Management’s Discussion and Analysis (March 31, 2026)

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# Management’s Discussion and Analysis (March 31, 2026)

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# Management’s Discussion and Analysis (March 31, 2026)
KUYA SILVER CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED MARCH 31, 2026
(Expressed in US Dollars)
Report Date – May 26, 2026
TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................ 2
MANAGEMENT’S DISCUSSION AND ANALYSIS ...................................................................................... 3
COMPANY OVERVIEW .......................................................................................................................... 3
HIGHLIGHTS ......................................................................................................................................... 4
OUTLOOK............................................................................................................................................. 6
OVERALL PERFORMANCE AND RESULTS OF OPERATIONS..................................................................... 9
SUMMARY OF QUARTERLY FINANCIAL RESULTS................................................................................. 12
LIQUIDITY AND CAPITAL RESOURCES ................................................................................................. 13
TRANSACTIONS WITH RELATED PARTIES ............................................................................................ 15
COMMITMENTS AND CONTINGENCIES ............................................................................................... 15
SHARE CAPITAL INFORMATION .......................................................................................................... 16
CAPITAL AND FINANCIAL RISK MANAGEMENT ................................................................................... 17
ACCOUNTING DISCLOSURES ............................................................................................................... 21
SUBSEQUENT EVENTS ........................................................................................................................ 21
RISK FACTORS .................................................................................................................................... 21
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS .................................................. 22
2
KUYA SILVER CORPORATION
MANAGEMENT’S DISCUSSION & ANALYSIS
(Expressed in US Dollars)
MARCH 31, 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS
The following Management’s Discussion & Analysis ("MD&A") provides a review of activities, results of operations
and the financial condition of Kuya Silver Corporation (“Kuya Silver”, the “Company”, “we”, or “our”) as at and for
the three months ended March 31, 2026. This MD&A should be read in conjunction with the Company’s interim
consolidated financial statements and related notes thereto for the three months ended March 31, 2026. References
to “Kuya Silver” in this MD&A refer to the Company and its subsidiaries taken as a whole.
Readers are cautioned that this MD&A contains forward-looking statements about expected future events and
financial and operating performance of the Company, and that actual events may vary from management's
expectations. Readers are encouraged to read the Cautionary Note on Forward-Looking Statements included in this
MD&A and to consult the Company’s audited annual consolidated financial statements and corresponding notes for
the year ended December 31, 2025, which are available under the Company’s profile on the SEDAR+ website at
www.sedarplus.ca.
The Company’s management is responsible for the preparation and presentation of the financial statements and
this MD&A. The interim financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and as included in Part 1 of
the CPA Canada Handbook – Accounting and the interpretations of the International Financial Reporting
Interpretations Committee, including IAS 34 Interim Financial Reporting. This MD&A has been prepared in
accordance with the requirements of Canadian securities regulators, including National Instrument (“NI”) 51-102 of
the Canadian Securities Administrators.
All amounts disclosed in this MD&A are expressed in United States (“US”) dollars (“USD”), unless otherwise noted.
Canadian dollars are represented by CAD $. Information contained herein is presented as at May 26, 2026 (the
“Report Date”) unless otherwise indicated.
COMPANY OVERVIEW
Kuya Silver is a silver mining company with a focus on acquiring, exploring, developing and operating precious metals
properties in mining-friendly jurisdictions (such as Peru and Canada). The Company’s head office and principal
address is located at 150 King Street West, Suite 200, Toronto, ON, M5J 1J9. The Company was incorporated on July
15, 2015, under the Business Corporations Act (British Columbia) and the Company’s registered and records office
is located at 2054 Dowad Drive, Squamish, BC, V8B 0Y8. The Company’s shares are listed on the Canadian Securities
Exchange (“CSE”) under the symbol KUYA and on the OTC Markets OTCQB Exchange under the symbol KUYAF.
Bethania Silver Project (Huancavelica, Peru)
The Company owns the Bethania Silver Project in Peru, located in a major silver-lead- zinc mining district in Central
Peru, which is comprised of the Bethania mine (Santa Elena mining concession) that operated, prior to Kuya Silver’s
acquisition, from 2010 to 2016, the Carmelitas concessions, and the Tres Banderas concessions, together which
collectively covers approximately 5,600 hectares. The Company’s most recent Preliminary Economic Assessment
(the “PEA”) was filed on SEDAR+ in October 2023 and contemplates a 350 tonnes per day underground mine feeding
