Mineral Resources

Table 1 shows the updated Mineral Resource estimate included in the PFS.

Table 1: Mineral Resource Estimate

Notes:

1. All estimates of Mineral Resources have been prepared in accordance with NI 43-101.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral Resources are reported inclusive of Mineral Reserves.
4. Michael Gustin, MDA a division of RESPEC of Reno, Nevada, is a Qualified Person as defined in NI 43-101, is responsible for reporting Mineral Resources for the DeLamar Project. Mr. Gustin is independent of the Company.
5. The DeLamar and Florida Mountain Deposit Mineral Resources have been constrained to lie within optimized pit shells created using metal prices of US$1,800/ounce of gold and US $21/ounce of silver.
6. Oxidize and Mixed Mineral Resources are reported at a 0.17 g AuEq/t cut-off in consideration of potential open-pit mining and Heap Leach processing. Non-Oxide Mineral Resources are reported at a 0.3 g AuEq/t cut-off at DeLamar in consideration of potential open pit mining and grinding, flotation, ultra-fine regrind of concentrates, and Albion cyanide-leach processing of the reground concentrates. Non-Oxide Mineral Resources at Florida Mountain are reported at a 0.2 g AuEq/t cut-off in consideration of potential open pit mining and grinding, flotation, ultra-fine regrind of concentrates, and agitated cyanide-leaching for the Non-Oxide materials.
7. Additional inputs for the pit-optimizations include: Mining - US$2.20/tonne mined; Heap Leaching - US$2.75/t for Oxide materials, US$3.75/t for Mixed materials at DeLamar and US$3.50/t at Florida Mountain; Non-Oxide Processing - US$15.65/t at DeLamar and US$9.45/t at Florida Mountain; G&A - US$0.40/t processed by Heap Leaching and $0.50/t for processing of Non-Oxide materials; Heap Leach Gold Recoveries – 85% / 45% for Au / Ag Oxide and 80% / 40% for Mixed at DeLamar, 90% / 65% for Au / Ag Oxide and 85% / 55% for Mixed at Florida Mountain; and Non Oxide Recoveries - 78% / 78% for Au / Ag at Glen Silver area of DeLamar, 87% / 87% for all other DeLamar areas, and 95% / 92% for Au / Ag at Florida Mountain.
8. Gold equivalent grades are calculated using the formula g/t AuEq = g/t Au + (g/t Ag/Factor), with the factor reflecting the metal recoveries by oxidation and metal prices provided above. The gold equivalent grades were used solely in the application of the resource cut-offs.
9. The effective date of the Mineral Resource estimate is March 1, 2021.
10. Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grades, and contained metal content.
11. The estimate of Mineral Resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

¹ Gold equivalent = oz Au + (oz Ag / 79.07)

Mineral Reserves

Table 3 shows the proven and probable reserves for both Heap Leach and Mill ore by deposit. The reserves were estimated using block value calculated based on metal price and recoveries by area and oxidation. The cost to process the material was then used as a cut-off grade. The metal prices used to calculate the block values were $1,600 per ounce gold and $21.00 per ounce silver, though the final cash-flow model used $1,700 per ounce gold and $21.50 per ounce silver. The block value calculation equation is shown in Equation 1 in the footnotes. The block value was calculated for both gold and silver and then each was added together to provide an overall value for each block.

Recoveries used for the block value calculations are shown in Table 2 and were provided by Jack McPartland a member of MMSA, with a special expertise in metallurgy/processing, of McClelland Laboratories of Reno, Nevada. The recoveries for Florida Mountain Non-Oxide material used grade dependent equations shown in Equations 2 and 3 in the footnotes for gold and silver respectively.

Table 2 – Reserve Gold and Silver Recoveries

Table 3: Mineral Reserves

Notes:

1. All estimates of Mineral Reserves have been prepared in accordance with National Instrument 43 - 101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
2. Thomas L. Dyer, PE, MDA a division of RESPEC of Reno, Nevada, is a Qualified Person as defined in NI 43-101, is responsible for reporting Proven and Probable Mineral Reserves for the DeLamar Project. Mr. Dyer is independent of the Company.
3. Mineral Reserves are based on prices of $1,650 per ounce Au and $21.00 per ounce Ag. The reserves were defined based on pit designs that were created to follow optimized pit shells created in Whittle. Pit designs followed pit slow recommendations provided by RESPEC.
4. Reserves are reported using block value cut-off grades representing the cost of processing:
   1. Florida Mountain Oxide Leach cut-off grade of used is $3.55/t.
   2. Florida Mountain Mixed Leach cut-off grade of used is $4.20/t.
   3. Florida Mountain Non-Oxide Mill cut-off grade of used is $10.35/t.
   4. DeLamar Oxide Leach cut-off grade of used is $3.65/t
   5. DeLamar Mixed Leach cut-off grade of used is $4.65/t.
   6. DeLamar Non-Oxide Mill cut-off grade of used is $15.00/t.
5. The Mineral Reserves point of reference is the point where is material is fed into the crusher.
6. The effective date of the Mineral Reserves estimate is January 24, 2022.
7. All ounces reported herein represent troy ounces; “g Au/t” represents grams of gold per tonne and “g Ag/t” represents grams of silver per tonne.
8. Columns may not sum due to rounding.
9. The estimate of Mineral Reserves may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues
10. Energy prices of US$2.50 per gallon of diesel and US$0.065 per kWh were used.
11. Additional supporting details regarding the information in this news release will be provided in the pre-feasibility study to be available on SEDAR within 45 days of this news release.
12. Additional supporting details regarding the information in this news release will be provided in the pre-feasibility study to be available on SEDAR within 45 days of this news release.
13. Equation 1: Block value calculation:
    1. 
14. Equation 2: Florida Mountain Non-Oxide Gold Recovery (Where the maximum gold recovery = 87%)
    1. 
15. Equation 3: Florida Mountain Non-Oxide Silver Recovery (Where the maximum silver recovery = 77%)
    1. 

Cautionary Note for U.S. Investors Concerning Mineral Resources and Reserves

National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this news release has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (“SEC”) and resource information contained in this press release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC’s reporting and disclosure requirements.