental safety of the local river and agriculture, employment opportunities, a desire for improved infrastructure (sports, recreation, health) and a concern regarding a potential influx of people from outside the community taxing local infrastructure. The materiality assessment results will be the basis of a company-wide Environmental and Social Management System.

SilverCrest has formalized a communication strategy that employs direct outreach, social media, company-generated videos, flyers, posters and workshops. SilverCrest has set up a whistleblower policy and hotline and, at the Report effective date, was in the process of finalizing a grievance mechanism process.

SilverCrest joined the Sonoran Mining Cluster, an organization consisting of mining companies based in Sonora, that aims to share best practices on social license concerns, innovation, sustainability, community relations and responsible mining.

SilverCrest is one of the major sponsors in a non-profit organization (Impulso Koria A.C.) located in Arizpe. Impulso Koria's objectives include supporting local infrastructure, education and health care needs. SilverCrest communicates with Impulso Koria representatives on a regular basis as part of local CSR efforts.

**Capital and Operating Costs**

**Capital Cost Estimates**

The capital cost estimate was prepared with a base date of Q3-2020, except for Owner's costs that were based on Q4-2020. The accuracy range of the capital cost estimate is ±15%. The estimate assumes US$1:CAD1.325, and US$1:MXN20.00. Pre-production costs (operating costs) were not included in the initial capital cost estimates.

Project LOM capital costs total $265.0 M, consisting of:

* Initial capital costs: include all costs required to construct the surface facilities and underground development required to commence a 1,250 t/d operation. The remaining initial capital cost is estimated to be $137.7 M after the subtraction of $25.8 M of sunk capital expensed in 2020 (from a total of $163.5 M). The sunk capital was expensed for initial earthworks, some surface infrastructure, initial and detailed engineering, procurement and contract management (EPCM) milestone payments to finance long-lead equipment item purchases;

On December 31, 2020, SilverCrest signed an EPC lump sum turnkey price contract for $76.5 M to construct the process plant. Construction is expected to start in February 2021 with production start up in Q2-2022.

* Sustaining capital costs: include all the costs required to sustain operations, with the most significant component being underground mine development. Sustaining capital costs total $123.9 M over the LOM.

* Closure costs: include all of the costs required to close, reclaim, and complete ongoing monitoring of the mine once operations conclude. Closure costs total $3.4 M.

Initial capital costs are summarized in Table 0-8.

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***Table 0-8:** **Initial Capital Cost Summary***

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| | |
|:---|:---|
| &nbsp;&nbsp; **Project Scope** | &nbsp;&nbsp; **Total Cost** <br>**($ M)** |
| &nbsp;&nbsp; Mine | &nbsp;&nbsp; 27.7 |
| &nbsp;&nbsp; Process plant | &nbsp;&nbsp; 68.0 |
| &nbsp;&nbsp; Tailings management | &nbsp;&nbsp; 3.1 |
| &nbsp;&nbsp; Infrastructure | &nbsp;&nbsp; 23.3 |
| &nbsp;&nbsp; Owners costs | &nbsp;&nbsp; 18.2 |
| &nbsp;&nbsp; **Subtotal** | &nbsp;&nbsp; **140.3** |
| &nbsp;&nbsp; Contingency | &nbsp;&nbsp; 23.3 |
| &nbsp;&nbsp; **Total Initial Capital Cost** | &nbsp;&nbsp; **163.5** |
| &nbsp;&nbsp; Sunk Capital | &nbsp;&nbsp; 25.8 |
| &nbsp;&nbsp; **Total Initial Capital Cost (remaining)** | &nbsp;&nbsp; <u>**137.7**</u> |

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Note: Totals may not add due to rounding.

Sustaining capital costs consisted of the direct costs of mine development, process plant, site infrastructure, FTSF development, and mobile equipment.

The sustaining capital cost estimate from the start of operations to the end of the LOM is provided in Table 0-9.

***Table 0-9:** **Sustaining Capital Cost Summary ($ M)***

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Calendar Year** | &nbsp;&nbsp; **2022** | &nbsp;&nbsp; **2023** | &nbsp;&nbsp; **2024** | &nbsp;&nbsp; **2025** | &nbsp;&nbsp; **2026** | &nbsp;&nbsp; **2027** | &nbsp;&nbsp; **2028** | &nbsp;&nbsp; **2029** | &nbsp;&nbsp; **2030** | &nbsp;&nbsp; **LOM** |
| &nbsp;&nbsp; **Production Year** | &nbsp;&nbsp; **1** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **3** | &nbsp;&nbsp; **4** | &nbsp;&nbsp; **5** | &nbsp;&nbsp; **6** | &nbsp;&nbsp; **7** | &nbsp;&nbsp; **8** | &nbsp;&nbsp; **9** | &nbsp;&nbsp; **LOM** |
| &nbsp;&nbsp; Process plant |  | &nbsp;&nbsp; 1.4 |  |  |  |  |  |  |  | &nbsp;&nbsp; 1.4 |
| &nbsp;&nbsp; Mobile equipment |  |  | &nbsp;&nbsp; 0.3 | &nbsp;&nbsp; 0.3 | &nbsp;&nbsp; 0.3 | &nbsp;&nbsp; 0.3 | &nbsp;&nbsp; 0.3 |  |  | &nbsp;&nbsp; 1.3 |
| &nbsp;&nbsp; Dry stack tailings |  |  |  |  |  | &nbsp;&nbsp; 0.2 | &nbsp;&nbsp; 0.1 |  |  | &nbsp;&nbsp; 0.4 |
| &nbsp;&nbsp; Mine | &nbsp;&nbsp; 10.2 | &nbsp;&nbsp; 17.7 | &nbsp;&nbsp; 20.0 | &nbsp;&nbsp; 19.2 | &nbsp;&nbsp; 17.0 | &nbsp;&nbsp; 15.0 | &nbsp;&nbsp; 13.1 | &nbsp;&nbsp; 8.0 | &nbsp;&nbsp; 0.6 | &nbsp;&nbsp; 120.9 |
| &nbsp;&nbsp; **Total sustaining capital costs** | &nbsp;&nbsp; **10.2** | &nbsp;&nbsp; **19.1** | &nbsp;&nbsp; **20.2** | &nbsp;&nbsp; **19.4** | &nbsp;&nbsp; **17.2** | &nbsp;&nbsp; **15.5** | &nbsp;&nbsp; **13.5** | &nbsp;&nbsp; **8.0** | &nbsp;&nbsp; **0.6** | &nbsp;&nbsp; **123.9** |

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Note: All numbers are rounded.

**Operating Cost Estimates**

The operating costs were completed in US dollars, unless specified, and where required were converted to US dollars using the same exchange rates as for the capital cost estimate.

The projected mine operating costs are $71.40 per tonne of material milled. The average LOM operating cost, at a design mill feed rate of 1,250 t/d, was estimated at $118.49/t of material milled. The operating cost is defined as the total direct operating costs including mining, processing, and G&A costs.

It was assumed that once construction is complete, operations personnel will reside in, or be available from nearby towns or villages. There would be no accommodation provided at site; Personnel will be transported to site by SilverCrest. It is assumed that the mining contractor would hire personnel throughout Mexico and be responsible for lodging and catering of those personnel.

The operating costs exclude doré shipping and refining charges. Costs associated with doré transport and refining were included in the financial analysis in the applied payabilities for gold and silver values recovered.

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The operating cost estimate is provided in Table 0-10.

***Table 0-10:** **Operating Cost Summary***

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| | |
|:---|:---|
| &nbsp;&nbsp; **Area** | &nbsp;&nbsp; **LOM Average Operating Cost**<br>**($/t milled)** |
| &nbsp;&nbsp; Mining | &nbsp;&nbsp; 71.40\* |
| &nbsp;&nbsp; Process and tailings management | &nbsp;&nbsp; 31.69 |
| &nbsp;&nbsp; G&A | &nbsp;&nbsp; 15.40 |
| &nbsp;&nbsp; **Total LOM operating cost** | &nbsp;&nbsp; **118.49** |

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Notes: \* Includes stope development but excludes capitalized underground development.

**Economic Analysis** 

The results of the economic analysis represent forward-looking information as defined under Canadian securities law. The economic information that is forward looking includes the following:

* Proven and Probable Mineral Reserves that have been modified from Measured and Indicated Mineral Resource estimates;

* Cash flow forecasts;

* Assumed commodity prices and exchange rates;

* Proposed mine and process production plan;

* Projected mining and process recovery rates;

* Ability to have doré refined on favourable terms;

* Proposed capital and operating costs;

* Assumptions as to closure costs and closure requirements; and,

* Assumptions as to environmental, permitting, and social risks.

Additional risks to the forward-looking information include:

* Changes to costs of production from what is assumed;

* Unrecognised environmental risks;

* Unanticipated reclamation expenses;

* Unexpected variations in quantity of mineralization, grade or recovery rates;

* Geotechnical or hydrogeological considerations during operations being different from what was assumed;

* Failure of mining methods to operate as anticipated;

* Failure of plant, equipment or processes to operate as anticipated;

* Changes to assumptions as to the availability and or generation of electrical power, and the power rates used in the operating cost estimates and financial analysis;

* Ability to maintain the social licence to operate;

* Accidents, labour disputes and other risks of the mining industry;

* Changes to interest rates, tax rates or applicable laws;

* Receipt of any required permits, beyond those already held by SilverCrest; and,

* Impacts to manpower availability and delays to the construction schedule due to the COIVID-19 global pandemic.

A pre- and post-tax economic analysis was completed on the basis of a discounted cash flow model featuring a 5% discount rate. The analysis used constant (real) 2020 US$ and the project cash flows were modelled in annual periods. The model assumed a 17-month physical construction period, and production period of 8.5 years, including the first year and final year that will see production for only a portion of those two years. Table 0-11 provides the LOM doré production forecast. Figure 0-3 illustrates the annual material movements.

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***Table 0-11:** **LOM Doré Production Forecast***

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp; **Unit** | &nbsp;&nbsp; **Total** | &nbsp;&nbsp; **2022** | &nbsp;&nbsp; **2023** | &nbsp;&nbsp; **2024** | &nbsp;&nbsp; **2025** | &nbsp;&nbsp; **2026** | &nbsp;&nbsp; **2027** | &nbsp;&nbsp; **2028** | &nbsp;&nbsp; **2029** | &nbsp;&nbsp; **2030** |
| **Mill Feed** | &nbsp;&nbsp; kt | &nbsp;&nbsp; 3351 | &nbsp;&nbsp; 167 | &nbsp;&nbsp; 456 | &nbsp;&nbsp; 456 | &nbsp;&nbsp; 456 | &nbsp;&nbsp; 456 | &nbsp;&nbsp; 456 | &nbsp;&nbsp; 456 | &nbsp;&nbsp; 363 | &nbsp;&nbsp; 84 |
| **Mill Feed Grade** | &nbsp;&nbsp; gpt Au | &nbsp;&nbsp; 4.81 | &nbsp;&nbsp; 2.53 | &nbsp;&nbsp; 5.23 | &nbsp;&nbsp; 5.3 | &nbsp;&nbsp; 5.05 | &nbsp;&nbsp; 4.9 | &nbsp;&nbsp; 5.12 | &nbsp;&nbsp; 4.89 | &nbsp;&nbsp; 4.16 | &nbsp;&nbsp; 3.23 |
| **Mill Feed Grade** | &nbsp;&nbsp; gpt Ag | &nbsp;&nbsp; 461 | &nbsp;&nbsp; 254 | &nbsp;&nbsp; 541 | &nbsp;&nbsp; 442 | &nbsp;&nbsp; 455 | &nbsp;&nbsp; 478 | &nbsp;&nbsp; 428 | &nbsp;&nbsp; 544 | &nbsp;&nbsp; 427 | &nbsp;&nbsp; 362 |
| **Mill Feed Grade** | &nbsp;&nbsp; gpt AgEq | &nbsp;&nbsp; 879 | &nbsp;&nbsp; 474 | &nbsp;&nbsp; 996 | &nbsp;&nbsp; 903 | &nbsp;&nbsp; 893 | &nbsp;&nbsp; 904 | &nbsp;&nbsp; 873 | &nbsp;&nbsp; 968 | &nbsp;&nbsp; 789 | &nbsp;&nbsp; 643 |
| **Process Recovery** | &nbsp;&nbsp; % Au | &nbsp;&nbsp; 97.0 | &nbsp;&nbsp; 90.1 | &nbsp;&nbsp; 96.2 | &nbsp;&nbsp; 97.6 | &nbsp;&nbsp; 97.6 | &nbsp;&nbsp; 97.6 | &nbsp;&nbsp; 97.6 | &nbsp;&nbsp; 97.6 | &nbsp;&nbsp; 97.6 | &nbsp;&nbsp; 97.6 |
| **Process Recovery** | &nbsp;&nbsp; % Ag | &nbsp;&nbsp; 93.7 | &nbsp;&nbsp; 87.0 | &nbsp;&nbsp; 92.8 | &nbsp;&nbsp; 94.3 | &nbsp;&nbsp; 94.3 | &nbsp;&nbsp; 94.3 | &nbsp;&nbsp; 94.3 | &nbsp;&nbsp; 94.3 | &nbsp;&nbsp; 94.3 | &nbsp;&nbsp; 94.3 |
| **Production in Doré** | &nbsp;&nbsp; **koz Au**  | &nbsp;&nbsp; **504** | &nbsp;&nbsp; **10** | &nbsp;&nbsp; **74** | &nbsp;&nbsp; **76** | &nbsp;&nbsp; **72** | &nbsp;&nbsp; **70** | &nbsp;&nbsp; **73** | &nbsp;&nbsp; **70** | &nbsp;&nbsp; **47** | &nbsp;&nbsp; **10** |
| **Production in Doré** | &nbsp;&nbsp; **koz Ag**  | &nbsp;&nbsp; **46629** | &nbsp;&nbsp; **1004** | &nbsp;&nbsp; **7367** | &nbsp;&nbsp; **6116** | &nbsp;&nbsp; **6291** | &nbsp;&nbsp; **6608** | &nbsp;&nbsp; **5920** | &nbsp;&nbsp; **7524** | &nbsp;&nbsp; **4695** | &nbsp;&nbsp; **1104** |
| **Production in Doré** | &nbsp;&nbsp; **koz AgEq** | &nbsp;&nbsp; **90392** | &nbsp;&nbsp; **1912** | &nbsp;&nbsp; **13786** | &nbsp;&nbsp; **12715** | &nbsp;&nbsp; **12571** | &nbsp;&nbsp; **12708** | &nbsp;&nbsp; **12284** | &nbsp;&nbsp; **13602** | &nbsp;&nbsp; **8812** | &nbsp;&nbsp; **2002** |

---

Notes:

* The AgEq is based on Au:Ag ratio of 86.9:1, calculated using metal prices of $1,410/oz Au and $16.60/oz Ag, and metal recovery values of 96% Au and 94% Ag.

* All numbers are rounded.

![](exhibit99-1x003.jpg)

Note: Figure prepared by SilverCrest, 2021.

***Figure 0-3:** **Material Movement Schedule***

The economic model was based on a gold price of $1,500/oz and a silver price of $19.00/oz. The freight, and treatment and refining terms for the doré were based on local rates and industry standard terms, respectively.

Initial capital expenditures were based on the required construction and development beginning in 2021 and continuing until plant start-up is achieved in 2022; these initial expenditures also included underground development expenses. However, underground development and construction expenses incurred prior to January 2021 were not included in the financial model as these were considered sunk costs at the point of a construction decision. Total construction and development expenses considered sunk capital prior to January 2021 were estimated to total $25.8 M.

Sustaining capital costs were incorporated on a year-by-year basis over the LOM, and operating costs were deducted from gross revenue to estimate annual mine operating earnings.

Royalties and fees included the following:

* Government earnings before income, taxes, and depreciation and amortization (EBITDA) royalty of 7.5% of income less authorized deductions, applicable to mining companies;

* Extraordinary government NSR of 0.5%, applicable to gold and silver operations;

* Concession fees (included in G&A operating costs).

Working capital for the project in 2021 and 2022 was estimated at $25.6 M. This estimate was reached based on consideration of required inventory, and taxes and duties.

------

Allowable deductions were applied to cash flows based on estimated capital costs and expenses that SilverCrest has incurred to date, which include:

* Capital costs depreciated at 12%;

* Non-fixed development capital depreciated at 10%;

* Sustaining capital expenses, depreciated in the year expensed;

* Pre-development exploration costs of $91.5 M depreciated at a rate of 10%; and

* Historical net operating tax losses (NOLs) applied in 2023 of $55.9 M.

The resulting taxable income was estimated at $715.1 M. SilverCrest applied a tax rate of 30% to this amount over the LOM for an estimated tax amount of $214.5 M over the LOM. A review was completed with the NOLs excluded, and the Project economics remained positive.

No salvage value was assumed for any items. No consideration of financing was made. The model considers the cash flow only at an asset level and assumes 100% equity ownership. The economic analysis demonstrated that the mine plan had positive economics under the assumptions used. The Project post-tax net present value (NPV) at a 5% discount rate was estimated to be $486.3 M with an internal rate of return (IRR) of 52%. The Project would achieve payback in 1.0 years.

The production schedule was incorporated into a pre-tax financial model to develop the annual recovered metal production. The annual at-mine revenue contribution of each metal was determined by deducting the applicable treatment, refining, and transportation charges (from mine site to market) from gross revenue.

The pre- and post-tax cash flows were based on 90.3 M payable ounces of AgEq (based on gold to silver conversion ratio of 86.9 to 1 gold). A project financial summary is shown in Table 0-12.

***Table 0-12:** **Economic Analysis Summary***

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Project Metric** | &nbsp;&nbsp; **Value** |
| &nbsp;&nbsp; Gold Price | $&nbsp;&nbsp; 1500 |
| &nbsp;&nbsp; Silver Price | $&nbsp;&nbsp; 19.00 |
| &nbsp;&nbsp; Mine Life | &nbsp;&nbsp; 8.5 |
| &nbsp;&nbsp; Nominal Process Capacity | &nbsp;&nbsp; 1250 |
| &nbsp;&nbsp; Average Annual Gold Production (LOM) | &nbsp;&nbsp; 55.96 |
| &nbsp;&nbsp; Average Annual Silver Production (LOM) | &nbsp;&nbsp; 5181 |
| &nbsp;&nbsp; Average Annual Silver Equivalent Production (LOM) | &nbsp;&nbsp; 10044 |
| &nbsp;&nbsp; Average Annual Gold Production (2023-2029) | &nbsp;&nbsp; 68.97 |
| &nbsp;&nbsp; Average Annual Silver Production (2023-2029) | &nbsp;&nbsp; 6360 |
| &nbsp;&nbsp; Average Annual Silver Equivalent Production (2023-2029) | &nbsp;&nbsp; 12354 |
| &nbsp;&nbsp; Initial Capital Expenditure | &nbsp;&nbsp; 137.7 |
| &nbsp;&nbsp; LOM Sustaining Capital Expenditure | &nbsp;&nbsp; 123.9 |
| &nbsp;&nbsp; LOM C1 Cash Costs (LOM) | &nbsp;&nbsp; 4.40 |
| &nbsp;&nbsp; LOM C1 Cash Costs (2023-2029) | &nbsp;&nbsp; 4.13 |
| &nbsp;&nbsp; Pre-Tax NPV (5%) | &nbsp;&nbsp; 655.9 |
| &nbsp;&nbsp; Pre-Tax IRR | &nbsp;&nbsp; 63 |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Project Metric** | &nbsp;&nbsp; **Unit** | &nbsp;&nbsp; **Value** |
| &nbsp;&nbsp; Post-Tax NPV (5%) | &nbsp;&nbsp; $M | &nbsp;&nbsp; 486.3 |
| &nbsp;&nbsp; Post-Tax IRR | &nbsp;&nbsp; % | &nbsp;&nbsp; 52 |
| &nbsp;&nbsp; Undiscounted Post-Tax Cash Flow (LOM) | &nbsp;&nbsp; $M | &nbsp;&nbsp; 656.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payback Period (undiscounted, post-tax cash flow) | &nbsp;&nbsp; Year | &nbsp;&nbsp; 1.0 |

---

Note: C1 cash costs represent costs incurred at each processing stage, from mining through to recoverable metal delivered to market, less net by-product credits.

Sensitivity analysis was completed to evaluate the response of the project NPV and IRR to changes in assumptions on key inputs of metals prices, grades, and capital costs and operating costs. The post-tax results across a range of ±30% are shown in

Figure 0-4 and Figure 0-5. The Project is most sensitive to changes in metal prices, less sensitive to changes in capital and sustaining costs, and least sensitive to changes in operating capital costs. Grade sensitivity mirrors the sensitivity to metal prices. The base case metal prices of $1,500/oz Au and $19.00/oz Ag were used in this sensitivity analysis.

![](exhibit99-1x004.jpg)

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Note: Table prepared by SilverCrest, 2021.

**Figure 0-4: Post-tax NPV Sensitivities (base-case is bolded)**

![](exhibit99-1x005.jpg)

Note: Table prepared by SilverCrest, 2021.

***Figure 0-5:** **Post-tax IRR Sensitivities (base-case- is bolded)***

A sensitivity analysis was performed to assess the impact of changing gold and silver prices on the Project, as outlined in Figure 0-5. The base-case is bolded in Table 0-13 below.

------

***Table 0-13:** **Economic Results for Different Metal Price Scenarios***

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Price Case** | &nbsp;&nbsp; **Gold Price**<br>**($/oz)** | &nbsp;&nbsp; **Silver Price**<br>**($/oz)** | &nbsp;&nbsp; **Post-Tax**<br> **NPV 5%**<br>**($M)** | &nbsp;&nbsp; **Post-tax**<br> **IRR**<br>**(%)** |
| &nbsp;&nbsp; **Base Case** | &nbsp;&nbsp; **1500** | &nbsp;&nbsp; **19.00** | &nbsp;&nbsp; **486.3** | &nbsp;&nbsp; **52** |
| &nbsp;&nbsp; Three-year Trailing Average | &nbsp;&nbsp; 1788 | &nbsp;&nbsp; 17.73 | &nbsp;&nbsp; 530.7 | &nbsp;&nbsp; 55 |
| &nbsp;&nbsp; Upside (Spot Case) | &nbsp;&nbsp; 1946 | &nbsp;&nbsp; 27.36 | &nbsp;&nbsp; 802.5 | &nbsp;&nbsp; 74 |
| &nbsp;&nbsp; Downside (PEA Base Case Prices) | &nbsp;&nbsp; 1269 | &nbsp;&nbsp; 16.68 | &nbsp;&nbsp; 370.4 | &nbsp;&nbsp; 42 |

---

Note: Five-year Trailing prices and Spot Prices are based on data as of January 4, 2021. PEA Case is based on the pricing from the PEA report with effective date of May 15, 2019 and as amended July 8, 2019.

**Risks**

**COVID-19**

The major risk identified to construction of the process plant and infrastructure is disruption due to a COVID-19 outbreak on site or in the local community. To reduce the likelihood of this risk materializing, the construction workforce will be accommodated at the Project site and isolated from the local community. Access to and from site will be strictly controlled, including quarantine, and testing prior to authorising access to site, and ongoing randomized testing will continue to be implemented to site.

**Mineral Resource Estimates**

The drill sample spacing varies by vein and the classification of Mineral Resource estimates was assigned based on the level of confidence based on drill core sample spacing. Risk is associated with all classifications of Mineral Resource estimates; however, the greatest risk is associated with the Inferred Mineral Resource estimate.

There is a risk that the Mineral Resource estimate wireframes (>150 gpt AgEq) may be moderately biased with respect to the representative volume, and subsequent estimated tonnage and metal content. This potential bias could be where the wireframes extend somewhat too far into lower-grade (<150 gpt AgEq) assay areas of influence. When the first stope mining operation commences in each vein, a follow-up rolling reconciliation is recommended to allow for any mine call factor adjustments to be made.

