Outcrop Silver & Gold - Resource Statement Update & 2023 Plans

• Outcrop Silver & Gold, active in Colombia, continues to make significant progress on the Santa Ana project, aiming for a comprehensive resource statement.
• Share Price and Valuation: Since mid-August, Outcrop's share price has doubled. The company believes it has the potential to release an upper 20th percentile grade of silver equivalent worldwide, which has driven this growth.
• While some investors were concerned about the delay in the resource statement, the delay was mainly due to additional tests required for high recoveries. They believe the report will be of higher quality when released in the first quarter.
• Since August, Outcrop Silver & Gold has been drilling approximately 1500 meters a month. With the introduction of three rigs, they plan to average between 1800 to 2200 meters a month for the next seven months, aiming for no less than 20,000 meters this year.
• While Santa Ana remains the primary focus, Outcrop Silver & Gold is considering advancing scout drilling on two other promising projects. They also intend to enhance their marketing efforts and are optimistic about attracting bidders and further raising funds.‍

Outcrop Silver & Gold Shows Continued Promise for 2023

Outcrop Silver & Gold Corp (TSXV:OCG, OTCQX:OCGSF, FSE:MRG1) is a silver and gold exploration company operating in the prolific high-grade vein districts of Colombia. They have seen strong share price growth over the past months as investors recognize the potential of their flagship Santa Ana project.

In a recent interview with CEO Joseph Hebert, he provided an update on Santa Ana and plans for 2023 that indicate Outcrop Silver & Gold could continue to deliver value for shareholders through new discoveries.

Interview with President & Chief Executive Officer, Joe Herbert

Continued High-Grade Hits at Santa Ana

The Santa Ana project is located in the Mariquita District, Colombia near historical producers that extracted over 6M oz Au and 80M oz Ag between 1585 and 1810. Recent drilling has returned exceptionally high silver grades over wide intervals, suggesting the potential for a significant high-grade resource.

Since August 2022, Outcrop Silver & Gold has averaged around 1500m of drilling per month using two rigs dedicated to resource definition at Santa Ana. In December 2022, a third rig was brought in to accelerate the program with now 1800-2200m completed each month. Outcrop plans at least 20,000m of drilling in 2023 focused on expanding the resource.

Hebert noted that since August, hits at Santa Ana seem to get better and that he expects the project could ultimately contain over 100M oz Ag equivalent resources. Recent highlights include 1m at 19,287 g/t Ag and 6m at 5,332 g/t Ag.

Delayed Resource Statement to Ensure Quality

Outcrop Silver & Gold had originally targeted a maiden resource estimate for Santa Ana in Q4 2022. However, the company has delayed this until Q1 2023 in order to complete additional metallurgical and recovery testing. Preliminary results returned high recoveries of 94% for Ag and 96% for Au. However, Outcrop's independent QP requested more tests before high recoveries could be used in the resource estimate. Lower recoveries would reduce the effective resource grade, so Outcrop is taking time to demonstrate these high numbers are achievable.

The delayed resource statement timeline provides an opportunity for Outcrop Silver & Gold to build on their existing 2022 drilling. The increased data will support a more robust initial resource that accurately captures Santa Ana's tremendous potential.

Financing to Fund Continued Growth

With the doubling of Outcrop's share price since August to a $65M market capitalization, Hebert suggested the company may look to raise additional capital to fund more drilling. This could act as a buffer against potential market volatility.

Proceeds would go primarily to expanding efforts at Santa Ana beyond the planned 20,000m this year. Additional funds may also advance earlier-stage exploration and drilling at two other highly prospective projects, Elia and Miraflores, in Outcrop's Colombia portfolio.

Advancing a Pipeline of Projects

Although Santa Ana is the current focus, Hebert emphasized Outcrop Silver & Gold has amassed an impressive pipeline of five total projects in Colombia, with more on the way. Two projects are open pit targets being optioned out to partners, while Outcrop Silver & Gold sees greater upside in their high-grade vein projects they are advancing themselves.

Elia and Miraflores were noted as having similar potential to Santa Ana. Work is underway to establish social license and access at these earlier stage projects. Once ready, the goal is to repeat the exploration process that was so successful at Santa Ana.

This pipeline provides Outcrop Silver & Gold shareholders continued exposure to new discoveries even after Santa Ana is successfully advanced. Each new high-grade vein project could become the next flagship for Outcrop Silver & Gold.

The Keys to Outcrop's Success

Several factors make Outcrop Silver & Gold stand out that could drive shareholder value in 2023:

• Proven exploration team - Outcrop's group has extensive experience in Colombia that lowers risk and enables rapid advancement.
• High-grade hits - Exceptionally high silver and gold grades at Santa Ana provide major upside compared to average projects.
• Strong portfolio - With five total projects and more on the horizon, Outcrop Silver & Gold offers continued discovery potential.
• Funding exploration success - Financing from share price gains can accelerate drilling and advancement across the entire portfolio.
• Committed to quality - Delaying the maiden resource estimate exemplifies Outcrop's focus on doing things right, not fast. Rushing could underestimate Santa Ana.
• Leveraging exploration expertise - Unlike many explorers, Outcrop Silver & Gold can take projects from discovery all the way to resource definition and pre-feasibility themselves.

With its proven team, impressive early results, and portfolio of high-quality projects, Outcrop Silver & Gold represents an excellent opportunity for investors seeking leverage to new high-grade silver and gold discoveries. The coming year could prove transformative as resources are defined and new projects are drilled across Colombia.

Reasons Investors Should Pay Attention

Upside Potential

• The high-grade hits at Santa Ana provide major upside compared to average silver projects if Outcrop Silver & Gold can continue to expand the resource. Most silver deposits average well under 300 g/t Ag, while Santa Ana is returning multiple intervals over 1,000 g/t Ag.
• Additional drilling and exploration success across Outcrop's pipeline of projects in Colombia offers continued potential for new discoveries and resource growth. Each new discovery adds value.

Leverage to Silver Prices

• Outcrop Silver & Gold provides leverage to future gains in the silver price, which remains well below historic highs. If silver enters a new bull market, high-grade projects benefit the most.

Proven Exploration Team

• Outcrop's experienced exploration team lowers risk and increases chances for success. Their track record of exploration success in Colombia adds confidence for investors.

Undervalued Compared to Peers

• Trading at only ~$25/oz of silver equivalent resources, Outcrop Silver & Gold has significant upside compared to peers once an initial resource is defined at Santa Ana. Most exploration companies trade at $50-100/oz AgEq prior to more advanced studies.

Capital to Fund Growth

• With a strengthened share price, Outcrop Silver & Gold can fund accelerated exploration from treasury or bought equity deals. This capital can unlock value across its portfolio without dilution.

Risk-tolerant

• Once Santa Ana's resource grows, Outcrop Silver & Gold could be a takeover target for mid-tier miners looking to add high-grade silver ounces to their project pipeline.

By leveraging its exploration expertise and high-grade projects, Outcrop Silver & Gold provides investors leverage to potential silver price appreciation and resource growth in a rising market. For risk tolerant investors, it's a long-term speculative investment.