Cautionary Notes

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Website Disclosure

Santacruz Silver Mining, Ltd. (“Santacruz”) updates the information on this website regularly. However, such information is not intended to be a comprehensive review of all matters and developments concerning Santacruz and Santacruz cannot guarantee the accuracy, currency or completeness of the information at all times and assumes no responsibility in this regard.

This website and the materials posted on it do not constitute an offer to sell or the solicitation of an offer to buy any securities of Santacruz and any representation to the contrary would be unlawful.

Qualified Persons

Garth Kirkham, P.Geo., Richard Goodwin, P.Eng., and Shane Tad Crowie, P.Eng., are independent consultants to the Company and Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Each has reviewed and approved the scientific and technical information contained on the website that relates to the NI 43-101 compliant Technical Reports.

Please note that quarterly production updates and related data are prepared and reviewed solely by Garth Kirkham, P.Geo. The other Qualified Persons named above were not involved in the preparation or review of the quarterly production data and should not be considered responsible for its validation.

Notes to Mineral Resources and Reserves

Mineral Resources and Reserves are stated for the first time under NI 43-101 standards of disclosure and verified by third Party Qualified Persons. Garth Kirkham, P.Geo, FGC, of Kirkham Geosystems Ltd., Richard Goodwin, P.Eng., and Shane Tad Crowie, P. Eng., of JDS who are Independent Qualified Persons, as defined by NI 43-101 performed the verification.

Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

Inferred Mineral Resources in these estimates have a lower level of confidence than that applied to Indicated Mineral Resources and may not be converted to a Mineral Reserve.

Updated structure for operating and sustaining capital costs were applied to the Mineral Resource to confirm Santacruz generated Mineral Reserves at projected metal prices of $21.00 per ounce silver, $1.15 per pound zinc, $1.00 per pound lead and $3.65 per pound copper.

Mineral Reserve estimates are derived using actual mining and metallurgical performance data from 2022 at each operation to deliver robust estimates.

The effective date of the resource and reserve statements is January 1, 2023. Production data for the calendar year 2023 has been included in Section 24 of the various NI 43-101 reports and shows the depletion and typical replenishment of resources and reserves over a calendar year.

Total Reserves and Resources for Bolivian Mines

The combined mineral resources and mineral reserves include all Bolivian mining operations including Bolivar, Porco and the Caballo Blanco group of mines which consist of the Colquechaquita and Tres Amigos.
The Mineral Resource and Mineral Reserves Estimates were prepared for each operation using a zinc equivalent (ZnEq) cut-off grade and reporting silver equivalent (AgEq) grade that varies for each operation due to costs and economic parameters that are specific to each operation and are detailed within the footnotes for each as shown in the following tables.
AgEq grade information is presented in this table reflects metal prices of $21.00/oz Ag, $1.15/lb Zn, and$1.00/lb Pb.
Certain totals may not add due to the use of rounded numbers.

Bolivar Mine

The Mineral Resource Estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver.
The Mineral Reserve Estimate was prepared using a 12.7% zinc equivalent cut-off grade, using the formula ZnEQV=Zn%+0.7xPb%+0.046xAg (g/t).This cut-off grade was based on current smelter agreements and metal prices of $21.00/oz silver, $1.15/lb zinc and $1.00/lb lead, total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0% for zinc, 70.0% for lead, and 89.7% for silver.
Bolivar and Porco Mines are part of the Illapa Joint Operation with COMIBOL. Bolivar and Porco are presented at 100% production, whereas the Company records 45% of revenues and expenses in its consolidated financial statements. The Joint Operation agreement is till 2028.
Please see NI 43-101 technical report titled “NI 43-101 Technical Report on the Advanced Project Bolivar Mining Operations, Antequera, Bolivia” with an effective date of January 1, 2024 by Richard Goodwin, P. Eng., Garth Kirkham , P.Geo., and Tad Crowie, P.Eng., available under the Company’s SEDAR+ issuer profile.

Porco Mine

The Mineral Resource Estimate was prepared using a 11.2% zinc equivalent cut-off grade. Cut-off grades were derived from $25.2/oz silver, $1.38/lb zinc and $1.20/lb lead; and process recoveries of 94.3% for zinc, 75.6% for lead, and 88.6% for silver.
The Mineral Reserve Estimate was prepared using a 13.4% zinc equivalent cut-off grade, using the formula ZnEQV=Zn%+1.14xPb%+0.044xAg(g/t).This cut-off grade was based on current smelter agreements and metal prices of $21.00/oz silver, $1.15/lb zinc and $1.00/lb lead, total OPEX costs of $125.02/t based 2022 actual costs plus capital costs of $21.79/t, with process recoveries of 94.3% for zinc, 75.6% for lead, and 88.6% for silver.
Bolivar and Porco Mines are part of the Illapa Joint Operation with COMIBOL. Bolivar and Porco are presented at 100% production, whereas the Company records 45% of revenues and expenses in its consolidated financial statements. The Joint Operation agreement is till 2028.
Please see NI43-101 technical report titled “NI 43-101 Technical Report for the Advanced Project Porco Mining Operations, Antonio Quijarro Province, Bolivia” with an effective date of January 1, 2024 by Richard Goodwin, P. Eng., Garth Kirkham , P.Geo., and Tad Crowie, P.Eng., available under the Company’s SEDAR+ issuer profile.

