Diablillos

Visualization of Conceptual Open Pits and Proposed Site Infrastructure at Diablillos

November 2023 Mineral Resource Estimate

Diablillos Mineral Resource Estimate – As of November 22, 2023

Deposit	Zone	Category	Tonnes (000 t)	Ag (g/t)	Au (g/t)	AgEq (g/t)	Contained Ag (k oz Ag)	Contained Au (k oz Au)	Contained AgEq (k oz AgEq)
Oculto	Oxides	Measured	12,170	101	0.95	178	39,519	372	69,523
		Indicated	34,654	64	0.85	133	71,306	947	147,748
		Measured & Indicated	46,824	74	0.88	145	111,401	1,325	218,335
		Inferred	3,146	21	0.68	76	2,124	69	7,677
JAC	Oxides	Measured	1,870	210	0.17	224	12,627	10	13,452
		Indicated	3,416	198	0.12	208	21,744	13	22,808
		Measured & Indicated	5,286	202	0.13	212	34,329	22	36,191
		Inferred	77	77	-	77	190	-	190
Fantasma	Oxides	Measured	-	-	-	-	-	-	-
		Indicated	683	105	-	105	2,306	-	2,306
		Measured & Indicated	683	105	-	105	2,306	-	2,306
		Inferred	10	76	-	76	24	-	24
Laderas	Oxides	Measured	-	-	-	-	-	-	-
		Indicated	464	16	0.91	89	239	14	1,334
		Measured & Indicated	464	16	0.91	89	239	14	1,334
		Inferred	55	43	0.57	89	76	1	157
Total	Oxides	Measured	14,040	116	0.85	184	52,146	382	82,975
		Indicated	39,217	76	0.77	138	95,594	974	174,196
		Measured & Indicated	53,257	87	0.79	151	148,275	1,360	258,087
		Inferred	3,288	23	0.66	76	2,415	70	8,049

Notes for November 2023 MRE:

1. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
2. The formula for calculating AgEq is as follows: Silver Eq oz = Silver oz + Gold oz x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).
3. The Mineral Resource model was populated using Ordinary Kriging grade estimation within a three-dimensional block model and mineralized zones defined by wireframed solids, which are a combination of lithology and alteration domains.  The 1m composite grades were capped where appropriate.
4. The Mineral Resource is reported inside a conceptual Whittle open pit shell derived using US$ 24.00/oz Ag price, US $1,850/oz Au price, 82.6% process recovery for Ag, and 86.5% process recovery for Au. The constraining open pit optimization parameters used were US $1.94/t mining cost, US $22.97/t processing cost, US $3.32/t G&A cost, and average 51-degree open pit slopes.
5. The MRE has been categorized in accordance with the CIM Definition Standards (CIM, 2014).
6. A Net Value per block (“NVB”) cut-off was used to constrain the Mineral Resource with the conceptual open pit. The NVB was based on "Benefits = Revenue-Cost" being positive, where, Revenue = [(Au Selling Price (US$/oz) - Au Selling Cost (US$/oz)) x (Au grade (g/t)/31.1035)) x Au Recovery (%)] + [(Ag Selling Price (US$/oz) - Ag Selling Cost (US$/oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost = Mining Cost (US$/t) + Process Cost (US$/t) + Transport Cost (US$/t) + G&A Cost (US$/t) + [Royalty Cost (%) x Revenue]. The NVB method resulted in an average equivalent cut-off grade of approximately 45g/t AgEq.
7. The Mineral Resource is sub-horizontal with sub-vertical feeders and a reasonable prospect for eventual economic extraction by open pit methods.
8. In-situ bulk density was assigned to each model domain, according to samples averages of each lithology domain, separated by alteration zones and subset by oxidation.
9. All tonnages reported are dry metric tonnes and ounces of contained gold are troy ounces.
10. Mining recovery and dilution factors have not been applied to the Mineral Resource estimates.
11. The Mineral Resource was estimated by Mr. Luis Rodrigo Peralta, B.Sc., FAusIMM CP (Geo), Independent Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”).
12. Mr. Peralta is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the potential development of the Mineral Resource.
13. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate significant figures.
14. Totals may not agree due to rounding.

Mineral Resource Estimate Methodology

• The November 2023 MRE was completed by Luis Rodrigo Peralta, B.Sc., FAusIMM CP (Geo), Independent Consultant, in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards incorporated, by reference, and in compliance with NI 43-101, and has been reviewed internally by AbraSilver.
• The MRE is the result of approximately 133,000 metres of drilling in 630 drill holes (historical and current). This includes the latest Phase III drill campaign, conducted in 2022/23, which totaled 24,077 metres.
• The MRE is based on the Oculto, JAC, Fantasma and Laderas deposits within the broader Diablillos property and is reported inside a conceptual Whittle open pit shell.  The cut-off grade was calculated using a Net Block Value calculation, based on the economic parameters outlined in the footnotes to the Table above.
• Gold and silver grades were estimated into the block model using reverse circulation drill holes, diamond drill holes including the recent drilling between 2019 to July 30^th, 2022. They were estimated applying the industry-standard estimation methodology of ordinary kriging and bias was reviewed using an inverse distance squared estimate for comparison. Drill hole intervals have been composited to a length of 1 m, which is the average sampling length for core sampling.
• Grade capping has been applied to composited grade intervals on a case-by-case basis within each estimation domain. The estimation domains were defined using a combination of lithology domains, alteration domains, and oxide / sulphides state, defining a set of 24 domains for gold and silver.

