• Growing gold production in one of the world’s most prolific mining camps
• Large Mineral Resource base with substantial exploration upside
• A management team with extensive experience working in the Timmins Camp
• Increased financial strength following closing of $575 million financing package

Discovery Silver Corp. (TSX: DSV) (OTCQX: DSVSF) reported the completion of the previously announced acquisition of Newmont Corporation’s Porcupine Operations based in and near Timmins, Ontario, Canada. All dollar amounts in this press release are in US dollars unless otherwise specified.

Tony Makuch, Discovery’s CEO, commented: “With the closing of the Porcupine acquisition, Discovery moves forward as a diversified North American precious metals company, combining growing gold production in a highly prolific gold camp in Northern Ontario, Canada, with our Cordero project, one of the world’s largest silver development projects based on reserves and expected production.

“The Porcupine Complex has produced approximately 70 million ounces of gold since 1910. Included in acquired Porcupine assets are:

• Hoyle Pond: One of the North America’s highest grade gold mines with over four million ounces produced since 1987 and an excellent track record for replacing reserves;
• Borden: A relatively new mine at the centre of a 1,000 km² land position where there is potential to extend the existing mining zones and where there has been very little exploration outside of the current mining area;
• Pamour: An open-pit project that is currently commencing production and has the potential to become much larger through drilling to depth and in multiple directions;
• Dome Mine: One of the pillars of Canada’s gold mining history, where there remains a large mineral resource and substantial exploration upside; and,
• Dome Mill: A large-scale, central processing facility currently operating below capacity levels and with significant growth potential to accommodate increased production.

“Our recently released technical report estimated average annual production of over 285,000 ounces of gold for the next 10 years, with total production extending to 2046. We expect to improve on the estimates in the Report by investing in the assets to grow production, extend mine life and lower costs at existing operations. We also have a strong commitment to exploration, with there being multiple attractive drill targets at each asset and significant regional exploration potential.

“Looking ahead, our aim is to re-establish Porcupine as a Tier 1 asset in the global gold industry, one that meets the highest operating standards and achieves excellence in all aspects of responsible mining. Our efforts will be supported by a strong balance sheet, with approximately C$240 million ($170 million) having been added to our cash position through our recent financings. As a management team, we know Porcupine well, have a solid understanding of the opportunities that exist, and are looking forward to getting started.”

As consideration for the Transaction, Discovery has paid an affiliate of Newmont $200 million of cash and issued approximately 119.7 million Discovery common shares, resulting in Newmont owning an approximate 15.0% interest in the Company. In addition, the Company will pay to Newmont $150 million in deferred cash consideration to be paid in four annual payments of $37.5 million commencing on December 31, 2027.

To fund the acquisition and expected capital expenditures and working capital requirements at Porcupine, and for general corporate and working capital purposes, Discovery has completed financings for $575 million. Details of the Financing Package are provided in the press release entitled, “Discovery Announces Transformational Acquisition of Newmont’s Porcupine Complex,” issued on January 27, 2025, which is available at www.discoverysilver.com and under the Company’s profile at SEDAR+ (www.sedarplus.ca).

Exchange of Subscription Receipts

As part of the Financing Package, on February 3, 2025, Discovery completed a “bought deal” public offering of 275,000,000 subscription receipts for aggregate gross proceeds of C$247.5 million (approximately $175 million) pursuant to a prospectus supplement dated January 29, 2025 to the Company’s short form base shelf prospectus dated March 23, 2023.

With the closing of the Transaction, the common shares of Discovery issuable pursuant to the 275,000,000 Subscription Receipts will be automatically issued through the facilitates of CDS Clearing and Depository Services Inc. in accordance with the terms of the Subscription Receipts, as applicable, on a one-for-one basis.

Consistent with established Toronto Stock Exchange guidelines, trading in the Subscription Receipts on the TSX (TSX: DSV.R) will be halted effective prior to the opening of trading on the TSX today (April 16, 2025), and the Subscription Receipts will be delisted as at the close of business today.

Discovery Capital Structure

With the completion of the Transaction, and following the execution of all financing agreements, Discovery capital structure includes 797.5 million common shares outstanding, with existing shareholders prior to the Transaction owning approximately 50.5% of the pro forma shares outstanding, excluding any new common shares acquired by existing shareholders via the Offering.

After receipt of all cash from the Financing Package, Discovery’s cash position has increased approximately C$240 million ($170 million), with a $100 million senior debt facility with Franco-Nevada remaining undrawn.

USE OF PEA ESTIMATES

All operating estimates in this press release related to the Porcupine Complex are taken from the technical report entitled, “Porcupine Complex, Ontario, Canada, Technical Report on Preliminary Economic Assessment” filed under the Company’s profile at SEDAR+ (www.sedarplus.ca) on January 28, 2025 and available on Discovery’s website at www.discoverysilver.com. The report includes the results of a preliminary economic assessment which is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the estimates will be realized.

ABOUT DISCOVERY

Discovery is a growing North American-focused precious metals company. The Company has exposure to silver through its first asset, the 100%-owned Cordero project, one of the world’s largest undeveloped silver deposits, which is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico. On April 15, 2025, Discovery completed the acquisition of the Porcupine Complex from Newmont Corporation, transforming the Company into a new Canadian gold producer with multiple operations in one of the world’s most renowned gold camps in and near Timmins, Ontario. Discovery owns a dominant land position within the camp, with a large base of Mineral Resources remaining and substantial growth and exploration upside.