Discovery Reports Third Quarter 2024 Financial Results

TORONTO, Nov. 12, 2024 - Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) ("Discovery" or the "Company") today announced financial results for the three months ("Q3 2024") and nine months ("YTD 2024") ended September 30, 2024. All figures are stated in Canadian dollars unless otherwise noted.

Tony Makuch, CEO, commented: "As a precious metals company focused on creating value, it is a great time to be advancing one of the world's largest silver development projects, with market fundamentals pointing to continued deficits and diminishing inventories. Our Cordero project ("Cordero" or the "Project") is a large-scale project that can help meet the growing demand for silver in key areas like solar, battery electric and other forms of green energy, medicine and pharmaceuticals given its anti-bacterial qualities, food preservation, water purification, as well as its traditional role as a store of value in uncertain times.

"The Cordero Feasibility Study (the "Feasibility Study") was issued in February and clearly established Cordero as a future industry leader. The Project has a reserve of 302 million ounces of silver, expected annual silver equivalent ("AgEq")¹ production of 37 million ounces ("Moz") over the first 12 years, low unit costs, attractive economics and tremendous leverage to higher silver prices. The robust economics included in the Feasibility Study included a net present value ("NPV5%") of US$1.2 billion using a silver price of US$22 per ounce. At current metals prices, Cordero's NPV5% increases to $2.1 billion, and grows to US$3.2 billion in Year 4, when we complete the Project to its full capacity.

"In Mexico, we have been encouraged by the efforts of President Claudia Sheinbaum's government to emphasize both the importance of foreign investment to Mexico's economy and the role that industry can play in supporting areas like advancing energy transition and improving water treatment and availability. In addition to creating thousands of jobs and committing billions of dollars for investment, local procurement and tax payments in Mexico, we are also evaluating investments that will support the use of solar, battery electric, trolley assist, 5G wireless networks and AI wherever practical. In terms of water, the Feasibility Study includes investments to upgrade the local water treatment plant, which will provide water for the mine and also increase the amount of treated water in the community.

"A key highlight of the third quarter was the release of our 2023 ESG Report, which documents an important year of achievement in responsible mining. Our success last year was recognized with a number of awards and distinctions, including receiving the Quality Environmental Certification from the Mexican Government's Federal Attorney's Office for Environmental Protection ("PROFEPA"), the Socially Responsible Enterprise Distinction from the Mexican Center for Philanthropy, and the Great Place to Work Certification. As we continue to work through the permitting process, we are proud of our many accomplishments and are looking forward to advancing Cordero into development and operation for the benefit of all our stakeholders."

2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT ("ESG REPORT")

On August 22, 2024, Discovery released its 2023 ESG Report, highlighting the Company's current practices and priorities going forward.

Among the achievements highlighted in the ESG Report were the receipt of awards and distinctions as described below.

• Quality Environmental Certification: Awarded by PROFEPA, which recognizes companies that achieve full compliance with all environmental regulations. Discovery was the only mining company to receive this certification in 2023.
• Socially Responsible Enterprise ("ESR") Distinction: Received for the second consecutive year from the Mexican Center for Philanthropy. The ESR honours companies for outstanding performance in five key areas, business ethics, community engagement, protection and preservation of the environment, quality of life for employees and corporate social responsibility.
• Great Place to Work Certification: Received for the second consecutive year, which is an internationally recognized distinction for companies creating an outstanding employee experience.
  

Other key highlights of the 2023 ESG Report include:

• $19.2 million of goods and services purchased from local Mexican businesses;
• $5.0 million in salaries and benefits paid to local employees;
• Workforce of 85, including 69 employees and 16 contractors;
  • 88% of workforce located in Mexico with almost all employees from Chihuahua State
• $193,000 invested directly in the communities around Cordero;
• 26 hours of health, safety and emergency response training provided on average per employee;
• Zero reportable environmental incidents; and,
• 21.09 GJ of renewable energy generated using solar panels.

