# Q2 MD&A

Source Brief: https://evesgoldminers.com/research/source-briefs/silver-mountain-resources-inc-q2-md-and-a-1e448814
Original source: https://agmr.ca/wp-content/uploads/2026/08/AgMR-MDA-Q226.pdf
EGM generated: 2026-09-27
Company: Silver Mountain Resources Inc. (AGMR)

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## Extracted Document Text

# Q2 MD&A

Source: https://agmr.ca/wp-content/uploads/2026/08/AgMR-MDA-Q226.pdf
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## Content

# Q2 MD&A
SILVER MOUNTAIN RESOURCES INC.
& Analysis
For the three and six months ended June 30, 2026 and 2025
(Expressed in US dollars)
SILVER MOUNTAIN RESOURCES INC.
and Analysis
For the three and six months ended June 30, 2026 and 2025
(Expressed in US dollars, except where noted)
INTRODUCTION
of
Silver Mountain Resources Inc. ("Ag
and six months ended June 30, 2026 and 2025. This
MD&A has been prepared in compliance with the requirements of National Instrument 51-102 Continuous Disclosure
Obligations.
statements and related notes for the three and six months ended June 30, 2026 and 2025
audited consolidated financial statements and notes thereto as at December 31, 2025 and 2024.
financial statements are prepared in accordance with
These financial statements are prepared in accordance with International Accounting
Standard 34 Interim Financial Reporting.
The results for the period presented are not necessarily indicative of the results that may be expected for any future period. The
vely.
The six months ended June 30, 2026 and 2025 6 5
All monetary amounts in the MD&A are expressed in United States dollars, the presentation currency of the Company, except
number of shares, or as otherwise indicated.
sol. The functional currency of the Company and its subsidiary is disclosed in the notes to the Financial Statements.
This MD&A has been prepared effective as of August 14, 2026 ( .
untrue statement of a material fact or omit to state a material fact required to be stated, or that is necessary to make a statement
no ial
Statements together with the other financial information included in the filings fairly present, in all material respects, the financial
condition, financial performance and cash flows of the Company as of the date of, and for the periods presented.
On March 28, 2025, the Company consolidated all of the issued and outstanding class A common shares of the Company on the
basis of one (1) post-consolidation class A common share for every fifteen (15) pre-consolidation class A common share (the
number of common shares, loss per share, stock options and warrants presented in the Financial Statements and this MD&A
have been retrospectively adjusted to reflect the Share Consolidation.
This MD&A contains forward-looking statements and should be read in conjunction with the risk factors described in the "Risks
and Uncertainties" and the "Cautionary Note Regarding Forward-Looking Information" sections at the end of this MD&A and as
described in the annual information form of the Company dated April 30, 2026 for the year ended December 31, 2025 (the "AIF").
Additional information regarding the Company is available on SEDAR+ at www.sedarplus.ca
www.agmr.ca.
QUALIFIED PERSON
Unless otherwise stated, the scientific and technical information contained in this MD&A has been reviewed and approved by
Gerardo Acuña, P. Geo, MAIG 7065, a consultant of the Company and a "qualified person" within the meaning of National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Acuña is independent of the Company within
the meaning of Section 1.5 of NI 43-101.
DESCRIPTION OF BUSINESS
The Company is a publicly traded silver exploration and development company that was listed on the TSX Venture Exchange
(the "TSXV") in 2025. On February 26, 2026, the Company graduated from the TSXV and commenced trading on the Toronto
Stock Exchange (the "TSX") under the symbol "AGMR". The Company continues to be listed on the OTCQB Venture Market
under the symbol "AGMRF" and the Lima Stock Exchange under the symbol "AGMR". The Company is advancing activities to
recommence production at the Reliquias underground mine and undertake exploration activities at its silver properties
comprising the Castrovirreyna Project (the "Reliquias Project" or "Reliquias") located in Huancavelica, Peru.
2
SILVER MOUNTAIN RESOURCES INC.
and Analysis
For the three and six months ended June 30, 2026 and 2025
(Expressed in US dollars, except where noted)
The Company, through its subsidiary Sociedad Minera Reliquias S.A.C ("AgMR Peru"), owns a processing plant with capacity
of 2,600 tonnes per day ("tpd") (currently permits up to 2,000 tpd), an operating tailings dam, and over 59,000 hectares ("ha") of
titled mining concessions. The Company targets the acquisition of mining concessions for exploration, exploitation, extraction,
and processing of all types of minerals with a special focus on precious metals.
The Project includes mine infrastructure that supported the Reliquias underground mine operations, which were operated by
Corporación Minera Castrovirreyna ("CMC") from 2005 to 2015. In 2018, AgMR Peru acquired certain liquidated assets from
CMC that comprised the Project. The Project includes the following infrastructure:
Reliquias and Caudalosa underground mines: consisting of ventilation system, water pumping system, explosives
magazine, and mining equipment
Concentrator Plant: a 2,600 tpd conventional concentrator plant to produce silver, lead, zinc, and copper concentrates
Tailings storage facility: sufficient remaining capacity for two years of tailings production
Infrastructure: power supply line, water supply system, fuel storage, a 370-person camp, warehouses, maintenance shops,
and paved roads
During the year ended December 31, 2025, the Company raised net proceeds of $36,803,499, after deducting $2,721,998 of
unit issuance costs, through bought-deal prospectus offerings. The Company also finalized a 20-year surface land use
agreement with the Community of Salcca Santa Ana. These milestones represent the final steps required to restart operations
