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TSX: DSV | OTCQX: DSVSF | DISCOVERYSILVER.COM DSV TSX:DSV OTCQX: DSVSF DISCOVERYSILVER.COM ACQUISITION OF NEWMONT’S PORCUPINE COMPLEX Creating a New Canadian Gold Producer with Upside PDAC – Investor Presentation March 3, 2025
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DSV 2 Forward Looking Statement This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All information, other than statements of historical facts, included in this presentation that address activities, events or developments that Discovery Silver Corp. (“Discovery” or the “Company”) expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's businesses, operations, plans and other such matters are forward-looking information. When used in this presentation, the words "estimate", "plan", "continue", "anticipate", "might", "expect", "project", "intend", "may", "will", "shall", "should", "could", "would", "predict", "predict", "forecast", "pursue", "potential", "believe" and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Examples of such forward-looking information include information pertaining to, without limitation, statements with respect to: the anticipated timing and closing of the Transaction (as defined herein); the anticipated benefits of the Transaction, including the impact of the Transaction on the Company's operations, financial condition, cash flows and overall strategy; the Porcupine Complex, including the assumptions and qualifications contained in the Porcupine Technical Report (as defined herein); the completion of the Public Offering (as defined herein); the expected closing dates of the transactions described herein; the exercise of the over-allotment option for the Public Offering; the receipt of all necessary regulatory approvals to effect the Public Offering; the expected use of net proceeds from the Public Offering, which ultimately remains subject to the Company's discretion, as well as the impact of general business, economic and political conditions; the anticipated timing and closing of the financing package from Franco-Nevada (as defined herein) as well as the anticipated use of proceeds therefrom and the impact thereof on the Company's financial condition; receipt of shareholder approvals; the future price of gold and other metals; currency exchange rates and interest rates; favourable operating conditions; political stability; timely receipt of governmental approvals, licenses, and permits (and renewals thereof); access to necessary financing; stability of labour markets and in market conditions in general; availability of equipment; the accuracy of mineral resource estimates, and of any metallurgical testing completed to date; estimates of costs and expenditures to complete our programs and goals; the speculative nature of mineral exploration and development and mining operations in general; there being no significant disruptions affecting the development and operation of the Company's properties; exchange rate assumptions being approximately consistent with assumptions; the availability of certain consumables and services and the prices for power and other key supplies being approximately consistent with assumptions; labour and materials costs being approximately consistent with assumptions; assumptions made in mineral resource estimates, including, but not limited to, geological interpretation, grades, metal price assumptions, metallurgical and mining recovery rates, geotechnical and hydrogeological assumptions, capital and operating cost estimates, and general marketing factors; other statements relating to the financial and business prospects of the Company; information as to the Company's strategy, plans or future financial or operating performance; and other events or conditions that may occur in the future. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include, among others: the satisfaction of all conditions to closing the Transaction, the Public Offering, and the financing package from Franco-Nevada and, in each case, on the timeframes contemplated; the purchase price of the Transaction, subject to post-closing adjustments and the payment of the deferred cash consideration; the successful completion of the Transaction and the Company's ability to obtain the anticipated benefits therefrom; the accuracy of historical and forward-looking operational and financial information and estimates provided by Newmont (as defined herein); the Company's ability to integrate Porcupine into the Company's operations; the accuracy of financial and operational projections of the Company following completion of the Transaction; statements regarding the Porcupine Complex, including the results of technical studies and the anticipated capital and operations costs, sustaining costs, internal rate of return, concession or claim renewal, permitting, economic and scoping-level parameters, mineral resource and/or reserve estimates, the cost of development, mine plans and mining methods, dilution and mining recoveries, processing method and rates and production rates, projected metallurgical recovery rates, infrastructure requirements, capital, operating and sustaining cost estimates, the projected life of mine and other expected attributes of the properties, the net present value, the timing of any environmental assessment processes, changes to configuration that may be requested as a result of stakeholder or government input to the environmental assessment processes, government regulations and permitting timelines, and reclamation obligations; the anticipated use of proceeds of the Public Offering; the timing for completion, settlement and closing of the Public Offering; the satisfaction of the conditions to closing of the Public Offering, including receipt in a timely manner of regulatory and other required approvals and clearances, including the approval of the TSX; the plan of distribution for the Public Offering; the ability to repay the debt financing components of the Franco-Nevada financing package; the anticipated effect of the Transaction on the consolidated capitalization of the Company following the completion of the Public Offering; receipt of shareholder approvals; statements or information concerning the future financial or operating performance of the Company and its business, operations, properties and condition, resource potential, including the potential quantity and/or grade of minerals, or the potential size of a mineralized zone; potential expansion of mineralization; the timing and results of future resource and/or reserve estimates; the timing of other exploration and development plans at the Company's mineral project interests and at Porcupine; the proposed timing and amount of estimated future production and the illustrative costs thereof; requirements for additional capital; environmental risks; general business and economic conditions; delays in obtaining, or the inability to obtain, third-party contracts, equipment, supplies and governmental or other approvals; changes in law, including the enactment of mining law reforms in Mexico; accidents; labour disputes; unavailability of appropriate land use permits; changes to land usage agreements and other risks of the mining industry generally; the inability to obtain financing required for the completion of exploration and development activities; changes in business and economic conditions; international conflicts; other factors beyond the Company's control; and those factors included herein and elsewhere in the Company's public disclosure. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. See the section entitled "Risk Factors" in the prospectus supplement and the accompanying base shelf prospectus, and in the section entitled "Risk Factors" in the Company's annual information form dated as of March 28, 2024 for the financial year ended December 31, 2023, for additional risk factors that could cause results to differ materially from forward-looking statements. There can be no assurance that such information will prove to be accurate as actual developments or events could cause results to differ materially from those anticipated. These include, among others, the factors described or referred to elsewhere herein, and include unanticipated and/or unusual events. Many of such factors are beyond the Company's ability to predict or control. The forward-looking information included in this presentation is expressly qualified by the foregoing cautionary statements. Readers of this presentation are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, unless required under applicable laws. This forward-looking information should not be relied upon as representing management's views as of any date subsequent to the date of this presentation. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed and are based on the results of a preliminary economic assessment which is preliminary in nature. Please refer to the Cautionary Language set out in Slide 3
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DSV 3 Additional Cautionary Language Third Party Information: This presentation includes market and industry data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information. No Investment Advice: This presentation is not, and is not intended to be, an advertisement, prospectus or offering memorandum, and is made available on the express understanding that it does not contain all information that may be required to evaluate and will not be used by readers in connection with, the purchase of or investment in any securities of any entity. This presentation accordingly should not be treated as giving investment advice and is not intended to form the basis of any investment decision. It does not, and is not intended to, constitute or form part of, and should not be construed as, any recommendation or commitment by the Company or any of its directors, officers, employees, direct or indirect shareholders, agents, affiliates, advisors or any other person, or as an offer or invitation for the sale or purchase of, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities, businesses and/or assets of any entity, nor shall it or any part of it be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever. Readers should not construe the contents of this presentation as legal, tax, regulatory, financial or accounting advice and are urged to consult with their own advisers in relation to such matters. No Reliance: This presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate the transaction or entities described herein. No representation or warranty, express or implied, is given and, so far as is permitted by law and no responsibility or liability is accepted by any person, with respect to the accuracy, fairness or completeness of the presentation or its contents or any oral or written communication in connection with the transaction described herein. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed for any purpose whatsoever on any projections, targets, estimates or forecasts or any other information contained in this presentation. In providing this presentation, the Company does not undertake any obligation to provide any additional information or to update or keep current the information contained in this presentation or any additional information or to correct any inaccuracies which may become apparent. Non-IFRS Measures: The Company uses a variety of financial measures to evaluate its performance including both International Financial Reporting Standards ("IFRS") and certain non-IFRS measures that we believe provide useful information to investors regarding the Company's financial condition and results of operations. Readers are cautioned that non-IFRS measures often do not have any standardized meaning, and therefore, are unlikely to be comparable to similar measures presented by other companies. See the section entitled "Financial Information and non-GAAP Measures" in the Company's Management’s Discussion and Analysis for the three months and nine months ended September 30, 2024 (the "MD&A"). In this presentation, such non-IFRS measures include, among others: all-in sustaining costs (AISC) and free cash flow (which are described further in the MD&A). Qualified Persons: The scientific and technical information included in this presentation is derived from the Porcupine Technical Report (as defined herein), which was prepared by Mr. Eric Kallio, P.Geo., an independent consultant to the Company, Mr. Pierre Rocque, P.Eng. of Rocque Engineering Inc., and Dr. Ryan Barnett, P.Geo. of Resource Modelling Solutions Inc. Messrs. Kallio, Rocque and Barnett are independent "Qualified Persons" ("QPs") as such term is defined in NI 43-101. The QP responsible for the Mineral Resource estimates for Hoyle Pond, Borden and Pamour, as provided in the Porcupine Technical Report is Mr. Kallio. The QP responsible for Mineral Resource estimates for Dome as provided in the Porcupine Technical Report is Mr. Barnett. Mr. Rocque acted as QP for the subset of Mineral Resource estimates used in the 2024 LOM plan provided by the Newmont technical services team in the Porcupine Technical Report. Messrs. Kallio, Rocque and Barnett have reviewed and approved the scientific and technical information included in this presentation. Preliminary Economic Assessment Disclaimer: The Porcupine Technical Report (hereinafter defined) includes the results of a preliminary economic assessment which is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized.