FEASIBILITY STUDY HIGHLIGHTS:

• Feasibility Study: Results of the Feasibility Study for Cordero were released on February 20, 2024.
  • Large-scale, long-life, low-cost production: 19-year life-of-mine ("LOM") with average annual production of 37 Moz AgEq in Years 1 - 12, and average all-in sustaining costs² under US$12.50 per AgEq ounce in Years 1 - 8.
  • Attractive returns: NPV5% of US$1.2 billion at US$22 per ounce silver, which increases to US$2.2 billion in Year 4 when the Project reaches final completion to 51,000 tonnes per day.
  • Tremendous leverage to silver prices: NPV5% increases 81%, to US$2.1 billion, using current metal prices as of November 11, 2024³ and grows to US$3.2 billion in Year 4 (5.2x initial capital expenditures).
  • Substantial benefits for Mexico: Total investment of US$1.4 billion (including a US$606 million initial investment), 2,500 direct jobs created during construction, peak employment of over 1,000 direct jobs during operation, an estimated US$4.0 billion of goods and services purchased and expected tax payments of approximately US$2.3 billion within Mexico (at current metal prices as of November 11, 2024).
  • Industry-leading environmental standards: Third-party reviews of proposed environmental practices completed to ensure compliance with industry-leading standards; US$130 million budgeted for site restoration and rehabilitation; and significant investment to promote green energy sources and to bring infrastructure and technology to improve water treatment with treated water to be the primary source of water for the Project.

1. Please see the Technical Disclosure section of this news release for more information related to AgEq production.
2. Non-GAAP Measure. Please see the Technical Disclosure and Non-GAAP Measures sections of this news release.
3. Current spot metal prices as at November 11, 2024 include silver: US$30.64 per ounce; gold: US$2,619 per ounce, zinc: US$1.35 per pound and lead: US$0.92 per pound versus Feasibility Study prices of silver: US$22.00 per ounce; gold: US$1,600 per ounce; zinc: US$1.20 per pound; lead: US$1.00 per pound.

SELECTED FINANCIAL DATA:
The following selected financial data is taken from the Company's unaudited condensed interim consolidated financial statements (the "Financial Statements") and the Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2024.

The Company's Financial Statements and MD&A are available at www.discoverysilver.com and on SEDAR+ at www.sedarplus.ca.

(1) _{Defined as current assets less current liabilities from the Company's consolidated financial statements.}

ABOUT DISCOVERY Discovery is a precious metals company engaged in the acquisition, development and operation of high-quality assets. The Company's flagship asset is its 100%-owned Cordero project, one of the world's largest undeveloped silver deposits, which is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico. The Feasibility Study completed in February 2024 demonstrates that Cordero has the potential to be developed into a large-scale, long-life project that generates attractive economic returns and delivers substantial socio-economic benefits for local stakeholders. In developing and operating Cordero, important priorities will be maximizing the use of green energy sources, such as electric vehicles and solar power, as well as contributing to improved water treatment infrastructure in the area surrounding the Project.

On Behalf of the Board of Directors,

Tony Makuch, P.Eng
President, CEO & Director

For further information contact:
Mark Utting, CFA
VP Investor Relations
Phone: 416-806-6298
Email: mark.utting@discoverysilver.com
Website: www.discoverysilver.com

Qualified Person Gernot Wober, P.Geo, VP Exploration, Discovery Silver Corp. and Pierre Rocque, P.Eng., an independent consultant to the Company, both "Qualified Persons" as such term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), are the Company's designated Qualified Persons for this news release within the meaning of NI 43-101. Mr. Wober and Mr. Rocque have reviewed and validated that the information contained in this news release is accurate.

Technical Disclosure

• The Feasibility Study project team was led by Ausenco Engineering Canada ULC ("Ausenco"), with support from AGP Mining Consultants Inc. ("AGP"), WSP USA Inc. ("WSP") and RedDot3D Inc.
• Mineral resources that are not mineral reserves do not have demonstrated economic viability.
• A full technical report has been prepared in accordance with NI 43-101 and was filed on SEDAR on March 28, 2024.
• AgEq produced is metal recovered in concentrate. AgEq payable is metal payable from concentrate. AgEq produced and AgEq payable are calculated as Ag + (Au x 72.7) + (Pb x 45.5) + (Zn x 54.6); these factors are based on metal prices of Ag - $22/oz, Au - $1,600/oz, Pb - $1.00/lb and Zn - $1.20/lb.
• AISC is calculated as: [Operating costs (mining, processing and G&A) + Royalties + Concentrate Transportation + Treatment & Refining Charges + Concentrate Penalties + Sustaining Capital (excluding $37M of capex for the initial purchase of mining fleet in Year 1)] / Payable AgEq ounces.
  