Localized extremely high-grade samples were encountered in drill core sampling as part of the mineralization system. Locally, this represents a risk in the accuracy of grade estimation for Mineral Resource and subsequent Mineral Reserve estimation, and to operational grade control.

Where only widely spaced sampling is available, the spatial extent of the high-grade mineralization may be uncertain. This risk can be reduced through future close-range sampling to better delineate high-grade shoots within the vein systems, thereby allowing the highest-grade material to be domained to constrain spatial influence of these samples within delineated shoots. Closely spaced pre-production definition drilling in combination with duplicate sampling protocols for high-grade samples should be implemented to mitigate excessive extrapolation of high-grade values and to better inform the local, short-range, grade variability.

**Mineral Reserve Estimates and Mine Plan**

The main risks that can affect the Mineral Reserves are the decrease in mining recovery and the increase in mining dilution due to the narrow veins that make up the deposit. To mitigate this risk, the mine ramp-up will be gradually increased to design level and stabilized in 2025.

There is a known void area in the Babicanora Central Zone that could cause recovery problems. Although the general area is known, the exact size and geometry of the void area is unknown. To mitigate the possible impact of this risk, mining recovery was tested in Q3 and Q4 2020 with successful results. This area will require additional backfilling and grade monitoring during operations.

Historical excavations may be encountered during mining. To mitigate this risk, a test hole program will be needed during development and stoping.

A portion of the mine will require stringent measures to maintain/control good ground conditions. In addition, the mine plan requires a significant amount of development and a portion of production will rely on lower-productivity mining methods. This combination of factors represents a risk to ensure the plant operates at its designed capacity. Planned mitigation measures include early commencement of development to provide information on ground conditions, productivity, costs, and mining methods; early hire of site management personnel; stockpiling material so that the plant has an early supply of material for treatment; and gradual ramp-up.

------

**Metallurgical Testwork and Recovery Plan**

There is a risk that spikes of high clay/mica content material, with poor settling and filtration characteristics, may occur in the process plant and cause reduced capacity through the tailings filters. During detailed design, SilverCrest can further characterise the mineralized material types and identify areas that have high clay/mica contents and thus will be able to better plan for the treatment of these materials in the plant.

When treating very high-grade silver-gold-copper grades that require high cyanide and zinc reagent additions, there is potential for impurities to build up in the recirculating process water. To mitigate this, the cyanide detoxification circuit was designed to treat an additional barren bleed stream to purge impurities from the process water.

There is a risk that a larger portion of the tailings could exhibit higher clay contents than anticipated. This could translate into greater moisture than the target at the filter plant and longer times and greater effort to process and compact the filtered tailings at the FTSF. This risk will be mitigated by providing sufficient area for the FTSF, in the early stages of stacking, where tailings that do not meet the design specifications or higher clay content tailings can be temporarily placed in the interior portion of the FTSF. Filtered tailings could then be extended and compacted when conditions allow without the need to stop tailings disposal. This design assumed that an additional facility, the NW FTSF, could be used as an alternative for temporary, non-specification tailings storage.

**Opportunities**

**Exploration and Mineral Resource Estimates**

The most significant upside is the potential for conversion of Inferred Resources to Indicated Resources and possible Reserves, conversion of excluded Indicated Resources to Reserves, and discovery of additional mineralization that may support Mineral Resource estimation.

Inferred Mineral Resources are estimated at 1.24 Mt grading 4.35 gpt Au, and 367 gpt Ag, or 745 gpt AgEq, for 29.7 Moz AgEq. The majority of these resources is located in the Babi Vista Vein Splay, Granaditas 1 and 2 veins, El Muerto Zone and the Babicanora Norte Vein. The most significant potential for adding resources and reserves is the Babi Vista Vein Splay with an estimated 211.4 kt grading 13.00 gpt Au and 909 gpt Ag, or 2,039 gpt AgEq for 13.85 Moz AgEq in Inferred Resources.

Indicated Mineral Resources that were not used for vein reserve calculation, not converted to Mineral Reserves, nor included in the Feasibility Study mine plan are estimated at 14.8 Moz AgEq (14.8 Moz 1.04 X 86.9 + 102.9 = 193 gpt AgEq) contained in 2.4 Mt at 1.04 gpt Au and 102.9 gpt Ag, and are either adjacent or proximate to the proposed mine plan. The most significant of these is the Babicanora Main Vein which has an estimated excluded Indicated Resource of 7.0 Moz Ag Eq contained in 1.0 Mt at 1.18 gpt Au and 108.6 gpt Ag or 8.41 Moz AgEq.

Through October 16, 2020, 45 veins had been identified, but only 21 of those veins have had sufficient drilling to support at least an Inferred Mineral Resource estimate. Surface exploration and drill-testing has identified over 30 km of potential vein strike length that remains to be tested. Future drilling should focus on step-out drilling within the known mineralization zones and testing deeper host lithologies, parallel veins and newly identified areas that had limited historical workings.

In some areas of the deposit, bulk densities are higher than the 2.55 t/m<sup>3</sup> value used in Mineral Resource and Mineral Reserve estimation. If higher bulk densities are confirmed, there is potential to slightly increase the tonnages in the estimates.

**Mine Plan**

With the mine expected to showcase good ground conditions and cemented rock fill being employed in mined-out stopes, there is potential that some pillars could be recovered.

Positive exploration drilling results may present an opportunity for further optimization of the mine design and schedule ahead of commercial production. Several of the high priority exploration opportunities are within or close to the proposed footprint of underground development.

**Recovery Plan**

While additional studies and engineering would be required to execute a future plant expansion; conceptually, such an expansion could be achieved through the addition of a ball mill, pebble crusher and additional flotation capacity.

**Interpretation and Conclusion**

------

Under the assumptions and parameters discussed in the Report, the Project shows positive economics.

On the basis of the Project's positive economics, SilverCrest elected to proceed with construction and entered into an EPC agreement for delivery of the process plant and associated infrastructure.

**Recommendations**

A two-phase program is recommended. The work recommended in the first phase relates to additional drilling, comprising infill and step-out drilling in the area where Mineral Resources have been estimated. This work includes exploration expansion and infill drilling based on already defined Inferred Resources for potential re-classification. The second phase focuses on studies including additional metallurgical testwork to identify areas of high mica/clay content in the veins in the mine plan, additional bulk density measurements, and updating the Mineral Resource and Mineral Reserve estimate using results of drilling, bulk density and geometallurgical testwork.

The majority of the second work phase can be completed in conjunction with the first work phase. A portion of the density determination, scanned using a portable shortwave infrared (SWIR), work suggested in Phase 2 requires channel samples from the in-vein development. Resource estimation would be completed once results of the Phase 1 drilling are available and would be updated to incorporate information from the proposed density and SWIR programs as those data became available.

The Phase 1 work program is estimated at $39 M. The Phase 2 program is estimated at $235,000.

------

APPENDIX B

![](exhibit99-1xu004.jpg)

**AUDIT COMMITTEE CHARTER**

**A. PURPOSE**

The primary function of the audit committee (the "**Committee**") is to assist the Board of Directors (the "**Board**") in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the Company to regulatory authorities and shareholders, the Company's systems of internal controls regarding finance and accounting and the Company's auditing, accounting and financial reporting processes.

The Committee's primary duties and responsibilities are to:

* serve as an independent and objective party to oversee the Company's accounting and financial reporting processes and internal control system, and compliance with ethical standards adopted by the Company;

* oversee the quality and integrity of the Company's financial statements;

* oversee, review and appraise the qualifications, performance and independence of the Company's external auditor; and

* oversee the Company's compliance with legal and regulatory requirements.

Consistent with its function, the Committee should encourage continuous improvement of, and should foster adherence to, the Company's policies, procedures and practices at all levels. The Committee should also provide for an open avenue of communication among the Company's external auditor, financial and senior management, and the Board.

**B. COMPOSITION**

**1.** The Committee shall be comprised of at least three directors as determined by the Board, all of whom shall be "independent" directors in accordance with the securities laws, rules, regulations and guidelines of all applicable securities regulatory authorities, including without limitation the securities commissions in each of the provinces and territories of Canada and the U.S. Securities and Exchange Commission, and the stock exchanges on which the Company's securities are listed, including without limitation the Toronto Stock Exchange and the NYSE American LLC (collectively, "Securities Laws"), subject to any exemptions provided thereunder.

**2.** Each member of the Committee shall satisfy the financial literacy and experience requirements of Securities Laws as determined by the Board, except as permitted by applicable securities regulatory guidelines. Each member of the Committee shall be able to read and understand fundamental financial statements, including the Company's statement of financial position, statement of profit and loss and other comprehensive income and statement of cash flows. At least one member of the Committee must be financially sophisticated within the meaning of Rule 803B of the NYSE American LLC Company Guide and must be an "audit committee financial expert" as defined in Item 407(d)(5)(ii) and (iii) of Regulation S-K.

**3.** The determination as to whether a particular director satisfies the requirements for membership on the Committee shall be made by the full Board.

4. The members of the Committee shall be elected by the Board at its first meeting following the annual shareholders' meeting and shall serve until the next annual shareholders' meeting or until earlier resignation or death. The Board may remove any member from the Committee at any time with or without cause. Unless a Chair is elected by the Board, the members of the Committee may designate a Chair by a majority vote of the full Committee membership.

------

**C. MEETINGS**

**1.** Except as expressly provided in this Charter, the Articles of the Company or applicable Securities Laws, the Committee shall fix its own rules of procedure.

**2.** In order to discharge its responsibilities, the Committee shall establish a schedule of meetings on an annual basis (with meetings at least quarterly, or more frequently as circumstances dictate or as may be prescribed by securities regulatory requirements) and shall otherwise meet at such times as the Chair of the Committee shall designate.

**3.** As part of its job to foster open communication, the Committee will meet at least quarterly with the Chief Financial Officer and, in a separate session, with the external auditor.

**4.** At all meetings of the Committee, the presence of a majority of the members will constitute a quorum for the transaction of the business and the vote of a majority of the members present shall be the act of the Committee. In the event of an equality of votes, the Chair of the Committee shall not have a second casting vote.

**5.** Members of the Committee may participate in a meeting of the Committee by conference telephone or similar communications equipment by means of which all people participating in the meeting can hear each other and participation in such a meeting will constitute presence in person at such a meeting.

**6.** Any action required or permitted to be taken at any meeting of the Committee may be taken without a meeting if all of its members consent in writing to the action and such writing is filed with the records of proceedings of the Committee.

**7.** Directors not on the Committee may attend meetings at their discretion. At the invitation of the Chair of the Committee, members of management and outside consultants shall attend Committee meetings.

**8.** The Chair shall develop and set the Committee's agenda in consultation with other members of the Committee and Company management, as necessary. The agenda and any supporting material shall be communicated to members in advance to the extent practical to permit meaningful review.

**9.** The Committee shall maintain minutes of meetings and report to the Board on significant matters arising at Committee meetings at the next scheduled meeting of the Board.

**D. AUTHORITY**

**1.** The Committee has the authority to conduct investigations into any matters within its scope of responsibility and obtain advice and assistance from outside legal, accounting, or other advisers, as necessary, to perform its duties and responsibilities.

**2.** In carrying out its duties and responsibilities, the Committee shall have full and free access to officers and employees of the Company and its books and records. Any meetings or contacts that the Committee wishes to initiate may be arranged through the CEO or the Corporate Secretary or directly by the Chair or other member of the Committee. The Committee will use its judgment to ensure that any such contact is not disruptive to the business operations of the Company.

**3.** The Company will provide appropriate funding, as determined by the Committee, for payment of: (i) compensation to any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company; (ii) compensation to any advisors employed by the Committee, and (iii) ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.

**E. RESPONSIBILITIES** **AND** **DUTIES**

To fulfill its responsibilities and duties, the Committee shall:

***1.*** <u>***Financial Reporting***</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In collaboration with management and the independent auditor, review and approve (or recommend to the Board for approval) the Company's annual and interim financial statements, management's discussion and analysis, any annual and interim earnings press releases and any reports or other financial information to be submitted to any governmental and/or regulatory body, or the public, including any certification, report, opinion, or review rendered by the external auditor for the purpose of recommending their approval to the Board prior to their filing, issue or publication. The Chair of the Committee may represent the entire Committee for purposes of this review in circumstances where time does not allow the full Committee to be available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review analyses prepared by management and/or the external auditor setting forth significant financial reporting issues and judgements made in connection with the preparation of the financial statements, including analyses of the effects of alternative GAAP or IFRS methods on the financial statements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review the effect of regulatory and accounting initiatives, as well as off balance sheet structures, on the financial statements of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ensure that adequate procedures are in place for the review of the Company's public disclosure of financial information extracted or derived from the Company's financial statements, as well as review any financial information and earnings guidance provided to analysts and rating agencies, and periodically assess the adequacy of those procedures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) review and approve (or recommend to the Board for approval), prior to public release, such other public disclosures with respect to financial information including guidance, prospectus, annual information form, annual report, management information circular, material change report, as the Committee considers appropriate.

***2.*** <u>***External Auditor***</u>

"External auditor" as used here shall mean any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company. Each such external auditor shall report directly to the Committee. With respect to the external auditor, the Committee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review annually, the performance of the external auditor who shall be ultimately accountable to the Board and the Committee as representatives of the shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain annually, a formal written statement of external auditor setting forth all relationships between the external auditor and the Company consistent with The Public Company Accounting Oversight Board Rule 3526;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review and discuss with the external auditor any disclosed relationships or services that may have an impact on the objectivity and independence of the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) appoint, retain and replace the external auditor to be nominated annually for shareholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) determine the compensation to be paid to the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Assess the independence of the external auditor, receive the report of the independent auditor and review the resolution of disagreements between management and the external auditor regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at each meeting, where desired, consult with the external auditor, without the presence of management, about the quality of the Company's accounting principles, internal controls and the completeness and accuracy of the Company's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review and approve the Company's hiring policies regarding partners, employees and former partners and employees of the present and former external auditor of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review with the external auditor the audit plan for the year-end financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) pre-approve all non-audit-related services and the fees and other compensation related thereto provided by the Company's external auditor. The authority to pre-approve non-audit services may be delegated by the Committee to one or more independent members of the Committee, provided that such pre-approval must be presented to the Committee's first scheduled meeting following such pre- approval. Pre-approval of non-audit services is satisfied if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate amount of all the non-audit services that were not pre-approved is reasonably expected to constitute no more than 5% of the total amount of fees paid by the Company and subsidiaries to the Company's external auditor during the fiscal year in which the services are provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company or a subsidiary did not recognize the services as non-audit services at the time of the engagement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the services are promptly brought to the attention of the Committee and approved, prior to completion of the audit, by the Committee or by one or more of its members to whom authority to grant such approvals has been delegated by the Committee.

***3.*** <u>***Financial Reporting Processes, Accounting Policies and Internal Control Structure***</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in consultation with the external auditor, review with management the integrity of the Company's financial reporting process, both internal and external;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) periodically review the adequacy and effectiveness of the Company's disclosure controls and procedures and the Company's internal control over financial reporting, including any significant deficiencies and significant changes in internal controls;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consider the external auditor's judgments about the quality and appropriateness of the Company's accounting principles as applied in its financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) consider and approve, if appropriate, changes to the Company's auditing and accounting principles and practices as suggested by the external auditor and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) review significant judgments made by management in the preparation of the financial statements and the view of the external auditor as to appropriateness of such judgments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) following completion of the annual audit, review separately with management and the external auditor any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to required information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) review any significant disagreement among management and the external auditor in connection with the preparation of the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review with the external auditor and management the extent to which changes and improvements in financial or accounting practices have been implemented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review any complaints or concerns about any questionable accounting, internal accounting controls or auditing matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) receive and review any disclosure from the Company's Chief Executive Officer and Chief Financial Officer made in connection with the certification of the Company's quarterly and annual financial statements, regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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 data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) establish a procedure for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) establish a procedure for the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) review the effect of regulatory and accounting initiatives, as well as off-balance-sheet structures, on the financial statements of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) review and report to the Board with respect to all related-party transactions, unless a special committee has been established by the Board to consider a particular matter.

***4.*** <u>***Ethical Compliance, Legal Compliance and Risk Management***</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) periodically review and recommend changes to the Board of the Company's Code of Business Conduct and Ethics (the "**Code**"), monitor compliance with the Code, investigate any alleged breach or violation of the Code that is reported to it and enforce the provisions of the Code. The Committee shall consider any requests for waivers from the Code, provided that a waiver from the Code for directors or executive officers must be approved by the Board. The Company shall make prompt disclosure of such waivers of the Code to Canadian and U.S. securities regulatory authorities as required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review, with the Company's counsel, legal compliance and legal matters that could have a significant impact on the Company's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review with the Company's external auditors, and if necessary, legal counsel or other advisors, any litigation, claim or contingency, including tax assessments, that could have a material effect upon the financial position of the Company and the manner in which these matters are being disclosed in the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) assist the Board in fulfilling its risk oversight responsibilities by, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ensuring that processes are in place to enable management to identify significant financial risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) ensure that management establishes appropriate action plans to mitigate against such risks; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) monitoring management's implementation of such action plans;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) review the Company's insurance program on an annual basis, including the directors' and officers' (D&O) insurance and indemnities, and consider the adequacy of such coverage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) carry out a review of the Company's Whistleblower Policy in order to ensure that it effectively permits stakeholders to express any concerns regarding accounting, internal controls, auditing matters or financial matters to an appropriately independent individual.

***5.*** <u>***Other Responsibilities***</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review policies and procedures with respect to directors' and officers' expense accounts and management perquisites and benefits, including their use of corporate assets and expenditures related to executive travel and entertainment, and review the results of the procedures performed in these areas by the external auditor, based on the terms of reference agreed upon by the external auditor and the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review expenses of the Board Chair, President, Chief Executive Officer and Chief Financial Officer annually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) set compensation for (i) an external auditor engaged for the purpose of preparing an audit report or performing other audit review or attest services for the Company, (ii) any advisors employed by the Committee, and (iii) ordinary administrative expenses of the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ensure that management periodically reviews the Company's information systems and cyber security strategies and programs, ensure management conducts periodic training for all employees and maintains adequate IT systems for conducting its business and cyber security protocols; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) annually review and update, if applicable or necessary, this Audit Committee Charter.

**F. LIMITATION OF RESPONSIBILITY**

While the Committee has the responsibilities and powers provided by this Charter, it is not the duty of the Committee to plan or conduct audits or to determine that the Company's financial statements are complete and accurate and are in accordance with international financial reporting standards. This is the responsibility of management (with respect to whom the Committee performs an oversight function) and the external auditors.

**G. GOVERNING LAW**

This Charter shall be interpreted and enforced in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable in that province.

**H. EFFECTIVE DATE**

This Charter was approved and adopted by the Board on August 24, 2015, as amended on February 23, 2022, and is and shall be effective and in full force and effect in accordance with its terms and conditions from and after such date.

------

## Exhibit 99.2

?xml version="1.0" encoding="UTF-8"? SilverCrest Metals Inc.: Exhibit 99.2 - Filed by newsfilecorp.com

------

![](exhibit99-2xz001.jpg)

**CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2022**

------

**MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS**

Management of SilverCrest Metals Inc. (the "Company") ("we", "us" or "our") have prepared the consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). The consolidated financial statements include, where necessary, amounts based on our estimates and judgement.

The Board of Directors, through the Audit Committee, is responsible for overseeing the performance of our responsibilities for financial reporting and Internal Control over Financial Reporting and Disclosure Controls and Procedures. The Audit Committee, which is composed of non-executive directors, discusses and analyzes the Company's consolidated financial statements and Management's Discussion and Analysis ("MD&A") with management before such information is approved by the Audit Committee and submitted to securities commissions or other regulatory authorities. The external auditors have full and unrestricted access to the Audit Committee to discuss the scope of their audits, and the adequacy of the system of internal controls, and to review financial reporting issues.

The consolidated financial statements have been audited by PricewaterhouseCoopers LLP, the Company's independent registered public accounting firm, in accordance with the standards of the Public Company Accounting Oversight Board (United States) and have expressed their opinion in the Report of Independent Registered Public Accounting Firm.

**Management's Report on Internal Control over Financial Reporting**

Management is responsible for establishing and maintaining adequate Internal Control over Financial Reporting, as defined in National Instrument 52-109 – Certification of Disclosure in Issuers' Annual and Interim Filings and Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended. Internal Control over Financial Reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS.

Due to its inherent limitations, Internal Control Over Financial Reporting may not prevent or detect misstatements on a timely basis. Also, projections of any evaluation of its effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of our Internal Control over Financial Reporting as of December 31, 2022, based on the criteria set forth in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this assessment, management concluded that the Company's Internal Control over Financial Reporting was effective as of December 31, 2022.

The effectiveness of the Company's Internal Control over Financial Reporting as of December 31, 2022 has been audited by PricewaterhouseCoopers LLP, as stated in their Report of Independent Registered Public Accounting Firm.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*"N. Eric Fier"* | *"Anne Yong*" |
| **Chief Executive Officer** | **Chief Financial Officer** |

---

Vancouver, Canada

March 10, 2023

------

**SILVERCREST METALS INC.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#page_4_integixAnchor) | [3 - 5](#page_4_integixAnchor) |
| [Consolidated Statements of Financial Position](#page_7_integixAnchor) | [6](#page_7_integixAnchor) |
| [Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)](#page_8_integixAnchor) | [7](#page_8_integixAnchor) |
| [Consolidated Statements of Cash Flows](#page_9_integixAnchor) | [8](#page_9_integixAnchor) |
| [Consolidated Statement of Shareholders' Equity](#page_10_integixAnchor) | [9](#page_10_integixAnchor) |
| [Notes to the Consolidated Financial Statements](#page_11_integixAnchor) | [10 - 35](#page_11_integixAnchor) |

---

------

![silauditorreport.jpg](exhibit99-2xz002.jpg)

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Shareholders of SilverCrest Metals Inc.

**Opinions on the Financial Statements and Internal Control over Financial Reporting**

We have audited the accompanying consolidated statements of financial position of SilverCrest Metals Inc. and its subsidiaries (together, the Company) as of December 31, 2022 and 2021, and the related consolidated statements of income (loss) and comprehensive income (loss), of cash flows and of shareholders' equity for the years then ended, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

**Basis for Opinions**

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

PricewaterhouseCoopers Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7

T: +1 604 806 7000, F: +1 604 806 7806

"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

------

![silauditorreport.jpg](exhibit99-2xz002.jpg)

**Definition and Limitations of Internal Control over Financial Reporting**

A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Critical Audit Matters** 

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Assessment of impairment indicators of property, plant and equipment, construction in progress and mineral property*

As described in Notes 2, 3 and 5 to the consolidated financial statements, the Company's carrying values of property, plant and equipment, construction in progress and mineral property amounted to $117 million, $3 million and $105 million, respectively, as of December 31, 2022. Management assesses whether any indication of impairment exists at the end of each reporting period or whenever the facts and circumstances indicate that the carrying values of the assets may exceed their recoverable amounts. If such an indication exists, the recoverable amount of an asset or cash generating unit (CGU) is estimated in order to determine the extent of the impairment, if any. Management applies critical judgment in assessing whether certain information would be considered an indicator of impairment. Management considers both internal and external information to determine whether there is an indicator of impairment. The information that management considers in assessing whether there are any indicators of impairment include, but are not limited to, significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate, if any. No impairment indicators were identified by management as of December 31, 2022.

------

![silauditorreport.jpg](exhibit99-2xz002.jpg)

The principal considerations for our determination that performing procedures relating to the assessment of impairment indicators of property, plant and equipment, construction in progress and mineral property is a critical audit matter are (i) the critical judgment made by management when assessing whether there were indicators of impairment, considering information such as significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate, if any, and (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures to evaluate the audit evidence related to management's assessment of impairment indicators of property, plant and equipment, construction in progress and mineral property.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management's assessment of impairment indicators of property, plant and equipment, construction in progress and mineral property. These procedures also included, among others, evaluating the reasonableness of management's conclusion with respect to impairment indicators, considering information such as significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate, if any, by considering (i) consistency with external market and industry data, (ii) consistency with the current performance of the CGU, (iii) the past performance of the CGU, relative to budget, and (iii) evidence obtained in other areas of the audit, as applicable.