Significant Exploration Upside Potential

Numerous opportunities exist to further expand the Mineral Resources within the existing deposits, in addition to defining new mineralized zones through a step-out exploration drill campaign.  The Company is currently prioritizing and sequencing the various targets ahead of the next exploration campaign which is expected to commence in Q1/2024.

• Oculto: MRE is based on a total of 457 drill holes, or approximately 104,800 metres.   Additional drilling would focus on expansion of the highest-grade portion of Oculto, the Tesoro Zone, and exploration of potential continuation of mineralization along known zones towards the northeast.
• JAC:  The new high-grade JAC deposit was discovered in August 2022 and the maiden MRE is based on a total of 112 drill holes, or approximately 20,800 metres.   Additional drilling would focus additional mineralized zones within the JAC magnetic low zone.
• Fantasma:  MRE is based on a total of 39 drill holes, or approximately 4,300 metres.   Additional drilling would focus on the potential continuity of mineralization along the approximately one kilometre zone connecting the Fantasma body to the Oculto deposit.
• Laderas:  MRE is based on a total of 22 drill holes, or approximately 3,200 metres.   Additional drilling would focus on continuity of the higher grade parts of the zone, as well as northeast extensions.
• Other Priority Targets Beyond the Current MRE:  Reconnaissance exploration, in combination with structural mapping and magnetic surveys, continues to generate new targets in other underexplored areas of Diablillos.  These targets include JAC North and Alpaca, neither of which have been included in the MRE due to insufficient drilling, as well as other zones with similar geological characteristics, where additional drilling is also warranted. 
  • JAC North: Initial drilling on the northern edge of the JAC deposit intersected a new zone of silver mineralization, JAC North, suggesting the possibility of a structure within the magnetic low anomaly parallel to the JAC deposit. This new target will be followed up in the next drill program.
  • Alpaca:  Historical drilling intersected silver mineralisation in the Alpaca area, located several hundred meters northwest of JAC. An interpretation of the magnetic signature suggests that a perpendicular zone of silver mineralisation may connect JAC with Alpaca. This is a high priority for the next drilling campaign.

Supporting Technical Disclosure

• Metallurgical recoveries: Metallurgical recoveries used in the MRE and open pit optimization were based on a new geo-metallurgical model built using recent metallurgical test works performed at the SGS Laboratory in Vancouver. This new model incorporates five domains, based on a master composite for each, comprised of approximately 15 samples per domain. A fixed value of metallurgical recovery has been applied to each domain. Overall weighted average recoveries of these five domains are 82.6% for silver and 86.5% for gold.  
• Open pit slopes: Open pit shell slope angles at Oculto are based on the 2022 geotechnical drilling and subsequent modelling. Six geotechnical sectors have been defined for use in the open pit optimization with the angles varying between 35 degrees in the unconsolidated overburden to 55 degrees in the granitic rock type, with the average overall angle being 51 degrees. As the JAC deposit is covered with unconsolidated colluvium a conservative pit slope angle of 35 degrees was used. Importantly the overburden at the JAC deposit is expected to be free-digging, resulting in lower mining costs.
• Updated operating cost estimates from the ongoing PFS have been used in the Net Value per Block method, totaling US$28.23/tonne processed, and these have been based on 73% firm quotations.
• A full Technical Report in respect of the November 2023 MRE will be prepared in accordance with NI 43-101 and will be filed on SEDAR+

Qualified Persons and Technical Information

The site visit, review of various geological aspects including sampling, drill core, logging, assay laboratory, independent check sample and November 2023 Mineral Resource estimate were done by Mr. Luis Rodrigo Peralta, B.Sc., FAusIMM CP (Geo). Mr. Peralta is an independent Qualified Person (“QP”) as defined by the NI 43-101.

Diablillos Phase III Exploration Campaign

The 22,000-metre Phase III drill program at the Diablillos project was successfully completed in August 2023.   The drill program achieved all of the main objectives, which are summarized below:

• Systematically drill off silver-dominant mineralisation at the JAC zone in order to estimate Measured and Indicated Mineral Resources that are incorporated into an updated Mineral Resource estimate and Pre-Feasibility Study on Diablillos.
• Delineate the margins of the JAC zone mineralization and conduct geotechnical drilling necessary for a conceptual open pit design.
• Conduct reconnaissance drilling at other targets on the Diablillos land package (including JAC North, Fantasma and Alpaca).

