Mar 31, 2026 – Q1 MD&A

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# Mar 31, 2026 – Q1 MD&A

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# Mar 31, 2026 – Q1 MD&A
SILVERCO MINING LTD.
(formerly Quetzal Copper Corp.)
Management’s Discussion and Analysis
For the three months ended March 31, 2026 and 2025
(Expressed in Canadian dollars)
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the three months ended March 31, 2026 and 2025
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 of 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. In addition, on May 19, 2026, the Company acquired
Nuevo Silver Inc. ("Nuevo"), which owns, through its wholly-owned subsidiary, 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 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.
2
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the three months ended March 31, 2026 and 2025
HIGHLIGHTS
Key Highlights During the Three Months Ended March 31, 2026 and Subsequent
During the three months ended March 31, 2026, and to the date of this MD&A:
• On February 19, 2026, the Company 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.
• On March 18, 2026, the Company's common shares commenced trading on the OTCQB marketplace in the United
States under the symbol "SICOF."
• On March 23, 2026, the Company announced the following appointments to strengthen its leadership team and support
the Company's transition to a mid-tier Mexican silver producer:
o Tara Hassan, Executive Vice President, Corporate Development;
o Victoria Avila, Senior Vice President, Corporate Affairs and Finance; and
o George Paspalas, Advisor.
• On April 13, 2026, the Company announced the results of a Preliminary Economic Assessment ("PEA") for the Cusi
Mining Complex, demonstrating robust project economics 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 NPV5% 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 NPV5% increases to US$312.2 million with an after-tax IRR of 186.9% and a payback period of 0.5 years.
The supporting NI 43-101 technical report, titled "Preliminary Economic Assessment Technical Report for the Cusi
Project," was filed on SEDAR+ on May 21, 2026 and is available under the Company's profile at www.sedarplus.ca.
• On May 19, 2026, the Company completed the previously announced acquisition (the "Transaction") of Nuevo.
Pursuant to the Transaction, the Company acquired all of the issued and outstanding common shares of Nuevo in
exchange for the issuance of 16,802,283 common shares of the Company to former Nuevo shareholders on a pro rata
basis. Nuevo, through its wholly-owned subsidiary, holds a 100% interest in the La Negra Mine in Querétaro, Mexico.
3
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the three months ended March 31, 2026 and 2025
OUTLOOK
As at the date of this MD&A, the Company holds two principal mineral assets in Mexico: the La Negra Mine, a producing silver
mine acquired on May 19, 2026, and the Cusi Mining Complex, where work is advancing toward a targeted concentrate
production commencing in late 2026. The Cusi Mining Complex is supported by an updated Mineral Resource Estimate
announced in December 2025 and the results of the PEA announced in April 2026, which outlines a low-capital restart (see
Mineral Resource Estimate and Preliminary Economic Assessment sections of this MD&A). The combination of these two assets
is consistent with management's objective of building Silverco into a mid-tier silver producer by consolidating advanced stage
development and producing assets with existing infrastructure, thereby accelerating the path to multi-asset production without
the extended development timelines typically associated with greenfield projects. In the future, the Company will evaluate if it is
appropriate to provide guidance.
Management's near-term priorities are to:
i. integrate the La Negra Mine and increase throughput toward its 2,500 tonne per day capacity through investments in
equipment, spare parts, and enhanced maintenance programs, while undertaking a 15,000 to 20,000 metre exploration
drill program to support the completion of an updated resource estimate and mine plan in the second half of 2026;
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
integration and optimization of the La Negra Mine, the pursuit of accretive growth opportunities, and transparent disclosure to
its shareholders.
4
SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Management’s Discussion & Analysis
For the three months ended March 31, 2026 and 2025
BASIS OF PREPARATION OF THE MD&A
This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the Company, its liquidity,
capital resources, and operational and financial performance as at, and for the three months ended March 31, 2026, in
comparison to the corresponding prior-year periods.
This MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements
and notes (the "Financial Statements") have been prepared by management in accordance with IAS 34, Interim Financial
Reporting consistent with IFRS Accounting Standards as issued by the IASB. Other information contained in this document has
been prepared by management and is consistent with the data contained in the Financial Statements.
For a complete understanding of the Company’s business environment, risks and uncertainties and the effect of accounting
estimates on its results of operations and financial condition, this MD&A should also be read in conjunction with the Company’s
audited consolidated financial statements and notes for the year ended December 31, 2025 (the “2025 Annual Financial
Statements”) and related annual MD&A (the "2025 Annual MD&A") on SEDAR+ at www.sedarplus.ca as applicable.
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 May 28, 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 externally, including the information contained within the Company’s Financial Statements and MD&A, is complete
and reliable.
Certain statements made may constitute forward-looking statements. Such statements involve a number of known and unknown
risks, uncertainties and other factors. Actual results, performance and achievements may be materially different

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