Exhibit 96.1

Mineral Resource and Mineral Reserve Update

Los Gatos Joint Venture, Chihuahua, Mexico

Submitted by:

Gatos Silver, Inc.

925 W Georgia Street, Suite 910

Vancouver, British Columbia, Canada V6C2G3

Prepared by:

Curtis Clarke, MMSAQP, PMP

Ronald Turner, P. Geo., MAusIMM CP

Paul Gauthier, P. Eng., PEO, OIQ

Adam Johnston, FAusIMM CP (Met)

Isaac Ahmed, PEO, P. Eng.

Dawn Garcia, CPG, AIPG

Tierra Group International

Report Date: November 10, 2022

Effective Date: July 1, 2022

Table of Contents

TABLES

FIGURES

The operating Cerro Los Gatos (CLG) underground mine and processing facilities are approximately centered on Latitude 27° 34’ 17” N, Longitude 106° 21’ 33” W, located approximately 7 kilometers (km) from the town of San José de Sitio, within the Municipality of Satevó in the State of Chihuahua, Mexico. The mine is approximately 120 km south of the state capital of Chihuahua City and approximately 100 km north/northwest of the historical mining city of Hidalgo del Parral (Figure 1.1). In this Technical Report Summary (TRS), Cerro Los Gatos (CLG) is defined as the underground mine, processing facilities, TSF and supporting on-site infrastructure, as well as the known extents of the Cerro Los Gatos Mineral Reserve and Mineral Resource.

Figure 1.1: Cerro Los Gatos Location Map

The CLG life of mine (LOM) plan which is based on the Mineral Reserves has:

The CLG life of mine plan (LOM Plan) described in this TRS covers the period starting July 1, 2022, through to the end of the reserve life in 2028, with closure and reclamation activities expected to occur during 2029 through 2032.

The Los Gatos Joint Venture (LGJV) holds concessions through its Mexican subsidiary, Minera Plata Real, S. de R.L. de C.V. (MPR). MPR is 70% owned by Gatos Silver, Inc. and 30% owned by Dowa Metals & Mining Co., Ltd. MPR is the owner of mineral rights held in seventeen titled concessions, covering approximately 103,000 hectares (ha). MPR has purchased surface lands covering the known extents of the CLG and Esther Resource areas, totalling approximately 5,479 hectares, and has negotiated and ratified an access agreement with the community of San José del Sitio for the use of the access road.

Environmental baseline data collection began in May 2010, to prepare for the development of future environmental studies (EIS) required for the project. The Environmental Impact Study (Manifestación de Impacto Ambiental) for the development of the Cerro Los Gatos project was filed with the Mexican Environmental Regulatory authorities (SEMARNAT) on December 12, 2016, and was approved in 2017. A positive Feasibility Study (FS) was completed on CLG in 2017 (Tetra Tech, 2017). The CLG mine was constructed in 2018 and commissioned in early 2019 to produce concentrates containing silver, lead, zinc, and gold, which are shipped to smelters for processing.

The CLG and Esther deposits are embedded within andesites of the Lower Volcanic Series (LVS) of the Sierra Madre Occidental (SMO) volcanic province. On the LGJV concessions, the LVS is exposed in a horst feature that stretches from the CLG deposit approximately 25 km to the northwest to the edge of the concession package.

CLG is an Intermediate sulphidation epithermal vein developed within a listric fault zone. Mineralization at CLG is characterized by silver, lead, zinc, and copper sulphides and their corresponding oxides, along with fluorite, manganese, barite, and traces of gold associated with quartz and calcite veins. The veins vary in orientation from West-Northwest to North-Northwest and vary in thickness up to 25 meters (m).

A plan view of the local geology and location of mineralization is provided in Figure 1.2.

Figure 1.2: Geological Map of the Cerro Los Gatos Deposit Area

The Cerro Los Gatos deposit is a listric-shaped mineralized horizon hosting steeply to shallowly dipping mineralized-shoots at depth. Mineralization of interest occurs for approximately 1,800 m in length, between an elevation varying roughly between 800 masl and 1,400 masl. The top of the mineralized horizon at Cerro Los Gatos is generally located at an elevation of 1,400 masl. The natural topographic surface is in the order of 1,570 masl ± 50 masl.

Figure 1.3 provides a typical cross-section view of the CLG deposit.

Figure 1.3: Geologic Model, Section Looking Northwest through the Central Zone Showing the Lithological Sequence at Los Gatos Deposit

The veins at Cerro Los Gatos contain silver, zinc, and lead. Lower concentrations of gold and copper are also associated with the veining.

Silver mineralization occurs dominantly as acanthite (argentite) and native silver.

Zinc mineralization occurs as sphalerite, zinc silicates and zinc carbonates of variable grain sizes disseminated in quartz vein material, as open-space filling in cavities, and as replacements in the andesitic and dacitic flow units. Sphalerite ranges from yellow to brown in color and is deposited in a similar style but is not always associated with the galena mineralization. Zinc oxides after sphalerite also exists down along fault structures through the deposit.

Lead mineralization occurs primarily as galena and lead oxide minerals of varying grain sizes that are disseminated in quartz vein material, as open-space filling in cavities, and as replacements in the andesitic and dacitic flow units.

Copper mineralization occurs dominantly as chalcopyrite disseminated within quartz veins.

Gold mineral species have not been identified visually but are present in small quantities in assay results.

Exploration at CLG by MPR has been completed primarily by diamond drilling (DD) and limited non-drilling exploration activities, including surface geochemical assay, geophysics, surface mapping, and structural studies.

The Mineral Resource estimate uses geological and geochemical data that has been collected up until March 31, 2022, for CLG and July 31, 2022, for Esther. As of March 31, 2022, 1,476 drill holes relevant to the LGJV property had been completed by MPR, for a total of 373,880 m drilled. Total drilling with assays available for the CLG Mineral Resource estimation is approximately 1,131 holes, totalling 221,385 m of core. The CLG Mineral Resource incorporates an additional 36,233 meters of surface resource drilling in 100 holes and 51,279 meters of underground definition drilling in 623 holes since the 2020 Technical Report. The Mineral Resource for Esther incorporates an additional 22,565 meters of surface resource drilling in 63 holes since the 2020 Technical Report.

The sample collection and preparation, assaying and security procedures implemented by MPR use methodologies in accordance with internal and mining industry standards and were continuously monitored to ensure the integrity of the data collected.

The database used for the modeling was checked for inconsistencies such as: overlapping intervals, excessive path deviation between measurement intervals, duplication of collars, sample depth greater than collar depth, among others. The data used have been validated and reviewed by an appropriate Quality Assurance/Quality Control (QA/QC) program in the main stages of the process and are considered adequate for Mineral Resource estimation purposes.

Material factors that may cause actual results to materially vary from the conclusions, estimates, designs, forecasts, or projections, in the forward-looking information include any significant differences in any one, or more, of the material factors, or assumptions, set out in this subsection, including geological and grade interpretations and controls, as well as assumptions and forecasts associated with the establishment of the prospects for economic extraction.

Mineral Resources were estimated using exploration and definition drilling and associated sampling data available for CLG.

The estimation is based on a 3D geological model built using implicit modeling to characterize the structures and establish the geometry and continuity of the veins that form the estimation domains.

Exploratory Data Analysis (EDA) and geostatistical analysis were completed on the raw and composite datasets to help define the interpolation parameters and Mineral Resource classifications. Estimation was completed using Ordinary Kriging (OK) using nested passes with outlier data constraints, variography, and estimation plan defined per each estimation domain.

The Mineral Resource classification in this disclosure is based on drill hole spacing grids, the closeness to mine infrastructure (production drifts), and the level of geological confidence for the continuity and grade of each vein.

