Discovery Silver: Strong First Quarter and On Track for Full Production in 2026

Key Concepts

• Gold Production: The extraction and processing of gold ore.
• Throughput: The amount of material (ore) processed by a mill within a specific timeframe.
• Grade: The concentration of gold within the rock (measured in grams per ton).
• Resource Conversion/Expansion: The process of upgrading mineral resources to reserves or discovering new mineralization.
• Synergies: The combined effect of assets (like the Kidd acquisition) that creates greater value than the sum of individual parts.
• Mining Sequence: The planned order in which different parts of a mine are extracted.

---

Q1 2026 Operational Performance

Discovery Silver reported a solid start to 2026 at its Porcupine operations, producing 60,269 ounces of gold in the first quarter. The company maintains its annual guidance of 260,000 to 300,000 ounces for the full year, with expectations for production to scale upward as optimization investments take effect.

• Hoyle Pond: Achieved a 44% increase in production compared to the previous quarter, primarily driven by a significant rise in average ore grade.
• Borden: Experienced lower plant grades, attributed to the current mining sequence and a reduction in processing from stockpiles.
• Dome Mill: Reported a 15% increase in average grade and improved recovery rates. Operational efficiency was high, with daily throughput exceeding 11,000 tons per day (tpd) on 26 separate days, and peaking at over 12,000 tpd on 10 of those days.
• Hollinger Open Pit: Resumed operations during Q1 2026, ending the quarter with a production rate of over 2,000 tpd, with further ramp-up planned for the coming months.

Strategic Acquisition: Kidd Operations

In early March 2026, Discovery Silver acquired the Kidd operations from Glencore. This acquisition is positioned as a strategic move to bolster long-term growth through:

• Infrastructure: Increased processing and waste rock handling capacities.
• Development Support: Facilitating the development of the "TV set" project and supporting the expansion of Hoyle Pond and Palmer.
• Human Capital: Access to a highly skilled workforce essential for executing the company’s growth strategy.
• Synergies: Realization of significant cost efficiencies and access to high-potential exploration ground.

Exploration and Resource Development

The company reported successful exploration results across its portfolio, focusing on resource conversion and expansion:

• Hoyle Pond: Intersected 13.52 g/t gold over 9.1 meters.
• Old Creek: Intersected 4.11 g/t gold over 30 meters.
• Palmer/Burnt Pond: The Burnt Pond pit (1.5 km from Palmer) yielded 1.94 g/t gold over 28.5 meters.
• TV Set: Initial drilling confirmed a broad, high-grade mineralization zone.
• Dome: Drilling returned high-grade intervals, including 72.46 g/t gold over 3.8 meters and 3.16 g/t gold over 15 meters.

Synthesis and Conclusion

Discovery Silver’s Q1 2026 performance demonstrates a successful balance between operational optimization and strategic expansion. By leveraging the increased throughput at the Dome Mill and the successful restart of the Hollinger pit, the company has established a strong foundation for its annual production targets. The acquisition of the Kidd operations serves as a critical catalyst, providing the necessary infrastructure and labor to support the development of new assets like TV set and the expansion of existing mines. Continued high-grade exploration results across multiple properties suggest significant potential for future resource growth, keeping the company well-positioned for the remainder of 2026.