Dec 31, 2025 – Year End MD&A

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Dec 31, 2025 – Year End MD&A

Source: https://www.silvercomining.com/_resources/financials/Silverco-Dec312025-YE-MDA.pdf?v=091207
Fetched: 2026-09-12T07:11:32.951+00:00
Source artifact: a94a0892-1e40-4ab5-80e2-6b5464209b1e
Normalizer input: text

## Content

# Dec 31, 2025 – Year End MD&A
SILVERCO MINING LTD.
(formerly Quetzal Copper Corp.)
Management’s Discussion and Analysis
For the year ended December 31, 2025 and for the period from April 18, 2024 to December 31, 2024
(Expressed in Canadian dollars)
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the year ended December 31, 2025 and for the period from April 18, 2024 to December 31, 2024
OVERVIEW OF THE BUSINESS
Silverco Mining Ltd. (formerly, Quetzal Copper Corp.) (“Silverco Ltd” or the “Company”) was incorporated on November 30, 2020
pursuant to the Business Corporations Act (British Columbia). The Company’s name was changed from Quetzal Copper Corp.
to Silverco Mining Ltd. effective on October 31, 2025. The Company is a Canadian-based mining company listed on the TSX
Venture Exchange (“TSXV”), having the symbol “SICO” and on the OTCQB under the symbol “SICOF”. The Company’s
corporate office is located at 770 – 505 Burrard Street, Vancouver, BC V7X 1M4.
The principal business of the Company is to acquire, explore and develop mineral properties. The business of mining and
exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable
mining operations. The recoverability of exploration and evaluation expenditures is dependent upon several factors. These
include the discovery of economically recoverable resources, the ability of the Company to obtain the necessary financing to
complete the development of these properties, and future profitable production or proceeds from disposition of mineral
properties. The Company holds mineral properties in Mexico through its ownership of the Cusi Mining Complex. On January 19,
2026, the Company entered into a binding letter of intent to acquire Nuevo Silver Inc. (“Nuevo”), which owns the La Negra Mine,
a producing silver mine located in Querétaro, Mexico.
On October 17, 2025, the Company completed a reverse takeover transaction (the "RTO") pursuant to the amalgamation
agreement dated August 13, 2025 (the "Amalgamation Agreement") between Silverco Ltd, 1552216 B.C. Ltd., a wholly-owned
subsidiary of Silverco Ltd, and Silverco Mining Corp. ("Silverco Corp"). Pursuant to the Amalgamation Agreement, 1552216 B.C.
Ltd. amalgamated with Silverco Corp (the "Amalgamation"), forming Silverco Mining (Subsidiary) Ltd., a wholly-owned subsidiary
of the Company.
Immediately prior to completing the RTO, Silverco Ltd consolidated its issued and outstanding shares on a 100:1 basis. Pursuant
to the Amalgamation, former shareholders of Silverco Corp received common shares of Silverco Ltd at an exchange ratio of
1.88 (“the Exchange Ratio”) post-consolidation common shares of Silverco Ltd for each Silverco Corp common share held. Upon
completion of the RTO, the shareholders of Silverco Corp controlled Silverco Ltd and accordingly, the transaction was accounted
for as a reverse acquisition of Silverco Ltd by Silverco Corp and Silverco Corp was identified as the accounting acquirer. The
historical operations, assets, and liabilities of Silverco Corp from its incorporation on April 18, 2024, to December 31, 2024, are
included as comparative figures, as Silverco Corp is deemed to be the continuing entity for financial reporting purposes.
All transactions relating to periods prior to the completion of the RTO on October 17, 2025 reflect the common shares of Silverco
Corp retroactively restated at the exchange ratio of 1.88 post-consolidation common shares of the Company for each Silverco
Corp common share, which presents share information on a basis consistent with the post-RTO capital structure of the Company.
Pursuant to the Amalgamation Agreement, all of the Silverco Corp share purchase warrants, stock options and performance
share units are adjusted by the Exchange Ratio and will entitle the holders thereof to receive, upon exercise or settlement,
common shares of the Company, as adjusted by the Exchange Ratio.
1
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the year ended December 31, 2025 and for the period from April 18, 2024 to December 31, 2024
HIGHLIGHTS
Key Highlights During 2025 and Subsequent
During the year ended December 31, 2025, and to the date of this MD&A, the Company
 Completed the reverse takeover transaction on October 17, 2025, with Silverco Corp. (the accounting acquirer)
becoming a wholly-owned subsidiary of the Company, which began trading on the TSXV under the symbol “SICO”
following the consolidation of its share capital on a 100:1 basis.
 The Company has constituted a new management team, board and advisor as set out below:
Current Management Team
 Mark Ayranto, President and Chief Executive Officer
 Sean Fallis, Chief Financial Officer and Corporate Secretary
 Tara Hassan, Executive Vice President, Corporate Development
 Victoria Avila, Senior Vice President, Corporate Affairs and Finance
 Nico Harvey, Vice President, Project Development
Current Directors and Advisor
 Mark Ayranto, Non-independent Director
 Gary Brown, Independent Director
 Tim Sorensen, Independent Director
 Gregg Bush, Independent Director
 George Paspalas, Advisor
 The Company completed its 2025 15,000-metre drill program at the Cusi Mining Complex on time and on budget and
released the results of the initial NI 43-101 resource estimate in December 2025.
 Raised aggregate gross proceeds of $13.7 million through private placements during 2025 to fund exploration and
corporate activities.
 After year-end, on January 19, 2026, the Company entered into a binding letter of intent to acquire 100% of the issued
