Discovery Silver Corp. (TSX-V: DSV) (OTCQX: DSVSF) is pleased to announce results from the first 13 holes from its Phase 2 drill program on its flagship Cordero silver project located in Chihuahua State, Mexico. This current set of holes is focused on upgrading resources for inclusion in a prefeasibility study planned for 2022.

The Company also wishes to advise that its resource update, originally scheduled for release at the end of this month, has been delayed slightly due to the inclusion of additional drill metres and is now expected to be completed in the middle of October. The preliminary economic assessment is on track for completion in 4Q 2021.

Highlight intercepts include:

• 73.1 m averaging 241 g/t AgEq¹ from 75.0 m (104 g/t Ag, 0.06 g/t Au, 0.8% Pb and 2.5% Zn) in hole C21-510
• 133.8 m averaging 103 g/t AgEq¹ from 69.0 m (39 g/t Ag, 0.07 g/t Au, 0.8% Pb and 0.7% Zn) in hole C21-523
• 28.6 m averaging 300 g/t AgEq¹ from 265.5 m (101 g/t Ag, 0.12 g/t Au, 1.6% Pb and 3.2% Zn) including 9.4 m averaging 759 g/t AgEq¹ (257 g/t Ag, 0.26 g/t Au, 4.1% Pb & 8.1% Zn) in hole C21-519
• 22.6 m averaging 298 g/t AgEq¹ from 409.8 m (94 g/t Ag, 0.11 g/t Au, 1.7% Pb and 3.3% Zn) in hole C21-537

Taj Singh, President and CEO, states: “Highlight intercepts from this release are from both the North and South Corridors and demonstrate the potential to expand the higher-grade resource as we tighten up the drill spacing across the deposit through our Phase 2 drill program.

The slight delay in delivering our resource estimate to mid-October is due to incorporating approximately 15,000 m of additional drill data completed subsequent to the cut-off date for the Phase 1 drill program. This additional drill data is expected to result in better definition of high-grade zones and enhance the overall classification of the resource estimate for the deposit.”

DRILL RESULTS:

The initial drill holes from Phase 2 drilling were predominantly focused on the South Corridor and in the Northeast Extension of the North Corridor. This set of holes were targeting improved definition of high-grade zones within the bulk-tonnage domain and will be included in a prefeasibility study on the Project planned for 2022.

Hole C21-510, drilled in the northeast section of the South Corridor, targeted the up-dip extension of the mineralized zone intercepted in C20-375 (37.1 m of 223 g/t AgEq¹ from 143.7 m within 131.6 m of 128 g/t AgEq¹) and returned 73.1 m of 241 AgEq¹ from 75.0 m. Hole C21-525 confirmed the down-dip continuity of disseminated mineralization along the Josefina vein trend at depth returning 29.1 m of 208 g/t AgEq¹ from 484.6 m and 27.8m of 146 g/t AgEq¹ from 529.1 m.

Other holes drilled in the central part of the South Corridor were also successful in confirming continuity of higher-grade zones with highlight intercepts including 28.6 m of 300 g/t AgEq¹ from 265.5 m (C21-519), 50.4 m of 125 g/t AgEq¹ from 233.2 m (C21-515) and 31.2 m of 160 g/t AgEq¹ from 378.1 m (C21-507). In the Northeast Extension zone in the North Corridor, hole C21-523 confirmed the up-dip extension of the mineralized zone intercepted in C20-319 (168.8 m of 207 g/t AgEq¹ from 140.0 m) returning 133.8 m of 103 g/t AgEq¹ from 69.0 m.

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. 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:

The Company has now completed 22,000 m (44 holes) as part of its Phase 2 drill program (excluding drill metres used to support the updated resource). Assays from 32 holes are pending. Phase 2 drilling will continue through the remainder of the year and will be focused on three key areas: (1) upgrading inferred resources for inclusion in a prefeasibility study planned for 2022; (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. Despite the increased risk that the Delta variant poses to future exploration at the Project, Phase 2 drilling is progressing as planned.

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/5744/20210930_sections_assays.pdf

A PDF of this release with supporting maps and sections included as appendices can be found at the following link:

https://discoverysilver.com/site/assets/files/5744/20210930_cordero_pr_w_sections_final.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.