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DSV Accretive acquisition with consideration of $275M at closing, including $200M in cash and $75M of Discovery equity3, and $150M of deferred consideration ~$575M4 Financing Package on favourable terms provides DSV with significant balance sheet strength C Note: All dollar amounts in this presentation are expressed in US dollars, unless otherwise indicated. 1. All scientific and technical information, including operating and financial data for the Porcupine Complex in this presentati on are supported by the technical report entitled, “Porcupine Complex, Ontario, Canada, Technical Report on Preliminary Economic Assessment”, with an effective date of January 13, 2025 (the “Porcupine Technical Report ” or the “PEA”), which was filed on January 28, 2025, at www.sedarplus.ca, unless otherwise indicated. 2. Economic returns in the Porcupine Technical Report are generated using CIBC World Markets Inc.’s December 2024 consensus gold price estimates, which include: 2025: $2,576/oz; 2026: $2,484/oz; 2027: $2,437/oz; 2028 and beyond: $2,150/oz. Assumes a CAD:US D rate of 0.75x. 3. A total of approximately 120 million of Discovery common shares to be issued to Newmont at a price of per share of C$0.90 (ap proximately $0.63). 4. Includes $100M senior debt facility that is assumed to be undrawn. Highly-experienced management team that knows Timmins and the Porcupine Complex and is committed to growing production, lowering costs and achieving exploration success Combines quality gold Complex in historic Timmins Camp with management team highly- experienced operating in the area Creates a new Canadian growing gold producer, ~285 koz/yr (average Years 1-10), Base Case NPV of $1.2B1,2 or $2.2B using fixed $2,700/oz gold price, with growth potential 4 Right Assets Right Terms Right Team Porcupine Complex – Transformational Acquisition & Value Creation Opportunity
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DSV Transaction Overview Transaction ▪ Discovery to acquire from a wholly owned subsidiary of Newmont all the issued and outstanding common shares in a newly created entity (the “Reorganization”) formed to hold Newmont’s 100% interest in the Porcupine Complex (the “Transaction”) Consideration ▪ Upfront cash of $200M payable on completion ▪ Upfront equity totaling $75M payable through the issuance of 120 million Discovery common shares upon completion (at same price as bought deal public offering) and subject to a one-year lock-up ▪ Four annual cash payments of $37.5M commencing on December 31, 2027 Approvals ▪ Discovery shares issued to Newmont that exceed 25% of Discovery’s current shares outstanding is subject to shareholder approval (50.1% of shares voting at the meeting).1 o Voting support agreements in place representing ~35% of the issued and outstanding Discovery shares ▪ Completion of Reorganization (requires consent of Ontario Minister of Mines) ▪ Regulatory approvals (including the TSX and under the Competition Act (Canada)) and other customary closing conditions Timing ▪ Acquisition completion expected in the first half of 2025 5 1. If shareholder approval is not obtained, the value of the Discovery shares that were to be issued to Newmont in excess of 25% will be added to the first deferred payment due on December 31, 2027 in the form of cash.