**/s/PricewaterhouseCoopers LLP**

Chartered Professional Accountants

&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;&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

March 10, 2023

We have served as the Company's auditor since 2019.

------

**SILVERCREST METALS INC.**<br> **CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS)**<br> **AS AT** <br>

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  |  | |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $50761 | $176515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 179 | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;Value-added taxes receivable | 15985 | 10211 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories (note 4) | 40203 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | 4663 | 3303 |
| **Total current assets** | 111791 | 190117 |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Value-added taxes receivable | 15433 | 13082 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 27 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mineral property, plant, and equipment (note 5) | 228098 | 165686 |
| **Total non-current assets** | 243558 | 178860 |
| **TOTAL ASSETS** | $355349 | $368977 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities (note 6) | $23416 | $10385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 116 | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt (note 7) | 13393 |  |
| **Total current liabilities** | 36925 | 10563 |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 260 | 263 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liability (note 16) | 382 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt (note 7) | 36198 | 87168 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclamation and closure provision (note 8) | 4590 | 2713 |
| **Total non-current liabilities** | 41430 | 90144 |
| **Total liabilities** | 78355 | 100707 |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital stock (note 15) | 405811 | 401736 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based payment reserve (note 15) | 10945 | 9782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation reserve | (13793) | 14194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deficit | (125969) | (157442) |
| **Total shareholders' equity** | 276994 | 268270 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $355349 | $368977 |

---

**Nature of operations** (note 1)

**Commitments** (note 18)

**Subsequent events** (note 20)

**Approved by the Board and authorized for issue on March 10, 2023:**

---

| | | | |
|:---|:---|:---|:---|
| *"N. Eric Fier"* | **Director** | *"Graham C. Thody*" | **Director** |

---

*The accompanying notes are an integral part of these consolidated financial statements.* 6

------

**SILVERCREST METALS INC.**<br> **CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT FOR PER SHARE AMOUNTS; SHARES IN THOUSANDS)**<br> **FOR THE YEARS ENDED DECEMBER 31,**<br>

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  |  | |
| **Revenue** (note 9) | $43510 | $- |
| **Cost of sales** (note 10) | (15090) |  |
| **Mine operating income** | 28420 |  |
|  |  | |
| **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative expenses (note 11) | (7824) | (6011) |
| &nbsp;&nbsp;&nbsp; Exploration and evaluation expenditures (note 12) | (5444) | (10476) |
| &nbsp;&nbsp;&nbsp; Depreciation (note 5) | (56) | (59) |
| &nbsp;&nbsp;&nbsp; Share-based compensation (notes 14 and 15) | (1866) | (1721) |
|  | (15190) | (18267) |
| **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp; Foreign exchange gain (loss) (note 18) | 27913 | (5171) |
| &nbsp;&nbsp;&nbsp; Interest and finance expense (note 13) | (6589) | (27) |
| &nbsp;&nbsp;&nbsp; Interest income | 2811 | 1085 |
| **Income (loss) before income taxes** | 37365 | (22380) |
| Income tax expense (note 16) | (5682) | (384) |
| Deferred income tax expense (note 16) | (382) |  |
| **Income (loss) for the year** | $31301 | $(22764) |
| **Other comprehensive loss** |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustment | (27987) | 5325 |
| **Comprehensive income (loss) for the year** | $3314 | $(17439) |
| **Basic income (loss) per common share** | $0.21 | $(0.16) |
| **Diluted income (loss) per common share** | $0.21 | $(0.16) |
| **Weighted average number of common shares outstanding** |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 146164 | 142611 |
| &nbsp;&nbsp;&nbsp; Diluted | 152190 | 142611 |

---

*The accompanying notes are an integral part of these consolidated financial statements.* 7

------

**SILVERCREST METALS INC.**<br> **CONSOLIDATED STATEMENTS OF CASH FLOWS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS)**<br> **FOR THE YEARS ENDED DECEMBER 31,**<br>

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Income (loss) for the year | $31301 | $(22764) |
| Adjustments for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion (note 5) | 1937 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, unrealized | (21868) | 2660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 6064 | 384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid |  | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and finance expense (note 13) | 6566 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (2811) | (1085) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 2398 | 2013 |
| Changes in non-cash working capital items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (5) | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;Value-added taxes receivable | (8127) | (10745) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (21945) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaids and deposits | (2180) | (713) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 3613 | (2462) |
| **Net cash used in operating activities** | (5057) | (32853) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest received | 2715 | 1286 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expenditures on mineral properties, plant and equipment | (68489) | (120381) |
| **Net cash used in investing activities** | (65774) | (119095) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital stock issued | 2467 | 140823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital stock issuance costs |  | (6645) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan drawdown, net of transaction cost | 49583 | 60000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan repayment | (90000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Early prepayment fees and closing costs | (2860) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan interest payment | (7568) | (3436) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of lease liabilities | (159) | (153) |
| **Net cash (used in) provided by financing activities** | (48537) | 190589 |
| Effect of foreign exchange on cash and cash equivalents | (6386) | 2738 |
| **Change in cash and cash equivalents, during the year** | (125754) | 41379 |
| **Cash and cash equivalents, beginning of the year** | 176515 | 135136 |
| **Cash and cash equivalents, end of the year** | $50761 | $176515 |
| **Cash and cash equivalents is represented by:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | $50761 | $125587 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents |  | 50928 |
| **Total cash and cash equivalents** | $50761 | $176515 |
| **Non-cash investing activities** |  |  |
| Capitalized to mineral property, plant, and equipment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to inventories | $(8277) | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $3350 | $6611 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion (note 5) | $1042 | $1388 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan interest and accretion (note 7) | $1618 | $267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | $1305 | $1398 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset recognized | $99 | $256 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on lease liabilities | $19 | $9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in reclamation and closure provision | $1576 | $2713 |

---

*The accompanying notes are an integral part of these consolidated financial statements.* 8

------

**SILVERCREST METALS INC.**<br> **CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS; SHARES IN THOUSANDS)**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Capital stock** | **Capital stock** | **Share-based** | **Foreign currency** |  |  |
|  |  |  | **payment** | **translation** |  |  |
|  | **Number** | **Amount** | **reserve** | **reserve** | **Deficit** | **Total** |
| **Balance at December 31, 2020** | 129329 | $265939 | $8978 | $8869 | $(134786) | $149000 |
| Capital stock issued (note 15) | 15008 | 138069 |  |  |  | 138069 |
| Capital stock issuance costs (note 15) |  | (6645) |  |  |  | (6645) |
| Stock options exercised (note 15) | 1312 | 4373 | (1619) |  |  | 2754 |
| Stock options forfeited (note 15) |  |  | (108) |  | 108 |  |
| Share-based compensation, stock options (note 15) |  |  | 2531 |  |  | 2531 |
| Foreign exchange translation |  |  |  | 5325 |  | 5325 |
| Loss for the year |  |  |  |  | (22764) | (22764) |
| **Balance at December 31, 2021** | 145649 | 401736 | 9782 | 14194 | (157442) | 268270 |
| Stock options exercised (note 15) | 1507 | 4075 | (1608) |  |  | 2467 |
| Stock options forfeited (note 15) |  |  | (172) |  | 172 |  |
| Share-based compensation, stock options (note 15) |  |  | 2943 |  |  | 2943 |
| Foreign exchange translation |  |  |  | (27987) |  | (27987) |
| Income for the year |  |  |  |  | 31301 | 31301 |
| **Balance at December 31, 2022** | 147156 | $405811 | $10945 | $(13793) | $(125969) | $276994 |

---

*The accompanying notes are an integral part of these consolidated financial statements.* 9

------

**SILVERCREST METALS INC.** <br>**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br>**YEAR ENDED DECEMBER 31, 2022**<br>

**1.** <u>**NATURE OF OPERATIONS**</u>

SilverCrest Metals Inc. (the "Company" or "SilverCrest") is a Canadian precious metals producer headquartered in Vancouver, BC. The Company was incorporated under the Business Corporations Act (British Columbia). The common shares of the Company trade on the Toronto Stock Exchange ("TSX") under the symbol "SIL" and on the NYSE-American under the symbol "SILV". The head office and principal address of the Company is 501-570 Granville Street, Vancouver, BC, Canada, V6C 3P1. The address of the Company's registered and records office is 19<sup>th</sup> Floor, 885 West Georgia Street, Vancouver, BC, Canada, V6C 3H4.

The Company's principal focus is operating the Las Chispas Mine, located in Sonora, Mexico, which was ready for its intended use and therefore reached commercial production effective November 1, 2022. Please refer to note 3 *"Critical Judgements and Estimates - Critical Judgements in Applying Accounting Policies*" for further details.

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES**</u>

**Basis of preparation and measurement**

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS").

These consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. Additionally, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

These consolidated financial statements were approved for issuance by the Board of Directors on March 10, 2023.

**Basis of consolidation**

These consolidated financial statements incorporate the financial statements of the Company and its subsidiaries, all of which are wholly owned. The Company consolidates subsidiaries where the Company can exercise control. Control is achieved when the Company is exposed to variable returns from involvement with an investee and can affect the returns through power over the investee. Control is normally achieved through ownership, directly or indirectly, of more than 50 percent of the voting power. Control can also be achieved through power over more than half of the voting rights by virtue of an agreement with other investors or through the exercise of de facto control. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition of control up to the effective date of loss of control.

The Company's principal subsidiary at December 31, 2022 was the wholly-owned Compañía Minera La Llamarada, S.A. de C.V. located in Mexico whose principal project and purpose is ownership and operation of the Las Chispas Mine.

Intercompany assets, liabilities, equity, income, expenses, and cash flows between the Company and its subsidiaries are eliminated on consolidation.

**Foreign currencies**

The Company's presentation currency is the United States dollar ("US$"). The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The Company considers the functional currency for its Canadian operations to be the Canadian dollar ("C$") and its Mexican operations to be US$.

*Foreign currency transactions*

Foreign currency balances and transactions are translated into the respective functional currencies of each entity as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Monetary assets and liabilities are translated at period end exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Non-monetary assets and liabilities are translated at historical exchange rates in effect on the date transactions occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Revenue and expenses are translated using exchange rates approximating those in effect on the date transactions occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Exchange gains and losses are included in profit or loss.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Foreign currencies** (continued)

*Translation to presentation currency*

For entities with a functional currency other than US$, balances and transactions are translated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Assets and liabilities were translated at period end exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Revenue and expenses are translated using exchange rates approximating those in effect on the date transactions occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Exchange gains and losses arising on translation are recorded to foreign currency translation reserve.

**Cash and cash equivalents**

Cash and cash equivalents consist of cash on hand and highly liquid investments that are readily convertible to known amounts of cash with a term to maturity at the date of purchase of 90 days or less which are subject to an insignificant risk of change in value.

**Value-added taxes receivable**

Current taxes receivable includes Goods and Services Tax receivables generated on the purchase of supplies and services and are refundable from the Canadian government. Current and non-current taxes receivable includes value-added taxes ("VAT") receivables generated on the purchase of supplies and services and are receivable from the Mexican government. The Company classifies VAT receivables as non-current if it does not expect collection of certain amounts to occur within the next year. The recovery of VAT involves a complex application process and the timing of collection of VAT receivables is uncertain. The Company has not recognized a loss allowance for expected credit losses as VAT receivables are not contract assets and therefore outside the scope of IFRS 9.

**Inventories**

Inventories include stockpiled ore, work-in-process, materials and supplies, and finished goods, and are measured at the lower of weighted average cost or net realizable value ("NRV"). For work-in-process and finished goods inventories, cost includes all direct costs incurred in production, including direct labour and materials, depreciation and depletion, and directly attributable overhead costs. NRV is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future costs to convert the inventories into saleable form, transportation costs, and estimated costs to sell.

Stockpiled ore represents ore that has been extracted from the mine and is available for further processing. Costs added to stockpiled ore inventory is based on current mining cost per ounce incurred up to the point of stockpiling the ore and are removed at the weighted average cost per ounce. Costs are included in work-in-process inventory based on current costs incurred up to the point prior to the refining process, including applicable depletion of mining interests, and removed at the weighted average cost per recoverable ounce of silver equivalent. The average costs of finished goods represent the average costs of work-in-process inventory incurred prior to the refining process, plus applicable refining and transportation costs.

Work-in-process inventory includes inventory in the milling process, in tanks, and precipitates. Finished goods inventory includes metals in their final stage of production prior to sale, primarily doré at the mine site or in transit, and refined metal held at a refinery.

Any write-downs of inventories to NRV are recorded as cost of sales. If there is a subsequent increase in the value of inventories, the previous write-downs to NRV are reversed to the extent that the related inventories have not been sold.

Materials and supplies are measured at weighted average cost. Cost includes acquisition, freight, and other directly attributable costs. In the event that the NRV of the finished goods, the production of which the materials and supplies are held for use in, is lower than the expected cost of the finished product, the material and supplies are written down to their NRV.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Mineral property, plant, and equipment** 

*Exploration and evaluation assets - acquisition costs*

The costs of acquiring exploration properties, including transaction costs, are capitalized as exploration and evaluation assets. All other exploration and evaluation expenditures are expensed in the period in which they are incurred.

Acquisition costs for each exploration property are carried forward as an asset provided that one of the following conditions is met:

&nbsp;&nbsp;&nbsp;&nbsp;● Such costs are expected to be recouped in full through the successful exploration and development of the exploration property or alternatively, by sale; or

&nbsp;&nbsp;&nbsp;&nbsp;● Exploration and evaluation activities in the property have not reached a stage which permits a reasonable assessment of the existence of economically recoverable reserves, but active and significant operations in relation to the exploration property are continuing or planned.

The Company performs an assessment for impairment of capitalized amounts whenever the facts and circumstances indicate that the asset may exceed its recoverable amount. In the case of undeveloped properties, there may be only inferred resources to allow management to form a basis for the impairment review. The review is based on the Company's intentions for the development of such an exploration property and management's determination that the exploration property is not viable. If an exploration property is considered to be impaired, all unrecoverable costs associated with the property are charged to the consolidated statement of income (loss) and comprehensive income (loss) at the time the determination is made. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. If the recoverable amount of an individual asset cannot be determined, the recoverable amount is determined for the cash generating unit ("CGU") to which the asset belongs. Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in the consolidated statement of income (loss) and comprehensive income (loss).

*Exploration and evaluation expenditures*

Exploration and evaluation costs, net of incidental revenues, are charged to the consolidated statement of income (loss) and comprehensive income (loss) in the year incurred until the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, in which case subsequent exploration costs and the costs incurred to develop a property are capitalized into mineral property, plant, and equipment. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, such as but not limited to: the extent to which mineral reserves or mineral resources have been identified through a feasibility study or similar level document; the results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; the status of environmental permits, and the status of mining leases or permits.

*Mineral property - development phase*

Once the technical feasibility and commercial viability of an exploration property has been determined, it is then considered to be a mine under development and is reclassified to mineral property. The carrying value of capitalized exploration and evaluation acquisition costs are tested for impairment before they are transferred to mineral property.

All costs relating to the construction, installation, or completion of a mine that are incurred subsequent to the exploration and evaluation stage are capitalized to mineral property.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Mineral property, plant, and equipment** (continued)

*Mineral property - development phase* (continued)

The Company assesses the stage of each mine under development to determine when an asset reaches the stage when it is in the condition for it to be capable of operating in a manner intended by management ("commercial production"). Determining when an asset has achieved commercial production is a matter of judgement. Depending on the specific facts and circumstances, the following factors may indicate that commercial production has commenced:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● all major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the completion of a reasonable period of testing of the mine plant and equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the ability to produce saleable product (e.g., the ability to produce ore within specifications);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the mine has been transferred to operating personnel from internal development groups or external contractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the mine or mill has reached a predetermined percentage of design capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● mineral recoveries are at or near the expected production level; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the ability to sustain ongoing production of ore (i.e., the ability to continue to produce ore at a steady or increasing level).

*Proceeds before intended use*

Revenue from the sale of gold and silver ounces recovered before items of mineral property, plant, and equipment, such as the mine or process plant, are operating in the manner intended by management are recognized, along with related costs, in the consolidated statement of income (loss) and comprehensive income (loss).

*Mineral property - production phase*

When management determines that a property is capable of commercial production, depletion of costs capitalized during development begins.

Once a mineral property has been brought into commercial production, the costs of any additional work on that property are expensed as incurred, except for exploration and development programs which constitute a betterment, which will be deferred and depleted over the remaining useful life of the related assets. Mineral properties include reclamation and closure provision costs related to the reclamation of mineral properties. Mineral properties are derecognized upon disposal, or impaired when no future economic benefits are expected to arise from continued use of the asset or the carrying value of the CGU exceeds its recoverable amount. Any gain or loss on disposal of the asset, determined as the difference between the proceeds received and the carrying amount of the asset is recognized in the consolidated statement of income (loss) and comprehensive income (loss).

Mineral properties are depleted on the unit-of-production basis using the mineable tonnes extracted from the mine in the period as a percentage of the total mineable tonnes to be extracted in current and future periods based on mineral reserves. Mineral properties are recorded at cost, net of accumulated depletion and accumulated impairment losses and are not intended to represent future values. Recovery of capitalized costs is dependent on successful development of economic mining operations or the disposition of the related mineral property.

*Property, plant, and equipment*

Property, plant, and equipment is recorded at historical cost less accumulated depreciation and impairment charges.

The cost of an item of property, plant, and equipment includes the purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use, an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, and for qualifying assets, the associated borrowing costs.

Where an item of plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items of plant and equipment.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Mineral property, plant, and equipment** (continued)

*Property, plant, and equipment* (continued)

Plant and equipment is depreciated to its estimated residual value using either the straight-line or the units-of-production method over the estimated useful lives of the individual assets. The major categories of plant and equipment and their useful lives and depreciation method are as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Category** | &nbsp;&nbsp; **Estimated life** | &nbsp;&nbsp; **Depreciation method** |
| &nbsp;&nbsp; Computer equipment | &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;&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;&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; 3-4 years  | &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;&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;&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; Straight-line  |
| &nbsp;&nbsp; Mining equipment | &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;&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;&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; 5-15 years  | &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;&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;&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; Straight-line  |
| &nbsp;&nbsp; Vehicles | &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;&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;&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; 4 years  | &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;&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;&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; Straight-line  |
| &nbsp;&nbsp; Buildings | &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;&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;&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; Life-of-mine  | &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;&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;&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; Straight-line  |
| &nbsp;&nbsp; Mine plant and related equipment | &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;&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;&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; Life-of-mine  | &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;&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;&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; Units-of-production  |
| &nbsp;&nbsp; Underground infrastructure | &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;&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;&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; Life-of-mine  | &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;&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;&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; Straight-line  |

---

Assets under construction are not depreciated until available for their intended use. Non-depreciable property, such as land, is recorded at historical cost, less any impairment charges.

The Company conducts a review of residual values, useful lives, and depreciation methods annually and when events and circumstances indicate such a review should be made. Any changes in estimates that arise from this review are accounted for prospectively.

An item of property, plant, and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the statement of consolidated income (loss) and comprehensive income (loss).

**Reclamation and closure provision**

The Company recognizes liabilities for statutory, contractual, constructive, or legal obligations, including those associated with the reclamation and closure of exploration and evaluation assets, mineral properties, plant, and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a liability for an environmental rehabilitation obligation is recognized at its present value if a reasonable estimate of cost can be made. The Company records the present value of estimated future cash flows, adjusted for inflation, associated with reclamation as a liability, at a risk-free rate, when the liability is incurred and increases the carrying value of the related assets for that amount. Subsequently, these capitalized reclamation and closure costs are amortized over the life of the related assets. At the end of each period, the liability is increased to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying any initial estimates (additional reclamation and closure costs). The Company recognizes its environmental liability on a site-by-site basis when it can be reliably estimated. Environmental expenditures related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible are charged to the consolidated statement of income (loss) and comprehensive income (loss).

**Leases**

The Company assesses whether a contract is or contains a lease, at the inception of a contract. The Company recognizes a right-of-use ("ROU") asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, at the commencement of the lease, with the following exceptions: (i) the Company has elected not to recognize ROU assets and liabilities for leases where the total lease term is less than or equal to 12 months, or (ii) for leases of low value. The payments for such leases are recognized in either the consolidated statement of financial position or the consolidated statement of income (loss) and comprehensive income (loss) on a straight-line basis over the lease term.

The ROU asset is initially measured based on the present value of lease payments, lease payments made at or before the commencement day, and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. The ROU asset is depreciated over the shorter of the lease term or the useful life of the underlying asset. The ROU asset is subject to testing for impairment if there is an indicator of impairment.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Leases** (continued)

The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Lease payments include fixed payments less any lease incentives, and any variable lease payments where variability depends on an index or rate. When the lease contains an extension or purchase option that the Company considers reasonably certain to be exercised, the cost of the option is included in the lease payments.

ROU assets are included in mineral property, plant, and equipment, and the lease liability is presented as a separate line in the consolidated statement of financial position. Variable lease payments that do not depend on an index or rate are not included in the measurement of the ROU asset and lease liability. The related payments are recognized as an expenditure in the period in which the triggering event occurs and are included in either the consolidated statement of financial position or the consolidated statement of income (loss) and comprehensive income (loss).

**Debt and borrowing costs**

Debt is initially recognized at fair value, net of any transaction costs, and subsequently carried at amortized cost.

Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as part of the cost of that asset until the asset is substantially complete and ready for its intended use. All other borrowing costs are expensed as incurred.

**Share-based compensation and payments**

The Company grants stock options to buy common shares of the Company to directors, officers, employees, and consultants. The cost of stock options granted is recorded based on the estimated fair-value at the grant date and is either capitalized to the consolidated statement of financial position or charged to the consolidated statement of income (loss) and comprehensive income (loss) over the vesting period. Where stock options are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes Option Pricing Model. Compensation expense is recognized over the tranche's vesting period by either capitalization to the consolidated statement of financial position or a charge to the consolidated statement of income (loss) and comprehensive income (loss), with a corresponding increase to reserves based on the number of options expected to vest. Consideration paid for the shares on the exercise of stock options is credited to capital stock. When vested options are forfeited or are not exercised at the expiry date the amount previously recognized in share-based compensation is transferred to deficit. The number of options expected to vest is reviewed at least annually, with any impact being recognized immediately.

In situations where equity instruments are issued to non-employees and some or all the goods or services received by the entity as consideration cannot be specifically identified, they are measured at fair value of the share-based payment. Otherwise, share-based payments to non-employees are measured at the fair value of goods or services received.

*Share unit plan*

On June 15, 2021, the shareholders of the Company approved the adoption of a Equity Share Unit Plan for the Company (the "SU Plan") pursuant to which the Company may grant share units ("SUs"), including restricted share units ("RSUs"), performance share units ("PSUs") and deferred share units ("DSUs"). The SU Plan provides for up to 1.5% of the outstanding common shares of the Company from time to time to be issuable to settle share units granted under the SU Plan. With the implementation of the SU Plan, the Company's former cash-settled DSU plan was phased out and no new awards of DSUs will be granted under that plan.

The SUs will be subject to any combination of time-based vesting and performance-based vesting conditions as the Board of Directors shall determine from time to time. Unless set forth in the particular award agreement, the Board of Directors may elect one or any combination of the following settlement methods for the settlement of SUs: issuing shares from treasury, causing a broker to purchase shares on the TSX; and/or paying cash. While the SUs issued during 2022 and 2021 did not specify a method of settlement, the Company determined that at least a portion would be settled by a brokered purchase or cash. Accordingly, the Company recorded the value of SUs issued as an accrued liability.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Share-based compensation and payments** (continued)

*DSUs*

DSUs vest immediately and become payable upon the retirement of the holder. The share-based compensation expense related to these DSUs was calculated using the fair value method based on the market price of the Company's shares at the end of each reporting period and the Company records a corresponding liability in accounts payable and accrued liabilities.

