HSLV Q4 2025 Interim Management's Discussion and Analysis

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# HSLV Q4 2025 Interim MDA FINAL

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# HSLV Q4 2025 Interim MDA FINAL
Highlander Silver Corp.
Management’s Discussion and Analysis
For the three and twelve months ended September 30, 2025 and 2024
Highlander Silver Corp.
Management’s Discussion and Analysis
For the three and twelve months ended September 30, 2025 and 2024
(Expressed in Canadian dollars, unless otherwise noted)
INTRODUCTION
This Management’s Discussion and Analysis (“MD&A”) of Highlander Silver Corp. (the “Company” or “Highlander”)
provides information on the Company’s business activities, financial condition, financial performance, cash flows and
outlook for the three and twelve months ended September 30, 2025, with comparative information for the three and
twelve months ended September 30, 2024. This MD&A is dated November 12, 2025 and takes into account information
available up to and including that date.
The Company reports its financial position, financial performance and cash flows in accordance with IFRS Accounting
Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). This MD&A should be read in
conjunction with the Company’s condensed consolidated interim financial statements for the three and twelve months
ended September 30, 2025 and the annual consolidated financial statements for the year ended September 30, 2024,
which are available on the Company’s website at www.highlandersilver.com and on the SEDAR+ website at
www.sedarplus.ca. Additional information relating to the Company, including the Company’s Annual Information Form,
is also set out on the SEDAR+ website at www.sedarplus.ca.
All dollar amounts reported herein are expressed in Canadian dollars unless otherwise indicated.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This document includes certain statements that constitute "forward-looking statements", and "forward-looking
information" within the meaning of applicable securities laws (collectively, "forward-looking statements"). Words such
as "intends", "expects", "will be", "underway", "targeted", "planned", "objective", "expected", "potential", "continue",
"estimated", "would", "subject to" and similar expressions are intended to identify these forward-looking statements.
Forward-looking statements in herein include, but are not limited to: statements regarding the Company’s exploration
and development plans and goals at San Luis, including specific phases, plans, timing, costs, results thereof, and other
disclosure set out under “Exploration Plans” herein; the Company’s plan for the San Luis Project is to advance the
project through integrated exploration, environmental and community development programs; the Company’s aim of
employing its participatory development model based on community capacity building through skill and safety training,
employment, entrepreneurship, infrastructure development and environmental, cultural, health and education
programs; specific timing and costs of the Company’s proposed exploration program, including timing and cost of
implementing Phase 2 as recommended in the Technical Report; intended use of proceeds from the offerings; the
Company, upon approval from its Board of Directors, intends to balance its overall capital structure through a
combination of equity financing and/or other forms of financing; and that the Company’s planning and budgeting will
ensure the Company has appropriate liquidity to meet its business activities, including planned corporate expenditures,
exploration expenses, as well as the development activities for the San Luis Project.
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable,
undue reliance should not be placed on forward-looking statements since the Company can give no assurance that
such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from those anticipated in such forward-looking
statements, including risks related to the business of the Company; the ability of the Company to raise sufficient capital;
general business, economic, competitive, political and social uncertainties; the actual results of current exploration
activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future
prices of precious and base metals; accidents; global outbreaks and contagious diseases (including COVID-19);
business and economic conditions in the mining industry generally; the supply and demand for labour and other project
inputs; adverse claims made by local communities; changes in commodity prices; unanticipated exploration and
development challenges (including failure of equipment or processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of
government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety
and environmental matters); adverse weather conditions; political risk and social unrest; changes in interest and
currency exchange rates; and the risks, uncertainties and other factors identified in the Company's periodic filings with
Canadian securities regulators.
Page 1
Highlander Silver Corp.
Management’s Discussion and Analysis
For the three and twelve months ended September 30, 2025 and 2024
(Expressed in Canadian dollars, unless otherwise noted)
These forward-looking statements were derived using numerous assumptions, including assumptions regarding
general business and economic conditions; the Company’s ability to develop and maintain relationships with local
communities; commodity prices; anticipated costs and expenditures; the Company’s ability to advance exploration
efforts at San Luis and La Estrella; and the results of such exploration efforts. While the Company considers these
assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking
statements speak only as of the date those statements are made. Except as required by applicable law, we assume no
obligation to update or to publicly announce the results of any change to any forward-looking statement contained
herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors
affecting the forward- looking statements. If we update any forward-looking statements, no inference should be drawn
that we will make additional updates with respect to other forward-looking statements. All forward-looking statements
contained herein are expressly qualified in their entirety by this cautionary statement.
DESCRIPTION OF BUSINESS
Highlander is primarily focused on advancing the bonanza grade San Luis gold-silver project located adjacent to the
past-producing Pierina mine in Central Peru (the “San Luis Project”). San Luis hosts Indicated Mineral Resources of
356 koz Au at 24.4 g/t Au and 8.4 Moz Ag at 579 g/t Ag and Inferred Mineral Resources of 8 koz Au at 4.9 g/t Au and
336 koz Ag at 202 g/t Ag.
Highlander is listed on the Toronto Stock Exchange (the “TSX”) under the ticker symbol “HSLV”.
HIGHLIGHTS AND ACTIVITIES
The following activities and developments were achieved during the quarter:
On July 29, 2025, Highlander reported assay results from the first seven holes drilled to test a conceptual open pit
target along a ridgeline where the Bonita vein system is exposed 10 km to the south of the Ayelen underground deposit
at its San Luis Project. The first seven holes follow up on and step out from two historical holes (BOD-001 and BOD-
002), with every new hole returning high-grade gold-silver mineralization over a broad width from near surface.
Highlights include:
• BOD-007, which returned 20.0m of 3.78 g/t Au and 12.31 g/t Ag from 4.0m downhole;
• BOD-008, which returned 23.1m of 4.92 g/t Au and 16.56 g/t Ag from 4.7m downhole; and
• BOD-009, which returned 47.8m of 1.87 g/t Au and 13.49 g/t Ag from surface.
On September 16, 2025, Highlander reported assay results from the second series of holes designed to test the
expanding Bonita vein system, which include some of the highest gold grades encountered to date. The Company also
announced that a magnetic survey undertaken with two quadcopter drones has been completed, covering
approximately 5,000 hectares in the Bonita area. The goal of the survey is to map structural features under cover to
the west and in rugged topography to the east.
Highlights include:
• BOD-013, which was drilled from a step-out platform to the southeast of prior drilling and returned 24.8m of
7.43 g/t Au and 16.45 g/t Ag from 28.7m downhole;
• BOD-010, which returned 40.4m of 3.42 g/t Au and 16.93 g/t Ag from surface to the southeast of prior drilling
from a platform at the edge of soils that may cover the extent of the vein system to the west;
• BOD-014 was drilled from a step-out platform to the southeast of BOD-010 and returned 19.1m of 3.50 g/t
Au and 11.57 g/t Ag from 37.7m downhole; and
• BOD-015, the southeasternmost hole drilled to date, returned 23.7m of 3.31 g/t Au and 9.60 g/t Ag from
34.3m downhole, with the zone remaining open in this direction.
On September 29, 2025, Highlander announced that it closed its bought deal public offering, pursuant to which the
Company issued 23,000,000 common shares of the Company at a price of $3.75 per common share for aggregate
gross proceeds of $86,250,000 (the “Public Offering”).
Page 2
Highlander Silver Corp.
Management’s Discussion and Analysis
For the three and twelve months ended September 30, 2025 and 2024
(Expressed in Canadian dollars, unless otherwise noted)
Subsequent events
On October 6, 2025, Highlander reported assay results from the third series of holes into the expanding Bonita vein
system which includes the discovery of a new zone called Kusy that has returned the highest grades of gold and silver
reported to date. The Kusy discovery is the result of the first drilling on the eastern flank of the Bonita vein system
exposure and consists of breccias and fine quartz vein fragments similar to the mineralization encountered in drilling
on the western exposure. The Company also reported that results are being processed from a magnetic geophysical
survey undertaken by dual quadcopters aimed at mapping the full extent of the Bonita vein system under cover to the
west and in rugged topography to the east and northeast.
Highlights include:
• BOD-021, targeting the central portion of Kusy approximately 150m to the northeast of previously reported
drilling, returned 23.6m of 15.56 g/t Au and 74.49 g/t Ag from 8.8m downhole;
• BOD-019, tested the Kusy zone from a platform to the northwest of BOD-021, and returned 7.4m of 8.10 g/t
Au and 6.55 g/t Ag from 48.4m downhole;
• BOD-018 was drilled into the western exposure from a step-out platform to the southeast of previously reported
BOD-015 (23.7m of 3.31 g/t Au and 9.60 g/t Ag) and returned 10.1m of 3.81 g/t Au and 7.72 g/t Ag from 32.3m
downhole.
On October 17, 2025, Highlander announced that further to the Public Offering which closed on September 29, 2025,
the underwriters exercised their over-allotment option (the “Over-Allotment Option”) in full, to purchase an additional
2,330,000 common shares at a price of $3.75 per common share. Upon closing of the Over-Allotment Option, the
Company received additional gross proceeds of $8,737,500, resulting in total gross proceeds from the Offering of
$94,987,500.
MINERAL PROPERTIES AND OUTLOOK
San Luis
The San Luis Project is a gold-silver exploration property located in the Ancash department of central Peru. SSR Mining
Inc. (“S

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