Sierra Madre Gold and Silver (SM) investor relations material

Company overview and recent milestones

• Announced commercial production at La Guitarra Silver and Gold Mine on January 1, 2025, achieving immediate cash flow positivity and six consecutive quarters of revenue and profit growth.

• Acquired Del Toro Silver and Gold Mine from First Majestic for $40–$60 million, with closing expected within two weeks pending final Mexican antitrust and TSX Venture approvals.

• Raised $57.5 million to support the Del Toro acquisition, resulting in a strong cash position.

Operations, expansion, and community impact

• La Guitarra mine is located near Mexico City, employing 350 people and significantly boosting the local economy, impacting around 3,000 people.

• Del Toro mine is in Zacatecas, a prominent mining region, and will be operated by an experienced Mexican team.

• Two-phase expansion at La Guitarra: Phase 1 increases production to 750 tons/day by June 2026; Phase 2 targets 1,200–1,500 tons/day by Q3 2027, both fully funded.

Financial performance and cost management

• Q4 2025 net income reached $7.4 million, with most annual revenue generated in that quarter.

• Current cash costs are $27/oz, expected to decrease as economies of scale and equipment purchases take effect.

• Analysts estimate all-in sustaining costs (AISC) at $22/oz, with further reductions anticipated as throughput increases.