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DSV $400M Franco-Nevada Royalty and Debt Financing $200M LOM Royalty $100M Repayable Royalty $100M Debt Facility • 2.25% life-of-mine net smelter return royalty (the “LOM Royalty”) • Applies to all mineral produced from the Porcupine Complex • Establishes a long-term strategic partnership with Franco-Nevada • 2.00% net smelter return royalty (the “Repayable Royalty”) • Applies to all minerals from the Porcupine Complex • Will be extinguished upon the earlier of: • Franco-Nevada receiving payments from production attributable to the Repayable Royalty equal to 72,000oz of gold • Receipt by Franco-Nevada of a one-time early cash payment equal to 12% pre-tax internal rate of return • $100 million senior debt facility (the “Debt Facility”) to fund capital expenditures and support working capital • Funds available for 2 years after transaction close; maturity date of 7 years and one day from transaction close • Interest rate of three-month SOFR + 450 bps per annum • No principal repayments required for first 5 years, followed by eight quarterly payments equal to 5% of the balance outstanding and a bullet payment equal to 60% • Applicable upfront fee of 2% on any principal drawn, and a standby fee of 100 bps per annum on undrawn funds • Discovery to issue approximately 3.9 million warrants to Franco-Nevada with an exercise price of C$0.95 per warrant and a three-year term • Debt Facility will be secured, including first ranking security interest on the Porcupine Complex if drawn 6
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DSV Transaction Sources & Uses Significant excess liquidity to fund future exploration, development capital, and other funding initiatives to support and grow the Porcupine Complex Note: Sources and uses based on cash only items (i.e., excludes share consideration). 1. Total gross proceeds of C$247.5 million, including full exercise of underwriters’ overallotment option. See press release ent itled, “Discovery Announces Completion of C$247.5 Million Bought Deal Public Offering of Subscription Receipts,” dated February 3, 2025. 2. Estimated transaction costs based on acquisition consideration, bought deal public offering, and assumptions on timing of tra nsaction close. 3. Estimated cash collateral requirements. Cash Sources Cash Uses Franco-Nevada 2.25% Royalty $200 Upfront Proceeds to Newmont $200 Franco-Nevada Repayable Royalty $100 Acquisition Costs2 $30 Bought Deal Public Offering $1751 Surety Bond Collateral3 $75 Cash to Discovery Balance Sheet $170 Total Sources $475 Total Uses $475 Undrawn Senior Debt Facility $100 7
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DSV Porcupine – Quality Complex in a Tier 1 Gold Camp Porcupine Complex Locations Site Locations in Timmins Close to 70 Moz produced1 with large resource base and substantial exploration upside Borden: U/G mine on large, under-explored land position • 105 koz/year for 8-year mine life and potential for more Hoyle Pond: One of Canada’s highest-grade gold mines • 4 Moz @ ~11 g/t since 1987 – Excellent track record of replacing reserves • 10-year remaining mine life @ ~65 koz/year with significant upside potential Pamour: New open-pit mine currently under development • ~150 koz/year for 22 years commencing in 2025 Dome: 11 Moz inferred Mineral Resource2 & large milling facility • 3.9 Mtpa mill with optimization potential • Opportunity to resume mining operations with large resource base A D C B 1. Refers to production from the Porcupine Complex since production commenced at Dome in 1910. 2. Inferred Mineral Resources at Dome not included in PEA economic analysis. 8
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DSV PEA Highlights Substantial Value & Growth Potential 1. Example of Non-IFRS Measure. 2. See full listing of Mineral Resources, with accompanying footnotes, in Appendix 4. Mineral Resources. 3. PEA economic analysis does not include the 11.0 Moz of Inferred Mineral Resources at Dome. 4. Net of royalty payments made in connection to Franco Nevada’s 2.25% LOM NSR royalty and 2.00% repayable royalty. 9 Porcupine – Quality Complex in a Tier 1 Gold Camp ▪ ~285 koz/year of average annual production over 22 year mine life ▪ $1,504/oz average annual AISC1 with significant potential for improvement ▪ 3.9 Moz Measured & Indicated Mineral Resource2 ▪ 12.5 Moz Inferred Mineral Resource2 $1.2B After-tax NPV5% 3,4 Base Case Analyst Consensus $2.2B After-tax NPV5% 3,4 Fixed $2,700/oz gold price
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DSV 37 74 115 141 144 157 166 167 185 158 148 164 174 134 134 165 169 140 171 182 204 149 93 61 66 51 57 68 53 73 104 69 60 21 124 120 104 103 108 125 99 63 23 222 259 270 300 320 335 338 334 277 218 169 164 174 134 134 164 168 140 171 182 204 149 93 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2036E 2037E 2038E 2039E 2040E 2041E 2042E 2043E 2044E 2045E 2046E 2047E Pamour Hoyle Borden Opportunities: • Increase production & extend mine life at Hoyle Pond, Borden, Pamour • Add new production sources (Dome, TVZ, Paymaster, McIntyre, etc) • Explore for new discoveries in the Timmins Camp Production Profile – Substantial Upside to Base Case PEA results largely based on existing Newmont Plan – DSV targeting growth in production and mine life through optimization, investment & exploration success Annual Gold Production (koz Au)1,2 10 1. Based on recovered ounces. 2. 2025 production estimates presented on a full-year, 100% owned basis..