a processing plant that would process mineralized material and also incorporates the potential to toll-mill
mineralized material prior to the construction and commissioning of a new processing plant at site. Mineralized
material is planned to be mined from three primary vein systems (Española, 12 de Mayo, Victoria).
3
KUYA SILVER CORPORATION
MANAGEMENT’S DISCUSSION & ANALYSIS
(Expressed in US Dollars)
MARCH 31, 2026
During 2024 the Company engaged in reconditioning and underground activities required to restart commercial
mining operations at the Bethania Silver Project, and the limited production of mineralized material in 2025 and
2026 was initially focused on areas with existing underground infrastructure.
As the mining activities at the Bethania Project advance toward the initial Phase 1 target of 350 tonnes per day, the
Company expects to benefit from more consistent processing and potential optimization opportunities aimed at
improving silver recoveries from Bethania’s polymetallic mineralized material.
Silver Kings Project (Ontario, Canada)
The Silver Kings Project is located in Northern Ontario’s most prolific silver mining camp, situated near the historic
mining town of Cobalt, Ontario, and encompasses approximately 13,000 hectares of patents, leases and claims. The
Company continually manages its property position based on strategic goals, geological potential and expenditure
requirements and may increase or decrease these holdings from time to time.
The Company’s exploration programs led to a new silver vein discovery on the Campbell-Crawford claim, is now
known as the Angus Vein. Since that discovery, additional veins and vein structures have been identified both
thought drilling and on the surface in close proximity to the Angus Vein which have been shown to host silver-cobalt
mineralization.
Umm Hadid Project (Saudi Arabia)
The Company also holds 5% interest in Umm Hadid Project in Saudi Arabia, with the option to acquire an additional
40% until April 2027 for further information see Evaluation and Exploration Assets section.
HIGHLIGHTS
Operational
Three months
Q1, 2026 Q1, 2025
Mineralized material, mined tonnes 3,076 655
Mineralized material, processed tonnes 3,868 872
Meters advanced m 398 161
Development tonnes 1,967 1,930
Average processed grades
Silver (1) oz/t 6.29 9.05
Lead % 2.02 2.60
Zinc % 1.63 2.23
Silver Equivalent (1)(2) oz/t 9.94 12.39
Silver Equivalent (1)(2) g/t 309 385
Average recoveries(1)(3)
Silver % 86.46 90.94
Lead % 86.73 87.40
Zinc % 44.46 55.40
4
KUYA SILVER CORPORATION
MANAGEMENT’S DISCUSSION & ANALYSIS
(Expressed in US Dollars)
MARCH 31, 2026
Three months
Q1, 2026 Q1, 2025
Metal processed(1)
Silver oz 21,580 7,445
Lead tonnes 63 22
Zinc tonnes 45 18
Concentrates sold (wet)
Silver - Lead tonnes 120 39
Zinc tonnes 72 29
Metal sold
Silver oz 17,481 6,760
Gold oz - 2
Lead tonnes 54 18
Zinc tonnes 9 10
Silver Equivalent (2) oz 19,266 8,888
Silver Sales % 91 76
Average realized price (4)
Silver $/oz 82 33
Gold $/oz - 3,017
Lead $/tonne 1,859 1,984
Zinc $/tonne 3,300 2,773
Total Revenue (4) $ 000's 1,465 229
(1)
Information has been revised from amounts previously disclosed in the Company’s press release dated April 22, 2026. The revisions relate
primarily to the correction of previously reported production metrics.
(2)
Silver Equivalency (AgEq) was calculated using silver price prices as follows: March 31, 2026 silver $74/oz, lead $1,909/tonne, zinc $3,230/tonne,
Mar. 31, 2025 period; silver $34.46/oz, gold $3122.80/oz, lead $2002/tonne, zinc $2829/tonne.
(3)
includes only payable recovery i.e. lead in the silver- lead concentrate and zinc in the zinc concentrate and silver in both concentrates.
(4)
may include provisional settlements at the end of the period, net of treatment and refining costs.
Bethania Silver Project
 Total of 3,076 tonnes mined during the first quarter of 2026. By the end of March and April Bethania
operations had reached a level of 100 tonnes per day (“tpd”) throughput.
 $1.5 million revenue recorded during the first quarter of 2026 mainly from Silver with an average selling
price of $82/oz.
 Total of 398 meters advanced and 1,967 metric tonnes of development material moved. Developing
activities were focused on driving drifts and a crosscut to access more mineralization material.
 Average grades were 6.29 oz/t during the quarter even as development material. Grades are expected to
increase as the mine reaches a steady-state of production later this year and into 2027 and in the meantime
grades will reflect a blend of ongoing development and run-of-mine stoping.
 The Company has previously achieved 90+% silver recoveries on specific mineralized batches, reflecting not
only higher head grades but also favorable metallurgical composition and tighter moisture controls in the
5
KUYA SILVER CORPORATION
MANAGEMENT’S DISCUSSION & ANALYSIS
(Expressed in US Dollars)
MARCH 31, 2026
processing circuit. Although Silver recoveries during the quarter are slightly lower, the Company
implemented targeted adjustments to the Camila Plant's operating parameters, including semi real-time
monitoring of feed characteristics and moisture levels. Results in months following the quarter ed have
been encouraging, and management expects recoveries to continue improving as silver grades increase and
operational refinements take full effect.
Corporate
Liquidity
 Following the closing of the private placement in January 2026 for gross proceeds of $18,346,644 The
company had a strong cash position of $27,177,885 as at March 31, 2026. The Company intends to use
these funds to continue the expansion of the operational ramp up at Bethania project in Peru as described
in the Outlook section.
Financings
 On January 15, 2025, the Company issued 25,500,000 common shares at a price of CAD $1.00 per unit by
way of a brokered private placement for g

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