As part of the Phase III campaign, the Company discovered the new high-grade JAC zone, for which a maiden resource was announced on November 27, 2023.

Highlights of selected high-grade drill results at JAC reported from the Phase III drill program are summarized in the Table below:

JAC Zone – Highlights of Phase III High-Grade Intercepts at JAC

Drill Hole	From (m)	To (m)	Type	Interval (m)	Ag (g/t)	Au (g/t)	AgEq1 (g/t)
DDH-22-019	89.0	176.0	Oxides	87.0	346.0	0.15	356.5
DDH-22-044	121.0	179.0	Oxides	58.0	208.8	0.20	222.8
DDH-22-046	123.0	165.5	Oxides	42.5	400.5	0.11	408.2
DDH-22-052	139.5	164.5	Oxides	25.0	754.4	0.12	764.2
DDH-22-053	140.5	168.5	Oxides	28.0	266.4	0.64	318.8
DDH-22-056	110.0	167.5	Oxides	57.5	141.4	0.27	163.5
DDH-22-057	144.0	164.0	Oxides	20.0	498.6	0.10	506.8
DDH-22-058	138.0	152.5	Transition	14.5	176.2	-	176.2
DDH-22-060	114.0	154.0	Oxides	40.0	203.4	-	203.4
DDH-22-061	65.0	168.0	Oxides	103.0	138.7	-	138.7
DDH-22-062	119.0	170.0	Oxides	51.0	169.4	0.20	185.8
DDH-22-063	56.0	85.0	Oxides	33.0	143.4	-	143.4
DDH-22-063	135.0	169.0	Oxides	34.0	118.6	0.08	125.2
DDH-22-067	143.0	179.0	Oxides	36.0	463.3	0.71	521.5
DDH-22-067	179.0	206.0	Sulphides	27.0	745.0	1.54	871.1
DDH-22-075	151.0	167.0	Oxides	16.0	604.4	0.82	671.5
DDH-22-076	147.0	169.0	Oxides	22.0	476.8	0.20	493.2
DDH-22-076	169.0	177.5	Oxides	8.5	1,952.8	6.66	2,498.3
DDH-22-077	60.0	92.0	Oxides	32.0	121.9	-	121.9
DDH-22-078	58.0	99.0	Oxides	41.0	103.5	-	103.5
DDH-22-079	144.0	179.0	Oxides	35.0	199.2	0.36	228.7
DDH-22-080	50.0	102.0	Oxides	52.0	125.1	-	125.1
DDH-22-081	128.0	165.0	Oxides	37.0	179.3	-	179.3
DDH-22-082	154.5	181.0	Transition	26.5	311.4	0.43	346.6
DDH-22-083	159.0	184.0	Transition	25.0	773.8	0.28	796.7
DDH-22-086	158.0	167.0	Sulphides	9.0	342.3	-	342.3
DDH-23-002	148.0	165.0	Transition	17.0	288.6	0.14	300.1
DDH-23-003	155.8	161.5	Sulphides	5.8	502.2	-	502.2
DDH-23-004	136.0	150.0	Oxides	14.0	3,024.5	0.21	3,041.7
DDH-23-007	115.0	119.0	Oxides	4.0	2,320.0	-	2,320.0
DDH-23-009	161.0	169.5	Oxides	8.5	479.2	0.15	491.5
DDH-23-010	132.0	177.5	Oxides	45.5	233.4	-	233.4
DDH-23-014	127.0	173.5	Oxides	46.5	185.0	0.50	226.0
DDH-23-017	92.0	104.0	Oxides	12.0	876.1	-	876.1
DDH-23-021	161.5	193.5	Oxides	32.0	530.8	0.60	579.9
DDH-23-024	144.0	161.0	Oxides	17.0	828.9	-	828.9
DDH-23-025	100.0	179.0	Oxides	79.0	237.6	0.15	249.9
DDH-23-036	140.0	150.0	Oxides	10.0	520.0	0.04	523.3
DDH-23-039	105.0	124.0	Oxides	19.0	253.4	-	253.4
DDH-23-046	157.0	160.0	Oxides	3.0	2,070.0	0.27	2,092.1
DDH-23-050	156.5	167.0	Oxides	10.5	281.4	-	281.4
DDH-23-061	134.0	153.5	Oxides	19.5	272.8	-	272.8
DDH-23-070	41.0	105.0	Oxides	64.0	148.1	-	148.1

Note: All results are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths.

¹ AgEq based on 81.9(Ag):1(Au) calculated using long-term prices of US$25.00/oz Ag and US$1,750/oz Au, and 73.5% process recovery for Ag, and 86.0% process recovery for Au as demonstrated in the Company’s PEA in respect of Diablillos dated January 13, 2022, using formula:  AgEq g/t = Ag g/t + Au g/t x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).

Over US$50 million has been spent on exploration at Diablillos totaling over 100,000 meters of drilling in over 450 holes.

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