MD&A

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# MD&A

Source: https://www.silverxmining.com/wp-content/uploads/2026/05/SILVER-X-MINING-CORP-MANAGEMENT-DISCUSSION-AND-ANALYSIS-OF-PRODUCTION-AND-FINANCIAL-RESULTS.pdf
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# MD&A
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SILVER X MINING CORP.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
PRODUCTION AND FINANCIAL RESULTS
For the three months ended March 31, 2026
This Management’s Discussion and Analysis (“MD&A”) supplements but does not form part of the condensed interim
consolidated financial statements of Silver X Mining Corp. (the “Company” or “Silver X”) for the three months ended
March 31, 2026. The following information, prepared as of May 28, 2026, should be read in conjunction with the
Company’s condensed interim consolidated financial statements for the three months ended March 31, 2026 and
2025, and the audited consolidated financial statements for the years ended December 31, 2025 and 2024, including
the related notes contained therein.
The Company reports its financial position, results of operations, and cash flows in accordance with IFRS Accounting
Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All amounts are expressed
in US dollars unless otherwise indicate.
Additional information relevant to the Company’s activities can be found on SEDAR+.
In this MD&A, we use the following non-IFRS financial performance measures: “cash costs”, “cash costs per silver
equivalent (“AgEq”) ounce”, “all-in sustaining cost” or (“AISC”), “AISC per AgEq ounce”, “earnings before interest,
taxes, depreciation, and amortization (“EBITDA”), and “adjusted EBITDA”. For a detailed description of each non-
IFRS financial performance measure used in this MD&A and a detailed reconciliation to the most directly comparable
measures under IFRS, please refer to the “Non-IFRS Financial Performance Measures” section of this MD&A. These
measures are intended to provide additional information to investors and do not have any standardized meaning
under IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS.
Executive Summary…….…………………………………….….………….…….…….…….…….…………………..…2
Operating and Financial Highlights.........…………………………….………...…………………...….………………3
Selected Financial Results…...…………………………………...…………………….…………….…………….........4
Operating Results…….……………………………………….………...…………………...….………….…………......8
Liquidity and Capital Resources……….……………………………………………...……………………….……....11
Related Party Transactions……………………………………………...……………………….…….........……..…..12
Shareholder´s Equity…………...………………………......................................................................…….……....13
Subsequent Events…………………………………………….………...…………………...….………….…………...15
Peruvian Platform: Nueva Recuperada Property and Pampas Project....……………………………………….15
Non-IFRS Performance Measures………………………………………...…………………….………….….……….19
Risk and Uncertainties……………...………………………………………...…………………….………….….…….20
Forward Looking Statements……………………………………………...…………………….……………………...23
Qualified Person……………………………………………...………………………………………………........……..23
1
EXECUTIVE SUMMARY
Financial
• Operating income for 1Q26 was $7.0M, compared to $0.8M in 1Q25 (+791%) and $3.7M in 4Q25 (+89%),
primarily due to higher revenues, partially offset by increased operating costs associated with higher production.
• Net income before tax in 1Q26 increased to $5.3M, compared to $0.02M in the prior year period and a loss of
$3.0M in the prior quarter, primarily reflecting significantly higher operating income.
• Net income for the three months ending March 31, 2026, was $4.6M, compared to a net loss of $0.3M in the prior
year period and a net loss of $4.0M in the prior quarter.
• EBITDA for the first quarter of 2026 was $6.1M, compared to $0.4M in the same period of 2025 and negative
EBITDA of $2.5M in the prior quarter. Adjusted EBITDA for the current period totaled $5.9M compared to $0.4M
in the prior‑year period and $3.1M in the prior quarter.