*RSUs*

Share-based compensation of RSUs is calculated using the fair-value method based on the market price of the Company's shares at the grant date and is recorded over the vesting period. Where RSUs are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. Share-based compensation is recognized over the tranche's vesting period as either an expense, inventories, exploration and evaluation expenditure, or capitalized as mineral property, plant, and equipment, with a corresponding change in accrued liabilities. The value of vested RSUs is remeasured at each reporting date to the current market price of the Company's shares.

*PSUs*

Share-based compensation of PSUs is calculated using the fair-value method based on the market price of the Company's shares at the grant date and is recorded over the vesting period. Share-based compensation is recognized on a straight-line method basis, over the PSU's vesting period as either an expense, inventories, or capitalized as mineral property, plant, and equipment, with a corresponding change in accrued liabilities. The value of vested PSUs is remeasured at each reporting date to the current market price of the Company's shares.

**Related party transactions**

Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control, and related parties may be individuals, such as key management personnel, including immediate family members of the individual, or corporate entities, including the Company's wholly owned subsidiaries. A transaction is a related party transaction when there is a transfer of resources or obligations between related parties.

**Income (loss) per share**

Basic income (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted income (loss) per share is computed similarly to basic income (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and share units, if dilutive.

The number of additional shares is calculated by assuming that outstanding stock options and share units were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods.

**Revenue recognition**

The Company early adopted the Amendments to *IAS 16 "Property, Plant, and Equipment"* during the year ended December 31, 2021, pursuant to which proceeds from sales occurring before the Las Chispas Mine is operating in the manner intended by management should be recognized in the consolidated statement of income (loss) and comprehensive income (loss), together with the costs of producing those items. The Company measured the costs of production, while the Las Chispas Mine was in commissioning, in accordance with *IAS 2 "Inventories"*. The Las Chispas Mine finished commissioning when commercial production was declared on November 1, 2022.

The Company's primary source of revenue is the sale of refined gold and silver and its performance obligations are the delivery of refined gold and silver to its customers.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**Revenue recognition** (continued)

Revenue from the sale of metal is recognized when the buyer obtains control of the metal. When considering whether the Company has satisfied its performance obligations, it considers the indicators of the transfer of control, which include, but are not limited to, whether: the Company has a present right to payment; the customer has legal title to the metal; the Company has transferred physical possession of the metal to the customer; and, the customer has the significant risks and rewards of ownership of the metal. Revenue is recognized at the time when the risks and rewards of ownership and title transfers to the customer, which is when the Company irrevocably instructs the refinery to deliver the metals to the customer.

The Company sells gold and silver to bullion banks who are members of the London Bullion Market Association. The sales price is fixed on the date of sale based on spot price or by mutual agreement.

**Taxation**

Income tax expense comprises current and deferred income taxes. Current and deferred income taxes are recognized in profit or loss except to the extent that they relate to items recognized directly in equity. Current income tax expense is the expected tax payable on taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

The Company follows the asset and liability method of accounting for income taxes whereby deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted or substantively enacted tax rates and laws expected to apply in the years in which temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in operations in the period of substantive enactment.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is not recorded. Deferred income tax assets and liabilities are presented as non-current in the financial statements.

**Financial instruments**

The Company classifies its financial instruments in the following categories: at fair value through profit and loss ("FVTPL"), at fair value through other comprehensive income (loss) ("FVTOCI"), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company's business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL.

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are recognized in profit or loss for the period.

An 'expected credit loss' impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to the present value of estimated future cash flows associated with the asset, discounted at the financial asset's original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period.

The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statement of income (loss) and comprehensive income (loss).

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**2.** <u>**SIGNIFICANT ACCOUNTING POLICIES** (continued)</u>

**New accounting standards issued but not yet effective**

*Amendments to IAS 1, Presentation of Financial Statements*

In January 2020, the International Accounting Standards Board ("IASB") issued "*Classification of Liabilities as Current or Non-current (Amendments to IAS 1)"*. The amendments clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period. The amendments also clarify the definition of a settlement and provide situations that would be considered as a settlement of a liability. In October 2022, the IASB issued "*Non-current Liabilities with Covenants (Amendments to IAS 1)"*. These further amendments clarify how to address the effects on classification and disclosure of covenants that an entity is required to comply with on or before the reporting date and covenants that an entity must comply with only after the reporting date. The amendments are effective for reporting periods beginning on or after January 1, 2024. The Company has not yet determined the impact that these amendments will have on our consolidated financial statements.

**3.** <u>**CRITICAL JUDGMENTS AND ESTIMATES**</u>

The preparation of these consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amounts and the valuation of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenditures during the year.

These judgments and estimates are continuously evaluated and are based on management's experience and knowledge of the relevant facts and circumstances. Actual results may differ from the estimates. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively. Information about such judgments and estimates is contained in the description of accounting policies (note 2) and/or other notes to the financial statements. Management has made the following critical judgments and estimates:

**Critical judgments in applying accounting policies**

The critical judgments that the Company's management has made in the process of applying the Company's accounting policies, apart from those involving estimations, that have the most significant effect on the amounts recognized in the Company's consolidated financial statements are as follows:

*Assessment of impairment indicators of non-current assets* 

Management assesses whether any indication of impairment exists at the end of each reporting period. Judgment is required in assessing whether certain factors would be considered an indicator of impairment. We consider both internal and external information to determine whether there is an indicator of impairment and, accordingly, whether impairment testing is required. The information we consider in assessing whether there is an indicator of impairment includes, but is not limited to, significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate. No impairment indicators were identified by management as of December 31, 2022.

*Functional currency* 

The functional currency of an entity is the currency of the primary economic environment in which the entity operates. The Company has determined that the functional currency of the parent entity to be C$ and its subsidiaries to be US$. Determination of functional currency may involve certain judgments to determine the primary economic environment, and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determine the primary economic environment.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**3.** <u>**CRITICAL JUDGMENTS AND ESTIMATES** (continued)</u>

**Critical judgments in applying accounting policies** (continued)

*Mineral property, plant, and equipment and determination whether assets are ready for their intended use*

Determining when the Las Chispas Mine, processing plant, and other assets are in the condition necessary to be capable of operating in the manner intended by management is a matter of judgment. The Company has established a framework in the context of *IAS 16 - Property, Plant and Equipment* with respect to determining when the Las Chispas Mine and processing plant are deemed to be capable of operating in the manner intended by management. This framework considers factors such as the physical and technical performance of the asset. For further details on this framework and the factors considered, please refer to Note 2 *"Significant Accounting Policies - Mineral property, plant, and equipment - Mineral property - development phase"*. During 2022, management determined that the Las Chispas Mine had achieved commercial production effective November 1, 2022.

**Key sources of estimation uncertainty**

The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities in the next 12 months are as follows:

*Mineral reserves and the life of mine plan*

The Company estimates its mineral reserves in accordance with the requirements of National Instrument 43-101. Estimates of the quantities of the mineral reserves form the basis for the Company's life of mine plans, which are used for the calculation of depletion expense under the units of production method, impairment tests, and forecasting the timing of the payments related to the environmental reclamation provision.

Significant estimation is involved in determining the reserves and resources included within the Company's life of mine plans. Changes in forecast prices of commodities, exchange rates, production costs, or recovery rates may result in the Company's life of mine plan being revised and such changes could impact depletion rates, asset carrying values, and our environmental reclamation provision.

*Collectability and classification of VAT receivable*

VAT receivable is collectible from the government of Mexico. The collection of VAT is subject to risk due to the complex application and collection process and therefore, risk related to the collectability and timing of payment from the Mexican government. The Company uses its best estimates based on the facts known at the time and its experience to determine its best estimate of the collectability and timing of these recoveries. Changes in the assumptions regarding collectability and the timing of collection could impact the valuation and classification of VAT receivable.

*Impairment of non-current assets* 

Non-current assets are tested for impairment when indicators of impairment are present. Calculating the estimated fair values of cash generating units for non-current asset impairment tests requires management to make estimates and assumptions with respect to future gold and silver prices; future capital cost estimates; operating cost estimates; reductions in the estimated mineral reserves; decreases in estimated production; and, the discount rate. Reductions in metal price forecasts; increases in estimated future costs of production; increases in estimated future non-expansionary capital expenditures; reductions in the amount of recoverable resources, and exploration potential; and/or adverse current economics can result in a write-down of the carrying amounts of the Company's non-current assets.

*Estimate of reclamation and closure cost provision*

The Company's provision for reclamation and closure costs represents management's best estimate of the present value of the future cash outflows required to settle the liability which reflects estimates of future costs, the timing of the cash flows associated with the future costs, inflation, and movements in foreign exchange rates when liabilities are anticipated to be settled in a currency other than US$. Cost estimates can vary in response to many factors including changes to the relevant legal requirements, whether closure plans achieve intended reclamation goals, the emergence of new restoration techniques, or experience at other mine sites, local inflation rates, and foreign exchange rates. The expected timing of expenditures can also change, for example, in response to changes in mineral reserves, production rates, or economic conditions. The Company's assumptions are reviewed at the end of each reporting period and adjusted to reflect management's current best estimate and changes in any of the aforementioned factors can result in a material change to the provision recognized by the Company.

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**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**3.** <u>**CRITICAL JUDGMENTS AND ESTIMATES** (continued)</u>

**Key sources of estimation uncertainty** (continued)

*Inventories*

Stockpiled ore, work-in-process, and finished goods are measured at the lower of weighted average cost or NRV. The assumptions used in the valuation of work-in process inventory include estimates of the amount of gold and silver in the mill circuits and assumptions of the gold and silver prices expected to be realized when the metals are recovered. If these estimates or assumptions prove to be inaccurate, the Company could be required to write-down the recorded value of its work-in-process inventory, which would reduce the Company's earnings.

**4.** <u>**INVENTORIES**</u>

The Company did not have any inventories recorded in 2021. As at the end of 2022, the Company's inventories comprised of the following:

---

| | |
|:---|:---|
|  | **December 31, 2022** |
| Stockpiled ore | $25669 |
| Work-in-process | 4353 |
| Finished goods | 4897 |
| Materials and supplies | 5284 |
| Total inventories | $40203 |

---

During the second quarter of 2022, the Company started commissioning activities of the processing plant which included the processing of stockpiled ore and the production of doré for sale. Accordingly, the Company concluded that the stockpiled ore should be presented as inventory, with an appropriate allocation of costs. Consequently, $13,655 of costs incurred from January 1, 2021 to June 30, 2022, and previously presented within mineral property costs, were reclassified to inventories during the second quarter of 2022.

As at December 31, 2022, $3,747 of depreciation and depletion and $870 of share-based compensation was included in inventories. At December 31, 2022, the Company did not hold any non-current inventories.

During 2022, the Company expensed $13,394 of inventories to cost of sales.

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**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**5.** **MINERAL PROPERTY, PLANT, AND EQUIPMENT**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Property,**<br>**plant and**<br>**equipment** | **Construction**<br>**in progress** | **Mineral**<br>**property<sup>(1)</sup>** | **Exploration**<br>**and evaluation**<br>**assets** | **Total** |
| **Cost** |  |  |  |  |  |
| At December 31, 2020 | $4181 | $28768 | $4312 | $2488 | $39749 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 9553 | 60598 | 57973 |  | 128124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers | 5083 | (5083) |  |  |  |
| At December 31, 2021 | 18817 | 84283 | 62285 | 2488 | 167873 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 22458 | 2257 | 58006 |  | 82721 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers | 83179 | (83179) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers to inventories (note 4) |  |  | (13655) |  | (13655) |
| At December 31, 2022 | $124454 | $3361 | $106636 | $2488 | $236939 |
| **Accumulated depreciation and depletion** |  |  |  |  |  |
| At December 31, 2020 | $(740) | $- | $- | $- | $(740) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion for the year<sup>(2)</sup> | (1447) |  |  |  | (1447) |
| At December 31, 2021 | (2187) |  |  |  | (2187) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion for the year<sup>(2)</sup> | (5118) |  | (1536) |  | (6654) |
| At December 31, 2022 | $(7305) | $- | $(1536) | $- | $(8841) |
| **Carrying amounts** |  |  |  |  |  |
| At December 31, 2021 | $16630 | $84283 | $62285 | $2488 | $165686 |
| At December 31, 2022 | $117149 | $3361 | $105100 | $2488 | $228098 |

---

<sup>(1)</sup> Mineral property relates to the producing Las Chispas Mine.

<sup>(2)</sup> A portion of depreciation is expensed in the consolidated statement of income (loss) and comprehensive income (loss), including $1,856 (2021 - $Nil) recorded to cost of sales during 2022, and the other portion is capitalized as either inventories or mineral property, plant, and equipment. On the declaration of commercial production, the Company began to record depletion which is capitalized to inventories on the consolidated statement of financial position and subsequently expensed as cost of sales in the consolidated statement of income (loss) and comprehensive income (loss).

At the end of May 2022, construction of the Las Chispas processing plant was completed which allowed the Company to start commissioning activities of the processing plant. Commissioning included the processing of stockpiled ore and the production of doré for sale.

**6.** <u>**ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**</u>

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Trade payables | $5612 | $2990 |
| Accrued liabilities | 8954 | 5918 |
| Tax liabilities<sup>(1)</sup> | 5740 | 98 |
| Payroll related liabilities | 728 | 134 |
| Share unit accrued liabilities | 2382 | 1245 |
| Accounts payable and accrued liabilities | $23416 | $10385 |

---

<sup>(1)</sup> During 2022, the Company had its first revenue from operations and determined that it was appropriate to record certain tax liabilities as their likelihood of being realized had increased. The majority of tax liabilities is accrued withholding tax on interest charged on intercompany loan balances.

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**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**7.** <u>**DEBT**</u>

A summary of debt transactions is as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| **Project Financing Facility** |  |  |
| Balance, beginning of year | $87168 | $28967 |
| Drawdown |  | 60000 |
| Transaction costs amortized |  | (2066) |
| Accretion | 3864 | 266 |
| Interest expense | 6523 | 3437 |
| Interest payments | (7555) | (3436) |
| Debt repayment | (90000) |  |
| Balance, end of year | $- | $87168 |
| **Term Facility** |  |  |
| Drawdown | $50000 | $- |
| Transaction costs | (417) |  |
| Accretion | 8 |  |
| Interest expense | 354 |  |
| Interest payments | (354) |  |
| Balance, end of year | $49591 | $- |
| Total debt | $49591 | $87168 |
| Less: current portion | (13393) |  |
| Long-term debt | $36198 | $87168 |

---

**Project Financing Facility**

On December 31, 2020, the Company's subsidiary entered into a secured project financing facility (the "Project Financing Facility") of up to $120,000. All amounts borrowed were due on December 31, 2024. The Company drew $30,000 on December 31, 2020, as required, and made drawdowns of $30,000 on both August 31, 2021 and December 30, 2021. The Company did not draw down the last $30 million and as such reclassified $1,032 of related transaction costs from prepaid expenses and other to mineral property, plant, and equipment as capitalized borrowing costs.

&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;&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; Amounts borrowed under the Project Financing Facility incurred interest at a rate of 6.95% per annum plus the greater of either 3-month LIBOR or 1.5%. During 2022, $7,391 (2021 - $3,703) of borrowing costs incurred prior to the declaration of commercial production was capitalized as mineral property, plant, and equipment and $2,996 (2021 - $Nil) of borrowing costs incurred post declaration of commercial production was expensed in the consolidated statement of income (loss) and comprehensive income (loss).

The Company held a balance of $90,000 under the Project Financing Facility throughout the majority of the year until November 29, 2022, when the Company repaid the total principal of $90,000 and all outstanding accrued interest. As result of the prepayment, the Company incurred and expensed a prepayment fee of 3% on the outstanding balance, totalling $2,748.

**Credit Facility**

On November 29, 2022, the Company refinanced its Project Financing Facility, of which only $90,000 was drawn, with a new $120,000 senior secured credit facility (the "Credit Facility") through a syndicate of two banks. The Credit Facility includes a $50,000 term facility ("Term Facility") and a $70,000 revolving facility ("Revolving Facility"). On closing of the Credit Facility, the Company fully drew the $50,000 Term Facility and used $40,000 of available cash to repay the outstanding $90,000 Project Financing Facility. The Revolving Facility of $70,000 will be available to the Company until November 27, 2026, for general corporate purposes and working capital (funds available to meet current, short-term obligations), subject to customary terms and conditions. As at December 31, 2022, there had been no draws on the Revolving Facility.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**7.** <u>**DEBT** (continued)</u>

**Credit Facility** (continued)

&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;&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; The Term Facility has a 3-year term and repayment is in consecutive equal quarterly instalments of $4,500 commencing June 30, 2023, until the maturity date of November 28, 2025. The Revolving Facility has a 4-year term with a maturity date of November 27, 2026. Both the Term Facility and Revolving Facility bear interest at a rate based initially on an adjusted Term secured overnight financing rate as administered by the Federal Reserve Bank of New York ("SOFR"), plus an applicable margin ranging from 2.50% to 3.75% which Term SOFR margin has been set at 3.00% until June 30, 2023. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.5625% to 0.8428% per annum.

All debts under the Credit Facility are guaranteed by the Company and its subsidiaries and secured by the assets of the Company and NorCrest Metals Inc. (a subsidiary of the Company) and pledges of the securities of the Company's subsidiaries. The Credit Facility includes certain covenants that are calculated and reported each fiscal quarter. As at December 31, 2022, the Company was in compliance with all covenants.

**8.** <u>**RECLAMATION AND CLOSURE PROVISION**</u>

Changes to the reclamation and closure provision related to the Las Chispas Mine were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Balance, beginning of year | $2713 | $- |
| Increase in estimated cash flows resulting from current activities | 2566 | 2713 |
| Changes in estimate | (988) |  |
| Accretion | 243 |  |
| Effect of changes in foreign exchange rates | 56 |  |
| Balance, end of year | $4590 | $2713 |

---

The reclamation and closure cost provision is calculated as the present value of estimated future net cash outflows based on the following key assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The discount rate used in discounting the estimated reclamation and closure cost provision was 8.9% (2021 - 5.5%) during 2022 and is a risk-free rate based on the Bank of Mexico's 10 year bond rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The majority of the expenditures are expected to occur in 2031 and 2032.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● A 1% change in the discount rate would result in an approximately $400 increase or decrease in the provision, while holding other assumptions consistent.

The undiscounted value of the reclamation and closure provision is estimated to be $11,158 (2021 - $4,357) which is calculated using a long-term inflation rate assumption of 4.6% (2021 - 3.0% to 4.5%).

**9.** <u>**REVENUE**</u>

The Company did not have any revenue prior to the third quarter of 2022. During 2022, the Company had revenue of $43,510 from the sale of 11,400 gold ounces and 1.1 million silver ounces from two customers.

---

| | |
|:---|:---|
|  | **2022** |
| Gold | $19726 |
| Silver | 23784 |
| Revenue | $43510 |
| Customer A | 35117 |
| Customer B | 8393 |
| Revenue | $43510 |

---

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**10.** <u>**COST OF SALES**</u>

The Company did not have any cost of sales prior to the third quarter of 2022. Cost of sales were:

---

| | |
|:---|:---|
|  | **2022** |
| Production costs | $12119 |
| Refining and transportation costs | 712 |
| Depletion and depreciation | 1856 |
| Royalties | 208 |
| Site share-based compensation | 195 |
| Cost of sales | $15090 |

---

Production costs by nature of expense were:

---

| | |
|:---|:---|
|  | **2022** |
| Salaries and benefits | $1639 |
| Consultants and contractors | 5006 |
| Utilities and other services | 952 |
| Supplies and consumables | 3482 |
| Maintenance and mechanical | 805 |
| Office and other supplies | 235 |
| Production costs | $12119 |

---

**11.** <u>**GENERAL AND ADMINISTRATIVE EXPENSES**</u>

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| General and administrative | $3396 | $2039 |
| Marketing | 528 | 507 |
| Professional fees | 907 | 1099 |
| Remuneration | 2993 | 2366 |
| General and administrative expenses | $7824 | $6011 |

---

**12.** <u>**EXPLORATION AND EVALUATION EXPENDITURES**</u>

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Assays | $396 | $499 |
| Depreciation | 27 | 10 |
| Drilling | 2459 | 7473 |
| Field and administrative costs | 1119 | 976 |
| Salaries and remuneration | 1045 | 1174 |
| Share-based compensation | 338 | 292 |
| Technical consulting services and studies | 60 | 52 |
| Exploration and evaluation expenditures | $5444 | $10476 |

---

**13.** <u>**INTEREST AND FINANCE EXPENSE**</u>

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Interest expense - debt (note 7) | $3358 | $- |
| Early repayment fees and closing costs - Project Financing Facility (note 7) | 2860 |  |
| Accretion of reclamation and closure provision (note 8) | 243 |  |
| Other financing costs | 128 | 27 |
| Interest and finance expense | $6589 | $27 |

---

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**14.** <u>**RELATED PARTY TRANSACTIONS**</u>

**Professional fees**

During 2022 and 2021, the Company had the following transactions with a law firm of which the Company's Corporate Secretary is a partner.

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Professional fees - expense | $111 | $105 |
| Professional fees - capital stock issuance costs | $- | $250 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Payable to Koffman Kalef LLP | $12 | $6 |

---

**Key management compensation**

The Company's key management personnel have authority and responsibility for planning, directing, and controlling the activities of the Company and include the Company's Chief Executive Officer ("CEO"), President, Chief Financial Officer ("CFO"), Chief Operating Officer ("COO"), and directors. Key management personnel compensation is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Salaries, short-term incentives, management fees, and directors' fees <sup>(1)</sup> | $2891 | $2457 |
| Share-based compensation<sup>(2)</sup> | $2285 | $1882 |
|  | $5176 | $4339 |

---

<sup>(1)</sup> Salaries, short-term incentives, management fees, and directors' fees include remuneration and short-term benefits paid to the President, CFO, COO, and directors. The management fees were paid to a company controlled by the CEO.

<sup>(2)</sup> Share-based compensation includes amounts recorded for stock options and share units. Please see note 15 for further details.

**Other transactions**

● The Company recorded a loan receivable due from an officer of the Company. The loan accrues interest at a rate of 2% per annum and is due December 31, 2023. The loan receivable balance is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Loan receivable<sup>(1)</sup> | $42 | $44 |

---

<sup>(1)</sup> Subsequent to the year ended December 31, 2022, this loan receivable was fully settled.

● The Company has an allocation of costs agreement with Goldsource Mines Inc. ("Goldsource"), a company related by common directors and officers, whereby the Company shares salaries, administrative services, and other expenses. Amounts allocated to Goldsource are due at the end of each fiscal quarter and accrue interest at a rate of 1% per month, if in arrears for greater than 30 days. During 2022 and 2021, the following transactions occurred:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Costs allocated to Goldsource | $66 | $94 |
|  | **December 31, 2022** | **December 31, 2021** |
| Receivable from Goldsource | $19 | $23 |

---

**15.** <u>**CAPITAL STOCK**</u>

**Authorized shares**

The Company's authorized capital stock consists of an unlimited number of common shares and an unlimited number of preferred shares without nominal or par value.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**15.** <u>**CAPITAL STOCK** (continued)</u>

**Issued and outstanding**

As of December 31, 2022, the Company had 147,156,264 common shares and no preferred shares outstanding.

In 2022, the Company issued 1,507,500 common shares at prices ranging from C$1.84 per share to C$8.24 per share for gross proceeds of $2,467 upon the exercise of stock options.