Mineral Resources were constrained based on a stope optimization that considered economic NSR cut-off value, price, mining costs, infrastructure constraints, and mining licenses. For the cut-off definition a Net Smelter Return (NSR) calculation was used for generation of the stope optimization shapes. The parameters applied to the

calculation of NSR in the block model (including metal values, recovery factors, transportation costs, etc.) were provided by MPR and reviewed and considered reasonable by Golder.

Mineral Resource estimates, for CLG and Esther deposit are shown in Table 1.1 and Table 1.2, respectively, and are reported exclusive of Mineral Reserves and are summarized on a 100% ownership basis. The effective date of the Mineral Resource estimate is July 1, 2022.

Table 1.1: CLG Mineral Resource Estimate, Exclusive of Mineral Reserves – 100% Ownership Basis

Notes:

Table 1.2: Esther Mineral Resource Estimate, Exclusive of Mineral Reserves – 100% Ownership Basis

Notes:

To establish the Mineral Reserve, the Mineral Resource is imported into design software which incorporates modifying factors in evaluations to determine economically viable blocks to mine. Economically viable blocks are grouped into mineable shapes using stope input criteria defined by the mining engineers. Key modifying factors considered in the mine design are:

For polymetallic deposits, the NSR value is a useful expression for describing the value of mineralized material and for establishing a NSR cut-off expressed by the same measure, below which material is deemed uneconomic and therefore excluded from Mineral Reserves estimates. The NSR value relates to the price concentrate will receive from the mine customer – generally a smelter. The NSR value of the metal contained in a tonne of concentrate is then applied to the metallic content of the corresponding run-of-mine (ROM) tonnes. In this way, a common metric is established for the economic threshold required to be exceeded by material designated as “mineralized material” as well as for an assignment of value of the tonnes to be mined from any one block, and the entirety, of the deposit.

The parameters used in the calculation of NSR in the block model (including metal values, recovery factors, transportation costs, etc.) were provided by MPR and reviewed and considered reasonable by Golder. For NSR cut-off estimation purposes, the NSR value of the mineralized material must first be established and expressed in terms of value per tonne mined and processed, commonly referred to as ROM tonnes.

NSR = Revenue – (Treatment charges + Transportation charges + Refining charges)

Where:

Revenue = US$ value per tonne of mineralized material mined 

Treatment charges = concentrate treatment cost per tonne mined 

Transportation charges = concentrate transportation cost per tonne mined 

Refining charges = concentrate refining cost per tonne mined

The CLG processing plant treatment process produces two concentrates – a zinc concentrate and a lead concentrate. The NSR value for a tonne of mineralized material is the sum of the revenue one tonne of ROM would generate from the metal content of the zinc concentrate and the lead concentrate.

Cut-off NSR values have been developed for the various mining methods employed at the CLG mine, based on costs projected for the life of mine which were informed by historic experience for such costs, including provisions for reasonably expected long-term improvements. Table 1.3 shows the cut-off cost results for different mining methods, further segmented to apply to those stopes, which could be mined, if overhead costs are carried by higher-value “full cost” stopes.

Table 1.3: NSR Cut-off Segmented by Mining Methods

Notes:

Table 1.4: Impact of the Marginal and Pure Marginal Material on the Mineral Reserve

Notes:

Table 1.4 shows the impact of the inclusion of marginal tonnes of mineralized material that must be mined to access blocks and stopes of higher-grade material. If excess processing plant capacity exists, the material can be sent to the mill. If not, it would have to be stockpiled until the cessation of mining activity, enabling processing when overhead and fixed costs are much lower. To date, the CLG mill has demonstrated capacity to accept material in excess of 15% above feasibility design capacity and the Mineral Reserves statement has thus added the 388,000 tonnes of marginal material into the Mine Plan. This material constitutes less than 7% of the Mineral Reserve and, as demonstrated by Table 1.4, has a net impact of marginally reducing the NSR value of the Mineral Reserve by 4% to US$199/tonne, a level well above the NSR cut-off.

The Mineral Reserve available for mining and processing as of July 1, 2022, includes the in-situ tonnes defined on Table 1.4 plus 15.4 kilotonnes of mined material sitting on the stockpile on surface awaiting processing. Table 1.5 presents the Mineral Reserve for CLG at July 1, 2022.

Table 1.5: Cerro Los Gatos Mineral Reserves Statement

Notes:

The average value of the Mineral Reserve is $199/t, which is $110/t above the NSR cut-off for the longhole mining method and $100/t above the NSR cut-off for cut-and-fill mining. Therefore, it is concluded that the NSR cut-off has a low impact on the Mineral Reserves.

CLG is a developed and operating underground mine that uses mechanized equipment to extract mineralized material containing the metals silver, lead, zinc and gold. A fleet of rubber-tired mining equipment is used to develop tunnels in waste rock, prepare stopes for production and mine mineralized material. Blasted ore is loaded and hauled by diesel-powered trucks to a surface stockpile area from where it is re-handled by front-end loader (FEL) into the crusher and transported to the processing plant by conveyor.

The main access decline connects the surface portal to the Northwest and Central internal ramps at the 1420 Level. The mining methods used at CLG are two bulk stoping methods, transverse longhole, and longitudinal longhole, as well as a more selective overhand cut-and-fill mining method.

Development occurs in the decline ramp to access deeper reserves and on levels and sublevels for stope development. Mine services are extended with development headings. There are five ventilation shafts providing

fresh air into the mine and exhausting foul air, in addition to the decline. Two more ventilation raises are in the Mine Plan to provide fresh air to the SE Zone.

The deposit is shallow with weak rock strength. The rock mass is generally characterized as fair to poor. CLG has developed a ground support rating system from which a range of rock support standards and ground support specifications have been developed and are used to ensure appropriate ground support is installed throughout the underground workings. CLG’s technical services department manages the ground support standards and provides monitoring and quality control / quality assurance oversight.

The water table is near the surface at CLG, and much effort has been expended to understand the source of the water and develop a plan to lower the table and remove the waters, which are hot, from the mine. Wells have been drilled from surface and underground and pumps installed to draw down the water table by pumping water to surface for cooling, settling and discharge to the environment. The LOM Plan includes additional capital for mine dewatering and mine water management, including the installation of additional wells and pumping infrastructure. A detailed discussion of the hydrogeology and dewatering system at CLG is provided in Section 13.0.

The mine is divided into zones, NW, Central, and SE, which are structurally controlled. The cut-and-fill mining technique has been the prominent mining method since mining activity began in 2019, partially due to the attitude of mineral-bearing veins. Steeper, wider veins are exploited with lower-cost longhole mining methods that will soon become the predominant mining method.

Typical cut-and-fill stopes are 5m wide x 5m high and extend along the strike of the veins. In some locations the veins are wide necessitating a transverse approach, described in Section 13.0. Longhole stopes must be exposed above and below, before drilling and blasting operations can commence. A slot raise is then drilled (or blasted) to provide a free face, then large production blasts break the ore for extraction from the lower sublevel. All mined ore is trucked to surface and void stopes are backfilled.

The mine currently produces nominally 2,900 t/d of ore for the mill, in addition to the mining of waste rock for mine development. Stopes are scheduled for development, production and backfill in cycles to ensure a constant supply of blasted ore for removal to the ROM pad. Sequencing of stopes considers development schedules, mineral content, available services, and considerations for structural integrity of the mine. The mine schedule for CLG will consume the identified in situ Mineral Reserves by 2028, as shown on Table 1.6.

Table 1.6: LOM Production Schedule

Note: The mill will process mined tonnes shown on Table 1.6 which includes 15.4 kilotonnes (kt) of stockpiled ore.