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DSV PEA Results – Free Cash Flow Free Cash Flow ($M)1 (Base Case – Consensus Pricing2) $35 $91 $124 $142 $148 2026E 2027E 2028E 2029E 2030E 11 1. Example of Non-IFRS Measure. 2. Base case economic returns in the Porcupine Technical Report are generated using CIBC World Markets Inc.’s December 2024 consensus gold price estimates, which include: 2025: $2,576/oz; 2026: $2,484/oz; 2027: $2,437/oz; 2028 and beyond: $2,150/oz. Assumes a CAD:USD rate of 0.75x. 3. Fixed $2,700 per ounce gold price free cash flow case not included in PEA technical report. Total: $540M PEA results largely based on existing Newmont Plan – DSV targeting growth in production and mine life through optimization, investment & exploration success $69 $135 $225 $253 $264 2026E 2027E 2028E 2029E 2030E Free Cash Flow ($M)1,3 (Fixed 2,700/oz Gold Price) Total: ~$945M
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DSV Upside to PEA Base Case Opportunities to increase production, reduce costs, add new sources of production Increase production and extend mine life Reduce unit costs Add new production sources Exploration success 12
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DSV Substantial Upside – Mining Opportunities to increase production, reduce costs, extend mine life 13 • Grade control • Ventilation • Backfill • Optimize workflows • Haulage equipment/contracts • Automation and technology • Exploration potential Borden • Ventilation • Backfill • Grade control • Material handling de-bottlenecking • Automation and technology • Mining methods and equipment selection • Exploration potential PamourHoyle Pond • Waste rock re-handling • Alternatives for truck haulage to Dome Mill • Truck shop at site versus at Dome
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DSV Substantial Upside – Milling Opportunities to increase throughput and reduce costs at Dome Mill 14 Dome Mill Increase throughput • Increase availability and utilization rates Improve recoveries • Reduce solution losses and optimize grind size Tailings disposition • Improve water management Longer-term potential • Reconfiguration of mill circuit
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DSV Substantial Upside – Add New Production Sources Opportunities to add new production sources, reduce reclamation obligations Dome Mine Hoyle Pond TVZ Zone Historic Sites • Large mineralized body adjacent to U/G infrastructure at Hoyle Pond • Plan to complete additional metallurgical testwork and evaluate processing options • 11.0 Moz Inferred Mineral Resource estimated at Dome1 • Mineral Resource reported based an open pit mining assuming production of 20,000 tpd milled 15 1. Inferred Mineral Resources at Dome not included in PEA economic analysis. • Potential for production from Paymaster, McIntyre, other historic sites • Opportunity to reprocess tailings at multiple locations
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DSV Exploration key to growth in production, Mineral Resources and mine life extensions Substantial Upside – Exploration Borden • Depth extensions and open along strike to east and west • Large number of prospects with little or no previous drilling • Remains open at depth and along strike of the old underground workings • Potential to extend mineralization to the north of the current Mineral Resource model • Pamour West open at depth; potential between Pamour and Pamour West Pamour • Upgrade existing Inferred Mineral Resources • Establish Mineral Resources within blocks in/around pit where existing drill density is insufficient • Potential for Mineral Resources amenable to underground mining Dome Hoyle Pond • Multiple near-mine targets: S Zone Deep, S Zone Upper, XMS Zone, TVZ Zone, Owl Creek Zone 16
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DSV Substantial Upside – Exploration – Hoyle Pond Key Targets 17 2 km Exploration key to growth in production, Mineral Resources and mine life extensions • Multiple near-mine targets: S Zone Deep, S Zone Upper, XMS Zone, TVZ Zone, Owl Creek Zone
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DSV Substantial Upside – Exploration – Hoyle Pond Key Targets 18 2 km Exploration key to growth in production, Mineral Resources and mine life extensions • Multiple near-mine targets: S Zone Deep, S Zone Upper, XMS Zone, TVZ Zone, Owl Creek Zone
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DSV Substantial Upside – Exploration – Pamour 19 Exploration key to growth in production, Mineral Resources and mine life extensions
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DSV Substantial Upside – Exploration – Pamour 20 Exploration key to growth in production, Mineral Resources and mine life extensions