In 2021, the Company completed a prospectus offering of 15,007,500 common shares at a price of US$9.20 per common share for gross proceeds of $138,069. The Company incurred $6,645 of related capital stock issue costs. The Company also issued 1,311,633 common shares at prices ranging from C$1.88 per share to C$8.24 per share for gross proceeds of $2,754 upon the exercise of stock options.

**Stock options**

During 2022, the Company's Board of Directors, shareholders, and the TSX approved a new stock option plan (the "New SOP") and as such it was adopted by the Company replacing the old Stock Option Plan. Like the old Stock Option Plan, the New SOP is a "rolling 5.5%" plan which authorizes the grant of stock options to directors, officers, employees, and consultants, enabling them to acquire common shares of the Company to a maximum of 5.5% of the then issued and outstanding common shares.

A summary of the Company's stock option transactions during the year is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
|  | **Number of** | **Weighted average** | **Number of** | **Weighted average** |
|  | **options** | **exercised price (C$)** | **options** | **exercised price (C$)** |
| Outstanding, beginning of year | 6216700 | $6.37 | 6031500 | $4.55 |
| Granted | 944500 | 8.86 | 1562500 | 10.36 |
| Exercised\* | (1507500) | 2.13 | (1311633) | 2.63 |
| Forfeited | (93250) | 10.66 | (65667) | 8.80 |
| Outstanding, end of year | 5560450 | $7.87 | 6216700 | $6.37 |

---

\*During 2022, the weighted average market value of the Company's shares at the dates of exercise was C$9.14 (2021 - C$11.04).

During 2022, the Company granted 944,500 (2021 - 1,562,500) stock options to certain employees, a consultant, and directors with exercise prices ranging from C$7.31 to C$11.14 (2021 - C$9.79 to C$10.87) and expiring five years from the grant date. 157,000 options granted in 2022 to a consultant vest over a 32-month period with 50% of the options vesting after each of 20 months and 32 months after the grant date, respectively. The remaining options vest over a 3-year period with 1/3 of the options vesting after each of one year, two years, and three years after the grant date, respectively.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**15.** <u>**CAPITAL STOCK** (continued)</u>

**Stock options** (continued)

Stock options outstanding and exercisable as of December 31, 2022 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Options outstanding** | **Options outstanding** | **Options exercisable** |
|  | **Exercise** | **Number of shares** | **Remaining life** | **Number of shares** |
| **Expiry date** | **price (C$)** | **issuable on exercise** | **(years)** | **issuable on exercise** |
| December 14, 2023 | $3.24 | 1235000 | 0.95 | 1235000 |
| May 30, 2024 | $4.54 | 110250 | 1.41 | 110250 |
| September 4, 2024 | $8.21 | 836250 | 1.68 | 836250 |
| December 19, 2024 | $8.24 | 740450 | 1.97 | 740450 |
| September 14, 2025 | $12.53 | 125000 | 2.71 | 83333 |
| November 11, 2025 | $12.63 | 25000 | 2.87 | 16667 |
| December 7, 2025 | $11.22 | 50000 | 2.94 | 33333 |
| February 25, 2026 | $10.87 | 726000 | 3.16 | 242000 |
| July 26, 2026 | $9.97 | 91000 | 3.57 | 30333 |
| August 3, 2026 | $10.80 | 37500 | 3.59 | 12500 |
| December 21, 2026 | $9.79 | 639500 | 3.98 | 213167 |
| April 1, 2027 | $11.14 | 70000 | 4.25 |  |
| May 2, 2027 | $9.69 | 157000 | 4.34 |  |
| July 11, 2027 | $7.31 | 25000 | 4.53 |  |
| December 16, 2027 | $8.50 | 692500 | 4.96 |  |
|  |  | 5560450 |  | 3553283 |

---

The weighted average remaining life of options outstanding is 2.62 years.

**Share-based compensation**

The fair value of options granted during 2022 and 2021 was estimated using the Black-Scholes Option Pricing Model using the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Expected option life (years) | 3.48 | 3.56 |
| Expected volatility | 55.35% | 54.90% |
| Expected dividend yield |  |  |
| Risk-free interest rate | 3.10% | 0.72% |
| Expected forfeiture rate | 1.00% | 1.00% |
| Fair value per option (C$) | $3.72 | $4.12 |
| Total fair value | $2701 | $5137 |

---

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**15.** **CAPITAL STOCK** (continued)

**Share-based compensation** (continued)

A summary of the Company's share-based compensation for options vested during the year, related to options granted between 2019 and 2022, is as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Share-based compensation expense | $1029 | $849 |
| Share-based compensation recorded to inventories | 589 |  |
| Exploration and evaluation expenditures | 277 | 290 |
| Mineral property, plant, and equipment additions | 1048 | 1392 |
| Total share-based compensation on vested options | $2943 | $2531 |
| Share-based compensation expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense - stock options | $1029 | $849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense - deferred share units | 430 | 869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense - restricted share units | 146 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense - performance share units | 261 |  |
| Total, share-based compensation expense | $1866 | $1721 |

---

**Share-based payment reserve**

The share-based payment reserve records items recognized as share-based compensation. At the time that stock options are exercised, the corresponding amount is reallocated to share capital or, if cancelled or expired, the corresponding amount is reallocated to deficit.

A summary of share-based payment reserve transactions is as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Balance, beginning of year | $9782 | $8978 |
| Share-based compensation, stock options | 2943 | 2531 |
| Stock options exercised, reallocated to capital stock | (1608) | (1619) |
| Stock options forfeited, reallocated to deficit | (172) | (108) |
| Balance, end of year | $10945 | $9782 |

---

**DSUs**

A summary of the Company's DSU transactions, shown in number of DSUs, during the year is as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Outstanding, beginning of year | 156500 | 33500 |
| Granted<sup>(1)</sup> | 96000 | 123000 |
| Vested and settled in cash<sup>(</sup><sup>2</sup><sup>)</sup> | (24500) |  |
| Outstanding, end of year | 228000 | 156500 |

---

<sup>(1)</sup> All DSUs were granted to independent directors of the Company.

<sup>(2)</sup> During 2022, 24,500 DSUs settled in cash totalling $218.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**15.** **CAPITAL STOCK** (continued)

**DSUs** (continued)

*Share-based compensation expense and accrued DSU liability*

The following table summarizes the change in the accrued DSU liability:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Outstanding, beginning of year | $1234 | $373 |
| Settlement of DSUs during the year | (218) |  |
| Change in accrued DSU liability<sup>(1)</sup> | 430 | 869 |
| Effect of foreign currency translation | (82) | (8) |
| Outstanding, end of year<sup>(2)</sup> | $1364 | $1234 |

---

<sup>(1)</sup> Change in accrued DSU liability was recorded as share-based compensation expense.

<sup>(2)</sup> As at December 31, 2022, the market value of the Company's common shares was C$8.10 (2021 - C$10.00).

**RSUs**

A summary of the Company's RSU transactions, shown in number of RSUs, during the year is as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Outstanding, beginning of year | 83500 |  |
| Granted<sup>(1)</sup><sup>(</sup><sup>2</sup><sup>)</sup> | 195500 | 83500 |
| Vested and settled in cash | (27002) |  |
| Forfeited | (2500) |  |
| Outstanding, end of year | 249498 | 83500 |

---

<sup>(1)</sup> RSUs were granted to certain employees, consultants, and officers of the Company.

<sup>(2)</sup> During 2022, 13,000 RSUs were granted to a consultant and vest over a 32-month period with 50% of the RSUs vesting after each of 20 months and 32 months after the grant date respectively. The remaining RSUs granted during 2022 vest over a 3-year period with 1/3 of the RSUs vesting after each of one year, two years, and three years after the grant date, respectively.

The following table summarizes the change in the accrued RSU liability:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Outstanding, beginning of year | $11 | $- |
| Settlement of RSUs during the year | (175) |  |
| Liability of forfeited RSUs<sup>(1)</sup> | (6) |  |
| Change in accrued RSU liability<sup>(1)</sup> | 435 | 11 |
| Effect of foreign currency translation | (11) |  |
| Outstanding, end of year<sup>(2)</sup> | $254 | $11 |

---

<sup>(1)</sup> During 2022, the Company recorded net share-based compensation of $429 (2021 - $11), including an expense of $146 (2021 - $3), inventories costs of $115 (2021 - $Nil), exploration and evaluation expenditures of $38 (2021 - $2), and mineral property, plant, and equipment of $130 (2021 - $6).

<sup>(2)</sup> As at December 31, 2022, the market value of the Company's common shares was C$8.10 (2021 - C$10.00).

**PSUs**

During 2022, the Company issued 173,750 (2021 - Nil) PSUs to executive officers of the Company, with 82,500 PSUs being in relation to the completion of construction of the Las Chispas Mine, to vest on June 1, 2023. The remaining 91,250 PSUs were granted as part of executive officers long-term incentive plans and the performance and vesting conditions of these PSUs is to be determined by the Board of Directors.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**15.** <u>**CAPITAL STOCK** (continued)</u>

**PSUs** (continued)

The following table summarizes the change in the accrued PSU liability:

---

| | |
|:---|:---|
|  | **2022** |
| Outstanding, beginning of year | $- |
| Share-based compensation for PSUs<sup>(1)</sup> | 795 |
| Effect of foreign currency translation | (31) |
| Outstanding, end of year<sup>(2)</sup> | $764 |

---

<sup>(1)</sup> During 2022, the Company recorded share-based compensation of $795, including an expense of $261, inventories costs of $383, exploration and evaluation expenditures of $22 and mineral property, plant, and equipment of $129.

<sup>(2)</sup> As at December 31, 2022, the market value of the Company's common shares was C$8.10.

**16.** <u>**INCOME TAXES**</u>

The income taxes recognized in income (loss) and comprehensive income (loss) are as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Current tax expense | $5682 | $384 |
| Deferred tax expense | 382 |  |
| Total income tax expense | $6064 | $384 |

---

The provision for income taxes reported differs from the amounts computed by applying statutory tax rates to the income (loss) before income taxes due to the following:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Income (loss) for the year before income taxes | $37365 | $(22380) |
| Statutory tax rate | 27% | 27% |
| Recovery of income taxes computed at statutory rates | 10089 | (6043) |
| Share based payments | 940 | 921 |
| Mexican inflationary adjustments | (5116) | 1642 |
| Differing effective tax rate on loss in foreign jurisdiction | (567) | (955) |
| Impact of share issuance costs |  | (1794) |
|  Unrecognized deferred tax assets | (3624) | 1600 |
| Impact of foreign exchange and other | 4342 | 5013 |
| Total income tax expense | $6064 | $384 |

---

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**16.** <u>**INCOME TAXES** (continued)</u>

The approximate tax effect of each item that gives rise to the Company's recognized deferred tax assets and liabilities as at December 31, 2022 and 2021 is as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Deferred income tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exploration and evaluation assets | $46129 | $34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-capital losses | 7412 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing fees | 1937 | 858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Withholding tax | 2535 |  |
|  | 58013 | 932 |
| Deferred income tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mineral property, plant, and equipment | (54057) | (496) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt | (4217) | (436) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (121) |  |
|  | (58395) | (932) |
| Net deferred income tax liability | $(382) | $- |

---

The Company's movement of net deferred tax liabilities is described below:

---

| | |
|:---|:---|
|  | **December 31, 2022** |
| Deferred income tax expense and liability | (382) |

---

The approximate tax effect of each item that gives rise to the Company's unrecognized deferred tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Non-capital losses | $15084 | $18786 |
| Mineral property, plant and equipment | 50 | 15638 |
| Financing fees |  | 2585 |
| Reclamation and closure provision | 1377 |  |
| Withholding tax | 437 |  |
| Other | 1502 | 1384 |
| Unrecognized deferred tax assets | (18450) | (38393) |
| Total | $- | $- |

---

The Company has the following deductible temporary differences for which no deferred tax assets have been recognized:

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Expiry Dates** | **December 31, 2022** | **December 31, 2021** |
| Non-capital losses | &nbsp;&nbsp;2027-2042 | $50280 | $62681 |
| Mineral property, plant and equipment | &nbsp;&nbsp;No Expiry | 168 | 52126 |
| Financing fees | &nbsp;&nbsp;2043-2047 |  | 9574 |
| Reclamation and closure provision | &nbsp;&nbsp;No Expiry | 4590 |  |
| Withholding tax | &nbsp;&nbsp;No Expiry | 437 |  |
| Other | &nbsp;&nbsp;No Expiry | 5007 | 9756 |
| Total |  | $60482 | $134137 |

---

At December 31, 2022, the Company had non-capital loss carry forwards of approximately $4,188 (2021 - $618), which expire between 2040 and 2042, available to offset future taxable income in Canada. The Company also had non-capital loss carry forwards of approximately $71,045 (2021 - $62,173), which expire between 2027 and 2032, available to offset future taxable income in Mexico.

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**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**17.** <u>**SEGMENTED INFORMATION**</u>

During 2022 and 2021, the Company had two operating segments: the Las Chispas Mine and El Picacho Property ("Picacho"), which is in the exploration phase. Corporate includes the corporate team that provides administrative, technical, financial, and other support to the Company's business units.

Significant information relating to the Company's reportable operating segments during 2022 and 2021 is summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Las Chispas** | **Picacho** | **Corporate** | **Total** |
| Revenue for 2022 | $43510 | $- | $- | $43510 |
| Income (loss) for 2022 | $27411 | $(5322) | $9212 | $31301 |
| Capital additions during 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mineral property | $44351 | $- | $- | $44351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plant and equipment | 24715 |  |  | 24715 |
| Total capital additions | $69066 | $- | $- | $69066 |
| Loss for 2021 | $- | $(10411) | $(12353) | $(22764) |
| Capital additions during 2021 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mineral property | $57973 | $- | $- | $57973 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plant and equipment | 70151 |  |  | 70151 |
| Total capital additions | $128124 | $- | $- | $128124 |
|  | **Las Chispas** | **Picacho** | **Corporate** | **Total** |
| As at December 31, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $283358 | $2489 | $69502 | $355349 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $64952 | $269 | $13134 | $78355 |
| As at December 31, 2021 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $181318 | $2489 | $185170 | $368977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $95716 | $1248 | $3743 | $100707 |

---

**18.** <u>**FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS**</u>

The Company is exposed to various financial instrument risks and assesses the impact and likelihood of this exposure. These risks include liquidity, foreign currency, credit, commodity price, and interest rate risks. Where material, these risks are reviewed and monitored by the Board of Directors.

**Liquidity risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company's cash and cash equivalents are invested in business accounts with quality financial institutions and are available on demand to fund the Company's operations.

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**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**18.** <u>**FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS** (continued)</u>

**Liquidity risk** (continued)

The Company enters into contracts that give rise to commitments in the normal course of business. The following table summarizes the remaining contractual cash flows of the Company's financial liabilities and operating and capital commitments, shown in contractual undiscounted cash flows, at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less than**<br>**1 year** | **Between**<br>**1 - 3 years** | **Between**<br>**4 - 5 years** | **After 5 years** | **Total** |
| Accounts payable and accrued liabilities | $23416 | $- | $- | $- | $23416 |
| Lease liabilities | 120 | 137 | 110 | 115 | 482 |
| Credit facility<sup>(1)</sup> | 16881 | 39683 |  |  | 56564 |
| Reclamation and closure provision<sup>(2)</sup> |  |  |  | 11158 | 11158 |
| TOTAL | $40417 | $39820 | $110 | $11273 | $91620 |

---

<sup>(1)</sup> Debt interest payments calculated based on interest rate in effect on December 31, 2022. Interest rate may vary (note 7).

<sup>(2)</sup> Estimated undiscounted cash flows.

The Company believes its cash and cash equivalents at December 31, 2022 of $50,761 and continuing revenue and profitable operations are sufficient to settle its commitments through the next 12 months.

**Foreign currency risk**

The Company operates in Canada and Mexico and is exposed to foreign exchange risk arising from transactions denominated in foreign currencies. The operating results and the financial position of the Company are reported in US$. The functional currency of the parent entity is C$and therefore the Company is exposed to foreign currency risk from financial instruments denominated in currencies other than C$. The functional currency of the Company's subsidiaries is US$and therefore the Company's subsidiaries are exposed to foreign currency risk from financial instruments denominated in currencies other than US$.

The Company is exposed to foreign currency risk through the following financial assets and liabilities, expressed in US$:

---

| | | | |
|:---|:---|:---|:---|
|  | **US Dollar** | **Mexican Peso** | **Total** |
| &nbsp;&nbsp;**December 31, 2022** |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $29502 | $318 | $29820 |
| &nbsp;&nbsp;Accounts receivable | 111 | 8 | 119 |
| &nbsp;&nbsp;Value-added taxes receivable |  | 31378 | 31378 |
| &nbsp;&nbsp;Total financial assets | 29613 | 31704 | 61317 |
| &nbsp;&nbsp;Less: accounts payable and accrued liabilities | (428) | (3010) | (3438) |
| &nbsp;&nbsp;Less: debt | (49591) |  | (49591) |
| &nbsp;&nbsp;**Net financial assets (liabilities)** | $(20406) | $28694 | $8288 |

---

The Company is primarily exposed to fluctuations in the value of C$against US$and US$against Mexican pesos ("MX$"). With all other variables held constant, a 1% change in C$against US$or US$against MX$would result in the following impact on the Company's net income for the year:

---

| | |
|:---|:---|
|  | **December 31, 2022** |
| C$/US$exchange rate - increase/decrease 1% | $204 |
| US$/MX$exchange rate - increase/decrease 1% | $287 |

---

**Credit risk** 

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and accounts receivable.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**18.** <u>**FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS** (continued)</u>

**Credit risk** (continued)

The Company limits exposure to credit risk on liquid financial assets through maintaining its cash and cash equivalents with high-credit quality financial institutions. At December 31, 2022, the accounts receivable balance of $179 (2021 - $88) consisted of $60 (2021 - $67) due from related parties (note 14) and interest receivable of $111 (2021 - $20) on short-term interest bearing instruments. The Company has not recognized any expected credit losses with respect to interest receivable as the amounts are due from high-credit quality financial institutions and the risk of default is considered negligible. The carrying amount of financial assets, as stated in the consolidated statement of financial position, represents the Company's maximum credit exposure.

**Interest rate risk**

Interest rate risk is the risk that the fair values or future cash flows of the Company's financial instruments will fluctuate because of changes in market interest rates. The Company's exposure to interest rate risk arises primarily from the interest rate impact on its cash and cash equivalents and debt. The Company's cash and cash equivalents are held or invested in highly liquid accounts with both floating and fixed rates of interest, in order to achieve a satisfactory return for shareholders.

At December 31, 2022, the weighted average interest rate earned on the Company's cash and cash equivalents was 4.60%. With all other variables unchanged, a one percentage point change in interest rates would result in approximately a $383 increase/decrease in the Company's income and comprehensive income for the year.

The Company's debt has an interest rate of the adjusted SOFR plus an additional term interest rate margin ranging from 2.50% to 3.75%. The term interest rate margin is set at 3.00% until June 30, 2023 after which point it may vary. At December 31, 2022, adjusted SOFR was 4.40% and the term interest rate margin was 3.00% for a total interest rate of 7.40% and a one percentage point increase in interest rates would result in a $44 increase in interest for the year.

**Financial instruments carrying value and fair value**

The Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and debt.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. The level of measurement for each financial instrument is determined by the lowest level of significant inputs.

------

**SILVERCREST METALS INC.** <br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**<br> **(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022**<br>

**18.**FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS** (continued)**

**Financial instruments carrying value and fair value** (continued)

The carrying value of accounts receivable and accounts payable and accrued liabilities (except as noted) approximate their fair values due to the short-term nature of these instruments. In relation to the Company's SU plan (note 15), the Company recorded the fair value of SUs in accounts payable and accrued liabilities. The Company's accounts payable and accrued liabilities related to SUs are measured using level 2 inputs. The carrying value of debt approximates its fair value as a result the debts variable interest rates that float in line with market interest rates.

The following table summarizes the carrying value and fair value, by level, of the Company's financial instruments. It does not include fair value information for financial instruments not measured at fair value if the carrying amount reasonably approximates the fair value because of their short-term nature.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Carrying value** | **Carrying value** | **Fair value** | **Fair value** | **Fair value** |
|  | **Fair value through** |  |  |  |  |
|  | **profit and loss** | **Amortized cost** | **Level 1** | **Level 2** | **Level 3** |
| **December 31, 2022** |  |  |  |  |  |
| **Financial assets** |  |  |  |  |  |
| Accounts receivable | $- | $179 | $- | $- | $- |
| **Financial liabilities** |  |  |  |  |  |
| Accounts payable and accrued liabilities | (2382) | (21034) |  | (2382) |  |
| Debt |  | (49591) |  |  | (49591) |
| Net financial instruments | $(2382) | $(70446) | $- | $(2382) | $(49591) |
| **December 31, 2021** |  |  |  |  |  |
| **Financial assets** |  |  |  |  |  |
| Accounts receivable | $- | $88 | $- | $- | $- |
| **Financial liabilities** |  |  |  |  |  |
| Accounts payable and accrued liabilities | (1245) | (9140) |  | (1245) |  |
| Debt |  | (87168) |  |  | (87168) |
| Net financial instruments | $(1245) | $(96220) | $- | $(1245) | $(87168) |

---

**19.** <u>**MANAGEMENT OF CAPITAL**</u>

The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern in order to support the exploration and evaluation and operation of its mineral properties. The capital of the Company consists of items included in shareholders' equity. The Company manages and adjusts its capital structure when changes to the risk characteristics of the underlying assets or changes in economic conditions occur. To maintain or adjust the capital structure, the Company may attempt to raise new funds.

In order to facilitate the management of its capital requirements, the Company prepares annual revenue and expenditure budgets which are revised periodically based on the results of the progress and results of its mine operation, its exploration programs, the availability of financing, and industry conditions. There are no external restrictions on the Company's expenditures other than the Company may not spend proceeds from draws on its Revolving Facility (no draws made as of December 31, 2022) on expenditures other than general corporate purposes or working capital.

The Company's liquidity management policy is to invest any excess cash in liquid short-term interest-bearing instruments, refined precious metal bullion and certain other instruments with low-risk. When utilized, these instruments are selected with regard to the expected timing of expenditures from continuing operations. With its cash and cash equivalents balance and continuing revenue, the Company expects to have sufficient funds to meet its planned administrative overhead expenses and exploration and production plans for 2023.

**20.** **SUBSEQUENT EVENTS**

Subsequent to December 31, 2022, the Company made a prepayment of $15,000 towards the Term Facility, reducing debt outstanding to $35,000.

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## Exhibit 99.3

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![](exhibit99-3x001.jpg)

**MANAGEMENT'S DISCUSSION & ANALYSIS**

**DECEMBER 31, 2022**

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

---

This Management's Discussion and Analysis ("MD&A") is an overview of all material information about SilverCrest Metals Inc.'s (the "Company" or "SilverCrest") operations, liquidity, and capital resources for the three months and year ended December 31, 2022. The MD&A should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2022 and 2021, and the related notes contained therein which have been prepared under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Additional information relating to the Company, including the Company's Annual Information Form for the year ended December 31, 2022 (the "AIF"), is available on SEDAR at <u>www.sedar.com</u>, EDGAR at <u>www.sec.gov</u>, and on the Company's website <u>www.silvercrestmetals.com</u>. Readers are cautioned that, unless included in this MD&A, information on the Company's website does not form part of this MD&A.

