Discovery Silver Corp.

Good afternoon. My name is Sarah and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery first quarter 2026 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Thank you. I will now turn the call over to Mark Udding, Senior Vice President, Investor Relations for Discovery. Mr. Udding, you may begin your conference.

Thanks very much, operator, and thanks to everyone on the line for joining Discovery's first quarter 2026 conference call on webcast. Joining me today are many members of the Discovery Senior Management Team. Speaking will be Tony Makuch, our President and CEO, Allison White, our Chief Financial Officer, Pierre Rock, our Chief Operating Officer, Eric Calio, our Senior Vice President, Exploration, and Jose Havillera, our Senior Vice President, Corporate Affairs and Sustainability in Mexico. And again, there are many other members of our Senior Executive Team in the room as well. Before we get started, I'll remind you that during today's call we will be making forward looking statements. These statements are based on current expectations and projections about future events. Their subject to risk and uncertainties and actual outcomes may not be what is included in those statements. I refer you to slide two as well as our website for further information on that. In addition, We will also be making reference to a number of non gap measures during the presentation. These. These measures do not have any standardized meaning and they. Under gap and therefore may not be comparable to other issuers. I refer you to slide three on our deck as well as our website for more details. Finally, all all dollar amounts will be in US dollars unless unless otherwise indicated. Now turning to the quarter, to begin with, as many of you know, we're working towards more than doubling gold production at Porcupine to over 500,000 ounces per year. At the same time, we're working towards developing our Cadero project in Mexico, through which we will produce about 14 million ounces of silver. per year, at least over the first 10 years. You know, we plan to achieve these levels of performance while averaging the lowest half of the global cost curve for both gold and silver. And we're going to achieve these milestones using a disciplined approach to investment with a focus on investor returns. During the first quarter, there were a number of key developments in support of achieving our growth objectives. Specifically, we announced the acquisition of LendCorp KID operations in Timmins. We also reported continued outstanding exploration results in and around Timmins, and we continued with our investment programs through which we will both grow and optimize our current operations. Getting into those in a little bit more detail, looking at KID on slide six, we announced the acquisition of the KID operations on March 2nd, We expect that transaction to close very soon, likely over the next few weeks. This is a major milestone for our company. To achieve over half a million ounces of annual gold production, we require additional milling capacity. Through the KIDMET site, we have an opportunity to dramatically grow processing capacity and to process different kinds of ore. There's lots of other benefits as well, including adding valuable infrastructure that will support the future expansion of both Hoyle Pond and Tamor, including the development of TD Decks. It gives us exposure to critical minerals, copper, zinc, and silver through Kidd Creek Mines, adds significantly more exploration potential to our already very large and highly prolific portfolio, delivers cost synergies, and this is a very important point, adds a very large, highly skilled workforce that's going to help us with our existing growth plans. Going to the next slide, this gives you a view of the KID MET site and a conceptual plan for what we expect to do and are currently evaluating. It's a conceptual plan, but it kind of points or shows you our thinking in terms of path forward. And maybe at this point I'll turn it over to Tony to talk about that.

OK, in media just a couple simple things. I mean people should understand first off that the oil pond underground operations are actually under under the kid med site and and you can see that the the blue rectangular box here and it's trying to show where the location could be for the new any new vent raises we we we can establish for the oil pond line. As well as central location would be for a new shaft if we wanted to develop for the TV dead zone. But also I think what we show here there's there's we've alluded to before. There's four circuits at the at the kid med site and you can see where it says a division and we sort of tried to conceptualize on here what would be involved in building and show the location of where we build a new 5 to 7 million tons per annum conventional gold circuit at the plant. or been crushing and how that would fit in. We still continue to use the B division, which is the base metal circuit, its flotation circuit. The C division, we're working pretty hard right now on that. That's about a million ton a year capacity. So looking at the aspect of bringing the board doors to here and run it through this division as early as we can over the next six to 12 months. and that would unlock 2,000 to 3,000 tons a day in the capacity in the dome mill for conventional processing. And you can see that these circuits, that's where it's here, which we would turn into a cold refractory flotation circuit. But on the other side, all the AP and the BC and D circuits that are here could always be utilized as combination-based metal circuits if needed, and a cold circuit that's required. So it gives you a sense on... on what this could unlock for us, basically, if I, you know, you can look by six to eight million, sorry, seven to nine million ton a year new gold processing capacity at the KID MET site, A division at the conventional circuit, C division for processing, one million ton a year for processing, the Borden Ores and the D division, which we would then use to process refractory ores, in Timmins and effectively the refractory ores would be the TVZ zone as we're talking about. And then general location where it is. This map doesn't, sorry, this figure doesn't show where the PAMOA operations are in here, but the PAMOA open pit operations are less than a half a kilometer from the bottom of this page. And the idea would be all the PAMOA ores would be trucked and Timmins, the oil bond ores would be trucked and processed through this new circuit. Perfect. Okay.