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DSV Substantial Upside – Regional Exploration Key Regional Exploration Targets ▪ Multiple targets in Timmins along Destor-Porcupine fault zone ▪ Legacy sites provide numerous opportunities at depth and along strike of the Hollinger–McIntyre trend, Broulan, Coniaurum, Owl Creek Deep, and Paymaster zones ▪ Numerous opportunities at Borden, zones west of Borden ramp and the Roswell East and West zones show prospectivity 21 Exploration key to growth in production, Mineral Resources and mine life extensions
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DSV Sustainability and Stewardship Committed to building on Discovery’s strong track record for responsible mining 22 ▪ Recognize and work constructively with First Nations partners ▪ Support and contribute to the success and welfare of local communities ▪ Recognize the value of people and suppliers and the strength they provide the Porcupine Complex ▪ Demonstrate responsible environmental stewardship o $170M (C$230M) of closure cost obligations related to 13 closure plans o Committed to progressive rehabilitation – don’t wait for closure to deal with obligations o Investments in closure, reclamation and rehabilitation included in PEA economic analysis
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DSV 23 Cordero Silver Project – Mexico ▪ One of world’s largest undeveloped silver reserves ▪ Feasibility study results released in February 20241 o NPV $1.2B at a $22/oz silver price (grows to $2.2B in Years 4) o 37Moz average annual AgEq2 production (Years 1 – 12) o AISC3 averaging <$12.50/oz per year (Years 1 – 8) o Low capital intensity (NPV to initial capital ratio of 2:1) o 19-year production life o Significant socio-economic benefits for Mexico ▪ Environmental impact assessment (“MIA”) submitted in August 2023, awaiting ruling from SEMARNAT Acquisition of Porcupine Complex to support financing and ultimate development of Cordero 1. Details of the Cordero feasibility study are available in the technical report entitled, “Cordero Silver Project, NI 43-101 Technical Report & Feasibility Study, Chihuahua State, Mexico” with an effective date of February 13, 2024, available at www.discoverysilver.com and on SEDAR+ at www.sedarplus.ca. 2. Refers to silver equivalent ounces. 3. Example of Non-IFRS Measure
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DSV Accretive acquisition with consideration of $275M at closing, including $200M in cash and $75M of Discovery equity3, and $150M of deferred consideration ~$575M4 Financing Package on favourable terms provides DSV with significant balance sheet strength C Note: All dollar amounts in this presentation are expressed in US dollars, unless otherwise indicated. 1. All scientific and technical information, including operating and financial data for the Porcupine Complex in this presentati on are supported by the technical report entitled, “Porcupine Complex, Ontario, Canada, Technical Report on Preliminary Economic Assessment”, with an effective date of January 13, 2025 (the “Porcupine Technical Report ” or the “PEA”), which was filed on January 28, 2025, at www.sedarplus.ca, unless otherwise indicated. 2. Economic returns in the Porcupine Technical Report are generated using CIBC World Markets Inc.’s December 2024 consensus gold price estimates, which include: 2025: $2,576/oz; 2026: $2,484/oz; 2027: $2,437/oz; 2028 and beyond: $2,150/oz. Assumes a CAD:US D rate of 0.75x. 3. A total of approximately 120 million of Discovery common shares to be issued to Newmont at a price of per share of C$0.90 (ap proximately $0.63). 4. Includes $100M senior debt facility that is assumed to be undrawn. Highly-experienced management team that knows Timmins and the Porcupine Complex and is committed to growing production, lowering costs and achieving exploration success Combines quality gold Complex in historic Timmins Camp with management team highly- experienced operating in the area Creates a new Canadian growing gold producer, ~285 koz/yr (average Years 1-10), Base Case NPV of $1.2B1,2 or $2.2B using fixed $2,700/oz gold price, with growth potential 24 Right Assets Right Terms Right Team Porcupine Complex – Transformational Acquisition & Value Creation Opportunity
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TSX: DSV | OTCQX: DSVSF | DISCOVERYSILVER.COM DSV Appendix 1 Equity Offering
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DSV $175M Public Offering of Subscription Receipts ▪ Public Offering of subscription receipts (“Subscription Receipts”) of Discovery for gross proceeds of C$247.5M ($175M) ▪ Each Subscription Receipt entitles holder to receive one Discovery common share, without payment of additional consideration and further action, upon closing of Transaction ▪ Full terms and conditions of the Public Offering provided in Prospectus Supplement1 ▪ BMO Capital Markets and SCP Resource Finance LP to act as co-lead underwriters in a syndicate of underwriters, including: Cormark Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., Raymond James Ltd. and Ventum Financial Corp. ▪ Full exercise of Underwriters’ over-allotment option to purchase additional Subscription Receipts representing up to 10% of the base offering ▪ Franco-Nevada participated in Public Offering to a level of C$70M ($50M) (2-year lock-up agreement in place) ▪ Director and officer participation totaling approximately ~C$9M (~$6M) ▪ Public Offering closed on February 3, 2025 1. Refers to the Prospectus Supplement to the Short Form Base Shelf Prospectus Dated March 23, 2023, which was filed on SEDAR+ on January 29, 2025. 26
