Discovery Silver Corp. (TSX-V: DSV) (OTCQX: DSVSF) is pleased to announce results from the final drill holes that will be used to support the new resource estimate on its flagship Cordero silver project located in Chihuahua State, Mexico. The resource update is scheduled for completion toward the end of this quarter and will be followed by an updated PEA in 4Q 2021.

Taj Singh, President and CEO, states: “The results from our first drill program at Cordero, including further exceptional results in this release, have exceeded our expectations. We have not only confirmed the size and scaleability of Cordero, but also highlighted the excellent margin potential of the Project too. The large volume of drill data we have added, totaling 91,000 m in 223 holes, has also significantly de-risked the Project. This new drilling, which will be complemented by our reinterpretation of the geological and structural controls of the deposit, provides a strong platform on which the upcoming resource and PEA will be based.”

Highlight intercepts include:

• 217.3 m averaging 194 g/t AgEq¹ from 39.3 m (75 g/t Ag, 0.45 g/t Au, 1.1% Pb and 1.0% Zn) in hole C21-481 including:
  • 81.9 m averaging 254 g/t AgEq¹ (99 g/t Ag, 0.54 g/t Au, 1.5% Pb and 1.4% Zn)
• 25.5 m averaging 404 g/t AgEq¹ from 147.2 m (236 g/t Ag, 0.55 g/t Au, 1.2% Pb and 1.9% Zn) in hole C21-482 including:
  • 1.5 m averaging 3,763 g/t AgEq¹ (2,552 g/t Ag, 2.33 g/t Au, 13.3% Pb & 13.3% Zn)
• 56.8 m averaging 139 g/t AgEq¹ from 358.7 m (40 g/t Ag, 0.05 g/t Au, 0.7% Pb and 1.7% Zn) in hole C21-442
• 52.5 m averaging 128 g/t AgEq¹ from 214.8 m (42 g/t Ag, 0.08 g/t Au, 0.7% Pb and 1.3% Zn) and 54.9 m averaging 133 g/t AgEq¹ from 392.8 m (39 g/t Ag, 0.06 g/t Au, 0.9% Pb and 1.3% Zn) in hole C21-493

DRILL RESULTS:

The final drill holes for the updated resource estimate were from multiple zones in both the North and South Corridors. Drilling in the South Corridor along the Josefina vein trend continues to intercept high-grade veins within broader zones of disseminated mineralization. Highlight intercepts include 25.5 m of 404 g/t AgEq¹ from 147.2 m (C21-482), 21.0 m of 197 g/t AgEq¹ from 121.5 m (C21-474) and 23.7 m of 195 g/t AgEq¹ from 24.8 m (C21-516).

Infill drilling within the central part of the South Corridor was also successful in confirming continuity of mineralization within the higher-grade bulk-tonnage domain. Highlight intercepts include 52.5m of 128 g/t AgEq¹ and 54.9 m of 133 g/t AgEq¹ (C21-493) and 51.0m @ 107 g/t AgEq¹ and 69.2 m of 121 g/t AgEq¹ (C21-504). Drilling in the South Corridor in the Far NE returned mixed results suggesting limited potential to extent the high-grade bulk-tonnage domain in this part of the deposit.

In the North Corridor, hole C20-481 confirmed the excellent starter pit potential of the Pozo de Plata zone returning 217.3m of 194 g/t AgEq. The mineralized zone sits partially within a higher-grade breccia unit more than 150 m wide and started near-surface (39.3 m downhole) and consistently reported excellent grades through the entire +200 m interval.

Drill hole locations are shown in Figure 1 (see links below) and detailed drill highlights from the holes in this release are provided in the table below.

¹All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths, as a full interpretation of the actual orientation of mineralization is not complete. As a guideline, intervals with disseminated mineralization were chosen based on a 25 g/t AgEq cutoff with no more than 10 m of dilution. Intervals with vein mineralization were based on a 100 g/t AgEq cutoff with no more than 1 m of dilution. AgEq calculations are used as the basis for total metal content calculations given Ag is the dominant metal constituent as a percentage of AgEq value in approximately 70% of the Company’s mineralized intercepts. AgEq calculations for reported drill results are based on USD $16.50/oz Ag, $1,350/oz Au, $0.85/lb Pb, $1.00/lb Zn. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. Refer to Technical Notes below for metallurgical recoveries assumed in the 2018 PEA completed on Cordero.

DRILL PROGRAM UPDATE:

Resource drilling: all assays from drilling that will support the updated resource have now been received. This drilling, totaling 91,000 m (223 holes), will supplement the 133,000 m (292 holes) of historic drilling completed on the Project. The resource update is scheduled for completion later this quarter and will be followed by an updated PEA in 4Q 2021.

Phase 2 drilling: The Company has completed 10,000 m (21 holes) as part of its Phase 2 drill program (excluding drill metres used to support the updated resource) which will be ongoing through the remainder of the year. Phase 2 drilling will be focused on three key areas: (1) upgrading inferred resources for inclusion in a prefeasibility study; (2) resource expansion of bulk-tonnage mineralization; and (3) testing of the width, grade and continuity of the extensive high-grade vein systems that transect the deposit. There are currently four drill rigs operating on site.

SUPPORTING MATERIALS:

Supporting maps and sections, drill hole locations and full assay results can be found at the following link:

https://discoverysilver.com/site/assets/files/5700/20210825_dsv_na.pdf

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the few silver projects globally that offers margin, size and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico, and is supported by an industry leading balance sheet with over C$80 million available for aggressive exploration, resource expansion and future development. Discovery was a recipient of the 2020 TSX Venture 50 award and the 2021 OTCQX Best 50 award.