All amounts are stated in United States dollars ("US$"), and tabular amounts are stated in thousands of United States dollars except for per share amounts, unless otherwise indicated. References to "C$" are to the Canadian dollar and "MX$" are to the Mexican peso. Certain amounts shown in this MD&A may not add exactly to total amounts due to rounding differences. The first, second, third, and fourth quarters of the Company's fiscal years ("FY") are referred to as "Q1", "Q2", "Q3", and "Q4", respectively, and the first and second half of the Company's fiscal years are referred to as "H1" and "H2", respectively. The following are other abbreviations used throughout this MD&A: Au (gold), Ag (silver), oz (ounces), koz (kilo-ounces), gpt (grams per tonne), kt (kilotonne), km (kilometres), tpd (tonnes per day), LTIFR (lost time injury frequency rate – based on lost time injuries multiplied by 200,000 hours divided by total working hours), and TRIFR (total recordable injury frequency rate – based on total recordable injuries multiplied by 200,000 hours divided by total working hours), TCFD (Task Force on Climate-Related Financial Disclosure), and ESG (environmental, social, and governance).

The effective date of this MD&A is March 10, 2023.

<u>**QUALIFIED PERSON**</u>

Technical information contained in this MD&A has been prepared by or under the supervision of N. Eric Fier, CPG, P.Eng., and Chief Executive Officer of the Company, who is a 'Qualified Person' for the purpose of National Instrument 43-101 - *Standards of Disclosure for Mineral Projects* ("NI 43-101").

<u>**CAUTIONARY NOTE TO US INVESTORS**</u>

This MD&A includes Mineral Resource and Reserve classification terms that comply with reporting standards in Canada and the Mineral Resource and Reserve estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to domestic United States reporting companies. Consequently, Mineral Resource and Reserve information included in this MD&A may not be comparable to similar information that would generally be disclosed by United States domestic reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with US standards.

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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<u>**FORWARD-LOOKING STATEMENTS**</u>

This MD&A contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including gold and silver production and planned work programs. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; the impact of the COVID-19 pandemic on operations, future financings, the Company's share price and on the timing and completion of exploration programs, technical reports and studies; the productivity and timing of mine operation activities ; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting; and the development and advancement of the Company's environmental, social, and corporate governance strategy.

Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; estimates of mineral resources and metallurgical recoveries; and mining operational and development risks. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: the impact of the Ukraine-Russia conflict on supply chains and pricing and the availability of commodities; the timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company's share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of mineral resource estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; precious metals price fluctuations; fluctuations in the foreign exchange rate (particularly MX$, C$, and US$); risks associated with taxation in multiple jurisdictions; uncertainty in the Company's ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; risks associated with the Credit Facility (defined below); uncertainty as to whether the Company's exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company's expectations; risks and uncertainties related to the timing of mine operation activities; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims, and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.

The Company's forward-looking statements are based on beliefs, expectations, and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events, or results to differ from those described in forward-looking statements, there may be factors that cause actions, events, or results not to be as anticipated, estimated, or intended. The Company undertakes no obligation to update or revise any forward-looking statements included in this MD&A if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| [1.](#page_5) | [DESCRIPTION OF BUSINESS](#page_5) | [5](#page_5) |
| [2.](#page_5) | [HIGHLIGHTS](#page_5) | [5](#page_5) |
| [3.](#page_6) | [DISCUSSION OF LAS CHISPAS OPERATIONS](#page_6) | [6](#page_6) |
| [4.](#page_7) | [ENVIRONMENTAL, SOCIAL, AND GOVERNANCE](#page_7) | [7](#page_7) |
| [5.](#page_8) | [EXPLORATION](#page_8) | [8](#page_8) |
| [6.](#page_9) | [SELECTED ANNUAL FINANCIAL INFORMATION](#page_9) | [9](#page_9) |
| [7.](#page_9) | [SUMMARY OF QUARTERLY RESULTS](#page_9) | [9](#page_9) |
| [8.](#page_11) | [RESULTS OF OPERATIONS](#page_11) | [11](#page_11) |
| [9.](#page_12) | [LIQUIDITY AND CAPITAL RESOURCES OUTLOOK](#page_12) | [12](#page_12) |
| [10.](#page_13) | [USE OF PROCEEDS](#page_13) | [13](#page_13) |
| [11.](#page_14) | [FINANCIAL INSTRUMENTS AND RISK MANAGEMENT](#page_14) | [14](#page_14) |
| [12.](#page_14) | [RELATED PARTY TRANSACTIONS](#page_14) | [14](#page_14) |
| [13.](#page_16) | [OUTSTANDING SHARE CAPITAL](#page_16) | [16](#page_16) |
| [14.](#page_16) | [OFF-BALANCE SHEET ARRANGEMENTS](#page_16) | [16](#page_16) |
| [15.](#page_16) | [CHANGES IN ACCOUNTING POLICIES AND OTHER CHANGES](#page_16) | [16](#page_16) |
| [16.](#page_16) | [TRENDS AND RISK FACTORS](#page_16) | [16](#page_16) |
| [17.](#page_18) | [CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS](#page_18) | [18](#page_18) |
| [18.](#page_20) | [NON-IFRS FINANCIAL MEASURES](#page_20) | [20](#page_20) |
| [19.](#page_20) | [DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING](#page_20) | [20](#page_20) |

---

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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<u>**1.**</u> <u>**DESCRIPTION OF BUSINESS**</u>

SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC, with an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas. The Company's principal focus is operating its Las Chispas Mine ("Las Chispas" or the "Las Chispas Mine" or the "Las Chispas Project"), in Sonora, Mexico.

The Company has a portfolio of four other mineral exploration properties in Sonora, Mexico. Further information regarding the businesses of SilverCrest, its operations and its mineral properties can be found in the most recent AIF and on the Company's website, <u>www.silvercrestmetals.com</u>.

<u>**2.**</u> <u>**HIGHLIGHTS**</u>

**Q4, 2022 - Operational Highlights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● After commissioning the Las Chispas processing plant for five months, the Company declared commercial production, effective November 1, 2022. Declaration of commercial production was based on achieving a continuous two-month period operating the processing plant at a minimum of 80% capacity for its name plate design of 1,250 tonnes per day ("tpd") (or 1,000 tpd) and showing a combined Au and Ag recovery of greater than 85%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Recovered metal was 11.9 koz of Au (96.9% recovery) and 1.2 million oz of Ag (93.3% recovery), or 2.2 million oz of AgEq (95.0% recovery).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Powerline was fully completed in November 2022 and the Las Chispas Mine is now energized by national grid power with improved stability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Underground mining averaged 700 tpd, which was below the 2021 Feasibility Study<sup>1</sup> forecast of 750 tpd, but was in line with the revised forecast of 600 to 700 tpd (see news release dated September 14, 2022).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Processing plant operating metrics exceeded the 2021 Feasibility Study for tonnage milled, plant availability, and metallurgical recoveries with December 2022 average throughput of 1,318 tpd at 95.5% availability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● At the end of 2022, the ore stockpiles were estimated at 261 kt, which was below the 2021 Feasibility Study estimate of 311 kt due to a combination of higher processing rates and lower mining rates than planned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Stockpiles built prior to the construction decision being made at the end of 2021 were previously expensed (as per the Company's exploration and evaluation policy) and, as a result, the stockpiles carry a lower carried cost. It is expected that stockpiles will continue to represent a notable component of process plant feed through 2024, which will support financial de-risking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● An updated technical report ("Updated Technical Report") remains on schedule for Q2, 2023 and will form the basis for updated life of mine cost and production guidance. The 2021 Feasibility Study was based on Q3, 2020 costs which have been impacted by inflation and may also be impacted by changes to the mine plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Notable improvement in the Company's 2022 LTIFR to 0.42 from 0.63 in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Local community-based multi-year projects have advanced with a focus on water and sewage infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Released TCFD and Water Stewardship Reports. Inaugural ESG sustainability report to follow in 2023.

**Q4, 2022 - Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Generated revenue of $40.8 million (Q4, 2021 - $Nil) from the sale of 11.4 koz Au and 1.1 million oz Ag.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Generated mine operating income of $26.5 million (Q4, 2021 - $Nil) after recording cost of sales of $14.3 million (Q4, 2021 - $Nil). The operational cost structure of the Las Chispas Mine is in the process of being stabilized after the achievement of commercial production on November 1, 2022. The Updated Technical Report will provide estimates for steady-state operating costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Generated income of $5.2 million (Q4, 2021 - loss of $7.9 million) and basic earnings per share were $0.03 (Q4, 2021 - loss of $0.06 per share).

<sup>___________________________________________<br>1</sup> NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project dated January 4, 2021 (the "2021 Feasibility Study").

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Financial position remained strong with debt refinancing completed at a lower rate and a reduction of debt outstanding by $40.0 million. Exited 2022 with a cash balance of $50.8 million and Credit Facility balance of $50.0 million plus $70.0 million undrawn Revolving Facility (defined below).

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| | | | |
|:---|:---|:---|:---|
| **OPERATIONAL** |  |  |  |
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Q4, 2022<sup>(1)</sup>** | &nbsp;&nbsp;**FY 2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;Ore mined | &nbsp;&nbsp;kt | &nbsp;&nbsp;65 | &nbsp;&nbsp;201 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ore milled<sup>(2)</sup> | &nbsp;&nbsp;kt | &nbsp;&nbsp;104 | &nbsp;&nbsp;188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Underground development | &nbsp;&nbsp;km | &nbsp;&nbsp;2.3 | &nbsp;&nbsp;8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Gold ("Au")** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovered | &nbsp;&nbsp;koz | &nbsp;&nbsp;11.9 | &nbsp;&nbsp;17.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average grade | &nbsp;&nbsp;gpt | &nbsp;&nbsp;3.67 | &nbsp;&nbsp;3.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;96.9% | &nbsp;&nbsp;96.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sold | &nbsp;&nbsp;koz | &nbsp;&nbsp;11.4 | &nbsp;&nbsp;11.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Silver ("Ag")** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovered | &nbsp;&nbsp;million oz | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average grade | &nbsp;&nbsp;gpt | &nbsp;&nbsp;382 | &nbsp;&nbsp;312 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;93.3% | &nbsp;&nbsp;92.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sold | &nbsp;&nbsp;million oz | &nbsp;&nbsp;1.0 | &nbsp;&nbsp;1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Silver equivalent ("AgEq")<sup>(3)</sup>** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovered | &nbsp;&nbsp;million oz | &nbsp;&nbsp;2.2 | &nbsp;&nbsp;3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average grade | &nbsp;&nbsp;gpt | &nbsp;&nbsp;701 | &nbsp;&nbsp;577 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovery | &nbsp;&nbsp;% | &nbsp;&nbsp;95.0% | &nbsp;&nbsp;94.4% |
| **FINANCIAL** |  |  |  |
|  | &nbsp;&nbsp;**Unit** | &nbsp;&nbsp;**Q4, 2022** | &nbsp;&nbsp;**FY 2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue | &nbsp;&nbsp;$ millions | &nbsp;&nbsp;40.8 | &nbsp;&nbsp;43.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | &nbsp;&nbsp;$ millions | &nbsp;&nbsp;(14.3) | &nbsp;&nbsp;(15.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mine operating income | &nbsp;&nbsp;$ millions | &nbsp;&nbsp;26.5 | &nbsp;&nbsp;28.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income for the period | &nbsp;&nbsp;$ millions | &nbsp;&nbsp;5.2 | &nbsp;&nbsp;31.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income per share - basic | &nbsp;&nbsp;$/share | &nbsp;&nbsp;0.03 | &nbsp;&nbsp;0.21 |
|  | &nbsp;&nbsp;**Units** |  | &nbsp;&nbsp;**December 31, 2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | &nbsp;&nbsp;$ millions |  | &nbsp;&nbsp;50.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Facility Debt | &nbsp;&nbsp;$ millions |  | &nbsp;&nbsp;(50.0) |
| &nbsp;&nbsp;<sup>(1)</sup> During Q4, 2022, the Company declared commercial production effective November 1, 2022. | &nbsp;&nbsp;<sup>(1)</sup> During Q4, 2022, the Company declared commercial production effective November 1, 2022. | &nbsp;&nbsp;<sup>(1)</sup> During Q4, 2022, the Company declared commercial production effective November 1, 2022. | &nbsp;&nbsp;<sup>(1)</sup> During Q4, 2022, the Company declared commercial production effective November 1, 2022. |
| &nbsp;&nbsp;<sup>(2)</sup> Ore milled includes material from stockpiles and ore mined. | &nbsp;&nbsp;<sup>(2)</sup> Ore milled includes material from stockpiles and ore mined. | &nbsp;&nbsp;<sup>(2)</sup> Ore milled includes material from stockpiles and ore mined. | &nbsp;&nbsp;<sup>(2)</sup> Ore milled includes material from stockpiles and ore mined. |
| &nbsp;&nbsp;<sup>(3)</sup> AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1. | &nbsp;&nbsp;<sup>(3)</sup> AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1. | &nbsp;&nbsp;<sup>(3)</sup> AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1. | &nbsp;&nbsp;<sup>(3)</sup> AgEq is based on the 2021 Feasibility Study Mineral Resource and Reserve gold to silver ratio of 86.9:1. |

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**Subsequent Event**

&nbsp;&nbsp;&nbsp;&nbsp;● The Company made a prepayment of $15.0 million towards the Term Facility, reducing debt outstanding to $35.0 million.

<u>**3.**</u> <u>**DISCUSSION OF LAS CHISPAS OPERATIONS**</u>

**Processing Plant** 

In late May 2022, the Company completed construction at Las Chispas on time and under budget and commenced commissioning. Since commissioning, the Las Chispas processing plant has performed in-line or ahead of the 2021 Feasibility Study expectations on operating metrics. The Company declared commercial production, effective November 1, 2022. Declaration of commercial production was based on achieving a continuous two-month period operating the processing plant at a minimum of 80% capacity for its name plate design of 1,250 tpd (or 1,000 tpd) and showing a combined Au and Ag recovery of greater than 85%. For further details on the declaration of commercial production, please refer to the Company's news release dated November 7, 2022.

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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During 2022, approximately 188 kt of ore were processed at a grade of 3.05 gpt Au and 312 gpt Ag, or 577 gpt AgEq, compared to the 2021 Feasibility Study plan of 2.53 gpt Au and 254 gpt Ag, or 474 gpt AgEq. Metallurgical recoveries in 2022 were 96.5% for Au and 92.5% for Ag, or 94.4% AgEq.

In 2022, recovered metal totaled 17.8 koz Au and 1.7 million oz Ag, or 3.3 million oz AgEq which compared to the 2021 Feasibility Study of 12.2 koz Au and 1.2 million oz Ag, or 2.3 million oz AgEq. A total of 15.0 koz Au and 1.4 million oz Ag, or 2.8 million oz AgEq have been produced in 2022, which compares to the 2021 Feasibility Study plan of 10.4 koz Au and 1.0 million oz Ag, or 1.9 million oz AgEq. The variance between metal recovered and produced relates to metal inventory both in the plant and refinery and is largely a function of the plant ramp-up.

**Underground Mining**

In 2022, an additional 8.0 km of underground development was completed at the Las Chispas Mine. The average mining rate for Q4, 2022 was 700 tpd, which was below the 2021 Feasibility Study estimate of 750 tpd, but was in line with the Company's revised guidance of 600 to 700 tpd (see news release dated September 14, 2022).

A total of an estimated 201 kt of ore were mined from development and stoping activities in 2022, which was below the 2021 Feasibility Study projection of an estimated 214 kt. The variance was a result of lower productivity in resue mining stopes due to safety concerns and narrower vein widths in some areas. Long hole mining has progressed well and has achieved production and dilution rates as set out in the 2021 Feasibility Study.

In H1, 2023, it is expected that underground mining rates will be in the range of 650 to 700 tpd as the Company continues to work with the contractor to ramp-up the mine and outline the appropriate ramp-up through to 2025 for inclusion in the Updated Technical Report. Underground mining will be focused on capital development which was slightly behind schedule in 2022 due to availability of equipment and labour. Work is underway to rectify these challenges, but it is expected that a readjustment of the mobile fleet will be required with the decrease in resue mining. Grade reconciliation work is advancing internally and will also be included in the Updated Technical Report.

**Updated Technical Report**

SilverCrest continues to advance the work required to complete the Updated Technical Report in Q2, 2023. This report will incorporate updated Mineral Resources and Reserves, updated metallurgical results, mine to plant reconciliation (mine, stockpile and plant) including comparison to the 2021 Feasibility Study Mineral Resource estimate, a revised mine plan, and updated operating and sustaining costs arising from any potential changes to the mine plan and the impact of inflation from the Q3, 2020 cost base used in the 2021 Feasibility Study.

**Drill Program**

During 2022, the Company completed approximately 71.0 km (300 drill holes) of drilling at Las Chispas.

Las Chispas drilling in 2022 has continued to support the transition to production through further infill and delineation drilling. Drilling results received by the end of July 2022 will be included in the measured and indicated resource estimation in the Updated Technical Report.

The H1, 2023 exploration focus at Las Chispas is to continue to support operations, map and sample unexplored areas, generate new targets, and continue expansion drilling along existing open veins and drill the targets previously generated for future reserve consideration and replacement of extracted ore.

<u>**4.**</u> <u>**ENVIRONMENTAL, SOCIAL, AND GOVERNANCE**</u>

SilverCrest is committed to conducting business in a socially and environmentally responsible manner and meeting or surpassing regulatory requirements in all its exploration, development, mining and closure activities. SilverCrest's commitment not only stems from the Company's acknowledgement of the significant impacts that extractive mining activities can have on both host communities and the local environment, but also the changing risk landscape that requires the Company to adapt to emerging threats to protect employees, contractors, suppliers, communities and all other stakeholders as well as the environment and all corporate assets.

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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In 2022, the Company publicly disclosed its inaugural TCFD report and formalized its commitment to managing water stress in the region through its inaugural Water Stewardship Report. The report outlines a five-year plan to invest in improving water resilience for local communities.

**Environmental**

In 2022, the Company had no significant environmental incidents at its properties.

During 2022, SilverCrest engaged third party consultants to conduct an ESG data gap analysis. This was the first step in the process of creating an ESG data tracking and management system (including Scope 1 and 2 GHG emissions) to aid future target setting and reporting. The gap analysis was conducted in alignment with the Sustainability Accounting Standards Board recommended disclosure metric definitions and identified data gaps in SilverCrest's ESG data tracking systems. This data gap analysis identified gaps in metrics tracked and established a disclosure baseline in advance of our first sustainability report to follow in 2023.

**Social**

Safety has remained a top priority at SilverCrest. In 2022, a total of 2.4 million work-hours were completed at Las Chispas. At the end of 2022, the Company's LTIFR stood at 0.42 (2021 - 0.63) and its TRIFR stood at 3.58 (2021 - 4.11). The Company follows the guidance of, and defines incidents according to, certain agencies of the U.S. Department of Labor's Mine Safety and Health Administration such as the Occupational Safety and Health Administration ("OSHA") and the Mine Safety and Health Administration. The LTIFR and TRIFR are based on the guidance and definitions of the OSHA and working hours include that of both employees and contractors. As of the date of this MD&A, the Company had no work-related fatalities including employees and contractors at all properties.

At the end of 2022, the Company and its subsidiaries had an aggregate of approximately 25 full-time personnel based in Canada and an estimated 350 unionized and non-unionized employees based in Sonora, Mexico with, 99% from Mexico, and more specifically, 90% from Sonora. The Company engaged more than 50 local businesses, and finalized construction of the assay lab which is located in the nearby (14 km) community of Arizpe which is providing local full-time employment.

Through the continuous stakeholder engagement efforts, the Company has identified water-related risk to be the most significant climate related challenge. To build strong relationships with a variety of stakeholders while simultaneously mitigating the Company's water risks, SilverCrest has developed a 5-year Water Stewardship plan and has initially committed to invest $1.5 million to carry out these water projects. The aim of these projects is to drastically improve water infrastructure for local communities. Over the 5-year period, SilverCrest plans to fix and improve the sewage system in Arizpe, to repair, replace and install 24 km of aqueducts and completely revitalize the water intake pipes delivering water from the Sonora River to local farmers and ranchers. As at December 31, 2022, SilverCrest had completed the revitalization of the water intake pipes, completed repair and improvement of the sewage systems in some of the planned areas and also completed installation of a portion of the planned 24km of aqueducts. SilverCrest plans to continue its work in these water projects as evidenced in SilverCrest's Water Stewardship Report which was released during Q4, 2022 and is available on the Company's website.

**Governance**

At the Management level, a new internal ESG structure was established in 2022, extending from corporate headquarters to the operational team in Mexico. This governance structure ensures that all ESG risks are tracked, understood, discussed and addressed at all levels and geographies of the Company, including the Board. It also ensures that there is a clear chain of accountability that enables ESG related information to be efficiently communicated up and down the organization. This includes the Safety, Environmental and Social Sustainability ("SESS") Committee which was established by the Board in May 2019. The Board delegated the oversight of the environmental, social capital, human capital and other climate related factors to the SESS. The SESS continues to monitor the chain of accountability within the Company in order to enable sustainability related information to be effectively communicated throughout the organization.

SilverCrest has made great strides towards gender diversity at the Board and senior management level, however the Company recognizes there is still work to do in addressing diversity and inclusion of other underrepresented groups within the Company. At December 31, 2022, the Board of Directors' was made up of three females and four males with female representation of 43% (2021 - 28.5%) and the Executive Officers of the Company were made up of three females and four males with female representation of 43% (2021 - 43%).

<u>**5.**</u> <u>**EXPLORATION**</u>

**El Picacho ("Picacho")**

The Company completed an estimated 26.2 km (97 drill holes) of drilling at Picacho during 2022 and incurred a total of $5.4 million for Picacho under exploration and evaluation expenditures during this period. Picacho exploration during 2022 has focused on exploration and infill drilling. Picacho exploration activities currently consist of permitting, access agreements, mapping and sampling of unexplored areas and target generation. To date, approximately 75% of the property has not been explored. Please refer to the Company's news release dated April 13, 2022 for drill results for Picacho.

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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<u>**6.**</u> <u>**SELECTED ANNUAL FINANCIAL INFORMATION**</u>

The following table sets out selected annual financial information derived from the Company's audited annual financial statements for each of the three most recently completed financial years of the Company:

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| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2021** | **2020** |
|  | *US$000's, Except Per Share Amounts* | *US$000's, Except Per Share Amounts* | *US$000's, Except Per Share Amounts* |
| Revenue | $43510 | $- | $- |
| Income (loss) for the year | $31301 | $(22764) | $(59932) |
| Income (loss) per share - basic | $0.21 | $(0.16) | $(0.49) |
| Income (loss) per share - diluted | $0.21 | $(0.16) | $(0.49) |
| Total assets | $355349 | $368977 | $191689 |
| Non-current financial liabilities | $41430 | $90144 | $29139 |

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* Effective December 29, 2020, the Company determined its Las Chispas Project to be in the development stage and as such commenced capitalization of Las Chispas development costs. Prior to December 29, 2020, all Las Chispas Project costs other than acquisition costs were expensed. This resulted in increased total assets and a decrease in loss for the years 2022 and 2021.

* The Company declared commercial production effective November 1, 2022 ending the development stage. This meant that interest costs began to be expensed through income (loss) and comprehensive income (loss) as opposed to capitalized to mineral property, plant, and equipment. The declaration of commercial production also resulted in the Company beginning to incur depletion of the Las Chispas Mineral Property and depreciation of the Las Chispas plant.

* The increase in 2021 total assets was also attributable to the completion of a prospectus offering in February 2021 for total net proceeds of $131.4 million and the drawdowns in August and December 2021 of the 2020 secured project financing facility (the "Project Financing Facility") totaling $60.0 million. The decrease in total assets and non-current financial liabilities in 2022 is attributable to a $40.0 million net repayment of debt on the debt refinancing (see "9. Liquidity and Capital Resources Outlook - Liabilities").

* During 2022, the Company had its first metal sales which started during Q3, 2022. The Company sold 11,400 oz of Au for $19.7 million and 1.1 million oz of Ag for $23.8 million. During 2022, the Company recorded $15.1 million of cost of sales related to the costs of producing this metal.

