Discovery Silver Corp.

Good morning. My name is Alexandra and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Mining second 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, press star followed by the number one again. Thank you. I will now turn the call over to Mark Utting, Senior Vice President of Investor Relations for Discovery. Mr. Utting, you may now begin your conference.

Thank you, operator. Good morning, everybody. Thank you very much for joining us on Discovery's second quarter of 2026 conference call and webcast. As you just heard, I'm Mark Gutting, Senior Vice President, Investor Relations. Joining me today are many members of Discovery's senior executive team. Speaking today will be Tony Makuch, our President, CEO, and Chairman, Alison White, our Chief Financial Officer, Duncan King, our Senior Vice President, Canadian Operations. Gord Leavoy, our Senior Vice President, Mineral Processing. Harold Bird, our Vice President, Mineral Processing. Eric Kallio, our Senior Vice President of Exploration. Jose Jabalera, our Senior Vice President in Mexico. We'll then turn it back over to Tony for concluding remarks. Just before we get started, As always 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. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements and for more information Please refer to slide two on our slide deck as well as other disclosures on our website. In addition, we will also be making reference to non-GAAP measures during the presentation. These measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to other issuers. Slide three in the deck deals with cautionary language around non-GAAP measures. Lastly, for me, all dollar amounts today will be expressed in U.S. dollars unless otherwise indicated. With that, I'll now turn the call over to Tony Makuch.