To date, mined out stopes have been backfilled with Cemented Rock Fill (CRF), which is batched on surface and trucked to stopes. A paste backfill plant has been constructed and will be commissioned in the fourth quarter of

2022. Paste fill will be pumped underground and distributed to stopes in pipes. The process will be more productive, lower cost, and will consume approximately 40% of plant tailings thereby reducing the volume to be stored in the Tailings Storage Facility (TSF).

The operation draws experienced miners from Chihuahua State and beyond, providing comfortable onsite accommodation and board. Miners work a rotation roster on site followed by regular rest and recreation periods common to many mining operations in Mexico and abroad.

Challenges for the mining operation include:

CLG is aware of and actively manages these mining operational challenges.

The CLG processing plant employs a conventional design and flotation technology common to base metal operations. The processing flow sheet is comprised of a crushing and grinding circuit, including jaw crusher, semi-autogenous grinding (SAG) mill and ball mill, which feeds a flotation plant consisting of lead and zinc flotation circuits (including rougher, regrind and cleaner stages), lead and zinc concentrate thickening, and tailings thickening.

Since commencing operations, processing improvements, relative to the 2017 Feasibility Study design, have been achieved through equipment additions and optimized maintenance and operating practices. The actual plant performance from 2019 through to 2022 has been the primary basis for the metallurgical predictions in this Mineral Reserves update study. During 2019 to 2022, the main sources of processed material were the Central and NW Zones. While the Central and NW zones make up the majority of the remaining Reserve there will be increasing contributions from the SE Zone.

There is no indication that the characteristics of the material being mined will change and therefore the throughput and recovery assumptions applied for future processing are considered as reasonable for the LOM. The plant equipment sizing is robust for the throughput projected.

The plant operating practices are consistent with the design, metallurgical testwork described in Section 13.0, and performance predictions that have been used in developing the Mineral Reserve.

The construction design nominal throughput basis for the processing facility was 2,500 t/d, 365 days per year or 912,500 tonnes per year (t/y) of ROM on an operating basis of 92% utilization.

The 2019 to 2022 processing recovery results have been better than the recoveries achieved in the 2016 Feasibility test program. The 2022 LOM Plan is based on average monthly metal recoveries after removal of outliers.

CLG produces zinc concentrates with significant silver content, however due to the properties of the feed mineral (type of grain, mineral associations, grade of oxidation, etc.) fluorine bearing minerals are simultaneously recovered which incurs minor financial penalties on the sale to smelters. A process was developed to leach the fluorine from the zinc concentrates using a hot sulphuric acid, aluminium sulphate leach process and construction is underway to install a fluorine leach plant by mid-2023. The process has been suitably demonstrated for implementation, but auxiliary processes, such as gas scrubbing and neutralization require further testwork and engineering before implementation. CLG is currently undertaking the required testwork and engineering.

The key process parameters are outlined in Table 1.7.

Table 1.7: Process Parameters

CLG is an operating mine with significant existing infrastructure in place supporting the operation, including offsite and onsite components. Existing offsite infrastructure comprises grid power distribution to the mine and previously completed road upgrades to facilitate heavy equipment transport during construction, material deliveries and concentrate shipments, in addition to worker traffic. Onsite infrastructure is comprised of office and maintenance facilities, processing facilities, a TSF, backfill plants, a refrigeration plant, a mine ventilation system, and dewatering ponds for sediment settling and water cooling.

The underground mine operates three air extractive fans, totalling approximately 1.09 M cubic feet per minute (CFM) of capacity. The air intake for the mine is approximately 1.12 M CFM (MPR, 2022) through two refrigeration plants providing cooled air to downcast fresh air raises, and the decline ramp. The current installed capacity of the ventilation system is 1.3 M CFM and plans are in place for an expansion to provide fresh air to the SE Zone.

The mine dewatering system consists of both surface and underground infrastructure. In total, there are currently eleven surface borehole/well pumps located across the length of the ore body. Discharge flowrates from each borehole/well pump are captured through a flowmeter (Figure 15.5). There are four main underground pumping stations, three of which are located in the NW zone and one located in the Central zone (Figure 15.6). As the

mine expands, it is anticipated that additional dewatering infrastructure will be required to manage the water underground.

Site infrastructure in addition to production-related installations are typical of a mining operation of this scale located at a distance from supporting populations and include a concrete batch plant, maintenance shops, administration and engineering building, mine dry for underground personnel, warehouse facilities, security guard house and gates, camps and cafeterias.

The CLG TSF has been constructed and tailings have been deposited in the facility since 2019. Regular dam raises have been conducted to increase the volume of the TSF.The material used in the dam construction is mostly rockfill with some screened filter material. All TSF stages are built using local borrow materials, primarily rockfill excavated and blasted from foundation material within the TSF. The TSF uses downstream construction methods.

The tailings dam has a composite liner consisting of geosynthetic clay liner (GCL) overlain by a 60-millimeter (mm), Linear Low-density Polyethylene (LLDPE) geomembrane (Figure 15.13). This lining system also covers the entire impoundment. The lining system is placed on a 0.15-m thick bedding fill.

The original permitted TSF design consists of four Stages (I to IV) with an ultimate crest elevation of 1638.0 m. However, due to a change in the tailings delivery rate to the TSF with the planned commissioning of the paste plant in the fourth quarter of 2022), the ultimate TSF will have a minimum crest elevation of 1630.5 m which is adequate for the revised and reduced volume of tailings to be stored based on the Mineral Reserve and LOM Plan.

To date, four raises have been constructed to the existing crest elevation of 1628.0m. The LOM Plan requires one additional raise to be built during 2024 to a minimum crest elevation of 1630.5 m.

Current LOM Mineral Reserves are projected at 6.07 Mt as of July 2022, which includes 0.50 Mt of concentrate and 5.57 Mt of tailings. It is projected that 40% of the tailings produced by the Process Plant will be sent to the Paste Plant, for use as underground backfill, while the remaining 60% will be sent to the TSF. As a result, tailings accumulated in the TSF are estimated at 5.68 Mt (2.34 Mt stored until June 2022 and 3.34 Mt from July 2022 until LOM end).

The TSF design criteria were established based on the facility size and risk using applicable dam safety and water quality regulations and industry best practice for the TSF embankment on a standalone basis. The dam has a blanket drain in the foundation to control and reduce the water level in the dam due to any infiltration that could occur. Incorporating the blanket drain will improve the stability of the embankment in the event of liner failure.

The TSF has an Operations, Maintenance, and Surveillance (OMS) Manual that describes operating and monitoring procedures to confirm the condition of the embankment, foundation, and performance of the impoundment. Regular TSF inspections are completed, including annual inspections by the Engineer of Record.

Mexico has established environmental laws and regulations that apply to the development, construction, operation and closure of mining projects, and the Company has management systems in place to ensure ongoing regulatory compliance. Of particular importance are the air, surface water and groundwater quality monitoring programs. An

environmental compliance report is submitted annually to the Mexican environmental authority. The last compliance report submission resulted in a request for clarification, which has been provided.

The Company has all permits for the current operations and awaits authorization of a modification of the environmental permit that will add the fluorine leach plant to the metallurgical process. The modification request was submitted March 17, 2022, with additional information to the environmental agency submitted on June 14, 2022. The authorization is in process, and there were no concerns identified that it would not be authorized.

The Mexican environmental agency has established new surface water discharge standards that will be in effect in April 2023. The mine water that is currently discharged exceeds the water temperature criteria that is in the revised standards. The Company is in the process of design and construction of a cooling pond with an energy dissipator to reduce the temperature of water pumped from the underground mine to meet the revised temperature standard and anticipates that the process will be in place prior to the enforcement of the revised discharge standards.