at the Reliquias Mine. Based on these achievements, the Company is targeting commencement of commercial production in
2026.
CORPORATE STRATEGY
The Company is pursuing long-term growth and sustainable value creation. The Company's strategy centres on realizing the
potential of its assets through disciplined exploration, systematic development, and strategic partnerships, while seeking to
maximize stakeholder value. A fundamental component of this approach involves converting historical resources into NI 43-101
compliant reserves and expanding the current resource base across the 24,000-hectare Reliquias Block to support ongoing
project advancement.
The Company holds rights over the 28,800-hectare Dorita Block, located in the northern sector of the Project. Exploration
activities at Dorita are scheduled to commence following completion of work at the Reliquias Mine. Preliminary surface
exploration results indicate potential for mineralization, establishing Dorita as a component of the Company's growth strategy.
Through a systematic approach to exploration and development, the Company remains focused on identifying new resources,
enhancing operational viability, and delivering long-term shareholder value.
Based on the financing completed during 2025, the Company believes it has sufficient capital resources to bring the Reliquias
Mine into commercial production during 2026. However, there is no assurance that the Company will maintain adequate
resources in the future due to market conditions, economic factors, and commodity price fluctuations. Additionally, the
Company's targeted production commencement date is subject to various risks and uncertainties, including permitting,
construction, equipment delivery, and commissioning of mining and processing operations. See "Risks and Uncertainties" below.
Following the recently closed bought-deal prospectus offering on November 18, 2025, the Company intends to undertake the
following activities:
(1) Completion of approximately 4,600 metres of underground tunnelling at the Reliquias Mine
(2) Capital expenditures for improvements to the tailings dam, crusher, and mill in the processing plant, as well as
upgrades to camps, roads, and related infrastructure
(3) Completion of approximately 21,012 metres of drilling at the Caudalosa Mine and related underground development
activities
(4) Completion of approximately 6,778 metres of drilling at the Reliquias Mine
(5) Completion of approximately 1,528 metres of drilling at the Natividad property
(6) Additional exploration activities between the Caudalosa Mine and the Reliquias Mine
As part of an ongoing consolidation strategy, the Company continues to evaluate and pursue targets adjacent to existing projects.
Expanding the land package through additional mining concessions may strengthen the resource base and create opportunities
for growth. This approach is intended to enhance the scale and sustainability of the Company's portfolio, reinforcing its position
in the region and supporting long-term shareholder returns.
3
SILVER MOUNTAIN RESOURCES INC.
and Analysis
For the three and six months ended June 30, 2026 and 2025
(Expressed in US dollars, except where noted)
In addition to current projects, the Company continues to identify and assess new exploration opportunities in emerging mining
regions. This diversification strategy is intended to mitigate risk and support a pipeline of future growth opportunities, consistent
with the Company's long-term expansion objectives.
CORPORATE HIGHLIGHTS
During the six months ended June 30, 2026, the Company issued 6,629,136 common shares pursuant to the exercise of
warrants with a weighted average exercise price of C$3.06 per common share for gross proceeds of $14,787,546
(C$20,285,154). As a result, the Company transferred $5,747,716 from warrant liabilities to share capital.
During the six months ended June 30, 2026, the Company issued 609,665 common shares pursuant to the exercise of
warrants with a weighted average exercise price of $1.35 per common share for gross proceeds of $823,048. As a result,
the Company transferred $52,989 from contributed surplus to share capital.
On June 19, 2026, pursuant to a shares-for-services agreement entered into by the Company and each of its directors of
the Company on January 27, 2026, the Company issued 16,776 common shares at a price of $2.52 per share for an
aggregate fair value of $42,265 as consideration for director and board advisory fees owing from January 1, 2026 to March
31, 2026.
On June 28, 2026, 44,000 stock options of the Company with an exercise price of C$7.50 expired unexercised.
TSX .
On February 20, 2026, 30,000 stock options of the Company with an exercise price of C$3.25 forfeited.
On February 12, 2026, 25,000 stock options of the Company with an exercise price of C$5.70 forfeited.
On February 9, 2026, 1,035,000 warrants of the Company with an exercise price of C$6.75 expired unexercised.
On February 2, 2026, 66,000 stock options of the Company with an exercise price of C$7.50 expired unexercised.
On January 28, 2026, pursuant to a shares-for-services agreement entered into by the Company and each of its directors
of the Company on January 27, 2026, the Company issued 44,945 common shares at a price of $3.67 per share for an
aggregate fair value of $164,993 as consideration for director and board advisory fees owing from July 1, 2025 to December
31, 2025.
On January 18, 2026, 25,000 stock options of the Company with an exercise price of C$5.70 forfeited.
On January 13, 2026, the Company issued 108,661 common shares and warrants exercisable to acquire 108,661 common
shares at a price of C$2.025 per common share pursuant to the exercise of broker warrants for gross proceeds of $129,236.
Each issued warrant expires on April 24, 2028.
OPERATIONAL OVERVIEW
Mine Operations
The Company owns two historically productive underground mines: Reliquias and Caudalosa. These assets have a long mining
history, with continuous extraction activities from 1951 to 2016, yielding significant volumes of silver, zinc, lead, gold, and copper.
Between 2009 and 2014, the mines produc

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