Silver Tiger Metals Looks to Unlock Value at El Tigre Silver Project in Mexico

• Silver Tiger Metals released a Preliminary Economic Assessment (PEA) for an open pit mine at its El Tigre silver project in Mexico, showing strong economics including $287M NPV, 55.8% IRR.
• The PEA envisions very low strip ratios in initial years, allowing low upfront capex of $59M and 1.7 year payback period.
• Silver Tiger has an experienced management team with track record of building mines in Mexico, providing confidence in potential development timeline.
• Silver Tiger is funded through next steps with $21M cash, and aims to complete Pre-Feasibility Study by April 2024 and make construction decision.
• CEO highlights exploration upside from current resource, with big additional potential from both open pit and underground still to be drill tested.

About Silver Tiger Metals

Silver Tiger Metals Inc. (TSXV: SLVR) is a silver explorer focused on advancing its flagship El Tigre silver project located in Sonora, Mexico. The company is led by a proven management team with extensive experience exploring and building mines in Mexico. Silver Tiger was formed in 2010 under the name Oceanus Resources and has been systematically exploring and advancing El Tigre with the aim of unlocking its full potential. With over $21 million in cash and no debt, Silver Tiger is funded to rapidly advance El Tigre.

Interview with President & CEO, Glenn Jessome

Robust PEA Economics Support Potential Near-Term Production at El Tigre

Silver Tiger recently announced robust preliminary economic assessment (PEA) results for an open pit mine scenario at El Tigre. The PEA outlines strong economics including an after-tax NPV of $287 million, 55.8% IRR, a low initial capex of $59 million, and exceptional payback period of only 1.7 years. The open pit would produce an average of 4.6 million oz silver equivalent per year over a 13 year mine life, with low cash costs of just $10/oz silver net of gold credits.

The PEA economics are based on an open pit resource of 60 million payabelm silver ounces, or 776,000 gold equivalent ounces, consisting of 16 million silver ounces and 571,000 gold ounces. Importantly, the PEA envisions mining with a very low strip ratio of 0.5:1 in the first 2 years (no waste stripping needed), ramping up to 2:1 in years 3-4. This sets the project up for very low upfront capex and quick payback given minimal pre-production mining needed. At a base case silver price of $23.75/oz, the after-tax IRR remains a robust 55.8%.

Proven Team to Execute Mine Build

A key aspect derisking potential construction is Silver Tiger's proven management team, which has a track record of successfully exploring, permitting, financing, building and operating mines in Mexico.

CEO Glenn Jessome emphasized that the PEA was led by Francisco Albelais, Vice President of Operations, who has 25 years of open pit mine building experience in Mexico. Albelais was in charge of Argonaut Gold's open pit operations prior to joining Silver Tiger earlier this year. His hands-on knowledge gives confidence in the PEA and projected timeline.

The team has permitting well in hand, with an existing 800 tonne per day mill permit at El Tigre. They filed for an amendment to accommodate the larger PEA scale scenario and aim to have permits in place around the time of making a construction decision next year.

Funded to Advance to Production Decision

Importantly, Silver Tiger is in a strong financial position with over $21 million in cash and no debt. The company has been opportunistic in raising capital, most recently completing an $18 million financing in early 2023. This leaves them fully funded to advance El Tigre.

The next steps in the coming months will be completing a Pre-Feasibility Study on the open pit by April 2024, along with additional drilling and mine design work. Jessome expects this can be accomplished with their existing cash balance. The PFS will allow Silver Tiger to make a full construction decision next year. Jessome also noted they are already talking to potential funding partners to line up capital for construction, which is projected at a very reasonable $59 million.

Upside from Exploration and Underground Resource

The attractive open pit economics are just the start of the potential value at El Tigre. The substantial underground mineral resource is still being worked on towards a PEA. Both the open pit and underground resources remain open for expansion.

Silver Tiger has already identified an exploration targets immediately around the open pit resource, which successful drilling could quickly bring into mine plans. Underground, the Company sees exploration potential to expand mineralization laterally and at depth across 5km of vein strike length. The underground resource also shows strong potential economics in initial studies.

El Tigre is one of the few projects that can quickly transition from open pit to underground mining to maximize value of the resource. The cash flow from open pit operations would support cost-effective exploration and underground mine development.

Attractive Asset in Tough Market

El Tigre is the rare silver project that looks poised to reach production in the near-term based on low capex requirements, short permitting timeline, and cash in the bank to fund development. For investors, Silver Tiger offers a de-risked way to gain silver exposure with mining shares at a steep discount.

Silver Tiger's enterprise value is just $50 million based on its current share price under $0.20. Analysts at Red Cloud Securities note this represents just 10% of their NAV estimate for the company and underlying asset value. The stock trades at a fraction of peers at similar stages.

The market is clearly under-appreciating El Tigre's potential. As CEO Jessome noted, once silver sentiment improves, Silver Tiger is positioned to rapidly re-rate as they check the boxes advancing towards production. Starting low-cost open pit production amid rising precious metals prices could create substantial value re-rating.

In a challenging environment, advance stage projects with clear paths to production, low capex requirements, and sufficient capital like El Tigre stand out. Silver Tiger has the team and asset to weather the storm and unlock value. Once the wider market grasps El Tigre's potential, the Silver Tiger could quickly run.

Conclusion

For investors looking for silver exposure, Silver Tiger Metals represents an attractive investment opportunity:

• Robust open pit PEA economics provide a clear path to near-term low-cost production
• Exploration and underground potential give significant upside beyond the starter pit
• Proven, experienced management team with track record building mines in Mexico
• Funded through permitting, development milestones, and into construction
• Attractive valuation versus peers, with tight share structure
• Production would be well-timed to leverage forecast metal price increases

With key permits in hand, low initial capex requirements, and a strong cash position, Silver Tiger has the team and asset to overcome tough markets. As milestones are met, El Tigre's value should be unlocked, giving potential for strong shareholder returns.