MPR has produced several social baseline studies that collected information from official statistical sources, as well as interviews and participatory workshops with stakeholders and the local communities in the area of direct influence. The information obtained has been used to identify social impacts in the communities, as well as social risks for the mining operations. Prevention and mitigation plans were developed for the Community Social Management Plan, which is updated from time to time and monitored against.

The MPR community relations team has had a presence in the region since the mineral exploration phase and has established communication and collaboration channels based on transparency of information. The objective of the MPR Community Relations Policy is to establish the guidelines for institutional work with the neighboring communities and for MPR social interaction projects. Projects are to promote social development, either independently or through strategic alliances with various institutions (public or private), that are aimed at addressing health, education, culture, and basic infrastructure, based on respect for human rights, beliefs, and local characteristics.

The Community Relations Model is based on methods to prevent and reduce risks and socio-environmental impacts and is used to develop the social and environmental investment portfolio. MPR carries out continuous monitoring of the identified social risks, as well as stakeholder mapping. The social and environmental investment portfolio is made up of 12 programs divided into six capital analysis areas: natural, infrastructure, economic, social, relational, and community relations management. MPR has established strategic alliances with stakeholders at the state, municipal and local levels for the execution of its projects.

MPR has established a community relations office in the nearby town of San José del Sitio, which allows for a permanent point of contact between the communities and the mine. MPR has established various commitments for the hiring of local labor, as well as in the acquisition of services during the life of the project, through agreements with stakeholders. A total of 138 direct employees from the area of influence work for CLG, including 69 from San José del Sitio.

A conceptual closure strategy was presented in the closure plan (Tetra Tech, 2018) that was submitted to the Mexican environmental authority. The closure cost was estimated at about $14.9M.

Currently there are no expansion plans requiring major capital spending.

Golder has reviewed the planned sustaining capital expenditures for the operation and agrees with their reasonableness. The remaining LOM will not necessitate major new equipment purchases.

Underground development cost is directly correlated with development meters with unit rates for lateral and vertical development applied to the number of meters of mine development required in each year. For the Mineral Reserve LOM Plan, mine development is substantially complete by 2025, with only 42 meters of development thereafter. Table 1.8 shows the capitalized mine development schedule and costs for the mine and other production-related infrastructure and equipment.

Table 1.8: Mine and Plant Capital Spending Schedule

Operating cost estimates were developed based on recent actual costs with specific adjustments for reasonably expected business improvement initiatives underway. They were prepared on an annual basis using a detailed build-up of individual cost centres and considering specific mine site activity levels and cost drivers. Operating expenses at CLG have been reviewed by Golder and found to be reasonable for a mechanized mine utilizing the cut-and-fill and bulk longhole mining methods and associated processing plant for the production of saleable concentrates. The plant has demonstrated typical operating costs for a facility of its size.

Operating cost expenditures for the LOM Plan are estimated at $544.6 million from July 1, 2022, to the planned end of the LOM in 2028. Table 1.9 summarizes the expected site operating expense projected to the end of mine life to consume the defined Mineral Reserve, segmented by major cost centre of Mining, processing which includes TSF operations, and General and Administrative.

Table 1.9: Projected Operating Costs

The economic analysis for this TRS was performed by Gatos Silver, Inc. (GSI) using GSI’s financial model. Key inputs to the financial model include the Reserve LOM Plan inclusive of operating and capital costs, commodity prices and exchange rate assumptions.

The LOM Plan economic analysis supports the declaration of Mineral Reserves. Golder reviewed the LOM Plan and economic model components relevant to the LOM Plan in detail.

Economic assumptions are based on analysts’ long-term consensus forecasts as of September 2022 (see Table 1.10).

Table 1.10: Economic Assumptions

The LGJV mill produces two products, a lead concentrate and a zinc concentrate. Payable metals are evaluated using the recovery parameters described in Section 14.0 as well as management’s estimates of treatment and refining charges for each concentrate based on a marketing consultant’s input and current market conditions.

The Mineral Reserve LOM Plan begins on July 1, 2022, with operations continuing through the first quarter of 2028 (5.75 years). The financial model includes closure costs of $14.9 M over the 2029-2032 period. The Reserves LOM Plan includes in-process mineralized material of 15,376 tonnes as of June 30, 2022.

The economic analysis is in real (2022) dollars and on an unlevered basis. Corporate administration, management fees, interest expense, and exploration activities are excluded from the economic analysis used to support the Mineral Reserves.

The Reserves LOM Plan assumes a 2,890 t/d processing rate for a total of 6.07 Mt of mineralized material through the mill at average ROM grades of 244 g/t silver, 4.48% zinc, 2.14% lead, and 0.27 g/t gold over a 5.75-year period. The Reserve LOM Plan supports the Mineral Reserves as it demonstrates economic viability via projected revenues exceeding all projected operating, sustaining capital, and closure costs.

Table 1.11 summarizes the economic analysis of Cerro Los Gatos Mine based on the projected cash flow generated by the mining and processing of the stated Mineral Reserves. The economic analysis considers applicable mining and corporate income taxes which have rates of 7.5% and 30%, respectively.

Table 1.11: LOM Financial Summary

The post-tax Net Present Value (NPV) of the Cerro Los Gatos mine is $377 M using a discount rate of 5%. Annual after-tax cash flow is averages $79 M over the 5.75 years of operations. The Cerro Los Gatos mine remains economic under a wide range of commodity prices and has Cash Costs after by-product credits of $3.63

and All-in Sustaining Costs (AISC) of $7.06 per ounce of silver payable (also net of by-product credits) over the Reserve LOM Plan. The main drivers of the low AISC are lower go-forward sustaining capital requirements and significant by-product credits.

Throughout the exploration, development, and mining of the deposit a sound knowledge and understanding of the geological controls on the mineralization has been acquired, which are adequately expressed in the Resource Model.

The deposit has logging data from subsurface workings and surface and underground drilling that has been adequately reviewed and validated which allows it to be used with sufficient confidence in the construction of a long-term resource model.

A new geological model has been constructed of the deposit that integrates the different sources of information through an implicit 3D model. Based on this geological model an estimation of the main grades of the deposit has been performed using OK interpolators. The results have been validated in detail by visual and statistical review and against existing production data.

The Mineral Resource categorization uses methodologies and assumptions that allow for adequate consideration of uncertainty and risk.

The Mineral Resources reported in this TRS are reported above a NSR cut-off value, supported by studies, and considers reasonable prospects for economic extraction by optimizing stopes using assumptions and reliable data.

It is the opinion of the QP that the Mineral Resources presented herein are appropriate for public disclosure and comply with the definitions of Mineral Resources as established by SEC Regulation S-K 1300 and CIM Definition Standards for Mineral Resources and Mineral Reserves (2014).

The Mineral Reserves for CLG have been re-estimated, and a Mine Plan developed, which is attuned to the deposit and the conditions under which the mineralized material can be mined and processed. The Mineral Reserves have been estimated with consideration for the modifying factors of mining dilution and mining recovery for each mining method, support service costs including mine cooling, ventilation and dewatering as well as reasonable assumptions regarding input costs and metal prices.

The Mine Plan will deliver mineralized material to the processing plant of contained metal value well in excess of the NSR cut-off value used to establish economic blocks of mineralized material. The Mine Plan is considered by the QP to be robust and achievable in the current operating environment.

Mine management has responded to challenges presented by each of the structurally controlled zones of the CLG deposit and invested in actions and techniques that will ensure safety of workers and reduce operating costs. Important investments have included:

Other conclusions drawn by the Mining QP are:

Significant risks to the Mineral Reserves pertain to:

Significant risks to the Processing modifying factors pertain to:

The following observations and conclusions have been developed based on the site visit and inquiries made by the environmental and permitting QP and review of available information.