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TSX: DSV | OTCQX: DSVSF | DISCOVERYSILVER.COM DSV Appendix 2 Regional Geology & Exploration
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DSV Geology – Timmins Area – Structural Plan 28
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DSV Geology – Borden – Project Geology Plan 29
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TSX: DSV | OTCQX: DSVSF | DISCOVERYSILVER.COM DSV Appendix 3 Porcupine Complex – Overview
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DSV 1. Please refer to the Preliminary Economic Assessment Disclaimer on Slide 3. 2. Refers to mineralized material mined and sent to Dome Mill for processing rounded to the nearest tenth. Does not include waste mined. High-grade underground mine with attractive exploration potential Resources Tonnes Grade Ounces (kt) (Au g/t) (koz Au) Measured - - - Indicated 1,167 12.90 484 Total M&I 1,167 12.90 484 Inferred 578 15.24 283 Performance 2025E 2026E 2027E 2028E Material Mined2 (Mt) 0.2 0.2 0.2 0.2 Material Milled (Mt) 0.2 0.2 0.2 0.2 Grade (g/t) 9.99 10.97 9.70 9.90 Recovered Ounces (koz) 61 66 51 57 Hoyle Pond1 31 ▪ 4 Moz produced @ average grade of ~11 g/t since 1987 ▪ Planned mining rate ~500 tpd, hoisting capacity of 2,200 tpd ▪ Mined material trucked 17 km to Dome Mill ▪ Production to average ~65 koz per year with a remining mine life of 10 years based on PEA LOM plan ▪ Opportunities: Improve ventilation, material handling, backfill systems, increase automation (tele-remote), evaluate though additional drilling and studies known zones of mineralization that currently do not have Mineral Resource estimates and were not included the PEA LOM plan (e.g. TVZ) ▪ Key exploration targets include: S Zone Deep, S Zone Upper, XMS, Owl Creek, TVZ
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DSV Underground mine in highly prospective area with camp potential Borden1 ▪ Underground mine in township 20 km from Chapleau, Ontario ▪ Long hole mining method with current mining rate of 2,000 tpd ▪ Mined material is trucked to surface and then 190 km to Dome Mill ▪ Production to average ~105 koz per year over next 8 years ▪ Opportunities: Optimize workflows, upgrade haulage fleet, increase use of electric vehicles, improve ground support and backfill processes, increase supply of fresh air underground ▪ Key exploration targets include: Depth extensions and open along strike to east and west where a large number of prospects have had little or no previous drilling Resources Tonnes Grade Ounces (kt) (Au g/t) (koz Au) Measured 1,471 6.17 292 Indicated 2,274 6.15 449 Total M&I 3,745 6.16 741 Inferred 1,372 5.22 230 Performance 2025E 2026E 2027E 2028E Material Mined2 (Mt) 0.7 0.7 0.7 0.7 Material Milled (Mt) 0.7 0.7 0.7 0.7 Grade (g/t) 5.63 5.39 4.80 4.87 Recovered Ounces (koz) 124 120 104 103 32 1. Please refer to the Preliminary Economic Assessment Disclaimer on Slide 3. 2. Refers to mineralized material mined and sent to Dome Mill for processing rounded to the nearest tenth. Does not include waste mined.
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DSV Pamour1 Open Pit project with substantial exploration potential ▪ Involves layback of existing open pit located 13 km from Dome Mill ▪ To provide feed to Dome Mill through to 2047 ▪ Expected annual production to average 150 koz over a 22-year production life (21 years of mining, additional year of processing stockpiled material) ▪ Opportunities: Reduce/eliminate waste rock rehandling, evaluating potential alternatives to replace truck haulage to the Dome Mill ▪ Key exploration targets include: Open at depth and along strike, potential to extend mineralization to north, potential west towards and at Pamour West Resources Tonnes Grade Ounces (kt) (Au g/t) (koz Au) Measured -- -- -- Indicated 64,755 1.30 2,704 Total M&I 64,755 1.30 2,704 Inferred 23,264 1.34 1,002 Performance 2025E 2026E 2027E 2028E Material Mined2 (Mt) 1.1 2.1 3.2 3.9 Material Milled (Mt) 1.1 2.1 3.2 3.4 Grade (g/t) 1.16 1.18 1.22 1.41 Recovered Ounces (koz) 37 74 115 141 33 1. Please refer to the Preliminary Economic Assessment Disclaimer on Slide 3. 2. Refers to mineralized material mined and sent to Dome Mill for processing rounded to the nearest tenth. Does not include waste mined.
