Sierra Madre Gold and Silver (SM) Corporate presentation summary

Strategic growth and asset expansion

• La Guitarra mine achieved full commercial production in January 2025, with expansion phases planned for Q2 2026 and Q3 2027 to double current capacity, fully funded from cash flow.

• Acquisition of Del Toro mine from First Majestic for up to $60M in cash and shares, with production restart targeted for mid-2028 and a 30,000m drill program beginning in 2026.

• Both assets are fully permitted, with La Guitarra operating a 500 tpd mill and Del Toro featuring a 3,000 tpd flotation circuit and extensive underground development.

• Strategic and institutional investors include First Majestic, Commodity Capital, Franklin Templeton, and Eric Sprott.

Operational and financial performance

• Q3 2025 saw silver equivalent production of 152,498 oz, revenues of $5.52M, and adjusted EBITDA of $1.86M, with improving financials expected as power issues subside and new mines ramp up.

• All-in sustaining cost per AgEq ounce sold was $34.42 in Q3 2025, with ongoing efforts to improve cost structure.

• La Guitarra’s process plant is operating at full capacity, with backup power generation planned to mitigate future outages.

Resource growth and exploration

• La Guitarra’s 2023 resource update reported 27.2M AgEq oz indicated (+373%) and 20.2M AgEq oz inferred (+204%), with Coloso mine grades significantly higher than Guitarra.

• District-wide exploration at La Guitarra includes a $3.5M program and a 20,000–25,000m drill campaign in the East District starting H2 2026.

• Del Toro’s historic resource (2020) includes 7.6M AgEq oz M&I and 11.2M AgEq oz inferred, with a $12M exploration budget over 24–30 months and a new resource report expected by early 2028.

• Tepic project offers over 15km of strike length potential, with recent drilling returning high-grade silver and gold intercepts.