• As of March 31, 2026, cash and equivalents totaled $53.8M, up from $10.1M on December 31, 2025, primarily
reflecting net proceeds of $46.6M from the issuance of secured 5‑year convertible debentures, bearing interest
at 10.0% per annum and convertible into common shares at C$1.62 per share. The transaction was completed
on March 18, 2026, and provides capital to support ongoing development, exploration, and growth initiatives
across its portfolio
• Average market prices for silver and gold increased significantly year over year, with silver averaging $82.94/oz
and gold $4,869.25/oz in 1Q26, 167% and 75% higher respectively compared to 1Q25, and 49% and 17% higher
compared to 4Q25. In 1Q26, Zinc prices increased to $1.46/lbs., 16% higher than 1Q25 and about 2% higher
versus 4Q25, while lead prices remained flat for the prior-year and prior-quarter periods.
• Average realized metal prices were significantly higher in 1Q26, with silver averaging $91.39/oz (+189% vs. 1Q25
and +26% vs. 4Q25). During 1Q26, realized gold prices averaged $5,131.47/oz (+81% vs. 1Q25 and +27% vs.
4Q25). Realized zinc price improved by 11% vs. 1Q25 and 1.6% vs. 4Q25. The realized price of lead was 3.4%
higher than in 1Q25 and 7.5% higher compared to 4Q25.
Operating
• During 1Q26, ore mined totaled 40,946 tonnes, in line with 41,160 tonnes in 1Q25 and better by 6% than the
38,618 tonnes mined in 4Q25. Ore processed increased 12% to 44,883 tonnes in 1Q26, reflecting higher mill
throughput compared to the same period in the prior year and 8% more than 4Q25.
• Average head grades improved for silver and gold, with silver increasing meaningfully and gold nearly doubling
year over year, reflecting improvements to ore mix and mine sequencing. Zinc and lead head grades declined
compared to 1Q25. The decline was less pronounced compared to 4Q25
• Compared with 1Q25, silver-equivalent (AgEq) ounces processed declined 18% to 253,114 AgEq oz, while
AgEq oz produced decreased 25% to 179,941 ounces. Compared with 4Q25, AgEq oz processed declined 5%,
while AgEq ounces produced decreased about 9%.
• Cash costs increased to $37.84/AgEq oz in 1Q26, compared to $21.82/AgEq oz in 1Q25 and $30.37/AgEq oz in
4Q25. AISC increased to $53.24/AgEq oz from $27.51/AgEq oz in 1Q25 and $40.20/AgEq oz in 4Q25. On a per-
tonne basis, cash costs increased to $151.71 in 1Q26, compared to $130.40 in 1Q25 and $143.69 in 4Q25, while
AISC increased to $213.43 from $164.44 and $190.19 over the same periods, respectively.
• AgEq results should be interpreted in the context of significantly higher precious metal prices, particularly for
silver. AgEq calculations convert gold, zinc, and lead production to silver equivalent ounces using relative price
ratios. The large increase in silver prices reduces the relative contribution of by-product metals. As a result, AgEq
volumes may decline even where underlying production and economic value are unchanged or improved.
• Higher metal prices more than offset lower AgEq production volumes, resulting in materially improved operating
revenues and operating income during the current quarter.
• Sustaining capital expenditures increased by 110% to $2.0M in 1Q26 compared to the prior-year period, and by
34% compared to 4Q25, reflecting increased mine development activities as the Company advances toward its
targeted 1,000 tpd production level expected in 3Q26.
2
Growth
• During 1Q26, the Company continued to advance its 40,000‑meter diamond‑drill exploration program at the Nueva
Recuperada Property, launched in October 2025. From commencement of the program through March 31, 2026,
8,732m were drilled to expand and upgrade mineral resources near existing underground workings and along
priority extensions at the Tangana Mining Unit, supporting both near‑term mine planning and longer‑term growth
potential. The program also includes exploration of Blenda Rubia, a prospective satellite project located 2k from
the Recuperada plant, as well as exploration of the Plata and Red Silver mines, beginning in 2Q26.
• In March, the Company announced the acquisition of the 7,712.5‑hectare Pampas Gold‑Silver Project in
Huancavelica, Peru, adding a high‑grade, district‑scale exploration asset to its portfolio. Historical samples
returned up to ~86 g/t gold and over 1,000 g/t silver. This undrilled project offers strong discovery and fast‑track
development potential, strengthening Silver X’s footprint in Peru and complementing current production within the
same highly prospective polymetallic belt in the Central Andes.