Thanks, Mark, and good morning, everyone. It's really good to be able to be here. Actually, you know, I think maybe before we started, we had a really, I think, you know, we had some pretty good results in the quarter. Things went well, or progressed well. I know that you know like there's a lot of stuff hiding in the background that maybe people all don't see and don't talk about a lot of people did a lot of a lot of good work a lot of people that did a lot of good work some of the results aren't really shown in this quarter they'll be you'll be seeing them in future quarters but you know you know what we talk about and all the all the benefits that we that we see in all the results you see. It's really, you know, we get the chance to talk about it and tell you about it, but there's a lot of really good people working in the company throughout the operations, and they're the ones who did all the good work. So, you know, before we start, we thank them for the results, and we recognize really what everybody's doing. So stay tuned. We're going to talk about good things that happened here, but stay tuned. There's still a lot more. I'm sorry. Anyway, I'll start with slide four. This is a slide that we use a lot in the past to try to, you know, show things in terms of where we are in value creation. It talks about our growth to over half a million ounces of gold in production over the next three to five years. It looks at our potential for Cordero and what we think we can bring Cordero, you know, 14 million ounce silver production rate, but, you know, on an equivalent silver equivalent basis, depending on silver prices, there's significant zinc and lead production there. and definitely a world-class silver project in Mexico. We're just waiting for a permanent. And then looking at a gold business and what we're doing, we now believe that has a potential to be significantly greater than what we show here. And that's a forward-looking statement that Mark talked about earlier. And during this presentation, we will show you why we are confident that this can be achieved. When you slide five, you know, second quarter was favorable and we did have a lot of good works. And, you know, definitely we've done a lot of progress in advancing our growth plans. And, you know, maybe there were three key developments during the quarter that maybe we could highlight. First, we completed the acquisition of the kit operations. Second, we continued to achieve outstanding exploration results. And, you know, and on the exploration results, like, you know we we we originally were putting all in one press release now we put our three press releases in the last three weeks you know instead of lumping them in one there's so much in good information all we realize we we probably have to start presenting them each individually and you can see there's actually results at all of our exploration targets and and we expect that to continue you know we really think that this is as much of a as much as this is a production and business story and and a going concern operation that's that's financially viable and as much as this is a growth story, this could be an exploration story as well on steroids. And, you know, so we had a lot of good exploration results and we did ramp up our investments in the quarter and then we've had certainly, you know, we're focusing on trying to improve our operations. But, you know, going to slide six, this looks at the kid acquisition, you know, I think in our last call we did talk a lot about it. about it but you know if summing it up you know the growth we talked about this is the really a big enabler besides the exploration besides the uh you know had the people and what we're doing it doing in in in the park find camp but besides all the the the geology etc that we see here and the infrastructure in place you know the you know and the acquisition of the kid operations really helps us to achieve the growth that we're targeting over the time frame that we plan to achieve it. And a big part of it is the kid metallurgical site and what we can do there. And we'll probably be talking more and more in the future as the year progresses in terms of the benefits of that. We're not going to get into too much of the details of that, but that was a significant acquisition that really enables us to move forward. You know, you know, maybe, you know, you know, when we talk about it, there's a current processing capacity there. But for us to grow operation optimized oil plantings in the Panama without this infrastructure and the geography, the land position, the power, the water, the companies get operations, maybe I can talk too long about that, maybe I shouldn't. and you know this is a very important acquisition for Discovery. Slide 7 shows what we know from the last quarterly call and sort of gives a sort of concept that lays out our planned construction of the new conventional gold circuit incorporated into space that was the A Division. You can see that some of the conceptual diagrams of where the infrastructure will go. We are currently reviewing what this circuit will look like and our advancing engineering design work And I can tell you that we have moving parts, exploration success and sort of our productivity rates that we might design for are still lots of being added to the story. So we got a lot of blank pages. We might have a lot of headings on chapters written in the book, but all the content is being rewritten as we speak. in terms of what we're doing there. The B circuit, you know, that's that kid. There is four circuits, as we've talked about before. The B circuit will continue to be used as a base metal circuit, and we're now processing the kid material, at least for 2026 and all of 2027. For the C circuit, you know, we are doing test work now, and we expect that this circuit will be used to process boron ore starting Some time next year, and we see this. This could add something up to 40,000 ounces in annual production just in our current form. and, you know, and where did we get that from? Well, it will add 2,000 tons a day of added availability at Dome. We can see improved metallurgical recoveries at all at the ORIS process at the Dome mill currently, plus we think we're going to get that improvement in recoveries from Borden, right? It also gives us the ability to process higher levels of Borden ore at Kidd. So maybe it gives us the ability to increase productivity from Borden because we were limited on Borden ore could be intermingled into the gold circuit at Dome. And, you know, with the KIDMET site, we also investigated future plans for the D-Circuit. Our goal would be to have the TVZ and or other materials processed here. And, you know, so we still have a lot, lot, lot to work there. I've been reading and reading an enabler in a lot of ways. Slide 8 looks at the expiration. And I mentioned we had three press releases over the last three weeks, all with excellent results. Eric's going to talk about this later. So, you know, I'll just focus on a couple of things and maybe highlights. You know, we're excited about Padmore based on recent drilling and, you know, tied into past drilling where we've established that the minimalized system over, if we've identified over a strike length of more than four kilometers, the system remains open in all directions and at depth. And, you know, we've talked previously about the depth potential in this region of the camp. in terms of depth of oil pond where it's down to 2,000 meters, I should say, and the depth that was at the Hallmore project, which is on strike on the same system. It's not a mine that we have, but it was mined down to 5,000 feet. So there's a significant upside here. We're currently working on a mine redesign for the PAMR pit and we expect PAMR to become a much larger producer. And with that, as I talked about earlier in terms of the processing capacity of what we might build at KID, at KID circuit to support a much larger open pit operation here. And the other point that I'll make is that Dolman is the second large open pit operation we expect to be able to bring online. It has transformation growth potential and by what we do at KID with the KID-A circuit and being able to move Pamela there. This enables the dome mill in its current form to be used to process and to start the dome open pit. This is, again, this is all future-looking stuff. We do also have longer-term, the Hollander-Magnon Tire is a potential third-scale open pit, but Again, you know, that's maybe we just start with the PAMOR and then see how PAMOR goes to Dome. But, you know, we truly believe that they may come when Discovery operates three of Canada's largest open-bit gold mines, all located in the Timmins Camp. Going to slide nine, it looks at our Q2 capital expenditures. As expected, our capex went up in Q2, totaling $86 million. That reflects our progress on, you know, a number of fronts. We're tailings, so advancing our tailings project at Dome to build up our tailings capacity. We continue to do pre-stripping at Panmore. Our goal is to bring Panmore to commercial production, and we're investing in new fleets of equipment and infrastructure that will follow up on important. And we expect to see further progress and further investments in CapEx over the year, et cetera. And that's been our goal to invest that back into these operations to build to not only Bill Production, but also to improve the operating performance. So not just growing production, but improving performance and reducing costs. Unit costs, maybe I should highlight that better. In terms of slide 10, it highlights our Q2 operating performance. Again, on the other side, I'll leave the financial results for Alison to review, but I'll say that Virtually every financial metric improved substantially from last year's second quarter. We achieved record revenue in Q2 2026. Adjusted earnings increased significantly compared to both prior periods. And speaking of record results, we achieved record gold production in Q2. Production increased over 10% from the previous quarter. Duncan and Gord will get into the details, but the increase was largely due to higher throughput. And a key highlight for the quarter was that both mining and milling rates showed strong growth at every operation. Finally, for me, in this part, before I pass it on to Alison, slide 11 shows our 2026 guidance. And, you know, I'm going to tell you that we are tracking well to achieve all of our guides for the year. And with that, I'll turn the call over to Alison.