The following conclusions are drawn regarding community and social aspects:

It is the opinion of the QP that the Mineral Reserves presented herein are appropriate for public disclosure and comply with the definitions of Mineral Reserves, as established by SEC Regulation S-K 1300 and CIM Definition Standards for Mineral Resources and Mineral Reserves (2014).

The following recommendations are made by the Qualified Persons:

Geology and Mineral Resources:

Mining and Mineral Reserves:

Metallurgy and Mineral Processing:

Infrastructure:

Pertaining to the soon-to-be commissioned paste fill plant:

Golder recommends that a documented dewatering plan be developed by the operator that:

CLG is advancing work on several components of the dewatering plan to enable improved dewatering and water management in the operations and have included $11 million in capital projects relating to mine dewatering within the LOM Plan, including the installation of additional wells and pumping infrastructure.

Tierra Group makes the following recommendations relating to tailings storage:

Environmental and Social:

Gatos Silver Inc. is listed on the New York Stock Exchange and the Toronto Stock Exchange. The company’s corporate office is located at 901-925 West Georgia Street, Vancouver, BC V6C 2G3.

This report has been prepared by Golder as a Technical Report Summary to satisfy SEC subpart S-K 1300 for Gatos Silver. The quality of information, conclusions, and estimates contained herein are consistent with the level of effort involved in consultants’ services, based on; i), information available at the time of preparation; ii), data supplied by outside sources; and iii), the assumptions, conditions, and qualifications set forth in this TRS. The purpose of this TRS is to report Mineral Resources and Mineral Reserves for the CLG Mine, majority owned by Gatos Silver.

Key Acronyms and definitions for this Report include:

The compilation and estimation of Mineral Resources and Mineral Reserves used public and private data sources. The supply of the private data sources from Gatos Silver included a drill hole database, geological model, internal documentation, laboratory certificates, mine designs, mine plans and other mine planning files.

A detailed list of cited reports is noted in Section 24.0 of this TRS.

Golder has adopted certain provisions from previous Technical Reports authored by Tetra Tech (2012, 2017, 2020) and Behre Dolbear, as appropriate. Where content from previous TR’s has been included, the authors have not relied upon previous authors and are taking responsibility for the sections indicated by the certificates of QPs of this TRS.

Site visits have been conducted by Golder and Transmin Metallurgical Consultants personnel as described on Table 2.1.

Table 2.1: Site Visits of Qualified Persons

The following technical reports have been made publicly available previously:

The operating Cerro Los Gatos (CLG) underground mine and processing facilities are approximately centered on Latitude 27° 34' 17" N, Longitude 106° 21' 33" W, located approximately 7 kilometers from the town of San José de Sitio, within the Municipality of Satevó in the State of Chihuahua, Mexico. The mine is approximately 120 km south of the state capital of Chihuahua City and approximately 100 km north/northwest of the historical mining city of Hidalgo del Parral (Figure 3.1).

Figure 3.1: Project Location Map

MPR is the owner of mineral rights held by seventeen, titled concessions, covering 103,086.83 ha. Titled mining concessions are summarized in Table 3.1, collectively the “Project Area”.

Table 3.1: Los Gatos Project Titled Mining Concessions

Figure 3.2 depicts the Los Gatos concessions.

Source: Minera Plata Real S. de R.L. de C.V. (MPR)

Figure 3.2: Los Gatos Concessions Map

MPR has arranged permissions to enter and perform exploration and mining activities on several land properties in the Project Area, including all surface rights necessary to access the operating mine and processing and tailings facilities. Figure 3.3 shows the distribution of communal land and private property, where permissions have been obtained, and those under negotiation against the boundaries of mining concessions. MPR has purchased surface lands covering the known extents of the CLG, and Esther Resource areas, totalling 5,478.9 hectares (Ha), as shown in light blue in Figure 3.3.

Source: MPR

Figure 3.3: Surface Rights and Exploration Permissions

MPR has negotiated and ratified an access agreement with the community of San Jose del Sitio for use of the access road through communally owned land shown in light green fill on Figure 3.3. This agreement allows access through the surface land holdings of the community and is registered with the federal land registry. MPR has worked together with the community since the inception of the exploration project and has enjoyed strong support from the community leaders and general assemblies.

MPR has established a multi-disciplinary team to communicate operational plans and activities to both La Esperanza and San José del Sitio, as well as the surrounding communities and municipalities.

The Los Gatos Joint Venture holds concessions through its Mexican subsidiary company, MPR. MPR is 70% owned by Gatos Silver Inc. and 30% owned by Dowa Metals & Mining Co., Ltd. The Los Gatos concession (Title 231498) is held subject to a royalty provision to La Cuesta International, Inc. Based on its review of available information, MPR’s legal advisors, VHG Servicios Legales, S.C., has advised that all lien collateral registrations with the Public Registry of Mining in connection with the concessions are in the process of being cancelled following the formal ratification of cancellation thereof by the counterparty.

MPR also holds the rights to the concession of Paula Adorada through a Contract of Assignment of Rights duly recorded with the Public Registry of Mining.

Under Mexican Mining Legislation, titled concessions must have submitted the required Surveying and Assessment Works to define their precise location and rights against any pre-existing mining claim. Once titled, concession owners have the obligation to submit annual Assessment of Work Reports for each concession or group of concessions based on minimum investment amounts. All the Los Gatos concessions are grouped for legal compliance with requirements by Mexican Mining Law, except for the Paula Adorada claim, which was acquired later.

As of the date of this document, VHG Servicios Legales, S.C., has validated the correct filing of the Proof of Mining Works and Production Reports on MPR’s concessions, validating that MPR concessions are in good standing as concerns this obligation.

A second obligation that titled mining concessions must meet is the bi-annual payment of mining duties. As of the date of this document, VHG Servicios Legales, S.C. has validated that MPR has complied with the payment of mining duties payable in connection with the concessions including the ones corresponding to 2020, 2021, and 2022; therefore, MPR concessions are in good standing as concerns this obligation.

Titled mining concessions, following the amendments made to the Mining Law in 2005, have an effective period of 50 years counted from their registration in the Public Registry of Mines and can be renewed for equal periods provided there are no grounds for cancellation

The details of the two contracts follow, as provided by MPR.

On the Los Gatos concession, pursuant to a Royalty Agreement with La Cuesta International S.A de C.V (La Cuesta), MPR is required to make semi-annual advance royalty payments, and is required to make a production royalty payment of 2% NSR on production from the Los Gatos concession (reduces to 0.5% upon all payments reaching $10 million) and a payment of 0.5% NSR from lands within a 1-km boundary of the Los Gatos concession. Under the terms of the Royalty Agreement, MPR made royalty payments of US$40,000 per year during the preproduction period.

Upon commencing production, payments under the Royalty Agreement were deferred until March 31, 2021, with an annual interest rate of 4.5% applied to the outstanding balance. During the deferral period, MPR paid a royalty of $100,000 per year until January 2021 under an Advanced Royalty Agreement. The Advanced Royalty Agreement has no expiration date; however, the Company may terminate the agreement upon 30-day official termination notification. The registered ownership of the Los Gatos concession (Title 231498) was transferred

from La Cuesta to MPR in 2015. As of May 2022, cumulative payments under La Cuesta Royalty Agreement reached the threshold of $10 million, and the NSR royalty was reduced from 2.0% to 0.5%. The 0.5% NSR royalty will end upon cumulative payments reaching $15 million. As of June 30, 2022, cumulative payments under the La Cuesta Royalty Agreement totaled $10.16 million.