<u>**7.**</u> <u>**SUMMARY OF QUARTERLY RESULTS**</u>

The following table sets out information, derived from the Company's unaudited condensed consolidated interim financial statements prepared in accordance with *IAS 34 "Interim Financial Reporting"*, for each of the eight most recently completed financial quarters:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Q4, 2022** | **Q3, 2022** | **Q2, 2022** | **Q1, 2022** |
|  | **Dec 31, 2022** | **Sep 30, 2022** | **Jun 30, 2022** | **Mar 31, 2022** |
|  | *$000's, Except Per Share Amounts* | *$000's, Except Per Share Amounts* | *$000's, Except Per Share Amounts* | *$000's, Except Per Share Amounts* |
| &nbsp;&nbsp;Revenue | $40791 | $2719 | $- | $- |
| &nbsp;&nbsp;Income (loss) for the period | $5231 | $25212 | $9605 | $(8747) |
| &nbsp;&nbsp;Income (loss) per common share - basic | $0.03 | $0.17 | $0.07 | $(0.06) |
| &nbsp;&nbsp;Income (loss) per common share - diluted | $0.04 | $0.17 | $0.06 | $(0.06) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Q4, 2021** | **Q3, 2021** | **Q2, 2021** | **Q1, 2021** |
|  | **Dec 31, 2021** | **Sep 30, 2021** | **Jun 30, 2021** | **Mar 31, 2021** |
|  | *$000's, Except Per Share Amounts* | *$000's, Except Per Share Amounts* | *$000's, Except Per Share Amounts* | *$000's, Except Per Share Amounts* |
| &nbsp;&nbsp;Income (loss) for the period | $(7949) | $6917 | $(9081) | $(12651) |
| &nbsp;&nbsp;Income (loss) per common share - basic | $(0.06) | $0.05 | $(0.06) | $(0.09) |
| &nbsp;&nbsp;Income (loss) per common share - diluted | $(0.06) | $0.05 | $(0.06) | $(0.09) |

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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The Company had a foreign exchange gain during Q3, 2022, Q2, 2022, and Q3, 2021 which was due to US$ and MX$ denominated balances as the value of US$ and MX$ increased, relative to the parent entity's functional currency of C$. The parent entity holds majority of the cash and cash equivalents and has MX$ denominated inter-company loans receivable. During Q3, 2022, Q2, 2022, and Q3, 2021 the Company also had a large adjustment on foreign currency translation as a result of translating parent entity balances to US$. This adjustment on foreign currency translation is included in comprehensive loss but not in regular income for the respective periods.

The Company started commissioning its Las Chispas plant during Q2, 2022 and had its first precious metal sales during Q3, 2022. Please refer to Section 3 - Discussion of Las Chispas Operations.

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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<u>**8.**</u> <u>**RESULTS OF OPERATIONS**</u>

During the three months and year ended December 31, 2022, income was $5.2 million and $31.3 million, respectively, compared to losses of $7.9 million and $22.8 million for the three months and year ended December 31, 2021, respectively. The significant variations between these periods, ranked from largest to smallest, included primarily of the following:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ending** | **Three months ending** | **Three months ending** | **Year ending** | **Year ending** | **Year ending** | **Variance explanation** |
|  | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |  |
|  | **2022** | **2021** | **Variance** | **2022** | **2021** | **Variance** |  |
|  | *$000's* | *$000's* | *$000's* | *$000's* | *$000's* | *$000's* | |
| Revenue | $40791 | $- | $40791 | $43510 | $- | $43510 | The Company started commissioning its Las Chispas plant during Q2, 2022 and had its first metal sale during Q3, 2022. The Company declared commercial production effective November 1, 2022 and continued ramp-up and sales during Q4, 2022. |
| Foreign exchange gain (loss)<br>| $(4493) | $(2299) | $(2194) | $27913 | $(5171) | $33084 | During 2022, the value of US$ increased, relative to C$ which resulted in realized foreign exchange gains in the parent entity which has a functional currency of C$, as it held $29.5 million (December 31, 2021 - $128.1 million) in US$ denominated cash and cash equivalents at December 31, 2022. During 2022, the Company recognized unrealized foreign exchange gains resulting from the translation of intercompany balances between the parent entity and its subsidiaries. This was due to the relative appreciation in the value of MX$ to C$ during 2022. During 2021, the value of the MX$ decreased relative to C$. |
| Cost of sales | $(14295) | $- | $(14295) | $(15090) | $- | $(15090) | The Company had its first metal sales during 2022 and recorded the related costs of producing metal as cost of sales. As 2022 was a ramp-up year, operating costs were not representative of a mature and optimized mining operation. No depletion expense, which would be recorded across inventories and cost of sales, was recorded prior to achieving commercial production. Stockpile inventory that was recorded as cost of sales included ore that was mined prior to the development phase and had previously been expensed as exploration and evaluation expenditures. This lowered the weighted average cost of stockpile inventory in 2022 and was also not representative of steady-state operating costs. |
| Interest and finance expense | $(6397) | $(6) | $(6391) | $(6589) | $(27) | $(6562) | The Company declared commercial production effective November 1, 2022, and accordingly, began to expense interest costs on debt in the consolidated statement of income (loss) and comprehensive income (loss) opposed to the capitalization of debt interest costs during the development stage. In addition, during 2022, the Company refinanced the Project Financing Facility which resulted in early repayment fees and closing costs. |
| Income Tax Expense | $(5739) | $(97) | $(5642) | $(5682) | $(384) | $(5298) | During 2022, the Company had its first revenue from operations and determined that it was appropriate to record certain tax liabilities as their likelihood of being realized had increased. The majority of current income tax is accrued withholding tax on interest charged on intercompany loan balances. As the Company intends to begin to repatriate cash generated from operations from Mexico to Canada by the repayment of intercompany loans and interest, related withholding tax would become payable. |
| Exploration and evaluation expenditures | $(775) | $(3292) | $2517 | $(5444) | $(10476) | $5032 | With the focus of starting operations at Las Chispas, the Company completed approximately 26.2 km of drilling at Picacho during 2022 compared to approximately 80.7 km of drilling at Picacho during 2021. The decreased drilling at Picacho during 2022 resulted in decreased expenditures during the year. |
| General and Administrative Expense | $(3204) | $(1657) | $(1547) | $(7824) | $(6011) | $(1813) | There was increased activity in the Company during 2022 which resulted in increased general and administrative costs. The Company had a higher headcount in 2022, compared to 2021, which is in line with increased activity as well as increased compensation packages as a result of performance reviews in Q4, 2021. The Company also incurred increased costs on its insurance policies. |
| Interest Income | $886 | $155 | $731 | $2811 | $1085 | $1726 | The Company held a higher amount of interest-bearing cash and cash equivalents combined with higher interest rates throughout the year compared to 2021. |

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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<u>**9.**</u> <u>**LIQUIDITY AND CAPITAL RESOURCES OUTLOOK**</u>

The Company has primarily financed its operations to date through the issuance of common shares and debt. The Company obtained its first debt financing at the end of 2020 and refinanced this debt at the end of 2022 (described below). The Company has received revenues from its operations since Q3, 2022.

**Assets**

At December 31, 2022, the Company held $50.8 million (2021 - $176.5 million) as cash and cash equivalents. The primary factors that contributed to the decrease in cash and cash equivalents from December 31, 2021 to December 31, 2022 include:

&nbsp;&nbsp;&nbsp;&nbsp;● $65.8 million (2021 - $119.1 million) used in investing activities primarily due to investments associated with the construction and commissioning of the Las Chispas processing plant, purchase of equipment, and Las Chispas Mine development costs;

&nbsp;&nbsp;&nbsp;&nbsp;● $48.5 million (2021 - $190.6 million provided by) used in financing activities primarily for the net repayment of debt as well as the related early repayment fees and closing costs on debt refinancing and payment of interest on debt (see "*9. Liquidity and Capital Resources Outlook - Liabilities*"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $5.1 million (2021 - $32.9 million) used in operating activities primarily due to a buildup of precious metal inventory (see below), value-added taxes paid in Mexico ("IVA") that exceeded the amount of IVA refunded during the period and cash outflows related to prepaids and deposits.

As at December 31, 2022, inventories totaled $40.2 million (2021 - $Nil), which consisted of stockpile ore, work-in-process, finished goods and material and supplies. The Company did not hold any non-current inventories.

As at December 31, 2022, value-added taxes receivable increased to $31.4 million (2021 - $23.3 million), which consisted primarily of IVA of $31.4 million (2021 - $23.3 million) that the Company has paid and is due to be recovered. The Company believes the balance is fully recoverable and has not provided an allowance. As the Company is uncertain of the timing of the recovery of IVA, it has recorded $16.0 million, being the portion of the receivable that it estimates will be received within the next 12 months, as current and the remaining $15.4 million receivable as non-current. The Company received aggregate IVA refunds of $10.7 million during 2022 (2021 - $6.1 million).

As at December 31, 2022, mineral property, plant, and equipment increased to $228.1 million (2021 - $165.7 million) primarily due to additions associated with the construction and commissioning of the process plant, construction of buildings, purchase of equipment, and Las Chispas development activities.

**Liabilities**

As at December 31, 2022, accounts payable and accrued liabilities amounted to $23.4 million (2021 - $10.4 million) and was comprised primarily of various contractual obligations arising in the normal course of business, including the value of accrued share units and bonuses. Also included was $5.7 million of current tax liabilities which were mainly withholding taxes to be paid upon the payment of interest on intercompany loans. The timing of payment of withholding taxes will be assessed as part of the Company's tax planning strategies.

As at December 31, 2022, the Company's Credit Facility balance was $50.0 million (2021 - $90.0 million), or $49.6 million (2021 - $87.2 million) net of $0.4 million (2021 - $3.4 million) of cumulative transaction and accretion costs.

On November 29, 2022, the Company refinanced the Project Financing Facility, of which only $90.0 million had been drawn, with a new $120.0 million credit facility (the "Credit Facility**"**) through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal. The Credit Facility includes a $50.0 million term facility ("Term Facility**"**) and a $70.0 million revolving facility ("Revolving Facility"). On closing of the Credit Facility, the Company fully drew the $50.0 million Term Facility and used $40.0 million of its cash to repay the outstanding $90.0 million Project Financing Facility. The Revolving Facility of $70.0 million will be available to the Company until November 27, 2026, for general corporate purposes, subject to customary terms and conditions.

Subsequent to December 31, 2022, the Company made a prepayment of $15.0 million on the Term Facility, reducing the debt outstanding to $35 million.

As at December 31, 2022, the reclamation and closure provision increased by $1.9 million to $4.6 million (2021 - $2.7 million), which is the present value of estimated future net cash outflows to rehabilitate the Las Chispas Mine for disturbances in existence as of December 31, 2022. The undiscounted value of the reclamation and closure provision is estimated to be $11.2 million (2021 - $4.4 million).

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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**Liquidity outlook and risks**

The Company began generating revenue during Q3, 2022, with the startup and commissioning of the Las Chispas Mine and declared commercial production during Q4, 2022. Management believes its liquidity as at the date of this MD&A together with future revenues, and its undrawn $70.0 million Revolving Facility (if needed) will be sufficient to fund its operating activities and provide general corporate purposes beyond the next 12 months. The Company's financial success is dependent on its ability to successfully operate the Las Chispas Mine. In order to facilitate the management of its capital requirements, the Company typically prepares annual expenditure budgets which are revised periodically based on projected production and the results of its exploration and operational activities, availability of financing, and industry conditions. For 2023, the Company's Updated Technical Report in Q2, 2023 will provide the foundation for future production and cost guidance.

The impact of inflation on the Company's financial position and operating performance over the next 12 months cannot be determined with any degree of certainty due to a number of factors outside of the Company's control.

**Commitments and contractual obligations**

The Company occasionally will enter certain long-term leases as a lessee. Where they are not considered low value leases, the Company will recognize an asset and a liability in its consolidated statement of financial position. As at December 31, 2022, the Company had total lease liabilities of $0.4 million (2021 - $0.4 million) of which $0.1 million (2021 - $0.2 million) was a current liability.

The Company has certain 20-year lease agreements relating to the lease of surface rights so that the Company can pass over areas of land to access both its Las Chispas and Picacho properties. Annual surface right payments total $0.4 million.

The Company enters into contracts that give rise to commitments in the normal course of business. The following table summarizes the remaining contractual cash flows of the Company's financial liabilities and contractual obligations shown in contractual undiscounted cash flows, at December 31, 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less** <br>**than 1 year** | **Between <br>1 - 3 years** | **Between<br>4 - 5 years** | **After** |  |
|  | **Less** <br>**than 1 year** | **Between <br>1 - 3 years** | **Between<br>4 - 5 years** | **5 years** | **Total** |
|  | *$000's* | *$000's* | *$000's* | *$000's* | *$000's* |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $23416 | $- | $- | $- | $23416 |
| &nbsp;&nbsp;Purchase Obligations | 135 |  |  |  | 135 |
| &nbsp;&nbsp;Lease liabilities | 120 | 137 | 110 | 115 | 482 |
| &nbsp;&nbsp;Credit facility<sup>(1)</sup> | 16881 | 39683 |  |  | 56564 |
| &nbsp;&nbsp;Reclamation and closure provision<sup>(2)</sup> |  |  |  | 11158 | 11158 |
| &nbsp;&nbsp;TOTAL | $40552 | $39820 | $110 | $11273 | $91755 |

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<sup>**(1)**</sup> Debt interest payments calculated based on interest rate in effect on December 31, 2022. Interest rate may vary (refer to "*9. Liquidity and Capital Resources Outlook - Liabilities*").

<sup>**(2)**</sup> Estimated undiscounted cash flows.

<u>**10.**</u> <u>**USE OF PROCEEDS**</u>

**February 22, 2021 Financing**

On February 22, 2021, the Company completed a prospectus offering of 15,007,500 common shares at a price of $9.20 per common share for gross proceeds of $138.1 million ($131.4 million net proceeds). This bought deal financing offering was completed by way of a prospectus supplement to a base shelf prospectus. This base shelf prospectus lapsed during 2022.

The following table compares the estimated and actual use of net proceeds from the February 2021 prospectus offering (other than working capital<sup>1</sup>2F2F) to December 31, 2022:

<sup>_________________</sup><sup>_______________________________</sup>

<sup>1</sup> Please refer to note 18 *"Non-IFRS Financial Measures"* for how the Company uses the term "working capital".

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|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Description of expenditure** | **Estimated cost** | **Actual and accrued**<br>**expenditures to**<br>**December 31, 2022** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;For Las Chispas Property |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration infill and expansion drilling<sup>(1)</sup> | 40000 | 16000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production ramp-up and inventory costs | 10000 | 10000 |
| &nbsp;&nbsp;Exploration work on other properties near Las Chispas | 15000 | 15000 |
| &nbsp;&nbsp;Other<sup>(1)</sup> |  | 24000 |
| &nbsp;&nbsp;Total | 65000 | 65000 |

---

<sup>**(1)**</sup> During 2022, a portion of the proceeds for Las Chispas exploration infill and expansion drilling was used to repay the Project Financing Facility. Future Las Chispas exploration infill and expansion drilling will be funded with the existing cash and cash equivalents balance as well as expected future cash flows from operations.

<u>**11.**</u> <u>**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**</u>

The Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and debt. The carrying value of accounts receivable and accounts payable and accrued liabilities (except as noted) approximate their fair values due to the short periods until settlement. The Company's accounts payable and accrued liabilities related to deferred share units ("DSUs"), restricted share units ("RSUs") and performance share units ("PSUs") are measured using level 2 inputs. The Company's debt is recorded at amortized cost. The Company is exposed to various financial instrument risks and assesses the impact and likelihood of this exposure. These risks include liquidity, foreign currency, credit, commodity price, and interest rate risks. Where material, these risks are reviewed and monitored by the Board of Directors. Foreign currency risk and commodity price risk are described below, and for further details on these risks, please refer to note 18 of the audited consolidated financial statements for the year ended December 31, 2022.

**Foreign currency risk**

The Company operates in Canada and Mexico and is exposed to foreign exchange risk arising from transactions denominated in foreign currencies. The Credit Facility drawdowns are denominated in US$. The operating results and the financial position of the Company are reported in US$. The functional currency of the parent entity is C$ and is therefore exposed to foreign currency risk from financial instruments denominated in currencies other than C$. The functional currency of the Company's subsidiaries is US$ and therefore the Company's subsidiaries are exposed to foreign currency risk from financial instruments denominated in currencies other than US$.

The Company is exposed to foreign currency risk through the following financial assets and liabilities, expressed in US$:

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| | | | |
|:---|:---|:---|:---|
|  | **US Dollar** | **Mexican Peso** | **Total** |
|  | *$000's* | *$000's* | *$000's* |
| &nbsp;&nbsp;**December 31, 2022** |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | 29502 | 318 | 29820 |
| &nbsp;&nbsp;Accounts receivable | 111 | 8 | 119 |
| &nbsp;&nbsp;Value-added taxes receivable |  | 31378 | 31378 |
| &nbsp;&nbsp;Total financial assets | 29613 | 31704 | 61317 |
| &nbsp;&nbsp;Less: accounts payable and accrued liabilities | (428) | (3010) | (3438) |
| &nbsp;&nbsp;Less: Debt | (49591) |  | (49591) |
| &nbsp;&nbsp;**Net financial assets (liabilities)** | (20406) | 28694 | 8288 |

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The Company is primarily exposed to fluctuations in the value of C$ against US$ and US$ against MX$. With all other variables held constant, a 1% change in C$ against US$ and US$ against MX$ would result in the following impact on the Company's net income (loss) for the year:

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| | |
|:---|:---|
|  | **December 31, 2022** |
|  | *$000's* |
| &nbsp;&nbsp;C$/US$ exchange rate - increase/decrease 1% | 204 |
| &nbsp;&nbsp;US$/MX$ exchange rate - increase/decrease 1% | 287 |

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<u>**12.**</u> <u>**RELATED PARTY TRANSACTIONS**</u>

**Professional fees**

During 2022 and 2021, the Company had the following transactions with Koffman Kalef LLP, a law firm of which the Company's Corporate Secretary is a partner.

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;Professional fees - expense | $111 | $105 |
| &nbsp;&nbsp;Professional fees - capital stock issuance costs | $- | $250 |
|  | **December 31, 2022** | **December 31, 2021** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;Payable to Koffman Kalef LLP | $12 | $6 |

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**Key management compensation**

The Company's key management personnel have authority and responsibility for planning, directing, and controlling the activities of the Company and include the Company's Chief Executive Officer ("CEO"), President, Chief Financial Officer ("CFO"), Chief Operating Officer ("COO"), and directors. Key management personnel compensation is summarized as follows:

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| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;Salaries, short-term incentives, management fees, and directors' fees <sup>(1)</sup> | $2891 | $2457 |
| &nbsp;&nbsp;Share-based compensation<sup>(2)</sup> | $2285 | $1882 |
|  | $5176 | $4339 |

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<sup>(1)</sup> Salaries, short-term incentives, management fees, and directors' fees include remuneration and short-term benefits paid to the President, CFO, COO, and directors. The management fees were paid to a company controlled by the CEO.

<sup>(2)</sup> Share-based compensation includes amounts recorded for stock options, DSUs, RSUs, and PSUs. Please see note 15 of the audited consolidated financial statements for the year ended December 31, 2022 for further details.

**Other transactions**

* The Company recorded a loan receivable due from the COO of the Company. The loan accrues interest at a rate of 2% per annum and is due December 31, 2023. The loan receivable balance is as follows:

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| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;Loan receivable<sup>(1)</sup> | $42 | $44 |

---

<sup>(1)</sup> Subsequent to December 31, 2022, this loan receivable was fully settled.

* The Company has an allocation of costs agreement with Goldsource Mines Inc. ("Goldsource"), a company related by common directors and officers (N. Eric Fier, Bernard Poznanski, and Graham Thody), whereby the Company shares salaries, administrative services, and other expenses. Amounts allocated to Goldsource are due at the end of each fiscal quarter and accrue interest at a rate of 1% per month, if in arrears for greater than 30 days. During 2022 and 2021, the following transactions occurred:

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| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;Costs allocated to Goldsource | $66 | $94 |

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| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  | *$000's* | *$000's* |
| &nbsp;&nbsp;Receivable from Goldsource | $19 | $23 |

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|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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<u>**13.**</u> <u>**OUTSTANDING SHARE CAPITAL**</u>

As of March 10, 2023, the Company had the following common shares, options and share units issued and outstanding:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Security** | &nbsp;&nbsp;**C$ per share** | &nbsp;&nbsp;**Expiry** | **Issued and<br>Outstanding** |
| &nbsp;&nbsp;Common Shares |  |  | 147231264 |
|  | &nbsp;&nbsp;C$ per share | &nbsp;&nbsp;Expiry |  |
| &nbsp;&nbsp;Options<sup>(</sup><sup>1</sup><sup>)</sup> | &nbsp;&nbsp;C$3.24 - C$12.63 | &nbsp;&nbsp;Dec 14, 2023 - Dec 16, 2027 | 5469450 |
| &nbsp;&nbsp;DSUs, RSUs and PSUs<sup>(1)</sup><sup>(2)</sup> | &nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 519248 |
| &nbsp;&nbsp;Fully Diluted |  |  | 153219962 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Each option is convertible or exchangeable into one common share of the Company. The Board of Directors may elect one or any combination of the following settlement methods for the settlement of DSUs, RSUs and PSUs: issuing shares from treasury, causing a broker to purchase shares on the TSX; and/or paying cash. Where settlement through shares is chosen, each DSU, RSU and PSU is convertible or exchangeable into one common share of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) This excludes all DSUs issued under the former cash-settled DSU plan and those issued under the Company's Equity Share Unit Plan ("ESUP") prior to April 1, 2022 as they are now cash-settled and as such not dilutive. On April 1, 2022, the Board determined all 66,000 DSUs, 10,500 of which were settled during Q2, 2022, granted prior to April 1, 2022 under the ESUP are to be settled in cash.

<u>**14.**</u> <u>**OFF-BALANCE SHEET ARRANGEMENTS**</u>

As at December 31, 2022, the Company had no off-balance sheet arrangements.

<u>**15.**</u> <u>**CHANGES IN ACCOUNTING POLICIES AND OTHER CHANGES**</u>

*Revenue*

The Company early adopted the Amendments to *IAS 16 "Property, Plant, and Equipment"* during 2021, pursuant to which proceeds from sales occurring before the Las Chispas Mine is operating in the manner intended by management should be recognized in the consolidated statement of income (loss) and comprehensive income (loss), together with the costs of producing those items. The Company measured the costs of production, while the Las Chispas Mine was in commissioning, in accordance with *IAS 2 "Inventories".* During 2022, the Company earned revenue from operations for the first time and as such adopted an accounting policy on revenue, describing when and how the Company reports revenue from metal sales.

*Inventories*

During 2022, the Company recorded inventory for the first time and as such adopted an accounting policy on inventory, describing how the Company accounts for and presents inventories, particularly production inventories and materials and supplies inventories.

*Depletion*

During 2022, the Company determined the Las Chispas Mine was operating in the manner intended by management and as such recorded depletion expense for the first time and adopted an accounting policy on depletion, describing how the Company accounts for depletion expense.

For further details on these accounting policies above, please refer to note 2 of the 2022 audited consolidated financial statements.

<u>**16.**</u> <u>**TRENDS AND RISK FACTORS**</u>

Besides the risks discussed elsewhere in this MD&A, there are other risks and uncertainties that have affected the Company's financial statements or that may affect them in the future. See "Risk Factors" in the Company's Annual Information Form for other risks affecting or that could potentially affect the Company.

***Activities of the Company may be impacted by public health crises.***

The Company's business could be significantly adversely affected by the outbreak of epidemics or pandemics or other health crises, including any outbreak of additional strains of COVID-19. Global reactions to the spread of COVID-19 led to, among other things, significant restrictions in many jurisdictions on travel and gatherings of individuals, quarantines, temporary business closures and a general reduction in consumer activity. Although quarantines have been lifted in many jurisdictions and vaccination programs have been implemented, countries globally continue to experience negative impacts as the result of COVID-19. The duration of related financial impact on the Company and the economy in general cannot be estimated with any degree of certainty at this time. Such public health crises can adversely impact the Company's operations and result in volatility and disruptions in supply and demand for gold and silver, as well as declining trade and market sentiment, all of which can affect commodity prices, interest rates, share prices and inflation.

