Sierra Madre Gold & Silver

Sierra Madre Gold & Silver Ltd. (TSXV: SM | OTCQX: SMDRF) is a Canadian mineral exploration and development company focused on advancing silver and gold assets in Mexico. The company is positioning itself as a leading mid-tier producer through the restart and expansion of its flagship La Guitarra Mine and the advancement of its Tepic Project. With a fully permitted, high-grade underground mine and a functional 500 t/d mill, La Guitarra has transitioned into full commercial production as of January 1, 2025. The company also holds extensive exploration potential across a 59-km vein system within Mexico’s prolific silver belt.

Sierra Madre’s management team brings decades of experience in mine development, operations, and capital markets, with a proven track record of creating shareholder value. Backed by First Majestic Silver, which holds a 44.5% interest, and a tightly structured shareholding base, Sierra Madre is well-capitalized for growth. With a focus on low-cost, sustainable production and aggressive exploration, the company is strategically positioned to capitalize on rising silver and gold demand.

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Sierra Madre Gold & Silver presents a compelling investment opportunity as Mexico’s newest silver and gold producer. The company’s La Guitarra Mine, which previously produced 1–1.5 million silver-equivalent ounces annually, has now restarted operations, providing immediate cash flow. The recently updated 2023 mineral resource estimate shows a 373% increase in Indicated resources (27.2M AgEq oz) and a 204% increase in Inferred resources (20.2M AgEq oz), reinforcing the project’s scale and growth potential.

Beyond near-term production, Sierra Madre’s Tepic Project offers substantial upside with historical resources and significant exploration potential over a 15-km strike length. With a low-risk mine restart already completed, a scalable milling facility, and strong institutional backing, Sierra Madre is on track to become a major silver producer in Mexico. The company’s combination of existing infrastructure, expanding resources, and increasing production capacity provides investors with both near-term cash flow and long-term growth potential, making it an attractive investment in the precious metals sector.

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Sierra Madre Gold & Silver Ltd. is led by an experienced team of mining professionals with a strong track record in exploration, mine development, and corporate finance.

Alex Langer – Director, President & CEO
A capital markets specialist with over 20 years of experience, Mr. Langer has played a key role in funding over 100 private and publicly listed mining companies, including IPOs for major silver producers. Before joining Sierra Madre, he served as VP of Prime Mining and Millennial Lithium, managing capital markets strategies.

Gregory Liller – Executive Chairman & COO
A geologist with over 45 years of experience, Mr. Liller has contributed to the discovery and development of over 11Moz of gold and 600Moz of silver in reserves and resources. He has held leadership roles in multiple publicly traded mining companies and has played a key role in securing over $300 million in equity financings.

Ken Scott – Chief Financial Officer (CFO)
Mr. Scott brings over 33 years of public company auditing experience, having previously served as a partner at PricewaterhouseCoopers (PwC), where he audited top-tier mining companies such as SSR Mining, Lundin Gold, and B2Gold. His financial expertise ensures robust fiscal management and compliance for Sierra Madre.

Luis Saenz – Director, Exploration & Development
With more than 30 years in exploration and mine production, Mr. Saenz has held senior geology roles at Frisco, Americas Silver, Aurcana, and Oracle Mining. He has deep expertise in Mexican mining operations and leads the company’s exploration and development programs.

Supported by a strong board of directors, including leaders with deep expertise in Mexican mining, financial management, and corporate governance, Sierra Madre’s leadership team is well-equipped to execute its strategy and create long-term shareholder value.

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Sierra Madre Gold & Silver is executing a robust growth strategy designed to unlock both near-term production and long-term resource expansion. The company’s approach is anchored in three key pillars: accelerating production at the flagship La Guitarra Mine, pursuing district-scale exploration, and evaluating innovative mining and processing methods.

The La Guitarra Mine, which successfully transitioned to full commercial production on January 1, 2025, serves as the operational cornerstone. With a fully permitted, high-grade underground mine and a scalable 500 t/d mill, the project is already generating immediate cash flow and demonstrating significant production potential—underscored by a recent 2023 resource update showing dramatic increases in both Indicated and Inferred silver-equivalent ounces.

Complementing this operational strength, Sierra Madre is aggressively advancing its exploration programs across a 59-km mineralized belt in Mexico’s prolific silver region. These efforts aim to delineate additional high-grade deposits and further expand the resource base, with the Tepic Project offering significant upside potential through its extensive strike length and promising historical drill results.

Moreover, the company is actively exploring alternative mining methods—ranging from traditional underground operations to bulk mining techniques—to optimize recovery and drive down production costs. Backed by strategic partnerships and a solid technical foundation, Sierra Madre’s multi-pronged growth strategy is poised to deliver sustainable long-term value for investors while cementing its position as a leading silver and gold producer in Mexico.

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Sierra Madre Gold & Silver Ltd. maintains a strong financial position as it advances production at La Guitarra and exploration at Tepic. With a low capital intensity due to inherited infrastructure and a tight share structure, the company is well-positioned to generate value for shareholders.

Capital Structure (as of February 3, 2024):

• Market Capitalization: CAD $84.7M
• Shares Outstanding: 153.9M
• Fully Diluted Shares: 167.0M
• Cash on Hand: CAD $3M
• Institutional & Insider Ownership: 82.2% (including 44.5% held by First Majestic Silver)

La Guitarra is now in commercial production (as of January 1, 2025), generating weekly concentrate sales and cash flow.

Q3 2024 revenues totaled CAD $2.5M, with full-scale production expected to increase revenue significantly.

Sierra Madre secured a US$5M loan from First Majestic Silver (May 2024) to fund La Guitarra’s final restart and expansion.

The company is evaluating further equity, debt, or joint venture financing to fund exploration and expansion activities.

With a scalable production base, strong backing from First Majestic, and a disciplined capital strategy, Sierra Madre is positioned for sustainable financial growth as it ramps up operations.

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Sierra Madre Gold & Silver Ltd. is emerging as Mexico’s newest silver and gold producer, with a clear strategy to drive sustainable growth and shareholder value. With the successful restart of commercial production at La Guitarra, a low-risk, fully permitted operation, and an expanding mineral resource base, the company is well-positioned to become a significant player in the silver sector.

Backed by a highly experienced management team and strong institutional support, including First Majestic Silver (44.5% ownership), Sierra Madre is leveraging existing infrastructure, low-cost operations, and scalable production to generate cash flow while pursuing district-scale exploration.

As global silver demand rises, Sierra Madre presents a compelling investment opportunity, combining near-term production growth, long-term exploration upside, and disciplined financial management. With a focus on efficient mine operations, resource expansion, and responsible mining practices, the company is poised to deliver strong returns to investors while contributing to the future of sustainable precious metals production.

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