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DSV Dome1 Large mill built in early 1980s, century-old mine with large Inferred Resource ▪ Conventional gold plant, crushing, grinding, cyanide leaching, CIP , and 8 tonne carbon strip / EW circuit ▪ Technical report assumes capacity of 3.9 Mtpa with average recoveries of ~92% ▪ Dome mine produced close to 17 Moz since 1910 ▪ Mine ceased production in 2017 ▪ Significant Inferred Resources remain outside current pit shell ▪ Potential to re-open mine through push back of existing pit to be evaluated Resources2 Tonnes Grade Ounces (kt) (Au g/t) (koz Au) Measured -- -- -- Indicated -- -- -- Total M&I -- -- -- Inferred 229,284 1.49 10,978 34 1. Please refer to the Preliminary Economic Assessment Disclaimer on Slide 3 2. . Inferred Mineral Resources at Dome not included in PEA economic analysis
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DSV PEA Results – Capital Expenditures Average annual capital expenditures of $140M (2025 – 2030) Capital Expenditures ($M) $118 $149 $126 $80 $93 $97 $9 $9 $9 $9 $16 $17 $86 $24 $12 $213 $182 $134 $89 $109 $126 2025E 2026E 2027E 2028E 2029E 2030E Sustaining Capital Exploration Capital Development Capital 35
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TSX: DSV | OTCQX: DSVSF | DISCOVERYSILVER.COM DSV Appendix 4 Mineral Resources
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DSV Mineral Resources 37 Notes: 1. Mineral Resources are reported insitu, using the 2014 CIM Definition Standards. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 2. Mineral Resources have an effective date of 3 December, 2024. The Qualified Person for the Borden, Hoyle Pond and Pamour estimates is Mr. Eric Kallio, P.Geo., an independent Qualified Person. The Qualified Person for the Dome estimate is Dr. Ryan Barnett, P.Geo., an employee of Resource Modelling Solutions. 3. Mineral Resources that are considered amenable to underground mining methods at Borden are constrained within conceptual mineable shapes that use the following input parameters: gold price of US$2,000/oz Au, mining costs of US$120.08/t mined, process costs of US$18.30/t processed, general and administrative costs of US$31.58/t processed, variable metallurgical recoveries by mining zone ranging from 81.08–93.64%, refining costs of US$0.98/oz Au, dilution percentages that vary by mining zone, ranging from 18–25%, and a 4.6% royalty. Mineral Resources are reported at varying cut-off grades by mining zone, ranging from 3.3–4.2 g/t Au. 4. Mineral Resources that are considered amenable to open pit mining methods at Dome are constrained within a pit shell that uses the following input parameters: gold price of US$2,000/oz Au, mining costs of US$3.85/t mined, process costs of US$18.75/t processed, general and administrative costs of US$3.86/t processed, average 91% metallurgical recovery, refining costs of US$0.94/oz Au, and pit slope angles of 45º. Mineral Resources are reported above a 0.40 g/t Au cut-off. 5. Mineral Resources that are considered amenable to underground mining methods at Hoyle Pond are constrained within conceptual stope designs that use the following input parameters: gold price of US$2,000/oz Au, mining costs of US$371.55/t mined assuming longitudinal long-hole retreat methods and US$277.33/t mined assuming underhand cut-and-fill methods, process costs of US$45.01/t processed, general and administrative costs of US$47.05/t processed, average 94.3% metallurgical recovery, refining costs of US$0.98/oz Au, dilution percentages that vary by zone and mining method, ranging from 12–194%, and a royalty of 8.0%. The Mineral Resource estimate is reported at a cut-off grade of 12.3 g/t Au in the stopes assumed to be mined using longitudinal long- hole retreat methods and 6.05 g/t Au in the stopes assumed to be mined using underhand cut-and- fill. 6. Mineral Resources that are considered amenable to open pit mining methods at Pamour are constrained within a pit shell that uses the following input parameters: gold price of US$2,000/oz Au, mining costs of US$5.50/t mined, process costs of US$23.70/t processed, general and administrative costs of US$10.47/t processed, average 91% metallurgical recovery, refining costs of US$0.94/oz Au, and pit slope angles of 25º in overburden and 45º in rock. Mineral Resources are reported above a 0.53 g/t Au cut-off. 7. Estimates have been rounded. Grades and contained metal content are presented as weighted averages. 8. The preliminary assessment is preliminary in nature and includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized. Mineral Resources Tonnes Gold Grade Contained Ounces (kt) (g/t Au) (koz Au) Hoyle Pond - - - Borden 1,471 6.17 292 Pamour - - - Dome - - - Total Measured Resources 1,471 6.17 292.0 Hoyle Pond 1,167 12.90 484 Borden 2,274 6.15 449 Pamour 64,755 1.30 2,704 Dome - - - Total Indicated Resources 68,196 1.66 3,640.0 Hoyle Pond 1,167 12.90 484 Borden 3,745 6.16 741 Pamour 64,755 1.30 2,704 Dome - - - Total Measured & Indicated Resources 69,667 1.76 3,931.9 Hoyle Pond 578 15.24 283 Borden 1,372 5.22 230 Pamour 23,264 1.34 1,002 Dome 229,284 1.49 10,978 Total Inferred Resources 254,499 1.53 12,493.5