NON-GAAP MEASURES:
The Company has included certain non-GAAP performance measures and ratios as detailed below. In the mining industry, these are common performance measures and ratios but may not be comparable to similar measures or ratios presented by other issuers and the non-GAAP measures and ratios do not have any standardized meaning. Accordingly, these measures and ratios are included to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Total cash costs per ounce, all-in sustaining costs, and free cash flow, are all forward-looking non-GAAP financial measures or ratios. As the Cordero Project is not in production, these prospective non-GAAP financial measures or ratios may not be reconciled to the nearest comparable measure under IFRS and there is no equivalent historical non-GAAP financial measure or ratio for these prospective non-GAAP financial measures or ratios. Each non-GAAP financial measure and ratio used herein is described in more detail below.

TOTAL CASH COSTS
The Company calculated total cash costs per ounce by dividing the sum of operating costs, royalty costs, production taxes, refining and shipping costs, net of by-product silver credits, by payable ounces. While there is no standardized meaning of the measure across the industry, the Company believes that this measure is useful to external users in assessing operating performance.

ALL-IN SUSTAINING COSTS
The Company has provided an all-in sustaining costs performance measure that reflects all the expenditures that are required to produce an ounce of silver from operations. While there is no standardized meaning of the measure across the industry, the Company's definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its updated Guidance Note issued in 2018. The Company believes that this measure is useful to external users in assessing operating performance and the Company's ability to generate free cash flow from current operations. Subsequent amendments to the guidance have not materially affected the figures presented.

FREE CASH FLOW
Free Cash Flow is a non-GAAP performance measure that is calculated as cash flows from operations net of cash flows invested in mineral property, plant, and equipment and exploration and evaluation assets. The Company believes that this measure is useful to the external users in assessing the Company's ability to generate cash flows from its mineral projects.

FORWARD-LOOKING STATEMENTS:
Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release is not for distribution to United States newswire services or for dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available. Cautionary Note Regarding Forward-Looking Statements This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although Discovery believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Statements include but are not limited to the feasibility of the Project and its attractive economics and significant exploration upside; construction decision and development of the Project, timing and results of the feasibility study and the anticipated capital and operating costs, sustaining costs, net present value, internal rate of return, the method of mining the Project, payback period, process capacity, average annual metal production, average process recoveries, concession renewal, permitting of the Project, anticipated mining and processing methods, feasibility study production schedule and metal production profile, anticipated construction period, anticipated mine life, expected recoveries and grades, anticipated production rates, infrastructure, social and environmental impact studies, the completion of key de-risking items, including the timing of receipt permits, availability of water and power, availability of labour, job creation and other local economic benefits, tax rates and commodity prices that would support development of the Project, and other statements that express management's expectations or estimates of future performance, operational, geological or financial results Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in the results of the feasibility study are also forward-looking statements in that they reflect a prediction of the mineralization that would be encountered, and the results of mining, if a mineral deposit were developed and mined. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties.

Factors that could cause actual results to differ materially from those described in forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions, the actual results of current and future exploration activities; changes to current estimates of mineral reserves and mineral resources; conclusions of economic and geological evaluations; changes in project parameters as plans continue to be refined; the speculative nature of mineral exploration and development; risks in obtaining and maintaining necessary licenses, permits and authorizations for the Company's development stage and operating assets; operations may be exposed to new diseases, epidemics and pandemics, including any ongoing or future effects of COVID-19 (and any related ongoing or future regulatory or government responses) and its impact on the broader market and the trading price of the Company's shares; provincial and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for operations) in Mexico, all of which may affect many aspects of the Company's operations including the ability to transport personnel to and from site, contractor and supply availability and the ability to sell or deliver mined silver; changes in national and local government legislation, controls or regulations; failure to comply with environmental and health and safety laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms); disruptions in the maintenance or provision of required infrastructure and information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance); changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar and Mexican peso); the impact of inflation; geopolitical conflicts; employee and community relations; the impact of litigation and administrative proceedings (including but not limited to mining reform laws in Mexico) and any interim or final court, arbitral and/or administrative decisions; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; delays in construction decisions and any development of the Project; changes with respect to the intended method of mining and processing ore from the Project; inherent risks and hazards associated with mining and mineral processing including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; the risk that the Company's mines may not perform as planned; uncertainty with the Company's ability to secure additional capital to execute its business plans; contests over title to properties; expropriation +or nationalization of property; political or economic developments in Canada and Mexico and other jurisdictions in which the Company may carry on business in the future; increased costs and risks related to the potential impact of climate change; the costs and timing of exploration, construction and development of new deposits; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws. The risks and uncertainties that may affect forward-looking statements, or the material factors or assumptions used to develop such forward-looking information, are described under the heading "Risks Factors" in the Company's Annual Information Form dated March 28, 2024, which is available under the Company's issuer profile on SEDAR+ at www.sedarplus.ca.