The Paula Adorada concession was acquired from the Chihuahua-based company Grupo Factor through a Contract of Assignment of Rights ratified by MPR before a Notary Public in Mexico City on December 3, 2014, with no remaining obligations, or royalties.

MPR is not aware of any risk factors which could limit or deny access to the CLG Mine.

CLG Mine is accessible by automobile from Mexican Federal Highway 24 to km 81 and then turning west on a newly paved road for 40 km west to the community of San José de Sitio, situated near the southeast-end of the concession block. Travel time by automobile is approximately two hours, either from Chihuahua City from the North or Hidalgo del Parral from the south. The city of Valle de Zaragoza, located on Federal Highway 24, 35 km to the south of the turnoff to San José del Sitio is the nearest significant commercial center.

The climate of the Los Gatos project is typical of desert areas of Northwest Mexico, semi-arid, with a maximum temperature in the order of 41.7 degrees Celsius (°C) and a minimum recorded at minus 14°C; annual average temperature is 18.3°C. Annual rainfall averages 363.9 millimeters (mm) over an average of 61 days, mostly during the rainy season of June through September, and relative humidity is 50%, with a dominant Northeastward wind. There is abundant sunshine and little cloud cover during most of the year. Snow is a rare occurrence in Southern Chihuahua but has been recorded on occasion. Exploration and mining activities are seldom interrupted by adverse weather conditions, except for short-lived storms producing floods and damage to access roads.

Vegetation is characterized by a semi-desert landscape, with typical low brush vegetation in the slopes including lechuguilla, ocotillo, sotol, yucca, sage, bear grass, and other types of indigenous grasses. Larger brush and trees are common along the main watercourses, with the presence of oak, cypress, cottonwood, poplar, huizache, and mesquite, among others.

The soils of the area are sandy to rocky and are composed of detrital material from the local volcanic and sedimentary rocks classified as lithosols and yermosols. The lack of flat areas with regular water sources and good soils results in only small areas useful for crops, but there is sufficient growth of native grasses and desert plant life to support the principal economic activity of the region, cattle grazing. Land tenure in the municipality of Satevó is 25% communal (Ejido); and 52% private property, with predominantly cattle grazing and other agricultural use.

The Project Area is in the Sierras y Llanuras del Norte Physiographic Province near the boundaries between the Gran Meseta, Cañones, and Sierras, and Llanura Tarahumara Sub Provinces. The general physiography of the Los Gatos area is characterized by low to middle rolling volcanic hills with local escarpments and flat valley floors. Altitudes vary with between 1,550 meters above sea level (masl) at the base of the Santo Toribio Creek and 1,780 masl at the top of the Los Gatos Hill, one of the highest peaks of the Project Area.

Locally, the surface lands are mostly owned by private individuals as small cattle ranches, with average sizes of 1,000 to 2,000 hectares. Many of these ranches are unimproved grazing lands with no structures; however, a few ranch houses exist in the scattered areas. Some landowners live locally in the community of San José del Sitio or surrounding communities, while others live in the surrounding cities of Zaragoza, Parral, and Chihuahua.

Two communities hold parcels of surface lands as agrarian communes or "Ejidos." These are the communities of La Esperanza and San José del Sitio, which have corporate ownership of their respective surface lands (Behre Dolbear, 2011).

Electrical power to the CLG site is supplied via a 115-kilovolt (kV) utility transmission line which originates from the San Francisco de Borja’ substation in Satevó (Chihuahua).

Water resources in the region are mostly related to the Conchos River Basin, which includes the San Pedro, San Francisco de Borja, and Satevó River Sub-Basins. A larger supply of surface water is associated with the Conchos River, located 7 km to the South of the main exploration areas. The Conchos River is dammed in several locations, including La Boquilla, a major hydro power plant in the region. Scattered ranch houses near and within the Project Area are normally serviced by generators and small wells or capture ponds from surface runoff waters. Locally, there are significant amounts of water, with shallow groundwater recorded from most exploration drilling conducted by MPR.

Railway transport infrastructure does not exist in the vicinity of the mine, nor is there nearby rail access to seaports. The nearest commercial airport is in Chihuahua City.

An accommodation camp with supporting facilities is operated onsite for workers and contractors.

Details on the various historical activities through to current mining operations are presented herein.

The Los Gatos area is considered a region with extensive veining but only limited showings of precious and base metals mineralization. It has been the subject of only very limited historical prospecting and mineral exploration. Various maps from the Servicio Geológico Mexicano (SGM – Mexican Geologic Survey) and its predecessors show prospect locations at the Esther, Gavilana (Paula), and San Luis zones with references to the occurrence of silver, lead, and zinc. Reports in the archives of the SGM reference field review of the Tren and Margarita prospects (Baca Carreón, 1964) in the Northwest part of the Los Gatos concession as well the Santa Rita prospect (Ramírez, 1976), located to the East of San José del Sitio outside the Southeastern limit of MPR's concessions block.

There are small prospect pits and minor historic workings in the Esther, San Luis, Tren/Margarita, and Paula zones. Local verbal accounts suggest that most of this development occurred in the period of 1920-1950, although there is reference to minor work at the Esther zone as recently as the 1960s. There is no known record keeping from this small-scale production. Surface work by MPR has not uncovered any evidence of modern prospecting activities in the area such as drill hole collars, survey points, or earlier sample locations.

Los Gatos was initially recognized by reconnaissance activities by Perry Durning and Frank Hillemeyer of La Cuesta International Inc. (La Cuesta) in 2005 while under contract with Silver Standard Resources. La Cuesta applied for the original Los Gatos concession in 2005 and recommended the target to Silver Standard for acquisition. Silver Standard geologists visited the project in 2005 but rejected further work and allowed La Cuesta to promote their project to other entities.

Los Gatos Ltd., then parent of MPR prior to the merger into Sunshine Silver Mines Corporation in 2011, was contacted later in 2005 and the project was visited by Los Gatos Ltd., representative Jon Gelvin. An initial letter of agreement for exploration work on the project was negotiated between La Cuesta and Los Gatos Ltd. in early 2006, and a final contract was ratified in April 2006 between MPR and La Cuesta. Only minor field work was conducted during 2006-2007 on the Los Gatos project.

Exploration activities increased from 2008 onwards and is described in more detail in chapter 7. Early drilling during 2008 and 2009 was focused on the Amapola area approximately 12km north-west of the CLG deposit. During 2009 and 2010 the Esther and CLG deposits were recognized as significant mineralized zones and both zones were advanced. As the size and scale of CLG was recognized during this time, the drill resources were targeted at advancing this deposit.

There are no other records of historical Mineral Resource and Mineral Reserve estimates. Any silver, lead, and zinc production that might have been carried out from the Esther and Gavilana (Paula) prospects was probably limited to a few hundreds of tonnes with irregular silver and lead-zinc concentrations (Behre Dolbear, 2011).

No Mineral Resource estimates were completed on Los Gatos before the involvement of MPR.

A positive Feasibility Study (FS) was completed on Los Gatos in 2017 (Tetra Tech, 2017) and the Project secured financing for construction, commissioning, and start up with first concentrate produced in the final weeks of 2018.

Table 5.1 depicts CLG Mine Production (2018 – 2022, H1).

Table 5.1: CLG Mine Production (2018 – 2022, H1)

North-western Mexico geologically consists of a series of accreted arc terranes that are overlain in the area of the Cerro Los Gatos deposit by the thick volcanic sequence of the Sierra Madre Occidental volcanic province (SMO). Figure 6.1 shows the location of the SMO over the older arc terranes (Campa and Coney 1983).