and outstanding shares of Nuevo, which owns the La Negra Mine, a producing silver mine located in Querétaro, Mexico
(“Nuevo Transactions”). The Company's acquisition of Nuevo remains subject to customary closing conditions,
including the receipt of all required regulatory and stock exchange approvals and the execution of a definitive
agreement.
 After year-end, on February 19, 2026, closed a bought deal private placement for gross proceeds of $62.5 million,
comprising 4,000,000 common shares at $12.50 per share and 1,000,000 units at $12.50 per unit.
 After year-end, on March 18, 2026, the Company's common shares commenced trading on the OTCQB marketplace
in the United States under the symbol "SICOF."
 After year-end, on April 13, 2026, announced the results of a Preliminary Economic Assessment (“PEA”) for the Cusi
Mining Complex, demonstrating robust project economics for the Cusi Mining Complex over an 8.3-year mine life with
initial capital of US$19.2 million. Under the Base Case (US$44.58/oz Ag LOM average), the project yields an after-tax
NPV 5% of US$104.1 million, an after-tax IRR of 94.8%, and a payback period of 0.9 years. Under the Upside Case
(US$75.00/oz Ag fixed), the after-tax NPV 5% increases to US$312.2 million with an after-tax IRR of 186.9% and a
payback of 0.5 years.
2
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the year ended December 31, 2025 and for the period from April 18, 2024 to December 31, 2024
OUTLOOK
The results of the PEA announced in April 2026 (see Preliminary Economic Assessment section of this MD&A) support the
economic viability of a low-capital restart and provide a framework for the Company's development strategy.
In addition to the Cusi Mining Complex restart, the Company is pursuing a strategy of growth through the acquisition of
complementary development and producing assets. Subject to customary closing conditions and execution of a definitive
agreement, the proposed Nuevo Transaction (see "Highlights" section of this MD&A) would provide the Company with La
Negra mine in Querétaro, Mexico, adding a producing silver mine to the Company's portfolio. The combination of the Cusi
Mining Complex and the potential addition of La Negra is consistent with management's objective of building Silverco into a
mid-tier silver producer by consolidating assets with existing infrastructure, thereby accelerating the path to multi-asset
production without the extended development timelines typically associated with greenfield projects.
Management's near-term priorities are to:
i. Complete the proposed Nuevo Transaction;
ii. progress restart work at the Cusi mine and mill, including the selection of an underground mining contractor to support
the targeted concentrate production restart in late 2026; and
iii. advance the ongoing 2026 30,000-metre drill program at the Cusi Mining Complex, building on the positive 2025
15,000-metre drill program, with the objective of adding mineral resources and converting inferred mineral resources to
higher-confidence categories to enhance the production profile and extend the mine life beyond the 8.3-year estimate
contemplated in the PEA.
Management will continue to monitor commodity markets, macroeconomic conditions, and regulatory developments in both
Canada and Mexico, all of which may influence the timing and sequencing of the Company's activities. The Company remains
committed to creating long-term shareholder value through the disciplined advancement of the Cusi Mining Complex, the
pursuit of accretive growth opportunities, and transparent disclosure to its shareholders.
3
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the year ended December 31, 2025 and for the period from April 18, 2024 to December 31, 2024
BASIS OF PREPARATION OF THE MD&A
This Management’s Discussion and Analysis (“MD&A”) supplements but does not form part of the audited consolidated financial
statements of the Company and the notes thereto for the year ended December 31, 2025 and for the period from April 18, 2024
to December 31, 2024 (“Financial Statements”).
The following MD&A of the financial condition and results of operations of the Company has been prepared by management and
should be read in conjunction with the Financial Statements.
The Financial Statements have been prepared by management in accordance with International Financial Reporting Standards
(“IFRS Accounting Standards”) as issued by the International Accounting Standards Board. Other information contained in this
document has been prepared by management and is consistent with the data contained in the Financial Statements.
The Company’s certifying officers are responsible for ensuring that the Financial Statements and MD&A do not contain any
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
not misleading in light of the circumstances under which it was made. The Company’s certifying officers certify that the Financial
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 and for the periods presented in the filings.
In this MD&A, the “Company”, or the words “we”, “us”, or “our”, collectively refer to the Company and its subsidiary. The first,
second, third and fourth quarters of the Company’s fiscal years are referred to as “Q1”, “Q2”, “Q3” and “Q4”, respectively.
This MD&A takes into account information available up to the approval of the Financial Statements and MD&A by the Board of
Directors on April 24, 2026 (“MD&A Date”).
Management is responsible for the preparation and integrity of the Company’s Financial Statements, including the maintenance
of appropriate information systems, procedures and internal controls. Management is responsible for ensuring that information
disclosed ex

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]