Caballo Blanco Group

Caballo Blanco Group of Mines consists of the Colquechaquita, Tres Amigos and Reserva mines.
The Mineral Resource Estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead; and process recoveries of 92.1% for zinc, 77.2% for lead and 90.8% for silver.
The Mineral Reserve Estimate was prepared using a 11.9% zinc equivalent cut-off grade, using the formula ZnEQV=Zn%+1.22xPb%+0.051xAg(g/t). This cut-off grade was based on current smelter agreements and metal prices of $21.00/oz silver, $1.15/lb zinc and $1.00/lb lead, total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t, with process recoveries of 92.1% for zinc, 77.2% for lead, and 90.8% for silver.
Please see NI 43-101 technical report titled “NI 43-101 Technical Report on the Advanced Project Caballo Blanco Mining Operations, near Potosi, Bolivia” with an effective date of January 1, 2024 by Richard Goodwin, P. Eng., Garth Kirkham , P.Geo., and Tad Crowie, P.Eng., available under the Company’s SEDAR+ issuer profile.

Soracaya Exploration Asset

The Mineral Resource estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz silver, $1.38/lb zinc and $1.20/lb lead; and process recoveries of 92.1% for zinc, 77.2% for lead and 90.8% for silver.
Please see NI 43-101 technical report titled “NI 43-101 Technical Report Soracaya Project, near Potosi, Bolivia” with an effective date of January 1, 2024 by Garth Kirkham, P.Geo., and Tad Crowie, P.Eng., available under the Company’s SEDAR+ issuer profile.

Forward Looking Statements

This website contains “forward-looking statements” within the meaning of Canadian securities legislation and the United States Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to, statements with respect to expectations regarding the development potential of the Company’s exploration assets; the timing and content of any technical reports on the Company’s assets, the streamlining of the Company’s operations and the benefits thereto; estimates regarding the Company’s production in 2023; the priorities the Company has for improving operations at each of its assets; the price and demand for precious metals; and the Company’s other plans for development of its projects. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes“ or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information is based on certain assumptions that the Company believes are reasonable, including that: the Company will be able to develop its exploration assets as currently expected; the Company will be successful in streamlining its operations, and that the Company will realize the expected value and benefits therefrom; the Company will continue to have access to the expected capital resources and it will have the expected impact on near term growth; current gold, silver and base metal prices will not materially decrease; the proposed development of the Company’s mineral projects will be viable operationally and economically and proceed as expected; the Company will not experience any material accident, labour dispute or failure of plant or equipment; any additional financing needed by the Company will be available on reasonable terms; that general business, economic, and political conditions will not experience any material accident, labour dispute or failure of plant or equipment; that general business, economic, and political conditions will not change in a material adverse manner; the Company’s financial condition and development plans do not change as a result of unforeseen events; the Company’s exploration of its properties is not adversely affected by unexpected adverse weather conditions; the mine lives of the Company’s properties will be as anticipated; the Company’s current exploration and development programs and objectives can be achieved; and the assumptions set out in the technical reports described herein and the other assumptions set out in this website and the Company’s public disclosure, including the Annual Information Form (“AIF”) filed under the Company’s profile at www.sedarplus.ca.

The forward -looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information, including, but not limited to, the risk that any of the assumptions referred to above prove not to be valid or reliable; the risk that the Company will be unable to develop its exploration assets as currently contemplated; that the Company will be unable to achieve efficiencies, reduce costs, and maximize the value of its assets through the streamlining of its operations; that the Company will not continue to have access to capital resources described in this website; that the Company’s priorities at each operation will differ from its current expectations; market conditions and volatility and global economic conditions, including increased volatility and potentially negative capital raising conditions resulting from the continued or escalation of the COVID-19 pandemic and risks relating to the extent and duration of such pandemic and its impact on global markets; controls or regulations and political or economic developments in Bolivia; risk of delay and/or cessation in planned work or changes in the Company’s financial condition and development plans; risks associated with the interpretation of data (including in respect of third party mineralized material) regarding the geology, grade and continuity of mineral deposits; the uncertainty of the geology, grade and continuity of mineral deposits and the risk of unexpected variations in mineral resources, grade and/or recovery rates; risks related to gold, silver, base metal and other commodity price fluctuations; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining; risks relating to environmental regulation and liability; the possibility that results will not be consistent with the Company’s expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the AIF and the Company’s other public disclosure. The Company undertakes no obligation to update the forward-looking information, other than as required by applicable law. Any financial outlook contained herein, as defined by applicable securities legislation, is provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.