Figure 6.1: Location of the Sierra Madre Occidental volcanic province (Campa and Coney 1983)

The SMO is a middle tertiary volcanic province which extends from the southwestern United States to central Mexico. The average thickness of the flows exceeds 1 km (McDowell and Clabaugh, 1979).

The SMO sequence of volcanic rocks is subdivided into two major units, the Lower Volcanic Series, and the Upper Volcanic Series:

Lower Volcanic Series (LVS): Characterized by a predominant pile of andesitic volcanoclastic rocks. The group is generally massive in nature. While the unit is predominantly andesitic, the upper parts, toward the contact with the Upper Volcanic Series, tend to become more felsic, and thick beds of rhyodacite and rhyolite are found intercalated with andesite and dacite.

Upper Volcanic Series (UVS): Characterized by a thick sequence of felsic volcanoclastic rocks, predominantly ignimbrites, that shows well-defined bedding and tuffaceous horizons. These rocks form most of the high scarps and cliffs that characterize this province.

The Cerro Los Gatos and Esther deposits are embedded within andesitic rocks that are considered to be part of the LVS. The exposed area of andesite that contains the CLG and Esther deposits is considered an uplifted horst feature. These andesites are exposed at surface for approximately 30km to the north-west of the CLG deposit and there are multiple vein outcrops throughout this exposure.

The rhyolites around the andesite horst are considered to be an early (lower) part of the UVS.

The Cerro Los Gatos deposit sits on a range front fault of a tertiary extensional basin known on government maps as the Rio Conchos graben. The graben basin is filled with unconsolidated or partially consolidated sediments. The basin formation and filling likely occurred both contemporaneously and after the mineral deposition of the Cerro Los Gatos deposit. The extensional faulting that formed the basin influences the local dip and fault segmentation of the mineralization.

Both the sediments that fill the tertiary extensional basin and the rhyolites that surround the andesites at surface are considered to overlay the andesite.

The regional geology in the area of the CLG deposit is shown in Figure 6.2.

 Figure 6.2: Regional Geological Map of the Los Gatos Area based on Servicio Geologico Mexico data

On a regional scale, both West-Northwest and North-Northwest trending large scale structures are observed.

The North-Northwest trending faults in the deposit area are extensional and associated with the edges of the graben basin.

The West-Northwest trending fault and fracture zones possibly reflect reactivated basement structures.

In the region, epithermal mineralization is associated with both West-Northwest and North-Northwest trending structures.

A stratigraphic column representing the regional geology is shown in Figure 6.3.

The rocks that host the Cerro Los Gatos deposit are a series of andesitic flows and dacitic tuffs. These are locally considered part of the "Lower Volcanic Series" and likely correlative of Tv2 and Tv3 of McDowell 2007. These are the host units of the Cerro Los Gatos deposit.

Intruding and deposited on the entire section are locally important rhyolite flows, flow domes, and dikes that are likely correlative with unit Tv4 of McDowell 2007.

Each of the rocks in the section contains observable hydrothermal alteration, suggesting that mineralization in the area probably occurred late in the history of the development of the volcanic section.

Figure 6.3: Geological Map of the CLG Deposit Area

Figure 6.4 shows a geological map of the Cerro Los Gatos deposit area and Figure 6.5 depicts cross-section through the deposit, looking Northwest.

Figure 6.4:  Geological Map of the Cerro Los Gatos Deposit Area

Figure 6.5: Geologic Model, Section Looking Northwest through the Central Zone Showing the Lithological Sequence at Los Gatos Deposit

In the Esther to Los Gatos area there are NW-striking faults with major normal (extensional) displacements. These faults tend to be marked by strongly reddened (hematitic) rocks and soils. From SW to NE the principal faults comprise the Esther, Ambar, Cascabel and Los Gatos faults.

The Gatos fault is a major North-West trending listric fault zone, generally ranging from 5 to 30m wide that forms the edge of the graben basin. This fault frequently contains fine gouge. The mineralized veins that form the Cerro Los Gatos deposit sit in the footwall of the fault, ranging from immediately adjacent to up to 100m from the fault.

A fault parallel to the Gatos fault, known as the Lower Gatos fault, sits within the mineralized veins and is postulated to be an earlier plane of movement for the graben boundary before the primary movement shifted to the Gatos.

The Los Gatos fault and mineralized zones are cross-cut by two sub-vertical major North-West to North-North-West trending faults known as the Antigatos-1 and Antigatos-2 faults. Antigatos-1 separates the North-West zone from the Central Zone and the Antigatos-2 separates the Central and South-East-1 blocks from the South-East-4 block.

There are multiple late cross cutting faults trending North-East. Most of these do not have significant movement. The North-East trending Ramp fault does offset the mineralized veins and separates the Central block of mineralization from the South-East-1 block.

Figure 6.6 (WP 243) shows a typical siliceous fault plane, with slickensides, beside non-exposed ground (presumably clay-altered rock).

Figure 6.6: Typical Los Gatos Fault with Reddened Slickensided Fault Plane Cutting Siliceous Rhyolite

The Los Gatos District hosts a series of quartz, quartz-calcite, and calcite veins in at least fifteen separate vein systems that are exposed along a strike length of approximately 30 km and an outcrop belt width of approximately 5 km.

The veins containing silver, lead and zinc at Los Gatos are hosted primarily by the Andesite rocks immediately above the contact with the dacitic lithic tuff. Vein thickness is variable. Figure 6.7 shows an isometric view of the dacite lithic tuff unit (pink) which marks the position of a NE facing monoclinic fold that is disrupted by brittle deformation along the Lower Gatos and the antithetic Anti-Gatos faults (In red: Ag, Pb, Zn Mineralization).

Figure 6.7: Geological Model 3D View Looking South Southeast

Economic mineralized grades are not present at surface; however, epithermal alteration textures are present. The general Northwest trending, Northeast dipping Cerro Los Gatos vein system is persistent with a mapped extension in the order of 10 km, with true widths of as much as 25 m at depth as demonstrated by diamond drilling. Banded quartz veins and breccias are cemented by quartz, calcite, and abundant manganese oxides.

The Cerro Los Gatos deposit is a listric-shaped mineralized horizon hosting steeply to shallowly dipping mineralized-shoots at depth. Mineralization of interest occurs for approximately 1,800 m in length, between an elevation varying roughly between 800 masl and 1,400 masl. The top of the mineralized horizon at Cerro Los Gatos is generally located at an elevation of 1,400 masl. The natural topographic surface is in the order of 1,570 masl ± 50 masl.

The veins at Cerro Los Gatos contain silver, zinc and lead. Lower concentrations of gold and copper are also associated with the veining.

Silver mineralization occurs as acanthite (argentite) and native silver and has been detected in thin sections as proustite as small inclusions within galena grains.

Zinc mineralization occurs as sphalerite, zinc silicates and zinc carbonates of variable grain sizes disseminated in quartz vein material, as open-space filling in cavities, and as replacements in the andesitic and dacitic flow units. Sphalerite ranges from yellow to brown in color and is deposited in a similar style but is not always associated with the galena mineralization. Zinc oxides after sphalerite also exist down along fault structures through the deposit.

Lead mineralization occurs primarily as galena and lead oxide minerals of varying grain sizes that are disseminated in quartz vein material, as open-space filling in cavities, and as replacements in the andesitic and dacitic flow units.

Copper mineralization occurs as chalcopyrite and occasional native copper disseminated within quartz veins.

Gold mineral species have not been identified visually but are present in small quantities in assay results.

The veins themselves display variable gangue mineralization, depending on the depth of exposure within the epithermal environment. It is common to observe calcite or manganese oxide mineralization at high levels within the epithermal "system, which" (currently a period) transitions to barite, fluorite, and quartz at lower levels.

