Sierra Madre Gold & Silver

Sierra Madre Gold & Silver (TSXV: SM; OTCQX: SMDRF) is a growing silver and gold producer focused on expanding operations and advancing exploration at La Guitarra mine in Mexico’s silver belt. In December 2025, the company also announced the acquisition of the past-producing Del Toro Silver Mine in Zacatecas State from First Majestic Silver. Del Toro Acquisition: The December 2025 acquisition agreement with First Majestic Silver – also the seller of the La Guitarra mine complex – would add fully permitted underground mines and a 3,000 tonnes-per-day flotation plant to the portfolio. Del Toro is aligned with Sierra Madre’s model of buying past-producing assets with infrastructure in place (the company previously completed a successful restart at La Guitarra, also purchased from First Majestic). The plan is to advance exploration, update the resource estimate, and prepare for a mine restart. A drilling program (~50,000 m) is anticipated ahead of an updated NI 43-101 report. Initial restart timing is targeted for mid-2027, with production potentially by mid-2028. La Guitarra Expansion: Following the successful transition of the Guitarra complex into commercial operations at the start of 2025, Sierra Madre is now advancing a two-stage expansion at the site. The first stage is expected to come on-line in Q2 2026, would increase throughputs by ~50% from the current 500 t/d run rate, to 750 to 800 t/d. A second stage would follow, growing run rates further to 1,200 to 1,500 t/d, a +100% increase from current levels.

Management Profile:

Alex Langer - CEO, President & Director

Mr. Langer is a successful public markets specialist with 20 years of experience.

He started his career as an Investment Advisor with Canaccord Genuity, where he helped fund over 100 private and publicly listed companies including the IPOs for Endeavour Silver, Fortuna Silver, and Great Panther.

Most recently he was Co-Founder and Vice President of Prime Mining (TSXV) and Millennial Lithium (TSXV) where he handled Capital Markets for both companies. He is a founding Director of Reyna Silver Corp. (TSXV) and is currently the President and a Director of Li-FT Power Ltd (TSXV).

What are your key goals for the next 3, 6 and 12 months?

3 Months

Continue with La Guitarra expansion Reduce operating costs and improve margins Close Del Toro Acquisition & commence work at site Build towards next exploration phase

6 Months

Continue with La Guitarra expansion Reduce operating costs and improve margins Advance Tel Doro towards exploration & production (30k meters planned at DT) Advance large scale exploration at La Guitarra (30k meters planned at LG)

12 Months

Continue with La Guitarra expansion Reduce operating costs and improve margins Advance Tel Doro towards exploration & production (30k meters planned at DT) Advance large scale exploration at La Guitarra (30k meters planned at LG)

What do you think makes your company such a compelling investment?

1. Cash flow today, growth tomorrow Many junior silver companies are still years away from production. Sierra Madre is already producing and generating cash flow at La Guitarra, while still offering meaningful growth potential.

2. Clear path to production growth The company has outlined a staged expansion from 500 tpd toward 1,200–1,500 tpd, with a target of materially increasing annual silver-equivalent production over the next several years.

3. Large exploration upside on district-scale land Sierra Madre controls approximately 25,000 hectares at La Guitarra, one of Mexico’s historic silver districts, including numerous past-producing mines and limited modern exploration in parts of the district.

4. Del Toro adds a second growth engine The acquisition of Del Toro provides a large, fully permitted past-producing asset with existing infrastructure and significant exploration potential. It gives Sierra Madre another pathway for future production growth.

5. Experienced team with deep Mexico expertise The company’s team has experience discovering, building, operating, and acquiring mines in Mexico. Its operating team and local relationships appear to be a meaningful advantage in sourcing and executing opportunities.

6. Strong shareholder alignment Management and founders have meaningful ownership, and the shareholder base includes strategic and institutional investors such as First Majestic Silver Corp. and other large funds.

7. Leverage to stronger silver prices As throughput increases and costs normalize, Sierra Madre could potentially benefit from both improved operating performance and a favorable silver price environment.