• The Company continues to operate and develop its wholly owned Nueva Recuperada Property with the goal of
producing 3,000 tpd and six million silver equivalent ounces by 2029. Environmental permits are expected during
2027 with the development of the Tangana Mining Unit to follow.
• The Company expects to increase production to 1,000 tpd during 3Q26 using high-grade and satellite feed to
ramp up production progressively.
OPERATING AND FINANCIAL HIGHLIGHTS
1Q26 1Q25 % Change 4Q25 % Change
1, 2
Average Realized Prices
Silver ($/oz) 91.39 31.60 189.2% 72.52 26.0%
Gold ($/oz) 5,131.47 2,839.06 80.7% 4,026.39 27.4%
Zinc ($/lbs) 1.36 1.23 11.0% 1.34 1.6%
Lead ($/lbs) 0.93 0.90 3.4% 0.87 7.5%
Operating Results
Ore mined (tonnes) 40,946 41,160 -0.5% 38,618 6.0%
Ore processed (tonnes) 44,883 40,200 11.6% 41,635 7.8%
AgEq processed (oz) 3 253,114 306,726 -17.5% 266,995 -5.2%
3
AgEq produced (oz) 179,941 240,248 -25.1% 197,004 -8.7%
Per AgEq ounces produced:
Cash cost ($) 37.84 21.82 -73.4% 30.37 -24.6%
All-In-Sustaining costs ($) 53.24 27.51 -93.5% 40.20 -32.4%
Per Tonnage processed:
Cash cost ($) 151.71 130.40 -16.3% 143.69 -5.6%
All-In-Sustaining costs ($) 213.43 164.44 -29.8% 190.19 -12.2%
Financial Results
Operating revenue (gross) $ 13,919,082 $ 6,013,336 131.5% $ 9,940,492 40.0%
Treatment and refining charges and penalties (488,319) (747,178) 34.6% (310,339) -57.4%
Operating revenue (net) 13,430,763 5,266,158 155.0% 9,630,153 39.5%
Net income before tax $ 5,342,687 $ 20,084 26,501.7% $ (3,040,944) N/A
Net income (loss) 4,584,499 (330,701) N/A (4,019,548) N/A
Earnings (loss) per share, basic 0.016 (0.002) N/A (0.015) N/A
Earnings (loss) per share, diluted 0.015 (0.002) N/A (0.015) N/A
EBITDA 6,096,061 403,450 1,411.0% (2,473,933) N/A
Adjusted EBITDA 5,944,314 409,045 1,353.2% 3,053,931 94.6%
1Average Realized Price, AgEq sold, cash costs per AgEq ounce produced and AISC per AgEq ounce produced are non-IFRS ratios with no
standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information,
including detailed reconciliations to the most directly comparable IFRS measures, see "Non-IFRS Measures" in the MD&A.
2 Realized price corresponds to the average sales price to the final customer.
3AgEq ounces processed and produced were calculated based on all metals processed and produced using the average market prices of each
metal for each month during the period as published by the London Bullion Metals Association and the London Metal Exchange official websites.
Revenues from concentrate sales do not consider metallurgical recoveries in the calculations as the metal recoveries are built into the sales
amounts.
3
SELECTED FINANCIAL RESULTS
The following table provides information for the three months ended March 31, 2026, December 31, 2025 and
March 31, 2025.
1Q26 1Q25 % Change 4Q25 % Change
OPERATING REVENUES, NET $ 13,430,763 $ 5,266,158 155.0% $ 9,630,153 39.5%
Mining and processing $ (6,046,412) $ (4,261,670) -41.9% $ (5,599,415) -8.0%
Amortization (381,479) (218,158) -74.9% (331,444) -15.1%
COST OF SALES (6,427,891) (4,479,828) -43.5% (5,930,859) -8.4%
Operating Income $ 7,002,872 $ 786,330 790.6% $ 3,699,294 89.3%
EXPLORATION EXPENDITU

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