Initiating at Outperform; Revitalizing a Legacy American Silver Asset

Research evidence excerpt

Initiating at Outperform; Revitalizing a Legacy American Silver Asset

Exhibit 11 - Underground Development in the Upper Country Area Exhibit 12 - Underground Development in the Upper Country Area

During BMO's Site Visit During BMO's Site Visit

Source: BMO Capital Markets Source: BMO Capital Markets

Downstream Processing Strategy Introduces Strategic Optionality

The potential to bring SSMR has the potential to become a producer of refined silver and antimony metal through the

online a silver refinery refurbishment of the Sunshine Silver/Copper Refinery and construction of an antimony plant adjacent to

and antimony plant are the refinery. The company owns the past-producing refinery facility located one mile from the Sunshine

unique attributes of SSMR mine. Refurbishment of the plant is estimated to cost approximately $90 million to reach production of

compared to other silver 30,000 ounces of silver per day, or a nameplate capacity to produce approximately 10 million ounces

developers. of refined silver per year. This metal could be directly sold to consumers or on commodity markets,

likely resulting in improved margins for SSMR and reduced reliance on downstream supply chains. At

10Mozpa, the refinery would be sized to handle the entirety of Sunshine's silver production.

Directly adjacent to the refinery is the antimony plant site. The Sunshine complex historically

featured an antimony plant, and although the plant has been demolished, SSMR retains the permitted

ability to produce refined antimony metal at the site. The company is evaluating construction of a new

antimony plant that could process antimony from the Sunshine complex, as well as potentially toll-

treating antimony concentrates from third-party sources. The plant could be sized to produce up to