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| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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The continued spread of COVID-19 globally and other future public health crises could materially and adversely impact the Company's business, including without limitation, employee health, workforce availability and productivity, limitations on travel, supply chain disruptions, increased insurance premiums, increased costs and reduced efficiencies, the availability of industry experts and personnel, restrictions on the Company's exploration and drilling programs and/or the timing to process drill and other metallurgical testing and the slowdown or temporary suspension of operations at some or all of the Company's properties. Although the Company has the capacity to continue certain administrative functions remotely, many other functions, including mining operations, cannot be conducted remotely.

The Company continues to monitor the evolution of the COVID-19 pandemic and applies operational and safety procedures in accordance with guidelines outlined in the jurisdictions in which it operates. As the COVID-19 global pandemic is dynamic and, given that the ultimate duration and severity of the pandemic remains uncertain, the impact of COVID-19 on the Company's operations, exploration and development activities cannot be reasonably estimated with a high level of certainty. A local outbreak, the occurrence of new variants or changes in government health orders remains a significant risk.

***The Company's exploration, development and mining activities are subject to foreign currency exchange fluctuations which could result in foreign exchange losses.***

The Company's activities in Canada and Mexico are subject to foreign currency exchange fluctuations. The Credit Facility drawdowns are denominated in US$. The majority of corporate costs are denominated in C$ and the majority of the exploration, development and mining costs of the Company are denominated in US$ or MX$. Although timing of refunds cannot be assured, the Company also receives its Mexican value added tax (IVA) refunds in MX$. At December 31, 2022, the Company had cash reserves in C$ and US$ that more than cover the 2023 budgeted expenditure in each of these currencies. As the Company predominately holds US$ and C$, the Company may be exposed to material effects on having to purchase MX$. Despite all these factors, the Company may suffer losses due to adverse foreign currency fluctuations.

During 2022, the MX$ was relatively flat when compared to the US$. The average foreign exchange rate was MX$20.11 per US$, with the MX$ trading within a range of MX$19.60 to MX$20.68 per US$. This compares to an average of MX$20.28, with a range of MX$19.60 to MX$21.81 MX$ per US$ in 2021.

***Precious metal prices are subject to wide fluctuations.***

The Company's revenue is primarily dependent on the sale of gold and silver and movements in the spot price of gold or silver may have a direct and immediate impact on the Company's income. The profitability of any future precious metal operations in which the Company has an interest will be significantly affected by changes in the market prices of precious metals. Prices for precious metals fluctuate on a daily basis, have historically been subject to wide fluctuations and are affected by numerous factors beyond the control of the Company such as the level of interest rates, the rate of inflation, the rates of investment return in broad financial markets, central bank transactions, world supply of the precious metals, foreign currency exchange rates, international investments, monetary systems, speculative activities, international economic conditions and political developments. The exact effect of these factors cannot be accurately predicted, but the combination of any or all of these factors may result in the Company not receiving adequate returns on invested capital or the Company's investments in its mineral properties not retaining their respective values. Future production from the Company's mining properties is dependent on metal prices that are adequate to make these properties economic. Declining market prices for precious metals could materially adversely affect the Company's future operations and profitability and may require a reassessment of the feasibility of Las Chispas.

***The Company is subject to assessment by taxation authorities in multiple jurisdictions that arise in the ordinary course of business.***

In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. Income tax provisions and income tax filing positions require estimates and interpretations of income tax rules and regulations of the various jurisdictions in which the Company operates and judgments as to their interpretation and application to the Company's specific situation. The Company's business and operations of the business and operations of its subsidiaries is complex, and the Company has, historically, undertaken a number of significant financings and other material transactions. While the Company's management believes that the provision for income tax is appropriate and in accordance with IFRS and applicable legislation and regulations, tax filing positions are subject to review and adjustment by taxation authorities, which may challenge the Company's interpretation of the applicable tax legislation and regulations. Any review or adjustment may have a material adverse effect on the Company's financial condition.

The introduction of new tax laws, tax reforms, regulations or rules, or changes to, or differing interpretation of, or application of, existing tax laws, regulations or rules in Canada or México or any other countries in which the Company's subsidiaries may be located, or to which shipments of products are made, could result in an increase in the Company's taxes payable, or other governmental charges, interest and penalties, duties or impositions. No assurance can be given that new tax laws, tax reforms, regulations or rules will not be enacted or that existing tax laws, regulations or rules will not be changed, interpreted or applied in a manner which could result in the Company's profits being subject to additional taxation, interest and penalties, or which could otherwise have a material adverse effect on the Company.

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

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***Interest Rate and Credit Facility risk***

In respect of financial assets, the Company's policy is to invest cash at floating rates of interest and cash reserves may be maintained in cash equivalents and refined precious metal bullion in order to maintain liquidity. Fluctuations in interest rates can impact the yield generated on cash balances and the value of cash equivalents. The Credit Facility is subject to interest rate risk as amounts outstanding are subject to changes based on fluctuations in the SOFR (refer to *"9. Liquidity and Capital Resources Outlook - Liabilities"*).

The Company has drawn down $50.0 million of the Term Facility. Drawdown of the Revolving Facility is subject to the Company meeting drawdown conditions. Failure to meet such conditions or the breach of certain covenants under the Credit Facility could result in the Company being unable to complete additional drawdowns or triggering default provisions under the Credit Facility, requiring early repayment of the amounts drawn down and adversely affecting the Company's financial position and business.

In addition, the Company will be required to make scheduled repayments commencing in June 2023. The Company's ability to make scheduled payments depends on the Company's financial condition and operating performance, which are subject to prevailing economic and market conditions. If the Company's cash flow and capital resources are insufficient to fund its debt service obligations, the Company could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of assets, seek additional debt or equity capital or restructure its indebtedness, which may adversely affect the Company's operations and business.

***Economic Conditions for Mining***

Global financial markets are experiencing extreme volatility as a result of the ongoing COVID-19 pandemic and the Ukraine-Russia conflict. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by financial markets. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company's ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company. Increased levels of volatility and market turmoil could have an adverse impact on the Company's operations and planned growth and the trading price of the securities of the Company may be adversely affected.

***The Company may not be successful in maintaining internal control over financial reporting.***

The Company documents and tests its internal control procedures in order to maintain adequate internal control over its financial reporting and satisfy the requirements of applicable regulations, including Section 404 of the Sarbanes Oxley Act of 2002 (the "Sarbanes Oxley Act") in the United States. The Sarbanes Oxley Act requires, among other things, an annual assessment by management of the effectiveness of the Company's internal control over financial reporting. The Company may fail to maintain the adequacy of its internal control over financial reporting as such standards are modified, supplemented or amended from time to time, and management may not be able to conclude, on an ongoing basis, that the Company has effective internal control over financial reporting in accordance with applicable regulations. The Company's failure to satisfy the requirements of applicable regulations on an ongoing, timely basis could result in the loss of investor confidence in the reliability of the Company's financial statements which, in turn, could harm the Company's business and negatively impact the trading price or the market value of the Company's securities. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could cause the Company to fail to meet its reporting obligations. Future acquisitions of companies, if any, may provide the Company with challenges in implementing the required processes, procedures and controls in the Company's acquired operations. No evaluation can provide complete assurance that the Company's internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be reported. The effectiveness of the Company's processes, procedures and controls could also be limited by simple errors or faulty judgments. In addition, as the Company expands, the challenges involved in implementing appropriate internal control over financial reporting will increase and will require the Company to continue to monitor its internal control over financial reporting. Although the Company intends to expend substantial time and incur substantial costs, as necessary, to ensure ongoing compliance, the Company cannot be certain that it will be successful.

<u>**17.**</u> <u>**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amounts and the valuation of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenditures during the year. These judgments and estimates are continuously evaluated and are based on management's experience and knowledge of the relevant facts and circumstances. Actual results may differ from the estimates. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively. Information about such judgments and estimates is contained in note 3 to the audited consolidated financial statements for the year ended December 31, 2022. Management has made the following critical estimates and judgments:

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

---

*Recoverable value of and impairment of non-current assets* 

Management must determine whether or not indicators of impairment are present and when indicators of impairment are present estimate the recoverable value of the Company's non-current assets.

*Functional currency* 

The functional currency for an entity is the currency of the primary economic environment in which the entity operates. The Company has determined the functional currency of the parent entity to be C$ and its subsidiaries to be US$. Determination of functional currency may involve certain judgments to determine the primary economic environment, and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determine the primary economic environment.

*Mineral reserves and the life of mine plan*

The Company estimates its mineral reserves in accordance with the requirements of National Instrument 43-101. Estimates of the quantities of the mineral reserves form the basis for the Company's life of mine plans, which are used for the calculation of depletion expense under the units of production method, impairment tests, and forecasting the timing of the payments related to the environmental reclamation provision.

*Share-based payments* 

The Company uses the Black-Scholes model to value share-based payments related to stock options. The option valuation model requires the input of highly subjective assumptions including the expected stock price volatility. Because the Company's stock options have characteristics significantly different from those of traded options and because the subjective input assumptions can materially affect the calculated fair value, such value is subject to measurement uncertainty.

*Collectability and classification of IVA recoverable*

IVA recoverable is collectible from the government of Mexico. The collection of IVA is subject to a complex application and collection process and therefore, there is risk related to the collectability and timing of payment from the Mexican government. The Company uses its best estimates based on the facts known at the time and its experience to determine its best estimate of the collectability and timing of these recoveries. Changes in the assumptions regarding collectability and the timing of collection could impact the valuation and classification as a current or non-current asset associated with IVA recoverable.

*Mineral property, plant, and equipment and assets ready for intended use*

Determining when the Las Chispas Mine, processing plant, and other assets are in the condition necessary to be capable of operating in the manner intended by management is a matter of judgment. The Company has established a framework in the context of *IAS 16 - Property, Plant and Equipment* with respect to determining when the Las Chispas Mine and processing plant are deemed to be capable of operating in the manner intended by management. This framework considers factors such as the physical and technical performance of the asset. Effective November 1, 2022, the Company determined the Las Chispas Mine was operating in the manner intended by management and as such declared commercial production had been achieved.

*Inventories valuation and cost*

The measurement of inventories, including the determination of its net realizable market value ("NRV"), especially as it relates to metal processing inventory involves the use of estimates.

Las Chispas has mineral stockpiles that are valued at the lower of weighted average cost and NRV. This is the same for work-in-process and finished goods. NRV is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future costs to convert the inventories into saleable form and estimated costs to sell, discounted where applicable. In determining the value of these stockpiles, the Company makes estimates of tonnages, grades, and the recoverability of ore in these stockpiles to estimate its value. Changes in these estimates can result in a change in carrying amounts of inventory, which could result in charges to cost of sales and a reduction to working capital. The determination of forecast sales prices, recovery rates, grade, assumed contained metal in stockpiles, work-in-process and processing and selling costs all requires significant assumptions that impact the carrying value of inventories.

The cost of inventories include:

&nbsp;&nbsp;&nbsp;&nbsp;● Mining costs incurred in production such as labour, material costs, and depreciation and depletion;

&nbsp;&nbsp;&nbsp;&nbsp;● Mining overhead is allocated to inventory based on a monthly allocation prepared by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;● Indirect and plant costs that are attributed to mining production.

------

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| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

---

*Estimate of reclamation and closure cost provision*

The Company's provision for reclamation and closure costs represents management's best estimate of the present value of the future cash outflows required to settle the liability which reflects estimates of future costs, the timing of the cash flows associated with the future costs, inflation, and movements in foreign exchange rates when liabilities are anticipated to be settled in a currency other than US$. Cost estimates can vary in response to many factors including changes to the relevant legal requirements, whether closure plans achieve intended reclamation goals, the emergence of new restoration techniques, or experience at other mine sites, local inflation rates, and foreign exchange rates. Future changes to environmental laws and regulations could increase the extent of reclamation and rehabilitation work required to be performed by the Company. Increase in future costs could materially impact the amounts charged to operations for reclamation and closure. The expected timing of expenditures can also change, for example, in response to changes in mineral reserves, production rates, or economic conditions. The Company's assumptions are reviewed at the end of each reporting period and adjusted to reflect management's current best estimate and changes in any of the aforementioned factors can result in a material change to the provision recognized by the Company.

<u>**18.**</u> <u>**NON-IFRS FINANCIAL MEASURES**</u>

SilverCrest has disclosed working capital (described below) in this MD&A which is a common non-IFRS measure and plans to use certain other non-IFRS performance measures in subsequent periods. Non-IFRS financial measures do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The Company intends to report additional various operational and financial non-IFRS measures beginning in 2023 (first full year of production at Las Chispas). The Company will provide a reconciliation of its non-IFRS performance measures to IFRS figures (anticipated to start for the quarter ending March 31, 2023).

*Working capital*

Working capital is a non-IFRS measure which the Company defines as current assets less current liabilities, as reported in the audited consolidated statements of financial position. In the context of use of proceeds, it relates to the maintenance of sufficient current asset balances to settle current liabilities, as they come due in the normal course of business.

<u>**19.**</u> <u>**DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING**</u>

*Disclosure Controls and Procedures*

Disclosure controls and procedures are designed, under the supervision of the CEO and the CFO, to provide reasonable assurance that information related to the Company, including its consolidated subsidiaries, required to be disclosed in reports filed or submitted by the Company under U.S. and Canadian securities legislation is recorded, processed, summarized and reported within the time periods specified in those rules, and include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted by the Company under U.S. and Canadian securities legislation is accumulated and communicated to management, including the CEO and CFO, as appropriate, to permit timely decisions regarding required disclosure. Management, including the CEO and CFO, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in the rules of the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, as at December 31, 2022. Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as at December 31, 2022.

*Management's Report on Internal Control Over Financial Reporting* 

Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. During 2018, the Company adopted the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") Internal Control - Integrated Framework (2013) to design internal controls over financial reporting. The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events. Therefore, even those systems determined effective can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

During 2022, the Company had revenue for its first time on the sale of precious metals. The Company also recorded inventories for the first time during 2022. The Company established certain new controls and procedures in relation to the new revenue and inventories to maintain adequate internal control over financial reporting.

------

---

| | |
|:---|:---|
| **SILVERCREST METALS INC. <br>MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **(UNITED STATES DOLLARS UNLESS OTHERWISE STATED)**<br> **YEAR ENDED DECEMBER 31, 2022** | **TSX: SIL \| NYSE American: SILV** |

---

Except for the new revenue and inventory controls and procedures, there have been no significant changes in the Company's internal control over financial reporting during 2022, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting. The Company's management, with participation of the CEO and CFO, has assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2022. In making this assessment, management used the criteria established in Internal Control - Integrated Framework (2013) issued by COSO. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2022.

The effectiveness of the Company's internal control over financial reporting as at December 31, 2022 has been audited by PricewaterhouseCoopers LLP, the Company's independent registered public accounting firm, who have expressed their opinion in their report included with our annual consolidated financial statements which are available at <u>www.sedar.com</u> and on the Company's website <u>www.silvercrestmetals.com</u>.

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## Exhibit 99.4

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**CERTIFICATION**

I, N. Eric Fier, certify that:

1. I have reviewed this annual report on Form 40-F of SilverCrest Metals Inc.;

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 issuer as of, and for, the periods presented in this report;

4. The issuer'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 issuer and have:

&nbsp;&nbsp;&nbsp;&nbsp;&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 issuer, 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;&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;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the issuer'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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the issuer'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 issuer's internal control over financial reporting; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&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 issuer's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&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 issuer's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: March 13, 2023 | By: | /s/ N. Eric Fier |
|  |  | N. Eric Fier |
|  |  | Chief Executive Officer and Director |
|  |  | (Principal Executive Officer) |

---

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## Exhibit 99.5

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**CERTIFICATION**

I, Anne Yong, certify that:

1. I have reviewed this annual report on Form 40-F of SilverCrest Metals Inc.;

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 issuer as of, and for, the periods presented in this report;

4. The issuer'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 issuer and have:

&nbsp;&nbsp;&nbsp;&nbsp;&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 issuer, 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;&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;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the issuer'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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the issuer'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 issuer's internal control over financial reporting; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&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 issuer's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&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 issuer's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: March 13, 2023 | By: | /s/ Anne Yong |
|  |  | Anne Yong |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

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## Exhibit 99.6

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CERTIFICATION PURSUANT TO<br>18 U.S.C. §1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SilverCrest Metals Inc. (the "Company") on Form 40-F for the period ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, N. Eric Fier, Chief Executive Officer and Director of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| March 13, 2023 | /s/ N. Eric Fier |
|  | N. Eric Fier |
|  | Chief Executive Officer and Director |
|  | (Principal Executive Officer) |

---

A signed original of this written statement required by Section 906 has been provided to SilverCrest Metals Inc. and will be retained by SilverCrest Metals Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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## Exhibit 99.7

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CERTIFICATION PURSUANT TO<br>18 U.S.C. §1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SilverCrest Metals Inc. (the "Company") on Form 40-F for the period ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Anne Yong, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| March 13, 2023 | /s/ Anne Yong |
|  | Anne Yong |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---

A signed original of this written statement required by Section 906 has been provided to SilverCrest Metals Inc. and will be retained by SilverCrest Metals Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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## Exhibit 99.8

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**Consent of of Independent Registered Public Accounting Firm**

We hereby consent to the incorporation by reference in this Annual Report on Form 40-F for the year ended December 31, 2022 of SilverCrest Metals Inc. of our report dated March 10, 2023, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in Exhibit 99.2 to this Annual Report on Form 40-F.

We also consent to reference to us under the heading "Interests of Experts" which appears in the Annual Information Form, which is filed as Exhibit 99.1 to this Annual Report on Form 40-F.

 **/s/PricewaterhouseCoopers LLP**

 **Chartered Professional Accountants**

Vancouver, British Columbia

Canada

March 10, 2023

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## Exhibit 99.9

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**CONSENT OF EXPERT**

I, Khosrow Aref, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Khosrow Aref* |
|  |  | Khosrow Aref, P. Eng. |
| March 13, 2023 |  |  |

---

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## Exhibit 99.10

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**CONSENT OF EXPERT**

I, Jarita Barry, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Jarita Barry* |
|  |  | Jarita Barry, P.Geo. |
| March 13, 2023 |  |  |

---

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## Exhibit 99.11

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**CONSENT OF EXPERT**

I, David Burga, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ David Burga* |
|  |  | David Burga P.Geo. |
| March 13, 2023 |  |  |

---

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## Exhibit 99.12

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**CONSENT OF EXPERT**

I, N. Eric Fier, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the inclusion of the scientific and technical information relating to the mineral properties of SilverCrest Metals Inc. (the "Company") disclosed in the Company's Annual Information Form for the year ended December 31, 2022 (the "AIF"), the Company's Management's Discussion and Analysis dated December 31, 2022 (the "MD&A") being filed as exhibits to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the review of the scientific and technical information relating to the Company's mineral properties in the AIF and MD&A and to reference to my name in the AIF, the MD&A and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ N. Eric Fier* |
|  |  | N. Eric Fier, CPG, P.Eng |
| March 13, 2023 |  |  |

---

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## Exhibit 99.13

------

**CONSENT OF EXPERT**

The undersigned does hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of our name in connection with reference to our involvement in the preparation of the Technical Report and to references of the Technical Report and our name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | **G MINING SERVICES INC.**  | **G MINING SERVICES INC.**  |
|  | By: | */s/ Carl Michaud*<br>|
|  |  | Name: Carl Michaud, P.Eng.<br>Title: Vice President Mining Engineering |
| March 13, 2023 |  |  |

---

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## Exhibit 99.14

------

**CONSENT OF EXPERT**

The undersigned does hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | **HYDRO-RESSOURCES INC.**  | **HYDRO-RESSOURCES INC.**  |
|  | By: | */s/ Michael Verreault* |
|  |  | Name: Michael Verreault<br> Title: Hydrogeologist - President |
| March 13, 2023 |  |  |

---

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## Exhibit 99.15

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**CONSENT OF EXPERT**

I, Robin Kalanchey, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Robin Kalanchey* |
|  |  | Robin Kalanchey, P.Eng. |
| March 13, 2023 |  |  |

---

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## Exhibit 99.16

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**CONSENT OF EXPERT**

I, Carl Michaud, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Carl Michaud* |
|  |  | Carl Michaud, P.Eng. |
| March 13, 2023 |  |  |

---

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## Exhibit 99.17

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**CONSENT OF EXPERT**

The undersigned does hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | **P&E MINING CONSULTANTS INC.**  | **P&E MINING CONSULTANTS INC.**  |
|  | By: | */s/ Eugene Puritch* |
|  |  | Name: Eugene Puritch, P.Eng.<br> Title: President |
| March 13, 2023 |  |  |

---

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## Exhibit 99.18

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**CONSENT OF EXPERT**

I, Humberto Preciado, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Humberto Preciado* |
|  |  | Humberto Preciado, P.E. |
| March 13, 2023 |  |  |

---

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## Exhibit 99.19

------

**CONSENT OF EXPERT**

I, Eugene Puritch, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Eugene Puritch* |
|  |  | Eugene Puritch, P.Eng. |
| March 13, 2023 |  |  |

---

------

## Exhibit 99.20

------

**CONSENT OF EXPERT**

The undersigned does hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | **ROCKLAND LTD.**  | **ROCKLAND LTD.**  |
|  | By: | */s/ Khosrow Aref* |
|  |  | Name: Khosrow Aref<br> Title: President |
| March 13, 2023 |  |  |

---

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## Exhibit 99.21

------

**CONSENT OF EXPERT**

I, William Stone, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ William Stone* |
|  |  | William Stone, P.Geo. |
| March 13, 2023 |  |  |

---

------

## Exhibit 99.22

------

**CONSENT OF EXPERT**

I, Andrew J. Turner, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Andrew J. Turner* |
|  |  | Andrew J. Turner, P.Geol. |
| March 13, 2023 |  |  |

---

------

## Exhibit 99.23

------

**CONSENT OF EXPERT**

I, Michael Verreault, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Michael Verreault* |
|  |  | Michael Verreault, P.Geo. |
| March 13, 2023 |  |  |

---

------

## Exhibit 99.24

------

**CONSENT OF EXPERT**

I, Scott Weston, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Scott Weston* |
|  |  | Scott Weston, P.Geo. |
| March 13, 2023 |  |  |

---

------

## Exhibit 99.25

------

**CONSENT OF EXPERT**

The undersigned does hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | **WSP USA ENVIRONMENT & <br>INFRASTRUCTURE INC. (SUCCESSOR TO <br>WOOD ENVIRONMENT & INFRASTRUCTURE <br>SOLUTIONS, INC.)**  | **WSP USA ENVIRONMENT & <br>INFRASTRUCTURE INC. (SUCCESSOR TO <br>WOOD ENVIRONMENT & INFRASTRUCTURE <br>SOLUTIONS, INC.)**  |
|  | By: | /s/ Humberto Preciado |
|  |  | Name: Humberto Preciado, P.E.<br> Title: Principal Geotechnical Engineer |
| March 13, 2023 |  |  |

---

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## Exhibit 99.26

------

**CONSENT OF EXPERT**

I, Yungang Wu, do hereby consent to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the use of the written disclosure derived from the report entitled "NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project" effective January 4, 2021 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2022 ("AIF") of SilverCrest Metals Inc. (the "Company") being filed as an exhibit to the Company's Form 40-F Annual Report for the period ended December 31, 2022, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.

---

| | | |
|:---|:---|:---|
|  | By: | */s/ Yungang Wu* |
|  |  | Yungang Wu, P.Geo. |
| March 13, 2023 |  |  |

---

------