Sierra Madre Gold and Silver (SM) Nordic Funds & Mines Conference 2024 summary

Operational highlights

• Began production at La Guitarra mine on June 25, achieving continuous operation since then.

• Production ramped from 270 to 350 tons per day, targeting 500 tons per day by year-end and full commercial production for 2024.

• Plant infrastructure supports future expansion to 1,200–1,500 tons per day, with upgrades planned using cash flow.

• Current output generates $300,000–$350,000 in weekly revenue, with strong demand for silver concentrate.

• Achieved production 11 months ahead of schedule, with plans to maintain 500 tons per day through 2025.

Resource and exploration potential

• Tripled historical resource to over 50 million ounces of silver through extensive drilling.

• Land package covers 30,000 hectares, including eight former mines and over 60 km of identified vein material.

• Focused on expanding underground mining and opening new phases to sustain and grow production.

• East District offers significant untapped potential, with historic mines idle for over a century.

• Preparing for a major drill program in the East District, targeting further resource growth.

Financial and corporate structure

• Acquired La Guitarra in an all-share deal; First Majestic is the largest shareholder at 44%.

• Raised CAD 10 million to cover budget shortfall, secured a short-term loan from First Majestic with favorable terms.

• Market cap increased following production milestones; 152 million shares outstanding, no warrants, and strong insider ownership.

• Cash on hand is CAD 3 million, with an additional CAD 2 million in VAT receivables expected.

• Analyst targets range from CAD 0.75 to CAD 1.30 per share, reflecting recent operational progress.