Within the mineralized portions of the veins, it is common to see quartz and fluorite and occasional minor calcite associated with lead, zinc, silver, copper, and gold mineralization. Fluorite is a significant component of the mineralized zones. The veins are typically rhythmically banded on a scale of 1 mm to 10 mm per band, with repeated pulses of quartz carrying the metals and other gangue minerals.

It is common to see multiple pulses of mineralization where small veins crosscut each other. It is also common to see various coloration of quartz in the multiple pulses, ranging from milky white to vitreous gray to amethystine purple.

It is apparent that most of the economic mineral values are associated with sulfide mineralization. Oxide mineralization is limited but present at depth, and is commonly related to fracture, breccia zones, and open spaces within the veins.

The Los Gatos vein mineralization has a halo of hydrothermal alteration. The distribution of alteration is complex because the halo was subsequently offset by the major listric fault movement.

The Los Gatos footwall rocks are mostly fresh and tough. Fresh mafics and feldspar are common, even as close as 20 m to the fault zone. Approaching the Los Gatos vein(s), magnetite is destroyed and the andesites become pale green. The illite alteration is typical argillic alteration found around epithermal veins. The dacitic tuffs are less affected; they remain siliceous and contain only a minor percentage of illite + pyrite. Illite alteration is seen at depth and at surface. At deeper levels, epidote + chlorite + pyrite alteration is widespread (propylitic).

High elevations within the hanging wall, particularly within rhyolite, are affected by massive chalcedony replacement and veinlets of chalcedony. Kaolinite + silica alteration occurs preferentially within the acidic volcanic rocks.

Los Gatos is interpreted as an intermediate sulfidation epithermal vein.

Veins in the Cerro Los Gatos deposit show textures and gangue mineralogy (local chalcedony and calcite, and quartz-replaced lattice texture calcite) that indicate a relatively high-level hydrothermal system in the boiling environment. Breccia with clasts of vein quartz indicates a protracted hydrothermal system during multiple faulting events.

Mineralization at Cerro Los Gatos is characterized by silver, lead, zinc, and copper sulfides and their corresponding oxides, along with fluorite, manganese, barite, and traces of gold associated with quartz and calcite veins.

The veins vary in orientation from West-Northwest to Northwest to North-Northwest and vary in thickness from 20 cm to 30 m in the mine operation. Study of the veins in hand specimens and thin sections suggest they are epithermal in origin and are likely of intermediate sulfidation composition.

The exploration model for these types of veins was put forward in a paper by Dr. Larry J. Buchanan (1981) that set the basis for the understanding and interpretation of epithermal deposits that has been widely used in exploration; see Figure 6.8.

Source: Buchanan L.J., 1981

Figure 6.8: Idealized Section of a Bonanza Epithermal Deposit

Figure 6.9 shows epithermal textures encountered in CLG drill holes GA-132 at 392 m down the hole on the left, and GA-175 at 273 m down the hole on the right.

Figure 6.9: Epithermal Textures in Drill Core

Exploration at CLG by Minera Plata Real has been completed primarily by core drilling and limited non-drilling exploration activities including surface geochemical assay, geophysics, surface mapping and structural studies. Currently, most non-drilling data in the Los Gatos area is considered historical, as the data does not play a significant role in the current Resource Model.

Results of recent and ongoing drilling programs are intended to define new discoveries and better delineate known deposits to increase confidence of the Mineral Resources and Mineral Reserves estimates as the basis for future organic growth of the business.

Detailed soil geochemistry programs were conducted to the southeast, between the CLG and Esther zones. Results of the sampling identified new veins in the Esther zone and revealed four separate structures between the Esther and CLG zones (Figure 7.1).

Figure 7.1: Distribution of Rock and Soil Samples at Los Gatos

A detailed 3D Induced Polarization (IP) survey was conducted during July 2010 using SJ Geophysics, a contractor from Canada. Lines were initially spaced at 100 m with stations every 25 m and later tightened to 50 m by 25 m spacings. Data from the survey was processed using the UBC inversion algorithms, and the results suggest a correlation between vein mineralization at the CLG zone and zones of high chargeability and low resistivity (Figure 7.2). In addition, the vein mineralization at the Esther zone suggests a similar relationship of high chargeability and low resistivity (Figure 7.3).

Figure 7.2: Los Gatos Grid

Figure 7.3: Esther Grid

Regional scale geologic mapping has been conducted over areas of the Los Gatos concession where the LGJV controls the surface rights utilizing both local staff from MPR and independent contractors. Limited areas of detailed surface mapping exist in the immediate vicinity of the Esther and CLG deposits.

During 2022, MPR commenced detailed mapping programs over the central area of the concessions from Amapola to Wall-e and the area between CLG and Esther.

Since the acquisition of Los Gatos by MPR, several drilling campaigns have been carried out with different objectives. As of March 31, 2022, 1,476 drill holes relevant to the LGJV property had been completed by MPR, for a total of 373,880 m drilled. The project database contains surface exploration drilling on other prospects that are not applicable to this report. Table 7.1 shows all drilling deposition the LGJV property tabulated by objective and Figure 7.4 shows a map with spatial distribution of the CLG deposit drilling.

Table 7.1: Drill Hole Count by Purpose

Figure 7.4: Distribution of Drill Holes by Objective at Los Gatos Deposit

Mineral exploration drilling was initiated at the CLG Project in October 2008 and continued until 2012. Drilling restarted in 2015 following the joint venture agreement with DOWA, with four rigs simultaneously operating until February 2016. Drilling began with a Mexican contractor, Minera Gavilán, but most of the drilling was completed by Major Drilling Company with Major 5000 rigs. Drilling was conducted using a wire line rig with diamond core capabilities. Holes begin with HQ size and are reduced, if necessary, to NQ and very rarely to BQ, only if difficult drilling conditions are encountered. Drilling from the 2015-2016 program were pre-collared with tri-cone bits.

Drilling resumed in connection with underground development in August-December 2018 from designed chambers within the underground workings. The drilling was conducted by Major Drilling with NQ size drilled from the footwall side of the mineralized zone.

Surface drilling has continued since 2019. The surface drilling up until early 2022 was dominantly focused on mineral resource infill to improve confidence. As in previous surface drilling programs, holes were pre-collared with a tri-cone bit and core collected using HQ size, reducing to NQ size if poor drilling conditions were encountered.

Underground definition drilling commenced in 2019. The underground drilling has utilized small MPR owned “Termite” rigs drilling LTK48 (35mm) diamond core and LM-75 rigs drilling NQ core.

The data acquisition activities are supported by protocols, procedures, and cartographic procedures. Exploration drilling has been undertaken almost yearly at CLG. Total drilling available for Mineral Resource estimation is approximately 1,131 holes, totalling 221,385 m of core. Since the initial exploration drilling campaigns sampling from mineralized areas was done with DDH core of HQ and NQ diameter, while Tricone drilling was used to collect pulverized samples in waste overburden areas.

Gatos Silver last publicly released significant drill hole intercept results from the surface drilling campaign on August 10, 2021. Table 7.2 and Table 7.3 tabulate significant drill results from the surface drilling campaign for drill holes that were used for the 2022 Mineral Resource estimation at CLG but not previously publicly disclosed. Esther drilling results are presented in Section 7.2.1.2.

Actual intercepts used to define the estimation domains will differ from the intercepts shown in these tables. The estimation domain solids are based on a lithological interpretation that may include additional lower grade material not represented in these intercepts or may exclude areas where geological continuity cannot be reasonably assumed.

Table 7.2: South-East Zone Drilling Results: GA-SE-411 to GA-SE-460